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EXECUTIVE SUMMARY
I AVESH .H KAZI
S.Y B.M.S
DIV:-B
ROLL NO 2313 done studies on abhyudaya bank ,as the project topic of subject business
aspects in
Banking and insurance
During the project I have done making difrent techniques to make the project more
attractive
I took and unforgotable interview on branch manerger of abhyudaya bank .kamothe
branch
I gathered information by questionair and by secondry and primary data source
And by reading the manual of bank I found many details on the bank.After studing I found the strength and weekness ,facililies of bank ,rules and
regulations,and documention required of open a account in the bank.
In this project I have studied the complete overview of abhyudaya bank
I took information from primary and secondry data source
I took the interview of branch maneger of abhyudaya bank ,kamothe
And from the manual of abhyudaya bankAnd websites of the bank I took the statics and positions on bank
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DECLARATION
I do hereby declare that this piece of project report entitled AStudy on overview of Abhyudaya Co-op. Bank busness MANAGEMENTSTUDIES subject:- business acepets in banking and insurance is a recororiginal work done by
me under the supervision and guidance ofProf. NITTYA MAM,pillias college of acts com and sci.This project work is
my own and has neither been submitted nor published elsewhere.
PLACE:panvelDATE:23/9/2011
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Introduction to Co-operative Banks
The Co-operative banks has a history of almost 100 years. The Co-operative banks are an
important constituent of the Indian Financial System, judging by the role assigned to them, the
expectations they are supposed to fulfil, their number, and the number of offices they operate.
The co-operative movement originated in the West, but the importance that such banks haveassumed in India is rarely paralleled anywhere else in the world. Their role in rural financing
continues to be important even today, and their business in the urban areas also has increased
phenomenally in recent years mainly due to the sharp increase in the number of primary co-
operative banks.
While the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and
self-employment driven activities, the co-operative banks in urban areas mainly finance various
categories of people for self-employment, industries, small scale units, home finance, consumer
finance, personal finance, etc.Some of the co-operative banks are quite forward looking and have developed sufficient core
competencies to challenge state and private sector banks.
According to NAFCUB the total deposits & lendings of Co-operative Banks is much more than
Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co-
operative Banks is attributed mainly to their much better local reach, personal interaction with
customers, their ability to catch the nerve of the local clientele.
Though registered under the Co-operative Societies Act of the Respective States (where formed
originally) the banking related activities of the co-operative banks are also regulated by the
Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and BankingLaws (Co-operative Societies) Act, 1965.
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Introduction to Abhyudaya Co-operative Ltd.
Abhyudaya Co-operative Ltd. Bank is banking is "accepting, for the purpose of lending or
investment of deposits of money from the public, repayable on demand or otherwise and
withdraw able by cheques, draft, and order or otherwise."
Abhyudaya Co-operative Ltd Bank carries on the business of banking. Abhudaya Banks also
perform certain activities which are ancillary to this business of accepting deposits and lending.
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Since Banking involves dealing directly with money, governments in most countries regulate
this sector rather stringently.
Abhyudaya Co-operative Ltd Banks provide almost all payment services by conducting checking
or current accounts for customers, paying cheques drawn by customers on the bank, andcollecting cheques deposited to customers' accounts. Abhudaya Banks also enable customer
payments via other payment methods such as telegraphic transfer. Banks have added new
payment channels like Internet banking, Mobile Banking, ATMs etc.
Bombay Mercantile Co-operative Ltd Banks' activities can be divided into retail banking, dealing
directly with individuals; business banking, providing services to mid-size business; corporate
banking dealing with large business entities; private banking, providing wealth management
services to High Net Worth Individuals; and investment banking, relates to helping customers
raise funds in the Capital Markets and advising on mergers and acquisitions. Banks are now
moving towards Universal Banking, which is a combination of commercial banking, investment
banking and various other activities including insurance
Abhyudaya Co-operative Ltd Banks in India have traditionally offered mass banking products.
Most common deposit products being Savings Bank, Current Account, Term deposit Account
and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India
guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank
of India and lend amount arrived by the formula stipulated by Reserve Bank of India at ratesprescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending
products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products
were limited to issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer
of funds.
