B@NCS24 SOFTWARE SOLUTION

An Industrial Internship Report

Submitted by

ARIHANT

(11BCE0071)

In partial fulfillment for the award of the degree of

BACHELOR OF TECHNOLOGY

In

COMPUTER SCIENCE AND ENGINEERING

VIT
UNIVERSITY
(Estd. u/s 3 of UGC Act 1956)

Vellore - 632 014, Tamil Nadu, India

SCHOOL OF COMPUTING SCIENCE AND

ENGINEERING

NOVEMBER 2014

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 DECLARATION BY THE CANDIDATE

I hereby declare that the Industrial Internship report entitled “B@NCS24

SOFTWARE SOLUTION” submitted by me to Vellore Institute of
Technology, Vellore in partial fulfillment of the requirement for the
award of the degree of Bachelor Of Technology in Computer Science
and Technology is a record of bonafide industrial training undertaken
by me under the supervision of Prabhat Kumar and Govinda K. I
further declare that the work reported in this report has not been
submitted and will not be submitted, either in part or in full, for the
award of any other degree or diploma in this institute or any other
institute or university.

Vellore: Signature of the Candidate

Date: 14th November 2014

VIT
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 UNIVERSITY
(Estd. u/s 3 of UGC Act 1956)

Vellore - 632 014, Tamil Nadu, India

School of Computing Science & Engineering

BONAFIDE CERTIFICATE

This is to certify that the Industrial Internship report entitled

“BANCS@24 SOFTWARE SOLUTION STUDY REPORT”
submitted by ARIHANT (11BCE0071) to Vellore Institute of
Technology, Vellore in partial fulfillment of the requirement for the
award of the degree of Bachelor Of Technology in Computer Science
and Technology is a record of bonafide Industrial Internship undertaken
by him/her under my supervision. The training fulfills the requirements
as per the regulations of this Institute and in my opinion meets the
necessary standards for submission. The contents of this report have not
been submitted and will not be submitted either in part or in full, for the
award of any other degree or diploma in this institute or any other
institute or university.

GOVINDA K
Senior Assistant Professor
Date: 14th November 2014

Internal Examiner (s) External Examiner (s)

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 ACKNOWLEDGEMENT

The extensive endeavor, bliss and euphoria that accompany the successful

completion of the task would not be complete without the expression of gratitude

to the people who made it possible. I take this opportunity to acknowledge all

those who guided, encouraged and helped me in winding up this project.

I am very thankful to Mr. Prabhat Kumar, who gave me guidance throughout my

stint. I would also like to extend my feelings of gratitude towards my faculty

mentor Professor Govinda K, for his constant guidance, support and correcting

where I was wrong. I thank them with full zeal and enthusiasm that they gave this

big opportunity to me.

Place : Vellore
(ARIHANT)
Date : 14th November 2014

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

LIST OF TABLES 6
LIST OF FIGURES 7
LIST OF SYMBOLS 8

1. ABSTRACT 9
2. INTRODUCTION
2.1 ALLAHABAD BANK
2.2 CORE BANKING SOLUTION
3 B@NCS24 SOFTWARE
3.1
3.2
3.3
3.4

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List of Tables

Table 1:
Table 2:
Table 3:
Table 4:

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List of Figures

Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:

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List of Abbreviations:

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1. ABSTRACT

Allahabad Bank is a nationalized bank with its headquarters in Kolkata, India.

It is the oldest joint stock bank in India. It is a retail bank. Retail banking is
when a bank executes transactions directly with consumers, rather than
corporations or other banks. Services offered include savings and
Transactional accounts, mortgages, personal loans, debit cards, and credit
cards. The term is generally used to distinguish these banking services
from investment banking, commercial banking or wholesale banking. It may
also be used to refer to a division of a bank dealing with retail customers and
can also be termed as Personal Banking services.
Allahabad Bank uses BaNCS@24 software to deliver banking services to its
customers throughout the country. It is a core banking software (CBS) suite
developed by Tata Consultancy Services for use by retail banks.
It includes functions for universal banking, core banking, payments,
compliance, financial inclusion, Islamic banking and treasury operations.
There are also modules that deal with capital markets and the insurance
business. Allahabad Bank, among many others is using BaNCS@24 software
to meet their retail banking services. The Software was developed in
COBOL.
The BaNCS product suite for banking, capital markets and insurance enables
business transformation in financial services. Increasing operational
efficiency and helping financial institutions stay agile; it delivers a
competitive edge with unmatched certainty. It has performed better than
established benchmarks.

