PowerPoint Presentation

TECHNOLOGY IN BANKSPresented by-------Rohit GuptaRaavi KatyayanYaswanth Kumar ReddySaurav JainPrince TamrakarSupriya Deewan2

Electronic BankingATMs

Head OfficeBranch Banking

Branch 1Branch 2Branch 3Branch 4Branch 5Branch 6Branch nTechnologyThe Change in banking in the last decade is unparalleled when compared to the entire period of banking history in India.Competition fuelled by technology drives banking today.Technology alone can make bankers sail through competition.Computerization of branches, mobile banking, internet banking and ATM banking are a few ways by which bankers use technology to beat the competition.

ATMs: Automated Teller MachinesAn Automated Teller Machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution / bank with access to financial transactions in a public space without the need for a human clerk or bank teller round the clock (24 hrs. a day)

Functions of ATMBenefits Of atm24-hour access to cash View Account Balances & Mini-statements Order a Cheque Book / Account StatementTransfer Funds between accounts Refill your Prepaid card Pay your utility bills Deposit cash or cheques

Printing bank statements Updating passbooks Loading monetary value into stored value cards Purchasing postage stamps. lottery tickets train tickets concert tickets Games and promotional featuresDonating to charitiesCheque Processing Module

The Indian scenarioThe first ATM was installed in India by HSBC in 1987.The number of ATMs in India today is not more than 2% of the number of ATMs in the world.According to RBI database the total number of ATMs operated by 53 banks in India is 1,24,072 till July 2013.

Internet BankingA system allowing individuals to perform banking activities at home, via the internet.The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels.It provides faster, accurate, efficient services at touch of a button at a very low cost.

Different services provided under e-banking

ONLINE BILL PAYMENT SHOPPING TICKET BOOKING PRE PAID MOBILE RECHARGE INVESTMENT SERVICES ONLINE APPLICATIONS

Benefits for BanksBenefits for CustomersLarger customer coverage Reducing the costs of operationsPromoting their services and products internationallyIncreasing the customer satisfaction and providing a personalized relationship with customers

Convenience 24 hours a day, seven days a weekCost Reducing transfer feesSpeed Faster circulation of assetsCompetitiveness - Fostering competition in financial market Communicate easilyAbolishing the uses of paperOffering one-stop-shop solutions Security RiskIncreasing number of fraudulent bank websitesFor E.g. A suspicious bank website: www.sbionline.com Original bankwebsite :www.onlinesbi.com Fake emails purporting to be sent from banks

Email send from Fraudulent bankVerify the personal informationGuide customer enter the fraud linkDisclosing their ATM card numbers and their passwordsE-COMMERCEE-commerce describes the process of buying, selling, transferring or exchanging product, services and information using computer network and the internet.

Types of e-commerceBusiness to business(B2B): Seller & buyer are organizations.Business to consumer(B2C): Seller is an organization, buyers are individuals.Consumer to consumer(C2C): Individuals sell product to other individuals.Benefits of E-commerceProvide less expensive product & services by online services.Give customer more choice to select from.Make it possible for people to work & study at home.Allow consumers to communicate & exchange ideas.Enable customers to shop 24 hours daily.Delivered detailed information in second.

Electronic Accounting System in Excise And Service Tax (EASIEST) Easiest Scheme : Central Board of Excise and Customs (CBEC) initiate to receive information and maintain records of tax paid through banks through online upload of challan details is named as EASIEST ( Electronic Accounting System in Excise and Service Tax ). Benefits for the taxpayer: Only one copy of challan to be filled instead of earlier four copies. Facility for online verification of the status of tax payment using CIN.

Details about the EASIEST scheme are available on the following websites:

http://exciseandservicetax.nic.in http://www.cbec.gov.in

Challan Identification Number (CIN) Challan Identification Number (CIN) is a 20 digit unique identifier which will be given on the Taxpayers Counterfoil. This number is a combination of the BSR code of the bank branch (7 digits), the date of deposit (8 digits) and Challan Serial Number (5 digits). IT Act, 2000 :The modern thief can steel more with a computer than with a gun. Tomorrow's terrorist may be able to do more damage with a keyboard than with bomb.

Enacted on 17th May 2000- India is 12th nation in the world to adopt cyber lawsIT Act is based on Model law on e-commerce adopted by UNCITRAL.

Objectives of the IT Act : To provide legal recognition for transactions:-

Carried out by means of electronic data interchange, and other means of electronic communication, commonly referred to as "electronic commerce.