In view of several developments in the 1990s, the entire banking products of Abhyudaya Co-
operative Ltd Banks structure has undergone a major change. As part of the economic reforms,
banking industry has been deregulated and made competitive. New players have added to the
competition. IT revolution has made it possible to provide ease and flexibility in operations to
customers. Rapid strides in information technology have, in fact, redefined the role and
structure of banking in India. Further, due to exposure to global trends after Information
explosion led by Internet, customers - both Individuals and Corporate - are now demanding
better services with more products from their banks. Financial market has turned into a buyer's
market. Banks are also changing with time and are trying to become one-stop financial
supermarkets. Market focus is shifting from mass banking products to class banking with
introduction of value added and customised products.
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A few foreign & private sector banks have already introduced customised banking products like
Investment Advisory Services, SGL II accounts, Photo-credit cards, Cash Management services,
Investment products and Tax Advisory services. A few banks have gone in to market mutual
fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed.
Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on27.4.2000 has further facilitated the entry of banks in this sector.
Abhyudaya Co-operative Ltd bank of the future has to be essentially a marketing organisation
that also sells banking products. New distribution channels are being used; more & more banks
are outsourcing services like disbursement and servicing of consumer loans, Credit card
business. Direct Selling Agents (DSAs) of various Banks go out and sell their products. They
make house calls to get the application form filled in properly and also take your passport-sized
photo. Home banking has already become common, where you can order a draft or cash over
phone/internet and have it delivered home. ICICI bank was the first among the new private
banks to launch its net banking service, called Infinity. It allows the user to access account
information over a secure line, request cheque books and stop payment, and even transfer
funds between ICICI Bank accounts. Citibank has been offering net banking to its Suvidha
program to customers.
Products like debit cards, flexi deposits, ATM cards, personal loans including consumer loans,
housing loans and vehicle loans have been introduced by a Abhudaya banks.
Abhyudaya Co-operative Ltd are also deriving benefit from the increased variety of products
and competition among the banks. Certificates of deposit, Commercial papers, Non-convertible
Debentures (NCDs) that can be traded in the secondary market are gaining popularity. Recently,
market has also seen major developments in treasury advisory services. With the introduction
of Rupee floating rates for deposits as well as advances, products like interest rate swaps and
forward rate agreements for foreign exchange, risk management products like forward
contract, option contract, currency swap are offered by almost every authorised dealer bank in
the market. The list is growing.
Public Sector Banks like SBI have also started focusing on this area. Abhudaya plans to open 100
new branches called Personal Banking Branches (PBB) this year. The PBBs will also market
Abhudaya 's entire spectrum of loan products: housing loans, car loans, personal loans,
consumer durable loans, education loans, loans against share, financing against gold..
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Banking Basis of Abhyudaya Co-operative Ltd
Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending
or investment of deposits of money from the public, repayable on demand or otherwise and
withdraw able by cheques, draft, and order or otherwise."
Most of the activities a Bank performs are derived from the above definition. In addition, Banks
are allowed to perform certain activities which are ancillary to this business of accepting
deposits and lending. A bank's relationship with the public, therefore, revolves around
accepting deposits and lending money. Another activity which is assuming increasing
importance is transfer of money - both domestic and foreign - from one place to another. This
activity is generally known as "remittance business" in banking parlance. The so called forex
(foreign exchange) business is largely a part of remittance albeit it involves buying and selling of
foreign currencies.
DOCUMENTATION FORMALITIES
Once the credit limits are sanctioned main documents are obtained fromthe client concerned.
The nature of documents varies depending upon thetype of facility sanctioned and terms of
sanction. They may include oneor more of the following-
Loan agreement conveying in terms and conditions of loan.
CIBIL (Credit Information Bureau (India) Limited)
report of theborrower company.
Valuation report of the property to be mortgaged if any.
A comprehensive credit agreement.
CRs (Confidential Report) of the borrower from the banks.
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Agreement of hypothecation of book debts.
Power of attorney to receive the business receivables.
Pledge letters of agreement in respect of documents of title togoods covering credit limits.
Insurance / contingency insurance policy.
Appropriate standard policy or specific policy.
Corporate and personal guarantee.
Documents conveying equitable mortgage on primary security i.e.fixed assets pertaining to the
project and on the additional security(collateral)
Personal guarantee of the borrower and guarantor (if any)
Compliance of registration of charge formalities.
The law governing Banking Activities in India is called "Negotiable Instruments Act 1881".
