Core Banking Solutions

Topics: Bank, Central bank, Online banking Pages: 49 (12915 words) Published: October 30, 2011

Title of the Project: Importance And Applications Of Core Banking Solutions (CBS)

Objectives of the Project Work:
The major objectives of this project work are to:
• To evaluate the advantages and disadvantages of CBS over traditional banking system • To explore the technology used in CBS with special reference to Shreyas Grameen Bank. • To identify and discuss various issues related with the automization of Banks. • To define various Core Banking Services provided by Indian Banks. • To identify and determine the causes of CBS becoming a nightmare. • To determine the effects of the implementation of CBS on consumers, banks and the economy as a whole. • To proactively identify the performance implications for future business goals and needs. Rational behind the Project Work:

At the outset, I would like to quote Bill Gates who has very rightly summarized the significance of technology in today’s world and I quote “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify its efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. We have traversed a long way from the Industrial revolution to the IT revolution; and banks have benefitted a lot from this technological revolution. Information Technology (IT) is a catalyst for the development of sophisticated products, evolution of better market infrastructure and the implementation of reliable techniques for risk management. The most significant impact of IT has been the manner in which it has facilitated financial transactions across the globe.. Effective use of technology has a multiplier effect on growth and development of the economy. IT plays a fundamental role in banking. By introducing the possibility of online financial transactions, IT in banking has immensely scaled up the level of activity by making services and products easily available at an affordable cost and accessible to an ever increasing set of people. Information and communication technology functions are fundamental to the success and stability of banks as well as in increasing their outreach to the unbanked or underbanked areas of the country with limited ‘brick and mortar’ structures. It is, therefore, necessary that banks prioritise these functions at the highest level.

Research Methodology to be used to carry out the Project Work: Shreyas Gramin Bank is going to be a CBS branch like other nationalized and private sector branches very soon. The process has already started. However it is still in its infancy stage.

There are a number of issues like the tie-ups to enter into, the monetary issues, the comparative advantages over the huge costs involved. Keeping this in view an exploratory research approach has been adopted. This research tends to explore the concerned issues.

For the purpose of this project work, the requisite data may be collected from . Secondary Data Sources.


Regional Rural Banks are established under the provisions of an ordinance promulgated on the 26th September, 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. Reforms and mergers introduced by the Government of India in consultation with Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) in the years 1994-95 to 2005-06 have yielded positive results in respect of key performance indicators such as number of banks and branches, capital composition, deposits, loans, loans and the trend of investments. The objective of this paper is to investigate whether the merger/amalgamation of Regional Rural Banks in India, undertaken in 2005-06 has helped improve their performance. Several committees have emphasized the need to improve the performance of these banks which play an...
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