A

TPP Report
ON

BANKING OPERATIONS OF THE KCCB LTD.

For the training undergone at
THE KURUKSHETRA CENTRAL CO-OP. BANK LTD., KURUKSHETRA
Under the Supervision of

MR. SHISH PAL (MANAGER)

FOR THE PARTIAL FULFILLMENT OF THE AWARD OF DEGREE OF BBA

SUBJECT : TPP (IMS- 706)

Submitted to: Director

Submitted by:
Naresh Mehra
MBA 7th Sem.
Roll. No.:- 40
KUK Regn. No. 10-UD-708

INSTITUTE OF MANAGEMENT STUDIES

KURUKSHETRA UNIVERSITY KURUKSHETRA
(SEPTEMBER 2013)
DECLARATION

I Naresh Mehra, Roll No. 40, Class MBA5yr (7th Semester) of KURUKSHETRA
UNIVERSITY KURUKSHETRA OF INSTITUTE OF MANAGEMANT STUDIES, hereby
declare that the summer TRAINING PROFILE PRESENATATION entitled THE
KURUKSHETRA CENTERAL COOPERATIVE BANK LTD. 3RD GATE BRANCH is an
original work done by me and the information provided in the study is authentic to the best of my
knowledge and belief.
This study has not been submitted to any other institute or university for the award of any degree
or for any purpose.

NARESH MEHRA
ROLL NO.40
7TH SEM.

ACKNOWLEDGEMENT
Thanks giving may be a matter of mere formality in the case of others but with me it is an
expression of heartfelt gratitude to my respected supervisors of Central Co-operative Bank,
Kurukshetra 3rd gate whose scholarly guidance, valuable suggestion, encouraging attitude and
keen interest throughout the entire course of this study enabled me to accomplish this work. Her
untiring assiduity and simulating response have been a great source of inspiration in the
completion of this work. It has been my proud privilege to work under his guidance.
I consider it my duty to express my sincere regards and deep same of gratitude to my friends for
their constants inspiration and help during my studies. It would not have been possible for me to
complete work without their inspiration.
I am profoundly indebted to my parents, for helping and encouraging me to complete my task.
The staff of The Kurukshetra Central Co-op. Bank Ltd.3rd gate in general very kind to me in
co-operating me providing necessary information required in completing my project.

NARESH MEHRA
ROLL NO. 40

CONTENTS
Chapter
No.

Title of the chapter

Page no.

1.

Banking Sector
(A)
Introduction

6-18

2.
3.

(a)

Meaning & Defination

(b)

Types of Bank

(c)

Features of Bank

(B)

Banking Structure in India

(C)
(a)

Co-op. Banking in India

Introduction

(b)

History

(c)

Types

(d)

Functions

The Kurukshetra Central Co-operative Bank Ltd.

(A)
Introduction
(B)
Branches of Banks
Analysis and Discussion
(A)
Accounts Types in Banks & Rules
a) Saving Account of Bank
i. Meaning
ii. Feature
iii. Advantages
iv. Rules

b) Current Account
i.
Meaning
ii. Features
iii.
Advantages
c) Recurring Deposit account
i.
Meaning
ii. Features
iii.
Advantages
d) Fixed deposit account
i.
Meaning
4

19-23
24-46

(B)
(C)
(D)

(D)

4.

5.

ii. Features
iii.
Advantages
Difference between RD and FD
Account opening
Cheques
i.
Meaning
ii.
Definition
iii.
Types of cheques
iv.
Features of cheques
Loan
i.

KCC loan

ii.

Objective

iii.

Eligibility

iv.

Issue of card

v.

Technical facility

vi.

Types of facilities

vii.
Security
viii.
Rate of interest
ix.
MTPL(Medium Term Personal Loan)
SWOT Analysis, Suggestions and Conclusion
(A)
SWOT Analysis
(B)
Suggestions
(C)
Conclusion
Learning from the Training
References

47

48-49
51

CHAPTER 1
BANKING SECTOR

(A) Introduction
(a)Meaning and definition
Bank is an institution that deals in money and its substitutes and provides
crucial financial services. The principal types of banking in the modern
industrial world are commercial banking & central banking.
Banking Means Accepting Deposits for the purpose of lending or
Investment of deposits of money from the public, repayable on demand or
otherwise

and

withdraw

by

cheque,

draft

or

otherwise

(Banking

Companies (Regulation) Act, 1949).

The concise oxford dictionary has defined a bank as Establishment for
custody of money which it pays out on customers order." In fact this is the
function which the bank performed when banking originated.
"By banking in the most general sense, is meant the business of receiving,
conserving & utilizing the funds of community or of any special section of
it."
--- By H. Wills & J. Bogan
"A banker of bank is a person, a firm, or a company having a place of
business where credits are opened by deposits or collection of money or
currency or where money is advanced and waned.
--- By Findlay Sheras.
6

(B) Types of banks

Type 1. Saving Banks
Saving banks are established to create saving habit among the people. These banks are helpful
for salaried people and low income groups. The deposits collected from customers are invested
in bonds, securities, etc. At present most of the commercial banks carry the functions of savings
banks. Postal department also performs the functions of saving bank.
Type 2. Commercial Banks
Commercial banks are established with an objective to help businessmen. These banks collect
money from general public and give short-term loans to businessmen by way of cash credits,
overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of
exchange, and remittance money from one place to another place.
In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial
banks were nationalized by Government of India. The policies regarding deposits, loans, rate of
interest, etc. of these banks are controlled by the Central Bank.
Type 3. Industrial Banks / Development Banks
Industrial / Development banks collect cash by issuing shares & debentures and providing longterm loans to industries. The main objective of these banks is to provide long-term loans for
expansion and modernization of industries.
In India such banks are established on a large scale after independence. They are Industrial
Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India
(ICICI) and Industrial Development Bank of India (IDBI).

Type 4. Land Mortgage / Land Development Banks

Land Mortgage or Land Development banks are also known as Agricultural Banks because these
are formed to finance agricultural sector. They also help in land development.
In India, Government has come forward to assist these banks. The Government has guaranteed
the debentures issued by such banks. There is a great risk involved in the financing of agriculture
and generally commercial banks do not take much interest in financing agricultural sector.
Type 5. Indigenous Banks
Indigenous banks mean Money Lenders and Sahukars. They collect deposits from general public
and grant loans to the needy persons out of their own funds as well as from deposits. These
indigenous banks are popular in villages and small towns. They perform combined functions of
trading and banking activities. Certain well-known Indian communities like Marwaris and
Multan even today run specialized indigenous banks.
Type 6. Central / Federal / National Bank
Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal
Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks.
They provide specialized functions i.e. issue of paper currency, working as bankers of
government, supervising and controlling foreign exchange. A central bank is a non-profit making
institution. It does not deal with the public but it deals with other banks. The principal
responsibility of Central Bank is thorough control on currency of a country.
Type 7. Co-operative Banks
In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They
generally give credit facilities to small farmers, salaried employees, small-scale industries, etc.
Co-operative Banks are available in rural as well as in urban areas. The functions of these banks
are just similar to commercial banks.

