A PROJECT REPORT

ON
“BANK MANAGEMENT SYSTEM”

PM SHRI KENDRIYA VIDYALAYA ARA

PATNA REGION

SUBMITTED BY
NAME : ANKITA SINGH
ROLL NO : 03
CLASS : XII – ‘B’
GROUP MEMBERS : BANDANA KUMARI,KUMARI SHAKCHI

Under the Guidance of

Dr. Anu Aujla
PGT-CS
 DECLARATION

This is to certify that the Project Report entitled “BANK MANAGEMENT

SYSTEM” which is submitted to the department of computer science, PM SHRI
Kendriya Vidyalaya Ara , Patna region is prepared by me. All the coding is the
result of my personal effort and due acknowledgement has been made in the text
to all other material used.

Date:

Name of Student: ANKITA SINGH

APPROVED BY-

Name of Subject Teacher/Guide: Dr. Anu Aujla

1
 TABLE OF CONTENT

PAGE
SER DESCRIPTION
NO

01 CERTIFICATE 3

02 ACKNOWLEDGEMENT 4

03 INTRODUCTION 5

04 OBJECTIVES OF THE PROJECT 6

05 PROPOSED SYSTEM 7

06 SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) 8

07 PHASES OF SYSTEM DEVELOPMENT LIFE CYCLE 9

08 FLOW CHART 10-17

09 SOURCE CODE 18-21

10 OUTPUT 22-24

11 TESTING 25-27

12 HARDWARE AND SOFTWARE REQUIREMENTS 28

13 REFERNCES 29

2
 CERTIFICATE

This is to certify that the Project Report entitled “BANK MANAGEMENT

SYSTEM” which is submitted by ANKITA SINGH and group in partial
fulfillment of the requirement for the award of practical marks for Computer
Science, CBSE board Examination is a record of the candidate’s own work
carried out by her under my supervision.

External Teacher Signature Internal Teacher Signature

3
 ACKNOWLEDGEMENT

I pay my gratitude and sincere regards to Dr. Anu Aujla, my project guide for
giving me the cream of his knowledge. I am thankful to her as she has been a
constant source of advice, motivation and inspiration. I am also thankful to her
for giving her suggestions and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our Principal,

Teachers and library staff for providing me the opportunity to utilize their
resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to

complete the project and providing me an environment which enhanced my
knowledge.

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 PROJECT ON “BANK MANAGEMENT SYSTEM”

INTRODUCTION
The Bank Management System is a comprehensive software solution designed to

automate and streamline various banking operations. This system allows banks

to manage customer accounts, process transactions, generate reports, and

maintain records efficiently. The primary objective of this project is to develop a

user-friendly interface that enables both bank employees and customers to

perform banking tasks seamlessly.

The system will include features such as account creation, balance inquiries, fund

transfers, loan management, and transaction history. By implementing this

system, banks can enhance their operational efficiency, reduce manual errors, and

provide better customer service.

OBJECTIVES OF THE PROJECT

The primary objective of the Bank Management System project is to develop a

software application that automates and streamlines various banking operations,

providing an efficient and user-friendly interface for both bank employees and

customers. The project aims to:

1. Enhance Operational Efficiency: Reduce the time and effort required to

perform routine banking tasks, such as account creation, fund transfers, and

loan management, by automating these processes.

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2. Improve Customer Service: Provide customers with easy access to their

accounts, allowing them to perform transactions and inquiries at their

convenience, thereby improving customer satisfaction.

3. Minimize Manual Errors: Reduce the likelihood of human errors in

banking transactions and record-keeping by implementing automated

processes and validations.

4. Secure Data Management: Ensure the security and confidentiality of

customer information through robust authentication and authorization

mechanisms.

5. Generate Comprehensive Reports: Enable the generation of detailed

reports on various banking activities, which can aid in decision-making and

regulatory compliance.

