Goods, along with services,
continue to play a key role in the evolution and dynamics
of money and monetary operations. In this process, the
addition of variables such as `exchange rate' and `interest
rate' signify the continued importance of `goods'. Interestingly,
while gold, silver and oil undisputedly hold important
positions in assessing the value of money, the evolution
of `currency' itself as `goods' has added a new dimension
to monetary operations.
Another
link between `money' and `goods' is explained further,
while determining the value of a currency by the extent
of goods bought. This view has been put under a scanner
by John J Heim in his paper, "Does the Exchange Rate
Really Affect Consumer Spending?" The paper establishes
the relationship between goods and money even as it examines
the marginal changes in imports or exports of goods and
services due to changes in the exchange rates. This study
pertains to the US and the period covered is from 1960
to 2000. The paper also confirms the relationship present
in determining the exchange rates between two currencies
through the `goods' model and the `currency' model. The
paper also lends credence to the basic idea that relationship
between `goods' and `money' gets complicated in the arena
of international trade with multiple trading partners.
The
consequences of `mismanagement', against the background
of the prevailing complexities of an inter-related global
monetary system would most probably have a ripple effect.
This could emanate from either emerging economies or even
developed financial systems that might slip off government's/central
bank's watchful eyes. The paper, "Emerging Asia's
Growth and Integration: How Autonomous are Business Cycles?",
by Rasmus Rüffer, Marcelo Sánchez, and Jian-Guang
Shen, provides material to debate on the issues of economic
growth and integration of financial markets. The paper
captures the highs and lows of economic development, disparities
between the rich and the poor, and the `shocks' as a result
of such differences; and all these at a time when the
monetary world is uncertain where from the water of destabilization
would start flowing and most importantly, where it finds
its level in the wake of the `sub-prime crisis'.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
