vol. V no.

3 quarterly journal july-September-2009

Computer Security

e-track
business of future
 e-track
e-track
Editor
Pratima Trivedi
Editorial Team
Pramod Dikshit
Ambrish Mishra
Swapnil Srivastava
Sanjay Srivastava
Printed by
Swastik Printing Press
27, Mai Gi Ki Bagiya,
Kapoorthala Crossing,
Mahanagar, Lucknow
Mobile : 9415419300
punjab national bank institute of
information technology
Vibhuti Khand, Gomti Nagar,
Lucknow--226 010 (U.P.)
T : +91 522 2721442, 2721174
F : +91 522 2721201, 2721441
E-mail : bankingtech@pnbiit.co.in
URL : www.pnbiit.com
Thought for the quarter
“Most of the important things in the
world have been accompanied by
people who have kept on trying when
there seemed to be no hope at all.”
- Dale Carnegie
From Director's Desk
The Glossary of Computer Security
“Electronic Accounting System in Excise.......
Repeated Mistakes Becomes Habit
Micro Financing Institutions Need To Shed Complacency ......
Six Sigma: A Boon For Small And Medium Enterprises
Financial and Technical News
July-September-2009
From the editor
Dear Readers,
While most organisations today recognise the
potential benefits of technology the successful ones are
those that can effectively harness technology. Effective
harnessing is effective management of two critical
components-technology and the information that resides
on this technology. Computer security includes protection
of information and property from theft, corruption, or
natural disaster, while allowing the information and
property to remain accessible and productive to its
intended users. The article “Glossary of computer security
”covers various sensitive areas relating to computer
security.
EASIEST (Electronic Accounting System in Excise and Service Tax) is
the procedure for payment of Central Excise duties and Service taxes. In EASIEST,
the taxpayer has to submit only one copy of the GAR-7 challan as against the old
procedure of giving 4 copies of TR-6 challans in the Bank. From April 1 ,2007 it is
mandatory for all assessees paying excise and service tax, totaling Rs. 50 lakh and
above annually, to make the payment through e-mode.The article “Electronic
Accounting System in Excise and Service Tax” throws light into various details of
the system.
There are so many events in one's life when one commits mistakes. No
one is complete. There is no one on earth who has never committed any mistake. But
has everybody adopted it, as his habit? No. Normally we change it. If we commit
any mistake we plead sorry and see that it is not repeated. But our sincere sorry is
only effective if we do not repeat the mistake. The article “Repeated Mistakes
Becomes Habit” elaborates the issue with excellent examples.
No institution can function without acquiring necessary skill, expertise
and knowledge to run the same. It is also true that there should be well honed
processes, procedures, system and strategies evolved by the institutions over a
period of time, beside expertise and experience of people who have been
empowered to run the institution. Micro financing institutions are no exception to
this universal requirement for successfully running an institution.The article
“Micro Financing institutions need to shed complacency and look for higher
technology & expertise to serve the poor with minimum cost and maximum
benefit” highlights the issue very well.
“Six Sigma” has emerged as one of the most effective business
improvement strategies through knowledge know how to improve, process to do
things better, faster and at low cost.The article “Six Sigma: A Boon For Small And
Medium Enterprises” elaborates procedure to introduce Six Sigma to small scale
sector through step by step process, for achieving efficiency and effectiveness in
their working operations.
Hope you find this serving of e-trac interesting and informative.
Happy Reading…………..
Pratima Trivedi
e-mail : pratima@pnbiit.co.in
Contents
3
Nidhi Goyal 4
Dr. Firdos T. Shroff 12
A K Saxena 15
Dr S N Ghosal 17
Anchal Singh 22
33
2
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Director's Message
Technology has brought about a paradigm shift in the way the organizations
worked till a few years back. Organizations today are dependent on technology right
from the stage of policy making till the implementation of their business plans and
execution of all their business processes. Management of human resources through
HRMS tools, handling business through e-commerce and optimizing customer base
through CRM tools, all exhibit the migration from traditional approaches to
technological solutions.
The ever increasing intervention of technology in day to day activities of banking organizations has
brought about certain ramification affecting the very old existing patterns. While cost of technology
involved in automation of banking operation has been immense (all PSU banks together spending Rs. 15015
Cr till 31/03/2008), its translation into business terms is yet to be measured. Although the Banks together are
showing continuous positive growth in their Asset & Liability portfolio, how much growth has been
contributed by the intervention of technology has yet to be discovered.
Use of technology in Banks has brought about a pressing need for replacing knowledge based
training systems to the skill development institutions. The legacy workforce of the banks were recruited as
bankers who would have never been fit to optimize the technology to the fullest extent. Thanks to the
greatest ever involvement of training departments of the banks who have been deadly busy during last few
years in imparting skill based training to make the existing work force ready, at least for performing simple
menu based operations on the computer. However, with the technology going deep into the transactions on
the electronic platform like RTGS, NEFT, Internet Banking & Debit Cards, the need for recruiting fresh
techno bankers has come up more than ever before.
The situation also demands strengthening of existing IT training establishments as well as building
up of a few more to bridge the skill gap. While all the banks have remodeled their
in- house training establishments to impart basic IT training to their work force, yet there is
requirement of premiere apex level training institutes like IDRBT & PNBIIT, Lucknow, equipped with latest
IT training resources who could impart best of IT training on contemporary Banking Technology.
PNBIIT has started functioning in the year 2002. Since then it has evolved with the evolution of IT in
Banking. Having been dedicated to the entire BFI sector the Institute has imparted training to more than
11183 banking personnel from 33 Banks during last few years. The Institute is marching fast towards
achieving its mission, withstanding the cause of banking sector producing techno bankers & demonstrating
use of IT in BFI sector.
With heartiest greetings for Deepawali to all readers of 'e-track'

Ambrish Mishra
Asstt. General Manager

3 July-September-2009
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Reader's Comments
We appreciate your initiatives in the direction of education and training in banking
technology through the setting up of PNBIIT and publishing of the quarterly journal
“e-track” . The articles in the issue, covering direct and indirect effects of use of technology
by banks, are relevant to the banking industry as a whole.

We are glad to note that the journal is being disseminated online through the institute's
website . We wish the Institute and its initiatives all success.

Sambhavi Chandrashekar
Deputy General Manager, Reserve Bank of India

The issue of “e-track” is well designed, delightful with articles, features and write-ups
on diverse topics highlighting various achievements in information Technology. Please
accept my compliments.

M .Narendra, Executive Director,

Bank of India

The articles of the issue April – June 2009 of “e-track” magazine are nicely prepared,
particularly the article on E CRM, Electronic trading of distressed Bank Loans are highly
informative.
My hearty appreciation for the efforts and looking forward to read more and more
such informative articles from your magazine.
S . Sekar
Assistant General Manager,
Karur Vysya Bank

Appeal: As a part of our drive to make the contents of Journal more pertinent and
germane to the readers we welcome articles on latest topics of Banking /
Information Technology. Articles may be of about 1000 words. Published articles
are suitably remunerated.

July-September-2009 4

The Glossary of Computer Security
Abstract
An attempt to write
a comprehensive article
on network security is
something like writing a
brief on flying Airliners.
Much must be omitted, and yet enough is to be told to
enable the reader to appreciate the skills required to
identify the Achilles heels of the systems. The first
question that arises is what we mean by "network
Security." Several possible tangents can be explored
within this broad topic, and each is worthy of a
lengthy article. Here, in this article I give a window
view of the terms in network security that frequently
come up in discussions among the Security
professionals.
To begin, virtually all the security policy
issues apply to network as well as general computer
security considerations. In fact, viewed closely,
network security is a subset of computer security.
Computer security as a discipline was first studied in
the early 1970s, though till today from the home
computer user all the way up to the largest enterprise,
security is an easy thing to push aside. After all, all's
working well and nothing's going wrong right now.
We are simply postponing it. We need to compare
the time & effort to remove a virus, spy ware, or need
to recover data from a backup versus the time &
effort to do just the simplest things to secure your
computer . The practical networking aspects of
security include computer intrusion detection, traffic
analysis, and network monitoring. The art and
science of cryptography and its role in providing
confidentiality, integrity, and authentication
represents another distinct focus and is an integral
feature of network security policy. The net as some
say has become a country of its own, with no laws,
5 July-September-2009
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-Nidhi Goyal
and official moral code of conduct.
Antivirus Software
Antivirus software is used to
prevent, detect, and quarantine the
millions or even billions of
viruses, spyware, worms and other
softwares that attack the system and also it attempts
to repair any file damages caused. It needs to be
constantly updated as one study found that the
detection success of major antivirus software
dropped significantly over a one-year period.
A variety of strategies are applied. Signature-
based detection involves searching for known
malicious patterns in executable code so as to
identify corrupted files. But since malware is ever-
changing, it is possible that a user is infected with
new malware in which no signature exists yet. To
counter such threats, heuristics can be used. One
type of heuristic approach, generic signatures, can
identify new viruses or variants of existing viruses
for looking for known malicious code (or slight
variations of such code) in files.
The global antivirus market, according to
market researchers IDC is slated to reach $7.3 bn in
2009.
Botnets (short for robot networks)
A Bot is a remote control program that user has
no knowledge of existence. It allows complete
control of the compromised system through
Keylogger, Remote control, Proxy, Spam.
If a collection of computers is infected with
such software robots, called “bots,” this collection of
computers (each of which is called a “zombie”) is
known as a “botnet.” Because of the potentially large
size of a botnet, it might compromise the integrity of
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a large amount of data. Zombie networks have
become a source of income for entire groups of cyber
criminals. The invariably low cost (as low as 100$)
of maintaining a botnet and the ever diminishing
degree of knowledge required to manage one are
conducive to growth in popularity and,
consequently, the number of botnets. PCs not
protected by adequate antivirus and firewall
software are at greatest risk of being corralled into a
botnet.
Fig: How botnets work
As of 2009, the longest prison term for
computer crimes—nearly five years—was handed
down to Jeanson James Ancheta, who created
hundreds of zombie computers to do his bidding via
giant botnets. He then sold the botnets to the highest
bidder who in turn used them for Denial-of-service
(DoS) attacks
Captcha
CAPTCHA is not a word itself; it's an
abbreviation which stands for “Completely
Automated Public Turing-test to tell Computers and
Humans Apart”. Captcha is program used to verify
that a human, rather than a computer, is entering
data. Captchas are commonly seen at the end of
online forms and ask the user to enter text from a
distorted image. The text
in the image may be
wavy, have lines through
July-September-2009
it, or may be highly irregular, making it nearly
impossible for an automated program to recognize it.
It provides a hurdle, which restricts various
automated programs to sign-up E-mail accounts,
cracking passwords, spam sending, privacy
violation etc. This prevents spam from being sent
through website forms and ensures that webpages
like Wikipedia are only edited by humans.
Distributed denial of Service (DDoS)
A DDoS attack is an attack on a computer
system which aims to force the system into denial of
service, that is, it can no longer receive and process
requests from legitimate users. One of the most
common attack methods involves sending numerous
requests to the victim computer, leading to denial of
service if the computer under attack has insufficient
resources to process all incoming requests. It like
pushing fifteen fat people through a small revolving
door, resulting in no one can go across. DDoS attacks
are a potent weapon for hackers and botnets are an
ideal tool for carrying out such attacks. Another type
of DoS attack - known as an 'email bomb' - targets an
organization's servers by sending more email than
the systems can handle and can be used as a tool for
unfair competition or be manifestations of cyber
terrorism.
Exploit
An Exploit is the technical term for a
damaging program that takes advantage of specific
weak points called vulnerability in a piece of
6

