SYNOPSIS:-

1. Introduction to Banking System

2. Online Banking System
3. Sequence diagram for Online Banking System
4. Activity diagram for Online Banking System
5. State chart diagram for Online Banking System
6. Future Aspect
7. Conclusion
INTRODUCTION TO BANKING SYSTEM:-
Online banking, also known as internet banking, web banking or
home banking, is an electronic payment system that enables customers
of a bank or other financial institution to conduct a range of financial
transactions through the financial institution's website. The online
banking system will typically connect to or be part of the core
banking system operated by a bank to provide customers access to
banking services in addition to or in place of traditional branch banking.
Online banking significantly reduces the banks' operating cost by
reducing reliance on a branch network, and offers greater convenience to
some customers by lessening the need to visit a branch bank as well as
the convenience of being able to perform banking transactions even
when branches are closed. Internet banking provides personal and
corporate banking services offering features such as viewing account
balances, obtaining statements, checking recent transactions, transferring
money between accounts, and making payments.
ONLINE BANKING SYSTEMS:-
 National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) is a
nation-wide payment system facilitating one-to-one funds transfer.
Under this Scheme, individuals, firms and corporates can electronically
transfer funds from any bank branch to any individual, firm or corporate
having an account with any other bank branch in the country
participating in the Scheme. Individuals, firms or corporates maintaining
accounts with a bank branch can transfer funds using NEFT. Even such
individuals who do not have a bank account (walk-in customers) can
also deposit cash at the NEFT-enabled branches with instructions to
transfer funds using NEFT. However, such cash remittances will be
restricted to a maximum of Rs.50,000/- per transaction. NEFT, thus,
facilitates originators or remitters to initiate funds transfer transactions
even without having a bank account. Presently, NEFT operates in hourly
batches - there are twelve settlements from 8 am to 7 pm on week days
(Monday through Friday) and six settlements from 8 am to 1 pm on
Saturdays.
 Real Time Gross Settlement (RTGS)
RTGS is defined as the continuous (real-time)
settlement of funds transfers individually on an order by order basis
(without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement'
means the settlement of funds transfer instructions occurs individually
(on an instruction by instruction basis). Considering that the funds
settlement takes place in the books of the Reserve Bank of India, the
payments are final and irrevocable. The RTGS system is primarily
meant for large value transactions. The minimum amount to be remitted
through RTGS is 2 lakh. There is no upper ceiling for RTGS
transactions. The RTGS service for customer's transactions is available
to banks from 9.00 hours to 16.30 hours on week days and from 9.00
hours to 14:00 hours on Saturdays for settlement at the RBI end.
However, the timings that the banks follow may vary depending on the
customer timings of the bank branches.
 Electronic Clearing System (ECS)
ECS is an alternative method for effecting
payment transactions in respect of the utility-bill-payments such as
telephone bills, electricity bills, insurance premia, card payments and
loan repayments, etc., which would obviate the need for issuing and
handling paper instruments and thereby facilitate improved customer
service by banks / companies / corporations / government departments,
etc., collecting / receiving the payments.
 Immediate Payment Service (IMPS)
IMPS offers an instant, 24X7, interbank
electronic fund transfer service through mobile phones. IMPS is an
emphatic tool to transfer money instantly within banks across India
through mobile, internet and ATM which is not only safe but also
economical both in financial and non-financial perspectives.

BANKING SYSTEM SEQUENCE DIAGRAM:-

The Banking System is a sort of interaction sequence diagram that shows

how a group of items interacts and in what order. Software engineers and
business experts use it to understand the requirements for a the system or
to describe the process.
Sequence Diagram is an UML which shows the sequence of events that
should be present in banking transaction online. This diagram gives
enlightenment and guide to the programmers and developers on how
should they build the system. The idea presented in a sequence diagram
will give efficiency on Online Banking system development.
  The Banking Management System (BMS) is a tool that allows users to pay
financial institutions for services rendered. BMS also has analytical tools
that may be used to examine and approve pay, budgets, and outflows of
finances. But the mentioned processes and functions were all determined
by designing the Sequence diagram. Developers were able to build the
Online Banking System with the help of Sequence Diagram.
SEQUENCE DIAGRAM:-
BANKING SYSTEM FOR ACTIVITY DIAGRAM:-

The Activity Diagram for Online Banking System is an important part

of the banking management system. This designed activity diagram
shows the panel and reader how the banking system would behave
towards its users. It simplifies the development of the banking system
with its corresponding UML Activity Diagram that also assists in
explaining the activity.
The essential actors or users of this banking system would be the
customers or bank members, employees, and the bank admin. By
determining the users of the system, it would be much easier for you to
build the interactions and activities in the system.
ACTIVITY DIAGRAM:-
BANKING SYSTEM FOR STATECHART DIAGRAM:-

 State Diagrams are used to model and present the dynamic nature

of a system. State Diagrams consists of different states which
represent an activity or an action corresponding to an event. An
event causes the transitions from a state to another state in the state
diagram. Hence a state diagram is a pictorial representation of the
flow of control with respect to either internal or external events.
 The user can access services by logging in the system using valid
login credentials which are unique for every registered customer
at the bank. As the first state in the diagram represents the action
 to enter login credentials to verify and validate the user. However,
if the login credentials are incorrect there occurs a transition to
the next state to display the error message. Also, the user can now
retry to log in the system. After several attempts, if the user fails
to enter the correct OTP(One Time Password) the user can not try
again and the process encounters a final state.
If the user credentials are verified the user is allowed to either
check balance or get details of a cheque under processing or avail
other services offered by the bank.If the action is to check balance,
the system retrieves the data for the user from the database and the
balance in the account of the user is displayed in the next state. The
process to check balance terminates and the process encounters the
final stage.

STATE CHART DIAGRAM:-

Time Password) the user can not try again and the process encounters a final
sta
FUTURE ASCEPT:-

 Globally, digital banking users are expected to cross the 3.6 billion-mark
by 2024.
The statistic isn’t completely surprising, and in fact only reiterates what
banks and the world in general has known for a while now.The future is
digital and banking is no exception to that. So, if the advent of Banking
as a Service (BaaS), open banking, and the booming Fintech sector were
not proof enough, we now have this roaring statistic that puts a number to
the future of banking.
CONCLUSION:-

In Conclusion, banking holds a crucial role in our day-to-day life.

Banking and Bank accounts are practical. If you have a bank
account, you can easily pay by check or online bill pay. the
accounts in banks are secure and the theft and fires will not affect
your money. It’s a simple method to save cash and they are less
expensive.
 We must adhere to the banking system as responsible citizens. The
banking system acts as a crucial base for the financial system as
well as the entire economic system of the country.
 It provides a base to the market and the companies. In a crux, we
can say that it is the source of channeling the finance by the people
of the country.