83
BANK & BANKING

Bfs Module1

Embed Size (px)

DESCRIPTION

basics of banking & financial Services

Citation preview

BANK & BANKING

BANK AND BANKING

Finance is the life blood of trade, commerce and industry.Development of any country mainly depends upon the banking system.The term bank is either derived from old Italian word banca or from a French word banque both mean a Bench or money exchange table.Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order."A bank is a financial institution that serves as a financial intermediary. Functions of bank are known as banking. What are banksInstitutions which deals in money and credit. An intermediary, which handles other peoples money both for their advantage and to its own profits.A financial institution that flows funds from savers to the users.Plays an important role in the economy of any country as they hold the saving of the public.BANKING

Under Banking Regulation Act,1949 , banking includes accepting deposits from public, for the purpose of lending or investment; and repayable on demand or otherwise and withdrawable by check , draft, order or otherwise . Dealing in MoneyBank is a financial institution which deals with other people's money i.e. money given by depositors.Individual / Firm / CompanyA bank may be a person, firm or a company. A banking company means a company which is in the business of banking.Acceptance of DepositA bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers. Giving AdvancesA bank lends out money in the form of loans to those who require it for different purposes.

Characteristics / Features of a Bank Characteristics / Features of a Bank 5. Payment and Withdrawal A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts, ATM. It also brings bank money in circulation. This money is in the form of cheques, drafts, etc.6. Agency and Utility ServicesA bank provides various banking facilities to its customers. They include general utility services and agency services.7. Ever increasing FunctionsBanking is an evolutionary concept. There is continuous expansion and diversification as regards the functions, services and activities of a bank.

Significance of BanksSavings MobilisationRemittance of FundsWell Developed Money marketDevelopment of Capital Market

Public FinanceFinancing the NationRisk Free InvestmentCorporate ServicesSocial BankingEvolution of Banking in India

Banking in India originated in the first decade of 18th century with The General Bank of India (1786), Followed by Bank of Hindustan. Three presidency banks established in India. Bank of Bengal(1809), the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843, The three presidency banks were amalgamated into the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920 which is now known as the State Bank of India.(1955)A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai(under private ownership)

Evolution of Banking in India

The Reserve Bank of India was set up in 1935 to monitor banking system in India & post independence regulator power were given.Banking Regulation Act of India, 1949 Nationalisation of 14 Banks-1969(These banks were the Central Bank of India, Bank of Maharashtra, Dena Bank, Punjab National Bank, Syndicate Bank, Canara Bank, Indian Overseas Bank, Indian Bank, Bank of Baroda, Union Bank, Allahabad Bank, United Bank of India, UCO Bank and Bank of India)Second Dose of Nationalisation(6) 1980(Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank)Narasimham Committee Reforms-1990sFirst Phase of Reforms: 1991-92 to 1997-98(Financial Health and Soundness)Second phase 1998-99 and Onwards(Strengthening of Prudential Norms and NPA Management)Indian Banking Sector:overviewMarket size is Rs 77 trillionThe country has 87 scheduled commercial banks with deposits worth Rs.71.6 trillionOf this, 26 are public sector banks, which control over 70 per cent of Indias banking sector, 20 are private banks and 41 are foreign banks. Of the total, 41 banks are listed with a total market capitalization of Rs.9.35 trillion (US$ 158.16 billion)Reaches out to only about half of the countrys households

THE INDIAN BANKING SYSTEMPublicSectorBanksPrivate SectorBanks

Cooperative Banks

DevelopmentBanks

SBI and its 7associates

*19 nationalized banks

*Regional Rural banks (sponsored by Public sector banks)*New Generation pvt Sector banks

*Foreign banks

*Scheduled Cooperative Banks

*Non- scheduled Banks

*Central CB

*State CB

*Primary Agricultural Societies

*Urban CB

* Industrial Finance Corporation of India (IFCI)

*Industrial Investment Bank of India (IIBI)

*SIDBI*NABARD *Exim Bank*National Housing Bank (NHB)

STUCTURE OF THE ORGANISED BANKING SECTOR IN INDIA

Central bank

A bank which is entrusted with the functions of guiding and regulating the banking system of a country.It acts as Governments banker, maintain deposit accounts of all other banks and advances money to other banks, when needed. known as the bankers bank. It also advises the Government on monetary and credit policies and decides on the interest rates for bank deposits and bank loans. In addition, foreign exchange rates are also determined by the central bank.Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods. The Reserve Bank of India is the central bank of our country.

