19

Theme- Micro-Finance & Technology

Some other impetus which can provide

treasuries throughout the country has

for greater financial inclusion include

helped in speedier accounting of

use of computer systems which do not

receipts and payments of the State

require uninterrupted electric power

Government departments, apart from

supply,  networking  using  radio

serving as a road map for achieving

frequency and other non-conventional

end-to-end connectivity amongst

methods, centralization of processing

various accounting agencies involved.

systems leading to lower processing

costs,  provision  of  homegrown

However, while use of the state-of-the-

customized systems such as the low

art technology within the banking

cost, multi-lingual ATM etc. Here again,

system is an asset, it also poses a

the approach of sharing of IT resources

challenge to the conventional banker

would have much to commend itself.

and government accountants due to

complexity  of  transactions  and

Technology has played a significant role

processing. So care must be paid to

in improving the efficiency of the

ensure that the transactions conducted

financial markets. Acceptance by the

are secure from end to end and are

Government of electronic challans has

retrievable at any point of time. Be

substantially reduce paper usage,

though as it may, our march towards a

provide for Straight Through Processing

technologically  advanced  and

and obviate errors arising from the

efficient, effective, progressive and

reconciliation process, wrong data

inclusive financial system though marks

entry, etc. Computerization of State

a good beginning, poses an era of

challenge as well.

Dr. Y. V. Reddy

Dr. Y. V. Reddy, Governor, Reserve Bank of India speech on the occasion of Banking

Technology Awards Function, 2006 at the institute for Development and Research

on 2nd September, 2006.