Professional Documents
Culture Documents
SUBMITTED TO
SUBMITTED BY
MOHIT RANA
ADMISSION NO:- 13GSFC101034
B.COM (H)
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DECLARATION
This is to certify that the project report titled Core Banking Solution is submitted in partial
fulfillment of the requirement of BCOM(HONS) program of School Of Finance And
Commerce and is a original record of the bonafide work carried out by Mohit Rana of
Galgotias at Central Bank Of India.
Mohit Rana
Certificate of Approval
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The following summer project report titled A Study on Core banking solutions for Central
Bank of India is hereby approved as a certified study in management carried out and presented
in a manner satisfactory to warrant its acceptance as a perquisite for the award of bachelor of
commerce (h) for which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the summer project report only for the purpose it is
submitted.
Name of Faculty
Signature
ACKNOWLEDGEMENT
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guide was commendable. He gave me insights to some of the concepts specific to the Banking
Industry and also offered a platform to practically implement those. I was also directly
involved in the appraisal process and also a couple of loans and in the preparation of the
memorandum/process. Then I was given the work where I was told that I will be getting a
rough report from the officials working on the survey from people where they will be getting
the answers to the different surveys allotted by the bank to different officials from the bank to
bring out the review of the customers and people about different questionnaires set up by the
bank and asked me to work under them and ready the report on the percentile of the outcome
of the questionnaires to be done. I was mentioned about this assignment to work upon on the
third week and make a report on it working under the team with the process of their outcome
of the survey done by them and the data brought and collected by them efficiently and
effectively.
WEEK 3, JUNE 15
In the third week I was given the data collected by the officials and their survey on the project
where the questions about the family type, the peoples annual income, their awareness about
the core banking solution of Central bank , their marital status , if they know the core banking
solutions of the central bank how much do they find it affective and why do they think it is
beneficial and how to them were some questionnaires being surveyed and researched to know
about the status of knowledge among people about core banking solutions and its use in the
bank. After collecting all these reports going through them and seeing the samples about the
survey data I was told by my mentor in Central bank to submit the report collected in this
survey by next week with my comments and findings on the study of this survey done and
discuss with them about the survey after analyzing upon the data and interpreting it.
WEEK 4, JUNE 22
In the fourth week I completed the assignment given by the officials made the mini report on
the research and submitted it to my mentor. He discussed me about the survey and heard my
views on the survey, the main outcome being that there were many people aware about the
core banking solutions and their method followed by the Central bank which helped the bank
to collect the awareness and compare it with last years report to see and compare the increase
in the number if respondents on the project of core banking followed by the Central Bank. My
mentor was always available to clarify my doubts. I could also seek the help and guidance of
the working staff and other staff members as and when required for any query. I also studied
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different types of deposit schemes available at Central bank of India and also assisted the bank
in opening of several new accounts. Learning is an ongoing process and I treasure all that
which trickled down to me from the industry experts in the one month of my internship and
would put them to good use as and when required. Being a fresher this enriching experience of
working in an organization as big as Central Bank of India and being able to complete a
project in finance (the area of my interest) successfully, would surely boost my level of
confidence and add on to my knowledge of banking.
INDEX
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Chapter/Seria
Contents
l Number
Page
No.
INTRODUCTION
Executive Summary
12
1.1
Introduction
13
1.2
Background
15
1.3
18
20
2.2
21
2.3
27
2.4
33
2.5
37
RESEARCH METHODOLOGY
3.1 Objective of the study
42
43
45
DATA ANALYSIS
4.1
47
4.2
47
4.3
Table 1 10 (responses)
47-59
Findings
61
5.2
Suggestions
62
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CONCLUSION
6.1
Conclusion
64
6.2
Appendix questionnaires
65
6.3
Bibliography
66
CHAPTER-1
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INTRODUCTION
EXECUTIVE SUMMARY
The present study provides a platform to understand, an effective implementation of Core
banking solution with special reference of Central bank of India. There is a sea change in the
Indian banking sector and financial system as a result of revolution in information technology.
Core banking Solution empowers banks to transform their business, leveraging agile new
generation technologies. Bank has become a modern driven system. core banking solution has
a centralized branch computerization model where the branches are connected to a central
host, which incorporated branch automation module and online multiples delivery channel like
ATM, RTGS, NEFT, ABB, debit cards, tele banking, internet banking etc one roof .core
banking solution are leaving an indelible mark as banks embark on a total overhaul of their
legacy platform. Analysis made with the help of primary data collected from personal
interviews from customer of the bank. The analysis and interpretation will be made by using
suitable statistical tools and techniques in order to arrive a authenticate information about the
core banking services.
