SUMMER TRAINING PROJECT REPORT ON

A STUDY ON A CORE BANKING SOLUTIONS

CENTRAL BANK OF INDIA
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF DEGREE OF
BACHELOR OF COMMERCE (HONS.)
2013-2016

SUBMITTED TO

SUBMITTED BY

PROF. ARVIND SINHA

MOHIT RANA
ADMISSION NO:- 13GSFC101034
B.COM (H)

SCHOOL OF FINANCE AND COMMERCE

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DECLARATION
This is to certify that the project report titled Core Banking Solution is submitted in partial
fulfillment of the requirement of BCOM(HONS) program of School Of Finance And
Commerce and is a original record of the bonafide work carried out by Mohit Rana of
Galgotias at Central Bank Of India.

Mohit Rana

Certificate of Approval
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The following summer project report titled A Study on Core banking solutions for Central
Bank of India is hereby approved as a certified study in management carried out and presented
in a manner satisfactory to warrant its acceptance as a perquisite for the award of bachelor of
commerce (h) for which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the summer project report only for the purpose it is
submitted.

Name of Faculty

Signature

Prof. Arvind Sinha

ACKNOWLEDGEMENT
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No person is ever a work of only one person and this is no exception

At the outset of this report, I would like to thank all those who helped me directly or indirectly
and whose diligent efforts made this report possible. To start with, I would like to thank
Central Bank Of India and Galgotias University for providing me the chance to undertake
this internship study and allowing me to explore in all areas of finance and electronic
commerce.
I would then like to thank Mr. Vimal Kumar (Branch Manager) who gave me a chance to be
a part of their organization A Unit of United Accrual Services Pvt. Ltd. and undergo my
summer training.
I would also like to thank Mr. D.K Rathi (Senior Manager) whose initiative and guidance
enabled me to conceptualize and construct the project.
I am thankful to the entire team of Central Bank Of India who provided their valuable
suggestions and precious time in accomplishing my project report.
Then I would like to express my profound gratitude towards my Mentor, Prof. Arvind Sinha
for his valuable suggestions, comments, feedback and support throughout the internship report.
It has been great to work under his guidance.

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SCHEDULE OF PROJECT WORK

I got an opportunity to learn and work at Central Bank of India, a hundred year old public
sector bank as an intern for the Summer Internship Programme. It started on 1 st June, 2015
with me reporting at the Office, Dehradun. I was guided to meet Mr. D.K Rathi, the senior
manager of the bank who assigned me to my guide Mr. Vimal Kumar the Branch manager of
Central Bank Of India. He welcomed me and asked for my brief introduction.
WEEK 1, JUNE 1
In my first week, I was assigned a topic for the project after inquiring about my interest area
and after my brief introduction also about my course. I was asked about how much I know the
system and how it works. I was then given a brief about banking and its procedural matters and
how these days electronic banking is the best convenience suited for people and hence chose
by all the customers referring to automatic teller machines their funds transfer through various
accounts and how they operate. I was also told about the banking codes and standard board of
India. Some of the terms were new to me and I was given a brief concept of all the banking
work. Hence, my topic was decided as Core Banking Solutions. I was told how customers
operate their accounts and avail banking services from any branch of the bank through central
bank core banking solutions system regardless of where he maintains his account. I was told
that the customer is no more the customer of the branch but becomes the banks customer as
soon as he starts operating his accounts. I was given a brief presentation as to how core
banking components work that is its basic components being the basic application software,
the network infrastructure, the hardware components and centralized data processing and was
told to read and collect information about the core components and read about the history of
central bank along with the introduction of core baking solution with reference to the banking
structure
WEEK 2, JUNE 8.
In my second week when I was thorough about the core banking stature and its working and
how efficiently it is used and processed in different banks and their policy and how easy has it
made the work for bankers and with how ease it has created positive responses of customers on
the online structure of information technology and accept the new technology with great ease
and how banks implement them with different issues being solved since the year 2010. I was
given the past history of the banks policies and the case files from different branches. I could
study and analyze a few of them. The guidance and co-operation that I got from my industry
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guide was commendable. He gave me insights to some of the concepts specific to the Banking
Industry and also offered a platform to practically implement those. I was also directly
involved in the appraisal process and also a couple of loans and in the preparation of the
memorandum/process. Then I was given the work where I was told that I will be getting a
rough report from the officials working on the survey from people where they will be getting
the answers to the different surveys allotted by the bank to different officials from the bank to
bring out the review of the customers and people about different questionnaires set up by the
bank and asked me to work under them and ready the report on the percentile of the outcome
of the questionnaires to be done. I was mentioned about this assignment to work upon on the
third week and make a report on it working under the team with the process of their outcome
of the survey done by them and the data brought and collected by them efficiently and
effectively.
WEEK 3, JUNE 15
In the third week I was given the data collected by the officials and their survey on the project
where the questions about the family type, the peoples annual income, their awareness about
the core banking solution of Central bank , their marital status , if they know the core banking
solutions of the central bank how much do they find it affective and why do they think it is
beneficial and how to them were some questionnaires being surveyed and researched to know
about the status of knowledge among people about core banking solutions and its use in the
bank. After collecting all these reports going through them and seeing the samples about the
survey data I was told by my mentor in Central bank to submit the report collected in this
survey by next week with my comments and findings on the study of this survey done and
discuss with them about the survey after analyzing upon the data and interpreting it.
WEEK 4, JUNE 22
In the fourth week I completed the assignment given by the officials made the mini report on
the research and submitted it to my mentor. He discussed me about the survey and heard my
views on the survey, the main outcome being that there were many people aware about the
core banking solutions and their method followed by the Central bank which helped the bank
to collect the awareness and compare it with last years report to see and compare the increase
in the number if respondents on the project of core banking followed by the Central Bank. My
mentor was always available to clarify my doubts. I could also seek the help and guidance of
the working staff and other staff members as and when required for any query. I also studied
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different types of deposit schemes available at Central bank of India and also assisted the bank
in opening of several new accounts. Learning is an ongoing process and I treasure all that
which trickled down to me from the industry experts in the one month of my internship and
would put them to good use as and when required. Being a fresher this enriching experience of
working in an organization as big as Central Bank of India and being able to complete a
project in finance (the area of my interest) successfully, would surely boost my level of
confidence and add on to my knowledge of banking.

INDEX

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Chapter/Seria

Contents

l Number

Page
No.

INTRODUCTION
Executive Summary

12

1.1

Introduction

13

1.2

Background

15

1.3

Banking around the world

18

CORE BANKING SOLUTIONS

2.1

Core banking system

20

2.2

Central bank of India core system modernization

21

2.3

Core Banking components

27

2.4

Financial Network Services

33

2.5

History of the bank

37

RESEARCH METHODOLOGY
3.1 Objective of the study

42

3.2 Methodology of the study

43

3.3 Data collection Method

45

DATA ANALYSIS
4.1

Statistical tools and techniques

47

4.2

Analysis and Interpretation of Data

47

4.3

Table 1 10 (responses)

