CORE BANKING SYSTEM IN INDIA

PIYUSH
14101094
What is Core Banking System
 Core banking is services provided by a group of
networked bank branches. Bank customers may
access their funds and other simple transactions from
any of the member branch offices.
 Need of Core Banking System
 Increasing customer satisfaction and convenience

 Freeing up time for branch staff to focus on sales

and marketing

 Simplifying process for employees

 To meet the regulations and compliance

requirements (example in order to meet the Basel
ll norms banks must enhance there IT
infrastructure).
Advantage of Core Banking System
 Customer can operate his account from any
of the branch of the bank

 More service channels can be made available

to the customer

 Customer can get SMS alerts on his mobile or

E-mail alerts through net for transaction
taking place in his account. This gives him
comfort and security.
 WORKING

Bank branch office system Internet front office

Web
service

Back
Security sub
office
system
terminals

Internet

User
 Automated Teller Machine
 Automated teller machine which provide ready cash in hand
simply with by using ATM-CARD and a secret PIN number
provided by the bank
 Mobile Banking
 Mobile banking is a system that allows
customers of a financial institution to
conduct a number of financial transactions
through a mobile device such as
a mobile phone or tablet.
 Internet Banking
 A system of banking in which customers can view
their account details, pay bills, and transfer money by
means of the internet account details, pay bills, and
transfer money by means of the internet.

contd..
 Real Time Gross Settlement

 RTGS system is a funds transfer mechanism

where transfer of money takes place from one
bank to another on a real time and on gross
time

 This is the fastest possible money transfer

system through the banking channel

contd
National Electronic Funds Transfer
System(NEFT)
 Funds are transferred to the credit account
with the other participating bank using RBI’s-
NEFT service

 NEFT operate on a deferred net

settlement(DNS) basis settles transaction in
batches(Clearing house)

contd.
 WHY RTGS/NEFT
 Lower cost of transaction of RTGS/NEFT as
compared to cost of transaction and
remmitance through draft

 Customer benefit-Immediate credit

 Low transaction time, no printing, shorten the

queues

contd..
Domestic Branch Network(BOB

Regional Break-up of
Domestic Branches as on 30th June, 2011
Metro Urban Semi- Rural
Urban
756 639 842 1,172