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Core Banking is normally defined as the business conducted by a banking institution with its
retail and small business customers. Many banks treat the retail customers as their core
banking customers, and have a separate line of business to manage small businesses. Larger
businesses are managed via the Corporate Banking division of the institution. Core banking
basically is depositing and lending of money. Normal core banking functions will include
deposit accounts, loans, mortgages and payments. Banks make these services available across
multiple channels like ATMs, Internet banking, and branches. Core Banking Solutions is new
jargon frequently used in banking circles of India. The advancement in technology especially
internet and information technology has lead to new way of doing business in banking. Core
banking is general term used to describe the services provided by a group of network bank
branches , bank customers may occurs their funds and other simple transaction from any of the
member. Thus Core Banking Solution is a stride-headed towards enhancing the customer
services through Any-where and Any-time banking. Core Banking Solution (CBS) is one of
the recent developments in the field of banking, and has proved to be very useful. It is a
facility provided by banks in which a person, having an account in one branch, can operate his
account, in another branch. This has become possible, because each account holder is given a
specialized, computerized and unique account number. In simple terms, CBS is a type of
banking, in which a person, who opens a bank account in a particular branch of a bank, will be
a customer of the bank, rather than being a customer of a particular branch. Therefore, he can
transact anywhere, at any time. The prime features of the CBS are that it facilitates banking
operations like ATM's, Electronic Fund Transfers, Tele-banking, and Internet Banking etc.
INTRODUCTION
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During the past 104 years of history the Bank has weathered many storms and faced many
challenges. The Bank could successfully transform every threat into business opportunity and
excelled over its peers in the Banking industry.
A number of innovative and unique banking activities have been launched by Central Bank of
India and a brief mention of some of its pioneering services are as under:
1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift
1924
1926
1929
1932
1962
Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank
continued to introduce a number of innovative banking services as under:
1976
1980
1986
1989
Customers' confidence in Central Bank of India's wide ranging services can very well be
judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also
almost all major corporate houses in the country.
Corporate Vision
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively
contribute to the emerging needs of the economy through consistent harmonization of human,
financial and technological resources and effective risk control systems.
Corporate Mission
To transform the customer banking experience into a fruitful and enjoyable one.
To leverage technology for efficient and effective delivery of all banking services.
To have bouquet of product and services tailor-made to meet customers aspirations.
The pan-India spread of branches across all the state of the country will be utilized to further the
socio economic objective of the Government of India with emphasis on Financial Inclusion.
Employee Welfare
Every organization conducts welfare activities for its employees. The welfare activities in big
bazaar are unique by themselves.
Following are the welfare activities in the big bazaar
1. Award to staff that help in the pointing pilferage
2. Cultural activities to provide scope for their hidden talents
3. Birthday celebrations
4. Long-term service awards
1.2 Background
About Central Bank Of India
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Central Bank of India, established in 1911, was nationalized in the year 1969 and today is a
leading public sector undertaking listed in BSE/NSE.
The organisational structure of the Bank consists of four tiers viz., Central Office (CO), Zonal
Offices (ZO), Regional Offices (RO) and Branches. CO, consisting of various functional
departments deals with mainly policy formulation, setting of targets and monitoring of
performance. The Bank has set up 16 Zonal Offices to exercise immediate supervision and
control over the 78 Regional Offices, which in turn supervise the branches under their
jurisdiction. The Bank has a network of approx. 3602 branches and 219 extension counters,
spread across the length and breadth of the country with presence in all the States and Union
Territories.
The Bank also has specialized branches catering to the specific needs of Retail customers,
Industrial units, corporate clients, Forex dealers, Exporters and Importers, Small Scale
Industries and Agricultural sector. The Bank has sponsorship in 8 Regional Rural Banks
(RRB).
Bank is in the process of implementing Core banking Solution B@ns@24 B@ncs24, from
Tata Consultancy Services Limited. Presently approx. 1220 branches are connected to the
CBS. The Data Center of the Bank and the CBS Project Management Office of the Bank are
located at CBD Belapur, Navi Mumbai
Parameter
01
151506
02
92212
03
243718
04
3546
05
1220
06
34580
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In countries such as India and Hong Kong that were a part of the erstwhile British empire, it is
only recently that core banking has caught on. This is mainly due to the restrictions by the UK
government on free movement of money throughout the region. Also, the IT infrastructure
necessary for such services did not exist in these countries until recently. After liberation from
the UK, the economies of these countries went through a drastic change - thus the demand for
such services increased and the need to meet such demand were met with today's technologies.
Most of the nationalized banks in India for example: State Bank of India, Punjab National
Bank, Central Bank Of India, Allahabad Bank, HDFC and ICICI Bank today supports core
banking. As of 2007, many Cooperative banks in India such as Jain Urban Cooperative Bank,
Kangra Central Cooperative Bank, Udaipur Urban Cooperative Bank, Kollam District
Cooperative Bank, Kerala State Cooperative Bank and Panchsheel Mercantile Cooperative
Bank had started to use and offer centralized core banking too. The three standard software
used are Flexcube from iFlex Solutions, Finacle from Infosys and B@ncs from TATA
Consultancy Services.
