To know about the service sectors in India

Impact of Technology on service Sector. Impact of technology In Banking Industry.

Service Sector: This sector India today accounts for more than half of India's GDP. Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others

Different Types of Service Sector In India:

Insurance Sector

Banking Sector

Service sector
Information Technology Industry

Financial Services

Retailing

Service sector in India:

The various sectors that combine together to constitute service industry in India are:

One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports from the services sector. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector

Indian Service Sector

One of the key service industry in India would be health and education. They are vital for the countrys economic stability. A robust healthcare system helps to create a strong and diligent human capital, who in turn can contribute productively to the nations growth

The Indian economy has moved from agriculture based

economy to a knowledge based economy. Today the IT industry and ITE'S industry are the dominant industry in the service sector Media and entertainment have also seen tremendous growth in the past few years.

Information Technology Industry

The Information Technology Being knowledge based

industry has achieved phenomenal growth after liberalization

industry; India has been able to leverage the global markets, because of the huge pool of engineering talent available and the proficiency in English language among the middle class.

Retailing:
Organized retailing with

prominence on self service and chain stores has changed the dynamics of retailing.
In most of the tier I and tier

II cities supermarket chains mushroomed, catering to the needs of vibrant middle class
This indirectly contributed

to the growth of the packaged food industry and other consumer goods.

Financial Services-Banking And Insurance:

Prior to liberalization these

two sectors were controlled and regulated by the government. Nationalized banks and insurance companies had a firm grip over the market.

After liberalization the

banking and insurance domain opened up for private participation

Banking Sector:
The three major changes in the banking sector after

liberalization are: Step to increase the cash outflow through reduction in the statutory liquidity and cash reserve ratio Nationalized banks including SBI were allowed to sell stakes to private sector and private investors were allowed to enter the banking domain. Foreign banks were given greater access to the domestic market Banks were given greater freedom to leverage the capital markets and determine their asset portfolios The banks were allowed to provide advances against equity provided as collateral and provide bank guarantees to the broking community.

Insurance Sector:
The Insurance Regulatory

and Development Authority Act 1999 (IRDA Act) allowed the participation of private insurance companies in the insurance sector. The primary role of IRDA was to safeguard the interest of insurance policy holders, to regulate, promote and ensure orderly growth of the insurance industry.

 The insurance sector could invest in the capital markets and

other than traditional insurance products, various market link insurance products were available to the end customer to choose from. Some of the prominent insurance companies are:

ICICI Prudential Insurance Co Ltd

Bajaj Allianz Insurance Corporation

Birla Sun Insurance Co Ltd HDFC Standard Insurance Co Ltd

Max New York Insurance Co Ltd

Tata AIG Insurance Co Ltd

 Future Trends: Globally outsourcing industry would continue to grow. Following the success of US and UK, more countries in

the European Union would outsource their business. Technological power shift from the West to the East as India and China emerge as major players. Political backlash over outsourcing would come down as companies reap the benefit of outsourcing

Technology Products:
Net Banking
Ticket Booking

Phone Banking

Banking products

Credit Card Online

Online Payment of tax

Banking products

Shopping

Mobile Banking

Bill Payment

CHANGING FACE OF BANKING SERVICES :

Liberalization brought several changes to Indian service industry. Probably

Technology is revolutionizing every

Indian banking industry learnt a tremendous lesson. Pre-liberalization, all we did at a bank was deposit and withdraw money. Service standards were pathetic, but all we could do was grin and bear it. Post-liberalization, the tables have turned. It's a consumer oriented market there

field of human endeavor and activity. One of them is introduction of information technology into capital market The internet banking is changing the banking industry and is having the major effects on banking relationship. Web is more important for retail financial services than for many other industries

PLASTIC MONEY:

Credit card is a financial instrument, which can be used more than once to borrow money or buy products and services on credit. Banks, retail Plastic money was a stores and other businesses generally issue these. delicious gift to Indian On the basis of their credit limit, they are of market. Giving respite different kinds like classic, gold or silver. from carrying too much Over the years, the banking sector in India has cash. Now several new seen a no. of changes. Most of the banks have features added to plastic begun to take an innovative approach towards money to make it more banking with the objective of creating more value for customers and consequently, the banks. attractive. It works on formula purchase now Debit cards-this card is may be characterized as accountholder's mobile ATM, for this you have to repay later. There are have account with any bank offering credit card. different facts of plastic

money credit card is synonyms of all.

MOBILE BANKING :
Taking advantages of the booming market for mobile phones and cellular

services, several banks have introduced mobile banking which allows customers to perform banking transactions using their mobile phones. Mobile banking has been especially targeted at people who travel frequently and to keep track of their banking transaction.

Business Benefits: Greater Customer Convenience Reduced Turnaround Time Cost Savings Customer Delight

RURAL BANKING

:
Rural banking is the process of conducting banking transactions out in

One of the innovative scheme to be launched in rural banking was the

KISAN CREDIT CARD (KCC) SCHMME started in fiscal 1998-1999 by NABARD KCC mode it easier for framers to purchase important agricultural inputs. In addition to regular agricultural loans, banks to offer several other products geared to the needs of the rural people Private sector Banks also realized the potential in rural market. In the early 2000's ICICI bank began setting up internet kiosks in rural Tamilnadu along with ATM machines.

the country where bank branches are too far away to be of use. Rural banking is popular for very small towns and farmers who live far away from areas of larger population and cannot make the drive to these locations whenever they need to use banking services. Typically, an agent of the bank will visit these rural locations and offer to make transactions in an official capacity

E-BANKING :
It generally implies a service that

allows customers to use some form of computer to access account-specific information and possibly conduct transactions from a remote location - such as at home or at the workplace. The obvious advantage to the consumer is convenience E-Banking is becoming increasingly popular among retail banking customers. E-Banking helps in cutting costs by providing cheaper and faster ways of delivering products to customers.

Banks offer a variety of services.

Typical online banking allows a user to check balances, transfer funds between accounts, pay bills and change personal information. Some banks also allow the customer to open and close accounts online, buy stocks and order checks.
Advantages of E-Banking:

Convenience Speed Easy Access

Banking industry is fast growing with the use of technology in

the from of ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years.
Technology has opened up new markets, new products, new

services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples
Information Technology has also provided banking industry

with the wherewithal to deal with the challenges the new economy poses

The IT revolution has set the stage for unprecedented increase in financial activity across the globe. It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities IT has been providing solutions to banks to take care of their accounting and back office requirements