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The banking activities can be classified as:
1)Accepting Deposits from public/others(Deposits)2)Lending money to public(Loans)3)Transferring money from one place to another(Remittances)4)Acting as trustees5) Acting as intermediaries
6)Keeping valuables in safe custody7)Collection Business8) Government business
Banks Products of Abhyudaya Co-operative Ltd
Accepting deposits is one of the two major activities of the Banks.
Banks are also called custodians of public money. Basically, the money is accepted
as deposit for safe keeping. But since the Banks use this money to earn interest
from people who need money, Banks share a part of this interest with the
http://www.banknetindia.com/banking/deposits.htmhttp://www.banknetindia.com/banking/deposits.htmhttp://www.banknetindia.com/banking/deposits.htmhttp://www.banknetindia.com/banking/loans.htmhttp://www.banknetindia.com/banking/loans.htmhttp://www.banknetindia.com/banking/loans.htmhttp://www.banknetindia.com/banking/remitance.htmhttp://www.banknetindia.com/banking/remitance.htmhttp://www.banknetindia.com/banking/remitance.htmhttp://www.banknetindia.com/banking/trustee.htmhttp://www.banknetindia.com/banking/trustee.htmhttp://www.banknetindia.com/banking/trustee.htmhttp://www.banknetindia.com/banking/locker.htmhttp://www.banknetindia.com/banking/locker.htmhttp://www.banknetindia.com/banking/locker.htmhttp://www.banknetindia.com/banking/collection.htmhttp://www.banknetindia.com/banking/collection.htmhttp://www.banknetindia.com/banking/collection.htmhttp://www.banknetindia.com/banking/collection.htmhttp://www.banknetindia.com/banking/locker.htmhttp://www.banknetindia.com/banking/trustee.htmhttp://www.banknetindia.com/banking/remitance.htmhttp://www.banknetindia.com/banking/loans.htmhttp://www.banknetindia.com/banking/deposits.htm8/4/2019 Presentation Co-oprative Bank (Avesh Kazi)
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depositors. The quantum of interest depends upon the tenor - length of time for
which the depositor wishes to keep the money with the Bank - and the ease of
withdrawal. The thumb rule is, longer the tenor, higher the rate of interest and
lesser the restrictions on withdrawal, lesser the interest. Exceptions, however,
exist. Deposits are accepted from both resident (domestic) or non-resident Indian
customers.
It is the business of the banker to accept deposits so that he can lend it to others
and earn interest. Depending upon the liquidity position of the market and the
size of deposit, the earnings can vary and if the size of the deposit is big enough, it
is advisable to shop around and get the best rate.
Type of deposit accounts (Domestic Customers)
Fixed Deposit Accounts
Demand Deposits
Savings Account
Current account
Fixed Deposits
The term 'fixed' here denotes tenure. Fixed Deposit, therefore, presupposes a length of time for
which the depositor decides to keep the money with the Bank and the rate of interest payable
to the depositor is decided by this tenure.
Rate of interest differs from Bank to Bank. Generally, the rate is highest for deposits for 3-5
years.
This, however, does not mean that the depositor loses all his rights over the money for the
duration of the tenor decided. Deposits can be withdrawn before the period is over. However,
the amount of interest payable to the depositor, in such cases goes down.
Tips to the depositor:
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Decide in advance, the period for which you are not likely to need the money.
Banks pay interest depending upon their need for long or short money. Shop around for
the best rate of interest available.
Avoid Banks which do not have a sufficiently long history
If you need a part of the money before your deposit matures, seek your banker's advice
whether taking an overdraft will be beneficial.
You need to be very careful while entrusting you money to finance companies which
promise lucrative rates of interest
Demand Deposits
Savings Account
As the name denotes, this account is ideal for parking your temporary savings.
This account gives you a nominal rate of interest and you can withdraw money as
and when the need arises.
The position of account is depicted in a small book called 'Pass Book'. Such
accounts should be treated as a temporary parking area because the rate of
interest is much less than Fixed Deposits.
As soon as your savings accumulate to an amount which you can spare for a
certain length of time (even three months), shift this money to Fixed Deposit.It should be understood that your returns on the money kept in Savings Bank
account are the least but the flexibility to withdraw is the highest.
Rate of Interest on Savings Account is fixed by RBI and is currently 4%.
