Category Archives: Banking

Security Features of ATM

ATM is device that is electronic that allows customer of bank to conduct withdrawals of cash and check account balance at whatever time be it, with no need of human teller. Numerous ATMs allow deposition of cheques or cash and transfer of money between banks. World’s 1st ATM had been installed in ENFIELD town on 1967, June 27th in London by Barclays bank.

ATM’s Security features are as follows:

Numerous protocols have been used for transfer of information over networks in ATM. Few are as follows:

TCP (Transmission Control Protocol): It is protocol that is connection oriented. TCP has been used for dynamic adaption of internetwork properties and to be of robustness for facing any failures.

SMTP (Simple Mail Transfer Protocol): It is simple protocol of ASCII. It accepts messages incoming and sends them to location that is appropriate.

X.25: It is standard new protocol. It gives provision to flow control.

SNMP (Simple Network Management Protocol): It is used when data and information has been entered by means of keypad.

ATM is open for 24 hours. They are all not guarded. Security technology is as follows:

ESL (Electronic Signage Lock) is technology patented which is implemented in software, hardware, and firmware and used for protecting transfer of funds, accessibility physically and resources digitally. It identifies users of computer terminal remotely with no modification to terminal. It is transparent completely to users and is used surreptitiously with no knowledge and identifying them still uniquely.

ESL is integrated to resource protected like computer or ATM. it identifies remote users of terminal as imposters though they might be knowing all access codes, passwords, and protocols for access of resource protected. Finger-print recognition or face recognition are techniques used for ATM security. Here data related is stored in database.

Present day ATM’s physical security concentrates on denial of usage of money in machine to fraud or thief by usage of techniques of fault detection. Customer requests machine withdrawal that dispenses not at all money but prints receipt merely. Customer takes receipt to sales clerk and exchanges it for cash.

A prudent investment is always an asset in present and future

Wealth creation is an important factor in life for the people living in the modern era. The main objective of wealth creation is for the smooth functioning of a life and to secure it for the benefit of the future generations. People know the value of wealth that gives them a valued position or status in the society. Wealth creation is has different socioeconomic aspects that is not only for the benefit of present but also for the strong investment for the future. The spending of the wealth is a determining and an important factor for the future savings. The savings of a person’s wealth or asset is equal to an investment. The saying, “a penny saved is a penny earned is quite apt in the context of investments. Even though investment simply means as a form of savings that is kept for future the definition of investment differs according to the contexts.

In economics and finance the definition of investment differs. In economics investment is termed as “saving and deferring from consumption”. In finance investment is termed as a share of money putting in for a venture with the expectation of gaining profit from it. The investments are related to the business management ventures and finance. A capital in a financial venture is considered as long term investment. The risk element is a sure factor in every investment. The investment in shares, equities, mutual funds, properties, fixed interest securities and in business have high risk factor element. In business the risk factor may be of short term and long term depending on the nature of the business. Investments are always subject to inflation and deflation risk. The value of investment in any business is based on the rise and sink of the money value invested.

The history of investment can be traced back to the earlier centuries or even from the advent of civilizations. Money or wealth in many forms was used by the people in earlier periods. Before the medieval period coins of different metals including gold and silver were considered as precious investments. The code of Hammurabi in the 1700 BC described strict legal frame work and code for investments. Financial obligations in relation to the investments with the debtor and the creditor were codified in the Code of Hammurabi. Penalties or punishment for the breach of financial obligations were also mentioned in the code even though the punishments were not severe as for the death or injury.

With the invention and popular use of currency or paper money the all investments were made in cash forms form the 19th century onwards. In the 1900s the investment in bonds, shares and properties were propagated widely through media, advertisements and other viable communications during the 19th century. In the modern world investment are made in the share markets, banks and in many financial institutions with proper and solid security. The investments are normally invested through intermediaries and in very rare occasions investments are directly done between the debtor and the creditor.

For pension funds, shares, bonds and other form of investments banks, brokers, insurance companies and other financial institutions play the role of intermediaries. These intermediaries collect the investment money from the people in regular intervals and deposit it in their respective accounts of investments. Every individual investor has direct claim over the investment even if it is pooled by the intermediaries.

The investments are always made for long term investments that have legal validity. Investments in speculation games including gambling and betting do not come under the purview of legal investments. In every legal investment system according to the market hypothesis the returns in an investment is equal.

Debt Consolidation

As an old saying suggests “liabilities are always liabilities even after we feel that those are discharged”. This is an apt definition for debts. There are several types of debts. Some are financial, personal, psychological and sometimes a word itself is a debt if it is described in a poetic way. In the real or rational sense debt is definitely a burden to the person who has a debt unless and until it is been paid off. Discharging debts or liabilities is not an easy process for everyone. Among the debts the financial debts are the most critical category to be faced by the debtor.

