Evolution of Virtual Banking Services in India

Abstract

Indian Banking industry is seeing an extraordinary competition. To remain ahead, banks are coming up with plenty of services to draw customers. Services including 24-hours banking, Service at entryway step, Telephone banking, Internet banking, Extended Business Hours (EBH), Speedy processing are just a couple to mention. Larger piece of the present bank transactions occur elsewhere other than in branch premises. This shows the growth of "virtual" banks in India. With convenience, speed, productivity and adequacy, these virtual banks, as a result have opened up another universe of conceivable outcomes and brought major changes in providing an expansive scope of services. Virtual banks are currently observed as a response to the test of planning another service channel that is completely secure, utilitarian and which customers can promptly figure out how to utilize and confide in it. Virtual banking, an incredible "esteem included" instrument, has become the point of convergence for banks to pull in and hold customers. However, the point of these services is to satisfy customers, there is a need to comprehend customer mindfulness, recognition and critically the degree of satisfaction. Virtual banking services incorporate Automated Teller Machine (ATM), TelephoneBanking, Internet Banking and Integrated Voice Response System (IVRS). The act of banking has experienced a huge transformation in the nineties. While banks are attempting to fortify customer relationship and move towards 'relationship banking', customersare progressively moving endlessly from the confines of customary branch-banking and are looking for the convenience of remote electronic banking services. Virtual banking is becoming prominent nowadays. Virtual banking has made some start in the Indian banking system. ATMs have been introduced by practically all the major banks in significant metropolitan urban areas, the Shared Payment Network System (SPNS) has just been introduced in Mumbai and the Electronic Funds Transfer (EFT) mechanism by major banks has likewise been started. The operationalisation of the Very Small Aperture Terminal (VSAT) is relied upon to provide a critical push to the development of Indian Financial Network (INFINET) which will additionally encourage connectivity inside the financial sector. The prominence which virtual banking services have won among customers, inferable from the speed convenience and nonstop access they offer, is probably going to increment later on. Hence, the present study has been done with a view to give anoverview of evolution of Virtual Banking in India and study based on secondary source of data.