is the key for the new managers to designing strategies for their organizations. broadly along an analysis of transition trends by edward e. furash, we attempt a somewhat loosely structured tracking of the emerging realities of banking in india. an appreciation of these trends would perhaps help map the competencies that new generation managers may require to convert these challenges of the changing environment into opportunities. the trend from deposit banking to financial services first, there is the transition from banking to financial services. banks are uniquely poised to broaden their product lines into the complete offerings that would go under the rubric financial services. this would imply a new founded emphasis on marketing ; be it of investment, insurance and other products that consumers want. banks have advantages in their image of trustworthiness and their extensive distribution systems. how they convert this into a marketing advantage will determine how they win market shares. the trend from balance sheet to off - balance sheet intermediation then there is the trend from balance sheet to off - balance sheet intermediation. banking is no longer confined to ‘ acceptance of deposits for the purposes of lending ’ - today it refers to intermediating and managing risk. as the scope of intermediation expands to incorporate market risks, bankers are taking a view on how they will strategically position themselves in this new environment. while some will, perhaps, choose to migrate rapidly to off - balance sheet investment - or merchant - banking activities, others may stress volume origination which they can securitize and then manage for a fee, and still others may continue to position themselves as traditional banking retail players focusing on deposit intermediation. nevertheless, the trend to off balance sheet intermediation and the complexities that it entails will demand that the some managers of the future be equipped with financial skills in a significantly greater measure. the trend from capital adequacy to capital efficiency thirdly, there is the transition from capital adequacy to capital efficiency. the basel ii prescriptions have already put us on track for transition from the traditional regulatory and market measures of capital adequacy to an evaluation of whether a bank has found the most efficient use of its capital to support its new business mix. in effect, future plans may therefore include the fluid use of capital, an approach that has been called the " just - in - time balance sheet " management, in which capital flows quickly to its most efficient use. this transition in how capital is used and how much capital is needed will become a significant factor

recognition ) clearing systems in mid 1980s which brought in great level of automation in cheque clearing process besides standardising the cheque in terms of its physical dimensions. 12. after nearly twenty odd years of micr clearing, the cheque truncation system ( cts ) was introduced first in new delhi in 2008 and now all the erstwhile 66 micr centres have been subsumed into three grid - cts systems. with this, a very large share of cheque clearing in the country takes place on t + 1 basis as if they were being cleared as ‘ local ’ cheques. further, standardisation of cheque features with built - in fraud prevention measures have also been brought in the form of cts - 2010 cheque standards. apart from cts, there are over 1200 smaller clearing houses mainly catering to local requirements of clearing small number of cheques and in most of these centres, depending upon the time of depositing the cheques at the branch for collection, the funds could be realised within the same day. for a country of our size, this is no mean achievement of having t or t + 1 clearing of cheques and that too with certainty as funds are generally released to customers after the associated ‘ return clearing ’. not many countries can boast of this. 13. though cheque clearing was made efficient through micr clearing, the inherent issues with cheques posed challenges especially when they were being used for bulk and repetitive payments such as collection of utility payments, payment of dividends, etc. to address this growing need and also to reduce the use of cheques for such payments, the electronic clearing service ( ecs ) was introduced in early 1990s, ecs credit to facilitate one - to - many payments such as dividend, salary, interest payments, etc. and ecs debit to facilitate many - to - one payments such as utility payments. ecs in itself has undergone many changes from being a local system to a regional system and then a national level system. these changes have been facilitated by the adoption of cbs in banks which has enabled straight - through - processing of payments. further efficiency has been brought in this sphere with the operationalisation of the national automated clearing house ( nach ) by national payments corporation of india ( npci ). this is a pan - india system for processing bulk and repetitive payments and the ecs is gradually being subsumed into nach. 14. moving further along the path of non - cash,