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India's Financial Backbone

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  1. 1. InFiNet - changing the way India banks 1
  2. 2. • Communication backbone of the Indian Banking sector • Revolutionized interaction among Indian Banks • Blends communication technologies - VSATs and Terrestrial Leased Lines • One of world’s most secure technology platform for financial operations SP Jain Center of Management, Singapore 2 Background
  3. 3. The genesis of the system and the Doyens 1992 : Liberalization of Economy 1994 – RBI sets committee on Technology Up gradation in the Payment Systems 1996 [IDRBT] established by RBI 1999 (INFINET) setup by IDRBT becomes operational 2009 – Overhaul of System commissioned SP Jain Center of Management, Singapore 3
  4. 4. Needs of the Banking Sector Indian Banking Wide geographic spread of bank branches Customer Complaints regarding time delays Post- liberalization consumer oriented market RBI initiative of High priority Reforms Lack of fast, secure inter and intra banking network SP Jain Center of Management, Singapore 4
  5. 5. Stake Holders
  6. 6. Network Connections SP Jain Center of Management, Singapore 6 Source:
  7. 7. THIRUVANANTHAPURAM BHUBANESHWAR GUWAHATI 2 Mbps with ISDN Backup JAMMU CHANDIGARH DELHI JAIPUR AHMEDABAD MUMBAI PUNE BANGALORE CHENNAI HYDERABAD CALCUTTA PATNA KANPUR BHOPAL NAGPUR KOCHI GOA LUCKNOW 4 X 2 Mbps 2 X 2 Mbps NMS at Hyderabad Back up NMS at Mumbai Integration of VSAT with Terrestrial network Links of Banks getting Connected to INFINET Network Architecture SP Jain Center of Management, Singapore 7
  8. 8. Network integrity & Security against intruders Data transmission encrypted using proprietary standards IP address protection Data is destination protected Symmetric key and public key cryptography Digital signature Certification ‘Dhruvam’ from TCS Backup and replication at NSM Mumbai Multiple lines and ring network redundancy VSAT Networks In-built security Redundancy & Backup CUG level Salient Features Source :
  9. 9. Associate Systems – Secured communication carrier – Transmission of messages in fixed message formats – Straight Through Processing SP Jain Center of Management, Singapore 9 – Inter-connect ATMs – Routing of ATM transactions through inter-connectivity between bank’s switches
  10. 10. Applications of InFiNet • Funds Transfer and payments • Inter-Branch Reconciliation • Quick disposal of loans • Management Information Systems • Core Banking Solutions • Treasury Management • Electronics Funds Transfer (EFT) • Real-Time Gross Settlement System (RTGS) • Shared ATMs Network (NFS) • Mail Messaging System (MMS) • Structured Financial Messaging System (SFMS)
  11. 11. Moving up the Value Chain SP Jain Center of Management, Singapore 11 Inter-bank connectivity Intra-bank connectivity National Finance Switching INFINET
  12. 12. Infinet Revolution SP Jain Center of Management, Singapore 12 Data as of 2007, Source :
  13. 13. Thank You SP Jain Center of Management, Singapore 13
  14. 14. Usage Model Gateways and Integration with Other Financial Network Services G1 - SWIFT Network G2 - Reuters Network G3 - Stock Exchange Network G4 - Inter Banks/FIs G5 - Shared ATMs G6 - Clearing Operations Network G7 - Internet Corporate Network Inter Banks/FIs Network Shared ATMs Network Clearing Operations Network SWIFT Network Reuters Network NSE Network G1 G1 G2 G2 G3 G3 G1 G2 G3 G1 G2 G3 G1 G2 G3 G4 G4 G4 G5 G5 G5 G6 G7 Internet SP Jain Center of Management, Singapore 14