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                             RANGARAJAN COMMITTEE (I)

In the early 80s, a high level committee was formed under the chairmanship of Dr. C Rangarajan, then Governor of the Reserve Bank of India, to draw up a phased plan for computerisation and mechanisation in the Banking Industry over a five year time frame of 1985-89. The focus by this time (justifiably) was on customer service and two models of branch automation were developed and implemented

  • front office mechanisation where front desk operations were computerised while back office work was done manually and

  • back office automation covering mechanisation of General Ledger and back office operations while the front office work was done manually;

Both the models provided the customer with error-free accounting, regular statements of accounts etc. Considering the contemporary level of computerisation, these were major achievements but did not go far enough and the pace of their implementation was tardy, to say the least, with not a little opposition from trade unions.


Having gained experience in the earlier mode of computerisation, the second Rangarajan Committee constituted in 1988 drew up a detailed perspective plan for computerisation of in Banks and for extension of automation to other areas like funds transfer, electronic mail, BANKNET, SWIFT, ATMs etc. The Committee recommended the the following road map for computerisation over the next five years,

  • Around 2000 to 2500 large branches located at high activity (urban and metropolitan) centres to be fully computerised

  • Regional Offices / Zonal Offices/Head Offices

  • Inter- and intra bank transactions using the BANKNET set up by the RBI; and

  • Installation of a network of cash dispensers / ATMs at strategic locations such as airports/railway stations etc., on a shared basis by banks.

The Committee also made studied recommendations on the 'Single Window Concept; 'all bank credit cards', credit clearing/GIRO system, office automation, etc. In fact this report was the most comprehensive road map for Bank Automation considering the state of the technology at that time.


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