Banking Technology and Payment System

1. Institute for Development and Research in Banking Technology
Hyderabad - 500057
End - Term Exam for M.Tech (I.T)
NOVEMBER 2006
Banking Technology
Time: 3 Hours. Total Marks: 60
Section 1 : Write Short Notes. 5 X 3 =15
11. BCP and DRP. 2
12. Elements of Payment System. 2
13. Smart Card Applications.
14. ALCO Functions. 2
15. Central Counter Party.
Loss Distribution Approach for Operational Risk Management. 2
Objectives of Asset Liability Management.
Server based Call Centre Model. 4
MICR and IFSC.
Objectives of ALM. 2
Cheque truncation. 5
The 5C’s of credit appraisal.
RTGS.
Reputation Risk.
Essential elements of straight through processing.
Straight Through Processing.
Mobile payment models, methods and types.
SET and SSL
Customer segmentation at the Call Centre.
Key functions of the Asset Liability Committee(ALCO).
Cheque Truncation.
Server based Call Centre Model.

2. Draw the flow diagram of an ATM Transaction
Activity cycle in a credit card.
Internet Vs Mobile Services
Basic Indicator approach for operational risk management. 2
Delivery Channel Optimization 2
Credit Cards Vs. Debit Cards.
Drivers of Mobile Banking
Straight Through Processing.
IVRS Applications in Banking. 2
Mobile Payment models, methods and types.
Six classifications of e-money.
Straight through processing. 2
KYC – objectives and elements.
Dynamic data authentication in EMV.
Six goals of PCIDSS.
What firewalls can do and cannot do? 2
Straight Through Processing.
Mobile payment models, methods and types.
Dynamic data authentication in EMV.
Customer segmentation at the Call Centre.
Key functions of the Asset Liability Committee(ALCO).
Cheque Truncation.
Technology Task Force for Banks.
Server based Call Centre Model.
Mobile payment models, methods and types.
Risk Ranking and classification of systems for Business Impact Analysis.
Section 2 : Answer ANY FIVE of the following questions in not more than 40 lines. 5 X 5 = 25
21. Basic Indicator Approach Vs Standardised Approach. 3
22. Describe the major components of Operational Risk. 2
23. Describe the Message Flow in SFMS Architecture. 2
24. Describe BCP implementation at the Data Centre. 3
25. Describe the objectives of ALM.

3. Describe the end-to-end security available in SFMS. 2
26. Explain the four types of message flow structure in an inter-bank payment system. 2
27. Internal Measurement Approach Vs Standardised Approach.
Enumerate the technologies deployed in call centers.
Explain the various alternatives for BCP. 2
Enumerate mobile banking risks and mitigation measures for them.
Discuss the delivery channel optimization issues.
Explain the operational issues in managing a call centre. 4
Essentials of a Treasury Package.
What are the risks arising in payment systems and how can we mitigate them? 2
Explain the components of a Business Continuity Plan.
What are the basic principles of credit appraisal? 3
What is RTGS and how does it work?
Discuss the three phases of Technology Risk Management.
Explain the important features of our Real Time Gross Settlement System.
Describe the back office functions in the treasury department..
Describe the MIS frame work for Banks and its objectives.
Describe the various technologies used in Financial Inclusion.
Discuss the functions and responsibilities of the Issuer (bank) of a credit card.
Discuss some of the Smart Card based Applications.
Explain the important features of our Real Time Gross Settlement System.
Discuss in detail the ATM Switch architecture. 3
Describe the MIS frame work for Banks and its objectives.
Explain the operational issues in managing a call centre.
Discuss the functions and responsibilities of the Issuer (bank) of a credit card.
Explain the key issues in implementing CBS. 4
Describe the negative impact of technology implementation in Banks. 2
RBI Guidelines for Mobile Banking.
Discuss some of the Smart Card based Applications. 3
Describe the various technologies used in Financial Inclusion.
Explain in detail the components of Operational Risk. 2
Explain how the Real Time Gross Settlement System works. 3

4. Explain how the Interbank Mobile Payment Service works.
Briefly explain the treasury functions.
Section 3 : Answer ANY TWO of the following questions in not more than 100 lines. 2 X 10 = 20
31. Describe the different architectures of Internet Banking. 5
32. Explain in detail the Operational Risk Management Cycle. 5
33. Discuss in detail the components and phases of an effective Business Continuity Plan. 6
34. Describe the various components of ALM. 4
Discuss in detail the multi-channel integration issues. 3
Discuss the emerging trends and increasing role of technology in Treasury Management.
Explain the critical success factors for CBS Implementation. 4
Describe the role of technology in risk management and Basel II.
Describe the architecture for Internet Banking services from a centralized environment and
the controls applicable for the various components.
Describe the Security Component Model for Internet Banking and the risks and controls
associated with this.
Describe in detail the issues and challenges in planning and managing a Data Centre.
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