introduction - genesis of the indian banking system the early 1980s were instrumental in the introduction of mechanisation and computerisation in indian banks. this was the period when banks as well as the rbi went very slow on mechanisation, carefully avoiding the use of “ computers ” to avoid resistance from employee unions. however, this was the critical period acting as the icebreaker, which led to the slow and steady move towards large scale technology adoption. over the years technological innovation in banking was meant to achieve a broader reach in terms of consumer banking and continued inclusive growth, to meet the demands of households and businesses, movement from “ class ” banking to “ mass ” banking and quick transmission of information inexpensively and conveniently. we have moved a long way from bis central bankers ’ speeches the age of mechanization in the indian banks to the present age where banks are successfully experimenting with disruptive technologies. perceived benefits of technology usage it was expected that technology adoption would enable the banking sector to be integrated with the global financial markets, adopt international best practices and ensure delivery of superior customer service. it was also envisaged to result in greater productivity, profitability, and efficiency ; faster service and customer satisfaction ; convenience and flexibility ; and space and cost savings. it was presumed that robust and reliable services would be delivered to their customers at a lower cost, as well as help banks to make better decisions. it usage was also expected to result in improving process integration and flexibility, decreasing operational exceptions that climb through the management hierarchy, thus, freeing up management time for decision making. but has this happened? have the banks been able to deliver what they were expected to deliver with adoption of technology? the answers to these questions are not very encouraging. often the inhibiting factors attributed to this would be poor strategic alignment between business and it strategy, absence of appropriate and re - engineered business processes and delivery models, lack of project ownership, poor risk management, ineffective resource management and missing governance principles. also the human resources in banks were drained as they have not done appropriate business process re - engineering before implementing it projects. further, the banks lacked in possessing business and it plans to leverage technology for increasing business and profits. last but not the least, banks have not used information for mis and decision support systems. complex role of the indian banker - manage financial inclusion and crm the role of the indian banker is very challenging. at one end of his spectrum lies the demand to achieve financial inclusion as nearly 50 % of the country

k c chakrabarty : connecting the dots address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the 6th cii ( confederation of indian industry ) banking tech summit 2011, mumbai, 28 june 2011. * * * shri n chandrasekaran, ceo & md, tata consultancy services ltd., shri praveen toshniwal, chairman, cii western region, mr robert lattimore, ed, price waterhouse coopers ( pwc ), shri dev ranjan mukherjee, head - cii gujarat state, distinguished guests, friends from the media, ladies and gentlemen. i am thankful to cii for having invited me over to address the participants of the 6th banking tech summit 2011. at the outset, i would like to congratulate cii and pwc for presenting their report titled “ changing the rules of the game through technology ” and i hope that this report would provide an insight into several challenges which technology seeks to address. technology is changing the cultural and business landscapes beyond recognition. you would agree that world over organisations are using the transformative power of technology to create business value for today, and step - function growth for tomorrow. and the banking sector is no exception. you would be wondering about the title of the speech and what is its relation to banking. i have taken inspiration from one of the quotes of steve jobs in his address to students of stanford university and i quote : “ you can ’ t connect the dots looking forward ; you can only connect them looking backwards. so you have to trust … in something – or your gut, destiny, life whatever. this approach has never let me down, and it has made all the difference in my life. ” can we not be inspired by this and work towards “ connecting the dots ” in our banking “ space ” to create a suitable business environment? my speech today is divided into three main parts. in the first part, i would be touching upon how banking in india has changed / evolved over the years, what the perceived benefits of technology usage are and the complex role of the indian banker. in the second part, i would be speaking on the drivers of the next generation banking which would touch upon analytics, technologies ( including disruptive ones ) and current and possible trends in technology that can be used by banks which would emerge as the game changers. in the third part, i would be covering the recent technological initiatives of the reserve bank. part i