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Basel Guidelines For E-Banking | CAIIB ELECTIVE EXAM

CAIIB’S ELECTIVE EXAM – INFORMATION TECHNOLOGY

In this article we will talk about one of the most important topics of CAIIB’S ELECTIVE EXAM OF INFORMATION TECHNOLOGY which is Basel guidelines for E-banking. We will focus on guidelines for e-commerce in this article. The exam will be held in Nov 2022. At the end of the article you can also find CAIIB IT Study Material for your preparation.

The IIBF administers the Certified Associates of Indian Institute of Bankers (CAIIB), also known as the second level JAIIB examination, between the months of June and December each year. Under the said Exam, three papers must be passed, one of which is optional. Paper 1 is on advanced bank management, Paper 2 is on bank financial management, and Paper 3 is an elective paper that can be chosen from six options, one of which is information technology.

CAIIB INFORMATION TECHNOLOGY 2022

This elective exam introduces candidates to information technology concepts such as the impact of IT, software used for banking, computer languages, software, networks, and data communication; systems & designs such as models, life cycles of software development, data mining tools, etc.; banking applications including delivery channels, e-mails & alerts, service-level agreements; security, controls, and guidelines that provide information about it All of this is included in the section of the IT curriculum that is currently (2022) applicable for the CAIIB NOV EXAM.

E-COMMERCE

The purchasing and selling of goods and services, or the sending of money or data, over an electronic network, typically the internet, is referred to as e-commerce (or electronic commerce). These commercial exchanges might be either B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), or C2B (consumer-to-business).

The terms e-business and e-commerce are sometimes used synonymously. E-tail can also refer to the transactional procedures that go into doing an online retail transaction.

Read Also: CAIIB IT IMPORTANT CASE STUDIES

GUIDELINES FOR E-BANKING

You may have been aware that the Reserve Bank of India created a Working Group on Internet Banking to look into various elements of the practice (I-banking). The Group had concentrated on three main i-banking areas, including (i) technological and security challenges, (ii) legal difficulties, and (iii) regulatory and supervisory issues. 

The Groups report is enclosed in its entirety. The Group’s suggestions for a gradual implementation have been adopted by RBI. The following recommendations are therefore made for banks to adopt. Additionally, banks are informed that they may refer to the original study for specific advice on several concerns.

STANDARDS FOR TECHNOLOGY AND SECURITY

  • Controls over physical access should be tightly enforced. All information systems and the locations where they are kept should have physical security to protect them from both internal and external threats.
  • The tasks of a network and database administrator should be specified by banks.
  • The Board of Directors should have properly authorised a security policy for banks. The responsibility for information systems security should be divided between the Information Technology Division, which actually implements the computer systems, and the Security Officer / Group. The information systems will also be audited by an information systems auditor.
  • Logical access restrictions for data, systems, applications, utilities, communications connections, libraries, system software, etc. should be implemented by banks. User IDs, passwords, smart cards, and other biometric technologies are examples of logical access control methods.
  • To prevent network incursions that could overcome the proxy server, all systems supporting dial-up services through modem on the same LAN as the application server should be segregated.
  • It is also advised that all superfluous services, such as FTP (File Transfer Protocol) and telnet, be turned off on the application server. Separating the application server and email server is a good idea.
  • Periodic system penetration testing should be conducted by the information security officer and the information system auditor and should include the following:
    • Utilising password-cracking software to try and hack passwords.
    • Check the programmes for rear door traps.
    • Use DDoS (Distributed Denial of Service) and DoS (Denial of Service) attacks to try to overload the system.
  • Before employing the systems and apps for routine operations, security infrastructure should be thoroughly evaluated. In order to fix bugs and security holes, banks should update their systems by applying patches made available by developers. They should also upgrade to newer versions that offer better security and control.
  • Controls over physical access should be tightly enforced. All information systems and the locations where they are kept should be physically secure from both internal and external threats.
  • For legal reasons, all bank applications should have adequate record-keeping infrastructure. All sent and received messages may need to be kept in both encrypted and unencrypted form.
  • In light of the current regulatory framework, banks have a duty to not only verify a customer’s identity but also to inquire about their integrity and reputation. Therefore, even while requests for opening accounts via the Internet may be allowed, accounts should only be opened following a formal introduction and a physical check of the customer’s identity.
  • Consumer rights in India are outlined in the Consumer Protection Act, 1986, which also applies to banking services. Currently, bilateral agreements between banks and clients govern the rights and obligations of customers using Internet banking services. Banks’ liability to customers on account of unauthorised transfers through hacking, denial of service due to technological failure, etc. needs to be evaluated in light of banking practises and rights enjoyed by customers in traditional banking. Banks that offer Internet banking should insure themselves against such risks.
  • There is very little room for the banks to respond to stop-payment requests from clients in an Internet banking scenario. As a result, banks must inform clients in unambiguous terms when and under what conditions any stop-payment instructions may be granted.

