RECENT BANKING SYSTEM WITH SPECIALIZED TO SMART CARD Dr .Richa Mishra UCCMS , Udaipur

Abstract: Introduction Today, we are having a fairly well developed Today, we are having a fairly well developed banking system. Trends in banking sector are banking system with different classes of – changing the industry and are having major public sector banks, foreign banks, private sector effects on consumer. Recent trends in banking banks – both old and new generation, regional sector fulfill with new technology who makes rural banks and co-operative banks with the life very simple to customers. , Reserve of India as the fountain Head of ATM card n Smart card are very useful in the system. money transaction. They trends saves the time In the past customer rarely notice the computer of customer and also banks. in current system or new technology that made the scenario "Key to the global village", slogan is information system operate .Today E- banking, only fulfill by applicability of advanced smart card; credit Card. ATM is very important technology ,. Smart Cards will bring big in banking sector. Today website electronic changes to the way people provide and receive mails and electronic bill presentment and information and the way they spend money. system are in important way the banks They will have a profound impact on retailing to reach their customers. and service delivery. New trends in banking sector is changing the A Smart Card is like an "electronic wallet". It industry and is having major effects on banking is a standard credit card-sized plastic relationship. Recent trends in banking sector intelligent token within which a microchip has fulfill with new technology who makes life very been embedded within its body and which simple to customers. Credit card, ATM card n makes it 'smart' .The rest of the paper is Smart card are very useful in money transaction. organized as follows; the next section briefly They trends saves the time of customer also discusses the Recent trends in banking system banks. Smart Cards will bring big changes to the .section two looks into history of smart card way people provide and receive information and ,what is Smart card n types of smart cards and the way they spend money. They will have a their uses. Section three looks into some profound impact on retailing and service application areas, their advantages and delivery.A Smart Card is like an "electronic benefits in this section the future directions of wallet". It is a standard credit card-sized plastic smart card technology giving more emphasis intelligent token within which a microchip has to security consideration and memory been embedded within its body and which makes management among others. The section also it 'smart'. It provides not only memory capacity, discusses some areas that need further studies but computational capability as well and thus the in order to improve the current state of smart chip is capable of processing data. It has gold cards so that they can fit into the future contacts that allow other devices to communicate growing banking system. Finally, the paper with it. This chip holds a variety of information, concludes in four sections . like medical/healthcare records. New Keywords: Banking System, Smart card, information and applications can be added advantage, benefit depending on the chip capabilities. Smart Cards

ISSN (PRINT): 2393-8374, (ONLINE): 2394-0697, VOLUME-4, ISSUE-6, 2017 46 INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR) can store several hundred times more data than a providing credit card facility to their clients to conventional card with a magnetic stripe and can offer them better and simpler financial solutions be programmed to reveal only the relevant to their problems’ credit card generally works by information. giving its holder an immediate authority to purchase services and goods such as travel and Objective of the study: hotel reservations as well as shopping for merchandise in and outside your own country.  To determine the recent trends in banking All the credit card comes with a , sector.  To determine the relation banking and 2. :- that deducts society, new technology & society and money directly from a consumer’s checking smart card & society. account to pay for a purchase. Debit cards eliminate the need to carry cash or physical  To know about the impact of new checks to make purchases. In addition, debit technology of banking system as like cards, also called check cards, offer the smart card on society. convenience of credit cards and many of the  To know about the new technology and same consumer protections when issued by recent trend in banking system. major payment processors like Visa or MasterCard. Unlike credit cards, they do not  To study the new trends in banking allow the user to go into debt, except perhaps for system and its products. small negative balances that might be incurred if RESEARCH METHODOLOGY the account holder has signed up for overdraft coverage. However, debit cards usually have  Sample size and methods of selecting daily purchase limits, meaning it may not be sample :- possible to make an especially large purchase For the satisfying the major objectives of the with a debit card. research, I have gone for both primary and secondary data collection. Read more: Debit Card  Source of data collection:- http://www.investopedia.com/terms/d/debitcard. Research will be based on two sources. asp#ixzz4jsXuv0yn A). PRIMARY DATA Follow us: Investopedia on Facebook Questionnaire: 3. ATM:- Primary data was collected by preparing An or automatic teller questionnaire for customers. machine (ATM), also known as a Cash point B). SECONADARY DATA (which is a trademark of Lloyds TSB), cash Secondary data will consist on different literature machine or sometimes a hole in the wall in like books, which are published, articles, British English, is a computerized Internet, Different banks manuals and website telecommunications device that provides the of banks, different website of relevant to smart clients of a financial institution with to card.In order to research relevant conclusion, financial transactions in a public space without research work needed to be designed in a proper the need for a cashier, human clerk or bank teller. way. ATMs are known by various other names Recent trends including ATM machine, automated banking 1. Credit Cards:- machine, and various regional variants derived Everyone carries a card these days. A credit card from trademarks on ATM systems held by is basically a plastic card with a magnetic strip particular banks. On most modern ATMs, the invented with the intention to simplify the customer is identified by inserting a plastic ATM complicated banking process for an individual in card with a magnetic stripe or a plastic smart card case he/she is short of cash, be it something with a chip, that contains a unique card number casual like shopping or something severe like an and some security information such as an emergency situation. Various banks and private expiration date or CVVC (CVV). financial organizations have now started

