1.

DEFINITION OF E-BANKING

2. FLOW CHART OF E- BANK WORKING

3. A BLOK DIAGRAM

4. FACETS OF E-BANKING

5. PROBLEM FACED IN THE CURRENT SYSTEM

6. FEATURES PROPOSED IN THE CURRENT SYSTEM

7. FEASIBILITY STUDY

8. QUESTION

9. FESIBALITY CONSIDRATION

10. RESULT
1 DEFINITION OF E-BANKING

Electronic banking, also known as electronic funds transfer (EFT), is simply

the use of electronic means to transfer funds directly from one account to
another, rather than by cheque or cash. You can use electronic funds transfer
to:

• Have your paycheck deposited directly into your bank or credit union
checking account.

• Withdraw money from your checking account from an ATM machine

with a personal identification number (PIN), at your convenience, day or
night.

• Instruct your bank or credit union to automatically pay certain

monthly bills from your account, such as your auto loan or your
mortgage payment.

• Have the bank or credit union transfer funds each month from your
checking account to your mutual fund account.

• Have your government social security benefits check or your tax

refund deposited directly into your checking account.

• Buy groceries, gasoline and other purchases at the point-of-sale, using

a check card rather than cash, credit or a personal check.
 • Use a smart card with a prepaid amount of money embedded in it for
use instead of cash at a pay phone, expressway road toll, or on college
campuses at the library's photocopy machine or bookstores.

• Use your computer and personal finance software to coordinate your

total personal financial management process, integrating data and
activities related to your income, spending, saving, investing,
recordkeeping, bill-paying and taxes, along with basic financial analysis
and decision making.

2 FLOW CHART OF E- BANK WORKING

Consider all the internet banking institutions available for business. Some
are set up by large corporations and some are small companies. Although
you may never want to set up an internet banking operation yourself, it is
enlightening to take a look at the process. The first order of business is to
gather a group of at least five people to organize the internet banking
company. These people will be on the board of directors, and one of them
should be the CEO of the bank. The five or more people will be intensely
involved together to form working procedures of the bank.

After the group is brought together, they must choose a name for their
internet banking company. They have to be very picky when it comes to
their name. They will want the name to be easy to remember. It should be
catchy and have a nice ring to it. Another consideration with the name is
making it original. Getting a name that can also be used as a domain name is
preferable. Also, the name must pass strict guidelines as to its similarity to
other banks and internet banking institutions if it is too similar, the bank
founders will not be able to obtain a trademark for it. To get a name
trademarked, they simply have to go to the US Patent and Trademark Office.
There is just one form to fill out. They submit it with a fee and wait for
approval. Sometimes, they have to make a case for their trademarked name.
This is done through emails. If all goes well, the internet banking name will
soon be theirs.
 3 A BLOK DIAGRAM

The group of investors can now go to web-hosting services and set up a

website that can be accessed publicly. To make the website, professionals
are needed. The website is, as far as the consumer is concerned, the heart of
the internet banking business. The professional website designer should
design an internet banking site with the highest level of security. This
includes such features as 128-bit encryption, secure socket layering, and
adequate firewalls.

For the consumer's preference in use, there are other considerations in

making an internet banking website as well. It should be eye-catching to
bring in the most customers. It should also be easy to get around the website.
Another consideration is copyright infringement. It must be ascertained that
nothing is directly copied onto the website. The group now forms its
charter. It must apply for an internet banking charter through the Office of
the Comptroller of Currency (OCC). This is a lengthy process and involves a
huge amount of paperwork and information. Another way is to take over
stock in an existing bank and put in a change of charter with the OCC. In
any case, the OCC will give the board of director’s advice on how to best
submit their application for the charter of their internet banking operation.
 4 FACETS OF E-BANKING

E-banking means the conduct of banking electronically. It calls for

eliminating of paper based transactions and radical change in the banking
operations. E-Banking will operate through internet, extranet and intranet. E-
Banking is therefore banking on the information superhighways on the
frontier of the internet. Parameters involved with e-banking are: customer
acceptance and satisfaction, service rendered, value added for the
organization and consumer, privacy issues, profitability, operational risk,
and competition from non-banking institutions. Implementation of the online
strategy is a given for large banking institutions, but still being considered
by smaller community banks. E-Banking must have at least the following
dimensions:-

A) Customer to Bank E-Banking.

