HDFC Banking Technology

INTRODUCTION:
Housing Development Finance Corporation Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial services company based in Mumbai, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 200809.

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HDFC Banking Technology

HISTORY:
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs. 89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crores. HDFC Bank Ltd was promoted in the year 1994 by the premier housing finance company of the country, HDFC Ltd. The Bank commenced operations as a Scheduled Commercial Bank in January 1995. Today the Bank has a nationwide network of over 1412 branches and 3295 ATM s spread over 528 towns and cities across India. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) and the Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange. The Bank has been bestowed with numerous awards and accolades from top national and international agencies & magazines. HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the vision of becoming a World-class Indian bank. Their business philosophy is based on four core values - Customer Focus, Operational Excellence, Product Leadership and People. They believe that the ultimate identity and success of the bank will reside in the exceptional quality of their people and their extraordinary efforts. Members are committed to hiring, developing, motivating and retaining the best people in the industry. The Bank s objective is to build sound business franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments. They are committed to healthy growth in profitability while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. 2

HDFC Banking Technology

MISSION AND STRATEGY:
The bank s mission is to be " a World Class Indian Bank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank members are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Their business strategy emphasizes the following : Increase market share in India s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage their technology platform and open scalable systems to deliver more products to more customers and to control operating costs. Maintain their current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce cost of funds. Focus on high earnings growth with low volatility.

DISTRIBUTION NETWORK:
HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in 771 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centers across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base. The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders

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Debit and Prepaid Cards to help you meet your financial objectives.HDFC Banking Technology Activities : HDFC Bank mainly provides three kinds of banking services: y y y Personal Banking NRI Banking Wholesale Banking The following are the products and services provided by the HDFC bank HDFC Bank provides loans like Personal Loans . a wide array of commercial.Two Wheeler Loans .. make payments etc. Insurance. Equities & Derivatives. New car Loans. efficiently and in a timely manner. etc. Express Loans. transfer funds to India. HDFC Bank has a range of products and services that one can choose from to transact smoothly. HDFC Bank provides facilities like Mutual Funds. Knowledge Center. transactional and electronic banking products. economical and convenient options to remit and transfer funds to India. Mudra Gold bar. Educational Loans . HDFC Bank acts as an active medium between the government and the customers by means of various services. If one needs to deal in foreign currency and keep tabs on exchange rates every now and then. 4 . Corporate Banking reflects HDFC Bank 's strengths in providing corporate clients in India. Financial Planning. Home Loans . Overdraft Against Car. y y y HDFC Bank provides Credit. Bonds. General & Health Insurance. Used Car Loans. HDFC Bank has designed two programs to make banking easier for the customers and they are y y HDFC Bank Preferred Programme HDFC Bank Classic Programmme HDFC Bank offers Private Banking services to high net worth individuals and institutions. HDFC Bank offers quick.

The Indian banking industry is passing through a phase of customers market. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. which enables the bank to offer speedy funds transfer facilities to its customers. All the bank's branches have online connectivity. expertise and technology to create a competitive advantage and build market share. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs) The Bank has made substantial efforts and investments in acquiring the best technology available internationally. The customers have more choices in choosing their banks.HDFC Banking Technology TECHNOLOGY: Technology has brought about strategic transformation in the working of banks. to build the infrastructure for a world class bank. With years. In each of its businesses. With stiff competition and advancement of technology. banks are also adding services to their customers. 5 . HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. The Bank's business is supported by scalable and robust systems which ensure that their clients always get the finest services they offer. the service provided by banks has become more easy and convenient. the Bank has succeeded in leveraging its market position.

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' basis. Quicker settlement cycles: Cuts across inter-bank and clearing house settlement issues Wider Boundaries: No geographical limitations within India. Settlement in 'real time' means payment transaction is not subjected to any waiting period. This is the fastest possible money transfer system through banking channel.HDFC Banking Technology The various types of technologies that are used in HDFC Bank include:  Real Time Gross Settlement(RTGS)  Electronic Fund Transfer (EFT)  Electronic Clearing Services (ECS)  Corporate Internet Banking  Mobile Banking  Phone Banking  Automated Teller Machine(ATM)  Credit Cards REAL TIME GROSS SETTLEMENT(RTGS): Real Time Gross Settlement is an inter-bank funds transfer system. 6 . Benefits of RTGS: Speed: The beneficiary branches are expected to receive the funds in real time. real time).e. where funds are transferred as and when the transactions are triggered (i. The acronym 'RTGS' stands for 'Real Time Gross Settlement'. soon after the funds are transferred by the remitting bank. as long as it is a participating bank in the RBI s RTGS system.