Type 8. Exchange Banks

Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working
in India. These banks are mainly concerned with financing foreign trade.

Following are the various functions of Exchange Banks:

Remitting money from one country to another country,

Discounting of foreign bills,

Buying and Selling Gold and Silver, and

Helping Import and Export Trade.

Type 9. Consumers Banks

Consumers bank is a new addition to the existing type of banks. Such banks are usually found
only in advanced countries like U.S.A. and Germany. The main objective of this bank is to give
loans to consumers for purchase of the durables like Motor car, television set, washing machine,
furniture, etc. The consumers have to repay the loans in easy installments.
(C) Features of bank
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a company which is in
the business of banking.
3. Acceptance of Deposit

A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It
also acts as a custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.
5. Payment and Withdrawal
A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts,
etc.
6. Agency and Utility Services
A bank provides various banking facilities to its customers. They include general utility services
and agency services.
7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
8. Ever increasing Functions
Banking is an evolutionary concept. There is continuous expansion and diversification as regards
the functions, services and activities of a bank.
9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money
from those who have surplus money and give the same to those who are in need of money.
10. Banking Business A bank's main activity should be to do business of banking which should
not be subsidiary to any other business.

11. Name Identity

A bank should always add the word "bank" to its name to enable people to know that it is a bank
and that it is dealing in money.
(D) The Banking Structure in India

10

The commercial banking structure in India consists of scheduled commercial banks and
unscheduled banks. Scheduled banks constitute those banks that are included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934.
As on June 30, 1999, there were 300 scheduled banks in India having a total network of 64,918
branches. The scheduled commercial banks in India comprise State Bank of India and its
associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), cooperative banks, and regional rural banks. Before the nationalization of Indian banks, the State
Bank of India (SBI) was the only nationalized bank, which was nationalized on July 1, 1955,
under the SBI Act of 1955. The nationalization of seven State Bank subsidiaries took place in
1959.
After the nationalization of banks in India, the branches of the public sector banks rose to
approximately 800 percent in deposits and advances took a huge jump by 11,000 percent.
Nationalization Process
1955: Nationalization of State Bank of India
1959: Nationalization of SBI subsidiaries
1969: Nationalization of 14 major banks
1980: Nationalization of seven banks with deposits over Rs 200 crore
Banks in India
In India, banks are segregated in different groups. Each group has its own benefits and
limitations in operations. Each has its own dedicated target market. A few of them work in the
rural sector only while others in both rural as well as urban. Many banks are catering in cities
only. Some banks are of Indian origin and some are foreign.

COOPERATIVE BANKING IN INDIA

11

(A)

Introduction of co-operative banks

A co-operative bank is a financial entity which belongs to its members, who are

at the same time the owners and the customers of their bank. Co-operative banks are often
created by persons belonging to the same local or professional community or sharing a common
interest. Co-operative banks generally provide their members with a wide range of banking and
financial services (loans, deposits, banking accounts etc.). Co-operative banks differ from
stockholder banks by their organization, their goals, their values and their governance. In most
countries, they are supervised and controlled by banking authorities and have to respect
prudential banking regulations, which put them at a level playing field

with stockholder

banks. Depending on countries, this control and supervision can be implemented directly by
state entities or delegated to a co-operative federation or central body.
Co-operative banking is retail and commercial banking organized on a co-operative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking, includes retail banking, as carried out by credit unions, mutual savings and
loan associations, building societies and co-operatives, as well as commercial banking services
provided by manual organizations (such as co-operative federations) to co-operative businesses.
The structure of commercial banking is of branch-banking type; while the co-operative banking
structure is a three tier federal one.

A State Co-operative Bank works at the apex level (i.e. works at state level).

The Central Co-operative Bank works at the Intermediate Level. (i.e. District Cooperative Banks ltd. works at district level)

Primary co-operative credit societies at base level (At village level)

Even if co-operative banks organizational rules can vary according to their respective national
legislations, co-operative banks share common features as follows:
Customer-owned entities: In a co-operative bank, the needs of the customers meet the needs of
the owners, as co-operative bank members are both. As a consequence, the first aim of a cooperative bank is not to maximize profit but to provide the best possible products and services to
12

its members. Some co-operative banks only operate with their members but most of them also
admit non-member clients to benefit from their banking and financial services.
Democratic member control: Co-operative banks are owned and controlled by their members,
who democratically elect the board of directors. Members usually have equal voting rights,
according to the co-operative principle of one person, one vote.
Profit allocation: In a co-operative bank, a significant part of the yearly profit, benefits or surplus
is usually allocated to constitute reserves. A part of this profit can also be distributed to the
co-operative members, with legal or statutory limitations in most cases. Profit is usually
allocated to members either through a patronage dividend, which is related to the use of the cooperatives products and services by each member, or through an interest or a dividend, which is
related to the number of shares subscribed by each member.
Co-operative banks are deeply rooted inside local areas and communities. They are involved in
local development and contribute to the sustainable development of their communities, as their
members

and

management

board

usually

belong

to

the communities in which they

exercise their activities. By increasing banking access in areas or markets where other banks are
less present, farmers in rural areas, middle or low income households in urban areas - cooperative banks reduce banking exclusion and foster the economic ability of millions of people.
They play an influential role on the economic growth in the countries in which they work in and
increase the efficiency of the international financial system. Their specific form of enterprise,
relying on the abovementioned principles of organization, has proven successful both in developed and
developing countries.