6. Scalability and Flexibility: Design the system to be scalable and flexible,

allowing for future enhancements and integration with other banking

systems

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PROPOSED SYTEM
1.Account Management Module

o Creation, updating, and deletion of customer accounts

o Managing different types of accounts (savings, current, fixed deposit, etc.)
o Handling customer information securely

2.Transaction Management Module

o Processing deposits, withdrawals, and fund transfers

o Real-time balance updates and transaction recording
o Generating transaction receipts and statements

3.Loan Management Module

o Handling loan applications, approvals, and disbursements

o Managing loan repayment schedules and interest calculations
o Tracking overdue payments and generating reminders

4.Report Generation Module

o Creating detailed reports on various banking activities (e.g., daily transactions,

account summaries)
o Customizable report templates for different user needs
o Facilitating regulatory compliance and decision-making

5.Security and Authentication Module

o Implementing secure login mechanisms with multi-factor authentication

o Ensuring data encryption and secure communication channels
o Role-based access control to limit unauthorized access

6.Customer Interface

o Providing a user-friendly interface for customers to access their accounts

online
o Enabling customers to perform transactions, view account details, and request
services
o Offering customer support features such as chat and feedback forms

7.Administration Interface

o Allowing bank employees to manage day-to-day operations efficiently

o Providing tools for account verification, transaction approval, and report
generation
o Facilitating communication and coordination among different departments

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SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

The systems development life cycle is a project management technique that

divides complex projects into smaller, more easily managed segments or phases.
Segmenting projects allows managers to verify the successful completion of
project phases before allocating resources to subsequent phases.

Software development projects typically include initiation, planning, design,

development, testing, implementation, and maintenance phases. However, the
phases may be divided differently depending on the organization involved.

For example, initial project activities might be designated as request,

requirements-definition, and planning phases, or initiation, concept-development,
and planning phases. End users of the system under development should be

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involved in reviewing the output of each phase to ensure the system is being built
to deliver the needed functionality.

PHASES OF SYSTEM DEVELOPMENT LIFE CYCLE

INITIATION PHASE

The Initiation Phase begins when a business sponsor identifies a need or an

opportunity.

The purpose of the Initiation Phase is to:

• Identify and validate an opportunity to improve business accomplishments

of the organization or a deficiency related to a business need.
• Identify significant assumptions and constraints on solutions to that need.
• Recommend the exploration of alternative concepts and methods to satisfy
the need including questioning the need for technology, i.e., will a change
in the business process offer a solution?
• Assure executive business and executive technical sponsorship. The
Sponsor designates a Project Manager and the business need is documented
in a Concept Proposal. The Concept Proposal includes information about
the business process and the relationship to the Agency/Organization.
• Infrastructure and the Strategic Plan. A successful Concept Proposal results
in a Project Management Charter which outlines the authority of the project
manager to begin
the project.

Careful oversight is required to ensure projects support strategic business

objectives and resources are effectively implemented into an organization's

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enterprise architecture. The initiation phase begins when an opportunity to add,
improve, or correct a system is identified and formally requested through the
presentation of a business case. The business case should, at a minimum, describe
a proposal’s purpose, identify expected benefits, and explain how the proposed
system supports one of the organization’s business strategies. The business case
should also identify alternative solutions and detail as many informational,
functional, and network requirements as possible.

SYSTEM CONCEPT DEVELOPMENT PHASE

The System Concept Development Phase begins after a business need or

opportunity is validated by the Agency/Organization Program Leadership and the
Agency/Organization CIO.

The purpose of the System Concept Development Phase is to:

• Determine the feasibility and appropriateness of the alternatives.

• Identify system interfaces.
• Identify basic functional and data requirements to satisfy the business need.
• Establish system boundaries; identify goals, objectives, critical success
factors, and performance measures.
• Evaluate costs and benefits of alternative approaches to satisfy the basic
functional requirements
• Assess project risks
• Identify and initiate risk mitigation actions, and Develop high-level
technical architecture, process models, data models, and a concept of
operations. This phase explores potential technical solutions within the
context of the business need.

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• It may include several trade-off decisions such as the decision to use
COTS software products as opposed to developing custom software or
reusing software components, or the decision to use an incremental
delivery versus a complete, onetime deployment.
• Construction of executable prototypes is encouraged to evaluate
technology to support the business process. The System Boundary
Document serves as an important reference document to support the
Information Technology Project Request (ITPR) process.
• The ITPR must be approved by the State CIO before the project can move
forward.

