ATM

Safe Internet Banking

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Tips for safe Internet Banking

How safe is internet banking?
Experts view on Internet banking right now is that it’s not safe. To get to a reasonable level of security you need a good knowledge of computers. If you don’t have that knowledge, you’re probably better off waiting until the banks get their acts together. The way forward is for them to supply their own software that you install on your own machine and use for accessing your account. Only then will Internet banking be relatively safe for people without computer expertise.
Internet Banking is becoming popular with people because we feel it is the easy way to deal with
money and one can make his PC a live bank, doing all the things a bank can do without actually
visiting a bank. But very few of us are able to protect our accounts from fraud. So if you have a
bank account with any bank and use the Internet to make transactions, money transfer or credit card
payments, here are some general ‘safe-banking’ tips that you might do well to follow:
Never use unprotected PCs at cyber-cafes for Internet banking.
Never keep your PIN and credit/debit card(s) together.
Never leave the PC unattended when on Internet banking in a public place.
Never reply to e-mails asking for your password or PIN.
Visit banks’ website by typing the URL in to the address bar, and not by clicking a link in
an e-mail arrived in your inbox.
Before using Internet banking, verify the domain name displayed to avoid spoof websites.
Log off and close your browser when you have finished using Internet banking.
Never let a stranger assist you at the ATM. Protect your ATM card PIN.
Count the cash and put it in your wallet before leaving the ATM.
Check your monthly credit/debit card statement for unusual activity.
Always draw a line through unused space on the cheque.
Never leave your cheque book unattended.

Never sign blank cheques.
Never keep pre-signed cheques anywhere.
Never hand over to unknown persons any signed blank cheques towards pre-EMI/EMI amount, for
opening of saving account or opening of any other accounts.
Remember to cross your cheque whenever applicable.
Count the number of cheque leaves whenever you receive a new cheque book.

Career in Banking

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Career in banking had come a long way since the 1980s. It is now one of the most sought after career, especially for high-calibre accountants. This was also encouraged by the narrowing of the salary gap between banking career and other careers. Many of those who had opted for a career in banking was also looking at other benefits such as training and development, intellectual challenge, career mobility and the global industry. Besides, there also instances where those in the banking career had received a bonus of 100% of their base salary.

A survey conducted had also shown that those who had a career in banking derived a lot of satisfaction from their career. If you are seeking for a career in banking, you have to be prepared to work as part of a big organisation. You are expected to share your knowledge with international markets and other business units. A career in banking also require that you think out-of-the-box and to have lateral thinking. You are expected to have great analytical and numerical skills.

In the first few years of your career in banking, expect steep learning curve and be prepared for inter-department transfer and change of job functions. Because of its international business nature, a career in banking can be exciting. A bank can not do away with information technology.

The followings are the possible job functions that you can apply for in a career in banking:

Product Analysis Financial Control Equity and Fund Analysis Risk Management Projects Operational Risk Review Corporate Finance Credit Analyst Loan Officer Branch Manager Trust Officer Mortgage Banker

To be a good candidate for a career in banking, you need to have good people skills. In some job functions, having good writing and accounting skills are essential too. Strong work ethics are more important than good academic results. Recently, those with good marketing skills are well-sought after. As corporate investment is also in high demand, those with strong inclination towards investment also will rise in the rank in a career in banking. However, you need to be prepared to put in long hours in your banking career.

The followings are a summary of the levels of requirements for your career in banking:

People Skills – High Marketing Skills – High Communication Skills – High Analytical Skills – Moderate Creativity – Moderate Initiative – Moderate

When it comes to salary for banking career, the starting salaries in a commercial banking range from $24,000 to $38,000. Those with MBA qualification command a higher salary ranging from $30,000 to $50,000. A Department Manager with more than 10 years of experience can expect a salary of $100,000. A senior VP earns about $200,000. There are also those high-profile manager who earns up to $500,000 per annum.

What does the future holds for a career in banking? The banking industry is undergoing a period of consolidation. Hence, you have to expect mergers and acquisition. As far as consumer’s behaviour is concerned, many are switching to ATM and online banking. Marketing officers have to meet their client at their homes instead of expecting consumer to visit banks. Specialised banking are also growing and middle management is in great demand.

For those who are still in the midst of their career search, a career in banking may be an exciting choice.

