EMERGENCY SERVICES TO CUSTOMER BY BANK

8/22/2019 EMERGENCY SERVICES TO CUSTOMER BY BANK

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Emergency services by Banks T.Y.B & I

CHAPTER I

Introduction of Bank and Banking


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BankA bank is a financial intermediary that accepts deposits and channels

those deposits into lending activities. Banks are a fundamental component of

the financial system, and are also active players in financial markets. The

essential role of a bank is to connect those who have capital (such as

investors or depositors), with those who seek capital (such as individualswanting a loan, or businesses wanting to grow).

Banking is generally a highly regulated industry, and government

restrictions on financial activities by banks have varied over time and

location. The current sets of global standards are called Basel II. The most

recent trend has been the advance of universal banks, which attempt to offer

their customers the full spectrum of financial services under the one roof.

The oldest bank still in existence is Monte dei Paschi di Siena,

headquartered in Siena, Italy, which has been operating continuously since

1472.

The name bank derives from the Italian word banco "desk/bench",

used during the Renaissance by Jewish Florentine bankers, who used to

make their transactions above a desk covered by a green tablecloth.

However, there are traces of banking activity even in times ancient, which


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indicates that the word 'bank' might not necessarily come from the word

'banco'.

BANKING

The term Banking is defined as accepting for the purpose oflending or investment, of deposits of money from the public, repayable

on demand or otherwise, and withdrawable by cheque, draft, order or

otherwise.

The salient features of this definition are as follows:-

1. A banking company must perform both of the essential functions

a) Accepting of deposits, and

b) Lending or investing the same.

If the purpose of accepting of deposits is not to lend or invest, the

business will not be called as banking business.

2. The phrase deposit of money from public is significant. The

banker accepts deposits of money and not of anything else.


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3. It also specifies the time and mode of withdrawal of deposits. The

deposited money should be repayable to the depositors on demand

made by the latter or according to the agreement reached between the

two parties.

Banking is the business of a banker, the keeping or management

of a bank.

- THE OXFORD ENGLISH DICTIONARY


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CHAPTER II

BANKING IN INDIA & TYPES

BANKING SERVICES IN INDIA:


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In India the business of banking and credit was practices even in very

early times. The remittance of money through Hundies, an indigenous credit

instrument, was very popular. The hundies were issued by bankers known as

Shroffs, Sahukars, Shahus or Mahajans in different parts of the country.

The modern type of banking, however, was developed by the Agency

Houses of Calcutta and Bombay after the establishment of Rule by the East

India Company in 18th and 19th centuries.

During the early part of the 19th Century, ht volume of foreign trade

was relatively small. Later on as the trade expanded, the need for banks of

the European type was felt and the government of the East India Company

took interest in having its own bank. The government of Bengal took the

initiative and the first presidency bank, the Bank of Calcutta (Bank of

Bengal) was established in 180. In 1840, the Bank of Bombay and IN 1843,

the Bank of Madras was also set up.


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I. HISTORY OF BANKING IN INDIA

There are three different phases in the history of banking in India.

1) Pre-Nationalization Era.

2) Nationalization Stage.

3) Post Liberalization Era.

1)Pre-Nationalization Era

These three banks also known as Presidency Bank. The

Presidency Banks had their branches in important trading centers but

mostly lacked in uniformity in their operational policies. In 1899, the

Government proposed to amalgamate these three banks in to one so

that it could also function as a Central Bank, but the Presidency Banks

did not favor the idea. However, the conditions obtaining during world

war period (1914-1918) emphasized the need for a unified banking

institution, as a result of which the Imperial Bank was set up in1921.

The Imperial Bank of India acted like a Central bank and as a banker

for other banks.


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The RBI (Reserve Bank of India) was established in 1935 as the

Central Bank of the Country. In 1949, the Banking Regulation act was

passed and the RBI was nationalized and acquired extensive regulatory

powers over the commercial banks.

In 1950, the Indian Banking system comprised of the RBI, the Imperial Bank

of India, Cooperative banks, Exchange banks and Indian Joint Stock banks.

2) Nationalization Stages:

After Independence, in 1951, the All India Rural Credit survey,

committee of Direction with Shri. A. D. Gorwala as Chairman recommended

amalgamation of the Imperial Bank of India and ten others banks into a

newly established bank called the State Bank of India (SBI). The

Government of India accepted the recommendations of the committee and

introduced the State Bank of India bill in the Lok Sabha on 16th April 1955

and it was passed by Parliament and got the presidents assent on 8th May

1955. The Act came into force on 1st July 1955, and the Imperial Bank of

India was nationalized in 1955 as the State Bank of India.The main objective

of establishing SBI by nationalizing the Imperial Bank of India was to

extend banking facilities on a large scale more particularly in the rural and

semi-urban areas and to diverse other public purposes.


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In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight

state-associated banks were taken over by the SBI as its subsidiaries.

