TyroCity: NRB Computer Notes

IT and ICT in Banking

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

IT and ICT in Banking

ICT has become an indispensable factor in the modern life of every individual. The elements of information and communication technology related sources are perceived as essential parameters in day today operation of banking both in private and public nature while deal with customers and stakeholders. The applications of ICT are augmenting in every sphere of our action includes both consumption and services. In this aspect the banking service is an intangible element which requires an effective quality delivery process from the ends of both provider and taker. In order to enhance the quality of banking services both in private and public categories, the application of ICT becomes an imperative element. But today banking organization from both private and public background aims to offers better and enhanced services to the customer in the given sphere of competition. Due to the level of service extended by bank differs based on the customer and type of services with respect to availability of infrastructure. Even though the banks from private and public base aims to elevate sophisticated services towards the perception of customers and employees in order to identify the role of ICT towards effective services of banking sectors. The present survey has been conducted from 3 private and 4 public banks situated in Kanchipuram Town. The results have been evaluated using SPSS 18.0 and suggestions provided to improve the better applications of ICT resources.

Role of Information Technology (IT) in the Banking Sector

Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business.

The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerising the branches in a limited manner. The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but high powered PC’s and Services and banks went in for what was called Total Branch Automation (TBA) packages. The middle and late 90s witnessed the tornado of financial reforms, deregulation globalisation etc. coupled with rapid revolution in communication technologies and evolution of novel concept of convergence of communication technologies, like internet, mobile/cell phones etc. Technology has continuously played on important role in the working of banking institutions and the services provided by them. Safekeeping of public money, transfer of money, issuing drafts, exploring investment opportunities and lending drafts, exploring investment being provided.

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. Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products and services.

The customers can view the accounts; get account statements, transfer funds and purchase drafts by just punching on few keys. The smart card’s i.e., cards with micro processor chip have added new dimension to the scenario. An introduction of ‘Cyber Cash’ the exchange of cash takes place entirely through ‘Cyber-books’. Collection of Electricity bills and telephone bills has become easy. The upgradeability and flexibility of internet technology after unprecedented opportunities for the banks to reach out to its customers. No doubt banking services have undergone drastic changes and so also the expectation of customers from the banks has increased greater.

IT is increasingly moving from a back office function to a prime assistant in increasing the value of a bank over time. IT does so by maximizing banks of pro-active measures such as strengthening and standardising banks infrastructure in respect of security, communication and networking, achieving inter branch connectivity, moving towards Real Time gross settlement (RTGS) environment the forecasting of liquidity by building real time databases, use of Magnetic Ink Character Recognition and Imaging technology for cheque clearing to name a few. Indian banks are going for the retail banking in a big way

The key driver to charge has largely been the increasing sophistication in technology and the growing popularity of the Internet. The shift from traditional banking to e-banking is changing customer’s expectations.

E-Banking:

E-banking made its debut in UK and USA 1920s. It becomes prominently popular during 1960, through electronic funds transfer and credit cards. The concept of web-based baking came into existence in Eutope and USA in the beginning of 1980.

In India e-banking is of recent origin. The traditional model for growth has been through branch banking. Only in the early 1990s has there been a start in the non-branch banking services. The new pribate sector banks and the foreign banks are handicapped by the lack of a strong branch network in comparison with the public sector banks. In the absence of such networks, the market place has been the emergence of a lot of innovative services by these players through direct distribution strategies of non-branch delivery. All these banks are using home banking as a key “pull’ factor to remove customers away from the well entered public sector banks.

Many banks have modernized their services with the facilities of computer and electronic equipments. The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer. The e-banking has made the customer say good-bye to huge account registers and large paper bank accounts. The e-banks, which may call as easy bank offers the following services to its customers:

Credit Cards/Debit Cards
ATM
E-Cheques
EFT (Electronic Funds Transfer)
DeMAT Accounts
Mobile Banking
Telephone Banking
Internet Banking
EDI (Electronic Data Interchange)

Benefits of E-banking:

To the Customer:

Anywhere Banking no matter wherever the customer is in the world. Balance enquiry, request for services, issuing instructions etc., from anywhere in the world is possible.
Anytime Banking – Managing funds in real time and most importantly, 24 hours a day, 7 days a week.
Convenience acts as a tremendous psychological benefit all the time.
Brings down “Cost of Banking” to the customer over a period a period of time.
Cash withdrawal from any branch / ATM
On-line purchase of goods and services including online payment for the same.

To the Bank:

Innovative, scheme, addresses competition and present the bank as technology driven in the banking sector market
Reduces customer visits to the branch and thereby human intervention
Inter-branch reconciliation is immediate thereby reducing chances of fraud and misappropriation
On-line banking is an effective medium of promotion of various schemes of the bank, a marketing tool indeed.
Integrated customer data paves way for individualized and customized services.

Impact of IT on the Service Quality:

The most visible impact of technology is reflected in the way the banks respond strategically for making its effective use for efficient service delivery. This impact on service quality can be summed up as below:

With automation, service no longer remains a marketing edge with the large banks only. Small and relatively new banks with limited network of branches become better placed to compete with the established banks, by integrating IT in their operations.
The technology has commoditising some of the financial services. Therefore the banks cannot take a lifetime relationship with the customers as granted and they have to work continuously to foster this relationship and retain customer loyalty.
The technology on one hand serves as a powerful tool for customer servicing, on the other hand, it itself results in depersonalising of the banking services. This has an adverse effect on relationship banking. A decade of computerization can probably never substitute a simple or a warm handshake.
In order to reduce service delivery cost, banks need to automate routine customer inquiries through self-service channels. To do this they need to invest in call centers, kiosks, ATM’s and Internet Banking today require IT infrastructure integrated with their business strategy to be customer centric.

