A Study On Emerging Technology Among Digital Wallet in Digitalization of Banks

Abstract

Internet facility is a credit for making the customers to be smart in using it for their financial and nonfinancial transactions. Especially the customers make use of the internet facility which is supported in computers and smart phones. The option through internet, debit and credit card and mobile phones makes customers feel more comfortable and relaxed. The customers get their official and professional hour for availing banking services which they are supposed to do. Hence the customers do not need to be time and space bound. While E-banking has improved efficiency and convenience, it has also posed several challenges to the regulators and supervisors. Initiatives of Indian Government and Reserve Bank of India (RBI) have facilitated the development of e-banking in India. The Government of India enacted the Information Technology Act, 2000, which provides legal recognition to electronic transactions and other means of electronic commerce. The RBI has been preparing to upgrade itself as a regulator and supervisor of the technologically dominated financial system. It issued guidelines on risk and control in computer and telecommunication system to all banks, advising them to evaluate the risks inherent in the systems and to take necessary steps for the same. Many control mechanisms like Payment and Settlement Systems Act, 2007 and National Payments Corporation of India address the risks in the e-banking system. The existing regulatory frame work over banks has also been extended to e-banking. It covers various issues that fall within the frame work of technology, security standards and legal and regulatory issues.