Module E

Document Handling Systems Additional

Banking Applications & Other Aspects

1. Cheque Processing Systems

Cheque Processing System or Payment system in short, is a means by which
funds are transferred among financial institutions, businesses, and persons.
Payment systems are considered as the most important factor for the well
functioning of a country's financial system and for successful application of
monetary policies by the central banks.

1.1. Clearing and Settlement Systems

At present, four clearing systems are operating in Bangladesh. They are:

(a) Bangladesh Bank's Clearing Houses in Dhaka and its branches in seven
other cities;

(b) Sonali Bank's Clearing Houses in 31 cities where there are no BB

branches;

(c) the BB large value cheque settlement system; and

(d) the Bangladesh Bank Foreign Currency Clearing System in Dhaka which
clears and settles foreign currency cheques and pay orders by the
Forex Reserve and Treasury Management Department (FRTMD).
There are four clearings each day at the BB's clearing house. The first clearing
starts at 10:30 am and returns of the first clearing are at 5:30 pm. The Same
Day clearing starts at 11:00 am and returns occur at 2:00 pm.

1.2. Conventional Cheque Clearing Process

The conventional Cheque clearing process is a fairly time consuming

procedure and it involves many manual processes and physical movement of
the instruments. It not only increases the time of clearing, also exposed to
higher level of risks and frauds as the instruments are moving in various
points and through various persons.
1.3. MICR (Magnetic Ink Character Recognition)

Since the manual or conventional cheque clearing process is time consuming,

the introduction of MICR has come into place. Magnetic Ink Character
Recognition, or MICR, is a character recognition technology used primarily by
the banking industry to facilitate the processing of cheques. The technology
allows computers to read information (such as account numbers, cheque
numbers and special characters) printed on the bottom of cheques or other
financial transaction documents. Unlike barcodes or similar technologies,
however, MICR codes can be easily read by humans.

MICR characters are printed in special typefaces with a magnetic ink or toner,
usually containing iron oxide. As a machine decodes the MICR text, it first
magnetizes the characters in the plane of the paper. Then the characters are
passed over a MICR read head, a device similar to the playback head of a tape
recorder. As each character passes over the head produces a unique
waveform that can be easily identified by the system. MICR technology is
used in the banking industry in many countries including Bangladesh because
it allows for fast and reliable document processing.

The major MICR fonts used around the world are E-13B and CMC-7. The E-
13B character set is as under:

Whereas CMC-7 character set is as follows:

1.4. Cheque Truncation

Cheque Truncation is the process of stopping the flow of the physical cheque
issued by a drawer to the drawee branch. The physical instrument will be
truncated at some point en-route to the drawee branch and an electronic
image of the cheque would be sent to the drawee branch along with the
relevant information like the MICR fields, date of presentation, presenting
banks etc. Thus with the implementation of cheque truncation, the need to
move the physical instruments across branches/ banks would not be
required, except in exceptional circumstances. This would effectively reduce
the time required for payment of cheques, the associated cost of transit and
delay in processing, etc., thus speeding up the process of collection or
realization of the cheques.

The Cheque Truncation System, CTS envisages a safe, secured, faster and
effective system for clearing of the cheques. In the CTS the presenting bank
will capture the data & images of the cheques using their Image Capture
System which is internal to them. They have to meet the specifications and
standards prescribed for data and images. To ensure security, safety and non-
repudiation the PKI (Public Key Infrastructure) is being implemented across
the system. The banks will send the captured images and data to the central
clearing house for onward transmission to the payee/ drawee banks.

For the above purpose, Bangladesh Bank has provided all the banks a
software called Participating Bank Module, PBM which enables them to
connect and transmit data in a secure way and with non-repudiation to the
Clearing House (CH). The Clearing House will process the data and arrive at
the settlement figure for the banks and send the required data to payee/
drawee banks for processing at their end. The drawee/ payee banks will use
their PBM mentioned earlier for receiving the data and images from the
Clearing House. It will be the responsibility of the drawee bank Capture
System to process the inward data and images and generate the return file
for unpaid instruments.
The Generic Truncation practices are as under:

The infrastructure required for CTS from bank's end are connectivity from the
bank gateway to the clearing house, hardware and software for the CTS
applications. Bangladesh Bank shall be providing member banks with the PM
and the banks have to procure other hardware and system software for the
CH and the application software for their capture systems on their own.

