punjab national bank institute of information technology

ISSN 2249 –1996 Vol. IX No. 2 April - June 2017

e-track

Vibhuti Khand, Gomti Nagar, Lucknow- 226 010 (U.P.)

Digitisation of Document Related Financial Transactions

PNBIIT

Untrained PeopleTrained People

April-June 2017

e-track

Chief Patron

P. P. Sharma

Editor

Pratima Trivedi

Editorial Team

Sanjay Srivastava

Printed by

Mahi Graphics

Indira Nagar, Lucknow

Mobile : 9415753370

punjab national bank

institute of information technology

Vibhuti Khand, Gomti Nagar,Lucknow--226 010 (U.P.)T : +91 522 4062775, 4062016F : +91 522 4005202E-mail : bankingtech@pnbiit.ac.inURL : www.pnbiit.ac.in

Divyang Rastogi

Pramod Dikshit

e-track

Dream is not what you see in sleep.

Is the thing which doesn't let you

sleep

-APJ Abdul Kalam

Thought

FROM THE EDITOR'S DESK

Dear Readers,

The world has changed and continues to

change rapidly. The convergence of

telecom, media and computing has

transformed the way we work, play and

live. Digitization in finance is entering

the world at a very fast pace. The step

taken by RBI of December 8,2016 by

allowing the opening of deposit and

borrower accounts through OTP, eKYC is a significant leap

in making paperless and cashless finance a reality. It will help

in big way towards increasing financial inclusion and

bringing in potentially hundreds of millions of unbanked

Indians under the ambit of formal banking – all thanks to the

power and reach of cellphones. Digital technology can reduce

costs and expand a bank's operational footprint without

requiring more people on the ground. Digitization of

document related finance is also one of the major innovation

which will streamline the functions. With this, there is better

risk management. Keeping this in mind, this serving of e track

brings articles on new innovations in digital technology

related to document in finance.

I hope readers will be benefited by it .

Happy reading !

Pratima Trivedi (73792)Chief Manager, PNBIIT Lucknow

e-mail : pratima@pnbiit.ac.in

Contents

From The Director's Desk 3 Digitization of Document Related

Handwriting and Signature a Forensic Encounter 4 Financial Transactions 23

Digital Trade Finance 12 Infosys Launches New Version of Finacle 26

Ransomware 15 Bitcoins: Most Valuable and Hidden Currency 27

Transformation of Kyc to C-KYC 21 Banking and Technical News 28

GST (Goods and Services Tax): At A Glance Book Review 30(one Country: one Tax: One Market) 22

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P .P. Sharma(Director)

FROM THE DIRECTOR'S DESK

Indian Banking industry today is in the midst of a Technology

Revolution. A combination of regulatory and competitive reasons

has led to increasing importance of total banking industry. Digital

Technology has brought about significant changes in the business

process and has improved productivity by reducing transaction cost.

It has also facilitated the outreach of banking services in the rural

areas through Financial Inclusion. The launch of UPI by the National

Payments Corporation of India (NPCI) has thrown open the gates for

innovation in the open banking space. Progressive banks are already

making strides in cloud adoption. Disruptive technologies that are changing the face of

business-Big Data, blockchain, artificial intelligence (AI), IoT-will be leveraged using

cloud computing. Banks are utilizing software robots to minimize time in rendering

customer services.

Punjab National Bank's vision is to position itself as a world class, cost effective and

customer- friendly bank, integrating technology in serving various segments of the society,

to help inclusive economic growth. Technology is not to be looked as a tool but it is a

business enabler - a key driver in business development and financial inclusion.

In its endeavor to spread the Technology culture, PNB has also set up "Punjab

National Bank Institute of Information Technology (PNBIIT)". It is an autonomous body

with the objective of imparting training and education for effective use of Technology, in

developing operations and business banking to improve customer service.

The Institute is coming out with its quarterly journal "e track", to bring awareness

about IT innovations as well as to spread and enhance the technology awareness among the

banking fraternity. The journal has collection of informative articles, which for sure will

add to the Knowledge of Readers.

Happy Reading !

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HANDWRITING AND SIGNATURE A FORENSIC ENCOUNTER

-Rajesh Kumar

Preface: concentrates on the characteristics such as

The science of handwriting a. Initial and final strokes

analysis is based on the b. Slant (pitch)premise tha t no two

c. Alignmentindividuals can produce

d. T-crossingexactly the same writing and

that an individual cannot e. I-dotsexactly reproduce his own f. Spacing

handwriting/ signature other wise known as g. Graffitivariation. variations are natural deviations that h. Method of construction of letteroccur in a person's handwriting.

i. Flow of the letter.Signature foregery can occur in many ways

including freehand simulation, tracing and image

transfer. Introduction-

* Handwriting:Concept:

Writing is a system for symbolizing the * Chance of coincidence in the signatures of language symbols, it is a conventional system

two persons is rare but may be possible if of marks or signs that represent the utterances the signature is particularly simple. of a language. Handwriting is taught to and

learned by a person using either a copybook * Must to mention that a finding that a letter form or observing and adopting a letter, signature is genuine does not establish the combination of letters or symbols as written genuineness of the document as whole as it by someone else.may be the product of some form of

document manipulation. Therefore handwriting is:

* Documents are not always what they are a. conscious or subconscious actrepresented. A forger tries to show as if the

b. repeated usedocuments he is presenting is a genuine

c. automatic formation of letterone.

d. habitual act* Crime of forgery is as ancient as writing.

writing is a discriminatory process; its e. mannerismcomparison is one of the major aspects of

f. muscular and nerve movements of the bodyquestioned document examination

g. changes with state of mind, health, age etc.* Comparison of handwrit ing and

signatures is dependent on class and

individual characterstics of an individual. It can also be described as:pictorial appearance of the writing can

Formation of letters, characters or symbols change from childhood till adolscence but

based on recognizable pattern which is designed to the individuality will not change,

communicate with another person. It is infact an therefore, the document examiner

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acquired skill and clearly one that is a complex Methods of forgery-

perceptual motor task, sometimes referred to as a a. Blind Forgery: Where instead of imitation of neuromuscular task. Therefore, the basic principle original signature, forger puts his own o f d o c u m e n t e x a m i n a t i o n l i e s o v e r signature.individualization of handwriting.

b. Traced Forgery: When forger traces the * Signature: original signature and imitated the same

It is a combined result of cumulative effect of a through

number of factors such as muscular control, co- * Carbon tracingordinatioin, health, age, frequency of writing,

* Simple tracingtemperature, artistic ability, nature of

* Using transmitted lightemployment, model system etc.c. Simulated or freehand forgery: forger

practices the genuine signature and tries to Categorisation of Signature:

imitate the same signature on the other 1. Formal or authentic signature: it is the document.combination of writing characters which are

d. Transplanted forgery: when signature consistent with natural conditions surrounding the

transferred from some genuine source to a signed document. it is usually used for signing

fraudulent document either by using wills or important documents.

computers or by photocopying machines

Forgery examination- typical questionsWay of identification:

* Genuinity of signature?a. Written rapidly * Who forged the signature?b. Have rhythm when written by experienced * Whether forger is a habitual culprit?

writer with proper health* Did someone guide a person's hand as a will

c. May miss certain information was signed?d. Introduce certain other forms * Did the signer of the document also initial the

e. End strokes flourish changes?