47-59

FINDINGS AND SUGGESTIONS

5.1

Findings

61

5.2

Suggestions

62

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CONCLUSION
6.1

Conclusion

64

6.2

Appendix questionnaires

65

6.3

Bibliography

66

CHAPTER-1
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INTRODUCTION

EXECUTIVE SUMMARY
The present study provides a platform to understand, an effective implementation of Core
banking solution with special reference of Central bank of India. There is a sea change in the
Indian banking sector and financial system as a result of revolution in information technology.
Core banking Solution empowers banks to transform their business, leveraging agile new
generation technologies. Bank has become a modern driven system. core banking solution has
a centralized branch computerization model where the branches are connected to a central
host, which incorporated branch automation module and online multiples delivery channel like
ATM, RTGS, NEFT, ABB, debit cards, tele banking, internet banking etc one roof .core
banking solution are leaving an indelible mark as banks embark on a total overhaul of their
legacy platform. Analysis made with the help of primary data collected from personal
interviews from customer of the bank. The analysis and interpretation will be made by using
suitable statistical tools and techniques in order to arrive a authenticate information about the
core banking services.
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Core Banking is normally defined as the business conducted by a banking institution with its
retail and small business customers. Many banks treat the retail customers as their core
banking customers, and have a separate line of business to manage small businesses. Larger
businesses are managed via the Corporate Banking division of the institution. Core banking
basically is depositing and lending of money. Normal core banking functions will include
deposit accounts, loans, mortgages and payments. Banks make these services available across
multiple channels like ATMs, Internet banking, and branches. Core Banking Solutions is new
jargon frequently used in banking circles of India. The advancement in technology especially
internet and information technology has lead to new way of doing business in banking. Core
banking is general term used to describe the services provided by a group of network bank
branches , bank customers may occurs their funds and other simple transaction from any of the
member. Thus Core Banking Solution is a stride-headed towards enhancing the customer
services through Any-where and Any-time banking. Core Banking Solution (CBS) is one of
the recent developments in the field of banking, and has proved to be very useful. It is a
facility provided by banks in which a person, having an account in one branch, can operate his
account, in another branch. This has become possible, because each account holder is given a
specialized, computerized and unique account number. In simple terms, CBS is a type of
banking, in which a person, who opens a bank account in a particular branch of a bank, will be
a customer of the bank, rather than being a customer of a particular branch. Therefore, he can
transact anywhere, at any time. The prime features of the CBS are that it facilitates banking
operations like ATM's, Electronic Fund Transfers, Tele-banking, and Internet Banking etc.

INTRODUCTION

1.1 About the organization

Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the Bank was the ultimate
realization of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride
felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of
the nation and the country's asset'. He also added that 'Central Bank of India lives on people's
faith and regards itself as the people's own bank'.

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During the past 104 years of history the Bank has weathered many storms and faced many
challenges. The Bank could successfully transform every threat into business opportunity and
excelled over its peers in the Banking industry.
A number of innovative and unique banking activities have been launched by Central Bank of
India and a brief mention of some of its pioneering services are as under:
1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift
1924
1926
1929
1932
1962

habits in all sections of the society.

An Exclusive Ladies Department to cater to the Bank's women clientele.
Safe Deposit Locker facility and Rupee Travellers' Cheques.
Setting up of the Executor and Trustee Department.
Deposit Insurance Benefit Scheme.
Recurring Deposit Scheme.

Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank
continued to introduce a number of innovative banking services as under:
1976
1980
1986
1989

The Merchant Banking Cell was established.

Centralcard, the credit card of the Bank was introduced.
'Platinum Jubilee Money Back Deposit Scheme' was launched.
The housing subsidiary Cent Bank Home Finance Ltd. was started with its

headquarters at Bhopal in Madhya Pradesh.

1994 Quick Cheque Collection Service (QCC) & Express Service was set up to
enable speedy collection of outstation cheques.
Further in line with the guidelines from Reserve Bank of India as also the Government of
India, Central Bank has been playing an increasingly active role in promoting the key thrust
areas of agriculture, small scale industries as also medium and large industries. The Bank also
introduced a number of Self Employment Schemes to promote employment among the
educated youth.
Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in all 29 States as also in 6 out of 7 Union
Territories in India. Central Bank of India holds a very prominent place among the Public
Sector Banks on account of its network of 4695 Branches, 4 Extension counters, along
with 29 Satellite Offices (as on May 2015) at various centres throughout the length and
breadth of the country.
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Customers' confidence in Central Bank of India's wide ranging services can very well be
judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also
almost all major corporate houses in the country.

Corporate Vision

To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively
contribute to the emerging needs of the economy through consistent harmonization of human,
financial and technological resources and effective risk control systems.

Corporate Mission
To transform the customer banking experience into a fruitful and enjoyable one.
To leverage technology for efficient and effective delivery of all banking services.
To have bouquet of product and services tailor-made to meet customers aspirations.
The pan-India spread of branches across all the state of the country will be utilized to further the
socio economic objective of the Government of India with emphasis on Financial Inclusion.

Employee Welfare
Every organization conducts welfare activities for its employees. The welfare activities in big
bazaar are unique by themselves.
Following are the welfare activities in the big bazaar
1. Award to staff that help in the pointing pilferage
2. Cultural activities to provide scope for their hidden talents
3. Birthday celebrations
4. Long-term service awards

1.2 Background
About Central Bank Of India
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Central Bank of India, established in 1911, was nationalized in the year 1969 and today is a
leading public sector undertaking listed in BSE/NSE.

The organisational structure of the Bank consists of four tiers viz., Central Office (CO), Zonal
Offices (ZO), Regional Offices (RO) and Branches. CO, consisting of various functional
departments deals with mainly policy formulation, setting of targets and monitoring of
performance. The Bank has set up 16 Zonal Offices to exercise immediate supervision and
control over the 78 Regional Offices, which in turn supervise the branches under their
jurisdiction. The Bank has a network of approx. 3602 branches and 219 extension counters,
spread across the length and breadth of the country with presence in all the States and Union
Territories.
The Bank also has specialized branches catering to the specific needs of Retail customers,
Industrial units, corporate clients, Forex dealers, Exporters and Importers, Small Scale
Industries and Agricultural sector. The Bank has sponsorship in 8 Regional Rural Banks
(RRB).

Bank is in the process of implementing Core banking Solution B@ns@24 B@ncs24, from
Tata Consultancy Services Limited. Presently approx. 1220 branches are connected to the
CBS. The Data Center of the Bank and the CBS Project Management Office of the Bank are
located at CBD Belapur, Navi Mumbai

Information about bank:

Sl. No.

Parameter

01

Total deposits (INR crores) as on 30.09.09

151506

02

Gross credit (INR crores) as on 30.09.09

92212

03

Total Business (1+2) (INR crores)

243718

04

Total branches ( as on 30.09.09)

3546

05

Total no. of branches on CBS (approx.)

1220

06

Total no. of employees

34580

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About Core Banking Solution

Central Bank Of India has acquired and implemented banking software viz. B@ncs24, a core
banking solution from Tata Consultancy Services Limited. Presently approx. 1220 branches
are connected to the CBS. The Data Center of the Bank and the CBS Project Management
Office of the Bank are located at CBD Belapur, Navi Mumbai. The Disaster Recovery site is
located at Hyderabad.
The core banking solution has a centralized database. A small part of database related to frontend application/s is also hosted at hardware at branches. The branches are connected to the
Data Center through gateway PCs located at the branches.
Bank is using the e-trust/ Semantic anti virus solution. The distributed servers for ant-virus are
installed at C.O , Network Aggregation Points (NAP). At the branch level clients are updated
through a gateway PC installed in Branch.
The CBS currently also supports Automated Teller Machines (ATMs), Internet Banking and
Mobile Banking.
External gateways such as RTGS are presently connected to the CBS.
The software for General Ledger of the CBS is Oracle Applications. The Bank also uses a
Trade Finance Solution Eximbills from China Systems. The bank uses Channel G for Govt.
Business and e-credit for credit appraisal system and AML for Anti money laundering
solutions. The operating system is Unix and database is Oracle.

