Software solutions in Banking

The software system used by banks are being reviewed ,modified and improved from time to time by external agencies who are entrusted with such tasks and hence the data going in to the hands of unscrupulous can not be ruled out. Banks will have to masking and subsetting of data before handling the the assignment for development and testing. Sensitive and confidential personal information and business data need to be  protected from piracy ,especiaally when they are transferred across inter/intra offices by realiable person. Users access rights are to be periodically verified and documented for survillence. Banks in the future may look to use multi band authenticati on ,requiring use of secondary device to conform online banking transactions.One of the most successful and widespread strategies developed to combat data theft  is one time password(OTP) technyeoloogy.It adds extra layer protection that help stem the tide of fraud.
Data loss prevention of business records and that of  the customer are of prime focus of data security. The banks need to build customer loyalty ,trust and confidence not only in terms of their product brands but also their data security concerns . They may be authorized to view and correct their personal information and have in palace a redressal mechanism through mediation ,arbitration etc. Helpline for customers to seek clarification and report abuse may be thought of.

NRI AND INDIAN BANKS

The Indian Banking sector has loads of services for pulling foreign funds from loyal Indians who have added to the countries growth and foreign currency reserves on a very large scale.
There is something about India and being Indian that keeps all of us attached to the matra bhumi where ever we live. Even if an Indian enjoyed full rights of citizenship in a very developed country he would not be able to keep himself away from India and his relatives back home. Probably this is because of the sanskaar that are embedded in the DNA or something. There is a bond and longing for relatives and family in us Indians that keeps us rejoining ourselves to India. Apart from this which keeps the business society attached to the nation, there are several salaried class people who also form a very huge contributing sector for the nation.
Probably due to these factors the NRI banking sector has been ever thriving especially since the Indian government has started to count in this large community and provide it with benefits and facilities that pull in the resources of all these people.
Indian banks have improved to quite an extent in providing very good services for the NRI sector but there are a few problems that I have faced personally and think they should improve on that front. Banks in India might be having fantastic services but when it comes to NRI services they lack behind their foreign counterparts. HSBC and State Bank, for example, create so much trouble to just reactivate a simple Net Banking account that the customer would finally become frustrated. No service centers in the UAE are equipped to help customers even reset their password or TPIN to a simple extent. One would have to place a long distance call to India just to get that done. Another problem which I have experienced with HSBC is that they would send your new password by snail-mail and how painstaking would that be in today's speedy world could be understood easily.
On the other hand Citibank, I have no reason to favor it, except for the convenience and ease of the services they provide in the UAE itself. The best of all is their phone banking and net banking services. CitiNRI services have always been very costly and have a lot of various kinds of fees many people would surely not prefer and I think they should work out on it as well.
There are several banks out there for providing NRI services but one should really do a little homework and not get lured by the salesman or sales ladies talks, as India has strict rules on banking. Always study the fee structure, ask for their terms and conditions booklet, look for reviews on the internet and ask relatives and friends about their experience. There is a lot of competition in the sector and that makes it more nicer for the customer while decision making tougher.

Commercial Banking in India

Commercial banking constitutes the backbone of the financial system in India. Over the years bank credit has remained a predominant part of industrial /commercial financing in India and has served as the lifeline for economic development.Ad mist the global financial conundrum  , the Indian commercial banking system was able to withstand the sock of the meltdown due to its inherent strengths ,prudential s regulations and timely regulatory interventions.
Our scheduled commercial banks are in a better position,Influence of environmental condition on a banks operating performance is a normal condition. While some banks who could capitalize opportunities better ,fared better, the same was not the case with others. The vast size and heterogeneity in the structure and operating environment banking groups under the commercial banking system in India require statistical analysis added by understanding of ground realities to draw a meaningful conclusion.
However despite the heterogeneity ,some common grounds of comparison could be seen between new and old private sector banks,also between SBI and Nationalized banks .On an average the new private sector bank have done better than their old counterpart.
Similarly Nationalized banks have on many counts shown better performance than SBI group.The reason may be rooted in operational,structural and policy issues.
It is a matter of satisfaction ,however ,that as a whole ,commercial banks in India are on a sound foundation and with their comfortable capital cushion,technological leverage and operational capabilities are ready to carry the task of nation  building in the ensuing years

SECURITY FEATURES IN CHEQUE FORMS

In February this year the Reserve Bank Of India has issued guidlines for enhancement of Security features in Cheques forms and has entrusted the joint responsibility to Indian Bank Associations and National payment corporation of India to coordinate and advise banks on the introduction  and implementation of additutional security features on cheques forms.Accordingly, the NPCI and IBA held discussions with various bank representatives ,empanelled printers and paper manufacturers . Based on the feedback received during the interactions ,the following standards called Cheque Truncation System (CTS) 2010 standard have been evolved and communicated to the banks.
CTS 2010 Standards contain mandatory features which are minimum required security features on thean cheque forms and optional desirable features , inclusion of  which depends on respective banks and their risk perceptions subject to the features being compatiable with CTS requirement .
The mandatory features in the cheque forms are
1)WATER MARK
2)VOID PANTOGRAPH
3)ULTRA VIOLET LOGO OF THE BANK
4)STANDARDISED FIELD PLACEMENT OF A CHEQUE
5)CHEQUE PRINTING COLOR AND BACKGROUND
6 )PRINTING OF ACCOUNT NUMBER FIELD
7)MICRO LETTERING
8)NEW RUPEE SYMBOL

Saving bank deposit

The SB deposit are commonly and widely used by a majority of people irrespective of their economic status, across the country.It is an important component of bank deposit base, as the funds mobilized under this category are more stable and and cost effective as compared to term deposits.At present , the SB deposit continue about 22 percent of the total deposits of the banking industry.
A major share of the SB accounts pertain to household which are subjected to unfair treatment with regard to interest rate; this is evident from the fact SB interest rates have remained the same since 2003.The approach of the banks and the regulator has acted as a disincentive to small savers,who are the backbone of the resource mobilisation.
Normally,the depositors expects to be compensated for the time value of money as well as cover the associated risks viz ,inflation,systematic and regulatory risks.Inflation play a vital role when arriving at the real interest rates it has a direct bearing on the purchasing power of the depositor.
With the improving financial literacy and further penetration of capital market activity,banks are likely to lose this stable source of funds unless they treat depositor fairly.

Recruitment in Banks

Today's banking is knowledge based and tevolvechonolgy driven and is constantly evolving. Therefore , ateanew set of professional qualification should be stipulated for different of new recruits being inducted in to the banks. The selection process should be based on talent spotting principle which is being currently practised.The intent of the recruitment policy should be to recruit the right kind of people to provide a continuous flow of human resources to they a organisation in order to remain young and dynamic always. Ati the end of the probation period each new recruit should qualify against certain benchmarks and standard tests for conformation of service.

As banking,knowledge ,skill and technology keeps changiung ;there is continuous need for individual as well organisational skill development .PSBs should undertake HR audit regularly to map skills.Each bank should have a premier professional training and research institute for effective knowledge management in the organisation.
Each employee should go through a compulsory training regime to develop hard and soft skills.As there is a skill and experience gap in banks due to retirement of experienced employees , more emphasis should be placed on experiential learning and on the job training in order to bridge the gap.