Some of the benefits of such system are:

• Faster clearing cycle

• Better reconciliation/ verification process
• Better Customer Service, Enhanced Customer Window
• T+0 or T+1 day Clearing
 • Elimination of Float. Incentive to shift to Credit Push payments
• The jurisdiction of Clearing House can be extended to the entire
country. No Geographical Dependence
• Operational Efficiency will benefit the bottom lines of banks
• Minimises Transaction Costs
• Reduces operational risk by securing the transmission route

1.5. RTGS (Real Time Gross Settlement)

Real Time Gross Settlement (RTGS) systems are funds transfer systems where
transfer of money or securities takes place from one bank to another on a
"real time" and on "gross" basis. This is the fastest possible money transfer
system through the banking channel. Settlement in "real time" means
payment transaction is not subjected to any waiting period. The transactions
are settled as soon as they are processed. "Gross settlement" means the
transaction is settled on one to one basis without bunching or netting with
any other transaction. Considering that money transfer takes place in the
books of the Central Bank, the payment is taken as final and irrevocable.

1.6. BACH (Bangladesh Automated Clearing House)

Bangladesh Bank has taken up the project of automating the payment

systems of the country in the name of “Bangladesh Automated Clearing
House” (BACH). The project BACH is divided into two parts:

i) BACPS (Bangladesh Automated Cheque Processing

Systems) and ii) BEFTN (Bangladesh Electronic Funds
Transfer Network)

1.6.1. Bangladesh Automated Cheque Processing Systems (BACPS)

Bangladesh Bank has launched the BACPS in 2010. BACPS has been
implemented with cheque imaging and truncation activities.

Accordingly the cheque design for the Banks has been standardized. The size,
security features and paper specifications have been informed to the
financial institutions. The new cheque leaf contains Magnetic Ink Character
Recognition (MICR) line which has been designed to provide information on
the amount, transaction code, clients account information, routing number
and the cheque leaf's serial number.

The new routing numbers have been assigned to the bank branches for easy
identification of origin and destination of a cheque. The routing number
comprises of 9 digits. The first 3 digits are Bank codes, next 2 digits are
district codes, following 3 digits are branch code and the last digit is the check
digit.

The system will support both intra-regional and inter-regional clearings. The
system is based on a centralized processing centre located in Dhaka and its
Service Branches at 64 districts. The proposed processes and systems will
conform to best practices and also will represent the most cost effective
solution for cheque processing. The first phase of BACPS project, i.e, Dhaka
Clearing House is in operation since October 7, 2010.

1.6.2. Bangladesh Electronic Funds Transfer Network (BEFTN)

BEFTN will operate as a processing and delivery centre providing for the
distribution and settlement of electronic debit and credit instruments among
all participating banks. The BEFTN Network is envisaged as a system of
participating banks connected with the EFT Operator via communication
lines. This network will facilitate the transmission of payments between the
banks electronically, which will make faster and efficient means of inter-bank
clearing than the existing paper-based system.

The Network will start with simple credit transactions and gradually progress
to debit transactions. This will dramatically bring down the operational cost,
reduce risk and will also increase the efficiency of the payments process.

BEFTN, a mode of electronic fund transfer, operates on a deferred net

settlement (DNS) basis which settles transactions in batches. In DNS, the
settlement takes place at a particular point of time. All transactions are held
up till that time. For example, if EFT settlement takes place 2 times a day
during the week days (as for example at 11.00 am & 3:00 pm), any
transaction initiated after a designated settlement time would have to wait
till the next designated settlement time. Contrary to this, in RTGS,
transactions are processed continuously throughout the RTGS business
hours.

2. Additional Banking Applications

2.1. ERP Software

2.1.1 What is ERP System?

ERP (Enterprise Resource Planning) is an integrated computer-based system

used to manage internal and external resources, including tangible assets,
financial resources, materials, and human resources. Its purpose is to
facilitate the flow of information between all business functions inside the
boundaries of the organization and manage the connections to outside
stakeholders. Built on a centralized database and normally utilizing a
common computing platform, ERP systems consolidate all business
operations into a uniform and enterprise-wide system environment.

