E-Banking Question Solve

Prepared by: S.M. Norunnobi

EXAMINATION - June-July2013
Question 1(a): What is E-Banking? Write down the names of different Electronic
Delivery Channels used in E-Banking. Marks:6
Answer:
E-Banking:
E-banking is a banking system that enables a bank to conduct a range of financial
transactions through the electronic means. The E-banking will typically connect to or be
part of the core banking system operated by a bank and is in contrast to branch banking
that was the traditional way banking services. Traditional banking was ledger banking
which was very much time consuming for the employees and customers. But E-banking
is that exclusive system, whereas all banking activities are being accomplished with the
aid of electronic mechanism within very short time. Computer is the main tool to conduct
E-banking. Server, internet, intranet are used to co-ordinate the financial transactions.
Now a day, mobile is used in banking which is called mobile banking. So, mobile is also
a tool of E-banking. As Automated Teller Machine (ATM) and deposit machine are being
used in the financial service. Therefore, ATM and deposit machine also the part of E-
banking.
Different Electronic Delivery Channels:
There are different electronic delivery channels to deliver financial services, which is
almost clear from the above discussion. Different electronic delivery channels are-
1. Online cash deposit. That is branch to branch remote cash deposit.
2. Online cash withdrawal. That is cash withdrawal from remote branch.
3. Online fund transfer.
4. Internet Banking. Banking through the internet.
5. Mobile banking.
6. Debit/ATM card and ATM (Automated Teller Machine ).
7. Deposit Machine.
8. Credit card.
9. POS purchase etc.

Question 1(b): Discuss about e-Commerce and its business models. Give one
example for each of B2C, P2C and G2P e-Commerce sites of Bangladesh.
Marks:6
Answer:
e-Commerce:
Electronic commerce, commonly written as e-Commerce, is the trading or facilitation of
trading in products or services using computer networks, such as the internet. e-
 Commerce draws on technologies such as mobile commerce, electronic fund transfer,
supply chain management, internet marketing, online transaction processing, electronic
data interchange, inventory management system and automated data collection systems.
Modern e-Commerce typically uses the World Wide Web for at least one part of the
transaction’s life cycle. Although it may also use other technology such as e-mail.
E-Commerce business model can generally categorized in following model.
 B2B – Business to Business.
 B2C – Business to customer/consumer.
 C2C – Consumer to consumer.
 C2B – Consumer to business.
 B2G - Business to government.
 G2B – Government to business.
 G2P - Government to public.
 P2G – Public to government.
Examples:
B2C: Business to Customer. www.bikroy.com. Customer can buy goods or services
seeing the advertisement in this site. Advertisement providing is the business of
bikroy.com.
P2C: Production to Consumer. www.bdnews24.com. BDNEWS produces the news and
people read it using internet.
G2P: Government to Public. www.passport.bd.gov. This site is used to provide passport
to the public from the government.

Question 1(c): What are the advantages and disadvantages of Centralized and
Decentralized Database Management System? Which one do you prefer to use in
your bank and why? Marks: 8
Answer:
Advantages and disadvantage of centralized and Decentralized Database
Management System in IT operation of a bank:
A centralised database holds all data on a central computer such as a mainframe computer
or server. On the other hand a decentralized/distributed database is a database in which
portions of the database are stored on multiple computers within a network.
Advantage of Centralised Database:
 Data transformation, data can be easily transposed, transformed and managed by
experienced programming and statistical staff in Centralised Database.
 Data security, Data is stored securely with documentation and administration of access
authorization.
 Data sharing, data dumps can be created in requested formats for sharing with other
information system upon request.
 Disaster recovery, data are backed up on a regular basis and can be restored in case of
server failure or occurrence of disasters.
 Disadvantage of Centralised Database:
 If central server fails, the database system fails totally.
 It is not easy process to get back crashed data.
 The cost of data communication may more high than the distributed database.
Advantage of Decentralized database:
 Reliability, if one of the sites crashes, the system will keep running with the other sites.
 Speed, it is faster because the information is distribute and not packed as a whole.
 Open system, the system could connect to networks to make it bigger and accessible
everywhere.
Disadvantage of Decentralized database:
 Networking, if there is a problem with the network, then problems arise from using the
database.
 Proper hardware and software, the database needs proper hardware and software to run
properly, this is expensive to get.
 Troubleshooting, there might be connection error that could affect the use of the database
by other users.
These are the Advantages and disadvantage of centralized and distributed Database
Management System in IT operation of a bank:
Which one is preferable and why:
Centralized database is preferable. Because it’s benefits are more than decentralized
database systems.

Question 2(a): What is Computer Network? Write down the benefits and
applications of networking technology in banking system. Marks: 10
Answer:
Computer Network:
Computer Network is a telecommunication which allows computer to exchangedata. In
computer networks, networked computing devices exchange data with each other
along network link (data connections). The connections between nodes are established
using either cable media or wireless media. The best-known computer network is
the Internet. Computer networks support an enormous number of application such as
access to the World Wide Web, video, digital audio, shared use of aapplication and
storage servers, printers, and fax machines, and use of email and instant
messaging applications as well as many others.
Benefits and applications of networking technology in banking system:
There are a lot benefits and application of networking technology in banking system.
Networking technology has made easy the banking transaction and all other activities.
Such as-
a) Entry the transaction as data from different computer to a central computer server.
b) Online fund transfer from one branch to another branch.
c) Cash deposit and withdraw from one branch to another branch.
 d) ATM transaction.
e) Printing the document from one computer to another computer by network printer.
f) Transferring the data and document etc.
g) Electronic fund transfer by BEFTN.
h) SWIFT service with international banks.
These all are the example of benefits and application of networking technology in
banking system.

Question 2(b): Distinguish among LAN, MAN and WAN. Name the basic devices
required to set-up LAN in a bank branch. Marks:10
Answer:
The distinguishing among LAN, MAN and WAN is cleared from the discussion below:
LAN:
1. LAN (Local Area Network) is a group of computers and other network devices which are
connected together.
2. All the devices that are part of LAN are within a building or multiple building.
3. LAN network has very high speed mainly due to proximity of computer and network
devices.
4. LAN connection speeds can be 10mbs or 100 Mbps or 1000Mbps. Also
5. LAN uses Guided Media;
MAN:
1. MAN (Metropolitan Area Network) is a larger network of computers and other network
devices which are connected together usually spans several buildings or large
geographical area.
2. All the devices that are part of MAN are span across buildings or small town.
3. Man network has lower speed compared to LAN.
4. MAN connection speeds can be 10 Mbps or 100Mbps.
5. MAN uses Guided Media or Unguided media.
WAN:
1. WAN (Wide Area Network)is a group of computers and other network devices which are
connected together which is not restricted to a geographical location. Internet is WAN.
2. All the devices that are part of WAN have no geographical boundaries.
3. WAN speed varies based on geographical location of the servers. WAN connects several
LANs.
4. WAN connection speeds can be 10 Mbps or 100Mbps.
5. WAN mainly uses Guided Media or Unguided media. Its long distance communications
which may or may not provide by public packet network.
Basic devices required to set-up LAN in a bank branch:
1. Network Cable 2. Network Adapter 3. Power Supply
4. Connector 5. Router/hub/switch 6. Network Software

Question 3( a) Distinguish between System Software and Application Software

giving four examples of each. Marks: 8
Answer:
Distinguishing between System Software and Application Software:
System software:
The programs and the file that comprises the operating system are called system software.
These files include configuration system preferences, system services, libraries of
functions and the drivers for the hardware installed on the computer. The computer
programs in system software include compliers, system utilities, assemblers, debuggers
and file management tools. Systems software are installed with the installing of operating
system. System software runs at most basic level of the computer. It just creates a
graphical user interface thorough which the user can interact with hardware with the help
of operating system. System software just runs at the back so we don’t need to bother
about it. It provides an environment to run application software and controls the computer
as well as the applications installed on the machine.
Application software:
The subclass of a computer program which utilizes the capabilities of computer is called
application software. There is a common user interface in each application suite which
makes it easier for the user to learn different applications. In some cased, such as
Microsoft Office, the various application programs have the ability to interact with each
other. This facility is very handy for the user. Application software cannot run without
the presence of system software. That means, System software contains the application
software.
Four Examples:
SL System software Application software
1 Windows Media Player Microsoft Office
2 Windows Movie Maker Adobe Photoshop
3 Notepad Adobe Illustrator
4 Calculator Acrobat Reader
Question 3(b): What is Operating System (OS)? Name at least two OS which are
using in desktop Pc. Define BIOS. Marks: 6
Answer:
Operating System:
An operating system (OS) is a set of computer program that manages the
hardware and software resources of a computer. At the foundation of all system
software, the OS performs basic tasks such as controlling and allocating
memory, prioritizing system requests, controlling input and output devices,
facilitating networking, and managing files. It also may provide a graphical user
interface for higher level functions.
In brief, Operating System is a software program that acts as an interface
between the user and the computer. It is a software package which allows the
computer to function.
Names of two Operating System:
 LINUX
 Windows
Definition of BIOS:
BIOS represents the Basic Input Output System. BIOS is the built in software that
determines what a computer can do without accessing programs from a disk. This is the
program a personal computer’s microprocessor uses to get the computer system started
after turning it on. It also manages data flow between the computer’s operating system
and attached devices such as the hard disk, video adapter, keyboard, mouse and printer.
Question 3(c): What are the differences between Desktop and Laptop
computer? Mark
s: 6
Answer:
Differences between Desktop and Laptop computer:
Desktop Computer Laptop computer
Desktop computer is not easily portable. Laptop computer is easily portable.
The size of desktop computer Laptop computer is comparative small
comparatively larger than laptop. size than desktop.
Desktop computer takes large space. Laptop takes small space.
Desktop computer is easily repairable. Laptop computer is not easily repairable.
Desktop computer requires UPS for Laptop computer has attached battery for
power backup. power backup.
Usually desktop computer’s memory size Laptop computer’s memory is generally
becomes large. small.

Question 4(a): What do you mean by Database and DBMS? Who is DBA? Discuss
the role of DBA in DBMS. Marks: 12
Answer:
Database and DBMS:
Formally, a database refers to a set of related data and the way it is recognized. It is an
organized collection of data, such as the collection of schemes, tables, queries, reports,
views and other objects. The data are typically organized to model aspects of reality in a
way that supports processes requiring information.
DBMS represents Database Management System. It is a computer software application
that interacts with the user, other applications, and the database itself to capture and
analyze data. A general-purpose DBMS is designed to allow the definition, creation,
querying, update, and administration of databases.
Who is DBA:
A DBA (Database Administrator) is that person or group who directs or performs all
activities related to maintaining a successful database environment. DBA responsibility
include designing, implementing, and maintaining the database system; establishing
policies and procedures pertaining to the management, security, maintenance, and use of
 the database management system and training employees in database management and
use. A DBA is expected to stay abreast of emerging technologies and new design
approaches. Typically a DBA has both a degree in Computer Science and some on the
job training with a particular product. A DBA is expected to have experience with one or
more of the major database management products, such as SQL (Structured Query
Language), SAP and Oracle-based database management software.
Role of DBA in DBMS:
Database Administrator (DBA) is the in charge for implementing DBMS in organization.
The role of DBA in this regard is described below:
1. To make decision concerning the content of the database.
2. To Plan about storage structure and access strategies.
3. To provide support to users.
4. To define security and integrity checks.
5. Interprets backup and recovery strategies.
6. Monitoring performance and responding to changes in requirements.
These are the main roles of Database Administrator in Database Management System.

Question 4(b): What do you mean by Database Server Clustering? Marks:8

Answer:
Database Server Clustering:
Database Server Clustering refers to the ability of several servers or instances to connect
to a single database. It takes different form, depending on how the data is stored and
allocated resources. In another words, database server clustering is actually a mode of
synchronous replication between two or possibly more nodes with an added functionality
of fault tolerance added to system.
Database Clustering offers two major advantages, especially in high volume database
environments:
1. Fault tolerance: Because there is more than one server or instance for users to connect
to, clustering offers an alternative, in the event of individual server failure.
2. Load balancing: The database clustering feature is usually set up to allow users to be
automatically allocated to the server with the least load.
There are two main way of clustering:
1. Master-Master (or multi-master) replication: Any server can update the database. It is
usually taken care of by a different module within the database. It is flexible and it can
support the failure of any server while still having the database updated. But it is very
hard to do well, and some systems lose ACID properties when in this mode of
replication.
2. Master-slave replication: There is only a single copy of authoritative data, which is the
pushed to the slave servers. It is easier to do than multi-master and it usually preserve
ACID properties. But it is fewer faults tolerant, if the master dies, there are no further
changed in the slaves.
 Question 5(a): What is Automation? How the banking industry can be benefited
from
Automation? Marks:
8
Answer:
What is Automation:
Automation is the technique, method, or system of operating or controlling a process by
highly automatic means, as by electronic devices, reducing human intervention to a
minimum. The biggest benefit of automation is that it saves time and labour, however, it
is also used to save energy and material and to improve quality, accuracy and precision.
Automation has been achieved by various means including mechanical, hydraulic,
pneumatic, electrical, electronic devices and computers, usually in combination. In this
modern age banks, hospitals, modern factories, airplanes and ships typically use all these
combined techniques of automation.
How the banking industry can be benefited from Automation:
The banking industry is being benefited instantly from Automation like this way.
1. Improving efficiency: Automation makes banking operations more efficient in
processing transactions. It reduces the risks of human error. For instance, people can
make withdrawals using ATMs.
2. Lowering operation cost: Automation helps to reduce costs in the areas of hiring staff,
training employees, purchasing office equipments and paying for other physical overhead
cost.
3. Increasing productivity: Automation in banking business helps to increase
productivity. Because it eliminates the tedious, repetitive and cumbersome tasks such as
paperwork often associated with the banking process.
4. Improving personalization: Increasing personalization boosts customer response and
conversion rates and increases marketing investment.
5. Enhancing flexibility: Automation can help banks become more flexible so that they
can adjust instantly to changing banking conditions within or outside the country.
6. Saving time: Automation helps to save the time of regular activities. Because
computerized systems do it more quickly than previous manual system.
7. Saving energy: Automation saves the human energy in the banking industry both of
employees and customers.
8. Reducing difficulties: Automation has reduced the difficulties in the banking industries,
such as to verify a customer’s signature, we need not to open paper file. We can verify it
seeing the signature in the computer within very short time.
Thus banking industries are being benefited from Automation.

