Gorja

  After demonetisation in 2016, digital banking has grown at a faster pace. Most of the Indian banks have launched their internet banking and mobile banking websites to facilitate the customers with online availability of almost all banking products. Internet banking is now a common mode of secure and convenient banking services. Let us understand the concept of Internet banking. What is Internet Banking? Internet Banking, also known as net-banking or online banking, is an electronic payment system that enables the customer of a bank or a financial institution to make financial or non-financial transactions online via the internet. This service gives online access to almost every banking service, traditionally available through a local branch including fund transfers, deposits, and online bill payments to the customers.  Internet banking can be accessed by any individual who has registered for online banking at the bank, having an active bank account or any financial institution. After

    Until recently, much of the industry's attention has been on improving Return on Equity (RoE) as many financial institutions deal with economic uncertainties, restrictive regulatory environment, intense competition, technologydriven disruptions, and overhauling legacy processes to meet changing customer requirements. However, more and more banks are putting a new focus on innovation as many financial institutions re-deploy savings from efficiency initiatives and strategic cost programs into investments — including in technology. 2 Additionally, buoyed by a positive revenue momentum, improved performance and better RoEs, the industry is shifting its attention to sustainable growth measures. BFS companies are considering alternative operating models and evaluating emerging technologies to achieve a wide range of benefits. A look at some of the key trends re-shaping the BFS industry makes it easier to understand the transformations being undertaken by financial institutions to sta

  Functions of a Central Bank The modern banking system is two tiered. This means that at the bottom there are commercial banks i.e. the banks that we interact with on a day to day basis. They are then managed by a central bank which forms the next level in the hierarchy. The modern banking system provides central banks with considerably more rights and responsibilities. In this article, we will study the core functions that are performed by the modern day central bank . The most important functions are as follows: Monopoly over Issue of Currency Notes Prior to the introduction of central banking, every bank could issue its own notes. As such, the economy would be flooded with thousands of different types of notes. The people accepting these notes would have very little idea of what the notes were worth or could be redeemed for. As such, there was less trust in the banking system as a whole. This is when the central banks took over. Central banks, in modern times have been granted the

  Banking in old times was not the tightly monitored and tightly regulated business that it is today. Instead, earlier banking was completely a free market operation. Any entrepreneur could enter and exit the banking business without any restriction or licenses.   In this article, we will trace the evolution of banking   i.e. how banking changed to be the highly regulated business that it is today Goldsmiths to Moneylenders The banking profession, in the strictest sense of the word, was first carried on by goldsmiths in medieval Europe. Since, it was the business of the goldsmith to deal with valuable commodities the goldsmith would build strong vaults to protect their inventory from theft. The residents of the town wanted to rent the goldsmiths secure vault in order to keep their money safe. The goldsmith therefore started taking deposits and this was in a way the birth of modern banking. Over a period of time, the goldsmiths realized that the deposits are usually far in excess of the

  1791 to 1811-The First Bank of United States The First Bank of United States was proposed in the very first meeting of the first congress.  Alexander Hamilton, one of the forefathers, believed that a central bank would be indispensible to facilitate the swift transfer of money across states as well as to provide credit to the state governments . However, the idea faced multiple obstacles from other leaders such as Jefferson. Despite Jefferson’s vehement opposition, the First Bank of United States came into existence in 1791 just 15 years after America gained independence. Jefferson’s opposition was not the only obstacle faced by this bank. The conditions were not rife for banking at that time. There were over 50 different types of French, Spanish, Portuguese and American currencies in circulation at that time. Also, the banks charter was valid only for a limited period of twenty years post which it was supposed to be renewed. The first bank kept expanding its operations during the te