Month: November 2018

TANNAN’S BANKING LAW AND PRACTICE IN INDIA

TANNAN’S BANKING LAW AND PRACTICE IN INDIA- is a classic legal Treatise and most comprehensive, authentic, authoritative, widely acclaimed,appreciated, recognised and recommended masterwork on the Banking Law and Practice in India since decades, to be precise since 84 years of thefirst edition of this most prestigious book in 1926.

TANNAN’S BANKING is undoubtedly one of the best in the Banking Law field. Every edition of this book has sold like proverbial hot cakes, pointingclearly to its scholastic wealth on the subject, its deft handling by the authors its usefulness, utility and eventually the popularity of the book in the field.

TANNAN’S BANKING in its every edition is eagerly awaited and widely welcomed by the people in the Banking Law field. Present edition is nowreleased with the pride and glory of the previous editions. It is a unique and authentic publication of its kind, authored by a renowned personality, having tremendous knowledge and authority over the subject. New edition is completely revised and updated. The present Revised and Enlarged edition contains 76 Chapters covering entire spectrum of Banking Law and Practice. It contains most upto-date Statute Laws, Case Laws and RBI Master Circulars, Guidelines and Directions and other related matters annotated under appropriate discussions.

TANNAN’S BANKING has always been prescribed and recommended by Indian Institute of Banking and Finance (IIBF), Promotion Tests, Internal andother Exams and is cited and quoted by Hon’ble Supreme Court, High Courts and Tribunals in various judgments.

This most authoritative Treatise is an indispensable guide and reference work for the Banks and Financial Institutions (FIs), Legal Officers, BankingExperts, Branch Managers, Bankers for Promotion Tests, Internal exams, exams conducted by the Indian Institute of Banking and Finance (IIBS), other Universities and Management Institutes, Staff Training Colleges, Law Colleges, Commerce Colleges, Professors of Banking, Academicians, Chartered Accountants, Practitioners, Advocates, Lawyers, Hon’ble Courts, Judges, Bench and the Bar.

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Things To Be Aware About Regarding Mobile Banking

When we think of cell phones and smart phones, we think of small computer devices. They function and behave as if they are smaller computers. That is how far technology has reached to make lives of people a lot easier. In lieu with this magnificent innovation, nowadays, banking seems to be very convenient for individuals. It seems too convenient, allowing people to use their mobile phones to make quick checks in to their accounts, pay bills or just send funds. The world now embraces a new form of banking, as if online banking is not enough.

Mobile banking is a great tool. It is convenient, fast, easy and accessible. Here are some things that you might want to consider if you wish to do banking through your mobile phone.

The issue of security
There is a general consensus between banking experts that mobile banking, to some extent, is safer compared with online banking. This is true when considering the amount of security risks and malware that could infect the mobile phone. However, that is just one aspect of security and baking using your phone has other security issues. If there is computer phishing, then there is mobile smishing. This is when the person receives a fake message via SMS asking for account details. The hacker poses as a reputable bank or financing company. Do not feel like you are immune to such seemingly obvious scams. A lot of people have lost money from such tricks.

Phone being stolen.

If you lost your phone or it was taken from you by a robber, even if passwords are necessary, when it comes to mobile banking, most users tend to apply easy to break passwords so that banking can be easy. With such ease in technological use, the account holders must always use stronger passwords because this is the only tough thing that you can do so that no sneaky individual can guess your banking details.

Compatibility
Most banks only have their mobile services offered to those clients with smart phones. These are specially made applications that can be used to make the most out of your mobile use. Those old, outdated phones are not supported and sometimes, even if banks allow, they are only limited for account balance checking only.

There are additional fees when doing your transactions via SMS. Compared to online options, they are virtually pricey because you have to pay for every text message that you send to handle banking. In some cases, those that use specialized software will have to ask for a fee.

Way To Succeed In Banking Profession

There is always a demand for the banking job or investment-banking job. The reason is that investment banking is the most money making job. However, it takes time plus dedication to succeed. You must start with the entry-level job in banks.