Question 5(b): What is Server? What are the differences between Server and
Pc? Marks:6
Answer:
What is Server:
 A server is a computer program that provides service to other computer programs. It
accepts and responds to requests made by another program. In another terms, a server is a
computer that provides data to other computers. It may serve data to systems on a local
area network (LAN) or a wide area network (WAN) over the internet.
Many types of servers exist, including web servers, mail servers, file servers etc.

Servers are used to manage network resources, For example, a user may set up a server to
control access to a network, send/receive email, manage print jobs or host a website.
Differences between Server and Pc:
Server PC
A server manages all the network A PC manages only it’s own resources
resources. (data).
A server usually runs 24 hours. Because it
A PC is designed to function normally for
is designed like this way to manage, store,
using operating system an desktop
send and process data. applications.
The server’s memory capacity is very The PC’s memory capacity is small
large. comparative to server..
The trouble of general PC can’t affect the
The trouble of server can affect the
activities of server. regular activities of a PC.
PC can serve one person at a time. Server can serve many persons
simultaneously.
Question 5(c): Discuss about the operational procedure of on-line
banking.
Marks: 6
Answer:
Operational procedure of on-line banking:
Online banking service is provided through the intranet and internet to the customer.
The operational procedure of online banking is given below.
 The procedure, when an employee provides online service to customer through the in
house core banking system (CBS):
 Every employee has a user ID and password to log in the CBS. He/she will enter in
CBS with his/her ID and password.
 Every branch has a code number. The employee will input the branch code in the
system to enter in the remote account for transaction or any other services.
 The procedure, when a client want to get service through the internet:
 Firstly, that client is to be registered by user ID and password with the bank to get
internet banking facility.
 After being registered, client can enter to his/her account and get the provided facility
such as online fund transfer, electronic fund transfer, view the balance and statement etc.
  For any kind of transaction using internet banking, client will be verified by two factor
authentication.
These are the procedures of online banking.

Question 6(a): Write down the comparison among Fibre Optics, Radio Link and
Satellite Transmission System. Marks: 6
Answer:
Comparison among Fibre Optics, Radio Link and Satellite Transmission System
Fibber-optics is a method of transmitting information from one place to another by
sending pulses of light through an optical fibre. The light forms an electromagnetic
carrier wave that is modulated to carry information. Because of its advantages over
electrical transmission, optical fibbers have largely replaced copper wire communications
in core networks in the developed world. Optical fibre is used by many
telecommunications companies to transmit telephone signals, Internet communication,
and cable television signals.
The process of communicating using fibre-optics involves the following basic steps:
 Creating the optical signal involving the use of a transmitter,
 Relaying the signal along the fibre,
 Ensuring that the signal does not become too distorted or weak,
 Receiving the optical signal, and converting it into an electrical signal.
Radio Link is an automatic repeat request (ARQ) fragmentation protocol used over a
wireless (typically cellular) air interface. Mobile companies use radio link to provide
communication links between stations in a network supporting a service.
A RL transport cannot ask the air interface to provide a certain payload size. Instead, the
air interface scheduler determines the packet size, based upon constantly changing
channel conditions, and up calls RL with the chosen packet payload size, right before
transmission.
Satellite Transmission is a networking system that relays and amplifies radio
telecommunications signals via a transponder; it creates a communication channel
between a source transmitter and a receiver(s) at different locations on Earth. Satellite
Transmission are used for television, telephone, radio, internet, and military applications.
The comparison among Fibre Optics, Radio Link and Satellite Transmission System is
clear from the above distinct description.

Question 6(b): Discuss about the operational procedures of BACPS and

BEFTN. Marks:
8
Answer:
Operational procedure of BACPS:
 Clients present the instrument to presenting bank.
 Presenting bank receive the instrument and examine genuineness.
 Sorting the instrument is the next step.
 Stamping the instrument.
 Capture of image and making data.
 DIN (Document Identification Number) endorsement.
 Submitting to the BACPS and acceptance by BACPS.
 Participating bank receive the outward presentment.
 Image quality analysis and item processing by participating bank.
 Reconciliation of outward presentment.
 Payment processing by paying bank’s branch.
 Return the instrument, if there any mistake.
Operational procedure of BEFTN:
 Every bank account number in the scheduled bank of Bangladesh has 17 digits, where
bank code, branch code, account code is contained.
 Every bank’s branch has a routing number.
 Every bank use a software to conduct the business which is connected with Bangladesh
Electronic Fund Transfer Network (BEFTN).
 The bank account number and routing number is to input in the system.
 Execution the sending to BEFTN.
 After checking the name, account, the transfer of fund becomes completed.
Question 6(c): Distinguish among Credit Card, Debit Card and Pre- paid Card.
Marks:6
Distinguishing among Credit Card, Debit Card and Prepaid Card:
Credit Card: Credit Card is a loan card. The client spends money or withdraws
cash money from ATM on credit through the credit card for a specific time period
up to a specific limit. Client can use this card at the POS centre to purchase
goods or services. Customer return his/her debt to card provider bank before or
at payment due date. The bank takes service charge for this service from the
customer. Moreover interest based banks take interest on the due amount.
Debit Card: Debit card is to be used to debit cash through ATM (Automated
Teller Machine) from one’s own account. If anyone’s account does not contain
enough balance, he/she cannot withdraw money by debit card.
Pre-paid Card: Prepaid card is generally used in mobile phone. A prepaid
mobile phone provides most of the services offered by a mobile phone operator.
These cards are stamped with a unique code (often under a scratch-off panel)
which must be entered into the phone in order to add the credit onto the balance.
Through electronic reloading where a specially designed SIM card is used to
reload a mobile phone by entering the mobile number and choosing the amount
to be loaded.

7. a) Define BCP. Why BCP is essential for the banking industry? As per guideline
of Bangladesh Bank describe a standard BCP that can protect a
bank Marks: 12
Answer:
 Definition of BCP: A business continuity plan (BCP) is a management process to ensure
the continuity of businesses in the event of a disaster. It is a process of developing
advance arrangements and procedures that enable an organization to respond to an event
in such a manner that critical business functions continue without interruption or essential
change. Business Continuity Plan is the activity performed by an organization to ensure
that critical business functions will be available to customers, suppliers, regulators, and
other entities that must have access to those functions. BCP will facilitate the
identification of how quickly essential business units and/or processes can return to full
operation following a disaster. It will delineate the business impact of disaster scenarios
on the ability to deliver product or services.
Why BCP is essential for a bank: BCP is essential-
1. For managing a disaster that affects the day to day operations of the bank.
2. For critical disaster events and their recovery information.
3. To provides guidelines for a disaster declaration that will result in the execution.
4. To ensure that maximum possible service levels are maintained.
5. To minimize the impact (risk) of interruptions.
6. To estimate the financial impacts for each business unit, assuming a worstcase
scenario.
7. To define the estimated number of personnel required for disaster recovery operations.
8. To identify bank’s business unit processes and the estimated recovery time frame for
each business unit BCP is essential.
9. To protect employees/assets/reputation of the bank.
10. To meet legal and regulatory requirements.
How a standard BCP can protect a bank as per Guidelines of Bangladesh Bank:
A standard BCP can protect a bank in crucial moment to continue its business within a
reasonable time. Modern banking is totally dependent on Information Communication
Technology (ICT). In this regard Bangladesh Bank introduces Guidelines for scheduled
banks of Bangladesh. How a standard BCP as per Guidelines of Bangladesh Bank can
protect a bank is described below.
(1) Covering Operational Risk: A standard BCP cover the operational risk. Because
Bangladesh Bank Guideline provides that policy about it.
(2) Surviving in crucial moment: A business institution or company can survive in crucial
situation by a standard Business Continuity Plan (BCP).
(3) Re-establish Business: Business can be re-established if a BCP is ready for accidental
condition.
(4) Safe Data Backup: BCP policy provided by Bangladesh Bank Guideline has ensured
safe data backup.
(5) Restoring Data: Loosen data can be restored by a standard BCP.
(6) Preparation for disaster: BCP is a preparation for disastrous situation.
(7) Recovery of Disaster: Standard BCP helps to recover the loss of disaster.
(8) Prepared Action Plan: BCP is a prepared action plan in disaster which indicates the
alertness for disturbing situation.
(9) Testing effectiveness: BB Guideline has suggested to test the effectiveness of BCP.
(10) Supervising the Condition: Preparation according to BCP is required to be
supervised frequently to apply in proper time.
Finally it can be stated that, it is cleared by above discussion, how a standard BCP as per
Guideline of Bangladesh Bank can protect.
Question 7(b): What are the differences between DC and DRS? What is the relation
of DRS with BCP? Marks: 8
Answer:
Difference between DC and DRS:
SL DC DRS
1 DC = Data Centre DRS= Disaster Recovery Site
2 Data Centre generally is situated in DRS must be situated at a 10
head office. kilometres (radius) distance from
data centre as per BB Guidelines.
3 The function of DC is to store data. The function of DRS to support in
disastrous situation.
4 DC is active in all time for data DRS is active in accidental
storage. situation.
5 The DC is preliminary data storage. The DRS is secondary data
storage.
Relation of DRS with BCP:
The relation of DRS (Disaster Recovery Site) with BCP is very close. A bank without
DRS is like a company without business plan. Every organization has critical functions
and system that must be protected from unplanned events. DRS is the secondary data
storage to support in the failure of Data Centre. It is to be situated minimum 10 km
distance from data centre as per BB guideline. DRS can be called as the data archive
centre. Disaster may occur suddenly before taking any precautious preparation. There are
different types of disaster such as natural, technical, men made etc. Disaster Recovery
Site is the preparation for that accidental situation.
Finally we can say from the above discussion, the relation of DRS with BCP is
undeniable in respect of business continuity plan (BCP) of banking industries in the
disastrous situation.

Question 8(a): Discuss about MIS in banks. Describe how a bank can be benefited
from on-line MIS. Marks: 5
Answer:
MIS:
The acronym of MIS is Management Information System. It is a computer based
information system where management related all information is gathered. It broadly
refers to a computer based system that provides managers with the tools to organize,
evaluate and efficiently manage departments within an organization. In another words, a
management information system (MIS) is a computerized database of financial
information organized and programmed in such a way that it produces regular reports on
operations for every level of management in a company.
How a bank can be benefited from on-line MIS:
The MIS represents the electronic automation of several different kinds of counting,
tallying, record-keeping, and accounting. The MIS satisfies the diverse needs through
variety of systems such as query system, analysis system, modelling system and decision
support system. It helps the middle management in short term planning, target setting and
controlling the business functions. The MIS in an organization can be compared to the
role of heart in the body. It helps the clerical person in the transaction processing and
answers the queries on the data pertaining to transaction. The top level management can
get help in goal setting, strategic planning and evolving the business plans and their
implementation. So, a bank can get a lot of benefits from on-line MIS.
Question 8(b): Write short notes on the following: Marks: 6x1.5=9
i) DOS attack; ii) Smart Card; iii) USSD; iv) Mobile Financial Service;
v) Green Banking; and vi) Financial Inclusion and Automation.
Answer:
i) DOS attack; It means Denial-of-Service attack. DOS is an attempt to make a machine
or network resource unavailable to its intended users, such as to temporarily or
indefinitely interrupt or suspend services of a host connected to the Internet.

ii) Smart Card; A smart card is a device that includes an embedded integrated circuit
chip (ICC) that can be either a secure microcontroller or equivalent intelligence with
internal memory or a memory chip alone. The card connects to a reader with direct
physical contact or with a remote contactless radio frequency interface.

iii) USSD;Unstructured Supplementary Service Data (USSD) is a Global System for

Mobile(GSM) communication technology that is used to send text between a mobile
phone and an application program in the network.
iv) Mobile Financial Service: It is a financial inclusion program to provide banking
service to unbanked peole through the mobile phone.
v) Green Banking; Green banking refers to how environmentally friendly the bank is,
and how committed to green and ethical policies they are.
vi) Financial Inclusion and Automation: The steps and processes to include unbanked
people in the banking service is called Financial Inclusion.
Automation is the use of various control systems for operating equipment and
applications with minimal or reduced human intervention. Such as online banking, core
banking system (CBS) etc.