Tips:
Choose a relatively smaller branch of a Bank for your savings account.
To open an account, you will require a photograph and an introductionfrom an account holder, preferably a current account holder of the Branch.
Look for such a person before going to the bank.
Most banks have a minimum deposit requirement. Select a Bank whichasks for the least amount, other conditions being the same
Insist on a cheque book.
Most Banks have restrictions on deposits. Understand the restrictions wellat the time of opening the account.
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Select a Bank which has minimum restrictions
Some Banks impose service charges on activities like issue of cheque book,pass book, transactions in the account. Obtain a full schedule of service
charges before opening the account. Avoid the Banks which impose service
charges on transactions.
Current Account
Current account is an account with minimum amount of restrictions.
Most individuals do not need this account.
You need this account only if you make a number of deposits and withdrawals in
a single day and many of the deposits are drawn on outstation banks.
Banks accept deposits in current account and allow unlimited withdrawals subject
to a minimum balance. This minimum balance differs from Bank to Bank.
NO interest is payable on a current account. Opening of a current account is
indicated in the case of a business enterprise or high worth individuals who deal
with a lot of third party cheques, drafts etc. or who may at times need to borrow
money from the Bank against some security.
Tips:
Choose a relatively larger branch of a Bank for your current account which cangive additional services.
To open an account, you will require a photograph and an introduction from acurrent account holder of the Branch. Look for such a person before going to thebank
Most banks have a minimum deposit requirement. Select a Bank which asks forthe least amount, other conditions being the same
Insist on a cheque book in the first instance itself and count the cheque leaves.
Store your cheque bookcarefully.
Some Banks impose service charges on activities like issue of cheque book,
issuance of statement of account, transactions in the account. Obtain a fullschedule of service charges before opening the account.
Avoid the Banks which impose service charges on transactions
Lending money to the public
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Lending money is one of the two major activities of any Bank.
Bombay Mercantile Co-operative Ltd Banks accept deposit from public for safe-
keeping and pay interest to them. They then lend this money to earn interest on
this money.
In a way, the Banks act as intermediaries between the people who have themoney to lend and those who have the need for money to carry out business
transactions.
The difference between the rate at which the interest is paid on deposits and is
charged on loans, is called the "spread".
Banks lend money in various forms and they lend for practically every activity.
Let us first look at the lending activity from the point of view of security. Loans
are given against or in exchange of the ownership (physical or constructive) of
various type of tangible items.
Some of the securities against which the Banks lend are:
Commodities
Debts
Financial Instruments
Real Estate
Automobiles
Consumer durable goods Documents of title
Apart from the above categories, the Bombay Mercantile Co-operative Ltd Banks
also lend to people on the basis of their perceived personal worth. Such loans are
called clean and the Banks are understandably cagey about extending such loans.
The credit card arms of the various Banks, however, fill up this void.
Cash credit Account
This account is the primary method in which Banks lend money against the
security of commodities and debt. It runs like a current account except that the
money that can be withdrawn from this account is not restricted to the amount
deposited in the account. Instead, the account holder is permitted to withdraw a
certain sum called "limit" or "credit facility" in excess of the amount deposited in
the account.
Cash Credits are, in theory, payable on demand. These are, therefore, counter part
of demand deposits of the Bombay Mercantile Co-operative Ltd Bank.
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Overdraft
The word overdraft means the act of overdrawing from a Bank account. In other
words, the account holder withdraws more money from a Bank Account than has
been deposited in it.How does this account then differ from a Cash Credit Account?
The difference is very subtle and relates to the operation of the account. In the
case of Cash Credit, a proper limit is sanctioned which normally is a certain
percentage of the value of the commodities/debts pledged by the account holder
with the Bank. Overdraft, on the other hand, is allowed against a host of other
securities including financial instruments like shares, units of mutual funds,
surrender value of LIC policy and debentures etc. Some overdrafts are even
granted against the perceived "worth" of an individual. Such overdrafts are called
clean overdrafts.
Bill Discounting in Bombay Mercantile Co-operative Ltd
Bill discounting is a major activity with some of the smaller Banks. Under this type
of lending,
Bank takes the bill drawn by borrower on his (borrower's) customer and pay him
immediately deducting some amount as discount/commission.
The Bank then presents the Bill to the borrower's customer on the due date of the
Bill and collect the total amount.
