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Unit V: Different Modes of Online Banking (11 Hours) Different Means of Remittances Demand Draft, Mail Transfer, Telegraphic and Telephonic Transfer Credit Card-A.T.M

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Unit V: Different Modes of Online Banking (11 Hours) Different Means of Remittances Demand Draft, Mail Transfer, Telegraphic and Telephonic Transfer Credit Card-A.T.M Unit V: Different modes of online banking (11 Hours) Different means of remittances demand draft, Mail transfer, Telegraphic and Telephonic transfer Credit card-A.T.M. (Automated teller machine) Mobile banking -Home Banking- Inter linked branches banking –Online banking-computerization in banking field. Remittance Business Apart from accepting deposits and lending money, Banks also carry out, on behalf of their customers the act of transfer of money - both domestic and foreign.- from one place to another. This activity is known as "remittance business" . Banks issue Demand Drafts, Banker's Cheques, Money Orders etc. for transferring the money. Banks also have the facility of quick transfer of money also know as Telegraphic Transfer or Tele Cash Orders. In Remittance business, Bank 'A' at a place 'a' accepts money from customer 'C' and makes arrangement for payment of the same amount of money to either the customer 'C' or his "order" i.e. a person or entity, designated by 'C' as the recipient, through either a Branch of Bank 'A' or any other entity at place 'b'. In return for having rendered this service, the Banks charge a pre-decided sum known as exchange or commission or service charge. This sum can differ from bank to bank. This also differs depending upon the mode of transfer and the time available for effecting the transfer of money. Faster the mode of transfer, higher the charges. Demand Draft A demand draft or "DD" is an instrument most banks in India use for effecting transfer of money. It is a Negotiable Instrument. To buy a "DD" from a Bank, you are required to fill an application form which asks the following information : Type of instrument needed Name of the recipient Name of the sender Amount to be transferred Place where the transferred money is to be paid Mode in which money is to be paid i.e. in cash or through a Bank Account Mode in which you will pay money to the Bank i.e. in cash or by debit to your account The application form along with the cheque on your account or cash is deposited with the counter clerk who gives you a Demand Draft (which looks like a cheque) for the amount. Tips: Check the particulars like name of the beneficiary, amount, place where payable etc. filled in the DD, match these with what you had filled in the application form. Spellings of the beneficiary's name should be exactly the same. 1 Get the DD "crossed" for security. Your PAN number will be necessary if the amount of DD exceeds Rs.10,000/= Charges for issuing drafts differ from Bank to Bank. So if your requirements are large, do shop around for best bargain. Mail Transfers or Mail Orders This is the mode used when you wish to transfer money from your account in Center 'A' to either your own account in Center 'B' or to somebody else's account. In this mode of transfer, you are required to fill in an application form similar to the one for DD, sign a charge slip or give a cheque for the amount to be transferred plus exchange and collect a receipt. The Bank will, on its own, send an order to its branch at center 'B' to deposit the said amount in the account number designated by you.This is, however, a dying product and many banks like State Bank of India have since withdrawn this. Telegraphic Transfers or Tele Orders This is similar to the Mail Transfer except that the message is sent to center 'B' by way of a telegram and the money is deposited the next day. The mode of instructions nowadays is increasingly the fax. Electronic Mode More and more banks are now offering electronic mode of transfer of funds like Electronic Transfer System, Cash Management product etc. The remittance of funds through these modes is much quicker and the time is reduced to hours and in some cases even minutes. Banking Options When was the last time you paid a visit to the inside of a bank to make a withdrawal or a deposit? As technology evolves over time, the answer to this question likely becomes less and less, thanks to ATMs and online and mobile banking. ATM is an abbreviation for Automated Teller Machine, and it is a terminal that performs some of the functions of an actual bank teller, such as allowing the user to make withdrawals and deposits. Although there are still physical tellers inside banks to assist customers with daily transactions, the use of ATMs has become widespread. Online banking refers to banking transactions that can be performed with the use of a computer, and requires an internet connection to work. Another convenient form is mobile banking, which allows users to make bank transactions through the use of their smartphone or tablet. Mobile banking is the newest incarnation of banking transactions. 2 How are each of these relevant to you, and which is best for you? To answer those questions, let's take a closer look at each. Automated Teller Machine (ATM) Contrary to popular belief, the ATM has been around for quite some time now. ATMs are useful because they are available 24/7, so customers do not have to wait until bank hours to access their money. You also don't have to leave the convenience of your vehicle to withdraw or deposit money. Similar to fast-food drive-thru windows, the ATM has provided relief for individuals who are constantly on the move. ATM locations are another added benefit, because many shopping plazas and malls make it a point to include ATMs inside or nearby to give customers the opportunity to have access to their money for shopping. Many ATMs are now also inside convenience stores, restaurants, and other high-traffic areas, which makes it convenient for customers to access their money. Customers can even use their ATM card at stores where they are accepted, so they do not have to carry cash. And unlike with cash, if for some reason your ATM card is stolen or misplaced, your money cannot be accessed if the person does not know the four-digit PIN security code Automated Telling Machine Block Diagram: The automated teller machine consists of mainly two input devices and four output devices that are; Input Devices: Card reader Keypad Output Devices: Speaker Display Screen Receipt Printer Cash Depositor 3 Automatic Teller Machine Block Diagram Input Devices: Card Reader: The card reader is an input device that reads data from a card .The card reader is part of the identification of your particular account number and the magnetic strip on the back side of the ATM card is used for connection with the card reader. The card is swiped or pressed on the card reader which captures your account information i.e. the data from the card is passed on the host processor (server). The host processor thus uses this data to get the information from the card holders. Automated Teller Machine Card Reader Keypad: The card is recognized after the machine asks further details like your personal identification number, withdrawal and your balance enquiry Each card has a unique PIN number so that there is little chance for some else to withdraw money from your account. There are separate 4 laws to protect the PIN code while sending it to host processor. The PIN number is mostly sent in encrypted from. The key board contains 48 keys and is interfaced to the processor. Automated Teller Machine keypad Output Devices: Speaker: The speaker provides the audio feedback when the particular key is pressed. Display Screen: The display screen displays the transaction information. Each steps of withdrawal is shown by the display screen. A CRT screen or LCD screen is used by most of ATMs. Automated Teller Machine LCD Display Receipt Printer: The receipt printer print all the details recording your withdrawal, date and time and the amount of withdrawn and also shows balance of your account in the receipt. Cash Dispenser: The cash dispenser is a heart of the ATM. This is a central system of the ATM machine from where the required money is obtained. From this portion the user can collect the money. The 5 duty of the cash dispenser is to count each bill and give the required amount. If in some cases the money is folded, it will be moved another section and becomes the reject bit. All these actions are carried out by high precision sensors. A complete record of each transaction is kept by the ATM machine with help of an RTC device. ATM Networking: The internet service provider (ISP) also plays an important role in the ATMs. This provides communication between ATM and host processors. When the transaction is made, the details are input by the card holder. This information is passed on to the host processor by the ATM machine. The host processor checks these details with authorized bank. If the details are matched, the host processor sends the approval code to the ATM machine so that the cash can be transferred. Automated Teller Machine Networking 2 Types of ATM Machines Most of the host processors can support either leased line or dial up machines Leased line ATM machines Dial up ATM machines Leased Line ATM Machines: The leased line machines connect direct to the host processor through a four wire point to point dedicated telephone line. These types of machines are preferred in place. The operating cost of these machines is very high. 6 Dial Up ATM Machines: The dial up ATMs connects to the host processor through a normal phone line using a modem.
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