Saturday, July 17, 2010

Introduction of the internship report


Chapter One

Introduction

1.1 Background of the study
As a part of the BCIS program, the college under Pokhara University authorizes this internship program with the motive of blending theoretical knowledge to practical experience. This task was assigned to me for our development and exposure in real-life corporate condition. I accomplished this internship program at Rastriya Banijay Bank, Central office, Kathmandu.
As stipulated by the University, the duration of my internship was six weeks. During my internship I found that the organization had very friendly and co-operative working environment, which made me easy to accomplish my project and experience the practical knowledge that should be possessed in the organizations culture.

1.2 Objective of study
Each kind of study has its own objectives. Without objectives, nothing can be achieved. The main objectives of this report are to acquaint the IT student like us with the reality of the organizations’ functioning and to undertake in depended analysis and the appraisal of the situation. The general objective of this report is to partially fulfill the requirements for the degree of BCIS. However, the specific objectives are as follows:
v  To find the use of Information Technology in today’s banking system.
v  To find the various Banking performances.
v  To gain the practical knowledge of what we have studied.
v  Identify the impact of IT in banking system.
v  To examine the network and data communication of the banking system.
v  To look out the strength and weakness of the Rastriya Banijya Bank.
v  To provide the information to the employees of Ratriya Banijya Bank.

1.3  Limitations of the Study:
As we know each and everything has its own limitation. No study can be free from impediments. The major limitations of internship report are as follows:
v  All the data’s included in this report are collected from RBB.
v  Due to limited time, I was not able to know information of banking.
v  Most of the studies are based on secondary data.

1.4  Research Methodology
During my internship program, I have basically collected two types of information about Rastriya Banijya Bank, these were;
  • Internal information

  • External Information

This information was collected with the help of both primary and secondary recourses.
a)      Primary Data:  They are collected by me on the concern topic, which are original. While studying I have come across with the sources such as direct interviews with the supervisor, opinion of the different employee, informal talks with the employees etc.
b)      Secondary Data: They are collected by me on the basis of the study of networking in the organizations. For preparing this report on networking and data communication I have collected information through Rastriya Banijya Bank, internet, books, teachers, and some previous records.






Chapter Two


Report Body

 

2.1 Background of the Organization

Rastriya Banijya Bank (RBB) is the fully government owned, and is the largest commercial bank in Nepal. RBB was established on January 23, 1966 (2022 Magh 10 BS) under the RBB Act. RBB provides various banking services to a wide range of customers including banks, insurance companies, industrial trading houses, airlines, hotels, and many other sectors.

RBB has Nepal's most extensive banking network with over 125 branches. Through its branch network, RBB has been contributing to Nepal's economic development by providing banking services throughout the country.

Rastriya Banijya Bank provides an environment within which the bank can bring unique financial value and services to all customers. It is a sound institution where depositors continue to have faith in the security of their funds are receive reasonable returns; borrowers are assured of appropriate credit facilities at reasonable prices; other service- seekers receive prompt and attentive service at reasonable cost; employees are paid adequate compensation with professional career growth opportunities and stockholders receive satisfactory return for their investment.

 

2.2 Objectives of Organization:

 Rastriya Banijya Bank has the following objectives:-

v  Continue to maintain leading share of banking sector with a significant presence in all major geographical areas in the country.

v  Provide competitive and customer oriented banking services to all customers through competent and professional staff.

v  Reclaim leadership within the national financial community.


2.3 Organization Structure  

Figure-1: Organization Structure


Chapter Three

                                               Review of Literature

In today’s world Computer Network plays a vital role in sharing data, retrieving data and communicating between various departments to accomplish the business tasks. In fact businesses like banking, financing, insurance, medical diagnosis are all communicating by the effective networking environment between their various departments.
A computer network is a collection of computer devices connected by communication link capable of sending and receiving data generated by the other computers on the network. To building a perfect computer network we should consider the many things such as security, transmission media, reliability, performance, faster, efficient and effective for communication, devices that are used in building a computer network and many more.
In Rastriya Banijya Bank most of the organization’s works are performed in digital machines like computers and other devices. This makes its efficient and reliable, Due to the introduction of networking the customer can perform their transaction from their residence and other branches which indeed saves times and make convenience in today’s world, where time is the most valuable factor
So, Networking uses different technologies to work effectively and efficiently to managing the transactions with customers to produce useful information and reliable communication that support an organization and its employees, customers, suppliers, stakeholders etc. Many organizations consider information system to be essential to their ability to compete or gain competitive advantage in the competitive market. Most organization has come to realize that all workers need to participate in the development of effective, reliable, securely, low costly and high performance computer network for their daily transactions.



