BANKING SERVICES IN INDIA I.HISTORY OF BANKING IN INDIA There are three different phases in the history of banking in India.

1) Pre-Nationalization Era. 2) Nationalization Stage. 3) Post Liberalization Era. 1) Pre-Nationalization Era: In India the business of banking and credit was practices even in very early times.The remittance of money through Hundies, an indigenous credit instrument, was very popular.The hundies were issued by bankers known as Shroffs, Sahukars, Shahus or Mahajans indifferent parts of the country. The modern type of banking, however, was developed by the Agency Houses ofCalcutta and Bombay after the establishment of Rule by the East India Company in 18th and 19thcenturies. During the early part of the 19th Century, ht volume of foreign trade was relativelysmall. Later on as the trade expanded, the need for banks of the European type was felt and thegovernment of the East India Company took interest in having its own bank. The government ofBengal took the initiative and the first presidency bank, the Bank of Calcutta (Bank ofBengal)was established in 180. In 1840, the Bank of Bombay and IN 1843, the Bank of Madras was alsoset up.

In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMATACCOUNTANCY System to regulate and to improve stock investing. As on date, to trade onshares it has become compulsory to have a share demat account and all trades take place throughdemat. How to Operate DEMAT ACCOUNT?

One needs to open a Demat Account with any of the branches of the bank. Afteropening an account with any bank, by filling the demat request form one can handover thesecurities. The rest will be taken care by the bank and the customer will receive credit of sharesas soon as it is confirmed by the Company/Register and Transfer Agent. There is no physicalmovement of share certification any more. Any buying or selling of shares is done via electronictransfers. 1)If the investor wants to sell his shares, he has to place an order with his broker and give aDelivery Instruction to his DP (Depository Participant). The DP will debit hi s accountwith the number of shares sold by him. 2)If one wants to buy shares, he has to inform his broker about his Depository Account Number so that the shares bought by him are credited in to his account. 3)Payment for the electronic shares bought or sold is to be made in the same way as in the case of physical securities. BANKING SERVICES IN INDIA IV. BANKING SERVICES Banking covers so many services that it is difficult to define it. However, these basic services have always been recognized as the hallmark of the genuine banker. These are The receipt of the customers deposits The collection of his cheques drawn on other banks The payment of the customers cheques drawn on himself There are other various types of banking services like: 1)Advances Overdraft, Cash Credit, etc. 2)Deposits Saving Account, Current Account, etc. 3)Financial Services Bill discounting etc. 4)Foreign Services Providing foreign currency, travelers cheques, etc. 5)Money Transmission Funds transfer etc. 6)Savings Fixed deposits, etc. 7)Services of place or time ATM Services. 8)Status Debit Cards, Credit Cards, etc.

BANKING SERVICES IN INDIA Customer Services in Commercial Banks: Customer service is the service provided in support of a banks core products.Customer service often includes answering questions; handling complaints. Customer servicecan occur on site (as when an onstage employee helps a customer or answers a question) or it canoccur over the phone or the Internet. Quality customer service is essential to building cordialcustomer relationship. Banking being a service industry, a lot depends on efficient and prompt customerservice. Customer service is the most important duty of the banking operations. Prompt andefficient service with smile will develop good public relations reduce complaints and increasebusiness. Why is Customer Service Important? Changing customer expectations: Today the customer is more demanding and more sophisticated than he or she was thirty years ago. The increased importance of customer service: With changing customer expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services. The need for a relationship strategy: To ensure that a customer service strategy that will create a value preposition for customers should be formulated implemented andcontrolled. It is necessary to give it a central role and not one that is subsumed in thevarious elements of the marketing mix. The customer is the kingpim in growth organizations like commercial banks. Onlythose institutions which work according to his dictates will flourish. Quality, Consistency andDurability at low price are the final expectations of a customer. Quality will have to be unambiguous, of world class quality. Quality cannot be of minimum acceptable standards.Customer responsiveness must be quick and also competent. Speed, performance and cost willbe the new values mantra for success. BANKING SERVICES IN INDIA

The ten key areas of customers services to be attended timely and regularly are: i.Submission of statement of A/Cs to customers ii.Updating of savings pass books. iii.Teller system efficiency. iv.Cleanliness and Upkeep of premises. v.Intermediate Credit for institution cheques/land bills. vi.Advance intimation to customers for rewards of Term Deposits Receipts on maturity. vii. Advance for Debit/credit to accounts. viii.Punctuality of staff.