software (for example Buffer Overflows). Attackers
can gain control of an attacked computer via weak
points in the operating system or applications. A in
an information system is a weakness that an attacker
might leverage to gain unauthorized access to the
system or its data.
Firewall
Firewall is a filter that will let through only
desirable interactions. The model is like a defensive
medieval castle: these castles had strong and solid
walls with slits through which archers could shoot
arrows. These slits were so narrow that it was almost
impossible to shoot an arrow through it from the
outside. Similarly firewall filters all traffic between a
protected or “inside” network and a less trustworthy
or “outside” network. They implement a security
policy, which distinguish “good” traffic from “bad”
traffic. Part of the challenge of protecting a network
with a firewall is determining the security policy that
meets the needs of the installation.
Google
The name of Google is synonymous with
search engines. The amount of data the search engine
makes available to anyone
with a net-connected PC can
provide extensive information
on an individual or a company.
It poses a security risk due to
7 July-September-2009
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the fact that numerous dangerous websites are found
in search results and sponsored links are nearly three
times likely to harbor spyware, adware or spam than
organic links.
The concept of Google Desktop poses risk to
sensitive data on your system.
Hackers
Computers are the
perfect playground for
hackers. Computers, and
computer networks, are vast
treasure troves of secret
knowledge. Hackers cheat.
Breaking security regularly involves cheating and
it's how we get better at security. It's only after
someone invents a new attack that the rest of us can
figure out how to defend against it. It's figuring out a
smart card's RSA key by looking at the power
fluctuations, because the designers of the card never
realized anyone could do that. It's self-signing a
piece of code, because the signature-verification
system didn't think someone might try that.
Although many hackers are malicious called
black hats - intending to cause disruption or hijack
PCs for their own ends - some can simply be out for
the challenge of cracking a particular security
system. In the corporate world, so-called white hat
hackers are even employed to probe corporate
security systems for flaws - a business known as
penetration testing.
Instant Messaging (IM)
Instant messaging is an increasingly popular
method for communicating over the Internet. IM is a
supplement to and, in some regards, a replacement
for e-mailing. Instant messaging also differs from e-
mail in that messages are exchanged directly almost
instantly, allowing for a two-way communication in
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real-time. As a result IM is increasing in popularity
in both professional and personal applications
User today are aware of the risks in opening
every email attachment that lands in their inbox and
the corporates also have increased e-mail security
making malware writers look for other avenues of
attack. The rise of IM, or instant messaging, has
given them a new target and has led to an associated
increase in the number of security risks like worms,
message integrity to solve the second issue, ensuring
b a c k d o o r Tr o j a n h o r s e s , h i j a c k i n g a n d
that sensitive authentication data is never sent over
impersonation, Denial of Service Unauthorized,
the network in the clear. By providing a secure
Disclosure of Information and so on.
authentication mechanism, kerberos is an essential
Java Security part of a total network security plan, providing clear
benefits for both end users and administrators.
It is important to recognize that implementing
Kerberos on your network does not guarantee
perfect security. While Kerberos is extremely secure
in a theoretical sense, there are many practical
security issues to be considered. In addition, it is
important to remember that Kerberos provides only
Java introduced the idea of a sandbox: make
an authentication service; it does not prevent
non trusted code run inside a protected area which
compromises caused by buggy server software,
limits its ability to do risky things. Java already
administrators granting permissions to unauthorized
provides security features which are much better
users, or poorly chosen passwords
than for other languages and systems. There are still
some security concerns with Java. Some of the Listserv
facilities are rather rudimentary and not easy to use. This term looks like it's missing an "e", but
Code signing is a hopeless mess. Software bugs very that's how it's spelled. A listserv, or list server, is a
often render the security useless. Digital small program that automatically sends messages to
signatures, authentication and authorization must be multiple e-mail addresses on a mailing list. When
the way to go. someone subscribes to a mailing list, the listserv will
Kerberos automatically add the address and distribute future e-
mail messages to that address along with all the
Kerberos is a network authentication system
others on the list. When someone unsubscribes, the
that can help solve those two issues. It reduces the
listserv simply removes the address. At least that is
number of passwords each user has to memorize to
the way it supposed to work. Unfortunately, with
use an entire network to one, the Kerberos password.
some SPAM lists, unsubscribing only adds you to
In addition, Kerberos incorporates encryption and
more lists.

July-September-2009 8

Microsoft
Over the years Microsoft's
softwares have had security
holes which have been regularly
exploited by attackers. For many
years an embarrassed Microsoft
has struggled to up its security
credentials. Regular update
patches and more emphasis on security has in
present times reduced its problems but there still are
problems. Adobe, though is now proving to be a soft
target for attackers.
In an article in 'The Washington Post' on the 22nd of
July,09 it has been implied that the patched released
for the nine security holes may still have fixed only a
subset of the problem on windows as the problem
probably runs deeper into the code of the libraries
and probably has also been transferred to third party
softwares.
Nessus
Nessus is still
the best UNIX
vulnerability scanner
(free and open source
computer program
designed to search for
and map systems for
weaknesses in an
application, computer
or network) available and among the best to run on
Windows. Nessus is constantly updated, with more
than 20,000 plugins. Key features include remote
and local (authenticated) security checks,
client/server architecture with a GTK graphical
interface, and an embedded scripting language for
writing your own plugins or understanding the
existing ones.
9 July-September-2009
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Outsourced IT
It is a major concern as companies look to
reduce costs based on economic factors in 2009;
outsourcing will continue to be an attractive option
for efficiency gains.
The security risks associated with outsourcing
are tremendous according to survey data. This
mainly involves the exposure of sensitive
information to third parties and the threat that the
data will be improperly protected in transit.
Passwords
Choice of Passwords causes problems. It is
important to have creative and complex passwords
that are difficult to crack. Also users should write
down passwords somewhere secure or to use
password management software so they don't resort
to choosing easy words or using the same password
for several logins. Newer methods like two-factor
authentication or human biometrics are encouraged
to deal with this issue.
A recent silicon.com leader predicted
passwords will be replaced with biometrics or other
technology in the long term. Just how long remains
to be seen. Various approaches available for getting
 e-track
passwords are: Trojan horses, packet capture, key
logger, brute force, dictionary attack.
Questions
Learning from previous mistakes is the
obvious way of incrementing security measures.
Many a times Q&A sessions with reformed hackers
or white hat hackers answering a variety of security
questions - from the role of Microsoft to the
evolution of social engineering and the next big
security threat act as imperative tools for security
reforms.
Rootkits
Rootkits currently
represent the greatest threat
to PC users. They install
themselves invisibly on a
target system and give the
attacker full control over
the system. Rootkits exist
for a variety of operating systems, such as Microsoft
Windows, Linux, Mac OS, and Solaris. Rootkits
often modify parts of the operating system or install
themselves as drivers or kernel modules. Once
installed, clever hiding mechanisms make Rootkits
very difficult or even impossible to detect. If you
detect a Rootkit installation, then a new installation
of the operating system is usually unavoidable
because you can no longer trust the PC.
Statistics show that an unpatched Windows
XP Service Pack 1 (SP1) machine is infected within
minutes of being connected to the Internet, and
downloading software or even just visiting certain
Web sites can introduce undesirable software onto
your system. Fortunately, the defenses against this
plague are constantly improving, with a sound
security shield consisting of an antivirus tool, an
antispyware solution, a firewall, and up-to-date
July-September-2009
patches. However, a technology called root kits
threatens to change the security landscape and make
the task of validating that a computer is clean of
malware difficult or even impossible.
Spoofing attacks
A spoofed attack is when it is difficult to find
the culprit because he has developed ways to hide
himself or to make it very difficult to trace. Spoofing
is like playing a con game: the attacker weaves a
false but convincing world around the victim.
Massive ARP spoofing attacks are done on websites.
"Spoofing" frauds attempt to make surfers believe
that they are receiving e-mail from a trusted source,
or that they are securely connected to a trusted web
site, when that is not the case. Spoofing is generally
used as a means to convince individuals to give out
personal or financial information by deception.
In "E-mail spoofing" the header of an e-mail appears
to have originated from someone or somewhere
other than the actual source” Page Spoofing"
involves altering the return address in a web page so
that it goes to the hacker's site rather than the
legitimate site.
Twitter
Twitter is micro-
blogging. It is social
messaging. It is an
event coordinator, a business tool, news reporting
service and a marketing utility. Miniature Blog that
provides micro-blogging is for people who want a
blog but don't want to go the long way of blogging. A
personal blog can keep people informed on what is
going on in your life, but not everyone wants to
spend an hour crafting a beautiful post about the
vibrant colors seen on a butterfly spotted in the front
time.
Twitter was knocked offline by denial of
10
 e-track
service attack on the 6th of August, 2009 for a few viruses today run very slowly, as much of the
hours and affected facebook, Live Journal and computer's processor power is busy making money
Google sites. Typically someone who has a bone to for someone
pickup with a particular website or user will Wireless Networks
roundup some hijacked PCs and use them to try to
shut the site down.
USB sticks/devices
Huge amounts of
data can be easily
transferred using
storage devices like
USB stick or iPod
without being even
noticed. That can
become a security risk
if a disgruntled insider tries to take advantage of this
As the use of Wi-Fi becomes more widespread
by covertly making off with files from the corporate
that is spawning rural areas and remote offices, the
network. Viruses and worms can be easily
risk to integrity and security of corporate networks
introduced into the corporate network if a user
using external wi-fi hotspots to conduct corporate
copies data say from his home network, that even he
business is big. Rouge hotspots can be used to steal
is not aware is infected.
data from unwary users. Most access points still
Virus have default settings, making them vulnerable to
Viruses are the oldest form hackers.
of damaging software and these XTM (extensible threat management)
are sadly still a current threat. In
Refers to a
contrast to all other types of
security appliance
Malware, a Virus infects a
that delivers all the
normal program by injecting its
features of a UTM
own code into the normal
(unified threat
program (comparable to a
management)
biological virus that injects its
solution – firewall,
own genetic information into a human cell). Once
VPN, anti-virus, and intrusion blocking – but with
run, the virus attempts to distribute copies of itself
extended security, networking, and management
and can cause damage in a wide range of possible
capabilities. The goal of XTM is to create an ever-
ways. A Virus usually requires a "host" and cannot
expandable network security platform. An
run alone.
appliance that is flexible enough to support new
This is often why computers infected with technologies can protect against threats even when