Name of the Bank

Subsidiary with effect from

1. State Bank of Hyderabad

1st October 1959

2. State Bank of Bikaner

1st January 1960

3. State Bank of Jaipur

1st January 1960

4. State Bank of Saurashtra

1st May 1960

5. State Bank of Patiala

1st April 1960

6. State Bank of Mysore

1st March 1960

7. State Bank of Indore

1st January 1968


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8. State Bank of Travancore

1st January 1960

With effect from 1st January 1963, the State Bank of Bikaner

and State Bank of Jaipur with head office located at Jaipur. Thus, seven

subsidiary banks State Bank of India formed the SBI Group.

The SBI Group under statutory obligations was required to open new offices

in rural and semi-urban areas and modern banking was taken to these

unbanked remote areas.

On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi

announced the nationalization of 14 major scheduled Commercial Banks

each having deposits worth Rs. 50 crore and above. This was a turning point

in the history of commercial banking in India.

Later the Government Nationalized six more commercial private sector

banks with deposit liability of not less than Rs. 200 crores on 15th April

1980, viz.

i) Andhra Bank.

ii) Corporation Bank.

iii) New Bank if India.

iv) Oriental Bank of Commerce.

v) Punjab and Sind Bank.


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vi)Vijaya Bank.

In 1969, the Lead Bank Scheme was introduced to extend

banking facilities to every corner of the country. Later in 1975, Regional

Rural Banks were set up to supplement the activities of the commercial

banks and to especially meet the credit needs of the weaker sections of the

rural society.

Nationalization of banks paved way for retail banking and as a

result there has been an alt round growth in the branch network, the deposit

mobilization, credit disposals and of course employment.

The first year after nationalization witnessed the total growth in

the agricultural loans and the loans made to SSI by 87% and 48%

respectively. The overall growth in the deposits and the advances indicates

the improvement that has taken place in the banking habits of the people in

the rural and semi-urban areas where the branch network has spread. Such

credit expansion enabled the banks to achieve the goals of nationalization, it

was however, achieved at the coast of profitability of the banks.

Consequences of Nationalization:

The quality of credit assets fell because of liberal credit extension

policy.

Political interference has been as additional malady.

Poor appraisal involved during the loan meals conducted for credit

disbursals.

The credit facilities extended to the priority sector at concessional rates.


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The high level of low yielding SLR investments adversely affected the

profitability of the banks.

The rapid branch expansion has been the squeeze on profitability of

banks emanating primarily due to the increase in the fixed costs.

There was downward trend in the quality of services and efficiency of

the banks.

3) Post-Liberalization Era:

Thrust on Quality and Profitability:

By the beginning of 1990, the social banking goals set for the

banking industry made most of the public sector resulted in the presumption

that there was no need to look at the fundamental financial strength of this

bank. Consequently they remained undercapitalized. Revamping this

structure of the banking industry was of extreme importance, as the health of

the financial sector in particular and the economy was a whole would be

reflected by its performance.

The need for restructuring the banking industry was felt greater

with the initiation of the real sector reform process in 1992. the reforms have

enhanced the opportunities and challenges for the real sector making them

operate in a borderless global market place. However, to harness the benefits

of globalization, there should be an efficient financial sector to support the


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structural reforms taking place in the real economy. Hence, along with the

reforms of the real sector, the banking sector reformation was also addressed.

The route causes for the lackluster performance of banks,

formed the elements of the banking sector reforms. Some of the factors that

led to the dismal performance of banks

were.

Regulated interest rate structure.

Lack of focus on profitability.

Lack of transparency in the banks balance sheet.

Lack of competition.

Excessive regulation on organization structure and managerial resource.

Excessive support from government.

Against this background, the financial sector reforms were initiated to

bring about a paradigm shift in the banking industry, by addressing the

factors for its dismal performance.

In this context, the recommendations made by a high level

committee on financial sector, chaired by M. Narasimham, laid the

foundation for the banking sector reforms.These reforms tried to enhance theviability and efficiency of the banking sector. The Narasimham Committee

suggested that there should be functional autonomy, flexibility in operations,

dilution of banking strangulations, reduction in reserve requirements and


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adequate financial infrastructure in terms of supervision, audit and

technology. The committee further advocated introduction of prudential

forms, transparency in operations and improvement in productivity, only

aimed at liberalizing the regulatory framework, but also to keep them in time

with international standards. The emphasis shifted to efficient and prudential

banking linked to better customer care and customer services.


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Types of banks in India

The History of banking in India dates back to the early half of the

18th century. 3 Presidency Banks that were established in the country

namely the Bank of Hindustan, Bank of Madras and Bank of Bombay can

also be referred to as some of the oldest banking institutions in the country.The State Bank of India that was earlier known as the Bank of Bengal is also

one of the oldest in the genre. To know about the types of banks in India, it is

necessary that we first comprehend the banking system so as to be able to

distinguish about its various types.

All types of Banks in India are regulated and the activities monitored

by a standard bank called the Reserve Bank of India that stands at the apex

of the banking structure. It is also called the Central Bank, as major banking

decisions are taken at this level. The other types of banks in India are placed


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below this bank in the hierarchy.