(B)History of Co-operative Banks in India

For the co-operative banks in India, co-operatives are organized groups of people and jointly
managed and democratically controlled enterprises. They exist to serve their members and

13

depositors and produce better benefits and services for them. Professionalism in co-operative
banks reflects the co-existence of high level of skills and standards in performing, duties
entrusted to an individual. Co-operative bank needs current and future development in
information technology. It is indeed necessary for co- operative banks to devote adequate
attention for maximizing their returns on every unit of resources through effective services. Cooperative banks have completed 100 years of existence in India. They play a very important role
in the financial system. The co- operative banks in India form an integral part of our money
market today. Therefore, a brief resume of their development should be taken into account. The
history of co- operative banks goes back to the year 1904. In 1904, the co-operative credit
society act was enacted to encourage co-operative movement in India. But the development of
co- operative banks from 1904 to 1951 was the most disappointing one.
The first phase of co-operative bank development was the formation and regulation of cooperative society. The constitutional reforms which led to the passing of the Government of India
Act in 1919 transferred the subject of Cooperation from Government of India to the Provincial
Governments. The Government of Bombay passed the first State Co- operative

Societies Act

in 1925 which not only gave the movement, its size and shape but was a pace setter of cooperative activities and stressed the basic concept of thrift, self help and mutual aid. This
marked the beginning of the second phase in the history of Co-operative Credit Institutions.
There was the general realization that urban banks have an important role to play in economic
construction. This was asserted by a host of committees. The Indian Central
Banking Enquiry Committee (1931) felt that urban banks have a duty to help the small business
and middle class people. The Mehta-Bhansali Committee (1939) recommended that those
societies which had fulfilled the criteria of banking should be allowed to work as banks and
recommended an Association for these banks. The Co-operative Planning Committee (1946)
went on record to say that urban banks have been the best agencies for small people in whom
Joint stock banks are not generally interested. The Rural Banking Enquiry Committee (1950),
impressed by the low cost of establishment and operations recommended the establishment of
such banks even in places smaller than taluka towns. The real development of co-operative banks
took place only after the recommendations of All India Rural Credit Survey Committee
(AIRCSC), which were made with the view to fasten the growth of co-operative banks.
14

The co-operative banks are expected to perform some duties, namely, extend all types of credit
facilities to customers in cash and kind, advance consumption loans, extend banking
facilities in rural areas, mobilize deposits, supervise the use of loans etc. The needs of cooperative bank are different. They have faced a lot of problems, which has affected

the

development of co-operative banks. Therefore it was necessary to study this matter.

The first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The
Report published in 1961 acknowledged the widespread and financially sound framework
of urban co-operative banks; emphasized the need to establish primary urban co-operative banks
in new centers and suggested that State Governments lend active support to their development.
In 1963, Verde Committee recommended that such banks should be organized at all Urban
Centers with a population of 1 lakh or more and not by any single community or caste. The
committee introduced the concept of minimum capital requirement and the criteria of population
for defining the urban centre where UCBs were incorporated.

(C)Types of Co-operative Banks

The co-operative banks are small-sized units which operate both in urban and non-urban centers.
They finance small borrowers in industrial and trade sectors besides professional and salary
classes. Regulated by the Reserve Bank of India, they are governed by the Banking Regulations
Act 1949 and banking laws (co-operative societies) act, 1965. The co-operative banking structure
in India is divided into following 5 components:

1. Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers and non-borrowers

residing in a particular locality. The funds of the society are derived from the share
capital and deposits of members and loans from central co-operative banks. The
borrowing powers of the members as well as of the society are fixed. The loans are given
to members for the purchase of cattle, fodder, fertilizers, pesticides, etc.
15

2. Central co-operative banks

These are the federations of primary credit societies in a district and are of two typesthose having a membership of primary societies only and those having a membership of
societies as well as individuals. The funds of the bank consist of share capital, deposits,
loans and overdrafts from state co-operative banks and joint stocks. These banks provide
finance to member societies within the limits of the borrowing capacity of societies. They
also conduct all the business of a joint stock bank.
3. State co-operative banks

The state co-operative bank is a federation of central co-operative bank and acts as a
watchdog of the co-operative banking structure in the state. Its funds are obtained from
share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state cooperative banks lend money to central co-operative banks and primary societies and not
directly to the farmers.
4. Land development banks

The Land development banks are organized in 3 tiers namely; state, central, and primary
level and they meet the long term credit requirements of the farmers for developmental
purposes. The state land development banks oversee, the primary land development
banks situated in the districts and tehsil areas in the state. They are governed both by the
state government and Reserve Bank of India. Recently, the supervision of land
development banks has been assumed by National Bank for Agriculture and Rural
development (NABARD). The sources of funds for these banks are the debentures
Subscribed by both central and state government. These banks do not accept deposits
from the general public.
5. Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to
primary co-operative banks located in urban and semi-urban areas. These banks, till 1996
were allowed to lend money only for non-agricultural purposes. This distinction does not
hold today. These banks were traditionally centered on communities, localities, work
place groups. They essentially lend to small borrowers and businesses. Today, their scope
of operations has widened considerably.

16

The origins of the urban co-operative banking movement in India can be traced to the
close of nineteenth century. Inspired by the success of the experiments related to the cooperative movement in Britain and the co-operative credit movement in Germany, such
societies were set up in India. Co-operative societies are based on the principles of
cooperation, mutual help, democratic decision making, and open membership. Cooperatives represented a new and alternative approach to organization as against
proprietary firms, partnership firms, and joint stock companies which represent the
dominant form of commercial organization. They mainly rely upon deposits from
members and non-members and in case of need, they get finance from either the district
central co-operative bank to which they are affiliated or from the apex co-operative bank
if they work in big cities where the apex bank has its Head Office. They provide credit to
small scale industrialists, salaried employees, and other urban and semi-urban residents.

(D)Functions of co-operative banks

Co-operative banks also perform the basic banking functions of banking but they differ from
commercial banks in the following respects

Commercial banks are joint-stock companies under the companies act of 1956, or
public sector bank under a separate act of a parliament whereas co-operative

Banks were established under the co-operative societys acts of different states.

Commercial bank structure is branch banking structure whereas co-operative

banks have a three tier setup, with state co-operative bank at apex level, central /
district co-operative bank at district level, and primary co-operative societies at rural
level.

Only some of the sections of banking regulation act of 1949 (fully applicable to
commercial banks), are applicable to co-operative banks, resulting only in partial
control by RBI of co-operative banks and

Co-operative banks function on the principle of cooperation and not entirely on

commercial parameters.

17

CHAPTER 2
The Kurukshetra Central Co-operative Bank
A. Introduction

The Kurukshetra Central Co-op. Bank Ltd., Kurukshetra came into existence on 1.4.1973
with the Primary objective of inculcating banking habits among the rural masses. The Bank has
its jurisdiction throughout the Kurukshetra District. At the time of registration, the bank had only
4 branches. Keeping in the view the persistence demand from the rural masses, the bank has been
opening new branches for the facility of its customers. The total branches as on date stands to 21
with 2 extension counters. Out of these 21 branches 16 branches are rural and 5 branches are
urban. But due to restricting of PACS the bank is going to open 23 branches at PACS level in
addition to previous 21 branches. The bank initially functioned for accepting deposits and
advancing loans to the agricultural sector. Today with the changing scenario, the bank has also
diversified its functions and has also entered into the Non-Farm Sector to compete with other
commercial banks. From the last more than 10 years, the bank has financing loans under
individual financing scheme for 22 broad categories specified by RBI/NABARD. Besides this,
18

for small road transport operator can also be advanced loans upto this limit. For agro based
projects loans for higher amount are also considered.
Keeping deposits in the Co-operative Banks is also beneficial for the customers as .5%
extra interest is allowed on all deposits. The borrowers also get finance at cheaper rates than the
commercial banks.
During the past years, the bank has taken special steps to provide loans to the rural
artisans and weaker sections of the society.
The bank was adjudged best bank among all Districts Central Co-op. Banks in Haryana
State during the year 1995-96 by the NABARD. One Shield and Rs. 5.00 lacks were given to the
bank for welfare of the staff.

