A

PROJECT REPORT ON

“WORKING PROCESS OF BANKING ’’

SAROJINI NAIDU GOVT. GIRLS P.G AUTONOMOUS
COLLEGE

Session
2010-2011
At
Co-operative bank

Bhopal, (M.P.)
SUBMITTED TO:
SUBMITTED BY: DR.AJAY SHRIVASTAVA
DEEPA KUMBHARE

B.COM 5TH SEM.

ROLL NO. 821027

ROLL CALL..22

ACKNOWLEDGEMENT

I take this opportunity to place on record my grateful thanks and sincere

gratitude to all those who gave me valuable advice and inputs for my study.
My study could not have been completed if I had not been able to get the
reference materials from the bank.

I sincerely thank my esteemed guide (head office manager) and the staff
members for their valuable guidance and co-operation rendered to me
throughout the project report.It would not have been possible for me to
complete this project without there meticulous guidance and suggestions.

I express my sincere regards to Mrs.Shobhna bajpai maru (principle) and

my guide Dr.Ajay shrivastava(FACULTY) for constant Support and
valuable guidance from time to time for completion of this project.
Last but not least, I would also like to express my thanks to my family
members who inspired me to put in my best efforts for the research project
report.

Deepa
Kumbhare

PREFACE

The research provides an opportunity to a student to demonstrate

knowledge, skill and competencies required during the project. The
training project helps to know the problems in the organization and to
suggest them how to get rid of those problems.

Although I have tried my level best to prepare this report an error free
report every effort has been made to offer the most authenticate position
with accuracy.
 Deepa Kumbhare

CERTIFICATE OF
STUDENT

I DEEPA KUMBHARE (Name of student), student of B.com 3rd year

(class) of Sarojini Naidu Govt.Girls P.G. Autonomous college of
Bhopal (M.P) certify that ,I have completed my training in CO-
OPERATIVE BANK OF T.T NAGAR(Name of the organisation and place)
from(Date)1-8-2010 to 30-9-2010.This project report is
original,authentic and prepared by me.
 Deepa kumbhare

Signature:

Date:

Place: Bhopal

DECLARATION

I hereby declare that, this project title “working process of banking” is

a genuine & bonafide project prepared by me,The project work is original
& conclusions drawn herein are based on the data collected & analyzed by
myself.
To best of my knowledge, this project work has not been submitted by
anyone else in any other institute or university.

Date : Deepa Kumbhare

Place : Bhopal B.com (5th SEM)

TABLE OF CONTENTS
1.COVER AND TITLE PAGE
a)Certificate of the company ……………………………………………… .

b)Acknowledgement………………………………………………………. ..

c)Preface……………………………………………………………………..

d)Declaration given by student……………………………………….........

e)Table of contents…………………………………………………………. .
 f)Question related project……………………………………………….......

g) Work place training report format……………………………………..

2.INTRODUCTION TO PROJECT

a) Introduction ………………………………………………………………

b)Bank deposits and reserves……………………………………………….

c)Types of bank loans offered by banks in India………………………….

3.ORGANISATION PROFILE
a)Cooperative banks in india……………………………………………..

b)Some facts about cooperative banks in India…………………………..

4.CONCLUSIONS
a)Conclusion
……………………………………………………………………………………………..

ORGANISATION
 PROFILE

ORGANISATION PROFILE
The Co operative banks in India started functioning almost 100 years ago.
The Cooperative bank is an important constituent of the Indian Financial
System, judging by the role assigned to co operative, the expectations the
co operative is supposed to fulfil, their number, and the number of offices
the cooperative bank operate. Though the co operative movement
originated in the West, but the importance of such banks have assumed in
India is rarely paralleled anywhere else in the world. The cooperative
banks in India plays an important role even today in rural financing. The
businessess of cooperative bank in the urban areas also has increased
phenomenally in recent years due to the sharp increase in the number of
primary co-operative banks.

