P o‒›¢¡††ƒ›‹\“ a\‹¤¡‒ GÅ QOOX heb`h t‹ƒ¶¡‒†ƒ‡„ o‒¡††H c¡|¡«‘¡‒ QOOX The Indian banks are changing towards modern banking system. Modernization in banking is changing banking services, products and operational methods of banking. Traditional banking system in depends up on man force but modern banking is partially or totally machine and technology based banking. All these developments are lead to facilities to customers delight as well as operational efficiency of banks and reducing operational expenses of banking services. Information technology (IT) revolution in the Indian economy has made steady inroads into the banking institutions and has brought about a significant change in many aspects in the form of computerization of transactions and new delivery channels such as Internet Banking, Phone Banking, ATMs, EFT, ECS and EDI etc. With migration of traditional paper-based funds movements to quicker and more efficient electronic mode, funds transfers have become easy and efficient to perform. Definition of Alternative Banking Alternative banking is a new face of banking activities it’s include new financial services, products and new methods of banking operations, delivering services. In this modern banking includes automated delivery of new and traditional financial products (insurance, investment, MICAR cheques etc.) and services directly to customers through electronic, interactive communication channels, the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a automated teller machine (ATM), kiosk, or Touch Tone telephone credit cards, debit cards, net banking, home banking, mobile banking etc. Banking Reforms in India The banking reform phase has been started since 1991 in India. It leads to Indian Financial & Banking Sector Reforms after 1991including technological invention. In the reform phase many more new banking products and facilities issued by the banks in India. After 1991 the country is flooded with foreign and Indian private sector banks with their highly technology based banking products and services including ATM stations, credit cards, debit cards E-banking and Net banking etc. The entire banking system became more convenient by these innovations. Computerization of Banks in India Computerization is general trend in all sector, banks also trying to Computerization, as per recommendation of Rangarajan Committee (II), the progress in implementation of the directive of the Central Vigilance Commission (CVC) on the need to computerize 70 per cent of the banking business by public sector banks before January 1, 2006, 13 banks had achieved the desired level. Figures as at end of March 2008 indicated that 23 banks have achieved the target, while two banks have computerisations levels ranging between 70 per cent and 79 per cent and two others were at Alternative Banking: A Modern Practice In India Vijay M. Kumbhar