Mailing Procedures

BLOCK 5
MODERN OFFICE EQUIPMENTS AND
SYSTEMS

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Mailing Procedures
and Forms Used In BLOCK 5 MODERN OFFICE
Office
EQUIPMENTS AND SYSTEMS

This is the fifth block of the course “Office Management and Secretarial
Practices”. This block will familiarize you with fundamentals and
preliminary aspects related to modern office equipment and systems. The
block on the theme “Modern Office Equipment and Systems” comprises of
three units, the detail of which is mentioned below:

Unit 13: Discusses the meaning and importance of office automation and the
concept of Modern office equipment. It also makes the readers familiar with
the various kinds of office machines and their use. It also discusses the office
Mechanization and various advantages & disadvantages of Mechanization in
offices and the factors in Selecting Office Machines.

Unit 14: Provides an overview on the modern office system. It makes the
learners familiar with the technological communication, meaning of web
conferencing, office system and automation. It also talks about technology
internet and cloud used in office including smart cloud based office solutions,
benefits and drawbacks of cloud computing, cloud storage, role of cloud
computing, impact of IoT in cloud and different types of cloud computing
and their benefits.

Unit 15: Provides an overview on banking facilities and modes of payment.

It discusses the various types of account, passbook and cheque book. It also
discusses different types of banking forms and different types of online
banking. The later part of the unit discusses the various types of payment
methods including Cheque, Indian Postal Order and Online Payments.

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UNIT 13 MODERN OFFICE EQUIPMENTS Equipments

Structure

13.0 Objectives
13.1 Introduction
13.2 Office Equipment
13.3 Modern Office equipment
13.4 Office Automation
13.5 Office Mechanization
13.5.1 Advantages of office Mechanization
13.5.2 Disadvantages of Mechanization Office

13.6 Kinds of Office Machines

13.7 Factors in Selecting Office Machines
13.8 Let Us Sum Up
13.9 Keywords
13.10 Terminal Questions

13.0 OBJECTIVES
After going through this unit, you should be able to:

● discuss the meaning and importance of office automation;

● understand the concept of Modern office equipment;
● understand the office Mechanization and various advantages &
disadvantages of Mechanization in offices;
● explain the various kinds of office machines and their use; and
● discuss the factors in Selecting Office Machines.

13.1 INTRODUCTION
The difference between modern offices and traditional office spaces is a
debatable topic. Modern office designs tend to have open-plan layouts and
contemporary interiors, whereas traditional offices are usually closed-plan
and feature old-fashioned decor.

The people and culture of the company, as well as the aesthetics, frequently
define a modern office. In terms of office space, a modern office is likely to
include light/white decor, vast areas, and minimum furniture, resulting in a
modernistic approach. Office equipment refers to furniture and devices that
aid in the effective production of office services, communication, and
records. 199
Modern Office Customers may boost employee productivity and happiness, as well as
Equipments and
Systems generate more seamless communication and collaboration across locations
and platforms, with contemporary workplace solutions, while ensuring the
security and integrity of systems and data.

13.2 OFFICE EQUIPMENT

The tools, machinery, and furnishings required to complete the tasks in an
office are referred to as office equipment.

Every business requirement is to reflect about the types of apparatus, their

business needs in order for their employees to do their job appropriately.
Office equipment helps in managing office-related work and makes your day
to day tasks run smoothly. Office equipment is more often than not
unnoticed, but essential. The correct and essential equipment should be
obtainable for every member of staff so they can work effectively and
proficiently. Not only will employees get good quality equipment, but it will
also benefit the business image. The right office supplies send out a positive
message to clients and partners. Choosing the right office equipment depends
on your business requirements and employees needs.

The importance of Office equipment can be understood by the following

points:

1. They help to improve the quantity of work.

2. They increase the pace or quality of work.
3. They are more precise.
4. They save time and money.
5. They enhance the consistency and look of printed items.

13.3 MODERN OFFICE EQUIPMENT

Technology aids in the organization of the business. The employment of
modern office equipment is foreseen for offices in this modern era- before the
entrance of typewriters in the 15th century, the publication of business papers
was a complex activity that was largely handled by secretaries because
everything had to be handwritten. As time and technology progressed,
corporate organizations experienced information overload as a result of
increased commercial transactions. As a result, technology is required by
business in order to produce words successfully, professionally, and
indefinitely. To meet escalating employee expectations, a contemporary
workplace civilisation welcomes technology, cares less about where and
when individuals complete their careers, and instead fosters a culture based
on mutual respect, trust, and accountability.

Workers spend less time on regular activities while using modern office
technology, which frees them up for other tasks. Computer aware employees
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 Modern Office
examine computer automation strategies in order to save time spent on Equipments
regular, repetitive jobs. Employees, for example, save time formatting
documents by using templates. Sharing a template with other workers via
remote server access, cloud storage, and email from everywhere there is
cellular connectivity may enormously boost competency. Google Drive and
iCloud are useful services for organizing and sharing frequently used
templates, shared spreadsheets, and work-related paperwork. The use of
organized cloud sharing eliminates the necessity for a data-sharing go-
between.

Examples of Modern Office Equipments include the following:

● Ergonomic furniture
● Multifunctional spaces
● Integrated technology
● Collaborative environments
● Open spaces
● Recreation and rest areas
● Lighting
● Decorative motivation

The Advantages of Modern Office Design are as follows:

1. Boosts Productivity: A modern office is distinct from a conventional

environment. It's not merely a four-wall office with a door. It allows to
work both in the workplace and at home. The ability to work and interact
freely with others might really increase productivity and help the
network.
Companies usually strive for a high degree of productivity since it
indicates that the company output is worth the investment. Of all, a
company's efficiency is primarily based on its personnel, which implies
that employees should feel adequately supported at work.
The first step in building an exciting workplace atmosphere is to provide
them with a practical, pleasant, and safe environment. Regardless of the
sort of business one operate, one may set up offices, workshops, and
meeting spaces to foster creativity and productivity.
2. A Healthier Workforce: When creating a new office or workspace, the
health of the employees should be a top priority. If the employees spend
the most of their day at a desk, changing their workstation may make a
significant impact on their physical and emotional well-being. Perhaps
giving standing workstations and providing innovative seating options
may limit the amount of people injured on the job.
3. Creates a Functional Environment: The sort of business the firm runs
will play an important part in the design process while designing a 201
Modern Office functioning workplace. How many staff will occupy the space? Do the
Equipments and
Systems company welcome clients into the office on a regular basis? Will the
general public be able to enter the premises? What kind of machinery or
equipment is required? All of these concerns should be addressed before
signing off on any designs. Knowing the workspace's requirements is
critical to providing a functioning and successful setting in which the
employees can work.

4. Select Reliable Materials: Choosing materials, decor, and office

furniture may be a challenging task. While wanting to choose a suitable
color scheme or branded decor, the materials' dependability, safety, and
durability are all critical.

5. Eliminates the stress factor: While it is rare to totally remove job-

related stress, an open workplace has a really innovative solution. Many
organizations have devised novel techniques to assist, encourage and
alleviate the strain on their staff. Planned events, movie evenings,
parties, and so on are just a few of the features of a contemporary office.
A modern office bends all the norms to suit perfectly with the times,
allowing them to build an atmosphere that thrives.

There are various benefits of upgrading the Outdated office equipment. Same
can be explained as follows:

1. Superior Output Capability: Modern office equipment is constantly

changing and improving in its capacity to produce high-quality
documents and images. If the company is suffering with its present
equipment, it may be time to consider investing in a machine that can
handle the job. Newer equipment produces more output and has a higher
capacity for production, making the workplace more productive.

2. Energy Saving Capability: Modern office equipment has the capacity

to save energy by entering a power saving mode when not in use. This
may not appear to be a lot of energy being consumed, but it will mount
up over time. The same logic that applies to leaving a light on in an
empty room applies here. When not in use, the machine will go to sleep,
conserving energy in the short and long term.

3. Employees will find it easier to use: One of the best aspects of

contemporary office technology is how simple it is to operate for the
average individual. Of course, someone who has been trained in a given
equipment will know exactly what each button does and what the
machine is capable of, but the majority of the personnel will not have
this knowledge. Choose a contemporary machine with the capacity to
perform intuitively. This will increase workplace productivity since the
staff will be able to use machines more quickly and easily.

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Check Your Progress A Equipments

1. What is office Equipment?

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2. List a few examples of modern office equipment.
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3. Does modern office design eliminate the stress factor? If yes, then how?
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4. How does modern office design boost productivity?
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13.4 OFFICE AUTOMATION

Before 1947, when Ford formed an automation department, the term
automation, which was influenced by the previous word automatic (derived
from automaton), was not frequently used. During this period, the industry
was quickly adopting feedback controllers, which had been established in the
1930s. Automation refers to a broad variety of technologies that eliminate the
need for human intervention in operations. Predetermining decision criteria,
subprocess linkages, and associated actions — and embodying those
predeterminations in computers – reduces human intervention. Automation is
a term used to describe technological applications in which human 203
Modern Office involvement is minimal. This covers business process automation (BPA), IT
Equipments and
Systems automation, personal applications such as home automation, and other similar
technologies.

People are unaware of the extent of present automation and the amount of
innovation that has already been incorporated in our everyday lives, allowing
us to function more effectively and freely. Examples of Automation include
data cleaning scripts, self-driving vehicles, hospitality event processing, IVR,
and smart home notifications. The various computer hardware and software
used to digitally produce, gather, store, alter, and convey office information
required to do fundamental activities is referred to as office automation. In
general, an office automation system performs three core functions:
information storage, data interchange, and data management. Hardware and
software work together to provide essential operations in each wide
application area.

Office automation (OA) refers to the collection of hardware, software, and

processes that support the automation of an organization's information
processing and communication tasks. It entails using computers and software
to digitize, store, process, and transmit the majority of ordinary office
operations and procedures.

Office Automation Applications

Data applications, which are used to generate or update a document, file,

spreadsheet, or picture, are part of office automation systems. There are
several word processing and desktop presentation tools available that allow
one to create or edit textual data.

Example of office automation

● Microsoft Office 365

Microsoft Office 365 suite is an example of office automation. By

centralizing all documentation and resources, the software saves time and
money. The MSO-365 suite is a hosted, online version of Microsoft Office
software, similar to the classic installation version.

Source: Microsoft
Figure 13.1 Microsoft Office 365
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 Modern Office
This subscription-based online service comprises Office, Exchange Online, Equipments
SharePoint Online, Lync Online, and Microsoft Office Web Apps.

● Google Workspace

Google Workspace is a bundle of cloud services, productivity, and

collaboration tools, as well as software and solutions created and marketed by
Google. It started in 2006 as Google Apps for Your Domain, was relaunched
as G Suite in 2016, and will be redesigned again in 2020 as Google
Workspace.

