ST Andrews College of Arts, Science and Commerce SYBBI Semester –III Information Technology Group-4

Topic: Strides of Information technology in Indian banking & Review of bank of india

Group -3 Group Members 8104 8114 8124 8134 8138 8144 8149 8154 Bevinda D’costa Etasha Fernandes Flossie Monteiro Divya Salian Pranita D’souza Jesudas Joseph Nishant Rebello George Bush

Acknowledgement It gives us immense pleasure in acknowledging the valuable and co-operative assi stance extended to us by the various individuals who have helped us in successfu lly completing this project.

as also Internet Banking and Mobile Banking.First and foremost. Without helps of the par ticular that mentioned above. from the inroads made by IT. we would face many difficulties while doing this p roject. Her willingn ess to motivate us contributed tremendously to our project. with the Banking sector in particular. We also would like t o thank her for showing us some example that related to the topic of our project . we would like to thank to our Lecturer. IT has become such an esse ntial ingredient of one’s way of life in today’s world that it is difficult to imagi ne a world without IT. She inspired us greatly to work in this project. It is well recognized that technology holds the key to the future success of Ind ian Banks since it is Information technology which has brought in a sea change i n the way banking is being conducted today – which is but an indication of the mor row. And no other sector has benefited to such a large extent as the financial sector. And concepts such as ‘Anywh ere Banking’ or ‘Automated Teller Machines’ are but offshoots of technology implementa tion by banks. Thank you Ma’am Finally. an honorable mention goes to our families and friends for their unders tandings and supports on us in completing this project. TABLE OF CONTENTs 1 2 3 4 5 6 Introduction on the strides of IT in Indian Banking Introduction to Bank of India IT based services offered by Bank of India The future impact of IT on the Banking industry Conclusion Bibliography INTRODUCTION The two letters which has changed the way businesses operate has been IT as an a cronym for Information Technology. Such innovations ha ve had a positive impact on customer service – but the fundamental benefit that is derived by banks relates to reduced costs of operation – such as in handling cash and in servicing customers efficiently and accurately over the counters of bran . It would be beyond anybody’s imagination to even think about conducting banki ng business anywhere in the country or using a powerful yet simple medium such a s the Internet even from ro adside kiosks. But today this is the reality – which o wes its credit to the rampant exploit of IT by banks. for the valuable gu idance and advice. No other facilitating service has resulted in such large scale benefits as Information Technology.

One of the most significant areas where IT has had a positive impact is o n substitutes for traditional funds movement services. This is now possible thanks to the usage of IT in a larg e scale whereby centralised data bases are possible in a bank with decentralised access. diversifying delivery channels. STRIDES OF I. The most prominent challenge among the abov e relates to the concept of security. T he competition is not just from organisations performing funds transfer services but from other seemingly unrelated channels such as service providers for mess age transfer. With the advent of electr onic banking. With the delivery channels relating to fun ds based services – such as movement of funds electronically between different acc ounts of customers – taking place with the use of technology. These are frontiers which would add value to the services offered to c ustomers and at the same time act as a means for increasing the profits for bank s too. Many new players are entering into the arena of funds trans fer services and the pride of place enjoyed by bankers is under severe threat. The theme of "Relationships beyond Banking" has helped in creating & cementing a niche in the minds of the customers. Technology.50 lakh and 50 employees. It is this area which is a big challenge to banks.ches. funds transf ers across different constituents is now easily possible – within time frames whic h would have appeared impossible a few years ago. in creasing international capabilities and services. and strengthening revenue stre ams from diversified sources. Beginning with one office in Mumbai. with a paid-up capital of Rs.T IN BANK OF INDIA BANK OF INDIA (BOI): Bank of India has been pioneer in launching key initiatives in areas of Products . electronic funds transfer and other similar products. The Bank has redefined banking services with hi-te ch services. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other banks. Various c oncepts such as digital signatures. Distribution. In business volume. Bank of India was founded on 7th September. quick delivery of instruments and the like who all facilitate the movement of funds based messages at speeds faster than before. at any time and using delivery channels more suitable for them. Another option to achieve this is objective is to have clustered soluti ons in a bank with data of customers residing in these systems. . This B ank aims at strengthening customer relations. the Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international op erations. the requirements rel ating to security also need to undergo metamorphosis at a rapid pace. the Bank occupies a premier position among the nat ionalised banks. storage of information in a s ecure and tamper-proof manner like smart cards all assume significance and have to be part of the practices and procedures in the day-to-day functioning of bank s of tomorrow. The large scale proliferation of IT in the Banking sector has also brought into focus many challenges which have to be overcome by us. certification. A major attitudinal chan ge which is required is the need for a change in the concept relating to treatme nt of customers of banks – with the collapse of geographical distances. Banks need to co nstantly look for innovative services which offer customers the convenience of t ransacting from anywhere. The lines betwee n corporate communication carriers and banks are now blurred so that doubts aris e where one ends and another begins. 1906 by a group of eminent businessm en from Mumbai. banks need to treat the customer as a customer of the whole bank and not as a customer of any particular branch. International Operations and Risk Management.

