WELCOME TO HCIL - LIVE VIRTUAL CLASSROOM 03.04.2007 JAIIB-PRINCIPLES OF BANKING - MODULE C -

1. WELCOME TO HCIL - LIVE VIRTUAL CLASSROOM 03.04.2007 JAIIB-PRINCIPLES OF BANKING - MODULE C - BANKING TECHNOLOGY BY - Dr.Firdos T.Shroff, Jt.Director (Faculty-Academics),IIBF,Mumbai

2. JAIIB-MODULE C • IIBF – Latest Edition – Taxmann Publications Pvt.Ltd., Price Rs.345/- • JAIIB - Work Book on Principles of Banking; Accounting & Finance for Bankers and Legal Aspects of Banking • The Work book is intended to assist students appearing for JAIIB examination to gain an understanding on the type of questions that will be asked in the three subjects of JAIIB. • In this new, easy-to-read format, objective type questions are introduced in a non-specialist context for the benefit of candidates. Throughout the book, examples and self-check questions are used to test the reader’s ongoing understanding of the essential concepts of the different subjects. • Written by experts in the field of banking, the book includes caselets and questions on the practical situations from the examination point of view with answers and explanations. • Though the Work book is mainly oriented towards students, this can be essential reading for bankers also.

3. JAIIB-MODULE C • The Class is divided into Three Parts - • Part I : Broad Syllabus Outline • Part II : Presentation on Advancements & innov@tions in Banking Technology • Part III : Model Question Bank (Objective type Multiple choice)

4. JAIIB-Module C-SYLLABUS • Different approaches to bank mechanisation – Core Banking Solutions • -Stand alone computer systems - Wide area and local area networks - • local processing and batch concepts; on-line systems - Mini computers • and Main Frame networking systems.

5. JAIIB-Module C – Syllabus(contd.) • Electronic Payment systems - Teller Machines at the Bank Counters - • Cash dispensers - ATMs - Anywhere Anytime Banking - Home banking • (Corporate and personal) - Online enquiry and update facilities

6. JAIIB-Module C- Syllabus(contd.) • Electronic funds transfer systems - plain messages (Telex or data • communication) - structured messages (SWIFT, etc...) - RTGS • Information Technology - Current trends - Banknet, RBI net, Datanet, • Nicnet, I-net, Internet, E-mail,

7. JAIIB-Module C-Syllabus (contd.) • Role and uses of technology • upgradation - Global developments in Banking Technology - • Information Technology in finance and service delivery. Impact of • Technology on Banks - Protecting the confidentiality and secrecy of • data - effect on customers and service quality- • Audit trails - Rangarajan, Saraf and Shere Committee Recommendations.

8. JAIIB-Module C- Presentation • Electronic Funds Transfer (EFT) • Special EFT • EFT-Point-of-Sale (POS) • Electronic Clearing Service (ECS) – Credit Clg. & Debit Clg. • Cash Dispenser & Automated Teller Machines (ATMs) • Shared Payment Network Systems (SPNs) (SWADHAN)

9. JAIIB-Module C-Presentation • BANKNET • COmputerised Message Transfer (COMET) • Very Small Aperture Terminal (VSAT) • Regional Grid Clearing – Collection of Outstation Cheques • Credit Cards/Debit Cards • Plastic Card / Smart Card / e-Purse • Laser Card

10. JAIIB-Module C-Presentation • Cheque Cards • Terrestrial Microwave Radio Transmission • Satellite Microwave (Geo-Stationary Satellite) • Communicaiton through use of Optical Fibre Technology • NET (Packet Switched Public Data Network) • HVNET (High Speed VSAT Networks • Teleconferencing • Internet Banking • Virtual / Digital / e-Sign Signatures in Banking • Cheque Clearing using Magnetic Ink Character Recognition (MICR) Technology – Facilities for paper based clearing

11. JAIIB-Module C-Presentation • Cheque Truncation • ‘SmartQuill’ Computer Pen • Salient features of RTGS – Real Time Gross Settlement • RBI-Payment & Settlement Systems Vision 2005-08 • Retail Payment System • Online Tax Accounting System (OLTAS) • Online Indirect Taxes Accounting System (OLITAS)

12. JAIIB-Module C-Presentation • Electronic Commerce / Electronic Data Interchange (EDI) by banks • IDRBT’s INFINET & Structured Financial Messaging System (SFMS) through internet • IDRBT’s Multi-Application Smart Card based Payment System • IDRBT’s National Financial Switch (NFS)

13. JAIIB-Module C-Presentaiton • Refer various Committee Reports on IT: • RBI-1983 – Damle - Report of the working group to consider Feasibility of Introducing MICR/OCR Technology for cheque processing • RBI-1984-Dr.C.Rangarajan Committee Report on Mechanisation • RBI -1994 – Saraf Committee on “Technology Issues” • RBI-1996 – Shere Committee on “Electronic Funds Transfer & Other Electronic Payments • RBI-1999- Vasudevan Committee on INFINET • RBI-2001- Dr.Mitra Report of the Expert Committee on ‘Legal Aspects of Bank Frauds

14. JAIIB-Module C-Presentation • 2002- Zarir Cama Report of the Working Group on ‘Electronic Money” • RBI-2003- Dr.R.B.Barman,ED,RBI -Working Group on ‘Cheque Truncation and e-cheques’

15. JAIIB-Module C-Model Question Bank • MODEL QUESTION BANK – Multiple Choice Questions • Read IIBF study material/books, Work Book, attend HCIL-LIVE Classes, etc. • Tips for attempting questions • Read the question paper & try to grasp questions carefully • Attempt all Questions – Do not leave any question unattempted

16. JAIIB-Module C • T H A N K YOU! • SPREAD A WORD ABOUT HCIL VIRTUAL CLASSES TO YOUR COLLEAGUES • WISHING YOU ALL SUCCESS IN YOUR EXAMS • Queries, if any, on ‘JAIIB-Module C’ may be sent via email to : • Dr. Firdos T. Shroff,Jt.Director (Faculty(IT) Academics), IIBF, Mumbai • Email: ftshroff@iibf.org.in • For regular updates-visit portal: • www.iibf.org.in