y Electronic bill payment: This is done through online banking and it could be delivered by EFT or a paper cheque. the transaction takes place with the customer s permission. 7 . y Direct deposit payroll payments: In this payments are made by business establishments to its employees probably through a payroll services company.) Alternatively it could take place when the card is not present.initiated transactions: In this a cardholder makes use of a payment card like a credit or a debit card. which covers cards used for mail order. y y y Transactions involving stored value of electronic money. This could take place at an ATM (Automated Teller Machine) or POS (Point of Sale. Wire transfer through an international banking network. Electronic Benefit Transfer which allows state governments to provide financial and material benefits to authorized recipients using a plastic debit card. y Direct debit payments: Here payments are made by the customer to a business establishment. The term is used for a number of different concepts y Cardholder. it generally charges a high fee. telephone order and internet purchases.HDFC Banking Technology  ELECTRONIC FUNDS TRANSFER (EFT): Electronic fund transfer is a method of payment where the money transfer between financial institutions takes place electronically. Card Based EFT: A card based EFT could be initiated when a payment card like a credit or a debit card is used. possibly in a private currency.

Enquiry. Inter account transfer.This is a transaction which is for enquiring only. 3. 11.This is transferring the money to a third party account. Sale. It should be kept in mind that the transactions types offered are different on each terminal. Refund.Here a cardholder uses a device (typically POS or ATM) to add funds (top-up) to their prepaid mobile phone. Withdrawal. 4. 8. Thus the transactions offered by an ATM would be different from those offered by a POS terminal. 5. E top up.HDFC Banking Technology EFT Transaction Types: The different transaction types include 1.Here the cardholder pays for the purchase or service.Here a cardholder deposits money in his own account usually at an ATM. Here no financial transaction takes place. 10. 7. Deposit. like it could be for a balance enquiry or available funds enquiry or linked accounts enquiry or request for a statement of recent transactions on the account.Here a cardholder withdraws money from his account while making a purchase.Here a number of non financial transactions which are covered. 6.Here a trader refunds an earlier payment made by a cardholder. The term Cash advance could also be used instead of withdrawal especially when the funds are advanced by a merchant rather than at an ATM. Payment.Here the cardholder withdraws money from his account like from an ATM.Here a cardholder uses a device such as an ATM to get details regarding the recent transactions of his account. 8 . Mini statement. Cashback. 2. Administrative. A typical example would be like changing the PIN.Here transferring of funds between linked accounts belonging to the same cardholder takes place. 9.

velocity checks (limiting the number of offline transactions allowed by a cardholder) and random online authorisation.HDFC Banking Technology EFT Authorization For a smooth EFT transaction. It could also be done by checking the card holder s PIN number online. EMV cards are smartcard based payment cards in which the smartcard technology allows a number of improved verification procedures. Anytime anywhere banking. When a card is used at a merchant or ATM. This limit is calculated on the risk of authorizing a transaction offline and hence is different for each merchant and card type. Minimum or no paperwork involved. known as floor limits. 9 . communication between a number of parties is required. After this it is routed to the issuer where the cardholder's account is held. Fast and easy to use. Other information used for verification could be requested from the cardholder (like the card holder s address) or it could be something which is not visible to the cardholder (like the magnetic stripe data). Offline transactions may be subject to other security checks such as checking the card number against a 'hotcard' (stolen card) list. A transaction could be authorized offline by any of the entities through a stand-in agreement. A stand-in agreement could be used when a communication link is not available or it could be done simply to save communication cost or time. the transaction is first routed to an acquirer. This is done via a number of networks. This can be done by the merchant who could manually check the card holder s signature. No need to go to the bank and form queues. EFT: Benefits: The users can avail following benefits via EFT: y y y y y Considerable reduction in transaction time. Authentication in EFT Transactions EFT transactions are generally accompanied by means to confirm the card and the card holder. Stand-in is subject to the transaction amount being below agreed limits.

