INTERNET BANKING IN INDIA: A COMPARATIVE STUDY BETWEEN PUBLIC AND PRIVATE SECTOR BANKS

Dr Jyoti Sharma

Senior Academic consultant

MAHIAA  ENERGY AND ENVIRONMENT TECHNOLOGY CONSULTANCY SERVICES DELHI

Email jyotiblogger27@gmail.com

Contact number -9616509903

Abstract

 Internet banking is an activity that is not new to banks or its customers in India. Banks have been providing their services to customers electronically for years through software program. These software programs allowed users personal computer to dial up the bank directly in the past. However banks have been very reluctant to provide their customer with banking via internet due to security concerns. Today the scenario in India has changed. The bank now seen to be jumping the bandwagon of internet banking. Why is there a sudden increase of bank’s interest in internet? The proper look at these issue and mere fore has a fourfold objective. Firstly the paper studies the evolution of modern day banks and the current state of banking in India . Secondly, it looks at the role of information technology in this technology change. Thirdly the paper comperes the adoption and implementation of internet banking in India through the case study of two banks .One of the banks under study is the most popular and emerging bank(i.e. ICICI Bank) that has been a front runner in the adoption of  the internet banking and the other is nationalized bank ( i.e. Punjab National Bank). Which is the first amongst the nationalized banks to have begun internet banking? Formerly the paper concludes discussing the problems of internet banking thereby planning the hop that internet banking shall evolve and within no time shall become the most popular channel of banking in India

Introduction

The banking sector in India has experienced a rapid transformation. Just about a decade back this sector was limited to the nationalized and co-operative banks. Then came the multinational banks , but these were confined to serving an elite few. One could regard the past as the’ medieval ages’ in the banking industry. Wherein every branch of the same bank acted as an independent information silo and multi-channel banking (ATMs, Net Banking ,Tele Banking etc.) was almost  non-existent . The first major reasons for this transformation is because of the improved security and encryption methods developed on the internet . The second reason is that banks do not want to lose a potential market share to banks that are quick to offer their services on the internet.

Article by Dr Jyoti Sharma for Mahiaa Energy and Environment Technology Consultancy Services Delhi for August 2019 Month