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vol. VI no. 1 quarterly journal january-march-2010
Mobile Banking For Inclusive Growth
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January-March-2010
Editor
Pratima Trivedi
Editorial Team
Ambrish Mishra
Pramod Dikshit
Sanjay Srivastava
Nidhi Goyal
Printed by
Swastik Printing Press
27, Mai Gi Ki Bagiya,
Kapoorthala Crossing,
Mahanagar, Lucknow
Mobile : 9415419300
punjab national bank institute of information technology
Vibhuti Khand, Gomti Nagar,Lucknow--226 010 (U.P.)T : +91 522 2721442, 2721174F : +91 522 2721201, 2721441E-mail : [email protected] : www.pnbiit.com
Dharmendra Tewari
e-track
The heights by great men reached and
kept were not obtained by sudden flight.
But they, while their companions slept,
were toiling upward in the night.
Thomas S. Monson
Thought for the quarter
From the editor
Dear Readers, Mobile banking has taken off during the last
couple of years. The widespread use of mobile phones in our country offers a platform for financial transactions that can facilitate financial inclusion of people who would otherwise be outside the purview of the financial system. A combination of technology and innovative business practices is rapidly changing the way in which people conduct financial transactions. Article “Mobile banking for Inclusive Growth” has been incorporated in this volume of e track, to highlight various issues relating to it.
With a view to inter-connect the ATMs in the country and facilitate easy banking for the common man, the IDRBT conceptualized, developed and implemented the National Financial Switch. The National Financial Switch facilitates routing of ATM transactions through inter-connectivity between the Bank's Switches, thereby enabling the citizens of the country to utilize any ATM of a connected bank. At present the switch has been handed over by IDRBT to NPCI. The article “National Financial Switch”throws light on various issues relating to it.
Reserve Bank of India has come out with Standardisation and Enhancement of Security Features in Cheque Forms and prescribed certain benchmarks towards achieving standardisation of cheques, known as CTS-2010. These specifications are added in this serving of e track to make the readers aware of it.
Special Economic Zones have become the most talked about in the Indian economic circles, but due to its ambiguous policy, it has faced strong opposition from the leftist parties, activities, farmer groups, economist and urban planner during 2006. However now it is been realized that they are the pockets of manufacturing excellence which apart from export growth and attracting FDI are contributing significantly towards the generation leading to the increased economic growth of the country. The article “Special Economic Zones: Engines of Growth” covers various intricacies relating to it at large.
Information Technology has entered every nook and corner of the Banking Industry. Various consequences of it are covered in the article “Impact Of Information Technology On Banking Sector”.
Hope you will savor this serving of e track ……Happy Reading…………..
Pratima Trivedie-mail : [email protected]
ContentsFrom the pen of the Chairman 3Did you know ? Ashish Bajpai 4From the Director's desk P K Malhotra 5Mobile Banking For Inclusive Growth Dr S N Ghosal 6National Financial Switch (NFS) Prof. (Dr.) Firdos T.Shroff 10Tips & Tweaks Piyush Mishra 12Standardisation and Enhancement of Security Features in Cheque Forms 13Special Economic Zones: Engines of Growth Anchal Singh 17Impact of Information Technology On Banking Sector. Sadhana Misra 22Financial / Technical news 26
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FROM THE PEN OF THE CHAIRMAN Shri K. R. Kamath, Chairman & Managing Director, Punjab National Bank
on his visit to PNBIIT on 13th March 2010The Chairman and Managing Director of Punjab National Bank Shri K.R. Kamath visited the Institute
on 13.03.2010. His visit was marked by lighting the lamp before Devi Saraswati statue and planting of a
sapling in the Institutes premises. Before addressing the Sr. Executives and Incumbent In charges of branches
of Punjab National Bank in Lucknow Circle, Shri Kamath toured the PNBIIT campus and penned the
following in visitors' book:
"I am very much impressed by the IIT and the whole setup. While I salute the leadership which
conceived this, it is now in our hands to nurture this institute and facilitate it's all round growth to make it
the premier I.T. Training institute for banking in the country. Let us all work towards this.
My compliments and good wishes to the Director and the Team."
1 2
3 4
Shri KR Kamath , Chairman and Managing Director Punjab National Bank and Chairman PNBIIT lighting the lamp (1),
Planting the sapling (2), Writing in the visitor's book (3) and addressing the Senior Executives and Incumbent Incharges of
Lucknow Circle ( 4).
He is accompanied by Shri Rohtash Kumar , FGM, Shri B L Gupta , Circle Head Lucknow, Shri PK Malhotra, Director PNBIIT,
Shri Ambrish Mishra , AGM , PNBIIT, Shri Pramod Dikshit , Dy Director, PNBIIT and others.
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January-March-2010
I have received the latest issue (October-December' 09 ) of your Institute's quarterly journal 'e-track'
and gone through the same. I have found the contents of the journal to be quite informative, not only for the
Banking fraternity but also for the readers at large. The article on Human Resource Outsourcing deserves
special mention as organizations today are increasingly adopting HR outsourcing as a tool to gain
competitive edge over their counterparts.
I compliment the efforts put in by the editorial team of PNBIIT in bringing out this informative journal.
B. P. Sharma, General Manger-HR
Punjab National Bank, Head Office, New Delhi
READER'S COMMENTS
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You can tap the Space bar to scroll down on a nothing's open, it'll bring up the shutdown Web page one screenful. Add the Shift key to options. scroll back up. Ctrl + W closes only the active window.You can type just the name of the website in On your keyboard,the URL and press crtl + enter keys to add hit windows key + E to bring up www as prefix and .com as suffix. windows explorer.Alt + d = takes you to the address bar of most hit windows key + F to bring up search modern web browsers and Windows (file) window.explorer. Windows Key + M - Minimize all Ctrl + tab to switch next tab for internet windowsexplorer or google chrome, ctrl +t for new
Windows Key + Shift + M - Maximize tab, ctrl + w to close tab.
all windowsWhen typing out an email address, it doesn't matter if you're typing in CAPS or lowercase.
translate.google. com You can Triple-clicking a word will highlight the
select what laentire paragraph. When jotting down notes with Windows dandy little Notepad program (find it in Accessories), press F5 to instantly and
The number of megapixels does not automatically to put time stamp your notation
determine a camera's picture quality; that's a with the current date and time.
marketing myth. The sensor size is far more In Microsoft Word – Shift + F3 makes a word
important. (Use Google to find it. For change from all uppercase to all lowercase to
example, search for “sensor size Nikon just the first letter upper case and so on.
D90.”)USE window +L button to lock your computer.Alt +enter opens a new tab for whatever you typed in the address bar in most browsers.Alt + F4 quits the current program. If
Google has a language translation tool that is real slick at
nguage to translate from and to, copy paste in the paragraph or website, and within a few seconds the text is translated for you.
Compiled By – Ashish Bajpai, student of Advanced diploma in Banking Technology
(ADBT–III) PNBIIT, Lucknow
DID YOU KNOW …….
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January-March-2010
FROM THE DIRECTOR'S DESK
Technology reduces cost on one hand and enhances reach and efficiency on the
other. Efficient leveraging of technology based on well defined business strategy is the
key to determine the business growth of any organisation more particularly banks.
Effective implementation of technology will help the banks in taking on the
competition successfully and furthering their achievement in the area of financial
inclusion as well.
Internet Banking facilitated 'Anywhere Anytime Banking' immensely in the last few years. However to
use this channel, the customer needs a PC, internet/broadband connection and adequate computer literacy.
These prerequisite coupled with perceived fear of breach of security due to phishing is posing significant
challenge in its wider and deeper acceptance.
These concerns are addressed by Mobile banking because of relatively minuscule cost, convenience,
ease of use and consumer confidence demonstrated by the sheer number of mobile users in the country.