Local cheques can be sent to the local mail box which in turn credited into beneficiary s HDFC account in India with local currency cheque. y Traditional transfers of cheque.Money transfer made possible from Middle East through partner exchange houses of HDFC Bank. DD etc. This is an online money transfer mode. y Cheque Lock Box . y Telegraphic Transfer . UK and Singapore. the money can be credited into recipient s HDFC bank account across India.HDFC Banking Technology Various types of fund transfers are offered by HDFC Bank: y India Link .Money from any part of the world can be sent to beneficiary s HDFC Bank account with TT or wire transfer.This service is offered by HDFC Bank in US and UK. In 24 hrs money is credited in HDFC bank account of the beneficiary or Demand Drafts are issued within 3 days. are also available with HDFC bank. 10 . y Quick Remit .This facility available for sending money from US.

RBI provides a list of uncredited / returned items. ECS Credit/Debit facility can be availed at all available locations. The company will have to route the ECS through a Sponsor Bank. The data has to be provided to the Sponsor Bank at least 7 working days before the settlement date. Following broad steps are common for both ECS Credit and ECS Debit: The company needs to obtain a mandate from the beneficiary / payee which would provide all the details as stipulated by Reserve Bank of India. collection of taxes etc. ECS Credit can be utilised for payments like interest / dividend etc. The settlement date is the date on which the account of the beneficiary will be credited (ECS Credit) or payee's account will be debited (ECS Debit). The company is required to submit a E1 form to get a User code from RBI through the Sponsor Bank. RBI provides the final list of accounts debited and as per RBI regulations. salary. ECS Debit is normally used for collections which include payment of utility bills (electricity. telephone). interest. electricity. This can be used both for making payments like distribution of dividend. pension. etc or for loan installments of financial institutions/banks or regular investments of persons. RBI offers Electronic Clearing System (ECS) for faster collections (ECS Debit) and payments (ECS Credit). This is normally for bulk transfers from one account to many accounts or vice-versa.HDFC Banking Technology  ELECTRONIC CLEARING SERVICES: It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. The data is provided in separate files sorted city wise. The company then submits the data in soft form for effecting the ECS. water tax. no late rejects are accepted by RBI 11 . etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone. ECS Credit: Within 2 days of the settlement date. One user code is obtained for ECS at all RBI locations. ECS Debit: Within 1 day of the settlement date. or charges such as house tax.

ENet Gateway provides global banking information through its multiple branch connectivity and global connectivity interface. ENet can also be easily integrated with major third party security software without many programming changes. Account Information ENet offers complete Cash Management functions like cash reporting and payments information. RSA/TRIPLEDES Encryption. SSL. Drill down facilities for transactions and historical balances. ENet is developed using Object Oriented programming techniques and can be implemented in phases due to its modular structure. The ENet Gateway is highly configurable and scalable and can be easily enhanced to provide multiple delivery channel support to devices like PDA. Pagers. Fax. groups and companies) is well suited to today's corporate vision of managing global businesses.HDFC Banking Technology  CORPORATE INTERNET BANKING(ENet): ENet allows multi-branch connectivity and can integrate with heterogeneous core back-end systems across branches in India . Customisable User Interface The ENet Interface is easily customisable. 12 . Some of the key security features include provision on pre-approved beneficiaries. Smart Card and ActivCard security. This integration provides a seamless access point for clients. Security ENet offers 12 levels of application and system security. and Phones. ENet 's 3-level hierarchical design (domains. This module can be used to view and print the following: Statements of Account and Balances Consolidated Balances across multiple currency accounts. The major advantages of ENet are Secured Gateway Architecture ENet gateway architecture provides clients secured uniform access to the bank.

13 . positions of your forward bookings and rates. which can in turn be used by the client's host accounting systems. Payments ENet allows the client to make Domestic payments using one of the following payment options: Single Payment. Infrastructure requirements for the customer The customer needs a PC or notebook or network computer which can connect to the Internet and run an Internet Browser (Netscape Navigator 5. Oracle Financial and other ERP systems are currently built into ENet . Multiple Payments / Quick Payments. Foreign Exchange Transactions : ENetΠkeeps you updated of your foreign currency transactions. Bulk Payments. Such integration facilities for SAP.HDFC Banking Technology ENet delivers the client to export account information.x). Salary Payment uploads : Enables you to upload the salary payment instructions for your employees stationed countrywide.x or Internet Explorer 5. Upload offline created files.

