Scribd
Upload
11 views2 pages

5 Core Banking Systems

Core Banking Systems (CBS) enhance service delivery, customer satisfaction, and operational efficiency in banks, enabling them to meet global challenges and customer needs. Key banking services include accepting deposits, providing various types of advances, and facilitating remittances. The growth of IT, government reforms, financial inclusion efforts, and internet penetration have significantly improved banking services across India.

Uploaded by

Mohak Velankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as ODT, PDF, TXT or read online on Scribd
11 views2 pages

5 Core Banking Systems

Core Banking Systems (CBS) enhance service delivery, customer satisfaction, and operational efficiency in banks, enabling them to meet global challenges and customer needs. Key banking services include accepting deposits, providing various types of advances, and facilitating remittances. The growth of IT, government reforms, financial inclusion efforts, and internet penetration have significantly improved banking services across India.

Uploaded by

Mohak Velankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as ODT, PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter -5

CORE BANKING SYSTEMS

OVERVIEW OF BANKING SERVICES


Today banks provide various banking services to citizens staying even at
the remotest locationin India.
Key factors that helped banks reach this level of service delivery being:

1. Information Technology (IT)


2. Ushering of reforms by successive governments led to huge
growth in India’s global business.
3. Successive governments focus to have financial inclusion for all
Indians. Banks were found to be most capable of helping government
achieve this goal.
4. Growth of internet penetration across India.

Q. Why is it important to have Core Banking Systems?

CORE BANKING SYSTEMS (CBS) helps to meet the requirements of its


customers, to be able to meet the global challenges in banking and to
enhance its service delivery models allowing banks to scale up operations,
better service delivery and improved customer satisfaction thereby
improving the overall efficiency and performance ofits operations.
Q. What are the key features of banking services?

The core of banking functions is acceptance of deposits and lending of money. The
key features of a banking business are as follows:

• The custody of large volumes of monetary items, including cash and negotiable
instruments, whose physical security should be ensured.
• Dealing in large volume of transactions.
• Operating through a wide network of branches and departments, which are
geographically dispersed?
• Increased possibility of frauds as hence mandatory for banks to provide multi-
point authentication checks and the highest level of information security.

Q. Enumerate the major products and services provided and rendered by


commercial banks?

1. Deposits involve deposits made by customers in various schemes for


pre- defined periods. Commercial banks accept deposits in various
forms such as term deposits, savings bank deposits, current account
deposits, recurring deposits and various other innovative products.

2. Advances constitute a major source of lending by commercial banks.


The type of advances granted by commercial banks take various
forms such as cash credit, overdrafts, purchase/ discounting of bills,
term loans, securitization of credit sales, housing loans, educational
loans, and car loans, etc.

3. Remittances involve transfer of funds from one place to another.


Most common modes of remittance of funds are as

You might also like