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1.2.1 Developmentin banking by ITTechnologyis emerged as a back bone of the banking industry. It helped in enhancement ofefficiency and transparency of banking system as well as changed the structureof banking system. Some of the changes came after introduction of moderntechnology in banking as follows:-    (Source:Pankaj Goel & Shobhna)1. Core bankingSolutions (CBS): Before introduction of InformationTechnology (IT) in the Banking. The customers were recognized by the customerof the branch of the bank. It means the detail of the customer is available inthe branch only and the services are providing to customer from his home Branchonly.

If customer wants to avail banking services from some other branch, thenthe detail of the customer is transfer from home Branch to other Branchesmanually and it takes much time.AfterIntroduction of IT in Banking, Banking are changed from not only taking depositsand providing loans to an  institution toprovides an catalogue of products & services under one roof. All theseactivities are performed by bank is called Core Banking. InCore banking Solution, Customers can avail facilities of bank at any nearestbank branch. It is happen only because customers account detail is store inCentral server of the Bank and this detail of customer is available to all theBranches of bank. 2.

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Centralized branch automation (CBA):RBI taken step for Centralized branch automation, bank has using Centralizedbranch automation software in those branches were they are doing 80% of their businessof the bank. These branches are introduced single customer ID concept in whichall the accounts of the customer can be recovered.3.Computerization: Computerization isintroduced in banking since 1993. By the introduction of computerization the revolutionis come in industry. It is necessary to cope-up from the overload of work asrequired for further growth. It can help in reduce corruption, increasedaccuracy, transparency, improve customer care and customer service capabilityand increase customer satisfaction.

Computerization is increase the workingefficiency of banks as well as caters large number of customers from onebranch. This is an earlier impossible to given instant service to customers. 4.

Internet banking:”Internet banking” refers to systems that enable bank customers to accessaccounts and general information related to bank products and services througha personal computer (PC) or other electronic device (Chakraborty, 2015). Internet Bankingalso called on-line banking is nothing more than traditional banking servicesdelivered through an electronic communication device viz. the internet. InternetBanking can facilitate customers to use their services by browsing bankswebsite from their person computer. It allows customers of bank to operate theirbanks accounts, make transactions, make money transfers, bill payments andcarry on their business 24 hours, seven days a week access.(i) Basic Level services Websitesin which banks Provide information about the products & services providedto the customers.(ii)Non-Transactional Websitesin which customers can check account balances, transactions, ordering chequebooks and downloading statements.(iii)Transactional Banking Websites inthis customer can transfer funds in their accounts as well as third partytransfer, investment, application of loans, application for credit cards,payment of bills (utility bills, mobile bills) and deposits.

  (Source: P. N. Varshney, 1986 Banking Law andPractice)5.Mobile banking: Mobile banking isrelatively a new form of electronic banking has become one of the customerfriendly facilities; it takes the bank to the customer’s cell phone.

Mobilebanking is a convenient mode of using banking services and make financialtransactions with the help of Mobile apps or Mobile telecommunication devices24 hours a day, seven days a week access. Use of Mobile banking in three ways SMS messaging; mobile web; or through apps. Mobileapps are software application which is provided by the bank. This applicationcan be downloaded directly from the bank website or from i-tunes store. Ithelps in instant excess of their account balance, check the latest transaction,fund transfers, bill payments etc. (Source: P.

N. Varshney, 1986 Banking Lawand Practice)6.Automated teller machine (ATM): Bythe end of 1990, private and public sector banks in India came up with theirown Automated teller machine (ATM) net works under the initiative of the IndianBanks Association in Mumbai. The Bank of India was the first nationalized bankto render ATM facilities to its customers in Mumbai. Automated teller machineis also known as automatic teller machine. It is a electronic outlet of bankwhich allows customers to complete transactions, particularly cash withdrawal,fund transfer in own account or others account, check account balances etc.without the help bank employee or bank teller 24/7.

