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Chapter-1 INTRODUCTION TO BANKING IN INDIA

Finance is the life blood of trade, commerce and industry. Now-adays, bank money acts as the backbone of modern business. Development of any country mainly depends upon the banking system. The word Bank is originated from the German word Bank which means heap or mound or joint stock fund. From this, the Italian word banco meaning heap of money was coined. The English meaning of bank is prevalent today, i.e., as an institution accepting money as deposits for lending. A bank is an institution, which deals in money and credit. Thus, bank is an intermediary, which handles other peoples money both for their advantage and to its own profits but bank is merely a trader in money but also an important manufacturer of money. For a common person it may be just a storehouse where he may store his money; for a businessman it may be a financial institution and for a dayto-day customer it may be an institution where he can deposit his savings. Bank plays an important role in the economy of any country as they hold the saving of the public. Provides a means of payment for the goods and services and provide necessary finance for the development of

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business and trade. Bank may also be defined as a financial institution that links the flow of funds from savers to the users. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it. Banks no longer restricted themselves to traditional banking activities but explored newer avenues to increase business and capture new market. In the 1990s the banking sector in India saw greater emphasis being placed on technology and innovation. Banks began to use technology to provide better quality of services at greater speed.

Definition:

Bank is also defined as one who in ordinary course of business honors the cheques drawn upon him by person from and for whom he receives money on current accounts

Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, drafts, order or otherwise.

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Features of a banking company

1. Dealing in Money Bank is a financial institution which deals With other people's money i.e. money given by depositors.

2. Individual / Firm / Company A bank may be a person, firm or a company. A banking company means a company which is in the business of banking. 3. Acceptance of Deposit A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers. 4. Giving Advances A bank lends out money in the form of loans to those who require it for different purposes. 5. Payment and Withdrawal A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts; it also brings bank money in circulation. This money is in the form of cheques, drafts, etc. 6. Agency and Utility Services A bank provides various banking facilities to its customers. They include general utility services and agency services.

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7. Profit and Service Orientation A bank is a profit seeking institution having service oriented approach. 8. Ever increasing Functions Banking is an evolutionary concept. There is continuous expansion and diversification as regards the functions, services and activities of a bank. 9. Connecting Link A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money. 10. Banking Business A bank's main activity should be to do business of banking which should not be subsidiary to any other business. 11. Name Identity A bank should always add the word "bank" to its name to enable people to know that it is a bank and that it is dealing in money.

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BANKING SYSTEM
Bank safeguards money and valuable and provide loans, credit, and payment services such as checking accounts, money orders, and Cashiers checks. Banks also may offer Investment and insurance products, which they were once prohibited from selling. As a variety of models for co operation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role accepting notes and lending funds from these deposits. There are several types of banks which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits.

Banking in India In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India

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Banking service in India With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the service provided by banks has become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.

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History of banking in India

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now non-operational. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. Indias independence marked the end of a rule of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

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The Reserve Bank of India, India's central banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

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TYPES OF BANKS
There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types:

Types of Banks

Central Bank
Commercial Banks

Development Banks

Specialized Bank

Co-operative Banks

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CENTRAL BANK (RBI)

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. RBI is entrusted with the functions of guiding and regulating the banking system of a country. Such a bank does not deal with the general public. It acts essentially as Governments banker; maintain deposit accounts of all other banks and advances money to other banks, when needed. It advises the Government on monetary and credit policies and decides on the interest rates for bank deposits and bank loans. Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods. No other bank than the Central Bank can issue currency.

COMMERCIAL BANKS
Commercial bank is a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans. Commercial banks holds deposits for individuals and businesses in the form of checking and savings accounts and certificates of deposits of varying maturities while a commercial bank issues loans in the form of personal and business loans as well as mortgages. In addition to giving short-term loans, commercial banks also give medium-term and longterm loan to business enterprises.

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Public Banks
These are banks where majority stake is held by the Government of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda and Dena Bank, etc. The first nationalized or public sector bank of India was State Bank of India. It was nationalized in the year 1955. Subsequently many banks were nationalized in the year 1969 and some more in 1980.

Private Banks
In case of private sector banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. Private Banks in India started on 19th July 1969. The government of India had passed out the ordinance and nationalized 14 big commercial bank that include national bank, Allahabad bank, Canara bank and other public bank came up to take leading role in bank routines

Foreign Banks
Foreign banks are registered and have their headquarters in a foreign country but operate their branches in our country. Foreign banks are not new phenomena in India banking system. Standard charted banks started its operation in 1858 and citi banks opened its branch in India in 1902. However, globalization and economic policies implemented in late 1980 encouraged many international banks to open there branches here. Foreign banks in India bought the latest technology and banking practice

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OTHER BANKS
There are various other types of bank operated in India such as:

DEVELOPMENT BANKS
Business often requires medium and long-term capital for purchase of machinery and equipment, for using latest technology, or for expansion and modernization. Such financial assistance is provided by Development Banks. Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs) are examples of development banks in India.

SPECIALIZED BANKS
There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are called specialized banks.

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Off-Shore Banking
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax heaven) that provides financial and legal advantages. These advantages typically include: greater privacy (see also bank secrecy , a principle born with the 1934 swiss banking act) low or no taxation (i.e. tax heaven) easy access to deposit (at least in terms of regulation) protection against local political or financial instability

Retail Banking
Retail banking refers to banking in which banking institution execute transactions directly with consumers, rather than corporations or other banks. Retail banks provide basic banking services to the general public, including:

Checking and savings accounts CDs Safe deposit boxes Mortgages and second mortgages Auto loans Unsecured and revolving loans such as credit cards

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Investment Banks
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange,commodities, and equity securities Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, an activity very important to an investment bank's reputation. Therefore, investment bankers play a very important role in issuing new security offerings

CO-OPERATIVE BANKS
The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System. People who come together to jointly serve their common interest often form a cooperative society under the Cooperative Societies Act. When a cooperative society engages itself in banking business it is called a Cooperative Bank. The society has to obtain a license from the Reserve Bank of India before starting banking business. Any co-operative bank as a society is to function under the overall supervision of the Registrar, Co-operative Societies of the State. As regards banking business, the society must follow the guidelines set and issued by the Reserve Bank of India.

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The cooperative bank plays an important role in India even today in rural financing. The business of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks.

Central co-operative Banks

These banks operate at the district level having some of the primary credit societies belonging to the same district as their members. These banks provide loans to their members (i.e., primary credit societies) and function as a link between the primary credit societies and state cooperative banks.

State co-operative Banks

These are the apex (highest level) co-operative banks in all the states of the country. They mobilize funds and help in its proper channelization among various sectors. The money reaches the individual borrowers from the state co-operative banks through the central co-operative banks and the primary credit societies

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Chapter: - 2 Modernization and Innovations in banking sector

Traditionally, innovation has been defined with focus on traditional concepts of industry research and development and the commercialization of new products and/or process technologies. But the definition of innovation as acceptance of and readiness to change across the organization, dedication to continuous improvement processes, willingness to experiment and explore novel ways, building new relationship & union, establishing new approaches to markets, channels, customers, pricing strategies and new and varied approaches to organization, measurement and performance measurement is generally a acceptable. Innovation is particularly important for banking and finance companies. Innovation, which transcends invention, represents the point of union of invention and insight. Organizational nation needs to stress innovation as a key driver of growth that surprises and delights the customer with new, differentiated and relevant benefits. Innovation derives organization to grow, prosper and transform it with the changes in the environment, both internal and external. Banking is no exception to this. In fact, this sector has witnessed radical transformation of late, based on many innovations in products, processes, services, systems, business models, technology, governance and regulation. A liberalized and globalized financial infrastructure has provided an additional movement to this gigantic effort. The pervasive influence of information technology has revolutionaries banking. Transaction costs have crumbled and handling of huge brick and mortar structure has been rapidly yielding ground to click and order

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electronic banking with an excess of new products. Banking has become boundary less and virtual with a 24*7 model.