An ERP system can either reside on a centralized server or be distributed

across modular hardware and software units that provide "services" and
communicate on a local area network. The distributed design allows a
business to assemble modules from different vendors without the need for
the placement of multiple copies of complex and expensive computer
systems in areas which will not use their full capacity.

To be considered an ERP system, a software package should have the

following traits:

• Should be integrated and operate in real time with no periodic batch

updates.
• All applications should access one database to prevent redundant data
and multiple data definitions.
• All modules should have the same look and feel.
• Users should be able to access any information in the system without
needing integration work on the part of the IS department.

2.1.2 Components / Modules of an ERP Software:

• Transactional Backbone o Financials o Distribution o Human

Resources
o Product lifecycle management

• Advanced Applications o Customer Relationship Management (CRM)

o Supply chain management software
 Purchasing
 Manufacturing
 Distribution o Warehouse Management System
 • Management Portal/Dashboard o Decision Support System

In a Bank, the following modules may be useful:

• Human Resources Management (HRM)

• Customer Relationship Management (CRM)
• Supply chain management o Purchasing o Distribution
• Warehouse Management (Asset Management)

2.1.3. Components of an ERP System

a) Manufacturing:

Engineering, bills of material, work orders, scheduling, capacity,

workflow management, quality control, cost management,
manufacturing process, manufacturing projects, manufacturing flow.

b) Supply chain management:

Order to cash, inventory, order entry, purchasing, product

configurator, supply chain planning, supplier scheduling, inspection of
goods, claim processing, commission calculation

c) Financials:

General ledger, cash management, accounts payable, accounts

receivable, fixed assets

d) Project management:
 Costing, billing, time and expense, performance units, activity
management

e) Human resources:

Human resources, payroll, training, time and attendance, rostering,

benefits

f) Customer relationship management:

Sales and marketing, commissions, service, customer contact, call-

center support

g) Data services:

Various "self-service" interfaces for customers, suppliers and/or

employees

h) Access control:

Management of user privileges for various processes

2.1.4. ERP advantages and disadvantages

Advantages

• Allows easier global integration (barriers of currency exchange rates,

language, and culture can be bridged automatically)
• Updates only need to be done once to implemented company-wide
 • Provides real-time information, reducing the possibility of redundancy
errors
• May create a more efficient work environment for employees
• Vendors have past knowledge and expertise on how to best build and
implement a system

Disadvantages

• Locked into relationship by contract and manageability with vendor - a

contract can hold a company to the vendor until it expires and it can be
unprofitable to switch vendors if switching costs are too high
• Inflexibility - vendor packages may not fit a company's business model
exactly and customization can be expensive
• Return on Investment may take too long to be profitable
• Implementations have a risk of project failure

2.1.5. Renowned ERP Software:

2.1.5.1. SAP ERP from SAP

SAP (Systems Analysis and Program development) is a German software

corporation that provides enterprise software applications and support to
businesses of all sizes globally. Headquartered in Walldorf, Germany, with
regional offices around the world, SAP is the largest enterprise software
company in the world (as of 2009). It is also the largest software company in
Europe and the fourth largest globally. The company's best known products
are its SAP Enterprise Resource Planning (SAP ERP) and SAP Business Objects
software.

The SAP ERP application is an integrated enterprise resource planning (ERP)

software manufactured by SAP AG that targets business software
requirements of midsize and large organizations in all industries and sectors.
It allows for open communication within and between all company functions.
SAP's ERP solution includes several modules that support key functional
areas, including:

• SAP ERP Financials

• SAP ERP Operations
• SAP ERP Human Capital Management

2.1.5.2. PeopleSoft ERP from Oracle

Oracle Corporation is an American multinational computer technology

corporation that specializes in developing and marketing enterprise software
products — particularly database management systems. Headquartered in
Redwood Shores, California, United States, Oracle employs 105,000 people
worldwide as of 1 July 2010. It has enlarged its share of the software market
through organic growth and through a number of high-profile acquisitions. By
2007 Oracle had the third-largest software revenue, after Microsoft and IBM.

