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Transcript of business services
Bank Draft
Bankers Cheque
Real Time Gross Settlement (RTGS)
National Electronic Fund Transfer (NEFT)
Cash Credits
Bank overdraft
What is E-banking?
In a broad sense, it is the use of electronic means to transfer funds
directly from one account to another, rather than by cheque or cash.
The term online banking was first started in 80’s
E-banking is a delivery of banking services and products through
the internet, the cell phone, etc.
E-banking is an upshot of Globalization.
E-banking vis-A-vis Traditional banking
Speed
Accessibility
Electronic documentation
Time saving
Satisfaction to the customer
Complimentary to traditional banking
Geographical boundaries surpassed
Why E-banking?
From the banking point of view;
Differentiation of products from the others.
A combination of regulatory and competitive reasons.
Stress on branchless banking.
Increasing volumes of banking transactions.
Providing customers with cost effective services
From customer point of view;
Convenience
Low cost banking
Automated teller machineTele bankingPlastic cardsE-cheque Internet bankingVirtual banking
Specific technology discussed,
ATM Internet bankingMobile bankingTelephone banking Debit cards
The Future of
ATMsInstant cash
deposit
Pay income tax
Virtual cash on your mobile phone
Braille on keyboards
Print on Demand
Instant cheque deposit
Voice aided Machines
More secure transaction
Advantages of E-banking Transparency and disclosure practices
Facilitate the offering of more services
Increase customer satisfaction and loyalty
Competitive advantage for banks
Reduce customer attrition
Reduces the time, cost and effort in the interaction
Risk factors
Transaction and security risk
Technology risk
Strategic risk
Legal risk
Cross border risk
Issues
Legal issues
Regulatory issues
Supervisory issues
risks and issues
involved in
e-banking
DEFINITION
In financial sense
• It is a social device in which
a group of individuals (insured)
transfer risk to another party (insurer)
in order to combine loss experienced,
which
o permits statistical prediction of losses and
o provides for payment of losses from funds
contributed (premium) by all members
who transferred risk
21
Definition (Contd.)
In legal sense
It is a contract by which
one party (Insurer)
in consideration of price paid to him
proportionate to risk provides security to
the other party (Insured) that
o he shall not suffer loss, damage or prejudice
by the happening of certain specified events.
Insurance is meant to protect insured
against uncertain events which may cause
disadvantage to him
22
FUNDAMENTAL ADVANTAGES23
Transfer of risk from one person (Insured) to
another (Insurer)
Sharing (Pooling) of losses on some
equitable basis such that
fortuitous (random) losses will be indemnified
(paid)
Reduction in tension and fear
Credit multiplication
Revenue for investment
Principle of Uberrimae Fides (Utmost Good Faith) –
A positive duty voluntarily to disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not.
Non-disclosure of any fact may be unintentional on the part of the insured.
Even so such a contract is rendered voidable at the insurer’s option and it can refuse any compensation.
Any concealment of material facts is considered intentional.
FUNDAMENTAL PRINCIPLES OF INSURANCE
24
Fundamental Principles Of Insurance (Contd.)
Principle of Indemnity
• On the happening of insured event for which insurance policy is taken up insured should be replenished the amount of loss
• Insured should not derive any unwarranted benefit from a loss
• Made in following ways
Cash payment
Repair
Replacement
Reinstatement
Fundamental Principles Of Insurance (Contd.)
Principle of Subrogation
• Restitution of rights of an assured in favour of Insurer against third party for any damages caused by him in place of assured after Insurer has indemnified him for the loss
• Objectives of the principle:
i. Prevents insured from profiting from damage.
ii. Enforces rule of law that guilty is brought to
book and made to pay for the loss.
iii.Helps Insurer to partially or fully recover
amount paid for loss.
iv. Helps to lower insurance rates.
26
Principle of Contribution
It means indemnity provided for loss occurring on asset, which is insured with several insurers has to be shared pro rata
Corollary of doctrine of Indemnity and hence is applicable in case of GI.
Requisites
Insured asset/Person (in case of hospitalization insurance) must be common to all policies
Risk insured against must be common to all policies
All policies must be in force during the occurrence of loss
Fundamental Principles Of Insurance (Contd.)
Fundamental Principles Of Insurance (Contd.)
28Principle of Proximate Cause
Literally means nearest cause or direct cause.
Immediate cause of mishap, which resulted
in the loss.
While determining ‘proximate cause’
sequence of events according to their time of
occurrence is irrelevant.
Many court judgments act as precedents in
arriving at decisions while making
settlements.
The insurance company is liable to indemnify
only against the insured perils.
CLASSIFICATION OF INSURANCE
LIFEGENERAL (NON-LIFE)
PURE TERM FIRE MARINE MOTOR
ENGINEERING
AVIATION AGRICULTURAL
CONSEQUENTIAL (LOSS)
FIRE
LIABILITY
Life insurance provides a monetary benefit to a descendant's family or otherdesignated beneficiary, and may specifically provide for income to an insuredperson's family, burial, funeral and other final expenses. Life insurance policiesoften allow the option of having the proceeds paid to the beneficiary either in alump sum cash payment or an annuity.
Annuities provide a stream of payments and are generally classified asinsurance because they are issued by insurance companies, are regulated asinsurance, and require the same kinds of actuarial and investmentmanagement expertise that life insurance requires.
Life Insurance
Health Insurance
Health insurance policies issued by publicly-funded health programs, such as cost of medical treatments.
Dental insurance, like medical insurance, is protects policyholders for dental costs. In the U.S. and Canada, dental insurance is often part of an employer's benefits package, along with health insurance.
Fire insurance
Fire insurance is a insurance that cover property, such as home shop or other fixed asset protection against fire, burn Etc..
It also cover distraction of property due to fire
Marine insurance
Marine insurance and marine cargo insurance cover the loss or damage of vessels at sea or on inland waterways, and of cargo in transit, regardless of the method of transit but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss.
All-risk insurance
Bloodstock insurance
Business interruption insurance
Collateral protection insurance.
Legal expenses insurance
Locked funds insurance
Livestock
Nuclear incident insurance
Pet insurance.
Pollution insurance
Travel insurance
Other types
Speed Post-
The very high speed express service for letters and documents. Speed Post links more than 1200 towns in India, with 290 Speed Post Centres in the national network and around 1000 Speed Post Centres in the state network. For regular users, Speed Post provides delivery ‘anywhere in India’ under contractual service. Speed Post offers a money-back guarantee, under which the Speed Post fee will be refunded if the consignment is not delivered within the published delivery norms..
Instant Money Order Service (iMO)- The instant domestic money is available in 717 post offices. However no International
Money Order facility is available
international Money Transfer- As a result of the collaboration of the Department of Posts with the Western Union
Financial Services, state of the art international money transfer service is now available through post offices in India. This enables instantaneous remittance of money from 185 countries to India. The recipients can in fact collect the money in minutes after the sender has made the remittance.
services
schemes Non-postal services-
The post office has also traditionally served as a financial institution for millions of people in rural India. Currently these are some of the activities being supported:
Public Provident Fund
National Savings Certificate
Kisan Vikas Patra
Savings Bank Account
Monthly Income Scheme
Recurring Deposit Account
National Savings Scheme 1992 - discontinued from 01.11.2002
Post Office Time Deposit
Services Cable services
Cellular mobile services
Radio paging services
Fixed line services
VSAT services
DTH services