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INTRODUCTION
This chapter contains the information about Central
Bank of India origin, vision,
Profile :
Established in 1911, Central Bank of
India was the first Indian commercial bank, which
was wholly owned and managed by Indians. The
establishment of the Bank was the ultimate realisation
of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swedish Bank'. In fact, such was the
extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank
as the 'property of the nation and the country's asset'. He also added that 'Central
Bank lives on people's faith and regards itself as the people's own bank'.
During the past 95 years of history the Bank has weathered many storms
and faced many challenges. The Bank could successfully transform every threat
into business opportunity and excelled over its peers in the Banking industry.
A number of innovative and unique banking activities have been
launched by Central Bank of India and a brief mention of some of its pioneering
services are as under:
1921 Introduction to the Home Savings Safe Deposit
Scheme to build saving/thrift habits in all sections of
the society.
1924 An Exclusive Ladies Department to cater to the
Bank's women clientele.
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1926 Safe Deposit Locker facility and Rupee
Travelers' Cheque.
1929 Setting up of the Executor and Trustee
Department.
1932 Deposit Insurance Benefit Scheme.
1962 Recurring Deposit Scheme.
Subsequently, even after the nationalization of the Bank in the year 1969, Central
Bank continued to introduce a number of innovative banking services as under:
1976 The Merchant Banking Cell was established.
1980 Central card, the credit card of the Bank was introduced.
1986 'Platinum Jubilee Money Back Deposit Scheme'
was launched.
1989 The housing subsidiary Cent Bank Home Finance Ltd. was
started with its headquarters at Bhopal in Madhya Pradesh.
1994 Quick Cheque Collection Service (QCC) &
Express Service was set up to enable speedy collection of
outstation cheque.
Further in line with the guidelines from Reserve Bank of India as also the
Government of India, Central Bank has been playing an increasingly active role in
promoting the key thrust areas of agriculture, small scale industries as also medium
and large industries. The Bank also introduced a number of Self Employment
Schemes to promote employment among the educated youth.
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Among the Public Sector Banks, Central Bank of India can be truly
described as an All India Bank, due to distribution of its large network in 27 out of
28 States as also in 4 out of 7 Union Territories in India. Central Bank of India
holds a very prominent place among the Public Sector Banks on account of its
network of 3194 branches and 267 extension counters at various
centers throughout the length and breadth of the country
In view of its large network of branches as also number of savings and
other innovative services offered, the total customer base of the Bank at over 25
million account holders is one of the largest in the banking industry.
Customers' confidence in Central Bank of India's wide ranging services
can very well be judged from the list of major corporate clients such as ICICI,
IDBI, UTI, LIC, HDFC as also almost all major corporate houses in the country.
Vision:
Our vision is to emerge as a strong, vibrant and pro-active bank and to
positively contribute to emerging needs of the economy through harmonization of
human, financial and technological resources and effective risk control system.
Capital structure :
The authorized Capital of Central Bank of India is
15,000 million equity shares of Rs.10 each & 8,000 million are perpetual non-
cumulative preference shares. Out of which 324,141,460 equity shares of Rs.10
issued and 80,000,000 equity shares of Rs. 10 fully paid up.