The major types of banks in India are as follows:

Public sector banks in India - All government owned banks fall in this

variety. Besides the Reserve Bank of India, the State Bank of India and its

associate banks and about 20 nationalized banks, all comprises of the public

sector banks. Many of the regional rural banks that are funded by the

government banks can also be clubbed in this genre.

Private sector banks in India - A new wave in the banking industry came

about with the private sector banks in India. With policies on liberalization

being generously taken up, these private banks were established in the

country that also contributed heavily towards the growth of the economy and

also offering numerous services to its customers. Some of the most popular

banks in this genre are: Axis Bank, Bank of Rajasthan, Catholic Syrian

Bank, Federal Bank, HDFC Bank, ICICI Bank, ING Vysya Bank, Kotak

Mahindra Bank and SBI Commercial and International Bank. The Foreign

Banks in India like HSBC, Citibank, and Standard Chartered bank etc can

also be clubbed here.

Cooperative banks in India - With the aim to specifically cater to the rural

population, the cooperative banks in India were set up through the country.

Issues like agricultural credit and the likes are taken care of by these banks.


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BANKING IN INDIA

Overview of Banking:

Banking Regulation Act of India, 1949 defines Banking as

accepting, for the purpose of lending or of investment of deposits of money

from the public, repayable on demand or otherwise or withdrawable by

cheque, draft order or otherwise. The Reserve Bank of India Act, 1934 and

the Banking Regulation Act, 1949, govern the banking operations in India.

Organizational Structure of Banks in India :

Broad Classification of Banks in India :

(1)The RBI:

The RBI is the supreme monetary and banking authority in the country

and has the responsibility to control the banking system in the country. It

keeps the reserves of all scheduled banks and hence is known as the

Reserve Bank.

(2) Public Sector Banks:


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State Bank of India and its Associates (8)

Nationalized Banks (19)

Regional Rural Banks Sponsored by Public Sector Banks (196)

(3) Private Sector Banks:

Old Generation Private Banks (22)

Foreign New Generation Private Banks (8)

Banks in India (40)

(4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

(5)Development Banks:


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Development Banks mostly provide long term finance for setting up

industries. They also provide short-term finance (for export and import

activities)

Industrial Finance Co-operation of India (IFCI)

Industrial Development of India (IDBI)

Industrial Investment Bank of India (IIBI)

Small Industries Development Bank of India (SIDBI)

National Bank for Agriculture and Rural Development (NABARD)

Export-Import Bank of India

Role of Banks:

Banks play a positive role in economic development of a country as

repositories of communitys savings and as purveyors of credit. Indian

Banking has aided the economic development during the last fifty years in an

effective way. The banking sector has shown a remarkable responsiveness to

the needs of planned economy. It has brought about a considerable progress

in its efforts at deposit mobilization and has taken a number of measures in

the recent past for accelerating the rate of growth of deposits. As recourse to

this, the commercial banks opened branches in urban, semi-urban and rural


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areas and have introduced a number of attractive schemes to foster economic

development.

The activities of commercial banking have growth in multi-

directional ways as well as multi-dimensional manner. Banks have been

playing a catalytic role in area development, backward area development,

extended assistance to rural development all along helping agriculture,

industry, international trade in a significant manner. In a way, commercial

banks have emerged as key financial agencies for rapid economic

development.

By pooling the savings together, banks can make available

funds to specialized institutions which finance different sectors of the

economy, needing capital for various purposes, risks and durations. By

contributing to government securities, bonds and debentures of term- lending

institutions in the fields of agriculture, industries and now housing, banks are

also providing these institutions with an access to the common pool of

savings mobilized by them, to that extent relieving them of the responsibility

of directly approaching the saver. This intermediation role of banks is

particularly important in the early stages of economic development and

financial specification. A country like India, with different regions at

different stages of development, presents an interesting spectrum of the

evolving role of banks, in the matter of inter-mediation and beyond.


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Mobilization of resources forms an integral part of the

development process in India. In this process of mobilization, banks are at a

great advantage, chiefly because of their network of branches in the country.

And banks have to place considerable reliance on the mobilization of

deposits from the public to finance development programmes. Further,

deposit mobalization by banks in India acquired greater significance in their

new role in economic development.

Commercial banks provide short-term and medium-term

financial assistance. The short-term credit facilities are granted for working

capital requirements. The medium-term loans are for the acquisition of land,

construction of factory premises and purchase of machinery and equipment.

These loans are generally granted for periods ranging from five to seven

years. They also establish letters of credit on behalf of their clients favouring

suppliers of raw materials/machinery (both Indian and foreign) which extend

the bankers assurance for payment and thus help their delivery. Certain

transaction, particularly those in contracts of sale of Government

Departments, may require guarantees being issued in lieu of security earnest

money deposits for release of advance money, supply of raw materials forprocessing, full payment of bills on the assurance of the performance etc.

Commercial banks issue such guarantees also.


