ROLE OF INFORMATION TECHNOLOGY IN ENHANCING THE EFFECTIVE FUNCTIONING OF INDIAN FINANCIAL SYSTEM: AN EMPIRICAL STUDY

Reserve bank of India undertook important steps covering IT infrastructure and implementation of new applications to ensure safety, security, soundness, efficiency, accessibility and authorisation in the payment and settlement systems. The payment and settlement systems are the highly important arenas of the economic and financial infrastructure and contribute to the overall economic performance and financial stability by facilitating efficient financial intermediation. Indian financial system has got plenty of payment systems and products reflecting continuation of traditional paper based mode of payments along with a significant growth in a range of diverse electronic modes of payments. Technology is reason behind the developments in payment and settlement systems in India. In our nation the growth of the Technology based payment and settlement systems have been significant in recent years. The Reserve Bank of India plays critical role in harnessing the benefits of advances in Information