E-Banking Impact of Information Technology in India

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E-Banking: Impact of Information Technology in India Mr. Vijay Kumbhar [Assit. Professor in Economics, Abasaheb Marathe College, Rajapur Dist- Ratnagiri (Maharashtra)]

Introduction With the advancement of information technology and to derive the inherent advantages of its implementation, there was a long felt need to give recognition to the electronic mean as an alternative to paper based banking practice in India. The evolution of banking technology has been mainly driven by changes in distribution channels as automated teller-machine (ATM), phone-banking, tele-banking, pc-banking and most recently internet banking etc. In the traditional banking system a person had to go to a bank branch to deposit or withdraw money and get a bank statement book manually updated by a teller over the counter. With the introduction of computer networks, a networked printing machine started replacing the manual update of statements. Then automated teller machines (ATMs) were introduced to facilitate withdrawals, deposits and even transfers accommodating mobility in much wider geographical areas. Phone banking was a revolutionary concept in banking since it made banking accessible from anywhere as long as phones were available. With the successful diffusion of mobile phones, phone banking is moving into a next phase of development. However, one of the most substantial changes in banking technology is the recent introduction of internet banking.

1.0 Definition of E-Banking E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet’s widely accessible public network.

1.2 Origin of E-banking In India The Indian banking system has undergone significant technological transformation since the 1980s.The Rangarajan Committee report in 1980s was the first step towards computerization of banks. Banks started exploring the idea of ‘Total Bank Automation (TBA)’. Although titled ‘Total Bank Automation,’ TBA was in most cases confined to branch automation. It was only in the early 1990s that banks started thinking about tying-up disparate branches together to facilitate information sharing. At the same time, private banks entered the banking arena with radically different strategies. The private banks provided huge budgets to the adoption of technology to provide a whole new range of financial products and services at minimal costs.

1.3 E-Banking in India Most of Indian commercial banks are providing non-conventional and innovative banking services. Product innovation is tied to internet banking; increasing competition amongst the leading banks also promotes product and service differentiation. For example, despite the Internet Banking System developed in 1990 by the reserve bank of India with the help of department of telecommunication of India. Moreover, Indian banks offer innovative technology based banking products and service to their customers. Information technology revolution affect on traditional banking practice in following manner in India.

1.3.01Computerization of Banks in India Computerization is general trend in all sector, banks also trying to Computerization, as per recommendation of Rangarajan Committee (II), the progress in implementation of the directive of the Central Vigilance Commission (CVC) on the need to computerize 70 per cent of the banking business by public sector banks before January 1, 2006, 13 banks had achieved the desired level. Figures as at end of March 2008 indicated that 23 banks have achieved the target, while two banks have computerisations levels ranging between 70 per cent and 79 per cent and two others were at a level below 65per cent and 29 percent banks having a core banking solution. At present there are 67.7% of branches are under Core Banking Solutions, 94.6% are fully computerized and 6.4% are partially computerized branches of public sector banks in India. Other than public sector banks, all private and foreign banks are mostly computerized recently.

1.3.02Wireless Banking, Online Banking or Internet Banking Wireless banking/ online banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution’s network using cellular phones, pagers, and personal digital assistants through telecommunication companies’ wireless networks. It uses the Internet as the delivery channel by which to conduct banking activity, e.g. transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. Online banking usually offers such features as: Bank statements, with the possibility to import data in a personal finance program such as Quicken or Microsoft Money Electronic bill payment Electronic funds transfer between a customer’s own checking and savings accounts, or to another customer’s account Electronically investment purchase or sale of securities by D-Mat Account Loan applications and transactions, such as repayments account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.etc.

1.3.03Core Banking or Centralized Banking Core banking is a term used to describe a service provided by a group of networked bank branches. Bank customers may access their funds from any of the member branch offices. Core banking consists of a networking process by which the servers of different branches of a bank are joined to a common server and henceforth an account holder may access, deposit, and withdraw money from his/her account from any of the branches of the bank. In 21st United States, core banking has become common place. Today 67.7 % of public sector bank branches are all branches of private and foreign banks are under core banking solution in India.

1.3.04Electronic Authentication and Electronic Signature Banks are now using technology for the proper identification of customers’ identity. In the era of technology based banking operation verifying the identities of customers and authorizing e-banking activities are integral parts of e-banking services. Since traditional paper-based and in-person identity authentication methods reduce the speed and efficiency of electronic transactions, financial institutions have adopted alternative authentication methods. The latest option digital (electronic) signatures for generating and identification of customers signature is best option within the electronic banking platform.

1.3.05BANKNET BANKNET is a internet based communication network backbone. It provides speed of financial transaction. At present, seven centers viz. Mumbai, Delhi, Calcutta, Madras, Nagpur, Bangalore and Hyderabad. Set up in 1991 by the RBI, this backbone is meant to facilitate transfer of inter-bank (and inter-branch) messages within India by Public Sector banks who are members of this network. More centres (like Pune, Ahmedabad, Kanpur, Lucknow, Chandigarh, Kochi, Jaipur, Bhopal, Patna, Bhubaneshwar, Thiruvananthapuram, Guwahati, Panaji Jammu etc) are being brought on the network.