B. Branches & District Central Co-operative Banks

Chandigarh
Sr.
No.

Branch

Phone Number

The Haryana State Cooperative

1.

Apex Bank Limited, SCO 78-80,

0172-2721026

Sector 17-B, Chandigarh

The Haryana State Cooperative
2. Apex Bank Limited, Sector 15-B,

0172-2771315

Chandigarh
The Haryana State Cooperative
3. Apex Bank Limited, Sector 19-D,

0172-2773077

Chandigarh

19

The Haryana State Cooperative

4.

Apex Bank Limited, Hry. Civil

0172-2741604

Sectt, Chandigarh
The Haryana State Cooperative
5.

Apex Bank Limited, Manimajra,

0172-2739319

Chandigarh
The Haryana State Cooperative
6. Apex Bank Limited, Sector 20-D,

0172-2706557

Chandigarh
The Haryana State Cooperative
7.

Apex Bank Limited, Sector 34,

0172-2660672

Chandigarh
The Haryana State
8.

Cooperative Apex Bank

Limited, Sector 44,

0172-2609540

Chandigarh
The Haryana State
9.

Cooperative Apex Bank

Limited, Ext. Counter,

0172-2713908

New Sectt, Chandigarh

The Haryana State
10.

Cooperative Apex Bank

Limited, Sector 28,

0172-2651634

Chandigarh

Panchkula
Sr.

Branch

Phone Number

20

No.
1.

The Haryana State Cooperative Apex Bank

0172-2560178

Limited, Sector 9 ,Panchkula

The Haryana State Cooperative Apex Bank

2.

Limited, Ext. Counter, HSAMB Complex,

0172-2563934

Panchkula
3.

4.

5.

The Haryana State Cooperative Apex Bank

0172-2566406

Limited, Sector 4,Panchkula

The Haryana State Cooperative Apex Bank

0172-2566365

Limited, Sector 11 ,Panchkula

The Haryana State Cooperative Apex Bank

0172-2566405

Limited, Sector 15,Panchkula

The Haryana State Cooperative Apex Bank

6.

Limited, Staff Training College, Sector 5

0172-2573871

,Panchkula

District Central Co-operative Banks

Sr.No.

1.

2.

3.

4.

Phone

Branch

Number

The Ambala Central Cooperative Bank

0171-

LTD.

2530501

The Bhiwani Central Cooperative Bank

01664-

LTD.

244102

The Faridabad Central Cooperative

0129-

Bank LTD.

2280108

The Ftehabad Central Cooperative Bank

01667-

LTD.

226412

21

FAX

0171-2530347

01664-244102

0129-2280108

01667-221406

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

The Gurgaon Central Cooperative Bank

0124-

LTD.

2323076

The Hisar Central Cooperative Bank

01662-

LTD.

236984

The Jind Central Cooperative Bank LTD.

245872

The Jhajjar Central Cooperative Bank

01251-

LTD.

256262

The Kaithal Central Cooperative Bank LTD.

01746223508

The Kurukshetra Central Cooperative

01744-

Bank LTD.

290643

The Karnal Central Cooperative Bank

0184-

LTD.

2251424

The Mahendragarh Central Cooperative

01285-

Bank LTD.

220295

The Rewari Central Cooperative Bank

01274-

LTD.

220800

The Panchkula Central Cooperative

0172-

Bank LTD.

2569034

The Panipat Central Cooperative Bank

0180-

LTD.

2650138

The Rohtak Central Cooperative Bank

01262-

LTD.

254484

17. The Sirsa Central Cooperative Bank LTD.

18.

01681-

01666242258

The Sonipat Central Cooperative Bank

0130-

LTD.

2242527

22

0124-2323076

01662-225205

01681-245179

01251-254321

01746-223508

01744-292447

0184-2251424

01285-220135

01274-220790

0172-2571961

0180-2650138

01262-254484

01666-242763

0130-2242527

19.

The Yamunanagar Central Cooperative

01732-

Bank LTD.

262050

01732-262050

Chapter 3
Analysis and Discussion
In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They
generally give credit facilities to small farmers, salaried employees, small-scale industries, etc.
Co-operative Banks are available in rural as well as in urban areas. The functions of these banks
are just similar to commercial banks.
(A) ACCOUNTS types in banks
(a)Saving Account of Bank

i.

Meaning:commercial banks, co-operative banks and postal departments accept deposits by way of opening
saving bank account. The saving bank account is generally opened by salaried persons or by the
persons who have a fixed regular income.
Saving accounts are opened to encourage the people to save and collect their savings. In India,
saving account can be opened by depositing Rs.100 (US $2.19) to Rs.500 (US $11). The saving
account holder is allowed to withdraw money from the account two times or three times in a

23

week. The interest which is given on saving accounts is sometime attractive, but often nominal.
At present, the rate of interest is 3.50% p.a in India. The interest rates varies as per amount of
money deposited and its maturity range. It is also subject to current trend of banking policies in a
country.

ii.

Features of Saving Account

The main characteristics or features of saving account are:1. The main objective of saving account is to promote savings.
2. There is no restriction on the number and amount of deposits.
3. Withdrawals are allowed subject to certain restrictions.
4. The money can be withdrawn either by cheque or withdrawal slip.
5. The rate of interest payable is very nominal on saving accounts. At present it is about
3.50% p.a in India.
6. Saving account is of continuing nature. There is no maximum period.
7. A minimum amount has to be kept on saving account.
8. No loan facility is provided against saving account.

iii.

Advantages of Saving Account

The benefits or advantages of saving account are:1. Saving account encourages savings habit among salary earners and others who have fixed
income.
2. It enables the depositor to earn income by way of interest.
3. It helps the depositor to make payment by way of cheques.
4. The bank offers number of services to the saving account holders.
(b)Current bank account
i. Meaning
Current bank account is opened by businessmen who have a number of regular transactions with
the bank, both deposits and withdrawals. It is also known as Demand Deposit. Current account
24

can be opened in co-operative bank and commercial bank. In current account, amount can be
deposited and withdrawn at any time without giving any notice. It is also suitable for making
payments to creditors by using cheques. Cheques received from customers can be deposited in
this account for collection.
In India, current account can be opened by depositing Rs.500 (US $ 11) to Rs.1, 000 (US $ 22).
The customers are allowed to withdraw the amount with cheques and they generally do not get
any interest. In India Co-operative bank may allow interest up to 1%.
Current account holder gets one important advantage of overdraft facility.

ii. Features of Current Bank Account

The main features of current account are as follows:1. The main objective of current bank account is to enable the businessmen to

conduct

their business transactions smoothly.

