Banking services in India have undergone a remarkable change from the time when India got the independence on 15th august, 1947. Otherwise earlier the only mode of banking which was known to the common people of the country was the indigenous bankers like the private money lenders. But the services offered by these lenders used to be exploitative and also very fraudulent. This is the very basic reason why loan lending authorities failed to make a mark for themselves until the economic reformation in the early years of the decade 1990′s occurred. That economic reformation also brought a revolution in the field of banking services in India.
This led to a global change in the entire concept of banking. The introduction of modern technology such as the use of computers significantly contributed to the welfare of banking services which ultimately gave birth to Online banking services.
Online banking services mark the phase where an almost new type of banking of started. But one more reason that contributed immensely to this concept was the entry of foreign players into the market of banking. These new entrants were the result of the liberalised policies that the government adopted. Since India was a potentially rich place for every type of business. Hence, there was flood of many new entrants. These new players proved to be fruitful for the entire Indian economy. It is because these new banks began to pose a serious threat to the already established nationalised banks. This ultimately resulted in the overall development of banking services in India. The concept of Online banking services is the result of this radical change.
Providing Online banking service has become an integral part of today’s banking module. It is significantly important for the modern banking companies since as the rates of property are touching sky and also it is not possible to setup an entire branch at every place. Also it may lead to incurrence of extra costs. This type of Online banking service allows the bank to reach to the place where the concerned person is at ease. It also saves the users to stand and save their time by standing in long queue’s and in meanwhile wasting precious time. Also today many Online banking services also provides the users to get the knowledge related to any kind of loan or share market aspect just at the click of button. User can also check their balance, withdraw money, transfer funds and perform all other functions just like a normal person in bank can do.
Another main feature that has today caught the eye of every person is the fixed deposit. Today almost every bank is offering rate of interest above 9% in fixed deposit. The advantage of this high rate of interest is not limited to a certain age group but it is open to a person belonging to any age group. The high rate of interest in the fixed deposit is the result of high intensity competition. This is why today every bank is trying to offer higher rate of interest than the other. While for the senior citizen, it is quite max in profits, for other age groups it is only marginally less than that of the senior citizens. One unique thing about these fixed deposits is that they are only for a short period of time. They are generally for a period of one year or one and half. This short period is the prime reason why now and more and more people are now going for it without hesitating.