What should test in BANKING DOMAIN application ?

You would like to test: Banking Workflows Data Integrity issues Security and access issues Recovery testing All the above needs to be tested in the expected banking environment (hardwares, LAN, Op Sys, domain configurations, databases) Banking Domain:it deals with cutomers i.e depositors,barrowers..tec. Bank fuctions are two types manual banking process online banking process Even in both of the above types computerisation is possible. Types of Banks: Retail banks Commercial banks Investment banks Credit Unions Many of the larger banks have multiple divisions covering some or all of these categories Retail banks deal directly with consumers and small business owners. They focus on mass market products such as current and savings accounts, mortgages and other loans, and credit cards. Investment banks provide services related to financial markets, such as mergers and acquisitions. Private banks normally provide wealth management services to high net worth families and individuals. Business banks provide services to businesses and other organizations that are medium sized, whereas the clients of corporate banks are usually major business entities.

Another way in which banks may be categorized is on the basis of their ownership. They might either be privately held or publicly owned banks. Privately owned banks are motivated by profit in their business operations. Publicly owned banks are held by the state governments of the individual countries and they serve as a nations centralized bank, as well as an economic backbone for that particular country. They are also known as central banks. Publicly owned banks, which are controlled by the government, have numerous responsibilities pertaining to the banking sector of the country, such as administering various activities for the commercial banks of that country. They also determine the rates of interest offered by banks doing business in that country, as well as playing a major role in maintaining liquidity in the banking sector. In America there are several types of banks which each offer slightly different services or benefits to various prospective clienteles. These banks include commercial banks, savings banks, credit unions, and Federal Reserve banks. There are some differences in the organization or the function of each of these four types of banks, as outlined below. Commercial Banks: Commercial banks are the most numerous in the banking industry and offer services to individuals and businesses as well as governments and overseas clientele. Commercial banks range in size, the smallest serving communities with basic banking needs, while the larger banks reach to larger demographics and may be involved in international banking. Commercial banks offer savings, checking, money market, and CD accounts and may be a good option depending on your needs and location. Savings Banks: Savings banks are the second most common type of bank in America and focus mainly on communities and small regions. Savings banks' original purpose was to finance loans in order to help people purchase homes; this is still a main function of savings banks today.

Credit Unions: Credit unions are formed by people united by a common bond such as those working for the same employer or those who are members of the same labor union; credit unions are owned by their members. Every member must open a "shares account" which is essentially a savings account, but which gives every member partial ownership of the operation of the credit union. Credit unions are often able to offer lower interest rates on their loans than those offered by other banks. In addition to the different kinds of credit unions that exist, many states offer a State Employees Credit Union to serve those who are employed by the state. Banking Activities: Banks' activities can be divided into retail banking--dealing directly with individuals and small businesses; business banking-providing services to mid-market business; corporate banking --directed at large business entities; private banking--providing wealth management services to high net worth individuals and families investment banking--relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations. Prime banking activities are : 1.Cash deposits(long term,mid term,short term) 2.Cash payments/receipts 3.Loans 4.Online banking 5.Personal loans 6.Home loans 7.Vehicle loans 8.Mutual funds 9. Monet transfer in Cheques/DD's..etc 10.ATM.. 11.Link between bank branches and central bank.etc Banking domain means you should have functional knowledge of all the above core banking activities. Retail banking activities are: a) Loan origination and Processing solutions b) Account management c) Teller \ ATM d) Application-Re engineering e) Cheque processing f) Mortgage Processing solutions g) E-Banking h) Credit card Processing solutions i) Tracking and analysis systems Whole sale banking activities are: a) Automated Treasury operations b) Trade settlement systems c) Cash management d) Decission support systems e) Trade finance f) Payment systems and clearing solutions g) Cross border payments h) Relation ship management Investment banking activities are: a) Wealth management b) Private banking

