P). A major breakthrough on the question of mechanisation in Indian banks came with a significant decision given by the National Industrial Tribunal in 1981.
1). Computers, however, were allowed only for clearing operations, inter branch reconciliation, remittances, foreign exchange dealings, investment management, personnel inventory, payrolls, provident fund, merchant banking and management information systems on credit, budgetary data and annual control returns.
2).The settlements specified that only accounting machines with attached memory modules and not computers, may be used in banks for the purpose of current accounts, deposit accounts, general ledger accounts, and cash credit and loan accounts only in urban and metropolitan areas.
3). Subsequently, in 1983, the Indian Banks Association (IBA) reached an agreement with the staff unions under which electronic ledger posting/accounting machines were allowed to be installed to support specified functional areas in branches, zonal offices, etc.
4). The tribunal gave unequivocal award in favour of the use of computers and other sophisticated machines with the proviso that it should not cause displacement of more than 10 percent of staff.
Q). The Reserve Bank of India took a major lead in coordinating the work related to mechanisation in various banks and even helped them in deciding the vendors, software required etc.