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A bankis a financialinstitution whoseprimary activity is to act
as a payment agent forcustomers and toborrow and lend money.It is an institution for
receiving, keeping, andlending money
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Banks stuck to takingdeposits andadvancing loans
Then came to phaseof providing loans forspecific purposeslikehome loans,
educational loans etc.Recently banks came
out with newerproducts and services
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Wealth management Online banking Mobile banking ATM Insurance-Life, Auto, Home, Health Credit cards Online brokerage Forex cards Demat accounts Mutual fund Derivatives Multi-option deposit scheme Flexi deposits Certificates of deposit Core banking
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DematDematerialization of physical
stocks
SEBI mandates a demat account for share trading above 500 shares Must have a PAN no. for holding a DMAT A/c
Depository
Master electronicstorage vault. Eg:
NSDL, CSDL
DPs
Members of
depository.Offer DematAccounts to
investors
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Our Demat A/c iscalled abeneficiary a/c
with our DP has aClient ID no.Each DP has hisown ID no.
We need to knowboth the no. tomake transactions Just like bank A/c, we can have multiple
Demat A/cs
We can do so with the same DP or with
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Benefits :- Ease of transacting (No paper involved) Reduces the risk (loss in transit, theft) Less time involved Less cost involvedEg: ICICI Bank Demat Services boasts of an
ever-growing customer base of over 11.5 lakh
account holders
It represents our investments which hasmonetary value, so take care of youre a/c asyou would with your bank A/c
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Meant for fulfilling the foreignexchange needs of travelers
It is a magnetic strip based Pre-paid Card which offers you aconvenient way to carry your forexcash
Although the card may be in thebase currency i.e. currency withwhich it was loaded, you canwithdraw cash in the local currencyof the country you are in.
Eg: ForexPlus Card (HDFC)Travel Card (ICICI)Vishwa Yatra Foreign Travel
Card (SBI)
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A Forex Card takes awaythe hassles of goingaround Money changers
Eligibility:Different banks havedifferent variants..
Any bonafide citizen ofIndia who plans to travel
abroad except Nepal andBhutan
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A credit card is a cardentitlingits holder to buy goods and
services based on the holderspromise to pay for these goodsand services
Most credit cards are of thesame shape and size asspecified by the ISO 7810
standard
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An example of the front in atypical credit card:
1. Issuing bank logo2. EMV chip3. Hologram4. Credit card number5. Card brand logo6. Expiry Date
7. Cardholder's name
An example of the reverse side of
a typical credit card:
1. Magnetic Strip2.Signature Strip3.Card Security Code
http://en.wikipedia.org/wiki/File:CCardBack.svghttp://en.wikipedia.org/wiki/File:CCardFront.svg8/8/2019 38173098-Final-Banking (1)
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Credit cards are issued after an account has been approved by the creditprovider, after which cardholders can use it to make purchases at merchantsaccepting that card
The cardholder indicates his/her consent to pay, by signing a receipt with arecord of the card details and indicating the amount to be paid or by entering aPersonal identification number (PIN).
Electronic verification systems allow merchants to verify that the card is valid
and the credit card customer has sufficient credit to cover the purchase in a fewseconds, allowing the verification to happen at time of purchase. Theverification is performed using a credit card payment terminal or Point of Sale(POS) system with a communications link to the merchant's acquiring bank.
Interest Grace period is the time the customer has to pay the balance before interest is
charged to the balance Credit card issuers usually waive interest charges if the balance is paid in full
each month, but typically will charge full interest on the entire outstandingbalance from the date of each purchase if the total balance is not paid.
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Credit card system presents countlessopportunities for fraud
A huge black market in stolen credit cardnumbers, which are generally used quickly
before the cards are reported stolen Most internet fraud is done through the use ofstolen credit card information which is obtainedin many ways, either online or offline
Is there really a need for credit cards?
Americans are spending money they dont have,on things they dont need
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Bank on the move Facility extended to all Credit Card, Demat and Loan
customers.