In countries such as Japan, core banking is still in its early stages. Although having
autonomous reign over their currency for over half a century, the consumers themselves do not
see much use for such services - low demand, thus less services. It is only within the last
decade that banks started placing ATMs outside the bank premises. Many of the bank services
must be done in person at the account holder's registered branch. Japanese banks rely heavily
on paperwork and physical evidence, such as the personal chop or Inkan - thus rendering core
banking impractical. Implementation of CBS phase II is scheduled started shortly and all
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the remaining branches (approx. 2500) were brought under CBS platform by December2010
CHAPTER-2
CORE BANKING
SOLUTIONS
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To make enquiries about the balance; debit or credit entries in the account.
To deposit cheques / cash into account of some other person who has account in a CBS
branch.
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To transfer funds from his account to some other account his own or of third party,
provided both accounts are in CBS branches.
To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount
shall be online debited to his account.
Customers can continue to use ATMs and other Delivery Channels, which are also
interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc.
shall also continue to be available. Bank is in the process of launching Internet-banking
facility shortly.
All these aim to provide convenient, efficient, and high quality banking experience to the
customers, comparable to world class standards.
improved the efficiency and accuracy of the branches, the local implementation restricted
customers' use to their local branches and inhibited the introduction of new banking products
and centralization of operations functions. The local implementation prevented the bank from
easily gaining a single view of corporate accounts, and management lacked readilyavailable
information needed for decision making and strategic planning. The advantages in products
and efficiency of the private-sector banks became increasing evident in the late 1990s as CBI
(and India's other public-sector banks) lost existing customers and could not attract the rapidly
growing middle market in India. In fact, this technology-savvy market segment viewed the
public-sector banks as technology laggards that could not meet their banking needs. As a
result, the Indian government sought to have the public-sector banks modernize their core
banking systems. In response to the competitive threats and entreaties from the government,
CBI engaged KPMG Peat Marwick (KPMG) in 2000 to develop a technology strategy and a
modernization road map for the bank. In 2002, bank management approved the KPMGrecommended strategy for a new IT environment that included the implementation of a new
centralized core banking system. This effort would encompass the largest 3,300 branches of
the bank that were located in city and suburban areas.
The Central Bank of India's objectives for its project to modernize core systems include:
The delivery of new product capabilities to all customers, including those in rural areas
Provision of a single customer view of all accounts
The ability to merge the affiliate banks into CBI
Support for all CBI existing products
Reduced customer wait times in branches
Reversal of the customer attrition trend
products include gold deposits (by weight), savings accounts with overdraft privileges, and an
extraordinary number of passbook savings accounts.
Trust, Bank Negara Indonesia, India's Bank Maharashtra , National Commercial Bank (Saudi
Arabia), and Koram Bank (Korea).
TCS has also expanded its US footprint with the opening of its largest resource delivery center
North America (near Cincinnati, Ohio) that can house 20,000 personnel. The company is
seeking license and implement the BaNCs system in North America and recently completed a
major plan effort to ensure that the BaNCs system meets US regulatory and compliance
requirements.
Initial CBI Core Systems Modernization Project
The contract for the initial project was completed in May 2002; 3,300 branches were to be
converted by mid-2007. TCS immediately began a six-month gap analysis effort to determine
the required software changes to the BaNCs system. The changes included installing required
interfaces with more than 50 other systems as well as making enhancements to support the
bank's product requirements. These product requirements were separated by customer segment
to allow the vendor and bank to begin conversions before all the needed modifications were
implemented. They placed a priority on the needed changes that would allow branches with
high-net-worth individuals and then corporate accounts to be converted as soon as possible.
Before the first conversion in August 2003, TCS and HP created the data processing
environment for CBI. The primary data center was established on the outskirts of Mumbai and
a backup center. After the second round of changes, the system and processes were functioning
smoothly, and management believed the branch conversion could be accelerated. An assembly
line approach was then employed in April 2006 to speed the branch conversion process:
Branch personnel were responsible for data scrubbing and cleaning of their customer
information on the existing system.
Branches were notified three months prior to their conversion date to begin "mock," or test,
conversions using a specially created test version of the BaNCs system.
Network Architecture
Like any corporate network architecture the CBI network is also based on the principles of
stability, security, scalability, performance and simplicity. As the following illustration makes
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clear, the Networked Banking pool is linked to the Stakeholders, Customers and prospects.
