Role of Information Technology in the Development of Banking Sector in India

15 Pages Posted: 25 Sep 2012

See all articles by Megha Jain

Megha Jain

affiliation not provided to SSRN

G. S. Popli

Delhi School of Business

Date Written: September 24, 2012


Liberalization and Information technology has attracted many foreign banks to India, thereby opening up new markets, new products and efficient delivery channels for the banking industry. In the development of Indian Economy, Banking sector plays a very important and crucial role. With the use of technology there had been an increase in penetration, productivity and efficiency. It has not only increased the cost effectiveness but also has helped in making small value transactions viable. It also enhances choices, creates new markets, and improves productivity and efficiency. It has been noticed that financial markets have turned into a buyer’s markets in India.

Commercial Banks in India are now becoming a one-stop Supermarket. The focus is shifting from mass banking to class banking with the introduction of value added and customized products. Technology allows banks to create what looks like a branch in a business building’s lobby without having to hire manpower for manual operations. The branches are running on the concept of 24 X 7 working, made possible by the use of Tele banking, ATMs, Internet banking, Mobile banking and E - banking. These technology driven delivery channels are being used to reach out to maximum number of customers at lower cost and in most efficient manner. The beauty of these banking innovations is that it puts both banker and customer in a win- win situation. Effective use of technology has a multiplier effect on growth and development.

Keywords: liberalization, tele banking, ATMs, internet banking, mobile banking and E - banking

Suggested Citation

Jain, Megha and Popli, Gurmukh Singh, Role of Information Technology in the Development of Banking Sector in India (September 24, 2012). Available at SSRN: or

Megha Jain

affiliation not provided to SSRN ( email )

Gurmukh Singh Popli (Contact Author)

Delhi School of Business ( email )

VIPS - Technical Campus
AU Block, Outer Ring Road
Delhi, 110034

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