Co operative Banks in India are registered under the Co-operative

Societies Act. The cooperative bank is also regulated by the RBI. They are
governed by the Banking Regulations Act 1949 and Banking Laws (Co-
operative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

• Farming
• Cattle
• Milk
• Hatchery
• Personal finance

Cooperative banks in India finance urban areas under:

• Self-employment
• Industries
• Small scale units
• Home finance
• Consumer finance
• Personal finance

Some facts about Cooperative banks in India

• Some cooperative banks in India are more forward than many of the
state and private sector banks.

• According to NAFCUB the total deposits & lendings of

Cooperative Banks in India is much more than Old Private Sector
Banks & also the New Private Sector Banks.

• This exponential growth of Co operative Banks in India is attributed

mainly to their much better local reach, personal interaction with
customers, their ability to catch the nerve of the local clientele.
INTRODUCTION
TO

PROJECT
INTRODUCTION TO BANKS

The bulk of all money transactions today involve the transfer of bank
deposits. Depository institutions, which we normally call banks, are at the
very center of our monetary system. Thus a basic knowledge of the banking
system is essential to an understanding of how money works.

Bank Deposits and Reserves

The monetary base is created by the Fed when it buys securities for its own
portfolio. Bank deposits themselves are not base money, rather they are
claims on base money. A bank must hold reserves of base money in order to
meet its depositors' cash withdrawals and to cover the checks written against
their accounts. Reserves comprise a bank's vault cash and what it holds on
deposit at the Fed, known as Fed funds. The Fed requires banks to maintain
reserves of at least 10% of their demand deposits, averaged over successive
14-day periods.
The Movement of Bank Reserves
When a depositor writes a check against his account, his bank must surrender
that amount in reserves to the payee’s bank for the check to clear. Reserves
are constantly moving from one bank to another as checks are written and
cleared. At the end of the day, some banks will be short of reserves and
others long. Banks redistribute reserves among themselves by trading in
the Fed funds market. Those long on reserves will normally lend to those
short. The annualized interest rate on interbank loans is known as the Fed
funds rate, and varies with supply and demand.

The reserve requirement applies only to the bank's demand deposits, not its
term or savings deposits. Thus when a bank depositor converts funds in a
demand deposit into a term or savings deposit, he frees up the reserves that
were held against the demand deposit. The bank can then use those reserves
in several ways. For example, it can hold them to back further lending, buy
interest-earning Treasury securities, or lend them to other banks in the Fed
funds market.

TYPES OF BANK LOANS OFFERED BY

BANKS IN
 INDIA
The various Loans offered by Banks in India are mentioned as under:

1.Personal Loans

Personal Bank Loans are the credits which a bank offers to its customer to
meet his instant personal requirements ranging from home renovation to
purchasing of new laptop, a getaway with family or for reimbursing the
credit card liabilities, for buying a new car or for child's education, etc.
Personal loan simplifies the cash flow of the customer besides handling its
immediate needs.
Personal loans criteria
For Self-Employed
Eligibility For salaried Individuals
Individuals
Minimum and 21 years and 58 years 25 years and 65 years
Maximum Age respectively respectively
Maximum Annual
Rs. 1,20,000 Rs. 1,50,000
Income
Minimum years in
1 year 3 years
service/ business
Loan Amount Rs 50,000 to Rs 15,00,000
Rs. 50,000 to Rs. 15,00,000
Loan Tenure 1 years to 7 years 1 years to 7 years
Interest Rates 12-24%. 12-24%.
Post-dated cheques or Post-dated cheques or
Mode of
Standing orders to debit Standing orders to debit
Repayment
from personal A/c from personal A/c

2.Home Loans
To buy a dream home is the dream of every person. Home Loan has
helped in changing every Indian's dream into reality. However, the every
increasing property rates and escalating rates of interest sometimes act as
an obstacle. Therefore, before opting for a home loan it is advisable to
check every prospect of the product.

Home Loans
For salaried For Self-Employed
Eligibility
Individuals Individuals
Minimum and Maximum 21 years and 65 years 21 years and 70 years
Age respectively respectively
Maximum Annual
Rs. 1,00,000 Rs. 1,50,000
Income
Minimum years in
1 year 3 years
service/ business
Loan Amount Rs 2,00,000 to Rs 2,00,00,000
Rs 2,00,000 to Rs 2,00,00,000
Loan Tenure 5 years to 20 years 5 years to 20 years
Interest Rates 9-16% 9-16%

3.Bank Loans against Property

Property Loan or Loan against property is a kind of loan which is allowed
by the bank on the condition of keeping the customer's current assets as a
security with them. These loans are very useful when other resources of
financing get exhausted.

