What is Cloud Computing?

 Cloud Computing: Cloud computing is a model for enabling ubiquitous, convenient,

on-demand network access to a shared pool of configurable computing resources (e.g.,

networks, servers, storage, applications, and services) that can be rapidly provisioned and

released with minimal management effort or service provider interaction. The three main

Cloud Computing models are Infrastructure as a Service (IaaS), Software as a Service

(SaaS), and Platform as a Service (PaaS).

Cloud Backup: Cloud backup is the process of backing up data to a remote cloud-based

server.

Cloud Broker: A third-party entity (individual or institution) that acts like an

intermediary and facilitates the selection of Cloud Computing services on behalf of the

Organization.

Cloud Migration: Cloud migration is the process of transferring all of or a part of an

organization‟s data, applications, and services from on-premise to the cloud or within the

clouds.

Cloud Native: Applications developed specifically for cloud platforms.

Cloud Service Provider (CSP): A Cloud Service Provider (CSP) is a company that

offers a Cloud Computing service, such as PaaS, IaaS, or SaaS, to individuals or

businesses.

Cloud Sourcing: Cloud sourcing is the act of migrating all or a part of traditional onpremise IT operations to cloud services or within the cloud based services to meet

business objectives.

Cloud Storage: Cloud storage is a model of computer storage in which data is stored in

facilities (often multiple facilities) managed by a hosting company (Cloud Service

Provider) and is accessed remotely by the user via a network.

Community Cloud: The cloud infrastructure is provisioned for exclusive use by a

specific community of consumers from the Organization that have shared concerns (e.g.,

mission, security requirements, policy, and compliance considerations). It may be

owned, managed, and operated by one or more of the Organization in the community, a

third party, or some combination of them, and it may exist on or off premises.

Container: A container is a virtualization instance in which the kernel of an operating

system allows for multiple isolated user-space instances. Unlike Virtual Machines

(VMs), containers do not need to run a full-blown Operating System (OS) image for each

instance. Instead, containers are able to run separate instances of an application within a

single shared OS.

Content Delivery Network (CDN): A Content Delivery Network (CDN) is a network of

distributed services that deliver content to a user based on the user‟s geographic

proximity to servers. CDNs allow speedy content delivery for websites with high traffic

volume or large geographic reach.

Elasticity: In Cloud Computing, elasticity is a term used to reference the ability of a

system to adapt to changing workload demand by provisioning and de-provisioning

pooled resources so that provisioned resources match current demand.

Extensibility: The ability of a cloud solution to add new runtime and framework support

via community build packs.

External Cloud: A private or public customized cloud solution provided by a third-party

outside the Organizations to meet client requirements.

Host Machine: A host machine is a piece of physical hardware that hosts virtual

machines.

Hybrid Cloud: A hybrid cloud is a Cloud Computing environment that is comprised of

a mix of private cloud, public cloud, and on-premises solutions. In a hybrid cloud,

private and public cloud infrastructures remain distinct from one another but are bound

together by technology that allows data and services portability between them.

Infrastructure as a Service (IaaS): Infrastructure as a Service (IaaS) is a model of

Cloud Computing in which the vendor hosts virtualized computing resources, as well as

network and storage resources, and provides them to the user as a service via the internet.

Internal Cloud: A Cloud Computing service model that is implemented within the

Organizations‟ physical boundaries using dedicated resources and IT infrastructure. It is

basically a private cloud instance meant ideally for in-house use.

Managed Service Provider (MSP): A Managed Services Provider (MSP) is an IT

services provider that provides fully outsourced network, application, and system

services across a network to clients.

Microservices: Microservices or microservice architecture is a way of designing

applications in which complex applications are built out of a suite of small,

independently deployable services. These „microservices‟ run their own processes and

communicate with one another using lightweight mechanisms such as language-agnostic

APIs. Microservices are independently deployable and scalable, and can even be written

in different languages.