Source: Google
Figure 13.2: Google Workspace

Google Workspace is a collection of communication and collaboration

applications designed for business users. The basic Google Workspace
communication programmes, including Gmail and Google Meet, as well as
the collaboration apps, such as Google Docs, Sheets, Slides, and Forms, are
extensively used throughout the world.

13.5 OFFICE MECHANIZATION

Technology aids in the organization of the firm. Project Management
Software, for example, aids in the creation, delegation, review, and
evaluation of tasks. Employers and supervisors can readily monitor
workplace activity, which aids in keeping things on track. Mechanization is
the process of transitioning from performing labor mostly or solely by hand
or with animals to doing it with equipment. Machines and equipment have
become an integral aspect of the contemporary office. A huge range of
appliances and machinery are utilized to ensure that office tasks are
completed quickly, accurately, and efficiently.

Office mechanization is an effort to replace human labor with machine

operation in order to perform regular duties more efficiently and effectively.

13.5.1 Advantages of Office Mechanization

As Internet access coverage and performance increase, the premise of the
office itself becomes less significant. The modern office environment is more
concerned with what you can do rather than where you do it. New technology 205
Modern Office is altering the view of what constitutes an office. Offices will certainly
Equipments and
Systems embrace newer technology that allow them to accomplish more work with
fewer employees, and there will be pressure to maintain a current,
professional image by remaining up to date on the newest tech developments.
Mechanization has become an essential component of the modern office
administrative process. It has several advantages, the most important of
which are as follows:

1. It Reduces Monotony: A work that is repetitive in nature causes

boredom and a sense of monotony among employees. As a result, if the
same job is repeated in the machine, the worker will not feel the pinch,
and therefore a machine minimizes boredom and monotony.

2. Maintains standardization: It improves the grade of work in terms of

quality output. As a result, there is a greater sense of teamwork and
better coordination among the staff.

3. Accuracy: Machines offer greater precision. Errors are reduced to a

minimum. As a result, the job proceeds smoothly and delays and
bottlenecks are avoided, which might be costly.

4. Greater Control: Using a correct collection of machines allows for

better job control since it enables subordinates to utilize them and
perform the work not only within the specified time but also within the
economy—with precision and accuracy.

5. Increased Efficiency: Machines improve the speed and efficiency of all

forms of office activity. With their assistance, work that may take hours
to do could be completed in motion. Improved efficiency leads to
increased profitability while also creating a positive image in the minds
of those who interact with the organization.

6. Lower Operating Costs: The usage of machinery reduces the

operational cost per hour of work. Of course, there is no doubt that they
need a significant initial capital expenditure. However, in the long run,
they are advantageous.

7. Improved Work Quality: Mechanization and machine aid to improve

the quality of work done in the office. Not only will the job be finer, but
it will also be more systematic.

8. More Convenient: Digital files take up far less amount of space than
hard copies and are far easier to organize. Furthermore, archived digital
files are far more accessible than archived paper files. Digital files may
easily be shared among several people at the same time and accessible
from remote places, increasing job productivity.

9. Environmental Friendly: Less paper is utilized for duplicate copies and

general record keeping when there are fewer paper files. In most cases,
this element makes a paperless office more ecologically responsible. For
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 Modern Office
online magazines and other publications, publishing digitally means Equipments
eliminating the use of inks that contain heavy metals, solvents, and other
environmentally hazardous compounds.

13.5.2 Disadvantages of Office Mechanization

Although the use of mechanical devices has several advantages, it also has a
number of disadvantages:

1. Surplus of Staff: It has been discovered that some machines require a

skilled hand to operate. If it is not accessible for an extended period of
time, then either someone is trained to operate it or instant recruiting is
conducted to find a person to run the machine. In both circumstances,
there is a cost involved, and it adds to the expenditure while also
increasing the strength of the staff.

2. High installation costs: Most office devices, such as the Xerox

machine, Electronic Scanning Machine, and computers, are expensive,
and a significant amount is spent not only to purchase them, but also to
maintain them. As a result, the installation and maintenance fees are
rather hefty.

3. Operating Costs: The operating expenses of some equipment might be

rather significant at times. Before purchasing a Xerox machine, for
example, find out how many pages a bottle of toner can copy. Similarly,
determine whether the copier's selenium drum requires servicing in an
air-conditioned area.

4. Breakdown costs: Breakdowns, etc., can be quite expensive at times.

Repairing the same will cost a significant amount of money.
Furthermore, the work is halted throughout the break-down period. This
raises the expense of the office's operating system.

5. Under Utilization of Machines: A machine acquired at a high cost that

is not utilized to its full potential, or is not used regularly, not only
blocks the money that was spent to buy it, but it also decreases the bank's
interest on the money that was blocked while acquiring it. As a result, it
is critical to fully use the potential of machines.

6. Concerns Regarding Software and Hardware: A paperless office is

only as productive as the software and hardware being used to maintain
records allow its employees to be. Software glitches and equipment
outages may wreak havoc on the operations of a paperless office. The
maintenance of a paperless office's software and hardware is also an
issue; information technology (IT) workers or consultants are frequently
required, as are professionals to service the gear on a regular basis.

7. Errors in Data Entry and Learning Curves: The shift to a paperless

office, like any other, frequently requires a learning curve, especially in
an office setting where staff are not already computer proficient. Data 207
Modern Office input mistakes may be expensive and cause big issues. Furthermore, data
Equipments and
Systems input and filing mistakes might lead to mis-categorizing documents,
making it difficult or impossible to locate them afterwards.

8. Concerns Over Security: Unauthorized access to digital documents can

occur through hacking or insufficient security on the part of workers.
Data loss, particularly with sensitive legal and medical documents, can
result in considerable responsibility for the firm involved, especially if
carelessness is involved. Disposing of digital documents provides a
unique challenge, particularly in a shared network setting. Simply
deleting a file does not totally remove a digital record, just as throwing a
document in the trash does not prevent someone else from recovering the
paper later.

9. Monotony: In some circumstances, a specific installation of an office

equipment relieves a worker of his office task. This is true in any
company's production section, as robots replace employees and boredom
becomes a major issue in the office. The introduction of the machine
may lower the worker's interest as well as destroy the worker's passion
and originality.

13.6 KINDS OF OFFICE MACHINES

The primary goal of office machines is to improve the company's operations
and enable employees to work more efficiently. Communication technology
such as phones, fax machines, and computers save time and money by
eliminating the need to travel to meet with people and transmitting
information rapidly. Office machines are mechanical and electrical gadgets
that help in the performance of office tasks. They include anything from
calculators to computers. Office machinery is required for the smooth
operation of a contemporary office. People work in offices, and office
gadgets help them accomplish their duties more effectively. They boost
productivity. Desktop and laptop computers, other electronic devices, office
machinery such as a printer or copier, and furniture and fixtures used to adorn
the workplace are all examples of office equipment.

Few office machines includes the following:

1. Computer Software: Because information is the backbone of any

business, computer software is yet another necessary office component.
Apps, anti-virus software, word processing software, and CRM systems
are examples of computer software. Companies might choose several
options depending on their industry.
2. Furniture: Purchasing the proper office furniture is critical for a variety
of reasons. For starters, it will make the office appear more pleasant and
professional. The workplace will be welcoming and easy to find for both
employees and customers.
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 Modern Office
3. Internet Connection: Having a high-speed internet connection is Equipments
unquestionably necessary for every organization. Businesses would be
unable to communicate with and exchange information both internally
and externally if they did not have a dependable internet connection.
Given that many firms function online, a decent internet connection
helps with day-to-day activities.
4. Stationery: Office stationery is a necessary everyday necessity that
every business should have. Pens, paper, notebooks, post-its, and other
important office supplies must be readily available for employees to
operate successfully and efficiently.
5. Storage Supplies: Office supplies including storage folders, USB flash
discs, and external hard drives assist organizations in keeping everything
organized and distinct. Even as technology evolves and businesses
operate online, paper work will always be a component of any
organization.
6. Printers: Any business with even one PC needs a printer to print
tangible copies of electronic documents and data. Despite future
promises of paperless offices, that day has yet to come. Printing is
required for all types of company documents, regardless of whether the
firm is product- or service-oriented. Invoices, packing slips, posters, and
letters are all examples of regular office paperwork. Printers may be used
not just to transmit electronic files to paper, but also to create composite
documents comprising digital data and scanned images.
7. Documents Scanners: While the fax machine was formerly seen to be
an essential piece of office equipment, electronic copies of almost any
document are now attainable with the aid of a scanner. A scanner
captures a picture of non-electronic documents and transforms them to
digital images that may be saved on a computer or emailed.
8. Shredders: Hand-tearing papers into parts is not only time-consuming
and exhausting, but it is also not always as successful as it should be.
Paper shredders shred a sheet of paper into so many bits that
reassembling it and recovering the lost information is exceedingly
difficult, if not impossible. A shredder is essential in any industry where
confidentiality is required by law, such as law, health, and education. Of
course, each organization with staff maintains human resource
documentation, and most of this information is also sensitive.
9. Computer Projector for Presentation or Meeting: A projector,
sometimes known as an image projector, is a piece of optical equipment
that projects an image (or moving pictures) onto a surface, most
frequently a projection screen. Most projectors generate images by
shining a light through a tiny transparent lens, however some newer
types of projectors may generate images directly by employing lasers. A
virtual retinal display, sometimes known as a retinal projector, is a
projector that projects an image directly into the retina rather than
utilizing an external projection screen. 209
Modern Office
Equipments and 13.7 FACTORS IN SELECTING OFFICE
Systems MACHINES
While choosing office furniture and machines, keep the following aspects in
mind:

1. Cost: The most important aspect influencing office equipment selections

is cost. Office furniture is offered at a variety of pricing points. The
availability of funds should be taken into account while selecting office
machines and equipment. In most cases, cost is the decisive issue.

2. Life: The durability of machinery and equipment varies depending on

the material used to construct them. When compared to wooden and
plastic furniture, metal furniture is more durable. Branded machines of
higher grade are more durable. The durability of office machines and
furnishings should be considered while purchasing them.

3. Compact: Office space is both costly and scarce. Saving space should be
a consideration while buying workplace machines and furnishings.
Furniture that is small in size should be selected. Machines are becoming
smaller as a result of nanotechnology.

4. Portability: The portability of office computers and furnishings should

be a consideration while selecting them. Heavy furniture cannot be
simply transported from one location to another. Furniture that is light in
weight should be selected. Office devices should also be conveniently
transportable.

5. Security: Office equipment and furnishings should not be dangerous. It

is dangerous to have a glass top with sharp-cornered furniture. When
choosing office machinery and furnishings, safety should be a
consideration.

6. Multiple Uses: Office furniture must serve numerous functions. Their

selection should be based on their ability to serve several functions.
Machines should be chosen for certain purposes.

7. Standardization and design: Machines and equipment should be

designed to make office work easier. Size, height, and purpose are all
factors in design. It should be visually appealing. Design standardization
allows for mass purchases at a reduced cost. With standardized
machinery, maintenance is also simplified. When purchasing office
machinery and furniture, design and standards should be carefully
studied.