There are two primary typesof ATMs.(i)The basic machines which allow customers to withdrawal cash, fund transfer andcheck mini statement of their account.(ii)The more Complex and advanced Machines which accepts cash and update accountinstantly. To use advanced features of the complex machine, the customer has toopen his account with bank which operates the machine.(Source:P.

N. Varshney, 1986 Banking Law and Practice)7.Magnetic ink character recognition (MICR)cheque processing: As the name suggest MICR is a Character Recognition andTechnology used in banking industry for speed up the processing and clearanceof cheques. RBI is given each bank branch its own unique MICR code which helpsto increase the pace of cheque clearing process. Magnetic inks bar codes areprinted on the bottom of every bank branch cheque leave.MICRis contained nine digit numeric codes where each three digits contained someimportant detail of bank.

The first three digits represents the city code (bankbranch is located in which city).Next three digit represents the bank code(name of the bank) and last three digits represents the bank branch code (toidentify the location of bank branch in city). (Source: www. money (Credit/Debit cards): PlasticMoney refers to the hard plastic cards we can use for make payments instead ofactual bank notes. Credit cards and debit cards are the two popular plasticcards issue by the banks or financial institutions.(i) Credit card:Credit card refers to purchase in credit and pay later. It allows the cardholder to withdrawal cash, also permits to purchase goods and services up tothe set spending limit.

(ii) Debit cards:Debit card is directly linked with the card holder’s bank account and permithim to spend up to the cash balance is available in the account. Debit card isassociated with the concept of “pay now” As the card used for purchase goodsand services immediately amount is deducted from the bank account associatedwith card. (Source: P. N.

Varshney, 1986 Banking Law and Practice)Effective use CustomerRelationship Management (CRM) with IT.Ingeneral Customer Relationship Management (CRM) is the concept of businessstrategy built with the view point of providing improved customer service.Customer relationship management practices relates with the communication andalso deals with organization has with its own clients, whether they are linkedwith product and service.

Customer relationship management works for the highercustomer satisfaction as well as increasing business wealth. By knowing yourcustomers better will make you to serve them in a better way and keep themloyal. This is the main theme of customer relationship management.

However, theunderstanding of the term customer relationship management is still incompleteand developing by the time has passed. Some authors said customer relationshipmanagement as a business strategy, as a philosophy, as a business process, as atechnological tool or as a policy framework. As a business strategy CRM is acustomer focused strategy with the aim of increase customer satisfaction levelas well as customer loyalty by providing more effective and customized servicesto each customers. CRM as a business philosophy according to R. Lynette &K. Simon (2001) “CRM is a relationship orientation, customer retention andsuperior customer value created through process management”. CRM as businessprocess according to R.

K. Srivastava, T.A. & L. Fahey (1999) “defines as ahighly macro-level processes that subsumes large number of subprocesses, suchas identification of customers, creation of customer knowledge, build customerrelationship and shaping their perception”. CRM as a technology according to M.

H. Hsieh (2009) “CRM is an enabling technology for organizations to fostercloser relationships with their customers”. As a policy CRM is a customerfocused system in which policies and strategies are framed to retain the existingcustomers, generated references and also focus on new customers by the aim ofincreasing the business income.

Efficient DigitalEconomyThefast evolving global information infrastructure including informationtechnology and computer networks such as the Internet and telecommunicationssystems. This system has made universal development of electronic commerce at aglobal level. The closely universal connectivity worldwide has been offered byInternet.

It is an invaluable business tool with the banks has made thepersonal life of the customers not only easy but comfortable also. The timesaving is tremendous and the time value is measured in terms of money. Thesedevelopments have created a new type of economy, which is termed as ‘digitaleconomy’. This fast developing economy is bringing with it rapidly changingtechnologies due to that there is increase in knowledge as well as also givenew forms of business and service delivery channels such as E-banking. E-bankis the electronic bank that provides the financial service for the individualclient by means of Internet (Dhadwal & Rajinderkapil, 2017).1.

