Professional Documents
Culture Documents
Banking, SBI Bank, SBI Banking, SBI Card, Business Card, SBI Credit
India
INTRODUCTION TO BANKING
Banking regulation Act, 1949, defines banking as accepting for the purpose of
otherwise.
To change cash for bank deposits and bank deposits for cash.
secondary markets.
securities.
The buying and selling of foreign exchange including foreign bank notes.
competitors. Until the last decade, banks were regarded largely as institutions
rather akin to public utilities. The market for banking services were
oligopolies and Centralized while the market place was regulated and banks
were expected to receive assured spreads over their cost of funds. This
meaning that banks accepted deposits at 3%, lent at 6%, and went home at 3
p.m. to play golf, was the result of the sheltered markets and administrated
prices for banking products. Existence of entry barriers for new banks meant
cartel, even in areas where the freedom to price their products existed.
The market place began to change for banks in India as a result of reforms of
only from within the banking system but also from non-banking institutions.
granted to enter into new turf’s and greater overlap of functions between
banks and non-banks have forced banks to get out of their cozy little world
virtual collapse of the national borders for trade and capital flows.
Greater coordination between monetary, fiscal and exchanged rate policies for
Today, Banks customers are better informed, more sophisticated and discerning.
They also have a wide choice to choose from various banks and non-bank
intermediaries. Their expectations are soaring. This is particularly true for banks
This is changing profile of customer’s call for a shift from product-based approach
customer satisfaction.
In the next millenium banks will have to be more and more cautions about customer
scenario. As banks in India prepare themselves for the millenium these are the shifts
in the paradigm they are likely to experience. The 21st century may see the dawn of
“DARWINIAN BANKING”. Only the banks could fulfill the demands of markets
SBI Segment :
Preamble :
industrial units and tiny units, professionals and self employed persons etc.,
himself manages many of the units. Very often, these entrepreneurs complain
difficult to cope with the demands for audited balance sheet and other
statements sought by the bank from time to time for availing credit facilities.
With a view to providing hassle free financial supports to the above categories
friendly credit product namely small business credit card scheme is designed.
Purpose :
To meet the credit requirements of small business units, industrial unit, retail
Eligibility :
B. Units who do not enjoy credit limit with us/other banks at present with
Assessment :
For small business, retail trader etc. 20% of the annual turnover
In respect of parties with good track record, where sales tax returns are not
available, the credit limits may be decided taking into consideration the actual
turnover in the accounts during the last two years.
For small scale industrial units, tiny sector units the assessment norms
continue.
Validity :
Credit card limit will be valid for a period of three years, subject to
major portion of the sales turnover should have been routed through
Repayment :
every year provided the credit summations in the account is not less
installments.
Interest rate :
As per extent instructions issued from time to time relating the market
segment.
Refinance :
No refinance is to be claim from SIDBI
Security :
equipment.
Collateral :
User SBF :
granted.
Margins :
Documentation :
Documents as per extant instructions.
Methodology :
and other statements are done away with. The credit limit will be worked as
detail above.
Card No.
Name
Account No.
Tel. No.
Limit Rs.
Date of issue
Valid upto
The borrower would be issued a photo card indicating sanctioned limit and
validity of the limit (sample card)
Insurance :
Fixed assets/stock pledged/hypothecated to the bank be fully
Bank may waive insurance of assets for equipment against the fire
All eligible laon accounts sanctioned for small scale industries (other than
the scheme has been introduce in five circles on pilot basis viz. New
Operation :
separate ledger.
card account.
Pass book should be issued for mall business credit card holders.
made and recorded in the opinion report and singed by the field
the issue of credit card. This condition may be waived for such of those
Inspections :
Sanction :
information.
Control return after sanction may be sent to next higher authority for
approval .
Scoring Model :
Loan would be sanctioned up to Rs. 5,00,000/- based on the simplified scoring
model as given in annexure- II. Those who are scoring less than 60% would
Rationale :
as it helps him to withdraw cash from banks even when they are
closed. This can be done by inserting the card in the ATM installed
Signature Panel.
Magnetic Stripe
In case of State Bank Cash Plus Card, there is no expiry period but for
the old card, the date after which your card needs to be renewed is the
Signature panel on which you must sign as soon as you’re your card. It
We uses our State Bank Cash Plus Card for cash withdrawal from
ATMs.
merchant establishments.
Significance of the Study
This study entitled “comparative study of various credit schemes of SBI V/s
other banks” will be helpful for bankers to maintain customers service policy,
for customers while deciding their financing needs and also helpful for other
banking credit facilities available. With an SBI card customers can enjoy
This study would help us to know about the problems that are faced by the
consumers during transactions. It would also reveal the problems that are
being faced by the bank employees while dealing with customers and would
It is very essential to know whether the study has already been conducted
before. If so, how and to what extent ? And because of this scholar has to go
through all the existing literature related to the study. SBI Card is a new
back, very limited studies have been conducted on the subject. Due to the
time restrictions scholar could seek advice from only the limited literature,
As the concept is completely under the control of various banks and RBI. So
Conceptualization
As the concept includes two terms i.e. cash credit or working capital loans and terms
loans. Therefore both the terms are taken into consideration in the proposed study.
Due to the privatization of banking sector many big private players entered in this
sector giving a tough competition to the existing players. So, to face this stiff
competition all the public sector banks have to review their functioning. These
The concept of SBI card is quite new to the people of Bhiwani. Question crops in
mind what is a SBI card, What is its shape and size, what is its function. A SBI card
is nothing but a identity card containing card holder’s photographs with signature,
card no. Name, A/c No. limit, validity period, branch code with signature of Branch
Manager.