copy of com bank

7/26/2019 Copy of Com Bank

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Functions of Commercial Banks

i) Primary functions, and

ii) Secondary functions including

agency functions.Primary functions:

The primary functions of a commercial

bank include

a) accepting deposits; and

b) granting loans and advances;


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Dierent modes of Acceptance of Deposits

i) Current deposit

ii) Saving deposit iii) Fied deposit

iv) !ecurring deposit

v) "iscellaneous deposits

Dierent methods of Granting Loansby Bank

Cash credit

#oans $ank overdraft, and

%iscounting of $ills


3/23

econdary functions

&ssuing letters of credit, travellers che'ues, circular notes etc.

(ndertaking safe custody of valuables, important documents,and

securities by providing safe deposit vaults or lockers; Providing customers ith facilities of foreign echange.

Transferring money from one place to another; and from one

branch to another branch of the bank.

Standing guarantee on behalf of its customers, for making

payments for purchase of goods, machinery, vehicles etc. Collecting and supplying business information;

&ssuing demand drafts and pay orders; and,

Providing reports on the credit orthiness of customers.


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Agency er!ices

Collection and payment of che'ues and bills on behalf of the

customers;

Collection of dividends, interest and rent, etc. on behalf of

customers, if so instructed by them; Purchase and sale of shares and securities on behalf of

customers;

Payment of rent, interest, insurance premium, subscriptionsetc.

on behalf of customers, if so instructed; *cting as a trustee or eecutor;

*cting as agents or correspondents on behalf of customers for

other banks and +nancial institutions at home and abroad.


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General utility ser!ices

&ssuing letters of credit and travellers che'ues;

(nderriting of shares, debentures, etc.;

Safe-keeping of valuables in safe deposit locker; (nderriting loans oated by government and

public bodies Supplying trade information andstatistical data useful to customers;

*cting as a referee regarding the +nancialstatus of customers;

(ndertaking foreign echange business.


6/23

C#*SS&F&C*T&/0 /F $*01S C*0 $2%/02 &0 "*03 4*3S.

$*S2% /0 F(0CT&/0&05 C/""2!C&*# $*01S

C/-/P2!*T&62 $*01S

%262#/P"20T $*01S

!2S2!62 $*01 /F &0%&*


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C/""2!C&*# $*01S SC72%(#2% $*01S

0/0-SC72%(#2% $*01S

SC72%(#2% $*01S /02 47&C7 &S !25&ST2!2% &0 T72 SC72%(#2 /F

!$&.

C/"2 (0%2! P(!6&24 /F 6*!&/(S C!2%&T

C/0T!/# "2*S(!2S /F !$&. !28(&!2% T/ "*&0T*&0 C2!T*&0 "&0&"("

$*#*0C2 4&T7 !$&.

20T&T#2% T/ $/!!/4 F!/" !$&.


8/23

P($#&C S2CT/! C/""2!C&*# $*01S ST*T2 $*01 /F &0%&* *0% &TS

S($S&%&*!&2S; 9: 0*T&/0*#&S2%

$*01S;

P!&6*T2 S2CT/! C/""2!C&*#$*01S

/T72! &0%&*0 SC72%(#2% $*01S T7*T%/ 0/T F*## &0 T72 *$/62 5!/(P


9/23

0/0-SC72%(#2% $*01S

T7/S2 47&C7 *!2 0/T &0C#(%2% &0SC72%(#2 /F !$&

T723 *!2 0/T 20T&T#2% T/ $/!!/4&05S*0% !2%&SC/(T&05 F*C&T&2S F!/" !$&

$*S2% /0 /402!S7&P

0*T&/0*#&S2% $*01S

P!&6*T2 $*01S

F/!2&50 $*01S

C/-/P2!*T&62 $*01S


10/23

2nactment of $anking !egulation *ct.


11/23

"erchant banker

"erchant Bankeris de+ned as, anyperson ho is engaged in the business ofissue managementeither by making

arrangement regarding selling, buying orsubscribing to securitiesas "anager,Consultant, *dviser orrendering corporateadvisory service in relation to such issue

management.

