Wednesday 19 July 2023

TIPS TO PREVENT ONLINE FRAUD

    
    Online payments empower us to make a transaction anytime from anywhere in just a few clicks. But one wrong click can land us in a big financial trouble. So, some safety measures while making a digital transaction are a must.

1. Use verified apps only

    Mobile apps have changed the way we shop and transact. Every time you install an app on your device, make sure you are using a verified app. Whether it’s a financial app or a new game, download only from official play stores like Google Play Store, Windows App Store or Apple App Store.

2. Browse on authorised websites only

    Beware of imposter websites that may look professional or carry the same domain name as the original one in the URL. Look for "https://" before "www" and the lock icon on the address bar of your browser.

3. Use secure connections only

    The urge to use free WiFi at a cafe, hotel lounge or airport can also lead to financial fraud. Avoid using public hotspots for making a financial transaction. Public networks are more prone to the risk of data theft since their encryption can be cracked easily to access your account’s crucial information.

4. Be vigilant while using card

    Always make a card payment in front of your eyes. Be sure that the POS machine is 100 percent genuine. There are dozens of stories about cards being cloned by skimmers since the card was out of sight while the transaction was being done. Don’t let anyone steal your hard-earned money because of your negligence.

5. Don't compromise on security software for phones/computers

    We always want our payments to be secure but how many of us pay attention to our mobile and computer’s security software, web browser and operating system. Update your PC/laptop and mobile security to prevent online mishappenings. Also, always set up strong passwords with a combination of special characters, letters, numbers and upper and lowercase. Don’t forget to change the passwords on a regular basis.

6. Don’t share personal information with anyone

    Never share your personal information online or offline, unless you are absolutely sure about the authenticity of the representative. There can be a possible scammer hiding behind a stranger or any third party posing as an executive from a bank or financial institution. Always verify the identity of the person asking for your financial details. Bank authorities never ask for sensitive information like OTP, CVV on calls. Also, sharing important financial details like bank name, branch, account  number, etc on social media is a big no.

7. Never click on suspicious links on SMS or emails

    Link baiting, spurious emails and SMS are the most common forms of trapping people into fraud. These links may seem genuine and attract your attention with claims of lottery or a job overseas. Do not follow any such links, as they may lead you to a phishing site and rob you off your mobile’s security features. It's better to hang up in case you receive an unsolicited call.
    
    Thousands of people fall prey to banking scams every year with the internet becoming one of the most popular tools to commit fraud. These basic measures can help you protect yourself from being a victim of online fraud. In case your debit or credit card is lost or stolen, informing the bank immediately and getting it blocked is the first step to avoid a financial loss. Timely blocking the card can save your financial security from being compromised.

Wednesday 12 July 2023

Artificial Intelligence : A Challenge to Mankind

 


India has got its first AI news anchor a few days ago. An Indian media group unveiled its first full-time artificial intelligence (AI) news anchor - a bot named Sana who presents news updates several times a day. The AI-powered reporter appears on the India Today Group’s Aaj Tak news channel.

“She is bright, gorgeous, ageless, tireless,” said the group’s vice chairperson, Kalli Purie, at a launch event attended by Indian Prime Minister Narendra Modi.

In 2018, China’s Xinhua news agency created the world’s first AI-powered male news anchor using computer graphics. Just this year, it debuted its first AI female news anchor. Last month, Russia’s Svoye TV introduced Snezhana Tumanova as its first virtual weather presenter.

The world’s first news channel whose content is generated entirely by artificial intelligence, NewsGPT, was launched in March—ostensibly threatening the jobs of media professionals. Alan Levy, NewsGPT’s CEO, described it is a game changer in the world of news. But as journalism robots proliferate, there is growing concern about their impact.

AI will definitely have an abiding influence on journalism in general. However, it is too early to say how deep it will be and how much of a difference it will make.

Thursday 3 November 2022

Types of Banks in India

Banks are financial institutions that perform deposit and lending functions. There are various types of banks in India and each is responsible to perform different functions.

The bank takes deposit at a much lower rate from the public called the deposit rate and lends money at a much higher rate called the lending rate.

Banks can be classified into various types. Given below are the bank types in India:-

  • Central Bank
  • Cooperative Banks
  • Commercial Banks
  • Regional Rural Banks (RRB)
  • Local Area Banks (LAB)
  • Specialized Banks
  • Small Finance Banks
  • Payments Banks

Functions of Banks

The major functions of banks are almost the same but the set of people each sector or type deals with may differ. Given below the functions of the banks in India:

  1. Acceptance of deposits from the public
  2. Provide demand withdrawal facility
  3. Lending facility
  4. Transfer of funds
  5. Issue of drafts
  6. Provide customers with locker facilities
  7. Dealing with foreign exchange

Apart from the above-mentioned list, various utility functions also need to be performed by the various banks.

Central Bank

The Reserve Bank of India is the central bank of our country. Each country has a central bank that regulates all the other banks in that particular country.

The main function of the central bank is to act as the Government’s Bank and guide and regulate the other banking institutions in the country. Given below are the functions of the central bank of a country:

  • Guiding other banks
  • Issuing currency
  • Implementing the monetary policies
  • Supervisor of the financial system

In other words, the central bank of the country may also be known as the banker’s bank as it provides assistance to the other banks of the country and manages the financial system of the country, under the supervision of the Government.