Consequently mobile banking or m-banking will find greater acceptance and enable mobile phone users to
access basic financial services even when they are miles away from the nearest branch or
Customers will be able access their banks on the go – be it while shopping, or waiting for their bus to work, or
traveling or simply chatting before their orders come through in a restaurant.
Introduction of Mobile Banking is sure to make 'Anywhere Anytime Banking' a reality in true sense
and spirit and enable inclusive growth.
Happy Mobile Banking to all readers.
P K Malhotra (Director)
home computer.
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January-March-2010
There is no doubt that the need not only revisiting but also rewriting. In fact
most popular mandate in doles and subsidies provided by the state not only
developing countries is to fail to reach through such intermediation by the state
outreach poor by creating but on the other hand weakens the self confidence
employment opportunities and and initiative of the poor and make them more and
providing financial support to more dependent on the state as if state is next to god
the poor through state interventions. Obviously to ameliorate their misery and poverty. This
such intermediation often fail to reach the poor as obviously over the years have made them laggards
these intermediaries floated by the state are loaded and fatalistic.
with bureaucrats and politicians who are more prone
to exploit the poor and ignorant rather than to
outreach the bottom of the pyramid and or to hold It is therefore imperative to conceive tools and their hands in running their farms or firms and to technologies to outreach poor with least provide succor to overcome calamities they often intermediation and creating direct accessibility to encounter. Indeed it is widely held view that rural finance and other support services. In fact the micro- entrepreneurs are not capable to organize revolution in information technology has created an themselves to conceive, run and bear risk of any opportunity to reach directly to the customers sustainable economic enterprises and therefore they irrespective of time and place. It has become need support and hand holding by the state possible outreach people residing in far flung rural government and or economic institutions promoted areas and has access to finance and services at any and run by the state and people (PPP). No wonder time i.e. 24 hours. This has created new paradigm that state policies and programs for alleviation of for financial institutions particularly banks as has poverty are all routed through state political and been portrayed below.economic institutions.
It is an irony that in practice it has been
observed that such intermediation has failed to
outreach bottom of the pyramid as because these
institutions are found in practice keener to fill their
pockets rather than provide succor and support to the
poor. Seibel and Parhasib and Benjamin and
Piperek in their research studies (1990 & 1997) have
brought out very vividly that the traditional
approach of funding the bottom of the pyramid only It is obvious therefore that the new paradigm through state intervention as has been generally has provided greater opportunity to banks and practiced due to perhaps the influence of Keynes's financial institutions to outreach rural and far flung theory of state intervention to prop up the economy areas to cater financial services and products to
Encourage Disintermediation To Reach The
Poor
Failed Intermediation
Emerging Opportunities
MOBILE BANKING FOR INCLUSIVE GROWTH
-Dr S N Ghosal
NEW PARADIGM: PROBLEM IMPERFECT MARKET ORGANIZED MARKET
LOWER COST & RISK
BETTER ACCESSIBILITY
ROLE DEPENDING UPON STATE
HELP EMERGENCE OF NEW COs
TO UNDERTAKE RATING
SUSTAINABILITY IGNORED INCREASED AWARENESS
EVOLUTION OF RISK ASS
ESSING INSTITUTIONS
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people of those areas. In fact in the last decade banks In a recent study made by the POLITICAL
and other financial institutions have developed the AND ECONOMICS RESEARCH COUNCIL
delivery technology dynamically in terms of client (PERC) of the Brookings Institution has brought out
outreach and enlarging the space. These institutions that value of non conventional data based on bill
particularly banks have acquired technology payment history etc if put to use could be of some
support like ATM , biometric security and internet value as follows:
banking along with core banking and electronic 1. It would enhance the reliability of measuring money transfer hardware and software. This has credit risk by only 10 per cent;obviously led them to consider the possibility and
2. It would also help enhancement of measuring feasibility to introduce mobile banking. In fact some
credit score by 22.4% only.banks have already availed this facility in a limited
way to facilitate money transfer and payment
system. However the most asked for facility that It is obvious therefore mobile banking mobile banking is expected to provide is reach out transactions that are presently practiced could help villagers to enable them to avail financial facilities to a very limited extent to measure and evaluate risks with ease and least cost. In fact RBI is also keen to of all types banking transactions. The most introduce mobile banking facilities by banks. In this important challenge therefore is to make it feasible regard it has already circulated guidelines and has to use data made available through MNO, M set up a working group under the CHAIRPERSON banking, and M payment system should be of a deputy Governor Mrs. Thorat to find out suitable comprehensive and dependable information for strategy to help banks to introduce this facility. credit and other financial risk assessment. To
develop the same obviously the first step would be to
asses the present gap that could not be filled by the However there are some difficulties in
data made available though MNO and Mobile adopting such facilities; of these major one is the non
payment facilities that are now available through availability of reliable data with regard to the
mobile phones. That would also be necessary to financial health and transactions of rural people. The
examine the level of interest of all stakeholders to volume of data the mobile network operators
build comprehensive database for their use. This (MNO) usually collect on the basis user's transaction
would obviously not just one time exercise as the records are not adequate to assess risk and provide
interest of stakeholders would vary with the growth comprehensive banking services though
of volume and customers and also technology to transactions like bill payment could reflect through
enhance reachable and reduce cost.its regularity, frequency and volume some idea with
regard to financial capability and avidity of users of
such facilities. In fact that need to be collected
should reveal not only the credit worthiness of the The project provides commercial banking
customer but also their capability and capacity to services to remote rural communities in Kenya.
take risk and proneness to save and spend within These financial services are provided at village their means. satellite centers, which are mobile banking units
Help Building Comprehensive Database
Challenges To Be Encountered
Case Study On Mobile Banking In Kenya
The Project And How It Works
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January-March-2010
attached to existing branches. The units are located overall is profitable There is also clear evidence that
at strategic market centers servicing surrounding other commercial banks in
villages and serve each area once or twice a week on Kenya is responding to this new competitive market days. They provide customers with the same environment. Branch closures are less common and financial services as in normal branches, such as banks are focusing heavily on how to harness the deposits and savings, money transfers, and technology of mobile communications to enable remittance processing and loans. The service helps transactions and thus increase their reach Need To to reduce congestion in banks existing branches, as Develop Collaborative Mode For Indiawell as increases the bank's penetration. Mobile
However as has been pointed out by K.C. customers pay the same rates for their transactions as
CHAKRAVARTY Dy. Govern or of R.B.I.that at branches plus a small fee for the mobile access.
indeed it is a great opportunity for banks to outreach The mobile banks consist of an all terrain four-wheel
the bottom of the pyramid but there is need to drive vehicles, are manned by 2-3 bank employees
develop an effective collaboration between mobile who meet customers at designated market places on
service provider and banks. He also emphasized that fixed days each week. Once there, the team serves
it would be necessary to open accounts with the bank customers from buildings that have been rented out
before bank could provide banking services and at the market places. The mobile units use solar
products to him. In fact he has rightly raised some power to run a computerized transaction processing
limitations of banks to fast forward this scheme. system that is directly linked to the home branches
These are as follows:via GPS and satellite.
1. Banking technology is of recent origin and
therefore there is need for scaling up the same The mobile bank project reverses a long term and that would obviously take some time and
trend for commercial banks in Kenya to withdraw investment;from rural areas. Satellite centers with sufficient
2. Payment facilities are only one area where business volumes can become fixed branches,
banks could be active and for that also there is enabling the mobile unit to take services to new and
need to develop appropriate delivery model; more remote customers.
andThis model can be easily replicated. Equity
3. The recent initiative taken by RBI to permit has been approached by a number of banks
banks to appoint correspondents need to be throughout Africa interested in understanding and
trained to the latest gadgets of mobile adopting this model for their own operations.
telephony and internet banking.