The corporation has arguably become best-known for its flagship product,
the Oracle Database. The company also builds tools for database
development and systems of middle-tier software, enterprise resource
planning software (ERP), customer relationship management software (CRM)
and supply chain management (SCM) software.

As of 2010, Larry Ellison, a co-founder of Oracle Corporation, has served as

Oracle's CEO throughout its history. Ellison also served as the Chairman of the
Board until his replacement by Jeffrey O. Henley in 2004. Ellison retains his
role as CEO. On August 22, 2008 the Associated Press ranked founder Larry
Ellison as the top-paid chief executive in the world.

PeopleSoft, Inc. was a company that provided human resource management

systems (HRMS) and customer relationship management (CRM) software, as
well as software solutions for manufacturing, financials, enterprise
performance management, and student administration to large corporations,
governments, and organizations. It existed as an independent corporation
until its acquisition by Oracle Corporation in 2005. The PeopleSoft name and
product line are now marketed by Oracle.

History of PeopleSoft:

• 1987: PeopleSoft, Inc. founded by David Duffield and Ken Morris in

Walnut Creek, CA, USA.
• 1988: PeopleSoft HRMS released.
• 1994: Public distribution of Distribution and Financials modules.
• 1995: Launch of Student Administration System.
• 1996: Releases Manufacturing
• 1996: Releases PeopleSoft 6, their first ERP package.
• 2005: Acquired by Oracle Corporation.
• 2009: PeopleSoft HCM 9.1 is released.(October 2009)
• 2009: PeopleSoft FMS 9.1 is released.(November 2009)

2.2. CRM Software

2.2.1. What is CRM?

CRM (Customer relationship management) is a widely-implemented strategy

for managing a company’s interactions with customers, clients and sales
prospects. It involves using technology to organize, automate, and
synchronize business processes—principally sales activities, but also those for
marketing, customer service, and technical support.

The overall goals are to find, attract, and win new clients, nurture and retain
those the company already has, entice former clients back into the fold, and
reduce the costs of marketing and client service. Customer relationship
management describes a company-wide business strategy including
customer-interface departments as well as other departments

The three phases in which CRM support the relationship between a business
and its customers are to:

• Acquire: CRM can help a business acquire new customers through

contact management, selling, and fulfillment.

• Enhance: web-enabled CRM combined with customer service tools

offers customers service from a team of sales and service specialists,
which offers customers the convenience of one-stop shopping.

• Retain: CRM software and databases enable a business to identify and

reward its loyal customers and further develop its targeted marketing
and relationship marketing initiatives

2.2.2. Fields of application:

2.2.2.1. Sales force automation

Sales force automation (SFA) involves using software to streamline all phases
of the sales process, minimizing the time that sales representatives need to
spend on each phase. This allows sales representatives to pursue more
clients in a shorter amount of time than would otherwise be possible. At the
heart of SFA is a contact management system for tracking and recording
every stage in the sales process for each prospective client, from initial
contact to final disposition. Many SFA applications also include insights into
opportunities, territories, sales forecasts and workflow automation, quote
generation, and product knowledge. Modules for Web 2.0 e-commerce and
pricing are new, emerging interests in SFA.[1]

2.2.2.2. Marketing
CRM systems for marketing help the enterprise identify and target potential
clients and generate leads for the sales team. A key marketing capability is
tracking and measuring multichannel campaigns, including email, search,
social media, telephone and direct mail. Metrics monitored include clicks,
responses, leads, deals, and revenue. This has been superseded by marketing
automation and Prospect Relationship Management (PRM) solutions which
track customer behaviour and nurture them from first contact to sale, often
cutting out the active sales process altogether.

2.2.2.3. Customer service and support

Recognizing that service is an important factor in attracting and retaining

customers, organizations are increasingly turning to technology to help them
improve their clients’ experience while aiming to increase efficiency and
minimize costs. Even so, a 2009 study revealed that only 39% of corporate
executives believe their employees have the right tools and authority to solve
client problems. The core for these applications has been and still is
comprehensive call center solutions, including such features as intelligent call
routing, computer telephone integration (CTI), and escalation capabilities.

