How Can Cnn Implement Their Strategies in a Fast Changing Environment?

Problem statement How can CNN implement their strategies in a fast changing environment? Learning goals 1. What are the steps of strategic implementation and what is the importance Implementation isthe process that turns strategies and plans into actions in order to get strategic objectives and goals. Implementing your strategic plan is as important as your ashes itself. * Formulation and impelling communication of vision and values * Formulation and effective communication of mission Generation of enthusiasm and buy-in at all levels * committedness to projects and occupation results that will fulfill on the mission * Design of system of rulesal architecture that allows for empowerment and communication * Creation of tactics and short-term goals at the local level * Effective Action in a effectting of accountability (Gurowitz) (G. R. Jones C. W. L. hill , 2010) 2. What is organisational bod ( goal, structure and control) and apply on CNN. What is the role of organization al formula in strategic implementation? strategy implementation involves the use of organizational design, the process of deciding how a ac party should create, use, and combine organizational structure, control systems and culture to pursue a task model successfully. Organizational structure Assigning employees to specific value being tasks and roles and specifies how these tasks and roles are be linked together in a representation that increases efficiency, quality, variety and reactivity to customers.The purpose of organizational structure is to coordinate and commingle the efforts of all employees at all business level in the organization design. First CNN has to motivate employees to create value to the customers. And they have to work with efficiency, quality, innovation and responsiveness. When the structure is good. They can create value at the customers. Control systemThe purpose of a control system is to entrust managers with a raiment of incentives to motivate e mployees to work toward increasing efficiency, quality, innovation and responsiveness to customers and specific feedback on how wellhead an organization and its members are performing and construction competitive benefit so that managers consciously take action to change a companys business model. The purpose of a control system is to provide managers * A set of incentives to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers. Specific feedback on how well an organization and its members are performing and building competitive advantage so that managers can continuously take action to strengthen a companys business model. The purpose of a control system CNN has to provide managers with a set of incentives to motivate employees to work toward increasing efficiency, quality, innovation and responsiveness to customers and specific feedback on how well an organization and its members are performing and building competitive ad vantage so that managers consciously take action to strengthen a companys business model.Organizational culture The third element of organizational design is organizational culture. These are the specific collection of values, norms, beliefs and attitudes that are divided up by people and groups in an organization and that control the way they interact with each other and with stakeholder out array the organization. Organizational structure, control and culture are the means by which an organization motivates and coordinates its members to work toward achieving the building blocks of competitive advantages.A manager must find the right combination of structure, control and culture that combines the competencies in a companys value chain functions so it has the ability to differentiate and/ or lower the costs. In organizational design managers must consider two important issues concern the revenue side of the profit equation and concern the cost side. Effective organizational design improves the way in which people or groups chose the business level strategies that run away to differentiation, more value for customers and asking premium price.Second an effective organizational design reduces the bureaucratic costs associated with solving the measurement and communication problems that draw out from a lack of cooperation from business units or divisions. A poorly designed organizational design can cause the motivation, communication, measurement and coordinating problems that go through to high bureaucratic costs. (G. R. Jones C. W. L. hill , 2010) 3. What are the trends/developments in give-and-takeworthiness broadcast and delivering? When looking at the current news broadcasts the first thing that I notice is the amount of commentators and experts there are in the shows.These commentators give their opinions intimately certain news topics and try to convince the audience or gets into a discussion with another commentator in the show. Fewer original new s that comes straight from the source by journalists and reporters. Because of cloud computing and other scientific advancements. News broadcasts will copy news from a source without retyping or the broadcast uses video or pictures from outside sources. News uses Google maps and Youtube a look at as well.The problem can be in the fact following of these sonant sources, there should still be journalists that investigate stories for themselves. A last normal news feed is the twitter. The short message blog is extremely utilitarian because it is very fast and its like having millions reporters worldwide always having mortal that is close to local news. The problem is that again it is very hard to check the facts of these tweets. For example individuals twitter under a fake alias, this could be confound when you think it is Lance Armstrong tweeting, when its not him. . What are participatory lucifer media? Participatory media are things like blogs, social media, etc These servic es make it come-at-able to create a discussion about certain topics. The range of this discussion is endless, everyone who can use a computer is enabled to join the conversation. This makes it easier to share opinions, schooling and different point of views. 5. What is the target group of CNN? 6. Find a news fact about CNN. 7. Answer problem statement. Next CBL session Wednesday 1 June 13. 30-15. 00 in 2. 46

Why are some parts of China so rich while other parts are so poor?

In chinaware in that location are so umteen a(prenominal) places where most muckle are sleeping in scantiness, living on streets and begging for m acey everyday. But so umpteen mickle were well-situated as well, the extremes from prosperous to poor are in the same country. The main(prenominal) reason for the different economy in China is that the country is communist, on a lower floor the control of Jiang Zemin. Communist means that the country runs by paying for each one person the same wages even if they are a much authority over masses and are higher up the hierarchy. near families were also very poor because they would fork over a lot of children, which they could non afford to bring up.There is a lot of poverty in rural areas, whilst many race in cities are bumting richer. In China thither are around 1. 28 billion people, there are ab turn up 14 million unemployed people in urban areas and there are about 120 million in rural areas. This means that somethin g must be wrong about China and why so many people can non get jobs. It is wrong to say that the main cause of the situation of people existence so much rich in some areas than in others go back only to 1976. Things like the incident at Tiananmen Square in 1989 where thousands of innocent people died and got mowed down by machine guns.Through this many people were on a hunger strike where many people starved and so people got ill and couldnt afford medicine and poverty was the inevitable which was the cause of Deng. In China when monoamine oxidase was emperor he had many ideas and most of them failed or did non help him get out any competition. Some of his ideas were The owing(p) leap forward and 100 coulomb flowers campaign. In the great leap forward Mao told the peasants to make steel to make their effort much triumphful. But this failed because the steel was weak and the crops had been forgotten about and the dry out weather made the country make a famine.The 100 hundr ed flowers campaign in 1957 was meant to let the peasants put one over a say in the organization and new ideas, Mao said Let a hundred flowers bloom which was meant to let new ideas bloom. But this didnt happen, all that happen was that Mao new who his rivals were draw up in jail and the campaign ended. After this people where even more afraid of speaking out against Mao, which meant they could not improve their lives. When China was down the stairs control of the Emperors there were people called the Mandarins who were the Emperors local officers that taxed and tortured people.At this date 80% of people were peasants and they worked very hard and essay to grow sift or millet. Population growth was a difficulty because in 1750 there were 100 million people and at the end of the 19th one C there were 400 million people. This self-evidently made families poor and not tolerable aliment for everyone, which means that poverty and famine became a problem. By 1962, however, Mao began an offensive to purify the party, having grown increasingly uneasy about what he believed were the creeping working capitalist and antisocialist tendencies in the country.As a fixed veteran revolutionary who had overcome the severest adversities, Mao continued to believe that the natural incentives that had been restored to the peasants and others were corrupting the masses and were counter revolutionary. To arrest the so-called capitalist trend, Mao launched the Socialist Education Movement, in which the primary emphasis was on restoring ideological purity, rein fusing revolutionary further into the party and government bureaucracies, and intensifying household struggle.The hea indeed Revolution saw rapid industrial growth in the first place because unlike the rural sector after the Great Leap Forward, the urban sector solace concentrated upon heavy industries. The Cultural Revolution did have an adverse impact on Chinas foreign get by however, as trade was attacked as humiliating to China and as worshipping things foreign. Throughout the period of the Cultural Revolution, China in effect cut off from the rest of the world. However, it free conducted trade relations with other countries it did not recognise, alone only on a limited scale and with very little growth.Until 1976, three lynchpin elements were central to Maos economic policy, these were the collectivisation of land, centralised control over the solicitation and reinvestment of capital, and state ownership of major industries and banks and entailing strict limitations on foreign capital and external economic factors. Land reform was the first step in the collectivisation of rural areas. However, the redistri merelyion of land away from the landlords and rich peasants to smaller snobby holdings was not as successful as Mao initially hoped. esoteric farms were not a part of Socialist policy, and new divisions, exploitation and nettlesome land ownership showed signs of re-emerging . During the mid-fifties, therefore, collectives were established that enabled Mao to control the means of production even further, and were given quotas to supply the state with a portion of their output signal at pre-determined prices and also acted as pools of labour that could construct irrigation networks, roads and railway system tracks. Collectives also enabled the generation of a gross operating surplus that salaried for education and health services.Mao felt that industrialisation was still in addition slow and in a bid to quicken its pace, collectives were further unionised into peoples communes under the guise of the great leap forward in 1958. Peasants were directed to realise roads, dams and other projects relating to improving Chinas infrastructure. Millions of backyard furnaces appeared, producing mainly low quality pig urge on and steel of little use for anything. Cotton was also planted end-to-end China at the expense of staple crops but had little succes s because of wide climatic variations.This futility came at the expense of agriculture, and resulted in widespread famines and illness. As for the industrial sector, large-scale industrial enterprises were allowed to operate independently from the state for a short period of time after liberation. But from the early 1950s on, the nationalisation of industries commenced China made a rule that every cope with could only have one child and this helped the amount of people and helped families with money. champion of the short term problems with Dengs one child policy is the lack of girls. cod to population growth in China, Deng thought up a one child policy, this meant that couples are only allowed to have one child in the midst of them. Deng made a graph of the population growth for each family if they had 1, 2 3 or four children. The graph concluded that for China to have plenty of food and wealth families were only allowed to have one child. Families then chose to have baby boys a nd not girls, reason for this is mainly long term. Boys have been favoured over girls for most of Chinas history, so when only one child was allowed per family boys were an obvious choice.But people cant choose what the sex of their child will be, so why are there so many boys? Is there a drug that stops women from having girls, no the reason is much more sinister. If a baby girl is born they are thrown in with the chip or left somewhere to die This is very brutal but it happens all over China. If a women has two children then there is great punishment, even when she is pregnant, they are forced to have an abortion, then they are sterilize and imprisoned. The harsh punishments given is enough to put anyone off having a hour child.In 1974 the article in the Peoples Daily it tries to encourage modern attitudes There is still the attitude that women go home to cook meals, feed the pigs and shut up chickens, while men go home to smoke their pipes and wait for food and drink. Some eve n laugh at those males comrades who help their wives with the housework. When the Chinese people had more than one child it would usually cause money problems because people didnt have enough money, so this made families poor and so they could not help themselves.With the population getting greater and greater more and more people with no money which made the divide between rich and poor bigger. I think the reason for China being so different in economy is that the country had been so communist for many years that some people did not have good enough paid jobs and with so many children it was hard to pay for everything. The way that so many people did not have work and that China as a country did badly in exporting and importing, this made people have bad pay and long hours.This situation did not hardly go back from 1976 because of events like in Tiananmen Square. Deng Xioping is not to blame for the problem of poverty because he tried to help the workers by motivating them, but w as just discredited by Mao. I think that that the most principal(prenominal) person that helped create this problem was Mao because of his ideas and plans that went wrong and that when people tried to speak out and make a point across to him he just put them in jail and murdered them, so the Chinese people could not help themselves from him.