 The core banking solution from TCS BaNCS on HP Integrity servers

delivered outstanding benchmark results for one of the world‟s largest
retail banks, with online throughput at 10,716 transactions per
Second (TPS) and end-of-month interest capitalization process
conducted in 58 minutes and 47 seconds.
 This core banking solution displayed high scalability using target
volumes on the IBM mainframe. For Online Transaction Processing

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 (OLTP), the highest average TPS achieved (using full configuration)
was 9,445 TPS with an average CPU utilization of 88.6%.

The plug and play, component-based product suite consistently turns in

impressive benchmark results, with a fine-tuned, highly scalable technology
architecture that supports financial institutions with the highest capacities for
transaction volumes, peak transactions per second, and transaction history
size. With such a track record, it is only natural that the retail banks like
Allahabad Bank are using this highly efficient software in delivering banking
services to their customers.
This software is used by the bank executives and employees to search, add,
edit the details of any customer who has an account. They can directly open a
new account, request to delete the already existing ones, ask bank employees
to check balance and much more. The aim of this report is to write in detail
the activities of the software which is an online tool and also discuss in detail
the type of physical forms used by bank for offline filling for various
purposes and keeping physical proof of the same.

2. INTRODUCTION

2.1 ALLAHABAD BANK:

Allahabad Bank was founded by group of Europeans on April 24 1865.

The Allahabad Bank has a history of 3 centuries. The Allahabad Bank is
the oldest joint stock Bank in India. Due to business considerations the
head office of Allahabad Bank was shifted to Calcutta (now Kolkatta) in
1923. In March 2007 the business of Allahabad bank reached to a mark
of 150000 crores. The Chairman and Managing Director of Allahabad
Bank is Sri K.R. Kamath. Sri K.K. Agarwal and Sri J.P. Dua are the
executive directors of Allahabad Bank.
The Allahabad bank offers its services to self-employed persons,
Professionals, salaries employees, businessman.

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 The Allahabad bank offers three kinds of products Deposit products,
Retail Credit Products and Other Credit Products. The Flexi-fix Deposit,
Rs 5 Banking, Tax Benefit Term Deposit are some of the famous
Deposit Products of the Allahabad Bank.
The Allahabad Bank also offers its services to NRI customers. It offers
International Banking facility for its NRI customers. The deposit
schemes, tax benefits schemes, remittance facility, forex services are
offered by the Allahabad Bank. The NRI services are available in 312
branches of the Allahabad Bank all over the country.

Philosophy of the Bank

The highest standards of ethical conduct and honest. accurate, fair, full,
sensible and timely disclosures in reports. Compliance with laws,
regulations and rules.

Vision
To put the Bank on a higher growth path by building a Strong Customer-
base through Talent Management, induction of State-of-the-art
Technology and through Structural Re-organization.

Mission
To ensure anywhere and anytime banking for the customer with latest
state-of-the-art technology and by developing effective customer centric
relationship and to emerge as a world-class service provider through
efficient utilization of Human Resources and product innovation.

2.2 CORE BANKING SOLUTION (CBS):

CBS stands for Core Banking Solution, in which all the products,
processes, channels, customer relationship management are integrated
and administered at the central database connecting all the branches and
head office through communication links to provide a single view of the
bank.

