ATM An automated teller machine (ATM), also known as a cash point (which is a trademark of Lloyds TSB), cash machine

or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. ATMs are known by various other names including ATM machine, automated banking machine, and various regional variants derived from trademarks on ATM systems held by particular banks. Invented by IBM, the first ATM was introduced in December 1972 at Lloyds Bank in the UK. However, there is a plaque on Barclays Bank in Enfield Town, north London stating that the first ATM (in the world) was installed there on the 27th June 1967. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit. If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a wholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well.[1]

Cheque truncation system

From Wikipedia, the free encyclopedia

Jump to: navigation, search Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project undertaken by the Reserve Bank of India RBI, for faster clearing of cheques.[1] CTS is basically an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en-route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. Cheque truncation, would eliminate the need to move the physical instruments across branches, except in exceptional circumstances. This would result in effective reduction in the time required

for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.
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Adoption Challenges
Integration with existing large banking systems- Legacy systems are a major IT and operational investment for banks. Most Banks have already invested on legacy systems and therefore it becomes vital that the new system has the capability to integrate seamlessly with the existing systems. Security- Safety and security of financial transactions is of prime importance for Banks as well as consumers. Hence, financial information transmitted over an electronic medium should be proven to be secure against financial frauds. Resisting to change- Change is always met with resistance. The banks and central regulatory authority need to work to remove apprehensions and reservations about adoption of new technology. Customer acceptance- Customer acceptance cannot be emphasized enough especially when it comes to financial transactions. This calls for tremendous change in mindset among customers, and they need to be educated and reassured that the new technology is in their favor and to provide them with safer, faster clearance and more secure services.

[edit] Expected Benefits

For Banks: Banks can expect multiple benefits through the implementation of CTS, like faster clearing cycle means realization of proceeds of cheque possible within the same day. It offers better reconciliation/verification process, better customer service and enhanced customer window. Operational efficiency will provide a direct boost to bottom lines of banks as clearing of local checks is a high cost low revenue activity. Besides, it reduces operational risk by securing the transmission route. Centralized image archival system ensures data storage and retrieval is easy. Reduction of manual tasks leads to reduction of errors. Customer satisfaction will be enhanced, due to the reduced turn around time (TAT). Real-time tracking and visibility of the cheques, less fraudulent cases with secured transfer of images to the RBI are other possible benefits that banks may derive from this solution.[2] For Customers: CTS / ICS substantially reduces the time taken to clear the cheques as well enables banks to offer better customer services and increases operational efficiency by cutting down on overheads involved in the physical cheque clearing process. In addition, it also offers better reconciliation and fraud prevention. CTS / ICS uses cheque image, instead of the physical cheque itself, for cheque clearance thus reducing the turn around time drastically

Central Bank of India (Marathi: ), a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in Mumbai.[2] The bank has 3,563 branches and 270 extension counters across 27 Indian states and three Union Territories. MR.M.V TANKSALE [3] has been appointed as the Chairman and Managing Director of staterun Central Bank of India as on 2 March 2009. To improve the Bank's capital adequacy ratio and enable it to support the credit requirements of the productive sectors of the economy, the Centre has recently decided to infuse Rs 1,400 crore in the Bank. Under the proposed capital infusion plan, Central Bank of India will get Rs 700 crore by this month-end, while the balance amount will be made available to the Bank in next fiscal. Central bank of India is one of 18 Public Sector banks in India to get recapitalisation[4] finance from the government over the next 24 months. The infusion of funds will improve the financial health of the banks as their capital adequacy ratio (CAR) will be raised more than desired level of 12 percent. The increase in CAR of the banks will also enable them to lend more money. The CAR of Central Bank of India was less than 12 percent as on 30 June 2006. The wholly owned public sector bank, based in Mumbai, will convert an amount of Rs. 800 crore out of its Rs. 1,124.14-crore total equity capital into perpetual non-cumulative preference shares.The preference shares would carry an annual floating coupon rate of eight per cent, which would be benchmarked to 100 basis points above the repo rate. It will shore up the balance-sheet of the bank and enable it to raise capital from the markets. According to an official statement, the equity capital restructuring would lead to an improvement in the bank's credit rating as also facilitate the adoption of Basel II norms. For financial year 2008-2009, Central Bank of India's Q3 standalone net profit went up at Rs 353.26 crore from Rs 201.01 crore (YoY). The bank's standalone net interest income, NII was up at Rs 671.94 crore versus Rs 544.85 crore (YoY).[5] Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five locations - Singapore, Dubai, Doha, London and Hong Kong. This is the first time the bank is venturing an independent overseas foray after the Sethia scam in the 1970s forced the bank to close down its London office. RBI had then asked the other two banks, who had operations in London, to close down.[6] As on 31 March 2011, the bank's reserves and surplus stood at Rs. 6,868.85 crore. Its total business at the end of the last fiscal amounted to Rs. 2,09,757.33 crore.The bank had a staff strength of 37,241 as on Nov 2006. Central Bank of India partnered with TCS[ Tata Consultancy Services ] for its Core Banking Solution.[7] The solution set to be implemented will include B@NCS from Sydney-based Financial Network Solutions (FNS), Exim Bills Trade Finance software from China Systems and eTreasury from TCS. With 703 banks in the core banking system (CBS), it was planned that by the end of March 2008 a total of 1,000 branches would be brought under the CBS.[8]

Commercial Banks in India are broadly categorized into Scheduled Commercial Banks and Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under the Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for listing a bank under the Second Schedule was provided in section 42 (60 of the Reserve Bank of India Act, 1934.

Activities

of

Commercial

Banks

The modern Commercial Banks in India cater to the financial needs of different sectors. The main functions of the commercial banks comprise: y y y y y transfer of funds acceptance of deposits offering those deposits as loans for the establishment of industries purchase of houses, equipments, capital investment purposes etc. The banks are allowed to act as trustees. On account of the knowledge of the financial market of India the financial companies are attracted towards them to act as trustees to take the responsibility of the security for the financial instrument like a debenture. y The Indian Government presently hires the commercial banks for various purposes like tax collection and refunds, payment of pensions etc.