ISSN (PRINT): 2393-8374, (ONLINE): 2394-0697, VOLUME-4, ISSUE-6, 2017 47 INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR) is provided by the customer entering a personal coupled with rapid revolution in communication identification number (PIN). technologies and evolution of novel concept of 'convergence' of computer and communication Uses of ATM in banking sector Cash technologies, like Internet, mobile phone etc. Withdrawal and Balance Enquiry, Cash / Deposit, Bill , Sale of Paper Based Products:- E- Banking & internet:- The impact of e-banking is not limited to Bank and Information technology:- industrial and advanced emerging economies. In the five decades since independence, banking Even in countries with underdeveloped banking in India has evolved through four distinct phases. systems, E-banking has offered many new During Fourth phase, also called as Reform business opportunities. Phase, Recommendations of the Narasimham In simple words, e-banking implies provision of Committee (1991) paved the way for the reform banking products and services through electronic phase in the banking. delivery channels. Electronic banking has been Entry of new banks resulted in a paradigm shift around for quite some time in the form of in the ways of banking in India. today is in the automatic teller machines (ATMs) and telephone midst of an IT revolution. transactions. In more recent times, it has been Information Technology has basically been used transformed by the internet a new delivery under two different avenues in Banking. One is channel that has facilitated banking transactions Communication and Connectivity and other is for both customers and banks. For customers, the Business Process Reengineering. Information internet offers faster access, is more convenient technology enables sophisticated product and available around the clock irrespective of the development, better market infrastructure. customer’s location. For banks, it is a much more The middle and late 90s witnessed the tornado of efficient and cost- saving channel financial reforms, deregulation, globalization etc

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SMART CARD APPLICATION AREAS major active application areas for The first chip cards were simple prepaid -based smart cards include many telephone cards implemented in Europe in the of industries :. Here are some industries and their mid-1980s, using memory cards. Today, the applications: Industry Application Accountants Business cards, client id, promotions, calendar cards Airports Employee access cards, security ID badges Identification cards (ID cards), (POS) Discounts, Associations Memberships calendar cards Automobile dealers VIN ID cards, dealer loyalty, discounts, warranty cards Bars, nightclubs VIP cards, preferred door entry, membership cards Car Wash Frequency cards, pre-paid car wash cards Clubs Membership cards Computers Warranty card, customer support, internet access#'s, discounts Dry Cleaners Discount cards, frequent customer cards Golf Courses Membership cards, bag tags, prepaid greens, ball dispensers Hotels Discount, frequency cards, key cards, employee ID badges Investment Customer cards, calendar cards Library ID cards, bar codes Real Estate Business cards, telephone cards, calendar cards Rental Services Identification, preferred entry Restaurants Promotional, discount, membership, loyalty, preferred customer cards Retail Customer cards, cheque cashing, discount & loyalty cards Security , name badges Shopping Centers Customer, discount cards, loyalty programs Travel Agents Telephone cards, customer cards

 Financial Applications phone. Subscriber activation of programming on Electronic Purse to replace coins for small Pay-TV. purchases in vending machines and over-the-  Government Programs counter transactions. Credit and/or Debit Electronic Benefits Transfer using smart cards Accounts, replicating what is currently on the to carry Food Stamp and WIC food benefits in magnetic stripe bank card, but in a more secure lieu of paper coupons and vouchers. environment. Securing payment across the Agricultural producer smart marketing card to Internet as part of Electronic Commerce. track quotas.  Communications Applications  The secure initiation of calls and identification of Employee access card with secured passwords caller (for billing purposes) on any Global and the potential to employ to protect System for Mobile Communications (GSM) access to computer systems.