Question 8(c): Write down the elaboration of the following: 6x1=6

i) SWIFT: Society for WorldWide Inter Bank Financial Telecommunication
ii) VPN: Virtual private network (VPN)
iii) MICRL: Magnatic Ink Charecter Recognition
iv) PCIDSS: Payment Card Industry Data Security Standard
v) http: Hiper Text Transfer Protocol
vi) ATM: Automated Teller Machine

EXAMINATION - March 2014

Question 1(a): What are the main components of a PC? Marks: 3
Answer:
The main components of a PC are-
i) CPU (Central Processing Unit)
ii) Monitor
iii) Keyboard
iv) Mouse etc.
The main components of CPU are processor, motherboard, RAM (Random Access
Memory), ROM, (Read Only Memory), Hard Disk etc.
Question 1(b): Name the five devices that are using to develop the 'Wide Area
Network'. Marks: 5
Answer:
Devices that are using to develop the 'Wide Area Network':
1. Network Cable 2. PC
3. Switch 4. Software device
5. Connector 6. Router
Question 1(c) Write short notes on the following: Marks: 12
a) Internet Explorer
b) Networking Technology in Banking
c) Environmental Security of Server room
Answer:
a) Internet Explorer: Internet Explorer is one of the browsing software developed by
Microsoft Corporation. It is used to access in the internet or website. Besides Internet
Explorer, many web browser are available like Mozilla Firefox, Opera etc.
b) Networking Technology in Banking: Networking Technology in Banking means the
rapid communication system using information technology among all branches of a Bank
or between Bank to Bank. This is very important for quick decision making, controlling,
and maintain the better intercommunication. Moreover Networking Technology have
made the Banking easy and shortened the lengthy process.
c) Environmental Security of Server Room: Today's network technology based world
mostly depends on internet. Server room, from which internet service is provided to
operate the all activities of modern Institute specially Bank. Server room must be air
conditioned for temperature and humidity control. Water leakage precautions and water
drainage system from Air Conditioner must be installed. Power generator must be in
place to continue operations in case of power failure. UPS must be in place to provide
uninterrupted power supply to the server. Proper attention must be given on overloading
electrical outlets with too many devices. Channel alongside the wall must be prepared to
allow all the cabling to be in neat and safe position with the layout of power supply and
data cables. Proper earthling of electricity must be ensured. Address and telephone or
mobile numbers of all contact persons (e.g. fire service, police station, service providers,
vendors and all ICT/ responsible personnel) must be available to cope with any
emergency situation.

Question 2(a): What is digital signature? What do you understand by two factor
authentication system? Marks: 8
Answer:
Digital Signature :
A digital signature is a mathematical scheme for demonstrating the authenticity of a
digital message or document. A valid digital signature gives a recipient reason to believe
that the message was created by a known sender, such that the sender cannot deny having
sent the message and that the message was not altered in transit. Digital signatures are
commonly used for software distribution, financial transactions, and in other cases where
it is important to detect forgery or tampering.
Two factor authentication
An authentication factor is an independent category of credential used for identity
verification. The three most common categories are often described as something you
know (the knowledge factor), something you have (the possession factor)and
something you are (the inherence factor). For systems with more demanding
requirements for security, location and time are sometimes added as fourth and fifth
factors.
Two-factor authentication is a security process in which the user provides two
means of identification from separate categories of credentials; one is typically a
physical token, such as a card, and the other is typically something memorized,
such as a security code. In this context, the two factors involved are sometimes
spoken of as something you have andsomething you know. A common example
of two-factor authentication is a bank card: the card itself is the physical item and
the personal identification number (PIN) is the data that goes with it.

Question 2(b): Why IT policy is important for a banking institution? Marks: 8

Answer:
The important for a banking institution:
• Protect the ICT investment of the Bank.
• Ensure the Security and Stability of the Information System.
• Prioritize information and information systems.
• Identify ICT risk and develop its mitigation process.
• Aware and train all the stakeholder of the system.
• Protect the goodwill of the Bank.
• Generate computerized MIS for prompt, accurate and quick management decision.
• Ensure the best practices (industry standard) of the usage of ICT that is not limited to
this guideline.

Question 2(c): What are the desktop policies of personal computer in banking?
Marks: 4
Answer:
1. Desktop computer must be connected to UPS to prevent damage of data and hardware.
2. Before leaving a desktop computer unattended, users should apply the “Lock
Workstation” feature.
3. Password protected screen saver must be used to protect desktop and laptop from
unauthorized access.
4. Desktop computers and monitors must be turned off at the end of each workday.
5. Other information storage media containing confidential data such as paper, files,
tapes, etc. must be stored in a secured location or locked cabinet when not in use.
6. User identification (ID) and authentication (password) must be required to access all
desktops and laptops whenever turned on or restarted.
7. Desktop and laptop computers must be configured to log all significant computer
security relevant events. (E.g. password guessing, unauthorized access attempts or
modifications to applications or systems software.)

Question 3(a): What are the difference between online and offline Ups?
Marks: 4
Answer:
Difference between online and offline Ups:
(1) Online ups is the one which in on position (both cases: power supply on&off).but in
case of offline ups is on at the time power failure.
(2) On line UPS means Supply will come from batteries on line and charging also
on OFF line UPS supply will come from batteries when main line supply fails.Batteries
will charge on line.
(3) In ONLINE UPS, the load is always connected to inverter output only in both the
cases, whether normal power supply is available or not. In OFFLINE UPS, Inverter
output is connected to load only when normal AC power supply fails, means when AC
power is available it is directly goes to output.
(4) Online UPS is the one which gives output all the time from battery whether there is
power failure or power on. You get backing from battery all the time. Offline UPS
supplies Mains to the output when power supply is regular and charges batteries as well
at the same time. When power fails it switches those batteries to produce output for
power backup.
(5) Online UPS is the one which gives output all the time from battery whether there is
power failure or power on. You get backing from battery all the time. Offline UPS
supplies Mains to the output when power supply is regular and charges batteries as well
at the same time. When power fails it switches those batteries to produce output for
power backup.
(6) Online is costly while Off-line ups is relatively less costly.

Question 3(b): Differentiate between T & T phone and IP phone. Marks: 4

Answer:
Difference between T&T phone and IP phone:
SL T&T Phone IP Phone
1 T&T Phone are linked by telephone IP phone are linked by internet cable
cable.
2 T&T phone line is used only for IP phone line is used both for internet
telephone call connection and phone call.
3 T&T phone’s extension capacity is IP phone’s extension capacity is very
very little. much.
4. T&T phone is costly comparative to IP phone is very cost saving specially
IP phone. for big business organization.
5. T&T phone can work without power IP phone cannot work without power in
in the respective premise. the respective premise.
6. To connect T&T phone. It requires IP phones do not require much
much cable/wire. cable/wire comparative to T&T phone.
The difference between T&T phone and IP phone is clear from this discussion.

Question 3(c): Write short notes on the followings IT related hardware.

i) Router ii) Firewall iii) Switch Marks: 12
Answer:
i) Router
A router is a device or, in some cases, software in a computer, that determines
the next network point to which a packet should be forwarded toward its
destination. The router is connected to at least two networks and decides which
way to send each information packet based on its current understanding of the
state of the networks it is connected to. It is located at any gateway (where one
network meets another), including each point-of-presence on the Internet. It may
create or maintain a table of the available routes and their conditions and use this
information along with distance and cost algorithms to determine the best route
for a given packet. Typically, a packet may travel through a number of network
points with routers before arriving at its destination. Routing is a function
associated with the Network layer (layer 3) in the standard model of network
programming, the Open Systems Interconnection (OSI) model. A layer-3 switch
is a switch that can perform routing functions.
ii) Firewall
A firewall is a set of related programs, located at a network gateway server that protects
the resources of a private network from users from other networks. It is anetwork security
system, either hardware- or software-based, that controls incoming and outgoing network
traffic based on a set of rules. Acting as a barrier between a trusted network and other
untrusted networks -- such as the Internet -- or less-trusted networks -- such as a retail
merchant's network outside of a cardholder data environment -- a firewall controls access
to the resources of a network through a positive control model. This means that the only
traffic allowed onto the network defined in the firewall policy is; all other traffic is
denied.
iii) Switch
A Switch (also called switching hub, bridging hub, is a computer networking
device that connects devices together on a computer network, by using packet
switching to receive, process and forward data to the destination device. Unlike less
advanced network hubs, a network switch forwards data only to one or multiple devices
that need to receive it, rather than broadcasting the same data out of each of its ports.

Question 4(a): What is BCP? Why is essential for a bank? Marks: 6

Answer:
What is BCP:
A business continuity plan (BCP) is a management process to ensure the continuity of
businesses in the event of a disaster. BCP is a process of developing advance
arrangements and procedures that enable an organization to respond to an event in such a
manner that critical business functions continue without interruption or essential change.
Business Continuity is the activity performed by an organization to ensure that critical
business functions will be available to customers, suppliers, regulators, and other entities
that must have access to those functions. BCP will facilitate the identification of how
quickly essential business units and/or processes can return to full operation following a
disaster. It will delineate the business impact of disaster scenarios on the ability to
deliver product or services.
Why BCP is essential for a bank: BCP is essential-
1. For managing a disaster that affects the day to day operations of the bank.
2. For critical disaster events and their recovery information.
3. To provides guidelines for a disaster declaration that will result in the execution.
4. To ensure that maximum possible service levels are maintained.
5. To minimize the impact (risk) of interruptions.
6. To estimate the financial impacts for each business unit, assuming a worstcase
scenario.
7. To define the estimated number of personnel required for disaster recovery operations.
8. To identify bank’s business unit processes and the estimated recovery time frame for
each business unit BCP is essential.
9. To protect employees/assets/reputation of the bank.
10. To meet legal and regulatory requirements.
11. To minimize loss and legal exposure.
12. To ensure backup of Mission Critical data.

Question 4(b): What do you understand by data backup and data archival system of
a database? Marks: 7
Answer:
Data Backup:
Data Backup is the process of copying data to a different location than the original one.
The actual copy of the data is called data backup too. The purpose of data backup is to
create additional copy of the existing data. It is done as a safety precaution, in case the
original data is damaged or inaccessible for some reason. If this happens, the data can be
restored from the data backup. Making data backups can save a lot of trouble to any
business using digital data, in the long run. Imagine what will happen if there is
unrecoverable hard drive failure with the main database server used by a small software
company. If the company doesn’t have a backup of the data on this server, then entire
business is in jeopardy. If the company has a backup, the normal business processes will
be disrupted for only several hours, until the server is restored from the data backup.

Data Archival System:

Data archiving is the process of moving data that is no longer actively used to a separate
data storage device for long-term retention. Data archives consist of older data that is still
important and necessary for future reference, as well as data that must be retained for
regulatory compliance. Data archives are indexed and have search capabilities so that
files and parts of files can be easily located and retrieved. Data archives are often
confused with data backups, which are copies of data. Data backups are used to restore
data in case it is corrupted or destroyed. In contrast, data archives protect older
information that is not needed for everyday operations but may occasionally need to be
accessed.

Question 4 (c): What is DRS? Describe its importance in a bank. Marks: 7

Answer:
What is DRS:
Disaster Recovery Site is a location where an organization can relocate following a
disaster, such as fire, flood, terrorist threat or other disruptive event. This is an integral
part of the disaster recovery plan and wide business continuity planning of an
organization. The DRS mainly focuses on the IT or technology infrastructure and system
 supporting critical business functions, as oppose to business continuity, which involves
keeping all essential aspects of a business functioning despite significant disruptive
events. DRS is therefore a subset of business continuity.
Importance of DRS (Disaster Recovery Site):
The importance of Disaster Recovery Site is an unavoidable subject. A bank without
DRS is like a company without business plan. Every organization has critical functions
and system that must be protected from unplanned events. DRS is the secondary data
storage to support in the failure of Data Centre. It is to be situated minimum 10 km
distance from data centre as per BB guideline. DRS can be called as the data archive
centre. Disaster may occur suddenly before taking any precautious preparation. There are
different types of disaster such as natural, technical, men made etc. Disaster Recovery
Site is the preparation for that accidental situation.
Finally we can say from the above discussion, the importance of DRS is undeniable in
respect of business continuity plan (BCP) of banking industries.

