INTRODUCTION

The term Innovation means to make something new.Banks no longer restricted

themselves to traditional banking activities, but explored newer avenues to increase business
and capture new market.
INDIAN BANKING SECTOR
rom the time bank o! Bengal"#$%&', (ualitative and (uantitative changes taken place )ith
#*+, regulation, the -BI was proclaimed the central bank o! India In the #**%s, greater
emphasis being placed on technolog. and innovation ./ew concept like personal banking,
retail banking, total branch automation, etc were introduced.The term innovation
meansto make something new. Banks no longer restricted themselves to
traditional banking activities but explored newer avenues to increase business
and capture new market.
INNOVATIONS
Category I: Types Of Innovative Banking
Category II: Types Of ro!"#t $ Servi#es
Category III: E%e#troni# Syste&s
Types of Innovative Banking
'( E)BANKING
0nables people to carr. out most o! their banking transaction using a sa!e website which is
operated b. their respected bank.Online banking (or Internet banking or E-
banking) allows customers of a fnancial institution to conduct fnancial
transactions on a secured website operated b the institution! which can be a
retail bank!virtual bank! credit union or building societ.
A!vantages
aster 1 more convenient transaction
/o longer re(uired to wait in long (ueues
2pening o! account simple 1 eas.
3ppl. !or bank loan
4ost e!!ective !or banker side
und trans!er become !aster 1 convenient
5tock trading, exchanging bonds 1 other investment
*( INVEST+ENT BANKING
4reating !unds and wealth o! clients
und creating in two wa.s 6
4orporate inance
7 1 3s
8ro!essional sales person providing advice on stock trading
, (RURA- BANKING
It provides 1 regulates credit services !or the promotion 1 development o! rural sector
mainl. agriculture, 55I, cottage and village industries, handicra!ts and man. more.
E.a&p%es Of Regiona% R"ra% Banks are /3B3-9, :3-;3/3 5T3T0
4280-3TI<0 380= B3/> ?I7IT09, 5;/9I43T0 B3/>, @/IT09 B3/> 2
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KIOSK BANKING
/( NRI BANKING
This !acilit. is designed !or diverse banking re(uirements o! the vast nri population spread
across the globe.
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0(RETAI- BANKING
It re!ers to banking in which banks execute transaction directl. with individual , rather than
corporate banks.
It is also known as 2ne stop shop.
Servi#es:
5aving and checking accounts
7ortgage
:ousing inance
3uto inance
4onsumer 9urable ?oans
8ersonal ?oans
0ducational ?oans
4redit 4ards
1( CORE BANKING
9epositing and lending o! mone.
4ore banking solution
>nowing customers needs
2( CORORATE BANKING
Servi#es:
2verdra!t !acilit.
9omestic and international pa.ments
unding
4hannel !inancing
?etters o! guarantee
)orking capital !acilit. !or domestic 1 international trade
T3ES O4 RODUCTS $ SERVICES
'( TOTA- BRANC5 AUTO+ATION
5peed up bank transactions and less error
7ore customer !riendl. and !lexible
Towards paperless transactions
*( AN3 BRANC5 BANKING
It is a !acilit. !or customers to operate their account !rom an. o! the same banks network
branch
4a#i%ities avai%a6%e:
4ash withdrawal 1 4ash deposits
3ccount statement
acilit. to issue multiA cit. che(ues
und trans!er
Balance en(uir.
8urchase o! demand dra!ts pa. order
-epa.ment o! loan account
,( +ICRO4INANCE
It re!ers to a movement that envisions a world in which low income households have
permanent access to a range o! high (ualit. !inancial service to !inance their income
producing activities, build assets, stabiliBe consumption and protect against risks.
/( -ASTIC +ONE3
8lastic mone. are the alternative to the cash or standard mone.
4onvenient to carr.
Ceneric term !or all t.pes o! bank cards, debit cads, credit cards, smart cards
0( +OBI-E BANKING
The account that can travel with .ou.
acilit. one can bank !rom an.where,
at an. time, 1 in an. condition or an. how
Type of E%e#troni# Syste&s
'( AT+
It stands !or 3utomatic teller machine In simple words, it is simple to use sel! service
solution.<alue added services like recharge their mobile, pa. the utilt. bills, mutual !und
transactions, etc
*( RTGS
It stands !or -eal time gross settlement s.stemIt is a !und trans!er mechanism where trans!er
o! mone. takes place !rom one bank to another on a real time and on gross basis. This is
the !astest possible mone. trans!er s.stem through the banking channel.It is di!!erent !rom
0T and /0TIt is primaril. !or large volume transactionThe time taken !or e!!ecting !unds
trans!er !rom one account to another is normall. D hours
,( 4INAC-E
This s.stem provides the holistic and integrated trans!ormation approach, complete with
solutions and services
4ore banking solution
0Abanking solution
7obile banking solution
)ealth management
4-7 re(uirements, etc