Core Banking
Core Banking
Core Banking
Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices. Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches. Core banking is all about knowing customers' needs. Provide them with the right products at the right time through the right channels 24 hours a day, 7 days a week using technology aspects like Internet, Mobile ATM.
The rapid advancement in Information and Communication Technology (ICT) has had a profound impact on the banking industry and the wider financial sector over the last two decades and it has now become a tool that facilitates banks organizational structures, business strategies, customer services and other related functions. The recent IT revolution has exerted far-reaching impacts on economies, in general, and the financial services industry, in particular. Within the financial services industry, the banking sector was one of the first to embrace rapid globalization and benefit significantly from IT development. The technological revolution in banking started in the 1950s, with the installation of the first automated bookkeeping machines at banks. This was well before the other industries became IT savvy. Automation in banking became widespread over the next few decades as bankers quickly realized that much of their labor-intensive information-handling processes could be automated with the use of computers. The first Automated Teller Machine (ATM) is reported to have been introduced in the USA in 1968, and it was only a cash dispenser. The advent of ATMs helped both to improve customer convenience and reduce costs, as before ATMs, withdrawing funds, accounts inquiries and transferring funds between accounts required face-to-face interaction between bank staff and customers.
1) Overall, technological innovation has brought about the speedy processing and transmission of information, easy marketing of banking products, enhancement of customer access and awareness, wider networking and, regional and global links on an unprecedented scale. IT development has thus changed the product range, product development, service channels and type of banking services, as well as the packaging of such services, with significant efficiencies not only in the banks, but also the ancillary and feeder services to banks. The financial services industry has thus become virtually dependent on IT development. Most banks make visible efforts to keep up with new systems and processes. 2) The development in ICT has enabled banks to provide more diversified and convenient financial services, even without adding physical branches. The present day ATMs are more sophisticated machines that can scan the customer and a bank teller, accept cash or cheques, facilitate customer application for loans and allow for face-to-face discussion with a service representative via video. 3) The development of Internet services, which is an extensive, low-cost and convenient financial network, has facilitated banking services to customers, anywhere and anytime. Along with Internet and Web-based services, a need for changing core banking architecture has emerged. The introduction of new core banking systems by some banks and their links with the improved telecommunication network has enabled banking transactions to be done on-line, in contrast to the batch-processing mode used earlier. The integration of e-trading with internet banking and banks websites is also a notable feature. These IT advancements have enabled banks to gradually replace manual work by automated procedures with online real time processing.
Core banking is all about knowing customers' needs. Provide them with the right products at the right time through the right channels 24 hours a day, 7 days a week. Core Banking Suite consists of components that can be installed independently and integrated into current banking environment. At the heart of the Core Banking Suite are comprehensive customer, product, and agreement management modules that provide a single and complete view of the financial institution's customers and their engagements with the institution. The Core Banking Suite also manages deposit and loan products. The application includes a world-leading cash management component, to be used by large corporate to perform cash pooling, sweeping etc in a cross border, multi-currency environment. Product management is possible through a configurable product composer. This gives the bank's business people the flexibility to assemble userdefinable banking products with flexible pricing structures and then quickly distribute them through any channel to their banking customers.
All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services are:
To make enquiries about the balance; debit or credit entries in the account. To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for credit into his account. To deposit cash into the account. To deposit cheques / cash into account of some other person who has account in a CBS branch. To get statement of account. To transfer funds from his account to some other account his own or of third party, provided both accounts are in CBS branches. To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount shall be online debited to his account. Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc. shall also continue to be available. Bank is in the process of launching Internet-banking facility shortly.
All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards
Business Benefits
Core banking solutions offers an unlimited palette of features for banks to design and deploy products for varying market segments. The product bundling capabilities of the solutions offers a wide range of possibilities for banks to create products with innovative features. The facilities provided for differential pricing, channel rules and customization empower banks to continuously innovate and extend their suite of products, across segments.
Agile Operations
The Service Oriented Architecture (SOA) enables the IT team at the bank to effect changes without touching the base code, ensuring lesser vendor dependency and faster adaptability to changing business conditions.
The CIF and CRM capabilities in core banking solutions offer a unified view of the customer across the entire solutions and across multiple backend applications, enabling the bank to view the customer from a completely informed angle. This empowers banks to effectively manage customer relationships and aggressively explore cross-sell opportunities.