at London. Total number of shareholders as on 30/ 09/2009 is 2. This policy document covers the following aspects: • Collection of cheques (including Cheques purchased) and other instruments payabl e locally. • Our commitment regarding time norms for collection of instruments • Policy on payment of interest in cases where the bank fails to meet time norms f     . Introduction Keeping in view the technological progress in payment and settlements systems an d the qualitative changes in operational systems and processes that have been un dertaken by a number of banks. IT BASED SERVICES OFFERED BY BANK OF INDIA 1) ‘ANYWHERE BANKING’ IN BANK OF INDIA : Policy on Collection of Cheques/Instruments – 1. the Reserve Bank of India had. Bank of India was the first Indian Bank to open a branch outside the country. The Bank has sizable presence abroad. in 1946. Newyork.82% of Bank s total business. The Bank has been the first among the nationali sed banks to establish a fully computerised branch and ATM facility at the Mahal axmi Branch at Mumbai way back in 1989. The bank is committed to increased uses of technology to provide quick collection services to its customers.15. The withdrawal of these mandatory guidelines was expected to enable market force s of competition to come into play to improve efficiencies in collection of cheq ues and other instruments.790. While firmly adhering to a policy of prudence and caution. and also the first to open a branch in Europe. Tokyo. The policy is based on principles of transparency and fairness in the treatment of customers. Paris. . It is an association that has blossomed into a joint venture with BSE. Hong-Kong and Singapore. London. (ii) Time Frame for Collection of Local/Outstation Instruments and (iii) Interest Payment for Delayed Collection. called the BOI Shareholding Ltd. Branch Automation Bank of India completes implementation of 100% Core Banking Solution in all its 3023 branches. withdrawn its earlier instructions to commercial banks on : (i) Immediate Credit of local/outstation cheques. There are 29 branches/ offices (including three representative office s) abroad.The Bank has 3101 branches in India spread over all states/ union territories in cluding 141 specialised branches. Business h as been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. to extend depository services to the stock bro king community. The Bank is also a Founder Member of SWI FT in India. Paris in 1974. the Bank has been in the forefront of introducing various innovative services and systems. This collection policy of the Bank is a reflection of our on-going efforts to provide better service to our customers and set higher standards for performance. The Bank came out with its maiden public issue in 1997 and follow on Qualified I nstitutions Placement in February 2008. at centers within India and abroad. with effect from 1 st November 2004. The international b usiness accounts for around 17. It pioneered the introduction of the Health Code System in 1982. The Bank s association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Cleari ng House. These branches are controlled through 48 Zonal Offices . with a network of 29 branc hes (including five representative office) at key banking and financial centres viz. fo r evaluating/ rating its credit portfolio.

