Computer and Information Technology

Database Management System (DBMS) is a software system that stores, organizes, manages and controls access to data in a database. It acts as an interface between the user/application programs and the physical database. Examples: MySQL, Oracle, Microsoft SQL Server, PostgreSQL, MS Access.

Advantages of DBMS over a traditional filing system:

1. Controlled redundancy — In a filing system the same data is repeated in many files, wasting storage. A DBMS stores data centrally, so duplication is minimized.

2. Data consistency — Because data is stored once and updated in one place, all users see the same correct value. In a filing system, an update in one file leaves other copies outdated, causing inconsistency.

3. Data sharing — Many users and applications can use the same database simultaneously. Files are usually kept by one department and are hard to share.

4. Data integrity — The DBMS enforces rules (constraints, keys, data types) so that only valid and accurate data enters the database. A filing system has no such automatic checks.

5. Data security — The DBMS provides user accounts, passwords and privileges, so each user can access only the authorized data. Files can be read or altered by anyone who can open them.

6. Backup and recovery — The DBMS has built-in facilities for automatic backup and recovery after failure. In a filing system, recovery depends on manual copies.

7. Concurrent access control — Many users can work at the same time without one user's change destroying another's. The DBMS handles locking and transactions.

8. Data independence — The logical view of data can be changed without changing the application programs. In a filing system, changing the file layout means rewriting every program.

9. Efficient query and reporting — Data can be searched, sorted and summarized quickly using SQL, without writing separate programs for each report.

10. Reduced development and maintenance cost — Standard tools and a central data store mean less programming effort and easier maintenance than many separate files.

Intranet, Internet and Extranet

In short: The Internet is a public network for everyone; an intranet is a private network for internal members only; an extranet is a controlled extension of an intranet that allows selected outsiders to connect.

Management Information System (MIS)

Management Information System (MIS) is a computer-based system that collects, processes, stores and distributes information to managers in the right form and at the right time so that they can take effective decisions. It is a combination of people, procedures, hardware, software, data and communication networks working together to convert raw data into useful management information. In simple words, MIS supplies regular, summarized reports (daily, weekly, monthly) to different levels of management for planning, controlling and decision-making.

Necessity of MIS in an organization

1. Decision-making: MIS provides timely, accurate and relevant reports (sales reports, cost reports, inventory reports) which help managers at all levels take correct and quick decisions.
2. Planning and control: It compares actual performance with planned targets and points out deviations, so that corrective action can be taken in time.
3. Coordination among departments: It links production, marketing, finance and personnel departments by a common flow of information, which avoids duplication of work and brings unity of effort.
4. Efficient handling of large data: In a big organization thousands of records (employees, customers, stock, accounts) are handled daily; MIS processes this data speedily and accurately, which is not possible manually.
5. Better customer service and competitiveness: Quick information about orders, stock and customer needs helps the organization serve customers better and compete in the market.
6. Reduction of cost and time: Automation of routine reporting saves clerical labour, paper work and time, and reduces errors.
7. Support to top management: It supplies summarized information for long-term strategy, forecasting and policy formulation.

Conclusion: Thus MIS is not merely a computer system but a management tool. In today's complex and competitive environment, no organization can run efficiently without a proper MIS, because correct information at the correct time is the basis of all good management decisions.

Input–Processing–Output (IPO) Cycle

Every computer system works on the IPO cycle — data is fed in, worked upon, and the result is given out. It is also called the data processing cycle.

1. Input Raw data and instructions are entered into the computer through input devices such as keyboard, mouse, scanner, microphone or touch screen. The data is converted into binary form (0 and 1) that the computer can understand. Example: typing the numbers 5 and 3 on the keyboard.

2. Processing The CPU (Control Unit + ALU) performs arithmetic and logical operations on the input data according to the given instructions. The Control Unit fetches and decodes instructions, the ALU calculates, and the result is held in memory/registers. Example: the ALU adds 5 + 3 = 8.

3. Output The processed result is presented to the user in a readable form through output devices such as monitor, printer or speaker. Example: the monitor displays 8.

4. Storage (supporting step) Data and results may be saved in primary memory (RAM) or secondary storage (hard disk, pen drive) for future use.

Diagram

        INPUT                 PROCESSING                OUTPUT
   ┌──────────────┐      ┌────────────────────┐     ┌──────────────┐
   │  Keyboard    │      │        CPU         │     │   Monitor    │
   │  Mouse       │─────▶│  ┌──────┐ ┌─────┐  │────▶│   Printer    │
   │  Scanner     │      │  │  CU  │ │ ALU │  │     │   Speaker    │
   └──────────────┘      │  └──────┘ └─────┘  │     └──────────────┘
                         └────────────────────┘
                                  │  ▲
                                  ▼  │
                         ┌────────────────────┐
                         │  Memory / Storage  │
                         │   (RAM, HDD)       │
                         └────────────────────┘

Example (complete cycle)

Conclusion: The IPO cycle is the basic working principle of every computer — Input → Process → Output, with storage supporting the whole cycle.

1. Difference between System Software and Application Software [2]

2. Areas where Artificial Intelligence can be used in Financial Institutions [3]

1. Fraud detection and prevention — AI monitors transactions in real time and flags unusual patterns (sudden large withdrawals, repeated transactions from different locations), helping banks stop fraud early.
2. Credit scoring and loan approval — Machine learning models analyse income, repayment history and spending behaviour to assess creditworthiness quickly and reduce the risk of default.
3. Chatbots and customer service — AI-based virtual assistants answer customer queries about balance, statements and loan details 24 hours a day, reducing the load on staff.
4. Algorithmic trading and investment advice — AI analyses market data and trends to support trading decisions and give personalised investment (robo-advisory) suggestions.
5. Risk management and AML/KYC — AI screens transactions and customer profiles against watch lists to detect money laundering and verify identity efficiently.
6. Credit card and loan collection — AI predicts which customers are likely to default and helps design timely reminders and repayment plans.

(a) Pumori Plus

Agriculture Development Bank Limited (ADBL) runs its core banking operations on Pumori Plus, the CBS developed by Pumori Solutions. Flexcube is used by banks such as Rastriya Banijya Bank and NMB Bank, while Temenos T24 is used by other commercial banks — so options (b) and (d) do not match ADBL.

(a) System Software

System software (operating system, device drivers, etc.) is designed to control and manage the operations of a computer — it runs the hardware, manages memory and files, and provides the platform on which application software runs. Application and utility software, by contrast, perform specific user-oriented tasks.

(c) MS Word

MS Word is application software used for word processing, while Linux, Android and Windows are operating systems.

(d) Portable Document Format

PDF stands for Portable Document Format — a file format developed by Adobe that preserves a document's layout, fonts and images the same way on any device or operating system.

(b) A private network accessible only to authorized users within an organization

An intranet is a restricted network built on internet technology (TCP/IP, web servers) but confined to one organization, so only its employees or authorized users can access it. Option (a) describes the internet, (c) describes a WAN, and (d) describes a wireless LAN.

(d) VPN

A VPN (Virtual Private Network) creates an encrypted tunnel over the internet, so data sent during online banking cannot be read or altered by third parties. IoT, Operating System and Kernel are not security technologies for securing online transactions.