Core banking solutions supports business events automation and process orchestration, thus eliminating manual tasks and reducing process time. The elimination of error and data redundancies also results in increased branch productivity. Straight Through Processing (STP) abilities enhance reduction in turnaround and processing time, increasing output and enabling speedy completion of tasks.
2) Operational Benefits A flexible, industry standard application from which your organisation can grow Multi banking and multi currency System and product administration and product development performed completely by bank business personnel Shorten time to market products Supports product differentiation Supports cross-selling Increases customer satisfaction and loyalty
3) Technical Benefits
24 hours a day, 7 days a week availability Real-time multi-channel access Distributed solution, i.e. n-tier architecture and co-operative processing Consistent and logically structured data model reflecting the information requirements of the banking business Integrated solution, i.e. data sharing and no duplication of information Parameter controlled
Business Challenges
In a multi-channel world, core banking systems are mission critical to banks that are required to operate 24 hours a day, 7 days a week. The costs of keeping legacy core banking systems operating are steep: Aging systems and infrastructures constantly need updates and renewal. Banks that delay updating core systems risk losing their competitive edge. There are a number of challenges involved in maintaining legacy core banking systems and in updating and renewing them: Banks need to improve and differentiate the customer banking experience to attract and retain customers more profitably, even though they are constrained by their existing systems' hard coded business logic. Disparate, disconnected, and outdated systems make it virtually impossible for banks to integrate customer and transactional information. Old, inflexible systems take too much time to upgrade, resulting in a significant lag time introducing new products to market. The pressure to reduce costs and improve efficiency is difficult to respond to without making fundamental changes to underlying legacy systems. The potentially significant cost of updating ageing core banking systems makes it difficult to present a strong business case to modernize legacy systems. The risk and complexity of implementing new core banking systems causes hesitation and uncertainty about where to begin.
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There are 5 ingredients that form part of the Core Banking system. These are the essential building blocks for the entire bank / institution. (1) General Ledger: The absolute Core is the General Ledger of the bank accordingly, the absolute core of the banking system is the General Ledger system, every single financial activity that happens at any location within entire bank has to be reflected in the General Ledger system that generates the financial statements for the entire bank which provides any entity to monitor the financial health of the bank. Throughout the world, almost all banks have all their financial activity reflected in GENERAL LEDGER every night and next morning the GENERAL LEDGER system provides the bank with enterprise wide balance sheet and trial balance report. In short for those who have successfully implemented Core Banking Systems, the concerned entities in the bank know the financial condition of the bank at the beginning of each business day. If one is looking at the financial statements of the whole bank the GENERAL LEDGER System must provide that. If one is in regional office, the GENERAL LEDGER System must provide the financial statements for the region. Each morning all these entities, at the respective workplaces, see these financial statements reflecting the condition as of close of business yesterday. In a Core Banking System, this is achieved by deploying a centralized GENERAL LEDGER System which provides for thousands of sub legers with. Level's start with individual branch GENERAL LEDGER rolled up to regional GENERAL LEDGER with further rollup of all regional G.L's to bank GENERAL LEDGER financial transactions from various sources throughout the bank update these subsidiary ledgers and the GENERAL LEDGER system then performs rollups to report at branch, region, zone, country wise head office and any other level that is required by the bank / financial institution. (2) Customer Information System (CIS):
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The next major ingredient of a Core Banking system is the Customer Information System or CIS. Accordingly in the CIS, a customer is identified by uniquely by his / her CIS number and all information related to that customer (name, address, phones, employment, credit history, relatives, family members, and demographic data) is stored along with this unique number. All this is stored in a centralized CIS system allowing the customer to visit any branch to do business with the bank. In addition, CIS stores Customer to account relationships. A single unique customer could have a current account a joint saving account with his wife a time deposit, a car loan and a house loan. The CIS links all these five account to this single unique customer I.D. whenever the customer visits any branch of the bank, all that he does is give his name (and / or address or phone or CIS number) and the CIS system shows the branch staff the information about this customer as well as all the accounts linked to this customer and the latest balance in each of these account. (3) Deposit System: The third major ingredient is the deposit system. The ability to process various types of deposits is a must. These include current, savings, time deposit and hundreds of variations in each of these. e.g. Simple current accounts, current accounts with overdraft, cash credit accounts, variable rate overdrafts, simple savings, multi-currency savings, time deposits, CDS, variable rate time deposit, recurring deposits, multi-currency, time deposits, and so on. This is required to handle the liability side of the bank / financial institution's business. Around the world banks do not open a new deposit account for a customer directly in the deposit system. When the customer wants to open a new deposit account, the branch staff to go the CIS screen verifies the customer details and opens the account. This way, the existing CIS data of the customer remains infect and the CIS information shows that this customer has now increased his relationship with the bank / financial institution. As a result banks who have implemented such systems do not need to have an inter branch reconciliation organization / system.