Impact of IT on Banking System:

The banking system is slowly shifting from the Traditional Banking towards relationship banking. Traditionally the relationship between the bank and its customers has been on a one-to-one level via the branch network. This was put into operation with clearing and decision making responsibilities concentrated at the individual branch level. The head office had responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The bank monitored the organisation’s performance and set the decision making parameters, but the information available to both branch staff and their customers was limited to one geographical location.

Traditional Banking Sector

The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems, and services such as Internet banking have a dual role to the customer. They provide traditional banking services, but additionally offer much greater access to information on their account status and on the bank’s many other services. To do this banks have to create account information layers, which can be accessed both by the bank staff as well as by th customers themselves.

The use of interactive electronic links via the Internet could go a ling way in providing the customers with greater level of information about both their own financial situation and about the services offered by the bank.

The New Relationship Oriented Bank

Impact of IT on Privacy and Confidentiality of Data:

Data being stored in the computers, is now being displayed when required on through internet banking mobile banking, ATM’s etc. all this has given rise to the issues of privacy and confidentially of data are:

The data processing capabilities of the computer, particularly the rapid throughput, integration, and retrieval capabilities, give rise to doubts in the minds of individuals as to whether the privacy of the individuals is being eroded.
So long as the individual data items are available only to those directly concerned, everything seems to be in proper place, but the incidence of data being cross referenced to create detailed individual dossiers gives rise to privacy problems.
Customers feel threatened about the inadequacy of privacy being maintained by the banks with regard to their transactions and link at computerized systems with suspicion.

Aside from any constitutional aspect, many nations deem privacy to be a subject of human right and consider it to be the responsibility of those who concerned with computer data processing for ensuring that the computer use does not revolve to the stage where different data about people can be collected, integrated and retrieved quickly. Another important responsibility is to ensure the data is used only for the purpose intended.

THE IMPACT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY IN BANKING SECTOR INTRODUCTION There are so many definitions of a bank given by various authorities.But,summarizing all the definitions,a bank is simply a financial institution that accepts deposits from surplus economic units of the society and advances it to deficit units through the process of financial intermediation.Banks are the institutions that assist in managing financial system of a country.The financial systems are the totality of financial arrangement,agents,institutions etc that interact with each other and the rest of the world to develop,foster and enhance economic growth and development of a country.A robust financial sytem is very vital to the health of any economy.(Ekezie,1997).So the role banking institutions play cannot be over emphasized.And that is why any thing that affects the institution has both local and international consequences.The effective regulation of this institution helps the government to manage the monetary,political,and fiscal policies of the nation. There are divergents views on the impact of Information,Communication and Technology (ICT)in the banking sector as we have seen in our earlier discussions.Some of my colleaques agreed with me that ICT have impacted greatly the banking sector,while others disagree on the grounds that ICT have created some distortions by replacing human capital with machine capital so to say(example in comments made by Anthony). Some believe that the advantages far out weigh the disadvantages(example in comments made by Segun).Much as it has put a lot of people out of job,at the same time it has contributed significantly to creation of jobs.One can easily see examples among the likes,of VODACOM,MTN,AIRTEL,ETISALAT,IBM,FACEBOOK,MICROSOFT,HP,APPLE,SAMSU