General Managers
Name Designation Tel. No.Shri G Gupta Priority Sector/ Rajbhasha/ Operation/
Central Card/ Subsidiaries022-22161091
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Shri S Suresh Credit/ Credit Policy/ Loan 022-22022048
Shri K K Gupta Credit Appraisal 022-22021553
Shri R P Sharma
Zonal Manager - New Delhi 011-23318964
Shri S G Nadgonde
Zonal Manager - Kolkata 033-22301270
Shri A Ghosh New Initiative Dept/ Planning & Development/ Profitability
022-22024601
Shri G P Chitnis
HRD/ Dept of IT/ Risk Management 022-22022565
Shri N Natrajan Audit & Inspection/ House Keeping & IBR/ General Administration Dept
022-66387777
Shri R N Vadivelu
International Division/ Treasury/ MBD/ Dept of IT
022-22831592
Shri R Natarajan
Planning & Development/ Accounts/ Legal/ Recovery
022-22026776
Shri S M Deshpande
Zonal Manager - Mumbai Metro 022-22043673
Shri V P Sathe Audit/ Inspection/ Inter Branch Reconciliation/ Housekeeping
022-27580571
Shri H K Vesuna
Accounts/ Recovery/ Legal & BIFR/ HRD 022-22023326
Shri K A Somayajulu
Zonal Manager - Chennai 044-28554792
Corporate OfficeCentral Bank of India
Chander Mukhi, Narman PointMumbai – 400 021
Tel: 022 – 6638 7777
Zonal Offices
AGRABlock No. 37/2/4, Sanjay PlaceAgra – 282 002
Tel.: 0562 – 2850154/3424Fax: 0562 – 2853698/1341Email: [email protected]
AHMEDABADCentral Bank Building Tel.: 079 – 25503586
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P.O. No. 205, Lal DarwajaAhmedabad – 380 001
Fax: 079 – 25505995Email: [email protected]
BHOPAL9, Arera Hills, Jail RoadBhopal – 462 011
Tel.: 0755 – 2674037/36/35/34/33Fax: 0755 – 2552019Email: [email protected]
CHANDIGARHP. B. No. 13, No. 58-59Bank Square, Sector – 17BChandigarh – 160 017
Tel.: 0172 – 2702994/98Fax: 0172 – 2704047Email: [email protected]
CHENNAI48/49, Monteith RoadEgmore,Chennai – 600 008
Tel.: 044 – 28554792/4692/4620Fax: 044 – 28551260Email: [email protected]
GUWAHATIG. S. Road, Central Bank BuildingBhangagarh,Guwahati – 781 005
Tel.: 0361 – 22457651/52Fax: 0361 – 22452154 Email: [email protected]
HYDERABADP. B. No. 522, 710-712Mahapathram Road, Bank StreetHyderabad – 500 195
Tel.: 040 – 24740361/64, 24611402-05Fax: 040 – 24742841 Email: [email protected]
KOLKATACentral Bank Building33, Netaji Subhash RoadKolkata – 700 001
Tel.: 033 – 22301270/1275/7007Fax: 033 – 22309864Email: [email protected]
LUCKNOWP. B. No. 10, Akash Deep23, Vidhan Sabha RoadLucknow – 226 001
Tel.: 0522 – 2611301-4Fax: 0522 – 2621213Email: [email protected]
MUMBAI METRO ZONAL OFFICEStandard Building, 1st FloorD. N. Road,Mumbai – 400 023
Tel: 022 – 22047229/7301/7304Fax: 022 – 22044720Email: [email protected]
MUZAFFARPURPawapuri Vihar Building, N. H. 28Near Bhagwanpur ChowkMuzaffarpur – 842 001
Tel: 0621 – 22251855Fax: 0621 – 2251784Email: [email protected]
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NAGPUROriental Building, 2nd FloorKamptee Road,Nagpur – 440 001
Tel.: 0712 – 2520361-63Fax: 0712 – 2520365Email: [email protected]
NEW DELHIP. B. No. 7007, Link HousePress Area, 3 Bahadurshah Jafar Road,New Delhi – 110 002
Tel.: 011 – 23318964, 23319268/69Fax: 011 – 23311332/237Email: [email protected]
PATNA2nd Floor, Block BMaurya Lok ComplexDak Banglow Road,Patna – 800 001
Tel.: 0612 – 2226607Fax: 0612 – 2221898Email: [email protected]
PUNEP. B. No. 98, 317M. G. Road,Pune – 411 001
Tel.: 020 – 26131611-17Fax: 020 – 26131618Email: [email protected]
RAIPUR1st Floor, Block ‘C’Bombay Market, G. E. Road,Raipur – 492 001
Tel.: 0771 – 2226756, 2225171Fax: 0771 – 2234895Email: [email protected]
HISTORY OF CENTRAL BANK OF INDIA
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Sir Sorabji Pochkhanawala established Central Bank of India in 1911. It was
the first Indian commercial bank, which was wholly owned and managed by
Indians. Sir Pherozeshah Mehta was the first Chairman of the Bank. In 1969,
Central Bank of India was nationalized along with 13 other banks.
