[ronnierules]

j) Intra-Bank & Inter-Bank applications: -

Computerization is now all pervasive in banks. Almost all the activities in a bank can be performed more efficiently with the help of computers. Broadly, we can divide the applications of computerization in banks in two types:

I. Intra-Bank Applications: -

i) Funds transfer and payment message
ii) Banks owned ATM/Credit Card and other application on the corporate network
iii) Inter-Branch Reconciliation
iv) Quick disposal of loan/investment proposal
v) Funds information from clearing centers to the fund management office for optimal allocation of funds.
vi) Cash Management Product
vii) Treasury Management
viii) Any Branch Banking
ix) Asset Liability Management
x) E-mail
xi) Software distribution in the bank
xii) Organizational bulletin boards may contain the following:
a. Circulars
b. Newsletters, phone and address directories
c. Undesirable parties
d. Missing security items
e. Confidential circular on attempted frauds.
xiii) Human Resources Development and Personnel Administration
xiv) Auditing and Inspecting computerized branches using the network
xv) Organizational database may include:
a. Statutory returns
b. Control returns
c. Standardized returns
xvi) Management Information Systems:
a. Borrower’s profile
b. Branch profile
c. Employee analysis
d. Product/service profile
e. Business profile of branches.
xvii) Apart from providing efficient service to customers the financial network will also fulfill the following objectives:
a. Timely information to top management
b. Helping in development of new products
c. Speedy communication among branches and with the controlling offices.

II. Inter-Bank Applications: -

i) Electronic Funds Transfer:
a. Retail EFT (Small value credit transfer) on net settlement basis.
b. Wholesale EFT (Large value credit transfer) on Real Time Gross Settlement (RTGS) basis for time critical payments.
ii) Clearing and settlement systems for securities – Delivery vs. Payment (DVP). The final delivery of securities will occur if and only if final payment occurs.

iii) Transferring balance from net settlement systems to RTGS Server at periodic intervals. The net obligation could be from:
a. Local paper-based clearing
b. Inter-city paper-based clearing (including IT discounting facilities)
c. Bulk payments – ECS (Debit, Credit, RAPID) including intercity.
d. Shared ATM networks
e. Smart cards and other pre-paid/pre-authorized debit cards
iv) Exchange of defaulting borrowers list among RBI and banks
v) EDI services to the extent they pertain to payment cycle to EDI (Electronic Data Interchange)
vi) Consolidation of current account balance from the existing DAD (Deposit Accounts Department in RBI Offices) applications synchronously/asynchronously to facilitate balance enquiry by banks on all India/center-wise basis and if necessary to activate transfer of funds among DADs at different centers.
vii) Reporting of government account transactions
viii) Reporting of BSR (Basic Statistical Returns) etc. to RBI
ix) Asset Liability Management
x) Intranet in RBI to enable banks to get circulars, press releases etc.
xi) Returns to be submitted by the banks to Departments of Banking Supervision (DBS) for off-site supervision and monitoring.