In fact he was frank enough to opine that banks The results have been impressive. There are are laggards and therefore to expedite the
now more than 120 villages covered by mobile units, introduction of the system one has to look for a six fold increase over the original target of 20, and alternative non-bank models.the units are servicing some 40,000 new customers,
of which nearly half are women. Average transaction
Even if one may not hold such a pessimistic times are 3 minutes, compared to the norm of 10
view, it cannot be overlooked that there exist minutes at normal branches. The mobile business
The Innovation
The Results
Open Up Opportunities To Mfis
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January-March-2010
considerable gap in the technology and database that trend indicates the prices of these handsets would
hinders the development of a suitable model for come down and become affordable. Further it would
banks to reach the poor to provide comprehensive also be helpful to strengthen the organizations like
banking services to the rural poor. In fact mobile Financial information network (FINO) to build
banking is a subset of electronic banking. It may be necessary financial portals to help banks to draw
defined as a method to deliver financial services upon these as and when considered necessary.
using mobile communication technologies such as In fact it would be imperative to develop GSM and CDMA including mobile devices such as biometric ATMs along with mobile phones in the cellular phones and personal digital assistance. In initial stage as that would help educating the rural fact under M banking customer can carry out basic youths to become familiar with these technologies financial transactions like remittances and and would not hesitate to contact directly the banks payments. for seeking their services and products. In this regard
it is really encouraging news that banks have started
exploring the ways to leverage the Unique Presently there are four types of M.banking Identification Number project. In fact it is model viz. wap, sms, and pda and sim toolkit.interesting news that after meeting the officials of
WAP (wireless application model) is based on UIN 14 banks and telecom companies as well as
micro website and the model is similar to internet officials of RBI had a meeting to identify a model to
banking.integrate these innovations for inclusive growth.
SMS banking is based on GSM standard
service to exchange text messages that a customer It is however heartening to note that an could send to obtain information or to provide an
agreement has been signed at the behest of IBA information and or instruction to the banker.where it has been agreed that on a revenue sharing
PDA model is designed with a mobile phone to basis banks could utilize 1,3 million vendor network
provide more access and to store data to enable of mobile operators to offer mobile banking
customer to operate on individual software. It services. Indeed it is an happy inaugural as banks
therefore helps processing loan applications also.would be able to recruit vendors of telecom
Similarly mobile phone with SIM toolkits also operators as their correspondents. No doubt it would
enhances the capacity of users and banks to deliver help banks to enlarge their reach as these
more services. correspondents would act as an agent of sale for
both. In fact this negotiation was going on for quite
some time but due to strong opposition from telecom However to make mobile banking a real tool
firms it was stalled. It is therefore surprising to find for disintermediation which is perhaps the prime
such sudden change of mindset of telecom need in India to avoid corruption and high cost it
operators. But all is well that ends well.would be necessary to avail the latest development
in mobiles that provide storage and internet
facilities. In this regard Google has advanced
considerably and one would expect as the present
Recent Models Evolved For Collaboration
Latest Initiative
Collaboration of Internet, Mobile And Banks
Dr S N Ghosal is retired General Manager
from United Bank of India. He was also Adjunct
faculty of ICFAI, Business School, Kolkatta
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Introduction : The list of banks connected to the NFS include :
In a major step towards ushering
in convenience-banking for the
citizens of the country, the
IDRBT has set up the National
Financial Switch (NFS). Dr.
Y.V.Reddy, Shri. G.N.Bajpai, and Shri C.S.Rao,
dedicated the National Financial Switch to the
Nation on August 27, 2004. The National Financial
Switch has been handed over by IDRBT to NPCI.
The NFS comprises a National Switch to
facilitate inter-connectivity between the Banks'
Switches and Inter-Bank Payment Gateway for
authentication & routing the payment details of
various e-commerce transactions, e-government
activities, etc.
The Institute used to charge Rs. 2/- for
providing this facility of switching (routing) the
transactions of various member banks. With a view
to encouraging all banks to the join NFS network
for widening the coverage of ATMs and thereby
providing easier access to customers as also to
promote greater use of ATM as an important
payment system infrastructure, the IDRBT waived
off the switching fee of Rs. 2/- with effect from
December 3, 2007.
The NFS is the largest network of shared
ATMs in the country connected 28,773 ATMs of 31
participating banks as on June 30, 2008 and 49,880
ATMs of 37 participating banks as on December 31,
2009 respectively.
NATIONAL FINANCIAL SWITCH (NFS)
-Prof. (Dr.) Firdos T.Shroff
Sl. No. Bank No. of ATM's
1. Allahabad Bank 211
2. Andhra Bank 766
3. Axis Bank 3777
4. Bank of Baroda 1205
5. Bank of India
504
6. Bank of Maharashtra
345
7. Canara Bank 2013
8. Central Bank of India 400
9. City Union Bank 152
10. Corporation Bank 1046
11. Dena Bank 346
12. Development Credit Bank 113
13. HDFC Bank
3655
14. ICICI Bank
4789
15. IDBI Bank
1132
16. Indian Bank
832
17. Indian Overseas Bank
583
18. IndusInd Bank Limited
407
19. Lakshmi Vilas Bank
150
20. Oriental Bank of Commerce
899
21. Punjab National Bank
2800
22. Standard Chartered Bank
239
23. State Bank of India
17441
24. Syndicate Bank
1121
25. Tamilnad Mercantile Bank Ltd.
135
26. The Catholic Syrian Bank Ltd.
146
27. The Cosmos Cooperative Bank Ltd.
86
28. The Dhanalakshmi Bank Ltd.
72
29. The Jammu and Kashmir Bank Ltd. 248
30. The Karnataka Bank Ltd. 194
31. The Karur Vysya Bank Ltd. 341
32. The South Indian Bank Ltd. 280
33. UCO Bank 42034. Union Bank of India 221535. United Bank of India 246
36. Vijaya Bank 367
37. YES Bank Ltd. 204
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January-March-2010
There is a default inter-change switching fee from April 1, 2008, customers would not pay any
between the banks, if the banks do not have their charge for use of their own bank's ATMs. Use of
own mutual agreements. other banks' ATMs would also not attract any fee
except when used for cash withdrawal for which the Pricing Structure of the National Financial maximum charge levied should be brought down to Switch is as follows: Rs.20 per withdrawal by March 31, 2008. All cash
withdrawals from all ATMs is offered free with 1. Interchange Fees: Rs. 18/- per transaction +
effect from April 1, 2009.Service Tax as applicable
The National Financial Switch (NFS),
established by the IDRBT, acts as the apex level Interchange Fees: Rs. 8/- per transaction + switch and facilitates connectivity among ATM
Service Tax as applicable switches of all member banks.
The RTGS system is in operation since March
2004. Apart from settling inter-bank transactions
and time-critical transactions on behalf of The National Financial Switch allows customers, it facilitates settlement of all retail paper-connecting directly to the individual bank's switch based and electronic clearings taking place in or through their shared ATM Network Switches. It is Mumbai, and CCIL operated clearings including a win-win situation for all the banks and more that related to the National Financial Switch (NFS) importantly, for the customers.in multilateral net settlement batch mode. The Clearing Corporation of India Limited
RTGS is open till 4.30 p.m. for customer (CCIL) is the clearing and settlement agency for the transactions and up to 6.00 p.m. for inter-bank switch, which also facilitates the NFS Disaster transactions on week days. On Saturdays, the RTGS Recovery Site from its premises at Mumbai.functions till 12.30 p.m. for customer transactions
An NFS User Group has been set up to and till 2.00 p.m. for inter-bank transactions. The
deliberate various issues related with the integration of the RTGS system with the Reserve
procedures, fee, etc., and a Steering Committee Bank's internal offices of the Reserve Bank as also
consisting of the banks' top management resolves transfer funds from one office to another. This
various issues related to the National Financial system has been functioning smoothly. The facility
Switch and policies from time to time.is now available at all the 16 offices of the Reserve
Bank. At present, 71 member banks are using the
facility.The number of ATMs is steadily increasing
and the usage of ATMs has gone up substantially www.idrbt.ac.in
during the last few years. ATMs are primarily used
for cash withdrawal and balance enquiry. It was
observed that the service charges levied for use of
ATMs were not uniform and transparent.
