It is the reach and capacity of information technology that has facilitated banks to transcend the limitations of, geographical spread, burgeoning transaction volumes and, to an extent, human resources. Banks are expanding their size and services to cater to fast increasing customer needs through technology enabled payment systems, internet based access and innovative service delivery modes.
Other important business activities of banks such as participation in securities, currency and money markets, besides compliance functions like reserve maintenance, regulatory reporting etc. are all having processes heavily dependent on information technology. Even in case of internal work processes having large component of manual processing, dependence on computers and IT based communication mechanism is increasingly felt.