* What is written under the crossed out portion f. Smoothof the writing?g. Natural free flowing appearance

* Are there erasures on the document?2. Forged signature: which are practiced * Are there alterations or obliterations of the illegally and not genuine?

handwriting?How to identify: * What was originally written before the

* Appearance of being slowly writtenalteration or under the obliteration?

* Lack of rhythm and individuality* Was the entire document rewritten, or was it

* Unnatural appearance prepared sequentially, over a period of time?* Appearance of being drawn

* Attention towards formation of letters FORENSIC EXAMINATION-FORGERY. Ideology

The examinations of questioned documents

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pertains to handwriting and signature in court of law demands answering of certain questions. as the basic

principle of document examination lies over individualization of handwriting, therefore it's answer is

derived from these queries:

1. Genuinness of signature

2. Originality of handwriting

3. Authorship of the handwriting and signature

4. Whether handwriting is disguised

5. Whether handwriting is transplanted

Doctrine

Basically identification of handwriting is comparison of class and individual characterstics of the

given handwriting sample, it starts with observation of general appearance of the questioned writing as

compared with the genuine standard writing which established characteristics of conspicuous. The important

principles of handwriting are:

1. Writing of a person influenced by experience, environment, mental condition, physical and

emotional make up, therefore no two persons can write exactly alike at any moment.

2. Even writing in the same way twice is not possible by any person.

3. Basically identification of handwriting is comparison of class and individual characterstics of the

given handwriting sample. it start with observation of general appearance of the questioned writing

as compared with the genuine standard writing which established characteristics of conspicuous. the

important principles of handwriting are:

4. Writing of a person influenced by experience, environment, mental condition, physical and

emotional make up, therefore no two persons can write exactly alike at any moment.

5. Even writing in the same way twice is not possible by any person.

Detection & Methodology..

True identity of handwriting is dependent on the assumption that certain deeply set characteristics which a

writer develops in him over his lifetime are consistently and consciously reproduced in a person's

handwriting. even one tries to disguise, the peculiarities come out unknowingly.

To detect the correct one, the comparison of handwriting and signature inculcate below given characteristics.

* Slant: this is the angle of writing and can be forward or backward. slant in writing is characteristic

that becomes highly significant under certain conditions because it is one of the most fixed habits. a

slight slant in two handwritings of considerable length may be evidence that the writings are by

different writers. while a prominent difference might be the result of intended disguise.

example

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* Movement : The writing is executed with the movement of fingers, the wrist, the whole arm or the

combination of some of these movement is the way a pen moves in order to form a letter. This can

help distinguish the difference in the form. Two letters can be same but made in a different way.

* Loops: It's curved strokes combined to form a circle or a oval. It is the closed oblong curve in the

letter, such as upper parts of '1' or of 'h' or the lower parts of 'y' or 'g'.

* Alignment: It is the baseline of writing in roman scripts, in English the base line is at bottom. The

letters and words sit on a line which may be actual or imaginary. The relation of letters of words or a

signature or a written line with this actual or imaginary baseline is alignment. The alignment may be

ascending, descending, even, irregular, uneven and wavy.

* T-crossing and I-dot: One of the most tellatale strokes which will give away the forger is the t-

crossing and another is i- dot. no matter how careful the imitator may be, he will have a hard time not

leaving his own characteristics behind in making these strokes.

* Spacing: It is the distance between letters in words between words in the sentences between two

lines. Spacing is the very important factor in matter of traced forgeries when he disputed and model

signatures are superimposed on each other, but in traced forgeries usually the spacing and size of

alphabets remain mathematically same, spacing may be average, narrow or wider.

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* Strokes: These are found in initial or final writing of handwriting and most dificult to copy/forged.

the end strokes are called spur. The systematic comparision of each of these strokes gives the

examiner revealing evidence.

* Skill: The skill acquired by a person depends upon his intial training, writing experience and

emotional and intellectual personality. He cannot improve upon it. a person with inferior skill cannot

simulate the writing of a person with superior skill. He can thus be easily eliminated as suspect.

* Arc: It is a curved line in a letter specially found in the handwriting of an individual who writes

cursive handwriting.

* Buckle: A small knot shaped loop or oval specially found in the letter a or k or f sometimes. This is a

kind of improvisation in an individual's handwriting which develops with practice.

* Hook: It is small embellishment found in the form of hook at the beginning or sometimes at the

ending of the letters.

* Staff: The longest straight stroke in specially capital letters is known as staff.

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* Rhythm: This is found in the writing of these hesitations in the starting strokes occur

educated persons with ample writing because the forger is not certain whether he

experience only. Rhythm is indicated by will be able to do the job efficiently or not, in

the flow of writing, correct line quality the ending stoke he fears whether he has been

and punctuation and proportionate able to forge the signature well or not, in

formation of letter and figures. It is the genuine these strokes are done rather more

product of writing and reading experience freely than rest of writing.

and cannot be imitated. * Size Consistency: The ratio of height to width

* Pen pressure: Forced applied by the is consistent or inconsistent.

fingers in the process of writing * Lettering Complete: The letter begins and unconsciously mark impression on paper, ends on the page or part of the letter is missing.usually those persons put pressure on

certain words are slow writers. Illiterate

Technology used in Handwriting Analysispersons ordinarily write with heavy

pressure. 1. Biometric Signature Pads:

* Pen pause: Experienced and well trained * Learns to recognize how a person signs.writers do not ordinarily pause in the

* Evaluates speed, pressure, and rhythm of the writing the letters of a word. Pen pause is

signature.natural in the writing of illiterate persons

* Recognizes forgeries by the detection of even who find difficult to execute the writing.

slight differences.the pen pause from the forger's pen is

2. Computerized Analysis:different from the pause of an illiterate

person though the reasons of pause are * Compares handwriting samples objectively.

same, in usual cases of forgery, it has been * Compared with samples stored in databases.

detected that pen pauses in starting stroke, 3. Retention Factor (RF) :

ending stroke, embellishment at difficult

* A number that represents how far a compound formation and connectives.

travels in a particular solvent.* Pen lifts: Certain writers lift their pen

* It is determined by measuring the distance the when certain letter formations are met

compound traveled and dividing it by the with, e.g some writers lift pen to put a dot,

distance the solvent traveled. to cross a t complete an incomplete letter.

when the genuine signature does not

contain any pen lifts consistently, pen lifts Equipment used in Analysis

in the questioned signatures indicate 1. Electro static detection apparatus:forgery.

It is used to visualize indentations by applying an * Hesitations: The starting and ending electrostatic charge to a transparent film. The film is strokes in the forgery show hesitations laid across the page in question and once the charge through the remors of lack of firmness.

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has been applied, black toner is passed across the Section-463: forgery: Whosoever makes any false

film and reveals any indentations. This method documents or electronic record part of a document or

can also determine if something has been added to electronic record with, intent to cause damage or

a log after original entry was made. injury.