This network Pool interfaces with the Shared Operation Centers which in turn interact with
Operating Units. The Operating units in turn interact with the associate Banks, RBI and
Treasury and Risk Management. All the common input after validation is then handled by the
Corporate Office.
consumer. OMNI Enterprise uses a full featured message queue for store and forward (SFA)
processing, whereby messages are received at intermediate routing points, recorded (stored),
and then Intel Xeon processors for superior performance and availability, protected by a
firewall. The second layer of the solution consists of a demilitarized zone that consists of
servers that enable access to different delivery channels, such as the web server, FTP server,
Telnet server and VPN server.
Physical Architecture
Distributed Systems Components
In general the Distributed Systems Components suffice for usual needs. But for The Central
Bank of India such a structure will have limited scalability. Usually the general structure is as
shown in the following illustration.
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To overcome the shortcomings of the model mentioned above a new model based on the
general one was designed which was later implemented. Thus came CBS or Core Banking
System
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Today the technology driven banks are finding various means to reduce costs and reach out to
as many customers as possible spread over a diverse area. This has led to using multiple
channels of delivery of their products.
Mobile banking
Mobile banking (also known as M-Banking, banking, SMS Banking etc.) is a term used
for performing balance checks, account transactions, payments etc. via a mobile device such as
a mobile phone. Banks can now help a customer conduct certain transactions through the
Mobile Phone with the help of technologies like WAP, SMS, etc,. This helps a bank to
combine the Internet and telephone and leverage it to cut costs and at the same time provide its
customer the convenience. Thus it can be seen that tech savvy banks are tapping all the above
alternative channels to cut costs improve customer satisfaction.
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Net Banking
Net banking means carrying out banking transactions via the Internet. Thus the need
for a branch is completely eliminated by technology. Also this helps in serving the customer
better and tailoring products better suited for the customer
A customer can view his account details, transaction history, order drafts, electronically
make payments, transfer funds, check his account position and electronically communicate
with the bank through the Internet for which he may have wanted to visit the bank branch.
ATM (Automated Teller Machine)
How ATMs Work
You're short on cash, so you walk over to the automated teller machine (ATM), insert your
card into the card reader, respond to the prompts on the screen, and within a minute you walk
One significant aspect to the core banking architecture is that only the necessary
permissions are granted to individual officers. This is done to prevent mishaps or though
unlikely, deliberate hijack attempts from within the network. The isolation of the intranet from
the Internet is also a similar step to increase the security of the network. Each of the branches
are connected by the WAN which in this case is not through the Internet but an entirely new
infrastructure altogether. This private secure network is used to relay between the nodes at the
different branches. The data flowing out of the branches is not immediately stored into the
main servers but remain in a data pool. This data is then reviewed automatically by auditing
software and if passed the data is stored in the main servers. Even then this data can be
modified by the network administrators but it would require the security credentials of the
Chief Officer, Information Security, State Bank of India. As a result the data security of such a
network can be assured.
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Illustration: Data Transfer Interface between secure server and the Internet
Security Architecture
Security is perhaps the most important aspect to the network architecture. In banking system
secure transfer of data is not only desirable but indispensable. What would Core Banking be
without proper security? It would have just become another failed and hacked network like
millions of others, leading to the loss of billions of rupees and possibly the destruction of the
Indian economy. To better protect the security a policy of crafted principle are used, which
taken together are named as Information Systems Security. It is a pillared architecture as
shown in the illustration below.
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Organizing Structure of IT
Enabler
Information Security Department
Assess risks
Define Policies, and develop Standards and Procedures
Provide training & awareness
Deploy & manage security products
Define security architecture for network, databases & applications: Secure
Configuration Docs
Enforcer
Application Owners /Business Owners/System administrators / IT Personnel
procedures
Report Incidents
Act on Security Logs
Auditor
Inspection & Management Audit Dept.
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Features
Online banking solutions have many features and capabilities in common, but traditionally
also have some that are application specific. The common features fall broadly into several
categories
1. Transactional (e.g., performing a financial transaction such as an account to account
transfer, paying a bill, wire transfer and applications apply for a loan, new account,
etc.)
Electronic bill presentment and payment - EBPP
Funds transfer between a customer's own checking and savings accounts, or to another
2.
3.
4.
5.
customer's account
Investment purchase or sale
Loan applications and transactions, such as repayments of enrollments
Non-transactional (e.g., online statements, check links, co browsing, chat)
Financial Institution Administration
Transaction approval process
Wire transfer
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Signature based online banking where all transactions are signed and encrypted
digitally. The Keys for the signature generation and encryption can be stored on
smartcards or any memory medium, depending on the concrete implementation.
Attacks
Most of the attacks on online banking used today are based on deceiving the user to
steal login data and valid TANs. Two well-known examples for those attacks are
phishing and harming. Cross-site scripting and key logger/Trojan horses can also be
Countermeasures
There exist several countermeasures which try to avoid attacks. Digital certificates are
used against phishing and harming, the use of class-3 card readers is a measure to avoid
manipulation of transactions by the software in signature based online banking
variants. To protect their systems against Trojan horses, users should use virus scanners
and be careful with downloaded software or e-mail attachments.
