Banking is undergoing a radical and rapid transformation all over the world due to the all-pervasive influence of Information Technology (IT). This case study traces the present status of e-banking in India, visualizes its prospects and looks at the chellenges in the tracks to be traversed. It concludes that in the scenario of severe competition and escalating customer expectations, banks cannot remain lukewarm to IT and yet hope to grow. The key to suvival is to provide value-added services using state-of-the-art IT.

Information Technolgy (IT) has brought about a revolu- tion in the world. It has affected all the businesses in one way or the other. It has changed the method of work, quality of products and services. It has brought about enormous saving in terms of time and money for the businesses. Nowadays we find that IT is being used in every sphere of life. The use of Internet and other e-channels increases the efficiency of the banks by enabling them to deliver the bank services to the customers at a click of a mouse and by demolishing all the physical boundaries.

Use of electronic technology in banking can be termed as e-banking and it can be confirmed that e-banking has increased the quality and range of the banking services. Customers can use the banking services like ATMs, credit cards, smart cards, mobile banking and e-banking and save time and money in doing the transactions. Productivity and profitability can be increased by using e-banking. It has been observed that the performance of many private banks and foreign banks operating in India is better than the Public Sector Banks (PSBs).

The main reason for the same being the latest technology used by the former. Since the private sector banks and the foreign banks are spending heavily on the latest technologies it is seen that the customers of PSBs are slowly shifting towards them. It has also reached a state where the survival of the PSBs is in danger. Hence, it is necessary for the PSBs to adopt IT. Else they will face serious problems in the future. E-Banking implies provision of e-banking products and services through electronic delivery channels. E-Banking can help the banks to provide services at low cost.

Professional Banker Magazine, E-banking in India, Information Technolgy, IT, Electronic Technology, E-Banking Channels, Private Sector Banks, Public Sector Banks, Foreign Banking Sector, Customer Relationship Management, Banking Services, Industrial Relations, Bank Management, Automated Teller Machines, ATMs.