Commercial BanksCommercial Banks are banking institutions that accept deposits and grant loans and advances to their customers. Types of Commercial banks: Public sector banks,Private sector banks and Foreign banks.Development BanksMeets medium and long-term capital needs of the businessAlso undertake other development measures like subscribing to the shares and debentures issued by companies, in case of under subscription of the issue by the publicCo-operative BanksWhen a co-operative society engages itself in banking business it is called a Co-operative Bank

Functions of commercial banksA. Primary Functions Accepting Deposits Advancing LoansB. Secondary FunctionsAgency Functions General utility ServicesAccepting DepositsFixed or Time Deposit AccountCurrent or Demand Deposit Account Saving Deposit Account Recurring Deposit Accountb) Advancing LoansCash creditOverdraftDemand LoansShort Term LoansAGENCY FUNCTIONSI. Collection and payment of various items:Bank collect cheques,rent,interest and also make payment of taxes, insurance premium.II. Purchase of sale and security:Banks are more knowledgeable with regard of stoke and share business, they provide security to their customers.III. Trustee and Executer:Banks also acts as trustees and executers of the property of their customers.IV. Remitting of Money:Banks remit money at distance place though bank drafts.V. Purchase and sale of foreign exchange:Banks buy and sell foreign exchange, promoting international trade.VI. Letter of Reference:Banks give information about economic position of customers to domestic and foreign traders.VII. Underwriting:Banks Underwrite the sale of new shares.

GENERAL UTILITY SERVICESI. Locker facilities:Banks provide locker facilities to their customers.II. Travelers cheque and Letters of credit:Banks issue traveler's cheque and letters of credit to avoid the risk of carrying cash.III. Business Information and Statistics:Banks give advice to customers on financial matters.IV. Help in Transportation of goods:Banks help big businessmen and industrialists in transportation of goods from production centre to consumption centers.Difference b/w primary and secondary functions:Primary Functions1.These are the main activities of the bank.2. These are the main source of income of the bank.3.These are obligatory on the part of bank performance.Secondary functions1.These are the secondary activities of the bank.2. These are not main source of income of the bank.3.These are not obligatory on the part of bank performance.Role of Commercial Banks in the Economic Development of a CountryBanks promote capital formationThe banks are not only the store houses of the countrys wealth, but also provide financial resources necessary for economic development. provision of credit & financeCredit is the pillar of development, lubricate all commerce & tradeNerve centre of all commerce & trade Promotion of trade and industryThe use of bank draft, check, bill of exchange, credit cards and letters of credit etc has revolutionized both national and international trade.

Role of Commercial Banks in the Economic Development of a CountryDevelopment of agricultureRaised agriculture productivity and income of the farmers. Balanced development of different regionsThey help in transferring surplus capital from developed regions to the less developed regions. Influencing economy activity Availability of creditThe rate of interest Implementation of Monetary policy Promote Industrial Development Role of Commercial Banks in the Economic Development of a CountryMonetization of the economyExistence of non-monetised sector is a hindrance in the economic development of the country Export promotion cells InnovationsFacilities of bank loans enable the entrepreneurs to step up their investment on innovational activities, adopt new methods of production and increase productive capacity of the economy

Role of Commercial Banks in the Economic Development of a CountryBanking is thus used to achieve the national policy objectives of reducing INEQUALITIES OF INCOME AND WEALTH, REMOVAL OF POVERTY AND ELIMINATION OF UNEMPLOYMENT IN THE COUNTRY.

Traditional Services Offered By BanksExchange of CurrencyCommercial Notes and LoansOffering Savings DepositsSafekeeping of ValuablesSupporting Government Activities with CreditSelling Insurance ProductsChecking AccountsTrust ServicesCorporate Services of BanksWorking capital loansShort term & Long term loansFinancial AdviceCash ManagementEquipment LeasingVenture Capital LoansSecurity Underwriting and Brokerage ServicesMutual Funds and AnnuitiesMerchant Banking ServicesDiversification in Bank operations Diversified to non-traditional para-banking activities such as Factoring and Forfaiting Primary dealer system Venture capital financing Retail banking Insurance Loan syndication and consortium financing

Banking Innovations

Retail BankingBank as authorized dealerCustomer serviceLead Bank schemeService area approachMicro financeConsortium approachCredit cards Local Area Banks

Technology and BankingThe Nature of Banking harmonizes closely with Technology

BankingTechnologyInformation StorageProcessingTransmissionTasks Common to BothPervasive BranchNetworkGlobal OperationsComplex Credit CalculationsInnovative RiskManagementBanking and TechnologyMass Transaction& Items ProcessingMany Benefits of TechnologyIncreased operational efficiency, profitability & productivitySuperior customer serviceMulti-channel, real-time transaction processing Better cross-selling abilityImproved management and accountabilityEfficient NPA and risk managementMinimal transaction costsImproved financial analyses capabilities