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CHAPTER III

BANKING SERVICES & PRODUCTS


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BANKING SERVICES

Banking covers so many services that it is difficult to define it. However,

these basic services have always been recognized as the hallmark of the genuine

banker. These are

The receipt of the customers deposits The collection of his cheques drawnon other banks

The payment of the customers cheques drawn on himself

There are other various types of banking services like:

1) Advances Overdraft, Cash Credit, etc.

2) Deposits Saving Account, Current Account, etc.

3) Financial Services Bill discounting etc.

4) Foreign Services Providing foreign currency, travelers cheques, etc.

5) Money Transmission Funds transfer etc.

6) Savings Fixed deposits, etc.


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7) Services of place or time ATM Services.

8) Status Debit Cards, Credit Cards, etc.

Common Banking Products Available:

Some of common available banking products are explained below:

1)Credit Card:

Credit Card is post paid or pay later card that draws from a credit

line-money made available by the card issuer (bank) and gives one a grace

period to pay. If the amount is not paid full by the end of the period, one is

charged interest.

A credit card is nothing but a very small card containing a means of

identification, such as a signature and a small photo. It authorizes the holder

to change goods or services to his account, on which he is billed. The bank

receives the bills from the merchants and pays on behalf of the card holder.

These bills are assembled in the bank and the amount is paid to the

bank by the card holder totally or by installments. The bank charges thecustomer a small amount for these services. The card holder need not have

to carry money/cash with him when he travels or goes for purchasing.


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Credit cards have found wide spread acceptance in the metros and

big cities. Credit cards are joining popularity for online payments. The

major players in the Credit Card market are the foreign banks and some big

public sector banks like SBI and Bank of Baroda. India at present has about

3 million credit cards in circulation.

2) Debit Cards:

Debit Card is a prepaid or pay now card with some stored value.

Debit Cards quickly debit or subtract money from ones savings account, or

if one were taking out cash.

Every time a person uses the card, the merchant who in turn can get

the money transferred to his account from the bank of the buyers, by

debiting an exact amount of purchase from the card. To get a debit card

along with a Personal Identification Number (PIN).

When he makes a purchase, he enters this number on the shops PIN

pad. When the card is swiped through the electronic terminal, it dials the

acquiring bank system either Master Card or Visa that validates the PIN

and finds out from the issuing bank whether to accept or decline the

transaction. The customer never overspread because the amount spent is

debited immediately from the customers account. So, for the debit card to

work, one must already have the money in the account to cover the

transaction. There is no grace period for a debit card purchase. Some debit

cards have monthly or per transaction fees.


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Debit Card holder need not carry a bulky checkbook or large sums of

cash when he/she goes at for shopping. This is a fast and easy way of

payment one can get debit card facility as debit cards use ones own money

at the time of sale, so they are often easier than credit cards to obtain.

The major limitation of Debit Card is that currently only some 3000-

4000 shops country wide accepts it. Also, a person cant operate it in case

the telephone lines are down.

3) Automatic Teller Machine:

The introduction of ATMs has given the customers the facility of

round the clock banking. The ATMs are used by banks for making the

customers dealing easier. ATM card is a device that allows customer who

has an ATM card to perform routine banking transaction at any time

without interacting with human teller. It provides exchange services. This

service helps the customer to withdraw money even when the banks ate

closed. This can be done by inserting the card in the ATM and entering the

Personal Identification Number and secret Password.

ATMs are currently becoming popular in India that enables the

customer to withdraw their money 24 hours a day and 365 days. It provides

the customers with the ability to withdraw or deposit funds, check account

balances, transfer funds and check statement information. The advantages

of ATMs are many. It increases existing business and generates new

business. It allows the customers.

To transfer money to and from accounts.


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To view account information.

To order cash.

To receive cash.

Advantages of ATMs:

To the Customers

ATMs provide 24 hrs., 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

Wider flexibility in place and time of withdrawals.

The transaction is completely secure you need to key in Personal

Identification Number

To view account information.

To order cash.

To receive cash.

The e-chequing is a great boon to big corporate as well as small

retailers. Most major banks accept e-cheques. Thus this system offers securemeans of collecting payments, transferring value and managing cash flows.

The transaction is completely secure you need to key in Personal

Identification Number


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4) Electronic Funds Transfer (EFT):

Many modern banks have computerised their cheque handling

process with computer networks and other electronic equipments. These

banks are dispensing with the use of paper cheques. The system called

electronic fund transfer (EFT) automatically transfers money from one

account to another. This system facilitates speedier transfer of funds

electronically from any branch to any other branch. In this system the

sender and the receiver of funds may be located in different cities and may

even bank with different banks. Funds transfer within the same city is also

permitted. The scheme has been in operation since February 7, 1996, in

India.

The other important type of facility in the EFT system is automated

clearing houses. These are the computer centers that handle the bills meant

for deposits and the bills meant for payment. In big companies pay is not

disbursed by issued cheques or issuing cash. The payment office directs the

computer to credit an employees account with the persons pay.

