From : E-Group, STC, Salt Lake, Kolkata This message is intended only for the use of the Addressee and may contain information that is PRIVILEGED and CONFIDENTIAL. If you are not the intended recipient, dissemination of this communication is prohibited. If you have received this communication in error, please erase all copies of the message and its attachments and kindly arrange to notify stcsaltlake@xxxxxxxx immediately. Using Internet Explorer in ATM PC of your branch, please browse http://10.128.74.200 (our Intranet Web-Site). We have provided lots of Reading Materials for you at the site. Happy browsing! Dear Member, Kindly double click on the enclosed attachment to read it. With regards, Anup Sen, Moderator E-Group, STC, Salt Lake, Kolkata email : stcsaltlake@xxxxxxxx We shall be glad to receive your feedbacks through emails regarding the mails being sent to you through this e-group.Title: State Bank of India, Staff Training Centre, Salt Lake, Kolkata. : : stcsaltlake@xxxxxxxx : :
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State Bank of
India, Staff Training Centre, Salt Lake City, Kolkata 700106 Core
Banking Solution Core Banking Solutions (CBS)
is a software package being implemented by the Bank for introducing a 24 hours,
7 days a week, anywhere, anyhow banking across the country. This Software will
replace the Bankmaster package, initially in two phases, starting with metro
and urban branches. Total 40 branches of 7 Circles, viz. Mumbai, Chandigarh,
New Delhi, Ahmedabad, Bhopal, Chennai & Bangalore were brought under Core
Banking as on 31st March, 2004. The rollout plan for all the circles will start
from June 2004. During the first phase,
approx. 3,000 branches (in Metro & Urban centres through out the country) will
be brought under Core Banking by March 2005. During Phase II of the project covering approx. another 1,500 branches
including those of Associate Banks, will be started without waiting for
completion of Phase I. The first branch, viz.
Hiranandani PB Branch, Mumbai was put on Core Banking on the 29th August, 2003.
The branch started working with the CBS from September 1, 2003. The Basic
Architecture of Core Banking has been designed to achieve Centralised
Processing with IT applications & data, residing at Central Data Centre
(CDC) at Belapur, Mumbai, to which branches, including those of Associate Banks
& Administrative Offices, will be connected. The Disaster Recovery Centre
for the Centralised Processing will be at Chennai. The Core Banking project is
an integrated set of software being introduced in the Bank which will be having
interfaces with each other. The different software and their providers are as
under: 1) B@ncs-24 ? The Core Banking Software
is being provided by FNS Australia 2) Finance One ? Corporate General Ledger
Software is being provided by Comlink, USA, This will have interface with
B@ncs-24, which will enable the top management to have a real-time, online
status of the Bank?s balance-sheet. 3) CS-EximBills ? Trade Finance software
from China System, Dubai, This will also have an interface with B@ncs-24 The different hardware and
their providers are as under: 1) The Basic
hardware for the Core Banking project will be provided by ? HP Systems, USA. 2) The System
Integration/ Customisation/ Pilot Implementation will be provided by the TATA
Consultancy Services (TCS). 3) SBI Connect -The
Communication Infrastructure will be provided by ? Datacraft, Singapore. The Core Banking Software
will also be integrated with other delivery channels like ATM, Internet
Banking, Tele Banking Interfaces. The CBS at Central Data Centre will also be
connected to ALM, GAD, Foreign Department, Treasury Management etc. Network Design: SBI Connect has four Core
Centres viz., Mumbai, New Delhi, Kolkata and Chennai, networked amongst
themselves. All LHO centres will be connected to two of the four Metros with
one Metro-Link acting as a standby. Closely located LHOs will also be connected
among themselves. An LHO therefore could have 2 or 3 links. Other cities of a
particular Circle will, in turn, be connected to the respective LHOs. All
offices in a city will be connected to an aggregation point in the city (CAP ?
City Aggregation Point). CAP centers
will be located either at LHOs, ZOs or at Main Branches. The four Core Locations,
CAP centres and Branches will be linked through Leased and ISDN Lines of BSNL
or MTNL using Routers and Modems. Besides the CDC, there will be a Network
Operations Center (NOC) at Belapur whose function will be to monitor
connectivity breakdowns at any point instantaneously. Till the Bank?s own NOC
is built at Belapur, Bank will use the hired services of Datacraft?s NOC at
Bangalore. There will be provision for
64,000 end points for branches, ATMs, Offices, Associate Banks and Foreign
Offices. Datacraft has entered into a Service Level Agreement with the Bank,
undertaking 99.5% plus uptime of the network. Application Network: SBI Connect will be the
infrastructure backbone on which the Core Banking Software and any other
application, which requires communication, will run, like Trade Finance,
Treasury & ALM, ATM, Internet Banking, STEPS, ELENOR, CMP (Cash Management
Product), Voice (IP Phones), Video Conferencing etc. Interfaces with Core Banking: All the following will have
interface with Core Banking: Trade Finance, ATM Switch,
Internet Banking, Tele-Banking, STEPS, ELENOR, CMP(Cash Management Product),
ALM, Treasury Products, SWIFT/SFMS(Structured Financial Messaging System), IOA,
Drafts, AGCL, RTC and GAD. There are proposals for various other 29 interfaces
with B@ncs-24. Major Changes likely in the business
processes General Matters:
(i)
Customers will have access to their
accounts on a 24 hours, 7 days a week basis through other delivery channels
like ATM, Internet Banking, Tele-banking etc., irrespective of intervening
holidays. (ii)
Clearing will be released on respective
dates and interest will be monitored automatically by the system with value
date.