Outline of the banking job positions:

Investment banking job is not the only banking position and there are various types in banking jobs. A bank teller occupies 67% of the banking positions. Understanding the job responsibility is the first step to succeed. Other job positions in the banks are:

Bank manager: The manager is the main person who operates the entire working of the bank. You as a manager must supervise the banks daily operations and must find out whether the employees are working as scheduled.

Financial advisors: As a financial advisor, you must recommend and give suggestions to the clients. This job is so important bearing great responsibility.

Accountants: If you have a good skill in accounts and if you are well qualified, you can go for this position. This job position is very important because the work performed by an accountant or by a group of accountants will be showed to the tax authorities, investors etc to fix the financial status of the bank.

Tips for success in banking job:

Banking career is one of the most anticipating fields. To succeed in this sector you must remember few factors as indicated below:

Keep exploring:
You must always be aware of the latest happenings in the business world. If you are aware of it then you will be able to increase revenue for your clients and bank. You are responsible to make sure that your customers are making a smart investment.

Fixing the fees:
As you are an investment banker, you must do some enquiry before deciding your fee. You must be sure that you get a good amount when compared with what you have invested in first place.

Networking in banks:
Like other fields, banking career also has become linked with networking. To recognize the related professionals, to attend the meetings or gatherings, anything is possible through networking.

Dedication towards your profession:
Without dedication, you cannot succeed in any fields. This is true particularly in banking jobs. You must devote all your time towards the bank service and to your clients. If you are working for investment banking, you possess additional responsibility because people enquire you about the means to spend their money.

Future Of Online Banking Authentication

Banking on Internet and mobile is gaining popularity

The Pew Internet & American Life Project Tracking survey of December 2010 said that nearly 60% of all Americans who used the Internet did some banking over it. In the United Kingdom, the number of bank accounts registered for Internet banking grew sharply from 28 million in 2006 to 45 million in 2010. With over 100 million, a Chinese bank has the largest number of Internet banking users in the world.

Cut to mobile banking. A research firm estimated that about 110 million people worldwide used mobile banking and related services in 2010. It also indicated that the geographies of Asia Pacific, Middle East and Africa would be the most important markets for financial services using the mobile device. Another one forecasts a stupendous 660% growth in mobile banking and payment services between 2009 and 2014.

A number of factors, including lower cost of connectivity, greater Internet and mobile Internet penetration, affordability of devices and the arrival of the smartphone have gone into popularizing online (Internet and mobile) banking around the world.

However, security threats continue to loom

While these figures are impressive, these could have been higher, had it not been for the security threats surrounding online banking such as phishing, pharming, hacking, keystroke logging, Man-in-the-middle, Trojan horses and several other modes of attack that discourage adoption. The fact remains that despite advancement in security technology, fraudsters still manage to breach banks defenses from time to time. Consider these numbers: every month, around 18,000 phishing attacks take place around the world; 3% of Internet users from the EU27 group of countries lost money to online fraud last year; and there are at least 2,500 varieties of e-banking malware. Nearly 80% of U.S. banks think that malware on their customers PC is a top security risk. Indeed this seems justified because U.S. consumers lost over US$ 2 billion and 1.3 million PCs to malware in 2010.
A compilation of the security threats to mobile and online banking in 2011 ranked malware distribution through social networks, attacks targeted at specific organizations and theft of financial information using malware, at the top.

While fear of fraud has kept a number of customers all over the world from using Internet or mobile banking, at the same time, it has made banking institutions more cautious with their security policies. While there are many threats as described above, a very strong authentication mechanism for customers and transactions will address most fraud related issues. In addition to employing authentication techniques some banks also resort to other measures such as limiting the number of online banking operations that a customer can perform each day, capping the value of individual transactions, or applying additional layers of user authentication in the case of high value or exceptional transactions. On the face of it, banks apply such restrictions to protect their customers. There is also an element of self-interest in it as the banks would like to limit their own risk as well in the event of a transaction being initiated by someone who is not authorized to do so.