11 July-September-2009
 e-track
they evolve into new forms. XTM extensibility also
tries to ensure that appliances interoperate and
support mixed network infrastructures, giving an
administrator a wide array of configuration options.
You
Many of the security
problems are caused due to
ignorance or casualness on
the part of the user. Utmost
care must be taken by users when transferring
personal information on the networks. Security fix the vulnerability.
problems also prevail due to users behavior like A zero-day vulnerability in the Windows
running outdated antivirus software, old operating implementation of Vector Markup Language
systems and browsers (which have inadequate (VML) impacts all supported versions of Internet
security) just for reluctance to change. Explorer, all supported versions of Microsoft
Downloading of files and following hyperlinks must Windows 2003, Windows XP, and Windows 2000,
be done prudently. Techniques like Phising thrive and recent versions of Outlook and Outlook
exclusively on tricking humans. Express.
Zero-Day Attack References:
Malicious hackers have discovered they can www.securityfocus.com
increase their level of destruction by cracking the
www.googleimages.com
defenses of a product on the same day that news of a
vulnerability breaks and/or an ensuing patch is www.silicon.com
released as it usually takes a while for the antivirus Digit vol 9 issue 7
companies to obtain and create a suitable signature. www.wikipedia.com
Disclosure practices compel software and security
www.cnetnews.com
vendors to publicly announce flaws, which informs
fast-acting exploiters. The resulting zero-day Author is computer faculty at
attacks affect users who haven't applied a patch to PNBIIT Lucknow

“The tragedy of life doesn't lie in not reaching your goal. The
tragedy lies in having no goals to reach.”
- Benjamin Mays

July-September-2009 12
 e-track
“Electronic Accounting System in Excise and Service Tax (EASIEST)”
-Dr. Firdos T. Shroff
August 2004, a HPC was set up in code of the collecting branch. A combination of the
the RBI for "setting up facilities for three helps to identify the challan uniquely. The
on-line transmission of Tax Payment Technical Sub-committee worked out the file
Data from Banks to Central Excise structures, the work flow etc. for the on-line
Dept. under the Chairmanship of Shri transmission of tax-data based on the concept paper
J. N. Nigam (Member) CBEC. The submitted by the CBEC.
terms of reference of the Committee included The second HPC meeting was held at RBI on
recommending: modalities for dematerialization of 5th November 2004. At the meeting, it was decided
Challans, setting up and implementing a fully to start a Pilot at Chennai limiting the Pilot to Excise
automated safe and secure system of receipt and in the first phase. Thus, a pilot was started at Chennai
transmission of information relating to tax from 17th January 2005 involving 5 branches of
payments, new business processes for each of the 8 banks authorized to collect excise at
operationalising the scheme, overall policy frame Chennai. A single copy challan with a tearoff
work for the industry etc. Members included counterfoil called GR7 was introduced during the
Director General (Systems), CBEC, Principle Chief Chennai pilot.
Controller of Accounts (CBEC), Controller General
of Accounts, representatives from Corporate Sector, On 1st June 2005, the Pilot was extended to all
RBI and IBA. the 400 branches in and around Chennai, covering
all the 4 commissionerates in Chennai.
At the first meeting of the HPC on 24th
September 2005, it was decided that the project may
be implemented in two phases viz. the first Excise
and then Service Tax. It was decided to constitute 2
sub-committees: a Technical Sub-committee under
Shri R. N. Ramanathan, DMD, SBI to work out the
technical requirements of the project and a Sub-
committee on Accounting Procedure chaired by Shri
V. N. Kaila, Pr. CCA, CBEC to work out the
accounting procedures for the project.
NSDL was identified as the intermediary for
the transmission of Tax Information. In place of the
quadruplicate, only a single copy of the challan
would be submitted and the tear off portion
containing the Challan Identification Number (CIN)
would be handed over by the collecting bank branch
to the assessee. The CIN number is the unique
identifier for a challan. It consists of the Challan
Number, Date of submission of Challan and the BSR

13 July-September-2009
 e-track
EASIEST process Document : the master, then software to prompt the user to
Process to be followed at collecting branch : Capture Name & Address of the Assessee. In
addition, system to ensure capture of Location
·Collecting branches to capture Challan details
Code. If the complete Location Code is not
on the date of receipt of the challan
available, bank should ensure capture of the
irrespective of Cash or clearing cheques. This
first two digit (Commissionerate Code)
will ensure automatic capture of tender date by
correctly may be after confirming from the
the system.
taxpayer and the other four digits can be filled
·Provision to be made for automatic capture of as zeros. This will enable Commissionerate -
the following fields for every challan as a part wise scrolling of challans.
of data entry:-
·If the Assessee Code is valid, then the Name
1. BSR Code of Collecting Branch and Address, Location Code etc are to be
2. Challan tendered date automatically be picked up from the Assessee
Master and no editing of these fields should be
3. Challan Sequence Number (CIN)
allowed.
4. BSR Code of Focal Point Branch.
·All other mandatory fields are to be captured
All these fields to be automatically captured on the date of tender. In case mandatory details
by the system and should not be normally editable mentioned in challan are not captured,
fields. In case of a need to edit any of these fields for software to prompt User to capture same.
some reason, it should be possible only on the basis
·Software should have Maker and checker
of a supervisor authorization.
feature for data entry. Software should
·Data entry software should identify the generate Challan number (CIN) based on date
concerned Major Head from the Assessee of tender.
code itself and the 8 digit reduced account
·At EOD, all realized payments to be compiled
codes needs to be selected from pop-up only.
and date of realization for the same will be
In case the Assessee code is not available or
captured by the system automatically. For
not validated, the software should provide
Cash transactions, cheque realization date to
option to select the Major Head and reduced
be the same as date of tender.
account code through pull down menu only.
·Each challan will be given a running serial
·System to provide the facility for data entry of
number based on its item number in the scroll.
Assessee Code. Once the Assessee Code is
This number is to be allotted while scrolling
entered, the same will be validated against the
the challans Commissionerate-wise and
Assessee Master provided by NSDL.
Major Head-wise for the day. The item
·Banks should periodically update the Assessee number of the challan in the scroll will be
Master through the patches provided by number and to be captured in the new field
NSDL. BR_SCR_ITEM_SL. Physical challans needs
·In case the Assessee Code is not available in to be arranged under the hard copy of the