This non-destructive test readily permits the fast Section-464- A person is said to make a false

and routine examination of all suspect documents. document or false electronic record:

2. Video Spectal comparator: 1. Dishonestly or fraudulently- makes, signs,

seals or executes a document/electronic It is used to analyze inks and see whether they are record/affix any digital signature.the same or different. this is done by looking at

them under different lighting conditions where 2. Without lawful authority, dishonestly or

some wavelengths of light are blocked. This fraudulently, by cancellation or otherwise,

technique can uncover layers in documents where alters a document or an electronic record.

words have been scribbled out or written over. 3. Dishonestly or fraudulently causes any person

Light source for document examinations and to sign, seal, execute or alter a document or an

verification of official documents. electronic record or to affix his digital

signature on any electronic record knowing 3. Infrared Reflectance:that such person by reason of unsoundness of

It is used to show the residue of pencil marks. this mind or intoxication.

can be done clearly even if the writing has been Section: 465: Whoever commits foregery shall be erased. Pencils are made of graphite which is a punished with imprisonment or either description for a form of carbon and this absorbs infrared light well.term which may extend to two years, or with fine, or

4. Stereo Microscope:with both.

It is an optical microscope variant designed for Section: 466: Whosoever forges a document or an

low magnification observation of a sample, electronic record shall be punished with imprisonment

typically using light reflected from the surface of of either description for a term which may extend to

an object rather than transmitted through it.seven years, and shall also be liable to fine.

5. Paper Chromatography of ink:Section: 467: Whoever forges a document which

Two samples of black ink from two different reports to be a valuable security or a will, or an manufacturers have been characterized using authority to adopt a son, or which purports to give paper chromatography. authority to any person to make or transfer any

valuable security, or to receive the principal, interest Penal for foregery-IPC-1860or dividends thereon etc, shall be punished with

Section 463 to 489e of indian penal code-1860 imprisonment for life, or with imprisonment of either

deals with various kinds of forgery related to description for a term which may extend to ten years,

signature and handwriting. Intensity of and shall also be liable to fine.

punishment is directly proportionate to magnitude Section: 468: Whoever commits forgery, intending of crime.

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that the document or electronic record forged shall same manner as if he had forged such document or

be used for the purpose of cheating, shall be electronic record.

punished with imprisonment of either description

for a term which may extend to seven years, and Infamous forgers and forgeries........

shall also be liable to fine.* William Henry Ireland (Shakespeare

Section: 469: Whoever commits forgery Forgeries)(intending that the document or electronic record

* Dorman David (Texas Declaration of forged) shall harm the reputation of any party, or

Independence)knowing that it is likely to used for that purpose,

* Clifford Irving (Howard Huges Forgery)shall be punished with imprisonment of either

* Konard Kujau (Hitler Diaries)description for term which may extend to three

years, and shall also be liable to fine. * James Macpherson (Ossian Manuscript)

Section: 470 : A false document or electronic * Alexander Howland Smith (Historical

record made wholly or in part by forgery is documents)

designated a forged.* Abdul Karim Telgi (Stamps Forgeries)

Section: 471: Whoever fraudulently or

dishonestly uses as genuine any document or

electronic record which he knows or has reason to

believe to be a forged shall be punished in the

Author is Rajesh KumarTraining Head (cm), ZTC, Kolkata

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Digitization allows corporates Digitization of trade finance leads to

to achieve better control of * Faster and Smooth Processingtheir credit facilities, reduce * Saves Costsfees and speed up the * Enhances Risk Managementapplication process, enabling * Better Working Capital Managementthem to grow transaction

Key solutions to this are v o l u m e s w i t h o u t t h e

* LC Doc Prep Servicesrequirement for additional

* Optical Character Recognition (OCR) and credit.

Intelligent Character Recognition (ICR) For export letters of credit, faster document technologies.preparation and reduction of errors allows exporters

* MT798to offer better pricing. Buyers can also claim the

goods earlier when the exporter sends the original * Bank Payment Obligationpaper documents directly to the issuing bank, while

* Electronic Bills of Ladingproviding electronic copies to the domestic bank,

* Blockchain (Still at early stage for Trade Global merchandise trade, roughly around USD 15-

Finance)16 Trillion annually. Estimated annual Trade

1) LC Doc Prep Services (letter of credit Finance Revenues for Banks are around USD 23 document preparations)Billion. Trade finance still is a highly paper

intensive area of business in Banking. It is estimated

that in a single Cross Border trade transaction,

roughly around 30-35 Original Documents are

required. The cost for handling LC transactions are

high for Banks due to manual document handling,

checking and processing, which in turn leads to

delays, occasional errors and inefficiency.

Many companies are offering these services and

thereby creating document library. Various

documents related to LC like Performa Invoice,

International Sale Contract, Commercial Invoice,

Packing List, Weight List., inspection Certificate,

Certificate of Analysis., pre-Export Verification of

DIGITAL TRADE FINANCE

- Pratima Trivedi

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Conformity (PVoC) Certificate., Fiata Documents SWIFT system. MT 798 caters for the following

which are not considered as a transport document: instruments:

FCR, FCT, FWR, SDT, shipment Advice. etc * Import letters of creditBanks, exporters, buyers and other third parties can

* Export letters of creditview and communicate through this platform's web

* Guarantees/standby letters of credit.enabled capabilities. This will allow for efficient,

accurate and robust information and documentation All the leading trade finance banks and vendors are

to be available for all parties concerned when using theses. MT798 can be used with any software

needed. Also these capabilities will facilitate solution.

efficient movement of trade goods and payments.

Document Preparation involving international 4) Bank Payment obligation

transactions and several parties can be a stressful Bank payment obligation (BPO) is a class of and tedious job otherwise.settlement solution in international supply chain

finance.Bank payment obligation (BPO) is an 2) Optical Character Recognition (OCR) and irrevocable undertaking given by an Obligator Bank

Intelligent Character Recognition (ICR) (typically buyer's bank) to a Recipient Bank technologies. (usually seller's bank) to pay a specified amount on a

Optical Character Recognition is a technology used agreed date under the condition of successful

to extract information from an electronic document electronic matching of data according to an

image, whether originally in electronic format or a industry-wide set of rules adopted by ICC.

scanned paper document. It enables one to convert

different types of documents, such as scanned paper 5) Electronic Bills of Lading

documents, PDF files or images captured by a It is a powerful combination of a legal framework digital camera into editable and searchable data. It and technology which replicates the core elements scans documents containing texts and further covert of a traditional paper bill of lading, namely its them into documents that can be used for editing.functions as a receipt, as evidence of the contract of

Intelligent character recognition (ICR) is an carriage and as a document of title. It enables all

advanced optical character recognition (OCR) or - parties to access the bill as an electronic document.

rather more specific - handwriting recognition An electronic bill of lading (or e B/L) is the legal and

system that allows fonts and different styles of functional equivalent of a paper bill of lading.

handwriting to be learned by a computer during

processing to improve accuracy and recognition

levels.

It reduces human error, hasten the data entry

process.

3) MT 798

MT798, also referred to as "The Trade Envelope," is

an authenticated message used to exchange Trade

data between corporates and member banks of the

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6) Block chains entities, including banks, the ability to access a

single source of information.It is a digital ledger in which transactions made in

bitcoin or another cryptocurrency are recorded

chronologically and publicly. Bitcoin is digital

currency that allows you to perform peer-to-peer

transactions without the help of a third party such as

banks. Blockchain allows users to manipulate the

ledger in a secure way without the help of a third

party.A bank's ledger is connected to a centralised

network. As opposed to writing entries into a single

sheet of paper, a blockchain is a distributed database

that takes a number of inputs and places them into a

block. Each block is then 'chained' to the next block

using a cryptographic signature. This allows References blockchains to be used as a ledger which is

1) https://www.treasurers.org/node/310681accessible by anyone with permission to do so. If

2) www.bankingtech.com/category/topic/ trade-everyone in the process is pre-selected, the ledger is financetermed 'permissioned'. If the process is open to the

whole world, the ledger is called unpermissioned." 3) http://www.coindesk.com/information/ what-Banks are experimenting with blockchain as they is-blockchain-technology/can use it for money transfers, record keeping and

other back-end functions. The blockchain

application replicates the paper-intensive

international trade finance process as an electronic

decentralised ledger, that gives all the participating

Author is Pratima Trivedi, Chief Faculty at PNBIIT Lucknow.

