User:Lalita Malusare

= Paperless Banking : =

Meaning of paperless Banking
Paperless Banking means banking functions performed without paperwork. online banking, Mobile Banking, and Digital banking are the parts of Paperless Banking system. when in the banking transaction you eliminates paperwork and you makes your transaction with digitally then it is Called paperless banking. paperless banking is environmental friendly but not perfectly. because in the paperless banking system some digital resources are used like credit card, Debit card, Computers, hard disk, parts of ICT, etc. therefore these resources may be damaged to the environment and we can not say that paperless banking and Environmental banking are not same.

Characteristics of Paperless banking
1. Paperless Technology mainly focuses on the reduction of paper work in the business organization. 2. Paperless technology is a part of Information technology and networking. 3. Paperless Banking is usages computer and Networking system and smart devices to replace paperwork transaction. 4. Paperless Banking Technology is environmental friendly. 5. Banking system is now moving toward the paperless and Indian banking system also looking for paperless. 6. Paperless Banking Technology uses smart cards to reduces paper transaction. 7. Electronic Document signing: Basic withdrawal and deposits are now can be performed with paperless using NEFT, transfer, e-wallets, Debit credit Cards. It can save 300-400 sheet of paper in a day. 8. Converting Paperless office: paperless banking technology allow to bank office to use digital storages. Digital storages like computer, internet networking storages paperless office solution etc. 9. Serve Customer Faster: it is faster service with avoiding physical rush and paperwork it works with login and gives faster services to the customer anytime anywhere. 10. E-Signature Solution: Paperless banking technology allows customer to make sign digitally. Documents digitally signed, saved and retrieved

Bank to Customer:
The Bank is a financial Institution which is formed to meet the financial needs of the customers that’s why banking institutions provides various financial and non financial services to the customer. In this types of transaction following services are included.

Loans :
Personal loan, Home Loan , Home Loan, Personal Loan, Business Loan, Education Loan, Gold Loan, Vehicle/ Car Loan, Loan against Insurance Policy, Loan against PPF and some Industrial loan agriculture loan and so on. In traditional loan system you require to go bank fill the form attach so many documents and physical verification survey are made and after that you will get the loan and also repayment procedure is critical. But paperless banking technology provides easy loan services to the customer. Needy can online fill applications for the requirement no need to go bank. Bank gets applications and some basic and important information by using PAN and ADHAR number. Within less paperwork loan is sanctioned.

Paperless Account Opening:
Paperless banking technology offers you to open digitally and totally paperless bank Account. With this services customer get easily account in bank and easy to operate using online or Mobile banking system. In India Digi bank YONO SBI, IDBI have applied this service. The Paperless account can be open using PAN and Adhar Card E-KYC using registered Mobile Number with OTP.

Fund Transfer:
It is now become very easy to make payment or fund transfer to other. By using online banking ,EFT, RTGS, using Mobile wallets and Mobile banking, using Adhar card and UPI – BHIM etc. this all transfer can be done without use of paperwork’s and it also gives transaction receipt by way of email or you can see in mobile application etc.

Other paperless Service
Bank to Customer: There are some other services also provided by the using paperless bank technology. Like request for services, request for bill payment, cheque book request, cash deposits machines. Transaction history, e-bank statement,

ATM and CDM:
It proved paperless cash withdrawal and cash deposits to the customers. ATM also provides various services to the customer like transfer fund, mini statement, balance check, pin change and service request etc.

Website of bank and SMS alert:
The bank websites provides Information to customer as well as user. The website of banks is important media and intermediate between customer to bank, necessary information like rate of interest various loan schemes, offers and changes in rule of RBI and commercial banks has been displayed over the Internet. The website is provides fully paperless services for guidance to the user.

Digital Passbook:
Using Kiosk digitally can see and print the information over the passbook, PNB; Union bank provides customer m-passbook services to view the mini transaction history. Patthadhar passbook service are offered by bank for digital passbook

Customer to banks:
These types of transaction involves the request for e-statement, application for loan and account opening, account balance check, loan repayment, request for bill payments, enquiry about various offers and services etc are transaction flow from customer to bank. These transactions are now become easy using various digital paperless services. Customer uses various services facilities of banking services the main transaction is cash withdrawal. Paperless banking technology allows to customer cash withdrawal by using ATM card, with UID and virtual cards. In these transaction customers do not use paper slips forms to transfer the fund and for withdrawals etc. But 90% and above transaction of withdrawal have been done using ATM card. These paperless services help to customer to make easy banking. In India there are 660 million Smartphone users and it is possible to make banking transaction with help of mobile. Bank to bank Transaction: banking system spread all over the world and connected with Endless customer. In the banking system there are many types of banks and have their branches  which is spread all over the India and outside India also. Therefore banks provide worldwide facilities they can spend money received money and pay for merchant and so on transactions. The settlement of the transactions and credit or debit over the bank can be settling by using ECS. Electronic Clearing Service. ECS is an electronic clearing system that facilitates paperless credit / debit transaction directly linked to your account and also provides for a faster method of effecting periodic and repetitive payments.

E-KYC:
RBI has made KYC mandated to all banks and other financial institutions strictly follow the rules regarding KYC to ensure the authenticity of the customer. Address proof, Identity Proof are the document which prevents from unwanted malpractices and money laundering frauds. Now banking sector in India is becoming the digital and gradually all procedure are converting to digital form hence KYC is also becoming paperless by using UID PAN and OTP mobile verification. Adhar number provides basic information as identification and address of the account holder and it can be possible by electronically.

