Banking theory law and practice ppt
- 2. CORE BANKING MEANING Core banking solution refers to networking of all branches of a bank which enables a customer to operate their accounts from anywhere. Before introduction of this system a customer could withdraw/deposit money only in the amount he had opened in a particular branch of a bank and from nowhere else, e.g., a person who had an account with the Connaught place Branch of a bank could operate it only from that branch. But with the CBS system a customer is not hampered by any geographical limitation and can operate from any branch of his bank whether local or national. Though there is no limitation on the deposits which can be made but usually a maximum limit of Rs 50,000 is imposed on withdrawals which can be made from any other branch of the bank.
- 3. INTERNET BANKING Internet banking and online banking is an outgrowth of PC banking. PC banking enables Customers to execute bank transactions from their personal computer via a modem through financial software of the bank. Internet banking has become a strategic necessity for most of the banking transactions. Internet banking is the ability to use one‘s personal computer to communicate with one‘s bank. It is being used as a distribution channel to build up customer contracts in a systematic way in order to inform counsel sell product and services. ADVANTAGES Internet banking provides Anywhere and anytime banking as services are provided round the clock Worldwide connectivity as it transcends geographical boundaries Easy access to recent and historical data Direct customer control of international movement of funds Greater processing speed and accuracy
- 4. ONLINE BANKING Online banking allows a user to execute financial transactions via the internet. Online banking is also known as "internet banking" or "web banking." An online bank offers customers just about every service traditionally available through a local branch, including deposits, which is done online or through the mail, and online bill payment. .
- 5. Convenience is a major advantage of online banking. Basic banking transactions such as paying bills and transferring funds between accounts can easily be performed at times convenient to consumers. In effect, consumers can perform banking transactions 24 hours-a day, seven-days a week. Online banking is fast and efficient. Funds can be transferred between accounts almost instantly, especially if the two accounts are held at the same banking institution. Banking accounts can be monitored more closely thanks to online banking. This allows consumers to keep their accounts safe. Around-the-clock access to banking information provides early detection of fraudulent activity that has the potential to cause financial or damage loss. Online banking allows for the opening and closing of fixed deposit and recurring deposit accounts that typically offer higher rates of interest
- 6. An offline transaction, also known as a signature debit transaction, is a payment method that uses a debit card Today, business moves faster, and most commercial activities are dependent on banks. The need, therefore, is being felt for continuous availability of operations. Uninterrupted banking services are absolutely necessary for customer satisfaction and brand protection. Interruptions in business can occur anywhere, anytime, due to any of the following reasons: Natural Calamities, like earth quakes, tsunamis etc. Terrorist attacks , Power failures Loss of data-connectivity Whenever, there is interruption in connectivity, it requires some time to get it restored. During this period of dis-connectivity bank‘s are required to provide some essential services to its customers. Off-line data capturing ensures uninterrupted basic customer services
- 7. It is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
- 8. It is a banking establishment to manage customer data. Computerized banking system is for creating customer account of whole world. Also known as computerized banking management system (CBMS), customer account records management, customer transaction control or customer data report‘s system Computerized Banking System means how to manage the database of customers that how the customers are merged in different fields. In this project we admit the new registration of customer. We can update customer‘s records. We can retrieve customer‘s data such as their balance, withdrawals, deposits, modifying etc. In this project we can delete customer‘s records. This project is connected through data base access.
- 9. NEFT is a system similar to RTGS with certain differences. RTGS handles big ticket transactions, whereas NEFT handles smaller size transactions. Most branches are using this facility to transfer funds in an efficient manner. Once the applicant for the transfer of funds furnishes full and correct details (correct account details means correct name of the beneficiary, the correct account number, the branch and bank of the beneficiary, and the correct IFS code, etc.) funds can be transferred to the beneficiary‘s account by the remitting bank. Transfer of funds through NEFT is safe, quick.
- 10. AUTOMATED TELLER MACHINE (ATM) An automated teller machine or automatic teller machine (ATM) is computerized telecommunications device that provides a financial institution‘s customers a secure method of performing financial transactions in a public space without a human clerk or bank teller. An earlier version of an ATM was developed in 1939 in York, by the than city bank of New York, but removed only after 6 months of installation due to the lack of customer acceptance. This status quo was maintained for nearly 25 years till Barclays bank of UK installed an ATM in 1967 in London. ATMs first came into wide use during the early eighties to mideighties in the west and picked up later in the 1990s in india.
- 11. ATMs can be interior (i.e., located in the branch premises) or exterior (located anywhere outside the branch premises, e.g. at railway stations, airports, shopping malls, etc.,) banks need not obtain permission of the RBI for installation of ATMs at branches and extension counters for which they hold licences issued by the reserve bank. They can also install offsite ATMs without RBI approval. However, they should obtain a licence from the regional office Manonmaniam Sundaranar University, Directorate of Distance & Continuing Education, Tirunelveli Page 69 of DBOD (department of banking operations and development) of RBI, before operational zing the ATM, so as to be in conformity with section 23 of the banking regulation act.
- 12. DEBIT CARDS Like the credit card a debit card too is a payment mechanism which allows the holder to make purchase without making any immediate cash payment. It appears that plastic money seems to be the preferred mode of payment for more and more and more people. While the use of credit cards and debit cards has increased manifold both in terms of value and volume of transactions yet the growth in use of debit cards has been at a much faster rate than in the case of credit cards.
- 13. SMART CARDS as the name suggests this plastic card is smarter than the credit card and debit card. A smart card is a magnetic strip card that is embedded with a computer microchip and designed with a far greater capacity. The microchip provides the smart card intelligence and memory. It is small enough to be conveniently carried around, and has manifold application. In fact, it is almost like carrying a portable computer in one‘s pocket.
- 14. There are various ways of making payment through the banking system. These include cheques, direct debits, bank drafts, electronic transfer, international money orders, letters of credit etc. since, the beginning of 1980s, the banks introduced a new facility for making payments, i.e., the credit cart. The use of credit card is essentially a method of postponing payment. When the customer makes a purchase, the actual payment is made later when he issues a cheque for the payment on his bank. These cards are made of plastic, he nce they are referred to plastic money plastic money refers to substitution of currency at the time when a payment is taking place by using a card
- 15. DEFINITION OF 'E-CASH' An Internet-based system allows funds to be transferred anonymously. Similar to credit cards, eCash was free to users, while sellers paid a fee. Because of security concerns, eCash remains more of an idea and less of an actual payment system.
- 16. REAL TIME GROSS SETTLEMENT (RTGS) One of the important IT revolutions in Indian Banking Scenario was the implementation of the Real Time Gross Settlement (RTGS) system by the Reserve Bank of India. With the changing scenario from manual environment to electronic mode, banks started to use faster, safer and efficient methods to transfer funds. In this regard, two important and popular electronic funds transfer systems are Real Time Gross System (RTGS) and National Electronic Funds Transfer System (NEFT)
- 17. RTGS is an electronic payment system, where payment instructions are processed on a ‗continuous‘ or ‗REALTIME‘ basis and settled on a ‗GROSS‘ or ‗individual‘ basis without netting the debits against credits. In India, RBI introduced this system and the system is functioning well. The payments so effected are ‗final‘ and ‗irrevocable‘. The settlement is done in the books of the central bank (RBI). The RTGS system allows transfer of funds across banks on a real time (immediate) basis. Each participant bank needs to open a dedicated settlement account for putting through its RTGS transactions. Not only does it allow transfer of funds, it also reduces the credit risk. Both customers and banks can transfer funds monies the same day at regular intervals within the banking hours.
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