She is also editor of E-track Magazine.

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NEFT transactions to become faster: Here's all you need to know about RBI's decision to improve customer

experience.

The National Electronic Fund Transfer, or NEFT, is one of the most commonly-used ways of transferring

money online from one bank account to another. But until now it had a limitation - transfer was not

instantaneous.

But that will soon change with the RBI deciding to enhance the payment system and reducing the clearance

time. Presently, in NEFT, money is transferred in batches. There are 12 settlements between 8am and 7pm on

weekdays and six settlements between 8am and 1pm on Saturdays.

This will now be reduced from hourly batches to half hourly batches, 11 additional settlement batches will be

introduced at 8.30am onwards, taking the total number of half hourly settlement batches during the day to 23.

According to the RBI, there is no cap on the amount of money that can be transferred. But, individual banks set

a limit.

Source: http://www.businesstoday.in/

April-June 2017

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Ransomware is a type of malicious software or The user was asked to pay

malware that carries out an extortion attack from US$189 to "PC Cyborg

cryptovirology that blocks access to data until a Corporation" in order to obtain

ransom amount is paid online and displays a a repair tool. The Trojan was

message requesting payment to unlock it. Simple also known as "PC Cyborg".

ransomware may lock the system in a way which is Popp was declared mentally

not difficult for a knowledgeable person to reverse. unfit to stand trial for his

actions, but he promised to More advanced malware encrypts the victim's files, donate the profits from the malware to fund AIDS making them inaccessible, and demands a ransom research.payment to decrypt them. The ransomware may also

encrypt the computer's Master File Table (MFT) or The notion of using public key cryptography for

the entire hard drive. ransom attacks was introduced in 1996 by Adam L.

Young and Moti Yung. Young and Yung's original Thus, ransomware is a denial-of-access attack that experimental cryptovirus had the victim send the prevents computer users from accessing files since it asymmetric ciphertext to the attacker who deciphers is intracable to decrypt the files without the it and returns the symmetric decryption key it decryption key. Ransomware attacks are typically contains to the victim for a fee. carried out using a Trojan that has a payload

disguised as a legitimate file. Long before electronic money existed Young and

Yung proposed that electronic money could be

extorted through encryption as well, stating that "the BACKGROUND HISTORY OF

virus writer can effectively hold all of the money RANSOMWARE

ransom until half of it is given to him. Even if the e-1996- First asymmetric ransomware prototypes money was previously encrypted by the user, it was

of no use to the user if it gets encrypted by a 2005- GPCode invented

cryptovirus.2009-Bitcoin invented

2013- Reveton, CryptoLocker, CryptoDefense

GPCODE2014- CryptoWall, CTB-Locker, Virlock

In 2005, GPCode, also called PGPCoder, was 2015- TorrentLocker, CrytoWall, Ransomware- as-launched. It was a relatively simple Trojan a-Service, TeslaCrypt, Alpha Cryptencrypting common user files that matched the

extensions matching those in its code. These The first known malware extortion attack, the extensions included .doc, .html, .jpg, .xls, .zip, and "AIDS Trojan" was written by Joseph Popp in 1989. .rar. The Trojan would drop a text file that demanded It had a design failure so severe it was not necessary payment in each directory with affected files. Back to pay the extortionist at all. Its payload hid the files then, the payment was typically between $100-$200 on the hard drive and encrypted only their names, in e-gold or a Liberty Reserve account. The security and displayed a message claiming that the user's industry was able to come up with a variety of license to use a certain piece of software had expired. solutions to this Trojan (such as virus detection and

RANSOMWARE

- Sangita Nayak

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utilities to combat GPCode). GPCode was knowledge, e.g. to send spam) that was spreading

considered modestly successful in that the malware Crypto Locker, but not before other malware authors

author(s) behind GPCode and its variants were able saw the promise of Crypto Locker and spawned

to collect some money, but many variants had flaws variants that persist to this day.

(using symmetric encryption, deleting the In summary, the success of Crypto Locker unencrypted files in a way that allowed disk scanners plus the combination of business models, digital to recover the files, etc.) that permitted users to currency, and evasion techniques has led to the recover data without paying the ransom. pervasiveness of ransomware in today's threat

landscape.

PUBLIC KEY CRYPTOGRAPHY

Public key cryptography is the use of an encryption DIGITAL CURRENCY PAYMENT

key by one party to perform either encryption or The first payment methods for ransomware were e-decryption and the use of another key in the gold and Liberty Reserve, as used by GPCode. E-counterpart operation. In symmetric-key gold was the world's first digital currency that was algorithms, there is a single key used and shared backed by hard assets of gold and silver bullion. E-between receiver and sender, thus the key used by gold was shut down in large part because the US the receiver and sender is symmetric because it is the Secret Service caught wind of criminals using it to same. The use of multiple keys in asymmetric public transact illegal commerce. However the invention of key cryptography allows ransomware to encrypt Bitcoin really sparked the imagination of the hacker items on a system with a public key while never community.exposing the private key, thus keeping it secret. For

ransomware, this is essential for mangling data files BITCOINwithout exposing anything that someone could use

to figure out how to undo the encryption. Bitcoin is essentially a digital asset and payment

system invented by Satoshi Nakamoto and released

as opensource software in 2009. Bitcoin is the first CRYPTO LOCKER

decentralized digital currency. It is unique in that it Crypto Locker was a ransomware Trojan that solves a number of problems that plagued earlier launched in September 2013. By combining attempts to produce this kind of currency.capabilities such as more powerful asymmetric

encryption methods and using the new cyber * Bitcoin owners can prove they have funds currency of Bitcoin as payment, ransomware started

without risk to the owner.to really take off. Crypto Locker was the first of a

new generation of ransomware using Bitcoin for * There is no central bank or authority for the

payments. Crypto Locker was estimated to have currency, which eliminates the ability of the

earned its author $27 million in Bitcoin before it was currency's value to be manipulated by that

shut down. Law enforcement working together with authority.

the threat intelligence community succeeded in * Transactions on the Bitcoin network are taking down the botnet (a network of private pseudonymous, meaning that although a computers infected with malicious software and currency transaction is announced on the controlled as a group without the owners' network, there is no easy way to link Bitcoin

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account addresses to real-world identities, so Almost one out of four recipients open phishing

the people conducting the transaction have a messages and, shockingly, more than one out of 10

significant amount of privacy. click on attachments to phishing messages. In

addition, nearly half of all recipients open phishing * Transactions are not location-specific, so emails and click on the links within the first 60 currency can be seamlessly sent across minutes of receiving the emails. borders.

