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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

elements of their operating ecosystem to create a lements of their operating ecosystem to create a
e
s
significant customer experience.ignificant customer experience.

Indigenous Banking:
The exact date of presence of indigenous bank is not he exact date of presence of indigenous bank is not
T
exactly known. But, it is sure that the old banking it is sure that the old banking
s
system has been functioning for centuries. Some ystem has been functioning for centuries. Some
people suggests the presence of indigenous banks to eople suggests the presence of indigenous banks to
p
the Vedic times of 2000-1400 BC. It has excellently 1400 BC. It has excellently
f fulfilled the needs of the country in the past.ulfilled the needs of the country in the past.

However, with the approaching of the British, its aching of the British, its
f failure started. Regardless of the fast growth of ailure started. Regardless of the fast growth of
modern commercial banks, however, the indigenous odern commercial banks, however, the indigenous
m
b
Figure5: India’s Mobile Banking OpportunityFigure5: India’s Mobile Banking Opportunity banks continue to hold a noticeable position in the anks continue to hold a noticeable position in the
I
Indian money market even in the present times. It ndian money market even in the present times. It
includes seths, shroffs, chettis,ttis, mahajans, etc. The
i indigenous bankers give money; act as money ndigenous bankers give money; act as money
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changers and finance internal trade of India by means hangers and finance internal trade of India by means
o
of hundis or internal bills of exchange.f hundis or internal bills of exchange.

The main defects of indigenousindigenous banking are:
1. They are disorganized and do not have any They are disorganized and do not have any
communication with other sections of the banking nication with other sections of the banking
world.
2. They associate banking with trading and They associate banking with trading and
commission business and thus have presented ommission business and thus have presented
c
t trade risks into their banking business.rade risks into their banking business.

Figure6: Mobile banking user forecastsMobile banking user forecasts 3. They do not differentiate between short term and They do not differentiate between short term and
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long term finance and between tong term finance and between the purposes of
Some Challenges: finance.
As per the report of FICCI, BCG, and IBA; 17% As per the report of FICCI, BCG, and IBA; 17% 4. They do not give receipts in most cases and they They do not give receipts in most cases and they
c
of the users were unaware about bank’s digital of the users were unaware about bank’s digital charge out of proportion interest in regard with harge out of proportion interest in regard with
other banking institutions in the country.ther banking institutions in the country.
offerings, 35% were aware but were not using, 7% offerings, 35% were aware but were not using, 7% o
were unhappy user and 42% were fulfilled users. were unhappy user and 42% were fulfilled users.
The challenge here is to convert alertness into is to convert alertness into SUGGESTIONS FOR IMPROVEMENTSIMPROVEMENTS OF
practice. INDIGENOUS BANKING ARE:ARE:
MSMEs 70% and shopkeeper transaction’s 90% MSMEs 70% and shopkeeper transaction’s 90% 1. The banking practices need to be The banking practices need to be upgraded.
were done through cash &cheque, only 8% were done through cash &cheque, only 8% 2. These banks should be connected with These banks should be connected with
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MSMEs collect orders online, and only 4% agree MSMEs collect orders online, and only 4% agree commercial banks on the basis of certain ommercial banks on the basis of certain
u
payments online. This is completely improper in a payments online. This is completely improper in a understanding in the respect of interest charged nderstanding in the respect of interest charged
digital world and thus becomes a chadigital world and thus becomes a challenge. f from the borrowers, the confirmation of the same rom the borrowers, the confirmation of the same
by the commercial banks and the passing of the y the commercial banks and the passing of the
24% do not know how to use Mobile banking 24% do not know how to use Mobile banking b
apps, 16% don’t know about bank’s app and 12% apps, 16% don’t know about bank’s app and 12% discounts to the priority sectors etc.ty sectors etc.
of them have fear of hacking. 3. These banks should be stimulated to become These banks should be stimulated to become
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corporate bodies rather than continuing as family orporate bodies rather than continuing as family
Despite the huge possible and wellDespite the huge possible and well-established based enterprises.
promise of digital financial services, there is a need promise of digital financial services, there is a need
for the users to adopt a general approach on neral approach on -going
digital and combining business strategy with all the digital and combining business strategy with all the

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