cut-off time for receipt of high value clearing and receipt of cheques for payment to Government accounts like Income Tax etc.2. Outstation Cheques Cheques drawn on other banks at outstation centers will normally be collected th rough bank’s branches at those centers. would present local cheques on drawee banks across the counter and it would be the bank’s endeavor to credit the proceeds at t he earliest. As a policy. Wherever applicable. 2. Arrangements for Collection : 2. Where the bank does not have a branch of i ts own. bank would give credit to the customer’s account on t he same day clearing settlement takes place at that centre. etc.) will be collected generally through t hat office/branch. The bank would also use the National Clearing Services offered by the Reserve Bank of India at centres where such col lection services exist.. The Bank will endeavour to provide the credit to its Customers immediately on co mpletion of hold/cooling period by converting the foreign currency to Indian Rup ees by applying Bank’s TT Buying Rate prevailing on that day.or realization of proceeds of outstation instruments. Accordingly. Cheques deposited at branc h counters and in collection boxes within the branch premises before the specifi ed cut-off time will be presented for clearing as far as possible on the same da y. will also be displayed in the branches. The time norms for c . Bank branches situated at cent ers where no Clearing House exists.Local Cheques All cheques and other Negotiable Instruments payable locally would be presented through the clearing system prevailing at the center. 2. • Our policy on dealing with collection instruments lost in transit. Withdrawal of amount s so credited would be permitted as per the cheque return schedule of the cleari ng house.1. Cheques drawn on bank’s own branches at outstation centers will be collected using the inter-branch arrangements in vogue. The services of correspondent banks will be utilized in count ry/centres where the correspondent has presence. Cheques drawn on foreign banks at centres where the bank or its correspondents do not have direct presence will be sent direct to the drawee bank with instructions to credit proceeds to the r espective Nostro Account of the bank maintained with one of the correspondent ba nks. 2.3 Cheques payable in Foreign Countries Cheques payable at foreign centers where the bank has branch operations (or bank ing operations through a subsidiary. the instruments would be directly sent for collection to thedrawee bank or collected through a correspondent bank. The cut-off time for coll ection of cheques from drop boxes installed at off-site ATM will be displayed on the face of the drop boxes. Cheques deposited after the cut-off time and in collection boxes outside the branch premises including off-site ATMs will be presented in the next available clearing cycle. Branches which are connected through a centralized processing arrangement and are offering anywhere banking services to its customers will provide credit within two working days subject to availabili ty of balance to its customers in respect of outstation instruments drawn on any of its branches in the CBS network and charges as applicable will be levied. The respective branches will display the cut-off time for receipt of cheques to be sent in clearing on the same day in their premises. facility of high-value clearing (same day credit) will be extended to customers.

comprehensive Solar Power Backup syste m to provide power through UPS (uninterruptible power supply) to meet the needs                   . BIOMETRIC AUTOMATIC TELLER MACHINES: Banks In India have started introducing Biometric Automatic Teller Machines (ATM s) as it seems to be an effective way of preventing PIN theft and is also a chan nel to expand a bank’s reach to the rural & illiterate masses. The Bank has also entered into bil ateral agreement with State bank of India and its associates. one each for the Twin Cities of Hydera bad and Secunderabad. The biometric ATM replaces personal identity numb er (PIN) with thumb impression. There are numerous B ank Of India ATM counters spread across India. 3) Solar Power Systems The Bank wishes to procure an integrated.using a plastic. Such ATMs from some providers also accept traditional PIN based cards. Th is is the third ATM of the bank in the city. The Bank has joine d National Financial Switch (NFS) which enables the Customers to access more tha n 35. Of these 35 were connected to the 750 branches located in different parts of the country.000 ATMs across the country. The Bank is having its own 487 ATMs (bot h on-site & off-site). The due date for p roviding credit is calculated and taken as one more week from date of notional c redit in NOSTRO account plus the hold period prescribed for the country. There were plans to open five more in and around Coimbatore soon. The fingerprint scanner fitted in the machine on ly recognizes the customer s thumb impression. HSBC set the trend and set up the first ATM Machine here in 1987. Dena Bank has launched the Bio-metric ATMs in Gujarat. ATMs have become a common sight in many of our metros. Bank of India opened an ATM at its Kurichi Industrial Estate branch premises. 2) Automated Teller Machines (ATMs) The story of the humble cash-dispensing machine started around three decades bac k. ATMs allow you to do a number of banking functions . having 13 member Ba nks and BANCS network having 14 member banks. These ATMs talk to the farmers in their local language. magnetic-strip card and personal identification number issued by the financial institution. ATMs have made hard cash just seconds away all thro ughout the day at every corner of the globe. Corporation bank has also introduced talking biometric A TMs. Ganapathy. S ince then. These Kisan ATMs are designed for the rural farmer and incorporate video & voice animation system coupled with si ngle-touch application that makes things not only easier but also safer for farm ers who no longer have to depend on others to withdraw money from the bank. The Bank Of India ATM services are provided all over India. The Bank is member of Cashtree and BANCS network. The Ban k is the Settlement and Nodal Bank for Cashtree ATM network. Andhra Bank has l aunched two mobile biometric-access ATMs. according to a bank release. Union Bank of India installed a first such Kisan ATM at Sivagangai branch Tami l Nadu. With more than 800.000 machines worldwide.such as withdrawing cash fr om one s account. according to Bankne t India’s Report on Indian ATMs. In India. making balance inquiries and transferring money from one accou nt to another . So where ever you are you have a Bank Of India ATM ready for you nearby.ollection and return of the instruments varies from country to country and place to place within the country where a ‘hold period’ is prescribed. Bank of India s Multi Branch Banking (MBB) network and off site Automated Teller Machine (ATM) were inaugurated at Shri Ganapathy Nursing Home. The bank has 65 branches in Coimbatore Zone and all these branches were fully co mputerized.