8. Convenience: Employees spend a significant amount of time in

workplaces. They should be able to sit, work, and store papers
comfortably. When choosing workplace furniture, comfort should be
taken into account. Machines should be easy to operate.
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 Modern Office
Check Your Progress B Equipments

1. Define automation.
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2. What is Google Workspace?
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3. What are shredders?
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4. Why is internet connection necessary in the business?
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13.8 LET US SUM UP

Every business requirement is to reflect about the types of apparatus their
business needs in order for their employees to do their job appropriately.
Office equipment helps in managing office-related work and makes your day
to day tasks run smoothly. Office equipment is more often than not
unnoticed, but essential. The tools, machinery, and furnishings required to
complete the tasks in an office are referred to as office equipment.

Workers spend less time on regular activities while using modern office
technology, which frees them up for other tasks. Computer aware employees
examine computer automation strategies in order to save time spent on
regular, repetitive jobs. Employees, for example, save time formatting
documents by using templates. Sharing a template with other workers via
remote server access, cloud storage, and email from everywhere there is
cellular connectivity may enormously boost competency. Google Drive and
iCloud are useful services for organizing and sharing frequently used 211
Modern Office templates, shared spreadsheets, and work-related paperwork. The use of
Equipments and
Systems organized cloud sharing eliminates the necessity for a data-sharing go-
between.
The various advantages of Modern office design includes the following:
Boosts Productivity, leads to Healthier Workforce, Creating a Functional
Environment and Eliminates the stress factor. There are various benefits of
upgrading the Outdated office equipment include: Superior Output
Capability, Energy Saving Capability and Employees will find it easier to
use.
Automation refers to a broad variety of technologies that eliminate the need
for human intervention in operations. Predetermining decision criteria,
subprocess linkages, and associated actions — and embodying those
predeterminations in computers – reduces human intervention.

Office automation (OA) refers to the collection of hardware, software, and

processes that support the automation of an organization's information
processing and communication tasks. It entails using computers and software
to digitize, store, process, and transmit the majority of ordinary office
operations and procedures. Examples include Microsoft Office 365 and
Google Workspace.

Office mechanization is an effort to replace human labor with machine

operation in order to perform regular duties more efficiently and effectively.
It has several advantages, the most important of which are as follows: It
Reduces Monotony, Maintains standardization, Accuracy, Greater Control,
Increased Efficiency, Improved Work Quality, Environmentally Friendly and
others. Although the use of mechanical devices has several advantages, it
also has a number of disadvantages: Surplus of Staff, High installation costs,
Operating Costs, Breakdown costs, Concerns Regarding Software and
Hardware, Errors in Data Entry and Learning Curves and others.

Office machines are mechanical and electrical gadgets that help in the
performance of office tasks. They include anything from calculators to
computers. Office machinery is required for the smooth operation of a
contemporary office. People work in offices, and office gadgets help them
accomplish their duties more effectively. They boost productivity. Desktop
and laptop computers, other electronic devices, office machinery such as a
printer or copier, and furniture and fixtures used to adorn the workplace are
all examples of office equipment.

The various factors affecting selection of Office machines include Cost,

Durability, Compact, Portability, Security, Multiple uses, Convenience and
Design & standardization.

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 Modern Office
13.9 KEYWORDS Equipments

Automation: It refers to a broad variety of technologies that eliminate the

need for human intervention in operations. Predetermining decision criteria,
subprocess linkages, and associated actions — and embodying those
predeterminations in computers – reduces human intervention.
Google Workspace: It is a bundle of cloud services, productivity, and
collaboration tools, as well as software and solutions created and marketed by
Google. It is a collection of communication and collaboration applications
designed for business users.
Microsoft Office 365 suite: It is an example of office automation. By
centralizing all documentation and resources, the software saves time and
money. The MSO-365 suite is a hosted, online version of Microsoft Office
software, similar to the classic installation version.
Office Automation: It refers to the collection of hardware, software, and
processes that support the automation of an organization's information
processing and communication tasks. It entails using computers and software
to digitize, store, process, and transmit the majority of ordinary office
operations and procedures
Office Equipment: The tools, machinery, and furnishings required to
complete the tasks in an office are referred to as office equipment.
Office Machines: These are mechanical and electrical gadgets that help in
the performance of office tasks.
Scanner: Scanner captures a picture of non-electronic documents and
transforms them to digital images that may be saved on a computer or
emailed.
Shredders: Shredders shred a sheet of paper into so many bits that
reassembling it and recovering the lost information is exceedingly difficult, if
not impossible.

13.10 TERMINAL QUESTIONS

1. Why is office equipment necessary?
2. Explain the concept of modern office equipment. Provide a few examples.
3. What are the various advantages of modern office design?
4. What are the various benefits of upgrading the outdated office equipment?
5. Explain the concept of office automation with examples.
6. What is office mechanization? What are its various advantages and
disadvantages?
7. What are the various kinds of office machines?
8. What are the various factors affecting selection of office machines?

Note: These questions will help you to understand this unit better. Try to
write answers for them. But do not submit your answers to the University for
assessment. These are for your practice only.
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Modern Office
Equipments and UNIT 14 MODERN OFFICE SYSTEM
Systems

Structure

14.0 Objectives
14.1 Introduction
14.2 Technological Communication
14.2.1 Meaning of Web-Conferencing
14.2.2 Easy, Effective and Reliable Video Solutions for Any Meeting Space
14.2.3 Modern Enterprises Video Communication

14.3 Office System and Automation

14.3.1 E-Gov Office Automation
14.3.2 System Automation
14.3.3 e-Office Software Office Automation Software

14.4 Technology Internet and Cloud used in office

14.4.1 Smart Cloud Based Office Solutions
14.4.2 Benefits and Drawbacks of Cloud Computing?
14.4.3 Cloud Storage
14.4.4 Role of Cloud Computing
14.4.5 Impact of IoT in Cloud
14.4.6 Different Types of Cloud Computing and Their Benefits

14.5 Let Us Sum Up

14.6 Keywords
14.7 Answers to Check Your Progress
14.8 Terminal Questions

14.0 OBJECTIVES
After studying this unit, you should be able to:

● identify various tools for communicating effectively in offices;

● explain how technology enables communication at the workplace;
● describe the different types of solutions provided by technology for ease
of communication; and
● describe the significance of office automation in various organizations
including government sector organizations.

14.1 INTRODUCTION
Nowadays, a company's office is more than just a physical location where
business transactions take place, it rather serves as an extension of its brand.
It is the hub of ideas that makes the business unique. As a result, when it
comes to designing a modern office, many companies, from large corporation
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 Modern Office System
to small business, pay close attention to the details. As a business advantages,
a modern office includes technology. Businesses can improve their efficiency
and employees day-to-day processes easier. The modern office is heavily
reliant on software and mobile applications that assist businesses in learning
about the market and increasing their market share. Modern offices allow
employee to communicate more easily about projects that aid the business in
keeping workflow on track and keep the team connected while working
toward a common goal.

14.2 TECHNOLOGICAL COMMUNICATION

14.2.1 Meaning of Web-Conferencing
In simple terms, Web-Conferencing refers to online service with the help of
which one can hold meetings, conferences, presentations, training sessions,
etc. using the internet, where there can be two or more participants from
anywhere in the world , can see, talk and hear each other in real-time.

Figure 14.1: Web Conferencing

Any basic web-conferencing would require a microphone, a sound system, a

web browser, a monitor. For video conferences, connecting to a web
conference would also require a webcam. In any web-conferencing there can
be three different contributors:
● Host – The person who organizes the meeting , responsible for the
agenda and participants
● Presenters – Person who would be delivering the content of the meeting
( can be different from host and there can be multiple presenters)
● Guests – People who receive invites from the host with all details and
are the audience of the conference, meeting, events.
215
Modern Office Although web-conferencing has been gaining popularity in the last few years
Equipments and
Systems due to advancement in technology, post-covid, it is now seen as an alternative
to physical meetings.

14.2.2 Easy, Effective and Reliable Video Solutions for Any

Meeting Space
Face-to-face communication or physical meetings obviously have certain
advantages. For example, one can perceive and send body-language cues, and
to use non-verbal cues to reflect emotions which may not be verbally
expressed. But, as mentioned in the last section, due to advancement in
technology and with unprecedented COVID impact, it is no longer
uncommon to see communication happening in virtual space instead of
physical one. Nowadays virtual meetings are replacing physical meetings.
The various parameters for virtual meetings to be successful are as follows:
● Easy – Adding complexity cannot be an alternative to physical meetings,
so. The devices and platforms to be used should be user friendly
● Effective – Should not dampen the intent or message of the meetings in
any way. The communication should be as effective as in any physical
meeting.
● Reliable – Multiple technical failures, failed to prevent data leakage and
privacy concerns can impact reliability and should be minimized.
There is a surge in the market with various companies offering easy,
effective and reliable video solutions for any meeting space. The right
solution which may be opted for is largely dependent on the types of
meetings one intends to hold. Some of the popular players in the area are:
● Zoom
● Webex meetings
● Microsoft Teams
● Google meet
● GoTOMeeting
and many more. Every player has a certain advantage and depending on the
needs of the user, one should choose the application which is best suited to
their needs.

Check Your Progress A

1. What is web-conferencing?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

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 Modern Office System
2. What are the different contributors to web-conferencing?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
3. Fill in the blanks:
i) Web-Conferencing refers to ______ with the help of which one can
hold meetings, conferences, presentations, training sessions, etc.
using the internet
ii) ___________________ is a person who organizes the meeting,
responsible for the agenda and participants
iii) In face-to-face communication we can use ____________________
cues, unlike in virtual meet.
iv) ZOOM is one of the popular companies providing _______ solution.

14.2.3 Modern Enterprises Video Communication

Video conferencing is one of the web-conferencing solutions which permits
the participants from different physical locations to hold face-to-face
meetings without having to meet physically at one location.

Use of Video Conferencing

● Company meetings
● Online classes for schools and colleges
● Interviews
● Job training sessions
● Medical consultation
● Business deals
● Academic seminars
● Political meetings

The vital benefit offered by video conferencing over teleconferencing is that

users can see one other, which further allows them to connect and bond with
each other in a better way. Video conferencing can take place in multiple
ways, for example: Webcams can be attached to or incorporated into laptops,
tablets, and desktop computers or even devices like smartphones can help us
in connecting with others over video conferencing. In such cases, the
communication is often sent across Internet protocols using a software-based
platform.