anytime. The HDFC Netbanking uses good infrastructure and standard technologies to provide safe and secure service to its clients.HDFC Banking Technology HDFC Netbanking HDFC Netbanking is the internet banking service which provides you the information of your accounts and let you mange your account online from anywhere. It avoids the long queues and lots of paper work. Services offered through HDFC Netbanking Funds transfer between accounts Demand Draft request Bills payment Cheque Book order Account Statement and View Balances Online Fixed deposits Request to stop payment of a cheque Third Party transfer y y y y y y y y 14 . With HDFC bank s Netbanking you can manage your account by a click of a mouse.

the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip. credit card cash advances. On most modern ATMs.g. View Account Balances & Mini-statements. the money will be converted at a wholesale exchange rate. Cash Machine. Deposit Cash or Cheques Transfer Funds between accounts Refill your Prepaid Mobile . also known as automatic banking machine (ABM). you can withdraw cash and do much more at HDFC Bank ATM.: Withdrawing Japanese Yen from a bank account containing US Dollars). is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier. and check their account balances as well as purchase prepaid cellphone credit. that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Thus.393 ATMs present across India. Using an ATM. Change ATM PIN Order a Cheque Book / Account Statement HDFC Bank Credit Card Payment. or Cash point. The sophisticated. customers can access their bank accounts in order to make cash withdrawals. computerised network gives the flexibility of accessing one s account. Authentication is provided by the customer entering a personal identification number (PIN). ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well. human clerk or bank teller. FEATURES AND BENEFITS: y y y y y y y y y y y 24-hour access to Cash Personalised Cash Withdrawals . Pay your Utility Bills Cheque Status Enquiry 15 .HDFC Banking Technology  ATM: An automated teller machine (ATM). If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e. With over 4.

HDFC Bank Mobile Banking is also available on ngpay wherein besides the above mentioned non financial transactions. Customers can access their account balance.HDFC Banking Technology  MOBILE BANKING: Now one can access their bank account and conduct a host of banking transactions through their mobile. with HDFC s unique Mobile Banking service . 16 . Using HDFC Mobile Banking service. mini statement. account statement etc using based SMS service. One can check their account level information such as balance details. customers can also perform funds transfers from their HDFC Bank account using the mobile phone. cheque status as well as carry out financial transactions such as Funds Transfer using HDFC Bank Mobile Banking service. one can avail of a host of features at their finger tips: y y y y y y y y y Perform funds transfers Get balance details Obtain last 3 transaction details Request a cheque book Stop a cheque payment Enquire cheque status Request an account statement Get Fixed Deposit details Request for I-PIN generation How does it work? One can access HDFC Bank Mobile Banking service using SMS on your mobile phone. mini statement.

Client Master list details. 24 hours a day. request for an interest certificate and repayment schedule. logging complaints.Just call Phone Banking and get your Cheque Book or latest Account Statement delivered at your doorstep. Loan Related queries . Transaction details.Customers can use Phone Banking to check on the status of cheques issued or deposited from anywhere in India. enquire about loan account. Stop Payment One can stop payment of a single cheque or a series of cheques. select preferred language and dial 4 to speak to HDFC Phone Banker. etc. ISIN Number of a scrip. For all transactions that cannot be completed on the IVR such as reporting loss of cards. depending on the type of transaction. requests & queries. Charges for the account and others. Order a Cheque Book / Account Statement .HDFC Banking Technology  PHONEBANKING: Phone Banking services are a combination of IVR and Agent offering. Following services are available via PhoneBanking: Check account balance Customers can second details of their Savings or Current Accounts and Fixed Deposits. One just has to call Phone Banking in their city. status of Depository Slips. Phone Banker-assisted services are available. One has to 17 . Enquire on the cheque status . Demat Related Queries . One can also get the details of the last 5 transactions on your account.Get details of Account holding. or have a mini statement of last 15 transactions faxed across to you.Get details of the outstanding loan amount.