3.1 Observations, Collections of Data and Analysis of Data

3.1.2 Overviews:
During the initial days of my internship my supervisor introduced me with all the departments and staffs. The main purpose of this observation in Rastriya Banijya Bank Limited was to familiarize me about the technical environment of the computer network and IT/MIS used in Banking between various departments. Rastriya Banijya Bank,was incorporated with the objective of extending international standard modern banking services to various sectors of the society.
During my internship at Rastriya Banijya Bank I have learned many things which are important to me for my future career prospects. While knowing the computer network and various banking transactions done through Pumori (Plus) Software.

3.1.2 Need of Information Technology in Banking System
v  Consumers have become more sophisticated, technology savvy and demanding
v  Banks are continuously required to introduce new innovative product, processes and technologies
v  Products are tailored to meet each individual customers requirement
v  Banking operation requires to be more closer to customer
v  Deregulation has increased competition among banks
v  There is integration and consolidation of market.








 3.1.3 Computerizing Rastriya Banijaya Bank (RBB)

Main Branch –Bishal Bazaar. New Road Kathmandu

Delay with the main branch due to:

    1.  Data Inconsistency

    2.  Software Customization according to RBB banking methodology

    3.  Software TESTING

    4.   Due to long distance

 

Pumori (Plus) supported regional branches offices:















S.N.
    Regions
    Branches
1
34
2
28
3
15
4
23
5
25

 


3.2 Introduction to Pumori (Plus)

Pumori (Plus) is the Core Banking Software of Rastriya Banijya Bank, which helps to operate overall banking procedures through a single interface. The Front-end development of the Software is done in Delphi and the Back-end Database Server Oracle 9i. It is a total GUI application, which works with multiple windows environment. However, it is still in the development and debugging process in RBB to make the application compatible with Nepalese banking practices as well as for smooth operation.


 3.2.1 Features of Pumori (Plus)
The features offered by Pumori (Plus) range from opening and closing accounts to performing automatic interest calculation and posting, starting and ending the financial institution’s day, month, quarter, year, etc. and setting up various parameters. Pumori (Plus) will provide you with the following benefits.
v  Easy to use system
v  Predefined deposit and loan types
v  Automatic interest calculation and posting
v  Automatic tax calculation and posting
v  Predefined reports q Nepali calendar
v  User defined reports
v  On-line help
v  Easy to use Installation program

The entire features of Pumori (Plus) have been provided within the following modules.
v  Accounts (Opening, Maintenance, Enquiry, Closing, Deletion, Client System, Obligor   System, Cheques, Reports, Signature Capture)
v  Transactions (Batch, One-entry and Multiple Transactions, Access by Transaction ID, Transaction Stacks, Transaction Reports)
v  Deals (New Deal, Deal Settlement, Deal Increase, Information, Certificate, Interest Statement) q Reports (On Demand Batch Report, Define/Execute Query)
v  Loans (Application, Registry, Disbursement, Repayment, Reports )
v  System Control (Periodic Operations, Parameters, Codes, Reports, Days, Management, Set-up, Global Replacement)
v  Codes System (Access Codes, Account type Codes, Branch Codes, Customer Type Codes, Groups System, Station Codes, Transaction Codes, Users System)
v  For financial institutions that deal with many other tasks such as Guarantees, L/Cs etc., MOS has another more powerful solution, Pumori Plus.







3.3 Functional architecture:

All modules share the same processing structure, hence the functional covering of the modules, except for those particular characteristics of each product or service, are the same.
 3.3.1 Client service:
Any module can access to the Client Integral Position to know those products and services that the client uses, balances and conditions (special prices), limits (granted, used, available) and guarantees. In addition, the financial products have included simulation features for new and existing operations. For a particular product, there have to be pre-parameterized a group of definitions such as:


  • Currency

  • Minimum and maximum terms

  • Minimum and maximum amounts

  • Interest accrual method (advanced-due, simple-composed, over capital-discount)

  • Basis of calculation (360/365, 365/360, etc.)

  • Interest rate

  • Collaterals (Insurance, etc.)

  • Commissions and taxes

  • Other (Checkbooks, cards, overdraft agreements, etc.)

 3.3.2 Process of work
The flow of operations work can be parameterized end-to-end using , a process design tool integrated in Pumori (Plus). Changes in states are the output of one process and the input of another one. The jobs that perform the activities within a process receive their assignments through an in-box that filters by state.

 3.3.3 Transaction:
All steps in a process can have associated one or more transactions to be performed.  During the process, the system can send the information obtained at flow level and request additional data. A monetary transaction performed delivers the corresponding accounting in real time, with control of the accounting entry in all currencies involved. If there is an exception, the same system launches the authorization process (An example is an overdraft). Rationality of transactions performance is the same for interactive/real-time or batch processes.

 3.3.4 Documentation and Messages
Transactions can also perform documentations and messaging services such as:


  • Prints of validations (Example: cashier transaction)

  • Tickets

  • High quality documentation (Example: contracts)

  • Messaging services features support:



  • Parameterized definition of messages, with recommended text sensitive to language

  • Links between messages or message groups

  • Templates for SWIFT messages

  • Query on SWIFT sent

  • Input/output interface with SWIFT terminal



 3.3.5 Accounting:
Accounting is real-time updated by monetary transactions. It classifies automatically all the balances as needed to comply with standards from regulatory authorities. Besides, the accounting function implements all those processes related to each operation underlying elements such as:


Valuation and revaluation of foreign currencies
Valuation and revaluations of securities
It also provides support for generally accepted accounting principles such as:


Interest accrual
Interest suspense
Allowance for possible loan losses
Changes in balance sheet presentation
There are information outputs, on screen or printed, such as balance sheet, inventories, ledgers, journals and others.
Thanks to the system architecture (integrated accounting), there is no need of transit accounts. The transaction control is localized in the input, which means that there will not be differences due to non-compliance with the double entry method. Because the accounting entry is embedded in the transaction cycle, there are no differences between the product portfolio and its accounting.

 3.3.6 Computerization of Old Data:
For the computerization of old data, an Excel format is developed with required fields to enter the data. Data, which are recorded in the Excel sheet, is later linked to database through one particular application.

But for new data, user has to use Pumori (Plus) client side application, which is installed in their computer in the branch or department.





3.4 Core System:

.




3.5 Pumori (Plus) Procedures:
The system can function on a basis, allows the parallel performance of interactive, and batch operations. The transactional integrity is assured through the features of commit and rollback. There is a unique journal provided by the data base manager at the table’s level. Data, including accounting data, are updated on-line and in real time. There are some batch processes needed such as incoming clearance checks, interest accrual, allowance for credit losses calculation, and some others. The system supports date value and accounting date value, and reconstructs in automatic form the accounting balances from date value through process date value. The system allows to certain users to reverse transactions including accounting entries.
In batch processes, there is a control table that leads the performance, and that lets to define the sequence and timing or calendar of the execution. Those processes are designed for concurrent performance on several processors, and that allows a dramatically reduction of the critical path. That also depends on the nature of the process, such as groups of branches, modules, transactions. Batch processes are performed in automatic form thus requiring a minimum support to the operation.

3.6 Recording Customer Information: CIF Creation

For every customer willing to perform any Banking Transaction his/her profile has to be registered in the Bank. Such type of registration is called CIF (Customer Information File) Creation. Once created, CIF remains registered and commonly used in any Pumori Branch of RBB, which avoids duplication of the CIF of same customer.

After creation of CIF, modification, alteration, updating, tying of relationship with other CIF and loading of customer images are possible through different screens, which will be discussed later on.

















    3.6.1 Following is the screen CIF:


3.7 Deposits Procedure:

3.7.1 Current Account:
Rastriya Banijya Bank current account saves you the hassle of carrying around cash every month. The account is non-interest bearing and it comes with a cheque-book – individual just need to write a cheque whenever and wherever it's convenient.

 3.7.2 Statement of Transactions:
A six monthly statement will be sent so that you can see your transaction movements. You can also request that the Bank provides you with a statement every day, every week, every 15 days or every month.


 3.7.3 Account and checkbook:

A current account can be opened with a minimum amount decided by the specific branch. Deposit at your home branch. Once your account is opened, you will receive your cheque-book containing personalized cheques. To replace your cheque book once you run out of cheque just present the replacement form at the back of your current cheque book at your home branch and we will arrange a new one for you.

 
3.7.3.1 Saving Account:

With a Rastriya Banijya Bank savings account your interest is calculated and credited to depositor's saving accounts on minimum monthly balance bi-annually. It is your passport to other Rastriya Banijya Bank products and services designed to help make managing your daily life easier and more convenient. Initial deposit ranges are depending upon the branch and its level. Any balance below minimum amount will be liable to incidental charges as fixed by the bank from time to time.

   3.7.4 Transactions Records:
When you open your account you will get a passbook to keep track of your savings and transactions. You have to update your passbook by our bank staff at our branch.

      3.7.4.1 Fixed Account:
Features
v  Fixed Deposit can be opened with a minimum balance.

v  Payable upon maturity

v  Penal interest is levied on withdrawal of FD prior to maturity.

v  Interest is payable Quarterly.

v  Tax is deducted at source from the interest on saving deposit as per the Income Tax Act, 2058(2001).

v  Statement of account will be furnished on quarterly basis.

v  Cheque book with account holder's name and account will be provided.

v  Nomination facility is available.

 





3.8 Deposits Architecture:
There are different types of screens for entering customer’s transactions on different deposits. A deposit account should be opened in reference to the No of the customer.
3.9  Loan / Advances:

3.9.1        Consumer Loans:

Bank provides, at most competitive terms, various loan facilities such as loan against fixed deposits/government bonds, loan against gold and silver, loan against stable future income etc that help to manage personal needs of the customers. Some of consumer loans are Home loan, Margin Lending, Auto Loans, Education loan, Personal loan and etc.


 3.9.2 Home Loans

This loan is provided for:-

v  Purchase a plot of Land

v  Purchase a plot of land and construct a building on it

v  Purchase of already built house

v  Purchase of Bungalow constructed by builders / developers

v  Renovation, modification, extension of existing building

v  Construction of building on land already owned

Swapping home loan from another bank or financial institutions

















 3.9.3 Margin Lending
This loan is provided against the shares of the companies, which are listed in Nepal Stock Exchange (NEPSE) and acceptable to the bank like-

v  Commercial Banks

v  Manufacturing and Processing

v  Hotels

v  Trading

v  Finance Companies

v  Development Bank

 3.9.4 Auto Loans


This loan is provided for:

v  Purchase of new vehicles

v  Purchase of old / used vehicles (For Private use only)

v  Swapping (For Private and Commercialize use)


















3.10 Core Banking Architecture

 

                                                                                                                                                                                                                                                                                                                                     
Fig shows the networking and the communication process.


3.11 Architecture of Pumori (Plus) Base Branch Offices
3.11.1 Branch inside Katmandu valley

 






















Fig: Pumori (Plus) Architecture in Branches inside Kathmandu valley






3.11.2 Branch outside Kathmandu valley




 





















Fig: - Pumori Architecture in Branches outside Kathmandu valley








3.12 Interaction between Client and Server



Client


Server


Interface


Language


Contains front end programs
Provides data entry and DSS screens
Invoked be users
Provides management reporting
Run batch jobs
No user access in data
Heavy user interface
Provides user-friendly interaction
Diskless PC or WS (more secure)


Contains back end programmes
Facilitates access to data
Accepts/process data
Invoked by client
Processes locking mechanisms
Places data in database
Returns data and status code to clients
No user interface
Provides system backups, dbase syncs

 

3.13 Centralized Set-up:

 3.13.1 Branch Server (centralized) set-up

v  A decentralized / distributed Architecture
v  Enables a scalable hierarchical structure within a bank (HO, Regional Office and Branch Offices concept)
v  Teller are connected only to the Branch Offices
v  Distributed processing of transactions.
v  Each of the connected nodes, capable of independently processing transactions.
v  Concept of store and forward transaction during offline Mode
v  Completely scalable, Both vertically and horizontally
v  Can be quickly and easily customized
v  Suited for banks where the connectivity is not 100 % guaranteed

 3.13.2 Host Server (centralized) set-up


v  The Host acts as the centralized database and application server
v  All tellers are directly connected to the Host
v  No Concept of Branch and Regional offices
v  All Transactions processed only at the Host
v  Suited for banks which have reliable connectivity
v  Transaction are routed through the ROUTER in the online mode
v  Transactions performed during offline mode are put in a database queue
v  Once the connectivity is re-established, transactions are routed through the OFFLINE PROCESSOR


Chapter Four

Summary and Conclusion

I choose Rastriya Banijya Bank Limited (RBB) to do my internship on IT/MIS and Networking Technology used in banking .since it is one of the renowned Bank, I felt it will provide me with the practical exposure in the field of Computer networks. During my internship period the staffs of RBB were very cooperative and guided me all the way till the end of my 6 weeks internship program. All the knowledge gained in this whole period will surely be handy for my carrier in the field of information Technology. The theoretical knowledge that gained in our college is now backed up with this internship program due to its practical nature. Furthermore, to learn new lessons which were not covered in our classes.
The environment of RBB was mobile, everybody own works. It was exciting to see the real professional environment of the office. There were many departments, each specializing in its own field. I was very comfortable for they provided me with their senior staff as my instructors Mr. Ishwor Shrestha and respected staff took me to many departments to help me gain good knowledge about the real time scenario of an organization.
The internship was very beneficial but due to lack of sufficient computers and required resources and didn’t get the chance to do the real networking but my instructor explained all the networking and data communication procedures that were being carried out in the organization. Due to the confidential nature of the organization I am not allowed to expose the name and working procedure of the organization.
As already mentioned above, I was only familiar with the aspect of networking, therefore it took some time to get used to the practical knowledge and keep in pace with practical procedures. Even, encountered some absolutely new subject matters that I had exposed before in our college.
I learned to operate the Pumori (Plus) Software, some of the banking transactions and networking (how it is connected among various branches over several locations with the main server).I conducted as part of practical learning, although I was not allowed to work on main server.
Lastly, I would like to thank RBB family for their wonderful support and a very warm hospitality. I also request RBB to provide provision for internship so the upcoming interns can acquire even more practical knowledge, as possible.
























Chapter Five

RECOMMENDATION

The network and its performance in Rastriya Banijya Bank is considerably good, besides there is some problems like;
v  The network is very slow for accessing the data from the internet.
v   Usually services are down due to different kinds of problem such as disconnection of media, longer distance connection, the problem of switch, hub and problem of security, low bandwidth, and lease lines of the network.
v  I strongly recommend using the fiber optics, which solves all the problems recently occurs in the Network of Banking sector.
v  Not concerned about the multinational banking framework which plays an indispensable role.
v  Actions such as further strengthening of netting arrangements.

At last, I would like to request Rastriya Banijya Bank that it should conduct the training program to the employees of all departments on how to effectively use the new technology in this global competitive world.











Program Workplace Relationship

Internship is a very new notion in building the educational career of the students for the reason that it helps to deal with genuine requirement of the market and the way the work practice are being processed in the real time circumstances. The purpose of this internship is to be familiar with the practical segment and uses of theoretical understanding and illuminating the career objective. So I have successfully completed the internship and piled up this report as the summary and the conclusion that have drawn from the internship experience.
As per this program I have joined Rastriya Banijya Bank as an intern student in IT department for analyzing the Networking and Data communication. I have got the knowledge about different banking transactions, networking and MIS of the bank.
I have achieved during the studies in Rastriya Banijya Bank helpful and cooperative environment that help a lot to me. So, the time with Rastriya Banijya Bank very audacious and supportive to my career through which I have gained valuable work experience that will definitely makes a complimentary impression on me as a potential upcoming employer.












BIBLIOGRAPHY

A.  Book References:

  1. Computer Network [Fourth Edition]

-By Andrew S. Tanenbaum
  1. Computer Networking [Second Edition]

- By James F. Kurose and Keith W. Ross
      3.   References from related books

B.  Website References:

      www.RBB.com.np
            www.google.com
           

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