The fourth major ingredient is the loan system. This system handles the asset side of this business. In most banks / financial institutions around the world loans are separated by those to retail customer and those to commercial customers processing requirement of loans to corporate customers is different form retail customers and hence there are loan systems that cater to retail customers and those that cater to commercial or corporate customers. The loan process in a bank involves multiple stems. The loan appraisal and sanction step, the disbursement and monitoring step, the non-performance tracking step the recovery step and the closure. Owing to the fact that a multitude of entities and processes are involved in the appraisal and sanction step, most banks around the world separate the appraisal and sanction step and implement a system called a loan organization system. The other remaining steps of the loan process are handling by the loan system.
Typically these systems are confined to a specific business department within the bank. They are not Core because they do not affect all areas and entities of the bank. * Trade finance * Treasure * Credit Card * Mutual Funds * Stocks, Bonds * External System * Payment gateways * SWIFT * Shared ATM network * World Wide credit card networks, maestro, electron etc * World wide ATM networks plus, Cirrus etc and possibly other systems that the bank may want to deploy in specific departments.
New private sector banks like ICICI Bank and HDFC Bank were the early adopters; banks like Yes Bank have the advantage of starting off with new technology from the beginning. There also have been banks like Canara Bank, Syndicate Bank that have successfully implemented technology solutions.
Speed is of essence
In the case of technology adoption, banks, especially public sector banks, have to realize that speed is of the essence. They need to take the right decisions and that too in an efficient and effective manner to get the highest returns on technology investments. Delaying matters by adhering to time-consuming processes has a downsidetechnology-savvy clients move over to the new private sector or other tech oriented banks.
Change management
One of the elements banks tend to overlook in implementing core banking solutions is that it is a human resource issue rather than a plain technology issue. Merely making cosmetic changes in how people are deployed during the course of implementation will just create chaos and be detrimental in the long run. Banks need to take a holistic view to map and improve the basic processes through which they run their businesses including how productively they use their human resources. Technology is an enabler but each bank must constantly develop and refine their own strategy.
Future trends
Going ahead, risk managementsuch as the need to implement Basel II norms and data warehousing are areas where technology implementation will be concentrated. But none of this would have been possible without core banking and a centralized database. There is the impending opening up of the banking sector to enhanced foreign competition. Already, many foreign banks have started creating a base here and are waiting eagerly for an opening.
implement Core Banking Solutions (CBS). CBS is an automation of banks across multiple delivery channels. Under CBS banks are able to achieve a centralized processing mechanism and in turn provide an anytime anywhere service to their customers. However, core banking applications have a set of challenges as well. With an increasing competition and changing market dynamics, banks have been forced upon to keep updated themselves for newer obstacles every now and then. Besides this fresh regulations and compliance requirements, industry consolidation, delivering cost effective products and services, maintaining secure data platforms, meeting ever increasing customer demands and other strategic issues, all these factors have made banking far more complex than it used to be in the past. Therefore to handle the increasing transaction volumes and do away with issues hanging around the current systems, banks require the right CBS in place. Banking industry is getting globalize therefore banks need flexible, customer centric core banking environment which should be equipped with multi-currency and multi-lingual features. For instance, Canara Bank recently implemented CBS at as many as 1000 branches, which is one of the largest implementations in the banking industry and has included agricultural loans, loan processing, foreign exchange and service branch functionality. This step has helped the bank to move in line with the changing market scenario. Currently, out of the total IT spending taken on by banks, about 75 per cent go toward maintenance of existing systems and certain that the business of the bank goes through smoothly. Therefore, a major amount of expenditure involved in upgrading core banking architecture is something many banks may not be able to afford at present. To gain a periphery over their competitors and attend to customer demands effectively, banks are required to take balanced steps by replacing old systems with new platforms, without giving up on existing core banking modules which may still cater to changing needs. Although considerable progress in CBS implementation by banks has taken place but there is much more ground left to be covered.