Question 5(a): What is CBS? Write down five renowned CBS being used by
different banks in Bangladesh. Marks: 6
Answer:
What is CBS:
Core Banking System/Solution (CBS) is networking of branches, which enables
Customers to operate their accounts, and avail banking services from any branch of the
Bank on CBS network, regardless of where he maintains his account. The customer is no
more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step
towards enhancing customer convenience through Anywhere and Anytime Banking. All
CBS branches are inter-connected with each other. Therefore, Customers of CBS
branches can avail various banking facilities from any other CBS branch located any
where in the world. These services are:
 To make enquiries about the balance; debit or credit entries in the account.
 To obtain cash payment out of his account by tendering a cheque.
 To deposit a cheque for credit into his account.
 To deposit cash into the account.
 To deposit cheques / cash into account of some other person who has account in a
CBS branch.
 To get statement of account.
 To transfer funds from his account to some other account – his own or of third
party, provided both accounts are in CBS branches.
 To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount
shall be online debited to his account.
 Customers can continue to use ATMs and other Delivery Channels, which are also
interfaced with CBS platform. Similarly, facilities like Bill Payment etc.
Five renwond CBS being used by different banks in Bangladesh
1) Islami Bank Bangladesh Ltd.- eIBS
2) Exim Bank- T24
3) Shahjalal Bank - "BankUltimus"
4) First Security Bank- "BankUltimus"
5) Union Bank- Ababil

Question 5(b): What are the advantages and disadvantage of centralized and
distributed Database Management System in IT operation of a bank? Marks: 6
Answer:
Advantages and disadvantage of centralized and distributed Database Management
System in IT operation of a bank:
A centralised database holds all data on a central computer such as a mainframe computer
or server. On the other hand a distributed database is a database in which portions of the
database are stored on multiple computers within a network.
Advantage of Centralised Database:
 Data transformation, data can be easily transposed, transformed and managed by
experienced programming and statistical staff in Centralised Database.
 Data security, Data is stored securely with documentation and administration of access
authorization.
 Data sharing, data dumps can be created in requested formats for sharing with other
information system upon request.
 Disaster recovery, data are backed up on a regular basis and can be restored in case of
server failure or occurrence of disasters.
Disadvantage of Centralised Database:
 If central server fails, the database system fails totally.
 It is not easy process to get back crashed data.
 The cost of data communication may more high than the distributed database.
Advantage of Distributed database:
 Reliability, if one of the sites crashes, the system will keep running with the other sites.
 Speed, it is faster because the information is distribute and not packed as a whole.
 Open system, the system could connect to networks to make it bigger and accessible
everywhere.
Disadvantage of Distributed database:
 Networking, if there is a problem with the network, then problems arise from using the
database.
 Proper hardware and software, the database needs proper hardware and software to run
properly, this is expensive to get.
 Troubleshooting, there might be connection error that could affect the use of the database
by other users.
These are the Advantages and disadvantage of centralized and distributed Database
Management System in IT operation of a bank:
 Question 5(c): Describe the operational procedure of BACPS and BEFTN. How
these help customer service of banks? Marks:8
Answer:
Operational procedure of BACPS:
 Clients present the instrument to presenting bank.\
 Presenting bank receive the instrument and examine genuineness.
 Sorting the instrument is the next step.
 Stamping the instrument.
 Capture of image and making data.
 DIN (Document Identification Number) endorsement.
 Submitting to the BACPS and acceptance by BACPS.
 Participating bank receive the outward presentment.
 Image quality analysis and item processing by participating bank.
 Reconciliation of outward presentment.
 Payment processing by paying bank’s branch.
 Return the instrument, if there any mistake.
Operational procedure of BEFTN:
 Every bank account number in the scheduled bank of Bangladesh has 17 digits, where
bank code, branch code, account code is contained.
 Every bank’s branch has a routing number.
 Every bank uses a software to conduct the business which is connected with Bangladesh
Electronic Fund Transfer Network (BEFTN).
 The bank account number and routing number is to input in the system.
 Execution the sending to BEFTN.
 After checking the name, account, the transfer of fund becomes completed.
How BACPS and BEFTN help customer service of banks:
 Interbank fund transfer by cheque and deposit to customer’s account.
 These save the customer’ time.
 BACPS and BEFTN save customer’s money.
 These secure the customer’s fund.
 Customer can get this service without standing in the long line.
Thus BACPS and BEFTN help customer service of banks:

Question 6 (a): What is financial inclusion? How mobile banking play an important
role in financial inclusion? Marks: 8
Answer:
Financial Inclusion:
Financial Inclusion is the delivery of financial services at affordable costs to
sections of disadvantaged and low-income segments of society. An estimated 2
billion working age adults globally have no access to the types of formal financial
services delivered by regulated financial institutions. It is argued that as banking
 services are in the nature of public good; the availability of banking and payment
services to the entire population without discrimination is the prime objective of
Financial Inclusion. The United Nations defines the goals of Financial Inclusion
as follows.
1) Access at a reasonable cost for all households to a full range of financial
services, including savings or deposit services, payment and transfer services,
credit and insurance.
2) Sound and safe institutions governed by clear regulation and industry
performance standards.
3) Financial and institutional sustainability, to ensure continuity and certainty of
investment and
4) Competition to ensure choice and affordability for clients.
Role of mobile banking in financial inclusion:
The rapid growth of mobile phone users and countrywide coverage of mobile operator's
network have made their delivery channel an important tool-of-the-trade for extending
banking services to the unbanked/ banked population. The main target of financial
inclusion is to include unbanked population in the banking financial service. Mobile
banking is playing very important role in this regard. Specially to expedite faster delivery
of remittances across the country, mobile banking is greatly used. mCash, bKash, Prime
cash, Sure cash etc are the example of mobile banking service.

Question 6(b): Write down short notes on the following. Marks: 12

i) Agent Banking ii) Virtual Banking and iii) Green Banking
Answer:
i) Agent Banking: As a part of financial inclusion and offering limited banking service
to both rural and urban unbanked people, BB initiated Agent Banking. It will provide
banking services to the bank customers through the engaged agents under a valid agency
agreement, rather than a teller/cashier. "Agent" is the owner of an outlet who conducts
banking transactions on behalf of the concerned bank.
ii) Virtual Banking:
A bank that offers services predominately of exclusively over the internet. A virtual bank
offers normal banking services, including access to one’s checking and savings accounts
and personal and business loans. Nowadays non virtual banks almost always offer virtual
banking services.
iii) Green Banking
Green Banking is a component of the global initiative by a group of stakeholders to save
the environment. Global warming is an issue that needs to be addressed and due to this
phenomenon, the state of the environment in Bangladesh is deteriorating. Because of a
Bank’s position in the economic system, implementing Green Finance as part of Green
Banking can make significant contributions to the transition to resource efficient and low
carbon industries. In response to our environmental degradation, MDB shall play an
 important role by establishing Green Banking and be a front runner as an
environmentally responsible bank.

Question 7(a): What is Alternative Delivery Channel? How does it help the banking
business? Marks: 5
Answer:
What is Alternative Delivery Channel:
Alternative Delivery Channel in banking is a distribution channel strategy used for
delivering financial services without relying on bank premises. While the strategy may
complement an existing bank branch network for giving customers a broader range of
channels through which they can access financial services. Examples ofAlternative
Delivery Channel in banking technologies are the Internet, automated teller machines
(ATMs), POS devices, deposit machine and mobile banking, agent banking, online
banking . Each of these technologies serve to deliver a set of banking services and are
part of distribution channels that may be used either separately or in conjunction to form
the overall distribution channel strategy.
How does ADC help the banking business:
1. ATM, Deposit Machines are kept in the public place like small shop. So the
general people are being inspired at banking seeing this service. It helps in
financial inclusion and expands baking business.
2. Mobile banking is an important alternative delivery channel. It is being popular
day by day for its easy and instant service which may be called banking at finger
point. It also helps in financial inclusion and expands baking business.
3. Internet banking is an interesting service to modern generation through which
total banking service are at the customer’s premise. It decreases the crowd in the
branches which helps in tip-top banking.
4. Now a day, Call Centre also is a vital part to provide 24 hours banking service,
which helps to financial inclusion.
In conclusion, we can say that ADC in playing a vital role in banking business
providing smart and green banking service.

Question 7(b): Name and describe in short five services / products being provided
by the banks as Alternative Delivery Channel. Marks: 10
Answer:
Name and description of five ADC:
1) ATM: Automated Teller Machine is and electronic telecommunications device that
enables the customers of a financial institution to perform financial transaction,
particularly cash withdrawal without the need for a human cashier. The customer is
identified by a plastic smart card with a chip that contains a unique card number and
some security information such as an expiration date. Using and ATM, customers can
access their bank accounts in order to make a variety of transactions such as cash
 withdrawals, check balances, or credit mobile phones. It is an important service which is
used as Alternative Delivery Channel vastly.
2) Deposit Machine: Deposit Machine is a self service terminal that lets customer to make
deposits in the machine box. It supplies customer an advice slip of successful deposit.
This deposit is credit to the customer’s account in that day or in the next day. Mostly,
people gathering occur in the bank’ branches for credit transaction. This gathering can be
flowed out of branch providing deposit machine outside. This is being done fast in the
banking service of Bangladesh to reduce the crowd in the banking ground.
3) Internet banking: Internet banking is an electronic banking service system that enables
customers of a bank to conduct a range of financial transaction through the website. This
service is authenticated by tow factor authentication. As a result the accuracy and
genuineness is ensured. A variety of services are provided by internet baking, such as
balance check, account statement, fund transfer, mobile balance recharge, cheque book
requisition, fund transfer in other bank using EFTN, stop payment etc. This service is
performing as an important part of Alternative Delivery Channel.
4) Mobile Banking: The rapid growth of mobile phone users and countrywide coverage of
mobile operator's network have made their delivery channel an important tool-of-the-
trade for extending banking services to the unbanked/banked population, specially to
expedite faster delivery of remittances across the country. Checking balance, seeing mini
statement, fund transfer, mobile balance recharge, cash out by ATM etc service are
available by mobile banking. Mobile banking service is being provided by the banks as
Alternative Delivery Channel significantly.
5) Call centre: A call centre can be defined as a coordinated system of people, processes,
technologies and strategies that provides access to information, resources, and expertise,
through appropriate channels of communication, enabling interactions that create value
for the customer and organization. Through call centers, valuable information about
banking are routed to appropriate people. It is generally a part of bank’s customer
relationship management. The majority of large companies use call/contact centers as a
means of managing their customer interaction. These centers can be operated by either an
in house department responsible or outsourcing customer interaction to a third party
agency.

Question 7(c): What is ecommerce? Give an example for P2G eCommerce site of
Bangladesh. Marks: 5
Answer:
E-commerce:
E-commerce means electronics commerce, which is used as buying and selling of goods
and services, or the transmitting of funds or data, over an electronic network, primarily
the Internet. These business transactions occurs business-to-business, business-to-
consumer, and consumer-to- business. Online shopping, online marketplace is the
example of e-commerce.
One example of P2G e-commerce.
 P2G e-commerce means Public to Government E-commerce.
www.hajj.gov.bd, Government gives Hajj services through this website. People are being
registered to go to Hajj by this site and Government takes fees for registration.

8. Write Short notes on the following: Marks5x4=20

1. Cloud Computing:
Cloud computing, also known as 'on-demand computing', is a kind of Internet-based
computing, where shared resources, data and information are provided to computers and
other devices on-demand. It is a model for enabling ubiquitous, on-demand access to a
shared pool of configurable computing resources. Cloud computing and storage solutions
provide users and enterprises with various capabilities to store and process their data in
third-party data centres. It relies on sharing of resources to achieve coherence and
economies of scale, similar to a utility (like the electricity grid) over a network. At the
foundation of cloud computing is the broader concept of converged infrastructure and
shared services. Cloud computing has now become a highly demanded service or utility
due to the advantages of high computing power, cheap cost of services, high
performance, scalability, accessibility as well as availability. Proponents claim that cloud
computing allows companies to avoid upfront infrastructure costs, and focus on projects
that differentiate their businesses instead of on infrastructure.
2. IVR:
Interactive voice response (IVR) is a technology that allows a computer to interact with
humans through the use of voice and DTMF (Dual Tone Multi Frequency) tones input via
keypad. In telecommunications, IVR allows customers to interact with a company’s host
system via a telephone keypad or by speech recognition, after which they can service
their own inquiries by following the IVR dialogue. IVR systems can respond with
prerecorded or dynamically generated audio to further direct users on how to proceed.
IVR applications can be used to control almost any function where the interface can be
broken down into a series of simple interactions. IVR systems deployed in the network
are sized to handle large call volumes. The purpose of an IVR is to take input, process it,
and return a result, whereas the job of an Automated Attendant is to route calls. Emerging
telephony and VoIP professionals often use the term IVR as a catch-all to signify any
kind of telephony menu, even a basic automated attendant
.
3. Prepaid Card:
 Prepaid debit card, a card that debits money from an associated account that ordinarily
requires use of a PIN code for verification
 Prepaid credit card, a card that debits money from an associated account that ordinarily
uses a signature rather than a PIN for verification.
 Stored-value card, a card that has a monetary value that is recorded as data on the card
itself, and thus can be used without online access to an associated account.
 Prepaid Phone card, A prepaid mobile phone provides most of the services offered by a
mobile phone operator. These cards are stamped with a unique code (often under a
scratch-off panel) which must be entered into the phone in order to add the credit onto the
balance. Through electronic reloading where a specially designed SIM card is used to
reload a mobile phone by entering the mobile number and choosing the amount to be
loaded. .
4. Cyber Crime:
Ccybercrime, is crime that involves a computer and a network. The computer may have
been used in the commission of a crime, or it may be the target. Dr. Debarati Halder and
Dr. K. Jaishankar (2011) define Cybercrimes as: "Offences that are committed against
individuals or groups of individuals with a criminal motive to intentionally harm the
reputation of the victim or cause physical or mental harm, or loss, to the victim directly or
indirectly, using modern telecommunication networks such as Internet (Chat rooms,
emails, notice boards and groups) and mobile phones (SMS/MMS)". Such crimes may
threaten a nation’s security and financial health. Issues surrounding these types of crimes
have become high-profile, particularly those surrounding hacking, copyright
infringement, child pornography, and child grooming. There are also problems of privacy
when confidential information is intercepted or disclosed, lawfully or otherwise.
Internationally, both governmental and non-state actors engage in cybercrimes, including
espionage, financial theft, and other cross-border crimes.
5. Intranet:
An intranet is a private network accessible only to an organization's staff. Generally a
wide range of information and services from the organization's internal IT systems are
available that would not be available to the public from the Internet. Increasingly,
intranets are being used to deliver tools, e.g. collaboration (to facilitate working in groups
and teleconferencing) or sophisticated corporate directories, sales and customer
relationship management tools, project management etc. Intranets are also being used as
corporate culture-change platforms. For example, large numbers of employees discussing
key issues in an intranet forum application could lead to new ideas in management,
productivity, quality, and other corporate issues. Intranets can help users to locate and
view information faster and use applications relevant to their roles and responsibilities.
With the help of a web browser interface, users can access data held in any database the
organization wants to make available, anytime and — subject to security provisions —
from anywhere within the company workstations, increasing employees' ability to
perform their jobs faster, more accurately, and with confidence that they have the right
information. It also helps to improve the services provided to the users.