Focus aspects of Commercial Banking now are:Core Banking (CBS)ATMsCard ManagementAny Branch BankingDocumentManagementRiskManagementResourceManagemaentMIS & IntranetCRMElectronic BankingPOS Terminals and Cash dispenser BANKS BUSINESSBANKS BUSINESSRAISING DEPOSITSLOANS & MISC. SERVICESCorporate Network

POS Terminal and Cash Dispenser

POS TerminalConnected to Cash dispenser

Electronic BankingATM

Head OfficeBranch Banking

Branch 1Branch 2Branch 3Branch 4Branch 5Branch 6Branch nCommercial BankingTechnology in Indian Banking 2007

Benefits to CustomerMore convenience & flexi timings

Better awareness of products & services

Up-to-date information on accounts

Low cost of accessing the accountsTechnological Developments in IndiaIT came into existence as early as in the 1980s in banking industry through the Rangarajan Committee (1984 and 1989) recommendations and later progressed through the Saraf Committee (1993) and the Vasudevan Committee (1998) recommendations. Core Banking Solutions (CBS)pooling data at central servertransactions of delivery channels from delivery points (branch/atm) feed online to host no back officehost database is up to the minuteend of day (eod) and start of day (sod) tasks performed at branches will be done by host servereliminates br reconciliation workstaff productivity bank customer!

It is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channel.Objectives of E-bankingTo attain the ability to pursue value creation opportunities.It provides a clear view on the benefits to corporate and private customs It provides useful insights for its readers on the security concern and the technological focus areas of the e-banking industry. It also throws light on the competition and the latest trends in the industry.

Definition of E-Banking Technology-based BankingProducts & ServicesBalance inquiryTransaction informationFunds transferCash ManagementBill paymentBill presentment Loan applications

Automated clearinghouse (ACH) transactionsInternet PaymentsWireless BankingData Storage

Banks can offer almost anything electronically that they offer thru branch networks. Moreover, e-banking facilitates new products and services such as aggregation, certification authorities, and electronic data storage.INTRODUCTION

British actor Reg Varney using the world's first ATM in 1967, located at a branch of Barclays Bank, Enfield. The system was developed by De La Rue Email Money Transfer

A retail banking service that allows users to transfer funds between personal accounts using email and their online banking service.Email money transfers are considered secure because only the notification of transfer is done through email. The actual funds are settled through the existing funds transfer networks that banks have used for years.

Commercial BankingTechnology in Indian Banking 2007

SWIFT www.swift.com

Society for Worldwide Inter-bank Financial TelecommunicationHQ La Hulpe, Brussels, Belgium Provides reliable, fast tele-communication facilities for exchange of financial messages all over the world between Banks and FIsAs non-profit making co-operative society in 1973 by 239 banks in 15 countriesHubs in Brussels, New York and NetherlandsRules in 1975; first message in 1977>7,000 members in 200 countries nowHandles over 7 million messages every dayIndia a member since 199188 Indian banks are members as on date

Commercial BankingTechnology in Indian Banking 2007

SWIFT contd...Any Bank / FI can become a memberAllots an address called Bank Identi-fication Code (BIC) of 8 charactersEnables members to send secure and reliable messages authenticated...Correspondent bank arrangements...Advantages: 24 hours service, system based fraud-free faster accurate confidential funds/LCs/Guarantees

Internet banking

Enables banking customers to operate their accounts from anywhere, anytime, removing the restrictions imposed by geography and time. It's a platform that enables the customers to carry out their banking activities from their desktop, aided by the power and convenience of the Internet.Following normal banking transactions can be performed online:Funds transfer between own accounts. like Third party transfers , Group Transfers & Inter Bank Transfers to accounts with other BanksOnline standing instructions for periodical transfer Credit PPF accounts across branchesRequest for Issue of Demand DraftRequest for opening of new accountsRequest for closure of Loan AccountsRequest for Issue of Cheque BookApart from these, the other salient value-added features available are:Utility bill paymentsOnline Ticket Booking for travel by Road, Rail and AirInsurance premia payments & Mutual funds InvestmentsCredit Card dues paymentsTax Payment Income, Service, State GovtCustoms Duty PaymentOnline Share Trading Online Application for IPO

Development of E-banking ContdThe service was developed by Stanford Federal Credit Union, which is a financial institution.In May 1995 : Wells Fargo - the first bank in the world to offer customer access to their accounts over the internet(allows customer to see their accounts online)The online banking services are becoming more and more prevalent due to the well developed systems