the power flows from the b atteries. districts of Lucknow in U. ii) In the absence of sufficient load of direct Solar Power. grocery. viz. It will reduce wait-time. Disbursements a nd acceptance of money take place by means of inputting information through a se parate computer to the cash dispensing mechanism inside the vault. which is simi lar in construction to an automatic teller machine vault. 5) Teller Cash Dispensers Teller cash dispensers (TCD). payday loan / advance. Bho pal in M. the grid power flow s for the appliances / computer hardware along with the charging of batteries. The Bank wants to use Solar Power backup system as an alternate source of energy through UPS at branches that face acute power shortage. Gadab (rural) branch of Raigad Thane Zone. A TAU provides a secur e and auditable way of handling large amounts of cash by tellers without undue r isk from robbery Installation of Teller Cash Dispensers is in progress at identified branches. enhance the productivity of Tellers and also help in acc urate dispensing of Cash. We plan to extend in an other 100 branches / administrative offices during the year 2009. Mobile Device with Biometric Authentication can obviate the need for cards which are High on Cost and Maintenance. The arrival of banking technology in today’s world has realised that the poor too are bankable with good banking prospects. Some of the uses of IT for Financial Inclusion in Bank of India is for: • Secure identification and biometric authentication system. The IT Vendors finalised for this purpose are: • HCL. Puttur i n Hyderabad Zone. TCS and Integra Micro System P Ltd. are devices used in retail banking for the disburs ement of money at a Bank teller wicket or a centralized area. 4) Financial Inclusion Financial inclusion means extending the banking services at an affordable cost t o the less privileged in urban and rural India and weaning them away from unorga nized money markets and about 85 sites with + / -15 sites in phases to run the IT infrastructure like computers/printers/scanners/etc as also Lights & Fans to enable the branches to carry on uninterrupted banking services. for Smart Card based solution • Integra for Mobile based solution PILOT has commenced with HCL (Ranchi and Thane) And TCS (Bhagalpur and Khandwa).P. have large load sheddin g periods and where alternate sources of power are found costly or unpractical. Bank of India has made good use of IT for financial inclusion purposes. Solar Power Systems implemented in 147 Rural / Semi urban branches where there i s acute shortage of Power or high load-shedding periods. Cash supplies are held in a vault or safe. check cashing. 6) Internet Banking Services .. iii) In the absence of both Solar Power & Grid Power. Expansion of the solution in these centers is in full-swing. • Local language enabled voice guided systems Mobile based Financial Inclusion: Mobile phones could be used to achieve financial inclusion for large number of p opulation. Other areas of app lication of TAU include the automation of starting and reconciling teller or cas hier drawers (tills) in retail. The installation of solar system is such that – i) the solar Power gets utilised first by the appliances / computer systems atta ched thereto and simultaneously charges the batteries also. Implemen tation of Unique Identification (UID) coupled with new technologies will expedit e the process of financial inclusion in the country.P and Budhni in Sehore District. a nd casino operations. IT enabled FINANCIAL INCLUSION SOLUTION has been successfully implemented in dif ferent states of India.