(i)
No EOD or SOD will be performed at the
branch level. EOD will be performed at the Central Host after a cut-off time.
There will thus be no need for a system administrator at the branch level. (ii)
Branch will, however, have to complete
business activities like closure of cash as well as transfer transactions. No
printing activity would be kept pending and all users will have to be logged
out. (iii)
After EOD at Central Data Centre (CDC),
some reports and minimal amount of relevant data, (which will be used in case
the branch remains offline for some reason) will be downloaded to the branch. (iv)
Accounts will be available to customers
from Night Database during and after EOD but before SOD through other delivery
channels.
(i)
Minimum amount of data like Account No.,
Customer No., Name & Balance will be maintained at branch server. (ii)
In case of offline status, transactions
are input and stored on Branch Server & are committed to Central Host on
resumption of connectivity. (iii)
Clearing can also be processed from
Shared Operation Centre or other Branches. (iv)
There will be no limit on cash deposit
but some restrictions on withdrawal during offline mode will remain.
(i)
All security Forms will be maintained by
the system piece-wise. Loss of any instrument ? cheques, drafts or Banker?s
cheques etc. will therefore be monitored by the system. (ii)
There will be automatic monitoring of
usage of security forms and indents will be generated automatically for Circle
Stationary Department online. (iii)
All the security forms can be tracked at
banks?, branch or at user level by the system. (iv)
Cheque Referred & Returned Register
will be maintained in the System.
(i)
Cash Department Registers like Head
Cashier Jotting Book, Cash Receipt and Delivery Register, Cashier Receipt
Scroll, Payment Register etc. will be discontinued. (ii)
System will maintain Cash as per the
denominations. (iii)
Currency Chest maintenance and
accounting will be done online.
(i)
Inventory of Lockers, nominations etc.
will be maintained on the System. (ii)
Every Locker will be treated as an
account on the System, which can be accessed only with a password. (iii)
Recovery of rent will also be automated.
(i)
Self Service Terminal for Drafts Issue
will be opened at big PB branches where a customer can himself enter the
details regarding the draft to be got issued. (ii)
Bank will provide Internet Banking
Terminals, Tele-banking terminals, Token-dispenser and drop boxes at branches.
(i)
Draft reconciliation data will be
transmitted to Reconciliation Department by the system. (ii)
At the time of draft payment, draft
details will be validated by the system in case both draft issue branch and
payment branch are on core banking. (iii)
Draft can be issued at home branch and
printing & delivery can be made at Non-Home Branch. (iv)
Central Dividend Warrants will be opened
in the system and branches can directly put through payment entries into this
account. Deposit Module
(i)
Flexi-TDR with escalating rate of
interest. (ii)
Recurring Deposit could also be opened for
any amount or term with the facility for accepting advance instalments which
the system would automatically account for against future instalments. (iii)
Branches will be able to issue Gift Cheques of any amount and the
same will be reconciled automatically at the time of payment.
(i)
Amount can be deposited in
multi-currency and there will be no restriction on number of currencies. A
single foreign currency amount can be broken into a rupee portion & a
foreign currency portion and credited into more than one rupee account and more
than one foreign currency account by the system. (ii)
Users can be restricted for posting both at account and product
levels. (iii)
In case of transfer of account, there will be no need to close and
re-open accounts. Simply by changing the branch code, the account can be
transferred. (iv)
Signature & Photograph of customer will be available on the
System. (v)
All the accounts will be opened as per
KYC norms.
