By:Roy Barnashree Chandra Sinha Sureka Saha Debraj Ashish Sayan Nivedita

8/14/2019 By:Roy Barnashree Chandra Sinha Sureka Saha Debraj Ashish Sayan Nivedita

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E-bankingE-banking

By:-By:-

NiveditaNivedita

RoyRoyBarnashree ChandraBarnashree Chandra

DebrajDebrajSinhaSinha

AshishAshishsurekasureka

SayanSayanSahaSaha


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Imagine a scenarioImagine a scenario - ( )A non resident Indian NRI in Paris has an- ( )A non resident Indian NRI in Paris has an

easy way to access money in a bank ineasy way to access money in a bank in

.india.india His Citibank account in India can beHis Citibank account in India can be

,accessed through an ATM in Paris which in,accessed through an ATM in Paris which inturn transmits information to Citibank sturn transmits information to Citibank s

.central hub in the US.central hub in the US The Indian rupees are converted to USThe Indian rupees are converted to US

,dollars which are in turn converted into,dollars which are in turn converted into,French Francs at the current exchange rate,French Francs at the current exchange rate

the Indian account is debited and thethe Indian account is debited and the

.Francs made available to the NRI.Francs made available to the NRI e l c o m e t o t h e e r a o f t e c h n o l o g ye l c o m e t o t h e e r a o f t e c h n o l o g y!a n k i n g !a n k i n g


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DefinitionDefinition It is an umbrella term forIt is an umbrella term for

the process by which athe process by which acustomer may perform bankingcustomer may perform banking

transactions electronicallytransactions electronically-without visiting a brick-without visiting a brick

- ."and mortar institution- ."and mortar institution


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introductionntroduction


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.STARTED IN 1995.STARTED IN 1995

( - )Internet banking or E banking( - )Internet banking or E banking

means any user with a means any user with apersonal computer and a browser can getpersonal computer and a browser can getconnected to his bank s website to performconnected to his bank s website to perform

.any of the virtual banking functions.any of the virtual banking functions


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In internet banking system the bankIn internet banking system the bank

has a centralized database that ishas a centralized database that is- .web enabled All the services that- .web enabled All the services thatthe bank has permitted on thethe bank has permitted on the

.internet are displayed in menu Any.internet are displayed in menu Any

service can be selected andservice can be selected andfurther interaction is dictated byfurther interaction is dictated by

.the nature of service.the nature of service


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- What is e banking ?- What is e banking ? Online banking or Internet bankingOnline banking or Internet banking

In simple terms it does notIn simple terms it does notinvolve any physical exchange ofinvolve any physical exchange of, money but it s all done, money but it s all done

,electronically from one account to,electronically from one account to, .another using the Internet, .another using the Internet

,From a personal computer you can,From a personal computer you canaccess your bank accountaccess your bank account,information and perform many,information and perform many

,banking functions like transferring,banking functions like transferring

,money making a loan payment,money making a loan payment


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dvantagesdvantages

l h f dEli i h f d


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Eliminates the use of paper andEliminates the use of paper andreplaces it with computerreplaces it with computer

screensscreens No need to stand in line at theNo need to stand in line at the

,bank because all you have to do,bank because all you have to do&is log onto the internet &is log onto the internet

access your accountaccess your account , ,It s safe hassle free saves , ,It s safe hassle free saves

hours of time a monthhours of time a month


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It comes with a world of otherIt comes with a world of otherbenefitsbenefits

o ,Interest earning checking accounts,Interest earning checking accountso Automatic bill paymentAutomatic bill paymento /ATM Debit cards/ATM Debit cardso Credit CardsCredit Cardso Direct DepositDirect Deposito Online StatementsOnline Statements

oLoansLoanso Money market accountsMoney market accounts


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ustom er serviceustomer service ,As an online bank customer you have a,As an online bank customer you have a

/website that is at your disposal 24 7/website that is at your disposal 24 7 You can get your online statement forYou can get your online statement for

, , ,the month week day or year, , ,the month week day or year

-You can send e mails with questions or-You can send e mails with questions orconcernsconcerns You can pay billsYou can pay bills


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- Banking SetupBanking Setup


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-lements of an E Banking System-lements of an E Banking SystemHardwareHardware

o ServersServers

o Storage device and databaseStorage device and databaseo Communication channels and linesCommunication channels and lineso Gateways and remotely located devicesGateways and remotely located devices

( . ., )e g thin clients or Internet appliances( . ., )e g thin clients or Internet appliancesserving as interfaces between users andserving as interfaces between users and

computerscomputersSoftwareSoftware

o Operating systemsOperating systemso FirewallsFirewalls

o Database management systemsDatabase management systemso .Security application programs.Security application programs


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- Banking SetupBanking Setup


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Area of securityArea of security AuthenticationAuthentication

o /Verifying your identity using passwords pass/Verifying your identity using passwords pass

phrases and certificatesphrases and certificates ConfidentialityConfidentiality Non RepudiationNon Repudiation

o Method by which the sender of data isMethod by which the sender of data is

provided with proof of delivery and theprovided with proof of delivery and therecipient is assured of the sendersrecipient is assured of the sendersidentityidentity