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1.3 Banking around the world

In countries such as India and Hong Kong that were a part of the erstwhile British empire, it is
only recently that core banking has caught on. This is mainly due to the restrictions by the UK
government on free movement of money throughout the region. Also, the IT infrastructure
necessary for such services did not exist in these countries until recently. After liberation from
the UK, the economies of these countries went through a drastic change - thus the demand for
such services increased and the need to meet such demand were met with today's technologies.
Most of the nationalized banks in India for example: State Bank of India, Punjab National
Bank, Central Bank Of India, Allahabad Bank, HDFC and ICICI Bank today supports core
banking. As of 2007, many Cooperative banks in India such as Jain Urban Cooperative Bank,
Kangra Central Cooperative Bank, Udaipur Urban Cooperative Bank, Kollam District
Cooperative Bank, Kerala State Cooperative Bank and Panchsheel Mercantile Cooperative
Bank had started to use and offer centralized core banking too. The three standard software
used are Flexcube from iFlex Solutions, Finacle from Infosys and B@ncs from TATA
Consultancy Services.
In countries such as Japan, core banking is still in its early stages. Although having
autonomous reign over their currency for over half a century, the consumers themselves do not
see much use for such services - low demand, thus less services. It is only within the last
decade that banks started placing ATMs outside the bank premises. Many of the bank services
must be done in person at the account holder's registered branch. Japanese banks rely heavily
on paperwork and physical evidence, such as the personal chop or Inkan - thus rendering core
banking impractical. Implementation of CBS phase II is scheduled started shortly and all
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the remaining branches (approx. 2500) were brought under CBS platform by December2010

CHAPTER-2
CORE BANKING
SOLUTIONS

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CORE BANKING SOLUTION

2.1 Core Banking System

What is Core Banking Solution?
Core Banking Solution (CBS) is networking of branches, which enables Customers to operate
their accounts, and avail banking services from any branch of the Bank on CBS network,
regardless of where he maintains his account. The customer is no more the customer of a
Branch. He becomes the Banks Customer. Thus CBS is a step towards enhancing customer
convenience through anywhere and anytime banking.

How shall CBS help Customers?

All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches
can avail various banking facilities from any other CBS branch located anywhere in the world.
These services are:

To make enquiries about the balance; debit or credit entries in the account.

To obtain cash payment out of his account by tendering a cheque.

To deposit a cheque for credit into his account.

To deposit cash into the account.

To deposit cheques / cash into account of some other person who has account in a CBS
branch.

To get statement of account.

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To transfer funds from his account to some other account his own or of third party,
provided both accounts are in CBS branches.

To obtain Demand Drafts or Bankers Cheques from any branch on CBS amount
shall be online debited to his account.

Customers can continue to use ATMs and other Delivery Channels, which are also
interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc.
shall also continue to be available. Bank is in the process of launching Internet-banking
facility shortly.

All these aim to provide convenient, efficient, and high quality banking experience to the
customers, comparable to world class standards.

What are other benefits to the Customers?

A CBS branch is like a Sales & Service Delivery Center. Back office processes/activities are
handled through technology at some other site, called Data Center. Branch, therefore, has more
time for serving customers. This improves the quality and efficiency of the services rendered
and the customer is directly benefited by way of satisfying and happy banking experience.
Since a CBS branch is essentially designed to focus on customer-interface and customer
service, the special lay-out and ambience of the branch is made to provide a convenient and
delightful banking experience. The Customer Service Representatives / Executives at the
branch are specially trained to understand, facilitate and deliver banking services efficiently
,effectively.
They wish the customers happy banking.

2.2 Central Bank of India Core Systems Modernization

Drivers for a New Core System
CBI had undertaken a massive computerization effort in the 1990s to automate all of its
branches, implementing a highly customized version of Kindle Banking Systems' Bank master
core banking system (now owned by Misys). However, because of the bank's historic use of
local processing and the lack of reliable telecommunications in some areas, it deployed a
distributed system with operations located at each branch. Although the computerization
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improved the efficiency and accuracy of the branches, the local implementation restricted
customers' use to their local branches and inhibited the introduction of new banking products
and centralization of operations functions. The local implementation prevented the bank from
easily gaining a single view of corporate accounts, and management lacked readilyavailable
information needed for decision making and strategic planning. The advantages in products
and efficiency of the private-sector banks became increasing evident in the late 1990s as CBI
(and India's other public-sector banks) lost existing customers and could not attract the rapidly
growing middle market in India. In fact, this technology-savvy market segment viewed the
public-sector banks as technology laggards that could not meet their banking needs. As a
result, the Indian government sought to have the public-sector banks modernize their core
banking systems. In response to the competitive threats and entreaties from the government,
CBI engaged KPMG Peat Marwick (KPMG) in 2000 to develop a technology strategy and a
modernization road map for the bank. In 2002, bank management approved the KPMGrecommended strategy for a new IT environment that included the implementation of a new
centralized core banking system. This effort would encompass the largest 3,300 branches of
the bank that were located in city and suburban areas.
The Central Bank of India's objectives for its project to modernize core systems include:
The delivery of new product capabilities to all customers, including those in rural areas
Provision of a single customer view of all accounts
The ability to merge the affiliate banks into CBI
Support for all CBI existing products
Reduced customer wait times in branches
Reversal of the customer attrition trend

CHALLENGES FACED BY THE BANK

The bank faced several extraordinary challenges in implementing a centralized core processing
system. These challenges included finding a new core system that could process approximately
75 million accounts daily a number greater than any bank in the world was processing on a
centralized basis. Moreover, the bank lacked experience in implementing centralized systems,
and its large employee base took great pride in executing complex transactions on local inbranch systems. This practice led some people to doubt that the employees would effectively
use the new system. Another challenge was meeting CBI's unique product requirements that
would require the bank to make extensive modifications to a new core banking system. The
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products include gold deposits (by weight), savings accounts with overdraft privileges, and an
extraordinary number of passbook savings accounts.

Vendor Consortium Selection

Recognizing the need for large-scale centralized systems expertise, CBI sought proposals from
a number of vendor consortiums that were headed by the leading systems integrators. From
these proposals, the bank narrowed down the potential solutions to vendor consortiums led by
IBM and TCS. The TCS group included Hewlett T Packard-based Financial Network Services
(FNS) and China Systems (for trade finance). Although CBI favored the real-time processing
architecture of FNS's BaNCs system over that of the IBM consortium's memo post/batch
update architecture, the bank had several concerns about the TCS consortium proposal. They
included the small size and relatively weak financial strength of FNS (TCS would eventually
purchase FNS in 2005) and the ability of the UNIX-based system to meet the scalability
requirements of the bank. Therefore, it was agreed that TCS would be responsible for the
required systems modifications and ongoing software maintenance for CBI. Additionally,
scalability tests were performed at HP's lab in Germany to verify that the system was capable
of meeting the bank's scalability requirements. These tests demonstrated the capability of TCS
BaNCs to support the processing requirements of 75 million accounts and 19 million daily
transactions.