etc . one can call any PhoneBanking number to hotlist / block the card(s). Both accounts must be linked to their Customer ID. Learn about all other HDFC products .etc. Report loss of ATM / Debit / Prepaid Card . Enquire about latest Interest / Exchange rates .Pay cellular.Call PhoneBanking and get a Demand Draft / Manager's Cheque delivered to your doorstep.If ATM / Debit / Prepaid Card is lost.HDFC Banking Technology call Phone Banking in their city. electricity bills through Phone Banking using BillPay. Pay your bills .Customers can also transfer money from one of the accounts to another. select preferred language & dial 5 to speak to HDFC Phone Banker. a comprehensive bill payments solution. by simply authorizing a transfer of funds from their Savings Account.Get latest Interest rates on Deposits and Foreign Exchange rates by talking to our PhoneBanker.Call PhoneBanking in order to regenerate ATM / Debit card PIN / Net Banking IPIN.Get details on HDFC Bank products & services by talking to the PhoneBanker. Transfer Funds between accounts*# . 18 . Request a Demand Draft / Manager's Cheque #** .One has to talk to HDFC Phone Banker to open a Fixed Deposit over the phone. Re-generation requests for ATM / Debit card PIN / NetBanking IPIN. One can transfer amounts upto Rs 1 Lac in a single day. telephone. Open a Fixed deposit *#.

The bank uses SAN solutions from Hitachi Data Systems. The bank's earliest server was a Sun Ultra 170. 4500. The set-up supported about 10 branches initially. On the corporate side HDFC Bank started with MicroBanker and then moved to Flexcube in 2002. Since then the bank has been running applications on a Sun platform. over time it moved to Sun Ultra 3500. The software then used was Micro Banker from i-flex Solutions (then called CITIL). With an expansion in the number of branches the bank felt the need to consider Unix/RISC boxes rather than an Intel/SCO Unix platform.HDFC Banking Technology Servers: The bank started with applications on SCO-Unix boxes from Compaq almost eight years back. and then Sun E10 K. The bank did not face any serious migration issues as they use upgraded products or new products usually from the same vendors. number of branches and the number of users the hardware platform has also been upgraded. which operates on a Compaq Alpha box-GS160. 19 . The vendors have programs that enable the migration or upgrades. On the retail side the bank uses Finware from i-flex solutions. They use Flexcube UBS. and selected the Sun platform. This database was also on DAS and was moved to SAN over last year (December 2002). Now the applications run on Sun's Star Fire 15K Server. With the growth in transaction volumes. Till recent times the database was operating on a direct attached storage (DAS).. and from 1st April 2003 the bank switched to storage attached network (SAN). Banking applications The bank uses separate software for corporate and retail banking as there was no single package that met both their business requirements.

N. The data at the main center is replicated in real-time on-line at the Chennai site. and as it is not necessary to store the data on-line the bank uses tapes for off-line storage. This calls for huge investments as all areas like backup. Disaster Recovery setup HDFC Bank s approach is to protect their data first as the basis for a business continuity plan. With an increase in data volume.HDFC Banking Technology Storage The bank currently deploys SAN but feels they will need to consider NAS sometime in the future. Ram the bank's storage requirement is growing at a rate of four to five percent every month. the bank and the customer a feeling of security. and bulk purchases would be economical. If some disaster was to occur. The bank anticipates storage costs to come down. The bank has to store data for seven years as per the RBI guidelines. According to C. The data is stored on the servers at the DR site and the database is constantly replenished. the capacity of the hardware also needs to be updated. disaster recovery and others need to be addressed. 20 . The bank has a disaster recovery (DR) site at Chennai. This gives both. data (up to the last second) will be replicated. and be available.

With NetBanking customers can view their card account information and do much more just at the click of a button. Currently the following Credit Cards Netbanking features are available :One can View: Account Information Unbilled Transactions Credit Card Statement Download Card Statement (upto last 6 months) One can Request for: Autopay Register (Only for HDFC Bank account holders) Autopay Deregister Statement on E-Mail Credit Card ATM PIN Register New Card Deregister Card Credit Card Payment (Only for HDFC Bank account holders) This service is offered completely free and customers are assured of complete privacy during the use of NetBanking facility. Now using HDFC Bank Credit Card has become more convenient and time saving.HDFC Banking Technology  CREDIT CARDS ONLINE: HDFC Bank NetBanking service is now available for Credit Cards also. 21 . One can now access their Credit Card account from home or office or even while traveling.

