1. THE IMPACT OF E-BANKING SYSTEM IN INDIA

2. It is generally said… “networked individuals and firms are more efficient than networthed individuals…”

3. E-BANKING Banking done electronically is electronic banking. In other words, it is the products and services provided by the banks by using the electronic media or internet.

4. RANGE OF SERVICES OFFERED Electronic Funds Transfer (EFT) Automated Teller Machines (ATM) Point of Sales (PoS) Electronic Data Interchange (EDI) Credit Cards Debit Cards Smart Cards Digital Cash

5. BENEFITS TO THE BANK Competitive advantage Unlimited network Lesser work load Marketing tool Lesser establishment costs Lesser chances of fraud & misappropriation Better profitability Better customer relationship

6. BENEFITS OF E-BANKING Any time banking Any where banking Cash free banking Reduction in Cost of transaction Easy to make utility payments On-line purchases

7. Drawbacks Difficult in the adoption of technology Difficult in the adoption of technology Fear of technology Fear of technology High cost of technology High cost of technology Lack of preparedness Lack of preparedness Restrictions on usage of technology Restrictions on usage of technology

8. E-banking in India Finland was the first country in the world to have taken in E-banking. In India, it was ICICI Bank which E- banking as early as 1997 under the brand name ‘Infinity’

9. Impacts in India ICICI ‘s profit to equity holders registered a growth of 21% percent in 2001. ICICI ‘s profit to equity holders registered a growth of 21% percent in 2001. Citibank claims that its project Suvidha, which started off in Bangalore in early in 1998, has encouraged customers to interact with electronically, using telephones, the Internet, and ATMs. Citibank claims that its project Suvidha, which started off in Bangalore in early in 1998, has encouraged customers to interact with electronically, using telephones, the Internet, and ATMs.

10. Impacts in India The Vice President of Global Trust Bank, P.C. Narayan says, The Vice President of Global Trust Bank, P.C. Narayan says, “An electronic transaction costs as much as 65% less than a physical one. ATMs have definitely emerged as the new business model for the banks and the way banking has been conducted. I think it is one of the remarkable things that has happened to Indian Banking Industry”.

11. Measures taken by RBI A Reserve Bank of India (RBI) committee has come out with the road map for electronic banking and has sought legislation on EFT systems to facilitate multiple payment systems for banks and financial institutions. The RBI has been gearing up to upgrading itself as a regulator and supervisor of the technologically dominated financial system

12. Initiatives taken by RBI Several initiatives taken by the Government of India as well as the RBI have facilitated the development of E-banking in India. The Govt. of India enacted the IT Act, 2000 with effect from Oct.17,2000, which provides recognition to electronic transactions and other means of electronic commerce.

13. Conclusion… “The potential of “E-banking is huge. With the increase in connectivity, the number of users will explode”, says K.V. Kamat, the CEO of ICICI Bank. The strategy for banks is to provide value-added services to products to customers utilizing the Internet extensively. The strategy for banks is to provide value-added services to products to customers utilizing the Internet extensively.

14. Web based banking service or E- Banking, the latest generation of banking transactions, has opened up new window of opportunity to the banks and existing financial institutions. Since its evolution in 90 th decade, it is having unprecedented growth.

15. Last but not the least, The power of person-to-person communication and word of mouth can never be underestimated…