Tata Consultancy Services and TCS BaNCs

Tata Consultancy Services, headquartered in Mumbai, India, is one of the world's largest
technology companies with particular expertise in systems integration and business process
outsourcing. The company has more than 130,000 employees located in 42 countries and
achieved revenues of $5.7 billion in fiscal 2008. Although TCS has long been a leader in core
systems integration services for banks, after it purchased FNS in 2005, the company also
became a leading global provider of core banking software for large banks. The BaNCs system
is based on service-oriented architecture (SOA) and is platform and database independent. In
addition to CBI, TCS BaNCs clients include the Bank of China (installation in process), China
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Trust, Bank Negara Indonesia, India's Bank Maharashtra , National Commercial Bank (Saudi
Arabia), and Koram Bank (Korea).
TCS has also expanded its US footprint with the opening of its largest resource delivery center
North America (near Cincinnati, Ohio) that can house 20,000 personnel. The company is
seeking license and implement the BaNCs system in North America and recently completed a
major plan effort to ensure that the BaNCs system meets US regulatory and compliance
requirements.
Initial CBI Core Systems Modernization Project
The contract for the initial project was completed in May 2002; 3,300 branches were to be
converted by mid-2007. TCS immediately began a six-month gap analysis effort to determine
the required software changes to the BaNCs system. The changes included installing required
interfaces with more than 50 other systems as well as making enhancements to support the
bank's product requirements. These product requirements were separated by customer segment
to allow the vendor and bank to begin conversions before all the needed modifications were
implemented. They placed a priority on the needed changes that would allow branches with
high-net-worth individuals and then corporate accounts to be converted as soon as possible.

Before the first conversion in August 2003, TCS and HP created the data processing
environment for CBI. The primary data center was established on the outskirts of Mumbai and
a backup center. After the second round of changes, the system and processes were functioning
smoothly, and management believed the branch conversion could be accelerated. An assembly
line approach was then employed in April 2006 to speed the branch conversion process:
Branch personnel were responsible for data scrubbing and cleaning of their customer
information on the existing system.
Branches were notified three months prior to their conversion date to begin "mock," or test,
conversions using a specially created test version of the BaNCs system.

Network Architecture
Like any corporate network architecture the CBI network is also based on the principles of
stability, security, scalability, performance and simplicity. As the following illustration makes
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clear, the Networked Banking pool is linked to the Stakeholders, Customers and prospects.
This network Pool interfaces with the Shared Operation Centers which in turn interact with
Operating Units. The Operating units in turn interact with the associate Banks, RBI and
Treasury and Risk Management. All the common input after validation is then handled by the
Corporate Office.

A sample deployment configuration is shown in this diagram. The solution is

configured with an internal layer consisting of the application, database, mail and Intranet
servers running on OMNI Enterprise features standard host connectors and all its servers are
based on modular, scalable Intel processors to which additional host connectors can be added
quite easily. Message pre/post M processors make sure that each message received by the
system is processed and adequate modifications are made before it is forwarded to the right
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consumer. OMNI Enterprise uses a full featured message queue for store and forward (SFA)
processing, whereby messages are received at intermediate routing points, recorded (stored),
and then Intel Xeon processors for superior performance and availability, protected by a
firewall. The second layer of the solution consists of a demilitarized zone that consists of
servers that enable access to different delivery channels, such as the web server, FTP server,
Telnet server and VPN server.

Physical Architecture
Distributed Systems Components
In general the Distributed Systems Components suffice for usual needs. But for The Central
Bank of India such a structure will have limited scalability. Usually the general structure is as
shown in the following illustration.

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To overcome the shortcomings of the model mentioned above a new model based on the
general one was designed which was later implemented. Thus came CBS or Core Banking
System

2.3 Core Banking System Components

Core banking became possible with the advent of computer and telecommunication technology
that allowed information to be shared between bank branches quickly and efficiently.
Before the 1970s it used to take at least a day for a transaction to reflect in the account because
each branch had their local servers, and the data from the server in each branch was sent in a
batch to the servers in the data center only at the end of the day (EoD).

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Today the technology driven banks are finding various means to reduce costs and reach out to
as many customers as possible spread over a diverse area. This has led to using multiple
channels of delivery of their products.

Mobile banking
Mobile banking (also known as M-Banking, banking, SMS Banking etc.) is a term used
for performing balance checks, account transactions, payments etc. via a mobile device such as
a mobile phone. Banks can now help a customer conduct certain transactions through the
Mobile Phone with the help of technologies like WAP, SMS, etc,. This helps a bank to
combine the Internet and telephone and leverage it to cut costs and at the same time provide its
customer the convenience. Thus it can be seen that tech savvy banks are tapping all the above
alternative channels to cut costs improve customer satisfaction.

27 | P a g e

Net Banking
Net banking means carrying out banking transactions via the Internet. Thus the need
for a branch is completely eliminated by technology. Also this helps in serving the customer
better and tailoring products better suited for the customer
A customer can view his account details, transaction history, order drafts, electronically
make payments, transfer funds, check his account position and electronically communicate
with the bank through the Internet for which he may have wanted to visit the bank branch.
ATM (Automated Teller Machine)
How ATMs Work
You're short on cash, so you walk over to the automated teller machine (ATM), insert your
card into the card reader, respond to the prompts on the screen, and within a minute you walk

away with your money and a receipt.

An ATM is simply a data terminal with two input and four output devices. Like any
other data terminal, the ATM has to connect to, and communicate through, a host processor.
The host processor is analogous to an Internet service provider (ISP) in that it is the gateway
through which all the various ATM networks become available to the cardholder (the person
wanting the cash).

ATM has four output devices:

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Speaker - The speaker provides the cardholder with auditory feedback

when a key is pressed.
Display screen - The display screen prompts the cardholder through each
step of the transaction process. Leased-line machines commonly use a
monochrome or color CRT (cathode ray tube) display. Dial-up machines
commonly use a monochrome or color LCD.
Receipt printer - The receipt printer provides the cardholder with a paper
receipt of the transaction.
Cash dispenser - The heart of an ATM is the safe and cash-dispensing
mechanism. The entire bottom portion of most small ATMs is a safe that
contains the cash.
The cash-dispensing mechanism has an electric eye that counts each bill as it exits the
dispenser. The bill count and all of the information pertaining to a particular
transaction is recorded in a journal. The journal information is printed out periodically
and a hard copy is maintained by the machine owner for two years. Whenever a
cardholder has a dispute about a transaction, he or she can ask for a journal printout
showing the transaction, and then contact the host processor. If no one is available to
provide the journal printout, the cardholder needs to notify the bank or institution that
issued the card and fill out a form that will be faxed to the host processor. It is the host
processor's responsibility to resolve the dispute.

One significant aspect to the core banking architecture is that only the necessary
permissions are granted to individual officers. This is done to prevent mishaps or though
unlikely, deliberate hijack attempts from within the network. The isolation of the intranet from
the Internet is also a similar step to increase the security of the network. Each of the branches
are connected by the WAN which in this case is not through the Internet but an entirely new
infrastructure altogether. This private secure network is used to relay between the nodes at the
different branches. The data flowing out of the branches is not immediately stored into the
main servers but remain in a data pool. This data is then reviewed automatically by auditing
software and if passed the data is stored in the main servers. Even then this data can be
modified by the network administrators but it would require the security credentials of the
Chief Officer, Information Security, State Bank of India. As a result the data security of such a
network can be assured.

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Illustration: Data Transfer Interface between secure server and the Internet

Security Architecture
Security is perhaps the most important aspect to the network architecture. In banking system
secure transfer of data is not only desirable but indispensable. What would Core Banking be
without proper security? It would have just become another failed and hacked network like
millions of others, leading to the loss of billions of rupees and possibly the destruction of the
Indian economy. To better protect the security a policy of crafted principle are used, which
taken together are named as Information Systems Security. It is a pillared architecture as
shown in the illustration below.