July-September-2009 14

computer generated scroll in the seriatim of
BR_SCR_ITEM_SL number.
·At EOD, the software to generate daily scrolls
Commissionerate-wise and Major Head-wise.
The scroll number and scroll date appears on
the system generated scroll should be captured
automatically in the electronic string also.
This will help in having synchronization of
electronic data and physical documents.
·Subsequently, file to be generated which can
be transmitted to Focal Point Branch for
further processing along with Physical scrolls
& challans.
Process to be followed at Focal Point Branch
(FPB) :
·Software to provide only view facility to the
FPB
·System to provide a facility to view scroll
details and also underlying challans.
·On receipt of physical scrolls from the
collecting branches, details of the scroll to be
verified against the electronic data.
·In case of error, erroneous file to be reported
back to the collecting branch and the file
relating to that branch to be withheld.
·Remaining valid and verified files to be
If you focus on results, you will never change. If you focus on
change, you will get results.
15
e-track
compiled and main scrolls are to be generated
Commissionerate-wise and Major Head-wise.
·The Main Scroll number and scroll date
appearing on the hard copy of the system
generated scroll should be same in the
electronic string also.
·Only the branch scrolls against which the
physical challans have been reached the FPB
and verified for its correctness against the
corresponding electronic string to be
consolidated to be uploaded to link cell and
then to NSDL.
·Hard copy of the System generated Main
scrolls together with the hard copy of
receiving branch scrolls and underlying
physical challans are to be sent to PAO.
·Hard copy of the receiving branch scrolls and
underlying physical challans are to be
arranged under the Hard copy of the Main
scroll in seriatim as they appear on the Main
scroll before sending the same to PAO.
Reference :
·www.iba.org.in
Author is FELLOW' & Consultant (Faculty),
Indian Institute of Banking & Finance &
former Special Executive Officer
(Govt. of Maharashtra)
- Jack Dixon
July-September-2009
 e-track
Repeated Mistakes Becomes Habit
I had a steno. He was very careless, especially
in forgetting so many things and then on being
caught, saying sorry, but without any improvement.
One of his habits was forgetting cap of his pen.
Whenever I called him for taking dictations, he
forget cap of his pen on my seat, invariably. Any how
I did not like his habit. When it happened first time, I
sent his pen cap back to his seat, through someone.
But he continued to behave like this. I shuck with an
idea. Now onward, whenever he uses to leave his pen
cap, I started going to his seat to give him it back.
This made him uncomfortable. There was a bit of
improvement but not to the desired level. Then I used
another idea upon him, which changed his habit once
for ever. What was that idea? I bought a very good
looking and costly pen on his birthday, as birthday
gift. As usual I called him for dictation. He came to
my cabin with that pen only. He opened the pen, took
dictation and left in my cabin as usual leaving his pen
cap. I took it and put it my pocket. The day went off.
At the close of his office, when he did not find the cap
of the pen, he was very upset. I was collecting the
report about missing cap. He ran pillar to post but did
not succeed in finding out the cap. But he could not
dare to come to my cabin in the belief that if he says
that he has lost the pen cap, which I gave to him as his
birthday gift, I may mind it, as it was given by me.
But not finding any way out, ultimately he had to
come to my cabin asking me about the cap with a
guilty feeling. I gave him the cap with an advice to
take care. That was perhaps the last day when he
forgot to keep the cap pf his pen and leave it
anywhere while using it. He amended himself.
July-September-2009
-A K Saxena
What I want to emphasize out of this narration
is that mistakes if continued and committed again &
again, it becomes our habit. There are so many
events in one's life when we commit mistakes. No
one is complete. There is no one on earth who has
never committed any mistake. But do everybody has
adopted it, as his habit. No. Normally we change it. If
we commit any mistake we plead sorry and see that it
is not repeated. But our sincere sorry is only effective
if we do not repeat the mistake. If we repeat the
mistake, our sorry has no meaning and gradually this
will become our habit.
But now the question is how it affects us. It
affects our personality. In fact a fundamental
principle of a developed personality is good habits.
Naturally good habits are liked by all. Bad manners
are not liked by any body. May it be our home, our
society or our office. Bad manners, bad habits do not
contribute in our personality development. A
balanced personality means a person with good
habits. Take for example our careless attitude. Why
one become careless? Have we ever thought about
it? One becomes careless if he is not pointed out by
others and if one does not take anything seriously. If
we take everything in joke, we can never be sincere
about our family, our society or about our job and
naturally if we are not serious any where, we will
become careless and of course it is going to affect
our personality, all the way. A careless person is not
liked by anybody. Personality does not only mean
good looking. It is god gifted. As far as my look is
concerned, I will remain as I have been. But I can
improve and build a good personality by inculcating
16

in me good habits. A well mannered person is
welcomed everywhere and anywhere by everybody
and anybody. In fact our habits are stumbling blocks
in our personality development.
Take for example one's habit of appreciating
others. Appreciation is a no cost motivator. If we
have a habit of appreciating others contribution it
will make our job easy. We shall not be required to
push anybody for good work. Everybody does some
of the job on any day which deserves appreciation. If
we appreciate it motivates other to contribute
positively. Appreciation does not involve any cash
e-track
but it pays a lot. Be an appreciator. There can be
quoted so many traits which improve and develop
our personality.
Non repetition of mistake is also a personality
trait. We should develop in ourselves a habit of
avoiding committing mistakes. Mistake is
unavoidable, I agree. But who stops us to improve.
Let us inculcate in ourselves a habit of not repeating
mistakes, so that these do not become our habit.
Author is Chief Manager at
Punjab National Bank
Management Audit and Review Division
HO New Delhi

The harsh reality of life or call it the bitter truth of life

Either way the realization dawns when the end is near. A very interesting anecdote.... .......Read on........
There is very instructive incident involving the life of Alexander, the Greek king.
Alexander, after conquering many kingdoms, was returning home. On the way, he fell ill and it took him to his
death bed. With death staring him in his face, Alexander realized how his conquests, his great army, his sharp sword and
all his wealth were of no consequence..
He now longed to reach home to see his mother's face and bid her his last adieu. But, he had to accept the fact that
his sinking health would not permit Him to reach his distant homeland. So,
The mighty conqueror lay prostrate and pale, helplessly waiting to breathe his last. He called his generals and
said, "I will depart from this world soon,
I have three wishes, please carry them out without fail." With tears flowing down .Their cheeks, the generals
agreed to abide by their king's last wishes..
"My first desire is that," said Alexander, "My physicians alone must carry my coffin." After a pause, he
continued, "Secondly, I desire that when my coffin is being carried to the grave, the path leading to the graveyard be
strewn with gold, silver and precious stones which I have collected in my treasury.
"The king felt exhausted after saying this. He took a minute's rest and continued. "My third and last wish is that
both my hands be kept dangling out of my coffin."The people who had gathered there wondered at the king's strange
wishes. But no one dare bring the question to their lips. Alexander's favorite general kissed his hand and pressed them to
his heart. "O king, we assure you that your wishes will all be fulfilled. But tell us why do you make such strange
wishes?"
At this Alexander took a deep breath and said: "I would like the world to know of the three lessons I have just
learnt.
Lessons to learn from last 3 wishes of King Alexander... I want my physicians to carry my coffin because people
should realize that no doctor can really cure any body. They are powerless and cannot save a person from the clutches of
death. So let not people take life for granted..
The second wish of strewing gold, silver and other riches on the way to the graveyard is to tell People that not
even a fraction of gold will come with me. I spent all my life earning riches but cannot take anything with me. Let people
realize that it is a sheer waste of time to chase wealth.
And about my third wish of having my hands dangling out of the coffin, I wish people to know that I came empty
handed into this world and empty handed I go out of this world."
With these words, the king closed his eyes. Soon he let death conquer him and breathed his last. . . .
If this realisation is taken seriously at the right age, probably the man will not waste his time pursuing wealth,
power etc.

17 July-September-2009
 e-track
Micro Financing Institutions Need To Shed Complacency And Look
For Higher Technology & Expertise To Serve The Poor With Minimum
Cost And Maximum Benefit
Indeed no institution can function
without acquiring necessary skill,
expertise and knowledge to run the
same. It is also true that there should
be well honed processes, procedures,
system and strategies evolved by the institutions
over a period of time, beside expertise and
experience of people who have been empowered to
run the institution. Micro financing institutions are
no exception to this universal requirement for
successfully running an institution. It is well known
fact that strategies and systems as well as procedures
and processes evolve over a period of time and
constantly come under review due to change in
knowledge, expertise, technology, culture, and
environment both social and physical.
Define the Path
It is obvious therefore that there should well
defined path of learning for the people who man and
run micro financing institutions. It has been
observed that to make the learning process simple
and easily understood and practiced by any man with
just average intelligence a distinction at times has
been made by some practitioners and consultants in
between the concept of education and learning.
Since micro financing institutions cater to the needs
of masses it has become imperative for these
institutions to develop strategies, systems, processes
and procedures in simple, transparent language as
that would be easy to comprehend as well as to
implement by any one with average intelligence and
minimum education. In fact micro financing
July-September-2009
-Dr S N Ghosal
institutions undertake mass banking and not class
banking that most of the modern commercial banks
undertake and therefore it has to develop strategy,
processes and also communication language that
could be understood by poor people both in
education and wealth accumulation so that they
could avail the helping hand and fund of these
institutions with confidence that they are not cheated
and they could pursue sustainable business with
confidence and necessary supportive expertise and
funds of these institutions. It is obvious therefore
that these institutions not only fund the business of
the poor but also supplement the lack of expertise
both in technology and updated skill in the sphere of
production and also market intelligence with regard
to marketing their products at best price and time.
For all these there is not only need to change the
mindset of executives of these institutions but also to
train and equip them with latest technology and
knowledge.
Need High Level of Knowledge
However it is interesting to note that to evolve
simple processes and procedures as well as
strategies and systems generally need much higher
degree of intelligence, knowledge, and passion to
innovate and therefore it has been mostly seen that
pioneers of these institutions are generally highly
educated and enlightened people and therefore they
could develop sustainable strategies and systems to
make these institutions deliver the objective of
serving the neglected people of the society to help
them to operate as a successful farmer and or
18

