DURING the first phase of reforms in the Indian Banking and Financial Sector, a need was felt to develop an Institute of Higher Learning, which would also provide Information Technology support to Banks and Financial Institutions.

The foundation for induction of Information Technology in the Indian Banking and Financial Sector was laid by Dr. Rangarajan Committee’s two reports in the years 1984 and 1989, which strongly recommended computerisation of banking operations at various levels. In the year 1993, the Employees’ Unions of Banks signed an agreement with Bank Managements under the auspices of Indian Banks’ Association [IBA]. This agreement was a major breakthrough in the introduction of computerised applications and development of communication networks in Banks.

In the following two years, substantial work was done and the top managements realised the urgent need for research and development activities and training in the area of Banking Technology. Banks and Financial Institutions started setting up training centres and colleges focused on technology.

In this context, a need was felt for an Apex-level Institute, which would be the Brain Trust for Banking Technology and Spearhead Technology Absorption in the Indian Banking and Financial Sector. In the year 1994, a committee on “Technology Issues Relating to Payments System, Cheque Clearing and Securities Settlement in the Banking Industry”, headed by Shri W. S. Saraf, Executive Director, Reserve Bank of India, was constituted. The committee recommended a variety of payment applications which can be implemented with appropriate technology upgradation and development of a reliable communication network. 

The committee also recommended that the Reserve Bank of India set up an  Information Technology Institute for the purpose of Research and Development as well as Consultancy in the application of technology to the Banking and Financial Sector of the country.  Based on the recommendations of the committee and approval of the Central Board of Directors, Reserve Bank of India, the Institute for Development and Research in Banking Technology [IDRBT] was established in March 1996 as an Autonomous Centre for Development and Research in Banking Technology.