The current state of online banking authentication

Having mentioned earlier that authentication of customers and transactions forms the foundation in preventing of online banking fraud; let us look at the current state of online banking authentication models. At present, authentication of online banking users is done using any or a combination of the following methods:

User Id and password: This is the most popular and common method, which involves asking users to enter their User Id and password. As additional security, users may be required to ensure that their passwords are strong, change them routinely after a fixed number of days, or may be assigned a different one for transaction authorization.

Two-factor authentication: This method verifies users identity based on something that they know (user name and password) and something else that they have. For example, a bank might provide a token (physical or virtual) to customers, who, besides entering their password, must enter a random number generated by the token to authenticate themselves each time they conduct a transaction like a payment, for example. Alternatively, the bank might send a One Time Password (OTP) to the customers registered mobile device each time they initiate that transaction. In addition, the bank might subject customers to further scrutiny in case they are performing high value transactions or indulging in any activity that arouses suspicion. Some banks also verify the IP address of the device using which a customer performs a transaction, and should that change, resort to further querying and other forms of additional authentication.

The extent of authentication varies across banks, and depends on its security infrastructure as well as its risk tolerance guided by its risk policies. No doubt, two- factor authentication is more effective at preventing impersonation, but, as the recent breach of RSAs tokens showed, it is not 100% foolproof in fact, a study of banking fraud-related challenges in Latin America showed than almost a third of token users didnt quite trust them. This is the reason why banks take the additional precaution of restricting transactions inspite of implementing such security arrangements. That apart, tools of two-factor authentication have other limitations token are expensive to produce, distribute and administer, and OTPs sent via SMS could take time to reach.

Alternate models of authentication

The recent advancements in emerging technologies could enable new modes of more secure authentication without impacting customer experience. These advancements leverage the inherent capabilities of smartphones to introduce a third factor of identity verification. In three-factor authentication, in addition to furnishing their regular password and an OTP that appears on their token or mobile phone, users will be asked to present something that they possess, which would irrefutably prove their identity. This third factor could be captured using either an application that is installed on the customers smartphones or an inbuilt feature or capability of the device.

Some examples of the third factor are fingerprint, retinal image and voice. Assume for a moment that a customer is trying to transfer a very large sum of money via mobile banking. In the new model of authentication, after the customer submits his two passwords, an application that is loaded on his mobile will prompt him to provide a third factor, say his fingerprint. The customer places his finger on the smartphone screen, following which the application scans the impression and transmits it to the bank, where it is matched against the fingerprint image in their records.

There are other possibilities of biometric authentication as well, such as capturing words spoken by the customer via his phone and matching them against a previously authenticated sample of voice that exists in the banks records, or asking him to take a photograph or retinal scan with his smartphones camera and send it to the bank for approval and authorization.

It is also possible for banks to conduct three-factor authentication of customers who dont own a smartphone, by providing them a device, which can be plugged into their devices which is capable of capturing and transmitting the biometric information.

Key success factors for adoption of newer models of authentication

Currently, the new models of online authentication are in various stages of evolution, and are yet to be commercialized. Once their technology is perfected, these methods can quickly become mainstream security procedure. The following factors play a critical role in creating a favorable environment for the new authentication models to thrive and grow as mainstream models :

Infrastructure: Capture and verification of fingerprint, voice or any other biometric information requires special infrastructure to be set up and integrated. On the capture and verification, support is available from both Government and external agencies, which can capture and store customers biometric samples as well as provide applications to help the banks verify the information.

Advancements in storage technology: Over the years, data storage technology has progressed leaps and bounds that the cost of storage has drastically reduced; the cost per GB of data in 2010 was 1/10th of that in 2000. This combined with increased efficiencies in algorithms of data storage of information such as biometrics has helped banks to attain a position where they could leverage economies of scale with respect to data storage in order to keep the costs of maintaining massive volumes of biometric information manageable. Emergence of the Cloud will only accelerate the ability of banks to adopt this trend faster without having to worry about scalability or performance or security of such data.