NG,etc. Again many agreed that other employment opportunities abound in other sectors like agriculture,manufact uring,construction,etc,can be exploited by those affected(example in comments made by Loretta).The botton line being that one should equip himself or herself with others skills and knowledge as adaptive measures. Some believe that ICT is a welcome development in the banking industry or sector and there is no going back.That was why Paul O’Neil Chairman and CEO of Alcoa once said that “I don’t see information technology as a stand alone system.I see it a great facilitator.”(Bill,1999) LITERATURE REVIEW The arguments or controversies whether the ICT have made impact in the banking sector or not is still on going.While some agree,some others disagree each school of thoughts have their own points to back up their claims.Bill Gates in his book ‘Businees @ the speed of thought ‘likened the way businesses are carried out in this generation like digital nervous system.At the click of a botton,the response rate is unimaginable.(Bill,1999).In the banking sector,the speed of revolution in bank processes via ICT is such that people are wondering whether robots will not take over the banking operations soonest. A lot of research is still going on and the kind of competition taking place in telecommunications sector is amazing.A new invention quickly become obsolete in just a matter of two(2) to three(3) years as a result of fast development.Many banks are constantly upgrading their software.A case in point is First Bank Plc which recently upgraded their software from finnacle 7 to finnacle 10.This development disrupted the normal banking operation for 3 days.About four(4)years ago finnacle 7 was taken to be a robust software capable of supporting any large data base.Other banks are equally upgrading their various softwares every now and then.Nigeria like many countries have been making effort through many policies and strategies to accelerate the pace of economic and infrastructural development.To achieve this,a number of factors are involved including entrepreneurship,good corporate governance,competent management systems, modern techniques and application of information and communications technology(ICT).(Ekezie,1997). DISCUSSION The banking industry or sector provides financial services to individuals,organizations,institutions etc and have been totally revolutionized by the impact of Information and Communications Technology(ICT) in virtually all areas of its operations.Many years ago a lot of tasks were carried out manually.These include,preparation of cashbooks,journals,general ledgers,final accounts and reports.These however accounted to greater extent the long delays in providing financial services to customers,long queues experienced in banking halls,long turnaround time in meeting customers requests like cheque books requisition, raising drafts, processing of loan requests,withdrawal/deposit of cash,trade payments etc But today,the story have changed significantly due to the impact of Information and Communication Technology.Unlike before where you have many paying and receiving tellers in the banking hall, you have fewer tellers nowadays and many Automated Teller Machines(ATM) in many strategic locations both within and outside bank premises.These days many banks even have e-branches and ATM galleries with highly reduced human activities.Loan processing have equally improved.Approvals can be obtained from various approving authorities via computer system. The clearing system of bank instruments like,cheques,managers cheque,bank drafts, etc have been reduced from four(4) working day to two(2) with chances of further improvement.In security area, electronic revolving doors have practically replaced the manually operated types.Surveillance cameras of various types are in vogue.Computerized system of monitoring custom duties,excise duties,import duty,movement and payment of goods,taxes is now the order of the day.Today in Nigeria financial inclusion strategy appears to be gaining ground.These involves using electronic means including handsets to facilitate payment of goods and services especially in areas that were not exposed to bank services.This strategy assists in mobilizing money that was not in the banking system.Thus improving the workability of monetary policy of the government.The various banking software being used in the banking system have further improved the processes of generating reports ,accounting,internal controls,human resource management,corporate governance and other processes in the system.The notable softwares include finnacle,globus,phoenix,bankmaster,etc.Internet banking services have greatly contributed in revolutionizing the banking sector.The internet creates a new universal space for information sharing,collaboration,and commerce.(Bill,1999).Today through the platform(internet) you can easily pay your utility bills,recharge your cards,transfer funds to various accounts,make payments with your electronic cards in commercial websites and you can even open accounts without necessarily going to the banking hall (GTB).Also,you can request for cheque books and stop your cheques through the internet and using your internet enabled handsets a good number of banking applications can be done.The list is endless so to say and more innovations are still on their way. However,the impact of information and communications technology have not been without its challenges.So many people have lost their jobs because of the replacement of some tasks and services by machines and computer systems.The unemployment situation have worsened such that,the percentage of unemployed youths have risen to worrisome level.Some banks have reduced the number of their branches as a result of improvement in technology.Banks like GTbank Plc and Zenithbank Plc have some branches with greater part of their operations carried out by machines and computer system.The cost of deploying the technology have impacted negatively to the profitability figures of many banks.As at today some banks are still behind others in competition because of associated cost of deploying some of the machines,computer systems and other electronic channels.The structure of banking halls are now different from what we used to know before.The computer systems,machines and other tools used are now more effectively, efficiently and strategically deployed to enhance banking operations. Many changes are still very much on their way and the impact will continue. SUMMARY Summarising the discussion above,one can see that ICT have totally revolutionized the banking industry or sector and thereby changing the manner business is conducted nowadays.There is virtually no unit that does not have ICT innovations.And the situation will continue many years to come.The effect or impact have the positive side of it as well as the negative side as we can deduced from the discussion.Whichever school of thought you belong,it is obvious that there is a cause and effect situation.No doubt,the arguments,discussions,debates etc will still continue because researches,experiments etc are still on and the results will in one way or the order affect the sector positively or negatively.The solution to its negative impact still remain in my own mind in development of oneself in other skill of human endeavour by way of seminars, training, workshops,formal and non formal education,specialized training programs,conferences etc such that you can easily adapt to changes when the need arise. CONCLUSION In conclusion, the impact of Information and Communications Technology in banking sector is enormous and has global impact.It has equally affected leading organizations all over the world.The effect is not only in the banking sector because virtually all sectors of human endeavour have experienced the revolution.Again,the speed of change is fast and in many years to come the impact will continue to cut across all areas of human endeavour going by the Research and Development(R&D) taking place all over the world presently.Change is a constant phenomenon and banking sector is not exempted.As such one needs to prepare himself or herself to such changes whenever the situation calls for it.

Basic Terms

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Basic Computer Terms and Definitions

Computer

A computer is a device that executes a program or programs.

CPU

The central processing unit or CPU, also known as the microprocessor or processor is the brain of the computer.

Operating System – Windows

The operating system (OS) is the software that communicates with the computer hardware. No software can be run on the computer without the operating system

Software – A program application

Software is a program application; which provides the computer with step-by-step instructions to perform a specific task. A computer cannot function without software.

Monitor

The computer monitor is computer screen or display unit. Types of monitors are CRTs (large & heavy) and flat screens (compact & light).

Desktop

Is the display on the monitor/screen.

Icon

An icon is a small, clickable picture that opens programs on a computer.

Mouse

Is a hand held device that helps you control the pointer on the desktop/screen.

Keyboard

Is the device used in typing in the words, numbers and to perform tasks. You can also use shortcuts using the keyboard to perform tasks quicker.

CD (Compact Disc) & USB Flash Drive

used for storage of computer files or for media

File

A file is a block of information includes word documents, pictures, music, etc. Each file is differentiated with the help of a unique file name.

Folder

The folder is a system that helps in organizing the files, programs and projects on the computer. It is similar to organizing files on a shelf in your cabinet.

Hard Drive

The hard drive is the device where the information is stored.

Hardware

Is the physical pieces of a computer; monitor, keyboard, mouse, printer, computer unit, scanner, etc.

Browser

The web browser is software that you use to access the internet/World Wide Web Microsoft’s Internet Explorer and Mozilla’s Firefox are 2 examples of the browsers.

Internet

The Internet is a worldwide network that helps connect millions of users around the world to share and exchange data, information, opinions, etc.

World Wide Web (WWW) also known as just the web

Is a service that is provided on the Internet for the users.

Peripherals

Peripherals are the input/output devices that are connected to the computer. The keyboard, mouse and printer are computer peripherals.

Networks

A network is a physical or logical construction that connects different computers together and helps them communicate.

Virus

A computer virus is a program that is designed to harm the computer. They are basically the same thing as human viruses.

Download or Downloading

A download is a file, program or document that is transferred from one computer to another.

Spam Mail & Scams

Spam mail is pretty much business or people sending advertisements of their get rich quick schemes or their products to try. They are designed to trick you into giving away your money or your personal details.

Surfing the internet

Jumping from page to page on the Web. Just as in “TV channel surfing,” where one clicks the remote to go from channel to channel.

Modem

A modem is something that is connected to a computer to connect it to the internet or other networks. This is typically in the form of a small box that you get from your provider.

Reboot

To restart your computer. To do a soft reboot to your computer. Go to Start Menu, and select either Shut Down or Restart. Or if that doesn’t work – press the Ctrl, Alt and Del buttons at the same time. A task window will appear, click Shut Down. The last resort, turn it off; hold in the power button until it shuts off, this is called a hard shut down.

Crash

A serious computer failure; the computer itself stops working or that a program aborts unexpectedly. A crash signifies either a hardware malfunction or a very serious software bug. If your computer crashes, it is usually not your fault.

Internet

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction
The Internet is the largest computer network in the world, connecting millions of computers. A network is a group of two or more computer systems linked together. Connection of millions of Domain (org, net, gov , mil, edu , com) and Public Network.The Internet is the largest computer network ,The Internet is the largest computer network in the world, connecting millions of in the world, connecting millions of computers. A network is a group of two or computers. A network is a group of two or more computer systems linked together. more computer systems linked together. Internet is defined as international network Internet is defined as international network that integrates the computer to form a that integrates the computer to form a global network structure. So it is also called global network structure. So it is also called the network of various networks. Now a the network of various networks. Now a day, it is very essential for all types of day, it is very essential for all types of business, academic institution, hospitals, business, academic institution, hospitals, banks etc. banks etc.

Business Use of Internet

Information
e-Mail
Communication
Entertainment
Education
Research
Marketing
Training

Intranet
The private network structure is intranet. It may exist as LAN or WAN or other form. But it is secured isolated private network structure.

Benefits of an Intranet

Publishing
Document Management
Training
Workflow
Front-end to corporate systems
Email
Better internal communications
Sharing of resources and best practice
Improved customer service
Reduction in paperwork

What is Extra-net?
An extranet is similar to an intranet but it is made accessible to selected external partners such as business partners, suppliers, key customers, etc , for exchanging data and applications and sharing information. As with an intranet, an extranet can also provide remote access to corporate systems for staff who spend lots of time out of the office, for instance those in sales or customer support or home workers.

e-Mail

“electronic mail,” is the process of sending and receiving messages over the Internet
e-Mail Address contains: Name and Domain Name
For eg. ram@ntc.net.np here, ram is name and ntc.net.np is domain.

Business Application of Computer Networks

Some Questions

What is Internet? What are the different types of services provided by the Internet?
Differentiate between Internet and Intranet?
What is e Mail ? What is the use of e mail in modern days?
What is social media? Why it is important in these days?

Windows

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction
Windows is a personal computer operating system from Microsoft, with some common business applications such as Microsoft Word and Excel has become a de facto “Standard” for individuals in most corporations and home.

Components of Windows

Desktop
Desktop Icons
Start Menu Program
Taskbar
Control Panel
User Management
Device Manager
Programs, etc.

Interface

Some Keyword
Windows Key + R = Run

Windows Key + E = Explorer

Alt + F4 = Close

Run: winword (To open MS Word)

Run: excel (To open MS Excel)

Run: powerpnt (To open MS Power Point)

Run: control (To open Control Panel)

Run: fonts (To open fonts)

Run: dxdiag (To view System Information)

Run: C: (To open C:>)

Run: temp or %temp% ( To view temp. file)

MS-DOS
Run: cmd (To go on Command Mode)

C:> dir (To display the files and folders)

C:> dir/ah (To Display the hidden files and folders)

C:> Date (To View Current Date)

C:> Time (To View Current Time)

C:> MD DN (DN=Directory (Folder) Name, To Create Folder)

C:> CD DN (To Enter inside folder)

C:> CD.. (To exit from folder)

C:> RD DN (To Delete folder)

C:> Copy Con FN (FN=File Name, To Create File) : add some content and save it by pressing ctrl+z and do Enter

C:> Type FN (To open the file)

C:> Edit FN (To edit file)

C:> Del FN (To Delete file)

C:> CLS (To Clear Screen)

C:> ipconfig (To view IP address)

C:> ipconfig/all (To view details of IP address)

C:>D:(To change the drive or path from C:> to D:>)

C:> Exit (To Close Command Mode)

Difference Between GUI and CUI

Some Questions

What do you mean by Windows? What are the components of Windows?
Differentiate between CUI and GUI.

Information System

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction

An Information System is a man made system that facilitates an organization’s operational functions and supports management decision making by providing information that managers can use to plan and control the activities of the firm.

Components of Information System

Management Information System

Functional Areas

Kinds of Information System

Operational Support

Some Questions

What is Information System? Explain with its components.
What is the use of IS in Bank?
Define the term MIS. What are the different types of MIS used in banking system to automate the banking activities?

IT Policy and Development

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

IT Policy Development in Nepal

Introduce Computer in 2028 BS
Establishment of High Level Commission for Information Technology (HLCIT) in 2051 BS and terminated by Prime minister Baburam Bhattarai
Establishment of National Information Technology Center (NITC) in 2059
IT Policy 2057
IT Policy 2067
IT Policy 2072

Introduction of HLCIT

High Level Commission for Information Technology (HLCIT) is an apex body formed under the chairmanship of Rt. Hon. Prime Minister of Nepal with a view to providing crucial strategic direction and helping formulate appropriate policy responses for the development of ICT sector in the country as well as harnessing these technologies to meet key developmental challenges including governance reform and catalyzing economic growth for poverty reduction. The government of Nepal strongly believes that its efforts in macro economic and governance reform arena stand to benefit immensely from proper harnessing of recent advances in the technological domain notably, Information and Communication Technologies (ICTs). The fact remains however that the technologies on their own devoid of enabling institutional, policy, and regulatory environment will fall short of producing intended developmental outcomes. This clearly defines the context within which National IT Policy and Strategy of the Government of Nepal was announced in the year 2000. These policy provisions lay down a comprehensive framework for the development of IT sector in the country. Among others, the policy envisages the creation of a number of high level institutional entities to provide a direction and leadership for the development of ICT sector in the country.

Functions and Duties of National Information Technology Center

To implement information communication technology related plans and policies.
To assist Nepal Government in all forms of computer related tasks.
To design and launch websites for all Government organizations, and assist in timely manner in maintaining and operating of the same
To administer the development of required coding and standards to engender uniformity in information technology, abide by the same and put it into operation.
To assist in research and development of information communication technology in the country.

Telecom History

A line between Kathmandu and the Indian border was opened in 1914
Major growth in telecom sector in Nepal has occurred after 1995 with World Bank Assistance.
An important milestone was reached in 1999 when tele-density reached one line per 100 inhabitants
Nepal’s pioneer telecommunication’s operator Nepal Telecom has made significant progress in the growth and development of the national public switched telecommunications network (PSTN) during Nepal’s Fifth Phase Telecom Project (1992 97).
Until few years back monopoly of state owned Nepal Telecom (NTC) in all types of telecom service
NTC also started providing GSM mobile service from May 1999
United Telecom Ltd. (UTL) is providing Wireless Local Loop based telecom service inside Kathmandu Valley and other few cities
Spice Nepal (P) Ltd. is providing cellular mobile telephone connections based on GSM from Mid September 2005 inside Kathmandu Valley and other major cities

History of Internet

The Internet was first introduced into Nepal in 1993 in a venture of the erstwhile Royal Nepal Academy of Science and Technology (RONAST) and Mercantile Office Systems (MOS).
Now almost all big cities have Internet facilities with local ISP

IT Policies

IT Policy of Nepal (2057/2067)
IT Policy of Nepal (2015)
NRB Guidelines
NRB IT Policies
Electronic Transaction Act

Computer Basics Terminology

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

COMPUTER BASICS – TERMINOLOGY

Application– A computer program that does specific tasks such as word processing or spreadsheets.

Bit – Represents a binary digit which is the amount of information obtained by asking a ‘yes’ or ‘no’ question. This is also the smallest unit of information stored on a computer as a 0 or 1.

Blinking Cursor – This is a vertical blinking bar that locates the position on the screen where text can be inserted or deleted. This appears most frequently in text or dialog boxes.

Byte – Data is stored on a computer in Bytes. A byte is one character, which may be a number or letter. A byte is composed of 8 consecutive bits.
1,000 bytes = 1 kilobyte (K or KB)
1,000 KB = 1 megabyte (MB)
1,000 MB = 1 gigabyte (GB)
1,000 GB = 1 Terabyte (TB)

Cache - This is a type of memory and is similar to RAM. Cache is used by the computer to move data between the RAM and CPU.

CD-ROM – A removable disk that stores data. A CD-ROM can only be read. You cannot record (save) data onto one. You may however record (save) onto a CD-Rewritable disk. This is most often called a CD. A CD looks like a music CD, but contains data instead of music.

Computer – A collection of electronic parts that allow software programs to run that perform certain tasks. A computer can accept input, change data, store data and display data.

CPU – The CPU (central processing unit), is the brain of the computer. New Windows-based programs use a Pentium processor primarily.

Cursor – A synonym for the pointer, which is controlled by the mouse. The cursor may take different shapes.

DVD (Digital Versatile Disc) – Technology that store more information than a CD-ROM and can be written upon. The disk resembles a CD-ROM but has approximately seven times the storage capacity.

File – A collection of data with a name.

Flash Drive – This is a small portable hard drive that plugs into a USB port and allows you to transport files between different computers. Also called a thumb drive.

Graphical User Interface (GUI) - A program that helps you more easily work with you operating system and application programs by providing pictures and visual clues to help you work. Windows is the GUI on PCs.

Hand Pointer – The cursor changes into a pointing hand when it passes over a hypertext link. This allows connecting directly to the link.

Hard Drive – The place where programs and files are stored in a computer. Also called the Hard Disc. On PCs this is often the c:// drive.

Hard Disc Space – The amount of permanent storage of data measured in bytes. This storage exists whether the computer is on or off.

Hardware – The physical components of the computer. They usually include the; monitor, printer, mouse, keyboard and modem.

Hourglass – This is the symbol that indicates the computer is working to retrieve or send data or locate a webpage.

Hypertext Link – These links are clicked on as text, images or files that open another web page.

Text Hyperlinks are often a different color than the words around them.

I Beam – As the cursor moves over text, the pointer will change into an ‘I.’ This facilitates word processing and copying text. See Blinking Cursor.

I or │

Keyboard – Similar in part to a typewriter keyboard, this is used to key (type) in commands, text and data.

Memory (RAM) – The amount of temporary storage that you can use at one time. Memory stores ends when the computer is shut down. This is the reason that you save work before turning off the computer. Data is saved from RAM to the computer or onto a storage unit, such as a CD.

Modem – This is a way to transfer data through a telephone or cable line generally by the Internet. It may be internal or external. Some modems are used to fax or act as answering machines.

Monitor – Similar to a television screen, the monitor allows you to see the data on your computer.

Motherboard – The circuit board that functioning parts of the computer connect to is the motherboard. The CPU, RAM and cache all plug into the motherboard.

Mouse – A hand-operated device to control the cursor on the screen. The mouse for PCs has two buttons. The button is usually clicked once to select an item on the screen. Double-clicking the left button opens windows or programs.

Multitasking – This describes the ability to do more than one thing at a time. For computer use this means that you may have more than one program open at time in the memory, but only one program can actually be fully active. Inactive programs can be processing data or doing other tasks in the background.

Network – A group of two or more computers linked together.

NIC (Network Interface Card) – A card is put in the computer allowing connection to a network.

Operating System – Directs the computer how to operate. It acts as a mediator between the hardware and the application programs that are used for work. This allows access to computer files, loads application programs into memory and closes programs.

Peripheral – This describes anything that can be attached to the computer input ports, such as; the keyboard, printer, mouse, external modem, scanner or external hard drive.

Pointer – The cursor is a symbol that moves across the screen to identify location. The cursor appears as a pointer when it is moving across a page and not on text.

Port – Connection on the computer that allows input devices like monitors, disk drives, the mouse, or keyboards. Common ports are serial for connecting a modem or a mouse, USB for connecting a scanner, digital camera, Ethernet ports for connecting to a network, and audio in/out ports for connecting to headphones or a microphone.

RAM – See Memory

Resolution – The degree of sharpness, or clarity or what is seen on a computer screen. The resolution is measured by the number of dots (pixels) of color that are displayed across and down the screen. As resolution increases, the size of the characters and images gets smaller, but sharper.

Scanner – A peripheral device that can copy documents, pictures or photographs directly into the computer converting the images into digital files. Images may then be stored or manipulated (changed).

Software – These are the programs (applications) that allow the computer to operate or do certain tasks.

Sound Card – This device allows the computer to reproduce music, sounds and voices. The computer needs a sound card to hear the audio portion of web sites or often to play multimedia games.

Thumb Drive – See Flash Drive

USB Port – The Universal Serial Bus is accessed through small rectangular port on the front or back of computer that allows peripheral devices such as digital cameras and external hard drives to connect to the computer. See Ports for other types of connections.

Video Card – This allows images to be sent to the monitor.

Computer Networks

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction

Computer Network is a group of two or more computers linked together.
Connected by various mediums like cables, wireless adapters etc.
Share common resources.

A collection of distributed, intelligent machines that shares data and information through interconnected lines of communication is called networking. When two or more computers are brought together in connection with cable or without cable, which may extend with in a limited room or to the entirely world, the computers are said to be network connection.

Devices required for computer Networking:

Computers
NIC (Network cards)
Communication Media
Network connecting devices
Signal Conversion devices
Communication Software

The Importance/Advantage of Computer Networks

Sharing of devices such as printer and scanner.
Sharing of Program/software.
Sharing of Files.
Sharing of Data.
Sharing of Information.
Sharing of Single high- speed internet connection.
Can access server centered database.
Better communication using internet services such as email, mailing list and Internet Related Chat (IRC).

Types of Computer Networks

Local Area Network
A local area network is usually privately owned and links the devices in a single office, building or campus of up to a few kilometers in size. Depending on the needs of an organization and the type of technology used, a LAN can be as simple as two PCs and printer in someone’s whole office, or it can extend throughout a company and include voice, sound, and video peripherals.

Metropolitan Area Network
A metropolitan area network is designed to extend over an entire city. It may be a single network such as a cable television network, or it may be a means of connecting a number of LAN’s into a larger network so that resources may be shared LAN to LAN as well as device to device.

Wide Area Network
The term Wide Area Network (WAN) is used to describe a computer network spanning a regional, national or global area. For example, for a large company the head quarters might be at Kathmandu and regional branches at Pokhara , Biratnagar , Dharan , Butwal etc.

Protocol
The standard rules and regulation of the networking system is called the protocol . The most common communication protocols are:

TCP/IP (Transmission Control Protocol / Internet Protocol)
PPP (Point to Point Protocol)
HTTP (Hyper Text Transfer Protocol)
FTP (File Transfer Protocol)
SMTP (Simple Mail Transfer Protocol)
POP (Post Office Protocol)
WAP (Wireless Application Protocol)

TCP/IP
Most common communication protocol used to establish communication between different host, node, segment and operating system. It uses an IP address to identify the computer/system/node on the network system. IP Address: Numeric value like as: 192.168.0.21.

Some Web Terms

Web Browser
URL
HTML (Hyper Text Markup Language)
Domain
ISP (Internet Service Provider)
Search Engine
Social Media

Top Level Domain
Extension : Meaning
.com : A company or business
.org : A non-profit institution
.gov : Governmental Agency
.mil : Military
.edu : Educational institution
.net : ISP or Network Provider

Software

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Definition
Computer software, or just software, is a collection of computer programs, procedures and documentation that performs different tasks on a computer system. In contrast to hardware, software “cannot be touched”.

Classification
Based on Working Principle: Two Classes

System Software
Application Software

Based on Commercial perspective

Commercial Software
Freeware/Open Source
Shareware

Application Software

An operating system OS ) is system software that manages computer hardware and software resources and provides common services for computer programs. All computer programs, excluding firmware, require an operating system to function. Firmware is a software program or set of instructions programmed on a hardware device.

Tasks of Operating System

Difference Between Client Operating System and Network Operating System

Introduction to Windows OS
Windows is Microsoft’s flagship operating system, the de facto standard for home and business computers. The GUI based OS was introduced in1985 and has been released in many versions since then, as described below. Microsoft got its start with the partnership of Bill Gates and Paul Allen in 1975. Gates and Allen co developed Xenix (a version of Unix ) and also collaborated on a BASIC interpreter for the Altair 8800. The company was incorporated in 1981. Microsoft became famous with the release of MS DOS, a text based command line driven operating system.

Introduction to UNIX OS
UNIX is an operating system which was first developed in the 1960s, and has been under constant development ever since. By operating system, we mean the suite of programs which make the computer work. It is a stable, multi-user, multi tasking system for servers, desktops and laptops. UNIX systems also have a graphical user interface (GUI) similar to Microsoft Windows which provides an easy-to-use environment. However, knowledge of UNIX is required for operations which aren’t covered by a graphical program, or for when there are no windows interface available, for example, in a telnet session.

Introduction to Linux OS
Linux is an operating system or a kernel. It is distributed under an open source license. Its functionality list is quite like UNIX. Linux is an operating system or a kernel which germinated as an idea in the mind of young and bright Linus Torvalds when he was a computer science student. He used to work on the UNIX OS (proprietary software) and thought that it needed improvements.

Types of Operating System

Batch operating system
Time-sharing operating systems
Distributed operating System
Network operating System
Real Time operating System

Batch operating system
The users of a batch operating system do not interact with the computer directly. Each user prepares his job on an off line device like punch cards and submits it to the computer operator.

Time-Sharing Operating System
Time-sharing is a technique which enables many people, located at various terminals, to use a particular computer system at the same time. Time-sharing or multitasking is a logical extension of multi-programming. Processor’s time which is shared among multiple users simultaneously is termed as time-sharing.

Distributed Operating System
Distributed systems use multiple central processors to serve multiple real time applications and multiple users. Data processing jobs are distributed among the processors accordingly.

Network Operating System
A Network Operating System runs on a server and provides the server the capability to manage data, users, groups, security, applications, and other networking functions. The primary purpose of the network operating system is to allow shared file and printer access among multiple computers in a network, typically a local area network (LAN), a private network or to other networks.

The advantages of network operating systems are as follows

Centralized servers are highly stable.
Security is server managed.
Upgrades to new technologies and hardware can be easily integrated into the system.
Remote access to servers is possible from different locations and types of systems.

Real Time Operating System
A real time system is defined as a data processing system in which the time interval required to process and respond to inputs is so small that it controls the environment. The time taken by the system to respond to an input and display of required updated information is termed as the response time. So in this method, the response time is very less as compared to online processing.

Utility Software
Utility Software is a collection of those programs that helps the programmer in performing some specific tasks to reduce the overall programming effort of the programmer. It also provides a useful service to the user of the computer by providing facilities for performing common tasks such as data transfer, search and merge of files, data and file recovery, diskette management, disk cleaner, disk derangement, system restore, anti virus, etc. It is also known as House Keeping Utilities or Service Programs.

Some Questions

What is Operating System? What are the different types of OS? List and explain.
What types of OS are used in banking system?
What are the functions of OS?

Application Software
Application Software utilizes the capacities of a computer directly to a dedicated task. Application Software is able to manipulate text, numbers and graphics.

Application Software can be categorized into
a) Tailored Software and
b) Packaged Software.
Tailored Software is that software that are specially designed and developed to solve specific job or task. For examples, school billing system, result processing system, printing of certificate, etc. Packaged Software is that software that is generalized set of programs designed and developed for the general purpose. For examples, producing bill or payment, accounting package, office package, etc. The most popular package software is Microsoft Office, Adobe Package, Tally, Fact, etc.

Microsoft Office

Microsoft Office is an office suite of desktop applications, servers and services for the Microsoft Windows and Mac OS X operating systems, introduced by Microsoft on August 1, 1989. First version of Office contained Microsoft Word, Microsoft Excel and Microsoft PowerPoint.

Most Common Microsoft Office Applications

Word – Words processing and mailings.
Publisher- Brochures, signs, cards, images etc.
PowerPoint- Presentations and Slideshows.
Excel- Spreadsheets, tables and mailings.
Access- Database Creation and management.
Outlook- Professional email and personal information manager.

MS – Word
Word Processor is a Software package that enables you to create, edit, print and save documents for future retrieval and reference. Creating a document involves typing by using a keyboard and saving it. Editing a document involves correcting the spelling mistakes, if any, deleting or moving words sentences or paragraphs.

Features of MS – Word

Formatting Text
Formatting Paragraph
Inserting Table, Word Art, Foot Note, Header, Footer, Page Number, Citation etc.
Defining Heading
Break • Generating Table of Content, Bibliography etc.
Mail Merge,
Page Setup and Printing

MS – Excel
MS Excel is used to store and analyze statistical and financial data.
Main Features

Auto Function
Usage of Formula
Usage of Functions
Producing Charts
Coping and Moving data/charts to other application (MS Word/MS PowerPoint)

MS PowerPoint
MS PowerPoint is used to prepare PPT Slides of any content. By using MS PowerPoint we can add following effects:

Slide Transition
Slide Animation
Hyperlink
Audio/Video
Designing
Copying Data from other applications
Header/Footer/Date/Time etc.

MS Access
Microsoft Access is a Database Management System (DBMS) from Microsoft that combines the relational Microsoft Jet Database Engine with a graphical user interface and software development tools. It is a member of the Microsoft Office suite of applications.

Features of MS – Access

Tables
Queries
Forms
Reports

MS Outlook
Microsoft Outlook is a personal information manager from Microsoft, available as a part of the Microsoft Office suite. Often used mainly as an e Mail, application, it also includes a calendar, task manager, contact manager, notebook, journal, and web browsing.

Some Questions

Define the term software. What are the different types of software? Explain in details.
What is Application Software? Why the bank use customized software?
Differentiate between System Software and Application Software.
Explain in details about MS Office.
Differentiate between hardware and software.

NRB: Computer

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

Introduction

Hardware and Software

Windows

Windows

Database Management System

Database

Computer Networking

Information System

Information System

Core Banking System

Core Banking System

Information Security

Basic Computer Terminologies

IT and ICT in Banking

IT and ICT in Banking

IT Policy of Nepal and NRB

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

IT Policy of Nepal (2057/2067)
Objectives

To make information technology accessible to the general public and increase employment through this means.
To build a knowledge based society.
To establish knowledge based industries.