Accordingly, the Reserve Bank, in March 2008, set
guidelines for service charges. As per the guidelines,
A. Cash Withdrawal
B. Balance Inquiry
Settlement Charges: Rs.100/- + Service Tax as
applicable per settlement per bank
NFS vis-à-vis Automated Teller Machines
(ATMs):
Reference :
Prof. (Dr.) Firdos T. Shroff is Director, Chetana's R. K. Institute of Management & Research
& Fellow, Indian Institute of Banking & Finance, Mumbai.
He can be contacted at : [email protected]
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TIPS & TWEAKS
Google Searching just got Easier
Today, our working schedule is too hectic and unfortunately we have only 24 hrs, we want to search
everything quickly. Internet is just like a sea of knowledge where we can search every thing but problem is
that where should we search and what and how should we search for better results. I am going to give you
some tips which would help in better searching.
For example, I am taking words 'pnbiit', avadh and 'sachin'
•For more depth searching we can add any of above styles with a space .
•For many word searching at a time we can use allinurl:,allintitle: etc. or allintitle: word1 word2
word3 …etc. For example: allintitle: pnbiit avadh
•For exact word searching the word to be searched should be taken within double quotes
(“………………”).
•We can use Google as a calculator. We can give mathematical expressions directly in search box.
o Typing 2*2 +8 will give you the result 12.
o On using the expressions along with '+' prefix, Google will search for the content of exact
expression rather than giving the result of the expression.
Sno Job Where it searches Commands to type in Google search Bar
Example
1 For link searching
Searches for presence of link everywhere in all sites link:url link: pnbiit.com
2 For informational search of site
Searches for information about a url Info:url Info: pnbiit.com
3
For file type search like pdf, word, doc, txt, ppt etc.
Search the sites for keywords in specified such file formats
<word to be searched> filetype :<filetype>
sachin filetype: pdf
4 For URL
searching
Searches only in URLs not in the whole web page
inurl: url
inurl: pnbiit.com
5 For text
searching
Searches only in text anywhere in webpage
intext: word
Intext: pnbiit
6
For title searching
Searches only in the title of the webpage
intitle:<word to be searched>
intitle: sachin
Compiled By – Piyush Misra , student of Advanced diploma in Banking Technlgy (ADBT–III) at PNBIIT , Lucknow
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STANDARDISATION AND ENHANCEMENT OF SECURITY FEATURES IN
CHEQUE FORMS
(Reference : RBI/2009-10/323, DPSS, CO.CHD No 1832/04.07.05/2009-10 dated 22.02.10 - http://www.rbi.org.in)
Paper-based cheque clearing continues to be one of the popular modes of initiating payment
transactions in the country. During the period April-December 2009, clearing houses in the country have
processed on an average around 4.5 million cheques every day. Several measures have been initiated by
Reserve Bank of India to ensure that this retail payment product functions in a safe and efficient manner.
Over a period of time, banks have added a variety of patterns and design of cheque forms to aid
segmentation, branding, identification, etc., as also incorporated therein a number of security features to
reduce the incidence of cheque misuse, tampering, alterations, etc. Growing use of multi-city and payable-at-
par cheques for handling of cheques at any branches of a bank, introduction of Cheque Truncation System
(CTS) at New Delhi for image-based cheque processing, increasing popularity of Speed Clearing for local
processing of outstation cheques, etc., are a few aspects that led to looking into the need, if any, for
prescription of certain minimum security features in cheques printed, issued and handled by banks and
customers uniformly across the banking industry.
Against the above backdrop, a Working Group was set-up by the Reserve Bank of India for examining
further standardisation of cheque forms and enhancement of security features therein. The Working Group
comprised various stakeholders viz. commercial banks, paper manufacturers, security printers, etc., apart
from Reserve Bank of India. Recommendations of the Working Group were discussed internally as also
forwarded to Indian Banks' Association (IBA), National Payments Corporation of India (NPCI) and select
banks for their views. The feedback from these institutions has been received and duly considered.
It has since been decided to prescribe certain benchmarks towards achieving standardisation of
cheques issued by banks across the country. These include provision of mandatory minimum security
features on cheque forms like quality of paper, watermark, bank's logo in invisible ink, void pantograph,
etc., and standardisation of field placements on cheques. In addition, certain desirable features are also being
suggested which could be implemented by banks based on their need and risk perception. The set of minimum
security features would not only ensure uniformity across all cheque forms issued by banks in the country but
also help presenting banks while scrutinising / recognising cheques of drawee banks in an image-based
processing scenario. The homogeneity in security features is expected to act as a deterrent against cheque
frauds, while the standardisation of field placements on cheque forms would enable straight-through-
processing by use of optical / image character recognition technology.
The benchmark prescriptions shall be known as "CTS-2010 standard", specifications of which are
stated Next page-
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January-March-2010
"CTS-2010 Standard" for Cheque Forms – Specifications
1. Mandatory features
1.1 Paper (At Manufacturing Stage) : Status quo shall be maintained in relation to paper specifications
as it exists currently. Details of current specifications are contained in the document 'Mechanised
cheque processing using MICR technology - Procedural Guidelines', available at -
http://www.rbi.org.in/ scripts/PublicationsView.aspx?id=4551.
Additionally, paper should be image friendly and have protection against alterations by having
chemical sensitivity to acids, alkalis, bleaches and solvents giving a visible result after a fraudulent
attack. CTS-2010 Standard paper should not glow under Ultra-Violet (UV) light i.e., it should be UV
dull. This shall ensure that the feel of cheques is uniform across banks.
1.2 Watermark (At Manufacturing Stage) : All cheques shall carry a standardised watermark, with the
words “CTS-INDIA” which can be seen when held against any light source. This would make it
difficult for any fraudster to photocopy or print an instrument since this paper would be available only
to security printers handling cheque printing. The watermark should be oval in shape and diameter
could be 2.6 to 3.0 cms. Each cheque must hold atleast one full watermark. Sample watermarks that
would be used in CTS will be finalised in consultation with Indian Banks' Association (IBA) / National
Payments Corporation of India (NPCI) and could (illustratively) appear as under -
1.3 VOID pantograph (At Printing Stage): Pantograph with hidden / embedded “COPY” or “VOID”
feature shall be included in the cheques. This feature should not be visible on the scanned image at the
resolution specified in CTS but should be clearly visible in photocopies and scanned colour images as
resolution used in such cases would be above the prescribed CTS standards. This would act as a
deterrent against colour photocopy or scanned colour images of a cheque.
1.4 Bank's logo printed with invisible ink (ultra-violet ink) (At Printing Stage) : Bank's logo shall be
printed in ultra-violet (UV) ink. The logo will be captured by / visible in UV-enabled scanners / lamps.
It will establish genuineness of a cheque.
1.5 Field placements of a cheque : Placement of significant fields on the cheque forms shall be mandated.
However, placement of additional fields shall be left to banks. This will enable data capturing by
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January-March-2010
Optical / Image Character Recognition (OCR / ICR) engines in offline mode and help banks in
automating their payment processes. A sample cheque with recommended field placements is placed at
4 below.
1.6 Mandating colours and background : Light / Pastel colours shall be mandated for cheques so that
Print / Dynamic Contrast Ratio (PCR / DCR) is more than 60% for ensuring better quality and content
of images. The colours will be finalised in consultation with IBA /NPCI.
1.7 Clutter free background : Background of cheques shall be kept as clutter free as possible for
improving quality and clarity of images.