It is significant to recognize that a loan against property is not similar to

mortgage. While loan against property is obtained from the bank by
allocating customer's current assets as a security against the credit, a
mortgage is an instrument for purchasing an asset. On the basis of the
current market situations, the paid up cost of the asset and other aspects,
the cost of the credit against asset can range anywhere from 40% to 60%
of the asset costs.

Loans against Property

For Self-Employed
Eligibility For salaried Individuals
Individuals
Minimum and Maximum 21 years and 60 years 21 years and 65 years
Age respectively respectively
Maximum Annual Income Rs. 1,20,000 Rs. 1,50,000
Minimum years in
1 year 3 years
service/ business
Loan Amount Rs 2,00,000 to Rs 1,50,00,000
Rs 2,00,000 to Rs 1,50,00,000
Loan Tenure 1 years to 15 years 1 years to 15 years
Loan to cost ratio 60% of residential cost 50% of commercial cost
60% of residential cost 50% of commercial cost
Tax Rebate NIL NIL
4.Business Loans
Before starting a business, the entrepreneur should be mentally and
financially prepared to encounter the fiscal setbacks during the
process. To bail the companies out from the fiscal crunch, several
banks in India offers business Loans both for meeting urgent official
growth and expenses. Other details of Business Loans offered by
Banks in India are:

5.Car Loans

Every individual want to own a car. Hence, the need for car loans emerges
at some point or the other. While selecting a car loan it is always wise to
scrutinize the various options accessible in the market besides analyzing
its fiscal suitability.
Car loans criteria
For Self-Employed
Eligibility For salaried Individuals
Individuals
Minimum and 21 years and 60 years 21 years and 65 years
Maximum Age respectively respectively
Maximum Annual
Rs. 1,00,000 Rs. 60,000
Income
Rs. 1,00,000 (new) and Rs.
Loan Amount Rs. 20,00,000
50,000 (old) to
Rs. 1,00,000 (new) and Rs.
Rs. 20,00,000
50,000 (old) to
Loan Tenure 1 years to 7 years 1 years to 7 years
Loan to cost ratio 85-90% of car cost 85-90% of car cost

Education Loans
Education Loans offered by various banks in India provide much required
assistance to fund your child's education when all other resources of
finance get exhausted. Education Loans are offered by almost every Indian
bank thus providing ample opportunity to students to undergo higher
education both in India and abroad.

Education loans criteria

Eligibility For Students
Minimum and
16 years and 26 years respectively
Maximum Age
course and examination fee, refundable deposits,
Expenses covered
procurement of books, travel expenses
Loan Amount for
Upto Rs 10,00,000
studies in India
Loan Amount for
Upto Rs 20,00,000
studies abroad
Repayment Period 5-7 years

ADVANTAGES OF INTERNET BANKING

The greatest advantage of Internet banking perhaps lies in the
fact that customers are no longer required to wait in those long
and wearisome queues of the banks to request a financial
transaction or statement. Another important advantage of Internet
banking is that it has made the opening of an account quite
simple and easy and without much paperwork. The same
flexibility can be observed even while closing an account. You
can also apply for bank loans without personally visiting any
local branch of your bank.

Conventional banking has always been slow and time

consuming, so much so that sometimes you need to wait several
hours to process a simple transaction like clearing a check. But,
Internet banking has tremendously reduced the time required to
process banking transactions, thereby making banking faster and
convenient. For the bankers this system is cost-effective, as it has
considerably reduced the administrative costs and paperwork
related to the transactions. Besides, banks can also cater to the
needs of thousands of customers at the same time. All these
factors have significantly increased the profit margins of
commercial banks by lowering their operating costs. This has
enabled them to offer acceptable interest rates on savings account
and credit caWith the help of Internet banking, you can access any
information regarding your account and transactions, any time of the day.
This means that you no longer have to depend on the office hours of your
bank to obtain information. Therefore, you can regularly monitor your
account as well as keep track of financial transactions, which can be of
immense help in detecting any fraudulent transaction. In addition to this,
fund transfers, both national and international, have also become faster and
convenient with Internet banking. Nowadays, you can transfer funds from
one account to another within a few minutes. You can easily carry out
stock trading, exchanging bonds and other investments with the help of
Internet banking. All these features have made Internet banking ideal for
people who make a number of financial transactions each day.

