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What is Core Banking?

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Core Banking

Core Banking has been tagged as a new generation banking solution. It has enabled the bank to provide almost all services among their networked bank branches. Through Core Banking a customer can access his/her account and can perform the basic transaction through any of the network bank branch. Now, Banking has become convenient and inter connected to the best advantage of the customers.

In layman’s language Core Banking can simply be understood as centralization of the banking activities. Unlike yesterdays when customers could perform the basic banking activities like withdrawal, deposits and so on, only through the base branch; through Core Banking the customers can now perform all these activities from any of the networked branch.

This facility is considered as the business with the retail customers. Banks have a separate business line to manage these customers. Core banking has the basic function of lending and depositing money. Large businesses activities are managed through Corporate Banking division.

Basic Functions of Core Banking

Usual CoreBanking functions involve opening bank accounts, managing cash withdrawals and deposits, interest calculation, processing cheques and payments, maintaining records of transactions, and so on. These functions can differ according to the type of bank. Several banks have made available Core Banking facilities through internet banking also.

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Parul Mahajan is a Post Graduate in Gender Studies from Ambedkar University, Delhi and also holds a Bachelor of Arts degree in English Literature from Daulat Ram College, Delhi University. She is the author of ““Warring Over Religion and Feminism”, a Masters level Dissertation. Parul has also interned with Vimochana, a Bangalore based women’s organization working on various women’s issues.

3 COMMENTS

  1. A chain of banks can do all wonders but we can’t even imagine what would be the scenario if all these branches were not linked together in terms of deposits and withdrawals.It would lead to utter chaos.But there comes Core banking- the thing which has made it extremely simple even for a newbie to get along with banking and customs.Kudos to the writer for such comprehensible use of English!

  2. This is a good explanation of what core banking is. I had heard the term quite a few times in the past but was not very sure about what it was. This was a good read to gain some insight into banking, especially for a newbie. I performed so many core banking activities till now and did not know the term associated with that. This article was helpful in offering that information.

  3. Core banking has been rightly called the new age solution to banking problem. Gone are the days when the basic banking activities could be performed only at a specified branch. With banks being opened at remote villages their facilitied can be enjoyed like transferring of funds from the city and vice versa.

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