artisans. In fact their vision and comprehension of
the complex problem of poverty alleviation could
help them to develop institutions empowering the
poor to stand on their own feet and run a sustainable
business without looking for alms and aids from
states. It is true it has not happened everywhere but it
cannot be denied that some visible transformation
could be seen all around them to achieve the
objectives laid down by the pioneers. This is
something that has encouraged rapid growth of these
institutions almost all over the world particularly
where large numbers of poverty stricken people live.
Education And Learning To Go Hand In Hand
It is therefore imperative to understand the
distinction in between education and learning that
often seen to have been emphasized by some
professionals with a strong belief that merely
learning processes and procedures would help
executives to practice with ease and confidence to
operate in their allotted fields of work even without
having any knowledge of how and why such
processes and procedures have been evolved and
considered best to optimize benefits to poor and also
their earnings. It is needless to emphasize that such
an approach would soon make them dull and
mechanical and consequently averse to changing
pattern of demands arising from growing revolution
in technology and knowledge. Furthermore it has to
be understood that no system, process or even
strategy is permanent in this fast changing world as
both technology and knowledge with regard to
techniques and strategies are fast changing and
hence locking them to learn only the current
processes and procedures would not help them to
grow and sustain their interests as they would miss
19
e-track
the excitements and challenges that are continuously
growing in this sphere of funding the poor to run a
sustainable business.
Need Dynamic Education Related Learning
Practises
It would be necessary to educate them
comprehensively not only at their work places and
on their allotted work but also in management
institutions where new processes and practices are
researched and put to practice as pilot project. In fact
education is no longer considered as mugging of
thoughts and deliberations of enlightened people but
as a tool to comprehend its application in practical
life. It is therefore increasingly becoming a life or
visualized case based teaching. In this regard it
would be interesting to refer to money game played
by first year MBA students of Harvard Business
School as referred by NIALL FERGUSON in his
recent book on THE ASCENT OF MONEY. He has
observed that 'it begins with a notional central bank
paying the professor $ 100 on behalf of the
government, for which he has done not very
lucrative consulting. The professor takes the
banknotes to a bank notionally operated by one of his
students and deposits them there, receiving a deposit
slip. Assuming, for the sake of simplicity, that this
bank operates at 10% reserve ratio (that is, it wishes
to maintain a ratio of its reserves to its total liabilities
at 10 %), it deposits $ 10 with the central bank and
lends the other $ 90 to one of its clients. While the
client decides what to do with his loan, he deposits
the money in another bank. This bank also has a 10
per cent reserve rule, so it also deposits $ 9 at the
central bank and lends out the remaining 81 to
another of its clients. After several more rounds, the
July-September-2009
 e-track
professor asks the class to compute the increase in
supply of money.' that is $ 271 ($100+90+81 dollar).
Through such illustrative cases one could explain
albeit in simple language how modern fractional
reserve banking allows the creation of credit and
hence enhanced money power.
Concept Clarification
It is therefore could be seen that the concept of
broader money and its leverage though highly
complex and generally explained in exotic language
however could also be brought out in a very simple
language and also could be easily explained to
executives of micro financing in what way this
concept could be operated to maximize the velocity
and use of money and consequently their own
earning as well as that of borrowers. No one would
therefore question the need of such knowledge for
dealing with money and credit. It is obvious
therefore that education and learning could go hand
in hand and that too with the desired level of simple
conversational language and avoiding jarring exotic
language. In fact distinction in between education
and learning is fast fading with the growth of
emphasis in case based teaching instead of giving
stress to mugging and memorizing. It is the
application of knowledge in economic and social
activities that is increasingly looked for.
Need Comprehensive Knowledge
It would be imperative for all executives of
financial institutions obviously including micro
financing institutions to acquire comprehensive
knowledge with regard to all types of money
creation and application and therefore they should
clearly understand the concept of broad and narrow
July-September-2009
money and its leverage capability. In fact this would
help them to develop appropriate strategy to
maximize the turnover of money and revenue as well
as benefit large number of borrowers. It is therefore
obvious that education with live and imagined case
studies equip the executives with not only to frame
policy, procedures and practices to operate and serve
poor people better as they would be able to
comprehend and assess their needs better and also
have adequate knowledge with regard to operation
to make it applicable to their target group of people.
Avoiding Hide Bound Policies
Moreover learning simply the processes and
procedures that are practiced by the financial
institutions including micro financing will make
them rule based executives. But the economic and
social environment is becoming highly dynamic and
therefore hide-bound system and policy would not
help them to develop innovation in their strategy,
system and service and without such changes the
very sustainability of these institutions would be at
stake. In fact it is an established fact that these
institutions have to develop not only extension
services to educate their borrowers to hold their
hands to give boost to their economic activities both
in farming and craftsmanship as generally these
people are ill-equipped to run their business as
commercial venture. It would therefore be necessary
to develop adequate knowledge of markets and men
with whom they have been operating. It would
therefore helpful if executives of micro financing
institutions have adequate knowledge and
experience in farming and craftsmanship so that way
they can extend their helping hand and mind to their
borrowers both in field and market.
20

Short Term Operation
It is unfortunate that most of these institutions
give stress on lending for short term purposes and
collect repayment on weekly basis. It is true that
there is definite gap even in this area as most of the
artisans, traders and farmers do not always get their
short-term funds from the banking system and hence
largely depend upon usurious money lenders and
therefore the assistance offered by micro financing
institutions in this area on better terms as compared
to money lenders obviously has been welcomed by
such borrowers. But if one takes objective view of
such development there would be not even an iota of
doubt that these institutions are also exploiting the
weakness of bargaining capacity of artisans, traders
and farmers as the interest rates and terms are not
what normally charged/practiced by banks and even
by NBFC. Obviously this approach and strategy
could never be sustainable and therefore it would be
necessary to focus attention to this growing menace
and develop appropriate strategy to educate/ learn
the game to become an appropriate agency to
alleviate the poverty of poor people and transform
them as vibrant, active agent to transform their
economic condition by enabling them to pursue
viable and sustainable economic pursuits in villages
and towns.
Need Transformation Of Pesent Adhoc Lending
Such transformation would require highly
motivated and enlightened institutions with vision
and passion to build a society where people
howsoever poor and uneducated could acquire
necessary skill, information, and opportunity to
21
e-track
undertake viable and sustainable business
proposition- farms and or firms. This is perhaps
easier to think and even propose or promise but need
genuine passion and active interest of enlightened
people to translate this into action.
Build Smooth Path Of Learning
The path of learning has to be smooth so that
no one tumbles while treading the path. But
smoothness depends much on the preparation and
application of latest technology and knowledge. It
would be therefore necessary to visualize the
aspiration level of people and the extent of present
knowledge and technology could help them to attain
their dreams. It is obviously difficult task and
therefore needs application of best available
technology and knowledge and also passion and
dedication to deliver the same to people. Learning
curve is also not static but dynamic and therefore
strategies and systems also move along with that. To
make the learning path smooth and straight it would
be necessary to develop an appropriate dynamic plan
that would not only teach processes and procedures
but also bring out knowledge base of such policies
and help developing and incorporating the changes
that are feasible and provide high degree of
satisfaction to their clients- borrowers and
depositors. It would also be necessary to avoid
opaque policies and strategies and maximize
transparency in product and service delivery cost
and time.
Cognitive Traps
In fact some cognitive traps as has been
July-September-2009
 e-track
mentioned by NIALL FERGUSON in his latest
book 'THE ASCENT OF MONEY 'would perhaps
help to develop a smooth path for learning. These
traps are:
1. availability bias where decisions are taken on
available memories;
2. hindsight bias where decisions are based on
probabilities of events;
3. induction problem where policies and rules
are framed on insufficient information;
4. conjunction fallacy where an overestimate is
preferred due to optimism;
5. confrontation bias where one looks for
confirming evidence for their hypothesis;
6. contamination effect where irrelevant but
proximate information influence a decision;
7. heuristic effect where pre-conceived value
judgment affect decision making;
8. neglect scope where no adjustment is made to
avoid possible harms that may arise from the
decision;
9. overconfidence in calibrations which leads to
under estimate the confidence interval levels;
10. Apathy of bystander which leads to abdication
“The test we must set for ourselves is not to march alone but to
march in such a way that others wish to join us.”
July-September-2009
of individual responsibility when in a crowd.
Conclusion
It would be helpful therefore to build the path
of learning avoiding the above traps and creating a
good cocktail of knowledge and practice that would
attract executives to learn and practice with ease and
efficiency. It is obvious therefore that the path of
learning should be built on latest knowledge base,
with cases both live and visualized to illustrate the
application of knowledge in practical life by
building sound strategy and system; policy and
procedure to create a sound and most convenient
delivery model for products and services at least cost
and inconvenience. In this regard prime need is to
know your customers in as great details as feasible
and thereafter get acquainted with the market, its
nuances, and mood and hence contents of learning
should deal with these in simple but exhaustive
manner so that even common people could easily
comprehend. Obviously this needs thorough
understanding of men and market and that would not
be feasible as one time exercise as these are highly
complex institution and require detailed and
continuous study. Hence learning is one time
exercise but should be provided regularly.
Author is retired GM from United Bank of India
- Hubert Humphrey
22
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SIX SIGMA: A BOON FOR SMALL AND MEDIUM ENTERPRISES
Anchal Singh

ABSTRACT played by them, it is essential to

Development of Small and Medium examine the methodology for
Enterprises (SMEs) continues to be the overriding enhancing their performance in the
objective of developing economies; as they have international markets in terms of
become growth vehicles to national economies of increased competitiveness
many countries. SMEs occupy a place of reflected in accelerating exports.
prominence whether in terms of industrial SMEs are normally called as the engine of
employment, exports and imports and overall growth in developed and developing countries. Like
output. Since the early 1990s they have been in many developing countries, SMEs in India play a
exposed to intense competition due to the very crucial role in terms of balanced and
accelerated process of globalization. sustainable growth, employment generation,
Six Sigma has emerged as one of the most development of entrepreneurial skills and
effective business improvement strategies through contribution to export earnings.
knowledge know how to improve, process to do The basic features of SMEs can be analyzed well in
things better, faster and at low cost .After its terms of qualitative criteria since standard
conception at MOTOROLA , many success stories quantitative yardsticks have not yet been decisively
were witnessed by a host of Multinationals .Having established.
seen the success of Six Sigma in large corporation, Table No: Qualitative criteria for SSIs
we have perceived the Six Sigma roadmap, for Salient features
Criterion
improving the productivity of small organizations
Mode of productio n Low degree of division of labor,
after reviewing an individual's own business and style. craft type production
landscape . Management style No professional management and
no division between productive
This paper is an attempt to introduce Six
and management functions.
Sigma to small scale sector through step by step Workers and skills. Large share of family members
process, for achieving efficiency and effectiveness and low levels of education
requirements
in their working operations. Product type. Low technology intensity and
Key Words: Six Sigma, Small and Medium low production and suppliers
Organization Relations to employers,
Enterprises, Multi National Corporations. structure. customers and suppliers.
INTRODUCTION Legal status. No Formal registration.