The easiest method is still prevention of any infection. The clients are only disk less
nodes without any CD/DVD or Flash drive. Only the server is equipped with a hard
disk. So a chance infection spreading from the client to the server is not possible.
The Intranet is completely separated from the Internet by the DMZ or Demilitarized
Zone, hence keeping the network safe from any outside interference.
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FNS provides end-to-end, integrated solutions for the banking and finance industry around the
world. Headquartered in Sydney, Australia, the company addresses business opportunities
across Europe, Asia Pacific, Africa, Latin America and the Middle East through established
regional offices in London, Seoul, Manila, Jakarta, Kuala Lumpur, Hong Kong, Dubai,
Santiago and Johannesburg. From 27 January to 21 February 2003, a multi-disciplinary team
worked to demonstrate the scalability and performance of the FNS solution, BANCS, within
a Windows server environment. Traditionally, COBOL- based critical banking software such
as BANCS, runs on a mainframe or in a UNIX environment, rather than a Windows
environment, and a benchmark study of this type had not been attempted previously. We
already have eight live banking sites operating smoothly using a Windows back-end, so we
knew first- hand that BANCS running on Windows was saleable and robust, said Dean
Matheson, product development manager, Delivery Channels and Windows at FNS. However
we wanted to quantify and validate that performance using rigorous and controlled conditions
where the application and architecture could be pushed to their limits. The BANCS solution
automates core banking functions such as deposit processing, loans processing, loan workflow
management, contingent account processing, cash accounting, electronic file transfer (EFT)
witch management, department collection and other automated banking transactions integrated
across ultimo- delivery channels. For the benchmark, only the deposit and loan processing
modules were used. The target was to reach workloads of 500tps (transactions per second)
under Online Transaction processing conditions and 10 million accounts per hour under Batch
Processing conditions using a Microsoft SQL database populated with 12 million test user
accounts.
Built and Deployed Using Micro Focus Technology
A 16-processor IBM series 440 was used for the FNS BANCS solution, while an 8-processor
IBM series 440 was used for the Microsoft SQL Server 2000 database. Micro Focus
Application Server was used to deploy the COBOL-based FNS BANCS solution within the
Windows environment.
BANCS is a multi-process application that was built using the Net Express COBOL
development environment and component business object techniques. Written in COBOL with
millions of lines of code, FNS solution is easily portable
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across platforms such as mainframe, UNIX and Windows and is interoperable with Java
and .NET.
Benefits
Solution benefits the new core system has resulted in benefits throughout the bank for both
the customers and the employees of SBI. For example, the new core banking system has
allowed the bank to redesign processes. It established 400 regional processing centers for all
metro and urban branches that have assumed functions previously performed in the individual
branches. The bank recently reported that business per employee increased by 250% over the
last five years. The bank has achieved its goal of offering its full range of products and
services to its rural branches. It delivers economic growth to the rural areas and offers financial
inclusion for all of India's citizens. Implementation of the TCS BaNCs system has provided the
bank with the ability to consolidate the affiliate banks into CBI. The bank has reversed the
trend of customer attrition and is now gaining new market share. Completion of the core
conversion project has also allowed the bank to undertake several new initiatives to further
improve service and support future growth. These initiatives include the deployment of more
than 3,000 rural sales staff, redesign of over 2,200 branches in the last fiscal year, opening of
more than 1,000 new branches, establishment of a call center, and an active plan to migrate
customers to electronic delivery channels. The improvement in productivity and growth of
business for the SBI Group is reflected in the picture.
Reduced transaction time Enterprise significantly reduces a banks mean transaction time. The
solutions single transaction engine (capable of providing n-level parallel processing) and
multiple integrated banking modules, banks can provide faster approval of loans, credit cards,
balance limits, etc. It is certified and tested to support more than 150 banking transactions per
second. When operating on servers running on powerful Intel XeonTM processors, the
Enterprise solution maintains a significantly higher mean number of transactions per second.
Increased delivery channels
Deploying the multi-channel EEnterprise solution means that the bank can offer a number of
its services through different, non-traditional delivery channels to the customer aside from its
branches. These include Internet banking, ATMs and mobile banking, to name just a few. Indepth customer understanding with its holistic view of customer interface history with the
bank, the Enterprise solution gives banks a better view of the customers banking needs, and
allows them to offer personalized, user-friendly and intuitive service packages to its customers.
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The major objectives of bank automation are better customer service, flawless book keeping
and prompt decision-making that leads to improved productivity and profitability. The concept
of bank automation started in the year 1981, but it was during the period 1984-1987 banks in
India started the branch level automation, making use of the then available MSDOS based
stand-alone computers. Another committee was in 1988 under the chairmanship of Dr. C.
