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Operations in Banks which has core banking

Date: 28 Mar 2016   Posted By: Ramachandran Pattabiraman     Group: Opinion About    Category: Miscellaneous   

It is said that most of the nationalized banks have core banking facility. Does it mean that as a customer I can do banking in any of the branches of the bank?
I understand that this means we can deposit cash or cheque in any branch of the same bank where he possess account. But on approaching a branch they refuse to accept the cheque or cash for another branch. Is it correct as per the procedure of core banking? Can experts clarify this query?

Want to know all about core banking facilities? Check out responses from experts on this page.

Author: Kailash Kumar    29 Mar 2016      Member Level: Platinum     Points : 3  (Rs 3)    Voting Score: 0

Under 'core banking' services, a number of branches of a bank are networked through a banking software. Such core banking services depend heavily on the computers and internet technologies which allow the banks to centralize its record keeping and allow access from any location. Normally services like transaction in accounts, loans, mortgages and payments etc. are offered through core banking services. Generally banks offers such services through multiple channels like ATMs, Internet banking, mobile banking and branch banking. However such services can be offered only through member branches of core banking services. It may be possible that in certain branches, core banking might have not be commenced.
Even in the networked branches, services may not be available temporarily in case the server is down or there are such other technical issues.

Author: Mahesh    29 Mar 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Yes as per the core banking you get to deposit the cash and cheque from other branches. You can even deposit the cheque in any other branch and in theory it should accept. However some PSU banks often don't accept cheque in non home branches. This maybe because it adds more into their process flow.

In such case meet the customer representative of the PSU bank. And you're going to get this issue solved for sure. I faced similar issue with the PSU bank. In case of the other commercial banks you may not have this issue and they allow depositing the cheque from any banks.

Author: [Anonymous]    29 Mar 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

As we heard, core banking process is mainly depend on software for various banking transaction, including opening a new account, deposit from a different (registered) bank account to this account, withdrawal, pay via online, receive amount via online, EFT, transact to a different registered account and so on.

So, considering this online service, it mainly function the same for offline as well, thus, core banking has to accept the cash or cheque of another branch without any objection until and unless some technical problem or some remote branch that has no core banking facility still etc.

Author: Venkiteswaran.    29 Mar 2016      Member Level: Diamond     Points : 4  (Rs 4)    Voting Score: 0

If Core banking system is fully implemented in all the branches of the bank, then the benefit is that an account holder can withdraw or deposit cash to his account from any other branches. However there can be some ceiling on the amount for different methods of deposit and withdrawal as per the bank's guidelines or by the Indian Bank Association guidelines or by RBI guidelines.

It is seen in practice that at least some of the branches or staff discourage transactions related to another branch account.

Banking system is moving to such an extent that there is no special benefit or drawback to have account in a particular bank or particular branch of that bank.

Even sitting at home one can send money from one's own account in Y branch of X bank to LMNOP account of another person with A branch of B bank. Even one can do all this from one's own mobile phone-things are moving fast to that extent.

As per RBI/Government plan to merge banks and also to make lateral transfers of bank staff, now all banks are migrating to a single software for their core banking. I am suffering a lot because of the latest migration in my bank.

Author: Tara    30 Mar 2016      Member Level: Silver     Points : 4  (Rs 4)    Voting Score: 0

The main aim of core banking concept was found to facilitate the customer fraternity to the transactions from their place of stay rather the particular bank branch which is close to his place of stay. Here the customer can open the account in any of the bank branch of the particular bank which has core banking facility and majority of his transactions he can do from any place where the particular bank branch is there. There are certain restrictions to do the transactions like withdrawal of cash, crediting to the account, cheque book facility and for loans and advances. As far as deposits are concerned he can do fixed deposits in any bank branch of the particular branch because he will be provided with unique customer identification number with which he can do the transactions in any of the bank branch and his account number will be common. Pass book entries he can get it done in any bank branch but for cheque book he should send the request to the base branch. Even for any loans or advances either directs loan or loan against his own deposit he has to approach his base branch. He can drop cheques for clearing in any branch of that particular branch.
Core banking has helped the customer fraternity to a maximum extent. By virtue of having ATM CARD INTERNET BANKING FACILITY THE CUSTOMER IS MUCH BENEFITED.

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