Multi-Cloud: A multi-cloud strategy is the concurrent use of separate Cloud Service

Providers for different infrastructure, platform, or software needs. A multi-cloud

approach can help prevent vendor lock-in, and may help an enterprise deal with diverse

workloads as well as partners. However, a multi-cloud approach can complicate many

processes, such as security and governance, and a Cloud management platform is

recommended for this approach.

Multi-Tenancy: Multi-Tenancy is a mode of operation for software in which multiple

instances of one or many applications run in a shared environment. In a Cloud

Computing model, pooled physical and virtual resources are dynamically assigned and

reassigned to tenants according to consumer demand.

On-Demand Self-Service: A Cloud Computing service model by which a customer can

provision additional cloud resources on-demand, without involving the service provider.

Resources are typically provisioned through an online control panel.

On-Premise Technology: On-Premise technology is software or infrastructure that is

run on computers on the premises (in the building) of the person or the Organization

using the software or infrastructure.

Platform as a Service (PaaS): Platform as a Service (PaaS) is a model of Cloud

Computing in which a vendor provides the hardware and software tools necessary to

create, deploy and manage applications at scale to the user via the internet, as a service.

Private Cloud: A private cloud is a cloud infrastructure that is provisioned for use by

single organization comprised of multiple users. A private cloud is managed and

operated by the organization, a third party, or some combination of them, and it can exist

on or off premises.

Public Cloud: A public cloud is a cloud infrastructure that is hosted by cloud services

provider and is made available to the public via internet.

Scalability: Scalability is the ability of a process, system, or framework to handle a growing workload. In other words, a scalable system is adaptable to increasing demands. The ability to scale on demand is one of the biggest advantages of Cloud Computing.

Service Level Agreement (SLA): A service level agreement (SLA) is a contractual

agreement between a customer and a Service Provider which defines the level of service,

availability and performance guaranteed by the Service Provider.

Function as a service (FaaS)/ Serverless Computing: It is a platform for providing

compute, storage, and network resources without the need of managing machines. In this

execution model, the cloud provider runs the server and dynamically allocates

machine resources without worrying about the underlying infrastructure.

Software as a Service (SaaS): Software as a service (SaaS), is a model of Cloud

Computing in which applications (software) are hosted by a vendor and provided to the

user as a service. SaaS applications are licensed on a subscription basis and are made

available to users over a network, typically the internet. Because SaaS applications can

be accessed at any time, at any place, and on any platform, they have become a popular

model for delivery of many business applications.

Vendor Lock-in: Vendor lock-in is when a customer finds themselves “locked-in” or

stuck with a certain Cloud Service Provider (CSP). Vendor lock-in is characterized by

extreme difficulty in moving from one cloud vendor to another, usually due to lack of

standardized protocols, APIs, data structures, and service models.

Vertical Cloud: A vertical cloud is a Cloud Computing solution that is built or

optimized for a specific business vertical such as manufacturing, financial services, or

healthcare.

Virtual Desktop Infrastructure (VDI): Virtual desktop infrastructure (VDI) is a

desktop operating system hosted within a virtual machine.

Virtual Machine (VM): A virtual machine is a software computer that runs an operating

system or application environment, just as physical hardware would. The end-user has

the same experience on a VM as on dedicated hardware.

Virtual Machine Monitor (VMM): The program that is used to manage processor

scheduling and physical memory allocation. It creates virtual machines by partitioning

the actual resources, and interfaces the underlying hardware (virtual operating platform)

to all operating systems (both host and guest).

 

Islamic Banks Liquidity Facility (IBLF)

Islamic Banks Liquidity Facility (IBLF) 

A. Objectives To aid the liquidity management and deepen the financial system, Bangladesh Bank is hereby introducing a new financial instrument, namely, ‘Islamic Banks Liquidity Facility (IBLF)’ for shari’ah-based banking system in Bangladesh. This facility will provide short-term liquidity in the shari’ah-based banks operating in Bangladesh. These guidelines explain operating and settlement procedures for participating in the IBLF. 