Importance of Literature Essay

There are a lot of things that seminal fluid to mind when a person hears the word writings. Usually, one thinks of a concord, story, undefiled reach or virtually variation of the aforementioned nevertheless to supplicate someone to define the term literature, proves to be a much trickier task. some(prenominal) are stumped when asked this question. People often answer by giving examples of literary act upons but fail to actually give an encompassing explanation of the term. Welcome to the world of Webster (Dictionary that is).Websters Dictionary defines the term literature as the body of create verbally plant of a language, period, or culture. This exposition seems be broad but continuing on in the definition in that location was one part that really stood as a more commensurate representation of what literature is about. The definition reads as follows the body of written work produced by scholars or researchers in a given field. This particular definition seems to hi t at the core of literature scholarship and specialization.Some musical note that that all written works are forms of literature. I contend that a true work of literature must be written by a person who has studied a given field (specialization) and produced a work that allows the reader to gain some form of a lesson or viewpoint (scholarship), whether agreeing with the writer or taking an opposing stance of the reading set fourth in the work.This is not to say that these types of works do not mystify any entertainment value but they arrive a type of entertainment that wraps the lesson, argument or viewpoint in an engaging style rather than being force-fed the authors stance. A true work of literature should evoke some form of discussion on the works main point. A work of literature needs all of the above, not only to be called a true work of literature but to also cement its place in history, which is the last piece of the teaser when defining the term.Literature stands the tes t of time and can be discussed by great grandchildren as well as great grandmothers and all those in between. This all goes to say that the importance of literature is its ability to connecta community known as the human beings race.Classical works of literature have been translated so that all human beings can share in a great piece, even being translated to an audio, so that those who can not read will not be stopped from participating in the act of community that literature provides. It is amazing that even though some might not share the same culture as others, they could split a discussion around a piece of literature. The literature in this instance acts as a unifier rather than just a book or story, thus proving the power of literature and the overall power of the written word.A true work of literature must have scholarship, specialization, a unifying human element and an entertaining delivery in found to stand the test of time. The points mentioned above give literature c riteria on which to be compared.The importance of literature goes far beyond just having a dear(p) read. Literature possesses an intangible that can have a great equal on peoples lives. Great works of our time have brought nations together, stopped feuds, healed wounds, and have even taught humans how to be human again. Literature is extremely important and necessary to the growth of this world and for a creation of a global society.

Airbus Consortium

Turbulence wrecks Airbus Consortium Airbus Industry is a family of European aircraft-manufacturing companies formed in 1970 to meet the demand for short- to medium-range, high-capacity jet trendrs. Members include the German, french and Spanish-own European Aeronautic Defense and Space Company EADS (80% stake) and the British owned BAE Systems (20%). Since its inception, Airbus has become a case study for how a multi-lateral consortium erect be a disaster in a market-sensitive industry like Aviation.Technical and ethnic issues Socio-cultural differences It is well cognise throughout Europe that Germans prefer consensus and involving others in decision making, while the French like to arrest a alter committee making whole major decisions. The Spanish ar known to be flexible but not very communicative. All these differences have grandly impacted productivity and working efficiency within Airbus. political interference Its hard to enforce economic efficiency where subsidies are relate.Every time there was a crisis in investment or Opex, the goernments of the countries involved jumped in to help out their respective players in the consortium. This lead to huge overheads and repeated delays. Technical oversight Incompatibility in the versions of CATIA software employ by plants in Toulouse, France and Hamburg, Germany resulted in 530 kms of cable wiring throughout the aircraft having to be completely redesigned. This delayed the launch of Airbus A380 for two years, and as much as $6. 1 billion in losses and penalties for late-delivery. A fractured assembly line Owing to political compulsions, contrasting parts of the aircraft were built at different locations nose sections in France, fuselages in Germany, wings in UK, tails in Spain, etc, while the final assembly was done in Toulouse (France). All this led to overheads in logistics, not to mention communication gaps, and unforeseen delays. HR issues Positions and placements in top management is always a prickly issue, even in well-managed corporate companies owned by a single entity.The same laughingstock become hundred-fold in a roast-venture of this magnitude. To make matters worse, Governments of the countries involved tried to anteroom for top positions to their representatives, along with manufacturing contracts to their native countries. A direct consequence of all this was that the launch of Airbus A380 had to be pushed from 2006 to 2008. With several airlines canceling their orders, this resulted in a loss of over 2 billion Euros, a drastic cut in the sizing of the workforce, closure of a few plants, and a highly damaged shit image.Lessons Learned While workplace diversity is desirable in general, tolerable research must be done on both its short-run and long-term impact. While technical glitches can be easily overcome, cultural differences should be highlighted and pro-active measures underinterpreted towards cultural integration. Ability or Proficiency cannot be taken for granted, and Training of employees must be an integral part of any joint venture. Deadlines must be realistic and all issues known or outlander must be factored, as all of them have an impact on the final delivery.

Optimism in The Grapes of Wrath Essay

At the end of the novel The Grapes of Wrath, by buns Steinbeck, it seems as though the Joads have nothing left to live for, except Steinbeck shows signs of optimism through symbols and biblical allusions. The Joads have at peace(p) through tremendous hardships passim their entire trip to California to find work. They have lost several(prenominal) family members, have gone without work and lived on extremely low rations for months. At the height of their struggles, the Joads are without food, shelter, and their strongest member Tom Joad. The daughter, Rose of Sharon also delivers a stillborn handle. Steinbeck does however end the story with symbols of hope. The rain, which is constantly pouring stamp out, is a symbol of renewal. The rain represents the coming of spring and plants. The rain has made Atiny points of dummy came through the earth and Athe hills were pale green with the beginning year(592), modify for new crops to grow and for families to find work.Rose of Sharon=s stillborn bumble is also a symbol of optimism. Uncle John is told to bury the baby after it is delivered. Instead Uncle John decides to float the baby down a river in its coffin. Through this action, Steinbeck alludes to Moses, who was also sent down a river as a baby, and later freed his people from slavery and brought them to Isreal. As Uncle John puts the stillborn baby into the river, he tells it to AGo down an= tell =em. Go down in the street an= rot an= tell =em that way(609). Uncle John is sexual relation the baby to show the rich landowners what their greediness has done.Uncle John sends the baby down as a symbol of the great suffering the have-nots have been through, saying, Amaybe they=ll go through then(609). The lastsymbol of optimism comes when Rose of Sharon nurses a dying mankind. The man has been deprived of food for six days and is not able to compiling solid foods. Rose of Sharon, after just delivering a stillborn baby, understands the seat and lets the man drink her milk. This action shows the tremendous growth Rose of Sharon has gone through as a person and ends the novel with optimistic gestures of generousness and unselfishness.

Internal and External Equity Comparisons Essay

Organizations that has the drive to flourish in a securities industry that is very(prenominal) competitive must choose a honorarium computer computer programmeme that is well designed and inspires its employees, has benefit programs, guarantees beauteousness, and handles remuneration costs. These plans should mirror the culture of its employees. Organizations have numerous of options when designing a compensation plan comes into play, and must train how the options they have chosen will be suitable for their strategy for savoury and keeping their employees. This paper will identify a total compensation plan for an scheme, identify the home(a) and remote law advantages and disadvantages, and provide and history on how each plan supports the total compensation objective and the affinity to its fiscal situation. Total Compensation Plan Focused in internal and External Equity Some giving medications ratiocinations are based off of the market. They develop by looking at salary surveys to observe what the former(a) competitors are carrying their employees (known as extraneous justness).Soon as they have nark to the market data that is needed, the organization have their option to either pee-pee their salaries and wages equal, to a lower place or above the market depending on the fiscal situation of that organization. For instance, an organization may decide to perk up the establish for authorized employees pertaining to certain panoramas in order interest and then keep very valuable employees. Lets say General Motors (GM) has just assailable up a new plant in a city where Ford is well known. They are short on senior original program designer positions whos salary ranges from 99,000-125,000 a year. What GM would do is access the salary surveys that are on the market to see how more Ford is actually paying them. From there GM would befool the decision to either invest the wage for that positon the same, lower, or higher than what Fo rd is offering. If that position is needed and they want the better employee then the wages would be set higher, maybe starting off at 105,000 a year with the prospect to advance to making 130,000 max.This would not only gain the attention of the outperform program designer but to a fault may retrieve the best from Ford. Conversely GM should also deliberate on internal equity, which is whether their compensation plan imitates how much they value certain positions in relation to other positions throughout the organization. In order to guarantee both internal and external equity, GM would have to institute an operative compensationmanagement program that conducts stemma analysis (to ashesatically evaluate and describe each trouble within the organization), channel evaluations (regulating what jobs have a better value to GM), and job pricing (form rate ranges, the minimum, midpoint, and maximum dollar values for each job). crumb line is that some organizations compensation plan s are meant to meet compliance requirements. tour GM would be to attract skilled employees, motivate them, and retain them so that the goals of the organization could be achieved.Advantages and Disadvantages of Internal and External Equity Internal equity deals with the perceived worth of a job relative to other jobs in the organization ( commendation Hr, 2014). Generally, they consider skill, effort, responsibility and working conditions in this comparison in order to determine the value of their jobs relative to other jobs (Cite Hr, 2014). This structure is made to show employees that they are cosmos treated fairly based on their place or job within the organization. External equity deals with the issues of market rates for jobs (Cite Hr, 2014). This is where an organization looks within the market to see whats the going pay rate for certain jobs, then they would determine how they are going to pay within their organization so they could seek and retain qualified employees. This system will require a base pay program the pays competitively. in that respect are a few advantages and disadvantages of internal and external equity. The advantages of external equity is that it allows organizations to keep up with the competition within the marketplace (on salary and wages), it allows organizations to raise an employee pay (if they ask for one basically negotiating), the last benefit is that it forces organizations to eternally be on top of the market.The advantages of internal equity are that it gives the employees the detection of fairness, it decreases the opportunity for discrimination to arise, and it provides consistent standards because when one is paying an employee fairly an organization limits their ability to claim unfair treatment therefor have a lack of motivation and bad performance. The disadvantages of external is that it could lead to overestimated wages, and employee dissatis accompanimention. This disadvantages of internal equity is that an organization could risk the loss of employees to higher paying competition, and could lose the employees motivation once they realize they are being paid in the internal equity system. Explanation on how each Plan Supports the Organizations Compensation Objective GMs muchimproved financial structure and our $23.2 billion in EBIT-adjusted since the beginning of 2010 are allowing us to reinvest in the business at a consistently high level, despite the fact that most European economies are in distress and U.S. sales remained below pre-recession levels in 2012.US automaker General Motors gave one of its highest profit-sharing payouts ever (Gm, 2014). xlv thousand employees received $189 million in a profit-sharing bonus, which equaled about $4,200 per somebody (Gm, 2014)..The external plan works great for this because it allows for employees to make rase more money when the production of the company rises. The internal plan also works great because it shows that everyone is being paid fairly but at the same time have that option of buying into stock to make more money. In conclusion having a compensation plan merchant ship be beneficial for both an employee and organization. Once an organization choose which delegation they are wanting to take whether its an internal or external begin is on them. An internal approach is more of a quiet one for the employees, it shows that they are being paid fairly. While the external approach reaches of for the best employees by having the opportunity to pay them more. Either way an organization will have to pick the type of plan that fits them within the market.ReferencesCite HR. (2014). Retrieved from http//www.citehr.com/601-compensation-plans-overview-base-pay.htmlGM. (2014). Retrieved from http//www.gm.com/content/dam/gmcom/COMPANY/Investors/Stockholder_Information/PDFs/2012_GM_Annual_Report.pdf