Rangrajan, the then Deputy Governor of RBI to slate down a perspective plan on automation
of banks for a five year period. This paved way to the implementation of multi-user Total
Branch Automation packages running on a LAN (Local Area Network) either on a Network or
a UNIX operating system. With the implementation of TBA, banks started to offer the
facilities of exclusive Customer Terminal, Single window transaction, on-line and off-site
ATMs, Tele-Banking etc.
But with the advent of new generation private sector banks in India during 1994-1996,
the real era of bank marketing started and these banks started to offer anywhere and anytime
banking facilities to its customers. This was possible for them mainly owing to the fact that
they opted for the implementation of a WAN (Wide Area Network) based centralized banking
solution rather than a LAN based branch solution to network their limited number of branch
banking solution to network their limited number of branch outlets.
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Bank profile
Central Bank of India was established in the year 1911. The bank was the vision of Sir Sorabji
Pochkhanawala. Out of 29 states, CBI has presence in 27 states and in 4 union territories. It
has a network of 3656 branches and 178 extension counters.
Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the Bank was the ultimate
realization of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride
felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of
the nation and the country's asset'. He also added that 'Central Bank of India lives on people's
faith and regards itself as the people's own bank'.
In 2008 Central Bank of India entered into distribution tie up with Kotak Mahindra Asset
Management Company. Under this agreement it will offer entire products of Kotak Mutual
Fund products from the bank's branches.
Central Bank of India has signed a Memorandum of Understanding with WMG, an Academic
Department, University of Warwick. The MOU provides for several areas of cooperation
including provision of fasttrack loans for Indian students studying at WMG and the building
of cooperative relationships between UK and Indian business and also the development of a
low cost housing project.
Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union
Territories in India. Central Bank of India holds a very prominent place among the Public
Sector Banks on account of its network of 3656 branches and 178 extension counters at
various centres throughout the length and breadth of the country.
Product and services
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Individual and NRI CBI offers wide range of product and services such as saving account,
deposits, mutual funds, debit card, credit card, NRI account, Money transfer facility,
Remittance facility, various loan facilities, senior citizen account, etc.
Corporates To corporates it offers various products and services such as corporate accounts,
loans, RTGS, NEFT, CMS, etc.
Rural In order to provide financial assistance it offers products and services catering its
various requirements.
It also has two subsidiaries namely Centbank Financial & Custodial Services and Centbank
Home Finance. Centbank Financial & Custodial Services provides specialised services and
facilities to protect investments and estates during owner?s lifetime and dispose them
according to his will or trust.
Centbank Home Finance provides financial assistance for construction, purchase, extension
and renovation of house.
Milestone
In the year 1921 bank introduced Home Savings Safe Deposit Scheme to build
saving/thrift habits in all sections of the society.
In 1926 it introduced Safe Deposit Locker facility and Rupee Travellers' Cheques.
1980 Central card, the credit card of the Bank was introduced.
1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its
headquarters at Bhopal in Madhya Pradesh.
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1994 Quick Cheque Collection Service (QCC) & Express Service was set up to
enable speedy collection of outstation cheques.
The bank turned of 100 years in 2010, started on 21st December 1911by Sir Sorabji
Pochkhanwala.
2010 Central Bank of India has launched a new facility named CentFast2India
2011 Central bank of India launched Cent Double scheme that is designed to offer double the
money deposited by the depositor, in sevenandahalf year.
In 2011, Department of official language, Ministry of Home Affairs presented second prize to
Dr. Ram S.Sangapure, General Manager of MMZO of Central Bank of India for the best
implementation of official language in Zonal office.
In January 2011 Central Bank of India was awarded SKOCH Award for its outstanding
performance in JEEVIKA Project in Bihar. The Bank has made major contribution in socio
economic growth of underprivileged population living below the poverty line in the State
through Self Help Group.
2012 Central Bank of India has won the prestigious GOLDEN PEACOCK HR
EXCELLENCE AWARD
SKOCH FINANCIAL INCLUSION AWARD for REACHING LAST MILE on
FINANCIAL INCLUSION DAY 2013 conferred on Bank
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CHAPTER-3
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
3.1 OBJECTIVE OF THE STUDY
The present objectives of the study are as follows To understand the effectiveness of Core Banking Solution in CBI, Dehradun
To know the impact of Core Banking solution on Bankers and customers of CBI
To analyze the Banking service provided to the CBI customers in India;
To examine the risk factors involved in Core Banking Solution in CBI; and
To offer few suggestion and measures to reap maximum benefits from Core Banking
Solution to the CBI customers.
SCOPE OF THE STUDY
The present study focused on Core Banking Solution of CBI, Dehradun . It covers the Core
Banking
Solutions silent feature, its impact on customers progress and Core Banking Solution in
current period. In Dehradun CBI branch has about 5842 numbers of customers for this study.
