ARCHITECTURE OF CORE BANKING SYSTEM v Functional Architecture — CBS is modular and is generally implemented for all functions of CORE banking as decided by bank. In short for all the functions of bank there are modules which will keep it’s data and these modules are linked to each other to the extent required Types of Server in CBS Application Server Automated Teller Machine Channel Server Internet Banking Channel Server Internet Banking Application Server Web Server Anti-virus Software Server Proxy Server Sub-Policies of Information Security Information Security Policies , Procedures & Practices User Security Administration Operating System Security Application Security Database Security Network Security Physical Security Technological Architecture of CBS Client (ATM,POS, TV, Phone, BROWSER) Channel Servers (Web, ATM Switch , Branch etc) Application Servers Host Database Servers Technology Components of CBS Database Environment Application Environment Web Environment Connectivity to internet Data center & Disaster recovery center Network solution to provide complete connectivity Enterprise security architecture Branch & delivery channel environment Online transaction monitoring for fraud risk managementCORE Banking Systems v Major Products/ Services | Components of CORE Banking Working of CBS provided by Banks Opening new accounts = Planning Acceptance of Deposits Managing customer accounts Canna acences Processing cash deposits & = Approval Credit Card Sarees ™ Selection Debit Card Processing payments & cheques Collections (Cheques , Drafts, Establishing criteria for minimum = Design & Develop Pay orders, Div, Tax refundetc) | balances, interest rates, no of or Procure withdrawals Clearing (Cheques , ECS Debit or Credit) Making & Servicing loans = Testing Establishing interest rates Letter of credit & Guarantees Remittances (0D, TT, MT) Calculating Interest = Implementation Other Banking Services (Retail, CRM = Maintenance HINT, Risk Management, Maintaining records for all Specialized Services) tra nsacOns = support = Updation Key Aspects inbuilt into Features of CBS i = Audit CBS Architecture (CRI) J / coe) Centralised Operations Customer Centric Online Real-time processing 4 Gateways of Regulatory Compliance Transactions are posted Application Software Resource Optimization immediately apecniea f ‘onfiguration Information flow Databases are updated ce simultaneously = Masters Remote Interaction with Customer = Transactions Anytime , Anywhere access to = Reports customers & vendors System Based Controls Reliance on Transaction Balancing Centralised Interest Calculation for all Account Types Automatic Processing of Standing Instructions Daily , Half-yearly & Annual closing FOR MORE DETAILS , PLEASE VISIT WWW .IMRUGESHMADLANI.COMSection 43 - Penalty & Compensation for damage to Computer , Computer System — If we do anything to computer , computer system or network without the permission of owner or person in charge we are liable under section 43 but liable under Section 66 for up to 3 years or upto 5 lacs or both . Accesses or Secure Access Download Copies Introduce Virus or Computer Contaminant Damage or cause damage to Disrupt or causes disruption Denies or cause denial of access Assistance to any person Changes the services availed Destroy , delete or alter any information Diminish utility Steal Conceal or destroy Source Code Section 43 A- Compensation for Failure to Protect Data — It is responsibility of every Body Corporate to protect data of their client . It includes password , financial information , physical, physiological & mental health conditions , sexual orientation , medical records & biometric information . Section 65 — Tampering with Computer Source Documents - If we delete, alter or destroy the source code , we are liable under this section for up to 3 years or up to 2 lacs or both Section 66 — Computer Related Offences — All offences under section 43 are liable for up to 3 years or up to 5 lacs or both Section 66 B - Punishment for Dishonestly Receiving Stolen Computer Resource / Device - Buyer of Stolen device / resource is liable for up to 3 years or up to 1 lacs or both, but buyer proves he is innocent, then he is not liable Section 66 C — Punishment for Identity Theft — If we make use of electronic signature , password , or any other unique identity feature we are liable for up to 3 years & fine up to. 1 lacs or both Section 66 D - Punishment for Cheating by Using Personation by using Computer Resource — If we do any cheating using Computer / Computer resource we are liable for up to 3 years & fine up to 1 lacs Section 66 E - Punishment for Violation of Privacy — If we take images of private area of any person we are liable for up to 3 years or fine up to 1 lacs or both , but with consent itis allowed 3 Stages of Money Laundering Placement Layering Integration Under Section 12 of PMLA Act , 2002 Every Banking company , financial institution & intermediary is required to maintain record of transactions as prescribed by rules & furnish inform to director within time prescribed Such records are to be kept for period of 5 years from date of transaction Under Section 13, if they fail Director can impose penalty of minimum 10,000 and upto 1 lacs for each such failure Under Section 63, if any person fails to give information/ gives false information is liable min 500 and max 10,000 for each failure Under Section 70, the officers in charge and responsible are also liable to be proceeded and punished. If Company proves it did not know of offence , only employee is. liable , if employee proves co is involved both are liable FOR MORE DETAILS , PLEASE VISIT WWW/.IVIRUGESHMADLANI.COM|RISKS ASSOCIATED WITH CBS (C-OSM) Credit Risk Compliance Risk Operational Risk Strategic Risk Market Risk IT Risks IT Risks (MASI Ka Data) M- Maintaining response time M- User Identity Management A-Access Control A-Authentication procedure A-Authorization process S-Several software interfaces |-Incident Handling procedures Data- Ownership of Data / Process BACK END APPLICATIONS Back Office Data Warehouse Credit Card System ATM Switch FRONT END APPLICATIONS Mobile Banking Internet Banking Phone Banking Branch Banking WWW.MRUGESHMADLANI.COM