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 The concept behind CBS is to provide:

 Centralised Resource Management, Security Management

 Better Management Control And Monitoring

 Interface to all the Delivery channels/services to enhance customer

satisfaction

 Operational efficiency

 Improve profitability

 Develop Robust MIS, EIS And Regulatory Compliance

3. ONLINE FUNCTIONALITIES (BaNCS@24

SOFTWARE)

The BaNCS, is a Core banking Solution (CBS) from TCS. It manages

end to end operations across all the entities. It is truly browser based
layered security management at application, database and user levels
with inbuilt checks and role-based access management. It provides
solutions that help to deliver personalised services over multiple delivery
channels, while maintaining a collaborative one-to-one relationship with
their customers.

3.1 THE SOFTWARE:

Salient Features:

 Operational ease at low bandwidth consumption

 Reduced turnaround time for transactions

 Allows more time for developing business

 Ability to integrate with the payment system network

 Enables anywhere banking

 It is a browser based solution.

 It is suited for operation on thin clients.

 The solution permits certain basic operations during periods when

the network connectivity is out of commission. On resumption, the
data of the intervening period is uploaded and synchronized.

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 Solution Offerings:

 Entire range of banking products including savings, checking,

overdraft and deposit accounts and lending products.

 Complement of transactional services including remittance,

foreign exchange, cards and trade finance.

 360degree view between banking and customer.

 Accessibility through multiple channels, including mobile

banking and internet.

 Robust MIS and Compliance capability

 Monitoring and reporting of non-performing assets

 Managing Agricultural credit and subsidies

 Standard product delivery and administration across all branches

3.2 OVERVIEW:

The software has been designed by keeping in mind the increased

convergence of financial services, and offers a 360° view of
customers to the bank and vice versa. There is a definite trend
towards adopting modern technologies, best-in-class components,
and their seamless integration in an SOA-enabled infrastructure.
Sales and service orientation, product configuration, bundling and
differential pricing are gaining importance, with banks focusing on
growth, after a period in which the business thrust was on
„operational excellence‟ and „cost management‟. Banks understand
the need to integrate enterprise wide information and move away
from silos to improve risk management, reduce credit risk, and
measure performance. As a result, there is an increased need for a
comprehensive, cost-effective, integrated banking solution that can
provide evolving technology choices, with minimal disruption to
processing and services, while also offering risk management and
compliance tools and capabilities. BaNCS automates every aspect
of a bank's operation by integrating front-, middle-, and back-office
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 processes in real-time. It supports multi-entity, multi-lingual, and
multi-currency operations, at scalable transaction volumes, with
flexible configuration features. The solution offers unparalleled
value with a low Total Cost of Ownership (TCO), as it can be
installed as a complete package, or deployed in extensible modules
completely integrated with existing legacy systems, as per the
footprint and needs of the financial institution. It is a highly
adaptive and scalable platform that supports institutions of every
operational size and complexity, including banks with the largest
customer base in the world.

Figure 1: Overview of the BaNCS Software

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3.3 BENEFITS:

BaNCS is designed around a business model and is specifically

enabled to service the business objectives of customers, products,
and accounts. The strategy adopted for the solution helps create and
use business processes packaged as services, and facilitates the
application to exchange information and participate in business
processes. It enables a more flexible and standardized solution,
which is designed, developed and deployed covering all the
business functionality scattered across IT systems.

BaNCS offers:

 Complete coverage of lines-of-business: Covers deposits,

loan origination and servicing, payments, treasury
management, trade finance, and cards, with functional depth
and market-tested reliability

 Multi-channel integration: Provides a consistent customer

experience across multiple channels with total visibility to
the bank‟s servicing agents, enabling banking „anywhere
anytime‟

 Single view of the customer and the bank: Provides a

comprehensive view of customer activities across lines of
business and access channels, as well as a single view of the
bank‟s products and services to the customer

 Ease of Integration: Provides built-in service integrator

layer to easily integrate with external systems. This can be
done using Web Service, MQ, JMS, http, ftp or any other
industry standard protocol

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Figure 2: BaNCS Expertise

3.4 TECHNOLOGY USED:

BaNCS is based on a flexible multi-tiered architecture consisting of the

presentation layer, business layer, and data layer. The architecture is
message based and compatible with .NET or J2EE channel applications.
Both the presentation logic and the data logic are separated from the
business logic through a component wrapper, allowing for business rules
to be developed independent of the technology. TCS BaNCS runs on a
number of environments such as IBM zSeries, Unix (IBM, HP, SUN),

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 and Windows. The solution is SOA-enabled and optimized for SOA
implementations via an ESB.

