OPPORTUNITIES AND CHALLENGES IN E-BANKING SERVICE IN DIGITAL ERA
DR.L.SENTHIL KUMAR Assistant Professor (Department of Commerce),
KEERTHIVASAN S, SATHYAPRIYA R (II-M.COM)
Sri Krishna Arts and Science College /Bharathiar University, India)
ABSTRACT
Another word often used interchangeably with electronic banking is “digital banking”. Both words are used equally often. However, strictly speaking, banks rarely or do not use paper money. However, the use of paper money is still widespread. Today's ATMs are an important part of the banking system because they allow consumers to withdraw money when needed. In the digital economy, there are almost no monetary transactions. Cash is often thought of as something that is free. But using cash is expensive. Foreign exchange spending is discussed in a Harward Business Review research article titled “Countries that would benefit most from a cashless society.” Consumer expenses (like ATM fees, foreign exchange commissions, etc.) are included in cash costs. Because, To analyze the impact of CBDC concerns on the global environment, Dong (2021) studied statistical models. If CBDCs are the only method of capturing value, then higher interest rates cannot lead to financial disintermediation. Due to the complementarity of these deposits and the deposits offered by CBDCs, banks and companies will lend more money and invest more in them. The central bank has asked banks and non-banking financial companies (NBFCs) to ensure that digital lending applications (DLA) do not automatically increase credit limits and access to resources their mobile. borrower. RBI said borrowers must be given time to review or seek exit from the digital loan by paying the principal and corresponding Annual Percentage Rate (APR) within this period without incurring penalties in 'Guide to digital lending' for regulated institutions or RESs (banks). and NBFC). However, it is still unclear how CBDC will actually affect the banking industry and the economy. Ten of the eleven countries that have introduced official digital currencies are small nations in the Eastern Caribbean, including Jamaica and the Bahamas. In October 2021, Nigeria became the only major country to introduce CBDC for retail. Therefore, the RBI will have to introduce CBDC and conduct pilot testing very carefully. Banks' operating costs have been significantly reduced thanks to digital banking. With this, banks can now offer better deposit interest rates while charging lower service fees. Bank profits increased due to reduced operating costs. Conclusion: Indian banks still have a long way to go before adopting technology at par with banks around the world.
Keywords: Digital Banking, Digital Currency, Blockchain Technology, Digital Retail Lending
