History of J&K Bank

Almost seventy years ago, the then Maharaja of the State of Jammu & Kashmir, Maharaja Hari Singh started thinking about setting up of State Bank of J&K with the sole purpose of overall development of his subjects. After prolonged deliberations and discussions, the assignment for establishment of “The Jammu & Kashmir Bank Limited” was given to the late Sir Sorabji N Pochkhanwala, the then Managing Director of the Central Bank of India. Mr. Pochkhanwala formulated a scheme on 24.09.1930, suggesting establishment of a bank with participation in capital by State and the public but under the control of State Government. Thus, was born the J&K Bank, which commenced its business from 4th July 1939 from its Registered Office, Residency Road, Srinagar, Kashmir. It was in the year 1971 that Jammu and Kashmir Bank was granted the status of a 'Scheduled Bank'. Five years later, it was declared as "A" Class Bank, by the Reserve Bank of India (RBI). As the years passed on, the bank started achieving more and more success. Today, it boasts of more than 560 branches across the country. Now listing some of the historical developments :• • • • • • • • • • • • • • • • • • Formulation of Board of Directors (1938) BOD’s on Oct 1st 1938 resolved and adopted the Article of Association Incorporated in 1938 as a limited company First meeting of BOD’s- 7th Jan 1939 Commencement of business on July 4th 1939 -R Road,Srinagar • First Manager: Mr. Sohan Lal Kothari • First Chairman:Major General Roy Bahadur Bishan Dass-Chief Minister First Safe Deposit vault at Residency Road –1940 Few more branches opened in the same yearUdhampur,Mirpur,Anantnag,Baramullah and Muzzaffarabad Appointment of Staff on professional basis-1945 State Minister to be on the BOD’s-1946 Introduction of Inspection-1946 First outside branch –Amritsar Partition of India-1947 and its aftermath • Loss of two branches-Mirpur & Muzzarabad • Filling/Settling of Claims by the depositors Bank at the verge of collapse Assistance from the Government-Nearly 6 Lakhs-1949 Recovery of bad debts Extension of Central Laws to the State of J & K • Bank defined as govt: company-Indian Companies Act 1956 • Financial Year changed –Banking companies Act 1949 Real growth started from 1969-the era of Nationalization Social Control on banks • First whole time Chairman –Mr.A.A.Fazili, Nov.1970-June 1974 • Lending Policy changed/reoriented • Priority Sector advances Total No of Branches-26 as on December 1970 1973-Permission granted to establish currency chest at R.Road,Sgr.

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Total No of Branches-64 as on 1973 1976-Sponsored first Regional Rural Bank • Jammu Rural Bank 1976-Responsibility of payment of pension to Civil Pensioners of the State 1976-Bank declared as A Class bank 1979-Total No of Branches rose to 190 1980-Total No of Branches rose to 212 1981-Permission granted by RBI to deal in the Foreign Exchange business 1981-Sponsored another Regional Rural Bank • Kamraz Rural Bank 1980- Lead Bank responsibility Convener of SLBC 1984-Customer Service Cell 1987-Introduction of MICR technology 1989-Historic period Golden Jubilee • Creation of J&K Bank Golden Jubilee Development and Social Services Trust • Organizing Credit camps Turmoil in the State 1991-1992-Financial Sector Reforms Initiatives of introducing New Technology Maiden Public Issue

The arduous but illustrious journey that spans over almost seven decades has been a real story of commitment and enterprise. Today J&K Bank is one of the very few banks that combine the best of public ownership; stability and safety with the best of private functioning; growth and efficiency. Having an almost exclusive geographical area of operations and supported by a dedicated community, the bank enjoys an almost monopolistic postion in the state and a sizeable presence in the rest of country. All these aspects accord unparalleled financial and non-financial advantages to the bank making it one of the best and most profitable old generation private sector banks. Being the flagship Institution of the state the bank aspires to lead by example by delivering outstanding performance in growth and profitability, catalyse growth in the state economy and create enabling conditions for the financial empowerment of the people of J&K. Accordingly the Vision of J&K Bank is to engender and catalyse the economic transformation of Jammu and Kashmir and capitalize from the growth induced financial prosperity. The bank’s overriding mission is to use its core competence to serve and empower the people in general and entrepreneurs in particular. The bank identifies empowerment as a process of enhancing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes. The bank is set to demonstrate that people with lesser means can be reached and reached profitably. J&K Bank is going from strength to strength as it witnesses tremendous revenue growth opportunities in all its businesses. In recognition of its excellent customer service, fair business practices, total operational efficiency, overall performance, etc. the bank has been felicitated so many times during the last few years.