Mobile Banking can be divided into two categories of
facilities
Alert facility: This facility informs customers promptly of
the significant transactions in their accounts wherever they
go.
Request facility: Request facility enables customers to ask
for account information.
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Request FacilityCustomers can ask for
Account balance Last three transactions in the account
Cheque status
Stop cheque instruction
Cheque book
Change customer primary account
View presented bills
Alert FacilityCustomers can subscribe for following events
Salary credit
Account getting debited by an amount specified by customer
Account getting credited by an amount specified by customer
Cheque return.
When customer balance rises above a limit.
When customer balance falls below a limit.
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Request Facility
Customers can ask for
Details of balance
Reward points available for redemption
Details of the last payment
Payment due date
Alert Facility
Due Date Reminder - Customers receive an alert five days prior to the due
date informing total and minimum amounts due and the payment due
date
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Mobile Banking Demat
Request Facility
Customers can ask for
Balance enquiry
Status of a transaction
Bill enquiry
ISIN enquiry
Alert Facility
Demat account getting credited
Demat account getting debited
Pledge creation
Pledge closure
Rejection of submitted instruction
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Mobile Banking Loans
Request Facility
Customers can ask for Amortization schedule
Income Tax Certificate - Provisional
Income Tax Certificate - Final
Copy of Loan Agreement
Alert Facility
Demat account getting credited
Demat account getting debited Pledge creation
Pledge closure
Rejection of submitted instruction
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Online banking (or Internet banking) allows customers toconduct financial transactions on a secure website operated by their
retail or virtual bank
Features offered :-
Balance Enquiry and Statement
Transaction History
Transfer Funds Online
Card-2-Card Fund Transfer
Use of Debit Card Online
Pre-paid Mobile Recharge
Payment of Utility Bills
Open Fixed Deposits and Recurring Deposits
Order a Demand Draft / Pay Order
Monthly Bank Account Statement by E-mail
Secure Mailbox
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General Insurance
Also known as non-life insurance, general insurance isnormally meant for:-
Travel InsuranceHealth Insurance
Motor Insurance
Home Insurance
Life Insurance
Long term insurance is so called because it is meant for a
long-term period which may stretch to several years or whole
life-time of the insured.
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Most Banks have 24 hr ATM network
ATMs located in commercial areas, residential localities, major petrol pumps,airports, near railway stations and other places which are conveniently
accessible to customers. User-friendly graphic screens with easy to follow instructions and interact with
customers in their local language for increased convenience
Features available on ATM
Cash Withdrawal:
Balance Enquiry
Mini Statement
Deposit Cash / Cheques
Funds Transfer
PIN Change
Payments
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Advanced investment advisory discipline that incorporates financial
planning and specialist financial services.
Key objectives are to provide high net worth individuals and families
with tailored retail banking services, estate planning, legal resources,
taxation advice and investment management, with the goal of sustaining
and growing long-term wealth.
Wealth Management Services
Analysing customers risk profile
Understanding customers present and future financial needs
Matching customers requirements with the available investment options
Explaining the risk inherent in such investments
Achieving the returns to fulfill customers financial objectives and goals.
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This all-new Deposit Scheme has integrated features of theSavings Deposit and Fixed Deposit, namely liquidity with higherinterest returns on surplus funds as fixed deposits.
HOW DOES THE SCHEME WORK
The depositor opens a Savings Bank Account with a minimumamount of Rs 10,000/- and will issue standing instructions tothe bank to maintain a certain predetermined balance throughout the tenure of the account and to transfer the surplus fundsover and above the said limit to a Fixed Deposit Account inmultiples of Rs 5,000/- with a minimum of Rs 5,000/- for a fixedmaturity period.
Whenever the outstanding balance in Savings Bank Accountgoes below the stipulated amount the gap will be bridged bytransfer of required funds from depositors Fixed DepositAccount in multiples of Rs 1,000.