If the bill is delayed, the borrower or his customer pay the Bank a pre-determined
interest depending upon the terms of transaction.
Term Loan
Term Loans are the counter parts of Fixed Deposits in the Bank
. Banks lend money in this mode when the repayment is sought to be made in
fixed, pre-determined installments.This type of loan is normally given to the borrowers for acquiring long term assets
i.e. assets which will benefit the borrower over a long period (exceeding at least
one year).
Purchases of plant and machinery, constructing building for factory, setting up
new projects fall in this category.
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Financing for purchase of automobiles, consumer durables, real estate and
creation of infra structure also falls in this category.
Classification of loans
another way to classify the loans is through the activity being financed. Viewed
from this angle, bank loans are bifurcated into:
Priority sector lending
Commercial lending
Remittance Business
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" .
Bombay Mercantile Co-operative Ltd Banks issue Demand Drafts, Banker's
Cheques, and Money Orders etc. for transferring the money.
Banks also have the facility of quick transfer of money also know as Telegraphic
Transfer or Tele Cash Orders.
In Remittance business, Bank Bombay Mercantile Co-operative Ltd' 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'.
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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 affecting the transfer of money. Faster the mode of transfer, higher the
charges.
Demand Draft
A demand draft or "DD" is an instrument most banks in India use for effecting
transfer of money. It is a Negotiable Instrument. To buy a "DD" from a Bank,
you are required to fill an application form which asks the following
information :
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
The application form along with the cheque on your account or cash is
deposited with the counter clerk who gives you a Demand Draft (which looks
like a cheque) for the amount.
Trustee Business
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Under section 3 of Indian Trusts Act, 1882 a trust is an obligation annexed to the
ownership of property, and arising out of a confidence reposed in and accepted by
the owner, or declared and accepted by him, for the benefit of another, or of
another and the owner.
Banks also act as trustees for various requirements of the corporates, Governmentand General Public
. For example, whenever a company wishes to issue secured debentures, it has to
appoint a financial intermediary as trustee who takes charge of the security for the
debenture and looks after the interests of the debenture holders. Such entity
necessarily have to have expertise in financial matters and also be of sufficient
standing in the market/society to generate confidence in the minds of potential
subscribers to the debenture. Banks are the natural choice.
For general public also the Bombay Mercantile Co-operative LtdBanks normally
have a facility called "safe custody" where Banks act as trustees.
Banks also act as bankers to trustees appointed under the act mentioned above. A
banker has a few special obligations in such accounts and accordingly special care is
taken in such accounts.
Lockers
Bankers are in the business of providing security to the money and valuables of the
general public. While security of money is taken care of through offering various
type of deposit schemes, security of valuables is provided through making secured
space available to general public for keeping these valuables.
These spaces are available in the shape of LOCKERS. The latter are small
compartments with dual locking facility built into strong, fire and burglar resistant
cupboards.
These are stored in the Bank's Strong Room and are fully secure. Lockers can
neither be opened by the hirer or the Bank individually. Both must come together
and use their respective keys to open the locker.
Hiring of Lockers is a losing proposition for the Banks, if seen in isolation as it
involves major expenditure on buying those cabinets, providing a secure place to
keep them and manning the facility so that the customers are serviced
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immediately.
Banks offer this facility as a sop to attract deposits. So do not be surprised if your
Banker requests you to make a "small" fixed deposit before a locker can be allotted
to you
Collection Business
Apart from transferring money from one place to another, Banks are also in the
business of "collecting" your money from other places. For instance, if you havereceived a payment by way of a cheque or DD drawn or payable at any station
other than your own, you can deposit it in your account with your local banker and
request for collection of the amount. The Bank will send the cheque to its branch at
that centre and get the amount collected for a small fee. The amount of cheque/
draft will be deposited in your account and the fee deducted separately from your
account. Banks also undertake collection of bills of exchange - both usance and
demand - for their business clientele
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Utilities Facilities provided by Bombay Mercantile Co-operative
Ltd
Mobile or M-bankingAfter Internet Banking, Mobile Banking or M-Banking has become the buzz
word in the industry..
Now where ever you are, you can access your bank account and you can do
lot more things like checking your account balance, transfer money to someother account, pay your utility bills online and so on, just by comfortably
sitting at your home or office.
