Learning Objectives:

  • Explain the role of Core Banking Solutions (CBS) in digital banking.

  • Understand cloud banking and API-driven banking.

  • Describe the India Stack and its components.

2.1 Core Banking Solutions (CBS)
Core Banking Solutions are the centralised systems that process and record all banking transactions in real-time . Key CBS platforms include Finacle, TCS BaNCS, and Flexcube . CBS enables transactions from any branch, anywhere, anytime, providing a unified view of customer accounts . It forms the technological backbone of modern banking, integrating all channels and products .

2.2 Cloud Banking and API-Driven Banking
Cloud Computing in Banking enables banks to store and process data on remote servers, reducing costs and improving scalability . API (Application Programming Interface) Banking allows third-party developers to build applications and services around financial institutions, enabling open banking and Banking-as-a-Service (BaaS) . Open Banking allows customers to share their financial data securely with third-party providers through APIs, fostering competition and innovation .

2.3 India Stack and Digital Public Infrastructure
India Stack is a set of APIs that enables a digital infrastructure for identity, payments, and data sharing. Components include:

  • Aadhaar: A biometric digital identity system .

  • UPI: A real-time payment system .

  • DigiLocker: A digital document storage system .

  • eSign: A digital signature framework .

  • OCEN: An open credit enablement network for lending 

 
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