Banking sector in India has evolved much , there is a huge change in its working and this ppt provides this information.

1. Presented To :
Presented By :
Mr. Sarabjeet , Parth
Wadhwa
B.Com 5 Y Nitin
Narang
Rajat
Chopra
Raskin
Singh
Rinkle
TRENDS IN BANKING SECTOR

2. INTRODUCTION
 Banks in India have witnessed a radical change from
‘Conventional Banking to Convenience Banking’
Source - ICMAI , Jan

3. EVOLUTION OF INDIAN BANKING
SYSTEM
https://www.youtube.com/watch?v=D7y6QMDlVXw&fe
ature=share

5. PAYMENT SYSTEM
Paper - Based
Demand Draft
Cheque(MICR
, IFSC Code)
Paper-less
Electronic
Mobile Banking
NEFT
RTGS
IMPS
ECS (Electronic
Clearing
Service)
Card Based
ATM/Debit
Cards
Credit Cards
Smart
Cards/Wallets

6. IFSC CODE
 It stands for Indian Financial System Code
 This alphanumeric code is required to transfer the funds
electronically in India
 It consist of 11 characters. First 4 characters represents name of
the bank, 5th character is 0 & last 6 characters represents bank
branch.
 NEFT & RTGS transactions use these codes in order to route the
transaction messages to the concerned banks.
 This code acts as unique identifier of different bank branches in
India since this system is applicable only for domestic
transactions.

7. MICR
 It stands for Magnetic Ink Character Recognition
 This character recognition technology is especially used in
cheque clearing
 This character of MICR code are printed with the help of
magnetic ink or toner, which are printed at the bottom of the
cheque
 It consist of 9 digits numeric code. First 3 digits represents
code of city, next 3 digits represents bank code and last 3
digits represents code of bank branch.

8. SAMPLE OF IFSC & MICR CODE

10. MOBILE BANKING
 Mobile banking is an application that lives on a mobile phone
which access & manipulates the bank accounts at anytime and
anywhere
 It is a system that allows customers to perform a number of
financial transactions through mobile device
 Monitoring the bank accounts through mobile is called
Mobile Banking
 With the growing needs and expectations of customers banks
started providing services which could ease the operational
process for the customers as well as for bankers i.e. mobile
banking.

11.  Mobile Banking Services:
It may includes
 Balance inquiry
 Fund transfer between accounts
 Dr/Cr alerts
 Cheque book request
 Minimum balance alert
 Bill payments
 Generates OTP
 Types of mobile banking:
 Phone banking
 SMS banking

13. ELECTRONIC PAYMENT SYSTEMS
 It is the financial exchange that takes place online between
buyers and sellers.
 The content of this exchange is usually some form of digital
financial instruments(cash, cheque or card) that is backed by
a bank or any intermediary.
 E-Payment systems like:
 NEFT/ RTGS
 IMPS
 SWIFT
 ECS
 Mobile banking
 Debit/ credit cards

15.  It stands for Immediate Payment Service
 National Payment Corporation of India (NPCI) introduced this facility
in November 2010 under National Financial Switch network.
 This fund transfer service allows customers to instantly transfer
money online or from mobile phones using their registered mobile
number i.e. available 24 *7
 This facility of fund transferring is available even on banking
holidays.
 Maximum limit for IMPS is Rs. 2 lakhs per day

16. ECS
 It stands for Electronic Clearing Service
 ECS is a initiative of RBI. The RBI itself manages the operation
of ECS
 This service is used for bulk and repetitive transfers from one
account to the other.
 It usually contains low value transactions.
 It is generally divided into two categories: ECS Debit and ECS
Credit.
 Bulk transfers from one a/c to many others- ECS Credits
Collection of amount from many a/c to one a/c-ECS Debit
 It is often used for making payments such as distribution of
dividend interest, salary, pension, etc.

17. SWIFT
 It stands for Society for Worldwide Interbank Financial
Telecommunication
 It is used especially for international transfer of funds between the banks
 The transaction mainly depends on international standards & through a
unique code given to each bank called Swift code.
 Swift code is a standard format of Bank Identifier Codes (BIC) and it’s a
unique identification code for a particular bank
 This code consist of 8 or 11 characters. First 4 characters represents
code of bank, next 2 represents country code, next 2 characters which
may be alpha or numeric represents code of location & last 3 represents
code of branch.

18.  Who uses SWIFT?
 Banks
 Money brokers & security broker dealers
 Clearing systems
 Corporate, NBFC’s and many more
 How does SWIFT work?
 This system actually does not transfer funds, but instead it sends
payment orders between institutions accounts using swift codes.
 Swift standardized the international bank a/c numbers and by
quickly identifying the bank it sends the payment there.

20. CURRENT SCENARIO
 Indian government is aggressively promoting
digital transactions.
 The launch of UPI and BHIM by NPCI are
significant steps.
 Digital transactions in the country reached at
1.11bn in Jan 2018.
 Today the topmost agenda for all the banks in
India is Digitization

21. Source - www.ibef.org
CAGR – Compound Annual Growth
Rate

22. Payments 2015-16 2016-17 2017-18
RTGS 98.3 107.8 124.46
NEFT 1252.9 1622.1 1946.36
IMPS 220.8 506.7 1009.80
Credit Cards 785.7 1087.1 1412.97
Debit Cards 1173.6 2399.3 11,945.65
ECS (Dr.) 224.8 8.8 1.54
ECS (Cr.) 39 10.1 6.14
MICR Clearing 0 0 0
Non-MICR
Clearing
138 94.8 33.27
Volume in Million SOURCE-
www.rbi.org.in

23.  There are about 2.22 lakhs ATMs deployed in
India
 Majority is by PSU Banks
 SBI has the largest ATM network in India i.e.
22,469

25. Benefits Of E-banking
 To Banks
 Reduced Costs
 Generated Revenues through various Channels
 Number of Customer has Increased
 Less chances of human error due to digitization
 Access and analyze data anytime enabling strong
reporting system

26. To Customers
 Easy and fast access
 Anytime and Anywhere Banking
 Convenient
 Saves time and efforts spent in banks
 Well organised cash management

27. Challenges In E-Banking
 Security Risks
 Financial Literacy / Customer Awareness
 Fear Factor
 Internet Connectivity all over the country
 Training to Bank Employees