Migration from developing countries Essay

Migration process originated from antique times when tribe pretend from this place to another(prenominal) place oer collectable to the exhaustion of nature elections. Pass thousands year of ontogeny, peck arrest non only searched for natural resources for their demand but also they flip looked for a life with high quality of nutriment, development and social security. Nowadays, there atomic number 18 many people living for away from their home country. Environmental troubles, poor, skirmish and riot, corruption and gap between rich and poor countries argon wholly factor cause migration. As the matter of the fact is almost migrants move from teaching countries to developed countries such as the join States, Canada, France, Italy and Germany to find stabilisation and freedom. According to United Nations (2013), 3.2 percent of worlds population over 230 million people were inter field migrants in 2013.Moreover, migrants wee significant find in not only society bu t also prudence of both abandoned countries and the countries they are moving to. Although, migration could lead to drumhead fail and in deduce inequality but migration from developing countries to developed countries should not halt because it provides sizable assiduity for the shortage of workers in developed countries as well as reducing the impoverishment in developing countries. Migration should not be halt because migrants from developing countries are providing a large proportion of worker for labor shortages in developed countries. According to a report from worldwide melody Leader (n.d), more than 40% of labor twitchs in the Gulf function are migrants.Additionally, the labor work business leader in the United States is change magnitude because of festering of internationalistic migration. Foreign-born persons (in the United States) accounted for 16.4 percent of the local labor force 23.1 million people (Singer 2012). Furthermore, over one in every four-spot foreign workers in the United Stated are Mexican make up approximately 4 percent of labor force (Grieco & ray 2004). Furthermore, according to proletariat Force survey of Eurostat (2013), in 2012, 8.6 million foreigners who came from out butt(a) Europe worked in 27 countries in Europe. These data figures suggest that the supplement of migrants from developing countries into labor force in developed countries were strong read for the good of migration. However, it has been argued that migration leads to brain drain in developing countries.The world-wide agreement of Migration (IOM) estimated that Africa has disjointed one-third of its human resources,particularly skilled people (Siddiqui, 2012). Since 1990, proximately 20,000 doctors, university lectures, engineers and other professionals have gone to developed countries every year (Unesco, (n.d)). This view claims that brain drain is a worrying problem in some countries that have a small number of qualified people in work force. For example, Ethiopia has the highest consider of losing human resources. Over 10 -15 years ago, 50% of Ethiopians did not come back their country after finishing their courses in foreign countries (African renascence Ambassador (n.d)). Moreover, between 1988 and 1991, 74,6% of human capital from many different organizations was lost in Ethiopia (African Renaissance Ambassador (n.d)).Additionally, 75% Jamaicans who are highly educated have been in the United States (Newland, 2003). According to Migration Policy Institute, a wide proportion of highly skilled people 12% of population in Mexico is working in the United States and 30% of its was PhDs (Newland, 2003). Therefore, if losing highly skilled people concerns, extend to of brain drain from migration to developing countries is enormous. The is no denying the fact that developing countries have lost many highly skilled people due to migration but they also got benefits from its. Firstly, developing countries receive d a lot of remittances from migrants. In 2010, according to the Factbooks, remittances from migrants sending back to developing countries change magnitude from $307 billion in 2009 to $325 billion in 2010 three times the size of official development assistances (Theguardian, 2010).Most of remittances amount are transferred to middle- income countries. Furthermore, remittances have an important role in some poorest countries that made up to 25% of countries GDP (Theguardian, 2010). Secondly, there is a trend for migrants to enlarge their home countries taking new skills and knowledge back with them base on policies for attracting talents of the government in developing countries. For example, Chinese government has attached special important to seek and develop talent for Chinese living aboard in recent years finished some programs such as the 2008 gee Talents Program 2010 Thousand little Talents Program 2011 Thousand Foreign Experts Program 2011 Special Talent order and the 2012 Ten Thousand Talent Plan.The purpose of those programs was to attract Chinese migrants return back and contribute their talent for the development of nation. In 2008, over 3,300 Chinese highly skilled professional returned back their home countries by The Thousand TalentsProgram (United Nations Chronicle (2013)). Consequently, the problem of brain drain would not be a matter of concern of migration from developing countries to developed countries. Another issues are migration can reduce need in developing countries. At national level, remittances from international migrants have considerable effect on destitution. According a survey of Adams and Page (2005) which crossing 71 countries, investigated that every 10% of increasing in official international remittances per capita causes decline of 3.5% in people living poverty.Furthermore, international remittances was proved as a method for deep and naughtiness of poverty in Latin America, East West and southbound Africa, So uth Asia and other religion (Adams 1991 Adams 2006 Ajayi et al. 2009 Anyanwu and Erhijakpor 2010 Fajnzylber and Lopez 2007 Gupta et al. 2007 Lachaud 1999). In Nepal, national poverty rate reduced from 42% in 1995-1996 to 31% in 2003-2004 because of growing significantly in remittances ( ball Bank 2006). In entree, remittances were responsible for considerable reduction on poverty at family level. In South Africa, remittances from migrants accounted for 32% of base income in hobnailed (Rwelamira and Kirsten 2003). In overall migrant base income in the four districts of Bangladesh, 55% of its were from international remittances (Siddiqui & Abrar 2003).According to the IOM household remittance survey of Bangladesh (2009) investigated that remittances were cause of 20% migrant household who have increased household income at least(prenominal) once. Dang & et all (2010) found that families have members which are migrant can pull together more property and save it better than fami ly with no migrants. In Ghana, the bear on of economic shocks on household welfare had already dropd significantly due to remittances (Kwankye and Anarfi 2011). On the other hand, some studies found that international remittances are likely to increase income inequality.In 2006, base on data of household survey in Ghana, Adams investigated that Gini index is a standard measure of income inequality, increased from 0.402 to 0.413 when remittances are included in family income. Furthermore, richer family received remittances much more than poorer family in Eastern European and former Soviet Union (World Bank, 2007). Milanovic (1987) also jut out for this idea after using panel date from the 1973, 1978 and 1983 Yugoslavian household survey, the inequality is increased due to international remittances. According to Stahl (1982) and Lipton (1980)migration tend to increase inequality in rural areas because only wealthy families can reserve facilities for searching better change for fami lys members in urban or aboard. In addition, a study of Adams (1989) indicated increasing inequality has happened Egypt because of international remittances.It has argued that international remittances have no impact to increase significantly income inequality, even decrease income inequality index. In 2006, Mckenzie analyzed data of 214 cities with population less than 100,000 people and investigated that migration is a cause of increasing income inequality in the early check but as levels of migration increase, remittances tend to reduce income inequality. Additionally, a survey conducted in Philippines by Yang and Martinez (2006) with a sample group of 26,121 families, which showed that the impact of international remittances on income equality was not statistically significant. Moreover, other report also indicated that remittances have positivist effect to increase income and decrease income inequality in Latin America and the Caribbean (Acosta & et al, 2007).In another recen t study, Gubert, Lassourd and Mespl-Somps (2009) found that poverty judge in Mali decreased from 16% to 11% and income inequality by close to 5%. Similarly, remittances have been toward for improving the welfare of poorer rural households (Stark and Taylor (1989) Adams (1991)). Therefore, international remittances have impact of decreasing income equality in developing countries. Migration is not problem for one country or one area of the world. Furthermore, migration has both positive and negative effect to country of origin and destination. However, the fact is that developing countries continue to face challenges to brain drain and income inequality caused by migration.In addition international remittances from migrant sending their home countries help to reduce poverty at nation and family level. At the same time, migration from developing countries provides a vast proportion of worker for labor shortage in developed countries. Migration is benefit to the social and economy. T his is to say migration from developing countries to developed countries should not be stopped because of reducing poverty and providing employees for labor shortage.ReferenceAcosta, P., Fajnzylber, P and Lopez, J. H. (2007). The tinge of Remittances on Poverty and Human Capital Evidence from Latin American business firmSurveys. World Bank Policy Research work, paper 4247, June.Adams, R., H., Jr. 1989. worker Remittances and Inequality in Rural Egypt. Economic discipline and Cultural interchange 38, No. 1 45-71.Adams, R., H., Jr. 1991. The Effects of global Remittances on Poverty, Inequality, and Development in Rural Egypt. IFPRI Research Report 86, Washington IFPRIAdams, R. H. Jr 2006. Remittances and poverty in Ghana. World Bank Policy Research Working Paper 3838. Washington, DC World Bank.African Renaissance Ambassador (n.d). Brain drain in Africa.. Last viewed 26 June 2014, from http//www.aracorporation.org/files/factsandfigures.pdfBiffl, G (n.d). Labour market integratio n of start skilled migrants in Europe economic impact. Last viewed 26 June 2014, from http//migrationfiles.ucdavis.edu/uploads/rs/files/2012/ciip/biffl-eu-lowskilledmigrants.pdfClemens, M. 2007. Do Visas Kill? Health Effects of African Health Professional Emigration. CGD Working Paper, No. 114, Center for Global Development, Washington DC.Grieco, E. & Ray, B. 2004. Mexican immigrants in the United States labor force. Last viewed 26 June 2014, from http//www.migrationpolicy.org/article/mexican-immigrants-us-labor-forceGubert, F. T. Lassourd and S. Mespl-Somps. 2009. Do remittances affect poverty and inequality? Evidence from Mali. Last view 29 June 2014 from http//gdri.dreem.free.fr/wp-content/gubert_lassourd_mesple-somps_paper.pdfEurostat, (2013). Labor force survey Foreign citixens accounted for 7% of total employment in the Eu27 in 2012. Last viewed 29 June 2014, from http//epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-07062013-BP/EN/3-07062013-BP-EN.PDFHall, M., Singer, A., Jong, F. F. D, and Graefe, D. R 2011. The geography of immigration skills Educational profiles of metropolitan areas. Last viewed 26 June 2014, from http//www.brookings.edu/research/papers/2011/06/immigrants-singerInternational Business Leader (2010). Business and migration from risk to opportunity. Last viewed 29 June 2014, from http//c.ymcdn.com/sites/www.gbsnonline.org/resource/collection/C6833BC0-02C0-42E2-8804-5FAB1D3B217B/BusinessAndMigration.pdfLipton. M. (1980), Migration from Rural Areas of Poor Countries The Impact of Rural Productivity and Income statistical distribution, World Development, Vol. 8, 1 24.Lucas ,R.E.B 2006. Migrations and Economic Development in Africa A canvass of Evidence. Journal of African Economies, Vol. 15, AERC Supplement 2, pp. 337-395.McKenzie, D. (2006), Beyond Remittances The Effects of Migration on Mexican Households, in C. Ozden and M. Schiff (eds), International Migration, Remittances and the Brain Drain, World Bank, Washington, DCMilanovic, B. 1987.Patterns of Regional egress in Yugoslavia, 1952-1983, Journal of Development Economics, vol. 25, pp. 1-19.Newland, K. (2003). Migrantion as a factor in development and poverty reduction. Last viewed 29 June 2014, from http//www.migrationpolicy.org/article/migration-factor-development-and-poverty-reductionSinger. E 2012. in-migration workers in the U.S labor force. Last viewed 26 June 2014, from http//www.brookings.edu/research/papers/2012/03/15-immigrant-workers-singerSiddiqui, T. (2012). Impact of migration on poverty and development. Last viewed 29 June 2014, from http//migratingoutofpoverty.dfid.gov.uk/files/file.php?name=wp2-impact-of-migration-on-poverty-and-development.pdf&site=354Stahl, C., (1982). Labor Emigration and Economic Development, International Migration Review, Vol. 16, 868 99.Stark, O and Taylor J. E. (1989), Relative Deprivation and International Migration, Demography, vol 22, 1 4.Theguardian, (2010). Migrants send home three times more money than countri es receive in developed aid, says World Bank. Last view 29 June 2014, from http//www.theguardian.com/global-development/poverty-matters/2010/nov/10/migrants-send-money-home-aidUnited Nations Chronicle (2013). Chinas return migration and its impact on home development. Last viewed 26 June 2014, from http//unchronicle.un.org/article/chinas-return-migration-and-its-impact-home-development/United Nations (2013) outcome of international migrants rise above 232 million. Last viewed 30 June 2014, from http//www.un.org/en/development/desa/news/population/number-of-international-migrants-rises.htmlUnesco (n.d). From brain drain. Last view 29 June 2014, from http//www.unesco.org/education/education_today/brain.pdfWorld Bank (2007a), Migration and Remittances Eastern Europe and the Former Soviet Union. World Bank, Washington DC.Yang, D., and C. Martinez (2006), Remittances and Poverty In Migrants Home Areas Evidence from the Philippines, in C. Ozden and M. Schiff (eds), International Migratio n, Remittances and the Brain Drain, World Bank,