The sample is taken about 50 in numbers, the respondent are select randomly on the basis of
their income level and not covers the other banking services like Tele Banking, Mobile
banking, E-banking etc.
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Questionnaire Plan: I have used structured questionnaire for gathering the required
information through contacting respondent personally.
Types of Questions:
i) Close ended questions
ii) Likert Scale
LIMITATION OF STUDY
The study was restricted to a bank, so the competitive scenario could not be studied.
Inadequate time was the major constraint during the whole project.
Due to security concerns only read-only access to the data was encouraged.
Confidential data were not allowed to access.
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CHAPTER 4
DATA
ANALYSIS
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01.
Particulars
Gender
In
Respondent details
Male
Female
TOTAL
16-20
21-25
25-35
Respondent
32
18
50
02
17
17
Percentage
64
36
100
04
34
34
02.
Age
03.
04.
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35-45
45-55
55and above
TOTAL
Graduate
Qualification Post Graduate
Professional
Others
TOTAL
Business
Employee public sector
08
06
00
50
16
12
00
100
24
27
46
52
00
00
50
10
05
00
00
100
20
10
10
20
Professional
Others
TOTAL
Below 100000
100000-300000
300000-500000
500000-1000000
1000000 and above
TOTAL
Married
Unmarried
10
15
50
03
06
14
14
13
50
18
29
20
30
100
06
12
28
28
16
100
36
58
Married Single
Divorce
Widow
TOTAL
03
00
00
50
06
00
00
100
Occupation
05.
Annual
Income
06.
Marital
Status
No
100%
Fig2.1
Inference
The above table shows that among the 50 respondents, all 100% of respondents are aware
about the CBI core banking solution in Indian banking sector. Because of the effective
implementation of core banking service in CBI branches throughout the India.
Table 3. Satisfaction of CBI Core Banking Solution
Particulars
Number of Respondents
Strongly Agree
06
Agree
29
Neither Agree Nor Disagree 10
Disagree
05
Strongly Disagree
00
TOTAL
50
Source: Survey Data
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Percentage (%)
12
58
20
10
00
100
Strongly Agree
Agree
Disagree
10%
12%
20%
58%
Fig3.1
Inference
From the above table it is known that among 50 respondents, the satisfaction towards CBI
Core Banking Solution is 12% of respondents are of having Strongly Agree, 58% of
respondents are of having Agree, 20% of respondents are of having Neither Agree Nor
Disagree and the rest of the 10% of respondents are of having Disagree about the CBI Core
Banking Solution.
Table 4. Benefits CBI Core Banking Solution
a)
Beneficial
YES
NO
TOTAL
06
12
20
10
04
100
Time Saving
Easy transaction
More Convenient
Multi-Currency operation
Others
10%
4%
30%
20%
12%
6%
18%
Fig4.
Inference
From the above table it is known that among 50 respondents, benefits towards CBI Core
Banking Solution is 30% of respondents are of having it is Any where any time banking, 18%
of respondents are of having it is Time Saving, 06% of respondents are it is Low Cost
services, 12% of respondents are CBS is easy transaction, 20% of respondents are it is More
Convenient,10% of respondents are it is Help to capable of supporting Multi-Currency
operation and the rest of the 04% of respondents are of having others benefits from Core
Banking Solution.
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Percentage (%)
20
50
14
10
06
100
Effective
Ineffective
10%
6%
20%
14%
50%
Fig5.1
Inference
From the above table it is known that among 50 respondents, the effectiveness towards CBI
Core Banking Solution is 20% of respondents are of having strongly effective, 50% of
respondents are of having effective, 14% of respondents are of having Neither effective Nor
ineffective and the rest of the 06% of respondents are of having Strongly not effective about
the CBI Core Banking Solution.
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NO
34%
66%
Fig6.1
Inference
From the above table it is known that among 50 respondents, using towards CBI Core
Banking Solution is 66% of respondents are CBS is more effective compare to traditional
banking and rest of the 34% of respondents are CBS is less effective compare to traditional
banking.
Testing Of Hypothesis
1. H02: Core Banking Solution has no significance difference between other banking
services. Ha2: Core Banking Solution has significance difference between other
banking services.
Of
33
17
Ef (Of-Ef)2
25 08
25 -8
(Of-Ef)2 /Ef
(Of-Ef)2 /Ef
2.56
2.56
5.12
X2 = (Of-Ef) 2/Ef
Degree of freedom (df) = (n-1)
Where
X2 = chi-square test
OF = Observed frequency
EF
Expected
frequency n= Number
of items
df =Degree of freedom
Inference
The table value of X2 for the 1 degree of freedom 1 at 5% level of significance is 3.873. The
calculated value of X2 is 5.12 which is much higher than the table value and hence the result
of the experiment does not support hypothesis (H 0). Thus we can conclude that the null
hypothesis is rejected.
