INTRODUCTION

"The name bank derives from the Italian word “banco” which means "desk/bench", used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome-that of the Imperial Mint."

Origin of Banking

The first bank was probably the religious temples of the ancient world wherein gold was stored in the form of easy-to-carry compressed plates. Their owners justly felt that temples were the safest places to store their gold as they were constantly attended, well built and were sacred, thus deterring would-be thieves. There are extent records of loans from the 18th century BC in Babylon that were made by temple priests to merchants.

Ancient Greece holds further evidence of banking. Greek temples as well as private and civic entities conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could

1

“cash” the note in another city, saving the client the danger of carting coinage with him on his journey.

Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive.

The origin of banking in India can be traced back to almost the Vedic period. The transformation from pure money lending to proper banking appears to have taken place before the times of Manu. Manu, a great Hindu jurist, had devoted a section of his work explaining the deposits and advances and he even laid down certain rules on rates of interest.

Through-out Mauryan period and later on desi bankers played some role in the economy of the country. However, it was during the Moghul period that indigenous bankers started playing a vital role in lending money and financing of the foreign trade and commerce.

2

DEFINATION OF BANKAn organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks. Dictionary Meaning of banking as “Banking is an institution for lending, borrowing ,exchange , issuing or safeguarding money”

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).

“banking business" means the business of either or both of the following:

1. Receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;

2. Paying or collecting cheques drawn by or paid in by customers

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include

3

financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.

Section 5(c) of Banking Regulation Act,1949 defines banking as ,”Accepting , for the purpose of lending or investment of deposits of money from the public , repayable on demand or otherwise, and withdrawable by cheque , draft, order or otherwise”.

4

INTRODUCTION OF BANKBefore Independence

The first joint stock bank, namely The General Bank of India was established in 17Later on Bank of Hindustan and Bengal Bank came into existence.

East India Company established the following three banks, namely The Bank of Bengal in 1809, The Bank of Bombay in 1840, and Bank of Madras in 1843. They were collectively called Presidency Banks and were well functioning independent units.

The three banks established by the East India Company were amalgamated in 1920 and a new bank called Imperial Bank of India was established.

A number of private banks had been established by the businessmen from mid of the 19th century onwards. In the surchanged atmosphere of Swadeshi movement, a number of banks with Indian management, namely, Punjab National Bank Ltd., Bank of India Ltd., Canara Bank Ltd, Indian Bank Ltd. etc. were established.

The Reserve Bank of India was established as the Central bank of the country in 1935 under an act called Reserve bank of India Act. Later on with the passage of the Banking Regulation Act passed in 1949, RBI was brought under government control. Under this Act, RBI was conferred with supervision and control of the banks and licensing powers and the authority to conduct inspections was also given to it.

5

After independence

In 1955, the Imperial Bank of India was nationalised and was given the name “State Bank of India”. It was established under State Bank of India Act, 1955.

In 1960, RBI was empowered to force the compulsory merger of the weak banks with the strong ones. This led to reduction in the number of banks from 566 in 1951 to about 89 in 1969. On July 19, 1969, 14 major banks were nationalised.

In1980, another six banks were nationalised, and thus raising the number of nationalized banks to 20.

On the suggestions of Narsimham Committee, the Banking Regulation Act was amended in 1993 and thus the gates for the new private sector banks were opened.

Normally chartered accounting firms audit trading and manufacturing firms. The work of bank branch audit is a very specialized job and comes once in a year. Number of CA firms eligible for Bank audits are limited. Auditors should update their knowledge about RBI circulars as RBI

on monthly /yearly basis keep on revising its guidelines. Audit in this field should be done with extra precaution.

6

HISTORY:In the year 1971 the Government of Maharashtra acquired all agricultural land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. “New Bombay”. Acquisition of land for New Bombay project means compulsorily depriving several thousands of people of their means of livelihood. Though Government was paying them money as compensation, but they were away their land which was the only mean of livelihood for them.

To equip the project affected persons and their family members with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial assistance. CIDCO (City Industrial Development Corporation) was established by Government of Maharashtra for the purpose of development of infrastructure and city of New Bombay. Development of infrastructure requires plenty of resources like men, machines, earthmover, vehicles & money.

The idea of formation of Urban Co-operative Bank for the area was visualized in 1971 by a group of youngsters of Kalwa village, which is on the boundary of Thane – Belapur Belt. This group of youngsters were successful in running a Consumer Co-operative Society by name “Kalwa Consumer Co-operaive Society”. This group of youngsters, on their study-tour to Western Maharashtra, for study of co-operation, was fascinated by network and growth of cooperative societies and the role played by Urban Cooperative Banks in the development of that region.