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WHO CAN OPEN AN ACOUNT
All individuals, singly or jointly who are eligible to openSavings A/C .This scheme is also open to Non-ResidentIndians who are eligible to open an account as per or
existing rules and regulations.PERIOD OF DEPOSIT
The Fixed period will vary between 46 days to 5 years.In case of NRI Deposit, minimum period will be one year.
AMOUNT OF DEPOSIT A minimum Rs 10,000/- as a Savings Bank Account. A Minimum of Rs 5,000/ - as a Term Deposit (Fixed
Deposit), increased in multiples of Rs 5,000/-.
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RATE OF INTERESTAs applicable to Savings Bank Deposit and Fixed Depositin force from time to time.
Interest will be paid on a quarterly on the Fixed Depositaccount.
ADVANTAGES
Maximum Returns:
Money is no longer idle.As soon as the balance in your Savings Account crosses
the stipulated amount, the excess, in multiples of
Rs 5,000 will be transferred automatically to a higherinterest earning Fixed Deposit Account.The maturity of fixed or term deposits formed as a
result of transfer of money from the Savings Bankaccount will be for a minimum period of 46 days andthe interest will be calculated on simple interest ratebasis.
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Core banking is a general term used to describethe services provided by a group of networkedbank branches.
Bank customers may access their funds and othersimple transactions from any of the memberbranch offices.
Normal core banking functions will include depositaccounts, loans, mortgages and payments.
Banks make these services available acrossmultiple channels like ATMs, Internet banking,and branches.
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CBS - new jargon frequently used in bankingcircles.
The advancement in technology, especiallyinternet and information technology.
computer software is developed to perform coreoperations of banking like
recording of transactions
passbook maintenance interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done.
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This software is installed at different branches of bankand then interconnected by means of communicationlines like telephones, satellite, internet etc.
It allows the user (customers) to operate accounts fromany branch if it has installed core banking solutions . cut down time working simultaneously on different issues increasing efficiency
Egs. of CBS provider Finnacle- infosys Flexcel International- i-flex solutions,
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Personal loans are a unique retail loans productoffered by a number of banks to cater to distinctand diverse needs of the customers.
Secured and unsecuredloans are provided by
banks to its esteemed customers.
The main purpose of such a loan is to meet any kindof personal need or expense. A number ofpersonal loans like marriage loans, consumerdurable loans, festival loans are increasinglybecoming popular.
Easy loans are provided at attractive rate of interestfor widening the existing customer base.
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Various types of personal loans
Home loan Property loan Car loan Education Loan Farmer finance Marriage loan Pension loan Consumer durable loan
Festival loan Equipment loan
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A new deposit scheme combining the features ofCurrent account, Savings Bank a/c, TDR. The productproposes to give liquidity to the depositor with high
returns and convenience. It provides the depositor anautomatic overdraft facility in Current a/c and automaticwithdrawal of Term deposits in units through SB a/c.Depositor has to simultaneously open TDR / RID a/c forRs.1000/-, SB a/c with balance Rs.500/- and Current a/c.
Multi option deposit scheme
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A Mutual Fund is a trust that pools the savings of anumber of investors who share a common financialgoal.
The money thus collected is then invested in capitalmarket instruments such as shares, debentures andother securities.
The income earned through these investments andthe capital appreciation realized are shared by itsunit holders in proportion to the number of unitsowned by them.
Thus a Mutual Fund is the most suitable investmentfor the common man as it offers an opportunity to
Concept
Mutual fund
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Mutual fund operation
flow chart
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Benefits
Its systematic investment plan
There is less risk in mutual funds
Investor can easily change its scheme or patterns
Investor can easily check their value of money
Their is transparency in valuation
Investor get a bridge annual report
Tax benefit to investors
Investor can easily exit from fund
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Types of mutual fund
Open
ende
d
Close
ende
d
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Types of
scheme
SECTORSPECIFIC
Tax
scheme
GROWT
HSCHEME
INCOMEscheme
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THANK
YOU