Despite all the corporate training, news articles, and * Basic transactions are irreversible. Once a public awareness, the human operating system is transfer is made, there is no way for a third still the weakest link.party to force a chargeback (as with a credit

card). The second step is infection. The binary arrives on

the user's computer and starts the processes it needs * There are no hard assets (such as gold) backing to complete its malicious activities. These may Bitcoin. Rather than relying on hard assets, include quite a bit of new, sophisticated behaviors.Bitcoin miners use Bitcoin mining software to

solve Bitcoin algorithms and earn Bitcoins. The third step is communications. The ransomware

The algorithms are extremely hard to solve process will talk to encryption-key servers to

and require a lot of computation. Thus the retrieve the public key needed to encrypt data.

number of Bitcoins being generated is The fourth step is file search. The ransomware relatively steady but low, similar to mining process searches for files on the system in a gold. These characteristics make Bitcoin very systematic fashion. It typically looks for files that are attractive to ransomware developers as a important to the user and cannot be easily replicated, payment method for their schemes. such as files with extensions of jpg, docx, xlsx, pptx,

and pdf.

HOW RANSOMWARE WORKS The fifth step is encryption. This is typically done

through moving and renaming the targeted files, There are six steps that ransomware generally uses to then encrypting and renaming the files after a accomplish its goals.successful encryption.

The first step is distribution: Ransomware uses The sixth and final step is the ransom demand, standard methods of distribution. Generally it is typically through taking over the screen of the spread through phishing schemes involving email infected endpoint and demanding payment.attachments or downloads and installs on an

endpoint through website compromises. The old At this point, the user typically has no choice but to

ways are still the best ways. pay the ransom and hope for the delivery of a usable

key to unlock the files, or pursue other remediation

strategies such as an image restoration of the

endpoint using a known-good snapshot.

WANNACRY

RansomWare like WannaCry works by encrypting

most or even all of the files on a user's computer.

Then, the software demands that a ransom be paid in

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order to have the files decrypted. In the case of network from ransomware attack is to keep

WannaCry specifically, the software demands that ransomware from reaching the endpoint in the

the victim pays a ransom of $300 in bitcoins at the first place. Consider a web-filtering

time of infection. If the user doesn't pay the ransom technology.

within three days, the amount doubles to $600. After * Apply all current operating system and seven days without payment, WannaCry will delete application patches: Many ransomware all of the encrypted files and all data will be lost. strategies take advantage of vulnerabilities in

the operating system or in applications to

infect an endpoint. Having the latest operating MOBILE RANSOMWAREsystem and application versions and patches

With the increased popularity of ransomware on PC will reduce the attack surface to a minimum.

platforms, ransomware targeting mobile operating * Spam filtering and web gateway filtering: systems have also proliferated. Typically, mobile

Spam filtering and web gateway filtering are ransomware payloads are blockers, as there is little great ways to stop ransomware that tries to incentive to encrypt data since it can be easily reach the endpoint through malicious IPs, restored via online synchronization. Mobile URLs, and email spam.ransomware typically targets the Android platform,

as it allows applications to be installed from third-

party sources. The payload is typically distributed as The infection stage:an APK (ANDROID PACKAGE KIT) file installed

* Don't turn on macros unless you know by an unsuspecting user; it may attempt to display a

what's happening: In general, do not enable blocking message over top of all other applications,

macros in documents received via email. while another used a form of clickjacking to cause

Notice that Microsoft Office turns off the user to give it device administrator privileges to

autoexecution of macros for Office documents achieve deeper access to the system.

by default. Office macros are a popular way Different tactics have been used on iOS devices, for ransomware to infect your machine, so if a such as exploiting iCloud accounts and using the document asks you to enable macros, don't do Find My Phone system to lock access to the device. it.

* Make yourself "weaker" when working:

R A N S O M W A R E R E M I D I A T I O N Don't give yourself more login power than you

STRATEGIES need. If you allow yourself administrator

rights during normal usage, consider Let's take a brief look at a number of ransomware restricting this. Surfing the web, opening remedies.applications and documents, and generally

doing a lot of work while logged in with The distribution stage: administrative rights is very dangerous.

* Build a "human firewall": The biggest If you get hit with malware while you have threat is users who let the ransomware on their fewer rights, you will reduce your risk because endpoints. People are the weakest link. malware will also execute with fewer rights,

which will reduce the threat's attack surface.* Stop ransomware before the endpoint: The

most-proactive method of protecting a

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The communications stage: local drive and run the backup utility against

that.* Firewall rules can block known malicious

domains: Writing rules to block malicious * Limit shared file activities: Many

domains is a standard capability of network ransomware variants will look for access to

firewalls. files on storage other than the boot volume-

such as file servers, additional volumes, etc.-* Block access to Tor: Tor is an anonymous and will encrypt everything they can find to Internet communication system based on a inflict maximum damage. Consider limiting distributed network. Tor is a toolset for operations allowed on shared volumes.organizations and people who want to

improve their safety and security on the

Internet. Tor is also used by ransomware to The ransom demand stage:obfuscate control of server communications.

* Restore from backup, keep a recent backup For organizations that do not need access to

offsite and "air gapped": Store a set of Tor (and other anonymous Internet

multiple, complete backups and assume an communication systems) administrators

attack. An "air-gapped" backup is not should consider blocking access to these

connected to the computer or the network unneeded networks.

anywhere. For an individual this could mean Current ransomware will stop if it can't back up to an external hard drive. When the establish control, so blocking Tor will cause backup is done, unplug the drive and keep it in ransomware that uses Tor to stop itself at the a drawer, away from any computers. That way communications stage. ransomware cannot detect the backup and

* Proxy/gateway scanner signatures for damage it.

known traffic: For those with proxy and

gateway appliances, these technologies can be WAY AHEAD

configured to scan for known ransomware It is never easy to predict what way the ransomware control server traffic and block it. Most landscape will evolve in the future. We can look at ransomware cannot continue operations if it the patterns of the past and try to speculate about cannot retrieve the public encryption key what might happen in the future. The ransomware needed for asymmetric encryption.concept has reached a high level of maturity now.

The encryption stage:This is evident from the number of players in the

* Backup and restore files locally: By creating space as well as the number and variety of variants a storage volume and running archival file that we see appearing. The emergence of RaaS backups to that storage volume, remediation is (Ransomware as a servece) implementations is as easy as removing the ransomware, going another possible indicator that the crypto back in time with the backup to a point before ransomware idea is close to maturity and market the ransomware affected the files, and saturation. This does not mean that it will go away. restoring all the affected files. This can be Instead it is likely that crypto ransomware may enter done today by network administrators who a decay phase within two years but the decay phase could both use external storage volumes with a will be drawn out and never reach zero. The decline good archival backup utility or partition a may come about as a result of various factors such as

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increasing crackdown by law enforcement, better

protection technology against crypto ransomware,

increased awareness of these attacks, refusal of

victims to pay, changes in international law and

financial regulations.

Cybercriminals may even find a better alternative to

generate illicit income. What cybercriminals will

focus on after crypto ransomware is uncertain, but

they have proven themselves to be resourceful and

will find another option to fill the void.

References

* Understanding Ransomware and Strategies to

Defeat it(White Paper) by McAfee Labs

* WikipediaAuthor is Sangita Nayak

Senior Faculty, ZTC Kolkata

20

The Elephant Rope

As a man was passing the elephants, he suddenly

stopped, confused by the fact that these huge

creatures were being held by only a small rope tied to

their front leg. No chains, no cages. It was obvious

that the elephants could, at anytime, break away from

their bonds but for some reason, they did not.

He saw a trainer nearby and asked why these animals

just stood there and made no attempt to get away.

"Well," trainer said, "when they are very young and

much smaller we use the same size rope to tie them

and, at that age, it's enough to hold them. As they

grow up, they are conditioned to believe they cannot

break away. They believe the rope can still hold

them, so they never try to break free."

