BANKING AWARENESS MATERIALS PART-I

Transcription

1 BANKING AWARENESS MATERIALS PART-I ALL THE BEST... P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 1

2 TYPES OF BANKS:- 1. Nationalized banks (PSB s) 2. Scheduled banks (Private SB s) 3. Regional rural banks 4. Co-operative banks 5. Foreign banks 6. Industrial banks TOTAL NO. OF NATIONALIZED BANKS IN INDIA:- =27 (NB S-20+SBI1+SBI Asso-5+BMB-1) NATIONALISED BANKS 1. Allahabad Bank 2. Andhra Bank 3. Bank of Baroda 4. Bank of India 5. Bank of Maharashtra 6. Bhartiya Mahila Bank 7. Canara Bank 8. Central Bank of India 9. Corporation Bank 10. Dena Bank 11. IDBI Bank 12. Indian Bank 13. Indian Overseas Bank 14. Oriental Bank of Commerce 15. Punjab National Bank 16. Punjab & Sind Bank 17. Syndicate Bank 18. UCO Bank 19. Union Bank of India 20. United Bank of India 21. Vijaya Bank SBI AND ASSOCIATE BANKS 22. State Bank of India 23. State Bank of Bikaner & Jaipur 24. State Bank of Hyderabad 25. State Bank of Mysore 26. State Bank of Patiala 27. State Bank of Travancore (State Bank of Saurashtra (merged into SBI in 2008) State bank of Indore (merged into SBI in 2010)) P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 2

3 TOTAL NO. OF PUBLIC SECTOR BANKS IN INDIA:- =28 (27+RBI 1) COMMERCIAL BANKS:- It means the bank accepting deposits from public and lending loans to customers from that. Profit or business motive banks are called commercial banks PLASTIC CARDS: - (ATM CARDS) 1. Debit card 2. Credit card LIST OF SERVICES AVAILABLE IN ONLINE BANKING:- 1. Check the account balance 2. Mini statement or account statement download or view options. 3. To open online deposits (fixed or term) and closure of the deposits. 4. To transfer money to another person s through NEFT / RTGS. 5. To transfer money to within own accounts ( like jewel loan / Over draft loan or any other loans attached in his accounts) 6. To pay utility payments like telephone bill, water tax, electricity bill, mobile recharge, donations, insurance premium etc., 7. To pay income tax through online banking 8. To give request of new cheque book. 9. Stop payment of cheque (due to stolen of cheque, or wrong issued, or paid in cash reasons etc., ) P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 3

4 ONLINE BANKING:- Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secured website operated by the institution, which can be a retail bank, virtual bank, credit union or building society. It means the customer can operates his own accounts through net banking in his home or office anywhere independently. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 4

5 GREEN CHANNEL COUNTER: One customer who pays the amount or transfers his money through card swipe machines in bank. They need not to wait in a Q, no paper work, within a minute process and time saved to both customers and banker. (This service available in few banks only-sbi, CUB etc) WHITE LABEL ATM:- Non banking financial institutions start and maintain ATM s for all bank customers. There no bank logos in that ATM and each and every transaction they will be charged. In India some of the NBFC s running the white labels ATM s- TATA Communications, Muthoot fin corp., TYPES OF FUND TRANSFER THROUGH NET BANKING:- 1. NEFT-National Electronic Fund Transfer, Working timing- 9am to 6pm, Minimum limit-rs.100 & Maximum limit-rs.2 lac, Settlement time-min 1 hour to Max 24 hours. Charges depending upon the banks. 2. RTGS-Real Time Gross Settlement, Working timing- 9am to 4pm, Minimum limit- Rs.2 lac & Maximum limit-no limit, Settlement time- Immediately. Charges depending upon the banks. PAN CARD:- Permanent Account Number. It is must for Income tax filing. And also above Rs.25000/- in all transactions the bank needed his Customer PAN Number. It is very useful to controlling the tax avoidance. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 5

