In the first phase of financial sector reforms a need was felt to develop an Institute of higher learning which can also provide the operational service support in Information Technology to Banks and Financial Institutions.
Foundation for induction of computer technology in Indian Banking sector was laid by Dr. Rangarajan Committee's two reports in the years 1984 and 1989. Both the reports had strongly recommended computerization of banking operations at various levels and suggested appropriate architecture.
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 computerized applications and development of communication networks in Banks. In two years, substantial work was done and the top managements realized the urgent need for training, research and development activities in the Banking Technology area. Banks and Financial Institutions started setting up Technology based training centers and colleges. However, a need was felt for an apex level Institute which could be a Think-tank and Brain Trust for Banking Technology.
In the year 1994, RBI formed a committee on "Technology Up gradation in the Payment Systems". The committee recommended a variety of payment applications which can be implemented with appropriate technology up gradation and development of a reliable communication network. The committee also suggested setting up of 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. As recommended by the Committee, IDRBT was established by RBI in 1996 as an autonomous center for Development and Research in Banking Technology.
The Institute's mission is to be a "Think-Tank for the promotion of Technology Solutions" to improve the functioning of the Banking and Financial Sector through: