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  • Category: Miscellaneous

    What is core banking? Do all banks have core banking systems?


    Searching for information about core banking? On this page, experts shall respond to all your queries.

    We sometimes come across queries as to whether the bank branch in which we are having our account, has core banking facilities or not. What exactly it means by core banking? Do all banks have core banking systems? How to ascertain, if any particular bank branch is having core banking facilities or not?
    Experts: do respond.
  • #137722
    Core banking connects all the bank branches of the base branch. This way you can operate all the bank operation from any bank branch. That works for centralized operation. Your bank operations are not tied to one branch. And this not only helps with customer work but also helps bank do the transaction quicker.

    Core here refers to multiple transactions being tackled from single place in node and hub mode. Here branches are the node and central branch is considered as hub. This can be helpful for the financial transactions.

    Almost every private bank has core banking feature enabled. Not a single private bank has a branch without non core features. In case of PSU banks they are also going to be core banking enabled by the end of 2018. So almost every bank in India is now core banking enabled. And in future every new branch of any bank is going to be part of core banking.

  • #137723
    Banking service in India evolved over years for better and faster service to the customer. When the banking operations were done only manually, we could see bank staff sitting behind very big and very thick 'Ledgers' and registers. Al the transaction data were made and stored in the premises of the bank branch. Passbook entries, account statements, sending intimation to customers - all were manually done.

    Then came partial mechanisation and partial computerisation which again led to local computerisation. In local computerised banking, all the branch office transactions were done on computer and all the data were stored and kept in local individual PC s .
    However there came a need of networking of all branches and that with the central office and regional controlling offices of a bank so that transactions between branches , monitoring and accessing needed management data from controlling offices all could be done easily and on real time basis. This needed a core server at one place where all the data are input , output and stored at real time. That is Core banking.

    With core banking the unique significance of a branch has lost its import. Banking became anywhere banking. It is only because of core banking that customers could do online transactions at any place any time any day.
    But banking has advanced further and transactions between different banks at different places also happen real-time. The public is also benefited by these because now by using NEFT,RTGS a customer of one bank can remit money to a customer of another bank, sitting in his own office or home using net banking. Interbank clearing has become very fast . "Collection' of cheques has become redundant, as cheques are payable at par everywhere.
    That is why one bank had advertised' bank branch in your pocket'.

    Except for some local co-operative banks almost all banks are now under core banking. If your account number is a long chain of 15 digits if your cheque is having words payable at par, and having IFSC code, if you are given net banking facilities, then you can be sure that your bank has core banking facility. Or you can ask your branch and confirm.

  • #137766
    Core Banking is where you can perform your banking transactions from any branch of the bank. You will not need to visit the branch where you have maintained the account. The account is accessible all over India from any of the branches of your bank.
    The banking transactions are completed in a centralised manner. All the data related to your bank account and other details thereof are managed on a central server. Branches access this server to get your transactions done. The centralised server is called HUB, while the individual branches are referred to as NODES.
    CORE Banking is an acronym for Centralised Online Realtime Environment. The services through the Core Banking are rendered through a specialised software. The software management is generally outsourced.

    As of 2016, almost all banks have implemented core banking solutions. Private banks were the first ones to realise the potential of the centralised service. Possibly, none of the private sector banks can be seen without the CBS enabled. Public sector banks have slowly been implementing the changes. Most of the major PSU banks have the service already enabled. The deadline set up for the total implementation is 2018. Leaving aside a few local and Co-Operative sector banks, the core banking has been quite ubiquitous in the Banking sector.

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