The man was amazed. These animals could at any time break free from their bonds but because they

believed they couldn't, they were stuck right where they were.

Like the elephants, how many of us go through life hanging onto a belief that we cannot do something,

simply because we failed at it once before?

Failure is part of learning; we should never give up the struggle in life.

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In today's scenario when unique individual identification number.

business is getting more and By using Aadhar KYC processing was improved more competitive and market and now it has become E-KYC i.e. Electronic KYC existence is subjected to daily which gets rid of physical dependency of add-on to our business. Adding identification and address proofs. With Aadhar clients is important for Number, KYC processing becomes a minute of task. existence of the business; their We just place finger on scanner and it fetches identification is very new for identification as well as address details from UIDAI business. To prevent business database. E-KYC is not only easy but also a cost

from being used intentionally or unintentionally by efficient. It obsolete paper uses in KYC processing. malicious instinct for money laundering activities, This transformation is valuable for every industry to KYC plays a vital role. So Reserve Bank of India which Indian resident directly attached as a came up with the KYC guidelines in 2002 for customer for example banking, telecom and many banking industry which became essential to follow more.by non-banking companies to their customers.

It is not convenient for customer to do KYC all the KYC which is termed as KNOW YOUR time when he or she wants to avail services for the CUSTOMER is process of verifying the identity of same industry. To resolve this problem government clients as well as their source of income. Its key came up with the idea of C-KYC i.e. Centralized - elements are identification and address details. KYC KYC repository. This concept becomes very much is important for every entity that is able to make popular in Asset Management Companies to process contract either individual or non-individuals entity their investor's KYC. Once investor KYC is enrolled i.e. company, trust or partnership firm. In case of to any asset management companies' registrar and non-individuals KYC processing for all individuals wants to invest further then there is no need to do it who are engaged as major owners of business must again.fulfil their individual KYC processing obligation.

Finally, banks in recent times have embraced IT and Earlier KYC was done manually. Customer used to systems to an extent that were not the case before visit the branch with original as well as photocopies and therefore, proper KYC norms complement and of their identification and address proof to process supplement the IT systems that the bank have and his KYC. Physical KYC verification was a tough ensure compliance with the rules. In conclusion, it is task because large numbers of fake and duplicate clear more than ever that banks have to clean up their identities were there. That time Unique act and the regulators cannot overlook the Identification Authority of India came up with an transgression anymore. This is the reason why well idea to issue unique identification numbers named maintained KYC norms help all stakeholders.as Aadhar Number, to all residents of India. One of

the great features in Aadhar, it takes scanned bio-

metric finger prints and iris scanning which are

unique for every individual. And by combining these

unique keys, Aadhar Number became most secured,

Author is Himanshu Yadava, a student of th

ADBT 11 Batch at PNBIIT Lucknow

TRANSFORMATION OF KYC TO C-KYC

-Himanshu Yadava

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After a decade, India will important Role In Curbing Inflation .Food grains will

finally implement the Goods be zero-rated to insulate people from inflationary

and Service tax from July 1 pressures.

2017, the GST will help 5% In this Category Tax will be 5 Percent .Most of the remove tax barriers between items in this category is Mass Consumed like Mustard states, creating a single Oil, Spices Etc.market. The roll-out will

12% There will be 12 Percent Tax In this Category. replace a plethora of cascading central, state,

Items -Processed goodsinterstate and local taxes with a single,

18% There Will 18 Percent Tax In this Slab .Items -nationwide, value-added tax on goods and

Smartphones, Mobiles, Toothpastes, Computer, services.

Tablets etc.GST is one indirect tax for the whole nation,

28% Most white goods, like washing machines, air which will make India one unified common

conditioners, refrigerators, shampoo, shaving stuff market. GST is a single tax on the supply of goods

and soap, will be taxed at 28 percent (with riders).The and services.

current levy varies between nil tax to 30-31 percent.The GST Council has finalized a four-tier GST tax

28 % Plus Cess Tax between 40 percent and 65 structure of 5 per cent, 12 per cent, 18 per cent and

percent will be imposed on luxury goods like high-end 28 per cent, with lower rates for essential items

cars, pan masala, aerated drinks and tobacco products. and the highest for luxury and de-merits goods,

In this Category Tax will be high. including luxury cars, SUVs and tobacco

There are three components of GST:products, that would also attract an additional

cess. The cess is expected to provide additional 1. Central GST (CGST) - It will be Levied by

resources to the central government to centre.

compensate states for losses incurred. This will be 2. State GST (SGST) - It will be levied by state.

based on the compensation formula.3. Integrated GST (IGST) - It will be levied by

Central Government on Interstate supply of

Slabs Details Good and Services

0% There will be 0 % Tax on More than 50

Percent Consumer Price Basket Including Food

Grains. Government of India tried to Keep Food

grains items out of GST Slabs .This will play an

Author is Anurag Dixit, a student of ADBT 11th Batch at PNBIIT

Lucknow

-Anurag Dixit

GST (GOODS AND SERVICES TAX): AT A GLANCE

(One Country: One Tax: One Market)

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"DIGITIZATION OF DOCUMENT RELATED FINANCIAL TRANSACTIONS"

"The challenge for Banks isn't becoming "digital"- Banking scenario dates back to

it's providing value that is perceived to be in line with 1990's-the post-reform period.

cost-or better yet, providing value that consumers With the adoption of financial

are comfortable paying for." sector reforms as suggested by

Narasimham Committee, the -Ron Shevlin, Director Cornerstone Advisors (Retail banking sector has undergone Banking),majo r change . Fu r the r, Author of Bestseller-Smarter Bankenactment of Information

Technology Act, 2000 provided legal recognition to Introduction

transactions occurring over electronic media and Change is only constant in universe. Banking is a

other forms of E-commerce. Digital banking is an fast changing industry with newer trends and

extension of conventional banking system which challenges. Banking in lndia has a long history and it

uses an electronic delivery channel for exchange of has evolved over the years passing through various

banking products and services. It began with phases of nationalization, liberalization and

computerization of a few core functions and globalization. As per KPMG-CII 2016 report, India's

departments in principal branches and progressed banking sector is expanding rapidly and has the

towards achieving 100% branch automation. potential to become the fifth largest banking industry

Present era is digital era. Banks are able to deliver a in the world by 2020 and third largest by 2025. With

better customer service with the help of various world population of above 7.3 billion and Indian

technology initiatives taken so far with concept of population crossing 1.3 billion digitization for

anywhere and anytime. Digitization in banking is the survival and sustenance has become inevitable.

only alternative going into future. The total Emergence of Universal Banking Systems, mergers

automation of banking operations is a necessity for and acquisitions, integration of financial services,

all banks to attract more customers, provide efficient wallets, payments systems etc led by globalization,

and quality services, and survive in the emerging economic growth Policy initiatives by governments

new competition. It plays a critical role in the and Usage of technology are some of the factors

performance of core functions of the banks promoting growth of Indian banking sector.

increasing self sufficiency of customers. Digitization is representation of object, image,

Banks have been able to deliver better customer sound, document or signal by generating series of

service through various technology initiatives numbers that describe a discrete set of its points or

resulting in digitization of document related samples. Simply put, it is conversion of data into

financial transactions such as:-digital format in form of binary numbers. It is crucial

* Internet banking, Mobile Banking/ for data processing, storage and transmission with

Telebanking has resulted in significant decline efficiency and accuracy.

in use of documents and frequent branch visits

by customer. Emergence of Digitalization

* Advent of ATM and Plastic money, Electronic The arrival of computerized technology in Indian

-Amit Sharma

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Cheque Conversion. digitally, grows rapidly, consumers are more and

more concerned about security and privacy issues. * Electronic Fund Transfer at Point of Sale, The banking industry has declared information NEFT, RTGS, Smart Cards. privacy and security to be major obstacles. * Payment through mobile via wallet and Continuous vigilance and revisions will be essential recently introduced UPI. as the scope of technology on banking increases.

