3. What is a Bank
• Bank is a financial institution or
financial intermediary that
collects deposits and channels
those deposits into lending
activities
• RBI is the central bank in India
that regularizes all the banks in
India
• There are 19 public sector banks
4. BANKING
•
•
A bank is a financial institution
The banking regulation act 1949
Defines the term banking as
“The accepting for the
purpose of lending or
investment of deposits of
money from the public ,
repayable on demand or
otherwise and withdrawal
by cheque , draft ,order or
otherwise “.
5. o
ELEMENTS OF
BANKING
THERE SHOULD BE
ACCEPTANCE OF
DEPOSITS
o THE DEPOSITS
SHOULD BE
RECEIVED FROM
THE PUBLIC
o THE DEPOSIT SHOULD
BE REPLAYABLE ON
DEMAND OR ON
THE EXPIRY OF A
TERM OR AFTER A
SPECIFIED PERIOD
o THE PURPOSE OF
6. BANK ACCOUNTS
TYPES OF BANK ACCOUNT
•
•
•
•
•
•
•
Banks in India have FIVE types
of accounts namely
SAVING ACCOUNT
CURRENT ACCOUNT
FIXED DEPOSIT ACCOUNT
RECURRING DEPOSIT
ACCOUNT
MULTIPLE OPTION
DEPOSIT ACCOUNT
7. SAVING ACCOUNT
THIS ACCOUNT IS MENT FOR PEOPLE WHO WANT TO SAVE A
PART OF THEIR INCOME FOR FUTURE .
FEATURES OF SAVING ACCOUNT
• ENCOURAGES SAVING HABITS
• ENABLES INCOME IN FORM OF INTEREST
• BANK PROVIDE CHEQUES FACILITY
• BANK PROVIDE NUMERUS SERVICES
8. FEATURES OF CURRENT ACCOUNT
THIS ACCOUNT IS OPENED BY WHO HAVE A NUMBER OF REGULAR TRANSACTION WITH BANK , BOTH DEPOSITS AND WITHDRAWALS
•
SMOOTH
TRANSACTINS
•
NO RESTRICTION ON
DEPOSIT AND
WITHDRAWL
•
•
•
CHEQUES FACILITY
•
OVERDRAFT FACILITY
NO INTEREST ON
SUCH ACCOUNTS
9. FIXED DEPOSITS ACCOUNTS
IN THIS ACCOUNT AMOUNT IS DEPOSITED
WITH BANK FOR A FIXED PERIOD OF TIME
FEATURES OF FIXED DEPOSIT ACCOUNT
•
•
•
•
•
SAVING FOR LONG PERIOD FROM 7 DAYS TO 10 YEARS
EARN HIGH INTEREST RATE
GET LOAN FACILITY
ALSO KNOW AS ‘TERM DEPOSIT ACCOUNT ‘ OR ‘ TIME
DEPOSIT ACCOUNT ‘
10. RECURRING DEPOSIT
ACCOUNT TO SAVE REGULARLY
THIS ACCOUNT IS OPENED BY THOSE WHO WANT
FOR A CERTAIN PERIOD OF TIME AND EARN HIGH RATE OF INTEREST
FEATURED OF RECURRING
DEPOSIT ACCOUNT
•
•
•
•
•
•
REGULAR SAVING HABITS
FIXED PERIOD OF 6 MONTHS
TO 10 YEARS
HIGH RATE OF INTEREST
LOAN FACILITY
BANK UTILISE FUNDS FOR
LOANS
11. MULTIPLE OPTION DEPOSIT ACCOUNT
MOD ACCOUNT IS A COMBINATION OF SAVING ACCOUNT AND FIXED DEPOSITIT ENABLES THE
ACCOUNT HOLDER TO EARN INTEREST ON MONEY
FEATURED OF RECURRING DEPOSIT ACCOUNT
• HIGH INTEREST
RATE
• CHEQUES
FACILITY
• MODs
IS
AVAILABE FOR
A PERIOD OF
3/6/12/
24
MONTHS
• ALSO KNOW AS
‘AUTO SWEEP
13. BANK DRAFT
•
•
•
•
•
REQUISION SLIP IS FILLED TO ISSUE DRAFT
MODE OF SECURE PAYMENT / FOR OUTSTATION
NO RISK OF DISHONOURE
FEE IS CHARGED BY BANK TO ISSUE DRAFT
IT IS ALSO KNOW AS ‘DEMAND DRAFT ‘ OR
‘BANKERS DRAFT’
14. BANKERS CHEQUE (PAY ORDER)
SAME LIKE BANK DRAFT (SECURE , NO RISK OF
DISHONOURE)
FEE IS CHARGED BY BANK TO ISSUE PAY ORDER
PAYMENT FOR LOCAL CLEARING DONE BY
PAY ORDER
15. • FUND TRANSFER SYSTEM
• ONLINE TRANSFER
• OPERATED BY RBI
• REAL TIME SETTLEMENT WITHOUT
•
•
•
•
NETTING
MINIMUM 2 LAKH TRANSFER
FAST TRANSFER (REAL TIME )
SERVICE CHARGE IS CHARGED
19. BANK OVERDRAFT
CASH
CREDITLOAN GIVEN AGAINST
• COUSTOMER IS
•
ALLOWED TO
OVERDRAW HIS
CURRENT ACCOUNT
•
•
• BANK GIVE THIS
FACILITY AFTER
TAKING SOME
SECURITY
•
• KIND OF TEMPORARY
LOAN
• BANK CHARGES
CURRENT ASSETS
LIKE SHARES ,
STOCKS
BONDS ETC
• CREDIT LIMIT IS
SANCTIONED AND
BORROWE MAY
WITHDRAW ANY
AMOUNT WITHIN
CREDIT LIMIT
•
• HELPFUL IN MEETING
DAY TO DAY WORKING
•
• INTREST IS CHARGED