5) Telebanking:

Telebanking refers to banking on phone services.. a customer can

access information about his/her account through a telephone call and by


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giving the coded Personal Identification Number (PIN) to the bank.

Telebanking is extensively user friendly and effective in nature.

To get a particular work done through the bank, the users may leave his

instructions in the form of message with bank.

Facility to stop payment on request. One can easily know about the cheque

status.

Information on the current interest rates.

Information with regard to foreign exchange rates.

Request for a DD or pay order.

D-Mat Account related services.

And other similar services.

6) Mobile Banking:

A new revolution in the realm of e-banking is the emergence of

mobile banking. On-line banking is now moving to the mobile world,

giving everybody with a mobile phone access to real-time banking services,

regardless of their location. But there is much more to mobile banking from

just on-lie banking. It provides a new way to pick up information and

interact with the banks to carry out the relevant banking business. The

potential of mobile banking is limitless and is expected to be a big success.

Booking and paying for travel and even tickets is also expected to be a

growth area.


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According to this system, customer can access account details on

mobile using the Short Messaging System (SMS) technology6 where select

data is pushed to the mobile device. The wireless application protocol

(WAP) technology, which will allow user to surf the net on their mobiles to

access anything and everything. This is a very flexible way of transacting

banking business.

Already ICICI and HDFC banks have tied up cellular service

provides such as Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer

these mobile banking services to their customers.

7) Internet Banking:

Internet banking involves use of internet for delivery of banking

products and services. With internet banking is now no longer confirmed to

the branches where one has to approach the branch in person, to withdraw

cash or deposits a cheque or request a statement of accounts. In internet

banking, any inquiry or transaction is processed online without any

reference to the branch (anywhere banking) at any time.

The Internet Banking now is more of a normal rather than an

exception due to the fact that it is the cheapest way of providing banking

services. As indicated by McKinsey Quarterly research, presently traditional

banking costs the banks, more than a dollar per person, ATM banking costs

27 cents and internet banking costs below 4 cents approximately. ICICI

bank was the first one to offer Internet Banking in India


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Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services anddiminishes the need for longer numbers of expensive brick and mortar branches

and staff.

Increase convenience for customers, since they can conduct many banking

transaction 24 hours a day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and

mortgages.

Financial Transaction on the Internet:

8) Electronic Cash:

Companies are developing electronic replicas of all existing payment

system: cash, cheque, credit cards and coins.

Automatic Payments: Utility companies, loans payments, and other

businesses use on automatic payment system with bills paid through direct

withdrawal from a bank account.


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9)Direct Deposits:

Earnings (or Government payments) automatically deposited into

bank accounts, saving time, effort and money.

10) Stored Value Cards:

Prepaid cards for telephone service, transit fares, highway tolls,

laundry service, library fees and school lunches.

11)Cyber Banking:

It refers to banking through online services. Banks with web site

Cyber branches allowed customers to check balances, pay bills, transfer

funds, and apply for loans on the Internet.

12) Demat:


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Demat is short for de-materialisation of shares. In short, Demat is a

process where at the customers request the physical stock is converted into

electronic entries in the depository system.

In January 1998 SEBI (Securities and Exchange Board of India)

initiated DEMAT ACCOUNTANCY System to regulate and to improve

stock investing. As on date, to trade on shares it has become compulsory to

have a share demat account and all trades take place through demat.

Advantages of Demat

The demat account reduces brokerage charges, makes

pledging/hypothecation of shares easier, enables quick ownership of

securities on settlement resulting in increased liquidity, avoids confusion in

the ownership title of securities, and provides easy receipt of public issue

allotments.

It also helps you avoid bad deliveries caused by signature mismatch,

postal delays and loss of certificates in transit. Further, it eliminates risks

associated with forgery, counterfeiting and loss due to fire, theft or

mutilation. Demat account holders can also avoid stamp duty (as against 0.5

per cent payable on physical shares), avoid filling up of transfer deeds, and

obtain quick receipt of such benefits as stock splits and bonuses.

HOW TO OPEN A DEMAT ACCOUNT?

Opening an individual Demat account is a two-step process:

You approach a DP and fill up the Demat account-opening booklet. The
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Web sites of the NSDL and the CDSL list the approved DPs.

You will then receive an account number and a DP ID number for the

account. Quote both the numbers in all future correspondence with your DPs.

So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open

yourdemat account. Let's say your portfolio of shares looks like this: 150 of

Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your

demat account. So you don't have to possess any physical certificates showing

that you own these shares. They are all held electronically in your account. As

you buy and sell the shares, they are adjusted in your account. Just like a bank

passbook or statement, the DP will provide you with periodic statements of

holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised

form. Although the market regulator, the Securities and Exchange Board of

India (SEBI), has allowed trades of up to 500 shares to be settled in physical form,

nobody wants physical shares any more.

So a demat account is a must for trading and investing.

Most banks are also DP participants, as are many brokers.

You can choose your very own DP.

