Mar 20, 2018

What is Core Banking System (CBS)?



What is Core Banking System?
Core Banking System in simple layman’s language is a centralism of banking activities where one can avail all the services from any network bank branches.

Core Banking System (CBS). 
Core Banking System is a new generation banking solution which delivers almost all the banking services from network bank branches. One can access the account and accomplish almost all banking serives from network bank branches. This has made banking ultra expedient for its Customers.

Earlier the banking could perform services like cash withdrawal, deposits and various other serivces from home / base branch only, but with the introduction of CBS even almost every transaction can be processed from network bank branches such as if you have an account with Mumbai branch and even travelling anywhere in India can deposit cash in any of your nearest bank branches.

Mostly the Retail Customers are managed through CBS and other verticals such as Corporate and Large businesses are managed by separate divisions.

CBS covers bank account opening, cash deposits, cash withdrawal, Fixed Deposit bookings, cheque payments, transaction record maintenance and cheque book issuance. Various banks have different validations as per cost involved in CBS. Every bank has distinct schedule of charges on various set of accounts which runs under CBS.

Benefits of CBS in Banking. 
1. Banking services can be availed from anywhere in India.
2. Clearing system covered under Cheque Truncation System (CTS).
3. Base/Home branch concept has been moved on CBS platform.
4. Loans application can be processed from anywhere.
5. Real time transactions  processing pan India.

CBS is a boon in Banking industry which has made Banking system revolutionary in India.

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