2.2.2.4. Analytics

Relevant analytics capabilities are often interwoven into applications for

sales, marketing, and service. These features can be complemented and
augmented with links to separate, purposebuilt applications for analytics and
business intelligence. Sales analytics let companies monitor and understand
client actions and preferences, through sales forecasting and data quality.
Marketing applications generally come with predictive analytics to improve
segmentation and targeting, and features for measuring the effectiveness of
online, offline, and search marketing campaign. Web analytics have evolved
significantly from their starting point of merely tracking mouse clicks on Web
sites. By evaluating “buy signals,” marketers can see which prospects are
most likely to transact and also identify those who are bogged down in a
sales process and need assistance. Marketing and finance personnel also use
analytics to assess the value of multi-faceted programs as a whole.

These types of analytics are increasing in popularity as companies demand

greater visibility into the performance of call centers and other service and
support channels,[6] in order to correct problems before they affect
satisfaction levels. Support-focused applications typically include dashboards
similar to those for sales, plus capabilities to measure and analyze response
times, service quality, agent performance, and the frequency of various
issues.

2.2.2.5. Integrated/Collaborative

Departments within enterprises — especially large enterprises — tend to

function with little collaboration. More recently, the development and
adoption of these tools and services have fostered greater fluidity and
cooperation among sales, service, and marketing. This finds expression in the
concept of collaborative systems which uses technology to build bridges
between departments. For example, feedback from a technical support
center can enlighten marketers about specific services and product features
clients are asking for. Reps, in their turn, want to be able to pursue these
opportunities without the burden of re-entering records and contact data
into a separate SFA system. Owing to these factors, many of the top-rated
and most popular products come as integrated suites.
2.2.3. Software for CRM

SAP, Oracle, Salesforce.com, Microsoft and Amdocs are the best selling
software, according to the Gartner (www.gartner.com).

2.3. E-mail software

2.3.1. What is e-mail?

Electronic mail, commonly called email or e-mail, is a method of exchanging

digital messages across the Internet or other computer networks.

In the manual systems of sending mail within an office, the mails are passed
through persons from one department to another. It takes mush time and it
is risky also .This leads the inconsistency of information. So we need a system
which is both quick and accurate. This can be achieved by mailing system.

Electronic mailing system sends the mails spontaneously without requiring

the parties be available at the same instant. Furthermore mails can be send
to more people at the same time. It also leaves a written copy of the sending
mails that can be filed away. It is much cheaper than the manual system.

2.3.2. Operation Overview:

The diagram below shows a typical sequence of events that takes place when
Alice composes a message using her mail user agent (MUA). She enters the
email address of her correspondent, and hits the "send" button.

1. Alice’s MUA formats the message in email format and uses the Simple
Mail Transfer Protocol (SMTP) to send the message to the local mail
transfer agent (MTA), in this case smtp.a.org, run by Alice's internet
service provider (ISP).

2. The MTA looks at the destination address provided in the SMTP

protocol (not from the message header), in this case [email protected]. An
Internet email address is a string of the form
localpart@exampledomain. The part before the @ sign is the local part
of the address, often the username of the recipient, and the part after
the @ sign is a domain name or a fully qualified domain name. The
MTA resolves a domain name to determine the fully qualified domain
name of the mail exchange server in the Domain Name System (DNS).
 3. The DNS server for the b.org domain, ns.b.org, responds with any MX
records listing the mail exchange servers for that domain, in this case
mx.b.org, a server run by Bob's ISP.

4. smtp.a.org sends the message to mx.b.org using SMTP, which delivers

it to the mailbox of the user bob.

5. Bob presses the "get mail" button in his MUA, which picks up the
message using the Post Office Protocol (POP3).

2.3.3. Components in a messaging system:

E-mail Architecture addresses those technologies used to enable the

electronic delivery of messages and documents to one or more recipients.
The following provides a list of open source and commercially available
software for use as different components like Mail Transfer Agents, Mail User
Agents and Gateways:

1. Mail Transfer Agents:

A. Open Source: Sendmail E-mail Application Server
Qmail E-mail Application Server

B. Commercial: MS Exchange E-mail Application Server

Lotus Domino E-mail Application Server

2. Mail User Agents:

A. Commercial: Lotus Notes E-mail Client
Outlook E-mail Client

Outlook Express E-mail Client

Eudora E-mail Client

3. Gateways:
 A. Commercial: Lotus Message Switch E-mail Gateway
Outlook Web Access E-mail Gateway

2.3.4. Popular E-mail System:

2.3.4.1. Sendmail:

Sendmail is a general purpose internetwork email routing facility that

supports many kinds of mail-transfer and -delivery methods, including the
Simple Mail Transfer Protocol (SMTP) used for email transport over the
Internet.