EXAMINATION, September-2014
Question 1 (a) What is computer network? Write down the benefits and
applications of networking technology in banking industry. Marks: 10
Answer:
 Computer Network:
Computer Network is a telecommunication which allows computer to exchangedata. In
computer networks, networked computing devices exchange data with each other
along network link (data connections). The connections between nodes are established
using either cable media or wireless media. The best-known computer network is
the Internet. Computer networks support an enormous number of application such as
access to the World Wide Web, video, digital audio, shared use of application and storage
servers, printers, and fax machines, and use of emailand instant messaging applications as
well as many others.
Benefits and applications of networking technology in banking industry:
There are a lot benefits and application of networking technology in banking industry.
Networking technology has made easy the banking transaction and all other activities.
Such as-
a) Entry the transaction as data from different computer to a central computer server.
b) Online fund transfer from one branch to another branch.
c) Cash deposit and withdraw from one branch to another branch.
d) ATM transaction.
e) Printing the document from one computer to another computer by network printer.
f) Transferring the data and document etc.
g) Electronic fund transfer by BEFTN.
h) SWIFT service with international banks.
These all are the example of benefits and application of networking technology in
banking industry.

Question 1 (b) Distinguish among LAN, MAN & WAN. What are the basic devices
required to set-up WAN in a bank branch? Marks: 10
Answer:
The distinguishing among LAN, MAN and WAN is cleared from the discussion below:
LAN:
6. LAN (Local Area Network) is a group of computers and other network devices which are
connected together.
7. All the devices that are part of LAN are within a building or multiple building.
8. LAN network has very high speed mainly due to proximity of computer and network
devices.
9. LAN connection speeds can be 10mbs or 100 Mbps or 1000Mbps. Also
10. LAN uses Guided Media;
MAN:
6. MAN (Metropolitan Area Network) is a larger network of computers and other network
devices which are connected together usually spans several buildings or large
geographical area.
7. All the devices that are part of MAN are span across buildings or small town.
8. Man network has lower speed compared to LAN.
9. MAN connection speeds can be 10 Mbps or 100Mbps.
10. MAN uses Guided Media or Unguided media.
WAN:
6. WAN (Wide Area Network)is a group of computers and other network devices which are
connected together which is not restricted to a geographical location. Internet is WAN.
7. All the devices that are part of WAN have no geographical boundaries.
8. WAN speed varies based on geographical location of the servers. WAN connects several
LANs.
9. WAN connection speeds can be 10 Mbps or 100Mbps.
10. WAN mainly uses Guided Media or Unguided media. Its long distance communications
which may or may not provide by public packet network.
Basic devices required to set-up WAN in a bank branch:
1. Network Cable 2. Computer 3. Switch
4. Connector 5. Router 6. Server etc.
Question 2 (a) what are the basic components of a computer? Differentiate among
Laptop, PC and Server. Marks: 10
Answer:
Basic components of a computer:
Input Device Output Computer case Data Port Removable Data
Device Storage
Keyboard Monitor CPU Ethernet DVD Rom
Mouse Printer Motherboard Firewire CD Rom
Image Scaner Speaker Hard Disk USB Flopy Disk
Joystick Plotter etc RAM Parallel Port Memory Card
Webcam Video/sound Audio jack etc USB flash drive etc
Card
Microphone etc Power Supply
Difference among Laptop, PC and Server:
SL Laptop PC Server
1. Typically laptops is small size PC is comparatively Server is larger in size
and takes comparatively little bigger than laptop and than laptop and PC.
amount of space it takes big amount of So it requires a large
space. amount of space.
2. Laptop creates the data. PC also creates the Server can create data
data. but generally it used
to store the data.
3. Laptop sends the data to PC also sends the data Server accepts the
 server using the network. to server using the data created by PC
network. and laptop.
4. The trouble of laptop can’t The trouble of general The trouble of server
affect the activities of server. PC can’t affect the can affect the regular
activities of server. activities of PC and
laptop.
5. Laptop is less expensive than PC also is less Server is more
server. expensive than server. expensive than laptop
or PC.
6. Laptop can serve one person PC also can serve one Server can serve
at a time. person at a time. many persons
simultaneously.
7. The storage capacity of laptop The storage capacity of The storage capacity
is very little comparative to PC is also very little of server is very
server. comparative to server. larger than laptop or
PC.

Question 2 (b) Define Network Printer and Printer Sharing. Explain the Cost
Savings Method of a printer. Marks: 10
Answer:
Definition of Network Printer:
A Network Printer is a printer connected to a wired or wireless network. It may be
Ethernet enabled and be cabled to an Ethernet switch, or it may connect to a Wi-Fi
(wireless) network, or both. It enables user in locations geographically separate from each
other and from their print devices to produce documents for themselves and others. Print
servers enable multiple clients to share one or more print devices. It is designed for high
volume, high speed printing. They are usually shared by many users on a network and
can print at speed of 45 to around 120 ppm.
Printer Sharing:
Printer Sharing is the process of allowing multiple computers and devices connected to
the same network to access one or more printers. Each node or device on the network can
print to any shared printer and, to some extent, make changes to the printer settings,
depending on the permissions set by the administrator for each user. When a print request
is sent from a networked computer, this is received by the computer where the shared
computer is attached; this is host computer initializes the printer and then sends the print
job to it. So it can be said that Printer Sharing is an operational state in computer that lets
other users in the network copy files and use the printer.
Cost saving method of printer:
The cost saving methods of printer is described below.
1. To see the print preview whether it requires the correction.
2. To print more than one page per sheet.
3. Both side print of the paper.
4. To print the selected part which we need.
5. Using draft mode as the default setting.
6. To print to PDF instead of paper.
7. Taking care of printer and toner.
These are the Cost saving method of printer. We should follow these cost saving
methods. Because these methods not only save the cost, but also ensure the green
banking.

Question 3(a): Define BCP. Discuss the highlighted points of BCP in banking
industry. Marks: 10
Answer:
BCP:
A business continuity plan (BCP) is a management process to ensure the continuity of
businesses in the event of a disaster. BCP is a process of developing advance
arrangements and procedures that enable an organization to respond to an event in such a
manner that critical business functions continue without interruption or essential change.
Business Continuity is the activity performed by an organization to ensure that critical
business functions will be available to customers, suppliers, regulators, and other entities
that must have access to those functions. BCP will facilitate the identification of how
quickly essential business units and/or processes can return to full operation following a
disaster. It will delineate the business impact of disaster scenarios on the ability to deliver
product or services. The objectives of the BCP are as follows:
Highlighted points of BCP in banking industry:
1. Disaster: such as natural disaster, technical disaster, men made disaster and the level of
disaster.
2. Response to disaster: such as making team for recovery, and trained up about restoration.
3. Data back up: How the data backup will be stored for reusing.
4. Data Recovery: How the data will be recovered for BCP.
5. Alternate site: The site which will work alternatively.
6. Restoration and migration: The process to return at previous business condition including
migration.
7. External Communication: The process to communicate with external level.
8. Staff security policy. How the security of the staff will be ensured.
These are the highlighted points of BCP in banking industry.
 Question 3(b): Discuss the importance of DC (Data Centre) and DRS (Disaster
Recovery Site) in respect of BCP in banking. Marks: 10
Answer:
Importance of DC (Data Centre):
Data Centre stores the data backup. It is very essential to continue the business in
disastrous situation. It is generally set in head office or near the head office. Data centre
is the preliminary data storage in centralized database system. We know that, banking
industries are the financial service industries. The banks generate a lot of financial data
which are related with the customer’s financial wealth. The importance of these data can
be imagined in this regard. Data Centre contains these data. So how much important the
data centre, it is easily understood.
Importance of DRS (Disaster Recovery Site):
The importance of Disaster Recovery Site is an unavoidable subject. A bank without
DRS is like a company without business plan. Every organization has critical functions
and system that must be protected from unplanned events. DRS is the secondary data
storage to support in the failure of Data Centre. It is to be situated minimum 10 km
distance from data centre as per BB guideline. DRS can be called as the data archive
centre. Disaster may occur suddenly before taking any precautious preparation. There are
different types of disaster such as natural, technical, men made etc. Disaster Recovery
Site is the preparation for that accidental situation.
Finally we can say from the above discussion, the importance of DRS is undeniable in
respect of business continuity plan (BCP) of banking industries.

Question 4(a): What is internet banking? What are the main features of internet
banking? Marks: 8
Answer:
Internet Banking:
Banking means money transaction with the financial institution for personal or business
purposes. Usually clients have to come in the premise of banking institution for the
transaction. Internet Banking is that banking system where clients can make transaction
without coming in the bank premise. Using the internet, people can get this financial
service. This is the Internet Banking.
Main features internet banking:
The main features of internet banking are cited below.
1. Internet Banking is two factor authentication oriented system ensure the security and
safety of customer’s account.
2. To view the account balance.
3. To see the account statement.
4. To recharge the mobile balance.
5. Fund transfer facility within the same bank.
6. Fund transfer facility within different bank using BEFTN.
7. Stop payment facility.
8. Cheque requisition facility etc.
These are the features of Internet Banking.

Question 4(b): What is MIS? Why is it required for a dynamic organization?

Marks: 6
Answer:
MIS:
The acronym of MIS is Management Information System. It is a computer based
information system where management related all information is gathered. It broadly
refers to a computer based system that provides managers with the tools to organize,
evaluate and efficiently manage departments within an organization. In another words, a
management information system (MIS) is a computerized database of financial
information organized and programmed in such a way that it produces regular reports on
operations for every level of management in a company.
Why MIS is required for a dynamic organization:
The MIS represents the electronic automation of several different kinds of counting,
tallying, record-keeping, and accounting. The MIS satisfies the diverse needs through
variety of systems such as query system, analysis system, modelling system and decision
support system. It helps the middle management in short term planning, target setting and
controlling the business functions. The MIS in an organization can be compared to the
role of heart in the body. It helps the clerical person in the transaction processing and
answers the queries on the data pertaining to transaction. The top level management can
get help in goal setting, strategic planning and evolving the business plans and their
implementation. So, MIS is essentially required for a dynamic organization.

Question 4(c): How IT based MIS can help a banking institution? Marks: 6
Answer:
How can IT base MIS help a banking institution:
A management information system (MIS) provides information that organization need to
manage themselves efficiently. Management information systems are typically IT based
which is used for managing five primary components: hardware, software, data,
procedures, and people.
IT based MIS can help a banking institution like this way:
1. To provide information instantly for taking decision.
2. To make plan by given information properly.
3. To control the subordinate with justice.
4. To operate the administration efficiently.
5. To manage the human resource productively.
6. To maintain proper documentation.
7. To develop the organization.
 Thus IT based MIS help the management to take plan, to control, to take necessary action
in human resource management.

