BANKING AFFAIRS

Detailed explanation-1: -Notes: The process of introducing computerization in all branches of banks began in 1993 in line with the Committee on Computerization in Banks’ recommendations, which had been submitted in 1989.

Detailed explanation-2: -In 1988, Reserve Bank of India set up a Committee on computerization in banks headed by Dr. C. Rangarajan. Banks began using Information Technology initially with the introduction of standalone PCs and migrated to Local Area Network (LAN) connectivity.

Detailed explanation-3: -By 1982, a decision had been taken to computerise cheque clearing operations. Slowly, it was extended to the central bank’s clearing houses and for its own transactions.

Detailed explanation-4: -It is electronic transfer or exchange of money from one to another account. This exchange of money takes place across multiple financial institutions through computer systems to help banks offering money transfer service to their customers from any bank branch account to other branch bank.

Detailed explanation-5: -Firstly, computers help store the information of customers in a systematic way and verifying financial records quickly. Further, they also make online banking possible which is a convenient way to make quick transactions and perform other banking functions.