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Organizing Structure of IT
Enabler
Information Security Department

Assess risks
Define Policies, and develop Standards and Procedures
Provide training & awareness
Deploy & manage security products
Define security architecture for network, databases & applications: Secure
Configuration Docs

Enforcer
Application Owners /Business Owners/System administrators / IT Personnel

Implement technical and procedural controls

Manage Network, servers & applications securely adhering to policies, standards &

procedures
Report Incidents
Act on Security Logs

Auditor
Inspection & Management Audit Dept.

Auditing compliance against policies across applications and locations

Vulnerability testing
Penetration testing
Application security testing

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Feedback to ISD on effectiveness of policies

Features
Online banking solutions have many features and capabilities in common, but traditionally
also have some that are application specific. The common features fall broadly into several
categories
1. Transactional (e.g., performing a financial transaction such as an account to account
transfer, paying a bill, wire transfer and applications apply for a loan, new account,

etc.)
Electronic bill presentment and payment - EBPP
Funds transfer between a customer's own checking and savings accounts, or to another

2.
3.
4.
5.

customer's account
Investment purchase or sale
Loan applications and transactions, such as repayments of enrollments
Non-transactional (e.g., online statements, check links, co browsing, chat)
Financial Institution Administration
Transaction approval process
Wire transfer

Features commonly unique to Internet banking include

Personal financial management support, such as importing data into personal

accounting software. Some online banking platforms support account aggregation to
allow the customers to monitor all of their accounts in one place whether they are with
their main bank or with other institutions.

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Signature based online banking where all transactions are signed and encrypted
digitally. The Keys for the signature generation and encryption can be stored on
smartcards or any memory medium, depending on the concrete implementation.

Attacks

Most of the attacks on online banking used today are based on deceiving the user to
steal login data and valid TANs. Two well-known examples for those attacks are
phishing and harming. Cross-site scripting and key logger/Trojan horses can also be

used to steal login information.

A method to attack signature based online banking methods is to manipulate the used
software in a way, that correct transactions are shown on the screen and faked

transactions are signed in the background.

A recent FDIC Technology Incident Report, compiled from suspicious activity reports
banks file quarterly, lists 536 cases of computer intrusion, with an average loss per
incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of
2007. Computer intrusions increased by 150 percent between the first quarter of 2007
and the second. In 80 percent of the cases, the source of the intrusion is unknown but it
occurred during online banking, the report states.

Countermeasures

There exist several countermeasures which try to avoid attacks. Digital certificates are
used against phishing and harming, the use of class-3 card readers is a measure to avoid
manipulation of transactions by the software in signature based online banking
variants. To protect their systems against Trojan horses, users should use virus scanners
and be careful with downloaded software or e-mail attachments.

The easiest method is still prevention of any infection. The clients are only disk less
nodes without any CD/DVD or Flash drive. Only the server is equipped with a hard

disk. So a chance infection spreading from the client to the server is not possible.
The Intranet is completely separated from the Internet by the DMZ or Demilitarized
Zone, hence keeping the network safe from any outside interference.

2.4 Financial Network Services (FNS)

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FNS provides end-to-end, integrated solutions for the banking and finance industry around the
world. Headquartered in Sydney, Australia, the company addresses business opportunities
across Europe, Asia Pacific, Africa, Latin America and the Middle East through established
regional offices in London, Seoul, Manila, Jakarta, Kuala Lumpur, Hong Kong, Dubai,
Santiago and Johannesburg. From 27 January to 21 February 2003, a multi-disciplinary team
worked to demonstrate the scalability and performance of the FNS solution, BANCS, within
a Windows server environment. Traditionally, COBOL- based critical banking software such
as BANCS, runs on a mainframe or in a UNIX environment, rather than a Windows
environment, and a benchmark study of this type had not been attempted previously. We
already have eight live banking sites operating smoothly using a Windows back-end, so we
knew first- hand that BANCS running on Windows was saleable and robust, said Dean
Matheson, product development manager, Delivery Channels and Windows at FNS. However
we wanted to quantify and validate that performance using rigorous and controlled conditions
where the application and architecture could be pushed to their limits. The BANCS solution
automates core banking functions such as deposit processing, loans processing, loan workflow
management, contingent account processing, cash accounting, electronic file transfer (EFT)
witch management, department collection and other automated banking transactions integrated
across ultimo- delivery channels. For the benchmark, only the deposit and loan processing
modules were used. The target was to reach workloads of 500tps (transactions per second)
under Online Transaction processing conditions and 10 million accounts per hour under Batch
Processing conditions using a Microsoft SQL database populated with 12 million test user
accounts.
Built and Deployed Using Micro Focus Technology
A 16-processor IBM series 440 was used for the FNS BANCS solution, while an 8-processor
IBM series 440 was used for the Microsoft SQL Server 2000 database. Micro Focus
Application Server was used to deploy the COBOL-based FNS BANCS solution within the
Windows environment.
BANCS is a multi-process application that was built using the Net Express COBOL
development environment and component business object techniques. Written in COBOL with
millions of lines of code, FNS solution is easily portable

34 | P a g e

across platforms such as mainframe, UNIX and Windows and is interoperable with Java
and .NET.
Benefits
Solution benefits the new core system has resulted in benefits throughout the bank for both
the customers and the employees of SBI. For example, the new core banking system has
allowed the bank to redesign processes. It established 400 regional processing centers for all
metro and urban branches that have assumed functions previously performed in the individual
branches. The bank recently reported that business per employee increased by 250% over the
last five years. The bank has achieved its goal of offering its full range of products and
services to its rural branches. It delivers economic growth to the rural areas and offers financial
inclusion for all of India's citizens. Implementation of the TCS BaNCs system has provided the
bank with the ability to consolidate the affiliate banks into CBI. The bank has reversed the
trend of customer attrition and is now gaining new market share. Completion of the core
conversion project has also allowed the bank to undertake several new initiatives to further
improve service and support future growth. These initiatives include the deployment of more
than 3,000 rural sales staff, redesign of over 2,200 branches in the last fiscal year, opening of
more than 1,000 new branches, establishment of a call center, and an active plan to migrate
customers to electronic delivery channels. The improvement in productivity and growth of
business for the SBI Group is reflected in the picture.
Reduced transaction time Enterprise significantly reduces a banks mean transaction time. The
solutions single transaction engine (capable of providing n-level parallel processing) and
multiple integrated banking modules, banks can provide faster approval of loans, credit cards,
balance limits, etc. It is certified and tested to support more than 150 banking transactions per
second. When operating on servers running on powerful Intel XeonTM processors, the
Enterprise solution maintains a significantly higher mean number of transactions per second.
Increased delivery channels
Deploying the multi-channel EEnterprise solution means that the bank can offer a number of
its services through different, non-traditional delivery channels to the customer aside from its
branches. These include Internet banking, ATMs and mobile banking, to name just a few. Indepth customer understanding with its holistic view of customer interface history with the
bank, the Enterprise solution gives banks a better view of the customers banking needs, and
allows them to offer personalized, user-friendly and intuitive service packages to its customers.
35 | P a g e

Standardized business processes across the system

The Enterprise solution is built around the modular Enterprise: step architecture with different
modules in the solution following the same activity flow and a uniform method of transactions
processing. As a result, business processes are standardized across the system, allowing for
easy maintenance and upgrades. In-house technical personnel find the learning curve much
shorter than with other solutions since it runs on the universally accepted Microsoft* server
operating system. In addition, the solution is based on industry-recognized Intel architecture
which is constructed for modular deployment. Hence, adding new modules and services is also
far more intuitive and can be done quickly.
Open technology platform
The Enterprise solution is built on an open technology platform that supports both Linux and
Windows architectures. As a result, it is easily integrated with most legacy equipment and
systems. Its industry-recognized Intel architecture and universal compatibility allows banks to
effectively reuse their existing assets whether software, hardware or systems.
Lowest price performance ratio
Intel Xeon servers featuring Intel Net Burst micro architecture and Hyper- Threading
Technology, server platforms based on Intel Xeon processors provide excellent price
performance ratio with faster response times, increased compute power and enhanced
scalability. Built on industry standards and compliances The Enterprise solution is built on
industry-recognized technologies such as Intel and Microsoft that are built with future
applications and technological evolutions in mind. As a result, the solution ensures that the
bank has a world-class system that can easily be upgraded or merged with future technologies.