Question 5(a): What is ICT Policy? Discuss the key points of ICT Policy of a
bank. Marks: 10
Answer:
What is ICT Policy:
ICT represents Information Communication Technology. Policy means a course or
principle of action adopted or proposed by an organization or individual. In another
words, policy is a deliberate system of principle to guide decisions and achieve rational
outcomes. So ICT Policy is the key principle to give direction about the application in
information communication technology.
Key points of ICT policy of a bank:
1. ICT Security Management
2. ICT Operation Management
3. Physical security
4. Information Security Standards
5. Software Development and Acquisition
6. Service provider management
7. Virus protection
8. Monitoring
These are the key points which should be the ICT policy of a bank according to
Bangladesh Bank Guideline.
Question 5(b): What do you understand by User Acceptance Testing of a
system? Marks: 5
Answer:
Acceptance Testing of a system
User acceptance testing (UAT) consists of a process of verifying that a solution works for
the user. In software development, user acceptance testing (UAT) - also called beta
testing, application testing, and end user testing. It is a phase of software development in
which the software is tested in the "real world" by the intended audience. This is typically
the last step before the product goes live or before the delivery of the product is accepted.
For example, eIBS, the core banking system of IBBL is being modified several times.
When the developers of this software think to run it finally, they test its application for
the users. This is the User Acceptance Testing.
Question 5(c): What are the restrictions of email and internet uses? Marks: 5
Answer:
Email users should refrain from:
 Sending or forwarding chain e-mail, i.e., messages containing instructions to forward the
message to others.
 Broadcasting e-mail, i.e., sending the same message to more than 10 recipients or more
than one distribution list.
 Conducting a personal business using bank resources.
 Transmitting any content that is offensive, harassing, or fraudulent.
 Sending e-mail that contains a threatening or violent message.
 Creating or exchanging obscene messages of any kind, including pornographic material.
 Sending e-mail that promotes discrimination on the basis of race, gender, national origin,
age, marital status, sexual orientation, religion, or disability.
 Exchanging proprietary information, trade secrets, or other confidential information with
anyone not affiliated with the bank.
Restriction about Internet:
Social networking site, blog site, chatting, online voting or survey site of political or any
purpose without prior permission.
Video, Audio download or upload.
Browsing illegal, material, porn, spam or infected site.
Sports, games download, online game.
Newspaper, Stock Exchange, Job Site and any other defined by the authority.
The user should not accept (clicking OK or YES) any unknown or unrelated POP-UP
message /offer.
Any kind of modem (Zoom, Edge, Wimax etc.) is strictly prohibited to use in Bank’s
Desktop computers.
Question 6(a): Describe the Settlement Process of BACH with examples.
Marks: 14
Answer:
Settlement Process of BACH with examples:
The elaboration of BACH is Bangladesh Automated Clearing House. Bangladesh Bank
has set this clearing house centrally to settle the interbank cheques payment. The
settlement process is given in BB circular PSD Circular No-01/2010 like this-
“Prior to presenting an approved payment item to (or receiving an approved payment
item from) the Bangladesh Bank, a Participating Bank must designate a Settlement
Account on the Bangladesh Bank’s books, and identify the transactions to be settled
through the Account. The Bangladesh Bank may in its discretion, recover the unpaid
balance of the Participating Bank’s obligation with respect to an item from the
Participating Bank, respectively, without prior notice or demand. The Bangladesh Bank
may charge against a Participating Bank’s designated Settlement Account
the amount of the Bank’s BACPS transactions, unless the Bangladesh Bank and the
Participating Bank agree to other arrangements for settlement. By designating a
Settlement Account, a Bank authorizes the Bangladesh Bank to debit the
designated Account on the Settlement Date the amount of items sent by the Bank to the
Bangladesh Bank and to debit and credit to the designated Settlement Account the
amount of other transactions (including fees, unless otherwise agreed) with respect to
BACPS Items. The Bank agrees to maintain to its credit in the designated Settlement
Account, consistent with paragraph 10 of these Rules, a balance of Actually and Finally
Collected Funds sufficient to cover charges under these Rules and all other charges to its
 Account. By designating a Settlement Account, and in consideration of the processing
and settlement by the Bangladesh Bank of items sent to and/or received by the Bank and
other Participating Bank companies, the Participating Bank agrees to the applicable
BACPS Operating rules, as amended from time to time, for the benefit of all parties. A
settlement designation supersedes all prior inconsistent designations with respect to
items. The Participating Bank may terminate a settlement designation by written notice to
the Bangladesh Bank and the Bangladesh Bank may terminate a settlement designation
by written notice to the Bank. On the Settlement Date, the Bangladesh Bank debits and
credits the Participating banks Designated Settlement Accounts in the amount of
presented approved payment items. Settlement for these items must be made by the
Paying Bank at the time provided in processing schedules, and is available for withdrawal
or other use by the Participating Bank at that time, subject to the provisions of these
Rules. Settlement among participating banks will occur on a net basis and will be final
when posted.’’
The settlement process of BACH with example is described below.
AB bank and IBBL are two banks. Mr Jayed is a client of AB bank. He has gotten a cross
cheque of IBBL from his party. Now he has presented the cheque of IBBL to his AB
bank for collecting money and depositing to his account. Now the processing of
settlement will be started step by step.
1. The respective branch of AB bank will receive the instrument from Mr Jayed.
2. To prepare the instrument for clearing, this instrument will be stamped, scanned and sent
to the BACH site.
3. The main branch of AB bank will receive and send all of its other branch’s instruments
to the BACH centrally.
4. The main branch of IBBL will receive the images of inward clearing instruments from
the BACH and transfer to the respective branch.
5. The respective branch of IBBL will verify the instrument’s validity and if possible they
will honour the instrument.
6. The money of the presented cheque will be deposited to Mr Jayed account.
7. Every scheduled bank has the Settlement Account in Bangladesh Bank. Bangladesh
Bank will adjust the amount from IBBL Settlement account to AB bank Settlement
account.

Question 6(b): What do you understand by net settlement and gross settlement of
clearing system? Marks: 6
Answer:
Net settlement:
A net settlement is the process by which banks calculate the collective total of all
transactions on any given day. Credit and debit transactions are recorded on the clearing
house books through the business day; final settlement of the net transactions, the credits
less the debits, occurs when funds due to a bank are credited to its reserve account by a
central bank. In a nut shell, it can be stated that Net Settlement in banking is simply the
sum of the day’s credit and debits. For example, XYZ bank’s today has the outflow:
Cheque Payment- 400,00 tk, Debit card transaction– 500,000 tk, Credit card transaction
300,000 tk, Total- 12,00,000 tk. Now the inflow: Check deposits. 300,000 tk, cash
deposits. 200,000 tk. Total 500,000 tk. So the Net Settlement = 12,00,000-500,000 tk =
700,000 tk.
Gross Settlement:
Gross Settlement means the transaction is settled on one to one basis without bundling or
netting with any other transaction. Once processed, payments are final and irrevocable.
Real Time Gross Settlement (RTGS) systems are typically used for high-value
transactions that require immediate clearing. In another words, Gross Settlement is the
transfer of funds that will be immediately available to the recipient. This is and electronic
transfer between banks, and usually involves separate payment instruction for each
transaction.

Question 7(a): What do you mean by ICT Security Management? Why is it so

important in
banking? Mar
ks: 8

Answer:
ICT Security Management:
ICT Security Management means to take necessary action for the security of Information
Communication Technology. It refers to manage the situation in such way, as if the ICT
of the organization keep free from all of the possible threats. Because, ICT is an
unavoidable tool to operate the organization dynamically and smoothly. It deals with ICT
Security Policy Documentation, Internal information System Audit, Training and
Insurance as per Bangladesh Bank Guideline. ICT Security Management must ensure that
the ICT functions and operations are efficiently and effectively managed. They should be
aware of the capabilities of ICT and be able to appreciate and recognize opportunities and
risks of possible abuses. They have to ensure maintenance of appropriate systems
documentations, particularly for systems, which support financial reporting. They have to
participate in ICT security planning to ensure that resources are allocated consistent with
business objectives. They have to ensure that sufficient and qualified technical staffs are
employed so that continuance of the ICT operation area is unlikely to be seriously at risk
all times. This is the ICT security management.
Why ICT is so important in banking:
The 21st century has brought about an all-embracing convergence of computing,
communications, information and knowledge. It has changed the way of live, work and
thinks. In this regard, modern banking is not running more based on manual ledger
(ledger banking). It has converted into ICT based operation. This change has brought an
 enormous motion and development in the banking services. Advances in technology are
allowing for delivery of banking products and services more conveniently and effectively
than ever before. ICT has made possible rapid access to critical information and ability to
act quickly and effectively. The importance of ICT will be more clear from the below
quoted ICT facility.
- Remote banking
- Internet banking
- Mobile banking
- Anytime banking
- Management Information System
- Accounting Information System etc
These all are the gifts of ICT. So, we can understand ICT is very much important in
banking.

Question 7(b): Discuss the main features of mobile banking. How does mobile
banking play an important role in financial inclusion? Marks: 6
Answer:
Main features of mobile banking:
Modern banking is becoming easy and convenient day by day with the development of
information communication technology. Mobile banking is such kind of modern banking
service. The main features of mobile banking are given below.
1. Account balance check.
2. Mini statement check.
3. Merchant payment.
4. Mobile phone recharge.
5. Fund transfer etc.
Role of mobile banking in financial inclusion:
The rapid growth of mobile phone users and countrywide coverage of mobile operator's
network have made their delivery channel an important tool-of-the-trade for extending
banking services to the unbanked/ banked population. The main target of financial
inclusion is to include unbanked population in the banking financial service. Mobile
banking is playing very important role in this regard. Specially to expedite faster delivery
of remittances across the country, mobile banking is greatly used. mCash, bKash, Prime
cash, Sure cash etc are the example of mobile banking service.
Question 7(c): Explain the operational procedures of cash in and cash out of mCash
system. Marks: 6

Answer:
Operational procedures of cash in and cash out of mCash system.
Cash in (deposit):
o Customer will give the deposited amount and mobile account number to the agent
o Agent will start the cash in process from his mobile phone
o Agent will give the deposit slip to the customer
o Than both the customer and agent will receive a SMS as the confirmation of the cash in
(deposit)
o After receiving the SMS, customer will confirm about his cash in. So, he/she must not
leave the agent counter before getting the SMS
Cash Out (Withdraw):
o Customer will give mobile account number and tell the amount of cash out (withdraw) to
the agent
o Customer will call *259# from his mobile and get the Cash Out (withdraw) menu
o Then he will submit the agent's mobile account number, amount of money and PIN
number
o Then transaction will complete and both the customer and the agent will receive the
confirmation SMS from the System
o Agent will take the customer's signature/finger print and give the cash out (withdraw)
receipt and money to the customer

Question 8. Write short notes on the following: Marks: 5x4=20

Answer:
i) Khidmah Card of IBBL:
Khidmah Card of IBBL is a shariah compliant product of IBBL facilitating the customer
to purchase goods or service on credit. It also facilitates the user to withdraw cash from
ATM up to a specific limit. As shariah forbids the interest (Riba), IBBL does not create
any interest on credit limit usage. But it applies a specific service charge on its service.
IBBL shall not be responsible for payment/purchase of any Shariah forbidden/illegal
goods/products/services by the cardholder/supplementary cardholder. Family member or
beneficiary of cardholder can have supplementary card.

ii) Merchant Payment:

Merchant Payment is a term defines the payment to merchants through the payment card
from the clients of them. The merchant or businessperson is to maintain a type of bank
account that allows businesses to accept payments by payment cards, typically debit or
credit cards. A merchant account is established under an agreement between an acceptor
and a merchant acquiring bank for the settlement of payment card transactions. Hence,
the merchant can accept payment by swiping or entering t card information in the card
terminal. So we can say that, the term ‘Merchant Payment’ indicates the accepting
payment from others by the businessperson through the debit or credit card. They get this
facility according to their agreement with the respective bank.

(iii) Contact Centre:

A contact centre can be defined as a coordinated system of people, processes,
technologies and strategies that provides access to information, resources, and expertise,
through appropriate channels of communication, enabling interactions that create value
for the customer and organization. Through contact centers, valuable information about
company are routed to appropriate people, contacts to be tracked and data to be gathered.
It is generally a part of company’s customer relationship management. Contact centers,
along with call centers and communication centers all fall under a larger umbrella labeled
as the contact centre management industry. The majority of large companies use contact
centers as a means of managing their customer interaction. These centers can be operated
by either an in house department responsible or outsourcing customer interaction to a
third party agency.

(iv) KIOSK:
KIOSK is a mode of software operation. It is a self employment
ccomputerizedtechnology. KIOSK s may store data locally, or retrieve it from a computer
network. Some KIOSK s provide a free, informational public service, while others serve
a commercial purpose such a small KIOSK . Touch screen, trackballs,computer
keyboard, and pushbuttons are all typical input device for computer KIOSK . Touch
screen KIOSK s are commercially used as industrial appliances, reducing lines,
eliminating paper, improving efficiency and service. Their uses are unlimited from
refrigerators to airports, health clubs, movie theatres and libraries.ATM, Deposit
Machine, Phone or Recharge Machine etc are the example of KIOSK .
(v) Firewall:
A firewall is a set of related programs, located at a network gateway server, that protects
the resources of private network users from other networks. It is a network security
system that monitors and controls the incoming and outgoing network traffic based
on predetermined security rules. A firewall typically establishes a barrier between a
trusted, secure internal network and another outside network, such as the Internet, that is
assumed to not be secure or trusted. Firewalls are often categorized as either network
firewalls or host-based firewalls. Network firewalls are a software appliance running on
general purpose hardware or hardware-based firewall computer appliance that filters
traffic between two or more networks. Host-based firewalls provide a layer of software
on one host that controls network traffic in and out of that single machine.