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best fit for a bank in most effective manner? How does one ensure that the selection process is made objective, transparent and focused? Expert advices following 9 steps for effective selection of core banking system 1) Define business needs and have them owned: It is critical for banks to comprehend their business requirements both present & future, be it customer demand on products and services, or compliance requirement for business operations. Requirements could be classified as data requirements or processing requirements (e.g. interest accrual). Defining all the requirements in detail is the foundation of a good selection process. It is also important to have this done by the business users, to ensure that this is owned by the business team. 2) Prioritize requirements first thing first: Not all requirements are equally important; some are more critical and nee to be prioritized Domain level- some business domains are more critical than others. Unit level- within the business area, some requirements assume higher critical than others. It is important to classify requirements by their priority, this also ensures that the final ranking of vendors is on the basis of a Banks defined criticality rating, not purely on overall conformance of vendors. 3) Determine sourcing model what suits the best? IT infrastructure involves selection of multiple ancillary applications and also other investments in hardware, networking and third party software. There are two sourcing models: Prime vendor model: Identify a one-stop-shop vendor, for turn key assignment. Best of Breed model: Determine applications/ IT components that best suit individual requirements 4) Define Evaluation Criteria upfront: Transparency of evaluation process depends on defining the criteria upfront. When these criteria are not defined and frozen, there is every chance of being carried away by certain good features of system or on the contrary, a few limitations overshadowing other features.
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5) Manage RFP process be objective, transparent and focused: This can be a really tough balancing act, between the degree of detail one needs to get into for clarifying vendor queries, and the time window available for issuing of RPF, and receipt of there responses. The key factor here would be to ensure that information is provided to all vendors, thereby enabling that the process is objective and transparent. 6) Evaluate solutions for what you want: Banks get to review demonstrations once a decade whereas vendor makes them for living. Evaluating solutions for what you want and not what the vendors would like to showcase is the key to success. It is impractical for anyone to remember marathon of demonstrations. The scoring of vendor should be immediate and consistent. 7) Reference feedback whom to ask, and what? Reference feedback is critical to make qualitative judgment on vendors track record of implementation & support. The important factor is on deciding whom to get this feedback from. It has to be another bank that is similar to yours in terms of size, operations and services. The critical element is in determining what to ask. 8) Define contractual terms in detail: Care need to be taken to ensure that all that is required to be committed by the vendor-in terms of resources, timeframe, costs, dependencies, etc. are clearly articulated. The success of implementation is directly proportional to the clarity and detail of the vendor agreement. 9) Financial terms read between the lines: Cost structures should not be just seen from the software license and implementation point of view. Investments in hardware, networking, Database, operating system, and additional investment that might be required in data cleansing and migration, training, should all be considered, before arriving at the Total Cost of Ownership (TCO).
processes, relatively comfortable margins that provided the luxury of overlooking operational inefficiencies, and finally, the fear of the unknown, have all ensured that banks steered clear of this subject. But the current competitive environment with increasingly demanding customers is forcing banks to take a reality check on their technology environment and ensure that their IT strategy is aligned to their business objectives. And core banking system renewal is often the only solution to their problems. However, replacement of core banking solutions is it for large or small banks, global or regional is akin to a heart transplant. This can be one of the greatest challenges for any institution, which can either result in the bank leapfrogging to a high degree of differentiation and an enriched customer value proposition, or it can create considerable risks for the bank if the transition is not managed properly. A core banking solution, once implemented, should be robust, scalable and future-proof and serve the business interest for at least 10 years. Banks need to focus on key factors, which make the core banking transformation a successful experience. Broadly speaking, the key challenges in core banking transformation are: 1) Vendor capabilities and credentials. 2) Dependence on legacy/vendor applications and impact on envisioned technology architecture. 3) Banks business goals and alignment to leverage the new technology.
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2) Enabling multi-tasking
Next generation CB systems will also be expected to perform several functions which most current ones are falling short. These shortcomings include allowing product innovation, bundling, flexible pricing, integration of third party products and real time transaction processing. They should be able to provide a comprehensive database for all business segments that support customer centricity and a functionality that allows smooth IT integration of new product launches in order to accelerate the time to market new offerings.
