Dematerialized Deposits Using XSI

Traditional banking was based on paper documents like ‘deposit form’, ‘withdrawal form’ etc. The comfort level for the customer on paper based business was high as they can retain the paper and show as proof in case of disputes. The present Internet and Core banking systems which are widely in use are transaction based. One drawback of the present situation is that customer is not able to keep a copy of the transaction due to various reasons like multiple channels and lack of suitable infrastructure at client end etc. As a via media, we tried to bridge the gap and see whether we can give the comfort and trust levels of the paper document coupled with the intelligence of the technology.

In this model we propose a method to describe financial product like “Fixed Deposits” using XML technology. At present, banks give the deposits in paper form with the deposit amount, maturity date and interest rate prescribed in the document. The banks system calculates the interest and pays the customer. The paper itself can’t calculate interest. It just helps the customer as a proof alone. In our model, we are trying to see whether we can embed the interest calculation algorithm into XML based deposit and give to the customer, so that customer himself can find how much he gets using tools like XSI. This will act as a good verification mechanism, instead of solely depending on banks’ systems. To show case this model as a POC, we used XSD, XML and XSI (an in house tool with IDRBT).