2.3.4.2. Qmail:.

qmail is a mail transfer agent (MTA) that runs on Unix. It was written, starting
December 1995, by Daniel J. Bernstein as a more secure replacement for the
popular Sendmail program. qmail's source code is in the public domain,
making qmail free software.

2.3.4.3. Microsoft Exchange Server:

Microsoft Exchange Server is the server side of a client–server, collaborative

application product developed by Microsoft. It is part of the Microsoft
Servers line of server products and is used by enterprises using Microsoft
infrastructure products. Exchange's major features consist of electronic mail,
calendaring, contacts and tasks; support for mobile and web-based access to
information; and support for data storage.

2.3.4.4. Lotus Domino:

IBM Lotus Domino software is a world class platform for critical business,
collaboration, and messaging applications.

2.3.5. Licensing of commercial product:

2.3.5.1. Exchange Server:

Exchange Server is licensed in the Server / Client Access License (CAL) model.
A license must be assigned for each instance of the server software that is
being run. Exchange also requires a CAL for each user or device that accesses
the server software. There are two types of CALs for Exchange:

• Standard CAL: designed to help users be more productive from

virtually any platform, browser, or mobile device, with new features in
Exchange Server 2010 that help manage communications overload and
lower helpdesk costs.

• Enterprise CAL: designed to allow organizations to reduce the costs

and complexity of meeting compliance requirements with new
integrated archiving functionality and information protection
capabilities, while also helping users cut costs by replacing legacy voice
mail systems with Unified Messaging.

Users also require license for Server Software, Microsoft Outlook and
Forefront Online Security.

2.3.5.2. Lotus Domino:

IBM offers users three ways to license IBM Lotus Notes and Domino software
to match their buying preferences and let them pay according to the function
and flexibility they need.
If users prefer client and server licensing, they can acquire IBM Lotus Domino
server licenses determined by the total processor value units associated with
their server machine(s) plus individual Client Access Licenses for each user.

If users prefer per user licensing, they pay a per user charge based on the size
of their environment, and have the flexibility to deploy any combination of
specified types of IBM Lotus Domino server and client access options.

If users wish to host collaborative applications for access both outside and
inside their company, but do not need mail and calendar, processor value
unit licensing may be the most cost effective for them.

In both cases, if users are willing to deploy additional component like email
security appliance, then this will add additional licensing cost to the overall
system.

2.4. Anti-Virus software

2.4.1. What is antivirus software?

Antivirus software is a computer program that detects, prevents, and takes

action to disarm or remove malicious software programs, such as viruses and
worms. You can help protect your computer against viruses by using antivirus
software.

Computer viruses are software programs that are deliberately designed to

interfere with computer operation, record, corrupt, or delete data, or spread
themselves to other computers and throughout the Internet.
In the past, PCs were mainly under threat from viruses and worms. The main
purpose of these programs was to spread; however, some programs were
also designed to cause damage to files and PCs. Such malicious software, or
“malware”, could be described as ‘cyber vandalism’. In the majority of cases,
the goal of viruses and worms was to spread as much as possible, with a high
infection rate leading to fame for that program.

But in recent years, the situation has changed drastically. Today, the biggest
threat faced by computers is crime ware. This malicious software is written
by cybercriminals with the purpose of making money illegally. Crime ware
may take the form of viruses, worms, Trojans or other malicious programs.

To help prevent the most current viruses, we must update our antivirus
software regularly. Now a day, we can set up most types of antivirus software
to update automatically.

2.4.2. How Antivirus works?

Antivirus uses number of techniques to identify viruses.