Banks who strongly rely on the merits of relationship was banking as a time tested way of targeting and servicing clients have readily embraced Customer Relationship Management (CRM), with sharp focus on customer centricity, facilitated by the availability of superior technology. CRM has, therefore, has become a new mantra in service management, which in both relationship based & information intensive. Thanks to the regulatory changes and financial innovation, large banks have now become complex organizations engaged in wide range of activities in the US and some parts of Europe. Banking is now a one-stop provider with a high degree of competition & competence. Banking has become a part of financial services. Risk Management is no longer a mere regulatory issue. Basel-2 has accorded a primacy of place to this fascinating exercise by repositioning it as the core banking. We now see the evolution of many novel deferral products like credit risk management tool that enhances liquidity & market efficiency. The retail revolution with accent on retail loans in the form of housing loans & Consumer loans literally dominating the banking globally is yet another example of product & service innovation. Various types of credit & debit cards & indeed e-cash itself, which has the potential to redefine the role of monetary authorities, are some more illustrious examples.

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Need to Push Full Throttle Ahead Increasing knowledge among societies is forcing the banks to adopt international best practices to remain in business. Important dimensions of change are market, customers, competition, technology & society. Banks should focus beyond technologies and geographies to accelerate growth. Indian banking sector has adopted many dynamic innovations but still some more are needed like risk management, e-commerce etc. The new game requires new strategies with an accent on innovational transformation. Recent trends in Indian banking sector Today, we are having a fairly well developed banking system with different classes of banks public sector banks, foreign banks, private sector banks both old and new generation, regional rural banks and cooperative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. During the last 41 years since 1969, tremendous changes have taken place in the banking industry. The banks have shed their traditional functions and have been innovating, improving and coming out with new types of the services to cater to the emerging needs of their customers. Massive branch expansion in the rural and underdeveloped areas, mobilization of savings and diversification of credit facilities to the either to neglected areas like small scale industrial sector, agricultural and other preferred areas like export sector etc. have resulted in the widening and deepening of the financial infrastructure and transferred the fundamental character of class banking into mass banking. There has been considerable innovation and diversification in the business of major commercial banks. Some of them have engaged in the

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areas of consumer credit, credit cards, merchant banking, leasing, mutual funds etc. A few banks have already set up subsidiaries for merchant banking, leasing and mutual funds and many more are in the process of doing so. Some banks have commenced factoring business. The major challenges faced by banks today are as to how to cope with competitive forces and strengthen their balance sheet. Today, banks are groaning with burden of NPAs. It is rightly felt that these contaminated debts, if not recovered, will eat into the very vitals of the banks. Another major anxiety before the banking industry is the high transaction cost of carrying Non Performing Assets in their books. The resolution of the NPA problem requires greater accountability on the part of the corporate, greater disclosure in the case of defaults, an efficient credit information sharing system and an appropriate legal framework pertaining to the banking system so that court procedures can be streamlined and actual recoveries made within an acceptable time frame. The banking industry cannot afford to sustain itself with such high levels of NPAs thus, lend, but lent for a purpose and with a purpose ought to be the slogan for salvation. The Indian banks are subject to tremendous pressures to perform as otherwise their very survival would be at stake. Information technology (IT) plays an important role in the banking sector as it would not only ensure smooth passage of interrelated transactions over the electric medium but will also facilitate complex financial product innovation and product development. The application of IT and e-banking is becoming the order of the day with the banking system heading towards virtual banking.

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As an extreme case of e-banking World Wide Banking (WWB) on the pattern of World Wide Web (WWW) can be visualized. That means all banks would be interlinked and individual bank identity, as far as the customer is concerned, does not exist. There is no need to have large number of physical bank branches, extension counters. There is no need of person-to-person physical interaction or dealings. Customers would be able to do all their banking operations sitting in their offices or homes and operating through internet. This would be the case of banking reaching the customers. Banking landscape is changing very fast. Many new players with different muscle powers will enter the market. The Reserve Bank in its bid to move towards the best international banking practices will further sharpen the prudential norms and strengthen its supervisor mechanism. There will be more transparency and disclosures. In the days to come, banks are expected to play a very useful role in the economic development and the emerging market will provide ample business opportunities to harness. Human Resources Management is assuming to be of greater importance. As banking in India will become more and more knowledge supported, human capital will emerge as the finest assets of the banking system. Ultimately banking is people and not just figures.

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There are some factors which may probably be the key drivers for Innovation in Banking, keeping in mind customer expectations and behavior changes
1) With intense competition between banks which is going to be more severe in the coming years and with more private players waiting to step in, adopting new technology has assumed added importance, especially for public sector banks. The key to success is adopting state-of-the-art technology and continuously accelerating business processes. 2) Investment and innovation in technology will result in further advancement in credit analytics systems that will help them assess customer behavior and enhance portfolio profitability. Experience in matured markets has proven the value of credit bureaus in the development of consumer credit. With the possibility of more credit bureaus competing with CIBIL looming large, further advancement and innovation to quickly assess customer credit history will be a critical factor to provide convenience banking to customers. The day is not far away where you call up your Bank for a loan, provide your UID/PAN Number, your credit score verified, eligibility calculated and the processing is completed almost instantaneously and the loan amount gets credited to your account within 24 hours. 3) Continuous innovation on the product offerings by Banks is paramount to ensure that their products stand out from the crowd. A lot of effort and innovation from Banks is required to make their product the preferred choice of the customer. This needs to be backed by a powerful and customized loyalty program for customers to be continuously encouraged to keep using their card. Service is an extremely vital part in the wheel and the Banks which make the investment to have superior service levels as their USP will have a clear advantage. Investment in providing a chat interface as a service channel for routine enquiries would be in line with times to come.

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4) Ten years ago, a customer would have been happy to bank with those who provided just a fixed deposit or a recurring deposit in addition to his savings account and a credit card. Today, there is a need to spread the wealth around, diversify the savings into shares, fixed deposits, mutual funds, pension products and insurance. Banks have a choice offer all these as part of their Convenience Banking to customers or lose him. This desire and the compulsion to be the one-stop shop for the entire customers investment and borrowing needs will ensure a lot of banks adopt this model increasingly.

5) Smart Cards embedded with microprocessors or memory chips will become tamper proof and replace the existing plastic cards, offering customers a secure digital identity. This will also provide convenience to customers; provide access to banks website and individual accounts, accurate tracking of usage, spend analysis and manage long term customer relationships through efficient, timely and valuable services to them.

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6) Biometric ATMs will replace the conventional ATMs across the country, apart from all banks investing in additional ATMs. Banks can authenticate the identity of the customer in three ways; most common being something the user knows (passwords or personal identification numbers), something the user has (a security token etc) or something the user is (a physical characteristic like fingerprint, palm geometry etc., called as biometric). With increasing threats on compromise of passwords and account take overs and misuse of cards, biometric form of authentication (which have withstood the test of scrutiny coming out as the most secure form) for ATM and POS transactions would be the way ahead. Statistics show that Indias ATM density is around 35 ATMs per million people which is terribly low compared to the USs ATM density of 1300. This is an area of focus for many banks clearly, offering a branding and marketing proposition for their investments apart from interchange revenues on usage. 7) Cheques will gradually be phased out and replaced by RTGS and NEFT and other electronic forms of money transfers and payment mechanisms offering superior turnaround times. Operational efficiency in processing electronic payment mechanisms will undergo a radical change, with the beneficiary receiving the credit real time online.

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Core banking Introduction

Core Banking Solutions is new jargon frequently used in banking circles. The advancement in technology especially internet and information technology has led to new way of doing business in banking. The technologies have cut down time, working simultaneously on different issues and increased efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working. Now many advanced features like regulatory requirements and other specialized services like share (stock) trading are being provided. Core banking solutions are very helpful to SME industries. Core Banking Solution (CBS) is networking of branches, which enables customers to operate their accounts. And avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account.

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The Technologies have cut sown time, working simultaneously on different issues and increased efficiency. The platform where communication technology and Information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, and interest calculations on loans and deposits, customer records, balance of payments and withdrawal are done. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working.

Meaning
Core means Basic, hence the basic services provided by the inter-networked branches of bank is called Core Banking. Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Nowadays, most banks use core banking applications to support their operations where CORE stands for Centralized Online Real-time Exchange. This basically means that all the banks branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. A few decades ago it used to take at least a day for a transaction to reflect in the account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the datacenter only at the end of the day.

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Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet Banking, and branches.