Following are the Essential components required for any video conferencing:

1. Laptops, tablets , desktop computers or smartphones

2. Web camera or built in camera 217
Modern Office 3. Software-based platform for communication over internet protocols
Equipments and
Systems 4. Internet connection

As stated in the previous section, with lockdowns in many areas of the world,
including India, causing many people to work from home or attend online
classes, video conferencing systems such as Zoom, Google Meet, and
Microsoft Teams witnessed a boom in their usage pandemic. Many business
and academic conferences yearly meetings and seminar sessions were
conducted via internet video conferencing services. Financial advisors,
therapists, tutors, and attorneys, for example, were able to meet with their
clients and conduct one-on-one consultations using video conferencing.
During the pandemic, certain judicial hearings and court cases were fully
conducted via video conference. Doctors and other medical professionals also
embraced telemedicine in far greater numbers than they did prior to the
pandemic.

14.3 OFFICE SYSTEM AND AUTOMATION

14.3.1 E-Gov Office Automation
E-Gov is defined as “delivery of government services, information to the
public using electronic means”. The dictionary definition of automation is
“the technique of making an apparatus, a process, or a system operate
automatically.” To put it in simple words, reducing human interventions
wherever possible is automation. E-Gov Office automation aims to automate
workflows within government departments and agencies to enable efficient
government procedures and to make these processes visible to citizens.

Automation plays an important role in both:

● Internal operations of e-gov offices, where the objective is efficient,

speedy and transparent government administration services with proper
accountability.
● As well as external operations where the objective is efficient, speedy,
accountable interactions with the public, thus satisfactorily fulfilling their
needs and expectations in respect to various online services.
Office Administrative processes as given below are some of those activities
which should be given paramount importance from the automation
perspective:
● Automation of entire life cycle of movement of files and
correspondences/DAK from creation to archival with process unification
across departments and agencies for speedy file management
● Automation of query routing and auto-allocation of queries to the
respective departments which can increase the speed of processing
● Automation of alerts, notifications, reminders using automated system
218 defined escalation matrix for faster execution and timely responses
 Modern Office System
● Digital Signature integration for pdf documents to avoid hassle and
decrease the processing
● Barcode Integration for file and correspondence tracking to avoid delays
and losses due to human error, misplacement error
● For office note management which refers to the entire process of
planning, design and implementation of work, automation would
increase the overall efficiency

Few advantages of E-Gov office automation are:

1. Significant cost savings in government operations

2. Reduction of the administrative burden
3. Help in building an agile operation, ensuring more efficient and effective
Government to Citizen (G2C), Government to Business (G2B), and
Government to Government(G2G) processes.

14.3.2 System Automation

In the last section, we already discussed the definition of automation. This
section explains the office system automation. Technology is transforming
the way people operate in offices and organisations. With this technological
advancement, traditional systems and office practices are quickly becoming
extinct. For example, memos have been replaced by e-mails, employee
timesheet stamping has been rendered useless by biometrics etc.

The office automation system is the tool that facilitates the movement of data
from one system to another by itself without any human intervention . Office
system automation would

● Eliminate any paperwork

● Minimize the human errors and inaccuracies
● Reduces the storage space with easy retrieval
● Allows multiple people to access data at same time thus making parallel
processing possible

Advantages of office system automation:

● Mobile Compatibility
● Saves Time and Resources
● Availability of Reports and Analytics
● Facilitates Easier Creation of Workflows

Even with so many known benefits of an office automation system, many

organizations and businesses are still reluctant and struggling to adopt it as it
appears to be too overwhelming for them. However, with a structured
approach the process is quite achievable.
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Modern Office 14.3.3 e-Office Software Office Automation Software
Equipments and
Systems
Office Automation helps in managing data, with the help of a system created
using different computer systems and software.

In its endeavour to execute key ICT projects of government at all levels,

National Informatics Centre (NIC) has developed many platforms and
software. E-Office is one such product; it’s a “digital workplace solution for
all government employees”.

The goal of the e-Office is to aid governance by facilitating more efficient

and transparent inter- and intra-governmental activities. The goal of e-Office
is for all government offices to function in a way that is simple, responsive,
effective, and transparent. Because of the Open Architecture on which e-
Office is based, it is a reusable framework and a standard reusable product
that can be replicated by governments at all levels, including the central,
state, and local levels. The product unifies disparate operations and systems
into a unified framework.

The various products that act as component of e-Office are:

eFile

Knowledge
PIMS Management
System (KMS)

e-Office
Products Collaboration
and Messaging
SPARROW services
(CAMS)

eTour eLeave

Figure. 14.2: Products of e-Office

• eFile: As part of the country's inclusive governance, the government has

placed a strong focus on enhancing efficiency and internal procedures,
increasing openness in decision-making, and incorporating citizen
engagement. The creation of files, noting in the files, making choices at
various levels, and eventually issuing decisions as letters and
notifications are all part of the governance process. eFile enables smooth
flow of work in this regard.

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 Modern Office System

Figure. 14.3: eFile

Source: NIC.in (https://www.nic.in/products/e-office/)

• Knowledge Management System (KMS): For smooth functioning of

various activities, the government has to manage a large volume of
documentation. Having a single repository of documents from which all
department/ministry users may access information is aided by
maintaining a central repository of documents. Users may produce and
manage electronic documents that can be browsed, searched, and shared
with e-Office KMS. It may also keep track of the many versions that
have been edited by different users (Tracking history).

Figure. 14.4: Knowledge Management System

Source: NIC.in (https://www.nic.in/products/e-office/)

• Collaboration And Messaging Services (CAMS): It helps users in

communicating efficiently along with sharing relevant information with
each other in real life. With the assistance of CAMS, a more connected
workplace can be provided to employees as it provides a unified
communication and collaboration environment.

Figure 14.5: Collaboration And Messaging Services

Source: NIC.in (https://www.nic.in/products/e-office/)

• eLeave: It is a workflow-based system that allows the user to apply for

leave online, follow the status of application, and view information about
leaves taken and balance. The technology aids in the elimination of
paper-based applications as well as quicker and more time-bound
processing.
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Modern Office
Equipments and
Systems

Figure 14.6: eLeave

Source: NIC.in (https://www.nic.in/products/e-office/)

• eTour: It is a system that makes it easier to handle employee tour

programmes efficiently. All tour requests are correctly accounted for
with this system. Employees may apply for, cancel, approve/reject, and
examine tour records without having to go through the tedious process of
filling out paperwork. The system keeps track of the employee's tour and
plans in detail.

Figure 14.7: eTour

Source: NIC.in (https://www.nic.in/products/e-office/)

• SPARROW: It is an online system based on the State

Government/Central Government's thorough performance review dossier
for each member of the Service. The goal of this system is to make it
easier for officers to fill out their Performance Appraisal Report (PAR)
electronically in a way that is not only user-friendly but also allows them
to do it from anywhere at any time. Officers will have similar
convenience at various stages in the workflow hierarchy of the filling
and submission procedure. The technology is also intended to speed up
the submission of fully completed APARs.

Figure 14.8: SPARROW

222 Source: NIC.in (https://www.nic.in/products/e-office/)

 Modern Office System
• PIMS: Personnel Information Management System (PIMS) is a
workflow-based system for keeping track of an employee's information
like their identity, skills, salary information, etc. Users can input and
amend employee personal data and employment records using PIMS,
depending on their access and position rights.

Figure 14.9: PIMS

Source: NIC.in (https://www.nic.in/products/e-office/)

Check Your Progress B

1. What is E-Gov?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. List down different office administrative processes in E-Gov which are
important for automation.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
3. List down different advantages of the office system automation
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
4. List down different products of the e-Office.
……………………………………………………………………………
……………………………………………………………………………
223
Modern Office ……………………………………………………………………………
Equipments and
Systems ……………………………………………………………………………
……………………………………………………………………………
4. Fill in the blanks:
i) E-Gov Office automation aims to _____________workflows within
government departments and agencies to enable _______________
government procedures.
ii) The __________________is the tool that facilitates the movement
of data from one system to another by itself without any human
intervention
iii) __________________ is transforming the way people operate in
offices and organisations
iv) __________________ is an online system based on the State
Government/Central Government's thorough performance review
dossier for each member of the Service.

14.4 TECHNOLOGY INTERNET AND CLOUD

USED IN OFFICE
14.4.1 Smart Cloud-based Office Solutions
The ‘Cloud Office’ refers to a variety of internet-based computing services,
including collaboration and communication tools that include email, file-
sharing, conferencing, instant messaging, document management, etc. ‘Cloud
computing’ refers to a cloud alternative to what organizations conventionally
manage in-house. For instance, leveraging a webmail service as an alternative
to hosting its own email-server by the organization. Microsoft Office 365 and
Google’s G-Suite are the prominent cloud-based office solutions leveraged
by organizations across the globe.

Cloud-based office systems help in cost reduction and improved

collaborations in today’s “anytime, anywhere” working environment. These
cloud-based solutions contribute to enhanced efficiency and productivity
levels in the organizations. Cloud-based office solutions help to streamline
setup processes, lessen IT costs and optimize maintenance expenses for all
applications, communications, data and backup requirements of the
organization. The rising number of connected devices and ease in
deployment and usage are some of the key drivers of smart cloud-based
office solutions.

The Cloud Office Services market is categorized into 4 major segments (by
component):

● Cloud office migration tools

● Cloud office collaboration services
224
 Modern Office System
● Cloud office professional services
● Cloud office suite

Some of the popular items that are globally transferred from source systems
to cloud-based platforms include the following:

Emails Files Calendars

Document Related
Applications
types metadata

User Compound Linked

permissions structures components
Figure 14.1: Items transferred from Source System to cloud- based Platform

14.4.2 Benefits and Drawbacks of Cloud Computing

There are a plethora of benefits and drawbacks that cloud computing provides
to the organization:
Benefits:
● Reduced support and hardware needs
A cloud computing infrastructure needs a smaller IT staff than a
conventional IT setup, thereby requiring reduced support and hardware
needs
● Improved global collaboration
Cloud-based solutions help professionals to connect with other
professionals outside the organization. It enables them to easily access
their work ‘anywhere, anytime’, even using mobile technology
● Green alternative
As cloud computing requires less office resources such as IT equipment,
it focuses on less consumption of electricity and leads to optimization of
energy consumption, leading to energy efficiency and low maintenance
costs
● Data backup
Through storing the data on the cloud, it helps in easy backup and
restoration of data using cloud solutions
● Data security
Cloud computing helps to store and handle the data securely
225
Modern Office ● Unlimited storage capacity
Equipments and
Systems Cloud carries huge storing capacity for different formats of data such as
documents, images, audio, video, etc.
Drawbacks:
● Internet connectivity services
Relying on cloud computing services needs high dependence on reliable
internet connectivity. For using cloud computing, organizations need to
have more bandwidth, consistent internet access, speed of connection,
etc.
● Highly dynamic field
The field of cloud computing is highly dynamic as the vendors tend to go
out of the business quite frequently as this bring challenge to the
continued service for a long period of time
● Chances of hacking
Although, cloud computing services are very safe and secure, there are
chances of hacking while transferring the organization’s sensitive
information to the third-parties, i.e. cloud-computing service providers
● United control
As the cloud infrastructure is managed, controlled and owned by the
service provider, the organization using the services has limited control
over the function and implementation of processes, systems and other
services within the infrastructure
● Vendor lock-in
Organizations using services of a vendor may face difficulties in
transferring those services to another vendor. As the difference between
the platforms provided by one vendor and another is quite significant, the
organizations face difficulties in switching the platforms

