Contribution of E-banking in Economic Development of India

Abstract

E-banking is now a global phenomenon. The developed country as a part and parcel of their economy is now using e-banking. Initiatives are taken by the government and Reserve Bank of India (RBI) to facilitate the development of these new generation banks. Though ICICI bank, e- banking facilities are initiated under the brand name of “Infinity”. On the recommendation of the committee on technology upgrading in banking sector headed by M.R. Srinivasan, the RBI has issued a guideline in June 2001 on three major areas of Internet banking. Economic growth is a fundamental requirement for the development of a country. GIZ advice its partners to develop the situation for private sector promotion, and local poverty- oriented financial system to give everyone an opportunity to share the benefit of economic growth. The presence of increased middle income group in rural area demands credit facilities on par with urban people and providing ample opportunities to the banks to extend credit to non-farm sector also. Indian P.M- Mr. Narendra Modi has initiated a project estimated at INR 20,000 crores to build a broadband highway connecting 2.5 lakh panchayats across the country. This infrastructure would help the rural India to connect with the urban India. Indian banks have embraced innovative banking technologies and e-banking services in recent years. At the same time, e-banking acceptance depends probably on bank service quality, customer preferences and satisfaction.