Things are changing now after the introduction of Core Banking Solutions (CBS). The size of customer-base is expanding and the banks’ service points, both brick and mortar branches and virtual branches, are steadily on the increase. Under the branchless banking mode, there are 337,678 outlets, most of which are in rural areas. A small electronic gadget has entered rural India through this model, operated by the Business Correspondents at her/his residence.
The number of credit cards has gone up to 19 million and debit cards outnumber them at a whopping 394 million. According to Reserve Bank data, the number of bank customers using mobile banking has increased from 12.96 million in 2011-12 to 35.53 million in 2013-14, registering an increase of 58 per cent. The value of the annual transactions has gone up from Rs.18.21 billion to Rs.224.38 billion during this period of three years. Rate of growth of Debit card usage has been higher at 28 per cent as against 25 per cent in the case of credit cards during the last three years.
Traditionally bank cheques, demand drafts and travelers’ cheques were means available to bank customers for making payments, locally or out-station locations. With the advent of digital banking, the utility of these instruments of payments has undergone remarkable changes. Travellers’ cheques are almost out of circulation and are being replaced by Credit cards, which can be used at international levels also. Demand drafts are also losing their relevance. There is a visible shift from cash payments to electronic payments. Payments by cheque even for outstation receivers are now free of cost and the amounts are credited immediately. Transactions through real time gross settlement have increased by 18.38 per cent in terms of volume and by 8.48 per cent in value terms during the current year.