PICTORIAL REPRESENTATION OF SDLC:

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PLANNING PHASE

The planning phase is the most critical step in completing development,

acquisition, and maintenance projects. Careful planning, particularly in the early
stages of a project, is necessary to coordinate activities and manage project risks
effectively. The depth and formality of project plans should be commensurate
with the characteristics and risks of a given project. Project plans refine the
information gathered during the initiation phase by further identifying the specific
activities and resources required to complete a project.

A critical part of a project manager’s job is to coordinate discussions between

user, audit, security, design, development, and network personnel to identify and
document as many functional, security, and network requirements as possible.
During this phase, a plan is developed that documents the approach to be used
and includes a discussion of methods, tools, tasks, resources, project schedules,
and user input. Personnel assignments, costs, project schedule, and target dates
are established.
A Project Management Plan is created with components related to acquisition
planning, configuration management planning, quality assurance planning,
concept of operations, system security, verification and validation, and systems
engineering management planning.

REQUIREMENTS ANALYSIS PHASE

This phase formally defines the detailed functional user requirements using high-
level requirements identified in the Initiation, System Concept, and Planning
phases. It also delineates the requirements in terms of data, system performance,
security, and maintainability requirements for the system. The requirements are
defined in this phase to a level of detail sufficient for systems design to proceed.

12
They need to be measurable, testable, and relate to the business need or
opportunity identified in the Initiation Phase. The requirements that will be used
to determine acceptance of the system are captured in the Test and Evaluation
Master Plan.

The purposes of this phase are to:

• Further define and refine the functional and data requirements and
document them in the Requirements Document,
• Complete business process reengineering of the functions to be supported
(i.e., verify what information drives the business process, what
information is generated, who generates it, where does the information
go, and who processes it),
• Develop detailed data and process models (system inputs, outputs, and
the process.
• Develop the test and evaluation requirements that will be used to
determine acceptable system performance.

DESIGN PHASE

The design phase involves converting the informational, functional, and network
requirements identified during the initiation and planning phases into unified
design specifications that developers use to script programs during the
development phase. Program designs are constructed in various ways. Using a
top-down approach, designers first identify and link major program components
and interfaces, then expand design layouts as they identify and link smaller
subsystems and connections. Using a bottom-up approach, designers first identify
and link minor program components and interfaces, then expand design layouts
as they identify and link larger systems and connections. Contemporary design

13
techniques often use prototyping tools that build mock-up designs of items such
as application screens, database layouts, and system architectures. End users,
designers, developers, database managers, and network administrators should
review and refine the prototyped designs in an iterative process until they agree
on an acceptable design. Audit, security, and quality assurance personnel should
be involved in the review and approval process. During this phase, the system is
designed to satisfy the functional requirements identified in the previous phase.
Since problems in the design phase could be very expensive to solve in the later
stage of the software development, a variety of elements are considered in the
design to mitigate risk. These include:

• Identifying potential risks and defining mitigating design features.

• Performing a security risk assessment.
• Developing a conversion plan to migrate current data to the new system.
• Determining the operating environment.
• Defining major subsystems and their inputs and outputs.
• Allocating processes to resources.
• Preparing detailed logic specifications for each software module. The
result is a draft System Design Document which captures the preliminary
design for the system.
• Everything requiring user input or approval is documented and reviewed
by the user. Once these documents have been approved by the Agency CIO
and Business Sponsor, the final System Design Document is created to
serve as the Critical/Detailed Design for the system.
• This document receives a rigorous review byAgency technical and
functional representatives to ensure that it satisfies the business
requirements. Concurrent with the development of the system design, the
Agency Project Manager begins development of the Implementation Plan,
Operations and Maintenance Manual, and the Training Plan.

14
 DEVELOPMENT PHASE

The development phase involves converting design specifications into

executable programs. Effective development standards include requirements
that programmers and other project participants discuss design specifications
before programming begins. The procedures help ensure programmers clearly
understand program designs and functional requirements. Programmers use
various techniques to develop computer programs. The large transaction
oriented programs associated with financial institutions have traditionally
been developed using procedural programming techniques. Procedural
programming involves the line-by-line scripting of logical instructions that are
combined to form a program.Effective completion of the previous stages is a
key factor in the success of the Development phase. The Development phase
consists of:

• Translating the detailed requirements and design into system components.