Definition

Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.

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WHAT IS CORE BANKING SOLUTION Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Banks Customer. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime banking In core Banking System, software applications record transactions, maintain customer information, calculate interest on loans and deposits etc. The data, instead of huge ledgers, are stored in backend databases in digital form. Now, the same software can be installed in various branches of a bank and can be interconnected through the internet or telephone lines to from a core banking network of the bank. The advantage, a customer can operate on his account from any branch of the bank and if the bank owns Internet Banking or ATM facilities, then the customer can operate on his account from virtually anywhere. Core Banking System has radically changed the way in which banks function. The greatest advantage of having a Core Banking System is that new features and functionalities can be easily added to the system that customers will have a whole lot of services that they can use. Electronic funds transfer between banks, online trading in the stock markets etc. are examples of this, which were unheard of in banks pre Core Banking System era. Core Banking is the meeting point of the largest

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banking services augment namely Retail and Commercial Banking, cutting edge Information Technology and the advancing Communication Technology. It is the heart of a modern financial service organization and is all about providing the banking customers with the right products at the right time through the right channels 24 hours a day, 7 days a week through a multi location, multi branch network.

THE NEEDS OF CORE BANKING SOLUTION The need for such a solution does not arise just because of one reason or the other but it requires a combination of driving forces to income into existence. Some of these forces beingTo meet the intense competition and changing market dynamics in an over banked environment. To meet the regulations and compliance requirements (example in order to meet the Basel II norms banks must enhance there infrastructure). To meet the demands of customers who are better informed, more demanding and less loyal than ever. To enhance efficiency and effectiveness Increasing customer satisfaction and convenience Freeing up time for branch staff to focus on sales and marketing Simplifying process for employees Enhancing banks competitiveness in the market

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Following are the advantages of Core Banking:

Customer can have anywhere, more convenient and easier banking ATM, Internet Banking, Mobile Banking, Payment Gateways, Referral Business More Strong and economical way for MIS Reduction in Branch Manpower by 15-20% Additional Manpower available for Marketing, Recovery and Personalized banking Instant Information availability for decision support Quick and Accurate Implementation of Policies Improved Recovery Process causing reduction on recovery costs, NPA Provisions Innovative, redefined or improved processes (e.g. Inter Branch Reconciliation) causing reduction in Manpower at Head Office

WHY THE INCEPTION IN INDIA SO LATE

There are many reasons for the late inception of CBS in INDIA, some of them being Indian banks were not interested in going for it. Required technology for adopting CBS was absent. The competition prior globalization was not that of present level.

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WHAT ARE THE STANDARD SOFTWARE TOOLS Some of the standard software tools that many banks are using these days are Intellect Suite from POLARIS Flexcube from iFlex Solutions Finacle from Infosys B@ncs from TATA Consultancy Services

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Investment banking
Introduction
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide additional services such as market making, trading of derivatives, fixed income instruments, exchange, commodities, and equity securities. Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (GlassSteagal Act) until 1999 (GrammLeach Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation. Investment banks have multiple functions to perform. Investment banking helps public and private corporations issue securities in the primary market, underwriting, advisory services, and forex management. Other services include acting as intermediaries in trading for clients. The meaning of investment banking is not the financial investment in the banking sector. But in fact, investment banking is a kind of banking function which is used to help clients in creating wealth and funds. The commercial banks use this type of banking in accord with sensible and practical use of the available resources. Not only this, investment banking

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and people engaged in this sector also provides advice on how to transact in business they are currently in. Through investment banking, companies can create funds in two ways. They can either draw on public funds from capital market by releasing the stock i.e. corporate finance or they can go to venture capitalists or private equities to become share holders in their company. The field of investment banking is also engaged in giving advice and consultation on how to manage various takeovers and merging i.e. [M&A] merger and acquisitions. They also provide companies with ideas on how to declare public offerings and manage their talents. The handling of mergers and acquisitions come under the corporate finance function of the investment banking. The margin between investment banking and other forms of banking has been very unclear for a long time now and for the same time; the function of this banking sector has grown to covering every field of wealth management process of corporate as well as individual persons. Corporate Finance: this is the sector where investment banking works and supports companies the most in getting extra money. Lets take an example that a company needs more money to finance the market research of a product to-be launched to stay forward in competition. Here, investment banking can help you by getting your companys shares sold and raising funds for you. The other way, how an investment bank can get you money is by trading in stocks on behalf of their clients.

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[M&A] Merger and Acquisitions: this point doesnt have any explanation and it can be defined only through an example. Lets take an example of a company who is going strong in business and market and wish to buy another company just to add more authority to their name and business. Professionals from investment banking sector makes them realize that on merging; both these companies can be a great group and can acquire major part of the market and also the business.

Definition

Investment banking is a form of banking which finances the capital requirements of enterprises. Investment banking assists as it performs IPOs, private placement and bond offerings, acts as broker and helps in carrying out mergers and acquisitions

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Functions of Investment Banking: Investment banks carry out multilateral functions. Some of the most important functions of investment banking are as follows: Investment banking helps public and private corporations in issuance of securities in the primary market. They also act as intermediaries in trading for clients. Investment banking provides financial advice to investors and helps them by assisting in purchasing and trading securities as well as managing financial assets Investment banking differs from commercial banking

as investment banks don't accept deposits neither do they grant retail loans. Small firms which provide services of investment banking are called boutiques. They mainly specialize in bond trading, providing technical analysis or program trading as well as advising for mergers and acquisitions

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Core activities of Investment Banking Investment banking: is the traditional aspect of investment banks that involves helping customers raise funds in the capital markets and advise them on mergers and acquisitions. Investment banking can also involve subscribing investors to a security issuance, negotiating with a merger target and coordinating with bidders. Sales and trading: Depending on the needs of the bank and its clients, the main function of a large investment bank is buying and selling products. In market making, the traders will buy and sell securities or financial products with the goal of earning an incremental amount of money on every trade. Sales is the term that is used for the sales force, whose primary job is to call on institutional and high-net-worth investors to suggesttrading ideas and take orders Research: is the division of investment banks which reviews companies and makes reports about their prospects, often with "buy" or "sell" ratings. Although the research division generates no revenue, its resources can be used to assist traders in trading, can be used by the sales force in suggesting ideas to the customers, and by the investment bankers for covering their clients.

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NRI Banking
To meet the specific needs of non-resident Indians related to their remittances, savings, earnings, investments and repatriation, the Government of India introduced in 1970 Non-Resident (External) Account Rules which are governed by the Exchange Control Regulations. NRI accounts are maintained by banks which hold authorized dealers' licenses from the Reserve Bank of India. Some cooperative and commercial banks have also been specifically permitted to maintain NRI accounts in rupees even though they are not authorized dealers. Banking Laws for NRIs allow for accounts with authorized dealers to be maintained in Indian rupees and in foreign currency. The Foreign Exchange Management Act, 1999 determines the laws regulating foreign exchange and enlists the various deposit schemes available to NonResident Indians. The types of deposit schemes made available to NRIs are: a) FCNR (B) - Foreign Currency (Non-Resident) Account (Banks) Scheme for all NRIs b) NRE Account - Non- Resident (External) Rupee Account for all NRIs c) NRO Account - Non-Resident Ordinary Rupee Account Scheme. While the FCNR(B) is a term deposit only, the NRE and NRO accounts can be operated as either savings, current, recurring or fixed deposit accounts. As for interest rates, FCNR(B) and NRE are subject to a cap, and should not exceed the LIBOR/SWAP rates. In the case of NRO accounts, rates are determined by the banks. All NRIs can open such accounts, with the exception of individuals residing in Pakistan and Bangladesh, who require special permission from the RBI. Joint accounts of two or more non-residents and nomination facility are permitted.