2.5 HISTORY OF CORE BANKING IN INDIA

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The major objectives of bank automation are better customer service, flawless book keeping
and prompt decision-making that leads to improved productivity and profitability. The concept
of bank automation started in the year 1981, but it was during the period 1984-1987 banks in
India started the branch level automation, making use of the then available MSDOS based
stand-alone computers. Another committee was in 1988 under the chairmanship of Dr. C.
Rangrajan, the then Deputy Governor of RBI to slate down a perspective plan on automation
of banks for a five year period. This paved way to the implementation of multi-user Total
Branch Automation packages running on a LAN (Local Area Network) either on a Network or
a UNIX operating system. With the implementation of TBA, banks started to offer the
facilities of exclusive Customer Terminal, Single window transaction, on-line and off-site
ATMs, Tele-Banking etc.

But with the advent of new generation private sector banks in India during 1994-1996,
the real era of bank marketing started and these banks started to offer anywhere and anytime
banking facilities to its customers. This was possible for them mainly owing to the fact that
they opted for the implementation of a WAN (Wide Area Network) based centralized banking
solution rather than a LAN based branch solution to network their limited number of branch
banking solution to network their limited number of branch outlets.

Improved telecommunication facilities and reduction in hardware as well as

networking cost changed the mindset of the banks in India to try the CBS option. This also
equipped them with the required technology products and services, as those offered by their
new generation competitors.

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Bank profile

Central Bank of India was established in the year 1911. The bank was the vision of Sir Sorabji
Pochkhanawala. Out of 29 states, CBI has presence in 27 states and in 4 union territories. It
has a network of 3656 branches and 178 extension counters.

Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the Bank was the ultimate
realization of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride
felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of
the nation and the country's asset'. He also added that 'Central Bank of India lives on people's
faith and regards itself as the people's own bank'.
In 2008 Central Bank of India entered into distribution tie up with Kotak Mahindra Asset
Management Company. Under this agreement it will offer entire products of Kotak Mutual
Fund products from the bank's branches.
Central Bank of India has signed a Memorandum of Understanding with WMG, an Academic
Department, University of Warwick. The MOU provides for several areas of cooperation
including provision of fasttrack loans for Indian students studying at WMG and the building
of cooperative relationships between UK and Indian business and also the development of a
low cost housing project.
Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union
Territories in India. Central Bank of India holds a very prominent place among the Public
Sector Banks on account of its network of 3656 branches and 178 extension counters at
various centres throughout the length and breadth of the country.
Product and services

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Individual and NRI CBI offers wide range of product and services such as saving account,
deposits, mutual funds, debit card, credit card, NRI account, Money transfer facility,
Remittance facility, various loan facilities, senior citizen account, etc.
Corporates To corporates it offers various products and services such as corporate accounts,
loans, RTGS, NEFT, CMS, etc.
Rural In order to provide financial assistance it offers products and services catering its
various requirements.
It also has two subsidiaries namely Centbank Financial & Custodial Services and Centbank
Home Finance. Centbank Financial & Custodial Services provides specialised services and
facilities to protect investments and estates during owner?s lifetime and dispose them
according to his will or trust.
Centbank Home Finance provides financial assistance for construction, purchase, extension
and renovation of house.

Milestone

In the year 1921 bank introduced Home Savings Safe Deposit Scheme to build
saving/thrift habits in all sections of the society.

CBI in 1924 introduced exclusive ladies department to serve banking services to

women clientele.

In 1926 it introduced Safe Deposit Locker facility and Rupee Travellers' Cheques.

In the year 1976 it established merchant banking cell.

1980 Central card, the credit card of the Bank was introduced.

1986 'Platinum Jubilee Money Back Deposit Scheme' was launched.

1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its
headquarters at Bhopal in Madhya Pradesh.

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1994 Quick Cheque Collection Service (QCC) & Express Service was set up to
enable speedy collection of outstation cheques.

The bank turned of 100 years in 2010, started on 21st December 1911by Sir Sorabji
Pochkhanwala.
2010 Central Bank of India has launched a new facility named CentFast2India
2011 Central bank of India launched Cent Double scheme that is designed to offer double the
money deposited by the depositor, in sevenandahalf year.
In 2011, Department of official language, Ministry of Home Affairs presented second prize to
Dr. Ram S.Sangapure, General Manager of MMZO of Central Bank of India for the best
implementation of official language in Zonal office.
In January 2011 Central Bank of India was awarded SKOCH Award for its outstanding
performance in JEEVIKA Project in Bihar. The Bank has made major contribution in socio
economic growth of underprivileged population living below the poverty line in the State
through Self Help Group.
2012 Central Bank of India has won the prestigious GOLDEN PEACOCK HR
EXCELLENCE AWARD
SKOCH FINANCIAL INCLUSION AWARD for REACHING LAST MILE on
FINANCIAL INCLUSION DAY 2013 conferred on Bank

40 | P a g e

CHAPTER-3
RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY
3.1 OBJECTIVE OF THE STUDY
The present objectives of the study are as follows To understand the effectiveness of Core Banking Solution in CBI, Dehradun
To know the impact of Core Banking solution on Bankers and customers of CBI
To analyze the Banking service provided to the CBI customers in India;
To examine the risk factors involved in Core Banking Solution in CBI; and
To offer few suggestion and measures to reap maximum benefits from Core Banking
Solution to the CBI customers.
SCOPE OF THE STUDY
The present study focused on Core Banking Solution of CBI, Dehradun . It covers the Core
Banking
Solutions silent feature, its impact on customers progress and Core Banking Solution in
current period. In Dehradun CBI branch has about 5842 numbers of customers for this study.
The sample is taken about 50 in numbers, the respondent are select randomly on the basis of
their income level and not covers the other banking services like Tele Banking, Mobile
banking, E-banking etc.
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HYPOTHESIS OF THE STUDY

The hypotheses of the present study are H01: Core Banking Solution has no significance difference between other banking services
Ha1: Core Banking Solution has significance difference between other banking services.
H02: Core Banking Solution has no effect on the CBI customers.
Ha2: Core Banking Solution has strongly effective on the CBI customers.
3.2 METHODOLOGY OF THE STUDY
The present study is collected from both primary and secondary sources. The primary data is
collected by conduct private survey in Dehradun. It covers CBI bank customers in Dehradun.
The structured questionnaires were sent out to all the customers and bankers in SBI Bank
branch, Dehradun. The respondent are randomly selected and it about 50 in number. The
secondary data are collected from the RBI reports/bulletin, books, journals, magazines,
articles/research paper/newspaper, online source, bank websites, and Indian Banks
Association (IBA), Indian Institute of Banking and
Finance (IIBF), Institute for Development and Research in Banking Technology (IDRBT)
Sampling Design
The present study focused on Core Banking Solution in Central Bank branch Dehradun. For
the study the respondents are selected randomly, i.e. simple random sampling technique
were used to collect the data relating of Core Banking Solution and its performances.
Data has been represented in the form of Pie Charts.
DESCRIPTIVE RESEARCH - Descriptive research includes surveys and fact-finding
enquiries of different kinds. The main feature of this type of research is that the researcher has
no control over the variables. He can only report what has happened or what is happening.
43 | P a g e

Questionnaire Plan: I have used structured questionnaire for gathering the required
information through contacting respondent personally.

