BANKING ALLIED

SERVICES
By
S.Upendra
P.Srinivasula reddy
R.Hemanth kumar
Arun Sanghi
Shreyas
Banking Allied Services
Banks offer other services apart from its core
services and they are mainly categorized into
Personal banking services
Business banking services
SME banking services
Mutual fund services
Corporate banking services
Other services
Personal Banking
Services
Forex services
Wealth management services
Demat services
Cards
Insurance
Gold banking
Forex Services
The banks and other official institutions
facilitate the buying and selling of foreign
currencies. FX transactions typically involve
one party purchasing a quantity of one
currency in exchange for paying a quantity of
another. The foreign exchange market that we
see today started evolving during the 1970s
when world over countries gradually switched
over floating exchange rates.
Wealth Management
Services
Wealth management is an investment advisory
discipline that incorporates financial planning,
investment portfolio management and a
number of aggregated financial services. High
net worth individuals, small business owners
and families who desire the assistance of a
credentialed financial advisory specialist call
upon wealth managers to coordinate retail
banking, estate planning, legal resources, tax
professionals and investment management.
Demat services
Banks are offering Demat services to its
customers enabling them trade and ensure
free transferability of securities with speed
accuracy and security.
SBI,ICICI,HDFC and all other major commercial
banks are offering these services.
Cards
All the major banks offer credit and debit cards
which enables us to cash free shopping ,
mobile recharges , payments of bills ,
donations etc.
Banks along with other brands introduce cards
in order to provide convenient services and will
reward you with reward points which you can
redeem for products or services.
Apart from this you can withdraw money at
any of the atms at your convenience.
Insurance Services
All the major banks offers insurance services in
the field of life insurance , general insurance ,
motor insurance , ULIPs etc.
The Bank Insurance Model (BIM), also
sometimes known as Bancassurance, is the
term used to describe the partnership or
relationship between a bank and an insurance
company whereby the insurance company uses
the bank sales channel in order to sell
insurance products.
Gold Banking
Gold Deposit Scheme (GDS) is in the nature of
a fixed deposit in gold. The customers can
deposit their idle gold under GDS which will
provide them safety, interest earnings, tax
benefits and a lot more.
 
Corporate Banking
Services
Banks offer these services to the corporates in
the country . These services include:
Project Finance
Corporate Accounts Groups
Merchant Banking
Project Finance
It is a method of financing very large capital
intensive projects, with long gestation period,
where the lenders rely on the assets created
for the project as security and the cash flow
generated by the project as source of funds for
repaying their dues.
Merchant Banking
Banks provide the resources, convenience and
services to meet your needs by arranging
Foreign Currency credits through:
Commercial loans
Syndicated loans
Loans from Export Credit Agencies
Financing of Imports.
Business Banking
Services
Cash management
Trade services
Transaction banking
Investment banking
Custodial services
Online Services
Cash Management
Services
cash management is a marketing term for
certain services offered primarily to larger
business customers. It may be used to describe
all bank accounts provided to businesses of a
certain size, but it is more often used to
describe specific services such as cash
concentration, zero balance accounting, and
automated clearing house facilities.
Sometimes, private banking customers are
given cash management services. It includes
account reconciliation , balance reporting ,
sweep accounts , wire transfer etc.
Trade Services
Customers can effect remittances as well as
get their applications for issuance of Letters of
Credit and Bank Guarantees processed online.
This not only extends tremendous convenience
to the entire process, but also allows the
customer to enjoy the benefits of simplified
documentation, online verification of status
and savings in cost and time.
Other services include tracking of exchange
rates, advisory services..etc
Investment Banking
Banks assist public and private corporations in
raising funds in the capital markets (both
equity and debt), as well as in providing
strategic advisory services for mergers,
acquisitions and other types of financial
transactions. They also act as intermediaries in
trading for clients which in general assist in the
purchase and sale of stocks, bonds, and mutual
funds.
Custodial Services
Custody Services is one of the thrust areas of
operations of the Banks and is a key product
offered to Mutual Funds, Financial Institutions
and Corporates etc. The Banks has set up the
Custody Services group offering quality and
reliable custody services to the clients and has
in place a customized Information system, high
security storage vaults and premises for
processing / safekeeping securities.
Online Services
e-Transfer
Tie – Up With all major shopping sites
Train or Air Ticket Booking reservation facility
Recharge prepaid mobile conveniently
Trading in securities by integrating banking,
broking and Demat accounts.
SME Banking Services
The Banks finances for Small Business
activities which are of special significance to a
large number of people as many of these
activities can be started with relatively lower
investment and with no special skills on the
part of the entrepreneurs.
üGlobally, Small and Medium Enterprises (SMEs) form the
backbone of all economies in terms of contribution to economic
growth, employment and promotion of entrepreneurship.

üIn India, SME units account for nearly 40 per cent of industrial
production, close to 50 percent of exports and 45 per cent of
industrial employment. The significance of this sector cannot be
further emphasized.

üConcurrently, the importance of finance in escalating business

growth of this sector cannot be ignored in any way.
 SMERA
Rating
•SMERA Rating is an independent, third-party, comprehensive
assessment of the overall condition of the SME,
•conducted by SME Rating Agency of India Limited

•It takes into account the financial condition and several qualitative
factors that have bearing on credit worthiness of

•SMERA Rating categorizes SMEs based on size, so as to enable fair

evaluation of each SME amongst its peers

•An SME unit having SMERA Rating would enhance its market standing
amongst trading partners and prospective
•customers
Mutual Funds
A mutual fund is a professionally managed
type of collective investment scheme that
pools money from many investors and invests
it in stocks, bonds, short-term money market
instruments, and/or other securities.
Other Services
Locker facility
Demand drafts
e-Tax
e-Freight
Public provident fund
Centralized pension processing
Travelers cheques
Money transfer
RTGS / NEFT
Locker Facility & Demand
Draft
Locker facility
Offer Invaluable safety for your valuables
Providing for rent
Demand Draft
Written Order for making Payments
2 Types
 Sight Drafts
 Time Drafts
e-Tax & e-Freight
Retail and corporates pay direct and indirect
taxes through online from anywhere at any
time from the comforts of your office/home
without incurring any cost, saving time and
making available e-receipt for the tax paid
instantly.

“e–Payment of Railway Freight Scheme” has

been devised for corporates regularly
transporting goods (raw material/ finished
goods) through the Railways and making
payment of Railway freight.
Public Provident Fund
This Scheme introduced by Central
Government in 1968. The Scheme enables the
members of the public to make contributions to
the Fund and obtain Income Tax rebate under
the relevant provisions of the Income Tax.
The minimum amount is Rs.500 and the
maximum amount is Rs.70,000 for a period of
15 years can be extended in multiples of 5.
Loans will arranged after first year.
Centralized Pension
Processing
A pensioner can draw his/her pension from the
banks if he/ she is a Central/State Govt.
employee or Autonomous body which has
arrangement for pension payment with the
Banks.
Money Transfer
Banks are offering money transfer services
which enables us to transfer the money from
other countries to India.
Sending remittances to India for credit to your
account with banks or for your family is very
simple and convenient with wide foreign offices
network and correspondent banking
arrangement with about 600 banks worldwide.
RTGS/NEFT
Inter Bank Transfer is a special service that
allows you to transfer funds electronically to
accounts in other banks in India through:
National Electronic Funds Transfer: Funds are
transferred to the credit account with the other
participating Bank using RBI's NEFT service.
Real Time Gross Settlement: The RTGS system
facilitates transfer of funds from accounts in
one bank to another on a “real time” and on
“gross settlement” basis.
THANK YOU