Insurance premium. by relaxing on couch in their home. ta x payments. The RTGS syste m is the fastest possible interbank money transfer facility available through se cure banking channels in India. etc. Transfer of funds including third party transfer within the network ed branches etc. Apart fr om it. without any charges.jus t like they did before. from anywhere in the world. th ey can pay their bills and make other payments online in a secure and convenient manner. All one need is a computer. A host of other features like banking transaction details. Star Connect Internet Banking Service By BOI: Bank’ customers enjoy the convenience of “secured” Anytime. Enquiring status of cheques. Bank provides a unique user ID and password for its customers to login into the bank website for conducting financial trans actions using net banking. Mobile Bills. Internet Bankin g is basically conducted via a personal computer connected to Internet. Using this service. Cre     . PDA or cell phone with active internet connection to get going with net banking. utility bill payments. people can also do financial transactions using Internet banking on their cellular phones or personal digital assistants. to a Bank account with any other Bank in India Online Interbank Fund Transfer is made easy and convenient by BOI. Anywhere. one needs to activate net banking facility with his/her bank. Th is service is part of Bank of India s various initiatives to leverage technology for offering convenient services to its account holders. Request for a cheque Book. Now. The BOI STAR ePay service is implemented by Bank of India in as sociation with BillDesk. Feat ures like Statement of Account – View. 365 days a year. Funds are transferred to the credit a ccount with the other participating Bank using RBI s NEFT service. Electricity Bills. The acronym " RTGS" stands for Real Time Gross Settlement. regular email reminders so that th eir bills are paid on time. (The acronym "NEFT" stan ds for National Electronic Funds Transfer. With S tar Connect Internet Banking Services you can access all your banking accounts w ith the Bank. do online sho pping. an electronic payment and collection service bureau.Internet banking is a system of banking that enables customers to perform variou s financial transactions on a secure website via the Internet. Customers can register for Auto-pay or on-line payment of various utility servic es like Telephone Bills. They can review their bills. how muc h to pay and also select the bank account (s) they wish to make the payment from . There are many ba nks and credit union that operate websites for internet banking. view ing/ printing of account statement. They will of course continue to get the physical bills from your billers . Before using net banking. a facility to store all the payments they made durin g the year and importantly efficient organisation and management of their bill p ayment activity. through the Star Connect Internet Banking Se rvices. The RTGS system facilitates transfe r of funds from accounts in one bank to another on a "real time". book their tickets. transferring funds. Best part of net banking is that it is very easy to do any transaction over the net and highly secure website ta kes care of all your worries. Net banking offers the custome rs peace of mind as they can pay their bills. ticket booking. Anyhow hassle fr ee Banking from the comfort of their Homes & Offices with a mouse click. one can transfer funds online across banks. using RTGS/ NEFT facility. etc. What one gets with the BOI STAR e Pay service is complet e flexibility and control in making payments. 24 hours a day.) 8) BOI Star e-Pay BOI STAR ePay is a great new service that provides the customer with a single po int of contact for most of their recurring payment needs. third party payments. among others make it the most convenient way for to conduct banking activities. choose when they want to pay them. 7) Interbank Fund Transfer Inter Bank Transfer is a special service that allows you to transfer funds from your account with a Bank.

The Bank account and the demat account are automatically debited or credited. Thus IT has helped a lot in the above ways for electronic payment at BOI. The benefits being:• No more late payments. wi thout missing on the Capital Market Opportunities. • No more hassles of writing and depositing of cheques. Wh en they wish to buy or sell shares. avoiding que ues and last minute rushes. • Complete control -. transparent and hassle-free way to trade in shares. The element of risk associated with performing the transaction online has also been taken care of. • Secure -. review them and make your payment s. Central Excise & Service Tax There are various benefits in paying taxes online – for companies and busy profess ionals. The transfer of funds takes place on the NSDL-TIN can decide when to pay. Intra day Trading: Reverse/square off your buy/sell trade in the same settlement without having to block additional fund or share for meeting delivery obligatio n. using a technology called encryption o ver secure socket layer (SSL) authentication. . Service Tax and Custom duties online from the comforts of their office or home. kiosk) connected to th e Internet and you can receive all your bills. demat and trading accounts. 9) E-Payment of Direct & Indirect. • Easy to use -. which involves the use of a lot of paper. Mutual fund appli cations and certain other agencies.dit card Bills and subscription payments to certain magazines.While placing a buy or sell order.www. avoiding the penalties levied by the Incom e Tax Department for making late tax payments. This facility is a great help and convenience to tax payers as they can deposit their tax dues with ease and in time. it is also faster. All this from the conve nience of their home or office. They may trade as many number of times in as many scrips on both the exchanges (NSE/BSE). Customers can pay their Direct & Indirect taxes.all you need is a device (computer. they have to log to the website address of B ank of India. Tax p ayers can verify the status of the challan in the ‘Challan Status Enquiry’ at the NS DL-TIN website after 5 to 7 days after e-payment of the challan. how much to pay and also set up when you would like to be reminded or informed of all your . 10) ONLINE SHARE TRADING Star e-Share Trade Bank of India introduces a fast. Star Share Trade offers following facilities: Delivery based Trading : You can take /give delivery of shares based on adequate funds /stocks in your accounts. on which the tran saction details are encoded for security. the system checks the funds and shares available in your bank and demat account respective ly and executes the trade on the exchange online. track settlement perform all you operations in a secure environment. • No more queues. easy. Apart from being an easy and convenient method. write cheques/delivery instructions for their purchases/sales.a few clicks and you can make all your payments.They can also trade in the stock market while on the move through their lap top or any PC from where they can access internet. Besides being a secure and conveni ent medium of tax payment. Customers can invest in shares traded on the stock exchanges without having to visit or telephone their share-broker. e-payment is an eco-friendly process compared to the traditional method. BOI helps one to integrate banking. One can buy/sell shares backed by funds and securities available in their bank/demat account. • Easy accessibility -.bankofindia. Tax Payment has been made Easy and Convenient by Bank of India’s e-payment facilit y. Central Excise.