But, the technical disadvantage of Internet Banking is, you have to haveinternet connectivity and a computer.
And here Mobile Banking comes into the picture to address the basiclimitation of Internet Banking.
So, Mobile Banking has given the traditional banking a newer look"Anywhere Banking". Now you don't need a PC or a laptop with internet
connectivity, just you need your cell phone with you
The biggest advantage Mobile Banking provides to the banks is that it helps
to cut down the costs as it's even more economic than providing tele-banking facilities where banks have to keep hundreds of tele-callers.
Additionally, Mobile Banking helps banks to upgrade the quality of services
and nature of customer relationship management. Using Mobile Banking,banks can communicate to the defined cluster of clients. The offers can be
customized and this personalization can give the banking industry a huge
mileage, even at a lower cost.
Again, using the same mobile channels, banks can up-sell and cross-selltheir highly complex financial products to the specific set of customers which
can be coupled with the selling strategies of Credit Cards, Home Loans andPersonal Loans etc. On the contrary, the service providers can also accrue
more business by providing the Mobile Banking services to their clients.Countries like Japan, Korea or Singapore where the mobile connectivity has
already reached its saturation, the service providers can make handsomebusiness by providing additional banking services to the same static client
base.
In the services front, different banking services can be provided,depending upon the banking regulations in respective countrieswhich may include Account Balance Enquiry, Account Statement
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Enquiry, Credit/Debit Alerts, Bill Payment Alerts, Cheque BookRequisition, Transaction History, Minimum Balance Alerts, FundTransfer Facilities, etc.
ATM
ATM Facilities
ATM Banking allows customer the following facilities :
Debits
Cash withdrawal
Fast cash withdrawal
Inquiry Services
Balance inquiry
Mini-statement inquiry
Linked account inquiry
Transfer Services
Cardholder accounts transfer
Administrative Transactions
Message from bank
Change PIN
Facilities available Cash withdrawal Minimum 500/- and Maximum 10000/-(per day)
Balance enquiry.
Banking Procedures:
Opening Bank A/c inBombay Mercantile Co-operative Ltd:-
A bank account shall be maintained for handling the affairs of the Exchange.1. OPENING THE BANK ACCOUNT
1.1 Selection of the Bank
The General Manager should recommend a bank which would serve as the account for the
Exchange. The selection should consider the financial strength of the bank, its convenience to
the Exchange office, and the facilities to handle all types of transactions. The institution being
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considered as the Exchange bank should be submitted to the Board of Directors for final
approval.
1.2 Obtain Proper Documents
Obtain the necessary forms to open the account, such as bank resolutions, encoding
information, signature cards, etc.1.3 Check Signers
1.31 Authorization or Removal of Check Signers
The Board of Directors has the responsibility to authorize or rescind the authorization of check
signers. Authorization of check signers is made through a letter of authority directed to the
bank, signed by the Chairman of the Board of Directors.
1.32 Manual Signers
Manual signatures should include two or more employees of the Central Processor.
1.33 Facsimile Signature Plate
Facsimile signature should be that of the General Manager.
1.4 Purchase of Bank Checks
The General Manager will obtain from the bank the transit and bank number to encode the
checks. The checks are to be purchased by the Exchange.
1.5 Bank Statements
Establish with the bank that the bank statements are to be submitted to the Central Processor
monthly.
1.6 Minimum Bank Balance
Sufficient money is to be maintained in the bank account and/or money market investments to
cover all outstanding checks, accrued expenses and an amount to support servicing. Bank
service charges (if any) should be properly expensed.
1.7 Bank Reconciliation
Bank reconciliation are to be prepared monthly with copies available to the General Manager
and the Board of Directors for review if required.
Investment of Funds on HandThe balance in the Exchange bank account should be reviewed daily by the Central
Processor, and all available funds in excess of current operating needs should be
invested as directed by the Board of Directors or its designee.
Deposit Content
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Deposit receipts will consist of remittances from members, receipts from the sale of
purchased investments, interest earnings on investments and any other miscellaneous
receipts
DISBURSEMENTS
Disbursements from the account will include, but not be limited to:
Payment to members
Payment for purchased investments
Payment of operating expenses
Bonding
Any and all persons having control of the central bank account must be bonded in an amountappropriate for the responsibility.
