dedicated to students who are studying principles of banking and services

1. SERVICES TO CUSTOMERS
By
Jeffrey Joseph

3.  Stands for making something new in banking
operations by using electronic devices &
internet.
 to strengthen the operations by putting the
services faster, easy, cheaper and accurate.
 these are rightly called as
Electronic Banking.

4. 1. Faster & convenient transactions
2. No longer required to wait in long queues
3. Opening of a/c simple & easy
4. Larger customer coverage
5. Promoting banking services & products
internationally
6. Increase customer satisfaction
7. Abolishing the use of paper in transactions
8. Fund transfer become faster &convenient

5. 1) Lack of customer knowledge & skill on
computers & browsing.
2) Security risk.
a) increased no. of fraudulent bank
website
b) fake emails
c) use of Trojan horse programmes to
capture user ID & passwords
3) Viruses & worms.

6.  INTERNET BANKING
 MOBILE BANKING
 DEBIT & CREDIT CARDS
 AUTOMATED TELLERMACHINE(ATM)
BANKING
 ELECTRONIC FUND TRANSFER
 MAGNETIC INK CHARACTER READER
(MICR) TECHONOLOGY
 REAL TIME GROSS SETTLEMENT
SYSTEM(RTGC)
 DE-MATERIALIAZED ACCOUNT(DEMAT)

8. Definition
“The performance of banking activities via
the internet. online banking also known as
‘internet banking’ or ‘web banking’.

9. NON-
TRASATION
TASK
TRANSAC
TIONAL
BANKING
TASK
INTERNET
BANKING

10.  convenience banking for customers
 24/7*365
 low cost, unlimited access
 customer –banker relationship
 wider reach to public
 competitive edge
 an effective marketing tool for promotion

11. DEFINITION:
Is a system that allows customers
of a financial institution to conduct a
no. Of financial transactions through a
mobile device such as mobile phone or
personal digital assistant.

12. 1. mini statements &checking of a/c
history
2. alerts on a/c activity or passing of
thresholds
3. access to loan statement
4. insurance policy management
5. pension plan management
6. blocking of cards
7. balance checking in the a/c
8. mobile recharging

13. A. Mobile connectivity
B. User friendly
C. Cost effective
D. Reduces the risk of fraud
E. Improves customer services

14. Smart mobile users- less than
20%. Mobile banking not possible
in basic model. So, they have to
depend on SMS.
 One mobile banking a/c for one
customer(says RBI)

15. 1. BANKING – STAER – MOBILE
–CONNECT-(BOI)
2. SBI- LINE- ON – MOBILE-
(SBI)
3. BANKING- BANK- MOBILE-
HDFC (HDFC)

17. DEFINITION:
An electronic card issued by a bank
which allows bank clients, access
to their a/c to withdraw cash or
pay for goods and services

18. a) ONLINE DEBT CARDS
b) OFFLINE DEBIT CARDS
c) ELECTRONIC PURSE CARDS
d) PREPAID DEBIT CADRDS

19.  24 hours access to cash per day50,000
upto2L
 View a/c balances &mini statements
 Transfer funds between a/c’s
 Refill your prepaid mobile
 Request a cheque book & a/c statement

20. Credit card is a plastic card
issued by a financial company giving
the holder an option to borrow funds,
usually at point of sale.
Credit card charges interest & are
primarily used in short tem financing.

21. 1. make purchase on credit
2. accurate record keeping
3. cheaper for short term
borrowing
4. additional benefits

22. 1. Impulsive buyer
2. relatively expensive
3. lost or stolen cards

23. ATM banking is a banking operation
through a machine at a bank branch or
other location which enables a customer to
perform basic banking activities (checking
balance, withdrawing or transferring funds)
even when the bank is closed.

24.  Benefits to customers
 Benefits to banks
 Benefits to others

26.  “Moving funds between different account in the same or
different bank ,through the use of wire transfer, automatic
teller machines, or computers but without the use of paper
documents.”
 For ex.When you use your debit cards to make a purchase at a
store or online the transaction is processed using an EFT system.
The transaction is very similar to an ATM withdrawal ,with near
instantaneous payment to the merchant and deduction from your
checking account.
 Direct deposit is another form of an electronic funds transfer .In
this case ,funds from your employer’s bank account are
transferred electronically to your bank account ,with no need for
paper based payment systems.