IntegrityIntegrity

Access ControlAccess Controlo Mechanisms and policies that restrict accessMechanisms and policies that restrict access

to computer resourcesto computer resources AvailabilityAvailability


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Access controlAccess control Access control restricts the flow of dataAccess control restricts the flow of data

traffictraffic Internet Banking uses firewalls in theInternet Banking uses firewalls in the.area of access control.area of access control

Internet Banking two firewalls are usedInternet Banking two firewalls are used

o One before the Internet Banking serverOne before the Internet Banking servero Before the SQL databaseBefore the SQL database Banking uses firewall which fall into twoBanking uses firewall which fall into two

categoriescategories

o -Packet filtering Gateways

-Packet filtering Gateways

o .Proxy services.Proxy services


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Authenticationuthentication igita l Cer tific ateigita l Cer tific ate

o A digital certificate is anA digital certificate is an,electronic ID which is verified by,electronic ID which is verified by,a third party a certification,a third party a certification

( )authority CA( )authority CA

o The CA controls the Public KeyThe CA controls the Public Key( ).Infrastructure PKI( ).Infrastructure PKIo ,A security certificate associates an,A security certificate associates an

.identity with a public key Only the.identity with a public key Only theowner knows the correspondingowner knows the corresponding

private key that allows the owner toprivate key that allows the owner to" "decrypt or make a digital" "decrypt or make a digital.signature.signature

o Eg Barclays UK s Digital certificateEg Barclays UK s Digital certificate


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-Banking ScenarioBanking Scenarion indian india

33 private banks and 43 foreign banks33 private banks and 43 foreign banks


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33 private banks and 43 foreign banks33 private banks and 43 foreign banks 27 public sector banks account for over27 public sector banks account for over

% %84 of the total deposits and over 82% %84 of the total deposits and over 82of the total banking advances in Indiaof the total banking advances in India

Rough estimates assuming teller at Re 1Rough estimates assuming teller at Re 1per transaction put ATM transactionper transaction put ATM transaction

, ,costs at 45p phone banking at 35p, ,costs at 45p phone banking at 35pdebit cards at 20p and Internet bankingdebit cards at 20p and Internet banking

.a measly 10p.a measly 10p Marriage of technology and banking isMarriage of technology and banking isinevitable to keep pace with changes ininevitable to keep pace with changes in

.the global scenario.the global scenario

Presently Net Banking facility is offeredPresently Net Banking facility is offered, , ,by ICICI Bank Citibank HDFC Bank, , ,by ICICI Bank Citibank HDFC Bank.Global Trust Bank etc.Global Trust Bank etc


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ew Initiativesew Initiatives HDFC Bank is planning to introduce thirdHDFC Bank is planning to introduce third

party payments whereby account holdersparty payments whereby account holders

will be in a position to make paymentswill be in a position to make paymentsto predetermined parties through theto predetermined parties through the.Net.Net

The ICICI group has also launched anThe ICICI group has also launched an

Internet payment gateway for handlingInternet payment gateway for handling.Net transactions of its clients.Net transactions of its clients HSBC is working on a comprehensiveHSBC is working on a comprehensive

interactive financial services ininteractive financial services incollaboration with IBM which would be acollaboration with IBM which would be a

- - - .state of the art local platform- - - .state of the art local platform


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OnlineOnline

Secure PaymentSecure Payment
http://www.icici.com/homepage.htm


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As per Mr. K.V.Kamath, MD and CEO ICICI Ltd.,

Technology today, particularly via the internet, iscreating a platform-independent, low costcommunication infrastructure permeating all sectorsof the economy and providing an affordable

medium to conduct business.
http://www.icici.com/homepage.htm


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Online Services OfferedOnline Services Offered Account informationAccount information

Funds transferFunds transfer

Requests and intimationsRequests and intimationsCommunication with your accountCommunication with your account

managermanager

Online investmentsOnline investmentsOnline real time e-shopping paymentsOnline real time e-shopping paymentsUtility bill paymentsUtility bill payments


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drawbacks


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Security remainsThe infrastructuralSecurity remainsThe infrastructuralcosts of providing such services arecosts of providing such services are

.quite high.quite high

A bank not only has to automate itsA bank not only has to automate its-front end systems which the customer-front end systems which the customer

-interfaces with but also the back end-interfaces with but also the back endsystems so that the bank is able tosystems so that the bank is able to

.provide robust functionality .provide robust functionality ,a major issue especially in the case of,a major issue especially in the case of,corporates as bulk transactions are,corporates as bulk transactions are

.done in a day.done in a day


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phishing

By:Roy Barnashree Chandra Sinha Sureka Saha Debraj Ashish Sayan Nivedita

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Transcript of By:Roy Barnashree Chandra Sinha Sureka Saha Debraj Ashish Sayan Nivedita