A Study on Digital Banking in India

Dr. Komal gupta

Assistant Professor, faculty of Commerce

Kalinga University

The concept of electronic banking includes doing financial transactions entirely online without using paper documents like demand draughts, pay-in slips, or checks. It denotes the accessibility of all banking functions online. Without needing to physically visit a bank branch, online banking allows you the convenience of conducting all standard banking tasks whenever you want, without restriction. You can conduct digital banking on a laptop, tablet, or smartphone. This is the main goal of digital banking in India. Here are a few of its benefits.

One of the most important benefits of digital banking is having the capacity of transferring money. There is no need to deal with the trouble of issuing Request Drawings or checks.

In India, Covid-19 has effectively added a new dimension to the development of digital banking. During that time, digital adoption in India grew rapidly. At the micro level, change was made possible by the advent of emerging digital participation from other financial firms. According to a Mastercard global poll, Indians are the most open to adopting novel methods of electronic payment in the Asia Pacific region. In addition, the study paper from Boston Consulting Group (BCG) notes that India’s digital growth is due to a “surplus of capital, maturing infrastructure, and beneficial underlying customer demographics.” Indian banking is serving as a “model banking of the future,” paving the way for the adoption of QR codes and UPI payments. The oversight of data and lending both have to use this strategy.

Digital Banking Prof=ducts and Services

The following list includes the different kinds of goods and services:

Bank Statement: Account holders don’t need to visit their bank’s branch in order to get their notebooks updated; instead, they are able to review or download the bank records for any time period.

Mobile banking: Online banking via a smartphone or tablet app is referred to as mobile banking. These apps enable users to see balances on their accounts, send and receive payments, invest in fixed deposits, and more

Fund Transfer: With the help of digital banks, it is no longer necessary to use checks and visit a bank to transfer money thanks to services like NEFT, IMPS, RTGS, and UPI.

Payment of Bills: The auto-debit option enables users to set up automatic payments for bills so they never forget to pay one.

Finance: Through online banking, an account user may make investments, obtain loans, and open fixed-income accounts.

Advantages of Digital Banking for Entrepreneurs

Every component of the financial ecosystem — Customers, Financial Institutions, Banks, Governments, and Businesses – has profited from digital banking.

Convenience and Effectiveness: Businesses can now access all the offerings they require at all times and are not anymore restricted to the bank’s business hours. This functionality is useful, particularly when transactional activity is frequent.

Greater Usability: Customers are able to open accounts from the comfort of their homes thanks to the linked KYC and AML features. In addition, banks can conveniently and swiftly serve clients through online ID verification innovations and risk evaluation procedures.

Saving Money: By reducing the stages and employees needed for routine transactions, digital banking systems lowers the possibility of expensive financial mistakes.

Increased Cooperation with Banks: An opportunity to connect and fortify banking relationships is being observed as more firms have become open to working with banks.

Tailored Services

Financial possibilities, learning materials, and interactive tools are among the informative and entertaining content that digital banks provide their customers.

Several Features: Customers of digital banks can invest in cryptocurrencies, gold, or stock markets using their bank’s mobile app, and this is something that an established bank cannot do.