A

PROJECT REPORT
ON

“___________________________________________” Submitted
to
Savitribai Phule Pune University

SYBBA(CA)
by

NAME:______________________________________ SYBBA(CA)
Roll No. ______ Seat No. ________

Guided by:

( ________________________)

Head of the Department Dr.

Mrs. L. M. Bhat

B. Y. K. (Sinnar) College of Commerce, Nashik - 5 Year:

2024 – 2025

University Exam Seat No:

 Gokhale Education Society’s

B.Y.K. College of Commerce Prin. T. A.

Kulkarni Vidyanagar, Nashik – 5.
‘NAAC’ Accredited with Grade ‘A’

ISO 9001-2015 Certified College

Certificate

This is to certify that Mr. / Miss. ___________________________________________ of

SYBBA

(CA), Roll No. has undertaken and completed the Mini Project titled

_______________________________________________________________

as per the guidelines of Savitribai Phule Pune University for the year 2024 – 2025.

Date: / /2025 Project Guide Principal

( )
Exam Date: / /2025 Internal Examiner External Examiner
 Index

Sr.no Content Page no

1 Introduction
2 Objectives of the system
Scope and Limitations of the
3
system
4 Entity Relationship Diagram
5 Data Flow Diagram
6 Data Dictionary

Introduction
This software will be provided as a tool to the BANK. The BANK has been working for
Accounts information, Withdrawal (through Cash/Cheque). Deposit amount. In this Software you
can keep record for daily Banking transactions.
The main purpose of this software is to simplify the tedious task of banking by providing this
service in a user friendly environment. It also aims at increasing the efficiency and reducing the
drawbacks of existing manual banking process, thus making it more convenient for the customers
to do banking as when they require.
This project is supported by a well designed DBMS in which customers account information is
integrated together. A friendly UI is also provided so that the requests made by the user give
correct results by accessing the information stored in the database.

A banking system in software engineering refers to an application that manages financial

transactions, customer accounts, and banking operations.It includes modules for account
management, deposits, withdrawals, fund transfers, and loan processing.The system ensures
security and compliance by implementing encryption, authentication, and regulatory
policies.Modern banking software supports online banking, mobile banking, and digital
payments for customer convenience.It integrates with third-party payment gateways, credit card
services, and digital wallets. Database management systems (DBMS) store and retrieve banking
data efficiently.

A banking system is a network of financial institutions that provide services such as accepting
deposits, granting loans, facilitating transactions, and offering investment opportunities. It plays a
crucial role in the economy by ensuring financial stability, supporting economic growth, and
enabling the flow of money between individuals, businesses, and governments.

The banking system continues to evolve with technology, regulatory changes, and global
economic shifts, ensuring efficient financial services for individuals and businesses worldwide.

Key Components of a Banking System.

1.User Management: Handles customer accounts, authentication, and authorization.

2.Account Management: Manages different types of accounts (savings, checking, loans, etc.)

3.Transaction Processing: Supports deposits, withdrawals, transfers, and bill payments.

4.Security & Compliance: Implements encryption, authentication (e.g., 2FA), and regulatory
compliance (e.g., KYC, AML).

5. Reporting & Analytics: Generates financial reports, transaction histories, and fraud detection
insights.
OBJECTIVE AND SCOPE OF THE SYSTEM

The objective of a Banking System project in Software Engineering is to design and develop a
secure, efficient, and user-friendly system that automates and manages banking operations.
The main objective of the Banking System project is to develop a software application that
facilitates the efficient management of banking activities such as account creation, deposit and
withdrawal transactions, balance inquiry, fund transfers, and customer management. The system
aims to reduce manual workload, minimize errors, enhance security, and provide users with
quick access to banking services. This project also focuses on ensuring data integrity, scalability,
and user authentication to safeguard financial information and maintain customer trust.

Objectives of the Banking System

. Ensuring Financial Stability

• Maintain liquidity and solvency to meet customer withdrawals and obligations.

• Manage risks like credit risk, market risk, and operational risk.

2. Maximizing Profitability

• Optimize interest rates on loans and deposits to increase margins.

• Diversify revenue sources through investments, loans, and financial services.

3. Effective Risk Management

• Implement strategies to minimize credit default risks.