1.8 Prohibiting alterations / corrections on cheques : No changes / corrections should be carried out on
the cheques (other than for date validation purposes, if required). For any change in the payee's name,
courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms
should be used by customers. This would help banks to identify and control fraudulent alterations.
1.9 Printing of account field : All cheques should, as far as possible, be issued with the account number
field pre-printed. This should be considered must for current account holders and corporate customers.
1.10 Use of UV feature on cheque images : Though bank's logo in UV ink is a strong deterrent for forgery
and duplicate cheques, there are challenges in terms of increased image size, stabilisation of UV
technology in CTS environment, availability of UV-enabled scanners, etc., in implementing this
feature. However, the benefits outweigh the limitations and hence this feature shall be incorporated.
Presenting banks can subject instruments beyond a threshold value to UV verification using the UV
lamps currently available for currency note verification. In case UV technology stabilises in future, the
UV image view could be incorporated in CTS as an additional image view or by dropping one of the
existing image views.
2.1 In addition to the mandatory security features as above, banks can consider including additional
security features as per their risk perception like (i) supplementary watermark containing their own
logo, (ii) embedded fluorescent fibres, (iii) fugitive ink, (iv) secondary fluorescent ink, (v) micro-
lettering, (vi) toner fusing, (vii) check-sum, (viii) patterns, (ix) floral designs, (x) bleeding ink, (xi)
structural magnetics, (xii) security thread, (xiii) hot stamped holograms on multi-city cheques and
demand drafts, (xiv) auto-detection tools, (xv) use of UV band on sensitive and key areas of interest on
a cheque such as Legal Amount Recognition (Amount in Words), Courtesy Amount Recognition
(Amount in Figures), Signature, Beneficiary Name, (xvi) pre-encoding of amount field on the MICR
band for demand drafts / pay orders (above a self-decided cut-off) before issue to customers, (xvii) use
of check-sum on the face of demand drafts / pay orders (other than the MICR band), etc.
2.2 Use of additional features by banks will be subject to the features being compatible with CTS
requirements. While incorporating additional features, banks should take care that –
i. The additional security features do not overlap or be very close or clash against the prescribed
2. Desirable features
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January-March-2010
minimum security features.
ii. The features are compatible with CTS specifications.
iii. The features are not image heavy, i.e., increase the image size.
iv. They should not block any important data on images or hinder payment processing.
v. Presenting banks are not expected to verify the additional features.
3. Implementation modality
3.1 IBA and NPCI shall be jointly vested with the task of certifying additional / optional security features. IBA and NPCI would ensure that the additional / optional features are compatible with CTS and MICR clearing schemes before releasing them to banks.
3.2 IBA and NPCI shall be entrusted with the responsibility for impanelment of vendors with capability to provide the new security standards.
3.3 Use of UV image view in CTS is being kept on hold for the present. The decision would be revisited in future once UV technology stabilises.
4. Layout of a sample cheque leaf
4.1 The layout of a cheque leaf and location of various security features as prescribed above would appear as under –
Appeal: As a part of our drive to make the contents of Journal more pertinent and germane to the
readers we welcome articles on latest topics of Banking / Information Technology. Articles may be
of about 1000 words. Published articles are suitably remunerated.
Theme of articles for next issue is “ e banking”
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Abstract
Evolution of SEZ
laws regarding export and
import are broadminded and SEZs have become the most talked about in liberal as compared to rest part the Indian economic circles, but due to its of the country. ambiguous policy, it has faced strong opposition
from the leftist parties, activitist, farmer groups, SEZ can be defined as
economist and urban planner during 2006. “specifically delineated duty
free enclave and shall be deemed However now it is been realized that they are to be foreign territory for the purpose of trade the pockets of manufacturing excellence which operations and duties and tariffs.” –EXIM Policy apart from export growth and attracting FDI are 2000 Chp 9 Para 30.contributing significantly towards the generation
leading to the increased economic growth of the Since the inception of the SEZ policy in India
country. SEZs are in operation and more than 140 SEZs have
been approved This paper explores the Indian policy
framework for an SEZ, it further discusses its During 1990s, eight EPZs are converted into
significance highlighting in terms of exports, SEZ with a view to create an environment for
investment and employment in our economy which achieving a rapid growth in exports The following
is witnessing a high trajectory where consumption table give a detailed information regarding the
levels are soaring and investment are riding high major EPZ converted into SEZ .
.The study is primarily based on the secondary data
gathered through reports of government 1. Kandla (Gujarat) : 1965 (265 Acres)organization and websites.
2. Seepz (Maharashtra) : 1975 (110 Acres)
3. Noida (U.P.) : 1986 (310 Acres)The Indian SEZ policy dates back to the year
4. Madras (Tamil Nadu) : 1986 (262 Acre)2000 when Government announced the policy for
5. Falta (West Bengal) : 1986 (280 Acres)setting up SEZ in the country in line with the 6. Visakhapatnam : 1994 (360 Acres)international practices. The first EPZ was set up in
(Andhra Pradesh)Ireland in 1959, whereas the first Asian zone was the
Kandla EPZ established by the Indian Government 7. Surat (Gujarat) : 1998 (103 Acres)in 1956.When the Soviet Union was split, India 8. Cochin (Kerala) : 1998 (103 Acres)opened up its economy in 1992, for fulfilling its
The Indian government first launched the strategy of export led growth. India was one of the
concept of SEZ in EXIM Policy 2000 to boost the first in the Asia to recognize the effectiveness of the
country's exports and attract F.D.I. Under this policy, Export Processing Zone.
the zone was designated as duty free enclave and A Special Economic Zone are in short SEZ is deemed to be foreign territory only for trade
a geographically bound zones where the economic operations and duties and tariffs.
SPECIAL ECONOMIC ZONES: ENGINES OF GROWTH
-Anchal Singh
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With a view to provide a significant thrust to Moreover, for promoting infrastructural facilities
the policy, the government enacted, the SEZ Act for export production SEZ was set up in the public
2005 and it became operative from 10th February private, joint sector or by the State government. In
2006, with the SEZ rules vetted and approved for the fact the planning for SEZ programme to ensure the
notification. export led growth by attracting FDI and other
private sector instrument and thus using SEZ as
catalyst in the reform, economic development ,
employment creation and regional development.
The purpose of the Special Economic Zone is
conceived to be acceleration of economic
development in a part of the country mainly owning
to external strategy investors particularly by the
realization of anyone or all of the following
objectives.
1. Generation of additional economic activity.The concept embraces the strategic
positioning of the zone in the world markets by 2. Development of new technological solution
leveraging on the strong backward linkages with and their use in national economy
hinterland /Domestic Tariff Area (DTA) For 3. Promotion of exports of goods and services.undertaking SEZ acting one should have a multi- 4. Increasing competitiveness of products and disciplinary expertise in the fields of business , services.economics , Finance , legal and urban and
5. Making use of already existing industrial and infrastructure planning.
economic infrastructure.
6. Creating employment opportunities.i) SEZ are governed by three tier administrative
7. Making use of natural resources with respect set –up
to natural environment.ii) The Board of Approval is the apex body in the
department·Developer of SEZ may import /procure goods
iii) The unit Approval Committee at the zonal without payment of duty for the development,
level dealing with approval of units in the SEZ operation and maintenance.
and other related issues and·Income tax exemption for a block of 10 year in
Each zone is headed by a Development 15 years at the option of developer as per
Commissioner, who also leads the unit Approval section-80-IA of the Income Tax Act.