EXAMINATION, March-2015
Question 1(a): What do you mean by Programming Language? Write down
different categories of Language and give example of each. Marks: 8
Answer:
Programming Language: A programming language is a special
language programmers use to develop applications, scripts, or other set of
instructions for computers to execute.
Wikipedia says- ‘A programming language is a formal constructed
language designed to communicate instructions to a machine, particularly
a computer. Programming languages can be used to createprograms to control
the behavior of a machine or to express algorithms.’
This Language is written as a series of human understandable computer
instructions that can be read by a compiler and linker, and translated
into machine code so that a computer can understand and run it. Coded
language used by programmers to write instructions that a computer can
understand to do what the programmer (or the computer user) wants. The
description of a programming language is usually split into the two components
of syntax (form) and semantics (meaning). Some languages are defined by a
specification document, while other languages have a
dominant implementation that is treated as areference.
Different categories of Language: There are different categories of
Programming Language. Some of them are given below which usually used in
practical.
 System Languages
 Architectural Languages
 Application Languages
System Languages: The best uses of these languages are to build operating systems,
hardware drivers etc. These languages are fast and give us low level (close to the core)
access to the computer. The languages are used when speed is critical. These languages
include:
 C
 C++
 Assembler
Architectural Languages: The best uses of these languages are to build frameworks that
support (make easy) application building. Not as fast (at run-time) as system level
languages, but they provide a higher level of abstraction that makes writing software
quicker and more productive. These languages include:
 Java
 C#
Application Languages
The best uses of these languages are to build the actual business applications like web
shopping carts/stores, connecting to databases and creating the screens for users to
interact with the database. These languages include:
 PHP
 Ruby
  Perl
 Python
There are also some categories of Programming Language such as:
 Object Oriented vs. Procedural vs. Prototype
 Scripting vs. Programming
 Compiled vs. dynamic and many more.
Question 1(b): What is the difference between System Software and Application
Software? Give example of each. Marks: 6
Answer:
Difference between System Software and Application Software:
System software and application software are computer programs. The system
software is also installed during the installation of the operating system.
However, the application software utilizes the capabilities of the computer on
which it is installed.
 The programs and the file that comprises the operating system are called system
software. The subclass of a computer program which utilizes the capabilities of
computer is called application software.
 System software gets installed when the operating system is installed on the
computer while application software is installed according to the requirements of
the user.
 System software includes programs such as compilers, debuggers, drivers,
assemblers while application software includes media players, word processors,
and spreadsheet programs.
 Generally, users do not interact with system software as it works in the
background whereas users interact with application software while doing different
activities.
 A computer may not require more than one type of system software while there
may be a number of application software programs installed on the computer at
the same time.
 System software can run independently of the application software while
application software cannot run without the presence of the system software.
 Example: Windows, Linux, Unix, MAC OSX, DOS etc are System software.
Photoshop, Illustrator, MS Word. Opera (web browser), VLC Player etc are
Application Software.
Question 1(c): What is Operating System (OS)? Name different types of
OS.
Marks 6
Answer:
An operating system (OS) is a set of computer program that manages the
hardware and software resources of a computer. At the foundation of all system
software, the OS performs basic tasks such as controlling and allocating
 memory, prioritizing system requests, controlling input and output devices,
facilitating networking, and managing files. It also may provide a graphical user
interface for higher level functions.
In brief, Operating System is a software program that acts as an interface
between the user and the computer. It is a software package which allows the
computer to function.
Names of different types of Operating System:
 DOS (Disk Operating System)
 UNIX
 LINUX
 Windows
 Windows NT
Question 2(a): How many tiers in banks are categorized depending on ICT
operation as per Guidelines of Bangladesh Bank? Describe each in
short.
Marks: 12
Answer:
Tiers categorization of banks depending on ICT Operation:
There are three tiers in banks which are categorized depending on ICT operation as
per Guidelines of Bangladesh Bank. The locations for which the ICT Security Guideline
is applicable are the Head Office, Zonal Office, Branch and/or Booth/Unit of a bank or
FI. The three tiers are described below.
Tier‐1: Centralized ICT Operation through Data Center (DC) including Disaster
Recovery Site (DRS) to which all other offices, branches and booths are connected
through WAN with 24x7 hours attended operation.
Tier‐2: Head Office, Zonal Office, Branch or booth having Server to which all or a part
of the computers of that locations are connected through LAN.
Tier‐3: Head Office, Zonal Office, Branch or booth having stand alone computer(s).
The proposed ICT Security Guideline will be applicable for all the three tiers if not
mentioned otherwise.
These three tiers are quoted from Guidelines of Bangladesh Bank which is supplied at
Bangladesh Bank’s website.
Question 2(b): How do you secure your PC as per Guidelines of Desktop Policies of
Bangladesh Bank. Marks: 4
Answer:
Security of PC as per Guidelines of Desktop Policies of Bangladesh Bank.
1. Desktop computer shall be connected to UPS to prevent damage of data and hardware.
2. Before leaving a desktop or laptop computer unattended, users shall apply the "Lock
Workstation" feature.
3. Password protected screen saver shall be used to protect desktop and laptop from
unauthorized access.
4. Laptop computers that store confidential or sensitive information must have encryption
technology.
5. Desktop and laptop computers and monitors shall be turned off at the end of each
workday.
6. Laptop computers, computer media and any other forms of removable storage (e.g.
diskettes, CD ROMs, zip disks, PDAs, flash drives) shall be stored in a secured location
or locked cabinet when not in use.
7. Other information storage media containing confidential data such as paper, files,
tapes, etc. shall be stored in a secured location or locked cabinet when not in use.
8. Individual users must not install or download software applications and/or executable
files to any desktop or laptop computer without prior authorization.
9. Desktop and laptop computer users shall not write, compile, copy, knowingly
propagate, execute, or attempt to introduce any computer code designed to self‐replicate,
damage, or otherwise hinder the performance of any computer system .
10. Any kind of viruses shall be reported immediately.
11. Viruses shall not be deleted without expert assistance unless otherwise instructed.
12. User identification (ID) and authentication (password) shall be required to access all
desktops and laptops whenever turned on or restarted.
13. Standard virus detection software must be installed on all desktop and laptop
computers and shall be configured to check files when read and routinely scan the system
for viruses.
14. Desktop and laptop computers shall be configured to log all significant computer
security relevant events. (e.g. password guessing, unauthorized access attempts or
modifications to applications or systems software.)
15. All computers shall be placed above the floor level and away from windows.

Question 2(c): What guidelines should be followed in using email and internet?
Marks: 4
Answer:
Guidelines to be followed in using email and internet:
1. All Internet connections shall be routed through a firewall for computers connected to
network and Anti‐Virus Gateway like Web‐Shield, Trend Micro etc. to get protection
from spam, worm, Trojan etc. that is accessing in bank's network while browsing,
downloading, or an attachment of any incoming mail to the PCs connected to bank's
network.
2. Access to e‐mail system and internet shall only be obtained through official request.
3. E‐mail system and internet shall be used according to the bank's policy.
4. Concerned department shall perform regular review and monitoring of e‐mail service.
5. Users shall not use profanities, obscenities, or derogatory remarks in email messages
regarding employees, customers, competitors, or others.
6. All attachments with the incoming e‐mail messages shall be monitored especially for
viruses.
7. Mail server must have latest anti‐virus signature.

Question 3(a): Write down the basic difference between Centralized database and
Decentralized database. Marks: 10
Answer.
Difference between Centralized database and Decentralized database:
1. Centralized database is a database in which data is stored and maintained in a single
location. Decentralized database is a database in which data is stored in storage devices
that are not located in the same physical location but the database is controlled using a
central Database Management System (DBMS).
2. A centralized database is easier to maintain and keep updated since all the data are
stored in a single location. A decentralized database is comparatively less easy to
maintain and keep updated since all the data are stored in different location.
3. Centralized database is easier to maintain data integrity and avoid the requirement for
data duplication. Decentralized database is less easy to maintain data integrity and it
requires data duplication.
4. As all the requests coming to access data are processed by a single entity, and therefore
it could easily become a bottleneck in Centralized database. But with Decentralized
databases, this bottleneck can be avoided since the databases are parallelized making the
load balanced between several servers.
5. Maintenance cost of Decentralized database is comparatively higher than Centralized
database.
6. Designing databases for a Decentralized database is more complex than the same for a
centralized database.
7. If one of the sites crashes, the system will keep running with the other sites in
Decentralized database, which is difficult in Centralized database.
8. Centralized database is comparatively slower because the database is stored on a single
computer or server. On the other hand, the Decentralized database is faster because the
information is distribute and not packed as a whole.
9. Network problem is frequent in Decentralized database which arise rarely in
Centralized database.
10. To access a Centralized database the user must connect to the computer network
which will give them access to the central computer. In Decentralized database, the user
can access a specific network in a specific area.

Question 3(b): What do you mean by Data Synchronization? How it is

applied in case of database interruption for
BCP? Marks: 6
Answer:
Definition of Data Synchronization:
Data synchronization is the process of maintaining the consistency and
uniformity of data instances across all consuming applications and storing
devices. It ensures that the same copy or version of data is used in all devices -
from source to destination.
Data synchronization is enabled through specialized software that tracks data
versions as they are created and utilized. The process is implemented in
distributed systems where data elements are routed between several computers
or systems. Each computer may modify original data versions, depending on
requirements.
Data synchronization ensures that regardless of data modifications, all changes
are merged with the original data source.
Data synchronization is also used in data mirroring, where each data set is
exactly replicated or synchronized within another device.
How it is applied in case of database interruption for BCP:
In a business institution, its database is the most important matter. If computerized
database becomes interrupted or crash, the business continuity may be hampered. So, as
per Business Continuity Plan (BCP), data synchronization application resumes directly
the production environment. Mirroring is a synchronous process, i.e., the changes are
applied on the replicated server synchronous to the primary server. This is the best
method when the requirement is for “zero data loss”. Data synchronization helps to
restore data in the disastrous circumstances.
Question 3(c): What are the difference between DC and
DRS? Marks: 4
Answer:
Difference between DC and DRS:
SL DC DRS
1 DC = Data Centre DRS= Disaster Recovery Site
2 Data Centre generally is situated in DRS must be situated at a 10
head office. kilometres (radius) distance from
data centre as per BB Guidelines.
3 The function of DC is to store data. The function of DRS to support in
disastrous situation.
4 DC is active in all time for data DRS functions in accidental
storage. situation.
5 The DC is preliminary data storage. The DRS is secondary data
storage.
Question 4(a): Define BCP. Describe how a standard BCP can protect a bank as per
Guidelines of Bangladesh Bank. Marks: 8
Answer:
 Definition of BCP: A business continuity plan (BCP) is a management process to ensure
the continuity of businesses in the event of a disaster. BCP is a process of developing
advance arrangements and procedures that enable an organization to respond to an event
in such a manner that critical business functions continue without interruption or essential
change. Business Continuity is the activity performed by an organization to ensure that
critical business functions will be available to customers, suppliers, regulators, and other
entities that must have access to those functions. BCP will facilitate the identification of
how quickly essential business units and/or processes can return to full operation
following a disaster. It will delineate the business impact of disaster scenarios on the
ability to deliver product or services.
How a standard BCP can protect a bank as per Guidelines of Bangladesh Bank:
A standard BCP can protect a bank in crucial moment to continue its business within a
reasonable time. Modern banking is totally dependent on Information Communication
Technology (ICT). In this regard Bangladesh Bank introduces Guidelines for scheduled
banks of Bangladesh. How a standard BCP as per Guidelines of Bangladesh Bank can
protect a bank is described below.
(1) Covering Operational Risk: A standard BCP cover the operational risk. Because
Bangladesh Bank Guideline provides that policy about it.
(2) Surviving in crucial moment: A business institution or company can survive in crucial
situation by a standard Business Continuity Plan (BCP).
(3) Re-establish Business: Business can be re-established if a BCP is ready for accidental
condition.
(4) Safe Data Backup: BCP policy provided by Bangladesh Bank Guideline has ensured
safe data backup.
(5) Restoring Data: Loosen data can be restored by a standard BCP.
(6) Preparation for disaster: BCP is a preparation for disastrous situation.
(7) Recovery of Disaster: Standard BCP helps to recover the loss of disaster.
(8) Prepared Action Plan: BCP is a prepared action plan in disaster which indicates the
alertness for disturbing situation.
(9) Testing effectiveness: BB Guideline has suggested to test the effectiveness of BCP.
(10) Supervising the Condition: Preparation according to BCP is required to be
supervised frequently to apply in proper time.
Finally it can be stated that, it is cleared by above discussion, how a standard BCP as per
Guideline of Bangladesh Bank can protect.
Question 4(b): What is IT Audit? Describe the advantages of IT auditing over
conventional auditing system. Marks:
8
Answer:
IT Audit:
IT Audit: IT Audit means the examination and evaluation of an organization’s
information technology infrastructure, policies and operations. It determines whether IT
works properly to protect corporate assets, ensure data integrity and aligned with the
 business’s overall goals. IT auditors examine not only physical security controls, but also
overall business and financial controls that involve information technology system.
Advantages of IT auditing over conventional auditing system:
1. Time saving: IT auditing is less time consuming than conventional auditing system.
2. Labour saving: IT audit save labour which is very hard labouring in conventional audit.
3. Cost saving: IT audit save audit cost as it save time and labour increasingly.
4. Risk minimization: IT audit determine risks to a company’s information assets and help
to identify methods to minimize those risks.
5. Less materials using: IT audit is required to use comparatively less materials such as
Paper, calculator etc.
6. Inefficiency determination: Inefficiency can be determined quickly by IT audit which
is not possible by manual auditing.
7. Information management: IT audit helps to manage the information system of business
institution.
8. Evaluation the system: Finally IT audit evaluate the business system an process in place
that secure company data.
These are the advantages of IT auditing over conventional auditing system.
Question 4(c): Write down the difference between Internet and Intranet.
Marks: 4
Answer:
Difference between Internet and Intranet:
SL Internet Intranet
1 Internet is wide network of Intranet is also a network of
computers and is open for all. computers designed for a specific
group of users.

2 Internet itself contains a large Intranet can be accessed from

number of intranets. Internet but with restrictions.
3 The number of users who use The number of users is limited.
internet is Unlimited.
4 The Visitors traffic is unlimited. The traffic allowed is also limited.
5 Internet contains different source of Intranet contains only specific group
information and is available for all. information.
Therefore the internet is an open, public space, while an intranet is designed to
be a private space. An intranet may be accessible from the Internet, but it is
protected by a password and accessible only to authorized users.

Question 5 (a) : What is NPS of Bangladesh Bank? Who are the members of
the NPS? How does NPS system work? Write settlement system of NPS
transactions. Marks:
12
 Answer:
NPS of Bangladesh Bank:
The acronym of NPS is National Payment Switch. The Bangladesh Bank has
introduced NPSB in order to facilitate interbank electronic payments originating
from different channels like Automated Teller Machines (ATM), Point of Sales
(POS), Internet, Mobile Devices etc. In January 2012, BB signed a deal with a
Singapore-based company to implement the NPS project by the co-operation of
World Bank. The trial service NPS was launched in December 2012.
Member of the NPS:
At present 42 banks are the members of NPS who are connected with this
system as per statement of BB website. Transactions are being routed among
these 42 banks through NPSB. The recent statistics says that the daily average
transactions through NPSB are about 16,000.
How NPS system does work:
NPSB is a mother switch of all other switches in the country. NPSB facilitates the
expansion of the card based payment networks substantially and promote e-
commerce through the country. Online payment of Government dues, using
cards and account number information through Internet will greatly be enhanced
using NPSB.
Settlement system of NPS transactions:
Payment System Department of Bangladesh Bank is concerned to operate and
settle the transactions. Every scheduled bank has an account with Bangladesh
Bank. Payment System Department settles the transaction among the respective
banks account with the assistance of information technology.
Question 5 (b) : What do you understand by Transaction Monitoring of a
Core Banking System? What is the Policy of the Transaction Monitoring
System of your bank? Marks:8
Answer:
Transaction Monitoring of a Core Banking System:
Transaction Monitoring of a Core Banking System is the supervision of banking
business applications and services by auditing the individual transactions that
flow across the application infrastructure. Transaction Monitoring tools measures
the response time performance of each component. By following each
transaction, hop-by-hop across the data centre and the cloud, an information
technology operations team can immediately see where performance slowdowns
are occurring.

