HPSCB

Overview

Country or Region: India

Industry: Banking

Customer Profile
The Himachal Pradesh State Cooperative Bank Limited [HPSCB] is the Apex Bank of H.P state of India.

The Organization
The Himachal Pradesh State Cooperative Bank Limited [HPSCB] is the Apex Bank of H.P state of India. HPSCB is also the largest State Coop. Bank in terms of number of branches constituting around 20% of the total State Cooperative Bank branches in the country.

HPSCB is one of the fast growing banks in India having business around 11,000 Crores. HPSCB is the largest State Cooperative Banks in terms of number of branches. It has 241 branches and extension counters of which about 90% is in the rural areas of the state and one branch in Delhi. HPSCB offers a full range of financial Products and services in Himachal Pradesh including deposit taking, electronic banking, term loans and commercial bill acceptances.

Himachal Pradesh has the distinction of having first Coop. Society Registered in India. Cooperative were primarily visualized as specialized agency for financing the credit requirement of rural people in the country particularly agriculture.

The Bank is extending banking facilities in 5 districts viz. KANGRA, KULLU, HAMIRPUR, LAHAUL & SPITI and UNA through our affiliated District Central Co-operative Banks.

Business Situation
HPSCB has already implemented the CBS application of HCL. But from Aug. 2014 they have withdrawn their support and bank doesn’t have technical expertise even to support transactional / operational issues on daily basis.

HPSCB has contacted NSCS for providing the support on operational and technical issues. NSCS took over the latest source code available with them. NSCS has studied and understood the application with the help of banks business and technical team. In around 1 Months’ time period NSCS starts delivering the new enhancements along with existing bug fixing. From then NSCS has done following activities

  1. Performance tuning for
    • Interest calculation of term deposit and advances
    • Interest posting of term deposit and advances
    • Day-end and Day-open operations
    • Bulk transaction upload received from DBT and HP Govt. employee salary
    • MIS and financial report generation
  2. New Module development
    • AML (Anti Money Laundering)
    • Investment and Borrowings
    • eKYC
    • NEFT / RTGS / IMPS Implementation
    • PMJY, PMSBY and APY
    • PFMS
    • Mobile Banking
    • CIBIL and EXPERIAN DATA
    • cKYC (Centralized KYC)
    • Fixed Assets
    • AEPS
  3. Oracle Portal Rollout

Solution

A. To improve the performance of overall system and periodic operations we have taken following steps

  • Activity Identification
  • Java Application profiling
  • Analysis of Thread Dump
  • Monitoring the behavior of these activities
  • Contributing component and dependent component identification
  • Analyzing the queries and segregated into categories
    • Queries which are executed frequently with less execution time
    • Queries which are executed sometime but execution time is high
  • Identifying the root cause
  • Build solution and deployed
  • Compare the new results with previous results
  • New results are matching with desired result.

Based on found root cause following changes we have done in the system

Database side

  • Table Partitioning for customers date wise balances
  • Table data re-organization
  • Index Optimization
  • Query Optimization
  • Cache Implementation

Application Side

  • Process broken into Batches
  • Parallel Execution of Process
  • Case based different Locking mechanism

B. New Development

  • AML (Anti Money Laundering)
    • It follows a modular design thereby providing flexibility to handle simple as well as complex business process
    • Easy workflow, user friendly screens, maker-checker feature for monitoring data and transaction integrity.
    • Extensive Know your customer (KYC) as part of a bank’s on boarding and monitoring process for the customer due diligence.
    • Integrated comprehensive case management workflow easy to use and streamlined to capture complete investigation details.
    • Integrated library of 100+ rules library for monitoring activities required as per industry standard.
    • Automated process to generate the regulatory reports like CTR/ STR / CCR as per the format prescribed by FIU.
    • Customizable alerts which can be configured as per required frequency for Daily, Weekly, Monthly, etc.
  • Investment and Borrowing:
    • Using this module bank is managing the entire banks Investment and Borrowing portfolio. The current system is revalidating the periodic returns on FD and interest on Loan/borrowing by reverse calculation and system is logging the same.
  • NEFT / RTGS
    To implement NEFT and RTGS functionality we have developed a batch application to pull the inward transactions from Message Queue (IBM MQ) and pushing the outward transactions
    into it.
  • SMS and Notification
    Based on business parameter SMS and Notification service is enabled and send to customer for their transactions.
  • eKYC
    eKYC client is also developed for bank to do the eKYC of their customer and based on successful response from UIDAI bank can open the account. This also helps the customers to avail govt. sponsored benefits.
  • MIS and Reporting
    The entire MIS and reporting is done through by implementing SSIS and SSRS. From here almost 150 different kinds of MIS can be generated with drilldown feature on various dimensions.

Non- Functional Requirement

Performance and Scalability
Bank having around 20 Lacs of customers and they have all the latest digital payment features. So, bank has to complete all the activities with 100% accuracy within the available timeframe.

So all the time consuming activities which are mostly complex in nature should be optimized to complete within time.

Bank has to complete the month end activities in non-business hour. Also many of the tasks are already scheduled in non-business hours on daily, weekly and monthly basis. Therefore bank has very small window to complete the above task. Considering these application is designed, deployed and implemented in following way

  • Task sequencing
  • Each Task broken into process
  • Process are executed in parallel Threads
  • Implementation of use case based different Locking mechanism
No. of SB account13 Lac
No. of Loan accounts1.5 Lac
No. of Term Deposits7.5 Lac
DBT request15000 per day
No. of transactions2 Lacs per day (Normal Days)
Govt. Employee Salary Transactions1.5 Lac once in a month
Interest calculation and posting2 Lac (on Normal Month End)
20 Lac (on Half Year End or on year End)
Charges application quarterly (5 types)2 Lacs of account
style=”border:1px solid #000;”No. of channels which are interactingBranch users
Mobile Banking
Internet Banking
IMPS / NEFT / RTGS
LMK
Fee Collection
ATM switch

Core Banking Application is deployed in 3 tier Architecture

  • Web server
  • Application server
  • Database server

Mobile and Internet banking deployed as

  • Web server
  • Database server

Mobile banking web server is separate and is interacting with same application server of core banking. Mobile database is only managing the users profile, payee details and logging the activities.

So, in entire solution there is only one source of truth that is core banking solution database.

Availability
To achieve high availability, core banking database replicated to banks near site DR. And one copy of application server as well as web server is also deployed there so that business continuity can be achieved if some mis-happening occurred at DC.

Security Implementation

To enhance the security of the core banking application we have implemented the following

  • SSL
  • MD5 hashing for sensitive fields like password, checksum generation
  • Added the HMAC concept for all delivery channels.
  • All biometric are encrypted with session key (AES) and session key is encrypted with public key.

Technology Used

HTML / JSP
Java Applets and Servlets
Struts framework
JavaScript, JQuery
Jersey
AJAX
JDK 1.6
Multi-DataSource with Failover/Load-Balancing Features
EJB (Entity ,Session – Stateful and Stateless and Message driven Bean)
JMS (for mail functionality and audit Trail Recording)
ANTS (For Application Deployment)
Log4J (Application logging)
JDBC
Stylepad
MSSQL Server 2008

Application Architecture

Natural Support
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