Committee.·Full freedom in allocation of developed plots
The SEZ rules provide the simplified to approved SEZ units on purely commercial
procedures for development, operation and basis.
maintenance of the Special Economic Zones for ·Full authority to provide services like water, setting up and conducting business in SEZ.
electricity, security, restaurants, recreation
Administrative Set-up for SEZs
India's Policy On SEZ -A Snapshot
SEZ
Fiscal Incentives and Regulatory Benefits (Preferential policyFramework)
Thrust on Self Certification and in zone environment (Hassel free operating Environment)
Integrated Information (Self contained and self managed)
SEZ FRAMEWORK
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centers etc on commercial lines. losses an account of land acquisition The table
highlights the exports from the functioning of SEZ ·Foreign investment permitted to develop during the four years.township within the SEZ with residential
areas, markets, play grounds, clubs, recreation
centers etc.
·Develop Standard Design Factory (SDF)
building in exiting Special Economic Zones.
·Income Tax exemption to Investor's in SEZ's
under section 10(23) G of Income Tax Act.
·Exemption from Service Tax Investment
made by individuals etc.
·In SEZ company also eligible for exemption
u/s 88 of IT Act.
·Developments promoted to transfer Exports from the SEZ during 2004-05 have infrastructure facility for operations and registered a growth of 32% in rupee terms over the maintenance u/s 80 –I-A of IT Act. previous year .Exports during 2005-06 were 22, 840
crore as compared to RS. 18, 314 crores during the ·Generation, Transmission and Distribution of
corresponding period of last year. At present , 1948 Power in SEZs allowed.
unit during the operating in the year SPZs
providing directly in the year SEZs providing Indian SEZ is considered as catalyst for direct employment to about 1.10 lakhs persons
transforming our planned economy into a market about 40%^ are women .Private investment by economy which has two facets. Firstly, SEZ fulfills entrepreneurs for establishing units in the SEZs are the objective of export led growth by facilitating about crores.inflow of FDI in the country. Secondly our Northern
and Central States are far behind the coastal States
India has approved 513 SEZ till date out of regarding industrial units as well as investment
which 250 have been notified. It is expected that including domestic and FDI, and here SEZs play a
expected investment will cross US$45.73 billion crucial role in reversing this trend of economic
Dec 2009 generating incremental employment to slugging.
800, 000 lakh people. Further during the last three Benefits derived from the SEZ s can be months, investment is expected to cross US $ 3.65 measured in terms of investment, employment, billion by various firms. At present around nearly exports and infrastructural development 18.52 billion have been invested in SEZs, generating additionally generated. The benefit derived from the employment for around 350,000people as per multiplier effect of the investment and additional statistics from the government SEZ site.economic activity in the SEZ and the employment
generated will outweigh the tax exemption and the
Table : 1 Export
Exports
Benefits of SEZ
Current investment and employment
Year Value (Rs. Crore) Growth rate (Over person year)
2003-04
13,854 39%
2004-05
18,314 32%
2005-06 22,840 25%
2006-07 34,615 52%
2007-08 66,638 92%
Source : www.sezindia.nic.in.
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stTable: 2 Employments (Direct) in SEZ (as on 31 Dec.2007)
Table: 3 Sector Wise Distribution Of Approved SEZ
Employment as on Feb 2006
Present employees on Dec 31st 2007
Incremental Employment generated since coming into
force of SEZ Act ’05 7 SEZs set up by the Central govt.
122236 183354 61118
SEZ set up by the State Govt/Pvt SEZ during the period 2000-05.
12468 364630 23995
SEZ notified under the SEZ Act 2005
--- 61015 61015
Total Employment 134704 280832 146128
Incremental employment generated in SEZs on whole 1, 46,128 persons.
Sectors Formal Approvals In-principle approvals Notified SEZs
IT/ITES/Electronic Hardware 147 31 40
Textiles 13 14 1
Pharma 13 6 3
Multi-products 9 54 4
Bio-tech
9
4
1
Engineering
5
8
1
Multi-Services/Services
6
9
1
Electronics
2
4
Auto
3
4
1
Footwear
4
1
1
Gems and Jewellery
3
3
1
Power
3
3
-
FTWZ
2
4
-
Stainless steel
2
1
-
Food processing
2
2
-
Non-Conventional Energy
1
-
1
Petrochemicals
1
-
1
Agro
1
-
-
Portbased-multiproducts
4
-
-
Others
4
14
7
Grand Total
234
162
63
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conceptualized and planned carefully according to
sustainability principles keeping in view economic,
social and environmental factors.
Foreign companies have emerged to establish
their presence in the territories and therefore various
sops are provided to foreign investors, for setting up
export oriented units (EOUs), Special Economic
Zones (SEZs) or industrial and electronics hardware
parks. SEZs in India have increased their
performance, size, road and port connectivity and
Indian government should try to fulfill its agenda of
common reform as the multiplier effects on the
economic activities triggered by SEZ materializes.
ØSharma, Manoranjan, Atlantic Publishers and Arguments against SEZ Distributors, New Delhi, 2005.
People protest against displacement caused by ØAgrawal, A.N., “Indian Economy Problems SEZs implementation are already intense and it of Development and Planning, 32nd Editionsometimes led to violence as witnessed in Nandi
gram and Singur in West Bengal.. However the ØKennedy, M. Maria John and Vennila,
ndgovernment has thought to drop the idea till Jan 22 K.,”Special Economic Zones: Problems and th
2007 but soon it was regained on April 15 2007 by prospects”, Southern Economist, Vol.47, no.2, the empowerment group of Union Ministers. pp 43-44, May15th 2008.
It is thought that SEZ will acquire thousands of ØSampathlakshmi N, “Special Economic hectares of land with minimum land ceiling Zones “, Kisan World”, Vol.35No.3 pp23-25. provisions which will disrupt the livelihood of May 2008.people and therefore stiffly resisted by peasants and
ØSampat Preeti,” Special Economic Zones in farmers. Therefore, desirability and feasibility of
India “Economic and Political Weekly” each project should be judged in terms of cost and
Vol.XLIII No.28, pp-25-29 July12-18, 2008.benefit that will accrue to the society at large.
Generally, projects should be set up on wasteland, Øhttp://www.sez.icrindia.org.degraded or unirrigated land and acquisition of Øhttp://www.accomodationtimes,comagricultural land should be avoided.
Øhttp://www.infochangeindia.org/2007
Øhttp://www.ibef.org/artdisplay.aspx.SEZ have strong linkages with the global
market which attract latest technology and business
know-how. This information and flow of knowledge
has ultimately improved the economic and social
well being. It may generate sustainable value if
References
Books
Articles
Websites
Concluding Observations
Formal
In -Principle
Anchal Singh is a Research Fellow at Faculty Of Commerce. B.H.U., Varanasi-221005
She can be contacted at [email protected]
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IT has improved the ability of gave a new concept of core banking. In fact it
man to process and analyze data enabled banks to provide the facilities of phone &
and communicate the so mobile banking to its customers.
obtained information with To compete with the private and foreign banks tremendous speed & accuracy. the nationalized banks in India have greatly The communication or transfer improved upon their number of computerized
of this information from one to many to accomplish branches. This computerization made transaction some common goal is the centrality of any social fast and easy thereby saving the time of the activity. Today hardly any sector of social activity is customer's Indian banks have actively harnessed the left untouched by the impact of IT. Many technology to handle distributed operations, high-organizations have implemented IT, to provide volume transactions and data management. This in better services and thereby are able to improve their turn has helped banks to achieve customer business manifold. In earlier days IT was used satisfaction which is the basic requirement of today's mainly in the manufacturing sectors for product internet driven market.designing and development, product modification,
Electronic banking in the Indian banking etc. But later on after realizing its importance it was
sector has shown the benefit of web technology. E-applied in the service sector too.