Read Also: CAIIB IT NOTES ON OPERATING SYSTEM

ISSUES WITH REGULATION AND SUPERVISION

  • Only banks with a physical presence in India, an Indian licence, and an Indian supervision body would be allowed to provide Internet banking services to Indian citizens. Therefore, for the time being, neither banks nor virtual banks with corporate headquarters outside of India and no physical presence there are allowed to provide Internet banking services to Indian citizens.
  • The products ought to be available solely to account holders and not in other countries.
  • The services should only offer goods in local currencies.
  • Indian banks’ abroad branches would be allowed to provide Internet banking services to their international clients as long as they also satisfy the home supervisor in addition to the host supervisor.
  • Every violation of security systems and procedures must be reported by banks to the RBI, which may then choose to commission a special audit or inspection of those banks.
  • It has become important to build up “Inter-bank Payment Gateways” to settle such transactions as e-commerce has grown in popularity. The Group recommends that the framework for setting up payment gateways and the protocol for transactions between the customer, the bank, and the portal be adopted.
  • Banks are required to use a disclosure form to disclose to customers the risks, obligations, and liabilities associated with conducting business online. The banks ought to make available online any recently released financial results.
  • Net and gross settlement capabilities are required for inter-bank payment gateways. Whenever possible, all settlement should take place within one day and in real time.

CAIIB STUDY MATERIAL NOV 2022

Study material is a resource or text that offers a conceptual grasp of the subject matter. Their major goal is to convey the subject in terms that are simple to comprehend, making it simpler to remember what has been read or watched.

The candidates will save a great deal of time by having all the information they need in one location rather than having to search the internet or book stores or seek others for assistance in order to grasp what is actually written in the books. Candidates don’t need to strive to get information from numerous sources or books; they can just concentrate on their studies.

The right and pertinent content makes studying easier and brings forth the fundamental comprehension of the subjects. Study materials may take the shape of lectures, chapters, questions and answers, study notes, MCQs, practise tests, test series, and other similar resources.

They support achieving high marks and enhance academic achievement.

The information technology paper for IIBF provided by Leaning Sessions is the best available on the market, and it is also the least expensive.

Learning Sessions study materials are different from conventional study materials, which typically consist of heavy or bulky books; instead, the IT study materials you will receive are going to be in soft form. All that is asked of you is watching the information technology video lectures.

  • LANGUAGE OF LECTURES: HINDI AND ENGLISH MIX
    • Information technology optional paper 3 is offered in English mix Hindi. You can choose the content in the language of your choice. However, only English will be used for the remaining parts of the CAIIB NOV 2022 EXAM’S comprehensive course of IT study material.
  • RECORDINGS: 
    • In addition to the live lectures on information technology, you will also receive the recordings of those live lectures for later viewing. The recordings will be made available to view 48 hours after the live class has ended. These recordings will be useful if you wish to see an information technology class later or if you have to miss a live one.
  • MOCK TESTS
    • Additionally, you will receive practise exams for IT papers, which will be a huge assistance to you as you prepare for the information technology subject. There is no time limit on how long you have to complete the tests because their sole purpose is to aid in your practise.
  • CHAPTER-WISE
    • The classes and other materials (e.g., tests and epdfs) in the CAIIB IT NOV 2022 study guide are organised according to chapters or subjects, which makes it easier to get a general idea of the course’s curriculum and other materials. The organisation of IT lectures and other resources into chapters preserves the continuity or flow of thoughts and also enables you to choose which part or chapter you wish to see first.
  • LATEST IT SYLLABUS: 
    • The information technology portion of the CAIIB Exam for 2022 is according to the most recent IIBF IT syllabus, which is displayed on our website and accessible through our application. The course is updated in accordance with any latest alterations that the institute alerts students of or develops on their own. As a result, you can trust LS to give you accurate and pertinent information. The fact that the information technology lectures are live rather than on a previous recorded lectures, which might have contained out-of-date information, further supports the claim that the study materials for the CAIIB IT are the most recent.
  • VIDEO LECTURES: 
    • Instead of written books or previously published content, the CAIIB’s NOV 2022 EXAM’S IT course is delivered live through video classes. Some people find it challenging to resume reading textual language after leaving school since they no longer have the same level of concentration. Additionally, our content is available in a very engaging video format.

Read Also: CAIIB IT MOCK TEST 2022

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