14.4.3 Cloud Storage

Definition:
Cloud storage is a cloud computing model that allows saving data, files and
other documents in an “off-site location” that is accessible via public internet
or any other private internet connection. It delivers a cost-effective alternative
to saving data in the organization on hard drives and other storage networks.
Cloud storage offers the benefit of flexibility to scale-up or scale-down the
capacity used as per the change in requirements from time-to-time.
Working of Cloud Storage:
Cloud storage is purchased from a third-party cloud provider who owns,
controls, and handles data storage capacity and provides it through the
internet in a "pay-as-you-go" approach. These cloud storage providers
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 Modern Office System
oversee capacity, durability, and security in order to make data available to
apps all over the world.
Organizations often connect to the storage cloud using a website, a mobile
app, or a web portal, either over the internet or through a private connection.
Depending on the scale of the cloud provider's operations, the server with
which they connect delivers the data to a group of servers situated in one or
more data centres. The providers store the same data on multiple machines so
that if a server is taken down for maintenance or due to an outage, one can
still access the data.
Benefits of Cloud Storage:
Storing data in the cloud lets IT departments transform three areas:
● Reduced costs
With cloud storage, there are no hardware costs. The capacity can be
altered on demand and organizations are required to pay for storage that
they eventually use
● Time to Deployment
Cloud storage allows IT to quickly deliver the exact amount of storage
whenever required. This allows IT to emphasize on solving complex
application problems instead of managing storage systems
● Scalability
As the capacity is virtually unlimited, the organizations can scale up as
per the requirements, thereby overcoming the constraints of on-premise
storage systems
● Continuity of business operations
Cloud storage supports business continuity in scenarios such as natural
disasters or terrorist attacks that can hamper the operations of business

14.4.4 Role of Cloud Computing

Cloud computing offers a convenient way to access servers, storage,
databases and a complete host of application services over the Internet. Cloud
providers function and manage the network-attached hardware tools needed
for the application services, offering and leveraging the resources
organizations need through an internet application. The involved servers give
utilities such as stockpiling, security, etc. Cloud computing offers these types
of facilities focused on an organization’s needs.
Cloud-based office systems help in cost reduction and improved
collaborations in today’s “anytime, anywhere” working environment. These
cloud-based solutions contribute to enhanced efficiency and productivity
levels in the organizations. Cloud-based office solutions help to streamline
setup processes, lessen IT costs and optimize maintenance expenses.

227
Modern Office
Equipments and
Systems Broad
network
access

Measured On-demand
service self-service

Characteristics of
Cloud Computing

Resource
Rapid
pooling and
elasticity
virtualization

Figure 14.11: Characteristics of Cloud Computing

Source: NIST definition

14.4.5 Impact of IoT in Cloud

Cloud computing and IoT have emerged as the two complementary potential
internet technologies. The Internet of Things (IoT) is a global network of
computing devices and machines that facilitate data-sharing without human
or computer involvement. When combined, they offer a host of benefits and
advantages. The increased use of the ‘Internet of Things’ in the cloud has
helped in the development and execution of scalable apps and business
models.
IoT devices require storage in order to exchange data for purposeful
activities. IoT’s integration with cloud, such as Stone Fly Cloud Connect to
Microsoft Azure, provides users with enhanced space that can be augmented
as and when required.
To communicate and connect with each other, the huge volume of data
provided by IoT devices requires extreme performance. IoT in the cloud
offers the connectivity needed to exchange data amongst devices.

14.4.6 Different Types of Cloud Computing and Their

Benefits
The prominent cloud computing models are:

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 Modern Office System

Infrastructure as a Platform as a Service

Service (IaaS) (PaaS)

Types of
Cloud
Computing
Software as a Service Functions as a Service
(SaaS) (FaaS)

Figure 14.12: Types of Cloud

Infrastructure as a Service (IaaS)

IaaS serves as the fundamental for cloud IT and is a cloud computing service
that often includes networking capabilities, machines (virtual or dedicated
hardware), and data storage space. Some of the examples are Amazon EC2,
Windows Azure, etc.

It allows consumers to access processing power without having to invest in

expensive hardware or managing servers providing maximum control and
flexibility over the IT resources. Most of the IaaS packages include servers,
networking, storage, and virtualization components. Users that utilize IaaS
are in charge of installing and maintaining databases, operating systems,
applications, and security components.

Platform as a Service (PaaS)

It is an upgraded version of IaaS and it delivers the computing platform and

solution stack as a service in addition to the IT infrastructure. PaaS is a cloud
computing service that provides a platform for developers to use when
creating bespoke apps. Some examples are: AWS Elastic Beanstalk,
Force.com. by Salesforce, Google App Engine, etc.

PaaS makes software development simple even for non-experts, since

anybody can create an application using a web browser and a few mouse
clicks. PaaS allows developers in multiple places to collaborate on the same
application, allowing for geographical freedom.

Software as a Service (SaaS)

The offerings of SaaS provide an amalgamation of the service offerings of

both IaaS and PaaS. It provides application-level services with
customizations offered for specific business needs. It offers consumers on-
demand access to web-based software applications. It provides a fully
working programme with a browser-based interface that consumers may 229
Modern Office access through the Internet. Some examples are: SAP Business ByDesign,
Equipments and
Systems Zoho CRM, Microsoft Office 365, etc.

There is no upfront setup fee because customers may start using the app right
away after signing up. There are no hardware costs because the service
provider provides the computing power. It also provides compatibility across
devices. It also gives a finished product that the service provider runs and
manages.

Functions as a Service (FaaS)

FaaS offers serverless computing. Server-less computing model does away

with low level decisions pertaining to infrastructure and server management
as the application architect is taken care of by cloud service providers. It is
the newest and most popular model prevalent today. Some examples are:
Google Cloud Function, Webtask.io, Iron.io, AWS Lambda, etc.

It increases the efficiency as developers are not required to consider server

operations because they are hosted externally. It helps developers build
efficiency by not letting them focus on server logistics. It is highly scalable.

Check Your Progress C

1. What is a cloud office?

…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
2. What is cloud storage?
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………..
3. Fill in the blanks:
i) Amazon EC2 is an example of ________ .
ii) Force.com. by Salesforce is an example of ________.
iii) __________ is associated with serverless computing.
iv) __________ incorporates both IaaS and PaaS service offerings.
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 Modern Office System
14.5 LET US SUM UP
Web-Conferencing refers to online service with the help of which one can
hold meetings, conferences, presentations, training sessions, etc. using the
internet , where there can be two or more participants anywhere in the world ,
who can see, talk and hear each other in real-time. In any web-conferencing
there can be three different contributors: host, presenters and guests.
E-Gov is defined as “delivery of government services, information to the
public using electronic means”. The dictionary definition of automation is
“the technique of making an apparatus, a process, or a system operate
automatically.” To put it in simple words, reducing human interventions
wherever possible is automation. E-Gov Office automation aims to automate
workflows within government departments and agencies to enable efficient
government procedures and to make these processes visible to citizens.
The office automation system is the tool that facilitates the movement of data
from one system to another by itself without any human intervention . Office
system automation would eliminate any paperwork, minimize the human
errors and inaccuracies, reduce the storage space with easy retrieval and
allow multiple people to access data at same time thus making parallel
processing possible.
Office Automation helps in managing data, with the help of a system created
using different computer systems and software.
In its endeavor to execute key ICT projects of government at all levels,
National Informatics Centre (NIC) has developed many platforms and
software. E-Office is one such product; it’s a “digital workplace solution for
all government employees”. The various products that act as component of e-
Office are eFile, Knowledge Management System (KMS), Collaboration and
Messaging services (CAMS), eLeave, eTour, SPARROW and PIMS.
The ‘Cloud Office’ refers to a variety of internet-based computing services,
including collaboration and communication tools that include email, file-
sharing, conferencing, instant messaging, document management, etc. ‘Cloud
computing’ refers to a cloud alternative to what organizations conventionally
manage in-house.
Cloud-based office systems help in cost reduction and improved
collaborations in today’s “anytime, anywhere” working environment. These
cloud-based solutions contribute to enhanced efficiency and productivity
levels in the organizations. Cloud-based office solutions help to streamline
setup processes, lessen IT costs and optimize maintenance expenses for all
applications, communications, data and backup requirements of the
organization. The rising number of connected devices and ease in
deployment and usage are some of the key drivers of smart cloud-based
office solutions.
Cloud storage is a cloud computing model that allows saving data, files and
other documents in an “off-site location” that is accessible via public internet
or any other private internet connection. It delivers a cost-effective alternative
to saving data in the organization on hard drives and other storage networks. 231
Modern Office Cloud storage offers the benefit of flexibility to scale-up or scale-down the
Equipments and
Systems capacity used as per the change in requirements from time-to-time.

14.6 KEYWORDS
Cloud storage: Cloud storage is a cloud computing model that allows saving
data, files and other documents in an “off-site location” that is accessible via
public internet or any other private internet connection.
E-Gov: E-Gov is defined as delivery of government services, information to
the public using electronic means.
Web-Conferencing: Web-Conferencing is an online service by which one
can hold meetings, conferencing, presentations, training sessions using the
internet, where there can be two or more participants anywhere in the world,
and can see, talk and hear each other in real-time.

14.7 ANSWER TO CHECK YOUR PROGRESS

A. i. online service ii. Host iii. body language iv. web-conferencing
B. i. automatic ,efficient ii. Office automation system iii. Technology iv.
SPARROW
C. i. IaaS ii. PaaS iii. FaaS iv. SaaS

14.8 TERMINAL QUESTIONS

1. Write brief notes on following:
i) Cloud Computing
ii) Web-conferencing
iii) System Automation
iv) Cloud Storage
2. Differentiate between the following:
i) Infrastructure as a Service (IaaS) and Platform as a Service (PaaS)
ii) Software as a Service (SaaS) and Functions as a Service (FaaS)
3. Explain the meaning and functions of Web-conferencing
4. Explain the advantages of using cloud computing.
5. Explain the meaning and significance of System automation.

Note: These questions will help you to understand this unit better. Try to
write answers for them. But do not submit your answers to the University for
assessment. These are for your practice only.

