A

ASSIGNMENT ON

(SUBMITTED IN PARTIAL FULFILLMENT OF PGDM)

SUBMIT TO: Prof. ANKIT AGRAWAL (HEAD OF DEPT. of IT)

PREPARED BY: MANISH DUBEY RAJEEV JHA PGDM (SEMESTER-II)

SUBMISSION DATE- 10.02.12 GIDC ROFEL BUSINESS SCHOOL , VAPI

INTRODUCTION
The 21st century will bring about an all-embracing convergence of computing, communications, information and knowledge. This will radically change the way we live, work, and think. The growth of high speed networks, coupled with the falling cost of computing power, is making possible applications undreamed of in the past. Voice, data, images, and video may now be transferred around the world in microseconds. This explosion of technology is changing the banking industry from paper and branch banks to' digitized and networked banking services. It has already changed the internal accounting and management systems of banks. It is now fundamentally changing the delivery systems banks use to interact with their customers. All over the world, banks are still struggling to find a technological solution to meet the challenges of a rapidly-changing environment. It is clear that this new technology is changing the banking industry forever. Banks with the ability to invest and integrate information technology will become dominate in the highly competitive global market. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future is enormous.

BASIC TOOLS OF IT IN BANKING FOR THE CUSTOMER:

ATM:-

ATMs are self service vendor machine that helps the bank to provide 24 hours banking services to their customers at convenient place without visiting the bank premises. Its provide facility of withdrawal of cash to customer up to particular limit. The bank provides ATM card to customer which contains information about name of bank, name of customer, card number, validity period and signature.

Debit Card:It is a prepaid card with some stored value. The banks issue personal identification Number (PIN) to the customers for using the debit card. The debit card allows customer anywhere anytime accesses to the customers saving or current account. The debit card does not permit a customer to spend over and above his cash balance in the bank.

Credit Card:It is a Post paid card provided by banks which enables customer to purchase goods and services within prescribed limit without making immediate cash payments.

Internet banking:Internet Banking is also called Online banking where banking services are provided through internet. Internet banking enables customer to open accounts, pay bills, transfer funds, stop payments, know account all activity & balance.

Mobile Banking:Mobile banking is an extension of internet banking. It provides everyone with a mobile to access banking services by using SMS technology. Mobile alerts about debit and credit transactions etc.

Tele Banking:-

This is another form of electronic banking in which 24 hours banking service banking services are provided through telephone to its customers. It is based on voice processing facility available on bank computers.

Phone Banking:Under phone banking a customer can talk to phone banking officer and can do entire non-cash related bank services on telephone anywhere at any time.

National Electronic Fund Transfer (EFT):It is and easy and speedy mechanism which enables customer to transfer money instantly from one bank account to another one of the same customer or another customer, from one branch to another within the country or anywhere else in the world through electronic message. Electronic Fund Transfer helps beneficiary to receive money on the same day or next day of money transfer.

Electronic Clearing Services (ESC):-

Electronic clearing services was introduced to facilitate the payments done by customers, companies and government department. It consists of Electronic Credit Clearing Services and Electronic Debit Clearing Services. Electronic Credit Clearing Services was introduced to facilitate bulk and repetitive payments such as salary, pension, dividend, interest etc. by companies and government departments.

Real time Gross Settlement (RTGS):It is an electronic based settlement of interbank and customer based transaction with liquidity support from RBI to participant of the system. Under RTGS system the settlement of fund is done within 2 to 4 hours and funds settled can be used immediately. The RTGS was introduced by RBI in March 2004 to enhance the efficiency of cheque clearance system.

SELF-INQUIRY FACILITY:Facility for logging into specified self-inquiry terminals at the branch to inquire and view the transactions in the account.

REMOTE BANKING:Remote terminals at the customer site connected to the respective branch through a modem, enabling the customer to make inquiries regarding his accounts, on-line, without having to move from his office.

BASIC TOOLS OF IT FOR THE BANK: -

During the last decade, banks applied IT to a wide range of back and front office tasks in addition to a great number of new products. The major advantages for the bank to implement IT are:

Availability of a wide range of inquiry facilities, assisting the bank in business development and follow-up. Immediate replies to customer queries without reference to ledgerkeeper as terminals are provided to Managers and Chief Managers. Automatic and prompt carrying out of standing instructions on due date and generation of reports. Generation of various MIS reports and periodical returns on due dates. Fast and up-to-date information transfer enabling speedier decisions, by interconnecting computerized branches and controlling offices.

For the employees:IT has increased their productivity through the followings:

Accurate computing of cumbersome and time-consuming jobs such as balancing and interest calculations on due dates. Automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing the staff from performing these timeconsuming jobs, and enabling them to give more attention to the needs of the customer. Signature retrieval facility, assisting in verification of transactions, sitting at their own terminal. Avoidance of duplication of entries due to existence of single-point data entry.

Conclusion:

The increase in the number of branches providing Core Banking Solutions in India shows that banking sector is adapting itself to introduction of new technology to increase efficiency and provide wide ranging services to the customer.