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Bancassurance
BANCASSURANCE as term itself tells us what does it means. Its a combination of the term Bank and Insurance. It means that insurance have started selling their product through banks. Its a new concept to Indian market but it is very widely used in western and developed countries. It is profitable both to Banks and Insurance companies and has a very bright future to be the most develop and efficient means of distribution of Insurance product in very near future. Insurance company can sell both life and non-life policies through banks. The share of premium collected by banks is increasing in a decent manner from the time it was introduce to the Indian market. In India Bancassurance in guide by Insurance Regulatory and Development Authority Act (IRDA), 1999 and Reserve Bank of India. All banks and insurance company have to meet particular requirement to get into Bancassurance business. It is predicted by experts that in future 90% of share of premium will come from Bancassurance business only. Currently there are more and more banking and Insurance Company and venturing into Bancassurance business for better business prospect in future. It is even profitable for Insurance Company as they receive more and more sales and higher customer base for the company. And they have to directly deal with an organization which reduce their pressure to deal with each customer face to face.

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The banking business is also generating more profit by more premium collected by them and they also receive commission like normal insurance agent which increase their profits and better reputation for the banks as there service base also increase and are able to provide more service to customers and even more customer are attracted toward bank. In all Bancassurance has proved to be boom in whole Banking and Insurance arena.

Bancassurance is defined as Selling Insurance products through banks. The word is a combination of two words Banc and assurance signifying that both banking and insurance products and service are provided by one common corporate entity or by banking company with collaboration with any particular Insurance company. In concrete terms bancassurance, which is also known as Allfinanz describes a package of financial services that can fulfill both banking and insurance needs at the same time.

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Benefits and value proposition in Bancassurance

Advantages to banks Productivity of the employees increases. By providing customers with both the services under one roof, they can improve overall customer satisfaction resulting in higher customer retention levels. Increase in return on assets by building fee income through the sale of insurance products. Can control on face-to-face contacts and awareness about the financial conditions of customers to sell insurance products. Banks can cross sell insurance products Eg: Term insurance products with loans.

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Advantages to insurers Insurers can exploit the banks' wide network of branches for distribution of products. The penetration of banks' branches into the rural areas can be utilized to sell products in those areas. Customer database like customers' financial standing, spending habits, investment and purchase capability can be used to customize products and sell accordingly. Since banks have already established relationship with customers, conversion ratio of leads to sales is likely to be high. Further service aspect can also be tackled easily. Advantages to consumers Comprehensive financial advisory services under one roof. i.e., insurance services along with other financial services such as banking, mutual funds, personal loans etc. Enhanced convenience on the part of the insured Easy accesses for claims, as banks are a regular go. Innovative and better product ranges

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Achieving Success
To achieve success in bancassurance, Asian companies must overcome a host of challenges. Some are cultural, while others reflect a lack of incentives to generate sales as well as the natural conflicts between banking and insurance products. The most successful products from a sales perspective are those that are linked to banking products (e.g., loans and credit insurance) or that are very similar to banking deposits (certainly in the initial stages of the bancassurance operation) and offer superior returns to deposits, though over a longer term than the usual time deposits. Some obstacles are country specific. For example, in South Korea, each bancassurance must have at least three life partners and three non-life partners, and all of these partners must receive less than 50% of the new business generated by the bank, in their respective sectors, in any given quarter. Notwithstanding the many obstacles to success and challenges faced, bancassurance ventures have enjoyed success in Asia. For example, Exhibit 3 shows the impressive emergence of bancassurance in Hong Kong. Prior to 1999, market share attributable to bancassurers was minimal. To achieve the level of success of bancassurance, banks will need to own insurance companies or work very closely with insurance company partners to restructure the value chain and provide products suitable for bank customers. As long as regulatory constraints exist, alliances will be a critical part of the effort by US banks to establish their insurance business. Banks must develop successful alliances in the near term and use those experiences to evaluate the opportunity to buy or build insurance companies as regulations changes. There are five key approaches to forming insurance partnerships that form a continuum from complete outsourcing to complete ownership: list rental, working with a third party marketer, agency purchase, integrated alliance, and ownership. Each of these approaches involves a different level of value chain ownership and control.

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SOME IMPORTANT BANCASSURANCE TIE UPS

INSURANCE LIFE INSURANCE CORPORATION (LIC)

BANKS

Corporation Bank, Indian Overseas Banks, Centurion Bank, Satara District Bank, Cooperative Bank, Janata Urban Cooperative Bank, Yeotmal Mahila Sahkari Bank, Oriental Bank of Commerce BIRLA SUN LIFE INSURANCE The Bank of Rajasthan, Andhra Bank, Bank of Muscat, Development Credit Bank, Deutsche Bank and Catholic Syrian Bank. DABUR CGU LIFE INSURANCE Canara Bank, Lakshmi Vilas Bank, American Express Bank, ABN COMPANY PVT LTD Amro Bank. Union Bank of India. HDFC STANDARD LIFE INSURANCE CO. Lord Krishna Bank, ICICI Bank, ICICI PRUDENTIAL LIFE Bank of India, Citibank, Allahabad INSURANCE CO. Bank, Federal Bank, South Indian Bank, Punjab & Maharashtra cooperative Bank. City Union Bank. NATIONAL INSURANCE CO. MET LIFE INDIA INSURANCE Karnataka Banks, The Dhanalaxmi Bank, Jammu and Kashmir Bank. CO. State Bank of India, Associate SBI INSURANCE CO. Bank Krur Vysya Bank, Associate Bank BAJAJ ALLIANZ GENERAL INSURANCE South Indian Bank UNITED INDIA INSURANCE CO.

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SBI Life Insurance is one of the leaders among the fast growing private life insurance players in India. Current milestones 1st in "lives covered" amongst private players - 2.8 Million at last count 1st in the Group Insurance segment 4th in terms of premium income, with Rs 600 Crores in 2004-05 Ranked as one of the Most Trusted Brands amongst Life Insurance Companies by Brand Equity, The Economic Times Starting out in 2001 with an enviable pedigree, SBI Life Insurance is a joint venture between State Bank of India - India's largest bank, and Cardif - the insurance arm of BNP Paribas. Cardif is the largest 'Bancassurance' company globally, and BNP Paribas is one of top ten global banks. With our combined strengths and successes, we symbolize the virtues of 'security' and 'sustainability' in a business, where relationships with customers can span up to 25 years. Our financial solidity, ethical practices and domain expertise truly mean - WITH US YOU ARE SURE.

Our distribution channels enable us to reach all customer segments: Bancassurance - through SBI Group's 14000 branches Agency channel - through a growing network of insurance advisors Corporate Agents and Brokers - in major cities Corporate & Institutional sales Credit Life - tie ups with companies offering life insurance along with their home loan and vehicle loan schemes NRI Sales - reaching out to Non-Resident Indians through SBI's NRI/ NRE accounts

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Retail banking
Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. Related additional services include credit cards, or depository services. Retail banking refers to provision of banking services to individuals and small business where the financial institutions are dealing with large number of low value transactions. This is in contrast to wholesale banking where the customers are large, often multinational companies, governments and government enterprise, and the financial institution deal in small numbers of high value transactions The concept is not new to banks but is now viewed as an important and attractive market segment that offers opportunities for growth and profits. Retail banking and retail lending are often used as synonyms but in fact, the later is just the part of retail banking. In retail banking all the needs of individual customers are taken care of in a well-integrated manner.

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Todays retail banking sector is characterized by three basic characteristics: a) Multiple products (deposits, credit cards, insurance, investments and securities) b) Multiple channels of distribution (call center, branch, internet) Multiple customer groups (consumer, small business, and corporate Retail banks offer a range of services to individual customers and small businesses, rather than to large companies and other banks. The services can include current accounts, savings accounts, investment advice and broking, and loans and mortgages. Retail banks perform two crucial functions for customers: firstly, they enable customers to bank their money securely, access it easily, and conduct transactions; and secondly, they provide access to additional money to fund large purchases, such as buying a home. In return for holding customers funds, which they can then invest, banks pay customers interest. Traditionally, retail banks have provided these services directly to the customer via branches. While many still do this, retail banks now offer their services by telephone and the internet as well. Some operate solely via the internet and do not have facilities to serve customers at physical outlets. Other organizations, such as supermarkets, have now entered the banking sector and also offer a wide range of banking services. It has become more difficult to identify the traditional retail banka bank that funds itself through customer deposits and lendingbecause retail banks now often combine retail and wholesale banking. It is therefore more relevant to todays banking structure to regard retail banking as a series of processes rather than as an institution.

