Banking System In Banking

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Rakesh Mohan (2001)29 opined that “the banking system must respond quickly and appropriately to the credit and promotional needs of the farmers, rural artisans, women and other segments of the rural poor. The banking system in India governs the savings of the people and makes them available for development of rural sector. The banking system in Germany and Japan has close links with industrial and agricultural sectors, which is an important element in the rapid development of these countries. Rakesh Mohan adviser to the Finance Ministry said for achieving an 8 per cent GDP growth rate in the next ten years, banks would have to lend more; increase savings mobilize and channelize funds in higher productive instruments for better returns. Y.…show more content…
He discussed the attempts made by RBI in introducing a code of conduct for Board of Directors. Government has tried to establish balance between authority, responsibility and accountability in the co-operative sector with UCBs as no exception. Management with more lucid, proficient, trustworthiness and financial discipline are expected to enter in the UCBs. He strongly argued that the paradigm shift in the mind set of the Board of Directors will create a key organizational change in the management of urban co-operative…show more content…
S. (2004)38 described the adoption of IT in banking has undergone several changes with the passage of time. Today IT has become an inseparable segment of banking organization. The application of Information Technology in the banking sector resulted in the development of different concepts of banking such as e-banking, Internet-banking, Online-banking, Telephone-banking, ATM, Universal-banking and Investment-banking etc. He stated that IT has a lot of influence on banking transactions, which ensures quick service with low transaction cost to the customers. However the real success of IT in the banking sector depends upon the customers’ satisfaction. Therefore banks should organize and conduct customer awareness programmes in their service area about modern banking services and also about security in the context of e-banking. Ananthakrishnan G. (2005)39 has opined that the discriminating customer’s expectations have begun to change in terms of quality and service and particularly with the advent of computers and ATMs, the gap between the customers and the banking personnel has been widening. He stated that unless a change of heart occurs, even the largest banks will find it hard to survive on their assumed false glory. Further he said that only the banks which take care to see the reality and react early will survive and prosper, while those who continue to follow the traditional path will find their market share eaten

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