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“The great inventions that have

taken

place since the beginning of the time


are

THE FIRE, THE WHEEL


&
BANKING.”

- WILL
ROGERS
WHAT LED TO THE SET UP OF
CENTRAL

BANKS IN DIFFERENT
COUNTRIES?
v Lending and borrowing
v
v Its origin
v
v Definition of bank
v
v
CATEGORISATION :

1.Nationalized (government owned)


2.Private banks and
3.Specialized banking institutions.

Banking Regulation Act of India,


1949
FUNCTIONS OF A BANK:
1. Accepting Deposits from public/others
(Deposits)
2. Lending money to public (Loans)
3. Transferring money from one place to another
4. Credit Creation
5. Acting as trustees
6. Keeping valuables in safe custody
7. Investment Decisions and analysis
8.Government business
9. Other types of lending and transactions.
TYPES OF BANKS:
v Central Bank:
v Commercial Banks :
v Agricultural Banks :
v Foreign Exchange Banks :
v Public Sector Banks
v Private Sector Banks
v Co-operative Sector
v Development Banks/Financial Institutions:
Services provided by banks.
1.Easy banking.
2.Mobile /SMS banking.

3.Net /E-banking.

4.ATM’s (Automated

teller machines).
5.Proxy banking.

6.NRI services.


PROXY BANKING.

 A kiosk has been set up by ICICI Bank in


partnership with network n-Logue
Communications in remote villages .

 Reasons?

 Benefits?

NRI services.

Almost all the Indian Banks provide services to


the NRIs.

 Non-Resident (Ordinary) Account - NRO A/c
 Non-Resident (External) Rupee Account - NRE
A/c
 Non-Resident (Foreign Currency) Account -
FCNR A/c

Mobile /Sms banking.
 “The account that travels with
you.”
 Hottest area of development in
the banking sector.
 System works –SMS/ WAP.
 BENEFITS:
 -Bill payments.
 -Fund transfers.
 Cheque payment

NET / E-BANKING.
 Conducting banking
Online.
 Hardly 10 per cent of
Indian customers
uses the internet for
banking.
 Max. use-only for
checking balanc es
& requesting issue
of new cheque
books.
Services:
- (A)Queries::

 Check Balance
 See Statement
 Inquire about cheque status.
 Ask for a statement , see Demat A/c.etc.

-(B)Transactions:

 Shop online,pay credit card dues,


 Stop a cheque,
 Transfer funds between accounts/ third party,etc.

7 P’s of banking sector.
 PRODUCT MIX.
 PRICE MIX .
 PLACE MIX.
 PROMOTION.
 PEOPLE.
 PROCESS.
 PHYSICAL EVIDENCE.
PRODUCT MIX

 Saving’s a/c offerings:  Credit cards offerings:


-ATM network.
-Rewards.

-7 day banking


-Dial-a-draft.

-iconnect net banking.


-Credit limit increase.

-24 hours ATM

-Photo card.

-Overdraft facility.
Price mix

ATM card issue. Free-2 ATM cards


issued free if it is a joint
account
Add-on card Rs.100 –beyond 2
cards.
Duplicate card. Rs. 100.
contd…

CURRENT A/C SAVINGS A/C.


Transaction charges nil Nil
Issue of a new
cheque book
nil Nil.
Account closure Rs 100. Rs.100.

Rs 25.per page.
Issue of duplicate Rs.25 per page
statement
PLACE MIX.

 Factors affecting the location analysis of a bank:
 1. The trade area
 2. Population characteristics
 3. Commercial structure
 4. Industrial structure
 5. Banking structure
 6. Proximity to other convenient outlets
 7. Real estate rates
 8. Proximity to public transportation
 9. Drawing time
PROMOTION MIX.
 Two of the fastest
growing modern
tools of
communicating with
the customers are:
 1. Internet Banking
 2. Mobile Banking .
People and Process mix.
 Eg.of PROCESS MIX:
 Let’s take for example the
process for application for a
car loan.
 Now this mainly involves 3
things:
 1. Producing of proper
documents.
 2. Filling up of application
form.
 3. Paying for the initial down
payment .
PHYSICAL EVIDENCE.
 Eg.of HSBC BANK.(HONG KONG
SHANGAI BANKING
CORPORATION).
CASE STUDY-I
 COMPLAINT
HANDLING-HDFC
bank.

-Explanation.
-Complaint resolution

model.

CASE STUDY –II.

 The Consumers Association with the bank.


 (ICICI bank).
-Explanation.

-Analysis of the case.(RATER Analysis).


CAREER
OPPORTUNITIES.
 CAREER PROSPECTS.

 REMUNERATIONS.

 EDUCATIONAL QUALIFICATIONS.

 VARIOUS OCCUPATIONS.


FUTURE PROSPECTS OF BANKS
 OVERVIEW.
 RISK MANAGEMENT.
 CONSOLIDATION.
 GLOBALISATION.
 TECHNOLOGY.
 REGULATIONS
 SKILLED MANPOWER.
CHALLENGES.
 Market disipline.
 Adopting international
standards.
 Technology banking.
 Rural banking.
 HRD in banks.
CONCLUSION.

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