Name: Sufyan S.

Shaikh
Roll No.: 115
Enrollment No.: 202000913010110
DIGITAL BANKING
CONTENTS
1. What is Digital Banking?
2. Digital Banking Products and Services
3. History of Digital Banking
4. Channels of Digital Banking
5. Digital Banking
6. Current Status of India in Digital Banking
7. Data for Digital Banking During Pandemic.
8. Pros & Cons
9. Conclusion
 What is Digital Banking?
Digital Banking is the move from traditional banking activities and programs services towards an online platform
which is available to customers of a bank and they can get the access of their account situated in the bank via a
digital medium.

Customers can access their accounts data from anywhere, anytime and anyplace. Banking services are available
24 hours a day, 7 days of a week and 365 days in a year.

In simple words, “ Digital banking refers to the availability of banking services in an online mode”.
DIGITAL BANKING PRODUTS AND SERVICES
S.r. Digital Banking Utility
No. Services
1. Obtaining Bank Statements To view and download bank statements for any specified period using Net Banking
over the particular bank website where the account is associated.
3. Mobile Banking Banking through an appropriate application of the banks where the accounts of the
customers of banks are opened it can be opened on their smart devices and the
customers can easily access their accounts as per their needs.
4. Cash Withdrawals Automated Teller Machines (ATM) facilitates cash withdrawals at any time as they
provide a service at any point of time.
Automated Teller Machines (ATM) are easily available at any locality.
5. Payment of Bills Bills such as Electricity Bills, Gas Bills, Mobile Post-paid Bills can be paid using digital
banking services. Auto debit features can be easily setup upon monthly basis so
that there are regular payments of bills without any delay in payments.
HISTORY OF DIGITAL BANKING
The earliest forms of digital banking of ATMs and cards launched in the 1960s.
By the 1990s the Internet became widely available and online banking started becoming the
norm.
 The improvement of broadband and e-commerce systems in the early 2000 led to the modern
digital banking world today.
The rise of smartphones through the next decade opened the door for transactions on the go
beyond ATM machines. Over 60% of consumers now use their smartphones as the preferred
method for digital banking.
ICICI Bank was the first bank to initiate digital banking revolution in India as early as 1997
under the brand name ‘Infinity’.
CHANNELS OF DIGITAL BANKING
Automated Teller Machines (ATM’s).
Cash Deposit Machines.
Net Banking.
Mobile Banking
Point of Sale (POS)
Debit & Credit Cards.
DIGITAL BANKING
Digital Banking: What Consumers Worry About?
The percentage chart is as per the questionnaire filled by 56 persons.
12.5%
Poor
% Functionality Diffi 8.9%
25 eed c ul
Sp t to
w Us
Slo e

No
Sec .5%

26
Co urity

tA
rns

.8% le
62

vai
nce

l ab
CURRENT STATUS OF INDIA IN
DIGITAL BANKING
The launch of UPI and BHIM by National Payments Corporation of India has been the major
step of innovation in the domain of Payment system.
Today banks are looking to provide fast, accurate, and quality experience of banking to
customers, and Digitalization has become one of the top priorities of banks in India.
The recent annual report of 2020-2021 of Reserve Bank of India (RBI) showed the total digital
transactions volume in the year 2020-2021 stood at INR Rs. 4,371 crores against Rs. 3412
crores in the year 2019-2020 showing the flexibility of the digital payment system in the face of
the Covid pandemic.
DIGITAL BANKING DURING 2020-2021
COVID-19 PANDEMIC
PARTICULARS 2020 2021

Payment Transactions 9% 14%

Pensions 11% 22%
Advice on a bank service 15% 23%
Information on a bank service 13% 23%
Securities Investment 14% 25%
Taking out a Mortgage 15% 29%
Taking out consumer loan 16% 33%

Source: Statista
DIGITAL BANKING DURING PANDEMIC
Digital Banking During Covid-19 Pandemic
16%
Taking out consumer loan 33%
15%
Taking out a Mortgage 29%
14%
Securities Investment 25%
13%
Information on a bank service 23%
15%
Advice on a bank service 23%
11%
Pensions 22%
9%
Payment Transactions 14%
PROS & CONS
Sr. PROS CONS
No.

1. Digital Banking is Always Open for Spending Money has Become a Little Too
Business & Consumers Easy
2. Digital Banking for a Better Online No Personal Relationships
Experience
3. Convenient as all get out Security can be an issue

4. Deposit and check anytime Shopping just got too easy

5. Schedule and forget your bills Difficulty depositing cash

CONCLUSION
There is a rise in a new area of banking sector from the time of the demonetization occurred
during the year 2016 which resulted in the development of the new concept of UPI by the
Reserve Bank of India and National Payments Corporation of India which resulted in a greater
impact on the banking sector through different modes which is connected throughout the world.
Digital Banking is promoted by Reserve Bank of India, National Payments Corporation of India
and by the Government of India to use maximum products of a bank in a digital way.
It also gives good contribution in growth to the Banking Sector.
The main aim of Digital Banking is to reduce paperwork and connect every citizens of India
with the banking systems with high speed internet connectivity through digital medium.
REFERENCES
https://rbidocs.rbi.org.in/rdocs/AnnualReport/PDFs/0RBIAR202021_F49F9833694E84C16AAD01BE48F
53F6A2.PDF

https://economictimes.indiatimes.com/news/economy/finance/digital-payments-up-30-2-in-fy21-rbi-data/ar
ticleshow/84828643.cms?from=mdr

https://www.hindustantimes.com/brand-post/how-new-trends-has-helped-digital-banking-10162886622686
2.html