IT Policy

To declare information technology sectors a prioritized sector.
To follow a single door system for the development of information technology.
To prioritize research and development of information technology.
To create a conducive environment that will attract investment in the private sector, keeping in view the private sector’s role in the development of information technology.
To provide internet facilities to all Village Development committees of the country in phases.
To render assistance to educational institutions and encourage native and foreign training as a necessity of fulfilling the requirement of qualified manpower in various fields pertaining to information technology.
To computerize the records of each governmental office and build websites for them for the flow of information.
To increase the use of computers in the private sector.
To develop physical and virtual information technology park in various places with the private sector’s participation for the development of information technology.
To use information technology to promote e commerce, e education, e health, among others, and to transfer technology in rural areas.
To establish National Information Technology Centre.
To establish a national level fund by mobilizing the resources obtained from His Majesty’s Government, donor agencies, and private sectors so as to contribute to research and development of information technology and other activities pertaining to it.
To establish venture capital funds with the joint participation of public and private sectors.
To include computer education in the curriculum from the school level and broaden its scope.
To establish Nepal in the global market through the use of information technology.
To draft necessary laws that provides legal sanctions to the use of information technology.
To gradually use information technology in all types of governmental activities and provide legal sanctions to its uses in such activities.

IT Policy of Nepal (2072)

Human Resource
ICT in education, research & development
Promoting public access and content development
Developing the ICT Industry Sector
ICT for Government service innovation and good governance
ICT in SMEs & promotion of e- Commerce
Telecommunications Infrastructure
Convergence of Telecommunications, ICTs and broadcasting
ICT in Agriculture
ICT in Health
ICT in Tourism
Telecommunication and ICTs in mitigating the impact of Climate Change
ICT in Environment and natural resources
Telecommunications/ICTs for natural disaster preparedness, mitigation and relief
Human Exposure to electromagnetic fields and safe disposal of electronic waste
Conformance, Interoperability and Standards
in Telecommunications/ICTs
Cloud Computing
Access to Telecommunications/ICTs for rural and remote areas
Access to Telecommunications/ICTs services for persons with disabilities and specific needs
ICTs for Youth, women and girls
Building Confidence and Security in the use of ICTs

NRB IT Policies (2068)

Ensure efficient, effective and economic IT operation by implementing appropriate IT System
Maintain well structured, secured physical layout of its IT infrastructure with proper documentation
Maintain multilevel security for Information
Implement IT system audit
Develop, implement and maintain data backup and recovery policy
Establish and maintain efficient, effective and economic Disaster Recovery (DR) System as an instrument to “Fail Safe System” with minimum down time. Also, develop and maintain Business Continuity Plan (BCP)
Develop and implement IT Outsourcing and Third Party involvement mechanism
Maintain uniform and legitimate IT infrastructure in all its offices
Provide IT directives to licensed Banks and Financial Institutions
Set a standard for IT procurement and shall be reviewed based on technological development
Promulgate “NRB IT Code of Conduct” for proper usage of NRB IT resources
Strengthen IT capacity building of employee

NRB Guidelines (2012)

IT Governance
Information Security
Information Security Education
Information Disclosure and Grievance Handling
Outsourcing Management
IT Operations
Information Systems Acquisition, Development and Implementation
Business Continuity And Disaster Recovery Planning
IS Audit
Fraud Management

Electronic Transaction Act (2063/2064)
Procedures of Electronic Record and Generation and Security of Digital Signature

To Certify Electronic Record
Verification of Digital Signature
Secured Electronic Signature and Record
Quality Standard Concerning Information Technology to be maintained by the Certifying Authority
Receipt of Acknowledgement of Electronic Record
Time of Receipt of the Electronic Record

Some Questions

What are the major focuses of IT Policy of Nepal Government?
List and explain the IT Guidelines of Nepal Rastra Bank (NRB).
What are the major focuses of IT Policy of NRB ?

Questions & Answers
Explain the development of IT policy in Nepal and highlight the current status of IT in Nepal.

Current Status:

Banking and Tele Communication Industry are moving towards to
Automation
The Government including Ministries are prioritizing usage of IT and ICT
to their daily work
Government has introduced e Governance system to the public like as:
Smart License System, National Identity Card, Digitization of Land and mapping system, etc.
The concept of SMART City is emerging
Universities are prioritized their teaching and learning methodologies
through IT and ICT
In other service sector like as Hospital, Home Ministry, Health Ministry prioritizing to use the IT and ICT.
Software companies are emerged and developed
So on……

What are the significant amendments made in the IT policy 2072 from IT policy 2067.

Explain the major provisions of IT policy in Nepal and suggest some improvement to be done in such policies

Suggestions
i) Deployment
ii) Implementation
iii) Evaluation time to time

Information Security

NRB Computer Notes — Sun, 08 Apr 2012 05:41:42 +0000

5 Challenges of Internet of Things ( IOT )

Security
Privacy
Standards
Regulation
Development

Security Threats in Bank

Mobile Banking Risks
Social Networks and Web 2.0
Malware, Botnets and DDoS Attacks
Phishing
ACH Fraud: Corporate Account Takeover
Cloud Computing
Inside Attacks
First-Party Fraud
Skimming

Information Security
Information Security refers to the processes and methodologies which are designed and implemented to protect print, electronic, or any other form of confidential, private and sensitive information or data from unauthorized access, use, misuse, disclosure, destruction, modification, or disruption.

Techniques

Encryption
Authentication
Firewall
Other Security

Encryption

Encryption is the conversion of electronic data into another form, called cypher text , which cannot be easily understood by anyone except authorized parties.

Authentication
The process or action of proving or showing something to be true, genuine, or valid .

Types:

User Authentication
Machine Authentication

Firewall

A firewall is a network security system, either hardware or software based, that uses rules to control incoming and outgoing network traffic.

Data Center Security Design

Data Centers

Some Questions

What is Information Security? What are the techniques of Information Security?
Why it is required to maintain multilevel security in bank?