banking technology - commerce students

1. CONCEPT OF
BANKING
TECHNOLOGY
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Dr. R. Muthu Krishnaveni, Assistant Professor of Commerce
Saiva Bhanu Kshatriya College, Aruppukottai

2. Advanced ledger posting
machine
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3. Magnetic ink character recognition
technology
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4. Optical character recognition
technology
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5. Cash dispensers
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6. Automated teller machines
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7. Personal identification number
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 Four digits code to access the function of
ATM

8. ATM OPeration
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 Withdrawal
 Deposit
 Transfer
 Fast cash
 Balance enquire
 Mini statement
 Other Some examples Video

9. ATM OPERATION -
WidhDrawAl
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There are few steps to withdrawal cash from
ATM:
 Step 1 : Insert Card. Insert Card. ...
 Step 2 : Select your language. This is the most
easiest task to do I think. ...
 Step 3 : Enter your PIN. Enter your pin. ...
 Step 4 : Transaction Type. ...
 Step 5 : Account Type. ...
 Step 6 : Enter Amount. ...
 Step 7 : Take Your Money. ...
 Step 8: Another Transactions.

10. Smart quill computer pen
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11. Core banking solution
 Customer centric
banking
experience
 Customer
information,
account
information and
financial
transaction
posting available
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12. Electronic banking
Banking
with use of
electronic
tools and
facilities
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13. Electronic money
Electronic
store of
monetary
value on a
technical
device
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14. Electronic cheque
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15. Electronic purse
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16. Debit cards
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17. Credit cards
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18. Smart card
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19. Home/office banking
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20. Mobile banking
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21. MOBILE banking
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Mobile banking is a service provided by
a bank or other financial institution that allows
its customers to conduct some financial
transactions remotely using a mobile
device such as a mobile phone or tablet.
Mobile banking differs from mobile
payments, which involves the use of a mobile
device to pay for goods or services either at
the point of sale or remotely, analogously to
the use of a debit or credit card to effect
an EFTPOS payment.

22. MOBILE banking SERViCES
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 Account information
 Mini-statements and checking of account history
 Alerts on account activity or passing of set thresholds
 Monitoring of term deposits
 Access to loan statements
 Access to card statements
 Mutual funds / equity statements
 Insurance policy management

23. MOBILE banking SERViCES
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 Transaction
 Funds transfers between the customer's linked
accounts
 Paying third parties, including bill payments and third
party fund transfers(see, e.g., FAST)
 Check Remote Deposit
 Investments
 Portfolio management services
 Real-time stock quotes
 Personalized alerts and notifications on security
prices

24. MOBILE banking SERViCES
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 Support
 Status of requests for credit, including mortgage
approval, and insurance coverage
 Check (cheque) book and card requests
 Exchange of data messages and email, including
complaint submission and tracking
 ATM Location
 Content services
 General information such as weather updates, news
 Loyalty-related offers
 Location-based services

25. Telephone banking
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26. Telephone banking
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Telephone banking is a service provided by
a bank or other financial institution, that
enables customers to perform a range of financial
transactions over the telephone, without the need
to visit a bank branch or automated teller
machine. Telephone banking times are usually
longer than branch opening times, and some
financial institutions offer the service on a 24-
hour basis. Most financial institutions have
restrictions on which accounts may be accessed
through telephone banking, as well as a limit on
the amount that can be transacted.

27. Telephone banking - Operation
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To use a financial institution's telephone banking
facility, a customer must first register with the institution
for the service. They would be assigned a customer
number and they may be given or set up their
own password (under various names) for customer
verification.
To access telephone banking, the customer would
call a special phone number set up by the financial
institution. The service can be provided using an
automated system, using speech recognition
and DTMF technology or by live customer
service representatives. After calling the number, they
would enter on the keypad the customer number and
password.

28. Telephone banking - Operation
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Some financial institutions have set up
additional security steps for access, but there
is no consistency to the approach adopted.
Most telephone banking services use an
automated phone answering system with
phone keypad response or voice recognition
capability. To ensure security, the customer
must first authenticate through a numeric or
verbal password or through security
questions asked by a live representative.

29. Internet banking
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Online banking is an electronic payment
system that enables customers of a financial
institution to conduct financial transactions on
a website operated by the institution, such as a
retail bank, virtual bank, credit union or
building society. Online banking is also
referred as internet banking, e-banking, virtual
banking and by other terms.