27.  Its payment solution that involves directly exchanging funds
between 2 banks a/c. It is sometimes referred to as e-cheque or
e-chequing .
 EFT is faster mode of transfer of funds which facilitate
transference of funds within 24 hrs.
 They system is customer- savvy as no paper work is involved .
 There is absolutely no requirement for the beneficiary to go to
the bank since the beneficiary account is credited automatically
 In –built security system ensure safer mode of transferee of
funds.

28. Q. What looks like half apple ?

29. ANS:The other half. (UPSC – IASTopper )

30. It’s a character recognition
technology used primarily by the
banking industry to facilitate the
processing and clearance of cheques
and other documents.
The MICR encoding called the MICR line is
located at the bottom of the cheque or
other vochurer.
The technology allows MICR reader to scan
and read the information directly into a
data collection device. Unlike barcodes or
similar technologies ,MICR characters can
be easily read by humans.

31. Reasons why MICR is deemed important in Banking:
•Can quickly identify the banks that issued them. It also eliminates the
need to manually verify or validate the checks.
•Even if the MICR is covered with signature or cancellation marks, still it
can be read.
•Before MICR system was used ,it took weeks for banks to clear cheques,
but now this technology rapidly process high volume of cheques per day

32. /EFT

33.  Q. What happened when wheel was
invented?

34. ANS: It caused a revolution.

35.  Demat account is which electronically
maintained by the bank or is provided by
broker agencies where you can keep money
for transaction in share,mutual funds
purchase of gold etc.
 It has to be tagged with your saving account
from where the money will be paid if you
purchase a share etc and receive money when
you sell a share etc.

36. •A depository holds securities
of investors in electronic form.
•Depository is any place
where something is
deposited for storage or
security purposes.
•This system is also
known as scrip less
trading system.
Refers to a company, bank,
institution that holds and
facilitates the exchange of
securities
Intermediaries ( Depositories
Participants) perform their actions in
variety of securities at depository on
behalf of their client.

37.  Is an agent of depository and functions as the interacting
medium between the depository and investor.
• DP should be registered with SEBI.
• Should maintain investors securities a/c with the depository .
• He is linked to a broker who trades on behalf of investors,
• To avail the service an a/c similar to bank a/c has to be opened
with the DP.
• As per SEBI regulation ,financial institution ,banks, stock
brokers can be DP.
• Investors can choose their DP or can have more than one at a
time.

38.  Q.What will you do if I run away with your
sister?

39. ANS:The candidate who was selected
answered ” I will not get a better match for
my sister than you sir”

40.  It takes 15 mins and one has to sign on a few doted lines and
has to deposit identification proofs which may range from
passport ,pancard, ration card ,voters card etc.
 Its simple as opening a bank account:
 1st – fill up the account opening form, which is avaiable with the
DP.
 2nd -Sign the DP-client agreement, which defines the rights and
duties of DP and the person wishing to open the account.
 3rd-Receice your client account number (client id) .This client id
along with your DP id gives you unique identification in the
depository system.

41. Basis of differentiation Bank a/c Demat a/c
Form of holding Funds Securities
Used for Safekeeping of money Safekeeping of shares
Facilities Transfer of money Transfer of shares
Where to open A bank of choice A DP is of choice
Requirement of PAN no Not mandatory Mandatory
Interest accrual on
holding
Interest income is subject
to the applicable rate of
interest
No interest accruals on
securities held on demat
a/c
Minimum bal
requirement
Maintenance is specified
for certain Bank a/c
No such requirement
Either or survivor facility Available Not Available

42.  Q.If you throw a red stone into the blue sea
what it will become?

43. ANS: It will becomeWet or Sink as simple as
that. (UPSC IAS Rank 2)

44. Q. How can a man go eight days without
sleep?

45. ANS: No Problem , He sleeps at night. (UPSC
IAS Rank 98)

46. Q. If it took eight men ten hours to build a
wall, how long would it take four men to
build it?

47. ANS: No time at all it is already built. (UPSC
23 Rank Opted for IFS)

48. REMITTANCE OF FUNDS

49.  Apart from accepting deposits and lending
money, Banks also carry out, on behalf of their
customers the act of transfer of money - both
domestic and foreign.- from one place to
another.This activity is known as "remittance
business" .
• Banks issue
 Demand Drafts,
 Banker's Cheques,
 Money Orders etc. for transferring the money.