2. H01: Core Banking Solution has no effect on the CBI customers.
Ha1: Core Banking Solution has strongly effective on the CBI customers.
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ineffective
Ineffective
Strongly not effective
TOTAL
07
05
03
50
14
10
06
100
Effective
Ineffective
10%
6%
20%
14%
50%
Fig9.1
Ef
10
10
10
10
10
(Of-Ef)2
00
15
-03
-05
-07
(Of-Ef)2 /Ef
00.0
22.5
00.9
02.5
04.9
30.8
/Ef
Degree of freedom = N-1 i.e. 5-1= 4
Inference
The table value of X2 for the degree of freedom 4 at 5% level of significance is 9.488. The
calculated value of X2is 30.2 which is much higher than the table value and hence the result of
the experiment does not support hypothesis (H 0). Thus we can conclude that the null
hypothesis is rejected.
CHAPTER 5
FINDINGS AND SUGGESTIONS
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it is anywhere any time banking, time saving and more convenient to the customers.
6) 66% of the respondents believe that Core Banking Solution is more effective than other
banking services provided by the banks.
7) 100% of the respondents are happy with the benefits provided through CBS because of its
implementation in all branches of CBI.
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5.2 SUGGESTIONS
1. Rural Customers of the bank are less aware of the concept of core banking so employees of
the bank are suggested to conduct some awareness program with respected to core banking.
2. Customers should be educated with respect to all the benefits available with the core
banking.
3. Some suggestions were given to the employees of the bank to educate & increase the
awareness among customers. The following are the details All the details with respect to core banking should be displayed at the Counter hall so that
the customers come to know the procedure instead Of wasting their time.
Customer meet should be held in the branch to introduce the product and its utilization for
customers as a mass practical campaign.
Detailed scheme broachers should be held at branch counters which helps the customers to
read leisurely.
4. The growth percentage would further be increased if the bankers are given effective and
complete training on core banking and also by educating and increasing the awareness level
of core banking solution to the customers of the bank.
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CHAPTER 6
CONCLUSION
6.1 Conclusion
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The implementation of the Tata Consultancy Services (TCS) BaNCs system at the Central
Bank of India (CBI) represents the largest core systems project ever undertaken. The success
of this project should encourage other large banks to begin projects to modernize their core
systems. The use of a UNIX-based platform to process more than 100 million accounts daily
demonstrates that tier 1 banks can use a mainframe alternative for their core processing.
Although Tower Group expects that the majority of these banks will continue to rely on the
IBM mainframe for core processing, they can fully consider the benefits of utilizing a UNIXbased platform. CBI's achievement demonstrates that attention to critical factors is crucial in
implementing new core systems. The bank's senior management commitment, business line
involvement, project team staffing and empowerment, and extensive employee training were
all key contributors to the success of the project. Management also recognized the need for a
proven systems integrator that possessed in-depth expertise in both business and technology.
Core systems modernization has allowed the Central bank of India to centralize computer
processing and operations functions, offer new banking products to all the citizens of India,
reverse a trend of customer attrition, and consolidate its affiliate banks. Additionally, the bank
can now further expand its product offerings and improve customer service.
The study was conducted to understand the performance evaluation of Core Banking Solution
in CBI: An empirical Evidence of aryanagar branch. In a country like India, there is a need
for providing better and cost efficient banking services to public. To the objective of the
survey, the response has been collected from Banker and 50 customers of the CBI, aryanagar
Branch. An analysis was being made an introduce Core Banking Solution which helped in
knowing the growth of CBI Bank. This shows that the introduction of Core Banking Solution
has made a significant impact on the CBI aryanagar Branch. The growth percentage would
further be increased in the bank are given effective services on Core Banking Solution and
also educating and increase awareness level of CBS to the customer of the CBI bank.
Everything has been taken into account to judge the CBS is the effectiveness. To conclude
with the concept of Core Banking Solution has made a significant effect of core bank at
aryanagar branch. Main aim of the survey is to create the awareness in the Core Banking
Solution and encourage them to use CBS in CBI.
6.2 Appendix:
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Sample Questionnaire:
Name:
__________________________
Gender: __________
Qualification: ___________________________
Age:
_______
Occupation: ___________________________
________________________________________________________
1) What is your family type?
a) Nuclear
b) Joint
c) Others
c) 300000-500000
b) Unmarried
c) Divorced
b) No
d) Disagree
e) Strongly Disagree
6) Do you agree that CBI Core Banking Solution is effective?
a) Strongly Agree b) Agree
d) Disagree
e) Strongly Disagree
7) CBI Core Banking Solution is beneficial due to?
a) Any where anytime banking
d) Easy Transaction
6.3 BIBLIOGRAPHY
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b) Time Saving
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