In its 95 years of history, Central Bank of India has launched a number of
innovative and unique banking activities. Major among them are:
1921: Introduction of the Home Savings Safe Deposit
Scheme to build saving/thrift habits in all sections
of the society.
1924: An Exclusive Ladies Department to cater to the
Bank's women clientele.
1926: Safe Deposit Locker facility and Rupee Travellers'
Cheques.
1929: Setting up of the Executor and Trustee department.
1932: Deposit Insurance Benefit Scheme.
1962: Recurring Deposit Scheme.
1976: The Merchant Banking Cell was established.
1980: Centralcard, the credit card of the Bank was
Introduced.
1986: 'Plantinum Jubilee Money Back Deposit Scheme'
Was launched.
1989: The housing subsidiary Cent Bank Home Finance
Ltd. was started with its headquarters at Bhopal in
Madhya Pradesh.
1994: Quick Cheque Collection Service (QCC) & Express
Service were set up to enable speedy collection of
Outstation cheques.
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Central Bank of India has a large network of 3161 branches and 270
extension counters spread over 27 States and 4 Union Territories. The Bank has a
total customer base of over 25 million account holders, which is one of the largest
in the banking industry.
OBJECTIVES OF THE STUDY
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The objectives of the study are based on the concept of Income &
Investment Sources. The researcher has tried to represents the concept of different
sources of Incomes & Investments analysis in this project. The various objectives
are discussed as under:
To understand the issue of Income & Investment Sources as practiced by the
bank.
To know about the different sources Incomes & Investment of the bank.
To discuss about the role of Central Bank of India in banking field.
To know about the benefits of investments to the bank.
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PROFILE CENTRAL BANK OF INDIA
Central Bank of India
Type PublicBSE & NSE:CENTRALBK
Industry FinancialCommercial banks
Founded 21 December 1911 (101 years ago)
Headquarters Mumbai, India
Key people Shri M V Tanksale, Chairman & Managing Director
Revenue 19,149.50 crore (US$3.49 billion) (2010-11)
Website www.centralbankofindia.co.in
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PRODUCT OF CENTRAL BANK OF INDIA
This chapter contains information about different products offered by the
central bank of India for the benefit of its customers.
CBI has offered a choice of various deposit schemes with unique features and
facilities. These schemes suit different kinds of banking needs you might have.
Money multiplier deposit certificate
The interest accrued gets added back to the principal giving you an effective
interest rate that is higher than the contracted interest rate.
Amount of deposit minimum amount of Rs. 100/- and multiplies of Rs.
100/-.
Period of deposit minimum period of 6 months and upto a maximum
of 120 months.
Rate of interest The rate of interest shall be the appropriate rate
prevailing on the date of the deposit for the period so
selected.
Premature payment Payment before maturity is available as per
prevailing rules.
Loans/advance Loan/advance facility is available under the scheme
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against deposit as per prevailing rules.
Khazaana deposit scheme
Khazaana deposit scheme offers you the double benefits of easy liquidity
and high returns. It is also a flexible scheme that allows you to withdraw a part of
the deposit amount as and when required.
Amount of deposit minimum amount of Rs. 5000/- and multiplies of Rs.
1000/-.
Period of deposit minimum period of 30 days and upto a maximum of
120 months.
Rate of interest The rate of interest shall be the appropriate rate
prevailing on the date of the deposit for the period so
selected.
Premature payment You will be permitted to withdraw upto a maximum
of 10 times during the entire period of deposit.
Loans/advance
against deposit
Loan/advance facility is available under the scheme
as per prevailing rules.
Monthly interest deposit receipt
The MIDR scheme provides you with monthly interest earnings, without
affecting the principal amount.
Amount of deposit minimum amount of Rs. 5000/- and multiplies of Rs.
1000/-.
Period of deposit open an account for periods ranging from 12 months
to 120 months.
Rate of interest The rate of interest shall be the appropriate rate
prevailing on the date of the deposit for the period so
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selected.
Premature payment Payment before maturity is available as per
prevailing rules.
Loans/advance
against deposit
Loan/advance facility is available under the scheme
as per prevailing rules.