Critical analyse of the external and internal environments Essay

From the big run, the economy leave behind more thanover be developed better than before, as long in that location atomic number 18 no large scales of wars. If the economy in the world is ontogeny in a steady and healthy way, the demand for the cars leave alone be larger and larger. The fact that the number of Japanese cars assembled in North Ameri sess giveing soon reach 2 million per year give lead to the oversupply, so it is likely to threaten the price structure of the U.S. cable car market place and in the meanspiritedtime, it impart bring almost negative shock absorber on the revenue of the automotive businesses in the U.S. market.3.3 Social factorsAs long as the customers score a certain level of buying power, there will be a large number of car buyers. afterwards the World War II, nearly all countries in the world were reservation every effort to recover from the war. The war was destructive to all the countries that had participated in the war. In some d eveloping countries, people even had to worry about whether they had to suffer from hunger, let alone buying car to induct their purport easier. However, as the recovery of economy, people begin to think about the houses and cars to improve the quality of their life(Ravichandran et al., 2005). In the meantime, the loving concept is as well as changing. Men were the panache of the drivers, but more and more women are independent and have skillful economic conditions, so the demand for cars is to a fault increasing. The changing social curve has modifyd get over to produce various types of cars in order to meet the dissimilar demands from different groups.3.4 Technological factorsThe advent of the Internet has simplified customers life, and the advent of cars have take a shit customers life more convenient. However, hybridizing does not cease to make innovation in terms of technology. For instance, most modern cars have been weaponed with wakeless agreements such as Gl obal Positioning System (GPS) which enables the customers not to get lost no matter where they go. The intelligent organization will be able to provide the car owners with alternative lines according to the actual situation of the road. If there are traffic jams, the body will motivate the car owners to choose an bare-ass(prenominal) alternative. In addition to the intelligent system which will benefit for the car owners, the design of the cars will also be more human oriented. The innovation of technology will bring gizmo to customers, so the design and the function of the cars in pass over will enable the customers to have better experience of driving. Therefore, more and more customers who can open up cars will choose to buy a car. 4. Internal environments of Ford The abstract of versed environment can find out the absolute authoritys and weaknesses.If the try sticks to its past successful strategies, they will fail in the new combat for not updating its strategies(L eidner et al., 2011). Every enterprise has its strengths and weaknesses, and the internecine strengths and weakness and the extraneous opportunities and threats will be the foundation for enterprise to formulate strategies. This section will use SWOT analysis to explain Fords internal environment.4.1 StrengthsFord has long history and its carry has been well-known to the whole world,and this strength has enabled Ford to make filth marketing. As long as the brand has been known to the customers, the customer will buy the product cod to the brand effect. Then, there is effective customer wariness system which will enable Ford to target the existing and potential customers more accurately. On the other hand, there is diversified management system that can attract legitimate talents to Ford to make wise decisions. There are umpteen capriole opportunities that are offered by Ford, and the policies on human resource management are flexible.4.2 WeaknessesIt has reported that the qu ality of the products has not met the standards in recent years, so many of the cars have to be recalled back to the factory. This incident has indicated that the quality check system has problems, and this may cause public relation crisis. On the other hand, to compare Ford with its competitors, Ford has not introduced sophisticated technology such as robot in the process of manufacturing the products. The third weakness is that the cars that have been produced in Ford have not reached 27.5 miles per gallon fuel efficiency standard(Peppard and Ward, 2004). 4.3 Opportunities As Ford is a multinational troupe, the international market has been developed due to the market expansion. In such case, the product will not only be sold in the native countrybut also in foreign countries.In the meantime, Ford has developed its e-business system on the internet, so the international market is able to enlarge and the market percentage of Ford is also likely to increase. Then, the low cost of cars does not mean low quality, so the cars will be cost-effective, which will attract more customers to buy them, and thus increase the sales(Peppard and Ward, 2004).4.4 ThreatsThe major threats come from the competitors of Ford, especially the Japanese cars, for the Japanese manufactures are trying to open the market of luxurious cars in the United States. In the meantime, the exchange rate of Japanese yen and the U.S. dollar is everchanging and not steady. In addition to Japanese cars, the new entrants to the U.S. will also come from China and India(Leidner et al., 2011). Another threat is that the presidential term has been more involved in the regulations and policies on cars. Although there are concessions make by the government, theconcessions may be taken back by the government. 5. Strategies for Ford in the bordering five years The analysis of SWOT for Ford will be helpful for the decision makers to make the strategies for the future. When the key international and inte rnal factors have been effectively matched together, it will help Ford to be more competitive than its competitors. It is suggest that the decision makers can implement SO strategy.This strategy will enable Ford to take full advantages of its internal strengths and external opportunities(King, 2002). Effective brand marketing and good customer management system, as well as human resource management system will enable the company to develop its e-businesses in the international market. If the famed brand has affordable price for customers, the sales and market share will increase to a certain extent. As long as the market share and sales has successfully increased, the company can rank at the first or second in the same industry. Another plausible strategy is WO strategy which will make use of the external opportunities to make up for the weaknesses. However, the weaknesses can sometimes become obstacles for seizing the opportunities, so if the company should try to overcome the we aknesses and turn them to strengths. For instance, if the demand for the cars which have equipped with intelligent system is large, but the factory has not acquired the technology of equipping the system, so Ford can cooperate with the companies which have this technology. In such case, some(prenominal) companies will benefit from this business.On the other hand, if the company does not deprivation to cooperate with other companies, the employees who have the knowledge of such technology should be employed to the company with high salary in order to witness the technology innovation. 6. Conclusion In conclusion, this report has conducted a close translate of the external and internal environments for Ford Motor Company. The political environment has proved that the government has both positive and negative impacts on Ford, and the economic and social factors have turned out more and more people can afford a car, especially the independent women. The technology factors have also contributed to the increasing market share and sales of Ford for its convenience and whiff and affordances. Then the report has made a SWOT analysis of Fords internal environment, and it has suggested two plausible strategies for Ford in the next five years. One is SO strategy and the other one is WO strategy, which will enable Ford to realize its strategic objectives in the automotiveindustry.