Banking which is also termed as cyber-banking IT basical ly involves f ine modern online-banking, virtual banking or home-banking
technologies, i.e. electronic & photonic provides remote banking facility electronically.technologies, computer technology, communication
E-banking provides web user an online technology, artificial intelligence and human
banking facility. E-Banking services range from machine interface technology. Combination of simple bill payment and account balance monitoring Internet & IT has greatly revolutionized the banking to securing a loan. For the bank it is a quick, and financial sector. In today's competitive world, inexpensive way of offering services. E-Banking
customer's loyalty cannot be taken for granted, and also relieves personnel from the arduous paper work
and provides 24 hrs services, which no physical that compels banks to constantly find innovative
branch otherwise can offer. Where as for the methods to attract and retain their customers. The
customer it is cost effective, easy and available 24x7 advent of web technology has provided great for doing business. The services offered to improvement in the services of banking sector of the customers include bill payment, tax computation developing on-line stock trading, electronic cheque, portfolio
countries. It has given great opportunities of management record keeping, tracking of bank interpersonal interactions for different purposes. It accounts, credit cards, etc. For example, ICICI Bank also passed way for internet & intranet facilities and has launched 'Infinity', on Internet banking service
IMPACT OF INFORMATION TECHNOLOGY ON BANKING SECTOR.
-Sadhana Misra
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January-March-2010
that offers services such as account information, means of doing banking transactions provides a
fund transfer within accounts, stock payment major indicator of customers requirement. The
instructions, requests & intimations for cheque success of EFT depends heavily on networks to
books, bill payments, communication with account provide reliable and efficient inter connections.
manager etc. ATM's are specialized terminals that dispense cash
and require wide area network (WAN) The impact of IT on financial services has communication with the central banking computer.been most significant in payment services wherein
ATM, credit cards, Debit cards and other modes of
payments have brought a drastic change in the It is a system of transferring funds through a payment mechanism. This has been made possible network such as the internet. Here cash exists in the by making cash available any time at any place in the form of validated tokens represented by a string of world. In fact IT has changed the concept of cash & digits. E-cash can be purchased from online credit throughout the world. The technological currency server, i.e. usually a bank or Financial advancements which have taken place in the world Institution. It deals with the circumstances in which of business payment are as follows- the payer is not present at the point of sale or service,
but can communicate electronically, for e.g. it is
connected to the Internet, or to some other form of It is a system of transferring funds on request global information infrastructure, such as a cable-using a wide area network. It covers a wide range of TV installation with enhanced capabilities.transaction services like-
* Banking Services
During the 21st Century the usage of credit * Funds transfer between accounts at the same card has expanded significantly throughout the bank or at different banks.world. Debit cards have been introduced more
* Stock brokerage services recently and together they represent the most rapidly
* Retail ATM services. growing method of payments in many countries.
Today credit & debit cards are preferred methods of * Business transactions like fund transfer, settling small value payments associated with the investments, overdraft arrangements etc.purchase of specific goods and services. Separate
* Apart from these services intermediate or electronic clearing and settlement systems have
overnight fund transfer, online credit been established by the major credit card companies.
authorization, reduced need for customers to For instance, Master card and visa have established
carry cash or cheque are some of the their own networks which are used for verifying
advantages of EFT.transactions world-wide.
Today the number of growing ATM networks Smart cards are just like credit cards but serve
is the greatest advantage of EFT environment. The a different purpose. It contains a chip which has a
wide spread acceptance of ATM's by the public as a
3. Electronic or Digital Cash (E-cash).
1. Electronic Fund Transfer (EFT)-
4. Credit & Debit Cards:
2. Automatic Teller Machine (ATM):-5. Smart Card:
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January-March-2010
processor and memory unit. Smart card generates connected to trading services, depositories and
encrypted random numbers with a lifetime of around custodial services use IT to maintain records of
one minute. It generates one time password when shares & securities held by them on behalf of their
user enters a PIN. This password is calculated using customers where as investment consultancy services
data encryption which is stored in the card. This use IT to analyze the financial positions, investment
provides means for storing passwords, private keys opportunities available for their customers & risk
or digital cash on the card. These cards have become factors, etc.
popular due to limitation of pure password based Thus Financial Institutions today face systems. competition from many fronts. The traditional banks
are facing increased pressure from all sides. The
customer has a variety of options for services, It is the exchange of structured data between delivery channels, products & vendors. Therefore the computer systems of trading partners. It is retaining the customer has become a challenge for defined as the interchange of standard formatted the banks and in doing so the most effective way is to data between computer application systems of invest strategically in IT. Foreign and upcoming trading partners with minimal manual intervention. private banks in India have led the way to EDI communicates information relevant for automation of financial services industry. The initial business transactions between the computer systems resistance to technology is fading as top o f bus ines s o rgan iza t ions gove rnmen t management of several Indian banks are viewing IT organizations, small business houses, banks and as a business enabler and a vital part of their strategy. financial Institutions.Thus various banks have now gone for substantial IT
The banking and insurance companies use the investments in core & Internet technologies.
IT to keep track of their customers transactions and
financial needs, stock markets use IT for online
trading with the help of computer based terminals
6. Electronic Data Interchange (EDI)
Food for thoughtHappiness is when what you think, what you say, and what you do are in harmony.
– Mohandas GandhiWithout continual growth and progress, such words as improvement, achievement, and success have
no meaning. – Benjamin Franklin
Life is a series of collisions with the future; it is not the sum of what we have been, but what we yearn to be.
– Jose Ortega y GassetAlways bear in mind that your own resolution to succeed is more important than any other.
– Abraham Lincoln
Sadhana Misra is Librarian at
Navyug Kanya Mahavidhalaya,
Rajendra Nagar, Lucknow
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This book presents the lived experience of better than what they would
call centre agents, and the perspectives of receive in other sectors but
managers and trade unionists regarding employee also that numerous other
experiences in the international call centres in components of the CTC
Mumbai and Bangalore in India. This book which do not form part of
highlights how employee identity is invoked to their salary accrue to them in
gain employee commitment, for realizing some form and represent
organizational goals and ensuring competitive employers' investment in
advantage. While professional identity is t h e m . ” T h i s b o o k i s
associated with a host of privileges, it not only organized into the following
results in agents justifying and complying with chapters:-
organizational requirements and absorbing job- Call Centres as Workplaces
related strain, but also precludes their engagement The Call Centre Industry in India with collectivist endeavours aimed at representing
The Research Process and protecting their interests, causing the nascent
Professionalism as Lived Experience trade union movement in this sector to reinvent it.
Professionalism and the Reinvention of the Trade Challenging the 'professionalism' plank of call Union Movement Professionalism Contested centres, the authors find lack of transparency in Final Wordmany areas. For instance, a common practice is to
This book is unique in being based on talk the CTC (cost-to-company) lingo at the time of
empirical research and its multiple sources of data, recruiting agents. While CTC is the total amount of
in its use of qualitative methods, and in its focus on expenditure an organisation undertakes for an
multiple thematic areas such as identity, control, employee in a particular year, including gross pay,
collectivization and professionalism. It includes a variable pay, long-term benefits, leave travel
detailed study of the dynamics of a subtle allowance, medical reimbursement, transport,
psychology that is at work in the Indian call centres food, other allowances and loyalty bonus, this
regarding the notions associated with the term figure does not translate into the monthly salary
'professional'. Providing new and holistic insights that agents receive which is a much lower amount,
gained via rigorous academic research, this book is finds the author.
of value to HR and OB professionals and scholars, “However, agents, most of whom are industrial relations experts, sociologists, freshers entering the job market for the first time, psychologists and trade unionists, as well as readers do not realise that this is the case until they receive interested in India's ITES-BPO sector.their first salary. Nonetheless, even at this juncture,
agents believe not only that their returns are much
Book ReviewEmployee Identity in Indian Call Centres: The Notion of Professionalism
Author: Ernesto Noronha and Premilla D Cruz
ISBN: 9788132100799, Publisher: Response, Binding: Paperback, Price: Rs 395
Reviewed by Sanjay Srivastava(Librarian) PNBIIT, Lucknow
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January-March-2010
Payment of Interest in SF accounts on daily
Product basis
Technology that allows bosses to spy on
employees
Up-gradation of RTGS System to Windows 2008
Steps for rupee to be fully convertible shortly
IT spending will rise, but not rebound in 2010
freely for activities like acquiring overseas assets.