2. There is no restriction on the number and amount of deposits. There is also no restriction
on the withdrawals.
3. Generally bank does not pay any interest on current account. Nowadays, some banks do
pay interest on current accounts.
4. Current account is of continuing nature and as such there is no fixed period.

iii. Advantage of Current Bank Account

The advantages of current account are as follows:1. Current account enables businessmen to conduct his business transactions smoothly.
2. The businessmen can withdraw any amount at any time from their current accounts.
There are also no restrictions on withdrawals.
3. The businessmen can make direct payment to their creditors with the help of cheques.

25

4. The bank collects money on behalf of its customers and credits the same to their
accounts.
5. Current account enables the account holder to obtain overdraft facility.
6. The creditors of the account holder can get credit-worthiness information of the account
holder through interbank connection.
7. Current account facilitates the industrial progress of the country. Without the help of this
account, businessmen would have difficulties in running their business.
(c)What is Recurring Deposit Account?
(i)Meaning
Recurring deposit account is generally opened for a purpose to be served at a future date.
Generally opened to finance pre-planned future purposes like, wedding expenses of daughter,
purchase of costly items like land, luxury car, refrigerator or air conditioner, etc.
Recurring deposit account is opened by those who want to save regularly for a certain period of
time and earn a higher interest rate.
In recurring deposit account certain fixed amount is accepted every month for a specified period
and the total amount is repaid with interest at the end of the particular fixed period.
(ii)Features of Recurring Deposit Account
The main features of recurring deposit account are as follows:1. The main objective of recurring deposit account is to develop regular savings

habit

among the public.

2. In India, minimum amount that can be deposited is Rs.10 at regular intervals.
3. The period of deposit is minimum six months and maximum ten years.
4. The rate of interest is higher.
5. No withdrawals are allowed. However, the bank may allow closing the account before the
maturity period.
6. The bank provides the loan facility. The loan can be given up to 75% of the amount
standing to the credit of the account holder.
(iii)Advantage of Recurring Deposit Account
26

The advantages of recurring deposit account are as follows:1. Recurring deposit encourages regular savings habit among the people.
2. Recurring deposit account holder can get a loan facility.
3. The bank can utilize such funds for lending to businessmen.
4. The bank may also invest such funds in profitable areas.
(d)Fixed Deposit Account - Bank
i.

Meaning

The account which is opened for a particular fixed period (time) by depositing particular amount
(money) is known as Fixed (Term) Deposit Account. The term 'fixed deposit' means that the
deposit is fixed and is repayable only after a specific period is over.
Under fixed deposit account, money is deposited for a fixed period say six months, one year, five
years or even ten years. The money deposited in this account can not be withdrawn before the
expiry of period. The rate of interest paid for fixed deposit vary (changes) according to amount,
period and from bank to bank.
ii.

Features of Fixed Deposit Account

The main features of fixed deposit account are as follows:1. The main purpose of fixed deposit account is to enable the individuals to earn a higher rate
of interest on their surplus funds (extra money).
2. The amount can be deposited only once. For further such deposits, separate accounts need
to be opened.
3. The period of fixed deposits range between 15 days to 10 years.
4. A high interest rate is paid on fixed deposits. The rate of interest may vary as per amount,
period and from bank to bank.
5. Withdrawals are not allowed. However, in case of emergency, banks allow to close the
fixed account prior to maturity date. In such cases, the bank deducts 1% (deduction
percentage many vary) from the interest payable as on that date.
6. The depositor is given a fixed deposit receipt, which depositor has to produce at the time
of maturity. The deposit can be renewed for a further period.
27

iii.

Advantages of Fixed Deposit Account

The advantages of fixed deposit account are as follows:1. Fixed deposit encourages savings habit for a longer period of time..
2. Fixed deposit account enables the depositor to earn a high interest rate.
3. The depositor can get loan facility from the bank.
4. On maturity the amount can be used to make purchases of assets.
5. The bank can get the funds for a longer period of time.
6. The bank can lend such funds for short term loans to businessmen.
7. Fixed deposits indirectly boost economic development of the country.
8. The bank can also invest such funds in profitable areas.
(B)Difference between Fixed Deposit (FD) and Recurring Deposit (RD)
When it comes to saving money in deposit-schemes, often people get
confused as to what saving-instrument to choose? Should they go for Fixed
Deposits (FD) or should they park their money in Recurring Deposits
(RD)? This tutorial attempts to answer those questions and doubts, which
people may be having in their mind with respect to these deposit-schemes.
FD (Fixed Deposit) is suitable for someone, who has some lump-some
amount and want to invest it for a specific time interval. Interest rate
depends upon the maturity period, longer the period greater the
interest

rate.

You

can

opt

either

for

periodical

returns,

say

monthly/quarterly/half yearly or annually, or simply opt to get the amount

with accumulated interest at the end of the prescribed term. Premature
and partial withdrawal facilities are available, but not without some
penalty, that you have to pay at the time of withdrawal. This penalty
amount varies across banks, so you may want to check this out with
individual banks, before opting for opening an FD (Fixed Deposit). There
will be a TDS (Tax Deductible at Source) applicable to your maturity
28

amount, if the interest paid on your deposit exceeds Rs.10000/- per year.
This is fixed by government to be 10% of interest amount plus 3% Education
Case.
But if you dont have a lump-sum amount, that you could possibly invest in
one-shot, FD (Fixed Deposit) is a no-no. But if you have a regular income
every month (say a salaried individual) and want to save a certain fixed
amount for a specific time interval, then RD(Recurring Deposit) is a better
option for you. But you need to be sure of the fact that you will be able to
pay that fixed amount every month. One of the major drawbacks with
Recurring Deposits is non-flexibility of the amount-of-deposit. Partial payment
is not allowed nor can you pay more than the decided amount. Here again,
interest rate depends upon the maturity period, longer the period
greater the interest rate. FD (Fixed Deposit) generally gives more returns,
when compared to RD (Recurring Deposit). Premature withdrawal is
applicable but some penalty you have to pay. Partial withdrawal is not
applicable. As per Income Tax Rules, there is no TDS (Tax Deductible at
Source) applicable on RD (Recurring Deposits).
Both of them have their pros and cons and it solely depends on your
requirements and your financial planning, to identify which one is better for
you? After all its your money, is not it
(C)Account opening
7 Simple Steps in Open Bank Account - Banking
Today Banks have emerged as important financial institutions. Banks provide a safe environment
and help us manage our financial transactions. To avail professional banking service it is
mandatory for every individual to open a bank account. Opening a bank account is not a difficult
task. It takes only seven easy steps to open a bank account. This article will help you understand
these seven simple steps or procedure to open a bank account.
1. Decide the Type of Bank Account you want to open

29

There are several types of bank accounts such as Saving Account, Recurring Account, Fixed
Deposit Account and Current Account. So a decision regarding the type of account to be opened
must be taken.

2. Approach any Bank of choice & meet its Bank Officer

Once the type of account is decided, the person should approach a convenient bank. He has to
meet the bank officer regarding the opening of the account. The bank officer will provide a
proposal form (Account Opening Form) to open bank account.
3. Fill up Bank Account Opening Form - Proposal Form
The proposal form must be duly filled in all respects. Necessary details regarding name, address,
occupation and other details must be filled in wherever required. Two or three specimen
signatures are required on the specimen signature card. If the account is opened in joint names,
then the form must be signed jointly. Now a day the banks ask the applicant to submit copies of
his latest photograph for the purpose of his identification.
4. Give References for Opening your Bank Account
The bank normally required references or introduction of the prospective account holder by any
of the existing account holders for that type of account. The introducer introduces by signing his
specimen signature in the column meant for the purpose. The reference or introduction is
required to safeguard the interest of the bank.
5. Submit Bank Account Opening Form and Documents
The duly filled in proposal form must be submitted to the bank along with necessary documents.
For e.g. in case of a joint stock company, the application form must accompany with the Board's
resolution to open the account. Also certified copies of articles and memorandum of association
must be produced.
6. Officer will verify your Bank Account Opening Form

30

The bank officer verifies the proposal form. He checks whether the form is complete in all
respects or not. The accompanying documents are verified. If the officer is satisfied, then he
clears the proposal form.
7. Deposit initial amount in newly opened Bank Account
After getting the proposal form cleared, the necessary amount is deposited in the bank. After
depositing the initial money, the bank provides a pass book, a cheque book and pay in slip book
in the case of savings account. In the case of fixed deposits, a fixed deposit receipt is issued. In
the case of current account, a cheque book and a pay in slip book is issued. For recurring
account, the pass book and a pay in slip book is issued.
Advantages:1. Bank account facilitates a safe custody of money
The bank is the custodian of cash. As and when the account holders needs the money can
withdraw the same depending upon the type of account.
2. Bank account helps in making payments
The bank account holder can make payment to third parties through the savings and current
account. The payment may be regarding electricity bills, insurance premium, etc. The bank also
makes direct payment on the standing instructions of the customer.
3. Bank account helps in collection of money
The bank can directly collect money of the customer in respect of dividend, salary pension or
from debtors. The collected money is then deposited in customer's bank account.
4. Bank account holders get advances and loans
The current account holder can obtain an overdraft facility from his bank. The recurring and
fixed deposit account holders can get a loan up to 75% of the amount to their credit. The savings
account holders can also obtain loans to purchase computers and such other equipments.
5. Bank account helps in smooth transactions

31

The bank accounts make it possible for the businessmen to conduct their business operations
smoothly not only in the domestic trade but also in the foreign markets.

6. Bank account holders get a safe deposit locker

The bank provides safe deposit locker facility to its account holders to keep
their valuables like gold jewelers, share certificates, property documents, etc
Different account rules under HARCO BANK
i

Saving account rules

Opening Of Saving Bank Account

1. Any person approved by the bank may open the saving bank account
agreeing upon to comply with the rules governing the saving bank
account.
2. Only one saving bank account may be opened.
3. By a person in his/her own name.
4. By more then one person in their joint name
5. By a minor who may be able to read and write & who is not below 14
years of age at the time of opening of the account.
6. By a natural guardian i.e. father or mother on behalf of minor, or by a
guardian appointed by court of law.
7. An account may be opened with minimum of Rs.500 only in cash & the
same will be maintained to keep the account running, balance less
than Rs.500, account will be closed at the bank discretion.
8. Interest rate of 3.50% per annum.
Current account rules
Opening Of Current Bank Account

32

1. Any person approved by the bank may open the current bank account
agrreing upon to comply with the rules governing the current bank
account.
2. A person intending to open an account must be properly introduced to
the bank by someone already known to the bank.
3. By a person who has attained majority.
4. By more then one person in their joint name Joint Hindu families.
5. Clubs & societies, trusts, executors, administrators, liquidators, Govt. &
semi Government bodies etc.
6. An account may be opened with minimum of Rs.5000 only in cash
Rs.50 per transaction be deducted if balance is maintained less than
Rs.5000.
7. No interest will be allowed on current bank.
iii

Fixed Deposit account rules Opening Of Fixed Deposit

1. Any person approved by the bank may open the saving bank account
agreeing upon to comply with the rules governing the saving bank
account.
2. Only one saving bank account may be opened.
3. By a person in his/her own name.
4. By more than one person in their joint name
5. By a minor who may be able to read and write & who is not below 14
years of age at the time of opening of the account.
6. By a natural guardian i.e. father or mother on behalf of minor, or by a
guardian appointed by court of law.
7. An account may be opened with minimum of Rs.500 only in cash & the
same will be maintained to keep the account running, balance less
than Rs.500, account will be closed at the bank discretion.
33

8. Interest rate of 3.50% per annum.

(D) Cheque
(i)

Meaning

Cheque is an important negotiable instrument which can be transferred by

mere hand delivery. Cheque is used to make safe and convenient payment. It
is less risky and the danger of loss is minimized.

(ii)Definition of a Cheque
"Cheque is an instrument in writing containing an unconditional order,
addressed to a banker, sign by the person who has deposited money with
the banker, requiring him to pay on demand a certain sum of money only to
or to the order of certain person or to the bearer of instrument."
(iii)Different Kinds / Types of Cheques
1. Bearer Cheque
When the words "or bearer" appearing on the face of the cheque are not
cancelled, the cheque is called a bearer cheque. The bearer cheque is
payable to the person specified therein or to any other else who presents it
to the bank for payment. However, such cheques are risky, this is because if
such cheques are lost, the finder of the cheque can collect payment from the
bank

34

2. Order Cheque
When the word "bearer" appearing on the face of a cheque is cancelled and
when in its place the word "or order" is written on the face of the cheque, the
cheque is called an order cheque. Such a cheque is payable to the person
specified therein as the payee, or to any one else to whom it is endorsed
(transferred).
3. Uncrossed / Open Cheque
When a cheque is not crossed, it is known as an "Open Cheque" or an
"Uncrossed Cheque". The payment of such a cheque can be obtained at the
counter of the bank. An open cheque may be a bearer cheque or an order
one.
4. Crossed Cheque
Crossing of cheque means drawing two parallel lines on the face of the
cheque with or without additional words like "& CO." or "Account Payee" or
"Not Negotiable". A crossed cheque cannot be encashed at the cash counter
of a bank but it can only be credited to the payee's account.
5. Anti-Dated Cheque
If a cheque bears a date earlier than the date on which it is presented to the
bank, it is called as "anti-dated cheque". Such a cheque is valid up to six
months from the date of the cheque.
6. Post-Dated Cheque
If a cheque bears a date which is yet to come (future date) then it is known
as post-dated cheque. A post dated cheque cannot be honored earlier than
the date on the cheque.
7. Stale Cheque
If a cheque is presented for payment after six months from the date of the
cheque it is called stale cheque. A stale cheque is not honored by the bank.