Development of E-banking in India ICICI was the first bank to initiate the Internetbanking revolution in India as early as 1997under the brand name 'Infinity.ICICI Bank kicked off online banking wayback in 1996 . But even for the Internet as awhole, 1996 to 1998 marked the adoptionphase, while usage increased only in 1999-due to lower ISP online charges, increasedPC penetration and a tech-friendlyatmosphere

RBI & E-BankingThe Reserve Bank of India constituted a working group on Internet Banking.The group divided the internet banking products in India into 3 types based on the levels of access granted.They are:- i) Information Only System: ii) Electronic Information Transfer System: iii) Fully Electronic Transactional System:

Information Only SystemGeneral purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website.There exist facilities for downloading various types of application forms.The communication is normally done through e-mail.

Contd..There is no interaction between the customer and bank's application system.No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through internet.

Electronic Information Transfer SystemThe system provides customer- specific information in the form of account balances, transaction details, and statement of accounts.The information is still largely of the 'read only' format. Identification and authentication of the customer is through password.The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet.

Fully Electronic Transactional SystemThis system allows bi-directional capabilities.Transactions can be submitted by the customer for online update.This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure.It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure .

Automated Teller Machine (ATM)ATM is designed to perform the most important function of bank.It is operated by plastic card with its special features.The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification

Automated Teller Machine (ATM)

An automated teller machine (ATM) is a computerized telecommunications device that provides the customers an access to financial transactions in a public space without the need for a human clerk or bank teller.On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information, such as an expiration date or CVV(card verification value). Security is provided by the customer entering a personal identification number (PIN)How ATM works

How ATMs Work

Provides the necessary information by means of the card reader and keypad.The ATM forwards this information to the host processor, which routes the transaction request to the cardholder's bank.If the cardholder is requesting cash, the host processor causes an electronic funds transfer to take place from the customer's bank account to the host processor's account.Once the funds are transferred to the host processor's bank account, the processor sends an approval code to the ATM authorizing the machine to dispense the cash.The processor then ACHs the cardholder's funds into the merchant's bank account, usually the next bank business day. In this way, the merchant is reimbursed for all funds dispensed by the ATM."ACH" is short for "automated clearing house Means that a person or business is authorizing another person or business to draft on an account.Commercial BankingTechnology in Indian Banking 2007

Launched in 1997India's FIRST Shared Payment Network Service(SPNS) covers > 1000 ATMs in 64 cities55 member banks in the network, which include nationalized, private and foreign banksEnables member banks to share their ATMs with other participating banksObjective - reduce the huge investment being made by the banks to deploy ATMs in different locationsSWADHAN

Commercial BankingTechnology in Indian Banking 2007

SBIs Mobile ATM in Kerala

Mobile Banking refers to provision and availing of banking- and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information.

Mobile BankingIntroduction of new technologies.

Controlcosts,removalofcostduplication

Cater to increasing online channel customers

Personalize customer interactions

REASONS OF GENESIS OF MOBILE BANKINGCLASSIFYING SERVICESOn the basis of originator of service sessionPushPullOn the basis of nature of serviceTransaction BasedEnquiry Based

Push Based

Pull Based

Transaction Based

* Fund Transfer * Bill Payment * Other financial services like share trading.

Enquiry Based

* Credit/Debit Alerts. * Minimum Balance Alerts * Bill Payment Alerts

* Account Balance Enquiry * Account Statement Enquiry. * Cheque Status Enquiry.* Cheque Book Requests. * Recent Transaction History.

Technology behind Mobile Banking SMS (Short messaging service) GPRS (General Packet Radio Service) USSD (Unstructured Supplementary Service Data)(USSD) is a protocol used by GSM cellular telephones to communicate with the service provider's computers

Commercial BankingTechnology in Indian Banking 2007

ECSElectronic Clearing Scheme (ECS) operated by the RBI since 1996-97Utilises BANKNET and INFINETFacilitates payment from a single account at a bank branch to any number of accounts maintained with the branches of the same or other banks Eg., Payment of dividendsRBI has also launched ECS Debit for payment to utility companies like Telephones, Electricity etcBANKNETSet up in 1991 by RBIMeant to facilitate transfer of inter-bank/ inter-branch messages within India by Public Sector banks who are members of this network Wide connectivity - Major Centres like Mumbai, Delhi, Calcutta, Madras, Nagpur, Bangalore, Hyderabad, Pune, Ahmedabad, Kanpur, Lucknow, Chandigarh, Kochi, Jaipur, Bhopal, Patna, Bhubaneshwar, Thiruvanantha-puram, Guwahati, Panaji, Jammu, etc Commercial BankingTechnology in Indian Banking 2007