Centralized Systems
A modern, general-purpose computer system consists of one to a few CPUs & a number of device controllers that are connected through a common bus that provides access to shared memory. The CPUs have local cache memories that store local copies of parts of the memory, to speed up access to data. Each device controller is in charge of a specific type of device (for example, a disk drive, an audio device, or a video display). The CPUs & the device controllers can execute concurrently, competing for memory access. Cache memory reduces the contention for memory access, since it reduces the number of times that the CPU needs to access shared memory. The main difference between centralized & distributed databases is that the distributed databases are typically geographically separated, are separately administered, & have slower interconnection. Also in distributed databases we differentiate between local & global transactions. A local transaction is one that accesses data only from sites where the transaction originated. A global transaction, on the other hand, is one that either accesses data in a site different from the one at which the transaction was initiated, or accessed data in several different sites.

Distributed database system
Need for distributed database Distributed database made accurate database without any redundancy possible. Updating records is easier and faster in distributed database which usually consists of a single database which is remotely updated and controlled. Distributed database consists of datacenter which maintains the overall record for that particular organization.

Data Center

A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. J&k banks data center is in Gurgaon and is wholly managed by JKB IT team (site management, services management, application management, systems management) and hosts all core application like Finacle (Core Banking Solution) ATM switch (IST), Bancs Connect E banking systems, OFSA Intranet, RTGS (DC interface), Mail messaging Test server (Finacle and ATM) Network core devices, CCM (for VoIP), ACS (for access control) and network monitoring and security devices. One of the main applications of data center is that they act as disaster recovery sites, i.e. a center where information is stored is some natural climaties etc occure. J&k ‘s disaster recovery site is located at DAKC (Dhirubhai Ambani Knowledge City), Mumbai. The site hosts fall back devices for J&K’s finacle and ATM systems. The replication is done with ODG (on the database level). J&K has a 10 Mbps replication link between DC & DR.


Internet banking as the name suggests is the use of internet technology to allow customers to carry out various transactions and other queries about their accounts on a secure basis. The precursor for the modern online banking services were the distance banking services over electronic media from the early '80s. The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services[1] using the videotex system. In J&K Bank online banking is available only to those branches which are centralized or use finnacle instead of B2K. Online banking is divided into two branches: retail and corporate. Retail is meant for individual customers whereas corporate is used by various organisations. It is further divided into main corporate and sub-corporate. Services provided by the J&K Bank online banking system can be classified under two levels: inquiry level and transaction level. The bank provides the customer with username (having customer ID) and password(s).Inquiry level needs a single password called signin password for access to ones account. Whereas transaction level requires two passwords, one for signing-in and other password for confirming transactions – transaction password. Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking. The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (this is called twofactor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed. The site of J&K Bank also offers ant-phishing mechanism. Phishing” is a form of Internet fraud that aims to steal valuable information regarding credit cards, social security numbers, user IDs and passwords. Instead of typing the usename and password, it provides a virtual keyboard for entering the information which prevents phishing. A transaction level account can be used by the customer to know about the balance in his account and the transactions made. Transaction level account, as the name indicates, can be used for online transactions also. Normally deposit to an account is allowed in this type of account but for loans or advances another type of account called cash-credit account is used. Transfer to an account can be either self linked transfer i.e, transfer to other account of the same user in some other branch of J&K Bank which are all linked together and thirdparty transfer involving other account holders e.g paying the bills of LIC,PDD,BSNL etc. Transaction level account can also be used for cheque book issue request which saves lot of time for the customer besides relieving him of the burden of standing in the queue otherwise. This type of account can also be used for cheque stop request in the event of cheque loss.

Transfer to different accounts of J&K Bank is almost instantaneous .Transfer can also be made to an account of some other bank but it takes some time may be hour or so because of involvement of inter-bank server. This service is however not yet available in Kashmir yet. Inter-banking transactions can be made using two mechanisms: RTGS System The acronym “RTGS” stands for 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” basis. This is the fastest possible money transfer system through the banking channel. “Real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. NEFT System National Electronics Funds Transfer System (NEFT) is an electronic fund transfer mode that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours. The RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for NEFT transactions. Time taken for effecting funds transfer from one account to another under RTGS Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message. If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours.

Intranet Site, Internet in J&K bank

Need of Intranet Site J&K bank ATM Network has grown over the years exponentially Different kinds of information are required at Branches and controlling offices to effectively monitor the uptime of the ATM delivery channel.Empowerment of branches to have access to the information regarding the transaction at ATM’s / POS terminals, PBF, Anywhere and ATM settings online.