35

(iv)Features of cheques
1. Cheque is an instrument in writing
A cheque must be in writing. It can be written in ink pen, ball point pen,
typed or even printed. Oral orders are not considered as cheques.
2. Cheque contains an unconditional order
Every cheque contains an unconditional order issued by the customer to his
bank. It does not contain a request for payment. A cheque containing
conditional orders is dishonored by the bank.
3. Cheque is drawn by a customer on his bank
A cheque is always drawn on a specific bank mentioned therein. Cheques
drawn by stranger are of no meaning. Cheque book facility is made available
only to account holder who are supposed to maintain certain minimum
balance in the account.

4. Cheque must be signed by customer

A cheque must be signed by customer (Account holder). Unsigned cheques
or signed by persons other than customers are not regarded as cheque.

36

5. Cheque must be payable on demand

A cheque when presented for payment must be paid on demand. If cheque is
made payable after the expiry of certain period of times then it will not be a
cheque.
6. Cheque must mention exact amount to be paid
Cheque must be for money only. The amount to be paid by the banker must
be certain. It must be written in words and figures.

7. Payee must be certain to whom payment is made

The payee of the cheque should be certain whom the payment of a cheque is
to be made i.e. either real person or artificial person like Joint Stock
Company. The name of the payee must be written on the cheque or it can be
made payable to bearer.
8. Cheque must be duly dated by customer of bank
A cheque must be duly dated by the customer of bank. The cheque must
indicate clearly the date, month and the year. A cheque is valid for a period
of six months from the date of issue.
9. Cheque has 3 parties: Drawer, Drawee & Payee
1. Drawer: A drawer is a person, who draws a cheque.
2. Drawee: A drawee is a bank on whom a cheque is drawn.
3. Payee: A payee is a person in whose favors a cheque is drawn.
(E)Crossing of Cheque
A cheque is a negotiable instrument. During the process of circulation, a
cheque may be lost, stolen or the signature of payee may be done by some
other person for endorsing it. Under these circumstances the cheque may go
into wrong hands.

37

Crossing is a popular device for protecting the drawer and payee of a

cheque. Both bearer and order cheques can be crossed. Crossing prevents
fraud and wrong payments. Crossing of a cheque means "Drawing Two
Parallel Lines" across the face of the cheque. Thus, crossing is necessary in
order to have safety. Crossed cheques must be presented through the bank
only because they are not paid at the counter.

a. Different Types of Crossing

1. General Crossing:Generally, cheques are crossed when
1. There are two transverse parallel lines, marked across its face or
2. The cheque bears an abbreviation "& Co. "between the two parallel lines or
3. The cheque bears the words "Not Negotiable" between the two parallel lines or
4. The cheque bears the words "A/c. Payee" between the two parallel lines.
A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the
crossing is cancelled and affixing the full signature of drawer.

Specimen of General Crossing

38

2. Special or Restrictive Crossing:When a particular bank's name is written in between the two parallel lines
the cheque is said to be specially crossed.

Specimen of Special or Restrictive Crossing

In addition to the word bank, the words "A/c. Payee Only", "Not Negotiable"
may also be written. The payment of such cheque is not made unless the
bank named in crossing is presenting the cheque. The effect of special
crossing is that the bank makes payment only to the banker whose name is
written in the crossing. Specially crossed cheques are safer than generally
crossed cheques.Cheque is an instrument in writing

(F)Loan
Being a Scheduled Bank, giving Loans and Advances is among our primary activities. Apart
from our participation in meeting both Term Loan and Working Capital requirements of
Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector,
Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs
like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products

39

specially designed to suit your personal needs. Salient features of some of the more attractive
Personal Loan Schemes & seven special schemes are described below.

(i)KCC LOAN KISHAN CREDIT CARD

Conditions

Sr.No.

Requirements

1
.

Purpose of the
Raising of various crops in Haryana State.

loan
Beneficiary/

2 Who
borrow

canAny agriculturist who is also a member of the PACS

(Mninibank)
To be worked out by multiplying number of acreage being

Amount/Period

the
loanCultivated to scale of finance for that crop subject to ceiling of
3 of
a) Cash Rs.75000/admissible
b) Kind Rs.25000/- Loan is for maximum period of 12 months.

Frequency/mod

Funds released by cheque as many time as required by

the
4 e of release of
Borrower drawn on concerned branch of CCB/ Mini
funds
bank.

40

a) Kharif advances between 1.3 to 31.8 will fall due on

31-1 next year.
Rabi advances between 1.9 to 28/29 Feb for next year
will fall due
On 31-5 next year. (No drawal shall be allowed for a

5 Repayment

period

of more than 12 months)

b) In case of failure of crops due to natural calamities,
facility
of conversion of loan into medium term loan available.
1. Two personal sureties who are also members Of the
Minibank.

6 Security

2. Floating charge on crops being cultivated by raising

the loan.

7 Rtae of Interest 7% (Subject to revision from to time)

.

8
.

Penal

rate

interest

of
5% p.a.

KISAN CREDIT CARD

(ii)OBJECTIVES:

Kisan Credit Card Scheme aims at providing need based and timely credit support to the
farmers for their cultivation needs as well as non-farm activities and cost effective
manner.

41

To bring about flexibility and operational freedom in credit utilization.

(iii) ELIGIBILITY:

Under the scheme, Branches may issue Kisan Credit Cards to the farmers who are
otherwise eligible for sanction of short term credit for crop production, allied activities
and other non-farm activities.

The farmers should come from the operational area of the Branch.

(iv) ISSUE OF CARDS:

The farmers under the scheme will be issued a credit card-cum-passbook incorporating
the name, address, particulars of land holding, borrowing limit / sub-limits, validity
period, etc. to facilitate recording of the transactions on an on-going basis. The passbook,
among others, would provide for a passport size photograph of the beneficiary.

