The Information Technology applications in the banking and financial sector in India have grown sharply in recent years. IT can be leveraged to bring about significant improvements in a number of areas including decision making, house keeping, customer service, payment flows, etc., in the banking and financial sector. To ensure the accrual of optimal benefits, necessary human resources development measures and requisite steps to beef up security in IT use have to be taken. Therefore, there is a need to prioritise the areas for the effective use of IT applications. Further, there is also a need to map out the direction for the effective use of IT in the banking and financial sector in the country.

The Reserve Bank of India has set up a Working Group on Priority Areas in Banking Technology, consisting of experts, to prioritise major areas of emphasis, to be addressed by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad in this regard. The IDRBT at Hyderabad has been set up by the Reserve Bank of India to undertake, among other things, projects and activities that may be necessary for furtherance of the use of information technology in the banking and financial sectors.

The composition of the Working Group on Priority Areas in Banking Technology is :

1.	Prof. P.Rama Rao	Chairman
	Vice Chancellor,
	University of Hyderabad,
2.	Dr.K.K.K.Kutty,	Member
	Chairman,
	M/s. Goldstone Softech Ltd.,
3.	Shri Ramesh Gelli,	Member
	Chairman and Managing Director,
	Global Trust Bank Ltd.,
4.	Shri R.Chandrasekhar,	Member
	Chairman & Managing Director,
	Andhra Pradesh Industrial Infrastructure
	Corporation Ltd.,
5.	Dr. V.P.Gulati,	Member-Secretary
	Director, Institute for Development and Research in
	Banking Technology,

The terms of reference are:

1. Identification of technology areas that impact customer service in the banking and financial sector and generally improve payment flows.
2. Identification of research areas that could be of relevance to banking and financial sector with the ultimate objective of achieving improved house keeping, decision making and customer services.
3. Identification of educational programmes and their implementation to meet specialized demand for Information Technology experts in the banking and financial sector.
4. To suggest measures generally to increase the use of electronic media for payment services, thereby reducing the use of paper based instruments and cash.
5. To suggest the necessary steps to improve security in IT use, and for this purpose, undertake research with collaboration, if necessary, with other institutions/entities within the country and outside the country.

The Working Group on Priority Areas in Banking Technology will submit its report to the Chairman of the Governing Council, Institute for Development and Research in Banking Technology (i.e., Governor of the Reserve Bank of India) by July 31, 2000.

Alpana Killawala
General Manager

Press Release : 1999-2000/1324