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 Banking Facilities and
UNIT 15 BANKING FACILITIES AND Modes of Payment

MODES OF PAYMENT

Structure

15.0 Objectives
15.1 Introduction
15.2 Types of Accounts
15.3 Passbook and Cheque Book
15.4 Other Forms Used in Banks
15.5 Online Banking
15.5.1 Internet Banking
15.5.2 Mobile Banking
15.5.3 Automated Teller Machines (ATM)
15.5.4 Debit and Credit Cards
15.5.5 Mobile Wallet

15.6 Types of Payments

15.6.1 Cheque
15.6.2 Indian Postal Order
15.6.3 Online Payments

15.8 Let Us Sum Up

15.9 Key Words
15.10 Terminal Questions

15.0 OBJECTIVES
After studying this unit, you should be able to:

● know about the different types of bank accounts;

● differentiate between checkbook and passbook;
● know about the different types of banking forms;
● understand the different types of online banking; and
● understand the different types of payment methods.

15.1 INTRODUCTION
Banks are the backbone for the smooth functioning of any economy and
plays a central role in facilitating economic activity through three interrelated
processes namely financial intermediation, asset transformation, and money
creation. Banks provide three core banking services: deposit collection,
payment arrangement, and loan underwriting. Banks also offer financial
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Modern Office services such as cash, asset, and risk management. With the global advances
Equipments and
Systems in technology, traditional banks have started offering online banking and
payment services. Technological innovation not only enables a broader reach
for consumer banking and financial services but also enhances its capacity for
continued and inclusive growth.

15.2 TYPES OF ACCOUNTS

An individual can open different kinds of bank accounts depending upon
their needs and requirements set by the bank. Initially, there were only four
types of bank accounts that were operating in India. These included the
Current Account, Savings Account, Recurring Deposit Account, and Fixed
Deposit Account. But later with the advancement in the banking sector, other
types of bank accounts got introduced including the DEMAT account and the
NRI account. A brief description of various types of bank accounts is given
below:

1. Savings Account: As the name suggests, the savings accounts can be

opened by an individual or jointly by two people to save money. This is
the most common account opened by an individual. The main benefit of
opening a savings bank account is that the bank pays you interest for
opening this type of account with them. Given below are a few features
of the Savings account:
• There is no limit to the number of times the account holder can
deposit money in this account but there is a restriction on the
number of times money can be withdrawn from this account;
• The rate of interest that an account holder get varies from 4% to 6%
per annum;
• There may / may not be a minimum balance that needs to be
maintained for this type of an account
• The savings account holders can get an ATM/Debit/Rupay Card if
they want to;
• Savings bank account is further divided into two types: Basic
Savings Bank Deposit Account (BSBDA) and the other one is Basic
Saving Bank Deposit Accounts Small Scheme(BSBDS); and
• The savings bank account is most popular amongst students,
pensioners, and working professionals.
2. Current Account: The second type of bank account is the current bank
account. These accounts are not used for the purpose of savings. Some
important pointers related to the current bank account have been
discussed below:
• This type of bank account is mostly opened by businessmen.
Associations, Institutions, Companies, Religious Institutions, and
234 other business-related works;
 Banking Facilities and
• There is no fixed number of times that money can either be Modes of Payment
deposited or withdrawn from such accounts;
• Internet banking is available;
• This type of bank account does not have any fixed maturity;
• Overdraft facility is available for current bank accounts; and
• There is no interest that is paid on such accounts.
3. Recurring Deposit Account: Recurring Deposit account or RD account
is a form of account wherein the account holder needs to deposit a fixed
amount every month until it reaches the fixed maturity date. The features
of the Recurring deposit account have been discussed below:
• Any individual or an Institution can open a recurring deposit account
either separately or jointly;
• Periodic or monthly installments that need to be added can be as low
as Rs. 50/- or may vary from bank to bank;
• The range of months for which an RD account can be opened varies
from 6 months to 120 months;
• The interest rate varies depending upon the bank you choose to open
an account with;
• Nomination facility is also available for RC accounts; and
• Premature withdrawal of the amount is permitted, provided a sum of
the amount is deducted as a penalty.
4. Fixed Deposit Account: FD or a fixed deposit account is another type of
bank account that can be opened in any Public or Private sector bank.The
list of important things that need to be known with respect to the fixed
deposit account has been mentioned below:
• It is a one-time deposit and one-time take away account. Under this
type of account, the account holder needs to deposit a fixed amount
sum (as per their wish) for a fixed time period
• The amount deposited in the FD account can only be withdrawn all
at once and not in installments
• Banks pay interest on the fixed deposit account
• The rate of interest depends upon the amount you deposit and the
time duration of the FD
• Full repayment of the amount is available before the maturity date of
FD
5. DEMAT Account: Shares and securities which can be held in electronic
format constitute the DEMAT account. The DEMAT account also stands
for Dematerialized Account. Given below the points that need to be
known by a candidate regarding the DEMAT Account:
235
Modern Office • There are only two depository organizations that manage this type of
Equipments and
Systems bank account in India. This includes: National Securities Depository
Limited and Central Depository Services Limited
• This helps facilitate easy trade of bonds and shares
• Helps in conducting stress-free transactions of shares
• KYC is required for opening the DEMAT Account
• Transaction cost is reduced
• Traders can work from anywhere
• The transfer of securities can be done with reduced paperwork
6. NRI Account: To fulfill the bank requirements of a Non-Residential
Indian or a Person of India Origin, the option of an NRI account is
available. The NRI Accounts are further divided into three types:
1. NRO (Non-Resident Ordinary Rupees) Account: This shall allow
you to transfer your foreign earnings easily to India. It can be
opened in the form of an FD/RD/Current/Savings account. These
accounts can be opened by an individual or jointly opened.
2. NRE (Non-Resident External Rupees) Account:When an Indian
citizen moves abroad to work there, his/her account needs to be
converted into an NRE account. This account can be jointly opened
with an Indian resident.
3. FCNR (Foreign Currency Non-Resident) Account:This type of
account can be opened to manage an international currency. It can
only be in the form of a Term deposit and can be withdrawn after the
maturity period only.
To help manage the finances here are some excellent reasons to have a bank
account-
• Bank accounts offer simplicity for transactions. one can easily withdraw
money and make payments if they have a bank account.
• Having bank accounts offers a safe treasury of your hard-earned money
and even if the bank or the unions are close you are sure to get back your
money.
• Most banks and financial institutions offer the account holders free or
low-cost services; hence bank accounts are cheaper.
• It is an easy way to grow money. Most banks offer an interest rate when
you put your money in a savings account. The interest will help your
money grow over time.
• It offers easy access to credits. Having a bank account is favorable as
banks provide the facility to access credits to their customers for
Personal loans, home loans, education loans, etc.

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 Banking Facilities and
15.3 PASSBOOK AND CHEQUE BOOK Modes of Payment

A passbook is a bank document given to all bank account holders by the bank
which lists the various transactions that have been made into (credited) and
out of (debited) that account. It becomes mandatory to record transactions
when the account holder starts initiating the transactions. A passbook
provides tracking of the money spent, recording account statements as well as
monitoring the transactions effortlessly.

Traditionally, a passbook is used for accounts with a low transaction volume,

such as savings accounts. A bank teller or postmaster would write by hand
the date and amount of the transaction and the updated balance and enter his
or her initials. In the late 20th century, small dot matrix or inkjet
printers were introduced that were capable of updating the passbook at the
account holder's convenience, either at an automated teller machine or a
passbook printer, either in a self-serve mode, by post, or in a branch.

Passbooks appeared in the 18th century, allowing customers to hold

transaction information in their own hands for the first time. Up until then,
transactions were recorded in ledgers at the bank only, so customers had no
history of their deposits and withdrawals. The passbook, which was around
the size of a passport, ensured that customers had control over their
information, and was called a "passbook" because it was used as a way to
identify the account holder without needing further identification.

With the rapid growth of technology, the old printed passbooks of the old
days are speedily being replaced by digital passbooks. Unlike traditional
bank passbooks, a digital passbook is a digital way of recording banking
transactions without any need to visit a bank branch. Digital passbooks do
not require any manual processing of transactions. Likewise, the traditional
passbook, a digital passbook also showcases all the transactions made over a
period of time along with the debited amount.

Cheque books are provided to all current and savings account holders.
Defaulting on a cheque is punishable by law. A checkbook is a folder or
small book containing preprinted paper instruments issued to checking
account holders and used to pay for goods or services. A checkbook contains
sequentially numbered checks that account holders can use as a bill of
exchange.

In recent years in developed countries there are many design choices

available to the account holder for their cheques. A cheque book is a book,
which contains several leaves which enable you to draw your own money
from the bank, where you have an account or you can issue cheques to third
parties. A passbook keeps a record of the latest balance available in the
account, based on which the account holder can draw the amount through the
check book or make payment to a third party.
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Modern Office
Equipments and 15.4 OTHER FORMS USED IN BANKS
Systems
Banks are one of the most regulated financial institutions around the world.
The banking sector needs to ensure that all its customers comply with
regulatory requirements. Compliance is very important and central banks and
other global watchdogs provide stringent oversight. Thus, there are many
forms used by banks to provide their services. Some of the most commonly
used documents in banking are discussed below:

1. Deposit Slip: The deposit slip is a common banking document that

anyone depositing cash or check into an account will need. It is a form
on which the depositor indicates the date of the transaction, the
depositor’s name, account number, and amount deposited. Various
benefits of deposit slips are stated below:

• Banks rely on deposit slips to maintain a ledger of deposited funds;

• The customer can also use it as proof that the bank received the
funds if the deposit was incorrectly counted;
• The slip contains the depositor’s name, the date, the depositor’s
account number, and the amount;
• The deposit slip also indicates whether the depositor made the
deposit using cash or a check. This information is useful when there
is a need for an audit;
• A deposit slip needs to be signed before presenting it to the teller.
The teller must also sign the deposit slip, for it to become valid.
After signing, the teller must issue a receipt for that deposit;
• Deposit slips can also be used to transport money, whereby you
deposit cash in one branch and then withdraw it from another bank
branch;
• Clients can also use deposit slips to make direct payments, instead of
issuing checks, when they need to prove they made payments on
time, such as when paying rent, taxes, fines, etc.

2. Debit Card: Banks issue debit cards to account holders. The card helps
the individual gain access to their money electronically. Most people use
debit cards to withdraw money from automated teller machines (ATMs)
or to pay for goods or services at shopping malls and other point-of-sale
locations. The debit card allows for debit or credit transactions on an
individual’s account. Unlike credit cards, debit cards protect you from
going into debt. However, in a few cases, you may incur a small debt if
you signed up for overdraft protection. But the negative balance is
usually incredibly small.

Using a debit card comes with some risks on the part of the user. For
instance, if it gets lost, someone may use it to make an online purchase.
238 Fortunately, most banks allow for a chargeback, if the user reports the
 Banking Facilities and
debit card loses promptly, and the fraudster fails to provide the right Modes of Payment
billing address. Debit cards expire after a certain period, which appears
on the front side of the card, after which the user must apply for a
replacement card. Some banks may charge you a debit card maintenance
fee monthly or annually, while others may only charge you a fee when
you renew your debit card. The fact that debit cards typically have daily
purchase limits also ensures you cannot spend too much money with the
card within a short time. Some debit and credit cards also offer valuable
reward programs.