c) Asset management d) Investor services Types of Bank Accounts: Traditionally banks in India have four types of deposit accounts, namely Current Accounts Saving Banking Accounts Recurring Deposits Fixed Deposits. Money Market Account(MMA) Certificate of Deposit(CD) Individual Retirement Account(IRA) However, in recent years, due to ever increasing competition, some banks have introduced new products, which combine the features of above two or more deposits. These are known by different names in different banks, e.g 2-in-1 deposits, Smart Deposits, Power Saving Deposits, Automatic Sweep Deposits etc. CURRENT DEPOSITS /ACCOUNTS: These accounts are used mainly by businessmen and are not generally used for the purpose of investment. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. Most of the current account are firm / company accounts. Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. No interest is paid by banks on these accounts. On the other hand, banks charge service charges, on such accounts. SAVING DEPOSITS / ACCOUNTS: These deposits / accounts are one of the most popular deposits for individual accounts. These accounts not only provide cheque facility but also have lot of flexibility for deposits and withdrawal of funds from the account. Most of the banks have rules for the maximum number of withdrawals in a period and the maximum amount of withdrawal, but hardly any bank enforces these. However, banks have every right to enforce such restrictions if it is felt that the account is being misused as a current account. The interest on these accounts at present is regulated by Reserve Bank of India. Banks in India at present offer 3.50% p.a. interest rate on such deposits. RECURRING DEPOSITS / ACCOUNTS: These kind of deposits are most suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month. Normally, such deposits earn interest on the amount already deposited (through monthly installments) at the same rates as are applicable for Fixed Deposits / Term Deposits. These are best if you wish to create a fund for your child's education or marriage of your daughter or buy a car without loans. FIXED DEPOSIT ACCOUNTS / TERM DEPOSITS: All Banks offer fixed deposits schemes with a wide range of tenures for periods from 7 days to 10 years. The term "fixed" in Fixed Deposits (FD) denotes the period of maturity or tenor. Therefore, the depositors are supposed to continue such Fixed Deposits for the length of time for which the depositor decides to keep the money with the bank. However, in case of need, the depositor can ask for closing (or breaking) the fixed deposit prematurely by paying paying a penalty (usually of 1%, but some banks even do not charge any penalty). (Soon some banks have even introduced variable interest fixed deposits. The rate of interest in such deposits will keep on varying with the prevalent market rates i.e. it will go up if market interest rates goes and it will come down if the market rates fall). Money Market Account(MMA): Money market accounts - A money market account (MMA) is an interest-earning savings account with limited transaction privileges. You are usually limited to six transfers or withdrawals per month, with no more than three transactions as checks written against the account. The interest rate paid on a money market account is usually higher than that of a regular passbook savings rate. Money market accounts also have a minimum balance requirement Certificate of Deposit(CD) Certificates of deposit - These are accounts that allow you to put in a specific amount of money for a specific period of time. In exchange for a higher interest rate, you have to agree not to withdraw the money for the duration of the fixed time period. The interest rate changes based on the length of time you decide to leave the money in the account. You can't write checks on certificates of deposit. This arrangement not only

gives the bank money they can use for other purposes, but it also lets them know exactly how long they can use that money Individual Retirement Account(IRA) Individual retirement accounts and education savings accounts - These types of accounts require that you keep your money in the bank until you reach a certain age or your child enters college. There can be penalties with these types of accounts, however, if you use the money for something other than education, or if you withdraw the money prior to retirement age. Federal Reserve: One of the more mysterious areas of the economy is the role of the Fed. Formally known as the Federal Reserve, the Fed is the gatekeeper of the U.S. economy. It is the central bank of the United States -- it is the bank of banks and the bank of the U.S. government. The Fed regulates financial institutions, manages the nation's money and influences the economy. By raising and lowering interest rates, creating money and using a few other tricks, the Fed can either stimulate or slow down the economy. This manipulation helps maintain low inflation, high employment rates, and manufacturing output. How the Fed Works? One of the more mysterious areas of the economy is the role of the Fed. Formally known as the Federal Reserve, the Fed is the gatekeeper of the U.S. economy. It is the central bank of the United States -- it is the bank of banks and the bank of the U.S. government. The Fed regulates financial institutions, manages the nation's money and influences the economy. By raising and lowering interest rates, creating money and using a few other tricks, the Fed can either stimulate or slow down the economy. This manipulation helps maintain low inflation, high employment rates, and manufacturing output. Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it. Loan Basics: Loans can be sought out for a variety of reasons. These loans may be offered as secured or unsecured, depending on the lender, the amount and a persons credit standing. The proceeds from this type of funding are not typically restricted in use. Other types include signature loans, consolidation loans, home equity lines of credit and equity loans. The lenders that might offer general or basic loans include standard banks, credit unions and private finance companies Mortgage: A mortgage is a standard lending instrument that is given by a traditional lender such as a bank. This type of loan is not typically backed by any special programs, but can give borrowers the financing they need to purchase a home. A mortgage may involve two different types of interest configurations. A fixed-rate mortgage will offer a set rate for the life of a loan. An adjustable-rate mortgage will have interest charges that can rise or climb based on market factors and going rates. Finweb: Finweb has a number of mortgage calculators to help you with your home buying decisions. Popular choices include estimated payment calculator and a calculator to help determine your mortgage principal. Others choices help you decide on the length of your loan, the APR, points, potential tax benefits and more. There is even a calculator to help you decide if renting might be a smarter option than buying. Home Equity loans: Shop, shop, shop for the best deal on home equity loans. These second mortgages differ from full refinances in that the first mortgage in not replaced with a new one. The homeowner simply accesses the equity thats available in the property and borrows against it, thereby creating two separate mortgages, along with two separate payments. The terms and fees of home equities are as varied as the lenders who