* E-ticketing and other online payments. Digitization has induced fear of loss of jobs due to

* Demat accounts had converted huge volumes automation of operations but this loss would be of financial documents and transactions on compensated by creation of new jobs in cyber click of mouse. security and research. These challenges are

* Most of the Banks are processing deposit and inevitable so utmost care must be taken in handling loan accounts online with backend data technology since its negative effects would result in processing of documents. financial and reputational loss to banks.

* Account statement, cheque book request, debit Digitization and Customer experience: The card requests, wealth management can be Silver Lining processed online.

Many benefits are enjoyed by customers through * Bank customers had access the services digitization of banking services. There is more through a friendly business correspondent accessibility of one's account with better funds available for routine-banking needs without management. Cost of doing business with and visiting a branch. through the banks is reduced. Customers can do "Every cloud has silver lining." Digitization of business with the banks from the comfort and documents and financial transactions was received convenience. It has reduced the number of times one very well by gen x customers and those who were had to visit the bank in a month as well as the time optimistic about the change. Banking Industry as a one would have to spend in the banking hall on each whole has to be more proactive to get the desired visit. There is speedy processing of requests, orders, results quickly with customer satisfaction. etc Digital Banking was introduced as a customer

Convenience tool acts as cost cutting tool for Bank Digitization and Customer experience: The

and resulted in fast movement from 'brick and Clouds

mortar' banking to virtual. There has been reduction Customers also encountered various challenges: in frauds; it has made it easier for investors to acquire * Lack of privacy to personal information. information, thereby making it easier for firms to

issue securities and have resulted in many new * Limited Knowledge in using new facilities.

financial products and services. Introduction of new * Amount based Limit restrictions in various product, reputation building and value creation for payment systems. customers are other benefits.

* Internet connectivity problems & regular Digital banking has been discovered to be the main break down of facilities. driving force of competition in the banking industry

* Challenges posed by internet fraud. with adoption of new innovations. In addition to

These challenges probably depend on level of tangible and measurable benefits brought by IT on

education and willingness to use these services. As banking services, the more intangible ones are

the amount of products and services offered competitive advantage, customer retention and

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attraction. The mentioned benefits will eventually bankers as well as users.

increase revenues and reduced costs. On average e- Use of technology will rise more significantly with bank customers are more profitable, maintain larger awareness spreading fast among customers. NGOs, balances, use more bank products, and are faster in Government can also help in the spread of financial adopting new products and services. It is easier for literacy to carry the message about use of digital customers to compare banks' services and products. banking system. In recent process of demonetization Personal touch and relationship management in government promoted DigiDhan. The potential of banks in lndia continues to hold significance despite IT in extending banking services to underserved the massive automation of banking services markets in rural and semi-urban areas is enormous.

lndia is experiencing an explosion in the use of Brief Case study: DigiBank mobile communication technology. And this is a

Recent entry and success of DigiBank in India development that the financial sector will use more

strengthens this view. Development bank of as mobile phone users belong to all strata of society,

Singapore entered Indian Market but its effort for spread across metropolitan centres, towns and

expansion was put to halt by Government policy as villages.

reciprocation to Comprehensive Economic Banking is a customer centric industry. It calls for Cooperation Agreement (CECA). To overcome this rapid changes which may facilitate faster and DBS launched DigiBank, a completely digital Bank efficient customer services. Digitization is the only working on Artificial Intelligence. Accounts can be answer to fulfill this demand/need of the customers. opened online and for AML KYC details documents It can be concluded that, for banks to remain can be submitted with biometric authentication at competitive to deliver quality services to customers, any Café Coffee day outlets. It offers interest rate of there is considerable need to be innovative by 7% on savings. Bank claims of getting E-wallet in 90 adopting IT innovations. In general, use of IT is seconds. Bank has won Global Finance's "Safest comparatively better than the manual system of Bank in Asia" accolades from 2009-2015 banking with handling of voluminous transactions consecutively. DBS has 49% market share of online with just a click of mouse and mobile channel users in Singapore. In India

Bank customers can look forward to more exciting, bank is targeting for 5 billion accounts in next 2-3

innovative and technology-based products. Banking years.

industry has to imbibe each and every innovation

(technology) which can improve/provide better Digitization: What lies ahead….

customer services. We can assure the right blend of India is well positioned to become the third-largest both personal relationship and computer driven economy in the world by 2025 with a GDP growth services. rate of 7 -8 % a year. This robust economic growth

"In this digital age, we have an opportunity to would be possible if the banking sector is able to

transform lives of people in ways that was hard to adequately and efficiently meet the needs of a

imagine a couple of decades ago" - Narendra growing economy. The future of banks rests on the

Modi, PM (Addressing Heads of Tech Giants at development of virtual banking facilities creating

Silicon Valley in San Jose) new business models on improved delivery channels

Manual operations will soon become history with

customers enjoying the electronic banking in a big

way. The future of banks will belong to tech-savvy

Author is Amit Sharma Dy. Manager, Retail Banking Division, HO

Punjab National Bank

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Infosys, country's second payment services hub to future-proof banks'

largest software services payments business

exporter, launched a new * Multichannel framework- Enables customers to

version of its banking navigate seamlessly across multiple channels

solution Finacle, aimed at without losing the transaction context

making deeper inroads into

the international markets. * Offers and catalog-Empowers banks to publish

instant offers across channels. Graphical "With Finten, they have

product simulators, comparators and customers taken a component approach to help banks of all

reviews offer users a 'do -it-yourself' sizes to rapidly modernise their operation in a

conveniencephased manner, while minimising the risks. It will

enhance banks' efficiency and improve customer * Liquidity management- front-to-back office

experience across all channels," solution for banks' corporate customers to

identify, manage and optimize their liquidityIt is core banking product developed by Indian

corporation Infosys that provides universal * Loan origination-Helps bank manage the

banking functionality to banks. The offering is complete credit lifecycle across retail and

futuristic and resonates strongly with the commercial loans to attain superior credit

impending trends in the banking space globally. quality

This new solution is a key to Finacle's growth * Dashboards-configurable role-based console

globally. Factors like macroeconomic uncertainty, delivers an intuitive user experience that

regulatory upheaval and changing customer improves productivity and frees up time for

preferences are leading banks to transform their right-sell discussions

business rapidly. Finten will allow banks to take

transformation projects in bite size pieces, Reference -https://www.infosys.com/Finacle10/

increasing agility, minimising customer solutions,the Hindu

disruption and reducing risk.

With new release, Finacle has added six new

enterprise components:

* Payments-An ISO 20022 based advanced

-Aayushi Lal

INFOSYS LAUNCHES NEW VERSION OF FINACLE

26

Author is Aayushi Lal a student of ADBT 11th Batch at

PNBIIT Lucknow

Everyone Has a Story in LifeA 24 year old boy seeing out from the train's window shouted…"Dad, look the trees are going behind!"Dad smiled and a young couple sitting nearby, looked at the 24 year old's childish behavior with pity, suddenly he again exclaimed…"Dad, look the clouds are running with us!"The couple couldn't resist and said to the old man…"Why don't you take your son to a good doctor?" The old man smiled and said…"I did and we are just coming from the hospital, my son was blind from birth, he just got his eyes today."Every single person on the planet has a story. Don't judge people before you truly know them. The truth might surprise you.