The beneficiary farmer should produce the passbook while operating the account.

(V)TECHNICAL FEASIBILITY:

Suitability of soil, climate and availability of adequate irrigation facilities.

Suitability of the produce for storage.

Suitability of the storage unit.

(Vi)TYPE OF FACILITY:

Revolving Cash Credit Annual Review. The farmer should be allowed for any number
of drawls and repayment within the limit.

The review may result in continuation of the facility, enhancement of the limit or
cancellation of the limit / withdrawal of the facility, depending upon the performance of
the borrower.

The aggregate of credits into the account during the 12 months period should at least be
equal to the maximum outstanding in the account.

No drawl in the account should remain outstanding for more than 12 months in case of
normal crops and 18 months in case of sugarcane and banana crops.

42

In case of reschedulement of the period of repayment on account of natural calamities

affecting the farmer, the period for reckoning the status of operations as satisfactory or
otherwise would get extended together with the extended amount of limit. When the
proposed extension is beyond one crop season, the aggregate of debits for which
extension is granted should be transferred to a separate term loan account with stipulation
for repayment in installments as per existing guidelines.

As a measure of incentive for card holders with good performance, the Branches may at
the time of review, enhance the credit limit suitably to take care of increase in cost of
inputs / labour, change in cropping pattern, etc.

(vii) SECURITY:
(a) Upto Rs.50, 000=: D. P. Note
Hypothecation of standing crops
(b) Above Rs.50, 000=: D. P. Note
Hypothecation of standing crops
Mortgage of land / Collateral security.

Note:

In case the value of land mortgaged is adequate, no other security should

be obtained.

For finance against Government warehouse receipts, mortgage may be

waived.

Waiver of mortgage of land in deserving cases may be considered as per

security norms.

The RBI norms on security should be strictly adhered to.

43

Common Documents:
(a) Demand Promissory Note.
(b) Deed of Composite Hypothecation Agreement (CHA-1).
(c) Letter of Authority (AG-15).
(d) Charge on land as per Agricultural Credit Act or Equitable mortgage or Legal Mortgage of
land (CHA- 4).
(e) Letter of Pledge (OD-159).
(f) Pledge of Storage Receipt duly discharged.
(g) Undertaking to repay the advance within 12 months or on sale of produce.
(h) Banks lien to be notified to the storage unit.
(i) Undertaking from the godown & cold storage owners not to deliver the goods without
production of the pledged storage receipt.
(j) L-515.
(k) L-516 (if required).
Note:
(i) Documents mentioned under (e) to (i) above are applicable only if sub-limit against storage
receipt is sanctioned.
(ii) In case produce marketing limit is extended against the produce stored in the premises of the
farmer, then hypothecation deed (CHA-1) should suffice to cover hypothecation charge on the
produce stored.
(viii)RATE OF INTEREST:
(a) On Debit Balance: As advised by Head Office from time to time

44

(b) On Credit Balance: Rate of interest payable will be as per Savings

Bank interest rate and follow the Savings Bank
Rules except opening a separate account.
(ix)(MTPL) MEDIUM TERM PERSONAL LOAN
Medium term finance is defined as money raised for a period from one to five years. The
medium term funds are required by a business mostly for the repair and modernizing of the
machinery. There are different sources of raising the medium term finances. One of the major
sources for the medium term finances are the commercial banks. Commercial banks are now
the most important source of providing medium term loans. Loans are generally given
against some security of assets. Generally the loan is credited to the account of the borrower.
He can withdraw the whole amount once or in installments. Traditionally the banks were
mainly concentrating on providing short term loans. Now-s-days the term loans exceeding
one year are being provided by the banks.

45

Chapter 4
Suggestion and Conclusion

(A) SWOT Analysis

Strengths:

Right strategy for the right products.

Good place to work.

Great brand images.

High degree of customer satisfaction.

Superior customer services vs. competition.

Weaknesses:

Some gap in range for certain sector.

Management insufficient.

Customer services staff need training.

Processes and systems etc.

Opportunities:

Profit margin will be good.

Could extend to overseas broadly

Good scope in rural areas.

Could seek better costumer deal.

Threats:

Legislation could impact

Great risk involved

Very high competition

46

47

(B) Suggestion :
1.

All the complaints of Customer should be deal in proper manner because it is the
customer who will give good or bad mouth about bank services.

2.

Non maintenance and other charges which are very high as compared to other Banks
should be reduced.

3.

Regular connected with customer.

4.

Provide a ATM Facility to the customers

5.

Proper Co ordination between Marketing and Operation need to be developed.

6.

Promotion of various scheme by Kurukshetra Central Cooperative Bank.

(C) Conclusion
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the
backbone of modern business. Development of any country mainly depends upon the banking
system.
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customers.
A co-operative bank is a financial entity which belongs to its members, who are at the same
time the owners and the customers of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a common interest. Cooperative banks generally provide their members with a wide range of banking and financial
services (loans, deposits, banking accounts...).
Co-operative banks differ from stockholder banks by their organization, their goals, their values
and their governance. In most countries, they are supervised and controlled by banking
authorities and have to respect prudential banking regulations, which put them at a level playing
field with stockholder banks. Depending on countries, this control and supervision can be
implemented directly by state entities or delegated to a co-operative federation or central body.

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Even if their organizational rules can vary according to their respective national legislations, cooperative banks share common features:

Customer's owned entities: in a co-operative bank, the needs of the customers meet the needs
of the owners, as co-operative bank members are both. As a consequence, the first aim of a cooperative bank is not to maximize profit but to provide the best possible products and services to
its members. Some co-operative banks only operate with their members but most of them also
admit non-member clients to benefit from their banking and financial services.

Democratic member control: co-operative banks are owned and controlled by their members,
who democratically elect the board of directors. Members usually have equal voting rights,
according to the co-operative principle of "one person, one vote".
Profile allocation: in a co-operative bank, a significant part of the yearly profit, benefits or
surplus is usually allocated to constitute reserves. A part of this profit can also be distributed
to the co-operative
The Co-operative Bank operates under its own brand as well as those of smile, Platform and
Britannia. We offer our services through 342 branches and 22 corporate banking centers as well
as telephony and online channels. We are a leader in the field of ethical investment and corporate
social responsibility. Our customer driven ethical strategy was the first of its kind in our industry
and we pursue an active strategy of community involvement.

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Chapter - 5
LEARNING FROM TRAINING
Account opening
Cash withdrawal
Cash deposit
Different type of cheques
Loans
Voucher entry in FINACLE SOFTWARE

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REFERENCES

Banking gernal awareness by arihant

www.harcobank.com
Annual report of kccb.

www.money.rediff.com

www.moneycontrol.com

www.sebi.com

www.indianinfoline.com

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