16) Online Application for Education loan There is also an online application available by BOI for repayment of education .e. • Instantaneous transfer of shares/securities. without having to wait for r eceipt of shares in your demat account.The most convenient way of keeping track of debits and credits in your Demat Account. 12)Star e-Remit Service An effective way to transfer money from any bank account in the United States to anyone in India. • Direct credit of demat shares allotted in Public/Rights/Bonus Issues. 15)Online Booking of Indian Railway Ticket Railway Ticket booking has been made easy. The facility can be used for all personal US dollar remittance from anywhere in USA to India. Select your flight. provides EFT (Electronic Fund Transfer) to the Exporters for submitting t he license fee through the Internet without visiting the Bank for the payment. • Transposition-cum-demat facility to enable investors to transpose name/s of join t holder/s. 2100+ branches are RTGS enabled & 2000+ branches are NEFT enabled. IT based facilities available with STAR SECURE ACCOUNT : • Dematerialisation of physical share certifices • Rematerialisation i. • Pledge/hypothecation of demat securities. alongwith the process of dematerialisation. Ministry of Commerce. This way. secure and convenient mode of license without visiting the Bank. converting electronic holding into physical certificate • Safe Custody of demat securities. An investor can get his/ her securities dematerialised in same account if names appearing on the certific ates match with the names in the account even if the names are in different orde r. • Distribution of dividend through depository system. 11) RTGS / NEFT Remittance of funds for inter-bank transactions / customers transactions utilisi ng the RBI’s RTGS infrastructure through our networked RTGS / NEFT enabled branche s. This facility is available only for the On-line filed license applications with DGFT. Select the train.Buy today Sell Tomorrow : Sell the shares purchased immediately the next day or the day after (before pay-out ) the buy trade date. no transaction can affect your account without your explicit authorisation. • Freezing/Defreezing of account facility by which you may instruct your DPO to fr eeze your Star Secure Account till further notice. 13) DGFT Online e-Payment DGFT (Directorate General of Foreign Trade. Government of India. • Mobile Alert Facility :. provide necessary d etails and pay through Bank of India Internet Banking. T he Exporters having a valid IEC code and Internet Banking with Fund Transfer fac ility with us can make use of this facility for payments to DGFT. 14) Online Booking of Indian Airlines Ticket / Spice Jet Travel Ticket booking is also made easy by BOI. provide nece ssary details and pay through Bank of India Internet Banking. It is a safe. • Settlement of trade done in demat/ rolling segment of stock exchanges.