offer them. Therefore, careful study and comparison shopping is a must for the homeowner whos interested in tapping into his or her equity by means of a HEL. Cash Advanced and Pay day loans: General loans are lending tools that can be sought out for a variety of reasons. The proceeds from this type of funding are not typically restricted in use either. These loans may be offered as secured or unsecured, depending on the lender, the amount and a persons credit standing. General loans include signature loans, consolidation loans, home equity lines of credit and equity loans. The lenders that might offer general or basic loans include standard banks, credit unions and private finance companies. Home loans are generally designed to be long-term lending vehicles. In most cases, this type of loan is financed by a bank, lending company or credit union for a period of 30 years. A standard home loan will cover the purchase of the home originally. A second mortgage, equity loan or refinancing may be sought out to fund renovations. Hard Money Loans: To many people, the term hard money lender usually evokes thoughts of big, sleazy, overcoat-clad men carrying baseball bats. Today however, the hard money lender is a professional investor who fills a muchneeded gap that conventional lenders balk at. And though their rates and fees are high (even exorbitant at times), many real estate speculators and investors would not be able to operate in the market without them. But beware: hard money loans are designed to be short-term, high-cost instruments; temporary quick fixes and not long-term solutions. Great care and consideration must be applied when using this type of funding. Student Loans: Student loans are lending instruments that enable people to meet educational needs when they do not have sufficient personal resources to fund schooling. Student loans can be used to pay for such things as tuition, books, fees and even room and board. There are two primary sources for student loans. The federal governments loan programs are perhaps the most popular because they offer simple repayment terms and lenient approval standards. These loans are written by private lenders, but are backed by the government. Students can also obtain financing through private lenders. Small Business Loans: Small business loans facilitate the creation, expansion or operation of a business. This type of lending instrument can range greatly in type, terms and even the sources for obtaining financing. In most cases, small business loans are granted by banks, credit unions and private lenders that receive banking from the U.S. government through Small Business Administration (SBA) programs. The cost of financing will depend on the principal amount, the interest rate offered and the term in length of months or years involved with the loan. Credit Card: Credit cards can be a wonderful convenience when used properly. However, if abused, they can turn into an extremely long-lasting nightmare. They're obtainable in a variety of types, each suited to a specific purpose. Some cards come with perks and bonuses; others only offer high fees. There are cards available for those with good credit, and cards for people who have bad- or even no credit. Credit cards can build, destroy, and even help build again your credit history. Stock: Stocks are popular and common investment vehicles. They are basic staples of both small and large investors the world over. But with a myriad of other choices at hand, why do so many investors choose to place their money into stocks. A stock certificate gets you partial ownership in a company with the potential to earn dividends on profits and hopefully provides a return on the price you paid for it over time as well. Risk can vary widely depending on the company and investment window you choose. Bonds: Bonds are investment tools that offer a steady rate of return and are often virtually guaranteed to pay off. To achieve the full value of a bond, the buyer must let it reach its maturity, or pay back, date. When these investments are issued, the issuers receive the proceeds in a manner similar to a loan. Rather than pay back a lender, however, the issuer pays back those who purchased bonds. This tool can be issued by a variety of entities. The most common are government bonds. Exchange Traded Fund: ETF An ETF or exchange-traded fund is a cross between a traditional stock and a mutual fund. This type of investment vehicle is traded via stock exchanges in much the same manner as standard stocks. A fund, however, may include multiple assets that impact overall value. ETF purchases are subject to the same basic rules as stock purchases. They can fluctuate in value over the course of a trading day just like stocks. The buy-in on funds can be as low as a single share.

