The banking system occupies an important place in a nation's economy. The role of commercial banks becomes more important in a planned or developing economy like India. Banking industry is the lifeline of our economy. A banking institution is indispensable in a modern society.
The Indian banking, today, has become more complex, and the sector is undergoing a rapid change in order to face the challenges posed by new developments triggered by the entry of private and foreign banks. The main agenda of banks is to provide better services to the customer who can afford it. Their approach can be termed as cherry-picking banking, which aims at the customers. Their perception is also strategically different.
Banks
view their customers as financial partners rather than custodianship to companionship.
To achieve the objectives, these banks eliminated the constraints of time and
distance by expanding the banking hours from eight to 24 and reducing the distance
from kilometers to some meters. It has been made possible by the introduction
of a high-level automation that is all the branches were computerized to ensure
efficient online transaction processing. Processors were developed to attain the
highest level of customer satisfaction. For this, computerization of banking business
has received high importance in recent years. As on March 31, 2005, public sector
banks had incurred an expenditure of Rs. 9,487 cr on computerization and development
of communication network. |