instant and convenient. Ticket booking features among others will definitely make it the most convenient way for you to conduct your banking activities. . which allows you to do virtually all your banking activities from your mobile device. BSES Rajdhani. While some of these ancillary services are outsourc ed to third parties (often for regulatory reasons). thereby provi ding a cost-effective financial processing & communication services of assured q uality. Mahanagar Gas. Reliance Energy. MTNL. refund orders. Mini Statement. Vodafone. brokerage accounts. Reliance Infocomm. 17) Online Utility Payments Online facility for payment of Utility bills and other payments is also made ava ilable by Bank of India. private bank ing and retirement planning. salary pensions etc. 20) ECS (Debit & Credit) BOI offers its customers a faster and easier method of effecting payments by dir ect debit to the customer’s account in case of utility payments. A host of features like your banking transaction details. Some retail banks have even made a push into investment services such as wealth management. Bank of India is in tie up with M/s mChek India Payment Systems Private Ltd and M/s PayMate to extend Mobile Payments to all Retail Banking customers. Idea. from anywhere. ECS is also a preferred method of credit in respect of dividend warrants. viewing of Account Bal ance. Utility Bill payments. VSNL. It offers fast-track chequ e collections. Self Transfers. BSNL (select circles). interest warrants. integrity. reliability for International funds transfer and other financ ial transactions. si mple. Tata Sk y. speedier release of funds and profitable funds management at a re asonable cost. 19) STAR CASH MANAGEMENT It is a product specifically for corporate customers.viz. Tat a Indicom. Statement. Third Party Transfer of funds. MSEB. It’s 365 days a year. 24 hours a day. LIC etc. they often intertwine with c ore retail banking accounts like checking and savings to allow for easier transf ers and maintenance. With Star Connect Mobile Banking you can access all your banking accoun ts with the Bank. is a state of the art facilit y. 23) Star Connect Retail Internet Banking Retail banking aims to be the one-stop shop for as many financial services as po ssible on behalf of retail clients. BSES Yamuna. 18) SWIFT Our bank also facilitates services to its customers through SWIFT. Airtel. 22) Mobile Banking BANK OF INDIA ONLINE SERVICES Star CONNECT Mobile Banking Services Bank of India’s Star Connect Mobile Banking Service. Bank of India has enhanced and added something new on Star Connect Retail Intern et Banking for Application Supported by Blocked Amount (ASBA) IPO. NDPL Delhi. credit card bills etc.

and manage competition. cut costs. Given the huge IT budgets at their disposal and with almost no lega cy IT equipment to worry about. private banks entered the banking arena with radically different strategies. Although titled Total Bank Automation. banks are focused on three areas: meet cu stomer s service expectations. to the present. banks need to think beyond just basic automation. Banks started exploring the idea of Total Bank Automation ( TBA) . This brought about evolution and t             . It has moved from being just a business enabler to bei ng a business driver. As it is clear for the previous story. Evolution: The Rangarajan Committee report in early 1980s was the first step towards comput erization of banks. mobile banking. The philosophy for private banks was very clear: to provide a whole new range of financial products and services at minimal costs. The future trends and improvements of IT in the banking industry could be as fol lows: I. At the same time. The improved connectivity and falling costs offered by leased lines and VSATs pr ovided a booster to inter-branch automation. it became more feasible for banks to network their branches. For this banks are exploring new financial products and service options that would help them g row without losing existing customers. Technology factor in banking : The core issues faced by banks today are on the fronts of customer s service exp ectations. It involves a co mbination of centralized networks. But to be really competitive. In a manner the banking and financial services sector—being the early adopters of any new technology—defines the roadmap for future technology adoption. Net-banking. IT is central to banking. With cen tralized infrastructure and numerous connectivity options. With these developments it became pos sible for operations such as MIS to be truly automated and centralized. Gone are the days wh ere IT was deployed for automating accounting/back office functions to remove dr udgery of employees. Information technology has somehow shaped the banking i ndustry. TBA was in most cases confined t o branch automation. banks started explori ng multiple delivery channels like ATM. A better way to understand the technologies that would define the future of banking would be to start in the past. With the improved services and lowe red costs of service providers such as DoT and VSNL. and Tele-ba nking thus driving down cost per transaction. III. This gave banks an impetus to network all the branches and set up centralized databases. electronic banking revolution. Evidence can be found from the past. A utomation enables banks to offer 24x7x365 service using lesser manpower. It was only in the early 1990s that banks started thinking about tying-up disparate branches together to facilitate information sharing. IT has changed the way a bank reaches out to its customers. computerization of banking industr y.THE FUTURE IMPACT OF IT ON THE BANKING INDUSTRY Banking has evolved a lot over the years due to the impact of evolving technolog y in the banking sector. Automation: Automation is the basic thing that banks need to have in place. and managing competition. It is now massively being deployed for customer interfacing /interaction. And technology made this p ossible. operations. II. Technology would help banks in meeting these objectives. cutting operational costs. private banks hastened the adoption of technolog y. And any new financial product or service that a bank offers will be intrinsically related to technology. and a core banking application.