To get a list, visit the NSDL and CDSL websites and see who the registered

DPs are.


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A broker is separate from a DP. A broker is a member of the stock

exchange, who buys and sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares.

You do not have to take the same DP that your broker takes. You can

choose your own.

A. Emergency Medical Services

Telephone Medical Advice

The service provider will arrange for the provision of medical advice

to NBB Platinum Cardholders over the telephone. It must be noted that a

telephone conversation, even with the local attending physician, can not

establish diagnosis and must be treated as advice only.

Medical Service Provider Referral

The service provider can also provide to NBB cardholders, upon their

request, the name, address, telephone number and if available, office hours

of physicians, hospitals, clinics, dentists and dental clinics. However, the

service provider shall not be responsible for providing medical diagnosis or

treatment. Although they will make such referrals, the quality of the

Medical Service Providers cannot be guaranteed and the final selection of a

Medical Service provider shall be the decision of NBB Cardholder.

However the service provider will exercise maximum care and diligence in

selecting the Medical Service Providers.

Monitoring of Medical Condition


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The service provider will monitor the NBB Cardholders medical

condition during and after hospitalization, subject to any and all obligations

in respect of confidentiality and relevant authorization.

Delivery of Essential Medicine or Equipment

The service provider will arrange to deliver to the NBB Cardholder

essential medicines, drugs, medical suppliers or medical equipment that are

necessary for a Cardholders care and / or treatment but which are not

available at the Cardholders location. The delivery of such medicine, drugs

and medical suppliers will be subjected to the laws and regulations

applicable locally. Please note that the service provider will not pay for the

costs of such medicine, drugs or medical suppliers and any delivery costs

thereof, and all costs must be borne by the Cardholder.

Dispatch of Physician

In the event of an emergency where either NBB Cardholder can notbe adequately assisted by telephone for possible evacuation, or the

Cardholder can not be moved and/or local medical treatment is unavailable,

the service provider will send an appropriate medical practitioner to the

Cardholder. Costs of medical practitioner, consultation charges and any

related cost thereof will be paid by the Cardholder.

Guarantee of Hospital Admittance Deposit

The service provider will guarantee or pay any required hospital

admittance deposit on behalf of NBB Cardholder up to US $ 2,500. The


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provision of financial guarantees is subject to first securing payment from

the Cardholder through his / her credit card or from funds from the family.

Arrangement of Emergency Medical Evacuation

When deemed medically necessary by the service provider, in the

event of an illness or accident, provision of air and / or surface

transportation will, medical care during transportation, communications and

all usual ancillary services required to move the Cardholder to the nearest

hospital where appropriate medical care is available, will be arranged by the

service provider. Costs for the same will be borne by the Cardholder

Arrangement of Emergency Medical Repatriation

The service provider will arrange for the return of NBB Cardholder to

the Principle Country of residence following the Cardholders Emergency

Medical Evacuation and subsequent hospitalization.

Arrangement of Transportation of Mortal Remains

In the case of death of a Cardholder whilst abroad, the service

provider will assist with the necessary formalities and will arrange for the

repatriation of the mortal remains to any location as may be selected by the

Cardholders legal personal representative.

Arrangement of Transportation to join a Cardholder


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The service provider will arrange for round trip transportation for a

person chosen by the Cardholder to join him / her if he / she has been

hospitalized abroad.

Arrangement of Return of Children

If dependent children are left unattended as a result of a Cardholders

Accident or illness, the service provider will arrange the transportation for

such children by common carrier to their normal place of residence.

Qualified attendants will be provided when deemed appropriate by our

partners.

The above services (items (4) to (11)) are charged on a case-by-case basis.

The provision of these chargeable Services is subject to the service provider first

securing payment from the cardholder through his / her NBB credit card or from

funds from the Cardholders family.

B. Emergency Legal Services

1. Legal Referral

The service provider will provide NBB Cardholders with the name,

address, and telephone number and if requested by the Cardholders and if

available, office hours for referred lawyers and legal practitioners. They will


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not give any legal advice to the Cardholders. Also, they are not responsible

for any legal fees or related charges, which is the responsibility of the

Cardholder.

2. Interpreter Referral

Our partners will provide NBB Cardholder with the name, address,

telephone numbers and if requested by the Cardholders and if available,

office hours for interpreters world wide. They will not be responsible for

any interpreting fees or related charges, which is the responsibility of the

Cardholder.


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CHAPTER VI

RISK MANAGEMENT


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RISK MANAGEMENT

Risk is inherent in any walk of life in general and in financial sectors in

particular. Till recently, due to regulate environment, banks could not afford to

take risks. But of late, banks are exposed to same competition and hence are

compelled to encounter various types of financial and non-financial risks. Risks

and uncertainties form an integral part of banking which by nature entails taking

risks. There are three main categories of risks; Credit Risk, Market Risk &Operational Risk. Author has discussed in detail. Main features of these risks as

well as some other categories of risks such as Regulatory Risk and Environmental

Risk. Various tools and techniques to manage Credit Risk, Market Risk and

Operational Risk and its various component, are also discussed in detail. Another

has also mentioned relevant points of Basels New Capital Accord and role of

capital adequacy, Risk Aggregation & Capital Allocation and Risk Based

Supervision (RBS), in managing risks in banking sector.