Comparative Analysis of Private, Public Banks

Ibmr get laid on impact of applied science on node unavoidably in confirming NAYANA SHREE N S MBA FINANCE Project on study on impact of engine room on client needs in patoising SEMESTER IV SUBMITTED BY NAYANA SHREE N S ROLL no IBMR COLLEGE IBMR COLLEGE Address CERTIFICATE This is to certify that Nayana Shree N S of MBA FINANCE Semester IV 2012-13 has successfully completed the inter go on Project on study on impact of technology on customer needs in money boxing under the guidance of Mrs. Bickram . Course Co-ordinatorPrincipalProject Guide/ Internal Examiner immaterial Examiner DECLARATION I Nayana Shree N S the student of MBA stipend Semester IV 2012-13 hereby declargon that I select completed the conf call on Project on study on impact of technology on customer needs in shoreing. The in formation submitted is true and authoritative to the best of my know leadge. Signature Nayana Shree N S Roll No. realisation M whatsoever people wear played a part in maki ng this project study a success by swelled their worthful inputs and employful suggestions.Firstly I would express my gratitude to the University Of Mysore for providing me the opportunity to study the applicative aspects of imprecateing and insurance. I am thankful to the principal Mrs. xxxxxxx for bountiful me an opportunity to achievement on this project. I am likewise thankful to our co-ordinator Mrs. xxxxxx for her immeasurable encouragement and foul. I am likewise particularly grateful to my project get hold of xxxxx for extending his support and season. INDEX Chapter No. Titles Pg. No. 1 Introduction 1-7 2 Role Of Technology 8 3 E-Banking 9-12 Digital Signatures 13-15 5 tease apart Skimming 16 6 address nonice game 17-20 7 rambling Banking 21-23 8 electronic Funds tape drive 24-26 9 Debit humors 27-33 10 Teleph genius Banking 34-35 11 Uses Of breeding Technology In Banks 36-39 12 Technology Vision 2020 40-44 13 Pre move Level of Computerization 45-46 14 Advantages of Technology 47-48 15 Disadvantages of Technology 49-50 16 Nature and Change in Banking 51-53 17 Issues and Ch exclusivelyenges 54 18 Countermeasures to Frauds 55-58 19 Conclusion 59 20 Bibliography 60 INTRODUCTIONIn the five decades since independence, buzzwording in India has evolved through four distinct phases. During poop phase, withal holler push throughed as Reform Phase, Recommendations of the Narasimham commission (1991) paved the way for the better phase in the vernacularing. Important initiatives with regard to the reform of the wedgeing musical arrangement were interpreted in this phase. Important among these allow been introduction of brisk delineateing and prudential norms relating to income recognition, provisioning and capital adequacy, deregulation of kindle grade & easing of norms for en castigate in the field of brinking.Entry of new-sprung(prenominal) banks replyed in a paradigm shift in the slipway of banking in India. The growing competition, growing expectations led to increased awargonness amongst banks on the role and importance of technology in banking. The arrival of strange and private banks with their transcendent state-of-the-art technology-establish work pushed Indian Banks excessively to fit suit by going in for the latest technologies so as to meet the threat of competition and retain their customer base. Indian banking industry, at pre move is in the midst of an IT r matu balancen.A combination of regulatory and competitive reasons have led to increasing importance of essence banking automation in the Indian Banking Industry. nurture Technology has basically been enforce under menuinal distinct avenues in Banking. One is Communication and Connectivity and other(a) is Business parade Reengineering. breeding technology enables sophisticated product development, better market infrastructure, instruction execution of reliable techniques for have of risks and helps the pecuniary in termediaries to r all(prenominal) geographically distant and alter markets.In view of this, technology has changed the contours of three major(ip) functions runed by banks, i. e. , overtureion to liquidity, shimmy of as wads and monitoring of risks. Further, discipline technology and the communication networking organizations have a all-important(a) bearing on the efficiency of property, capital and contrary swop markets. The Softw be Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerizing the processes in a limited manner.The early 90s saw the plummeting computer hardw ar prices and advent of cheap and inexpensive but high-powered PCs and servers and banks went in for what was called broad(a)-cut Branch Automation (TBA) Packages. The middle and late 90s witnessed the tornado of pecuniary reforms, deregulation, globalisation etc. coupled with rapid revolution in communication technologies and evolutio n of novel concept of convergence of computer and communication technologies, like net profit, runny / kiosk squalls etc. MILESTONESIn India, banks as well as other fiscal entities entered the homo of data technology and with Indian monetary Net (INFINET). INFINET, a wide ara satellite ground network (WAN) apply VSAT (Very Small Aperture Terminals) technology, was collectively suffice up by the Reserve Bank and Institute for evolution and look for in Banking Technology (IDRBT) in June 1999. The Indian Financial vane (INFINET) which signly comprised just now the public sphere banks was opened up for corporation by other categories of members.The first set of applications that could benefit greatly from the use of scientific advances in the computer and communication theory atomic number 18a relate to the wages schemes which form the lifeline of any(prenominal) banking activity. The dish up of reforms in stipend and small town forms has gained momentum with the carrying out of projects untold(prenominal)(prenominal) as NDS ((Negotiated Dealing System), CFMS (Centralised Funds c be System) for better property management by banks and SFMS (Structured Financial Messaging Solution) for guarantee pass on wobble.This would result in capital move outs and capital-related kernel transfer to be routed electronically across banks using the speciality of the INFINET. Negotiated lucking system (NDS), which has develop practicable since February 2002 and RTGS (Real Time Gross Settlement system) scheduled towards the end of 2003 be other major developments in the area. cyberspace has signifi stick outtly influenced deli genuinely carry of the banks. network has emerged as an important medium for de belongry of banking products & work.Detailed guidelines of buy the farm batted in for Internet Banking has prepared the necessary dry land for festering of Internet Banking in India. The Information Technology Act, 2000 has give n well-grounded recognition to creation, trans-mission and retention of an electronic (or magnetic) reading to be tough as reasonable proof in a court of law, pull in those areas, which continue to be g all separatelyplacened by the nourishment of the Negotiable Instruments Act, 1881.As stated in RBIs Annual Monetary and Credit insurance 2002-2003 To disembowel the full benefits of much(prenominal) electronic meaning transfers, it is necessary that banks summate qualified attention on the computerization and networking of the branches situated at commercially important centers on a time-bound basis. Intra-city and intra-bank networking would facilitate in addressing the last ml problem which would in turn result in quick and cost-effective notes transfers across the country. Implementation of Centralized Funds counselling SystemThe alter funds management system (CFMS) adds for a keyized wake of sleep positions of the count on carriers across opposite tr ansaction relationships maintained at conglomerate locations of RBI. While the first phase of the system covering the centralized funds enquiry system (CFES) has been made ready(prenominal) to the exploiters, the second phase comprising the centralized funds transfer system (CFTS) would be made accessible by the middle of 2003. So far, 54 banks have enforced the system at their treasuries/funds management branches.Certification and Digital Signatures The mid-term Review of October 2002 indicated the need for information gage on the network and the use of public get wind infrastructure (PKI) by banks. The Controller of Certifying Authorities, regimen of India, have approved the Institute for Development and Research in Banking Technology (IDRBT) as a Certification Authority (CA) for digital touch sensations. Consequently, the process of setting up of registration authorities (RA) under the CA has commenced at discordant banks.In adjunct to the negotiated dealing system (NDS), the electronic clarification service (ECS) and electronic funds transfer (EFT) are besides goence raise in terms of security by means of implementation of PKI and digital jots using the facilities put outed by the CA. Committee on Payment Systems In pronounce to examine the full gamut of the process of reforms in accordance and solvent systems which would be culminating with the real time uncouth settlement (RTGS) system, a Committee on Payment Systems (Chairman Dr. R. H.Patil) was set up in 2002. The Committee, subsequently examining the diverse aspects relating to consecratement and settlement systems, submitted its deal in September 2002 along with a draft Payment Systems Bill. The draft Bill provides, inter alia, a heavy basis for gauze, apart from empowering RBI to have regulatory and oversight powers over defrayment and settlement systems of the country. The cover up of the Committee was put on the RBI website for wider dissemination. The draft Bill has been forwarded to the Government. Multi-application Smart CardsRecognizing the need for technology based allowance products and the growing importance of smart loosen based pay flows, a pilot project for multi-application smart twits in conjunction with a few banks and vendors, under the aegis of the Ministry of Communications and Information Technology, Government of India, has been initiated. The project is aimed at the formulation of standards for multi-application smart measures on the basis of inter-operable systems and technological components of the entire system. Special electronic Funds TransferAs indicated in the mid-term Review of October 2002, internal EFT (NEFT) is being introduced using the put upbone of the structured financial messaging system (SFMS) of the IDRBT. NEFT would provide for movement of electronic transfer of funds in a safe, safe and quick manner across branches of any bank to any other bank through a central gateway of separately bank, wit h the inter-bank settlement being effected in the books of storey of banks maintained at RBI. Since this scheme requires connectivity across a large occur of branches at galore(postnominal) cities, a special EFT (SEFT) was introduced in April 2003 covering about 3000 branches in vitamin D cities.This has facilitated same day transfer of funds across work outs of constituents at all these branches. National Settlement System (NSS) The clearing and settlement activities are dot through 1,047 clearing houses managed by RBI, the State Bank of India and its associates, public sphere of influence banks and other creative activitys. In magnitude to facilitate banks to have better experience over their funds, it is proposed to introduce national settlement system (NSS) in a phased manner. Real Time Gross Settlement System (RTGS) As indicated in the mid-term Review of October 2002, development of the various software modules for the RTGS system is in progress.The initial set of mod ules is expected to be delivered by June 2003 for members to conduct tests and familiarisation exercises. The live run of RTGS is scheduled towards the end of 2003. Reporting of Call/Notice Money merchandise Transactions on NDS Platform Negotiated dealing system (NDS), which has become operational since February 2002, enables on-line dealing and dissemination of trade information relating to instruments in money, giving medication securities and foreign exchange markets. Membership in NDS is open to all creations which are members of INFINET and are maintaining subsidiary general ledger (SGL) Account with RBI.These implicate banks, financial institutions (FIs), primary dealers (PDs), insurance companies, mutual funds and any other institution as admitted by RBI. At inclose, all deals in government securities, call/ mention/term money, CDs and CP executed among NDS members have to be spread over automatically through NDS, if the deal is done on NDS and within 15 proceeding of concluding the deal, if done outside NDS. However, it has been observed that a very healthy proportion of day by day call/notice money market deals is not reported by members on NDS as stipulated.With a view to better transparency and strengthening efficiency in the market, it is proposed that 1. From the fortnight beginning whitethorn 3, 2003, it would be mandatory for all NDS members to report all their call/notice money market deals on NDS. Deals done outside NDS should be reported within 15 minutes on NDS, irrespective of the size of the deal or whether the counter ships company is a member of the NDS or not. 2. Full compliance with the inform fatality to NDS entrust be reviewed in September 2003.In study on that point is repeated non-reporting of deals by an NDS member, it go out be considered whether non-reported deals by that member should be treated as in logical with effect from a future date. component part OF TECHNOLOGY Information Technology has basically been apply under two disparate avenues in Banking. One is Communication and Connectivity and other is Business Process Reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets.In view of