• Testing individual elements (units) for usability.
• Preparing for integration and testing of the IT system.

INTEGRATION AND TEST PHASE

• Subsystem integration, system, security, and user acceptance testing is

conducted during the integration and test phase. The user, with those
responsible for quality assurance, validates that the functional
requirements, as defined in the functional requirements document, are
satisfied by the developed or modified system. OIT Security staff assess
the system security and issue a security certification and accreditation prior
to installation/implementation.

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Multiple levels of testing are performed, including:

• Testing at the development facility by the contractor and possibly

supported by end users
• Testing as a deployed system with end users working together with
contract personnel
• Operational testing by the end user alone performing all functions.
Requirements are traced throughout testing,a final Independent
Verification & Validation evaluation is performed and all documentation
is reviewed and accepted prior to acceptance of the system.

IMPLEMENTATION PHASE

This phase is initiated after the system has been tested and accepted by the user.
In this phase, the system is installed to support the intended business functions.
System performance is compared to performance objectives established during
the planning phase. Implementation includes user notification, user training,
installation of hardware, installation of software onto production computers, and
integration of the system into daily work processes. This phase continues until
the system is operating in production in accordance with the defined user
requirements.

OPERATIONS AND MAINTENANCE PHASE

The system operation is ongoing. The system is monitored for continued

performance in accordance with user requirements and needed system
modifications are incorporated. Operations continue as long as the system can be

16
effectively adapted to respond to the organization’s needs. When modifications
or changes are identified, the system may re enter the planning phase.
The purpose of this phase is to:

• Operate, maintain, and enhance the system.

• Certify that the system can process sensitive information.
• Conduct periodic assessments of the system to ensure the functional
requirements continue to be satisfied.
• Determine when the system needs to be modernized, replaced, or retired.

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 SOURCE CODE

================================================================

CODING

• import mysql.connector

def connect():
try:
return mysql.connector.connect(
host="localhost",
user="root",
password="12as12as@",
database="bankmanagementsystem",
auth_plugin="mysql_native_password" # Explicitly set the
authentication plugin
)
except mysql.connector.Error as err:
print(f"Error: {err}")
exit(1)

def execute_query(query, params=None):

db = connect()
cursor = db.cursor()
cursor.execute(query, params)
db.commit()
cursor.close()
db.close()
return cursor

def fetch_query(query, params=None):

db = connect()
cursor = db.cursor()
cursor.execute(query, params)
results = cursor.fetchall()
cursor.close()
db.close()
return results
• from database import execute_query, fetch_query

def create_account(AccountNumber, Username, balance, UserID):

query = "INSERT INTO accounts (AccountNumber, Username, balance,
UserID) VALUES (%s, %s, %s, %s)"
params = (AccountNumber, Username, balance, UserID)
execute_query(query, params)

def view_account(AccountNumber):
query = "SELECT * FROM accounts WHERE AccountNumber = %s"
params = (AccountNumber,)
return fetch_query(query, params)

def deposit(AccountNumber, amount):

query = "UPDATE accounts SET balance = balance + %s WHERE
AccountNumber = %s"
params = (amount, AccountNumber)
execute_query(query, params)

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 def withdraw( AccountNumber,amount):
query = "SELECT balance FROM accounts WHERE AccountNumber = %s"
params = (AccountNumber,)
balance = fetch_query(query, params)[0][0]
if balance >= amount:
query = "UPDATE accounts SET balance = balance - %s WHERE
AccountNumber = %s"
params = (amount, AccountNumber)
execute_query(query, params)
else:
print("Insufficient balance")
• import bcrypt
from database import execute_query, fetch_query

def register_user(Username, password):

salt = bcrypt.gensalt()
hashed_password = bcrypt.hashpw(password.encode('utf-8'), salt)
print(f"Debug -> Hashed Password: {hashed_password.decode('utf-
8')}") # Added debug statement
query = "INSERT INTO users (Username, PasswordHash) VALUES (%s,
%s)"
params = (Username, hashed_password.decode('utf-8')) # Decode to
string before storing
execute_query(query, params)