B) Bank to Bank E-Banking

C) Electronic Central Banking

D) Intranet Procurement.

(A) CUSTOMER TO E-BANKING.

E-banking is basically Internet based. Banking products and services such

as deposits, remittances, credit cards etc. as well as all important banking
information can be made available with easy access to customers on
Internet. Customers can make use of these services with no restricted office
hours, no queues, no tellers and waiting. Several network innovations of E-
banking can be visualized such as smart cards, Electronic data Interchange
etc. of course, the banking operations have to be guarded against
unauthorized access by intruders.

(B) BANK TO BANK E-BANKING.

This form of electronic banking is for transacting inter-bank transactions

such as money at call etc. This type of E-Banking is driving extranets, which
is restricted to banks only. Hence it is well secured and unauthorized access
is less.

(C) ELECTRONIC CENTRAL BANKING.

Under this E-central banking all the banks within the purview of a central
bank are interconnected on extranet to facilities clearing of cheques,
management of cash reserves, open market operations, discounting of bill
etc. in fact, and the central bank has to be connected with the government
treasury on extranet to carry out its function as an agent of the government.
Again, the central bank of all countries can be inter-linked with the I.M.F
World Bank and other international financial institutions through extranets.

(D) INTERNET PROCUREMENT.

For the transactions that are internal to a bank, between the bank and its
branches and subsidiaries, Intranet procurements of banking are required. On
the other hand, Extranet permits a bank to have full control over the users of
intranet and information to be transmitted. The Extranet-Intranet-Internet
relationship that exists in the process of E-Banking. Extensive work is
required to integrate internal and external communications of banking
related information through banking internet and intranet for the
development of the financial sector.

5 PROBLEM FACED IN THE CURRENT SYSTEM

• In the current system data related to banking

is maintained by writing it on to various registers.
• Registers may lost or damage.
• Any unauthorized person can access
confidential data.
• Any information cannot be easily
e\searched.
 • Each A/C and customer is assigned a unique
code. Whenever a new book or member is added then
librarian has to search whether that code is previously
existing or not.
• When a particular A/c is to be modified for
one or more fields the user can be modified.
• There is time wastage in data accessing, data
entry and while data retrieving from the banking register.

6 FEATURES PROPOSED IN THE CURRENT SYSTEM

• Any information can be easily searched.

• All records of A/c`s and customer are stored
in separate files. Which
• Are maintained constantly update by system.
• Particular A/c information can be modified.
• A particular customer record can be
modified for one or more field’s customer name, address by
providing A/c number.
• A customer record can be easily deleted by
providing A/c number.
• The proposed system provides faster data
access, data entry and retrieval.
• The proposed system is more efficient, fast,
reliable, user friendly.
 • Over and above the proposed system does
not have any possibility of data loss during processing?

7 FEASIBILITY STUDY

Depending on the result of the initial investigation the survey was expanded
to a more detailed feasibility study.

Feasibility is the process of defining exactly what is and what strategic issue
needs to be considered to access its feasibility, or likelihood of succeeding.
Feasibility studies are useful both when starting a new business and
identifying a new opportunity for an existing business.

Feasibility study is a test of a system proposal according to its workability

and impact on the organization, ability to meet user needs and effective use
of resources.

The feasibility study conducted for this project mainly gives answer to these

8 QUESTION

1. What are the user’s demonstrable needs and how does a

candidate system meet them?

 2. What resources are available for the given candidate
system? Is the problem worth solving?
3. What is likely impact of the candidate system on the

organization?
4. How well does it fit within the organization’s master
plan?

