Effects of Digital Banking on Indian Economy

The term bank was derived from Italian word BANKA or a French word BANQUE both mean a Bench or money exchange table. In past, European money lenders used to show coins of different countries on benches and tables for the purpose of lending and exchange. The time passed and evolution in the banking sector reached it towards the great height. Now the well-established financial system is managed by proper banking system and provides aid in transmitting flow of funds from surplus sector to the deficit sector. The system enrooted such a way that all the necessary transections are aided with banking channel and nothing wrong in that. Today due to digitisation in the banking industry the transactions became smoothened and become so quick that no hurdle is been experienced in payment and settlements. The present paper attempts to justify the effects of digitisation on banking in Indian economy.