3. Bank Statement: The bank statement is a financial document used in

the banking sector to show a summary of account transactions. The
document is usually prepared every month and takes into account
transaction details in a deposit or a credit card account. The statement
contains particulars such as date, type of transaction, amounts involved,
and balances. Bank statements are incredibly useful documents for any
business or individual. In the present scenario e-statement comes into
picture and one can download e-statement flow a respective Bank portal.
You can use the document in the following ways:

• Check your bank balance and reconcile your accounts;

• Identify errors or fraudulent activities;
• Track your income and expenditure;
• Get to know your net worth;
• Help to document your finances; and
• To determine credit-worthiness.
4. Loan agreement form: The Loan Agreement form is one of the most
commonly used documents in the banking sector. Whenever one needs to
apply for a loan, the bank will provide the loan agreement form to be
filled by the borrower and verified by the lender. A bank will rely on
other documents to establish the creditworthiness of the borrower. The
loan agreement form contains a commitment to a repayment schedule
and may include collateral in case of an inability to pay.
5. Letter of Credit (LoC): Banks use a letter of credit as a financial
document that stipulates what documents a party needs to provide for
payment to occur. The LC also ensures the payment occurs as indicated
and through SWIFT. It is a guarantee of payment provided by the bank,
that if a party meets the requirements stated in the letter of credit, they
will get paid.
6. Bank Pre-Advice: The Pre-Advice document is used by banks to offer
advice and as a request to open financial instruments on behalf of
customers in this or that bank. It involves two banks, with the recipient
bank expected to acknowledge and accept the advice before the asking
bank proceeds to facilitate the said financial instrument.
239
Modern Office 7. Cheque: It is a document most used within the banking sector. A written
Equipments and
Systems cheque will instruct a bank or other such financial institution to pay the
indicated amount of money. The amount is paid from the drawer’s
account to the person named on the cheque or the bearer. Many people
still use cheques in the digital era since they are, Safer to mail,
Traceable, Not deposited immediately and thus Make budgeting easier.
There are three different types of popular cheques as discussed below:

• Bearer Cheque: A bearer cheque is payable to the person who

presents it at the counter. It is an unsafe means of payment since
anyone can cash a bearer’s check at the counter. A bank does not
have a way to verify the details of the person cashing the bearer’s
cheque.

• Order Cheque: An order cheque is payable to the person whose

name appears on the check, or according to the instructions of the
person named on the check. Therefore, the payee can cash it at the
counter or the bank can transfer the funds to the payee’s bank
account.

• Crossed Cheque: A crossed cheque has two lines drawn on its face,
and the payee cannot cash it at the counter. Instead, the bank
transfers the check’s funds to the payee’s bank account. It is the
safest check since it allows the bank to do further checks on the
payee.

8. Bank Guarantee (BG): Another common document is the Bank

Guarantee. Banks use this financial instrument to indicate that the bank
is ready to make a full payment once the target party meets certain
conditions as set out in a Sale and Purchase Agreement (SPA). Anyone
with a BG document can borrow money or access credit against it.

9. Bank Note: This is a banking document that people also call a “bill”. It
is a negotiable promissory note, that a bank issues, and whose usage is
broadly similar to what we call money or legal tender. A banknote is
always payable on demand and to the bearer. The financial institution
(bank) prints the note’s amount payable figure on the note.

10. Account Opening Form: The account opening form is a standard

document that a bank gives to a person that wants to open a bank account
within the bank’s branch. The format and required information of this
form vary from one bank to another. Nonetheless, most account opening
forms require an individual to provide some specific information, which
may include full name, addresses, contact number, next of kin, and more.
In recent years, this form exists both physically and electronically. As a
result, a potential client can download, print, and submit the form to the
closest branch. Some banks allow clients to electronically fill out online
forms, which can be submitted to the bank digitally after being filled.
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 Banking Facilities and
11. Withdrawal Slip: Withdrawal slips can be described as the opposite of Modes of Payment
deposit slips. This piece of document allows a bank account owner to
withdraw money from their account. A typical withdrawal slip can be
found within the banking hall of a bank’s branch. Within this slip,
important information is written by the client, which allows the bank
personnel to verify the identity of the client. Such information includes
account name, signature, account number, withdrawal amount, and more.
A withdrawal slip can only be used with a savings account. A checking
account requires a cheque for the withdrawal of money.

12. Fixed Deposit Receipt: A fixed deposit receipt is a document that

contains information about a fixed deposit made by a client to a bank.
Such information includes the full name, address, age, deposit amount,
duration of the deposit, and interest rate. This type of receipt serves as
proof that a client has money fixed within a bank. A fixed deposit receipt
is usually given to a client at a branch once the agreement between a
client and a bank has been reached. Therefore, it serves as proof of an
agreement between parties.

13. Demand Draft: This type of document is another important banking

document. Basically, a demand draft allows a client to pay for products
from a merchant through a third-party bank. A demand draft functions
just as an exchange bill or a cheque. But a demand draft is sometimes
difficult to cancel. The reason for this difficulty is that demand drafts are
made for a particular party by the bank. This characteristic is quite
different from a cheque or an exchange bill.

14. Demand Draft Request Form: A demand draft request form is a type of
requisition document. Just like any other requisition document, it allows
for a request. However, it is used as a formal document for requesting
items or services. The demand draft request form is an excellent
document for accounting and tracking requests made within a business.
A typical demand draft request form contains the name of the author of
the requisition, request date, requested items, dates, delivery details,
fulfillment department, and more. Additionally, a box for appending
signatures is allowed given within the form. For large organizations, this
type of document is perfect as it allows for smooth banking processes.

15. Account Closing Form: An account closing form is a document that

allows an account owner to formally request the closure of their account.
This form is usually given to the customer upon request. In general, the
form provides spaces for an account owner to provide personal
information such as full name, account name, account type, and more.
Additionally, an individual signs the document for validation. Finally, a
user is usually asked to provide a reason for the closure of their account
as this information is used to better serve other clients.

241
Modern Office 16. Reference Form: The reference form is sometimes called the account
Equipments and
Systems reference form or the referee form. This form is usually given to a client
when they are at the point of opening a bank account, especially a
checking account. The form is to be completed by several individuals
that will give an account of the financial worthiness of an individual and
the ability to maintain an account. The referees that complete such forms
are required to have an active checking account before they become
eligible to act as a reference for others.

17. Account Upgrade Form: The account upgrade form is a document that
allows a client to provide additional information that will allow a bank to
upgrade their account status from one type to another. In most cases, an
account upgrade form is used to request more information from an
individual. For example, an individual can be asked to provide proof of
ownership of a property so that their account can become eligible for
accessing a larger amount of overdraft.

18. Transfer Request Form: A transfer request form is of piece document

that authorizes a bank to transfer a stipulated amount of money from one
account to another. This form is usually given to an account owner at the
counter. There they fill in their banking details and provide the banking
details for the person to whom the money will be transferred.

19. Card Request Form: A card request form is a document that lets an
account owner request either a debit or a credit card from their financial
institution. This document usually contains fields where basic
information is provided by the person that requires a card. After the form
is completed, it is usually submitted and a card is issued either
instantaneously or shipped to the mailing address of the account owner
in a few working days.

Check Your Progress A:

1. What do you understand by passbook?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
2. Differentiate between NRI Account and NRO Account.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
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 Banking Facilities and
3. “Compliance is very important and central banks and other global Modes of Payment
watchdogs provide stringent oversight”. Comment.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
4. Differentiate between Credit Cheque and Bearer Cheque.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

15.5 ONLINE BANKING

Online Banking is a medium of delivering banking services that facilitates
the customer to access their accounts from anywhere in the world and offers
them customized services as per their needs in a timely and cost-effective
manner. Now almost all the traditional banks have incorporated E-banking
services to meet their customers’ emerging demands. Customers can perform
day-to-day banking transactions, check the market information, make trades,
view balances, transfer money, open new accounts and even apply for a range
of banking services sitting on their most comfortable locations. Thus, banks
in this way provide a convenient and cost-effective collection of services to
their customers via the opening of and adoption of online platforms. The
evolution of smartphones along with digital technology totally reformulated
the payment landscape. Online banking services can majorly be classified
into four categories; Internet Banking, Mobile Banking, ATMs, and Debit
and Credit Cards. Each of these types are discussed in detail below:

15.5.1 Internet Banking

With the help of internet banking, an individual can move funds from one
bank account to another with online bank transfers. Even if the funds are
spread across accounts at different institutions, it helps to have an easy way
to make transfers between them. Online transfers are a convenient way to
transfer money from one bank to another. Internet banking services can
further be classified into 3categories;

• Information Only Services: These services provide General-purpose

information like interest rates, branch, location, etc.
243
Modern Office • Information Transfer Services: The services provide information
Equipments and
Systems which are customers- specific such as account balances, transaction
details, etc.
• Electronic Transactional Services: These services allow the customers
to operate on their accounts for the transfer of funds, payment of
different bills, subscribing to other products of the band to transact
purchase and sale of securities, etc.

15.5.2 Mobile Banking

Mobile banking is one step closer to creating a completely digitalized
environment. It refers to a service provided by a bank or other financial
institution, that enables customers to perform a range of financial transactions
over mobile. Banks provide mobile banking services to their clients in the
different ways listed here:

• Mobile Applications: Mobile banking apps have come a long way.

Once upon a time, features like mobile check deposits were considered
cutting edge. Now, consumers have come to expect that kind of
functionality, along with seamless money transfers, bill pay, ATM
locators, and more. Today, some apps will even let you track accounts
from different financial institutions. Others offer built-in financial
wellness and budgeting platforms. Some turn your mobile device into a
digital wallet. If mobile offerings are a deciding factor for you in
choosing a bank, we’ve assembled this list of the best banking apps on
the market.

• SMS Banking: Along with mobile apps, most banks offer mobile
banking services over SMS. This service is useful for those who do not
have smartphones and/or internet connections. Customers need to
register their mobile number with their bank to avail of SMS banking.
SMS banking offers services such as balance enquiry, mini-statement,
block atm card or a credit card, enquiry for forex rate, enquiring about
current interest rates etc.

• Unstructured Supplementary Service Data (USSD): USSD is a type

of communication via which one can exercise basic banking services.
There is no need for a smartphone or an internet connection for this
service. It allows services like balance inquiry and transfer of funds.
*99# is a USSD based mobile banking service, that has been launched by
NPCI which is supported by 51 leading banks in India. It offers various
services such as balance inquiry, mini statement, transfer of funds,
MMID etc.

15.5.3 Automated Teller Machines (ATM)

ATM is designed to perform the most important function of the bank. It is an
electronic banking outlet that allows customers to complete basic transactions
244
 Banking Facilities and
without the aid of a branch representative or teller. It is operated by a plastic Modes of Payment
card with its special features. The plastic card is replacing cheques, personal
attendance of the customer, banking hours restrictions, and paper-based
verification.

