Information Technology (IT) - An Overview2

Importance of information technology

The importance of information technology cannot be ignored by banking and insurance sectors, except at the cost of elimination from the competition. This is so because the use of information technology produces certain advantages, which are not available when the traditional and conventional methods of doing business are used. The use of information technology generates the following advantages and benefits:

Ø easy handling of day to day affairs of an organization,
Ø speedy disposal of routine and daily works,
Ø assurance of authenticity, integrity and confidentiality in the functioning of the organization,
Ø cost economy,
Ø integration and interaction with the global institutions and organizations,
Ø better communication and presentation facilities,
Ø assurance of safety and sound security of the sensitive and valuable information, like trade secrets,
Ø instant transfer of data and information where the situation demands,
Ø it provides access to public documents which are digitalized by various department s of the Government,
Ø for making online payments of various bills and dues,
Ø to file statutory documents online , etc.

These benefits development of information technology can be claimed by all business ventures, including banking and insurance sectors, but apart from that its advantages are claimed by various other sectors which are discussed as follow :

1. Development to Banking business,
2. Development in Forensic Science and Police Wireless
3. Development in Railways
4. Development of IT in Agriculture
5. Role of Information Technology in Alternative Dispute Redressal & Judicial recognition
6. Development of IT in Health and Medicine

1) Development to Banking business

The benefits and advantages of information technology for the smooth and efficient functioning of the banking business cannot be disregarded and sidelined. This is more so when a bank proposes to deal in "Internet banking " which is an important offshoot of information technology. Its proper and methodical use can bring the following advantages.

(A) Sound Payment System:

The usage of electronic means of funds movement and settlement is still in its stages of formative years. The various forms of electronic based payment, such as credit cards, Automated Teller Machines (ATMs), Stored Value cards, Shared Payment Network Service (SPNS) etc, are emerging at an incredible speed. Many banks have made initiatives aimed at electronic modes of funds movement. While this is a positive development, it needs to be ensured that such funds transfers are made in a high level of security so that no unauthorized usage occurs in the newer modes being implemented by banks. It is this area, which has been the focus of attention by the Reserve Bank - and the efforts have now resulted in the form of the Structured Financial Messaging Solution (SFMS).

The SFMS incorporates adequate security measures, including that of Public Key Infrastructure (PKI), with encryption software equivalent to some of the best security measure in the world. The use of the SFMS over the INFINET would automatically provide safe, secure and efficient funds transfers with the added benefit of the settlement of inter-bank funds transfers taking place in the books of account of banks, maintained with the Reserve Bank, thereby providing for finality of the settlement. Further, the message formats used in SFMS are very similar to those used by SWIFT, resulting in ease of usage by the banking community in the country. This secure messaging backbone can be used for a number of intra-bank applications also.

(B) Effective Currency Management

The impact of technology on the issuances of Bank Notes and Currency Management by Central bank is apparent. The technology offers us immense opportunities to significantly improve our performance of this core function. Given the high value and volume of currency in circulation, the vast geographic spread of currency operations, the largest distribution channel for the supply of currency, prevalent marked preference for cash and currency handling practices, currency management in India is a challenging and strenuous task. In 1999, the Reserve Bank of India announced a "Clean Note Policy" to bring about improvements of the quality of notes in circulation and technology has played an indispensable role in enabling the Bank to provide better quality notes to the general public. The information technology makes the task of currency management easy, effective, economical and speedier.

2) Development in Forensic Science and Police Wireless

The modernization and manpower development of Information Technology in the Central Forensic Science Laboratories and GEQDs, which were started in the Seventh Plan, has had an immense development . The research areas envisaged pertain DNA finger printing; cadaver entomology; immuno-assay techniques; classification of handwriting characteristics; instrumental techniques for examining writing materials; computerized image processing of firearms and ammunition; development of computerized system for superimposition; immuno diagnostic technique, hair identification, range and time of firing and explosive analysis, etc.

It is thus expected that rapidity and sophistication would be introduced by way of video- fit techniques, laser-tracing, holography, image processing, computer aided automatic finger print identification system and initiatives taken in new frontier areas like forensic psychology. Suitable structure and mechanism would be evolved for the formulation, implementation and monitoring of S&T schemes under the Forensic Science.

In the area of police wireless, the main thrust has been to achieve communication link from the national capital up to rural police station through State Headquarters, Range Headquarters, and District Headquarters. This is proposed to be achieved through the development of high speed message switch, micro processor based specifically designed computerized connectors, pocket radio system, micro earth station and secrecy devices and multi-access radio telephone.