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 Physical Access Smart cards are an enhancement to Public Key Employee access card with secured ID and the Infrastructure (PKI) certificates. From your potential to employ biometrics to protect certificate server, you can generate user physical access to facilities.like certificates to verify a client’s identity. However, Transportation,Drivers Licenses, Mass Transit the private key for these certificates ends up on Fare Collection System & the hard drive of the system the client uses to Electronic Toll Collection Systems. access the secure content. By transferring that private key to a physically  Health Card , such as a smart card, you have a Consumer health card containing insurance secure, mobile identity certificate that clients can eligibility and emergency medical data. safely use for network access and document or e-  University Identification mail signing, regardless of where the access All-purpose student ID card (a/k/a/ campus card) point originates. , containing a variety of applications such as In addition, the current generation of smart cards electronic purse (for vending and laundry allows you to easily create and manage access machines), library card, and meal card. policies through roles for different users and groups. Advantage of smart card The key advantages of smart card technology One of the latest standards in secure access is include: secure ID cards, also known as smart cards.  The capacity provided by the on-board Given enough time and computing power, microprocessor and data capacity for hackers can and will obtain your passwords. highly secure, off-line processing. That’s why you should consider implementing  Adherence to international standards, smart cards, which boost access security. ensuring multiple vendor sources and Secure access competitive prices. By incorporating smart card logon access control  Established track record in real world to your network, you eliminate a applications. username/password compromise as a potential  Durability and long expected life span point of entry. In addition, deploying smart card (guaranteed by vendor for up to 10,000 logon to your network offers the following read/writes before failure). benefits:  Chip Operating Systems that support  Positive identification: You verify users by multiple applications and secure photo identification when issuing their independent data storage on one single account. card.  Strong authentication: Most smart cards use a nonreversible algorithm to Smart card…….The Future transmit user token requests and deliver the The important thing about Smart Cards is that user access token through similar security. they are everyday objects that people can carry  No repudiation: Because of the physical in their pockets, yet they have the capacity to and logical requirements, a person can’t deny retain and protect critical information stored in participation in a network transaction. electronic form. The “smartness” of Smart Cards  Secure certificate mobility: By placing comes from the embedded in user certificates on the card, they remain on the plastic card. Embedding similar circuits in the card after user logoff. other everyday objects, such as key rings, Active Card tops a very short list of vendors that watches, glasses, rings or earrings, could support several operating systems, including Red perform the same electronic function. The Hat Linux, Mac OS X, Solaris, Windows 98, Me, development of contactless card technology was NT, 2000, and XP. This includes authentication the catalyst for what is known as tags. Tags for the applications that run on these platforms function like contactless Smart Cards but are in and Web-enabled applications. the form of a coin, a ring or even a baggage label. Secure identity They are generally attached to objects such as gas bottles, cars or animals and can hold and protect information concerning that object. This