Answer to this question revolves around investigation and evaluation of the

problem, identification and the description of the candidate system,
specification of performance and the cost of each system and the final
selection of best system.

The objective of this feasibility study is not solving the problem but acquire
a sense of scope. During the study of the problem definition was crystallized
and aspect of the problem to be included in the system is determined.

9 FESIBALITY CONSIDRATION

The were three key consideration involved in this feasibility analysis each
consideration has reviewed to depict how it relates to the system effort.
They are as follows:-
1. Economic feasibility
2. Technical feasibility
3. Operational feasibility

1) ECONOMIC FEASIBILITY
Economic analysis is the most frequently used technique for
evaluating the effectiveness of a proposed system. More commonly
known s cost/benefit
Analysis in this procedure we determine the benefits and saving that
are
Expected in this procedure we determine the benefits and saving that
are expected from the proposed system and compare the cost; we take
a decision and implement the new proposed system.

The manual efforts involved in maintaining the A/c and customer

information, the withdrawal, the deposit and balance calculation, is
tremendous. This is so because the volume of information to be
handled is tremendous. Maintaining the records of these many
customers is not easy and the manpower involved is great. With the
help of computers it is very easy to maintain the detail of book and
library and to keep track of available books.

In case of computerization, the cost involvement is not very high. As

it is used to be about 5-7 years back. All banking management needs
initially is a desktop computer, a printer and a UPS to maintain
continuous supply of electricity.

A single operator can handle many queries. On an average, it should

not take more 10-15 minutes to enter the information of a customer.

As part of the feasibility study, an estimate is made whether the

identified user needs may be satisfied using the current software and
 hardware. This study decides that whether or not the proposed system
will be cost effective from a business point of view.

In this case, user has one head clerk who does all the work. So the one
clerk has maintain records regarding new A/c and deletion of A/c
addition and deletion of customer, balance amount etc.

Since the volume of information to be handled by a single person is

tremendous. An analysis of the various alternatives suggested by the
software development team follows in subsequent pages.

ALTERNATIVES

1. Hire more staff

2. Develop a computerized system using VISUAL
BASIC & SQL server as database provider.
3. Develop a computerized system using VISUAL
BASIC & ORACLE as the database provider.
4. Develop a computerized system using C++ &
maintaining data file i.e. *.dat for database.

Develop a system using C++ and maintaining dat files ( .dat ) for database.
The last option suggested was to develop a Banking management system
using Turbo C++ and storing the data in dat files that are easily.

Its Advantages are:-

1. The system will be platform independent and there
will be no need is for purchasing other very expensive
software. The Turbo C++ compiler is easily and freely
available and is compatible with most of the computers. The
system can be upgraded and maintained easily to keep in
tune with specific needs of the customer. The memory
required by this software will not be much, so we won’t
have to upgrade the present system (computer).
2. The last alternatives suggested by the software
development team are the cheapest possible one. Since the
Banking already has a computer the only major expenditure
signaled out. The software is text based so no formal
training will have to be imparted. The compiler is freely
available. The only expenditure that needs to be done is
money cost of software team.
10 RESULT

From the above analysis, the development team suggested that the Banking
management should decide to implement the fourth alternative. I.e. that of
developing a new software system using Turbo C++ and maintaining data in
DAT files.
The system will be developed using Turbo C++. The programming language
is c++. Thus without much of an expenditure the bank will get the perfect
software according to their needs.
The system will be very easy to understand and implement. The
management can ask the team for specific reports to be generated and can
also decide on the kinds of interface that it needs.

The various advantage of using DOS executable software is as follows:-

 The software can be made exactly as per the needs

of the management.
 No specific training is required to use the software.
The use just has to enter the fields according to
requirements.
 Besides, a graphical user interface (GUI) will be
much more demanding on memory.
 No overburdening of work for ‘clerk’ since most of
the work will be performed by the system by the system
itself.
 And lastly, the cost of development is very less
compared to other alternatives.