The most common sector of debts is the loan. Today there are several types of loans provided by several financial institutions including banks and to a great extent loans provided by private people or private financial institutions for various purposes. Most of the loans are available against security and at interest rates. Loans are normally provided for a stipulated period. If the loan amount is not paid within the period the loan provider initiates steps to recover the loan amount from the debtor. This is often an awkward situation for the loan provider and the debtor. Certain loan providers after many negotiations might reduce the defaulted loan amount. This may not happen in normal procedure in the recovery of the debt amount.

Today there are certain substitute procedures available for the recovery of the debt amount. The most common debt recovery process is the debt consolidation method. Debt consolidation in a simple aspect is the transferring one unsecured loan to another. The main objective of such transfer is to lower the interest over the debt. It is to take out one loan from among the group of loans to pay the leftover loans. Debt consolidation is most commonly done against an asset or a collateral security from where the debt can be recovered at a lower interest rate. The asset of the debtor is to be sold to pay back the loan amount or the entire recovery of the loan amount at a lower rate. At times debt consolidation is done by the companies when the debtor faces bankruptcy. At this stage it will be the necessity of the company or the loan provider to recover the debt through the sale of the asset or the collateral security. Debt consolidator at this time will buy the loan amount at a discount rate.  A shrewd debtor might wait for a debt consolidation under pretext of bankruptcy. It is responsibility of the debt consolidator to weigh the pros and cons before providing debt consolidation to a debtor who is in the verge of bankruptcy.

One of the important characteristics of debt consolidation in developed countries is the student loan consolidation. In US and UK student debt consolidation is often referred as refinancing. In refinancing the real interest rates are not lowered or reduced but only blocked until the repayment.  In US Department of Education purchases the existing loans as Federal student loan consolidation. In UK student loan consolidation is done by the process of securing the loan amount from the future income of the student. The student loan in UK is excluded from bankruptcy.

The other option in debt consolidation is credit counseling, debt settlement and bankruptcy. The debt consolidation at a glance might seen as better alternative in the repayment of a debt but in fact a debtor is compelled to move his unsecured debt to a secured debt. Most often the house or the valuable asset of the debtor is subject to sale or the monthly repayment of the loan will be higher than the actual loan and interest rate. The prolonging process of repayment results in higher recovery of the actual loan amount that always gives a negative impact to the theory of debt consolidation.

Credit Card and its Debt Facility

Creation of wealth is an important focus of everyone in the modern world. The life style of today demands several things that are necessary for the living. Life of an average person has new perspectives. To have basic requirements to lead a moderate and content life was the objective of older generation. Three decades ago the main aim of people particularly employees revolved around the betterment of their families. Providing good education to the children, to have a debt free life and steady income were the prime concerns. They always thought about the future generation. The lion share of their income was spent for their children. As a result of globalization the lifestyle of people changed to a great extent. Consumerization became the stamp of the society. This new system in affected the middle class sector in the society. The new ways to improve life style by new commodities compelled an average person to find many ways to create wealth. At this point of time another sources of providing money for various purposes in the form of credit were introduced by several financial institutions and organizations. The conventional or earlier credit systems include finance provided for interest, loans against security of land and gold etc. The great change occurred from the globalization is the new form of credit systems in the developing nations. The introduction of credit card system by banks was indeed a silent revolution that occurred in the middle class society. The companies who provide credit card facilities had a huge welcome from the people particularly form the industrialized countries.

The credit card debt facility has a great advantage of purchasing things form shops without liquid cash in hand. The amount of purchased products will be credited to the credit card account of the purchaser. Unique credit code is designated to the credit card holder for very transactions. The credited amount needed to be paid by the purchaser or the credit card holder later through depositing the amount in the concerned bank. This is the only advantage provided by the credit card service system. A person can purchase products in the absence of cash through this service at any time. As another side of this advantages a credit card holder of a company or a bank is liable to be faced the penalty if he makes a default in the deposit of the money he used through the credit card. If the purchaser or the credit card holder doesn’t pay the money back that he spent through the card will have to pay the penalty of interest accumulated in his credit card account. The payment of spent money back to the company or bank that provides this facility at the stipulated period is the prime criteria to be fulfilled by the credit card holder. If he fails to do so late payment charges with the interest for the amount he spent will be charged upon him. If a credit card holder frequently makes default in the payment due to high rate of interest in the late charge payments the company can initiate legal actions against such defaulters. The remedy available for the defaulter is to remit the arrears at the earliest.

If a defaulter proves with sufficient and genuine records that he is a bankrupt and unable to repay the default payment the banks are supposed to relieve him form the debt. That will be bound by the decision of a competent court. If a person is declared as bankrupt it will affect the profit and the survival of the company. Here another option provided by the company is allow the defaulter to repay the amount with reduced interest or amount affordable for him.

Credit card facility is only an alternative for cash in certain circumstances but being addicted to credit card facility will always increase the risk of incurring debt.

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