What are the Application Of information technology in banking industry in Nepal ?

 What are the Application Of information technology in banking industry in Nepal ?

Major applications. The advantages accruing from computerization are three-directional 

- to the customer, to the bank and to the employee.

For the customer. Banks are aware of customer's need for new services and plan to 

make them available. IT has increased the level of competition and forced them to 

integrate the new technologies in order to satisfy their customers. They have already 

developed and implemented a certain number of solutions among them:

 Self-inquiry facility: Facility for logging into specified self-inquiry terminals at the branch to

inquire and view the transactions in the account.

 Remote banking: Remote terminals at the customer site connected to the respective 

branch through a modem, enabling the customer to make inquiries regarding his accounts,

on-line, without having to move from his office.

 Anytime banking- Anywhere banking: Installation of ATMs which offer non-stop cash 

withdrawal, remittances and inquiry facilities. Networking of computerized branches inter￾city and intra-city, will permit customers of these branches, when interconnected, to 

transact from any of these branches.

 Tele banking: A 24-hour service through which inquiries regarding balances and 

transactions in the account can be made over the phone.

 Electronic Banking: This enables the bank to provide corporate or high value customers 

with a Graphical User Interface (GUI) software on a PC, to inquire about their financial 

transactions and accounts, cash transfers, cheque book issue and inquiry on rates without 

visiting the bank. Moreover, LC text and details on bills can be sent by the customer, and 

the bank can download the same. The technology used to provide this service is called 

electronic data interchange (EDI). It is used to transmit business transactions in computer￾readable form between organizations and individuals in a standard format.

 As information is centralized and updates are available simultaneously at all places, single￾window service becomes possible, leading to effective reduction in waiting time.

For the bank. 

During the last decade, banks applied IT to a wide range of back and front office 

tasks in addition to a great number of new products. The major advantages for the bank 

to implement IT are:

 Availability of a wide range of inquiry facilities, assisting the bank in business development 

and follow-up.

 Immediate replies to customer queries without reference to ledger-keeper as terminals are

provided to Managers and Chief Managers.

 Automatic and prompt carrying out of standing instructions on due date and generation of 

reports.

 Generation of various MIS reports and periodical returns on due dates.

 Fast and up-to-date information transfer enabling speedier decisions, by interconnecting 

computerized branches and controlling offices.

For the employees.

 IT has increased their productivity through the followings:

 Accurate computing of cumbersome and time-consuming jobs such as balancing and 

interest calculations on due dates.

 Automatic printing of covering schedules, deposit receipts, pass book / pass sheet, freeing 

the staff from performing these time-consuming jobs, and enabling them to give more 

attention to the needs of the customer.

 Signature retrieval facility, assisting in verification of transactions, sitting at their own 

terminal.

Avoidance of duplication of entries due to existence of single-point data entry.

Define Hardware and Software.

 Hardware is the Physical parts of the computer, which can be seen and touched. It is

just the mechanical parts of the computer. All the devices attached to the Computer 

system like Mouse, Keyboard, Monitor, CPU, Motherboard, Hard Disk etc are Hardware. It 

includes all the components used to make the computer. It also includes all the cables, 

Connectors and computer peripherals. Hardware can be see, touch, have shape and 

tangible in nature

 Software: Software are also called logical components logical components are such kinds 

of components of a computer system which are logically available, logical behavior and 

intangible in nature.

 Or

 The set of programs. Booting, procedure and associate documentation related to the

effective operation of a computer system are termed as software .A computer is just a 

machine that processes information stored in the form of numbers. A computer store data 

and long series of instructions which command the computer what operation is to be 

performed from the data. Such series of instruction is called computer program. Computer 

programs are collectively known as software.

 A software package is a group of programs that solve a specific problem or perform 

specific type of job . For example, a word processing package may contain programs for 

text editing, text formatting, drawing graphics, spelling checking etc. Hence multipurpose 

computer system like a personal computer in your home has several packages, one each 

for every type of job it can perform.