How centralised banking system should be implemented in Banks?

I think this will help banking industry a lot in going centralised as UID project is targetted at giving an Identity to all the Indian population where every citizen of the country will come under this and in future banks will act as sub-registrar so facilitating this UID project will help them in establishing core banking or CBS (centralised banking system). This project will enable banks to identify Indians excluded from banking services and provide them with an identification to acquire a bank account.

By the introduction of internet, the banking system has totally changed from the traditional way to present standered and speed banking. Before the introduction of internet in the banking system the branches of the large banking network function eqivalent to an independent unit, ofcorse there was controle by exception at head office level. That has been changed now due to fast and effective communication system, now its working with centralised system, whole bank consting of several branches of its own is functioning like a single unit. Eventhough not complete, most of the nationalised banks and private commercial banks are already completed the process of becoming CBS, now they are full fledged CBS banks. By this they were able to provide latest developments like mobile banking, net banking, anywhere baniking etc to the customers.

CBS can be implemented by leveraging the existing network of post offices in india. Post office can be the point of contact because of its reach--right from a small village to urban areas.

Additional counters can be added to the existing infrastructure of the post offices and the same can be connected to a centralized server.

Recently Indian Railways in association with India Post has started ticket reservation facility at some of the post offices across india.

Also, currently people use post offices to deposit their savings--it makes sense also to assume that an indian may relate post office to a bank.

In Indian Banking system, we have traditional branches, ATMs, POS, PhoneBanking, Mobile Banking and Internet Banking channels for regular customers and personal banking for priority customers.  All these services are provided by the banks mostly by themselves.  Thus banks expenditure is to create required IT infrastructure and add these services as competitive differentiator.  

To my thought, these channels should be out sourced and banks should concentrate on reaching customers and serving them better.  This will help both banks and the Channel organisations that are providing services for the banks to concentrate on their respective strengths. As the technology is improving the channel companies needs to be innovative and create/utilise more channels to reach customers.  I see a big advantage of using TataSky or DishTV to reach customers for their banking needs.

Regards,

AKNRCS

As CBS may provide "AnyWhere Banking", this may reduce the multiple A/cs of individual and Cos. in multiple Banks and branches. In shopping malls, one may not require to move with many Debit/credit cards as one a/c may serve all purposes.

CBS may further open so many channels like Internet Banking, Mobile banking and cheque clearing through ATMs etc. This may help to expand banking in rural and remote areas. Caution : infrastructure like network should function very well .. !!

Caution against outsorcing : Cusomers profile are confidentail - often these data are mis-utilized by outside people.

Over 500 million people in India use cell phones. Mobile phones have a reach in rural areas where banking is still a distant term.

This is in addition to Pranav's suggestion of using Post office network for CBS. It would make sense to provide Net Banking counters in Post Offices. This will help the Banks to reach out to rural Indian population and at the same time via net banking provide a centralized banking facility.

Implementation of centralized banking system depends on technological innovation. Software and solutions should be designed for the purpose of processing cross-border securities trade, keeping financial assets safe and servicing the associated portfolios. Cash management should be supported by Software and services for managing liquidity, account balances, payments and other functions.

. Nations need efficient real time gross settlement (RTGS), securities settlement and automated clearing house systems. More importantly, they need these systems to work together seamlessly. Beyond this, these systems should keep up with the latest innovations in technology to provide improved liquidity, advanced treasury management facilities and cheque transaction Central accounting system should be kept up-to-date with new features and capabilities in response to demand from real-world users who meet regularly in a User Group. Development of  the relationships are required between systems and organisations at all levels – from holders of government debt to central banks, from SWIFT messaging formats to clearing and settlement

The need for implementation of the CBS  is as old as the Hills !  The revolutionary  influence of Science & Technology  has been felt  everywhere . The modern technology grows more sophisticated enabling automatic control . Far behind are those times when a correct and efficient control had been found by trial-and-error approach . Now that the losses due to possible errors may cost too much while the respective correction will be too expensive which are no longer such as to improve anything , the CBS is a sigh of relief helping to spare time , efforts ,resources  and  avoidance of blunders . Scales of Business Ventures and their aftermath effects spread dramatically with the CBS PROCESSES called the  5*M - Approach delivered in judicious fashion . The comprehensive list of Menus under the CBS is provided hereunder .  1. CASH MENU  2.INVENTORY MENU  3.BACK OFFICE MENU  4.CUSTOMER RELATIONSHIP MENU  5.HOT ITEMS ENQUIRY 6.ABNORMAL LIMITS MENU 7.CLEARING MENU  8.DEPOSITS MENU 9.FOREX MENU 10.ANYWHERE MENU  11. MODULE ADMINISTRATION MENU  12.WORKFLOW MENU 13.PAYSYSTEM MENU  14.ONLINE SERVICE MENU 15.FINANCE AT BRANCH MENU 16.TRADE FINANCE MENU  17.DEBIT CARD MANAGEMENT MENU 18.COUNTRYWISE EXPOSURE REPORT MENU 19.BILLS EVENTS HISTORY MENU 20.VILLAGE MASTER MAINTENANCE MENU 21.ZEROISATION PROCESS MENU  22.SELF-HELP-GROUP MAINTENANCE MENU 23.BLACK LIST MAINTENANCE MENU 24.LOANS MODELLING MENU 25.SUSPECT TRANSACTION MENU 26.TREASURY MAINTENANCE MENU  27.STOCKS & INVESTMENTS MENU  28. LOANS DEMAND GENERATION MENU . Coupled with the modern communication Banking  Appliances facilitated by the Father of the Information Age none else but  the American Mathematician ,  Claude Shannon , the CBS implementation is highly recommended .

sd/- Dr. Rojukurthi Sudhakar Rao ,

ex-C.S.I.R Jr.Research Scholar@Andhra Univers'.