Advantages of PAperless banking
Advantages of paperless banking technology: A paperless banking service provides various tool and product to customer and creates mechanism to operate it at anytime anywhere. There are numerous advantages of paperless banking.

24/7 Access to Banking Information
You can access your accounts online and from your mobile devices whenever you want to check the status of a transaction, see account balances, pay bills, and more.

Find Transactions Quickly
You will know exactly what transactions are still outstanding, as long as you have kept an electronic check register, like that birthday check you mailed your grandson several months ago which still hasn’t cleared your account.

Electronic Statements
You can download or view your account statements online each month and have access to banking statements from previous months and years. Rather than having to wait to get your paper statement in the mail, you can typically access the electronic version within 24 hours of its posting.

Improved Account Management
You can help reduce the risk of fraudulent and unauthorized transactions because you are able to access your information electronically and will notice when something does not look right. You can find out if your account might be compromised sooner, rather than later when you get a paper statement in the mail and run the risk of numerous fraudulent transactions during the statement period.

Online Bill Payment Services
You do not have to worry about keeping paper checks around the home or on your person. You can schedule and pay bills online, where our credit union will process the transactions on your behalf.

Reduced Risks of Identity Theft
Identify theft is a big concern these days. You do not have to worry about various disposal methods for getting rid of old paper bank statements when you go paperless. Some people will go to great lengths to steal someone’s identity, even going through their trash looking for bank statements. Even if you shred the statements, there are unsavory individuals out there who have the patience to put them back together like a puzzle!

Helps the Environment
Going paperless helps the environment since you are not wasting paper on bank statements or paper checks. Plus, using less paper helps preserve our forests and reduce pollution.

More Customer Service Options
Many of our members enjoy being able to have access to self-service features like online banking and electronic statements. This enables them to access their account details when it is convenient for them. In addition, they have access to complete and accurate information, which results in happier members.

Document Organization:
The ability to quickly locate and disseminate information may enhance your company's efficiency and professional image. Spending time hunting through piles of paper slows down response time in an age when most answers are only a few keystrokes away. By scanning electronic copies of receipts and invoices, documents can be sorted, filed, and organized for quick retrieval when it matters most.

Client Communication
Client Communication is Faster and Less Expensive By maintaining a customer email list, you can instantaneously communicate sales and special offers without incurring postage and printing expenses. With the advanced technology of smart devices, most people have immediate access to emails. While it increases efficiency, electronic communication also decreases storage costs as the amount of paper copies littering your office will begin to dwindle.

Paperless Files
Paperless file Are Easily Saved and Retrieved on the Go: With the advent of photo-scanning apps, business travelers can easily back up expense reports without needing to save a pile of papers to bring back to the office. Electronic files can also be shared with coworkers over a network or via email. Shifting to paperless documentation also makes the transportation of data more efficient, without the need for cumbersome fax machines or document couriers.

Automatic Backups
When you accidentally throw out an important paper, it's usually gone forever. However, maintaining electronic files allows for multiple backup points. Data can be saved on flash drives, in the cloud, or to an external hard drive. For vitally important financial data, cloud-based accounting systems provide automatic backups on a pre-scheduled basis, which eliminates the need for small business owners to set aside time for manual backups.

Data Security:
Customers will always be concerned about privacy and data protection, which requires companies to respond by implementing proper data security procedures beyond locked filing cabinets and paper shredders. Many of today's cloud-based accounting systems offer bank-level data security to protect financial and customer information, which is more than most small companies with limited technology staff can afford to build in-house.

Environmental Friendliness:
According to the Environmental Paper Network's most recent State of the Paper Industry report, paper usage in North America is decreasing while the amount of paper recovered for recycling is increasing. Companies are striving to recycle, yet office copy paper alone still accounts for over 20 percent of the total paper usage in the United States. But being green is more than just reducing paper production. A paperless environment may also mean less energy consumption. Small businesses use less energy when printers, faxes, and copiers are inactive.

Financial Benefits:
The savings of going paperless extends beyond just the cost of the paper, which can be substantial. The cost of other office supplies like ink cartridges also decreases. Additional upgrades or replacements to expensive office equipment such as copiers and fax machines may also decrease in a paperless office.

Problems in Paperless banking:
As per the general survey conducted on the paperless banking following problems are detected.

Digital Literacy:
The Digital literacy is a big problem to adaption of the paperless technology in the banking sector. Bank customer are not habitual with the paperless tools like debit card credit card, mobile banking and online banking.

Trust:
The trust is also a barrier to adoption of paperless banking in the selected area. People still believe that traditional banking is safer than paperless banking or online banking. In the metro city like Pune the online, mobile banking rate are shows increase trend.

Training program:
Bank didn’t organize any program for customer for use of technology.

Security Risks
External threats such as hacking, sniffing and spoofing expose banks to security risks. Banks are also exposed to internal risks especially frauds by employees / employees in collusion with customers

Use of Debit Card:
Most of the customer use ATM card or debit card to make payment withdrawal and other transaction therefore they don’t want online transaction.

Social Factor:
Digital banking or paperless banking tools are not so use because of most of female and senior citizen account holders.

Availability:
The ATMs, CDM, and other paperless tool like PoS are also makes great impact on non adoption of paperless tools. Conclusions: Banking sector in India is becoming more digital from the late 1990. The mobile banking, online banking systems, green banking and paperless banking system are technology based concept and now it is necessary for the banking sector. In India – Maharashtra paperless banking system is in emerging trend and in some metro cities is rapidly replacing the traditional banking. There are some problems regarding technological based banking due to social and educational elements.