15.5.4 Debit and Credit Cards

Debit cards are also known as check cards. They offer an alternative to
carrying a checkbook or cash. The Credit Cardholder is empowered to spend
wherever and whenever he wants with his Credit Card within the limits fixed
by his bank. A credit card is a postpaid card. Debit Card, on the other hand, is
a prepaid card with some stored value. Every time a person uses this card, the
Internet Banking money gets transferred to its account from the bank of the
buyer. The buyers’ account is debited with the exact amount of purchases.

15.5.5 Mobile Wallet

A mobile wallet is a virtual wallet that stores payment card information on a
mobile device. Mobile wallets are a convenient way for a user to make in-
store payments and can be used at merchants listed with the mobile wallet
service provider. It is a technique to hold cash in digital format and can link
the credit card or debit card information in mobile device to mobile wallet.
One can use mobile wallets to make in-store payments, online purchases, pay
for digital content, and accept offers, cash backs and rewards. This type of
payment method allocates consumers to make ‘tap-and-pay’ purchases and
use a single wallet for all purchases, including online and offline purchases.
Mobile wallets are integrated and intended to let secure, hassle-free and
speedy payments for goods and services. A mobile wallet uses a bank
account, debit or credit card information to process payments and the
payment details are stored in a secure and encoded format. These wallets help
lower the payment processing time, lessen fraud and are cost-effective. It is
very simple to use a mobile wallet all you need to do is install the app on
your smartphone and register for the service.

15.6 TYPES OF PAYMENTS

The major types of payments are cheques, Indian postal orders and online
payments are discussed below:

15.6.1 Cheque
Payment cheques are the traditional method for collecting regular and one-
off payments. A payment cheque is a document, written and signed by a
customer, instructing a bank or building society to debit your account and
pay another person or organization. A payment cheque can take up to 7
working days to clear. Various types of cheques are:

• Post-Dated Cheque: A post-dated check (or post-dated cheque) is a

check written with a future date. In other words, the date that appears on 245
Modern Office the check is after the date when the check was written. Even with a
Equipments and
Systems future date appearing on the check, the check could clear (be paid from)
the bank account before that date.

• Pre-Dated Cheque: A pre-dated check is a check with a date before the

date of deposit. Assuming your friend gives you a check on a Friday with
the same date and you deposit it at the bank the next Monday. You have
deposited a pre-dated check that is four days old. Now, depositing pre-
dated checks is fine until they get too old.

• Stale Cheque: When the date written on the cheque is three months
prior to submission to the bank for payment, it is called a Stale cheque.
As per RBI guidelines, with effect from April 1, 2012, the validity period
of the cheque is reduced from 6 months to 3 months, from the date of
issue of the instrument.

• Dishonored Cheque: A dishonored check is another term for a returned

check or a check with non-sufficient funds. Many people also refer to a
dishonored check as a bounced check or simply a bad check. Writing a
dishonored check can result in fees for the person who wrote the check,
and inconvenience both customers and business owners. In India, a
bounced check is a criminal offense, punishable by fines and/or jail term,
under Section 138 of the Negotiable Instruments Act, 1881.

Cheques may be dishonored by a financial institution because there are

insufficient cleared funds in the account to cover the cheque. Other reasons
for not honoring a cheque include:

• the account holder instructs the bank not to pay the cheque, called a
stopped cheque;
• the account holder's funds are frozen;
• the account does not exist due to a false cheque being presented;
• the date of the cheque is outside the period permitted by law;
• the signature on the cheque is not the same as the signature on the file of
the account holder or an authorized signatory on the account; or
• the cheque is damaged.

15.6.2 Indian Postal Order

A postal order, postal note, or money order is a financial instrument usually
intended for sending money through the mail. It is purchased at a post office
and is payable at another post office to the named recipient. A fee for the
service, known as poundage, is paid by the purchaser.

Indian Postal Orders are the means of remitting money from one place to
another through the post office. They used to be useful in transferring small
amounts like the application fees for the government services. The amount is
to be paid at one post office and is paid to the recipient at the destination post
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office. Indian Postal Orders (IPOs) are still very much in use, particularly in Modes of Payment
rural areas and transactions in Government offices. The IPOs are basically
like Bank Demand Drafts (DDs)-a means to transfer money through Post
Offices. The finance ministry has approved the linking of savings bank
accounts at post offices with IPPB accounts. This will enable post office
account holders to transfer money from their accounts to any bank account.

15.6.3 Online Payments

Online transfers are generally free at online banks and brick and mortar
institutions, though some do charge. The various steps about how to transfer
money from one bank to another online are discussed below:

• Link the two accounts: Log in to the first bank’s website or mobile app
and select the option for making transfers. There may be a choice for
internal transfers, that is, moving money in between two accounts within
the same bank from checking to savings, for example. You want the
external option, which lets you move funds out to a different bank.

• Provide external account information: Have the second bank’s IFSC

code and your account number handy. You can usually get this
information from a bank statement or printed paper check.

• Confirm the new account: After you enter the required information, the
first bank will typically want to verify that you have access to the second
bank’s account. You might be asked to enter your username and
password, which the first bank would then verify. Another way the first
bank could verify the account is to make a small deposit or two (think a
few pennies each) and ask you to confirm the amounts. This process
could take a couple of days to complete.

• Set up transfers: Once the account is confirmed, you can set up

transfers from the sending bank’s website. Choose the sending and
receiving accounts, and enter the amount to be transferred and the date
for the transaction to occur. From there, you can usually see which date
the funds are expected to be available in the receiving account. You will
also want to choose whether you want to make a one-time transaction or
a recurring transfer (once a week, for example). After you have made
your choices, select the option to submit them.

Check Your Progress B:

1. Write a short note on electronic transactional services offered by internet

banking.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
…………………………………………………………………………… 247
Modern Office 2. “The evolution of smartphones along with digital technology totally
Equipments and
Systems reformulated the payment landscape”. Comment.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
3. What is USSD?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
4. Differentiate between pre-dated and post-dated cheques.
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

15.8 LET US SUM UP

Banks are the backbone for the smooth functioning of any economy. And
plays a central role in facilitating economic activity through three interrelated
processes namely financial intermediation, asset transformation, and money
creation. Banks provide three core banking services: deposit collection,
payment arrangement, and loan underwriting. An individual can open
different kinds of bank accounts depending upon their needs and
requirements set by the bank. Initially, there were only four types of bank
accounts that were operating in India. These included the Current Account,
Savings Account, Recurring Deposit Account, Fixed Deposit Account,
Demat Account, NRI Account, etc.

A passbook is a bank document given to all bank account holders by the bank
which lists the various transactions that have been made into(credited) and
out of (debited) that account. It becomes mandatory to record transactions
when the account holder starts initiating the transactions. And, Cheque
books are provided to all current and savings account holders. Defaulting on
a cheque is punishable by law. A cheque book is a folder or small book
containing preprinted paper instruments issued to checking account holders
and used to pay for goods or services.

Banks are one of the most regulated financial institutions around the world.
The banking sector needs to ensure that all its customers comply with
regulatory requirements. Compliance is very important and central banks and
other global watchdogs provide stringent oversight. Thus, there are many
forms used by banks to provide their services. Some of the most commonly
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used documents in banking are deposit slips, debit cards, bank statements, Modes of Payment
loan agreement forms, letters of credit (loc), fixed deposit receipts, demand
drafts, account closing forms, transfer request forms, and request forms, etc.

Online Banking is a medium of delivering banking services that facilitates

the customer to access their accounts from anywhere in the world. Online
banking services can majorly be classified into four categories; Internet
Banking, Mobile Banking, ATMs, and Debit and Credit Cards. With the help
of internet banking, an individual can move funds from one bank account to
another with online bank transfers. Mobile banking refers to a service
provided by a bank or other financial institution, that enables customers to
perform a range of financial transactions over mobile. ATM is an electronic
banking outlet that allows customers to complete basic transactions without
the aid of a branch representative or teller. Debit cards are also known as
check cards. They offer an alternative to carrying a checkbook or cash. The
Credit Cardholder is empowered to spend wherever and whenever he wants
with his Credit Card within the limits fixed by his bank. A credit card is a
postpaid card.

The major types of payments are cheques, Indian postal orders, and online
payments. Payment cheques are the traditional method for collecting regular
and one-off payments. A payment cheque is a document, written and signed
by a customer, instructing a bank or building society to debit your account
and pay another person or organization. A postal order, postal note, or money
order is a financial instrument usually intended for sending money through
the mail. It is purchased at a post office and is payable at another post office
to the named recipient. The various steps about how to transfer money from
one bank to another online are linking the two accounts, providing external
account information, confirming the new accounts, and setting up transfers.

15.9 KEYWORDS
Cheque: A payment cheque is a document, written and signed by a customer,
instructing a bank or building society to debit your account and pay another
person or organization.
Current Account: Current bank account is opened by businessmen who
have a higher number of regular transactions with the bank. It includes
deposits, withdrawals, and contra transactions. It is also known as Demand
Deposit Account.
Demat Account: A Demat account (short for "dematerialized account") is a
necessary account to hold financial securities (equity or debt) in a digital
form and to trade in the share market.

Fixed Deposit Account: Fixed deposit account gives you a fixed rate of
interest on your money for a defined period. That means you will always
know exactly what returns you will receive, regardless of any changes in
interest rates.
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Modern Office Mobile Banking: Mobile banking refers to a service provided by a bank or
Equipments and
Systems other financial institution, that enables customers to perform a range of
financial transactions over mobile

NRI Account: An NRI Account refers to the accounts opened by a Non-

Resident Indian (NRI) or a Person of Indian Origin (PIO) with a bank or
financial institution which is authorized by the Reserve Bank of India (RBI),
to provide various services.

Online Banking: Online banking is a medium of delivering banking services

that facilitates the customer to access their accounts from anywhere in the
world and offers them customized services as per their needs in a timely and
cost-effective manner.

Passbook: A passbook is a bank document given to all bank account holders

by the bank which lists the various transactions that have been made
into(credited) and out of (debited) that account.

Recurring Deposit Account: A recurring deposit account enables an

individual to deposit fixed amount every month for a pre-defined period
which earns interest similar to Fixed Deposits (FD).

Savings Account: A savings account is an interest-bearing deposit account

held at a bank or other financial institution.

Unstructured Supplementary Service Data (USSD): USSD is a type of

communication via which one can exercise basic banking services.

15.10 TERMINAL QUESTIONS

1. Describe the different types of accounts and their features.
2. What are the advantages and disadvantages of using pass-books and
checks?
3. Do you think forms will lose their relevance in the coming time? Why or
why not?
4. What are the steps for doing online payments?
5. What are the different types of Online banking? Differentiate between
internet banking and mobile banking
6. State the different types of Cheques?

Note: These questions will help you to understand this unit better. Try to
write answers for them. But do not submit your answers to the University for
assessment. These are for your practice only.

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