Full convertibility of the rupee was one of the In view of the present satisfactory level of bottlenecks telecom firm Bharti Airtel faced in its
computerization in commercial bank branches, bid to acquire South African firm MTN. payment of interest on savings bank accounts by Government was adopting a cautious scheduled commercial banks is to be made on a approach, taking into consideration all aspects and daily product basis with effect from April 1, 2010. the risks involved in opening up the economy by Further, banks were advised that in order to ensure a allowing convertibility of the currency. smooth transition, they may work out the modalities (www.efinancialnews.com)in this regard.
Source :www. rbi.org.in
A Japanese phone company has come up with
a new technology that can track most minimal RTGS system is presently running on movement of mobile phone users and beams the Windows 2000 advanced server with Oracle version information back to HQ. 9i and IBM Websphere MQ series 5.3. It has been
KDDI Corporation, which has developed the decided to upgrade RTGS system to the latest technology, intends to offer the service to clients available software versions i.e. Microsoft Windows such as managers, foremen and employment 2008 Enterprise Edition, Oracle 11g and IBM agencies, or whoever may be interested keeping in Websphere MQ series 7.0. The process of check the activities of their employees. The new finalization of the Hardware Security Module system uses analytical software to detect more
system has now been completed. Safenet's Luna PCI complex behaviour, unlike sensor systems.
Express 7000 HSM Card has been found to be The software is held on a server back at base, compatible with the upgraded RTGS System in
to match patterns of common movements.Windows 2008 server environment. This HSM card
Because this technology will make central will be supplied by M/s.Safenet India Pvt. Ltd.monitoring possible with workers at several
Source :www. Rbi.org.indifferent locations, businesses especially are very
interested in using such technology to improve the Finance minister Pranab Mukherjee said the efficiency of their workers.
government will take steps to make the rupee fully (Source: Economictimes.indiatimes.com)convertible in a calibrated manner so that
mechanisms can be in place for tackling any adverse Global IT expenditure is expected to rise this impact. The full convertibility of the Indian currency year for the first time since the onset of the means that the rupee would be made freely downturn, according to industry analyst. exchangeable into other currencies and vice versa.
CIO attitudes towards IT spending vary by country The rupee was made partially convertible in 1994. and vertical industry, yet some important Currently, it can be changed freely into foreign commonalities have emerged. The rising sentiment currency for business and trade expenses but not
FINANCIAL / TECHNICAL NEWS
26
e-track
January-March-2010
duped by phishing
links that steal
t h e i r l o g i n
credentials and
other attacks.
The company will route all links submitted to
the site through a filter created to catch links that
lead to malware, the company said on the Twitter that the global economy is starting to show signs of
blog on Tuesday. recovery is having a positive impact on planned IT
"A couple weeks ago, Biz [Stone, Twitter co-budgets in 2010. The perception gap between founder] explained how Twitter users were being forecast and actual changes in IT expenditure has victimized by phishing scams spread primarily widened. IT spending trends vary wildly by region, through links in direct messages," the post said. yet all vertical industries have suffered from lower "Basically, people click the link and bad things IT spending compared to pre-recessionary levels. happen. My team can only detect these scams after Fundamentally, IT spending is trending upwards, malicious links have already been sent out."however most increases, as well as decreases will be
(Source: cnet.com)slight, between 1-5 percent. The vast majority of
enterprises will continue to experience flat budget
growth in 2010. The Federal Communications Commission IT projects that are most likely to be readily wants to help you make sure you get what you pay
green-lighted are those that do not require a forklift for when it comes to broadband.upgrade of existing IT systems and business The agency has launched a new tool that processes, but rather those that make modifications allows consumers to test the download and upload within existing and proven boundaries in an speeds of their broadband connections. The tool, incremental manner and in response to business which can be found at www.broadband.gov, tests changes. wireless or landline-based broadband connections.
(Source: siliconindia news bureau) It also allows consumers to see the latency, the time
it takes for data to be sent from a computer to the Microsoft races to plug IE hole after exploit testing server and back, and jitter, the variability in code releasedthe delay between a computer and the testing server, Microsoft is testing a patch to fix a new hole in that's being detected on their connections. Internet Explorer 6 and IE 7 following the release of
The way it works is that consumers go to the exploit code on the Internet. www.broadband.gov Web site, type in their address, The company will be issuing a patch for the indicate whether they are a home user or business hole before the next Patch Tuesday in about four customer, and then click on a button to begin the test. weeks, if the testing of the patch goes quickly. Within a minute, they can get information on their
(Source: news.cnet.com)DSL and cable modem speeds. The FCC is using
existing speed testing tools from Ookla and a tool Twitter is launching a new service designed to from M-LAB.
stop users of the social-media site from getting (Source: news.cnet.com)
FCC tool collects broadband speed data
Twitter to block malicious links
27
e-track
January-March-2010
Advanced Diploma in Banking Technology-“Batch III”The ADBT course is offered to students with MCA/ BE / B Tech in Computer Science, Electronic and Communication or IT
with minimum 55% marks after a rigorous screening. The course aims at training the students in such a way that they are able to
fulfill the requirements of the employer from the day one without further need of on the job training at the cost of the company. The
Institute prepares students to meet the ever increasing technological and social challenges with its tradition of self-discipline, hard
work and all round personality development. The ADBT aims to bridge the gap between knowledge provided by the formal
educational Institutes and functional requirements of BFI sector.
Our Past Recruiters
Banking Overview- The concept of banking, functions and controls collection and clearing services, alternate delivery channels .of RBI, Monetary policy, role of technology in banking industry, Corporate and International Operations- This section will legal aspects of banking sharpen the skill of assessment of working capital requirement, Financial System- Details of Indian Financial System and concept, methods of financial analysis, corporate / business Credit and also accounting principles, knowledge of financial mathematics, exposure to Forex and International Business etc.financial analysis and accounting. Application Software in Banking Operations- The concept, Retail Banking- This part will give the details of different technology and entire working in Core Banking . customers and accounts of the bank, various modes of remittances,
Advanced Database Management System using Oracle 10g· ·· ··
and Customization, SQL/PLSQL Database Components & Architecture Backup and RecoveryCore Banking Application Software Architecture Oracle Forms 10g, Oracle Reports 10g, Oracle Networking Concepts,Structure,InstallationOnline Services Architecture
Advanced Concept of Operating System Using Linux/Unix· ·· ·· ·· ·
Services, System ServicesBasic and advanced Unix/Linux Commands Advanced Topics in Users, Groups and PermissionsLinux / Unix File System, Client/Server/User Management Essential System Administration ToolsShell Scripting, Workflow Scripting, Groups and Permission Installation and TroubleshootingNetwork Management, Package Management, Kernel System Performance and Security
Salient features of the course Curriculum of banking
Curriculum of IT
Web Concepts and Commercial Networking ··
Web Interface to Core Banking Application SoftwareWeb fundamentals
Commercial Networking ·· ·· ··
Introduction to Switches and Routers Network Configuration Introduction to TCP/IP Implementation & Troubleshooting Various Network Severs ConfigurationWi-Fi Networks
Curriculum of soft skillsThe participants are groomed on goal setting, time management, stress management, communication skills, body
language, social etiquettes and memory improvement etc.
After successful placement of two batches, third batch of ADBT was launched in December 2009 and the
students will pass out in June 2010.
For detailed arrangements, kindly contact: Mr. Pramod Dikshit (Course Coordinator) or Ms. Pratima Trivedi (Co-coordinator)
at :- [email protected]
Banks and IT companies are invited for campus recruitment at the Institute during May 17 – 29, 2010 and benefit from employing trained resources.
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