Challenges of E-Banking System In Reaching Rural Customers

In India there are 6,40,867 villages and 68.84% of population resides in rural areas that offer a huge potential to the economy (Census 2011).Banking sector being the forefront of the economy has ventured into many innovative services to cater the need of these non-urban residents and e-banking is one of the most splendid offers in this context. Because of the advent of information technology there is a change in the banking sector which has paved way for the introduction of retail electronic payment system and has progressed in the recent years in various countries and India has left no way behind. Implementation of internet in banking system has modernized the banks. E-banking has alchemized the conventional way of banking through providing countless benefits to its users. But the adaptability of e-banking in rural areas is not in consensus with the proliferate growth of e-banking observed in other areas. In this context the present paper attempts to explore different factors that might be interrupting the burgeoning development of e-banking in rural areas. The objective of the paper is to examine and analyse the progress made by the internet banking in India. The paper details the challenges faced by e-banking system in reach out the rural people, and attempts to give some suggestions to enhance the level of overall satisfaction of rural customers and resultant rise in the propensity to use e-banking as a primary channel of banking.