A bank is a financial institution that provides banking and financial services like accepting deposits and providing loans. Banks safeguard money and valuables, and offer services like checking accounts, loans, and investment products. Banks use technologies like internet banking, mobile banking, point of sale terminals, and wire transfers to improve efficiency, customer service, and management while reducing costs. However, increased internet usage also brings risks like hacking, phishing, and credit card fraud that banks must address.
A bank is a financial institution that provides banking and financial services like accepting deposits and providing loans. Banks safeguard money and valuables, and offer services like checking accounts, loans, and investment products. Banks use technologies like internet banking, mobile banking, point of sale terminals, and wire transfers to improve efficiency, customer service, and management while reducing costs. However, increased internet usage also brings risks like hacking, phishing, and credit card fraud that banks must address.
A bank is a financial institution that provides banking and financial services like accepting deposits and providing loans. Banks safeguard money and valuables, and offer services like checking accounts, loans, and investment products. Banks use technologies like internet banking, mobile banking, point of sale terminals, and wire transfers to improve efficiency, customer service, and management while reducing costs. However, increased internet usage also brings risks like hacking, phishing, and credit card fraud that banks must address.
A bank is a financial institution that provides banking and
other financial services to their customers such as accepting 12/8/2012 deposits and providing loans. A banking system also referred as a system provided by the bank which offers cash management services for Indian Banking System customers, reporting the transactions of their accounts and portfolios, through out the day. The banks safeguards the money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashiers cheques. The banks also offer investment and insurance products. Need for Banks To provide the security to the savings of customers. To control the supply of money and credit. 12/8/2012 To encourage public confidence in the working of the financial system, increase savings speedily and efficiently. Indian Banking System To avoid focus of financial powers in the hands of a few individuals and institutions. To set equal norms and conditions (i.e. rate of interest, period of lending etc.) to all types of customers. FUNCTIONS OF BANKS Accepting Deposits from public/others (Deposits). Lending money to public (Loans). Transferring money from one place to another (Remittances). Acting as trustees. Keeping valuables in safe custody. Government business. TYPES OF BANKS
Public sector Banks Private sector Banks Co-operative Banks Development Bank/Financial institutions Banking before IT Large no of queues in banks Large no of files to record the data manually Waste of time The growth was restricted to the metropolitan or urban areas. efore the computer, there were some other business machines that performed limited functions such as the typewriter and the calculator. Everything else had to be done by hand - pen and paper. Sales receipts were hand-written, spreadsheets were done on paper, accounting records were kept in ledger books, there were ellaborate filing systems to keep records and inventories. Before typewriters, even business letters were hand-written. Everything required more effort and was less effective and less accurate than today's computer systems. That is assuming that the computer is used properly and the data input is correct!
WHY TECHNOLOGY IN BANKS ? INCREASED OPERATION EFFICIENCY,PROFITABILITY & PRODUCTIVITY SUPERIOR CUSTOMER SERVICE PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF CHANNELS TO BE FUTURISTIC AND HAVE TIME VALUE IN ALL ITS DEALINGS WITH CUSTOMERS IMPROVED MANAGEMENT/ACCOUNTABILITY BETTER CROSS SELLING ABILITY MINIMAL TRANSACTION COST IMPROVED FINANCIAL ANALYSIS CAPABILITIES. VARIOUS FORMS OF TECHNOLGY Electronic banking / internet banking Mobile banking/ tele banking Point of Sale (PoS) Terminals Wire transfer E banking/ Internet banking Shoppi ng Onl i ne: One can shop securel y onl i ne wi th the exi sti ng debi t/credi t card. Thi s can
al so be done wi thout reveal i ng the customer's card number.
Prepai d Mobi l e Refi l l : A bank's account hol der can recharge hi s prepai d mobi l e phone wi th
thi s servi ce.
Bi l l Pay: A customer can pay hi s tel ephone, el ectri ci ty and mobi l e phone bi l l s through the
Internet, ATMs, mobi l e phone and tel ephone.
Regi ster & Pay: One can vi ew and pay vari ous mobi l e, tel ephone, el ectri ci ty bi l ls and i nsurance
premi ums on-l i ne. After regi steri ng, customers can get sms and e-mai l al erts every ti me a
bi l l i s recei ved.
RTGS Fund Transfer: RTGS i s an i nter-bank funds transfer system, where funds are transferred
as and when the transacti ons are tri ggered (i .e. real ti me).
Onl i ne Payment of Taxes: A customer can pay vari ous taxes onl ine i ncl uding Exci se and
Servi ce Tax, Di rect Tax etc.
Mobile banking Cash-in, cash-out transactions on an ATM Domestic and international fund transfers Micro-payment handling Mobile & Direct to Home package recharging Purchasing tickets for travel and entertainment Commercial payment processing Bill payment processing Peer to Peer payments (e.g., Popmoney, Isis)
Point of Sale (PoS) Terminals
To use smart cards/debi t cards/credi t cards for the purchase of an i tem or for payment of a
servi ce at a merchant's store, the card has to be swi ped i n a termi nal (known as Poi nt of Sal e
or POS termi nal ) kept at the merchant's store. As soon as the card i s put on the termi nal , the
detai l s of the card are transmi tted through di al -up or l eased l ines to a host computer. On
veri fi cati on of the genui neness of the card, the transacti on i s authori sed and concl uded. It i s
thus a means to 'check out' whether the cardhol der i s authori zed to make a transacti on using
the card. POS termi nal i s a rel ati vel y new concept.
A Poi nt of Sal e (PoS) termi nal i s an i ntegrated PC-based devi ce, wi th a moni tor (CRT), PoS
keyboard, PoS pri nter, Customer Di spl ay, Magneti c Swi pe Reader and an el ectroni c cash drawer
al l rol led i nto one. More general l y, the POS termi nal refers to the hardware and software used
for checkouts.
In recent years, banks are maki ng efforts to acqui re Poi nt of Sal e (PoS) termi nal s at the
premi ses of merchants across the country as a rel ati vel y new source of i ncome. 'Acqui ri ng' a
POS termi nal means i nstal ling a POS termi nal at the merchant premi ses. Wire transfer Wire transfers are a type of electronic funds transfer. They are usually considered the safest way to transfer funds, especially large amounts, to other banks or countries. Most large banks belong to a bank network in Belgium called the Society for Worldwide Interbank Financial Telecommunications (SWIFT) that helps to verify and process financial messages, such as transfers. In order to make a wire transfer to another country, you will need to get some information from your payee and submit a fee to a major bank to process the transfer. Negative impact.