Intranet Site - Design Features The JKB Intranet has been designed as a Web Application of typical client-server architecture. On the client side the JKB Intranet Web Application requires only a web browser it is thus very light on the client side and all the data processing takes place at the server side. The Application requires a username and password to access and the users are categorized as General users and Administrators depending on the range of functions that can be carried out. Database logs are generated for all user sessions. Passwords can be maintained by the users.

Application features Viewing Card usage report of a particular card by providing the start and end dates and the card number details. Viewing Transaction report of a particular ATM terminal by providing the start and end dates. Viewing transactions of other bank card holders on JKB ATM terminals Viewing successful POS transactions of Cards of a particular branch office. Check Card Status :Provides Details of status of Cards for Lost / hot / expiry / Account No.  Fresh Card Request by Branches  Duplicate Card Request (Damaged, Lost, Expired)  Acknowledgement for Receipts of Cards  Repin & Release of ATM Card PIN  Get Card No from account No.  Marking of JKB card hot by providing details .  Report Generation  List of Branches on CBS Finacle with anywhere settings.

 List of Bancs2000 branches doing PBF (issuing cards).  List of Anywhere branches with Settings. Internet Banking      Available for both Retail and Corporate users. Statement of Accounts. Funds Transfer. One User Id for multiple Accounts. Facility Available in over 200 Branches

Procedure Customer needs to apply by filling and submitting the “Internet Banking Form” at the branch providing this facility Username, Signon & Transaction passwords are given to the Customer. Needs to change the password at the first login  Signon Password : Used to login into the website displaying the Account Details.

 Transaction Password : Used to Authorize any Transfer of Funds

Application software
Application softwares used by j&k bank are : B2k(Bancs 2000) and Structure of Applications finacle

Accessing B2K  iLink  DOS based  Windows based  Programmed Users-Automation of Tasks  osmgr  dbmgr  tbaadm  One user name & two passwords

Accesing finacle
Finacle is the universal banking solution offered by Infosys Technologies Limited (BSE: 500209, NASDAQ: INFY) , a multinational information technology services company headquartered in Bangalore, India. Finacle from Infosys helps banks by providing a holistic and integrated transformation approach, complete with solutions and services. This framework for multi-disciplinary change, enables banks to shift their strategic and operational priorities. Finacle universal banking solutions address the core banking, e-banking, Islamic banking, treasury, wealth management and CRM requirements of retail, corporate and universal banks worldwide.

Application Users- Groups DB OP GU IN CU System administrator System operator General User Inspection & Audit User Customer User

User Workclass 026 051 085 100 150 Banking Associate Special Assistant Manager DBA Branch Manager

Workflow of applications in finacle and bancs 2000 • B2K Menu Screens Finacle

• B2K

Form Screens Finacle

Components of Forms Screen Header Block Function Block Functions under Menu Options Add Copy Delete Inquire List Modify Undelete Verify X Cancel Data Block

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Working of Menu Options  Four-eyed Concept

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Access to Menu Options Accessing different pages in a Menu Option

Navigation Keys

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Field level help - F1 Display List- F2 Mail messaging is one of the corporate communication tools used by J&K bank Quit - F3 employees. It’s a convenient way for them to receive messages in the network Accept and outside it. Mail messaging facility is only for the bank employees and does - F4 Background menu - F5 others to create an account. Once you are a bank employee not allow users or only them Next block - F6 can you use this facility. Signature display - F9 Need for mail messaging: Commit - F10 Employees need to be in communication with their higher officers and with the Select - Shift-F4 different people. They can easily view from the summary of the email received Previous field - Ctrl-B email is important or not. Its is very easy to use and maintain. that whether the They Ctrl-F Clear field - can easily remove or view the mail. Lock keyboard - Ctrl-F8

Mail messaging

Features: • One of the important things about mail messaging as it being the corporate communication tool it is transparent in its nature i.e. it does not support blind copies. It also supports public folder options which is the most important feature for which its used. If an in charge officer has to inform employees about any thing he/she just sends it to the public folder and all the employees receive it. How ever to stop misuse constraints are setup with which empoloyees can broadcast only limited mail to the public folder.Public folders include those corporate with which a corporate needs to communicate. Another cool feature of mail messaging is that we do not have to maintain the contact book but its maintained by the organization. The employee we need to communicate with is already present in the contact book in it. It is because when a person becomes an employee of j&k bank he is assigned mail account by the organization according to his/her name so when we search for an employee in the address book it presents us with his/her mail account. An employee can put his/her profile in the out of office assistance mode in which he/she specifies her/his absence and gives mobile or other contact information to who so ever mail to him/her.

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