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2. Opportunities and Challenges in Indian Retail Banking The subject matter of retail banking is of prime importance. In recent have

years, commercial banks

witnessed development in the form of retail lending, all over the world. The growth in the field of retail lending is primarily because of the speedy advancement in the IT sector, evolving macroeconomic environment, numerous micro level demand and supply side factors and financial market reform. This criterion is based on the market research report on retail banking. India has also experienced growth in the field of retail banking. The retail loan accounted for approximately one-fifth of the entire bank credit. The housing sector is undergoing a boom in its credit. The retail loan market has detrimentally undergone a change, from the sellers market to the buyers market. The time is no more the same, when it was difficult to get loans from the bank. This indicates that the retail loan market has shown phenomenal growth and development over recent years. The market research reports that were made exclusively for the Indian retail banking market indicated, that India offers tremendous

opportunities in this field. It further indicated that retail banking market is a booming sector in India.

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One of the key contributors for the boom in the Indian retail banking industry is, the increasing ratio of the Indian middle class. The number of people who fall in the category of the middle class is increasing rapidly. The younger population of the country has increased not only its purchasing power; it is also comfortable acquiring personal debts as compared to their older generations. This dual combination of increased purchasing power and comfort acquiring personal loans has contributed majorly in the development of the retail loan sector in India If retail banking on one hand offers development opportunities, it also offers challenges on the other hand. These challenges are listed in the market research reports made on retail banking. Further growth and success of the retail market (in the banking sector) will depend upon the capacity and ability of the banks to meet with the challenges and make the best use of the opportunities. The technological base and efficiency in operations would give the retail banking market a competitive edge and will contribute in the success of the business in India. Prime importance has to be given to consumer interest. The biggest challenge faced by the Indian banks in the field of retail banking is going to be the rising indebtedness and lack of technological advancements, a report by Federation of Indian Chambers of Commerce and Industry (FICCI) pointed out. A report of FICCI, namely, Status of the Indian Banking Industry - has identified these two areas as the factors which may affect the future of retail banking in India.

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SCOPE FOR RETAIL BANKING IN INDIA All round increase in economic activity. Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking. India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. Now People Want To Save Less and Spend More. Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are dayby-day increasing.Tax benefits are available for example in case of housing loans the borrower can avail tax benefits for the loan repayment and the interest charged for the loan. This document analyzed the key policy issues relevant to the retail banking sector and highlighted the role of financial inclusion, responsible lending, access to finance, and consumer protection. It is in this context that that one is reminded of the needs to develop the standards and codes for banking.

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FUTURE OF RETAIL BANKING Retail banking has significant past and glorious future over the years. Indian retail banking, according to a report, is likely to grow at a CAGR of 28 per cent till 2012 to Rs 97,00 billion. So, although the revolution in retail banking has changed the face of the Indian banking industry as a whole, it has still miles to go. On the whole, looking ahead, the prospects of retail banking are brighter than ever and the bankers have to give continued thrust to this area of banking. Thus, with the consumers ever multiplying needs there is definitely a vast scope for the furtherance of the retail banking business. Operationally, there is a possibility that technology go beyond merely reducing the cost & improving the quality of current products. It may prove possible, even profitable, to combine functions in new ways. The future of retail banking lies more in mobile banking. Mobile telephone market is penetrating, and mobile phones are ideal to utilize Internet banking services without customer accesses to PC. By a tacit acceptance India has around three million mobile phone users and this number is expected to reach to eight million by 2003. Smart card revolution will further change the face of retail banking. Smart cards can store information; carry out local processing on the data stored and can perform complex calculations.

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Tele banking
Telephone banking is a service provided by a Banks, which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customer's accounts, etc. Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investment purchases and redemptions, chequebook orders, debit card replacements, change of address, etc. Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernize the user by using special technology.

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The customers calls and logs in using a log in id and password to access the TeleBanking system. In order to ensure security, the customers can be asked to change the PIN number on the first log in. The following are some of the services that can be provided Accept request from a customer for facilitating TeleBanking. Change password compulsorily on first time use of Phone Banking services. Check your account balance Request to send the last five transactions by SMS And/Or email to the customer Check balances in various accounts like savings account, current account, or loan account Enquire on the status of cheques issued Enquire on the cheques deposited Order a Cheque Book / Account Statement Stop Payment for a cheque or a series of cheques Loan related queries like placing request, checking on the approval status Request to Contact Bank Executives for certain services Enquire on your Fixed deposits / TDs Transfer Funds between accounts in different branches if they are under the same customer ID Request a Demand Draft / Manager's Cheque Pay Bills Telephone bills, Insurance Premium Electricity Bills Water and other services bills etc Report loss of your ATM / Debit Card / ForexPlus Card

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Advantages of Tele Banking: 1. You may not have time to visit your bank every week and if your business is located out of town, getting to a branch can be time consuming and expensive. With telephone banking, your bank is on the other end of the line whenever you need it. 2. You can manage your business account at any time, which is ideal if you are busy during the day with running your business. 3.As well as the basics of running your business account paying a bill, transferring money, setting up a direct debit and so on you may also be able to apply for finance and make an appointment with your Bank Manager. 4. Making payments by phone can simplify your banking you dont need to confirm the payments in writing, and you can check all your transactions against your statement when it arrives.

Disadvantages of Tele Banking: 1. The most common one would have to be the fact that not all banks and building societies offer 24 hour telephone banking. 2. Telephone banking like online banking can seem impersonal, but like online banking, if you use it on conjunction with your regular bank account it can be a useful tool.

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Demat Services with reference to ICICI Bank

ICICI Bank Demat Account is the initiation part of ICICI Bank Demat services. The bank endeavors to offer the most reliable demat customer care with the most competitive charges. The dedicated customer base for the ICICI Bank Demat service has increased rapidly to over 11.5 lakh customers. For application, you can either contact the ICICI Bank branches providing demat services or download the application form from ICICI Bank website. No account-opening fee is applicable. The brokerage charges levied are applicable as per the transaction you make and are clearly mentioned on the membership guide you receive.

You are allowed to have zero balance of securities in your ICICI Bank Demat Account. ICICI Bank being a depository participant (DP) allows you to trade in shares in electronic form. E-instructions with transfer of securities 24 x 7 through Internet and IVR (Interactive Voice Response) are some of the basic facilities that you get.

Other features of ICICI Bank Demat Account include:: Dematerialization of your scattered physical shares and consolidating them into your primary ICICI Bank Demat Account Account statement on regular basis through email Detailed statements about the dividend, interest and bonus earned SMS request for instant information on holdings, transactions, bill & ISIN SMS alerts for all debits and credits to your account

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ICICI Bank Demat Account Customer Care

ICICI Bank operates a 24 x 7 customer care cell from where you can get info on the ongoing brokerage charges, application status, procedure for address change, and address of your nearest ICICI Bank branch providing demat services (235 Branches). ICICI Bank provides direct online application for demat account opening. This has especially made the service easily accessible for NRIs.

Online forms are available at the website mentioned below where you can download and submit the form online too. The website also gives you an online demat demo to instruct you about how to use ICICI Bank Demat Services through the Internet Banking Service of ICICI bank ICICI Bank Demat Services boasts of an ever-growing customer base of over 16.83 lakhs customer base as on 10.02.11 account holders.

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The following are the features of Demat services of ICICI bank E-Instructions You can transfer securities 24 hours a day, 7 days a week through Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer", you can also transfer or pledge instructions through our customer care officer. Digitally Signed Statement Receive your account statement and bill by email. Corporate Benefit Tracking Track your dividend, interest, bonus through your account statement. Mobile Request Access your demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details. Mobile Alerts Receive SMS alerts for all debits/credits as well as for any request which cannot be processed.

Dedicated customer care executives specially trained at our call centre, to handle all your queries. Countrywide network of over 970 branches, you are never far from an ICICI Bank Demat Services outle

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What is RTGS System?

The acronym RTGS stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis. This is the fastest possible money transfer system through the banking channel. Settlement in real time means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.

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Difference between RTGS and EFT

EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For example, NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hour.

Minimum /maximum transactions

amount

stipulation

for

RTGS

The RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for EFT and NEFT transactions

Time taken for effecting funds transfer

Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message

Remitting customer receive an acknowledgement

The remitting bank receives a message from the Reserve Bank that money has been credited to the receiving bank. Based on this the

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remitting bank can advise the remitting customer that money has been delivered to the receiving bank.