(i)
Inter-branch and cross currency reconciliation
can be done. (ii)
Rollover process will be fully automated
in case of TDRs. (iii)
Maturity notices will be issued by the
system automatically. (iv)
System will take care for breaking of
MODs as per LIFO (Last in first out) by
default or any other option given by
the customer. (v)
There will be Centralised processing of
Inward MICR clearing & auto-posting
can be done using MICR field contents. (vi)
In case of unclaimed/overdue deposits,
processing will be automated. (vii)
Auto generation of Dr/Cr advices can be
done beyond a threshold amount. (viii)
In case of SB/RD accounts, Statement of
A/c will be printed by default by the system and Pass Books can be made
optionally. (ix)
In case of OD in a Savings Bank account,
debit balance can be maintained in the A/c itself, and aggregate of such
balances will be shown as ?OD in SB A/c? in the Weekly/ Balance Sheet etc. (x)
Amount can be withdrawn through
ATM/Internet transactions in Dormant/In-operative SB/CA. (xi)
ATM/Internet Banking transactions will
keep an account live and accounts will not be marked as dormant/in-operative in
SB/CA. (xii)
Now there will be no minimum limit on
withdrawal by cheque in SB/CA. (xiii)
Deduction of TDS from STDR A/c will be
done in the system itself by default and optionally from SB/CA for
replenishment (xiv)
?Acknowledgement Letters? for TDR/STDR
will be issued by the system. (xv)
An MOD can be broken for debiting an
amount withdrawn through ATM transactions. (xvi)
System will generate Cash Deposit
Pay-in-Slips and Electronic Stamping of Vouchers. (xvii)
SMS can be sent, for Dr/Cr transactions
to customers beyond a threshold amount. (xviii)
Nomination Register will be maintained
on system. (xix)
System will automatically take care of
stop payments. Loans
Module:
(i)
Loan module is a
parameterised product and maintained centrally. (ii)
Back valued
financial transactions & corrections can be done. (iii)
Interest rate
histories will be maintained on the system. (iv)
Interest rate
changes will be maintained centrally at CDC. (v)
Disbursement
History, Stops, Holds, Sweeps and Standing Orders will be maintained in the
system. (vi)
Repayment
Schedule can be made in the system. Any changes thereafter can be made and the
repayment schedule redrawn in case of principal reductions. (vii)
Loans can be
sanctioned online by the controllers and delay tracking will be done by the
system. (viii)
Loans sanctioned, will be reported for
control purposes, online. (ix)
All types of control returns will be
made available on line. (x)
P Segment Loans could be processed in the
system itself. Credit Scoring Model for individuals will be available online. LOAN TRACKING
MODULE:
(i)
Defaulters? List will be
maintained in the system. (ii)
A Check-list of predefined formalities
will be made available before disbursement of the loan. (iii)
Monitoring of processing time will be
online. COLLATERAL MODULE:
(i)
Securities Register & Gold Loan
Register will be maintained on the system. (ii)
Dynamic Advance value for NSCs, Shares
& Bonds will be calculated by the system. (iii)
Primary, Collateral & Third party
guarantee details will be made available online. (iv)
Securities will be linked to Insurance
Register by the system. (v)
Security value for NPA & Provision
determination will be done by the system. (vi)
Securities can be linked in case of
multiple loans. (vii)
Guarantor?s exposure level will be made
available. DEBT COLLECTION
MODULE:
(i)
Generation of notices depending on
irregularity will be automated. (ii)
Warning letters will be issued to FO/BM
on default by the system. (iii)
Irregularity Reports will be generated
automatically. (iv)
Charging of Penal Interest based on
irregularity is automated. (v)
Suit filed details and delay tracking
will be taken care of by the system. OTHER
POSSIBILITIES:
A Few Registers, that are
proposed to be maintained in the system, are: (i)
Loan Application Received & Disposed
Register (ii)
Documents Execution Register/Cash Credit
Register (iii)
EM Register / Title Deed Register (iv)
Assets Hypothecated Register (v)
D.P. Register (vi)
Unit Inspection Register (vii)
Cheques Referred and Returned Register (viii)
Insurance Register (ix)
Suit Filed Register NPA MANAGEMENT:
(i)
There will be online tracking of NPA
accounts and we can parameterise the frequency as per our requirement. (ii)
?What-if? analysis can be done for
future NPA with any type of conditions. (iii)
Analysis can be done in case of probable
NPA in the near future. (iv)
Provisioning will be automated in case
of PB/RD. (v)
INCA & Unrealised Interest will be
maintained automatically by the system. (vi)
Interest will be calculated in case of
NPA accounts but not applied. (vii)
System has a feature like electronic sanction of Write off. Impact
of Core Banking:
After the implementation of Core Banking, Branches
will essentially become business fronts and points of sale. End of Day
activities will be centralised at Belapur. Reconciliation overhead on the Bank,
will thus be reduced. Many jobs at branches like Inward Clearing, Outward
Clearing, Personalisation of cheque books, Despatch, Account Setup, Customer
Setup, Scanning of Signatures, Salary, Bill Payment, Pension Payments will be
handled by Shared Operation Centres (SOC).
Controllers will get real time information about branches and
Returns/Statements can be viewed/ generated at ZOs/LHOs. Single Window software will reduce
voucher movement in the branches. All
parameter maintenance i.e. Product Setup, Interest Rate Change etc will be done
at CDC Belapur. Benefits to
Controllers:
Dependence on branches for data will be reduced.
Controllers at ZOs/LHOs can view branch data, Weekly, P-report online and have
better control and monitoring.
Sanctioning Authority at Controlling offices would be able to approve
loan proposals online. They would also be able to monitor the launch of any new
product online, from their offices itself. Benefits to
Customers:
Customers will be able to access their accounts from
anywhere. Customers can do anytime, anywhere, anyhow banking through multiple
delivery channels like ATMs, Internet etc. They can have a single view of all
their accounts. A customer will no longer be a customer of a branch but of the
Bank as a whole. Every customer will have a customer number unique to the bank
as a whole. After Core Banking,
customers will receive remittances speedily across the country and SBI will
become a One Stop Shop for all their Financial needs. Benefits to Bank:
After the successful implementation of
Core Banking the Bank will be benefited in the following manners:
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