THE EMERGING MORDERN TECHNIQUES USED BY BANKS

1. MORDERN BANKING
TECHNOLOGIES
The term “Banking Technology” refers to the use of sophisticated
information and communication technologies together with
computer science to enable banks to offer better services to its
customers in a secure, reliable and affordable manner and sustain
competitive advantage over other banks.
Use of advanced technology has led to the shift from traditional
banking methods to modern banking methods. Currently, the most
common and useful technology based banking methods are online
banking, Mobile banking, Video banking, Telephone banking,
ATMs, Plastic money and so on.

2. PAYMENT SYSTEMS
A payment system is any system used to settle financial
transactions through the transfer of monetary value, and includes
the institutions, instruments, people, rules, procedures, standards,
and technologies that make such an exchange possible.
The term electronic payment refers to a payment made from one
bank account to another using electronic methods.
 Narrowly defined electronic payment refers to e-commerce—a
payment for buying and selling goods or services offered through
the Internet, or broadly to any type of electronic funds transfer.
One of the examples of modern payments is an instant transfer.
When you can’t wait for the next clearing session and need to
transfer money within seconds

3. E-BOOKING & E-TARIFF
E-booking or e-Booking (electronic booking), refers to making
a reservation or appointment for a service via the internet
At its most basic, an E-booking system is software which allows a
potential customer to book and pay for an activity or service
directly through your website. That means from the moment a
customer decides they want to book to choosing a date, picking a
time and paying for the booking, everything is handled online,
greatly reducing the workload on your staff and removing the
opportunity for double-bookings.
E-Tariffs is an online solution allowing an industry to maintain
and develop multilateral interline fares and rules for systems and
consumers worldwide.
Simplified meeting process, Convenient and easy-to-use
application, Cost efficient - eliminates travel and meeting venue
expenses, Time efficient - eliminates travel time and effort are the
benefit of E-tariff

4. E-BANKING & INTERNET
BANKING
E-Banking or Electronic Banking means conduct of banking
operations through electronic means or devices, such as computers,
telephones, mobile phones, ATMs,etc..
E-banking also means provision of banking products and
services(i.e; banking facilities) by banks directly to customers
through electronic delivery channels.
Internet banking refers to provision of banking services by a bank
to its customers through its website.
Internet banking,ie; bank’s website,acts as an economical means of
advertising their products and services.
They enables customers to have every banking activity which a
customer could do over a bank counter with comforts from his
office/home.

5. ELECTRONIC PAYMENT
SYSTEMS
An electronic payment system is a way of making transactions or
paying for goods and services electronically without using cash or
checks. In order to accept funding and meet customer needs,
companies are accepting payments in many more forms than cash
or checks.
To transfer money over the Internet.
Methods of traditional payment.
Check, credit card, or cash.
Methods of electronic payment.
Electronic cash, software wallets, smart cards, and credit/debit cards.

6. ATM’s
An Automated Teller Machine or Automated Teller Machine,
popularly called cash machine or Any time money is an electronic
machine installed by a commercial bank and operated by the
customer himself, to withdraw money and to make other financial
transactions.
ATM’s are anytime banking, as they provide banking services
round the clock.
TYPES OF ATM’s
On-site ATM
Off-site ATM
An ATM installed at the bank premises is called on-site ATM.
ATM’s installed by the bank at important places, such as
supermarkets, petrol bunks, airports, railway stations, etc.. for the
benefit of all the customers of a bank are called off-site ATM’S.

7. CREDIT AND DEBIT CARDS
Credit cards popularly known as Plastic cards or plastic money,
have become popular in several countries of the world in recent
years.
A credit card is an instrument which provides instantaneous credit
facilities to its holder to purchase goods or services from business
establishments enrolled as members of the credit card system.
A debit card is also a payment card. It is used to obtain cash, goods
or services automatically, debiting the payment’s to the card
holder’s bank account instantly upto the credit balance which exists
in the customer’s bank account.

8. SMART CARD
The chip on a smart card can be either a microcontroller chip or an
embedded memory chip.
Smart cards are designed to be tamper-resistant and use encryption
to provide protection for in-memory information.
Those cards with a microcontroller chip have the ability to perform
on-card processing functions and can add, delete and manipulate
information in the chip's memory.
Smart cards are widely acknowledged as one of the most secure
and reliable forms of an electronic identification (ID) token.

9. ELECTRONIC SIGNATURE
An electronic signature, or e-signature, is a legal way to get
consent or approval on electronic documents or forms.
. One of the most relied upon definitions of an electronic signature
defines an electronic signature as: “…an electronic sound, symbol,
or process attached to or logically associated with a record
…adopted by a person with the intent to sign the record.”
Electronic signatures can be used to replace handwritten signatures
in virtually every personal or business process.

10. MICR CHEQUES
MICR code is a character-recognition technology used mainly by
the banking industry to ease the processing and clearance of cheques
and other documents.
The MICR encoding, called the MICR line, is at the bottom of
cheques and other vouchers and typically includes the document-
type indicator, bank code, bank account number, cheque number,
cheque amount, and a control indicator.
 The technology allows MICR readers to scan and read the
information directly into a data-collection device.
Unlike barcodes and similar technologies, MICR characters can be
read easily by humans
MICR is an abbreviation for “Magnetic Ink Character Recognition”.
The MICR code is a 9 digit code, which is printed at the bottom of
a cheque.
A MICR code is unique to each bank branch. Thus, a MICR
code can be used to uniquely identify any bank branch.

11. EFTS
Electronic fund transfer System
It is a system by which cheques, pay-in slips and other financial
papers are replaced by computer controlled invisible and immediate
transfer of funds from one account to another.
This scheme offers facility for transfer of funds within 24 hours
inter-bank, inter-city.
Remitter and receiver of funds can be from different banks.

12. RTGS
Real Time Gross Settlement
Real Time Gross Settlement is an electronic form of funds
transfer where the transmission takes place on a real time basis.
 In India, transfer of funds with RTGS is done for high value
transactions, the minimum amount being Rs 2 lakh.
The beneficiary account receives the funds transferred, on a real
time basis.
Settlement in "real time" means a payment transaction is not
subjected to any waiting period, with transactions being settled as
soon as they are processed.
Basically, this is a system for large-value interbank funds transfers.
This system lessens settlement risk because interbank settlement
happens throughout the day, rather than just at the end of the day.

14. C0RE BANKING
Centralised Online Realtime Exchange
Core banking is a system which connect all the branches of a bank
or group of bank
Through this system a customer can access his/her account from
any branch of the bank
Details of all the account are centralised and stored in a centralised
manner at a data centre of the bank.
All transactions are reflected instantly in the bank server.

15. BENEFITS OF C0RE
BANKING
It is providing 24/7 services to the customers.
Customers are getting efficient services.
It is faster than conventional banking system.
It improves efficiency of service system from bankers point of
view.
Reduce operational and maintenance cost of time.

16. IN SHORT
Morden banking technologies
Payment systems
E-booking & E-tariff
E-banking & Internet banking
Electronic payment systems
ATM
Credit & Debit cards
Smart cards
Electronic Signature
MICR cheques
EFTS
RTGS
CORE banking and its Benefits

17. THANK YOU