RTGS service window is available?

The RTGS service window for customer's transactions is available from 9.00 hours to 15.00 hours on week days and from 9.00 hours to 12.00 noon on Saturdays i.e. to accept the customer transactions for settlement at the RBI during 9.00 hours to 15.00 hours on week days and between 9.00 hours and 12.00 noon on Saturday. However, the timings between these hours would vary depending on the customer timings the branches have. For inter-bank transactions, the service window is available from 9.00 hours to 17.00 hours on week days and from 9.00 hours to 14.00 hours on Saturdays

The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance:
1. Amount to be remitted 2. His account number which is to be debited 3. Name of the beneficiary bank 4. Name of the beneficiary customer 5. Account number of the beneficiary customer 6. Sender to receiver information, if any 7. The IFSC code of the receiving branch

IFSC code
The beneficiary customer can obtain the IFSC code from his branch. The IFSC code is also available in the cheque leaf. This code number and bank branch details can be communicated by the beneficiary to the remitting customer

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E-BANKING
INTRODUCTION Competition and the constant changes in technology and lifestyles have changed the face of banking. Nowadays, banks are seeking alternative ways to provide and differentiate amongst their varied services. Customers, both corporate as well as retail, are no longer willing to queue in banks, or wait on the phone, for the most basic of services. They demand and expect to be able to transact their financial dealings where and when they wish to. With the number of computers increasing every year, the electronic delivery of banking services is becoming the ideal way for banks to meet their clients expectations. Online banking or e-banking can be defined as online systems which allow customers to plug into a host of banking services from a personal computer by connecting with the banks computer over the telephone wires. Technology continues to make online banking easier for the average consumer. Banks are using a variety of names for online banking services, such as PC banking, home banking, electronic banking or Internet banking. Regardless of the given name, these systems certainly offer specific advantages over the traditional banking methods. E- Banking can be defined as delivery of banks services to a customer at his office or home using Electronic Technology. The quality, range and price of these electronic services decide a banks competitive position in the industry. Technology in banking has been used in four major ways: To handle a greatly expanded customer base To reduce substantially the real; cost of handling payments To liberate the banks from the traditional constraints on time and place To introduce new products and services.

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What is electronic banking? Electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. But it also poses new challenges for country authorities in regulating and supervising the financial system and in designing and implementing macroeconomic policy.

E- Commerce Conducting business through electronic network

E- Finance Providing financial services through electronic channels

E Money Stored value or prepaid payment mechanism.

E-Banking Providing banking products and services Internet Banking

Other financial services or products Insurance, online brokering etc.

Telephone Banking

Other electronic delivery channels

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COMPARISON BETWEEN TRADITIONAL BANKING AND ELECTRONIC BANKING

TRADITIONAL BANKING

ELECTRONIC BANKING

Client logs on to Client prepares a Banks web site Cheque He goes to bank Keys in the user Name & password Deposits the Cheque in bank Gives instructions Online

Money is transferred Next day the Same day Money is transferred

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THE EMERGENCE OF ELECTRONIC BANKING PRODUCT Intense competition has forced banks to rethink the way they operated their business. They have to reinvent and improve their products and services to make them more beneficial and cost effective. Technology in the form of electronic banking has made it possible to find alternate banking practices at lower costs. More and more people using electronic banking products and services and because a larger section of banks future customer base will be made up of computer literate customers, the banks must be able to offer these customer products and services that allow them to do their banking by electronic means. If they fail to do this they will, simply, not survive. Automated Teller Machine (ATM) The ATM was one of the earliest electronic banking products, being introduced in the mid 1970s. it provided customers with the ability to withdraw or deposit funds, check account balances, transfer funds and check statement information. As is the case with any new technology, it took some time before customers became familiar with the ATM and came to accept it as an alternative way of doing their banking. Electronic Funds Transfer (EFT) Electronic funds transfer (EFT) is another electronic banking product that facilitates transfer of funds from any branch of a bank to any other branch of any bank in the shortest time.

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Personal Computer Banking Personal computer banking or PC banking is also a fast growing area in electronic banking. PC banking lets customers access information on their accounts through a dial up connection with their bank. Customers can perform basically all the transactions that are available with telephone banking. They also have the ability, in some cases, to download information and process it in their own financial management software

ENTRY OF PRIVATE SECTOR BANKS The first step was taken in 1992-93 when the government issued guidelines for entry of private sector banks. Immediately financial institutions set up private sector banks major among them being: ICICI Bank Ltd. HDFC Bank Ltd. UTI Bank Ltd. IndusInd Bank Ltd. Backed by the muscle power of the parent financial institution, these banks proved to be a major threat to existing banks. Competition also resulted in: Elimination of niche areas as more and more private sector and foreign banks stepped up activity in the retail banking area which till then was considered to be the bread and butter for smaller co-operative banks. Use of information technology in a major way to provide easy and convenient banking services to customers. The state of art technology introduced by some of the private sector banks and its impact on the customer has compelled the public sector and smaller co-operative banks to also automate operations in a major way. The reserve bank of India too has now published guidelines for technology up gradation in banks.

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FUTURE OF E-BANKING
The future of e-banking will be closely linked to spread of Internet. Technology will drive penetration and not a government ordinance. A simple telephone line will bring access and then rapid developments will take place. Kiosks and ATMs assisted by a single customer centric banker will usher in a banking revolution. Technology can enable offering of a complete range of products on multiple platforms and provide a paradigm shift in delivery of banking service to the individual. W ith the rapid advances in the telecommunication systems and digital technology, it is difficult to predict how E- Banking will improve and expand over the coming years. For example, Internet Banking via mobile phones using Wireless Application Protocol (WAP) or banking services through the TV screen via the new interactive TV channels may become established. It is likely that the number of customers wanting to utilize online banking will increase which could lead to high street banks offering personalized services and better online customer care. To combat computer crime and increase security levels, banks may consider new security measures such as iris, voice and fingerprint recognition, smart cards and electronic signatures. However, with the number of computers increasing every year, the electronic delivery of services is rapidly becoming popular in the banking sector. The Indian experience of E-banking is gradually merging with its international counterparts. While the private sector and the multi-national banks have been first and expeditiously adopting Internet technology in client servicing, there is a gradual trend towards the major public sectors and numerous co-operative units to move in the same direction. A mix of policy support and security assurance should propel E-banking adoption further in India.

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Plastic Money: the Currency of Modern India

Indian consumers have never had it so good. The soiled notes are definitely out. Carrying cash is no more `a pain in the neck' as consumers are relying more on the `plastic card' which gives them money on credit. Plastic money basically means debit cards and credit cards which is having a magnetic stripe, logo, signature of the cardholder made of plastic. Credit Cards have finally arrived in India. The card industry which is growing at the rate of 20% per annum is flooded with cards ranging from gold, silver, global, smart to secure.the list is endless. From just two players in early 80s, the industry now houses over 10 major players vying for a major chunk of the card pie. Currently four major bishops are ruling the card empire---Citibank, Standard Chartered Bank, HSBC and State Bank of India (SBI). According to a study conducted by State Bank of India, Citibank is the dominant player, having issued 1.5 million cards so far. Stanchart follows way behind with 0.67 million, while Hongkong Bank has 0.3 million credit card customers. Among the nationalized banks, SBI tops the list with 0.28 million cards, followed by Bank of Baroda at 0.22 million. The credit card market in India, which started out in 1981, is on the verge of an unprecedented boom. Between 1987 and 2000, the market has virtually grown to over 3.8 million cards with almost 25-30 % growth in new cardholders. SBI, one of the late entrants in the card market, has managed to grab over 8 per cent of the market share from the bigwigs like Citibank and Standard Chartered Bank. According to bank officials, SBI's card issue so

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far is to the tune of 0.28 million which is expected to In a bid to tap the lower middle class segment, SBI is currently sharpening its marketing The bank is putting its best foot forward to compete with global card majors like Citibank and Standard Chartered Bank.