hardware. People have lesser time to spend on their banking activities and would like to avail the banking services through other channels. 30 percent branch. "But unfortunately a very small percentage of the customers out there use the Internet. Typically 55 percent of the transactions are on the ATM. 8 percent on telephone and 7 percent Internet. In a competitive market where the services offered command market share. is all documented to have standardized branches across the country. Earlier it took us around 14-15 days to open a new branch after the physical set-up was ready. wherein all preferred vendors are called and a base price is quoted according to which the vendors quote their prices. Bala. This is due to factors like low PC penetration. HDFC Bank explained the branch set-up procedure.40. An average transaction at the branch costs around Rs. software. and penetration of Internet itself is low. By offering different channels even the banks have been successful in diverting their operations from a branch to other channels. physical set-up of the branch.R. "We have to reach to all areas of the country and wherever there is an opportunity we have to identify it." Rolling out new branches S. connect and reach our customers. but now it takes just five days to set up a branch.R. The bank follows a standard procedure and the entire process is well streamlined. banks are constantly vying for customers.HDFC Banking Technology Banking through multi-channels Today banking is not limited to a branch.100. Banking has become a process of choice and convenience. The result of which has been a cut in the cost per transaction at the branch. and on the Internet it's around Rs. Balasubramanian." said S. connectivity. at an ATM it is about Rs. 22 . The bank follows the reverse auction system. 20. From the selection of the location. He further explained that they have some regular vendors for purchases. the infrastructure requirements. A large number of the bank s customers use ATMs. VP-IT. The entire process is so well documented and streamlined that it is easy to roll out a branch.

railway tickets. People will want to process more transactions on the Internet. (HDFC). redeem their mutual fund. State Bank of India (SBI). This system will keep a check on defaulters in case there is a defaulter with one bank. (TU). but the Internet and mobile will be very active. the chances of that person getting into another bank are reduced. (DB) and Trans Union International Inc. Over a period of time all banks are expected to become members and share data with CIBIL. There will be more activity in terms of applications and services on the mobile. 23 . buy cinema tickets. buy insurance policies. It is a joint venture between Housing Development Finance Corporation Ltd. A similar kind of credit bureau is being setup in India and it will be called CIBIL (Credit Information Bureau of India limited). then go to another bank for a new account. Dun & Bradstreet Information Services India Pvt. Ltd. and defraud them too.HDFC Banking Technology The bank follows a similar procedure to roll out ATM's. every bank is vulnerable to fraud. Thus this bureau plays an important role and all the banks contribute data to it. Integration will be the next real big thing. which enables them to screen their new and existing customers and keep a tab on defaulters. The ATM will still serve as a cash dispensing medium. and numerous similar transactions through the bank. Geography will not be an inhibitor any more as everything is executable on the Net. As a customer one will want a one-stop shop that will take care of all their needs. Future of banking and technology: The future is integration as people will have less time for banking. If this data is not exchanged. someone could defraud a particular bank. For instance people will want to buy their mutual funds. renew policies. Interesting development: Some countries have a credit bureau that collects information from all banks in the country. For example. It is mandatory for all financial institutions to give data to this bureau.

HDFC Banking Technology CONCLUSION: In the coming years HDFC Bank plans to deploy connections. with built-in redundancy in the network. and in remote areas it is difficult to set up the required infrastructure. The bank's servers have also undergone phases of development inline with the bank's expansion plans. The bank has tested CDMA and GSM solutions especially for ATMs as they consume very small bandwidths. Madras could be connected to Bangalore and Kolkata. Therefore. then Kolkata will use the Madras link to connect to the Chandivili data center. 24 . For example. The bank is also considering alternate connectivity solutions as VSATs are relatively more expensive. if the Kolkata-Chandivili link fails. with all three of them being connected to Chandivili.

htm y http://www.com/wholesale/corporates/large_corporates/value_added_services/cash_ management_services/cash_management_services_ecs.scribd.htm y http://en.htm y http://www.hdfcbank.hdfcbank.hdfcbank.org/wiki/HDFC_Bank 25 .wikipedia.htm y http://www.hdfcbank.com/doc/4374980/PROJECT-ON-HDFC-BANK y http://www.htm y http://www.com/personal/accounts/demat_faqs_aoo.com/personal/access/phonebanking/phonebanking.hdfcbank.hdfcbank.htm y http://www.com/personal/access/ccnb/ccnb.com/personal/payments/RTGS/rtgs.HDFC Banking Technology BIBLIOGRAPHY: y http://www.htm y http://www.com/wholesale/sme/non_funded_services/cash_management_services/cas h_management_services_collection.com/personal/access/netbanking/netbanking_register.hdfcbank.

Done by: Yashvi Chitalia (10) Prachi Mehta(36) 26 .HDFC Banking Technology THANKING YOU.

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