Scope of IT in Credit card and Debit card

Transaction system in Indian Banking

Sector

PRESENTED BY GROUP AF1

Introduction

Abankis afinancial institution & afinancial intermediary

It acceptsdepositsand channels those deposits intolendingactivities

A bank connects customers with capital deficits to customers with capital

surpluses

187
6
193
4
1949
195
5

Na
ti o
n
of aliza
14
t
ba ion
nk
s

reg
ula Ban
tio kin
ns
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Ac
t

1969

Na
r
Co simh
an
mm
itte
e
Re
for
m

Sta
ba te
Ind nk of
ia

Re
se
of rve B
I nd a n
k
ia
Ac
t

Pre
y b side
an n c
k

A brief look in History

1992

Types of banks

Commercial Banks

Co-operative Banks

Indigenous Banks

Relationship between Banking and

Economic Growth
Employment
Industrial
Development

Consumption

Income

BANKING
SYSTEM

Production

Investment
s

Savings

Recent Advancements in Indian

Banking Sector

Electronic Payment Services E- Cheques

Real Time Gross Settlement (RTGS)

Electronic Funds Transfer (EFT)

Electronic Clearing Service (ECS)

Advancements Continues

Automatic Teller Machine (ATM)

Point of Sale Terminal

Tele Banking

MAJOR CHALLENGES &

OPPORTUNITIES TO INDIAN BANKS

High transaction costs

IT revolution

Timely technological up gradation

Intense Competition

CHALLENGES & OPPORTUNITIES

Continues

Privacy and Safety

Global banking

Financial inclusion

Business process
Credit Card Transaction processing

Step1: Authorization

Step 2: Batching

Step 3: Clearing

Step4: Funding

Transaction Processing Overview

Current Card System

Delayed Transaction
Customer
Account

ATM

POS

Fraud
Detection
System

Existing
Card
System

Merchant
Bank
Customer
Bank

Online
transaction
Delayed Transaction

Issues in the current Process

Time to Market

Constraints the business in the launch of potential new services

Current system

Outdated & Complex

Difficult to change & test

Upgrade causes failures

Needs improvement in Fraud detection & cycle time

Recommendation

Replace existing card system with CAMS-II application

What is CAMS-II?

CAMS II is a mainframe CICS application.

It provides an environment in middleware

Connectivity and integration options to handle input and output of data

CAMS II runs on an architecture which is termed as "Umbrella"

Cams II Card System

Real time transfer

ATM

POS

Cams II Enabled Card System

Integrated Fraud detection &
Card system

Customer
Account

Merchant
Bank
Customer
Bank

Online
transaction
Real time transfer

Implementation diagnostics
Requirement

Existing legacy Card Systems application V/S CAMS II

Observation

CAMS II have the capability to support the majority of existing interfaces

Some of these are standard product e.g. interfaces to VISA

Customisation to support bank specific requirements

To map standard exit points in CAMS II

Ease of implementation

The current card numbering mechanism is retained.

Phased implementation - the card base resides on both the old and new
systems

Proposed to build a bridge between CAMS II and Cards

It will allow channels (e.g. Branch, Telephony, ROLB) to access un-migrated card

Advantages

Real time data processing through CICS

User interface to run batch jobs which removes the dependency on COBOL and JCLs

Designed to fit almost 90% of any existing banking systems

Ability to dynamically balance the processing demands of CAMS II and its related
components across the mainframe

Advantages Continues

Invisible to customers, seamless

No re-issue of cards

Minimise re-education of staf

Ability to work flawlessly with industry leading fraud detection systems like Falcon