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BITCOINS: MOST VALUABLE AND HIDDEN CURRENCY

Bank play a pivotal role in They are now exchanged for other currency,

peer to peer transaction but products and services in legal or black markets.

do we always need a third According to the Cambridge University in 2017

party for our transaction. there are about 2.9-5.8 million unique users of

Surprisingly the answer is no bitcoin wallet. They are mostly used in the form of

and the answer is bitcoin. What remittances. Now you can buy mobile, cars , coffee

is a bitcoin ? If internet was a etc using bitcoin.

country then bitcoin would have been the currency Bitcoin is a decentralised currency not affected by of that country. Bitcoin is a digitalised decentralised hacking or piracy; it is a robust and new generation crypto digital currency. It is the most valuable currency. At beginning in mining every block use to currency of the world. Today one bitcoin equals to produce 50 bitcoins now it has been reduced to 12.5 45k RS. Bitcoin came into existence in 2009 by an per block. At every four year per block the bitcoin unknown programmer. reduced by half. 125 years from now no new bitcoin

Now the question arises how this economy work. As would be produced in the market. As per the

it is crypto currency so transaction is peer to peer elasticity of demand the rate of the coins would keep

type and only few codes appear in the bitcoin wallet. on increasing. Should we switch to this currency or it

These transactions are verified by network nodes will continue as parallel digital economy? ONLY

and recorded in public in a public ledger called as FUTURE HAS THE ANSWERS.

block chain. These block chain are maintained by

very sophisticated coders. They are rewarded with

some bitcoins as a payment.

The craze of this currency is increasing day by day.

REFERECES :WIKIPEDIA

Author is Aparna Kumari Gupta, a student of ADBT 11th Batch

at PNBIIT Lucknow

-Aparna Kumari Gupta

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BANKING AND TECHNICAL NEWS Compiled by Sweety Dube, PA to Director

Comptroller of Examination at PU, said, "After the

digitalisation of documents, the university will

become the first varsity to ease and make the work

transparent as students will not have to wait for long

hours to get their degrees as they can access them Banking blues: Gen Y increasingly opting for

online."fintech services in India, China

China and India distinguished themselves by having DNA, Digitisation to drive future of insurance

the highest percentages (55-60 per cent) of Gen Y industry

and tech-savvy customers using financial services The first step for the insurance industry was to from non-traditional firms, according to a report put improve search on the internet and to provide together by Capgemini and European Financial offerings that could be easily understood, played Management Association. The World Retail around with, and ultimately purchased online. Banking Report 2017 observed that as the Digitisation has emerged as the most efficient way to governments of both countries continue to prioritise reach out to target customers. This applies for selling digital initiatives, the segment of tech-savvy an insurance policy as well, which has traditionally individuals will become increasingly important to been known as a 'push' product.banks.India Infoline, Digital media can help push formal

lending in under-penetrated markets: The focus on The ICC Banking Commission has launched

digitization of the financial system as well as India's a working group to coordinate all work relating to

growing mobile phone usage universe offers a the digitalisation of trade finance. The group aims to

unique opportunity to tap into phone and other help the trade finance industry accelerate its

utility payments data base for giving out loans and progress towards greater digitalisation. The trade

determining credit-worthiness. For a large and finance industry is undergoing a massive

diverse country such as India, it is critical to provide transformation - from time-consuming and

formal financial access to push consumer spending cumbersome manual processes involving paper-

and investment. The Indian consumers are based instruments such as Letters of Credit to an

increasingly adopting digital as a way of daily life. automated and digitised future.

In India there were 220 million (18% of the

population) smartphone users in 2016. This is an

estimated to rise 340 million (28%) in 2017. There

Punjab University to issue digital degrees from are about 150 million feature phone users who are

2017-18 Session eligible for an upgrade to a smartphone. Social-

media friendly smart phones, which bring the Talking about the project, Parvinder Singh,

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browsing power of the Net to your palmtop, can be This year, the Narendra Modi Government launched

bought for as low as Rs 5,000.The relationship various e-portals to assist citizens under its 'Digital

between this rapid rise in the mobile phone sales and India Programme' initiative. The government's

use is too obvious for anybody to miss. campaign to promote cashless transactions

generated a positive response among Indians,

encouraging them to participate in the country's India Is Predominantly Ready For digital transformation drive.IT minister Ravi Digital Classrooms, TCS ION Global Head Shankar Prasad said the digital economy would Ramaswamytouch $1 trillion in the next five years against $280

Several parts of the country are now connected with billion currently. He added that digital services and

fibre network making India prominently ready for offerings would get a major push in the next few

digital classrooms, says TCS iOn Global Head years with the major focus on start-ups, new-age IT

Venguswamy Ramaswamy.solutions, financial technologies and cyber security.

Now Students Can Pursue Education Abroad

Easily, Government of India launches eSanad for

online attestation of education certificates

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Binding : Hardcover pleasant manner - aiming for lucidity, and keeping the unnecessary jargon aside. The lucidity of the Publisher : HarperCollins Indialanguage will encourage them to embrace principles

ISBN : 9789350294314, 9350294311of finance promptly which is a must for running any

Edition : 2016 business successfully.Pages : 264 So it is important to be smarter at managing finance, Price : Rs. 750.00 whether you are the owner of a large conglomerate

or a small trader, an executive or a student. This is an excellent guide for aspiring businessmen,

Romancing The Balance Sheet written by Dr Anil entrepreneurs, traders and managers of various

Lamba (a practicing chartered accountant, best businesses, who need to maintain flawless balance

selling author, financial literacy activist and sheet for profit and loss statements. It also serves as

i n t e r n a t i o n a l c o r p o r a t e t r a i n e r ) , i s a an extensive resource for those who are newly

comprehensively- written guide on the essentials of getting acquainted with balance sheets. A must read

finance management, for every reader who wishes for anyone who thinks of himself as a "non-finance"

to take control of his/her finances. person and wants conceptual clarity on financial

This book Romancing The Balance Sheet deals with theories.various aspects of finance management - a subject often avoided by most people, usually out of apprehension or misconception. Aimed at people from all walks of life-be it entrepreneur, executive, or student-the book teaches every reader to keep track of the flow of money in and out of his/her life or organization. The book is divided into six sections, comprising a total of 15 chapters. The first section is dedicated to the basics of finance management, and begins by debunking the myth of the non-finance person. It covers the must-have financial statements for every organization, the concept of profit and how it is influenced by inventory, and an in-depth look at the balance sheet. The second unit presents concepts like the principles of good financial management, reading a balance sheet, and net working capital. The third unit is dedicated to concepts like marginal costing principles, break-even analysis, and leverage analysis. The next unit "Romancing the numbers", deals with funds-flow analysis. The last couple of units cover financials intelligent organisation and financial literacy for everybody. The author asserts that the subject of finance need not be as daunting or as complex as it is made out to be. He seeks to prove his point by approaching the subject in a simple,

BOOK REVIEW

Romancing The Balance SheetBy Dr Anil Lamba

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April-June 2017

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