In addition to availing banking facilities for 24 hours a day, you can also
receive other important information regarding banking policies, rates of
interest offered on different types of bank accounts and formalities
required in executing various transactions. With such information you can
compare the services of different banks and opt for the one that satisfies
your individual needs and requirements.rds.
Clearing of cheques

All cheques are as a rule go thru clearing house for cheques, only cheques
that do not go thru it is if they are deposited or cashed at same bank(in this
case bank acts as clearing house).

The money is not release until the cheque is verified by the bank in all
respect. Then first exchanged by banks after withdrawing from cheque
issuer's account, the receiving bank pays the depositor in its account.

This process is call cheque clearing process.

In simple terms if more then one bank is involved then it has to go thru
clearing house.

In case of dealing with, out of the country bank it needs to go thru reserve
bank of both the countries, besides going thru clearing house.

If you do not get the money after depositing the cheque then it comes back
to you as uncleared check with reason, such as no such account or
insufficient fund or signature cannot be verified or stoped payment
initiated by issuer.

Most bank will release the money immediately if you are in good standing
with them, subject to clearing of check, if it does not clear you are required
to pay back the money plus the interest on the money for using it, if you do
not have an account with that bank, if you have an acount then money is
taken from that acount and you are notified with uncleared check notice.
Demand Draft

A method used by individuals to make transfer payments from one bank

account to another. Demand drafts are marketed as a relatively secure
method for cashing checks. The major difference between demand drafts
and normal checks is that demand drafts do not require a signature in order
to be cashed.

Also known as "remotely created checks".

Investopedia explains Demand Draft

Demand drafts were originally designed to benefit legitimate telemarketers
who needed to withdraw funds from customer checking accounts.
However, the lack of a signature required to authorize the transfers have
left demand drafts open to fraudulent use. The only information needed to
create a demand draft is a bank account number and a bank routing
number - this information is found on a standard check.

In 2005, the Federal Reserve proposed new regulations over the fraudulent
use of demand drafts. The regulation increases a vic.
Deposit account

A deposit account is a current account, savings account, or other type

of bank account, at a banking institution that allows money to be
deposited and withdrawn by the account holder. These transactions are
recorded on the bank's books, and the resulting balance is recorded as
a liability for the bank, and represent the amount owed by the bank to the
customer. Some banks charge a fee for this service, while others may pay
the customer interest on the funds deposited.

Major types of deposit accounts

1.Checking accounts: A deposit account held at a bank or other
financial institution, for the purpose of securely and quickly providing
frequent access to funds on demand, through a variety of different
channels. Because money is available on demand these accounts are
also referred to as demand accounts or demand deposit accounts.

2.Savings accounts: Accounts maintained by retail banks that

pay interest but cannot be used directly as money (for example, by
writing a cheque). Although not as convenient to use as checking
accounts, these accounts let customers keep liquid assets while still
earning a monetary return.

3.Money market account: A deposit account with a relatively high rate

of interest, and short notice (or no notice) required for withdrawals. In
the United States, it is a style of instant access deposit subject to federal
savings account regulations, such as a monthly transaction limit.
4.Time deposit: A money deposit at a banking institution that cannot
be withdrawn for a preset fixed 'term' or period of time. When the term
is over it can be withdrawn or it can be rolled over for another term.
Generally speaking, the longer the term the better the yield on the
money.