6 MENU S IN ATM:- 1. Withdraw cash/ fast cash withdrawal 2. Fund transfer 3. Check the balance 4. Mini statement view /print 5. Cheque book request 6. Cash Deposit 7. Change Pin number 8. Register Mobile number / Change mobile number 9. Utility payments 10. Top up pre-paid mobile account P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 6

7 TYPES OF ACCOUNTS:- 1. Savings bank account 2. Current account 3. Deposit account 4. Loan account 5. Salary account 6. BSBD Account BANKING AWARENESS 2014 TYPES OF DEPOSIT ACCOUNTS:- 1. Fixed deposit 2. Term deposit 3. Recurring deposit (RD) TYPES OF LOAN ACCOUNTS:- 1. Personal loan 2. Medical loan 3. Agricultural loan 4. Vehicle loan 5. Housing loan 6. Loans against Gold and ornaments 7. Loans against property 8. Business loan 9. Building Construction loan 10. Education loan P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 7

8 WHAT ARE ALL THE DOCUMENTS NEEDED FOR OPENING A ACCOUNT IN BANK? 1. Address proof (any proof mentioned the address of the resident) 2. Identity proof (any proof photo identity of the person) 3. PAN Card (if necessary) 4. Introducer sign 5. Nominee registration 6. Recent Photographs IFSC CODE:- IFSC means Indian Financial System Code. The Indian online payment systems like NEFT and RTGS requires IFSC code to locate the branch in which transaction is to be done. These code are directly used by RBI (Reserve Bank of India) to facilitate various interbank transactions. A IFSC Code contains 11 characters for example ICIC MICR CODE :- Magnetic ink character recognition (MICR) is a character-recognition technology used mainly by the banking industry to ease the processing and clearance of cheques and other documents P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 8

9 OTP MEANING:- Its abbreviation of one time password. It is a text message send by the bank to his customers to their registered mobile number. OTP is must for complete the transaction in online banking and debit/credit card payments etc. It is 4 digit number passwords and its used for a customer security purpose. An OTP helps to protect against online fraud. FOREIGN EXCHANGE The exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX." Example: - 1 US Dollar equals=62.46 Indian Rupee FOREIGN EXCHANGE CONTROL:- 1. FERA ACT 2. FEMA ACT 3. FEDAI FERA ACT :- The Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973 by the government of Indira Gandhi and came into force with effect from January 1, FERA imposed stringent regulations on certain kinds of payments, the dealings in foreign exchange P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 9

10 and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. [1] The bill was formulated with the aim of regulating payments and foreign exchange FEMA Act :- The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA became an act on the 1st day of June, FEMA was introduced because the FERA didn t fit in with post-liberalisation policies. A significant change that the FEMA brought with it, was that it made all offenses regarding foreign exchange civil offenses, as opposed to criminal offenses as dictated by FERA. FEDAI :- Established in 1958, FEDAI (Foreign Exchange Dealers' Association of India) is a group of banks that deals in foreign exchange inindia as a self regulatory body under the Section 25 of the Indian Company Act (1956). FEDAI guidelines play an important role in the functioning of the markets and work in close coordination with Reserve Bank of India (RBI), other organizations like Fixed Income Money Market and Derivatives Association (FIMMDA), the Forex Association of India and various other market participants. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 10

11 DIFFERENCE BETWEEN DEBIT CARD AND CREDIT CARD:- S.NO DEBIT CARD CREDIT CARD 1 We use money only which is available in the account (Example. If account balance shows Rs.5000 means we have to use that limit only. We can t able to use above Rs.5000 We use money which is more than the available in the account (Example. If account balance shows Rs.5000 means we have to use more than Rs.5000 (eg.rs.12000). The difference amount of Rs.7000 will be re-paying with in credit days like 45 days. DIFFERENCE BETWEEN CHEQUE AND DEMAND DRAFT:- S.NO CHEQUE DEMAND DRAFT Valid for 3 months Issued by individuals Its Uncertainty (either money in the account or insufficient fund) Its Issued by individuals to banks Valid for 3 months Issued by banks Amount hold by banks. So its certainty. Its Issued by banks to banks P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 11