Estate Planning: Many people dislike the subject of estate planning, which is fairly understandable. Nevertheless, prudent individuals recognize that being prepared can make such eventualities considerably less trying and burdensome - both emotionally and financially - for those left behind in grief. There are a number of estate planning tools available to you, from a simple wills to complex trusts. Proper and thorough estate planning can simplify and hasten the distribution of property to rightful heirs, while at the same time significantly reducing or completely eliminating the tax burden imposed by the Internal Revenue Service. 401 K: Subscribe to news about 401 k 401 k A 401k is a retirement savings instrument that enables contributors to place money aside without facing tax liabilities. This vehicle is typically offered through employers and might include matching funds paid on an employees behalf by the employer. Contributions to a 401k are tax deferred. This means that income taxes will not be charged on money placed in these accounts until they are withdrawn. This savings vehicle can gain earnings in addition to contributions if it is attached to such things as mutual funds, stocks, bonds or money market accounts. Retirement Planning: Retirement planning involves the creation of a program to help a person or couple prepare for postemployment years. This type of planning generally involves the use of a professional investment or financial counselor, but not always. Retirement planning will typically include stating ultimate financial goals to help with the selection of investments that can facilitate earning targets. Investments that may be included in a retirement plan include 401ks, IRAs, mutual funds, stocks, bonds, commodities and more. They will combine with contributions to help an individual realize financial goals. Living in Retirement: Living in retirement comfortably demands planning in advance to meet financial requirements. There are a number of tools available to help future retirees ensure they have an incoming cash flow once their employment years come to an end. Planning the basics of living in retirement can be done with or without professional help. Income to consider during this period includes Social Security, 401ks and pensions that may have been acquired during working years. Other investments can also be prudent. Projected earnings should be weighed against inflation projections. Insurence basics: Insurance is designed to protect individuals in the event of an emergency or crisis situation. Policies that can fall into this category include homeowners, medical, dental, automobile, rental, liability, life and even disability insurance. Insurance coverage policies are typically readily available to consumers. Pricing can vary greatly based on the coverage type, the limits of a policy and any deductibles that may be involved. Auto Insurence: Auto insurance provides protection for cars, trucks, and other vehicles. Its primary use is to insure against losses incurred due to traffic accidents and against liability incurred in an accident. Auto insurance provides three types of coverage - property, liability and medical. Property covers damage to or theft of your vehicle. Liability covers your legal responsibility, and medical covers the cost of treating injuries, rehabilitation, and in some cases, lost wages and funeral expenses. Health Insurence: Health insurance provides protection for an individual or group to cover medical expenses. Coverage is usually provided through employer-based plans, although government programs (i.e. Medicare) are common for the poor and elderly. Health plans can also include dental and vision insurance. Health insurance may be purchased by an individual or on a group basis. The covered individual or groups pay premiums to provide protection against high or unexpected healthcare expenses. Life Insurence: Life insurance provides protection in the event of an individual or individuals' death or other event, such as terminal illness or critical illness. There are two major types of life insurance policies - protection and investment. Protection policies provide benefits after a specific event, typically in the form of a lump sum payment, while investment policies aim to provide capital gains.

Home Insurence: Home insurance provides protection against risks to property. This may include fire, lightning, wind, flood, earthquake, theft, vandalism and other specified risks. If an individual owns high value possessions, for example expensive jewelry, art, or technical equipment (like a camera), additional coverage may be required. Each state has its own laws that regulate the insurance industry, so policy terms and conditions vary per state.

Business Insurence: Business insurance provides protection for businesses and entrepreneurs. Business insurance varies greatly depending on the type of business and coverage required. Some common types of business insurance include liability, property, accident and health, crime, auto, workers compensation and employer liability Disability insurance: Disability insurance is designed to provide people with income replacement in the event of illness or injuries. This type of coverage can take on a few different forms. It can be included in a companys benefits package or be purchased by an individual independently. The two main forms of disability are short-term and long-term. In most cases, short-term policies will replace a greater percentage of income for a set period of time. It is possible to obtain short-term policies that cover 100 percent of income in the event of illness or injury. General Taxes: General taxes can describe the most common levies paid by individuals over the course of their lives. While there are a number of different taxes enacted in the United States by a variety of levying authorities, there are a few that almost every citizen will incur. The most common general taxes include such things as income, sales, property and service taxes. Some taxes can be reduced by deductions, credits and write offs. Others can only be avoided by not making certain purchases or using specific services. Small Business Tax: Effective tax planning for your small business can have a big change in your bottom line. For small businesses, minimizing the tax liability can provide more money for expenses, investment, or growth. Experts recommend that entrepreneurs and small business owners conduct formal tax planning sessions in the middle of each tax year. This approach will give them time to apply their strategies to the current year as well as allow them to get a jump on the following year. It is important for small business owners to maintain a personal awareness of tax planning issues in order to save money. Filling Taxes: Filing taxes involves declaring income versus deductions, losses and credits to determine tax liability or eligibility for a refund. The standard deadline for turning in a tax return is April 15 of each year, but extensions can also be requested. There are a number of ways to meet the requirements for filing. The options include filling out paper forms, having a tax preparer handle it on ones behalf or using electronic means. Regardless of the method, a filed tax return is required by federal law for most income-earning individuals. Tax Relief: Relief from taxes owed is a possibility under certain circumstances. To obtain help in lowering liabilities or to make payment of debt owed easier to handle, a formal request to the Internal Revenue Service must be made. Many individuals choose to seek professional assistance in getting this done. The forms of tax relief available vary based on circumstances. Individuals who cannot afford to pay a lump sum amount may request a payment plan. Penalty abatement may also be possible. Settlements can be obtained in dire financial circumstances. Tax Planning: Tax planning means creating a strategy to maximize deductions and reduce liability. The ultimate goal is to obtain a return or at least have the due amount lined up in advance of a deadline date. Individuals who are self-employed, experience large gains over the course of a year or those who work multiple jobs often benefit from advanced planning. When estimates are obtained early enough, it is possible to come up with deductions or credits to offset liability.