Figure 3: BaNCS Software Information

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3.5 CBS NAVIGATION MODULES:

3.5.1 CIF CREATION:

1.1 CREATION OF CUSTOMER:PERSONAL

Customer Management'  Create  Create Personal Customer
1.2 CREATION OF CUSTOMER: NON-PERSONAL
Customer Management'  Create  Create Non-Personal
Customer
1.3 CUSTOMER MODIFICATIONS OR AMENDMENT IN
CUSTOMER’S DETAILS
Customer Management  Amend  Customer Details.
The next field is „Option‟. The drop down here offers the following
options for modification are available:
1: Customer details
2: Temporary Customer Address details
3: Foreign address details.
4: Identification details
5: Personal details
6: Business details
7: Marketing details
8: Financial details
9: Miscellaneous details
1.4 CUSTOMER ENQUIRIES
Customer Management à Enquiries à Search by CIF Number

1.5 SEARCH CAN BE MADE USING OTHER INFORMATION ALSO:

Customer Management  Enquiries  Search by ID Number
Customer Management  Enquiries  Search by Name

3.5.2 DEPOSIT ACCOUNTS:

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 2.1 Opening of a Saving/Current Account:
Deposit Accounts & Services  Create  New Deposit A/c
2.2 Opening of a TDR/STDR/RD/MODS/Saving Plus Account:
Deposit/CC/OD Accounts & Services  Create  New
Deposit A/c
2.3 Deposit Account Modification:
Deposit/CC/OD Accounts & Services  Amend  Amend
Deposit Tabbed Screen
2.4 Closure/ Premature Closure of Deposit Accounts:
Transaction Posting  Deposit/ CC/OD Account Closures 
Closures (Credit Balance)  Transfer
2.5 Printing Statement of Account for a Deposit or CC/ OD
Deposit CC/ OD Accounts & Services  Enquiry 
Statement Print
2.6 Print Balance Slip:
Deposit CC/ OD Accounts & Services  Enquiry  Print
Balance Slip
2.7 TRANSACTION ENQUIRY:
Deposit CC/OD/ Account and Services  Enquiries  Transaction

Select “transaction of this Type” as per the requirement.

Transaction Transaction Name Purpose

Type
99 All Financial For display of Financial transaction only
98 All Cash Transaction For display of cash transactions only.
25 Repayment details of For display of repayment transaction in
CC/OD CC/OD A/Cs
30 Stop Transaction For display of Stop applied/removal
transaction on an account .
31 Hold transaction For display of Hold(Lien) applied/removal
transaction on an A/C.
33 Message Details For display of Message Setting/Removal

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 transaction on an A/C.
34 Dishonoured Cheque For details of dishonoured cheque in an
Details account
40 Term Maturity Details To be used for Term Deposit Accounts.

62 Closure Interest To be used to enquire about closure

Adjustment transactions.
82 Fee exemptions For details of Fee exemptions given on an
account.
90 Dormant account For details regarding Dormancy of an
Narrative account.

Table 1: Brief Description of Mostly Used Transaction types:

2.8 Print New Pass Book:

Deposits CC/OD accounts  Passbook Updates  Print New
Passbook
2.9 Update Deposit Passbook:
Deposits CC/OD accounts  Passbook Updates  Update

3.5.3 TRANSACTION POSTING:

3.1 Cash Payment from DEPOSIT Account by Voucher:

Transactions posting  Deposit/CC/OD Accounts 
Payments  Cash
3.2 Cash Receipts into Deposits Account:
Transactions Processing  Deposits/CC/OD Accounts
 Receipts  Cash
3.3 Cash Payment by Cheque from Deposit Account:
Transactions Posting  Deposits/CC/OD Accounts 
Payments  Cheque