Types of Questions:
i) Close ended questions
ii) Likert Scale

3.3 DATA COLLECTION METHOD

DATA COLLECTION
Primary data: Questionnaire was used for collecting primary data.
Secondary data: Various websites, articles from magazines and newspapers, books were used
for collecting secondary data.
ANALYSIS OF DATA
The collected data in the study has been presented and analyzed using the various tables &
representations.

LIMITATION OF STUDY

The study was restricted to a bank, so the competitive scenario could not be studied.
Inadequate time was the major constraint during the whole project.

Due to security concerns only read-only access to the data was encouraged.
Confidential data were not allowed to access.

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CHAPTER 4
DATA
ANALYSIS

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4.1 Statistical Tools and Techniques

The present study used different statistical tools and techniques for the analysis and
interpretation of data. The techniques used are frequency distribution, tables, charts, Chi
Square Test (X2) to test the set of prepositions in the current study to check the ultimate result
with the stated hypothetical statement.
4.2 Analysis and Interpretation of Data
The survey has been conducted and the opinion of the customers are obtained and collected.
The sample size is 50 respondents are approaches Dehradun. On their response, here the
analysis has been made. The data analysis is interpreted in the form of table and their after
inferences mentioned below the table.
4.3 TABLES
Table 1. Socio - Economic Respondent Profile
No of
SL. No

01.

Particulars

Gender

In

Respondent details
Male
Female
TOTAL
16-20
21-25
25-35

Respondent
32
18
50
02
17
17

Percentage
64
36
100
04
34
34

02.
Age

03.

04.
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35-45
45-55
55and above
TOTAL

Graduate
Qualification Post Graduate
Professional
Others
TOTAL
Business
Employee public sector

08
06
00
50

16
12
00
100

24
27

46
52

00
00
50
10
05

00
00
100
20
10

Employee private sector

10

20

Professional
Others
TOTAL
Below 100000
100000-300000
300000-500000
500000-1000000
1000000 and above
TOTAL
Married
Unmarried

10
15
50
03
06
14
14
13
50
18
29

20
30
100
06
12
28
28
16
100
36
58

Married Single
Divorce
Widow
TOTAL

03
00
00
50

06
00
00
100

Occupation

05.

Annual
Income

06.
Marital
Status

Source: Survey Data

Inference
The above table gives profile of the respondents. The respondents can be categorized based on
their age, gender, education, occupation, annual income, marital status, and family type. In
terms of gender out of 50 respondents, 64% of female and the rest 36% male. And in terms of
age 34% are of 21-25 age group and 25- 30 are from the age group of 34%. Remaining
belongs to other category. Also a high percentage of the respondents are belongs to other
category and employed in private sector and comparatively significant percentage of them has
high level of education (post-graduation/graduation). And majority of them have the annual
income of 30000-50000 and 50000-100000 both 28%. Majority of the respondents that is 58%
are unmarried and remaining are married and married single. And high percentage of them are
belongs to nuclear family type 52%.

Table 2. Awareness of CBI Core Banking Solution, Dehradun Branch

Awareness
Number of Respondents Percentage (%)
Particula
Yes
50Respondent
100
SL. No No rs
No
of
00details
00In
TOTAL
50
100
Respondent Percentage
Nuclear
26
52
Joint
19
38
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07.
Family Type
Others
05
10
TOTAL
50
100

Source: Survey Data

Yes

No

100%

Fig2.1
Inference
The above table shows that among the 50 respondents, all 100% of respondents are aware
about the CBI core banking solution in Indian banking sector. Because of the effective
implementation of core banking service in CBI branches throughout the India.
Table 3. Satisfaction of CBI Core Banking Solution
Particulars
Number of Respondents
Strongly Agree
06
Agree
29
Neither Agree Nor Disagree 10
Disagree
05
Strongly Disagree
00
TOTAL
50
Source: Survey Data
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Percentage (%)
12
58
20
10
00
100

Strongly Agree

Agree

Neither Agree Nor Disagree

Disagree

10%

12%

20%

58%

Fig3.1
Inference
From the above table it is known that among 50 respondents, the satisfaction towards CBI
Core Banking Solution is 12% of respondents are of having Strongly Agree, 58% of
respondents are of having Agree, 20% of respondents are of having Neither Agree Nor
Disagree and the rest of the 10% of respondents are of having Disagree about the CBI Core
Banking Solution.
Table 4. Benefits CBI Core Banking Solution
a)
Beneficial
YES
NO
TOTAL

Number of Respondents Percentage (%)

50
100
00
00
50
100

Source: Survey Data

Inference
The above table shows that among the 50 respondents, all 100% of respondents are happy
with the core banking solution of CBI bank. Because of the 100% of CBI core banking
solution implementation in all the branches.
b)
Beneficial
Number of Respondents Percentage (%)
Any where any time banking 15
30
Time Saving
09
18
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Low Cost services

03
Easy transaction
06
More Convenient
10
Help to capable of supporting
05
Multi-Currency operation
Others
02
TOTAL
50

06
12
20
10
04
100

Source: Survey Data

Any where any time banking

Time Saving

Low Cost services

Easy transaction

More Convenient

Help to capable of supporting

Multi-Currency operation

Others

10%

4%
30%

20%
12%

6%

18%

Fig4.
Inference
From the above table it is known that among 50 respondents, benefits towards CBI Core
Banking Solution is 30% of respondents are of having it is Any where any time banking, 18%
of respondents are of having it is Time Saving, 06% of respondents are it is Low Cost
services, 12% of respondents are CBS is easy transaction, 20% of respondents are it is More
Convenient,10% of respondents are it is Help to capable of supporting Multi-Currency
operation and the rest of the 04% of respondents are of having others benefits from Core
Banking Solution.

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Table 5. Effectiveness of CBS in CBI

Particulars
Number of Respondents
Strongly effective
10
Effective
25
Neither effective Nor ineffective 07
Ineffective
05
Strongly not effective
03
TOTAL
50

Percentage (%)
20
50
14
10
06
100

Source: Survey Data

Strongly effective

Effective

Neither effective Nor ineffective

Ineffective

Strongly not effective

10%

6%

20%

14%

50%

Fig5.1
Inference
From the above table it is known that among 50 respondents, the effectiveness towards CBI
Core Banking Solution is 20% of respondents are of having strongly effective, 50% of
respondents are of having effective, 14% of respondents are of having Neither effective Nor
ineffective and the rest of the 06% of respondents are of having Strongly not effective about
the CBI Core Banking Solution.

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Table 6. Whether CBS is effective compare to other banking services

Particulars
YES
NO
TOTAL

Number of Respondents Percentage (%)

33
66
17
34
50
100

Source: Survey Data

YES

NO

34%
66%

Fig6.1
Inference
From the above table it is known that among 50 respondents, using towards CBI Core
Banking Solution is 66% of respondents are CBS is more effective compare to traditional
banking and rest of the 34% of respondents are CBS is less effective compare to traditional
banking.
Testing Of Hypothesis
1. H02: Core Banking Solution has no significance difference between other banking
services. Ha2: Core Banking Solution has significance difference between other
banking services.