Policy of the Transaction Monitoring System:

The Policy of the Transaction Monitoring System of Islami Bank are given below:
 Monitoring transaction limit.
 Monitoring transaction frequency limit.
 Checking the fraudulency.
 Anti money laundering policy.
 Reporting of Suspicious Transaction Report (STR) and Cash Transaction Report
(CTR).
 Proper documentation during transaction.
 Proper level of encryption and security implementation at all stages of the
transaction processing.
These are the Policy of the transaction monitoring system which should be
followed during transaction monitoring.

Question 6(a): What is UPS? Why sometimes UPS does not function
properly? Write down a list of IT related hardware devices of your branch
or division. How do you protect and secure these hardware devices as per
IT policy? Marks: 12
Answer:
What is UPS:
The term UPS represents Uninterruptible Power Supply. It is a device that allows
a computer to keep running for a short time when the primary source of power is
lost. It also provides protection from power surge. UPS contains a rechargeable
battery which supports computer to run uninterruptedly in absent of electricity.
Why sometimes UPS does not function properly:
UPS may not work properly for different causes, such as-
a) Battery trouble.
b) Exceeding the UPS load capacity.
c) Improper storage of the UPS unit when not in use.
d) Insufficient battery charge.
e) Incorrect equipment setup, etc.
List of IT related hardware devices:
1. Mouse 6. Motherboard
2. Keyboard 7. Power supply
3. Monitor 8. UPS
4. Hard disk 9. Printer
5. RAM 10. Scanner
Security of hardware devices as per IT policy:
1. CPU shall be placed above the floor level and away from windows.
2. Desktop computer shall be connected to UPS to prevent damage of data and hardware.
3. Desktop and laptop computers and monitors shall be turned off at the end of each
workday.
4. Laptop computers, computer media and any other forms of removable storage (e.g.
diskettes, CD ROMs, zip disks, PDAs, flash drives) shall be stored in a secured location
or locked cabinet when not in use.
5. All devices should be neat and clean.
 Question 6(b): What is Financial Inclusion? How do Alternative Delivery
Channels play a vital role regarding Financial Inclusion of a bank? Marks: 8
Answer:
Financial Inclusion:
Financial Inclusion is the delivery of financial services at affordable costs to
sections of disadvantaged and low-income segments of society. An estimated 2
billion working age adults globally have no access to the types of formal financial
services delivered by regulated financial institutions. It is argued that as banking
services are in the nature of public good; the availability of banking and payment
services to the entire population without discrimination is the prime objective of
Financial Inclusion. The United Nations defines the goals of Financial Inclusion
as follows.
5) Access at a reasonable cost for all households to a full range of financial
services, including savings or deposit services, payment and transfer services,
credit and insurance.
6) Sound and safe institutions governed by clear regulation and industry
performance standards.
7) Financial and institutional sustainability, to ensure continuity and certainty of
investment and
8) Competition to ensure choice and affordability for clients.
Role of ADC regarding Financial Inclusion:
Financial Inclusion is boosting up by Alternative Delivery Channel (ADC). ATM,
Deposit Machine, mobile banking, internet banking, call centre are the alternative
delivery channel of banking services. These ADC are playing a vital role in
Financial Inclusion by this way-
5. ATM, Deposit Machine are kept in the public place like small shop. So the
general people are being inspired at banking seeing this service.
6. Everyone has mobile. In this regard mobile banking are being popular day by
day for its easy and instant service.
7. Moreover, internet banking is an interesting service to modern generation
through which total banking service are at the customer’s premise.
8. Now a day, Call Centre also is a vital part to provide 24 hours banking service,
which helps to Financial Inclusion.
In conclusion, we can say that ADC in playing a vital role regarding Financial
Inclusion of banking.

Question 7(a) Distinguish among Debit Card, VISA Debit Card and Credit
Card.
Marks: 6
Answer:
Distinguishing among Debit Card, VISA Debit Card and Credit Card:
 Debit Card: Debit card is to be used to debit cash through ATM (Automated
Teller Machine) from one’s own account. If anyone’s account does not contain
proper balance, he/she cannot withdraw money by debit card.
VISA Debit Card: VISA debit card can be used to debit cash from ATM like debit
card facility. Moreover, it facilitates the customer to purchase goods or services
from different outlet, where VISA facilities are available.
Credit Card: Credit Card is a loan card. The client spends money or withdraws
cash money from ATM on credit through the credit card for a specific time period
up to a specific limit. Client can use this card at the POS centre to purchase
goods or services. Customer return his/her debt to card provider bank before or
at payment due date. The bank takes service charge for this service from the
customer. Moreover interest based banks take interest on the due amount.

Question 7 (b): How many security factors are verified from the user end
during fund transfer in i-
Banking? Marks: 4
Answer:
How many security factors:
Tow security factors are verified from the user end during fund transfer in i-
banking.
i) What you have. This is called the Possession Factor: For example we have
mobile. I pad, computer.
ii) What you know. This is called the Knowledge Factor: Such as we know TPIN
and one time key.

Question 7 (c): What are the benefits of IP Phone over T&T

Phone? Marks: 4
Answer:
Benefits of IP Phone over T&T Phone:
i) IP Phone is more secure than T&T Phone.
ii) Expenditure of IP Phone is less than T&T phone.
iii) IP Phone extension capacity is more than T&T Phone.
iv) IP Phone connection is available through internet connection, but T&T phone
connection is unavailable through internet connection.
v) IP Phone communication is more time saver than T&T Phone communication.
Question 7 (d) Describe functionality of Call Centre. Explain “Banking
Services are available through Call
Centre”. Marks: 6
Answer:
Functionality of Call Centre:
i) Providing necessary information.
ii) Accepting request of customer.
iii) Solving the relevant problems at once.
iv) Providing services available by call centre.
v) Conveying the claims and suggestions of customers to the proper authority etc.
Explanation of “banking services are available through Call Centre”
There are varieties of banking services which can be provided through Call
Centre. Such as-
a) Cheque book requisition.
b) Cancel Cheque leaf.
c) Stop payment by cheque.
d) Stop payment by ATM Card.
e) Informing the Account Balance.
f) Informing the Account Statement etc.
These services are available through Call Centre. So it can be stated that
“banking services are available through Call Centre”
Question 8: Write short notes on the following: Marks:5x4= 20
(i) Change Management:
Change management has at least three different aspects, including: adapting to
change, controlling change, and effecting change. A proactive approach to dealing with
change is at the core of all three aspects. For an organization, change management
means defining and implementing procedures and/or technologies to deal with changes in
the business environment and to profit from changing opportunities. In an information
technology (IT) system environment, change management refers to a systematic approach
to keeping track of the details of the system (for example, what operating system release
is running on each computer and which fixes have been applied).
(ii) User Acceptance Testing:
User acceptance testing (UAT) consists of a process of verifying that a solution works for
the user. In software development, user acceptance testing (UAT) - also called beta
testing, application testing, and end usertesting. It is a phase of software development in
which the software is tested in the "real world" by the intended audience. This is typically
the last step before the product goes live or before the delivery of the product is accepted.
For example, eIBS is being modified several times. When the developers of this software
think to run it finally, they test its application for the users. This is the User Acceptance
Testing.
(iii) NPSB:
The elaboration of NPSB is National Payment Switch Bangladesh. The Bangladesh Bank
has introduced NPSB in order to facilitate interbank electronic payments originating from
different channels like Automated Teller Machines (ATM), Point of Sales (POS),
Internet, Mobile Devices etc. The main objective of NPSB is to create a common
electronic platform for the switches in Bangladesh. NPSB is a mother switch of all other
switches in the country. It will facilitate the expansion of the card based payment
networks substantially and promote e-commerce throughout the country. Online payment
 of Government dues, using cards and account number information through Internet will
greatly be enhanced using NPSB. Payment Systems Department (PSD) is concerned to
operate and settle the transactions regularly. NPSB was launched as "go-live" on
December 27, 2012 to route ATM transactions. At present, transactions among 42 banks
are being routed through NPSB. (Source: Bangladesh Bank website)
(iv) RTGS:
An RTGS system is a gross settlement system of money or securities in which both
processing and final settlement of funds transfer instructions can take place continuously.
It will enable instant settlement of high value local currency transactions as well as
government securities and foreign currency based transactions. As it is a gross settlement
system, transfers are settled individually, i.e., without netting debits against credits. In
RTGS or large-value funds transfer system, the transmission and processing of payment
messages are typically automated or electronic, while settlement takes place in central
bank funds. Along with these individual interbank transactions all other Deferred Net
Settlement Batches (DNSB) such as BACPS, BEFTN or NPSB will settle their net
position through RTGS system, RTGS in turn will be linked to BB core banking solution.
(Source: Bangladesh Bank website)
(v) Computer Virus:
A computer virus is a malware program that, when executed, replicatesby inserting
copies of itself (possibly modified) into other computer programs, data files, or the boot
sector of the hard drive; when this replication succeeds, the affected areas are then said to
be "infected". Viruses often perform some type of harmful activity on infected hosts,
such as stealing hard disk space or CPU time, accessing private information, corrupting
data, displaying political or humorous messages on the user's screen, spamming their
contacts, logging their keystrokes, or even rendering the computer useless. However, not
all viruses carry a destructive payload or attempt to hide themselves—the defining
characteristic of viruses is that they are self-replicating computer programs which install
themselves without user consent.
(vi) Cookies:
Cookies are small files which are stored on a user's computer. They are designed to hold
a modest amount of data specific to a particular client and website, and can be accessed
either by the web server or the client computer. Cookies are a convenient way to carry
information from one session on a website to another, or between sessions on related
websites, without having to burden a server machine with massive amounts of data
storage. Storing the data on the server without using cookies would also be problematic
because it would be difficult to retrieve a particular user's information without requiring a
login on each visit to the website. For example the first time a user visits a site they may
choose a username which is stored in the cookie, and then provide data such as password,
name, address, preferred font size, page layout, etc. - this information would all be stored
on the database using the username as a key. Subsequently when the site is revisited the
server will read the cookie to find the username, and then retrieve the entire user's
information from the database without it having to be re-entered.
(vii) TPIN:
The acronym of TPIN is Transaction Personal Identification Number. It is a
numeric password used to authenticate a user to a system. The TPIN is not printed or
embedded on the card or paper but is manually entered by the cardholder, user of Internet
banking or phone banking during transactions. It is a 4-digit number combination known
only to customers to allow them to access their account information. The user can change
this number any time for their transactional security. It is a confidential number which is
only to be known to the user. Since it ensures the security of money, so it should not be
disclosed to another.
(viii) MICR:
MICR (magnetic ink character recognition) is a technology used to verify the legitimacy
or originality of paper documents, especially checks. Special ink, which is sensitive to
magnetic fields, is used in the printing of certain characters on the original documents.
Information can be encoded in the magnetic characters. The use of MICR can enhance
security and minimize the losses caused by some types of crime. If a document has been
forged - for example, a counterfeit check produced using a colour photocopying machine,
the magnetic-ink line will either not respond to magnetic fields, or will produce an
incorrect code when scanned using a device designed to recover the information in the
magnetic characters. Even a legitimate check can be rejected if the MICR reader indicates
that the owner of the account has a history of writing bad checks.

----------------0--------------

DIPLOMA IN ISLAMIC BANKING EXAMINATION (October)-2015 (PART-II)

205: E- Banking
Time: 3 hours, Full Marks: 100, Pass Marks: 45
(N.B.: Answer any five questions. The figures in the right margin indicate full marks.)
1. a) What are major components of 8
PC? Describe their functionality
in brief. Mention five input and
output devices.
b) What is computer Virus? Write 6
down the name of some common
Viruses and Anti viruses.
c) What are the precautionary 6
measures should be taken to
protect the virus?
2. a) What is Computer Network? 8
Write the difference between
 router, switch & Hub.
b) Distinguish among LAN, MAN, 6
WAN
c) Discuss why DRS is essential for 6
BCP?
3. a) Write the differences among the 10
operational procedure of BACPS
and BEFTN.
b) What is the routing number in the 5
BACH system?
c) Discuss about Net Settlement and 5
Gross Settlement of clearing
system.
4. a) What is CBS? Write down the 10
name of five renowned CBS that
are using by different Banks in
our country.
b) What is operating system? 5
Describe in brief.
c) What is RTGS? Who will be the 5
user of RTGS?
5. a) What is ICT Risk? Is it a core risk 10
of a Bank? How a Bank can
mitigate it?
b) What is information system 5
Audit?
c) What types of environmental 5
security is required to protect the
IT system?
6. a) What are the advantages and 8
disadvantages of centralized and
decentralized Database
Management System? Which one
do you prefer to use in your Bank
and why?
b) What is data Encryption and 6
Decryption?
c) What is the function of AML 6
Screening software? At what
scopes it is applicable in the CBS
operation?
7. a) Discuss why alternative delivery 8
channel is important to meet the
Customer Service in Banking.
b) What is Mobile Banking? How 6
 mobile Banking can play an
important role in Financial -------------------0------------------
Inclusion.
c) What is the payment gateway? 6
What is the role of merchant in
the E-Payment gateway?
8. Write short notes on any 5 (five) of 5x4=20
the following:
i. POS ii. Agent
Banking
iii. Green iv. VPN
Banking
v. e-Commerce vi. Web
browser
vii. Two factor viii. DOS
authentication attack