Information System for Banks book by Indian Institute of Banking & Finance

Information System for Banks is a comprehensive guide to the intersection of modern banking operations and technology. This book aligns with the evolving dynamics of the financial industry in the digital age. It brings in-depth knowledge of information systems, cybersecurity risks, legal frameworks, auditing standards, and the technology-driven transformations reshaping the banking sector. It integrates foundational concepts with contemporary technology practices. It is a repository of theoretical and applied know-how, ensuring readers can navigate and innovate in a rapidly changing digital banking environment.

This book is intended for the following audience:

• Banking Professionals and Auditors – Front-line managers, auditors, and banking officers who need clarity on the essentials and emerging trends in information systems, risk management, cybersecurity, and business continuity
• Students and Exam Aspirants – Individuals preparing for IIBF's Certified Information System Banker and other professional certifications who require a clear understanding of banking technology frameworks
• IT & Security Practitioners – Technology teams, cybersecurity specialists, and software developers serving in the banking domain, seeking structured insights into operational risks, compliance, and regulatory guidelines
• Senior Management and Decision-makers – Executives responsible for strategic planning, policy formulation, and oversight in banking operations, aiming to stay updated on the latest regulatory requirements and IT governance models

The Present Publication is the 2025 Edition, updated by Mr Naga Mohan Gollangi (Former Chief Information Security Officer – Bank of India) and vetted by Mr Burra Butchi Babu (Former General Manager – Bank of India). Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following noteworthy features:

• [Contemporary Insights] This book captures the impact of digital payments, mobile banking, cybersecurity threats, and data privacy challenges
• [Regulatory Alignment] Up-to-date coverage of the regulatory directives, including the Payment & Settlement Systems Act, IT Act and amendments, RBI guidelines, and global standards like ISO 27001 and ISO 22301
• [Comprehensive Syllabus] Aligned with the Certified Information System Banker examination, ensuring coverage of every critical module—ranging from technology in banks to legal frameworks, business continuity, and IS audit
• [Practical Approach] Emphasises hands-on learning with practical examples, checklists, 'Check Your Progress' Q&A sections and references to day-to-day operations in modern banking
• [Structured Learning] Organised into modules for clear navigation, enabling readers to systematically progress from foundational elements to advanced auditing and security concepts
• [Foreword by Industry Leaders] Reflects the institute's vision of empowering banking professionals to thrive in a technology-driven environment
• [Future-ready] – Includes discussions on next-generation banking technologies such as AI-driven processes, fintech collaborations, blockchain elements, and how these align with existing regulatory requirements

The coverage of the book is as follows:

• Module I | Technology in Banks
  • Banking Environment & Technology – Evolution of banking from manual ledgers to core banking solutions and omnichannel services
  • Processing Infrastructure – Core components of payment and settlement systems, including NEFT, RTGS, IMPS, UPI, and ECS, and how they revolutionise fund transfers
  • Accounting Information System – Architecture, advantages, and best practices for modern AIS implementation
  • Information Organisation & Management – Importance of MIS, data warehousing, reporting, and analytical processing
  • Risk Associated with Technology – Identifies various risks—cybersecurity, reputational, legal—and discusses security controls and oversight
  • Audit Function & Technology – Lays the groundwork for using technology in auditing processes
• Module II | Technology – System, Development, Process, Implementation
  • Hardware Architecture – Types of computers, components, and modern hardware sizing for banks
  • Software Platforms – Distributed systems, DBMS fundamentals, SQL, data administration, and security controls
  • System Development Life Cycle – Phases of SDLC and software engineering basics, critical for developing robust banking applications
  • Computer Networks – Explores LAN, WAN, OSI models, SD-WAN, and the latest networking technologies
• Module III | Business Continuity
  • Business Continuity & Disaster Recovery Planning – Strategies for BCP and DRP, regulatory guidelines, risk analysis, and practical aspects in banking
• Module IV | Overview of Legal Framework
  • Online Transactions – Trends & Legal Implications: E-money, embedded banking solutions, IT Act amendments, governance in financial services
• Module V | Security & Control Standards in Banking
  • Security – Addresses information security needs, threat landscape, risk management processes, and global best practices like OECD Guidelines
  • Control – Focuses on application control frameworks, ISO standards (27001, 22301, 9001), and key risk-based control mechanisms
• Module VI | Securities Policies, Procedure & Controls
  • Development and Review of Security Policies – Policy formulation, key components of security policy, monitoring and compliance
  • Compliance and Incident Management – Ensuring adherence to guidelines, handling security breaches, application controls
  • Network Security – Safeguards, risk mitigation, and continuous improvement strategies for secure network operations
• Module VII | Information Security & IS Audit
  • Information Security – Detailed coverage of policies, standards, procedures, and guidelines, covering password management, data classification, change management, etc.
  • IS Audit – Objectives, risk-based frameworks, IS auditing standards, CAATs, and concluding thoughts on ensuring robust IS governance
• References & Glossary
  • Provides references to IT Acts, standards, and guidelines
  • Comprehensive glossary simplifying key abbreviations and technical terms used throughout the text

The structure of the book is as follows:

• Logical Modules – Seven modules forming a progressive pathway—from foundational banking-technology environments to specialised domains like legal frameworks, security architectures, and audit processes
• Unit-wise Breakdown – Each module is divided into units, offering clear headings and sub-headings for focused learning
• Learning Aids – Each unit includes 'Check Your Progress' sections and answer keys—ideal for self-assessment
• Industry & Case-Based Perspectives – Integrates examples, regulatory norms, and operational nuances, ensuring learners can directly relate to on-the-ground banking scenarios
• Exam-oriented – Reflects the Certified Information System Banker syllabus, helping aspirants systematically track their study progress and grasp exam-critical areas