Background

The word Risk can be traced to the Latin word Rescum meaning Risk

at Sea or that which cuts. Risk is associated with uncertainty and reflected by way

of charge on the fundamental/basic i.e. in the case of business it is the Capital,


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which is the cushion that protects the liability holders of an institution. These risks

are inter-dependent and events affecting one area of risk can have ramifications

and penetrations for a range of other categories of risks. Foremost thing is to

understand the risks run by the bank and to ensure that the risks are properly

confronted, effectively controlled and rightly managed. Each transaction that thebank undertakes changes the risk profile of the bank. The extent of calculations

that need to be performed to understand the impact of each such risk on the

transactions of the bank makes it nearly impossible to continuously update the risk

calculations. Hence, providing real time risk information is one of the key

challenges of risk management exercise. Till recently all the activities of banks

were regulated and hence operational environment was not conducive to risk

taking. Better insight, sharp intuition and longer experience were adequate to

manage the limited risks. Business is the art of extracting money from otherspocket, sans resorting to violence. But profiting in business without exposing to

risk is like trying to live without being born. Every one knows that risk taking is

failure proneas otherwise it would be treated as sure taking. Hence risk is inherent

in any walk of life in general and in financial sectors in particular. Of late, banks

have grown.


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Risk Management framework.

A risk management framework encompasses the scope of risks to be

managed, the process/systems and procedures to manage risk and the roles and

responsibilities of individuals involved in risk management. The frameworkshould be comprehensive enough to capture all risks a bank is exposed to and have

flexibility to accommodate any change in business activities. An effective risk

management framework includes

a) Clearly defined risk management policies and procedures covering risk

identification, acceptance, measurement, monitoring, reporting and control.

b) A well constituted organizational structure defining clearly roles and

responsibilities of individuals involved in risk taking as well as managing itBanks, in addition to risk management functions for various risk categories may

institute a setup that supervises overall risk management at the bank. Such a setup

could be in the form of a separate department or banks Risk Management

Committee (RMC) could perform such function. The structure should be such that

ensures effective monitoring and control over risks being taken. The individuals

responsible for review function (Risk review, internal audit, compliance etc)

should be independent from risk taking units and report directly to board or senior

management who are also not involved in risk taking.

c) There should be an effective management information system that ensures flow

of information from operational level to top management and a system to address

any exceptions observed. There should be an explicit procedure regarding

measures to be taken to address such deviations.

d) The framework should have a mechanism to ensure an ongoing review of

systems, policies and procedures for risk management and procedure to adopt

changes.

Risk Management for BankingSAS Risk Management for Banking delivers functionality for all major risk

types, as well as data management and reporting, enabling business units within

banks to independently and separately calculate measures of risk such as market,


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credit and ALM as well as calculate firmwide risk measures using models and

correlated aggregation techniques.

The firmwide risk forecast dashboard in SAS Risk Management for Banking

The complexity, severity, and interdependencies of enterprise risk

management made abundantly clear in the recent global financial crisis means

that a more advanced, integrated and scalable infrastructure is needed to protect

the financial industry, investors and other stakeholders more appropriately going

forward. SAS Risk Management for Banking delivers functionality for all major

risk types, as well as data management and reporting, enabling business units

within banks to independently and separately calculates measures of risk such as

market, credit and ALM as well as calculates firm wide risk measures using

models and correlated aggregation techniques.

Benefits

Supports an integrated risk management strategy. SAS provides anarchitecture that supports the data requirements, methodology requirements,

usability criteria and ability to distribute key risk information effectivelyacross the enterprise for many different users. Enables innovation. Combining a fully integrated set of risk management

applications supported by a flexible risk management framework, SASprovides an infrastructure that enables banks to introduce new riskmeasurements and models within a fully transparent and auditableenvironment.
http://www.sas.com/resources/screenshot/Portal_Firmwide.gif


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Improves competitive advantage. SAS optimizes investment strategies,which results in better investment performance, while also providing theflexibility to reallocate capital and risk capacity for current and future

business opportunities.

Provides more control over and ownership of risk management data.Comprehensive data management capabilities improve data quality byeliminating or reducing data inconsistencies, and a banking-specific datamodel serves as a single source of information.

Lowers the total cost of ownership. SAS delivers a single solution thatprovides comprehensive features from data integration, to risk analysis, toreporting in a flexible and extendible software application that meets theevolving risk analysis needs of banks.

Features

Risk data management

Provides a risk data model with preconfigured data flows. Existing data flows can be modified for customer-specific conditions

and data quality controls e.g., rules for handling bad data,unclassified data or data not fitting the model.

Enables users to acquire and consolidate historical data from internaland external sources for risk analysis and reporting.