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 3.4 TRANSFER by Cheque from Deposit Account:
Transactions posting  Deposit/CC/OD Accounts 
Transfers  By Cheque to Deposit
3.5 Transfer Transaction in Deposit Account by Vouche:
Transactions Processing  Deposit/CC/OD Accounts 
Transfers  By Voucher to Deposit/Loan

3.5.4 CLEARING MODULE:

4.1 OUTWARD CLEARING:

Stage I: Session Opening::Clearing  Outward
Clearing  Session Maintenance (Action = Open
session)
Stage II: Cheque Deposit::Clearing  Outward
Clearing  Cheque Deposit
Stage III: Close Session::Clearing  Outward
Clearing à Session Maintenance (Action = Closes
session)
Stage IV: Extraction::Clearing  Outward Clearing 
Session Maintenance (Action = Extract)
Stage V: Mark Return::Clearing  Outward Clearing
 Mark Return
Stage VI: Clear Batch :: Clearing  Outward Clearing
 Session Maintenance (Action = Clear Batch)

4.2 INWARD CLEARING:

Field „Function‟ Inward Clearing Batch 
CAS: Manual Cheque Presentation for the customer‟s
accounts or select SCR:020071: Remittances
(DD/BC/GC/TC) for remittance payment.

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 3.5.5 NPA FUNCTIONALITIES:

Non-Performing Assets in B@ncs24 have been classified into

7 categories, which are called as RISK GRADES:

RISK
GRADE DESCRIPTION

00 Standard Asset
01 Standard But Temporarily Irregular Asset
02 Standard But Irregular for Over 60 Days
04 Sub-Standard Asset
05 Doubtful Asset – Less than 1 Year
06 Doubtful Asset = > 1 Year but < 3 Years
07 Doubtful Asset = > 3 Years
08 Loss Asset
TABLE 2: RISK GRADES (NPA)

In New
Arre Risk NPA
ar Grad Number of Status of
Cond e of Days / that
Description
ition TL/D Percentage of account
Num L erosion
ber accou
nt
101 00 Excess Drawings / Irregularity 30 Days 01
102 01 Excess Drawings / Irregularity 30 Days 02
103 02 Excess Drawings / Irregularity 30 Days 04
104 00 Erosion in Security Value 90.10% 08
105 01 Erosion in Security Value 90.10% 08
106 02 Erosion in Security Value 90.10% 08
107 04 Erosion in Security Value 90.10% 08
108 05 Erosion in Security Value 90.10% 08
109 06 Erosion in Security Value 90.10% 08

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110 07 Erosion in Security Value 90.10% 08
111 04 Erosion in Security Value 50.10% 05
112 01 Auto Upgrade -- 00
113 02 Auto Upgrade -- 00
TABLE 3: ARREAR CONDITIONS FOR DL/TL ACCOUNTS

No. Grade Description No. of Days Status

201 00 Excess Drawings / Irregularity 30 Days 01

202 01 Excess Drawings / Irregularity 30 Days 02
203 02 Excess Drawings / Irregularity 30 Days 04
204 00 Interest not Serviced 30 Days 01
205 01 Interest not Serviced 30 Days 02
206 02 Interest not Serviced 30 Days 04
207 00 Non submission of Stock Statement 90 Days 04
208 01 Non submission of Stock Statement 90 Days 04
209 02 Non submission of Stock Statement 90 Days 04
210 00 Non submission of Renewal Data 180 Days 04
211 01 Non submission of Renewal Data 180 Days 04
212 02 Non submission of Renewal Data 180 Days 04
213 00 Erosion in Security Value 90.10% 08
214 01 Erosion in Security Value 90.10% 08
215 02 Erosion in Security Value 90.10% 08
216 04 Erosion in Security Value 90.10% 08
217 05 Erosion in Security Value 90.10% 08
218 06 Erosion in Security Value 90.10% 08
219 07 Erosion in Security Value 90.10% 08
220 04 Erosion in Security Value 50.10% 05
221 01 Auto Upgrade -- 00
222 02 Auto Upgrade -- 00
TABLE 4: ARREAR CONDITIONS OF CC/OD ACCOUNTS

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4. OFFLINE FUNCTIONALITIES (PHYSICAL FORMS)

4.1 FORMS USED:

First step for the bank is to make customers. For this and for later when
the customer is using the bank‟s services, there are different forms used
in the bank for different purposes.