Quarterly interest deposit receipt
QIDR provides you quarterly interest without affecting the principal
amount.
Amount of deposit minimum amount of Rs. 5000/- and multiplies of Rs.
1000/-.
Period of deposit open an account for periods ranging from 12 months
to 120 months.
Rate of interest The rate of interest shall be the appropriate rate
prevailing on the date of the deposit for the period so
selected.
Premature payment Payment before maturity is available as per
prevailing rules.
Loans/advance
against deposit
Loan/advance facility is available under the scheme
as per prevailing rules.
Centrals flexi yield deposit scheme
Under this scheme depositors can avail floating rate of interest, which is
higher than the interest rate on normal term deposits.
Amount of deposit Single deposit of Rs. 1 lac and above.
Period of deposit One year and above and upto a maximum of 10
years.
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Rate of interest The rate of interest shall be the appropriate rate
prevailing on the date of the deposit for the period so
selected.
Premature payment In case the deposit will be treated as normal deposit
and interest will be paid as per our prevailing rates
applicable to normal deposits.
Loans/advance
against deposit
Loan/advance facility is available under the scheme
as per prevailing rules.
LOANS
You can avail of easy and convenient loan offers for purposes ranging from
housing finance to higher education to purchase of computer. Our loans enrich life
and enhance lifestyles.
Cent buy
Facility &
purpose
You can avail of the term loan facility at all branches
for purchase of consumer durables, two wheelers and
four wheelers.
Eligibility 1) Permanently employed persons (govt./private
sector)
2) Others have regular and known sources of
income.
3) For four wheelers, applicant should be income tax
assessee.
Quantum of loan 80% of the cost of four wheelers. Maximum Rs. 10 lacs.
85% of the cost of two wheelers and other consumer
durables. Maximum Rs.2 lacs.
Security Hypothecation of articles/vehicles purchased out of
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loan. In case f salaried employees, when installments
are received from salary.
Rate of interest PLR + 2%
Processing
charges
1% of the loan amount. Minimum Rs.100/-.
Repayment 36 to 84 equated monthly installments (EMIs).
Cent Vyapari
Objective To provide finance to small and medium traders.
Implemented by Semi-urban and & urban branches.
Nature of facility Cash credit.
Eligibility Small and medium traders including retailers and
distributors.
Maximum limit Rs. 5 lacs per borrower.
Margin Minimum 25% on stocks.
Rate of interest Upto Rs. 2 lacs – PLR
Over Rs.2 lacs and upto Rs. 5 lacs –PLR + 4%
Security 1) Hypothecation of stocks.
2) E.M. of land and building.
Processing fees Upto Rs. 25000 Nil
Above Rs.25000 to Rs.1 lac - Rs.250/-
Above Rs 1 lac – Rs.2lacs - Rs. 500/-
Above Rs.2 lacs – Rs.5 lacs - Rs.2500/-
Personal Loan – To Employees Of Corporate Clients
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Eligibility Permanent employees of large corporate clients.
Purpose To meet any personal/domestic expenses of the
borrower.
Quantum of loan Ten times of gross salary subject to a maximum of Rs. 1
lac.
Rate of interest PLR + 4%
Mode of
repayment
36 months in equated monthly instalments commencing
one month after the month of disbursement.
Processing
charges
1% of the loan amount.
Cent mortgage
Facility &
purpose
Term loan facility to meet any sort of personal or
business expenses.
Eligibility Loan against mortgage of property situated in
metro/urban/semi-urban areas.
Target group Individual singly or jointly, traders, businessmen,
professionals or self employed persons etc. having
known sources of net income of Rs. 10000/- per month
or more.
Quantum of loan 20 times net monthly income subject to minimum
amount of Rs.1.00 lac and maximum of Rs. 10 lacs.
Security Residential house/flat, commercial or industrial property
situated in metro/urban/semi-urban centers only in the
name and possession of the borrower. The property
value should be equal to 200% of the loan amount.
Insurance The property will be insured against fire, riots and
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wherever required against earthquake, flood, lightning
etc. by the borrower with usual bank clause for the full
value of the property.
Rate of interest PLR + 4%
Processing
charges
1% of the loan amount.
