Computerisation of Banking System in India

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 1)      In 1983 a committee was formed under  the chairmanship of the then Deputy Governor of RBI   Dr.C. Rangarajan  to study possibilities and stages involved  in bank computerization . The report  has been submitted in 1984 an is known as "first Rangarajan committee report on bank mechanization"

2)      Need for computerization: to improve  a) customer service b) housekeeping c)decision making d) productivity and profitability

3)    Levels of computerization: 1) Branch level computerization: Customer interface is at he maximum at branch level  so increased use of computers and advanced technology can lead to reduction in waiting time , accuracy in reporting a statement of accounts and   expeditious  transfer of funds (faster and efficient)

4)   Branch level computerization is useful for Improved housekeeping services, analyse the branch level data for decision making , generation of various reports and provide better rand speedy customer service

5)  Total branch automation:  with this  all customer and business transaction are done with the help of computers  i.e real time banking.   Whenever a transaction is  entered through terminal , it is recorded , then verified and authenticated and corresponding updates are reflected instantly.

6) Computerization at Regional / circle / zonal office :
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 These offices act in between  branches and head office.  These Regional offices exercise effective control over the functioning of the branches including collection of data from them and transmitting the same to the head office after amalgamation(processed data)

Important tasks performed by Regional or zonal offices are a) branch profiles b) inter branch reconciliation c) credit monitoring d) personal data management .

a)      Branch profile includes branch location details such as state, district city ,  rental or owned status, urban or semi urban or rural status etc and budgeted business volumes, actual performance , income and expenditure data etc,

b)       Inter branch reconciliation:The Regional office collects the transaction from branches under there jurisdiction and transmit them to head office  for further processing

c)       Credit monitoring : monitoring of loans and advances  is a major task of any bank which can be  effective  decentralized to regional or zonal authorities to have  effective control by  maintenance of large database at regional office  covering all accounts and details of borrowers . this information helps  regional officer to make decision top plan various  budgetary provisos and policies.

d)      Personal data :  database containing  information about  about its employees , there educational qualifications age, service , posts held, transfer details etc which helps to decide manpower requirement , planning promotions etc

Most of the Regional or Zonal offices use minicomputers and UNIX as as operating system with Informix or oracle as database  

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