What is Core Banking Solution in India?

Core Banking Solutions (CBS)

Information Technology (IT) helps banks to reduce their cost of operations and enables them to offer products and services at competitive rates to their customers. Further, for effective regulatory and supervisory compliance the banks need to use IT in their operations.

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account.

How does CBS help Customers?

All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services could be:

  • To make enquiries about the balance; debit or credit entries in the account.
  • To obtain cash payment out of his account by tendering a cheque.
  • To deposit a cheque for credit into his account.
  • To deposit cash into the account.
  • To deposit cheques / cash into account of some other person who has account in a CBS branch.
  • To get statement of account.
  • To transfer funds from his account to some other account – his own or of third party, provided both accounts are in CBS branches.
  • To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to his account etc.

How does CBS help Banks?

  • It helps in integration of the range of services that can be offered by all the bank’s branches from centralized data centers.
  • It helps the banks  to  provide better customer service,
  • It helps in generating MIS reports for the top management
  • It also helps in submission of various reports to the regulators and the Government