The concept of new generation banks owes its origin
to the Narasimham Committee recommendations. The
new entrants have chosen a different path to woo customers into
their fold taking technological support. The new generation banks are
different from the traditional ones. For instance, they work in a
computerized environment using the latest banking software,
onsite ATMs, etc. Wide patronage, especially from the educated
youth, young executives and entrepreneurs has also been the
reasons for this success. Technology has also helped these banks to
offer new range of products.
One of the products which attained an instantaneous
success was sweep in savings bank account, where the
balance in the account over a specified minimum amount is automatically
transferred to fixed deposits. There customers earn a higher rate of
interest on their idle funds. A similar type of facility was
extended to some categories of current accounts. This type of facility
would not have been possible without the support of technology. There
are also remote terminals at the customers' location, suitable for
corporate clients, with read only facility where the customer can
view the transactions, take printouts of the statements and process
any query. This is followed by Internet banking, where the customer
can actually do transactions from his account like transfer of funds
to his own accounts or for third party payments within the
same bank or other banks. The revolution in funds management
has emerged with the introduction of facilities, such as ECS, NEFT
and RTGS. These facilities are a boon to all clientele for early credit
of their funds and give an opportunity to them to better
manage their funds position. Once the cheque truncation system is
also introduced, it will be a boon to the customers. This tremendous
success of usage of technology has helped these new
generation banks to penetrate the market with ease. |