7

he group of youngsters called a meeting of residents from Kalwa and nearby villages when they came back from their study tour. They collect the Share Money in December 1971 for the formation of the bank. Collection of share money was the most difficult task at that time. In a village where there were no banking facility available these youngsters started collection Rs. 50/- as contribution towards share capital. In year 1971 Rs.50/- was also a substantial amount, it took lot of efforts and hardship to collect the require numbers of members. In all 360 members came together for the formation of bank. The registration of “Parsik Janata Sahakari Bank Ltd.” was approved by Co-operative Department in the month of April, 1972, with registration number TNAK/BNK/160 dated 24th April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was named as “Parsik” because active jurisdiction of bank was the west side area of Parsik Hill, which has range from Kalwa to Belapur. Parsik is also mean Parshwanath (Lord Shiva), whose temple was existed on the hill as per history.

Founded on 21st May 1972, in a remote village in Kalwa (Thane District, Maharashtra), Gopinath Patil Parsik Janata Sahakari Bank enjoyed tremendous patronage right since the inception. Under the leadership of Shri. Gopinath Shivram Patil and other founding directors, the bank flourished and expanded its reach to Thane, Navi Mumbai, Pune and Nashik. With an inspiring deposit base more than Rs 1100 Crores, Gopinath Patil Parsik Janata Sahakari Bank is riding high on customer satisfaction and trust.

Currently operating through 33 fully-equipped branches and 1 Extension Counters. Gopinath Patil Parsik Janata Sahakari Bank is getting ready for the next phase of rapid expansion.

8

INTRODUCTION OF GOPINATH

PATI L PARSIK JANATA SAHAKARI BANK

Founded on 21st May 1972, in a remote village in Kalwa (Thane District, Maharashtra), GopinathPatilParsikJanataSahakari Bank enjoyed tremendous patronage right since the inception.Under the leadership of Shri.GopinathShivramPatil and other founding directors, the bank flourished and expanded its reach to Thane, Navi Mumbai, Pune and Nashik. With an inspiring deposit base more than Rs 1100 Crores, GopinathPatilParsikJanataSahakari Bank is riding high on customer satisfaction and trust. What is even more heartening is that the bank has helped many to meet their financial needs.

In the year 1971 the Government of Maharashtra acquired all agricultural land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. “New Bombay”. Acquisition of land for New Bombay project means compulsorily depriving several thousands of people of their means of livelihood. Though Government was paying them money as compensation, but they were away their land which was the only mean of livelihood for them.

To equip the project affected persons and their family members with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial

9

assistance. CIDCO (City Industrial Development Corporation) was established by Government of Maharashtra for the purpose of development of infrastructure and city of New Bombay. Development of infrastructure requires plenty of resources like men, machines, earthmover, vehicles & money.

The idea of formation of Urban Co-operative Bank for the area was visualized in 1971 by a group of youngsters of Kalwa village, which is on the boundary of Thane – Belapur Belt. This group of youngsters were successful in running a Consumer Co-operative Society by name “Kalwa Consumer Co-operaive Society”. This group of youngsters, on their study-tour to Western Maharashtra, for study of co-operation, was fascinated by network and growth of cooperative societies and the role played by Urban Cooperative Banks in the development of that region.

The group of youngsters called a meeting of residents from Kalwa and nearby villages when they came back from their study tour. They collect the Share Money in December 1971 for the formation of the bank. Collection of share money was the most difficult task at that time. In a village where there were no banking facility available these youngsters started collection Rs. 50/- as contribution towards share capital. In year 1971 Rs.50/- was also a substantial amount, it took lot of efforts and hardship to collect the require numbers of members. In all 360 members came together for the formation of bank. The registration of “ParsikJanataSahakari Bank Ltd.” was approved by Co-operative Department in the month of April, 1972, with registration number TNAK/BNK/160 dated 24th April, 1972. The first branch office at Kalwa Naka was opened on 21st May, 1972.The bank was named as “Parsik” because active jurisdiction of bank was the west side area of Parsik Hill, which has range from Kalwa to Belapur (the famous Parsik Railway

10

Tunnel is situated in the same range). Parsik is also mean Parshwanath( Lord Shiva), whose temple was existed on the hill as per history.

HEADOFFICE INFORMATIONCurrently operating through 33 fully-equipped branches and 1 Extension Counters.GopinathPatilParsikJanataSahakari Bank is getting ready for the next phase of rapid expansion.

No. Director's Name Designation

1 Mr. Ranjit G. Patil Chairman

2 Mr. Devraj B. Patil Vice- Chairman

3 Mr. Jayram K. Patil Director

4 Mr. Namdev B. Patil Director

5 Mr. Dashrath D. Gharat Director

6 Mr. P.C. Patil Director

7 Mr.Gopinath B. Patil Director

8 Mr.Prakash N. Patil Director

9 Mr. Narayan G. Gawand Director

10 Mr.Kayyum R. Cheulkar Director

11 Mr.Pandurang D. Bunde Director

12 Mr.Ravindra K. Patil Director

13 Mr.Rupaji S. Khulat Director

14 Mrs.Rajashree P. Patil Director

11

15 Mrs.Shashikala D. Patil Director

16 Mr. A. R. Lahoti Banking Expert

17 Mr. Kesarinath B. Gharat Banking Expert

Headoffice

Arun.S.Dalvi (Senior manager )

Graduation in

Bsc. GDC and A. LL.M.