B. Eligible Participants 

Shari’ah-based banks maintaining current accounts with Bangladesh Bank (BB) are eligible to participate in the IBLF. 

C. Features of the Islamic Banks Liquidity Facility (IBLF) 

The IBLF is a framework of providing liquidity facility by BB to shari’ah-based banks under the Mudarabah contract where Bangladesh Bank acts as the Investor (Rab al Mal) and banks act as the investment manager (Mudarib) under an agreed Profit Sharing Ratio (PSR). The different features of IBLF are as follows: 

1. Tenor: Tenor of the IBLF will be 14 days. 

2. Profit Rate: 03(three) months MTDR (Mudaraba Term Deposit Receipt) rate of the respective bank. 3. Day Count Convention: Actual/Actual. 

4. Eligible Securities: Unencumbered Bangladesh Govt. Investment Sukuk (BGIS). 

5. Haircut: The applicable haircut of the collateral security for IBLF shall be 5% of its face value. While providing IBLF, the entire security will be treated as a collateralized security even if a hair-cut is imposed on the face value of the eligible security at a prescribed rate. 

6. Profit in interim period: The institutions will receive interim profit (if any) from BGIS used as collateral for IBLF. 

D. Operating Procedures of Islamic Banks Liquidity Facility (IBLF) 

1. The institution may apply for IBLF on every working day through the prescribed form 

2. The applied amount of IBLF should be for a minimum amount of Taka 01(one) crore, or multiples thereof; 

3. The IBLF will be provided according to the decision of Auction Committee of BB; 

4. The decision will be disclosed within the stipulated time set by Bangladesh Bank;  

5. BGIS against which respective institutions intended to avail IBLF shall be marked as a lien in favor of BB during the IBLF period by the Motijheel Office of BB. The lien-marked securities cannot be used or traded during the IBLF period; 

6. The liquidity to be provided by the BB shall be credited to the current account of the respective institution at the close of the same business day; 

7. BB reserves full discretion to accept or reject the application or provide partial investment. 

E. Settlement of IBLF 

1. At maturity, BB will debit the current account of the institutions to recover the investment amount and the profit (as per the provisional profit rate), and release lien-marked securities to the respective institution; 

2. If IBLF matures on a holiday then the tenor of IBLF will be extended by the number of holidays and profit calculation will incorporate this extended period; 

3. At the end of the calendar year, profit will be adjusted according to the actual profit of respective institutions. 

F. Treatment regarding breach of terms of the contract 

1. At maturity, if the institution fails to maintain adequate funds in the current account for the settlement of IBLF, BB shall adjust the investment amount by disposing of lien-marked securities. 

G. BB may change/extend/add or removes policies and procedures related to IBLF as necessary.

Ref: DMD Circular No. 03 date 05/12/2022

What is an escrow account?

What is an escrow account?

An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction. This means a trusted third party such as Escrow.com will secure the funds in a trust account. The funds will be disbursed to the merchant after they have fulfilled the escrow agreement. If the merchant fails to deliver their obligation, then the funds are returned to the buyer.

How does Escrow Work?

Escrow.com reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied.

1. Buyer and Seller agree to terms - Either the Buyer or Seller begins a transaction. After registering at Escrow.com, all parties agree to the terms of the transaction.
2. Buyer pays Escrow.com - The Buyer submits a payment by approved payment method to our secure Escrow Account, Escrow.com verifies the payment, the Seller is notified that funds have been secured 'In Escrow'.
3. Seller ships merchandise to Buyer - Upon payment verification, the Seller is authorised to send the merchandise and submit tracking information. Escrow.com verifies that the Buyer receives the merchandise.
4. Buyer accepts merchandise - The Buyer has a set number of days to inspect the merchandise and the option to accept or reject it. The Buyer accepts the merchandise
5. Escrow.com pays the Seller - Escrow.com releases funds to the Seller from the Escrow Account.

ref. Escrow.com

ICRRS: Internal Credit Risk Rating System

ICRRS( Internal Credit Risk Rating System):

Internal Credit Risk Rating System refers to the system to analyze a borrower's
repayment ability based on information about a customer's financial condition including its
liquidity, cash flow, profitability, debt profile, market indicators, industry and operational
background, management capabilities, and other indicators.