def user_exists(Username):
query = "SELECT * FROM users WHERE Username = %s"
params = (Username,)
result = fetch_query(query, params)
return bool(result)

def user_exists_by_id(user_id):
query = "SELECT * FROM users WHERE UserID = %s"
params = (user_id,)
result = fetch_query(query, params)
print(f"Debug -> User Exists by ID: {result}") # Debug statement
return bool(result)

def verify_user(Username, password):

query = "SELECT PasswordHash FROM users WHERE Username = %s"
params = (Username,)
result = fetch_query(query, params)
if result:
stored_password = result[0][0]
print(f"Debug -> Stored Password: {stored_password}") #
Added debug statement
try:
is_valid = bcrypt.checkpw(password.encode('utf-8'),
stored_password.encode('utf-8'))
print(f"Debug -> Verification Result: {is_valid}") #
Added debug statement
return is_valid
except Exception as e:
print(f"Error during verification: {e}")
return False
return False
• import register
import banking

def main():

19
 while True:
print("------------------------------------------------------
------------------------")
print(" WELCOME TO BANK MANAGEMENT
SYSTEM! ")
print("------------------------------------------------------
------------------------")
print("1. Register User")
print("2. Login User")
print("3. Create Account")
print("4. View Account")
print("5. Deposit")
print("6. Withdraw")
print("7. Exit")
try:
choice = int(input("Enter your choice: "))
except ValueError:
print("Invalid input. Please enter a number between 1 and
7.")
continue

if choice == 1:
username = input("Enter username: ")
password = input("Enter password: ")
print(f"Debug -> Registering user: {username}")
if not register.user_exists(username):
register.register_user(username, password)
print("User registered successfully.")
else:
print("Username already exists.")
elif choice == 2:
username = input("Enter username: ")
password = input("Enter password: ")
print(f"Debug -> Verifying user: {username}")
if register.verify_user(username, password):
print("Login successful.")
else:
print("Invalid username or password.")
elif choice == 3:
account_number = input("Enter account number: ")
name = input("Enter name: ")
try:
balance = float(input("Enter initial balance: "))
if balance < 0:
print("Balance cannot be negative.")
continue
except ValueError:
print("Invalid input. Please enter a valid number for
balance.")
continue
user_id = int(input("Enter user ID: "))
print(f"Debug -> Creating account: {account_number}, User
ID: {user_id}")
if not register.user_exists_by_id(user_id):
print("User ID does not exist in users table.")
continue
banking.create_account(account_number, name, balance,
user_id)
print("Account created successfully.")
elif choice == 4:
account_number = input("Enter account number: ")

20
 print(f"Debug -> Viewing account: {account_number}")
account = banking.view_account(account_number)
if account:
print(f"Account Number: {account[0][0]}, Name:
{account[0][1]}, Balance: {account[0][2]}, User ID: {account[0][3]}")
else:
print("Account not found.")
elif choice == 5:
account_number = input("Enter account number: ")
try:
amount = float(input("Enter amount to deposit: "))
if amount <= 0:
print("Amount must be positive.")
continue
except ValueError:
print("Invalid input. Please enter a valid number for
the amount.")
continue
print(f"Debug -> Depositing amount: {amount} to account:
{account_number}")
banking.deposit(account_number, amount)
print("Amount deposited successfully.")
elif choice == 6:
account_number = input("Enter account number: ")
try:
amount = float(input("Enter amount to withdraw: "))
if amount <= 0:
print("Amount must be positive.")
continue
except ValueError:
print("Invalid input. Please enter a valid number for
the amount.")
continue
print(f"Debug -> Withdrawing amount: {amount} from
account: {account_number}")
banking.withdraw(account_number, amount)
elif choice == 7:
break
else:
print("Invalid choice.")

if __name__ == "__main__":
try:
main()
except Exception as e:
print(f"An unexpected error occurred: {e}")
•

21
 OUTPUT
================================================================
USE DATABASES AND SHOW ALL TABLE IN THE DATABASES:1

:2

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MAIN MENU: REGISTER USER

LOGIN USER

CREATE ACCOUNT

23
VIEW ACCOUNT

DEPOSIT AMOUNT

WITHDRAW AMOUNT

EXIT

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TESTING

Software Testing is an empirical investigation conducted to provide stakeholders

with information about the quality of the product or service under test, with
respect to the context in which it is intended to operate. Software Testing also
provides an objective, independent view of the software to allow the business to
appreciate and understand the risks at implementation of the software. Test
techniques include, but are not limited to, the process of executing a program or
application with the intent of finding software bugs.