Repayment Advance Cheque signed by the borrower for repaying
monthly instalments along with letter of deposit will be
obtained.
Cent trade
Facility & purpose Overdraft limit for business requirements.
Eligibility/Target
group
Traders/retailers/distributors/commission
agents/arhatiyas.
Quantum of loan Equitable mortgage of property situated in
metro/urban/semi-urban with market value of
200% of overdraft limit and in the name and
possession of the borrower.
Insurance The property will be insured with the usual bank
clause for full value of the property.
Rate of interest Upto Rs. 2.00 lacs - PLR
Over Rs. 2.00 lacs - PLR + 2%
Processing charges Upto Rs. 25000 - Nil
Above Rs. 25000 upto Rs. 100000 - Rs.
250/-
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Above Rs. 100000 upto Rs. 200000 - Rs.
500/-
Above Rs. 200000 upto Rs. 1000000 - Rs.
2500/-
Above Rs.1000000 upto Rs.2000000 - Rs.
5000/-
Required details Application form.
Financial statements.
Copy of sales tax registrations.
Copies of sales tax returns.
Credit report from previous bankers/market report.
Details of property offered as security with its
present valuations.
Central kisan credit card
Objectives Loan for farmers on the basis of their holdings for
purchasing agricultural inputs including cash
withdrawals for their production needs.
Eligibility CKCC will be provided to any farmer to cater
to his short-term credit requirements.
Farmers having good track record for past 2
years with our bank as a borrower or depositor and
not being defaulter to any credit institution would be
considered.
CKCC will be issued to farmers in the form
of card-cum-passbook incorporating the name,
address, particulars of land holding, borrowing
limit, validity period which will serve both as an
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identity card as well as facilitate recording of
transactions on an ongoing basis.
Security margin In conformity with the agriculture loan.
Rate of interest Same rate of interest as are applicable to crop loans
and activities allied to agriculture.
SERVICES
Central card
It is a unique credit card offering you innumerable facilities &
convenience. It offers you the freedom to spend at a large number of member
establishments.
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Facilities offered by central card:
Our domestic card is accepted all over India and Nepal having more than
110000 merchant outlets.
All retail outlets, petrol pumps, Indian railways, airlines, nursing homes, hotels,
restaurants, departmental stores and grocery stores etc. now accept central card.
Mail order/telephone order, Internet transactions can also be made through
central card with prior approval/authorization from our system.
Group Accident Insurance Scheme coverage upto Rs. 1 lakh.
Central Card Electronic
Central card electronic is a new “entry level credit product” for the
emerging, untapped market segments that previously did not have access to
traditional bank card payment products.
Features:
It is designed for use only at electronic terminals. Acceptance at non-
terminalised merchants is not allowed.
Account information is printed and not embossed on the card.
24-hour customer call centers are available on India.
There is zero lost card liability.
Card will be replaced in seven days.
You will get free accident insurance cover upto Rs. 100000/-
You will get free lost card insurance cover to the extent of credit limit.
You will be allowed cheque encashment facility, upto Rs. 2500/- at all the
branches of CBI.
There is no fear spending over the limit, as only transactions within the
available limits would be authorized.
Cash withdrawal limit:
- Domestic card -Rs. 5000/- p.m.
- Global card -Rs. 15000/- p.m.
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Fees and charges:
There is no joining fee.
An annual fee of Rs. 400/- is charged every year in advance.
The card is issued/renewed every two years.
A nominal fee of Rs. 50/- is charged for a photo card.
Debit Card
Features:
Direct online debit to your savings or current account.
Completely safe and secure PIN based card.
Globally accepted at merchant establishments displaying the maestro/cirrus
logos.
24-hour customer call centers available in India.
Zero lost card liability.
Replacement card.
Itemized billing on your statement/passbook.
Fees & charges:
There is no transaction charge at the ATMs of CBI.
Transaction charges are levied only at non-central bank maestro.
* Rs. 30 for cash withdrawal
* Rs. 6 for balance enquiry
Cash Management Services
Who can avail cash management services?
Corporate
Public, private and joint sector Cos.