30. Internet banking
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31. non-transactional tasks
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 Viewing account balances
 Viewing recent transactions
 Downloading bank statements, for example
in PDF format
 Viewing images of paid cheques
 Ordering cheque books
 Download periodic account statements
 Downloading applications for M-banking, E-
banking

32. transact banking tasks
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 Funds transfers between the customer's linked accounts
 Paying third parties, including bill payments (see,
e.g., BPAY) and third party fund transfers (see,
e.g., FAST)
 Investment purchase or sale
 Loan applications and transactions, such as repayments
of enrollments
 Credit card applications
 Register utility billers and make bill payments
 Financial institution administration
 Management of multiple users having varying levels of
authority
 Transaction approval process

33. Electronic fund transfer at point of
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34. Special electronic funds transfer
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 Multiple settlements in a day
 Settlement centralised at Mumbai
 Rs. 2 per transaction

35. Special electronic funds transfer
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 Object
To facilitate an efficient secure economical
reliable and expeditious system of FT &
clearing
To relieve the stress on existing paper
based FT and clearing

36. Electronic payment system
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 Convenient way of making a purchase or
paying without holding cash or having to go
through the process of completing a cheque
And
 Producing some form of acceptable of
Identification

37. Shared payment network
system
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 Recommendations of the Rengarajan
committee - computerisation of banks
 IBA launched 1st SPNS named SWADHAN in
1998 at Mumbai (pilot project)
 Connect
 ATM
 POS
 BTM
 Cash dispenser

38. Shared payment network
system
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 International network such as
 VISA
 Master Card
 Amrx
 JCB

39. Swadhan (one’s own wealth)
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 Registered trade mark of Indian SPNS
 No exchange fee charged to change an old
ATM card for a Swadhan card.
 Rs 3,000 fixed as the ceiling on withdrawal.
 Exception made for select customers who can
withdraw up to Rs.10,000. Still, this is lower
than the average withdrawal of Rs.15,000 by
regular ATMs.

40. Swadhan (one’s own wealth)
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 IBA gives banks the discretion to decide a
higher maximum amount for withdrawal.
 Transactions conducted through any of the
member banks appear on a bank statement,
which is given only by your own bank.
 All transactions conducted in any of the
member banks appear on the bank statement,
but only your own bank will provide this
 However, no overdraft facility is available on
Swadhan cards

41. Real time gross settlement
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 Real time payment system
 Inter bank payment system
 Processed & settled continuously
 The payments are final and irrevocable
 Electronic remittance or Clearing system
facilitates transfer of funds between branches
of same/different banks within couple of hours

42. Retail payment system
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 Effected through
 Cheque clearing system
 MICR
 Non-MICR
 ECS
 Debit
 credit
 EFT
 NEFT

43. Cheque truncation system
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44. Electronic clearing service
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 Recommendation of Saraf Committee
 Introduced April 1995
 Banking transaction cleared through electronic
devices
 ECS avail for both
 Credit
 Debit

45. Credit clearing
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 Collection undertaken by Banks & Financial
Institution
 Direct deposit of a large number of interest,
dividend warrants into bank a/c of SH.,
depositors, Investors
 Available in
 Mumbai
 Chennai
 Kolkata
 New Delhi

46. Debit clearing
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 Collection undertaken by Public Utility
Services
 Principle of multiple debited single credits
 Introduced in Feb. 1997
 PUS are
 Telephone
 Gas
 EB

47. Electronic fund transfer
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48. National electronic fund transfer
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49. Universal banking
 Different types of
banking entities
are universal
banks
 Includes
investment service
in addition to
savings and loan
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50. Universal banking
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A universal bank participates in many kinds
of banking activities and is both a commercial
bank and an investment bank as well as
providing other financial services such
as insurance. These are also called full-service
financial firms, although there can also be full-
service investment banks which provide
wealth and asset management, trading,
underwriting, researching as well as financial
advisory.

51. Local area network
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52. Metropolitan area network
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53. Wide area network
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54. banknet
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 Common communication network set up by
RBI
 Facilitate transfer of inter-bank messages
within India
 Commenced in Feb.. 1991
 Banker have provision to access BANKNET
from their premises

55. brisknet
 Software developed
to bring speed and
ease in clearing
transaction.
 Play special role in
inter bank
reconciliation
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56. Computerised message
transfer(comet)
 Communication
software for
BANKNET
 Provides additional
function
 Dial-up support
 File transfer
 E2E encryption/
authentication
 Checksum feature
 PING facility
 Notification
 Split screen visual
communication
 System & message
status log
 Screen painter
 Batch I/O interface
 Backup & restore
facility
 Bridge between
BANKNET & SWIFT
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57. rbinet
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 Software developed to overcome some of the
limitations of COMET.
 Facilitates transfer of large file messages
programs etc
 Provide for acknowledgement to the source
node
 Status of a message know at any time

58. infinet
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 Communication network - Indian Financial NETwork
 Improve the payment
 The INdian FInancial NETwork [INFINET] is the
communication backbone for the Indian Banking and
Financial Sector. All banks in the public sector, private sector,
cooperative, etc., and the premier financial institutions in the
country are eligible to become members of the INFINET. The
INFINET is a Closed User Group Network for the exclusive
use of member banks and financial institutions and is the
communication backbone for the National Payments System,
which caters mainly to inter-bank applications like RTGS,
Delivery Vs Payment , Government Transactions, Automatic
Clearing House, etc.

