Productivity of Indian Banks since 2000s: Impact of Technology

The aim of the banking sector reforms initiated in India in the early 1990s was to enhance the productivity, profitability and efficiency of banks. However, majority of the banking reform measures in the first decade of liberalization were essentially centred on various relaxations, deregulation, and easing of norms pertaining to the financial operating environment. Diffusion of technology and innovations were not given much importance in the early phase of liberalization. In the second decade of liberalization, this scenario has changed. In fact, since 2000s, Indian banks started to give more emphasis on technology and innovation in order to become more modern, competitive and of course, efficient. Introduction of various IT-embedded products such as Internet banking, mobile banking, core banking solutions (CBS), real time gross settlements (RTGS) have transformed the Indian banking arena since then. Read more