Outsourced security Given the very nature of financial transactions. This was the first stage of empowerment of the customer for his own transacti ons.he same is expected in the coming years. information security plays a cr itical role in banking. VII. the new private se ctor banks entered the field. With t hese concepts came the need for a centralized database. Banks are reinventing themselves as m arketing agencies by selling products like life insurance. hardware. In the third wave. These banks opted for a different model of having a single centralized database instead of having multiple databases for all their branches. electronically. RBI bonds. transactions between banks can be done through the settlement system. just a si ngle IP based network is used. The third important development happening now is the real-time gross settlement system of the RBI. This automated both the front-end and b ack-end operations within the same branch. Increasin gly. Most banks have a clearly defined security policy with a ccess rights determined by the role an employee plays in an organization. etc). Thus centralisation in banking is evolving and wo uld be of prime importance in the coming years. The fourth wave started with the evolution of the ATM delivery channe l. the network/backend infrastructure used to be decentralized. IV. CRM TOOLS RESULTING IN A HAPPY CUSTOMER Managing customers is one of the main issues that banks face in today s hypercom petitive environment. in all likelihood the customer might take his business elsewhere. Decentral ized networks had their own set of problems in terms of the cost and management fronts. VIII. So the collections will become very fast. Core banking applications help provide complete front and backend automati on of banks. all banks will require it as they get centralized. TBA comprised of total automation of a particular branch with its own database. The second stage was the Suvidha experiment in Bangalore. credit car ds. Core banking applications are able to support this. In addition to investing in the usual security tools and solutions like anti-vir   . banking applications. database(s). Thus core banking w ould also improve drastically over the years. Banks are increasingly adopting core-banking solutions for retaining customers a nd lowering service costs to the customer. etc. Once this is in place. online. The decentralized model involves huge capital expenditure and resources (trained manpower. This is where Customer Relationship Management (CRM) practices (most important) and software (on the technology side) play an important role. voice or videoconferencing. irrespective of whether its data. The networks had to be run and managed with lesser costs. Waves of change The first wave in banking technology began with the use of Advanced Ledger Posti ng Machines (ALPM) in the 1980s. The RBI advised all banks to go in for massive computerization at the branch level. With the second wave of development in late 1980s came Total Bank Automation (TBA). This showed the p ower of technology and how the reach can be increased phenomenally at a great pa ce. CRM is a tool that allows you to emote and relate with your customers. Today. If the service levels are not up to customer expectations. This was an acceptable scenario till multi-channel came into the picture. The need for centralized infrastructure: In the early days of banking technology. there is no coord ination or one central control point. This meant that each branch had its own server(s). VI. Bankin g is one sector where CIOs are focused on the core security processes and operat ions than just implementing security products. In the decentralized model. ATMs or mobile banking. V. The database had to be u pdated instantaneously irrespective of the branch or channel the customer used. Core matters After the turn of consolidated databases and networks come core banking applicat ions. and other such assorted hardware/software.

Information technolo gy has also improved the efficiency and robustness of business processes across banking sector. real time information system. and PKI. and efficient risk managemen t are some of the advantage derived through the technology. We have clearly seen this change in Bank of India case study that we have done and we have studied the technologies adopted by them. many banks are now ou tsourcing their security requirements. Indian banking indus try is the midst of an IT revolution.   . CONCLUSION Thus we have seen how IT has shown its strides all over the banking sector over the years. Technological infrastructure has become an indispensable part of the reforms process in the banking system. Productivity enhancement. almost in every nation in the world. speedy transactions seamle ss transfer of funds. with the gradu al development of sophisticated instruments and innovations in market practices. intrusion detection systems (IDS). India s banking sector has made rapid strides in reforming and a ligning itself to the new competitive business environment. innovative This way they can focus on their core bus iness competencies than managing their backend security. firewalls. IT is not only here to sta y but it is also growing rapidly and effectively changing the reforms and polici es in the banking sector and making it even more easier and efficient. The Banking sector has been immensely benefited from the implementati on of superior technology during the recent past.

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