development, speed of transaction processing and reduction in transaction costs. in india the major issue about new technology related delivery channels is their impact on the processing of information, which lies at the core of banking business. inspite of their advantages, reliance on technology based delivery channels often exacerbates traditional risks : operational risk ( since it requires changes in procedures ), reputational risk ( if the bank fails to deliver secure, accurate and timely service ) and legal risk ( uncertainty about which legislation applies to e - banking transactions ), besides emergence of other risks ( business and credit risks ). atms still remain the most successful delivery channel followed by telephone banking and internet banking. with about 9000 off - site and on - site atms installed, banks are effectively reaching out to a large customer base at a substantially lower cost. typically, it costs close to rs. 50 per transaction if conducted in a branch and the same if done through atm costs about rs. 15. in order to reduce the cost of transaction banks have started out - sourcing and sharing of atm services and this trend will gather momentum in near future. as this delivery channel gains mass acceptability and is user friendly, the bank can use it to cross - sell its as well as others ’ products. for example, banks have already started dispensing railway tickets, movie tickets through their atms. in future a bank ’ s atm would function like a kiosk delivering more of non - cash transactions, thereby simultaneously reducing the fixed and operating cost of atm. internet banking - an emerging delivery channel - offers significant cost advantage to banks. a net - based transaction costs the bank only around rs. 4 and costs per transaction are even lower than those of an atm, mainly due to savings on prohibitive real estate costs. internet banking has failed to take off due to a combination of psychological, legal, technological and socio - economic factors. lack of critical mass of early adopters, lack of a strong trust environment, slowness in adoption of the internet, low penetration of pcs and access to internet are some of the impediments in the adoption of internet banking in india. with drastic fall in cell phone tariff and emergence of seamless connectivity between fixed and mobile lines, mobile banking is set to emerge as one of the cost - effective delivery channels in near future. toll - free - numbers would also gain popularity as an important delivery channel. although banks abroad are using call centre as a delivery channel for some time

the activities in which they are engaged, the difficulties they have as a private sector generally, and the specific impediments to operating in the export sector. this would also involve the use of the “ doing business survey ” carried out by the world bank and a more targeted survey with the oecs environment as its base. the next step would be to identify actual and potential sources for entrepreneurs in the oecs domain. the following are being suggested : 1. the transformation of some of the traditional trading firms by providing incentives for them to enter the export sector ; 2. citizens of the oecs in various diasporas involved in business ventures who may be enticed back to their countries, or more appropriately, to the single economic and financial space. they need not move completely, but have a branch of their business in the space as an outpost of the original business. there is a publication entitled the “ new argonauts ” by annalee saxenian which chronicles such operations by entrepreneurs in the united states from ireland, india, israel, the peoples republic of china, the republic of china on taiwan and south korea. 3. middle level professionals who have good networks, local and regional knowledge, and business acumen who could be incentivized into becoming entrepreneurs. two forms of organisation are available to them, namely, production cooperatives and investment clubs. these are critical in small societies which require joint activities to establish the critical mass necessary to ensure success. 4. another potential source would be the excess workers in the public and banking sectors who have the regulatory and organizational skills to participate in entrepreneurial projects. the key factor would be the use of separation packages which provide funding, training in business development and management, a menu of projects carefully developed to identify the areas in which we have a comparative advantage which can be leveraged into a competitive advantage, and the establishment of clusters of export - oriented activities which have the critical mass to attract complementary and supporting functions which are commercially viable, such as research facilities. 5. finally, a robust investment in encouraging young people in primary and secondary schools and recent school leavers to become entrepreneurs through targeted programs. examples of these could be the widespread establishment of science clubs, savings clubs, 4 h clubs, and the junior achievement programme. a very important exercise would be the identification of focal points in each country where scientific activities are being conducted. organizations such as ministries of agriculture, education, health and public works are all heavily involved in scientific activities,