Wht is bank

A bank is a financial institution that provides banking and

other financial services to their customers such as
accepting 12/8/2012 deposits and providing loans.
A banking system also referred as a system provided by the
bank which offers cash management services for Indian
Banking System customers, reporting the transactions of
their accounts and portfolios, through out the day.
The banks safeguards the money and valuables and provide
loans, credit, and payment services, such as checking
accounts, money orders, and cashiers cheques. The banks
also offer investment and insurance products.
Need for Banks
To provide the security to the savings of customers.
To control the supply of money and credit. 12/8/2012
To encourage public confidence in the working of the
financial system, increase savings speedily and
efficiently. Indian Banking System
To avoid focus of financial powers in the hands of a few
individuals and institutions.
To set equal norms and conditions (i.e. rate of interest,
period of lending etc.) to all types of customers.
FUNCTIONS OF BANKS
Accepting Deposits from public/others
(Deposits).
Lending money to public (Loans).
Transferring money from one place to another
(Remittances).
Acting as trustees.
Keeping valuables in safe custody.
Government business.
TYPES OF BANKS

Public sector Banks
Private sector Banks
Co-operative Banks
Development Bank/Financial institutions
Banking before IT
Large no of queues in banks
Large no of files to record the data manually
Waste of time
The growth was restricted to the metropolitan or urban areas. efore
the computer, there were some other business machines that
performed limited functions such as the typewriter and the calculator.
Everything else had to be done by hand - pen and paper. Sales receipts
were hand-written, spreadsheets were done on paper, accounting
records were kept in ledger books, there were ellaborate filing systems
to keep records and inventories. Before typewriters, even business
letters were hand-written. Everything required more effort and was
less effective and less accurate than today's computer systems. That is
assuming that the computer is used properly and the data input is
correct!

WHY TECHNOLOGY IN BANKS ?
INCREASED OPERATION EFFICIENCY,PROFITABILITY &
PRODUCTIVITY
SUPERIOR CUSTOMER SERVICE
PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF
CHANNELS
TO BE FUTURISTIC AND HAVE TIME VALUE IN ALL ITS
DEALINGS WITH CUSTOMERS
IMPROVED MANAGEMENT/ACCOUNTABILITY
BETTER CROSS SELLING ABILITY
MINIMAL TRANSACTION COST
IMPROVED FINANCIAL ANALYSIS CAPABILITIES.
VARIOUS FORMS OF TECHNOLGY
Electronic banking / internet banking
Mobile banking/ tele banking
Point of Sale (PoS) Terminals
Wire transfer
E banking/ Internet banking
Shoppi ng Onl i ne: One can shop securel y onl i ne wi th the exi sti ng debi t/credi t card. Thi s can

al so be done wi thout reveal i ng the customer's card number.

Prepai d Mobi l e Refi l l : A bank's account hol der can recharge hi s prepai d mobi l e phone wi th

thi s servi ce.

Bi l l Pay: A customer can pay hi s tel ephone, el ectri ci ty and mobi l e phone bi l l s through the

Internet, ATMs, mobi l e phone and tel ephone.

Regi ster & Pay: One can vi ew and pay vari ous mobi l e, tel ephone, el ectri ci ty bi l ls and i nsurance

premi ums on-l i ne. After regi steri ng, customers can get sms and e-mai l al erts every ti me a

bi l l i s recei ved.

RTGS Fund Transfer: RTGS i s an i nter-bank funds transfer system, where funds are transferred

as and when the transacti ons are tri ggered (i .e. real ti me).

Onl i ne Payment of Taxes: A customer can pay vari ous taxes onl ine i ncl uding Exci se and

Servi ce Tax, Di rect Tax etc.

Mobile banking
Cash-in, cash-out transactions on an ATM
Domestic and international fund transfers
Micro-payment handling
Mobile & Direct to Home package recharging
Purchasing tickets for travel and entertainment
Commercial payment processing
Bill payment processing
Peer to Peer payments (e.g., Popmoney, Isis)

Point of Sale (PoS) Terminals


To use smart cards/debi t cards/credi t cards for the purchase of an i tem or for payment of a

servi ce at a merchant's store, the card has to be swi ped i n a termi nal (known as Poi nt of Sal e

or POS termi nal ) kept at the merchant's store. As soon as the card i s put on the termi nal , the

detai l s of the card are transmi tted through di al -up or l eased l ines to a host computer. On

veri fi cati on of the genui neness of the card, the transacti on i s authori sed and concl uded. It i s

thus a means to 'check out' whether the cardhol der i s authori zed to make a transacti on using

the card. POS termi nal i s a rel ati vel y new concept.

A Poi nt of Sal e (PoS) termi nal i s an i ntegrated PC-based devi ce, wi th a moni tor (CRT), PoS

keyboard, PoS pri nter, Customer Di spl ay, Magneti c Swi pe Reader and an el ectroni c cash drawer

al l rol led i nto one. More general l y, the POS termi nal refers to the hardware and software used

for checkouts.

In recent years, banks are maki ng efforts to acqui re Poi nt of Sal e (PoS) termi nal s at the

premi ses of merchants across the country as a rel ati vel y new source of i ncome. 'Acqui ri ng' a

POS termi nal means i nstal ling a POS termi nal at the merchant premi ses.
Wire transfer
Wire transfers are a type of electronic funds
transfer. They are usually considered the safest
way to transfer funds, especially large amounts,
to other banks or countries. Most large banks
belong to a bank network in Belgium called the
Society for Worldwide Interbank Financial
Telecommunications (SWIFT) that helps to verify
and process financial messages, such as transfers.
In order to make a wire transfer to another
country, you will need to get some information
from your payee and submit a fee to a major
bank to process the transfer.
Negative impact.

Hacker
Phishing
Spam Scams
Spoofing
Internet
Pharming
Credit Card Fraud
Future prospectus