INTRODUCTION TO INDIAN BANKING SYSTEM:
OBJECTIVE- Here our main objective is to analyse the impact of mergers and acquisition in banking sector in India. We will try to find out from the experience of US and EU how Indian banking sector will respond if some major players merge together. In this report we will create a situation in which five big players in banking sector merge together and we will analyse the effect of merger on Indian Banking sector.
In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, ...view middle of the document...
Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19.
ERA OF REVOLUTION IN BANKING:
IT IN BANKING- Information and communication technology has brought a transformational change
in banking operations and payment systems in banks.
Core Banking Solution (CBS) - With Core Banking Solution, banks can effectively meet challenges of
reducing operational cost and establishing customer intimacy.
Automated teller Machines - Now with the huge network of ATMs there is no need for the customers
to visit the bank branches and stand in long queues to withdraw or deposit money.
Smart Cards- It is popularly known as plastic money. These pocket sized integrated circuit embedded
cards have eliminated the need for paper money.
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Internet Banking - It has eliminated the need to visit bank branch to a great extent. Just sit in the comfort of your house and customers can perform any banking transaction
MICR and automated cheque clearing - Magnetic ink character recognition (MICR) allows computers to read the number printed on the cheque. Eliminated human errors. This saved
1The time required to transfer cheques from one city to other and reduced the cheque clearing time from 3 days to 1 day.
Mobile banking - his has further increased the ease for a bank’s customer. Now the customer does not require a pc or laptop to get in connection with his bank.
RFID in Banks – usage of RFID technology for the better customer relationship management. New tech savvy banks like YES bank use this technology for its customers so that it can give a personal touch to its customers when they enter its premises.
Bank2.0- Bank2.0 seems to be the future of banking. Banks can start maintaining their own blogs, create financial forums, provide video tutorial and video calling and engage in community banking. Banks actually need to provide a platform for interaction among its customers.
COMPETITION COMMISSION OF INDIA
Competition is a basic mechanism of the market economy and it encourages companies to provide consumer products according to their preferences. The explanation for competition law or policy is ultimately and essentially to improve consumer welfare. Main objective is to improve production.
Competition Commission of India is a body of the Government of India responsible for
enforcing The Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. The Competition Act, 2002 has been enacted with the purpose of providing a competition law regime that meets and suits the demands of the changed economic scenario in India. The Competition Commission of India (CCI) has drawn the Reserve Bank of India’s
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