MBA(I&B)

Legal ,administration& grievance

12

TYPES OF SERVICES CBS ( Core Banking Solution)

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime Banking. All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services are:

To make enquiries about the balance; debit or credit entries in the account.

To obtain cash payment out of his account by tendering a cheque.

To deposit a cheque for credit into his account.

To deposit cash into the account.

To deposit cheques / cash into account of some other person who has account in a CBS branch.

13

To get statement of account

To transfer funds from his account to some other account – his own or of third party, provided both accounts are in CBS branches.

To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to his account.

All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards.

SMS Banking

SMS Banking Services are available for the customers of the Bank by using the SMS feature of the mobile phones customer can pull message like to know the latest balances and last 3 transactions in their accounts.

Apart from Customer pull operations Bank is also giving SMS alerts to the customer for clearance of cheques, maturity of terms deposits, return of the cheques, (I/W, O/W) Pending I/W cheque, Transaction of amount above Rs 5000.

ATM (Automated Teller Machine) Service:-

The Bank's 17 ATM of 14 branches of the Bank are connected to Central ATM Switch at Data Center and Customers are able to do all the transactions through any of the Branches of the Bank in Thane, Navi Mumbai & Pune. By using ATM Customer can transfter their fund from one Branch account to Other Branch account by ATM Link Process.

NEFT ( National Electronic Fund Transfer System )

Our Bank offers National Electronic Fund Transfer System (NEFT) for efficient, secured, economical and reliable system of

14

transfer of funds from bank to bank as well as from remitter’s account in our bank to the beneficiary’s account in another bank with in out country as well as in Nepal.

In this payment system instructions between banks are processed and settled on batch to batch basis at fixed times during the day. There is no minimum or maximum stipulated transaction value for using this facility. The Special feature of this system is that it is available in Nepal also.

RTGS ( Real Time Gross Settlement System)

Our Bank offers Real Time Gross Settlement System (RTGS) & National Electronic Fund Transfer System ( NEFT) for efficient, secured, economical and reliable transfer of funds from bank to bank as well as from remitter’s account in our bank to the beneficiary’s account in another bank with in the country.

An electronic payment system in which payment instructions between our bank and other banks are processed and settled individually and on a real time basis for transaction value of Rs 1 lac and above. Under normal circumstances the beneficiary bank’s branch receives the funds in real time as soon as funds are transferred by the remitting bank.

Note: RTGS systems work on all days except on Sunday and national holidays across the states.

15

QUESTIONNAIREQ.1 “Customer is always right” is it necessary for bank to always follow this policy?

Answer: - No. In case of wrong door customer is not right.

Q.2 How consistently you improve yourself to meet the needs of the customer?

Answer: -Let an innovative system like CBS, RTGS, NEFT, FUNDTR, ATM SYSTEM.

Q.3 Do you have any division for grading your customer?

Answer:-No .We don’t have any division for grading our customer.

Q.4 What is the level of motivation in the staff of the bank?

Answer:-Staff’s opinion is held in the consideration while making decision. Bonus facility is provided to staff.

Q.5 How much information technology are using in your day to day banking business?

16

Answer:-We have proper fund transfer NEFT-RTGS, ECS ATM.

Q.6 What kind of service you provide to your NRI customer?

Answer:-No Our bank not provide NRI facilities to customer.

Q.7 Do you have any protection system for detecting fraud or crimes?

Answer:-Cybercrime system beep firewall, computer security etc.

Q.8 What are your views regarding privatization ruling up and Indian banking sector?

Answer:-Privatization of Indian banking sector is must.

Q.9 What are main sources of income for your branch?

Answer:-Loans, advances deposit, mobilization, investors etc.

Q.10 Apart from deposits &loans what are different kinds of services you are having especially for corporate lines &for rural people?

Answer:-NEFT-RTGS, ECS Funds Transfer, ATM all over the India & Rupee cord.

17

Q.11 What are the ways to which customers /your own employees can give suggestion for improving the banking facilities?

Answer:-We offer suggestion from our customers & give order to staff to improve better service of bank.

Group experience

Our group had a great experience visiting the bank.

The bank was managed very efficiently including all the departments and the security.

The senior manager Mr.Dalvi co-ordinated with us in a very friendly manner, moreover we were introduced to the bank in a very effective manner

We were gently and completely Answered to the questionnaire.

We acquired a good knowledge about the functions of the bank

18

ConclusionThe bank provides various types of services like CBS, SMS banking, ATM, NEFT, and RTGS.

Bank doesn’t discriminate any customer; it also refers to opinions given by the customers for improving their facilities

The bank doesn’t provide any facility to NRI customer.

The bank has a good security system to protect cyber related crimes

Fact and figures Details (till 31.03.2011)

Share Holder : 65073

Employee : 467

Deposits : 1398.03 crore

Loans : 722.07 crore

Profit : 20.72 crore

Dividend : 15%

Audit Class : "A"

19

Bibliography

Primary data:-

Arun.S.Dalvi (Senior manager )

Graduation in

Bsc. GDC and A. LL.M.

MBA(I&B)

Legal ,administration& grievance

Secondary Data:-

www.gpparsikbank.com

20