DEVELOPMENT OF BANKING

INDUSTRY FROM BRICKS AND

MORTAR TO MOBILE

PRESENT BY
SHAIK IMRAN
 INTRODUCTION
What is Banking industry?
A bank is a financial institution that accepts deposits
from the public and creates Demand Deposit.
Lending activities can be performed either directly
or indirectly through capital markets. 

Types of banking sector in India are:

1. Public sector Bank
2. Private sector Bank
TYPES OF FINANCIAL INSTITUTE IN INDIA
ARE:
1. Commercial Banks
2. Merchant Banks
3. Mutual Funds
4. Investment banks
5. Credit union banks
6. Saving and loan associations
7. Mutual saving banks
What is mobile technology?
Mobile technology is the technology used for cellular
communication. Mobile technology has evolved rapidly over
the past few years. Since the start of this millennium, a
standard mobile device has gone from being no more than a
simple two-way pager to being a mobile phone, GPS
navigation device, an embedded web browser and instant
messaging client, and a handheld gaming console.
 FIRST BANK IN INDIA

BANK OF HINDUSTAN THE FIRST BANK ESTABLISHED IN INDIA, WHICH WAS STARTED IN 1770
THIS IS THE OLDEST BANK STILL EXISISTANCE IN INDIA IS CALLED STATE BANK OF INDIA
 THE FIRST INDIAN BANK TO HAVE BEEN STARTED AND NOT
INVOLVING ANYONE WITH INDIAN CAPITAL INVESTMENT IS PUNJAB
NATIONAL BANK

 THE FIRST INDIAN BAN TO OPEN OVERSEAS BRANCH IS BANK OF

INDIA. IT ESTABLISHED A BRANCH IN LONDON IN 1946

 THE OLDEST EXISTING PUBLIC SECTOR BANK IN INDIA IS ALLAHABAD

BANK

 THE FIRST INDIAN COMMERCE BANK OWNED AND MANAGED BY

INDIANS IS CENTRAL BANK OF INDIA
LALA LAJPAT RAI IS THE FOUNDER OF PUNJAB NATIONAL BANK

THE UNION BANK OF INDIA WAS INAUGURATED BY MAHATMA

GANDHI IN 1919

THE RESERVE BANK OF INDIA INSTITUTED IN 1935

 HISTORY OF ATM IN INDIA

The first ATM in India was set up in 1987 by HSBC in Mumbai.

In the following twelve years, about 1500 ATMs were set up
in India. ... After the collapse of Swadhan, Bank of India,
Union Bank of India, Indian Bank, United Bank of India and
Syndicate Bank formed an ATM-sharing network called Cash
Tree
 HISTORY AND GROTH OF PLASTIC MONEY IN INDIA
1. Plastic money as the name suggests the money made out
of plastic, an easy way to make payment in exchange of
goods and services to reduce the usage of cash.

2. The concept plastic money came into 1900’s and the first
plastic card was used in USA.

3. The idea behind using plastic money was to make

payment system cashless. Plastic money includes ATM
cards, credit cards, debit cards etc.
4. plastic money was to make payment system
cashless. Plastic money includes ATM cards, credit cards,
debit cards etc.

5. The Plastic Money in the form of cards has been actively

introduced by banks in India in 1990's. But, it was not very
popular among Indian consumers at the time of its
introduction.
 MONEY LENDING ACTIVITIES IN INDIA
A financial institution (FI) is a company engaged in the
business of dealing with financial and monetary transactions
such as deposits, loans, investments, and currency exchange.

TYPES OF MONEY LENDING ACTIVITIES IN INDIA ARE:

1) HOME LOAN
2) EDUCATION LOAN
3) BUSINESS LOAN
4) VEHICLE LOAN
5) PERSONAL LOAN
6) GOLD LOAN
7) AGRICULTURE LOAN
8) OBER DRAFT CASSH CREDIT
9) LOAN AGAINST BANK FDs
10) LOAN AGAINST MUTUAL FUND AND SHARES
 MOBILE BANKING IN INDIA

In India, traditional branch-based banking remains the most

widely adopted method of conducting banking transaction, at
the same time commercial banks are undergoing a rapid
change majorly driven by the information &
telecommunication (ITC) technology.

ICICI bank pioneered in mobile banking services in India.

Among public banks, Union Bank of India was first to
introduce mobile banking (2010).
Today many commercial banks have launched mobile
banking using ITC technology and now they can reach out to
customers and provide them with not only general
information about its services.
the opportunity of performing interactive retail banking
transactions anytime, anywhere Some banks in India have
started providing the mobile banking service to their
customers that include State Bank of India (SBI), Union Bank
of India (UBI), Punjab National Bank (PNB), HDFC, ICICI, Axis
Bank, etc
DIFFERENT TYPES OF APPS IN MOBILE BANKING
1) Phone pay
2) Google pay
3) Pay Tm
4) Amazon pay
Other apps that works through banks

International payment apps are :

5) Pay pal
6) Remit to India
7) World Remit
8) Money gram
 Transaction Limits in Mobile Banking
 Only Indian rupee transactions and these transactions
are
allowed within India only.
 Per day transaction cap of Rs.50000 has been removed
by RBI, and every bank can change this cap depending
upon their risk.
 Transactions without end-to-end encryption is
Rs.5000/-
(SMS Based).
 Security and Authentication
The highlights of security and authentication guidelines pro-
vided by the RBI on Mobile Banking:
The mPIN or higher standard of mechanism should be
used to authenticate the Mobile Banking customer.
 End-to-end secure encryption mechanism should be fol-
lowed in transactions
 Bank should conduct regular information security audits
on the mobile banking systems to ensure complete security.
 MAJOR SERVICES IN MOBILE BANKING
Account information
1. Alerts on account activity or passing of set thresholds
2. Monitoring of term deposits
3. Access to loan statements
4. Access to card statements
5. Mutual funds / equity statements
6. Insurance policy management
Payments, Deposits, Withdrawals and Transfers.
1. Cash-in, cash-out transactions on an ATM
2. Domestic and international fund transfers
3. Micro-payment handling
4. Mobile & Direct to Home package recharging
5. Purchasing tickets for travel and entertainment
6. Commercial payment processing
7. Bill payment processing
8. Peer to Peer payments (e.g., Pop money, Isis)
9. Withdrawal at banking agent
ISSUE AND CHALENGES OF MOBILE BANKING

Customer awareness
Security issue and privacy
Virus and malware attack
Risk in sms mobile banking
Authentication issue