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Technology in Banking
Insight and Foresight

Institute for Development and Research in Banking Technology
(Established by Reserve Bank of India)

Foreword
The Indian banking industry, almost in keeping with the deep entrepreneurial approach of the country s business, has come a long way. This report is an effort to capture some exemplary initiatives and developments so far as well as discuss the emerging trends. The insights and understanding of the technology trends and ground-level work being done by the banks has been culled from the nominations received from banks for the IDRBT Banking Technology Excellence Awards 2010. The transformation of Indian banks in the last decade has been phenomenal from local branch banking to global presence and anywhere-anytime banking. Most of the regular banking transactions can today be carried out from mobile phones. Sustained reforms and information technology (IT) have played a pivotal role since the initiation of the second phase of reforms post 1998. The benefits of technology such as scale, speed and low error rate are also reflecting in the performance, productivity and profitability of banks, which have improved tremendously in the past decade. Regulatory initiatives from the Central Bank have also played a large role in the banking sector. Robust technology-enabled organizations have now become the mainstay of the industry. Initiatives such as electronic clearing service (ECS), national electronic funds transfer (NEFT), real-time gross settlement (RTGS) have accelerated the pace of technology adoption by banks and enabled interconnectivity between banks. While the focus in the early stages was on technology adoption and aligning/retraining human capital, now with more or less suitable technology infrastructure in place and a young technology-adept workforce, banks are focusing on improving the performance and

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