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3) Open Source-driven
After the legacy and the ERP era, the Open Source era appears to advance at a steady pace. Ideally banks want to develop software by leveraging commoditized capability i.e. find Open Source components easily at no or low prices, and once integrated these components can represent a majority of bank core system software. The effect will be low technology costs for banks that could be translated into low fees for high quality products and services. One of the challenges is in the evangelical view that Open Source can replace all software offerings. In niche vertical banking markets, Open Source has no representation or meaning, and will only play a more significant role in the foreseeable future in horizontals.
Conclusion
In order to keep up with dynamics of global markets, technology and growing competitive forces, transforming core banking IT systems has become a pending reality for banking and financial institutions of all sizes. However, renewing banking platforms involves prudent requirements analysis, software selection, application development and integration, and technology decisions. Its success depends on top management involvement in the different transformation phases, the availability of operational managers with futuristic mindset and continuous communication inwards and outwards.
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In year 2006 Accenture & SAP jointly made survey on Core Banking System in Europe. Following are the findings in that survey-
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Following is the interview of Patrick Weber for a newspaper on 16th March 2009
(Patrick Weber leads the Core Banking and Payments practice in EMEA for HP. He has over 15 years of experience in the financial services industry, he was CIO for a financial institution in Germany and Luxembourg, and has extensive experience in managing projects for core banking system replacement.)
Q. What challenges does rapid expansion in banking sector present in terms of core banking systems?
Patrick Weber- The core banking system (CBS) must be flexible enough to ensure quicker time to market for new products and simultaneously be scalable to handle the growth. Furthermore banks must adapt their systems from a risk perspective. Islamic banks share their risk with investors and borrowers, which is fundamentally different to conventional banks. Banks in the Middle East must manage risks common to conventional banks as well as risks unique to Islamic banks.
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Organization; from a transactional relationship to an advisory relationship. Client-centric implies cross-organizational thinking and teaming and a modern CBS can support this by providing a unified view of the client.
Q. In General, what are the pressures facing todays banks? What is driving demand for CBS renewal?
Patrick Weber- The main drivers are increasing customer demands and the need for banks to be able to innovate quickly and responsively and to reduce TCO while remaining compliant with ever-changing regulations. Banks must be able to meet the customers regularly changing demands for more channels, real-time information and transactions, integrated banking, etc. Banks must deliver what the clients want now and also anticipate the clients future needs. Banks need to be innovative. Time-to-market for new products must be very short. This can work with legacy systems, but it is extremely expensive to stretch legacy technology to meet current demands. Many banks support their operations with up to 100 legacy systems. These have been built up over decades and are costly and difficult to support and modify. Banks need to consolidate systems to simplify the overall operational landscape. Regulatory pressure is mentioned purely for the sake of completeness. The green factor pressure is also growing. Governments, regulatory bodies and clients are putting pressure on organizations to take corporate responsibility seriously. Green strategies around server usage, power consumption and cooling do more than just benefit the environment. They also greatly improve performance and reduce consumption costs. Banks are keen to reap these cost benefits and reduce their running expenses. So, as well as changing their CBS to achieve more agile processes, banks are working to address their overall infrastructure with a view to reducing costs.
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Banks and financial institutions in the country might lay a major thrust to the adoption of packaged software in areas beyond core banking. The non-core banking applications are that of customer relationship management and human resources management among others. Talking about the relevance and importance of core banking in the Indian banking system, Mr. A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda, said: "Core banking has changed the `DNA' of banking in India, the banks have fought this and the entry into core banking has been rather smooth." Mr. Khandelwal felt that core banking has not made much difference in the Indian banking system in terms of reduction of cost, though being capable of unlocking a huge potential. He felt that educating the employees was a top most priority for the banks. Core banking offers a couple of advantages over the traditional system of banking. It is capable of handling more number of branches with minimum hassles, it can help innovate new products and services based on demographics and other factors and can also provide 24hour banking services to its customers, he felt. Core banking solution has stabilized to some extent but lot more needs to be done to use the technology for retaining the existing customers and to draw a set of new customers, felt Mrs. M.S. Sundara Rajan, Chairman and Managing Director, Indian Bank.