Includes a data model SAS Detail Data Store for Banking thatserves as a single source of all the information for creating a risk datawarehouse.

Eliminates or reduces data inconsistencies with automated data

quality tools.

Supports integration with third-party applications.

Provides the ability to create and amend user security for access,authentication and authorization.


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Provides audit functionality, including the creation and inquiry ofautomatic audit trails.

Risk reporting

Using SAS Stored Processes, users can configure their ownworkflows and integrate daily and ad hoc advanced risk analytics

procedures into their preferred environments. Comes with a wide array of preconfigured reporting and risk analysis

workflows.

Report framework includes sample reports, OLAP cubes andinteractive analysis results for all application components.

Provides a common reporting data model that supports the integration

and reporting of enterprise risk measures as well as decomposedmeasures at the entity, business unit, geography or any other user-defined hierarchy.

Asset and liability management

Enables valuation of traditional balance-sheet instruments, such asloans and deposits and their associated (off-balance) hedges,factoring in embedded options e.g., prepayment and withdrawal,credit risk, liquidity risk, etc.

Assesses fund transfer rates with or without risk-based spreads,such as credit and liquidity spreads and option-adjusted spreads andcalculates economic value.

Performs advanced analysis across risk types, stress testing andmodeling of liquidity risk, net interest income and economic value.

Assesses the effect of hedge instruments and analyzes optimal cashflow replication hedges.

Market risk

Enables valuation of complex market instruments, stress testing andcalculation of VaR, expected shortfall and other risk measures using avariety of methods historical simulation, covariance simulation,analytical models and advanced user-defined models.


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Decomposes portfolio risk in additive risk contributions and analyzesthe relative importance of risk factors in determining portfolio loss.

Performs back tests and scenario tests of the model.

Analyzes the effect of static and dynamic hedges and trade strategies,and determines optimal portfolios.

Credit risk

Calculates and stress tests credit exposures, taking into account theeffect of netting, collateral and margining, as well as creditderivatives book.

Performs advanced simulation of potential future exposure.

Calculates portfolio credit risk measures using advanced portfoliocredit risk models, such as actuarial models, multivariate Mertonmodels and reduced form stochastic transition matrix models.

Optimizes the credit portfolio with respect to assets held or collateralneeded or both.

Firm- wide risk

Calculates the aggregate risk using either correlation matrices orcorrelated copula aggregations of marginal risk distributions.

Perform bottom-up firmwide risk exposure calculations, taking intoaccount the different risk type sensitivity of exposures, such asmarket and credit risk.

Calculates risk-based performance of the firm based on the effectfrom balance sheet items and off-balance-sheet items.

Provides sample economic capital calculations.


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CHAPTER V

CONCLUSION


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CONCLUSION

Banking sectors has undergone various changes after the new

economic policy based on privatization, globalization & liberalization

adopted by government of India. Introduction of assets classification &

accounting norms, deregulation of intrest rate & opening up of financial

sector made Indian banking sector competitive encouragement to foreign

bank & private bank increased competition for all operators in bank info

sectors. Banks in India to adopt the new economic policy & technology was

protect by government & was having assured market due to almost statemonopoly in banking sectors.

Universal banking providing all financial service under one roof will

have more success in urban areas. In rural areas for bank marketing

personalised banking will go in long way also banks needs to offer

innovative trial or made deposit & advance of right amount of right amount

at right time in rural marketing.

It is submitted that the banking system is on the threshold of a

momentous era of change and continuity in growth and development, of

individual customer needs and corporate practices, technology and


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competitions. The role of marketing in the banking industry continues to

change. For many years the primary focus of bank marketing was public

returns. Then the focus shifted to advertising and sales promotion. That was

followed by a focus on the development of a sales culture. Now the focus is

on the individual customer meeting and even anticipating his or needs and

developing trusting, long-term relationships by delivering high quality

personalized service. Marketing both as a philosophy and an activity; is

expected to contribute immensely to the realization of goals both immediate

and future. All though all the elements of the marketing concept customer

satisfaction, profit integrated framework and social responsibility must

receive the greatest emphasis in the years a head. They must be guided by

the dictum of Mahatma Gandhi.

A customer is the most important visitor in our promises. He is most

dependent on us. We are depending on him. He is not an interruption on our

work. He is the purpose of it. He is not an outsider on our business. He is

part of it. We are not doing him a favour by serving him. He is doing as a

favour by giving as an opportunity.


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BIBLIOGRAPHY

INTERNATIONAL BANKING K VISWANATHAN

INTERNATIONAL BANKING DEEPAK ABHYANKAR

FINANCIAL MARKETS AND INSTRUMENTS L M BHOLE

INTERNATIONAL FINANCE APTE

FINANCIAL MARKETS AND SERVICES GORDAN & NATRAJAN


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WEBLOGRAPHY

GOOGLE.COM

WIKIPEDIA.COM

YAHOO.COM

ANSWERS.COM

CANARA. COM

EMERGENCY SERVICES TO CUSTOMER BY BANK

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