The key uses of this guideline:
a) To provide a granular, objective, transparent, consistent framework for the
measurement and assessment of borrowers’ credit risk.
b) To facilitate portfolio management activities.
c) To assess the quality of individual borrower to help the banks to determine the quality
of the credit portfolio, line of business of the branch or the Bank as a whole.
d) To be used for individual credit selection, credit pricing, and setting credit limits and
terms & conditions.

Rating Scores Aggregate:
Excellent ≥80%
Good ≥70% to <80%
Marginal ≥60% to <70%
Unacceptable <60%


List of Eligible Collateral (as per BRPD circular no 14/2012 on Loan
Classification and Provisioning):
100% of deposit under lien against the loan.
100% of the value of government bond/savings certificate under lien.
100% of the value of guarantee given by the Government or Bangladesh Bank
100% of the market value of gold or gold ornaments pledged with the bank.
50% of the market value of easily marketable commodities kept under control of the
bank.
Maximum 50% of the market value of land and building mortgaged with the bank.
50% of the average market value for the last 06 months or 50% of the face value, whichever
is less, of the shares traded in a stock exchange.


Ref:  GUIDELINES ON INTERNAL CREDIT RISK RATING SYSTEM FOR BANKS

What is Ransomware?

Ransomware is a type of malware that accesses a victim’s files, locks and encrypts them and then demands the victim to pay a ransom to get them back. Ransomware infections threaten computer users with the destruction of data if they don’t pay the money to the crooks that created the infections. Cybercriminals use these attacks to try to get users to click on attachments or links that appear legitimate but actually contain malicious code. Ransomware is like the “digital kidnapping” of valuable data from personal photos and memories to client information, financial records and intellectual property. Any individual or organization could be a potential ransomware target.

Protection against Ransomware:

1. Regularly backup your data to an external device, to the cloud, or both so that data can be available even if Ransomware attack happens.
2. Make sure all of your operating system and anti-virus/anti-malware programs are set to update automatically.
3. Think before you click an unknown link because almost all the Ransomware infection attacking happened by clicking on a link from a bogus email, a hijacked social media account, or another malicious source over the internet.
4. Enable spam email detection to avoid getting unwanted mails containing malicious attachments.
5. Always check who the email sender is. Check digital signature or certificates for any company or be sure the sender is trusted one before clicking any mail attachment.
6. Double-check the content of the message before sending.
7. Keep all machines clean to prevent any kind of cybercrime.
8. Get two-factor authentication system for strong security.
9. Every time you plug any USB or external device, do scan twice.
10. Make better passwords to enhance security of your computer and accounts.
11. When in doubt, throw it out. If any link or mail attachment looks suspicious just ignore it.

What is an Aquifer?

What is an Aquifer?

An aquifer is an underground layer of water-bearing permeable rock, rock fractures or unconsolidated materials (gravel, sand, or silt) from which groundwater can be extracted using a water well. The study of water flow in aquifers and the characterization of aquifers is called hydrogeology.

An aquifer is a body of saturated rock through which water can easily move.

Is an Aquifer an Underground River?

What is a lithium polymer battery?

A lithium polymer battery, or more correctly lithium-ion polymer battery(abbreviated variously as LiPo, LIP, Li-poly and others), is a rechargeable battery oflithium-ion technology using a polymer electrolyte instead of the more common liquid electrolyte.

What is G sensor in Android phones?