CERTIFICATE OF TEACHER
This is to certify that the submitted report “WORKING PROCESS OF
BANK” of the training ,whose (Guide) is Dr.AJAY SHRIVASTAVA is
authentic and prepare by DEEPA KUMBHARE Of Class B.com 3rd
year. She has performed her training in COOPERATIVE BANK T.T.
NAGAR (HEAD OFFICE) under my guidance.

Signature:

Name: Dr.Ajay Shrivastava

Seal:

CERTIFICATE BY INSTITUTION
This is to certified that Deepa Kumbhare ,student of B.COM final
year (Name of the student and class) Of Sarojni Naidu Govt. Girls.
P.G autonomous college has completed her training from
Cooperative Bank T.T.Nagar Head Office(Name of the institution and
place) from 1-8-2010 to 30-8-9-2010(Date) with proper attention in the
organization.

During the training her attitude was good and she has completed her
training with proper attention.

We wish for her bright future.

Branch Manager

Name:

Signature:

Seal:

WORK PLACE TRAINING REPORT

FORMAT
1.Name Of The Student/Class: Deepa kumbhare (B.com final year 5th sem)
2.Name Of The Father:Shri.Chandrakant kumbhare

3.Name Of The College:Sarojini Naidu Govt Girls P.G.autonomous

college

4.Address Of Student&Phone:J.L.914 kotra sultanabad

Bhopal(7828903414)

5.Name Of Guide: Dr.Ajay Shrivastava

6.Name &Address Of Institute:Co-operative bank (T.T NAGAR

BRANCH)

7.Progess Report Of Month August:

1.Work Given During Training:

2.Work Given In August Month:

3.work completed:

8.Remark Given By The Institute Manager About The Student:

1.Timing:

2.Dress&Behaviour:

3.To Follow The Rules Of The Organization:

4.Sincerety About Work Given:

5.Leadership Quality:

6.Progress Required For Student And What Efforts Have Done To:

7.Progress To Be Done Work Speed Of Work/Capacity Of Hearing Toward The

Work Given By Institution:

Signature:

Branch Manager/Seal:

WORK PLACE TRAINING REPORT

 FORMAT
1.Name Of The Student/Class: Deepa kumbhare(Bcom final year 5th sem)

2.Name Of The Father:shri.chandrakant kumbhare

3.Name Of The College:sarojini naidu govt girls P.G.autonomous college

4.Address Of Student&Phone:J.L.914 kotra sultanabad

Bhopal(7828903414)

5.Name Of Guide: Dr.Ajay Shrivastava

6.Name &Address Of Institute:cooperative bank (T.T NAGAR BRANCH)

7.Progess Report Of Month August:

1.Work Given During Training:

2.Work Given In September Month:

3.Work Completed:

8.Remark Given By The Institute Manager About The Student:

1.Timing:

2.Dress&Behaviour:

3.To Follow The Rules Of The Organization:

4.Sincerety About Work Given:

5.Leadership Quality:

6.Progress Required For Student And What Efforts Have Done To:

7.Progress To Be Done Work Speed Of Work/Capacity Of Hearing Toward The

Work Given By Institution:

Signature:

Branch
Manager/Seal:
QUESTIONS RELATING PROJECT

1.Type Of The Work:

Ans:Employment (banking area).

2.Name Of The Institution/Work:

Ans:I have completed my training from cooperative bank,staff members

teach me about working process of banking and helped me to
complete my training.

3.Upcoming Problems And What Efforts Have Done To Resolve

Them:

Ans:After visited so many organizations we get the training from

cooperative bank(T.T.NAGAR HEAD OFFICE BRANCH OF BHOPAL).

4.Which type of problems you have faced during the training and how
to solve it:

Ans:The following work given by the bank

like:DDR,FDR,SAVINGS,CLEARING OF CHEQUE etc,during this
work I have faced lots of problems and the staff members helped me
resolve them.
 CONCLUSION

CONCLUSION

Access to bank accounts is crucial if financial exclusion is to be takled

successfully. Having a bank account enables people to obtain cheaper
deals on fuel, insurance and credit. Basic bank accounts can also help
prevent over indebtedness since they do not offer overdraft facilities.
1.People are experiencing long delays opening basic accounts with some
banks, as the relevant processes are carried out centrally rather than at
local branches. Such delays can leave people without any income for up
to several weeks.