Existing partnership firms
Existing proprietorship firms
Individuals & institutions
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Benefits to customers:
Better cash management
Regular computerized MIS/reports
Instant liquidity
Faster and higher turnover
Higher income and profitability
Travelers’ Cheques
Central bank’s travelers’ cheque are available in denominations of Rs. 100/-,
Rs. 500/-, Rs. 1000/-, Rs. 2500/- and Rs. 5000/-.
Charges Rs. 1/- per Rs. 100/-.
They are encashable at par at all the branches of central bank and other leading
nationalized banks.
They are valid till encashed.
Gift Cheques
Central bank gift cheques are ideal gifts for all occasions.
They are available in denominations of Rs. 11/-, Rs.25/- Rs.51/- and Rs. 101/-.
Issued free of charge and payable at par, at all the branches of central bank.
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This chapter contains the different innovations in banking products such as E-
Banking, Mobile Banking, Debit Cards, Credit Cards, ATM, Internet
Banking.
Introduction:
With the trend of globalization all over the world, it
is difficult for any nation whether big or small, developed, to remain isolated from
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what is happening around. The growth of e-commerce and Internet has
transformed the world into the GLOBAL VILLAGE. Fast development in
electronic technology has concerned the computers to take over the bank counters
and to convert brick banking into electronic banking.
Usage of technology by banks is due to challenge of competition, rising
consumer expectations and shrinking margins of banks, which lead to reduction
in cost, and enhancement of productivity, efficiency and customer convenience.
Meaning: E-banking means, “application of electronic technology
towards transfer of funds through an electronic terminal, computer or
magnetic tape to conduct various transactions like cash receipts, payments,
transfer of funds etc.”
It is often known as banking on net. It does not involve any physical
exchange of money, but it’s all done electronically, from one account to another,
using the Internet. With the advent of e banking, customers are benefited by
unlimited accessibility through the network of Automated Teller Machines,
personal computers or even through mobile phones. Customer can perform
various banking transactions such as balance enquires, bill payments, and
transaction histories, transfer money between accounts, without having to step to
office of the branch.
Features of e banking:
Anywhere any time banking: customers can avail banking
facility while sitting at their home/office.
Globalization of service: E-Banking has a special feature of
globalising bank’s services all over.
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Intense competition: E-Commerce is a product of handling intense
competition among various banks.
Cash less banking: E-Commerce also provides feature of cash less
banking as cash is not require in raw form but electronic
cash like debit or credit cards may serve the purpose.
Promptness: Another feature of E-Commerce is provides promptness
in services.
Process of E-Banking/ procedure of E-Banking
E-Banking process can be explained with the help of following diagram and
explanation as under:
Log on to website
Verification
Of password
Final Approval
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To make the use of E-Banking user has to go to the World Wide Web and
log on to the website.
Next step follows verification of user ID and password by the website
server.
As soon as password is approved on the server, then processing of
information will start on the web.
In this step, credit card number will be demanded for online transaction.
If all security measures are completed then the transaction is approved
accordingly.
Advantages of E-Banking:
Importance of E-Banking can be explained from four aspects:
I. Benefits to banks
Reduction in cost: E-Banking is helpful to banks by reducing the cost of
various transactions as compared to traditional cost by way of ATM’s Telephone
banking.
Processing Of information
Credit Card request
Advantages
To banks To customers
To
Govt.
To merchant
Trader
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Global coverage: E-Banking provides global network coverage of bank’s
services i.e. through the concept of ‘Anywhere Anytime Banking’.
Good customer relationship: E-Banking helps in attracting and retaining the
customer by properly handling their grievances.
Reduction in paper work: E-Banking helps in eliminating endless paper
based bank statements, spreadsheets, bulky books of accounts, ledger including
the use of calculator.
Reduction in frauds and misappropriations: Through E-Banking frauds and
misappropriations can be reduced as inter branch reconciliation is possible
through internet.
II.Benefits to customers
Anytime banking: E-banking provides 24 hours, 365 days services to
customers.
Anywhere banking: customers can avail any sort of banking services from
anywhere around the globe from sitting at anyplace.
Prompt services: Customer can avail the services of details regarding their
accounts and transactional details instantly.