An accelerometer is a sensor that measures the amount of acceleration in a device or a project. A G-Sensor measures the amount of tilt in a device like a tablet pc or mobile phone. If you tilt your phone from landscape mode to potrait mode, your screen positions itself accordingly

What is the proximity sensor for?

A proximity sensor is a sensor able to detect the presence of nearby objects without any physical contact. A proximity sensor often emits an electromagnetic field or a beam of electromagnetic radiation (infrared, for instance), and looks for changes in the field or return signal.

What is the use of accelerometer sensor?

An accelerometer is an electromechanical device that will measure acceleration forces. These forces may be static, like the constant force of gravity pulling at your feet, or they could be dynamic - caused by moving or vibrating the accelerometer.

The Android platform provides several sensors that let you monitor the motion of a device. ... The gravity, linear acceleration, rotation vector, significant motion, step counter, and step detector sensors are either hardware-based or software-based. The accelerometer and gyroscope sensors are always hardware-based.

What is OTG on smartphone?

USB On-The-Go, often abbreviated to USB OTG or just OTG, is a specification first used in late 2001 that allows USB devices, such as digital audio players or mobilephones, to act as a host, allowing other USB devices, such as USB flash drives, digital cameras, mice or keyboards, to be attached to them.

What is a Standby Letter of Credit(SBLC)?

What is a Standby Letter of Credit(SBLC)?

A Standby Letter of Credit (SBLC) can be considered as equivalent to a demand guarantee from the point of view of its function and aim. It is payable on first demand against presentation of a declaration from the beneficiary stating that the applicant is in default of his obligations under the underlying transaction.

An SBLC is an independent undertaking on the part of the bank and is separate from the underlying transaction or contract.

Like any other bank guarantee, the Standby Letter of Credit may have multiple purposes:

• Tender SBLC
• Advance payment SBLC
• Performance SBLC
• Retention money SBLC
• Warranty SBLC
• Payment SBLC

What is a Bank Guarantee?

What is a Bank Guarantee?

A bank guarantee may be defined as a written undertaking by which a bank, at the request of its customer (the applicant), irrevocably commits itself to pay a sum of money to a third party (the beneficiary) upon receipt of a complying demand by the beneficiary informing the bank that the applicant failed to fulfill his obligations under the underlying commercial contract. 

As it appears from the definition, the bank does not guarantee the actual fulfillment of the applicant’s obligation under the contract. It only commits itself to pay, in whole or in part, the amount stated in the guarantee.

This means that the bank will not, and is not liable to, deliver the goods or assume any responsibility for carrying out a project.

Parties involve in Bank Guarantee:

An applicant : the party having an obligation under the underlying relationship supported by the guarantee.
A beneficiary : the party in favor of which a guarantee is issued.
A guarantor : the bank issuing the guarantee and committing itself to pay upon receipt of a complying demand for payment.
Counter Guarantee:
A counter guarantor who guarantees the guarantor banks obligation. If so, counter-guarantor ( bank ) issues a counter guarantee in favor of the bank who will commit payment to the beneficiary.

Checklist of Foreign Exchange Transactions

Import:
1. Approval from Head Office(if required)
2. IRC checking/original copy of IRC/genuineness and its validity/checking payment of IRC fees.
3. Putting IRC fees.
4. Entitlement of IRC on IMP
5. Validity of Indent/Proforma Invoice
6. Renewal of the expired indent by the indentor.
7. Indent/Proforma Invoice signed by the Importer and indentor/supplier.
8. Copy of Trade license.
9. Certificate from chamber of commerce and Industries/Trade Association
10. TIN/VAT registration

Banking Notes

General Banking

  Indemnity: Indemnity nj Ggb GK Pzw³ hv‡Z GK c¶ Avi GK c¶‡K ¶wZi nvZ †_‡K i¶vi AsMxKvi K‡i| †PK nvwi‡q †M‡j, bKj wWwW Bm¨y Ki‡j, wnmveavixi g„Z¨ n‡j Indemnity †bqv nq|