2.Banks are sometimes upgrading basic accounts to full current accounts

with overdrafts where this may not be in an individual's best interests.

3. In addition to availing banking facilities for 24 hours a day, you can

also receive other important information regarding banking policies,
rates of interest offered on different types of bank accounts and
formalities required in executing various transactions. With such
information you can compare the services of different banks and opt for
the one that satisfies your individual needs and requirements.

CERTIFICATE OF STUDENT
I Neha Raghuwanshi (Name of student), student of B.com 3rd year
(class) of Sarojini Naidu Govt.Girls P.G. Autonomous college of
Bhopal (M.P) certify that ,I have completed my training in CO-
OPERATIVE BANK OF T.T NAGAR(Name of the organisation and place)
from(Date)1-8-2010 to 30-9-2010.This project report is
original,authentic and prepared by me.

Neha Raghuwanshi

Signature:

Date:

Place: Bhopal

CERTIFICATE OF TEACHER
This is to certify that the submitted report “WORKING PROCESS OF
BANK” of the training ,whose (Guide) is Dr.Deeksha Barde is
authentic and prepare by Neha Raghuwanshi Of Class B.com 3rd
year. She has performed her training in COOPERATIVE BANK T.T.
NAGAR (HEAD OFFICE) under my guidance.

Signature:

Name:Dr.Deeksha Barde

Seal:

CERTIFICATE BY INSTITUTION

This is to certified that Neha Raghuwanshi ,student of B.COM final

year (Name of the student and class) Of Sarojni Naidu Govt. Girls.
P.G autonomous college has completed her training from
Cooperative Bank T.T.Nagar Head Office(Name of the institution and
place) from 1-8-2010 to 30-8-9-2010(Date) with proper attention in the
organization.

During the training her attitude was good and she has completed her
training with proper attention.

We wish for her bright future.

Branch Manager

Name:

Signature:

Seal:

WORK PLACE TRAINING REPORT

FORMAT
1.Name Of The Student/Class: Neha Raghuwanshi(B.com final year 5th
sem)

2.Name Of The Father:Shri.H.S. Raghuwanshi

3.Name Of The College:Sarojini Naidu Govt Girls P.G.autonomous

college
4.Address Of Student&Phone:32 Naveen Nagar Bhopal (9009443766)

5.Name Of Guide: Dr.Deeksha Barde

6.Name &Address Of Institute:Co-operative bank (T.T NAGAR

BRANCH)

7.Progess Report Of Month August:

1.Work Given During Training:

2.Work Given In August Month:

3.work completed:

8.Remark Given By The Institute Manager About The Student:

1.Timing:

2.Dress&Behaviour:

3.To Follow The Rules Of The Organization:

4.Sincerety About Work Given:

5.Leadership Quality:

6.Progress Required For Student And What Efforts Have Done To:

7.Progress To Be Done Work Speed Of Work/Capacity Of Hearing Toward The

Work Given By Institution:

Signature:

Branch Manager/Seal

WORK PLACE TRAINING REPORT

FORMAT
1.Name Of The Student/Class: Neha Raghuwanshi(B.com final year 5th
sem)

2.Name Of The Father:Shri.H.S. Raghuwanshi

3.Name Of The College:Sarojini Naidu Govt Girls P.G.autonomous
college

4.Address Of Student&Phone:32 Naveen Nagar Bhopal (9009443766)

5.Name Of Guide: Dr.Deeksha Barde

6.Name &Address Of Institute:Co-operative bank (T.T NAGAR

BRANCH)

7.Progess Report Of Month September:

1.Work Given During Training:

2.Work Given In August Month:

3.work completed:

8.Remark Given By The Institute Manager About The Student:

1.Timing:

2.Dress&Behaviour:

3.To Follow The Rules Of The Organization:

4.Sincerety About Work Given:

5.Leadership Quality:

6.Progress Required For Student And What Efforts Have Done To:

7.Progress To Be Done Work Speed Of Work/Capacity Of Hearing Toward The

Work Given By Institution:

Signature:

Branch Manager/Seal