To facilitate electronic filing of documents with Government agencies and E-Payments.

To amend the Indian Penal Code, Indian Evidence Act,1872, the Bankers Books Evidence Act 1891,Reserve Bank of India Act ,1934Act is in applicable to(a) a negotiable instrument (Other than a cheque) as defined in section 13 of the Negotiable Instruments Act, 1881;(b) a power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882; (c) a trust as defined in section 3 of the Indian Trusts Act, 1882;(d) a will as defined in clause of section 2 of the Indian Succession Act, 1925 including any other testamentary disposition(e) any contract for the sale or conveyance of immovable property or any interest in such property;(f) any such class of documents or transactions as may be notified by the Central Government

GPRS :What is "GPRS"?Who can use GPRS Banking?What kind of transactions can I do using GPRS Banking?How secure is GPRS Banking?How does GPRS Work?What if my phone battery discharges while I'm doing my financial transactions?

EFTWhat is EFT ?EFT is system whereby anyone who ants to make payment to another person/company etc. can transfer funds directly from his own account to beneficiary account.

Scope of Transfer of Funds under EFTTransfer funds electronically.

Time Duration of Funds Transfer under EFTSame day or at the most next working day

Benefits of EFT

EFT is faster mode of transfer of funds(within 24hrs)Freedom from paperBeneficiary account credited automatically.

Electronic Funds Transfer ChargesAt present, the RBI has waived all its charges on EFT.

ECSWhat is ECS ?ECS is a retail payment system that can be used to make bulk payments receipts of a similar nature especially where each individual payments is of a repetitive nature and of relatively small amount.

Electronic Clearing ServiceECS(Credit)- to make bulk payments to individuals/ vendorsECS(Debit)-to receive bulk utility payments from individuals.MICRFULL FORM OF MICR ?What is MICR ?This is one type of automated clearing systems used by banks. Under this system, specific type of paper is used for printing the cheque. The cheque having two white bands at the top and another at the bottom. Between these bands the details of the cheques are encoded with special magnetic ink and that is how it has come to known as MICR. Core Banking Solution (CBS)1. Internet revolution 2. Banking product for customer3. Aka Centralized banking solution4. Database at central server of the bank5. Data access to branch's by networking system6 .Any CBS branch transaction any where in the country7. Flexibility for customerCheque Truncation Important Term:Cheque Truncation :Replacement of physical cheque flow with electronic information with in all four legs of clearing cycles. Inward and outward clearing:The cheques submitted to bank B, by the customer of bank A. The bank A would process those cheques as Outward clearing, and bank A is going to process those cheques as Inward Clearing.

Returned Cheques.If any of the information provided by the cheque issuermismatchesthe actual information of customer account, then the cheque is returned; returning from Inward would go as Inward Returns, and returned to Outward goes as Outward returnsUses &Problem Of Cheque :USESPROBLEMS Post Dating FeatureDual SignaturesPeople still distrust modern electronic modes of paymentHigh cost for banksTransportation costs b/w partiesInherent manual handling process

Key Benefits of Cheque TruncationElimination of transportation of physical chequeShorter clearing cyclesExtended cut off time for cheque submissionAutomated inward signature verification processFraud prevention measuresBlack listed accounts flaggedEfficient & streamlined processing of images

RTGS

Fund transfer mechanism.Money transfers from one bank to other on real time and gross basis.Money transfer takes place in the books of RBI, the payment is taken as FINAL.The fastest possible money transfer system through the banking channel.EFT/NEFT vs. RTGSNEFT abbreviates to National Electronic Fund Transfer.Transactions are not settled on Real time and these operate in batches.There is no limit on the minimum amount and the maximum amount you can transfer using a NEFT will be 5 lakes.

RTGS Abbreviates to Real Time Gross Settlement.

Transactions between the banks are settled on real time and the destination bank has to credit the beneficiarys amount within two hours.Minimum amount of money which needs to be transferred to use RTGS is 2 lakhs.

30Details required from the remitter to carry out remittance under RTGS TransactionAmount to be remitted.His a/c no. which is to be debited.Name of the beneficiary bank Name of the beneficiary customer.A/c no. of the beneficiary customer.Sender to receive information, if any.The IFSC code of the receiving Branch.NFSLaunched in August 27, 2004

Purpose is to connect the ATMs of the country

Currently 70 banks are using the application.SFMSLaunched in December 14, 2001

Secure messaging standard

Platform for inter bank and intra bank applications

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