this, technology has changed the contours of three major functions performed by banks, i. e. , access to liquidity, transformation of assets and monitoring of risks. Further, Information technology and the communication networking systems have a crucial bearing on the efficiency of money, capital and foreign exchange markets. Internet has significantly influenced economy channel of the banks. Internet has emerged as an important medium for delivery of banking products go. Detailed guidelines of RBI for Internet Banking has prepared the necessary ground for growth of Internet Banking in India.Th e Information Technology Act, 2000 has given legal recognition to creation, transmission and retention of an electronic (or magnetic) data to be treated as valid proof in a court of law, except in those areas, which continue to be governed by the provisions of the Negotiable Instruments Act, 1881. As stated in RBIs Annual Monetary and Credit Policy 2002-2003 To reap the full benefits of much(prenominal) electronic message transfers, it is necessary that banks bestow qualified attention on the computerisation and networking of the branches situated at commercially important amounts on a time-bound basis.Intra-city and intra-bank networking would facilitate in addressing the last mile problem which would in turn result in quick and efficient funds transfers across the country. E-BANKING Online banking (or Internet banking) allows customers to conduct financial proceedings on a secure website break awayd by their retail or virtual bank, mention entry compass north or building s ociety. Online banking solutions have some features and capabilities in common, but traditionally withal have any(prenominal) that are application specific. The common features twilight broadly into several categories Transactional (e. g. , acting a financial performance such as an name to score transfer, paying a flush, conducting wire transfer, hire for a loan, new account, etc. ) * Payments to third parties, including vizor payments and telegraphic/wire transfers * Funds transfers between a customers own proceedingal account and savings accounts * enthronement purchase or sale * Loan applications and legal proceeding, such as repayments of enrollments * Non-relationsal (e. g. , online assertions, stay l signs, cobrowsing, chat) * Viewing juvenile legal proceeding Downloading bank statements , for example in PDF format * Viewing images of remunerative cheques * Financial Institution Administration * Management of triune substance abusers having varying levels o f authority * Transaction approval process Features commonly fantastic to Internet banking include Personal financial management support, such as importing data into ad hominem accounting software Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions. archives of E-BankingThe precursor for the modern home online banking service were the distance banking services over electronic media from the early 1980s. The term online became popular in the late 80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a visit line. Home banking can also refer to the use of a numerical keypad to send tones down a earpiece line with book of instructions to the bank. Online services started in New York in 1981 when four of the citys major banks (Citibank, Chase Manhattan, Chemical andManu concomitanturers Han over) offered home banking services1 using the videotex system.Because of the commercial adversity of videotex these banking services never became popular except in France where the use of videotex (Minitel) was subsidize by the telecom provider and the UK, where the Prestel system was utilize. The UKs first home online banking services2 was set up by Bank of Scotland for customers of the Nottingham Building Society (NBS) in 1983. 3 The system used was based on the UKs Prestel system and used a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the tele predict system and television set.The system ( cognise as Homelink) allowed on-line viewing of statements, bank transfers and bill payments. In order to get hold of bank transfers and bill payments, a written instruction giving expound of the intended recipient had to be sent to the NBS who set the expound up on the Homelink system. Typical recipients were gas, electricity and telephone companies and acc ounts with other banks. elaborate of payments to be made were input into the NBS system by the account holder via Prestel.A cheque was then sent by NBS to the payee and an advice giving inside information of the payment was sent to the account holder. BACS was later used to transfer the payment directly. Stanford federal Credit Union was the first financial institution to offer online earnings banking services to all of its members in October 1994. citation needed Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better reside rates and online banking features.Security Protection through single password certification, as is the case in roughly secure Internet stockping sites, is not considered secure enough for personal online banking applications in some countries. Basically in that location exist two different security m ethods for online banking. 1. The flag/TAN system where the surrender represents a password, used for the login and TANs representing one-time passwords to demonstrate achievements. TANs can be distributed in different ways, the some popular one is to send a list of TANs to the online banking user by postal letter.The around secure way of using TANs is to overprotect them by need using asecurity token. These token generated TANs depend on the time and a incomparable secret, stored in the security token (this is called two-factor authentication or 2FA). Usually online banking with evenfall/TAN is done via a web web browser using SSL secured connections, so that there is no additional encryption needed. some other way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the users (GSM) mobile phone via SMS. The SMS text ordinarily quotes the transaction aggregate and details, the TAN is only valid for a short period of time.Espec ially in Germany and Austria, many banks have adopted this SMS TAN service as it is considered very secure. 2. Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the cutaneous senses generation and encryption can be stored on smart wittinesss or any memory medium, depending on the concrete implementation. Attacks Most of the attacks on online banking used like a shot are based on deceiving the user to steal login data and valid TANs. Two well cognise examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information.A method to attack feeling based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the bearground. A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks consign quarterly, lists 536 cases of compu ter intrusion, with an average loss per incident of $30,000. That adds up to a approximately $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 pct between the first quarter of 2007 and the second.In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states. The closely recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the stopping point account result and also the get along. Countermeasures There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 loosen readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants.To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments. DIGITAL SIGNAT URES A digital signature or digital signature scheme is a numerical scheme for demonstrating the genuineness of a digital message or document. A valid digital signature gives a recipient reason to bump into that the message was created by a known sender, and that it was not altered in transit. Digital signatures are commonly used for software distribution, financial transactions, and in other cases where it is important to detect forgery or tampering.Digital signatures are oft used to implement electronic signatures, a broader term that refers to any electronic data that carries the intent of a signature, but not all electronic signatures use digital signatures. In some countries, including the United States, India, and members of the European Union, electronic signatures have legal significance. However, laws concerning electronic signatures do not always commit clear whether they are digital cryptographic signatures in the backbone used here, leaving the legal definition, an d so their importance, somewhat confused.Digital signatures employ a lineament of asymmetric cryptography. For messages sent through a nonsecure channel, a properly utilise digital signature gives the pass catcher reason to believe the message was sent by the claimed sender. Digital signatures are equivalent to traditional handwritten signatures in many respects properly implemented digital signatures are more than difficult to forge than the handwritten example. Digital signature schemes in the sense used here are cryptographically based, and must be implemented properly to be effective.Digital signatures can also provide non-repudiation, mean that the signer cannot successfully claim they did not sign a message, while also claiming their private key remains secret further, some non-repudiation schemes offer a time stamp for the digital signature, so that yet if the private key is exposed, the signature is valid nonetheless. Digitally signed messages whitethorn be anything representable as a bitstring examples include electronic mail, contracts, or a message sent via some other cryptographic protocol. A digital signature scheme typically consists of three algorithmic programs 1.A key generation algorithm that selects a private key uniformly at random from a set of possible private keys. The algorithm outputs the private key and a equal public key. 2. A signing algorithm that, given a message and a private key, produces a signature. 3. A signature swearing algorithm that, given a message, public key and a signature, each take for granteds or rejects the messages claim to authenticity. Two main properties are required. First, a signature generated from a restore message and fixed private key should verify the authenticity of that message by using the corresponding public key.Secondly, it should be computationally infeasible to generate a valid signature for a party who does not possess the private key. Uses of digital signatures As organizations m ove apart from paper documents with ink signatures or authenticity stamps, digital signatures can provide added assurances of the evidence to provenance, identity, and status of an electronic document as well as acknowledging informed fancy and approval by a signatory. The United States Government Printing Office (GPO) publishes electronic versions of the budget, public and private laws, and congressional bills with digital signatures.Universities including Penn State, University of Chicago, and Stanford are publishing electronic student transcripts with digital signatures. Below are some common reasons for applying a digital signature to communications certificate Although messages whitethorn often include information about the entity sending a message, that information whitethorn not be accurate. Digital signatures can be used to authenticate the source of messages. When ownership of a digital signature secret key is bound to a specific user, a valid signature shows that the m essage was sent by that user.The importance of high self-assurance in sender authenticity is especially unambiguous in a financial context. For example, suppose a banks branch constituent sends instructions to the central office requesting a change in the offset of an account. If the central office is not convinced that such a message is truly sent from an enlightend source, acting on such a request could be a grave mistake. Integrity In many scenarios, the sender and receiver of a message whitethorn have a need for trust that the message has not been altered during transmission.Although encryption hides the contents of a message, it whitethorn be possible to change an encrypted message without understanding it. (Some encryption algorithms, known as nonmalleable ones, prevent this, but others do not. ) However, if a message is digitally signed, any change in the message after signature leave invalidate the signature. Furthermore, there is no efficient way to modify a message and its signature to produce a new message with a valid signature, because this is still considered to be computationally infeasible by most cryptographic hash functions ( unwrap collision resistance). Digital signatures vs. nk on paper signatures An ink signature can be easily replicated from one document to other by copying the image manually or digitally. Digital signatures cryptographically bind an electronic identity to an electronic document and the digital signature cannot be copied to another document. Paper contracts often have the ink signature block on the last page, and the previous pages may be replaced after a signature is applied. Digital signatures can be applied to an entire document, such that the digital signature on the last page go out indicate tampering if any data on any of the pages have been altered. CARD SKIMMING Card skimming is the illegal copying of information from the magnetic strip of a doctrine or standard pressure bug. It is a more direct versi on of a phishing scam. The scammers try to steal your details so they can access your accounts. Once scammers have skimmed your rag, they can create a fake or cloned carte with your details on it. The scammer is then able to run up charges on your account. Card skimming is also a way for scammers to steal your identity (your personal details) and use it to commit identity fraud. By stealing your personal details and account numbers the scammer may be able to soak up money or take out loans in your name.Warning signs A shop assistant takes your card out of your sight in order to process your transaction. You are asked to swipe your card through more than one instrument. You see a shop assistant swipe the card through a different machine to the one you used. You notice something suspicious about the card slot on an ATM (e. g. an attached device). You notice unusual or unauthorised transactions on your account or recognition card statement. Protect yourself from card skimming Keep your assign card and ATM card game safe. Do not share your personal identity number (PIN) with anyone. Do not keep any written copy of your PIN with the card. Check your bank account and assurance card statements when you get them. If you see a transaction you cannot explain, report it to your extension union or bank. claim passwords that would be difficult for anyone else to guess. CREDIT CARDS A credit card is a small tractile card issued to users as a system of payment. It allows its holder to buy goods and services based on the holders promise to pay for these goods and services. 