The collecting, processing and distribution of information is vital to business growth of banks.

Computerization takes care of only the processing. The gathering and distribution on use of telephone, mail, telegraph and telex which leads to delay and high cost due to hand­ling at several stages.

Hence a common communications network called ‘Bank net’ oper­ated by banks and financial institutions on a co-operative basis within the country is being set up. The Bank net can be put to several uses. Some of the illustrative areas are given here­under:

(i) Transfer of funds from one place to another distant place or bank.

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(ii) Exchange of statistical information among banks.

(iii) Foreign exchange business operations.

(iv) Inter-Bank applications, like settlement of funds between banks.

(v) Others.

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The transfer of funds includes that customer can draw cash against their deposit at any branch of the bank as envisaged under ‘on-line banking’ and can also deposit cash at any branch for credit to an account at some other branch.

Advance can be allowed at one branch against deposit at some other branch. This concept is known as ‘Banking Any­where’.