Operational Aspects of CBS Environment | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE C: BANKING TECHNOLOGY
Operational Aspects of CBS Environment Operational Aspects of CBS (Core Banking System) Environment 1. Functions Performed by CBS CBS integrates all branches of a bank, allowing real-time transaction processing and centralized data storage. Major functions include: Customer Account Management Fund Transfers (NEFT, RTGS, IMPS) Loan Processing and EMI Management Cash Transactions and Deposits Cheque Clearing and Reconciliation Regulatory Reporting Example: A customer of Mumbai branch can deposit money at Delhi branch in real-time due to CBS integration. 2. Flow of Transactions in CBS All customer transactions, whether initiated from branch, ATM, mobile, or internet banking, flow through CBS where they are validated, recorded, and updated across all channels. Illustration: If ₹10,000 is withdrawn via ATM, the CBS system reflects the reduced balance instantly across mobile banking and internet porta...