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Abstract
The Indian banking system was domestically oriented at the time of nationalization in 1969. National policy objectives where the guiding force and banks were primarily involved in mobilizing domestic savings, lending funds to specific sectors of the economy and raising resources for financing public deficits. Technology in Indian banking has evolved substantially from the days of back office automation to today's online, centralized and integrated solutions. One cannot think of ATM, Internet, mobile and phone banking or call center services without the help of technology? .However, the irony is that most of those products have more of technology and less of banking. Let us look how banking has changed as a business over the last one decade. The rigorous use of IT in the banking sector started immediately after the recommendations of the Committee on Financial System (Narasimham Committee, 1991) were implemented in 1991. The
Recommendations of the committee include, among others, free entry of private sector/ foreign banks. The private and foreign banks brought new technologies and rendered technology based world class quality services to customers through ATMs, credit cards and internet banking, which PSU banks, hitherto, were not even dreamed about.As banks develop their strategies for giving customers access to their accounts through various advanced services like e-banking, mobile banking and net banking, they should also regard this emerging platform as a potential catalyst for generating operational efficiencies and as a vehicle for new revenue sources. India's banking sector has made rapid strides in reforming and aligning itself to the new competitive business environment. In this article an attempt made to identify the major challenges and opportunities for the banking sector.This paper discussed the recent trend in banking scenario and its concludes the different products provided by foreign banks to Indian customers have forced the Indian banks to diversity and upgrade themselves so as to compete and survive in the market.