BACKGROUND: The Royal Bank of Scotland (RBS) is one of the world's leading financial services providers and one

of the oldest banks in the United Kingdom (UK). Following the takeover of National Westminster Bank in 2000, the Group has continued to grow its business around the globe and, in addition to its strong UK presence, it has offices in Europe, the United States of America and Asia. By the end of 2002, it was the second largest bank in Europe and the fifth largest in the world by market capitalisation. In RBS itself was founded in Edinburgh, by royal charter, in 1727. It opened its first branch in Glasgow in 1783 and developed a large network of offices throughout Scotland during the nineteenth century. In 1874 it opened a branch office in London and from the 1920s developed, by acquisition, a major presence in England. By 1970, following the Royal Bank's merger with the Edinburgh-based National Commercial Bank of Scotland, comprising the former National Bank of Scotland (established 1825) and Commercial Bank of Scotland (established 1810), it enjoyed over forty per cent of Scotland's banking business. Under the Williams & Glyn's Bank banner, it also boasted a large and growing presence in England and Wales. In 1985 Williams & Glyn's merged fully with the Group's Scottish clearing bank which thereafter traded throughout Britain as a single entity, The Royal Bank of Scotland. During the 1980s the Group diversified, setting up an innovative car insurance company. During the early 1990s the Royal Bank refocused on its core business of retail banking. In 2000 the Royal Bank acquired National Westminster Bank which was the biggest takeover in the history of British banking. Now in 2012 RBS took over Aljameen Bank of Netherland, Amstardamsche

Rotterdamsche (ABN AMRO), which is considered the number one bank in India.

RBS has proved itself one of the best bank providing better facilities to the people of India as compared to the commercial banks. RBS has 75 branches in various cities of India.

RBS offers products in areas like Deposits, Saving and currents accounts, cash and cheque deposits, and loan facilities. Not only this, but it is also offering products as: Balance Transfer Facility (BTF) which in banking terminology is One Stop Payment Shop, 24 hour nonstop banking centre, relationship card through which customer can access to over 1000 ATMs, life insurance protection, E statements through which you can receive your BTF via email.

VISION, MISSION AND CORE VALUES RBS Vision Contributing to profit generating by reducing the amount of time employees spend on training activities and enabling employees to spend more time on revenue generating activities. Our Mission To create maximum economic value for our shareholders through a constant relationship focus on the financial services needs of our chosen clients segment and a strict adherence to our financial target.

Core Values: Customer Focus Relentless focus on understanding and fulfilling customer needs through superior service. Innovation Continually generate, validate and implement creative solutions to business challenges Integrity Uncompromising financial and intellectual honesty to the organization and oneself with relationships based on mutual trust and openness. Team-work Willingness to share the glory of achievements as well as responsibility for failure BUSINESS OPERATION Overview of the Departments: According to (personal communication, July 24, 2009) RBS Bahawalpur consists of the following departments:

Administration Department: The administration department of RBS lies in the basement. It has a main head that looks over all the functions like cleaning, maintenance of the building, issuance of certificates and transfer letters, keeping record of employees of all the departments, providing printing and fax facility etc. As the bank has installed cameras at various places so this department views all the persons going in and out of the bank from a television set.

Lockers: This is just a separate unit rather than department. It has a very important function to perform. It provides safety to the customers valuables like bonds and jewelry. Mostly three to four employees work there with proper knowledge about lockers. The doors of the department are not free to enter but are locked by automatic and well secured switches.

General Banking / Customer Services Department: The ground floor consists of general banking area which has a separate floor manager under whom various Customer service officers are working. This department provides a list of products like Balance Transfer Facility (BTF), Deposit facility, Locker facility, Credit Cards, ATM facility, Treasure Plus, Insurance benefits, Online banking and Non Stop Banking Service. The Manager of this department takes care of dress code and language of all employees working there.

Operations Department: This department is divided in to two main sections one which is directly dealing with the customers like account opening, cash transactions and cash transfer takes place over here. The second, has no direct customer dealing like issuing of pay order and demand drafts, telegraph transfer and daily reporting etc.

Legal Recovery: This department has a head, team manager and various customers handling staff. Basically this department recovers various loans (Auto Loan, Islamic Loans, Credit cards) from those clients / customers who do not pay off. In the list of customers who do not pay their money back to the bank can be of two types those who are

unwilling to pay and secondly defaulters. The department contacts these customers through telephone and firstly inform them that their case is in recovery so please contact bank and return the loan. Secondly if they do not turn up then the employees themselves visit the customers. This process consists of settlement letter, sending a waiver to the customers and then contacting lawyers.

Royal Preferred Banking (RPB): This department has the same structure and products as that of General banking but the main difference is that it deals with high profile customers who have account balance of more than 1 million. Here the upper level management meets the customers. The RBP clients are well sophisticated businessmen with high profits earning ability and are treated as Royal Customers. The environment of RPB is very peaceful and has various facilities for the customers like television, internet, magazines and newspapers.

Credit Initiation Unit (CIU): This is a top secretive department where entry is not so easy for every one. This department has a boss, two supervisors and other employees. Basically it checks and verifies all the documents of the customers who have applied for loan or credit card whether they are common customers or Royal ones. It is being sub divided in two portions the secure and the insecure one. In secure portion those loans are verified against which some collateral is granted by the customer like mortgage and auto loans. In case of non collateral loans like (credit cards and Balance Transfer facility) the secured portion is considered. The external and internal verification of documents is done in this department.

Fraud Risk Management: This is the subunit of CIU which keeps check and balance on the customers that if they are involved in any kind of fraudulent activity, fake documentation so in this way checking the integrity of a customer. The main focus of this department is on those clients who have requested for credit card, home or Auto loan. The case passes through the following threes steps as: vigilance, monitoring and investigation.

CLASSIFICATION OF DEPARTMENTS

Consumer branch structure: PBC Manager Branch Manager VG ARM / RM

Floor Manager Asset Sales Area manager Regional Manager

Organizational Structure of Branch Banking

Consumer Branch Head Ehsan ul Haq Ehsan

Floor Manager Ijlal Rahim

Operations Manager Sohail Majeed

Administration Manager Salman Qamar

Royal Preferred Banking Head Asif Muslim

Legal Recovery Head Mohd. Bashir

Credit Initiation Unit Head Adnan Mansoor

CUSTOMER SERVICES Deposit Facility Locker Facility Credit Cards ATM facility Online banking Insurance plans of RBS: Treasure Plus (Treasure Plus, 2009) is a kind of insured loan for childrens education Non-Stop Banking (NSBC):