  Set off: hw` GKRb MÖvn‡Ki `~ÕwU wnmve _v‡K (GKwU cvIbv wnmve Ges GKwU †`bv wnmve) Z‡e GK wnmve †_‡K UvKv wb‡q Ab¨ wnmve adjust Kivi AwaKvi‡K set off e‡j|

  Contingent liability: ‡hmKj `vq fwel¨‡Z m„wó n‡Z cv‡i ‡m¸‡jv n‡jv Contingent liability (m¤¢ve¨ `vq)| ‡hgb-Gjwm, wejm&, e¨vsK M¨vivw›U|

  Negotiable Instrument: Negotiable Instrument means a Promissory note, Bill of Exchange or cheque payable either to order or to bearer. (N.I Act-1881 Article 13 (1))

Resident and Non-Resident

A resident is a person bank or firm who/which resides in Bangladesh.
A non-resident is a person, bank or firm who/which resides outside Bangladesh. Non-residents include Bangladesh nationals who go out of Bangladesh for any purpose . 
A person is presumed to be ordinarily resident if he maintains a home in Bangladesh or resides in the country for a substantial part of each year or pays income tax as a resident of Bangladesh. 
On the other hand, the fact that a person gives an address in Bangladesh does not necessarily mean that he should be regarded as a resident if he is, in fact, only a temporary visitor and is ordinarily resident elsewhere.
Chapter-1, Section-7 (i)

Deposit Insurance Trust Fund (DITF)

What is meant by Deposit Insurance Trust Fund (DITF)?
In accordance with the provision of the "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)", premium collected from insured banks and all other receivables are deposited into an account called Deposit Insurance Trust Fund (DITF).

Who is the Chairman of the Trustee Board?
The Governor of Bangladesh Bank who is the Chairman of the Board of Directors of Bangladesh Bank is also the Chairman of the Trustee Board.

How many members are in the Trustee Board?
All the members of the Board of Directors of Bangladesh Bank are the members of the Trustee Board. At present 9 (nine) members are in the trustee Board.

What is DIS?

What is DIS?
Deposit Insurance Systems is an institutional initiative to protect depositors against the loss of their deposits in the event that a scheduled bank goes into liquidation.

What are the objectives of Deposit Insurance Systems (DIS)?
The important objectives of DIS are:
Protect small depositors
Enhance public confidence
Enhance stability of the financial system
Increase savings and encourage economic growth
Enhancing more propitious bank services

When DIS was introduced in Bangladesh?
In Bangladesh Deposit Insurance was introduced in August, 1984.

Foreign Exchange Market

Spot Market: 
Where exchange of one currency for another currency being happened on the spot or within two Banking days.
Forward Market:
Where actual transaction or delivery of Foreign Currency to be happened at a future date of period as per today's agreement.
Future Market:
Where two parties agreed to buy or sell a fixed quantity of particular commodity, currency or security for delivery at a fixed date in the future at a fixed price. It obliged a definite purchase or sell and not an option to buy or sell. In these transactions small security deposit is required.
Option Market:
An option is a contract specifying the right to buy or sell (by the buyer of the contract) a standard amount o foreign exchange with in a specific date at a certain price. A call option confers the right to buy and a put option confers the right to sell. Buyer of the contract has the right not to buy or sell. If he lapses the deal he will loss only option money.

EXP Form

EXP Form means Export Form which is used to export any commodity to abroad. It is a prescribed form by Bangladesh Bank in Appendix 5/19 of Guidelines For Foreign Exchange Transations.

Branch (AD) will certify EXP Form only after confirming the following:
i. Arrangements have been made for realization of Export proceeds.
ii. Bonafide importer/consignee abroad
iii. EXP has been signed by the Exporter
iv. Arrangement has been made for receipt by Authorized Dealer of documents of title to goods.

Contents of EXP:
EXP No., Exporters registration no., goods details, shipment details, signature of exporter, certification of AD etc.