Role of Information Technology in Indian banking sector

Technological advancement and economic growth are truly related to each other. The level of technology is also an important determinant of economic growth. The rapid rate of growth can be achieved through high level of technology. Schumpeter observed that innovation or technological progress is the only determinant of economic progress. It is the technological progress which keeps the economy moving. Inventions and innovations have been largely responsible for rapid economic growth in developed countries. Banking industry is backbone of Indian financial system and it is afflicted by many challenging forces. One such force is revolution of information technology. In this Globalized era, technology support is very important for the successful functioning of the banking sector. This research paper focuses on the impact of technology in Indian banking sector. Information technology refers to the acquisition, processing, storage and communication of all types of information by using computer technology and telecommunication system. . In the present paper impact of technology on banking and finance are considering. And shows how it accelerates the growth rate of economy.