1.3.06INFINET-Indian Financial Network The ‘INFINET’ Indian Financial Network is a satellite based wide area network using VSAT (Very Small Aperture Terminal) technology set up by the RBI in June 1999. The hub and the Network Management System of the INFINET are located in the Institute for Development and Research in Banking Technology, (IDRBT) Hyderabad. Among the major applications identified for porting on the INFINET in the initial phase are e-mail, Electronic Clearing Service – Credit and Debit, Electronic Funds Transfer and transmission of Inter-city Cheque Realization advices. Later, other payment system related applications as well as Management Information System (MIS) applications are proposed to be operationalized.

1.3.07Indian Banks and S.W.I.F.T All Indian public sector banks are part of the international financial messages communication network, namely, Society for Worldwide Inter-bank Financial Telecommunication (S.W.I.F.T). The S.W.I.F.T provides reliable and expeditious telecommunication facilities for exchange of financial message all over the world. The gateway is in Mumbai and efforts are on to other cities through leased lines/public data network.

1.3.08Electronic Data Interchange (EDI) EDI is a computer-to-computer transfer of details of commercial or administrative transactions using an agreed protocol and standard data structure. EDI standards have been developed in respect of specific messages for transmission of business transactions which are electronic equivalents of commercial invoices, purchase orders, transport bookings and payment instructions etc.

1.3.09Telephone banking, Mobile Banking and SMS Banking Telephone banking is specific provision of banking services over the telephone. It allows customers to perform transactions over the telephone. Most telephone banking use an interactive voice response (IVR). Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. Most of banks are providing SMS alert facility to their customers. Facility of SMS services SMS banking is becomes very much safe and useful in recent days.

1.3.10MICR Clearing MICR (Magnetic Ink Character Recognition) is a character recognition technology adopted mainly by the banking industry to facilitate the processing of cheque. The process was demonstrated to the American Bankers Association in July 1956, and it was almost universally employed by 1963. MICR characters are printed with a magnetic ink or toner. Magnetic printing is used so that the characters can be reliably read into a system, In India MICAR Introduced in 1987 in the four Metros, the MICR Clearing is now in operation in 14 centers (HYDERABAD, BANGLORE, AHMEDABAD, KANPUR, JAIPUR, NAGPUR, BARODA, PUNE, GAUHATI, TRIVANDRUM) and is proposed to be extended to a total of 22 centers where volume of clearing transactions is large. 1.3.11Automated Clearing House The Automated Clearing House (ACH) is an electronic banking network operating system. ACH processes large volumes of both credit and debit transactions which are originated in batches. Within the Rules and regulations governing the ACH network are established by the Reserve Bank of India by the help of the State Bank of India. 1.3.12Credit card and Debit Cards A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer. Credit cards are become very popular in India with the introduction of foreign banks in the country. A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. It’s an alternative to carrying a checkbook or cash. There are currently two ways that debit card transactions are processed: online debit cards and offline debit cards. Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro) and are used at point of sale like a credit card. This type of debit card may be subject to a daily limit, as well as a maximum limit equal to the amount currently deposited in the current/checking account from which it draws funds.

1.3.13RTGS (Real Time Gross Settlement System) Real Time Gross Settlement (RTGS) is a comprehensive secured on line settlement solution, set up, operated and maintained by Reserve Bank of India to enable funds settlement across banks in the country on real time basis to minimize costs and maximize benefits, increase velocity of funds-flow both inter- city and interbank, reduce credit risk, increase transparency of payments and better liquidity management. RTGS is managed by RBI. In India RTGS System has been implemented since March 26, 2004. 1.3.14Electronic Clearing Services (ECS) ECS Scheme operated by the RBI since 1996-97, it helps to make payment from a single account at a bank branch to any number of accounts maintained with the branches of the same or other banks. This is the most useful mode of payment of dividend / interest/ pension/refund etc. The clearing and settlement activities are dispersed through 1,047 clearing houses managed by RBI, the State Bank of India and its associates, public sector banks and other institutions. 1.3.15Electronic Funds Transfer (EFT) & Special Electronic Funds Transfer EFT System hosted and operated by the RBI, permits transfer of funds, unto Rs. 5 lacs from any account at any branch of any member bank in any city to any other account at any branch of any member bank in any other city. This system utilizes the Service Branches of the member banks and the nodal offices of RBI. RBINET is the conduit for the flow of funds. The Reserve Bank of India acts as the service provider as well as regulator. A special EFT (SEFT) was introduced in April 2003 covering about 3000 branches in 500 cities. This has facilitated same day transfer of funds across accounts of constituents at all these branches. 1.3.16Automated Teller Machine (ATM) The first bank to introduce the ATM concept in India was the Hong Kong and Shanghai Banking Corporation (HSBC) in the year 1987. Now, almost every commercial bank gives ATM facilities to its customers. SBI is following the concept of ‘ATMs in Quantity’. The Corporation Bank has the second largest network of ATMs amongst the Public Sector Banks in India. Today’s all Public Sector Banks are taking the installation of ATMs seriously for Indian market. They are either setting up their own ATM centers or entering into tie-ups with other banks. Since April 2009 access in any ATM machine is free of charge it is the great opportunity to any ware banking in India. 1.3.17Electronic Bill Payment EBP can attract customers due to the faster and efficient bill payment mechanism of the banking in India. Customers can access their financial information more easily and create a more intimate relationship with the customer and promote and deliver other online products and services. Most of Indian banks are trying setups an EBP portal. ICICI has already started a portal called BillJunction.com. Banks are planning to use the Net for payment of utility bills. They are entering into tie-ups with utilities like MTNL, AirTel, Orange, and BPL Mobile etc. Right now, a customer who’s received a bill in the physical form logs into the network in order to make an online payment. In the future, these bills will be sent to customers through the Net.