CIF (Customer Information File):

To open an account from the scratch. Only those who have references
(i.e. people already having an account in the bank) can open an account.
CIF number which is unique for every customer is generated. This
number can be used to open multiple accounts in the same bank, or
different branches of the same bank. This CIF number is permanent and
is not deleted even after the account is closed by customer.
FORM 60:
It‟s a form of declaration filled by a person who does not have either a
PAN or general index register and who makes payment in cash in
respect of any transactions.
FORM 61:
Form of declaration to be filed by a person who has agricultural income
and is not in receipt of any other income chargeable to income-tax in
respect of specified transactions. This form is usually filled out by
farmers.
FUNDS TRANSFER FORM:
This form is used to transfer money under Real Time Gross Settlement
or RTGS scheme. Applicant can request bank to remit through RTGS a
specified sum against cheque/debit to his/her account with bank‟s
branch. Applicant is called remitter.

Apart from these, there are deposit/withdrawal order forms. There is

separate form for demand draft, cheque deposit etc. There are forms for
issuing of cheque book and ATM-cum debit card or debit-cum ATM
card. There is also a form in case bank has to return cheque/draft/pay

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 order to the customer in case of some failure on part of the applicant
specifying the reason for which it is returned back.
There is personalized card for farmers‟ community called the Kisan
Credit Card (KCC) under which Allahabad bank is bound to provide
crop loans to farmers at subsidized rates for viable agricultural purposes.
At Allahabad bank, term loan limit is set at 10 lacks on interest rate of
4%.
Most of the work done is not simple borrowing or lending but that of
monitoring the transactions. The whole day‟s transactions are compiled
next day (all forms of DD/cheque/Cash payments) and then crossed off
so that if there is some error in debting/crediting, it can be sorted out
without any delay.

4.2 OTHER COMPONENTS:

Clearing House:
Various banks enter an agreement to exchange financial flows between
their customers. Clearing house acts as a participant which takes risk of
defaults and ensures payment in spite of that. Clearing is necessary to
turn promise of payment into actual movement of money. Now, under
new rules, instead of banks, Reserve Bank of India sets up clearing
houses wherever there are banks. These days, banks have separate
service branches to deal with clearing houses.

IFSC (Indian Financial System Code):

IFSC code is used to uniquely identifying a bank branch participating in
electronic funds settlement system. Two main systems exist. One is Real
Time Gross Settlement (RTGS) and other one is National Electronic
Funds Transfer (NEFT). The IFSC code is used by these systems to
route the messages to the destination bank/branches. Branch wise list of
IFSC is available with all the bank branches participating in inter-bank
electronic funds transfer.

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5. CONCLUSION

First step is making a customer. Then comes „delivering the service‟ part.
There is an online module used by Allahabad Bank, called B@NCS24
developed by TCS, which is used to deliver all the retail banking services to
the customers. Various modules from making a customer, to printing reports,
calculating NPAs, etc are all well corporated in the software. Also, there are
many physical forms used in the bank for various propose that needs to be
filled. This is used as physical evidence in case online functionalities face
some technical problems.
Most of the work done in the bank is not simple borrowing or lending as most
of us understand, but that of monitoring the transactions. Clearing houses are
set up by the central bank with pre-determined mutual consent between the
banks to turn promise of payment into actual movement of money. The whole
day‟s transactions are compiled and then next day (all forms of
DD/cheque/Cash payments) they are cross checked and then crossed off so
that if there is some error in debting or crediting, it can be sorted out without
any delay.

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6. REFERENCES

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