DEBIT CARDS
A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Physically the card is an ISO 7810 card like a credit card; however, its functionality is more similar to writing a cheque as the funds are withdrawn directly from either the cardholder's bank account (often referred to as a check card), or from the remaining balance on a gift card. Depending on the store or merchant, the customer may swipe or insert their card into the terminal, or they may hand it to the merchant who will do so. The transaction is authorized and processed and the customer verifies the transaction either by entering a PIN or, occasionally, by signing a sales receipt As it is popularly known, it is an ATM card on the move. The Debit Card gives the freedom to access the Savings or Current Account at merchant locations and ATMs. Whenever to make payments, the amount will be instantly debited to the account. There are around more than 5.3 lakh Visa/PLUS ATMs and equally strong Mastercard/ Cirrus ATMs in over 140 countries worldwide. All the purchases and cash withdrawals will be in the currency of the country are in, while account will be debited in rupees. So you needn't carry traveller's cheques or foreign exchange the next time you travel Debit Card can be used at any merchant location displaying the Visa or Mastercard logo or at any ATMs displaying the Visa/PLUS or Mastercard/Cirrus logo. Besides that, one can always use it at any of the bank ATMs as a normal ATM card.

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Advantages of Debit Card Debit Card is often easier to get than a credit card. Check approval or to show identification at store is not required. No need to carry cash, a checkbook or traveler's checks. Debit cards are more readily accepted than checks, especially at the time of traveling. No interest charges are to be paid by debit cardholders. Debit card processing fee for the merchant are generally lower than credit card fees. Disadvantages of a debit card Enough money is required in bank account to have debit card. Once the amount is paid for purchase, if something goes wrong with the purchase.. Bank won't put money back into your account for items that are never delivered, don't work or were misrepresented. Bank feessuch as monthly service charges, per-transaction costs or penaltiesfor dropping below the required minimum balance are charged by debit card holders. More chances of lose or misuse of debit card than a credit card.

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ATM Cards These cards are typically used at automatic teller machines (ATMs) to withdraw cash, make deposits, or transfer funds between accounts. ATM card is used by inserting the card into an automatic teller machine and enter a personal identification number, or PIN, for security. The system checks the account for adequate funds before permitting any transaction.

Check Cards These cards can be used to purchase products at any merchant that accepts VISA or MasterCard credit cards. On the surface, they look exactly like ATM cards. However, check cards cannot be used at automatic teller machines. When using a check card no PIN is used. Instead, you will be asked to sign a transaction slip as would be done with a credit card.

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CREDIT CARDS
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant. It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. Credit cards in India is gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these. Major Banks issuing Credit Card in India State Bank of India credit card (SBI credit card) Bank of Baroda credit card or (BoB credit card) ICICI credit card HDFC credit card IDBI credit card ABN AMRO credit card Standard Chartered credit card HSBC credit card Citibank Credit Card

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DIFFERENT TYPES OF CREDIT CARDS

Charge card A charge card carries all the features of credit cards. However, after using a charge card you will have to pay off the entire amount billed, by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge. Smart card A smart card contains an electronic chip which is used to store cash. This is most useful when you have to pay for small purchases, for example bus fares and coffee. No identification, signature or payment authorization is required for using this card. The exact amount of purchase is deducted from the smart card during payment and is collected by smart card reading machines. No change is given. Currently this product is available only in very developed countries like the United States and is being used only sporadically in India Photo card In this photograph is imprinted on a card, and then you have what is known as a photo card. Doing this helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.

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Global card Global cards allow you the flexibility and convenience of using a credit card rather than cash or travelers checks while travelling abroad for either business or personal reasons.

MasterCard and Visa MasterCard and Visa are global non-profit organizations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers world-wide may use their respective credit cards to make various purchases. Visa card: Visa, Inc., commonly called VISA, is an economic joint venture of 21,000 financial institutions that issue and market Visa products including credit and debit cards. The company was originally named Visa International Service Association. The name change occurred in the fall of 2007 as a part of Visas restructuring and IPO plan.

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Challenges faced by Indian Banking Sector

Liberalization process has increasingly exposed Indian Industry to international competition and banking being a service industry is also not an exception. Banking Sector in India too faces some challenges at local, national and international level. Indian Banks, functionally diverse and geographically widespread, have played a crucial role in the socio-economic progress of the country after independence. However, the growth led to strains in the operational efficiency of banks and the accumulation of non-performing assets (NPAs) in their loan portfolios. Banks face increasing pressure to stand out from the crowd. On the Internet, this means offering your target customers an increasingly broader range of services than your competitors and that too in unique way.

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All this has resulted in a challenge to managers of banks to develop the right mix of acquired and internally grown IT applications which suits customers expectations. Banking sector reforms and liberalization process raised many challenges before Indian Banks and for sustainable development it has become necessary to face these challenges effectively

1) Intense Competition: The RBI and Government of India kept banking industry open for the participants of private sector banks and foreign banks. The foreign banks were also permitted to set up shop on India either as branches or as subsidiaries. Due to this lowered entry barriers many new players have entered the market such as private banks, foreign banks, non-banking finance companies, etc. The foreign banks and new private sector banks have spearheaded the hi-tech revolution. Heavy weight foreign banks with huge base, latest technology innovative and globally tested products are spreading their wings and wooing away customers from other banks. For survival and growth in highly competitive environment banks have to follow the new Guru Mantra of prompt and efficient customer service, which calls for appropriate customer centric policies and customer friendly procedures. 2) Technological Up gradation: Already electronic transfers, clearings, settlements have reduced translation times. To face competition it is necessary for banks to absorb the technology and upgrade their services. However use of High-Tech sophisticated technology leaves the mainly rural, poor and even illiterate mans in the lurch to which the level of automation and efficiency of services are immaterial. 3) Competition In Retail Banking: The entry of new generation private sector banks has changed the entire scenario. Earlier the household savings went into banks and the banks then lent out money to Corporate. Now they need to sell banking. The retail segment, which was earlier ignored, is now the most important of

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the lot, with the banks jumping over one another to give out loans. The consumer has never been so lucky with so many banks offering so many products to choose from. With supply far exceeding demand it has been a race to the bottom, with the banks undercutting one another. A lot of foreign banks have already burnt their fingers in the retail game and have now decided to get out of a few retail segments completely. The nimble footed new generation private sector banks have taken a lead on this front and the public sector banks are trying to play catch up. The PSBs have been losing business to the private sector banks in this segment. PSBs need to figure out the means to generate profitable business from this segment in the days to come.

4) The Urge to Merge: In the recent past there has been a lot of talk about Indian Banks lacking in scale and size. The State Bank of India is the only bank from India to make it to the list of Top 100 banks, globally. Most of the PSBs are either looking to pick up a smaller bank or waiting to be picked up by a larger bank. The central government also seems to be game about the issue and is seen to be encouraging PSBs to merge or acquire other banks. So in the zeal to merge with or acquire another bank the PSBs should not let their common sense take a back seat. Before a merger is carried out cultural issues should be looked into. A bank based primarily out of North India might want to acquire a bank based primarily out of South India to increase its geographical presence but their cultures might be very different. So the integration process might become very difficult. Technological compatibility is another issue that needs to be looked into in details before any merger or acquisition is carried out. The banks must not just merge because everybody around them is merging. As Keynes wrote, Worldly wisdom teaches us that its better

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for reputation to fail conventionally than succeed unconventionally. Banks should avoid falling into this trap.

5) Innovation Innovation is another important force of change in the Indian banking sector. Now a days banks have become innovative and pro-active and offer top-class service to the customers. They play a dynamic role not only as a finance provider but also as a departmental source of finance. Due to this instruments and new products like factoring, leasing, merchant banking, forfeiting venture capital, corporate advisory services are emerging. These innovative services may increase the revenue with cost effective measures. 6) Diversified activities There is universal trends towards banks diversification normally through insurance depository participant services, investment banking etc. furthermore banks have diversified their activities by rendering various service like depositing gold, sale of gold, paying tax liability and telephone bills and collecting interest on securities on behalf of the customers All these diversifies activities have made the banks to develop and offer consultancy counseling and customer designed packages for efficient management of funds. The banks traditional role as financial intermediaries is gradually assuming lesser importance in their overall business as the banks diversify their activities and redefine their roles.

