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
U N I V E R S I T Y
(Estd. u/s 3 of UGC Act 1956)
Vellore - 632 014, Tamil Nadu, India
SCHOOL OF COMPUTING SCIENCE AND
ENGINEERING
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
U N I V E R S I T Y
(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
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)
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
List of Tables
Table 1: Table 2: Table 3: Table 4:
List of Figures Figure 1: Figure 2: Figure 3: Figure 4: Figure 5:
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
(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.
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.
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.
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
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.
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
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
and Windows. The solution is SOA-enabled and optimized for SOA implementations via an ESB.
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:
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 Type
Transaction Name Purpose
99 All Financial For display of Financial transaction only 98 All Cash Transaction For display of cash transactions only. 25 Repayment details of
CC/OD
For display of repayment transaction in 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.
transaction on an A/C.
34 Dishonoured Cheque
Details
For details of dishonoured cheque in an account
40 Term Maturity Details To be used for Term Deposit Accounts.
62 Closure Interest Adjustment
To be used to enquire about closure transactions.
82 Fee exemptions For details of Fee exemptions given on an account.
90 Dormant account
Narrative
For details regarding Dormancy of an 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
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.
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) Arre ar Cond ition Num ber In Risk Grad e of TL/D L accou nt Description Number of Days / Percentage of erosion New NPA Status of that account
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
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
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
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.
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.