Table 7. Whether CBS is effective compare to other banking services

Particulars
YES
NO
TOTAL
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Number of Respondents Percentage (%)

33
66
17
34
50
100

Source: Survey Data.

Table 8. showing the X2 value of the CBI Customers

Scale
YES
NO

Of
33
17

Ef (Of-Ef)2
25 08
25 -8
(Of-Ef)2 /Ef

(Of-Ef)2 /Ef
2.56
2.56
5.12

X2 = (Of-Ef) 2/Ef
Degree of freedom (df) = (n-1)
Where
X2 = chi-square test
OF = Observed frequency
EF

Expected

frequency n= Number
of items
df =Degree of freedom
Inference
The table value of X2 for the 1 degree of freedom 1 at 5% level of significance is 3.873. The
calculated value of X2 is 5.12 which is much higher than the table value and hence the result
of the experiment does not support hypothesis (H 0). Thus we can conclude that the null
hypothesis is rejected.
2. H01: Core Banking Solution has no effect on the CBI customers.
Ha1: Core Banking Solution has strongly effective on the CBI customers.

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Table 9. Effectiveness of CBS in CBI

Particulars
Strongly effective
Effective
Neither
effective

Number of Respondents Percentage (%)

10
20
25
50
Nor

ineffective
Ineffective
Strongly not effective
TOTAL

07
05
03
50

14
10
06
100

Source: Survey Data

Strongly effective

Effective

Neither effective Nor ineffective

Ineffective

Strongly not effective

10%

6%

20%

14%

50%

Fig9.1

Table 10. showing the X2 value of the CBI Customers

Scale
Of
Strongly effective
10
Effective
25
Neither effective Nor ineffective 07
Ineffective
05
Strongly not effective
03
2
(Of - Ef)
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Ef
10
10
10
10
10

(Of-Ef)2
00
15
-03
-05
-07

(Of-Ef)2 /Ef
00.0
22.5
00.9
02.5
04.9
30.8

/Ef
Degree of freedom = N-1 i.e. 5-1= 4
Inference
The table value of X2 for the degree of freedom 4 at 5% level of significance is 9.488. The
calculated value of X2is 30.2 which is much higher than the table value and hence the result of
the experiment does not support hypothesis (H 0). Thus we can conclude that the null
hypothesis is rejected.

CHAPTER 5
FINDINGS AND SUGGESTIONS
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5.1 MAJOR FINDINGS OF STUDY

1) From the survey Core Banking Solution is effective on the CBI customers as 50% of
respondents freely responded to CBI that Core Banking Solution has significance service
being provided as compared to other banking services.
2) Most of the people transact without visiting the Bank. Graduates and post graduates have
account in this branch. Majority of respondent are taking in savings account and majority of
customers deals in occasionally, all respondents know the CBI product/services.
3) According to the research 100% of the contactable population is aware of Core Banking
Solution.
4) 58% of the respondents are satisfied with the working Core Banking Solution as an option
provided by Central Bank of India.
5) In CBI, CBS concept respondents are fully beneficial, as 30% of the respondents think that
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it is anywhere any time banking, time saving and more convenient to the customers.
6) 66% of the respondents believe that Core Banking Solution is more effective than other
banking services provided by the banks.
7) 100% of the respondents are happy with the benefits provided through CBS because of its
implementation in all branches of CBI.

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5.2 SUGGESTIONS
1. Rural Customers of the bank are less aware of the concept of core banking so employees of
the bank are suggested to conduct some awareness program with respected to core banking.
2. Customers should be educated with respect to all the benefits available with the core
banking.
3. Some suggestions were given to the employees of the bank to educate & increase the
awareness among customers. The following are the details All the details with respect to core banking should be displayed at the Counter hall so that
the customers come to know the procedure instead Of wasting their time.
Customer meet should be held in the branch to introduce the product and its utilization for
customers as a mass practical campaign.
Detailed scheme broachers should be held at branch counters which helps the customers to
read leisurely.
4. The growth percentage would further be increased if the bankers are given effective and
complete training on core banking and also by educating and increasing the awareness level
of core banking solution to the customers of the bank.

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CHAPTER 6
CONCLUSION

6.1 Conclusion

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The implementation of the Tata Consultancy Services (TCS) BaNCs system at the Central
Bank of India (CBI) represents the largest core systems project ever undertaken. The success
of this project should encourage other large banks to begin projects to modernize their core
systems. The use of a UNIX-based platform to process more than 100 million accounts daily
demonstrates that tier 1 banks can use a mainframe alternative for their core processing.
Although Tower Group expects that the majority of these banks will continue to rely on the
IBM mainframe for core processing, they can fully consider the benefits of utilizing a UNIXbased platform. CBI's achievement demonstrates that attention to critical factors is crucial in
implementing new core systems. The bank's senior management commitment, business line
involvement, project team staffing and empowerment, and extensive employee training were
all key contributors to the success of the project. Management also recognized the need for a
proven systems integrator that possessed in-depth expertise in both business and technology.
Core systems modernization has allowed the Central bank of India to centralize computer
processing and operations functions, offer new banking products to all the citizens of India,
reverse a trend of customer attrition, and consolidate its affiliate banks. Additionally, the bank
can now further expand its product offerings and improve customer service.
The study was conducted to understand the performance evaluation of Core Banking Solution
in CBI: An empirical Evidence of aryanagar branch. In a country like India, there is a need
for providing better and cost efficient banking services to public. To the objective of the
survey, the response has been collected from Banker and 50 customers of the CBI, aryanagar
Branch. An analysis was being made an introduce Core Banking Solution which helped in
knowing the growth of CBI Bank. This shows that the introduction of Core Banking Solution
has made a significant impact on the CBI aryanagar Branch. The growth percentage would
further be increased in the bank are given effective services on Core Banking Solution and
also educating and increase awareness level of CBS to the customer of the CBI bank.
Everything has been taken into account to judge the CBS is the effectiveness. To conclude
with the concept of Core Banking Solution has made a significant effect of core bank at
aryanagar branch. Main aim of the survey is to create the awareness in the Core Banking
Solution and encourage them to use CBS in CBI.

6.2 Appendix:
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Sample Questionnaire:

Research on Study Of Core Banking

Solution

Name:

__________________________

Gender: __________

Qualification: ___________________________

Age:

_______

Occupation: ___________________________
________________________________________________________
1) What is your family type?
a) Nuclear

b) Joint

c) Others

2) What is your annual income?

a) Below 100000 b) 100000-300000

c) 300000-500000

d) 500000-1000000 e) 1000000 above

3) Why is your marital status?
a) Married

b) Unmarried

c) Divorced

d) Married Single e) Single

4) Are you aware of Central Bank Core Banking Solution?

a) Yes

b) No

5) Do you agree Core Banking Solution is satisfactory?

a) Strongly Agree b) Agree

c) Neither Agree nor Disagree

d) Disagree

e) Strongly Disagree
6) Do you agree that CBI Core Banking Solution is effective?
a) Strongly Agree b) Agree

c) Neither Agree nor Disagree

d) Disagree

e) Strongly Disagree
7) CBI Core Banking Solution is beneficial due to?
a) Any where anytime banking
d) Easy Transaction

c) Low Cost Services

e) More Convenient f) Multi Currency Operation g) Others

6.3 BIBLIOGRAPHY
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b) Time Saving

Procedures and Guidelines book Central Bank of India.

Annual reports of Central Bank of India - Aryanagar Branch ( year 2013, 2014)
Business magazines (Business India, Business World)
Economic dailies (Economic Times, Financial Express, Hindustan Times)
Books on core banking solutions
Survey data of Central bank of India

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