"erchants bankers are governed by the #B$%"erchant Bankers& 'ules( )**+,


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"-.-AL F-/D> "utual Fund oDersinvestors a proportionate claim onportfolio of assets that uctuates in

value ith the value of the assetsthat make up the intermediariesportfolio.

permitted to oat subsidiaries as"utual Funds.


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'#.A$L BA/0$/G> Commercial banksin &ndia are increasingly taking upretail banking as an attractive

market segment ith opportunitiesfor groth and for pro+t.

'etail bankingrefers to housing

loans, consumer loans for purchaseof consumer goods.

The loan values can average beteen!s.9:,::: to !s crore.


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ATMs: (Automated Teller Machines, or

ANY TIME MONEYas one bank has

been wittily advertising) have emerged as

an alternative banking channel which

facilitate low cost banking transaction.

Bank customers need not go to the bank

branches but can withdraw money and

deosit checks in ATMs


15/23

A/1 23#'# BA/0$/G> *ny here $anking is the nesystem of banking adopted and made popular by a fe

foreign banks and is no being increasingly adopted byPS$ s. This facility is a technology based customer

friendly service for the convenience of customers. (nder Any 2here Banking,a customer having an

account ith any select branch can operate it from otherdesignated branches of the bank through out the country.

The facility includes cash ithdraal, cash deposit,transfer of funds, collection of local checks, intra4city(and inter4citytransactions, etc.

0o distance is no hindrance and banking is made moreconvenient , herever the consumer may reside.

5


16/23

e-banking


17/23

Fund transfer

1ou can transfer any amount from one accountto another of the same or any another bank,

Customers can send money any6here in $ndia,7nce you login to your account( you need tomention the payees8s account number( his bankand the branch, .he transfer 6ill take place in aday or so( 6hereas in a traditional method( it

takes about three 6orking days, $C$C$ Bank saysthat online bill payment ser!ice and fundtransfer facility ha!e been their most popularonline ser!ices,


18/23

A." Card

Sometimes called cash cards, they

allo the cardholder to ithdracash from an *T" machine afterentering a P&0 that is speci+c to the

card. Some cards may only be usedin an *T" but most are combinationdebit, *T" and che'ue guarantee

cards.


19/23

C'#D$. CA'D

&t is a card entitling its holder to buygoods and services based on theholderEs promise to pay for these

goods and services. The issuer of thecard grants a line of creditto theconsumeror the user) from hich

the user can borro money forpayment to a merchantor as acash advanceto the user
http://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Line_of_credit


20/23

%iDerence beteen %ebit card G

Credit card.

debit card H decrease in credit balance ofbank aIc of a account holder.

credit card H increase in debit balance of

bank aIc of a account holder. these cardsare used in the same ay, but in the caseof debit card e ould have amount inthe account and in the case of credit card

no need to maintain amount in theaccount but e have to pay after billpayment to the banker.


21/23

.o use a debit card a person must ha!e su9cientamount in hisher account and shopping is limited tothe amount a!ail in the account( it cannot bee;ceeded, From debit card the amount istransacteddebited at the !ery moment as and 6hen

it is utili days


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#lectronic funds transferor #F.

!efers to the computer-basedsystems used to perform

+nancial transactionselectronically.The term is used for a number ofdiDerent concepts>

Cardholder-initiated transactions,here a cardholder makes use of apayment card.
http://en.wikipedia.org/wiki/Computerhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Payment_cardhttp://en.wikipedia.org/wiki/Payment_cardhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Computer


23/23

#mail "oney .ransfer%#".&

&t is a funds transferservice beteenpersonal accounts at participating

Canadian +nancial institutions. Theprovider of this service is CertaPay, adivision of *csysCorporation. &f

your bank is in Canada you ill beable to send the orldEs +rst,interbank - based &nterac 2mail

"oney Transfers
http://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Acxsyshttp://en.wikipedia.org/wiki/Acxsyshttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Giro

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