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CHAPTER: 6 Conclusion
One can visualize the following scenario in Indian banking in the next five to seven years. State bank of India and there associate banks aiming to come under one umbrella on one side followed by mergers and acquisitions taking place between few strong nationalized banks, foreign banks and new private banks on the other side. This will leave the small players and weak banks to become destroyed unless they device quick strategies to become larger and stronger. In this context, innovation plays a very key and crucial role of the survival of the small players and also for the large players to retain their leadership amidst cutthroat competition. Out of the box thinking is required and such thinking needs to be nurtured by the top management. ATMs of the larger banks are either fully out sourced by the individual banks or handed over to an autonomous agency by most of the banks collectively. Small players in ATMs are also trying to be a part of this shared network with regard to clearing operations, Reserve Bank of India has already initiated the required steps to gradually dispense with the physical presentation of cheques and replace the same with electronic clearing in major cities. Similarly the audit and inspection of the computerized branches is now being done in many cases by transfer of data files to the supervisory and inspecting authorities. Qualitative inspection and supervision of the banks by Reserve Bank of India is made possible by the technology, leaving the routine audit work to the concerned internal audit departments of the individual banks.

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With the automation of the routine work process and rapid technological developments, a host of customer friendly banking products with flexibility are now available to one and all. Few departments of the government (e.g. customs, income tax, central excise, commercial taxes and sales tax) have already initiated the process of EDI (Electronic Data Interface) there by reducing the manual tasks in the preparation of documentation and enhancing the levels of automation. This also facilitates standardization in documentation with uniformity. This will also ensure submission of such standard data in electronic form and scanning the physical documents where required. In the long run, this enables e-commerce to gain momentum. Therefore, banks can also equally look forward to submission of commercial documents by the trade industry through EDI in the near future. Once this is done, the need for the business segment to personally visit the bank branches to submit the documents will be eliminated. When ATMs on one side have reduce the depends of individuals customers on the bank branches to conduct their routine banking operations, the EDI when gains momentum will reduce the dependence of corporate customers on the bank branches in a similar fashion. These developments taking place mainly on account of automation will reduce the differentiation in the service delivery systems, as they are mostly standardized. Therefore, banks have to be innovative to maintain their brand values. Few banks have already started marketing aggressively for retail business loans by tying up with a select-reputed builders and conducting road shows in India and abroad to lure the salaried people and professionals. This role is intermediation of the banker between the builders and salaried people and professionals can be further extended to cover other areas as well. For example banks can connect the manufacturers of goods and services with the ultimate buyers. The process is very simple. Banks are required to have a common agency with which the entire database of all the banks should be shared. This data should be analyzed and classified into various segments say- according to activity, age, place, income, education, etc., of the organizations and people who constitute this data. When this process is done on all India bases, a wealth of

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information will be available, which can be used as a marketing tool. Few relaxations in the existing banking laws are required for this purpose. Banks can also play an active intermediary role in connecting the organizations and people at various segments, thereby facilitating the process of movement of goods and services from the manufacturers/producers to the ultimate users (of course through other intermediaries where they are not dispensable). Banks can finance the manufacturers/producers or the ultimate users while tying up them with one another thereby increasing their lending portfolio and in the process ensuring the end use of funds.

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ANNEXURE-1 ARTICLES

Survival is the mother of innovation (Times of India)

Banks can provide innovation products and services to their corporate and retail customers only when creative people are in place along with latest technology. Such people might provide innovative ideas to customers and banks. By converting their acceptable ideas into reality, banks can get an edge to compete effectively in the global village. Indian banking is also changing its shape rapidly by adopting innovative technology, products and services. Innovation is the key to success for any activity. Innovation banking is therefore not an exception. Innovation banking is possible only when we have innovative people in banking. Moreover, innovative ideas of such people have to be heard at the right time by the right people. Only then the needed encouragement and support is given to convert such innovative ideas in reality. In the past, a generation gap is considered to be with a span of at least 10 years. Whereas with the improvement in the technology followed by integration of people and places across the world on account of revolutionary changes in information and communication. The entire world has become virtually a small global village. Since all organizations and people use technologies, we find that a new generation of techno savvy people emerging in a very short span of 5 years in every sphere of activity infusing dynamism and creativity leading to several innovations. Globally, usage of technology is very extensive in the financial sector of which banking sector is an integral part. Indian financial sector has made rapid strides in late 1980s and early 1990s picking up momentum with the advent of 21st century. Liberalization of the Indian economy has provided scope to the banking sector to reorient its focus by shifting from

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developmental role obligated mostly by socio-political considerations into professional financial agencies keen on preserving their bottom lines. The direction in which the Indian banking is moving presently indicates that the prevailing competition will lead to consolidation and convergence. Small players will either have to forge a merger to become big players or else they will be either extinguished or swallowed by larger players in the years to come. The pressure will equally be more on the existing large players to retain their lead over others. This emerging scenario warrants innovative approach by banks to keep themselves sailing in the sea of competition. No wonder we find a very interesting trend in the recent past in the Indian banking. The trend is the major shift from routine banking functions to a very aggressive financial marketing organization. We find most of the routines banking jobs are out source, thanks to automation made possible by technology. Direct selling agents are actively engaged by most of the foreign and new generation private sector banks for marketing all the banking products with specified targets. Therefore, the real core people who will be retained by these banks in the long run under their direct pay roles will only be experts at senior levels in marketing, corporate and retail banking specialists along with risk management professionals who will be required in view of the impending implementation of the Basle-II norms which attaches significant to assessment and management of risk factors in banking activity.

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To check Telebanking fraud, lend your ear (Times of India) Victims of identity theft may soon get another chance to save their cash. If the fraudster calls their bank to transfer money into their own account, bank officials would be able to know who is at the other end of the line simply by pressing a button that causes the phone to produce a series of clicks in the caller's ear. A message would immediately alert the bank that the person is not who they are claiming to be, and the call ended. Such a safeguard could one day be commonplace, if a new biometric technique designed to identify the person on the other end of a phone line proves successful. The concept relies on the fact that the ear not only senses sound but also makes noises of its own, albeit at a level only detectable by supersensitive microphones. If those noises prove unique to each individual, it could boost the security of call-centre and telephone-banking transactions and reduce the need for people to remember numerous identification codes. Stolen cellphones could also be rendered useless by programming them to disable themselves if they detect that the user of the phone is not the legitimate owner. Called otoacoustic emissions (OAEs), the ear-generated sounds emanate from within the spiral-shaped cochlea in the inner ear. They are thought to be produced by the motion of hair cells within the outer part of the cochlea. Typically, sounds entering the ear because these outer hair cells to vibrate, and these vibrations are converted to electrical signals which are transmitted along the auditory nerve, allowing the sound to be sensed. Crucially, these cells also create their own sounds as they expand and contract. That's because "hearing is an active process - the ear actually puts energy into the incoming sound waves to replace energy lost as sound is absorbed by the ear's structure", says Stephen Beeby, an engineer at the University of Southampton, UK, who is leading the research. "This process helps us hear things we otherwise would not, but as a result some of the energy added by the hair cells escapes as OAEs."

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ANNEXURE-2 Questionnaire

What kind of services you Provide apart from the traditionally banking service? There are many services like E-banking, tele- banking, Demat services etc. Do you provide A/cs for non-resident? Yes, the various types of A/cs like NRE, NRO. Which kind of Debit and Credit card you Provide? All types of Debit and Credit card like Smart Card, Visa card, Master Card. What are the Innovative strategies you follow to Retain your customers? Advertising in the Leading Newspapers and in Television

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Latest technology adopted by your bank? Nowadays, core banking has become talk of the day. Due to vast development in technology customer expectations have to be up kept. Banks have to be Proactive. We have technologies through which person can move cashless and can do all his transactions through Internet banking/ATM/Debit Cards/Mobile Phone etc.

Do you provide Core banking service? If yes which software you had adopted? Yes we provide core banking services B@ncs from TATA Consultancy Services.

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Bibliography

Primary data: Visit at state bank of India, Ulhasnagar-3 branch And meeting with manager Mr. H.P.Deshpande Secondary data: Books and magazines Innovations in banking and insurance -Romeo mascarenhas News papers - Economic times

Various website of banks and others Wikipedia & encyclopedia

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