Computer and Information Technology

(a) What is internet? [2]

The internet is a global network of interconnected computer networks that communicate using the TCP/IP protocol. It links millions of computers, servers, and devices worldwide, allowing users to share information, communicate, and access services such as email, websites, social media, and online banking. No single organization owns the internet; it is a decentralized network that works through ISPs (Internet Service Providers) and shared standards.

(b) Differences between intranet and internet [3]

In short, the internet is a public global network, while an intranet is a private network built on the same technology but restricted to an organization's internal users.

Necessities of Microsoft Word and Microsoft Excel in banking operations in Nepal

1. Documentation and correspondence — Word is used to prepare letters, circulars, notices, memos, loan agreements, board minutes and customer communications in a standard, printable format.
2. Reporting to regulators — Banks must submit periodic reports to Nepal Rastra Bank (NRB), the Office of the Auditor General and other bodies; Word and Excel make drafting, formatting and tabulating these reports easy.
3. Data handling and analysis — Excel is used for ledgers, interest calculation, loan and deposit schedules, budgeting, reconciliation and preparation of financial statements, using formulas and functions that reduce manual error.
4. Record keeping and reporting — Daily transaction summaries, branch-wise performance reports, staff attendance and salary sheets are maintained in Excel, giving quick retrieval and easy updating.
5. Decision support — Charts, pivot tables and what-if analysis in Excel help management analyse profitability, non-performing loans and cash flow for planning and control.
6. Cost and time saving — Both are readily available, low-cost, user-friendly packages; they cut paperwork, speed up service delivery and improve accuracy compared to manual registers.
7. Compliance and audit trail — Standard templates ensure uniform documentation across branches, which helps internal and statutory auditors verify records.

Challenges

1. Data security and confidentiality — Files can be copied, leaked or lost; weak passwords and shared computers risk breach of customer privacy and banking secrecy.
2. Lack of validation and control — Excel entries are manually typed, so errors in formulas or data can go undetected and distort interest, balance or report figures.
3. Limited capacity and integration — Excel cannot handle very large volumes of transactions and does not integrate directly with the bank's core banking system (CBS); data must be re-entered, causing duplication.
4. Version and compatibility problems — Different versions of Word/Excel across branches create formatting and file-opening problems.
5. Dependence on trained staff — Staff with weak computer skills cannot use advanced functions, so training cost and time are needed.
6. Fraud risk — Cells and formulas can be altered without leaving a clear trail, making misuse possible.
7. Lack of real-time updating — Files are updated manually and separately, so figures may not reflect the latest position, unlike a proper banking software.

Conclusion — Word and Excel are indispensable day-to-day tools for documentation and data work in Nepali banks, but they must be supported by proper access control, staff training and integration with the core banking system to reduce their risks.