2.4.2.1. Signature based detection:

This is also known as dictionary approach. Each virus has its own way of
attack. Signatures of the attacks are stored in antivirus database. To identify
viruses, antivirus software compares the contents of a file to a dictionary of
virus signatures. If a piece of code in the file matches any virus identified in
the dictionary, the anti-virus software can then either delete the file,
quarantine it so that the file is inaccessible to other programs and its virus is
unable to spread, or attempt to repair the file by removing the virus itself
from the file. For signature based detection antivirus software need to be
updated with current virus signature database. Antivirus can take update
from internet or by installing latest patches provided by the antivirus
company.

2.4.2.2. Behavior Based Detection:

Antivirus identifies abnormal or unusual behavior (anomalies) on a host or

PC. The basic idea comes from the assumption that attacks are different from
“normal” (legitimate) activity of a file and therefore detect intrusions by
identifying these differences. If one program tries to write data to an
executable program, for example, this is flagged as suspicious behavior and
the user is alerted to this, and asked what to do.

Antivirus can be installed and maintained only on client PC and take updates
from internet. Moreover in LAN environment antivirus clients are installed on
client PCs and managed from server-end. For this case server takes update
from internet and distribute updates to client PCs.

2.4.3. Licensing:

Most of the commercial antivirus software end-user license agreements

include one year subscription. User is asked for renewal 30 to 60 days before
the license expiration. Purchasers provide bill for new license and get new
activation code or serial number from the antivirus company. Antivirus fails
to update the virus signature database if license is not renewed and
computer security becomes compromised against new attack. Some antivirus
programs are free to download but not effective as other commercial
antivirus.

2.4.4. Popular Antivirus programs:

There are number of popular antiviruses available in the market such as
Mcafee, Kaspersky, NOD32, Avsat, AVG etc. Some antivirus companies
provide web security, email security, desktop management, PC solution, IDS
(Intrusion Detection System), firewall as part of antivirus software package.
For example, Kaspersky antivirus comes up with firewall and email security.
Sometimes extra subscription fee is charged for each new module added to
the antivirus software.

2.5. Anti-malware software

Malware is designed to cause damage to a stand-alone computer or a PC in a

network. So wherever a malware term is used it means a program which is
designed to damage a computer system - it may be a virus, worm or Trojan.

Virus is a program that embeds itself in some other executable software

(including the operating system itself) on the target system without the user's
consent and when that is run causes the virus to spread to other executable.

Warm is a stand-alone malware program that actively transmits itself over a

network to infect other computers.

Trojans generally do not attempt to inject themselves into other files or

otherwise propagate themselves. It misrepresents itself to appear useful,
routine, or interesting in order to persuade a victim to install it

Anti-malware software is a type of software program created to protect

computer systems from malicious software, or malware. Anti-malware
programs scan a computer system to prevent, detect and remove malware.
Antivirus software is designed to detect and remove viruses and other
malicious software from a system, whereas anti-malware software is a
program that safeguards the system from all sorts of malware, including
Virus, Trojans and worms.

McAfee, Norton, Kaspersky, Webroot, Avast, Trend Micro are the

commercially available antimalware software.
Questions

1. What is a Cheque Processing System?

2. Name four clearing systems that are in operation in Bangladesh.

3. Narrate the conventional cheque clearing process.

4. Define MICR, Cheque Truncation and RTGS.

5. What is BACH? What are the two parts of BACH? Narrate them.

6. What is a large value cheque settlement? How this is different than the
normal cheque settlement?

7. What are the current timing in force for different clearing systems?

8. How MICR differs from a bar code?

9. How cheque truncation helps to stop physical movement of cheque?

10. What is PBM or participating Bank module in clearing system?

11. What are the benefits of a cheque truncation system over a traditional
cheque clearing system?

12. What is the basic difference between RTGS and BEFTN?

13. What is routing number? What are the significance of digits of a routing
number?

14. Why ERP software is used in banks?

15. Name a few components or modules of an ERP system.

16. Name two renowned commercial ERP software. Who are manufacturer of
them?

17. Why a CRP software is used in a bank?

18. Brief in short the fields of application of a CRM software.

19. Narrate the importance of an email software.

20. Narrate in brief the four commercially used email systems?

21. Write the licensing policy of Exchange Server or Lotus Domino.

22. What is the difference between Virus and Malware? Name a few available
Virus and Malware.

23. How an anti-virus software and an anti-malware software differs from

each other?

24. Name five of each of the anti-virus software and an anti-malware

software.