Authors

Anu Joseph

Department of Electronics and Communication Engineering, MGM College of Engineering & Technology, Ernakulam, Kerala, India

Manual Sherin

Department of Electronics and Communication Engineering, MGM College of Engineering & Technology, Ernakulam, Kerala, India

Abstract

Over the past two decades, the Indian banking sector has experienced substantial technological advancement and has played a significant role in supporting the country’s economic growth. This study examines recent developments and the broader landscape of technological innovations within Indian banks, with particular emphasis on digital transformation initiatives, emerging technologies, and the challenges encountered during their implementation. Based on an analysis of secondary sources, including academic publications, industry reports, and policy documents, the study highlights major innovations such as the Unified Payments Interface (UPI), artificial intelligence (AI), blockchain technology, cloud computing, and digital wallets. Furthermore, it evaluates the role of the Reserve Bank of India (RBI) in fostering financial inclusion through regulatory support and technology-driven initiatives, while critically assessing both the benefits and limitations of these advancements. Despite the widespread adoption of digital solutions, significant challenges persist, particularly in extending digital banking services to rural and underserved regions due to infrastructural, socioeconomic, and digital literacy constraints. The study concludes by discussing the future trajectory of banking technology in India and its transformative potential in reshaping the financial ecosystem in the coming years.

Keywords

Banking sector Emerging technologies Indian banking Technological innovations UPI AI Digital transactions Blockchain Digital wallets Financial inclusion

Citation of this Article

Anu Joseph, & Manual Sherin. (2025). Digital Disruption in Indian Banking: Recent Developments and Future Direction. Current Journal of Engineering and Science Research. 2(9), 7-10. Article DOI: https://doi.org/10.47001/CJESR/2025.209002

Licence Copyright (c) 2026 Current Journal of Engineering and Science Research. This work is licensed under a Creative Commons Attribution Non Commercial 4.0 International Licence.

References

  1. Sardana, V., & Shubham Singhania. (2018). Digital technology in the realm of banking: A review of literature. International Journal of Research in Finance and Management, 1(2), 28–32. https://doi.org/10.33545/26175754.2018.v1.i2a.12.
  2. Klein, M., & Mayer, C. (2011). Mobile Banking and Financial Inclusion: The Regulatory Lessons. In Policy Research Working Papers. The World Bank. https://doi.org/10.1596/1813-9450-5664.
  3. Nyangosi, R., Arora, J. S., & Singh, S. (2009). The evolution of e-banking: a study of Indian and Kenyan technology awareness. International Journal of Electronic Finance, 3(2), 149. https://doi.org/10.1504/ijef.2009.026357.
  4. Abdelrafe Elzamly, Hussin, B., Abu-Naser, S. S., Tadahiro Shibutani, & Doheir, M. (2017). Predicting Critical Cloud Computing Security Issues using Artificial Neural Network (ANNs) Algorithms in Banking Organizations.
  5. Ginotra, P. (2019). Innovations in Indian Banking Sector. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3438918.
  6. Welch, F. (1970). Education in Production. Journal of Political Economy, 78(1), 35–59. https://doi.org/10.1086/259599.
  7. Morake, A., Khoza, L. T., & Bokaba, T. (2021). Biometric technology in banking institutions: “The customers” perspectives’. SA Journal of Information Management, 23(1). https://doi.org/10.4102/sajim.v23i1.1407.
  8. Verma, D., Pooja Kansra, & Kumar, P. (2023). Significance of Block Chain Technology and Industry 5.0 in Indian Banking Sector. Advances in Business Strategy and Competitive Advantage Book Series, 263–269. https://doi.org/10.4018/978-1-6684-6403-8.ch014.
  9. Dev, D. (2024). The Impact of UPI on Indian Banking System. Shanlax International Journal of Management, 11(S1-Mar), 17–25. https://doi.org/10.34293/management.v11is1-mar.8076.
  10. Kamath, K. V., Kohli, S. S., Shenoy, P. S., Kumar, R., Nayak, R. M., Kuppuswamy, P. T., & Ravichandran, N. (2003). Indian Banking Sector: Challenges and Opportunities. Vikalpa: The Journal for Decision Makers, 28(3), 83–100. https://doi.org/10.1177/0256090920030308.
  11. D. Manikandan, J. Madhusudhanan, Venkatesan, V. P., V. Amrith, & Britto, M. A. (2011). Smart banking environment based on context history. 450–455. https://doi.org/10.1109/icrtit.2011.5972335.
  12. Khan, Dr. S. (2017). Technological Change, Financial Innovation, and Diffusion in Indian Banking Sector – A Move towards the Next Orbit. International Journal of Scientific Research and Management, 5(7). https://doi.org/10.18535/ijsrm/v5i7.33.
  13. Balan, R. K., & Ramasubbu, N. (2009). The Digital Wallet: Opportunities and Prototypes. Computer, 42(4), 100–102. https://doi.org/10.1109/mc.2009.134.
  14. Asadi, S., Nilashi, M., Husin, A. R. C., & Yadegaridehkordi, E. (2016). Customers perspectives on adoption of cloud computing in banking sector. Information Technology and Management, 18(4), 305–330. https://doi.org/10.1007/s10799-016-0270-8.
  15. Alchian, A. A. (2020). Uncertainty, Evolution, and Economic Theory. Journal of Political Economy, 58(3), 211–221.
  16. Gunajit Dev Sarma, & Pranav Kumar Singh. (2010). Internet Banking: Risk Analysis and Applicability o f Biometric Technology for Authentication.
  17. Dash, B., F. Ansari, M., Sharma, P., & siddha, S. S. (2022). Future Ready Banking with Smart Contracts - CBDC and Impact on the Indian Economy. International Journal of Network Security & Its Applications, 14(5), 39–49. https://doi.org/10.5121/ijnsa.2022.14504.
  18. Guru, B. K., Vaithilingam, S., Ismail, N., & Prasad, R. (2001). Electronic Banking in Malaysia: A Note on Evolution of Services and Consumer Reactions. Semantic Scholar. https://doi.org/10.1007/978-3-322-86627-1_15.
  19. Sarkar, S. S. (2016). Technological Innovations in Indian Banking Sector-A Trend Analysis. Journal of Commerce and Management Thought, 7(1), 171. https://doi.org/10.5958/0976-478x.2016.00012.4.