JAIIB : Principles and Practices of Banking : Module C Lessons : Part 1

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JAIIB Module C Lessons : Part 1

Dear Friends, Today we are Starting JAIIB course with Module C  (as it is easy module among 4 modules). If you have any Doubts please write in comments.

In Module C ( Principles and Practices of Banking ) ,
Our First chapter is    Essentials of Bank Computerisation. 
in this lessons we learn the following,

     Essentials of Bank Computerisation.

  ---->         Need for Bank Computerisation,
        ---->         LANs and WANs,
               ---->          UPS (Uninterrupted Power System),
                     ---->               Core Banking.

What is the Need for Bank Computerisation ?

>>>>        The main Objective of Bank computerisation  in India is not to Replace men with machines, Rather to make work life meaningful.

>>>>      As banking industry manages large volumes of data to make it as useful information and to make it reliable, robust and inevitable.

>>>>     To introduce new way work with new technology to the organisations, systems and attututes of the woring industry.

>> The concept of Bank computerisation Practically started after 1980-81 and more precisely gained pace in the year 1983-84. after setting up a committee was setup to study the possibilities and stages involved in bank computerisation and to prepare guidelines for the same.

>>the report submitted by committee in the year 1984 was known as first Rangarajan Committee on bank mechanisation.

>> Another Committee was constituted in 1988 by Dr. C. Rangarajan to draw up a perspective plan on bank computerisation for 5 year period 1990-94.

Need for Computerisation are,

a) Customer Service,
b) housekeeping,
c) Decision - Making,
d)  Productivity and Profitability.

Stand-alone Computer System (only one user at a time can operate)

>> These systems are best suited for the decision making process
>> The managers, executives who are responsible for making managerial decisions benefits from suc           systems
>> Stand-alone systems can not be used in a multli user environment (but these systems are easily            connected to existing multi user environment to access corporate database and other shared                   information and resources.
>>  In such cases a stand alone system is called as Workstation or Node.

Multi-User Systems, (any no.of users can operate at same time)

>>  Several people can operate at same time.
>>  Examples are, Mini computers, Main frame computers, Micro computers and more powerful              super computers all fall under this category.

Branch Level Computerisation,

 We should know about Branch Level Computerisation for 2 reasons,

>> 1 Customer interface is maximum at branch level,
>> 2 Online Transactions Processing at Branch level.

*  Computerisation at the branch level can be used to,
*  Provide better & speedy customer service
*  Improve house keeping services
*  Analyse the Branch level data for decision making
*  Generation of various reports

Total Branch Automation,

>> Whenever a branch transaction is entered through a terminal (computer), the transaction is                     recorded.
>>  and it is verified and authenticated and all corresponding updates are reflected instantly.
      So canges are effected without time lag
>> By using total branch computerisation it is possible to provide the "Single window" transactions           concept.
>> Useful for  EFT (Electronic Fund Transfer), ATM (operated at branch level itself) some off site           ATMs are also linked to branch level.

Computerisation at Regional / Circle / Zonal Office

>> Effective control over the functioning of the Branches.
>> they can manage Branch Profile, Branch Profits, Credit monitoring,Personnel data management,            Inter Branch Reconciliation,
>> Most of the ROs/ZOs equipped with minicomputers and Unix as OS with Informix, oracle etc, as        databases back ends and applications are either software from different vendors or devoloped in          house using COBOL, BASIC etc languages.

Computerisation at Head Office

>> Computerisation at Head office level will provide ,
        Operations,  Planing, Personnel, International Bussiness, Services ,
>>  Personnel management and administration support
      Investment Portfolio managemnt
      Branch Profiles
     Credit Information Systems

End of the topic (only Computerisation needs).



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