INFINETIndian Financial Network Set up by RBI in June 1999 Satellite based WAN using VSAT (Very Small Aperture Terminal) technology The hub and Network Management System of INFINET are located in the Institute for Development and Research in Banking Technology, HydMajor applications: E-mail, Electronic Clearing Service - Credit and Debit, Electronic Funds Transferhttp://www.idrbt.ac.in/index_fromsm.html?infinet1.html?infinet

Commercial BankingTechnology in Indian Banking 2007

RTGS(Real Time Gross Settlement)Transfer of money from one bank to another on a real time basis and on gross basis.This is the fastest possible money transfer system through the banking channel.Real time means payment transaction is not subjected to any waiting periodGross settlement means the transaction is settled on one to one basis without bunching with any other transaction.Once processed, payments are final and irrevocable .Minimum / maximum amount stipulation for RTGS transactionsThe RTGS system is primarily for large value transactions.The minimum amount to be remitted through RTGS is Rs.2 lakhThere is no upper ceiling for RTGS transactionsThe RTGS service window for customer's transactions is available from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 12.30 noon on Saturdays for settlement at the RBI end.

Inward transactions Free, no charge to be leviedOutward transactions Rs. 2 lakh to Rs. 5 lakh - not exceeding Rs. 25 per transaction.Rs. 5 lakh and above not exceeding Rs. 50 per transaction.As on 23 February, 2011 there are more than 74,000 RTGS enabled bank branches.On a typical day, RTGS handles about 60,000 transactions a day for an approximate value of Rs.2,700 billion.

NEFTNational Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. NEFT operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that timeAs on December 31, 52427 branches of 89 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.Processing Charges/Service Chargesa) Inward transactions at destination bank branches (for credit to beneficiary accounts) Free, no charges to be levied from beneficiariesb) Outward transactions at originating bank branches charges applicable for the remitter- For transactions up to Rs 10,000 : not exceeding Rs 2.50 (+ Service Tax)- For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)- For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)- For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)

IFSC Code and MICR CodeIndian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India.This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.IFSC Code and MICR Code

MICR is the name given to the technology used in printing the code.One of the modes for safe and effective payments across the country. Introduced in early 80s by RBIEvery bank branch is given a unique MICR code and this helps the RBI to identify the bank branch and speed up the clearing process.The MICR code has nine digits in it For example, State Bank of India (SBI) Mumbai (Central) MICR code will be 400002009 wherein:400, the first three digits representing the city code for Mumbai;002, the next three digits representing the bank code for SBI;And 009, the last three digits representing the bank branch code for Andheri (West).Credit creation and Deployment of FundsCreation of credit is an important function of a commercial bank.A banks demand deposits arise mainly from :- Cash deposits by customers and Bank Loans and Investments. Cash Deposits By Customers :- These are termed as primary deposits as they arise from the actual deposits of cash in a bank made by its customers.Credit creation and Deployment of Funds Bank Loans And Investments :-These are termed as derivative or active deposits.The derivative deposits are lent in the form of loans or advances, discounting of bills or used for purchasing securities or other assets.Every loan creates a deposit, which increase the quantity of bank moneyThe size of derivative demand deposits is determined by the banks lending and investment activities. Primary deposits serve as a basis for creating derivative deposits, that is credit creation, and for increasing money supply.

Credit creation and Deployment of Funds

Example :- Suppose the Cash Reserve Ratio is 20% and a person deposits Rs. 10,000/- with Bank of India. This is primary deposit.

Bank Clearing houseThe clearing house is a voluntary association of banks under the management of a bank where the settlement accounts are maintained. Wherever Reserve Bank of India has its office (and a banking department), the clearing house is managed by it. In the absence of an office of the Reserve Bank, the clearing house is managed by the State Bank of India, its associate banks and in a few cases by public sector banks.In India there are about 1050 cheques clearing houses. These clearing houses clear and settle transactions relating to various types of paper based instruments like cheques, drafts, payment orders, interest / dividend warrants, etc.

Bank clearing house

The RBI plays a pivotal role in the development of Indias payment and settlement systems for both large-value and retail payments. The central bank played a pioneering role in automating the paper-based clearing system in the 1980s. It introduced an electronic funds transfer system and electronic clearing services (ECS Credit and Debit) in the 1990s. The special electronic fund transfer (SEFT) system was introduced in April 2003 (subsequently discontinued in March 2006, after the implementation of the National Electronic Fund Transfer (NEFT) system in November 2005) and the real-time gross settlement (RTGS) system in March 2004.