In today's L.P.G. era globalization has become Output markets. Limited within local area.
an inevitable and irreversible process, it is an Input markets. Utilization of locally available
unmixed blessing. Presently, SMEs are grappling resources.
with fast changes at the market place because of the Policy initiatives: The policy initiatives of the
transformation of India's controlled economy to a government assisted the SMEs through favorable
free market set up. Considering the strategic role policy measures based on the industrial policy

23 July-September-2009
 e-track
resolution of 1956. Some of these initiatives have been taken against the backdrop of the SME financing in a
cross country perspective .In view of financial problems , two broad approaches have been adopted at the
national level , viz facilitating access of SMEs to sources of financing and developing new sources .
Table No: 2 Statistics of SMEs in India
No. of units Production Employment Export Comparative growth of
Year (Million Nos.) (Billion Rs) (Billion Rs at (Billion Rs. SME And Industrial Sector
current current Percent
prices) prices)
SME Sector Industrial
Sector.
1996-97 8.62 1684.10 20.60 392.70 11.29 6.00
1997-98 8.97 1891.80 21.30 444.42 9.19 6.70
1998-99 9.34 2129.01 22.10 489.79 7.84 4.10
1999-00 9.72 2342.05 22.91 542.00 7.09 6.70
2000-01 10.10 2612.89 23.90 599.78 8.04 5.00
2001-02 10.50 2822.70 24.90 697.97 6.06 2.70
2002-03 10.95 31199.3. 26.01 712.44 7.68 5.70
2003-04 11.39 3577.33 27.13 860.13 8.59 6.90
2004-05 11.86 4297.96. 28.25 1244.17 10.88 8.40.
2005-06. 12.34 4978.42. 29.49. ---N/A 12.32. 8.10.

Source: Ministry of Small Scale Industries, Government of India.

THE HISTORY OF SIX SIGMA

The history of Six Sigma as measurement standard can be credited to Carl Fredericka Gauss (1777-
1855) during 1920s when Walter Shewhart showed that three Sigma from the mean is the point where a
process requires correction
Six sigma has been recognized as the most powerful management strategy that employs statistical
and no statistical tools and techniques for maximizing an organization R.O.I. (Return on Investment) by
eliminating defects in every process from manufacturing service and transactional process.
According to Montgomery (leading experts in quality engineering)".Six Sigma is perhaps the most
successful business improvement strategy of the last 50 years. The success of numerous MNCs such as
General Electric, Honeywell, Segate, Technology , Caterpillar, Raytheon, ABB can be largely attributed
towards the deployment of six sigma in their business strategy.
James Harrington has defined Six Sigma as simply a TQM process that uses process capability analysis
,a way of measuring progress, {H. James Harrington, “Six Sigma's Long Term Impact”, and Quality
Digest}(June 2001):16.

July-September-2009 24

OVERVIEW OF SIX SIGMA
Six Sigma is a business improvement
approach which aims at eliminating all the possible
cause of defects involved in the business process and
concentrating on outputs that are vital for the
customers which results in increased customer
satisfaction, and the bottom line is affected through
cost savings and increased revenue. It is an
approach for quality improvement that strives for
perfection and aims at eliminating all the defects in
the process of production, company's functions and
industries.
It guides the future investment plans as it aids
an individual in the core performance issues. It has
both management and technical components. By
implementing this mantra the organization benefits
in terms of cost savings, better customer satisfaction
e-track
·Control. (MAIC).It links in a useful ways
statistical and other tools that have been found
to be effective in improving process.
Small business generally faces financial
constraints that limit their ability for implementing it
as being implemented in large organizations.
They don't have excess cash reserve to
earmark for the massive training programs
employed by the large corporations. Small business
generally can't afford to employ skilled Master
Black Belts as personnel's. Beside s they don't have
experts to step into the role of Black Belts without
extensive training.
Chart No: 1 Diagrammatic representation of
“SIX SIGMA FOR SMEs”
Measures Strategic Planning & Define Six Sigma
Projects
Competitive Benchmarking

and process, as well as performance in the areas of

environment and employment issues. Analyze Develop Project’s
Scope/Team.
Six Sigma also provides a process
measurement scale .The methodology utilizes Six Project
Customer Management
“process sigma” as a measure of process capability Improve
(Leadership) Process
Review Projects Human Resource Develop ment
with a Six Sigma process having a defect level of 3.4 Support Projects. Education and Training
Quality Tools
ppm and a 3 sigma having a defect level of 66, 807 Information and Analysis
Suppliers Management
ppm (Harry 1998).
Control Audit Projects Results and Apply Continuous Improvement
There are three aspects of Six Sigma that are
new as compared to past approaches. SIX SIGMA FOR SMEs
·There is an integration of the human and While designing a Six Sigma framework for
process elements of improvement. the SMEs many positive characteristics are taken
·Clear focus is made on getting bottom line into account by the Quality Associates so as to speed
results ($). up the structuring of an effective Six Sigma Quality
·A method that sequences and links Management System (QMS).There are certain
improvement tools into an overall approach. critical factors which are taken into account for
Mainly four phases are involved in framing a suitable Six Sigma Quality Management
improvement of process. System for the SMEs. These projects should be
·Measure derived from our business strategic plan which
depicts the organizational goals.
·Analyze
Many large organizations increasingly depend
·Improve and
25 July-September-2009
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on SMEs for a wide range of high quality products
and serviced at low cost. As many of them operate
their business process at the two or three sigma
quality level, an improvement of even one sigma
represents a huge step in improving customer's
satisfaction and reducing costs. For instance, if a
customer order fulfillment process is operating at
three sigma level (i.e. 66800, defects per million
opportunities) and we improve the level of four (i.e.
6210 defects per million opportunities); this would
realize a ten fold improvement in performance. It is
also appropriate for smaller companies therefore
traditional Six Sigma improvement process needs to
be modified for SMEs. The Six Sigma process also
works well in billion dollar corporations as well as
$50 million privately owned companies. Infact the
result are much quicker and more visible in SMEs
but due to paucity of funds, they would deviate from
the traditional role of black belts.
SMEs should decide the right projects and
right selection process so that the companies limited
resources are effectively utilized. It is beneficial for
them to establish a proper communication channels
between managers and employees. On the basis of
business goals, senior management defines the
scope of each Six Sigma project for organizing it
suitably. While the projects are under progress they
are reviewed regularly so that necessary technical,
political and financial aid can be provided. After the
projects are over senior management audits the
project's results and establishes the necessary
systems improvement for continuously adjusting
the business strategic plans.
For managing a Six Sigma quality system,
each critical factors should be implemented through
mapping of the Six Sigma MAIC (measure, analyze,
improve and control) discipline into its routine
process.
DEPLOYMENT OF SIX SIGMA
There is a Six Sigma deployment model for
July-September-2009
entering .Smaller and mid sized companies to
implement at a pace where they can actually digest
the methodology and achieve, benefits, without the
significant resources commitment and overhead
structure of the traditional Six Sigma
implementation approach.
Six Sigma consists of both management and
technical components. On the management side, it
emphasizes on getting the right process metrics and
goals, the right projects and the appropriate
personnel to handle that project and use of
management systems for the completion of the
project and earning gains over the time, whereas on
the technical front it focuses on enhancing process
performance by reducing the variations using
process data, statistical thinking and methods.
Measure: Here the existing systems are measured
and potential critical process/ products identified
and described the potential systems. Valid and
reliable metrics are established which will help in
monitoring the progress of the process / functions.
(A) MEASURE
Leadership For quality improvement programme
management provides personal leadership
and commitment.
Customer focus. For targeting potential market segments and
customers. marketing / sales and customer
satisfaction information is used to
Education and Education system balances short term and
training long term organizational and employee
needs.
Information and For facilitating job performance quality
Analysis tools are identified.
Process Key business process are identified,
Management improved and monitored.
Strategic For ensuring quality improvement a quality
Planning steering committee is established for
developing short term and long term strategic
plans.
Supplier Key performance requirements are
Management incorporated into suppliers’ process
management.
Quality tools. For facilitating job performance quality tools
are identified.
Human Resource For measuring employee satisfaction various
Development. methods are designed and used.
Competitive Marketing, new technology and compet itor
Benchmarking. benchmarking information is obtained.
26
 e-track
Measure Phase
Ø
Senior management plays a critical role in the deployment of Measure phase. Thus for implementing
the whole process there is a need of development awareness and commitment of resources. The phase
should be developed as follows:
The Six Sigma must be driven from the top level management by employing appropriate resources with
commitment.
Ø
Team up with other facilitators
Assistance from various outside personnel's can be made so as to assure readiness for the
implementation.
Ø
Training needed
Senior officials should be imparted with a requisite training so as to gain an insight regarding the
benefits of Six Sigma implementation.
Ø
Schedule periodic senior management reviews
During the initial stages in defining, developing and implementing it is vital that senior management
should frequently review the quality facilitator.
(B) ANALYSE

Leadership Employees are provided with information’s related with

. Customer focus
Education and training
Information and Analysis
Process Management
Strategic Planning
organizational policies and performance expectations.
For improving the overall organizational performance customers’
complaints are aggregated and analyzed.
Management and employees are trained for obtaining problem –
solving skills and equipped with quality related knowledge.
Measurable units are analyzed and linked with work units and
functional –level operations.
Statistical techniques are used for detecting variances.
For every business unit strategi c plans are translated into executable
action plans and these plans are evaluated through various measures.

Supplier Management Working with suppliers towards long –term partnerships. Suppliers
are selected keeping in view quality aspect.
Quality Tools Employees and management are trained regarding quality tools.
Human Resource Recruitment plan is aligned with strategic plan.
Development
Competitive Benchmarking Benchmarking information is analyzed and used to identify strategic
opportunities.
Analyze Phase
The main objectives of the second phase are to identify the gaps between current processes
performance and businesses goals and to fill up the concerned gaps. Systems are analyzed for identifying the
gaps between the current performance of the system or process and the desired goals.