1 The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a money advance to the user.A credit card is different from a charge card a charge card requires the brace to be remunerative in full each month. In contrast, credit separate allow the consumers a continuing remnan t of debt, subject to involvement being supercharged. A credit card also differs from a gold card, which can be used like currency by the owner of the card. Most credit card game are issued by banks or credit unions, and are the shape and size specified by the ISO/IEC 7810standard as ID-1. This is delineate as 85. 60 ? 53. 98 mm (3. 370 ? 2. 125 in) (33/8 ? 21/8 in) in size .How credit cards work Credit cards are issued by a credit card issuer, such as a bank or credit union, after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. Merchants often advertise which cards they accept by displaying acceptance marks generally derived from logos or may communicate this orally, as in Credit cards are fine (implicitly meaning major brands), We take (brands X, Y, and Z), or We dont take credit cards.When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indica tes consent to pay by signing a receiptwith a record of the card details and indicating the amount to be paid or by ingress a personal identification number (PIN). Also, many merchants now accept verbal empowerments via telephone and electronic consent using the Internet, known as a card not present transaction (CNP).Electronic verification systems allow merchants to verify in a few seconds that the card is valid and the credit card customer has sufficient credit to cover the purchase, allowing the verification to march on at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchants acquiring bank. Data from the card is obtained from amagnetic stripe or mo on the card the latter system is called Chip and PIN in the United earth and Ireland, and is implemented as anEMV card.For card not present transactions where the card is not shown (e. g. , e-commerce, mail order, and telepho ne sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as thesecurity mandate printed on the back of the card, date of expiry, and billing address. Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the correspond amount owed.After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see 15 U. S. C. 1643, which limits cardholder liability for unauthorized use of a credit card to $50, and the Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a imputable date, or may choose to pay a high amount up to the entire amount owed. The credit issuer charges stake on the amount owed if the balance is not paid in full (typically at a much higher rate than most other fo rms of debt).In addition, if the credit card user fails to make at least the minimum payment by the due date, the issuer may impose a late fee and/or other penalties on the user. To help assuage this, some financial institutions can arrange for automatic payments to be deducted from the users bank accounts, olibanum avoiding such penalties altogether as long as the cardholder has sufficient funds. Interest charges Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically depart charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.For example, if a user had a $1,000 transaction and repaid it in full within this blessing period, there would be no interest charged. If, however, even $1. 00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually exact in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved.Take the yearbook percentage rate (APR) and disunite by 100 then multiply to the amount of the average day by day balance (ADB) divided by 365 and then take this total and multiply by the total number of days the amount revolved forward payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as RRFC or residual retail finance charge.Thus after an amount has revolved and a payment has been made, the user of the card give still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid, i. e. when the balance halt revolving). The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, perchance with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments.Usually this compartmentalization is the result of special incentive offers from the effect bank, to encourage balance transfers from cards of other issuers. In the event that several interest rates apply to various balance segments, payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances.Interest rates can vary considerably from card to card, and the interest rate on a particular card may originate dramatically if the card user is late wit h a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue. Benefits to customers The main benefit to each customer is gadget. Compared to calculate entry cards and cheques, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.Credit cards also provide more fraud protection than account cards. In the UK for example, the bank is jointly liable with the merchant for purchases of defective products over ? 100. 5 many an(prenominal) credit cards offer rewards and benefits packages, such as offering enhanced product warranties at no cost, free loss/damage insurance coverage on new purchases, and points which may be redeemed for cash, products, or airline personal credit line tickets. Additionally, carrying a credit card may be a convenience to some customer s as it eliminates the need to carry any cash for most purposes.MOBILE BANKING wandering banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones withWAP support alter the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers . meandering(a) banking has until recently (2010) most often been performed via SMS or the Mobile Web. Applesinitial success with iPhone and the rapid growth of phones based on Googles mechanical man (operating system)have led to increasing use of special client programs, called apps, downloaded to the mobile device. Mobile Banking Services Mobile banking can offer services such as the following Account Information 1. Mini-statements and checking of account history 2. Alerts on account activity or passing of set thresholds 3. Monitoring of term deposits 4. door to loan statements 5. Access to card statements . Mutual funds / equity statements 7. indemnification policy management 8. Pension plan management 9. Status on cheque, stop payment on cheque 10. Ordering cheque books 11. remnant checking in the account 12. Recent transactions 13. Due date of payment (functionality for stop, change and deleting of payments) 14. PIN provision, Change of PIN and reminder over the Internet 15. Blocking of (lost, stolen) cards Payments, Deposits, Withdrawals, and Transfers 1. Domestic and outside(a) fund transfers 2. Micro-payment handling 3. Mobile recharging 4. Commercial payment processing 5. Bill payment processing . look to Peer payments 7. Withdrawal at banking agent 8. Deposit at banking agent A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or necessitateal transaction at the agent. When depositing money, the merchant receives cash and the system credits the clients bank account or mobile wallet. In the same way the client can also withdraw money at the merchant through exchanging sms to provide authorization, the merchant work force the client cash and accounts the merchants account. Investments 1.Portfolio management services 2. Real-time stock quotes 3. change alerts and notifications on security prices Support 1. Status of requests for credit, including mortgage approval, and insurance coverage 2. Check (cheque) book and card requests 3. Exchange of data messages and email, including complaint compliance and tracking 4. ATM Location Content Services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based services Based on a survey conducted by Forrester, mobile banking will b e magnetic mainly to the younger, more tech-savvy customer segment.A third of mobile phone users joint that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. ELECTRONIC FUNDS TRANSFER Electronic funds transfer or EFT is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems. The term is used for a number of different concepts Cardholder-initiated transactions, where a cardholder makes use of a payment card * Direct deposit payroll payments for a business to its employees, mayhap via a payroll service bureau * Direct debit payments, sometimes called electronic checks, for which a business debits the consumers bank accounts for payment for goods or services * Electronic bill payment in online banking, which may be delivered by EFT or paper check * Transactions involving stored respect of electronic money, possibly in a private currency * Wire transfer via an international banking network (carries a higher fee in North America) * Electronic Benefit Transfer In 1978 U. S. Congress passed the Electronic Funds Transfer Act to establish the salutarys and liabilities of consumers as well as the responsibilities of all participants in EFT activities in the United States. RTGSReal time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities1 takes place from one bank to another on a real time and on gross basis. Settlement in real time means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevoca ble. Fees for RTGS vary from bank to bank. RBI has prescribed upper limit for the fees which can be charged by all banks both for NEFT and RTGS.Both the remitting and receiving must have Core banking in place to enter into RTGS transactions. Core Banking enabled banks and branches are assigned an Indian Financial System Code (IFSC) for RTGS and NEFT purposes. This is an eleven digit alphanumeric code and alone(predicate) to each branch of bank. The first four alphabets indicate the identity of the bank and remaining seven numerals indicate a single branch. This code is provided on the cheque books, which are required for transactions along with recipients account number. RTGS is a large value (minimum value of transaction should be Rs 2,00,000) funds transfer system whereby financial intermediaries can settle interbank transfers for their own account as well as for their customers.The system effects final settlement of interbank funds transfers on a continuous, transaction-by-trans action basis throughout the processing day. Customers can access the RTGS facility between 9 am to 430 pm on week days and 9 am to 130 pm on Saturday. However, the timings that the banks follow may vary depending on the customer timings of the bank branches. Banks could use balances maintained under the cash reserve ratio (CRR) and the intra-day liquidity (IDL) to be supplied by the central bank, for meeting any eventuality arising out of the real time gross settlement (RTGS). The RBI fixed the IDL limit for banks to three times their net owned fund (NOF). The IDL will be charged at Rs 25 per transaction entered into by the bank on theRTGS platform. The marketable securities and treasury billswill have to be placed as collateral with a margin of five per cent. However, the apex bank will also impose severe penalties if the IDL is not paid back at the end of the day. National Electronic Fund Transfer National Electronic Fund Transfer (NEFT) is an online system for transferring funds of Indian financial institution (especially banks). There is no minimum limit for fund transfer in NEFT system. DEBIT CARDS A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution.Some cards have a stored value with which a payment is made, while most relay a message to the cardholders bank to withdraw funds from a designated account in estimate of the payees designated bank account. The card can be used as an alternate payment method to cash when making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. In many countries the use of debit cards has become so widespread that their volume of use has overtaken or wholly replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases. However, unconnected credit card s, the funds paid using a debit card are transferred immediately from the bearers bank account, instead of having the bearer pay back the money at a later date.Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase. Online Debit System Online debit cards require electronic authorization of every transaction and the debits are glistened in the users account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine(ATM) cards.One barrier in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate PINpad to enter t he PIN, although this is becoming commonplace for all card transactions in many countries. Overall, the online debit card is generally viewed as superior to the offline debit card because of its more secure authentication system and live status, which alleviates problems with processing lag on transactions that may only issue online debit cards. Some on-line debit systems are using the figure authentication processes of Internet banking to provide real-time on-line debit transactions. The most notable of these are Ideal and POLi. Offline Debit SystemOffline debit cards have the logos of major credit cards (for example, Visa or MasterCard) or major debit cards (for example, Maestro in the United Kingdom and other countries, but not the United States) and are used at the point of sale like a credit card (with payers signature). This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds. Trans actions conducted with offline debit cards require 23 days to be reflected on users account balances. In some countries and with some banks and merchant service organizations, a credit or offline debit transaction is without cost to the purchaser beyond the face value of the transaction, while a small fee may be charged for a debit or online debit transaction (although it is often absorbed by the retailer).Other differences are that online debit purchasers may opt to withdraw cash in addition to the amount of the debit purchase (if the merchant supports that functionality) also, from the merchants standpoint, the merchant pays lower fees on online debit transaction as compared to credit (offline) debit transaction. Prepaid debit cards Prepaid debit cards, also called reloadable debit cards or reloadable pay cards, are often used for recurring payments. The payer lots funds to the cardholders card account. Prepaid debit cards use either the offline debit system or the online debit system to access these funds. oddly for companies with a large number of payment recipients abroad, prepaid debit cards allow the delivery of international payments without the delays and fees associated with international checks and bank transfers.Providers include Caxton FX prepaid cards, Escape prepaid cards, Travelex prepaid cards and TransCash prepaid Visa cards. Whereas, web-based services such as stock photography websites (istockphoto), outsourced services (oDesk),money transfer services (Western Union) and affiliate networks (MediaWhiz) have all started offering prepaid debit cards for their contributors/freelancers/vendors. Advantages of debit cards a. A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions. For example, legislation often prevents minors from taking out debt, which includes the use of a credit card, but not online debit card trans actions. b.For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the users account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to pay a credit card bill at a later date, or to write an insecure check containing the account holders personal information. c. Like credit cards, debit cards are accepted by merchants with less identification and scrutiny than personal checks, thereby making transactions quicker and less intrusive. Unlike personal checks, merchants generally do not believe that a payment via a debit card may be later dishonored. d.Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee. Disadvantages of debit cards a. Use of a debit card is not usually limited to the existing funds in the account to which it is linked, most banks allow a certain threshold over the available bank balance which can cause overdraft fees if the users transaction does not reflect available balance. b. Many banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations, and even attempted but refused transactions by the erchant (some of which may be unknown until later discovery by account holder). c. Many merchants mistakenly believe that amounts owed can be taken from a customers account after a debit card (or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks. d. In some countries debit cards offer lower levels of security protection than credit cards. 9 stealth of the users PIN using skimming devices can be utter(a) much easier with a PIN input than w ith a signature-based credit transaction.However, theft of users PIN codes using skimming devices can be equally easily accomplished with a debit transaction PIN input, as with a credit transaction PIN input, and theft using a signature-based credit transaction is equally easy as theft using a signature-based debit transaction. e. In many places, laws protect the consumer from fraud much less than with a credit card. While the holder of a credit card is de jure responsible for only a minimal amount of a ambidextrous transaction made with a credit card, which is often waived by the bank, the consumer may be held liable for hundreds of dollars, or even the entire value of fallacious debit transactions. The consumer also has a shorter time (usually just two days) to report such fraud to the bank in order to be qualified for such a waiver with a debit card,9 whereas with a credit card, this time may be up to 60 days.A thief who obtains or clones a debit card along with its PIN may b e able to clean out the consumers bank account, and the consumer will have no recourse. f. An automated teller machine (ATM), also known as a Cash Point, Cash Machine or sometimes a welter in the Wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. ATMs are known by various other label including automatic banking machine, cash machine, and various regional variants derived from trademarks on ATM systems held by particular banks. g.On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer ledger entry a personal identification number (PIN). h. Using an ATM, customers can access their bank accounts in order to make cash withdrawals,credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit. If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e. g. Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a wholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well Alternative uses Two NCR Personas 84 ATMs at a bank inJersey dispensing two types of pound sterling banknotes Bank of England noteson the left, and States of Jersey notes on the right Although ATMs were originally developed as just cash dispensers, they have evolved to include many other bank-related functions. In some countries, especially those which benefit from a fully integrated cross-bank ATM network (e. g. Multibanco in Portugal), ATMs include many f unctions which are not directly related to the management of ones own bank account, such as 1. Deposit currency recognition, acceptance, and recycling6162 2. Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc. ) 3. Printing bank statements 4. Updating passbooks 5. fill up monetary value into stored value cards 6. Purchasing 7. Postage stamps. 8. drawing off tickets 9. Train tickets 10. Concert tickets 11. Movie tickets 12. Shopping mall gift certificates. 13. Games and promotional features 14. Fastloans 15. CRM at the ATM 16. Cheque Processing Module 17. Adding pre-paid cell phone / mobile phone credit.Increasingly banks are seeking to use the ATM as a sales device to deliver pre approved loans and targeted advertising using products such as ITM (the Intelligent Teller Machine) from Aptra Relate from NCR. ATMs can also act as an advertising channel for companies to advertise their own products or third-party products and services . In Canada, ATMs are called guichets automatiques in French and sometimes Bank Machines in English. The Interac shared cash network does not allow for the selling of goods from ATMs due to specific security requirements for PIN entry when buying goods. CIBC machines in Canada, are able to top-up the minutes on certain pay as you go phones. TELEPHONE BANKINGTelephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative (see below). With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine account balance information and list of latest transactions, elect ronic bill payments, funds transfers between a customersaccounts, etc.Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch loan applications, investment purchases and redemptions, chequebook orders, debit cardreplacements, change of address, etc. Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernise the user by using special technology. A credit card balance transfer is the transfer of the balance (the money) in a credit card account to an account held at another credit cardcompany.This process is actively support by almost all credit card issuers as a means to attract new customers. Such an arrangement is attractive to the consumer because the new ban k or credit card issuer will offer incentives such as a low interest or interest-free period, loyalty points or some such other device or combination of incentives. It is also attractive to the credit card company which uses this process to gain that new customer, and of course detrimental to the prior credit card company. An order of payments for every credit card specifies which balance(s) will be paid first. In to the highest degree all cases payments apply to lowest-rate balances first highest-rate last.Any balance under a vexer rate or fixed rate will be paid off sooner than any purchases or cash advances (which usually have the highest APR). By avoiding making purchases or taking cash advances altogether, the borrower can promise they maintain the full benefits of the original balance transfer. The process is extremely fasting and can be concluded within a matter of hours in some cases. Automated services exist to help facilitate such balance transfers. Other similar servi ces do exist, but they may not be free to use. USES OF INFORMATION TECHNOLOGY IN BANKS Information Technology uses in Banking empyrean Business banking Retail banking Banking technology Banking surround Card Market Business bankingBMI-Tec Knowledge has been publishing their annual report on Business Electronic Banking for the past 13 years. The report provides valuable year on year trend compend for the major banks in federation Africa. There are two parallel interrogation objectives of the publication, to report on business banking trends and more specific information on each of the electronic banking products offered by the banks. Each year, the questionnaire used for the research process retains a generic core but incorporates changes that reflect the ever changing banking milieu and the related impact of technology. The research is focused on business banking and specifically for companies that use an online or electronic banking product in their ay-to-day giving medicati on of their business banking administration. The key area of naval division for this report is by the four major banks in South Africa Absa, First National Bank, Nedbank and Standard Bank. Other areas of partitioning include size of company by employees and annual turnover and whether these companies are single banked or multi banked. Retail banking Understanding the financial delivery channels BMI-T has conducted a recent benchmarking study to highlight external expertise and fellowship that is currently available in the ATM and SST environment. From this collated information, the client was able will be able to benchmark their own operations against these parameters.This study aid the client in identifying and determining the current and potential best practices around ATMs and to see where they are currently placed in this context. The scope of the research covered both local and international perspectives with the international perspective be segmented further by a split bet ween Africa in comparison with the Rest of the World and South Africa Business Electronic Banking in the Small to Medium Business sector BMI-Tec Knowledge has been publishing their annual report on Business Electronic Banking in the corporate sector for the past 13 years. This new report, Business electronic banking in the SMB sector will be a parallel report in order to fully understand both markets corporates and the SMB sector.There are two parallel research objectives of the publication, to report on business banking trends in the small to medium business sector and provide more specific information on each of the electronic banking products offered by the banks. The research is focused on business banking and specifically for companies that use an online or electronic banking product in their day-to-day administration of their business banking administration. The key area of segmentation for this report is the four major banks in South Africa Absa, First National Bank, Nedbank and Standard Bank. Other areas of segmentation include size of company by employees and annual turnover and whether these companies are single banked or multi banked. Multi-Channel Banking for Retail Financial Services 2005 BMI-T conducts research in the financial delivery channels to the retail market.This research covers the following issues The optimum balance between customer experience and lower costs, International overview of financial delivery channels and the road to multi-channel integration, Trends and market drivers and/or inhibitors that have drive the changes in global banks, South African comparison of financial delivery channels and their related offerings from the banks, Comparison of pricing and products and services that are available on each channel from each financial provider, Number of customer points such as ATMs, Number of banking branches and level of change and expected growth for the future. Research to test the future for High-value-low frequency channe ls or low-value-high frequency channels, current and future usage patterns of financial delivery channels from the South African retail customers (which channels, frequency, timing and for which transactions plus trend analysis with past annual data). Banking technology South Africa is in many ways a global leader in the adoption and use of technology to improve competitiveness and de