A History of the IT Saga in Indian Banking
DEPARTMENT OF INFORMATION TECHNOLOGY FINANCIAL SECTOR TECHNOLOGY VISION DOCUMENT
Mission Statement
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Corporate Objective:
“Enabling financial sector to leverage on I T for better customer service, improved housekeeping and overall systemic efficiency”
Chapter I Introduction The IT saga in Indian Banking commenced from the mid eighties of the twentieth century when the Reserve Bank took upon itself the task of promoting automation in banking to improve customer service, book
keeping, MIS and productivity. This role played by the Reserve Bank has continued over the years. Some of the major landmarks in this regard are: v The introduction of MICR based cheque processing – a first for the region, during the years 1986-88; v Computerisation of branches of banks – an activity which commenced from the late eighties with the introduction of ledger posting machines (LPMs), advanced ledger posting machines (ALPMs), followed by stand alone computer systems which metamorphosised into network based systems and the latest development pertaining to the installation of Core Banking solutions; v Facilitating computerisation of Government business – from the late nineties which has now resulted in all branches handling Government business perform their functions using technology; v The setting up of the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad in the mid nineties, as a research and technology centre for the Banking sector; v The commissioning in 1999, of the Indian Financial Network as a Closed User Group based network for the exclusive use of the Banking sector with state-of-the-art safety and security. The network supports applications having features such as Public Key
Infrastructure (PKI) which international networks such as S.W.I.F.T. are now planning to implement ; v Commencement of Certification Authority (CA) functions of the IDRBT for ensuring that electronic banking transactions get the requisite legal protection
Mission Statement
>
Corporate Objective:
“Enabling financial sector to leverage on I T for better customer service, improved housekeeping and overall systemic efficiency”
Chapter I Introduction The IT saga in Indian Banking commenced from the mid eighties of the twentieth century when the Reserve Bank took upon itself the task of promoting automation in banking to improve customer service, book
keeping, MIS and productivity. This role played by the Reserve Bank has continued over the years. Some of the major landmarks in this regard are: v The introduction of MICR based cheque processing – a first for the region, during the years 1986-88; v Computerisation of branches of banks – an activity which commenced from the late eighties with the introduction of ledger posting machines (LPMs), advanced ledger posting machines (ALPMs), followed by stand alone computer systems which metamorphosised into network based systems and the latest development pertaining to the installation of Core Banking solutions; v Facilitating computerisation of Government business – from the late nineties which has now resulted in all branches handling Government business perform their functions using technology; v The setting up of the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad in the mid nineties, as a research and technology centre for the Banking sector; v The commissioning in 1999, of the Indian Financial Network as a Closed User Group based network for the exclusive use of the Banking sector with state-of-the-art safety and security. The network supports applications having features such as Public Key
Infrastructure (PKI) which international networks such as S.W.I.F.T. are now planning to implement ; v Commencement of Certification Authority (CA) functions of the IDRBT for ensuring that electronic banking transactions get the requisite legal protection