27 July-September-2009
 e-track
Improve
For meeting the customer expectations process are modified and the revised outcomes are measured.
Control
Here the new systems are controlled and improved systems are institutionalized by modifying policies,
procedures, operating instructions and other management systems.
Through the following table, the procedure can be deduced for the deployment of Six Sigma MAIC
discipline into each individual critical factor of your Six Sigma QMS.

(C) CONTROL

Leadership Here Management audits the execution of results of each action.

Customer focus Measurement is made of customer satisfaction customer satisfaction.

Education &Training. Management evaluates the performance and process of the training
system.
Information and Analysis For monitoring improvement activities information activities results are
used.
Process Management For controlling and evaluating improvement process work unit
performance measures are identified.
Strategic planning Define performance measureme nts for tracking progress relative to
action plans.
Suppliers Management Suppliers’ quality performance levels are measured and monitored.
Quality Tools. Quality tools are used in management process.
Human Resource The measures for employees ’ performance are clearly defined and have
Development been communicated.
Competitive Benchmarking The process of selecting benchmarking information is evaluated.

Control Phase
The main objectives of the fourth phase are to assess profits of each project for improving the processes
performance, determine the success level of each project and continuously adjusting the business strategic
plan.
ØAudit the projects' results.
When the projects are over the final outcome are audited by the senior management.
ØMaintain the improved systems:
Institutionalizing the improved system by modifying policies, procedures, operating instructions and
other management systems.
ØApplying the incentive /reorganization system.
Based on the project performance, the appropriate incentives and reorganization will be applied to the
project team members.
July-September-2009 28
 e-track
ØApply continuously improvement mechanism:
The strategic plan and the related action plans should be revised according to the project performance
subsequently new Six Sigma projects would be derived from the revised strategic plan.
PROBLEMS FACED BY THE SMEs
Indian SMEs too face challenges in accessing adequate funds on time from the banks and financial
institutions. Only 17% of the SMEs are able to avail the facility of institutional finance and a large chunk
depends more on internally generated funds / or informal financing channels for their expansion and
modernization requirements .Apart from that they have to face global competition due to the integration of
global economy , lack of infrastructure and obsolete technology , retention of good quality manpower and
asymmetry of information .Its very difficult on the part of banks in assessing credit requirements of SMEs
,as they possess information asymmetry, multiple segments, multiple needs , lack of transparency and have
limited financial disclosure in the financial statements maintained by them .
The challenges which are being faced by the small and medium scale sector (S.M.E) are briefly set out
as follows
ØInadequate access to finance due to lack of financial information and non-formal business practices.
ØSMEs also face fragmented markets ion respect of their inputs as well as products and are vulnerable
to market fluctuations.
ØInaccessibility to enter international and inter state markets.
ØMoreover, they also face considerable delays in the settlement of dues /payment of bills by the large
scale buyers.
These hurdles can be removed to a great extent if the bottleneck problem of finance is taken care of.

PROBLEMS OF SMEs

Inaccessible Lack of
Inadequate Vulnerable Lack of
to private. awareness
access to to market product and
Equity and of global
finance venture fluctuations technology best
capital innovation practices/.

Therefore proper assessment of SMEs credit need and proper analysis of their balance Sheets –
interfirm and inter-size comparisons, etc, is not possible in a cost effective manner in the absence of
information. The inherent characteristics of SMEs like multiple segments and needs, fine granularities

29 July-September-2009
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among them due to different combinations arising out of ownership , regional , industrial , product and
process , etc further aggravates the situation of liquidity crunch being faced by them .The banker will
undeniably have a tendency to concentrate his energies on the larger ticket size. While on the one hand the
lenders don't have adequate knowledge about them. Moreover, SMEs are not abreast with the latest
happenings in the finance world, besides dearth of knowledge of suppliers and a customer also adds to the
problem. The credit needs of the SMEs depends on the ability to procure orders and fulfill them in time, and
here Chartered Accountant play an indispensable role helping them to comply with all the required
formalities.
nd
However, the Micro, Small and Medium Enterprises Development Act, 2006, operational from 2
October 2006, is a landmark step by the Central Government of India for the promotion and development of
micro, small and medium enterprises. In the present global era it will enhance the competitiveness of such
enterprises and will facilitate timely recovery of dues of micro small enterprises along with interest in case
of late payment by the buyer.
Low share of bank credit

Risk Perception Information

asymmetry
Reasons for
low share in
Bank Credit

Low
Collaterals Lack of
Alternate
Lack of credit avenues.
appraisal, risk
mgt, monitoring
tools.

PROSPECTS AND CHALLENGES FOR INDIAN SMEs

Six Sigma is surely one of the most comprehensive approach for a company's development and
performance, improvement of product and process .Small and Medium enterprises, functioning with
relatively obsolete technologies and modern ones are run by innovative techno-entrepreneurs and which are
operating in new industries offered by globalization, appropriately and therefore prosper rapidly. A major
proportion of the them suffer due to obsolete technology which will act as a constraint in exploiting the
opportunities presented by globalization. Further, a considerable number of these entrepreneurs would be
either less qualified or lack entrepreneurs both resources. To stay competitive, SMEs can no longer compete
on cost efficiency whereas; they should try to upgrade their capabilities whether in terms of manpower,
implementing robust system, process and practices.
During the20th century astounding growth has occurred in business particularly in MNCs. They produce

July-September-2009 30

bulk of manufactured goods and dominate much
of the world's economy , employing millions of
workers and influencing a major part of
consumer choices .Moreover, due to globalization
and liberalization coupled with W.T.O. regime,
Indian SMEs have been passing through a
transitional period .
CONCLUDING OBSERVATIONS
From the foregoing discussion it can be
observed that globalization has become an
inalienable part of our lives, therefore it has
become vital for an enterprise to carry out changes
in order to survive and prosper. Country would be
better served if the government takes note of
chronic weakness that holds back the SME sector.
To stay competitive , SMEs can no longer compete
on cost efficiency .Instead , they should upgrade
their capabilities ,in manpower and innovations
and put in place robust system , process and
practices .This also helps them spread costs and
risk and gains , greater access to technologies and
markets. We can say that those SMEs who have a
strong technological base, international business
outlook, competitive spirit and willingness to
restructure themselves shall withstand the present
challenges and come out with flying colors.
REFERENCES
Books
· Ruddar, Dutt, Sundharam, K.P.M., “Indian
Economy”, Sultan Chand and Sons, New
Delhi2006.
· Raj Dev, “Globalization and Decentralized
Economic Development”, Rajat
Publication, New Delhi First Edition 2003.
· S h a r m a , M a n o r a n j a n , “ To w a r d s
Understanding Globalization Process”,
Batcha Aman, “Leading Issues In Indian
Economy” Atlantic Publishers and
Distributors, New Delhi.2005.
· Bester field, Dale, Beterfield Michna Carol,
31
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Besterfield Glen H. “Total Quality
Management “Pearson Education pp158
Second Edition 2006.
· Jugale, V.B. and Jugale , Y.V. “Rethinking
Globalization Vol-I “The State of Indian
Economy”, Serial Publications , New Delhi,
First Edition 2006.
Articles
· “Next Frontier for precision Engineering for
SMEs”, Productivity News, Vol.44, no.2pp
nd
23, 2 March –April 2006.
· Sumathy Mand Raj Kumar K.P., “Emerging
Trends in SME Sector, “Productivity News
Vol-44, Nov-Dec2006.
· Management Improvement in SME,
“Productivity News”, Vol-44 Nov-
Dec2006.
· Rani Uma, “Export Potential of SSIs in
India: A Study”, Southern Economist”Vol-
46 no.10 15th Sep 2007.
· Anotony, Valasamma, “Small Scale Sector
at Cross roads: An Overview”, Southern
Economist, Vol-46.NO.6 15th July 2007.
Websites
· R.B.I. circular financing on financing SME.
· http://www.bizbeginners .biz/India html.
· http://www.vedamsbook.
· http://www.dsir.nic.in/reports/unitscon/chap.
· http://www.ingentaconnect.com.
· http://www.jobfunctions.bnet.com
· http://www.sixsigma.com/library/context
· http://www.inggentaconnect.com/search.
· http://www.inderscience.com/search/index.
· http://www.bankindia.com
· http://www.indiabudget.nic.in
· http://www.pqa.net/ProdServices/
sixsigma/W06002007.html.
July-September-2009
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Book Review
If God was a Banker
by Ravi Subramanian, Rupa & Co. (pp260); R.195

'If God was a Banker' is debut novel of Ravi

Subramanian's, which is certainly an engaging tale
of the trails and tribulations of the management
gurus and banking pundits. The spotlight has been
rightly beamed on the entry of the foreign banks in
India and how the large Indian population was lured
into the present regime of pelf and materialism.
Undoubtedly, the entry of such culture of bank loans
for vehicles, houses and home appliances and the
introduction of plastic money, the living standards of
an average middle class Indian have definitely
undergone a metamorphosis. The several brains that
worked behind this process have been effectively
communicated to the reader by the author.
Well, anything good has a downside also. The murky
and devious sides of such deals and the dedicated
approach of two of the fresh graduates from
management school lay thread bare the life behind
his imperious nature and misdeeds but walk without
the ornate façade of highly paid, flamboyant,
punishment. Aditya Rao, an elderly character who
extravagant and glamorous profession. Two young
plays Godfather to these two protagonists extends
management graduates, with nothing similar in
his helping hand to Srivastava for his intrinsic talent
family backgrounds and temperament, join the
and intelligence.
International Bank on the same day and take two
The author has written this book in smooth and
entirely different routes to success. Both rise up the
simple language and recitation; probably for
ranks at breakneck speed: the fast and aggressive
puritans. Nevertheless, the author deserves hearty
Sundeep, who will stoop to anything to get ahead,
congratulations for making the reader walk
and the mature and sensible Swami, with a high
successfully though the world of money, Personality
regard for good old ethics.
clashes, family swings, business flings with
What all could come with power, position
secretaries, fun and lethargy at the company's
and wealth? Deceit, women, ambition, frustration,
expense, extravagant dance parties, insomniac
pressure, success and failures interfere in the lives of
business deals, shrewd business intellect,
these two youngsters. Notwithstanding these, they
workaholic lifetimes and millions of dollars is what
surge forward to success and how they manage it is
this book talks about.
narrated by the author lucidly. The novel travels
from Chennai to Mumbai, Delhi, Kolkata to New Reviewed by Sanjay Srivastava
York and London. Finally Sundeep is grilled for all (Librarian) PNBIIT, Lucknow