50.  Banks also have the facility of quick
transfer of money also know asTelegraphic
Transfer orTele Cash Orders.

51. Bank A -
BLR
Place A
In Remittance business, Bank 'A' at a place
'a' accepts money from customer 'C' and
makes arrangement for payment of the
same amount of money to either the
customer 'C' or his "order" i.e. a person or
entity, designated by 'C' as the recipient,
through either a Branch of Bank 'A' or any
other entity at place 'b'.
In return for having rendered this
service, the Banks charge a pre-
decided sum known as exchange or
commission or service charge.
This sum can differ from bank to
bank.
This also differs depending upon
the mode of transfer and the time
available for effecting the transfer
of money.
 Faster the mode of transfer,
higher the charges.
Bank A-
kochin
Bank
B-
Kochin
Place B

52.  A demand draft or "DD" is an instrument
most banks in India use for effecting transfer
of money. It is a Negotiable Instrument.

53.  A negotiable instrument is a document
guaranteeing the payment of a specific
amount of money, either on demand, or at a
set time, with the payer named on the
document.
 More specifically, it is a document
contemplated by or consisting of a contract,
which promises the payment of money
without condition, which may be paid either
on demand or at a future date.

55.  Type of instrument needed
 Name of the recipient
 Name of the sender
 Amount to be transferred
 Place where the transferred money is to be paid
 Mode in which money is to be paid i.e. in cash or
through a Bank Account
 Mode in which you will pay money to the Bank i.e. in
cash or by debit to your account

56.  This is the mode used when you wish to transfer money
from your account in Center 'A' to either your own account
in Center 'B' or to somebody else's account.
 In this mode of transfer, you are required to fill in an
application form similar to the one for DD, sign a charge
slip or give a cheque for the amount to be transferred plus
exchange and collect a receipt.
 The Bank will, on its own, send an order to its branch at
center 'B' to deposit the said amount in the account
number designated by you.
 This is, however, a dying product and many banks like
State Bank of India have since withdrawn this.

58. This is similar to the MailTransfer
except that the message is sent to
center 'B' by way of a telegram and the
money is deposited the next day.
The mode of instructions nowadays is
increasingly the fax.

61. Locker Annual Rentals (In Rs.)
Branch
Category/Siz
e
Small Medium Large Extra Large
Metro/Urban 3000 6000 10000 12000
Semi-Urban 1700 2500 5500 11000
Rural 1500 2200 5000 10000

62. Check for additional
charges and penalties.
You may have to pay more on the
basis of usage.
 Some banks may charge extra if you
operate the locker more than a certain
number of times, say more than 15
times a year, or for letting you access
the locker during extended banking
hours.
If you lose the key, which should be
immediately reported, charges for
opening the locker or replacing the lost
key and for changing the lock will have
to be borne by you. While some banks
include the cost in the initial security
deposit, some charge it later.

63.  Presenting Gifts to your loved ones
during festive season or on special
occasions is an integral and unique
culture in India.Traditionally, gifts
have been given in the form of cash or
other kind.

65.  A tried and tested way of carrying foreign exchange overseas.
 American ExpressTraveler's cheques are widely accepted globally as a
mode of payment in many parts of the world. It is always worthwhile
taking some of your foreign exchange in travelers' cheques as it is a
great backup to cash and cards.
 The beauty ofTravelers' Cheques is that they can be replaced if they
are lost or stolen.
 It always helps if you keep a record of your travelers' cheque numbers
in a safe place, preferably a copy with you (but not with your cheques)
and another copy at home (or somewhere where someone can fax
them to you if you need to make a claim for lost cheques).

66. Travelers Cheque

67.  Convenience : Easy to use. Secured to protect your money when on the
move.
 Choice : Available in United States Dollars (USD), Great Britain Pounds
(GBP), EURO, Japanese Yen (JPY), Australian Dollars (AUD) and Canadian
dollars (CAD).
 Acceptance : Accepted worldwide in over 400,000 locations spread across
200 countries. TCs can be encashed or used at Exchange bureaus, Banks,
Hotels Shops, Restaurants and other establishments.
 Security : Signature based security. If your cheques are lost or stolen, the
24 hour Call Centre is just a phone call away. Replacement of lost TCs is
attended to on priority across the world.
 Buy-Back :When you return back to India, you can encash any unusedTCs .
 Expiry : Valid forever! You can save any unused Travelers Cheques for
future trips.

68. THANKYOU