• Use AI and analytics for fraud detection and prevention.

4. Enhancing Customer Satisfaction

• Offer seamless banking services through digital platforms.

• Provide personalized financial products based on customer needs.

5. Regulatory Compliance and Governance

• Follow central bank guidelines and anti-money laundering (AML) regulations.

• Ensure transparency and ethical financial practices.

6. Innovation and Digital Transformation

 • Adopt fintech solutions like AI, blockchain, and mobile banking.
• Improve cybersecurity to protect customer data.

SCOPE-:
The scope of a banking system project outlines the boundaries, functionalities, and key objectives that the
system is designed to achieve. It defines what the software will do and what it will not do.

1. Core Banking Functions

Account creation and management (savings, current, fixed deposits)
Fund transfers (within bank and external transfers)
Balance inquiry and account statements
 Loan application and management
2. User Management
Secure login and role-based access for customers, employees, and administrators
Profile management for users
Customer onboarding with KYC (Know Your Customer) process
3. Transaction Handling
Real-time processing of deposits, withdrawals, and transfers
Transaction history with detailed logs
SMS/email alerts for transactions
4. Security Features
Data encryption and secure communication
Two-factor authentication (2FA)
User activity monitoring and fraud detection
5.Reporting and Analytics
Generation of account reports and transaction summaries
Loan repayment schedules
Dashboards for administrators to monitor performance
6.Integration Capabilities
Connectivity with external payment gateways and APIs
Integration with national banking networks (e.g., RTGS/NEFT)
Compatibility with mobile and web platforms
7.Administrative Tools
Staff management and permissions
System configuration settings
Audit trails and compliance tracking
8.Financial Services Scope
• Accepting Deposits – Savings accounts, current accounts, fixed deposits, and recurring
deposits.
• Providing Loans & Advances – Personal loans, business loans, home loans, vehicle
loans, and credit facilities.
• Investment Services – Mutual funds, bonds, stock market investments, and wealth
management.
• Payment & Settlement Services – Online banking, UPI, NEFT, RTGS, and digital
wallets.
• Foreign Exchange & Trade Finance – Currency exchange, international remittances,
and trade financing for exports/imports. 9. Economic Scope

• Monetary Policy Implementation – Banks help control inflation, money supply, and
interest rates.
• Capital Formation – Encouraging savings and investments to fund economic activities.
 • Employment Generation – Banking creates jobs directly (bank employees) and
indirectly (financing industries and businesses).

10.Technological Scope
• Digital Banking – Mobile banking, internet banking, and AI-driven chatbots for financial
assistance.

Entity relationship diagram

DATA FLOW DIAGRAM ZERO
LEVEL DFD

A Zero-Level Data Flow Diagram (DFD) for a Banking System provides a high-level overview
of the system, showing how external entities interact with the system without going into internal
details. It represents the system as a single process with inputs and outputs.

LEVEL 1 DFD
The Level 1 DFD expands on the Zero-Level DFD by breaking down the main "Banking
System" process into multiple subprocesses. It shows how data moves between different
components of the banking system in more detail.
LEVEL 2 DFD

The Level 2 DFD breaks down the subprocesses from the Level 1 DFD into smaller, more
detailed processes.
DATA DICTIONARY
The data dictionary, or Meta data repository, as defined in the IBM Dictionary of Computing, is a
"centralized repository of information about data such as meaning, relationships to other data,
origin, usage, and format.

DATA DESCRIPTION
Documents Account documents | Loan documents
Details Account details | Loan details
Account documents ID Proof + Residence Proof + Date of Birth Proof
Loan documents ID Proof + Residence Proof + Birth Proof + Salary slip +
PAN Card + Loan application
Account details Name + Address + Phone Number + Account number +
Signature
Loan details Loan time period + Loan amount + Loan type
Name First name + Middle name + Last name
Address House No. + Village name + State name + PIN code
Phone number Digit+Digit+Digit+Digit+Digit+Digit+Digit+Digit+Digit+Digit
Account number Digit+Digit+Digit+Digit+Digit+Digit
Deposit Reciept Date of deposit + Amount deposited
Response Approval | Rejection
Loan Reminder Reminder message + Last date to pay EMI