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JAMMU
CHANDIGARH
DELHI
JAIPUR
AHMEDABAD
MUMBAI
PUNE
BANGALORE
THIRUVANANTHAPURAM
CHENNAI
HYDERABAD
BHUBANESHWAR
CALCUTTA
PATNAKANPUR
GUWAHATI
BHOPAL
Back up NMS at Mumbai
NMS at Hyderabad
Integration of VSAT network
with Terrestrial network at all
Offices of the RBI
DESIGN OF TERRESTRIAL NETWORK AND
INTEGRATION WITH VSAT NETWORK
2 mbps leased line
64 kbps leased line
VSAT Network
NAGPUR
KOCHI
GOA
LUCKNOW
Demand Note paid
for all the links

60. Inet – IDBI NETWORK
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61. Nicnet - National Informatics Centre Network
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 NIC has established Informatics Technology (IT) Units in the ministries
and departments of the Government of India. A number of IT units
comprise an Informatics Division. the division is responsible for
interacting with the users, studying their information requirements and
arranging for the necessary hardware and software for the MIS support
within the minis try/department. While the IT units interact with the end-
users and ensure the smooth operation of the equipment and application
software, as well as connectivity to NICNET; the division also catalyses
projects which can integrate information from the field offices for timely
and effective decision making. the latter are implemented by NIC on
turnkey basis. These commercial projects are executed by NIC at no
profit (cost plus),providing enormous savings to the user departments
compared to what would be charged by the commercial software
consultants.
 INFORM

62. Strutured financial messaging
SYSTEM
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 Structured Financial Messaging System (SFMS)
is a secure messaging standard developed to
serve as a platform for intra-bank and inter-bank
applications. It is an Indianstandard similar
to SWIFT (Society for World-wide Interbank
Financial Telecommunications) which is the
international messaging system used for financial
messaging globally.
 SFMS can be used for secure communication
within the bank and between banks. The SFMS
was launched on December 14, 2001 at IDRBT

63. Very small aperture terminal
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A very small aperture terminal (VSAT) is a two-
way satellite ground station or a stabilized maritime
VSAT antenna with a dish antenna that is smaller than
3 meters. The majority of VSAT antennas range from
75 cm to 1.2 m. Data rates range from 4 kbit/s up to 4
Mbit/s; some upgraded modules can even reach a
max downlink of up to 16 Mbit/s. VSATs access
satellites in geosynchronous orbit to relay data from
small remote earth stations (terminals) to other
terminals (in mesh topology) or master earth station
"hubs"

64. Very small aperture terminal
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VSATs are used to transmit narrowband data
(e.g., point-of-sale transactions using credit cards,
polling or RFID(Radio-frequency
identification) data, or SCADA(supervisory control
and data acquisition)), or broadband data (for the
provision of satellite Internet access to remote
locations, VoIP or video). VSATs are also used for
transportable, on-the-move (utilising phased
array antennas) or
mobile maritime communications.

65. Very small aperture terminal
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66. High speed vsat network
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 BSNL VSAT is a single platform for all your
communication needs like:
 Leased Lines starting from 4Kbps onwards
 High speed Broadband Internet
 IP Multicasting, Video Conferencing
 Voice Telephone, Facsimile

67. High speed vsat network
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 Trans / Receive Data rates of 512 Kbps and above
 10/100 Mbps Ethernet Interface
 Voice Telephony with add on ATA (Analog
Telephone Adaptor)
 Very minimal power consumption: 75W
 Sleek and Compact IDU (Table mountable),
occupies very little space of 25 cm x 21cm x 6cm

68. Optical fibre technology
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69. Answering back voice response
system
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Interactive Voice Response (IVR) is an
automated telephony system that interacts
with callers, gathers information and routes
calls to the appropriate recipient. An IVR
system (IVRS) accepts a combination of voice
telephone input and touch-tone keypad
selection and provides appropriate responses
in the form of voice, fax, callback, e-mail and
perhaps other media.

70. Answering back voice response
system
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An IVR system consists of telephony
equipment, software applications,
a database and a supporting infrastructure.
Common IVR applications include:
Bank and stock account balances and transfers
Surveys and polls
Office call routing
Call center forwarding
Simple order entry transactions
Selective information lookup (movie schedules, etc.)