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Punjab State Co-operative Bank (PSCB) and 19 District Central Co-operative Banks have selected Oracle and Flexcel International as their IT partners to deploy Flexcube in the largest core banking rollout in the Indian co-operative banking sector. Flexcube, powered by Oracle Database and Oracle Real Application Clusters, had enhanced the efficiency with which Punjab State Cooperative Bank can deploy people, processes and products in 800 bank branches spread across Punjab. Commenting on the expectations of PSCB from this deployment, P S Sidhu, MD, PSCB, said, We expect the market to be increasingly demanding. This kind of deployment will enable us to gear up. Training of the staff members and making them embrace the new technology where manual processes still existed and technology adoption rate was much lower, was a major challenge that the bank faced. In addition to this, sufficient customer data was not available in the manual /old systems. Sidhu also added, Enriching the data and cleaning it to upload to CBS took a lot of effort. Lack of sufficient technical resources to manage a project of this size was also a challenge for us.
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The bank has already built a robust data centre that is sufficient to manage the 800 plus branch roll out. Deployment of the solution in about 40 plus branches across 18 banks has been completed. The second phase of the solution implementation across 200 branches will commence shortly. The roll out across the remaining branches will be completed as part of the third phase. With the deployment of Flexcube and Oracle Real Application Clusters, one of the building blocks for grid computing, PSCB will be able to enhance the efficiency of its transaction processing and provide on-line, real-time banking to accounts from any of the 800 bank branches in the network. It will also enable standardization of products and services to customers. Commenting on the roll out process, Sidhu further explained, The deployment went according to plan without any major problem but for some delay in rolling out due to shortage of technical man power and clean data for migration.
Future Plans
In the next phase, with increase in branches and transaction volumes under CBS, enhanced Oracle Solutions would be required for the Banks growing needs. We are working very closely with our implementation partners Flexcel on this, which is now part of Oracle organization, added Sidhu. PSCB has only completed the first phase of the roll-out. In the second phase, the bank plans to migrate 200 more branches and the remaining 550 plus branches in the third phase. Sidhu also informed, We are very closely interacting with our technology and implementation partners to help migrate to the next phase which is very crucial in our technology upgrade plans.
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Retail Banking
Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.
Facility
Maximum Amount
Charges Rs.2/ per1000. min. Rs 25/ per transaction Intra-city- free. Intercity (per transaction ) Upto Rs. 20,000/ Free; Above Rs. 20000/ & upto Rs 5.00 lac: Rs 1.50/1000. Above Rs.5.00 lac Rs.1.00/1000. Min Rs 750/. Max Rs 1250/
Deposit of cash at non home Rs.25000/ per day. branches Deposit of cheques at No Limit home/non-home CBS branch, drawn on any CBS branch / other banks
Deposit of clearing instruments at non-home CBS branch, drawn on non-CBS branch/ other banks
No Limit
Same as above
Encashment of cheque at non- Cash withdrawal ( by the Free home branch account holder): Rs. 50000/ per day Transfer to another SB/ CA at another CBS branch Issuance of draft/ B.Ch/ TT Same charges as in item no ii above + Issuance charges. Same charges as item ii above Same charges as in item ii above
Transfer of funds from home No Limit branch to third party accounts at another CBS branch
The Core Banking Systems have to satisfy the requirements of all the entities that form part of the eco-system of the Bank. [1] Bank Employee: Head office, regional offices, branches etc: Using Core banking System. With appropriate authority employee as given above can help customers do their financial transaction. [2] Bank management: Executives / managers at respective locations, head office, regional offices, branches etc. can obtain the financial position from Core Banking Systems related the respective sphere of banking operations and thus help pinpoint potential problems so as to avoid crises. [3] Bank Customers: Can operate any of their accounts from any branch or preferred delivery channel and have access to his funds any time 24 hours a day. [4] Bank Auditors : Ones accounts audited, they operate the same year on year thus enabling auditors to focus more on systems and procedures at delivery channels like branches, call center etc. [5] Bank regulators: Core Banking Systems produce the required reports for regulatory bodies like the central bank, financial statement, asset and liability reports, NPA reports, large currency transaction reports etc. are all produced by either the deposits, or the loan or a combination of deposit, loan and General Ledger System. [6] Bank Share Holders: Core Banking providing the desired return to shareholders from banking operations Trends overtime on such data informs S.H. about how the banks is doing and help take timely action to accelerate or improve performance.
BIBLIOGRAPHY
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Web Sites
News Papers
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