July-September-2009 32
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Financial and Technical News
1) India to have 3rd largest number of Internet
users by 2013 Times of India Lucknow( 27.07.09)
The number of internet users worldwide is
expected to touch 2.2 billion by 2013 and India is
projected to have the third largest online population
during the same time, says a report.
"The number of people online around the world
will grow more than 45 per cent to 2.2 billion users by
2013 and Asia will continue to be the biggest Internet
growth engine.
"... India will be the third largest internet user base
by 2013 - with China and the US taking the first two
spots, respectively," technology and market research
firm Forrester Research said in a report.
Globally, there were about 1.5 billion Internet
users in the year 2008.
Titled 'Global Online Population Forecast, 2008 to
2013', the report noted that emerging markets like India
would see a growth of 10 to 20 per cent by 2013.
"In some of the emerging markets in Asia such as The report said apart from China, other Asian
China, India and Indonesia, the average annual growth countries with substantial online growth rates include
rates will be 10 to 20 per cent over the next five years India, Indonesia, Pakistan, and the Philippines.
(2008-13)," the report said. India's number of Internet "By contrast, growth rates in some of the more
users was estimated to be 52 million in 2008. mature markets such as Japan and South Korea will rise
In the next four years, about 43 per cent of the by less than two per cent each year," it added.
Internet users globally are anticipated to reside in Asia 2 Now, send e-mail greetings to loved ones from
and neighbouring China would account for about half of beyond the grave
that population. New range of internet services have made it
"... the shifting online population and growing possible for users to now send e-mail greetings to their
spending power among Asian consumers means that loved ones from beyond the grave.
Asian markets will represent a far greater percentage of These online services are being used to send
the total in 2013 than they do today," Forrester Research birthday wishes to friends, congratulations on a
Senior Analyst Zia Daniell Wigder said. graduation, and to keep spouses happy.
According to the report, the percentage of internet Before they die, internet users can programme the
users in Asia would increase to 43 per cent in 2013 from sites to fire off posthumous e-mails on key dates each
38 per cent in 2008. year.
"The percentage of the global online population People using these services can even set up their
located in North America will drop from 17 per cent to 13 own online memorial in advance.
per cent between 2008 and 2013, while Europe's share The messages go live when the website is alerted to
will shrink from 26 per cent to 22 per cent. a subscriber's demise.
"The percentage of those in Asia will increase from According to reports, these websites are part of a
38 per cent to 43 per cent and Latin America will remain growing trend for "digital wills".
steady at about 11 per cent of the global total," Forrester Though not legally binding, the online wills are
noted. aimed at ensuring that next of kin can gain full access to a

33 July-September-2009
 e-track
dead person's musings on sites like Facebook and
Hotmail, as well as passwords for internet banking and
other e-documents.
One Simon Gilligan, 63, from Littleport,
Cambridgeshire, has made a digital will on
lastmessagesclub.co.uk, which launched this month, in
tandem with a paper will.
"It has things like personal messages to my wife
and children and various details of my bank accounts, e-
mail and my Facebook account," Times Online quoted
him as saying.
"I did it because I have heard of situations where
people have died and it has taken a long time to get the
information. This will make it easier for my wife and
children.
"I would definitely consider setting it up to send
another e-mail out to my family on a birthday. That
would choke everybody up," he added.
Source- in.news.yahoo.com
PNB launches PNBIL Online Deposit Scheme
Mr. Nagesh Pydah Executive Director, Punjab
National Bank, India launched PNBIL Online Deposit
Scheme on 18 August 2009 to send Money from UK to
India .
PNBIL is a UK incorporated banking subsidiary of
Punjab National Bank, India (PNB). PNBIL is
Authorized and Regulated by the Financial Services
Authority. PNBIL is a member of the Financial
Ombudsman Service (FOS) and the Financial Services
Compensation Scheme (FSCS). PNBIL is authorized
for accepting deposits by the Financial Services
Authority (FSA).
Nokia launches Nokia Money
Nokia is hoping to cash in on the mobile financial
services market with the launch of Nokia Money.
The service
will give users
access to "basic
financial services"
and is aimed at the
billions of people
around the world
who currently have
July-September-2009
no bank account.
Mobile financial services is expected to
mushroom over the coming years with the number of
global mobile banking transactions predicted to ramp up
from 2.7 billion in 2007 to 37 billion by 2011, according
to recent research - driven largely by take-up in the
developing world.
According to Nokia, the new
service will allow users to make person-
to-person payments using their mobile as
well as pay bills and buy goods and
services.
Nokia Money is based on
Obopay's payments platform - a
company Nokia invested in back in
March - and is expected to go live early next year.
Source : www. Silicionindia.com
Google fixes two major vulnerabilities in chrome
Google has fixed two high-severity vulnerabilities
in the stable version of its
Chrome browser that could have
let an attacker remotely take over
a person's computer.
With one attack on
Google's V8 JavaScript engine,
malicious JavaScript on a
website could let an attacker gain access to sensitive data
or run arbitrary code on the computer within a Chrome
protected area called the sandbox, Google said in a blog
post Tuesday. With the other, a page with XML-encoded
information could cause a browser tab crash that could let
an attacker run arbitrary code within the sandbox.
Chrome 2.0.172.43 fixes the issues and another
medium-severity issue. Once Chrome is installed, it
retrieves updates automatically and applies them when
people restart the browser.
Google won't release details of the vulnerabilities
until "a majority of users are up to date with the fix",
engineering program manager Jonathan Conradt said in
the blog post.
Source www.siliconindia.com
34
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It is not about letting your customers know how much you know; Its about letting your customers
know how much you care”
PNBIIT organized seminar on CRM
and Business Intelligence
Information Technology has brought about a paradigm shift in the way we serve the people. An innovation
through the support of technology has given some organisations a competitive edge. Keeping this in mind, Punjab
National Bank Institute of Information Technology (PNBIIT) has been conducting various training programs,
seminars and workshops on banking, finance and insurance with information technology as the mainstay.
As a sequel, PNBIIT has organized a seminar on CRM and Business Intelligence on 26 September 2009. The
Seminar was inaugurated by Mr. B L Gupta., Circle Head, PNB Lucknow There were three speakers for the captioned
subjects. Namely Dr. Ankit Mehrotra from Jaipuria Institute of Managemnt, Mr. Ambrish Mishra , the Officiating
Director PNBIIT and Mr. Pramod Dikshit , Deputy Director(IT) from PNBIIT Lucknow.
Shri Gupta, in his key note address said there were many definitions for CRM and all of them were by and large
correct. It was important that the client not the product was in the centre. He told that the CRM definition we should use
the following -
“Having the right offer for the right client, at the right time via the right channel”
Mr. Gupta also shared his pragmatic approach of Banking CRM in an informal conversational style with the
participants belonging to various other public sector Banks. His practical recommendations, to the participants of
banks that are planning to implement CRM in their respective banks shortly, will go a long way.
Dr. Ankit Mehrotra , expressed his academic views about the CRM. He apprised the members that CRM was
much more than a technological solution. It was a strategy amalgamated in the business model of the banks and clearly
focused to value generation. He further said that CRM was a key element of differentiation that led the Banks develop
its customer base.
Mr. Ambrish Mishra addressed the issues related to the implementation of the CRM in Banks and the
challenges associated with it. He also narrated the importance of data cleaning and MIS correction in CBS data as also a
need for obtaining Customer Information in war footings and capturing the same in database in systematic and
sustainable manner.
Mr. Pramod Dikshit, a techno-academician explained that Technology was the nucleus of CRM that was
evolving into a commodity piece within CRM strategies. He also threw light on the importance of clean and accurate
data in the historical databases i.e Data Warehouse from where CRM gets emanated in the form of Business
Intelligence.
Mr. Kamal Kant, The Chief Manager, PNBIIT Lucknow concluded and summed up the pogramme.

35 July-September-2009
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punjab national bank institute of

information technology, Lucknow
Announces
ADVANCED DIPLOMA IN BANKING TECHNOLOGY
FOCUSED ON INFORMATION TECHNOLOGY & BANKING
PNBIIT has been established by Punjab ELIGIBILITY :
National Bank (PNB) as an autonomous MCA/BE / B. Tech (Computer Science
society registered under Societies Electronics and Communication or
Registration Act to promote Training and IT/M.Sc. (IT) with minimum 55% marks.
Education in BFI sector with a focus on IT. Age : Should not be more than 26 years of
OBJECTIVES : age as on 01.10.2009
The ever changing IT based Banking
GENERAL INSTRUCTIONS :
environment now requires IT officers with
knowledge of both IT as well as Banking,
The application form alongwith the
Banks have been finding it difficult to recruit brochure may be obtained from the
such resources with this ideal combination in Institute by depositing / sending a
order to bridge this gap PNBIIT offers Demand Draft of Rs. 100/- in favour of
Advanced Diploma in Banking Technology. PNBIIT payable at Lucknow or
downloaded from website
PROGRAMME AT A GLANCE :
www.pnbiit.com. The applicants may
l Six months campus based studies.
visit the Institute's website for more
l Industry based focus course curriculum.
l Faculty resources with sound industry detailed information.
exposure.
l Strong industry academic interface.

Vibhuti Khand, Gomti Nagar, Lucknow-226010 UP

Ph.: 0522-2721174, 2721441, 2721442 Mb. 09335925126 Fax-0522-2721201
website www.pnbiit.com E-mail : bankingtech@pnbiit.co.in
July-September-2009 36