As the name suggests this article will show how banking system underwent digital transformation, its benefits and the bright economic future that it has for India. The reference nation here will be our motherland India.
So what do you mean by Digital Transformation
It is a kind of digital/non-physical avatar of physical form of any product/service. When we talk about Banking Digital Transformation, it would mean that how banking services like money deposit, cash withdrawals and use of physical cash in hand and all other financial transactions that we did at the bank or any other similar institution dealing with money, are now done electronically i.e. in digital/non-physical form.
Advantages of Banking Digital Transformation/Real Life Examples of how things became easier with it:
- If you wish to deposit money in your Sister’s bank account for Raksha Bandhan money you can Paytm it or IMPS it. No need to visit the bank with cash and fill a cash deposit form and deposit money in her account.
- If you wish to withdraw cash from your bank account so that you can visit local telephone exchange and clear your telephone dues, just login into telephone service provider’s portal, select the pay bill button and use net banking/debit card issued by the bank to debit the amount electronically from your account and spare you the hassle of paying any physical visits to premises of both.
What it needed for Banking to undergo Digital Transformation
The very second time NDA regime under the leadership of Late PM Mr. Atal Bihari Vajpayee, IT was given a top priority, so as to take India into the digital world and make its economy compliant with upcoming in future business cum global economic standards, paving way for India to change its lane from developing to developed nation on the global economic highway.
As a result, entire infrastructure that was crucial to operate physical banking operations was replaced with digital infrastructure and subsequently this more than decades old exercise is still in continuance and reinventing it and the situation has come to such a level that their is no economic activity in the world that India is not a part of.
To conclude, one can easily say that banking digital transformation that began decades ago has proven its worth and has the potential to take India to take heights in economic development.