1

EMERGENCE OF DOORSTEP BANKING – MERITS AND DEMERITS

ASHWINI RAJARAM MURUKATE

DPGD/JL12/0712

SPECIALIZATION - FINANCE

WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT AND RESEARCH

YEAR OF SUBMISSION - JUNE 2014

2

Why Doorstep Banking System In this connection doorstep banking has emerged an alternative to keep traditional

flavor of relationship physically alive between a banker and a customer. In fact, this kind of banking in which banks are supposed to render banking services to their customers through their own employees or through their agents, is used by the banks to enhance their customer base in this fierce competition. It is not only winning new customers but retention of old customers too has been a cumbersome task. However, doorstep banking is one system that would go well with banks sharing a long-standing rapport with their customers, as they could cash in on relationship by cross selling other products and services. By all means, it is the customer who is going to be benefited by doorstep banking.

 So the question is why go to the bank when the bank is ready to visit your home, office, business establishment etc.? Today as life moves at a pace faster than ever, it leaves behind fewer moments for you to perform your banking transactions. This convenience banking is the numero-uno solution for people who would like to save even five or 10 minutes spent in going to an ATM, typing their login passwords, withdrawing cash and standing in serpentine queues at a bank branch.

3

How it works:Bank at your doorstep!!

4

Features of doorstep banking Opening an account: You can open an account with us in the comfort of your home or office.

Simply give us a call or contact us online and our executives will be there to help you open an

account for you.

Pay orders and demand drafts: You can request for free delivery of pay orders and demand

drafts to your home or office (within city limits of the bank branch in India). To add to this, local pay

orders and drafts drawn on own branches are now issued free of cost on various accounts and

charged nominally on some. NFO are limited to large Institutional investors and other large

investors.

Cheque pick ups: Indicate the address (within city limits of the bank branch in India) from where

you need to have a cheque picked up and our executives will be there for you.

5

Benefits No queuing at the branch, bank at your doorstep

Dedicated courier agencies for cheque pick-up

Dedicated CIT agents for cash pick up & delivery secured by a comprehensive insurance cover

Multiple verifications and identification process to ensure security

Reduced risk of carrying large sum of cash to or from the branch

To help identification, the list of agency personnel is shared with you

To confirm identification, you can check photo the id proof of agency personnel

6

DSB Architecture

7

Design Architecture / Framework The Doorstep banking Application is developed using Web based 3-Tier architecture. The

components of 3-Tier architecture are User Interface (UI) layer, Business layer and Data Access (DA) layer etc.

The Overview of entire solution is shown as follows: Target (Production) Hardware & Hardware Interfaces. Web Server: Server class machine with at least 250 MB of disk space and minimum 512 MB

RAM Application User :Any desktop/laptop machine with appropriate disk space. Technical Architecture: Enabling Software & Interfaces ON SERVER Server Operating System: Windows® / Linux Database Server: MySQL Version 4.1.x through 5.1.x Web Server: Apache SMS Gateway: SMPP Mobile App: Android

8

Technical Architecture

9

CONCLUSION Bank is offering the DSBS to its customers (Individual /Non Individual/Corporate)

who are interested to avail the said services, for pick up of cash and delivery of cash from the door step of customer:

The services are to be offered only to those customers in whose case proper KYC procedures have been followed. The service should be offered either at the residence or at the office of the customer. Customers will be pre-registered for this scheme. An agreement will be entered into with customer.

The DSBS include: i. Pick up of Cash - Maximum Limit upto Rs. 2.00 crores ii. Delivery of cash against cheques received at the counter or through Fax –

Maximum Limit Rs. 50 lacs. iii. Pickup instruments (like cheques, drafts/Pay orders, dividend warrants etc. for

clearing) This shall be offered as a complimentary facility to customers simultaneously alongwith cash pick up for which no charges to be paid.

10

LIMITATIONS Small sample size

Possibility of biased responses.

Possibility of errors in questionnaire.

Some bank may charge extra charges.

Banks may apply more rules and regulations of which customer not aware.

11

It’s convenient

Transact from your premise.

It’s hassle-free

Experienced agencies help you with your transactions.

It’s flexible

You can choose between daily services or service on call.

It’s safe

Cash-in-transit insurance.

It’s secure

Multiple verification & reconciliation procedures make

the facility foolproof.

12

THANK YOU