Device proliferation: The adoption of the new authentication methods is directly linked to smartphone penetration. For this reason, these techniques would have been unworkable a few years ago; however, with smartphone usage expected to cross 1.7 billion by 2014, and annual sales growing in the region of 75 to 80 percent, the stage is set to welcome sophisticated forms of authentication in the next 3 to 5 years.

Business case: Analysts predict that the spending by banks on anti-fraud solutions will grow at about 30% over the next few years. This is clearly indicative of the industrys concern about the growing sophistication of fraud techniques, which continue to breach security systems, even as theyve become stronger. While this is a clear trigger for the adoption of better authentication solutions such as those built on three factors banks may not invest in them unless they find that the investment more than pays for itself by way of reduction in fraud.

That being said, factors such as technology advancement, reduction in data storage cost, and the availability of a support ecosystem of external partners are favourable to bringing down the cost of implementation, and will thereby strengthen the business case for adoption of the new security models.

In many countries, two-factor authentication is already mandatory for performing online financial transactions, and it is quite possible that this will progress to three factors in future, thus giving the necessary impetus to newer methods.While the above factors are not directly led by consumer behavior, higher customer adoption of online banking could also force banks to look into sophisticated models of authentication. Many banks across the world are now offering more than just banking transactions on their online banking portals, extending the scope of services to wealth management, transaction behavior-led product sales, virtual banking, customer networking etc. If these strategies start to pay dividends then they could also result in higher adoption of online banking, thus forcing banks to adopt the
new models of authentication.

This is an ongoing journey

Signs are ripe that sooner or later, the above mentioned factors will converge to a tipping point when the current methods of authentication will make way for more sophisticated ones. However, this is not the end of the road. While multi-factor authentication looks like a foolproof solution under current circumstances, it is also true that even this will not stop an attacker forever, but merely slow him/her down. The implementation of security technology is neither a one-time effort, nor a guarantee of lifetime protection. What looks like a cutting-edge solution today will be standard fare tomorrow and out of date a few years thereafter. But for now, the future of online banking authentication appears headed in the direction discussed in this paper.

Top Paying Banking And Finance Careers

I am an MBA from…”

Or

“I am a Masters In…”

Or

“I am a graduate from…”

Really?

What happened to you?

You Are Not Your Education.

Surely you have something unique to offer the world of Banking & Finance.

But I have found that the very thing holding these students and graduates back is simply their beliefs and the meaning that they attach to the current situation.

In Private Equity our job is to see things differently from everybody else.

The investments that I look for right now are companies that do not understand the opportunity that is available to them right now through technological advance.

I mean, never in history have we had access to our own television channel (You Tube), our own distribution network of over 1 billion users (Facebook), the ability to have our message reach everybody’s pockets (Through i phones and Blackberry’s), have access to our own publishing company (Through iPad and Amazon), the ability to set up at virtually zero cost, for 3 people to be able to do the work of 300 people without an office and to have access to a global market with the click of a few buttons and a small budget with google.

And this is meant to be a hard time???

What an opportunity.

As long as businesses continue to do things the old way, there will always be a market for me to see things the other way and thrive.

As long as students and graduates identify themselves as their education, there will always be an opportunity for others to see things the other way and thrive.

Why?

Two things and two takeaways for your career.

Students and Graduates that are struggling right now are stuck in old ways and not adjusting to change.

Old thinking students and graduates are using old strategies like get as educated as I can and then apply online for graduate Schemes.

This will lead to the same results as everybody else – bad ones.

Secondly…

Students and Graduates that are struggling right now give the wrong meaning to the tough market.

Circumstances do not dictate what happens to us.

The meaning that we give the circumstances does.

This tough market can be unfortunate or it can be the biggest opportunity ever.

Which meaning you give it, is your choice.

What is the dominant meaning that you give to the current situation?

I put it to you, the meaning you give it will dictate your results.

Some experience the trauma (and something that I would never wish upon anybody) of being raped.

Some take that experience and fall apart.

Others use this as a reason to never allow this to happen to anybody ever again and start a crusade to change the world.

What is the difference?

The meaning you give something.

Why me? v. How Can I Use This?

The meaning you attach to circumstances will dictate your ability to see the opportunity amongst the rough.