Cooperative Banks

These banks are organised under the state government’s act. They give short term loans to the agriculture sector and other allied activities. The main goal of Cooperative Banks is to promote social welfare by providing concessional loans.

They are organised in the 3 tier structure

  • Tier 1 (State Level) – State Cooperative Banks (regulated by RBI, State Govt, NABARD)
    • Funded by RBI, government, NABARD. Money is then distributed to the public
    • Concessional CRR, SLR applies to these banks. (CRR- 3%, SLR- 25%)
    • Owned by the state government and top management is elected by members
  • Tier 2 (District Level) – Central/District Cooperative Banks
  • Tier 3 (Village Level) – Primary Agriculture Cooperative Banks

Commercial Banks

  • Organised under the Banking Companies Act, 1956
  • They operate on a commercial basis and its main objective is profit.
  • They have a unified structure and are owned by the government, state, or any private entity.
  • They tend to all sectors ranging from rural to urban
  • These banks do not charge concessional interest rates unless instructed by the RBI
  • Public deposits are the main source of funds for these banks

The commercial banks can be further divided into three categories:

  1. Public sector Banks – A bank where the majority stakes are owned by the Government or the central bank of the country.
  2. Private sector Banks – A bank where the majority stakes are owned by a private organization or an individual or a group of people
  3. Foreign Banks – The banks with their headquarters in foreign countries and branches in our country, fall under this type of bank

Given below is the list of commercial banks in our country:

1.      Public Sector Banks : State Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, Punjab & Sind Bank, Syndicate Bank, Union Bank of India, United Bank of India, UCO Bank, Vijaya Bank, IDBI Bank Ltd.

2.      Private Sector Banks : Catholic Syrian Bank, City Union Bank, Dhanlaxmi Bank, Federal Bank, Jammu and Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank, Nainital Bank, Ratnakar Bank, South Indian Bank, Tamilnad Mercantile Bank, Axis Bank, Development Credit, Bank (DCB Bank Ltd), HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, IDFC, Bandhan Bank of Bandhan Financial Services.

3.      Foreign Banks : Australia and New Zealand Banking Group Ltd., National Australia Bank, Westpac Banking Corporation, Bank of Bahrain & Kuwait BSC, AB Bank Ltd., HSBC, CITI Bank, Deutsche Bank, DBS Bank Ltd., United Overseas Bank Ltd, J.P. Morgan Chase Bank, Standard Chartered Bank, etc. There are over 40 Foreign Banks in India

Regional Rural Banks (RRB)

  • These are special types of commercial Banks that provide concessional credit to agriculture and rural sector.
  • RRBs were established in 1975 and are registered under a Regional Rural Bank Act, 1976.
  • RRBs are joint ventures between the Central government (50%), State government (15%), and a Commercial Bank (35%).
  • 196 RRBs have been established from 1987 to 2005.
  • From 2005 onwards government started merger of RRBs thus reducing the number of RRBs to 82
  • One RRB cannot open its branches in more than 3 geographically connected districts.

Local Area Banks (LAB)

  • Introduced in India in the year 1996
  • These are organized by the private sector
  • Earning profit is the main objective of Local Area Banks
  • Local Area Banks are registered under Companies Act, 1956
  • At present, there are only 4 Local Area Banks all which are located in South India

Specialized Banks

Certain banks are introduced for specific purposes only. Such banks are called specialized banks. These include:

  • Small Industries Development Bank of India (SIDBI) – Loan for a small scale industry or business can be taken from SIDBI. Financing small industries with modern technology and equipments is done with the help of this bank
  • EXIM Bank – EXIM Bank stands for Export and Import Bank. To get loans or other financial assistance with  exporting or importing goods by foreign countries can be done through this type of bank
  • National Bank for Agricultural & Rural Development (NABARD) – To get any kind of financial assistance for rural, handicraft, village, and agricultural development, people can turn to NABARD.

There are various other specialized banks and each possesses a different role in helping develop the country financially.

Small Finance Banks

As the name suggests, this type of bank looks after the micro industries, small farmers, and the unorganized sector of the society by providing them loans and financial assistance. These banks are governed by the central bank of the country.

Given below is the list of the Small Finance Banks in our country:

AU Small Finance Bank, Capital Small Finance Bank, Esaf Small Finance Bank, Equitas Small Finance Bank, Fincare Small Finance Bank, Utkarsh Small Finance Bank, Jana Small Finance Bank, Suryoday Small Finance Bank, Northeast Small Finance Bank, Ujjivan Small Finance Bank.

Payments Banks

A newly introduced form of banking, the payments bank have been conceptualized by the Reserve Bank of India. People with an account in the payments bank can only deposit an amount of up to Rs.1,00,000/- and cannot apply for loans or credit cards under this account.

Options for online banking, mobile banking, the issue of ATM, and debit card can be done through payments banks. Given below is a list of the few payments bank in our country:

  • Airtel Payments Bank
  • India Post Payments Bank
  • Fino Payments Bank
  • Jio Payments Bank
  • Paytm Payments Bank
  • NSDL Payments Bank