3 Risks of IT in Banking”Internetbanking, electronic banking and other modes of e-banking have been a blessingfor banking as far as speed, convenience and cost of delivery is concerned, butalongside it has brought many risks” (Solanki, 2012). By growing competition inthe banking sector Information technology plays important role in acquiring anadequate market share in industry for every bank. But side by side there isalso risk of data breach is immense. It is a challenge for the banks to securetheir customer data as well as given confidence to their customers to maximumuse of internet banking. To save the data and information from theft by theintent of crime, frauds etc. Types of RisksBanks has toupgrade their system to save customers data by giving unique identificationnumber & protect the main server of bank by arranging firewall, which cansave the data of bank network from the users of other networks by set a deviceconfigured to permit and deny.

         (Source: Solanki,2012)1. Fraud mobile apps: Due to the large number of mobile Apps,it is very difficult to give ranking fraud, is the key challenge in front ofthe mobile App market (Ranjitha, at al. (2016). Customers are assumed ifthe application is downloaded from application store is authenticated, But somefake applications are made exactly similar. Fraud apps are made to access yourfinancial information with the intention of crime. Download app directly fromyour bank website for avoid these scams.2. Identity theft: The criminals are using the identity of others for financial gain.

Intoday’s environment, an individual is often need to disclose personalinformation, such as phone numbers, a signature name, address, banking and carddetail. If criminals able to access this information on the basis of thisinformation he or she commit fraud in the customer’s name. (RichardJ. Sullivan, 2008).3. Phishing:Hackers sending randomly emails to people with fake links trying to getsensitive information of those people who click on that link, such as username,passwords and credit card detail etc. The criminals do not have a specifictarget in mind, nor do they know exactly who will fall victim.

They simply knowthe more emails they send out, the more people they may be able to fool.(Source: The monthly security awareness newsletter for computer user, The SANSInstitute 2013).4. Reputation risk: Reputationrisk is the risk of negative image of bank due to negative public opinion.

Bankreputation is negative by internet banking services due to giving limitedconnectivity or poor software. If customers are unhappy with the services ofthe bank, then there is rare chance, to forgive by customers. This is not goodfor the growth of institution (Solanki, 2012).5. Card Skimming:ATM Skimming is a world-wide problem. Card skimmer are a devices used bycriminals to capture card holder data from magnetic strip.

Criminals areinstalled this device top inside the card reader in ATM’s. When consumerinserts his card into the card reader, skimmer captures the card informationbefore passing it into ATM’s card reader. Skimmer allows downloading personal data of everyone who used the ATM.This sensitive Information of consumer is passed through this skimmer device.(Source: Transactions/Operationsrisk: Transaction operation risk is a high level of riskarises due to various internal and external factors.

It can be exists withnegligence or without proper planning, implementation or proper evaluation. Therisk incurred due to the delivery of each product and services in which thetransaction risk is affected by the structure of institution’s processingenvironment. The complexity by which the services offered and by which theprocesses and supporting technology. If bank is offering some scheme throughinternet banking but at the end bank unable to given such services thecustomers are face problems (Solanki, 2012).

7. Safety of user id& passwords: Consumers are habit to use similar userid & password in all online accounts. If the email account is hacked, thenthe sensitive information is also leaked. Hacker can steal your money by usingyour information. To avoid this scam frequently changed your usernames andpasswords.

1.3.1 Data Breach of Indian Banks in 2016InOctober 2016, biggest scam came under the knowledge with the data breach ofdebit cards from various banks like SBI, HDFC BANK, ICICI BANK, YES BANK ANDAXIS BANK.3.2 million debit card holders were compromised. The card holders areinformed that there debit cards are used in China without their knowledge.Impact of data breach leads to the replacement of largest number of debit cards,which becomes the biggest card replacement drive in Indian banking history.

Statebank of India informed the blocking and replacement of 6 lakh debit cards oftheir clints.

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