Conclusion All these developments in Indian banking are shows that, the Indian banks are marching towards modern banking and changing their traditional look. It is grate change of banking industry because of information technology development. They are trying to installation of information technology for banking business and they trying to provide technology based banking products and services to their customers. Indian banks also trying to Univerlisation of banking products and services to one stop banking shop for customer delight, but comparatively private and foreign banks existing in Indian economy are having a higher level of modernization and those providing numbers of modern services to their customers. References:- 1)Davis whitely (2000) : Strategy Technologies, and Applications MCGRAW- Hill company. 2)Dr. M.Mahmaoudi Maymand (2005) E-commerce Deep & Deep publications pvt.Ltd. 3)Gordon, Natarasan (2006) Financial Markets & services Himalaya publication House Delhi. 4)P.R.Shukla, S.K.Rovchoudhary, (1992), Banking System, credit and Developments, Akashdeep publishing House, New Delhi. 5)N.Vinaykam (1993); A peep In To The Private sector Banks, kanishka publishers Delhi. 6)Khan Masood Ahamad (1992) Banking In India, Anmol Publications, New Delhi. 7)S.S.Hugar (1993), Trends And challeges To Indian Banking, Deep & Deep publications, New Delhi. 8)Vasant C.Joshi, Vinay V.Joshi (1998) Managing Indian Banks : The Challenges Ahead, Sage publications, New Delhi. 9)Frederic S. Mishkin (1998), The Economics of Money Banking and Financial Markets 5th edition an important of addition wesly Longman. 10)Report on Trends and progress of Banking in India – 2005-06 11)R.B.I. Annual Report 2004-05 and 2005-06. 12)Banking Industry – Vision 2010 13)Professional BANKER – July 2007.

IT Support Services to Banking Sector

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With the other industries the banking industry is also growing at a significant good rate today. The main reason behind this is the use of the latest technology tools. In the olden days banking was done on paper but now it is done electronically with the help of computers. Many IT Support Company are giving their IT services to the banking sector.

It has been observed during the last few decades that IT infrastructure services have been taken by the banks and other financial institutions. In the early 80s the banks started to make their branches computerized and were purchasing the software packages. In the early 90s replacement of the computer systems with the inexpensive and latest technology powered PCs began. Information technology opened up the way for the banks to make their products sophisticated, diversified and adopting new techniques and make better market infrastructure. The internet has become the remote channel of communication between banks and its customers.

The E-Banking came to the United States of America and the United Kingdom in between 1020 to 1030 and now India is also following it. Most of the banks have made their services based on these technologies and equipments which are offered by many IT support companies. Now the customers can view their account summary, status, receipts, transaction records, can make online funds transfer and many more online options like these. Undoubtedly today banking has become more fast and easy and the customers expectations are also increased. Now the customer needs not to have its account summary on registers because everything is now online with the advent of the internet technology which is providing many benefits to the customers as well as the banks.

A customer can take his cash fast and easy with the use of an ATM machine. He can use his debit or credit card for purchasing purposes. He can use e-cheques, mobile banking, telephone banking and internet banking for remote transactions. He can also make payment transfers when the bank is closed. Easy to keep an eye or monitor the account status. It is cost effective for the bank because thousands of customers can be handled at a time and no need to use so many clerks.

We can say that technology has always played an important role in the growth of financial organizations and banks. It has shortened the paths of long transactions to smaller ones. It is giving proper service quality and satisfaction to the customers.