Closing of Existing Bank Account
CLOSING THE BANK ACCOUNT
6.1 Approval
Any decision to close the bank account will require the approval
of the Board of Directors.
6.2 Preliminary Procedures
After approval has been secured, a letter of intent to close the
bank account is to be submitted to the bank by the General
Manager to notify the bank of the Exchange's intention to close
out the account at a future date. The General manager should
request an appointment to discuss the necessary arrangements.
The bank is to be informed that the account will remain open only
as long as required to clear outstanding checks or for one year,
whichever comes first, and that final notice to close the account
will be sent by the Board of Directors at the appropriate time. A
copy of the letter of intent to close the bank account should be
submitted to the Board of Directors.
6.3 Final Closing of the Bank Account
Provisions must be made for handling outstanding checks that
may subsequently be presented to the bank for payment after the
bank account has been closed. The Board of Directors will give
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final notice that the bank account has been closed, and withdraw
the authorization of all check signers.
6.4 Destruction of Unused Checks
The Central Processor will make arrangements with a bonded
paper dealer to destroy all unused checks. Notification of whatchecks were destroyed should be available to the Board of
Directors.
Abhyudaya Bank Recruitment 2011
Abhyudaya Co-op Bank, one of the leading Urban Co-op. Banks, with
branches in various places in Maharashtra, Gujarat and Karnataka
State. Abhyudaya Co-op Bank (Multi-State Scheduled Bank) has calling
online applications from qualified and eligible candidates for the
recruitment of Branch Managers, Accountant and Asst. Accountants
vacancies.
Total no. of posts: 50 posts
Name of the posts:
1. Branch Managers: 17 posts
2. Accountant: 08 posts
3. Asst. Accountant: 25 posts
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Age limit: The candidates age is up to 45 years for the post of Branch
Manager, up to 40 years for the post of Accountant and up to 35 years
for the post of Asst. Accountant as on 01/06/2011.
Educational qualification: Candidates pass in Graduate/post graduate
from recognized university preferably with CAIIB from Indian Institute
of Banking & Finance.
Selection process: The selection would be made on the basis ofperformance in the written test followed by interview.
How to apply: The qualified and interested candidates have to apply
through online from thewww.abhyudayabank.co.inwebsite between
10/06/2011 to 25/06/2011. No other means/mode of application will
be accepted. The candidates follow the instructions at the time ofonline apply.
Instructions for online apply:
1. Candidates have to apply through online from the
www.abhyudayabank.co.inwebsite between 10/06/2011 to
25/06/2011.
2. Before apply online, candidates should have a valid e-mail ID,
incase candidates does not have a valid e-mail ID they create a new e-
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mail ID the e-mail ID should be valid for the duration of the
recruitment process.
3. Candidates are advised to keep their details of educational
qualifications and other personal details ready before applying as
these details are required to fill in the online application form.
4. After successfully submission of online application, candidates are
advised to take a print out of the online application form and preserve
it for future reference and use.
5. Candidates will have to take a print out of the call letter and pasted
their latest passport size photograph in the space provided for the
same and bring the call letters at the time of appearing for the written
examination. Candidates will not be admitted to the Written
Examination without a valid call letter.
6. Candidates are advised to visit the Banks website on 01/07/2011 to
download their call letters from the banks website by entering their e-
mail ID and Date of Birth.
7. Candidates at the time of interview attested copies of all necessary
certificates and original certificates must be brought at the time of
interview with a copy of the system generated print out of the
application.
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During studing this project I learnd how to take followings informations
CONCLUSION
The study at Abhyudaya Co-operative Bank gave a vast learningexperience to me and has helped to enhance my knowledge. During thestudy I learnt how the theoretical financial analysis aspects are used inpractice during the working capital finance assessment. I have realized
uring my project that a overview of co-operative banks own multi-disciplinaryalents
like financial, technical as well as legal know-how.
1.how to take in interview of well positioned officer
2.how to arenge the project systematically
3.how to arenge the gather information4.how to take out information from internet
5.how to prepare a ppt
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BIBLIOGRAPHY
Reference:
Books & Publications:
Banking and insurance: vipul prakashan.
Abhyudaya Bank manuals and circulars
Webliography:
Websites: www.abhyudayabank.com
www.google.co.in
www.rbi.org.in
www.wikipedia.org
www.investopedia.com