ISSN (PRINT): 2393-8374, (ONLINE): 2394-0697, VOLUME-4, ISSUE-6, 2017 50 INTERNATIONAL JOURNAL OF CURRENT ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR) allows the object to be managed by an sophisticated banks in the word is provided by information system without any manual data Indian companies and by Indians in foreign handling. The use of Biometrics will soon mean companies. Yet banks in India do not as yet that his/her hand, and the retina of the appear to be world class. Now a day’s banking eye or the sound of the voice can reliably identify industry is expanding in remark areas and people a person. Soon it will be possible to authorize the of those village areas are also talking benefits of use of electronic information in Smart Cards by these facilities private plays are also attracting in using a spoken word or the touch of a hand. these areas because of RBI guide lines. Thus we Also, Smart Card readers will be appearing on can say that Indian banking system well the PC and will enable the user to pay for goods developed that is why it is mostly affected by purchased over the Internet. This will be recession time. One reason is this is that the especially useful for small value purchases, regulatory authorities and various legislation. which are not really appropriate for credit card Competition are also playing main role in transactions. If you have products that have technologies upgrading in banking industry. relatively low value - for example a few pages of information about your product that customer Recent new trends are very important in banking may pay 50c for - they may well pay you in the system, E- banking, Information technology, future using a Smart Card. Credit card; Debit card and Smart card are very As a smart infrastructure for , useful service provided by banks. New Smart Card technologies will prove to be the technology saves the time of customer n also killer application for the networked economy. banks. Most of people who lives in urban areas The Smart Card will be "charged up" with money they know aware about to smart card uses n new and you will use it as you do cash or a phone technology but in rural area people don’t know card. In the near future, the traditional magnetic more about smart card and, credit card and new strip card will be replaced and integrated technology n new services about banks. together into a single card by using the multi- After studying the doctrinal part conducted a application Smart Card, which is known as an survey to find the result related to recent trends electronic purse or wallet in the Smart Card in banking system. I prepared a questionnaire industry. It will be used to carry a lot of sensitive and took a sample 40 respondents and and critical data about the consumers ever more conducting a survey and found out same than before when compared with the magnetic conclusion about the vise of people about strip card. banking services which are being discussed Smart Cards are a relatively new technology that below. already affects the everyday lives of millions of people. 1. That mostly respondents are using banking This is just the beginning; soon it will influence service but some of them relating to the way we shop, see the doctor, use the professions and business are using as a main telephone and even enjoy leisure!!! of monetary transaction in day to day routine. 2. The ratio of male or females is not similar; Conclusion & suggestions women participant in banking services is less In conclusion as has been rightly noted by then males but I being increases day by day. working group that the applicability of various 3. 60% Respondents says that they people ATM existing laws and banking practice to new and Credit Card and 30% prefer Smart Card. technology is not least and is still evolving, in the 4. Mostly general people are not aware about field of banking system ,there is a need for rules and regulation and legal provision but constant review of different law relating to some highly educated people pay deep banking and technology. interest in such provisions. 5. 60% people user of banking services know I would like to emphasize the role of institution about e-banking, 27% says somewhat and and incentives in ensuring globalization that 10% says that don't know. In result be can benefit all. The global giants in banking all over says that people are more aware and using the world are named by Indians and education in latest facilities of banking services. India. The best of technology for the most

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6. Credit card and Debit card is more useful  M2 Presswire. February 17, 1997. facility than Smart Card so banks should  PR Newswire. February 4, 1997. Frost & have to expand and make easy to service of Sullivan The Future Is In the Cards. smart card.  The Scotsman. March 5, 1997. Credit 7. In overall result we can say that most of Firms Cash in on Security. respondents are satisfied with banking  Smart card by Prof. Dr. Andreas Steffen services including Smart Card. They are  Workshop of future banking organize by using but few respondents which have even HMA & ISB 2004. faced any problem that are not satisfied.  Institute for Development and Research in Banking Technology References:  www.cardshow.com  Rankl, W., W. Effing. Smart Card  www.chipcard..com Handbook. John Wiley & Sons.  www.compinfo.co.uk/tpsmrt.htm  Guthery, Scott B., Timothy M. Jurgensen  www.gemplus.com/presse/java_1.html (1998). Macmillan Technical  www.javasoft.com/pr/1996/oct/pr96102 Publishing. 9-02.html  Allen, Catherine A. (ed.). Smart Cards:  www.sl.com Sizing Strategic Position Opportunities.  www.slb.com/et/cyberflex_faq.html#q1 Irwin, 1996.  www.slb.com/et/cyberflex_faq2.html#q  Business Wire. March 3, 1997. 9 and MicroModule Systems Team on  www.slb.com/et/universe_of_smart_car MCM for breakthrough display ds.html technology implemented in Gemplus  www.visa.com Smart .  www.wikipidia.com  Business Wire. March 4, 1997. Entrust  www.smartcardbassic.com Technologies Launches Partner Program.  www.CyberAdsstudio.com  Data Based Advisor. March 1997.  www.smart-card.com/  JavaCard API. Frequently Asked  www.india-reports.com Questions Version 1.1 October 25, 1996.  www.vikalpa.com/pdf/articles

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