It can also be stated as the process of validating and verifying that a software
program/application/product meets the business and technical requirements that
guided its design and development, so that it works as expected and can be
implemented with the same characteristics. Software Testing, depending on the
testing method employed, can be implemented at any time in the development
process, however the most test effort is employed after the requirements have
been defined and coding process has been completed.

TESTING METHODS

Software testing methods are traditionally divided into black box testing and
white box testing. These two approaches are used to describe the point of view
that a test engineer takes when designing test cases.

BLACK BOX TESTING

Black box testing treats the software as a "black box," without any knowledge of
internal implementation. Black box testing methods include: equivalence

25
partitioning, boundary value analysis, all-pairs testing, fuzz testing, model-based
testing, traceability matrix, exploratory testing and specification-based testing.

SPECIFICATION-BASED TESTING

Specification-based testing aims to test the functionality of software according to

the applicable requirements.[16] Thus, the tester inputs data into, and only sees
the output from, the test object. This level of testing usually requires thorough
test cases to be provided to the tester, who then can simply verify that for a given
input, the output value (or behaviour), either "is" or "is not" the same as the
expected value specified in the test case. Specification-based testing is necessary,
but it is insufficient to guard against certain risks

ADVANTAGES AND DISADVANTAGES

The black box tester has no "bonds" with the code, and a tester's perception is
very simple: a code must have bugs. Using the principle, "Ask and you shall
receive," black box testers find bugs where programmers don't. But, on the other
hand, black box testing has been said to be "like a walk in a dark labyrinth without
a flashlight," because the tester doesn't know how the software being tested was
actually constructed.

That's why there are situations when (1) a black box tester writes many test cases
to check something that can be tested by only one test case, and/or (2) some parts
of the back end are not tested at all. Therefore, black box testing has the advantage
of "an unaffiliated opinion," on the one hand, and the disadvantage of "blind
exploring," on the other.

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WHITE BOX TESTING

White box testing, by contrast to black box testing, is when the tester has access
to the internal data structures and algorithms (and the code that implement these)

Types of white box testing:-

The following types of white box testing exist:

• api testing - Testing of the application using Public and Private APIs.
• Code coverage - creating tests to satisfy some criteria of code
coverage.

For example, the test designer can create tests to cause all statements in the
program to be executed at least once.
• fault injection methods.
• mutation testing methods.
• static testing - White box testing includes all static testing.

CODE COMPLETENESS EVALUATION

White box testing methods can also be used to evaluate the completeness of a test
suite that was created with black box testing methods. This allows the software
team to examine parts of a system that are rarely tested and ensures that the most
important function points have been tested.

HARDWARE AND SOFTWARE REQUIREMENTS

I.OPERATING SYSTEM : WINDOWS 7 AND ABOVE

27
II. PROCESSOR : INTEL OR AMD

ATHALON(3800+- 4200+ DUAL CORE)

III. MOTHERBOARD : 1.845 OR 915,995 FOR PENTIUM 0R MSI

K9MM-V VIA K8M800+8237R PLUS

CHIPSET FOR AMD ATHLON

IV. RAM : 512MB+

V. Hard disk : SATA 40 GB OR ABOVE

VI. CD/DVD r/w multi drive combo: (If back up required)

VII. FLOPPY DRIVE 1.44 MB : (If Backup required)

VIII. MONITOR 14.1 or 15 -17 inch

IX. Keyboard and mouse

X. Printer : required

SOFTWARE REQUIREMENTS:

• Windows OS
• Python--
• MySQL

28
 REFERENCES

1. Wikipedia: Information on Bank Management System concepts

www.wikipedia.com

2.YouTube: Tutorials and demonstrations related to Bank Management Systems

www.youtube.com

3. Google: Research and data collection for understanding banking systems.

4. Dr. Anu Aujla (IP Teacher): Guidance and expert input on the project content.

29