12 DIFFERENCE BETWEEN CURRENT ACCOUNT AND SAVINGS ACCOUNT:- S.NO SAVINGS ACCOUNT CURRENT ACCOUNT 1 To open for individual persons. We can t open SB A/c by organization names. To open for individual persons, business organizations, companies, business peoples. 2 Overdraft facilities not available for this account Overdraft facilities is available for this account 3 debit card issued to this account credit card issued to this account 4 Loans did not provide for this account Loans provided for this account 5 6 Deposits interest available in this account (4%) Cheque book, demand drafts charges applicable for this account deposits interest not provided to this account Cheque book, demand drafts charges not applicable for this account P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 12

13 ABOUT RBI:- RESERVE BANK OF INDIA RBI stands for Reserve bank of India RBI was enacted on 1934 and it started its operations from 1st april 1935((78 years ago). It was started by the recommendation of Hilton-Young Commission. In 1949 R.B.I. was nationalized. HQ-MUMBAI (Mahatrastra) Present Governor-Raghuram Rajan FUNCTIONS OF RBI :- Monetary Policy Monetary policy is process by which RBI controls the supply of money for the purpose of promoting economic growth and financial stability. Issue of Currency RBI issues new currency and also destroys old currency which is not fit for circulation. Banker s Bank RBI is banker of all the banks and all the banks operating within country has account with RBI Regulator and Supervisor of banking system RBI is regulator and supervisor of all the banks. Its role is to maintain financial stability and public confidence into banking system. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 13

14 Manager of foreign exchange RBI plays a key role in the regulation & development of foreign exchange market.it ensures smooth conduct of the domestic foreign exchange market and manage the foreign currency assets and gold reserve for the country. DEVELOPMENTAL ROLE :- Development of Agriculture RBI provides special attention for credit need for agriculture and allied activities through NABARD and regional rural banks. Development of industries RBI provides adequate and timely availability of credit to small,medium and large industries through IDBI,ICICI,SIDBI etc.. HOW CAN RBI CONTROLS COMMERCIAL BANKS IN INDIA? RBI Controls the banks through the following rates, 1. REPO RATE 2. REVERSE REPO RATE 3. BANK RATE 4. MARGINAL STANDING FACILITY RATE 5. SAVINGS DEPOSIT RATE 6. CASH RESERVE RATIO 7. STATUTORY LIQUIDITY RATIO P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 14

15 SEBI Securities exchange board of India Established in 1988, and legally formed at 1992, April 12 HQ-MUMBAI (Mahatrastra) Chairman- Upendra Kumar Sinha MAJOR FUNCTIONS :- to protect the interests of investors in securities; to promote the development of Securities Market; to regulate the securities market and for matters connected therewith or incidental thereto. IRDA Insurance Regulatory and Development Authority A Chairman,-(T.S. Vijayan) HQ-Hyderabad (Andhra pradesh) Established in 1999 and amended on P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 15

16 ROLES & FUNCTIONS OF IRDA :- It provides a certificate of registration to a life insurance company It is responsible for the renewal, modification, withdrawal, suspension or cancellation of this certificate of registration It frames regulations on protection of policyholders' interests. It offers policyholders the right to voice their complaints against insurers or insurance companies. The IRDA has set up the grievance redressal cell to take up the complaints of the policyholder. It regulates the investment of funds by insurance companies; It adjudicates disputes between insurers and intermediaries or insurance intermediaries P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 16

17 AADHAAR CARD:- Aadhaar is a 12-digit unique identification number issued by the Indian government to every individual resident of India. The Unique Identification Authority of India (UDAI), which functions under the Planning Commission of India, is responsible for managing Aadhaar numbers and Aadhaar identification cards. It is formed on January, 2009 and HQ at NEW DELHI. Chairman of UDAI is NANDAN NILEKANI. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 17

18 MOBILE BANKING:- Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant. P r e p a r e d b y S H I N E S C H O O L O F B A N K I N G Page 18