On line purchase: Customer can buy product of bank or invest in
any scheme without actually insisting the bank branch but only through online.
Saving in time: With the help of E-banking there is no need for bank
customers to stand in queue for hours to complete financial transactions.
III. Benefits to government
Transparency in transactions: E-Banking provides transparency in
transactions i.e. access to information is possible easily.
Global market: With the help of E-Banking products of our country will get
global market to be popularized properly.
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Risk of carrying cash: E-Banking provides the facility of cash less banking
which helps in growth of economy.
IV. Benefits to merchant traders
Promotion of business: with the help of E-Banking business of merchants
traders will be promoted because of increased purchasing power of credit holder.
Immediate settlement: E-Banking helps settlement, and payment of cash
is possible by the customer.
Avoids risks: it helps merchants bankers also as there is no risk of
handling cash.
Limitations of E Banking:
Problems of security: Security and privacy aspects are major issue in case
of E-Banking transaction. Various sites are not properly locked at to ensure
weather customer’s money is safe in cyber world or not.
High cost: The infrastructural cost of providing E-Banking facility is very
high. The banks not only have to automate front-end services but also back office
services, which involves high cost.
Lack of awareness: Another great hindrance is lack of awareness because
effective and wide media efforts in publishing Internet banking need to be
emphasized.
Lack of computerization: Lack of computerization and low density of
telephone lines is also a bottleneck for online banking. In India, out of 65000
bank branches, only 5000 branches are computerized.
Wrong assumption by people: Many people are away from net banking on
the assumption that it is more expensive than the traditional method of dealing
with bank transactions. They still prefer going to bank to perform transactions.
Types of E-Banking services
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1.Automatic Teller Machine (ATM): ATM facility was started in early 1990’s
by foreign banks like HSBC, City bank. ATM is made to work 24
Hrs a day. For the purpose of withdrawing cash from ATM machine, plastic
currency and debit cards are used.
2.Credit Cards: Credit card is another facility produced by E-Banking. Credit
card is a product with the help of which a customer can avail various facilities or
buy products/services without making immediate payment and that payment
could be made at later stage of time.
3. Mobile Banking: Mobile banking provides customer to access their account
on mobile phone screen. Routine banking transactions can be performed by just
punching a few buttons on the mobile.
4. Telephone Banking: Tele banking is another main service provide by e-
banking Tele banking is a service where banks get various phone calls during
their working hours. It helps the user to transact various transactions while
remaining at home.
5.Electronic Fund Transfer (EFT): E-Banking has given a system of
electronically transferring funds .i.e. EFT which involves transfer of funds from
bank account of one customer to bank account of another customer electronically.
This is done through electronic data interchange (EDI).
6. Electronic Cheques: E-cheque is a system, which provides more security and
reduction in overall cost. E-cheque facilitates on line payment. It needs no
E-banking
Services
ATM Card E-cheque MobileBanking
Telephone Banking
EFT
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clearance charges. Issue of E-cheque is more familiar in various advanced
countries.
Introduction:
There are rapid changes in the financial services environment, which has
led to increased competition by few players and product innovations. Recent
innovations in tele communications have opened up an additional channel for
electronic banking.
Meaning:
Banks have noticed and availed the opportunity that exists between
banking and mobile telephony. SMS (short messaging services)
and GSM(global system mobile)of mobile can be used for banking transactions.
The mobile banking enables the customers to bank anywhere and at any time.
These wireless devices may give services as hand held PC’s. Mobile devices
are enabled now days to perform many activities which earlier have been
available only as internet services.
Issues relating to M-Banking
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Cost saving: SMS offers revenue opportunities for operators by changing
SMS into higher value added applications. The service offerings in SMS banking
are numerous and highly cost saving.
Simple to operate: The success of M- Banking is due to its user-friendly
interface and range of services it offers.
Market research: Proper understanding of specific market is key in the
success of mobile banking. Research on available payment methods, user habits
and key players is required to be done. Players will have to be creative to make
users perceive it as beneficial.
Services:
Global system mobile (GSM) is not just about voice communications but also
supports wireless personal digital assistant and other devices, just as it supports
telephony. SMS tariffs should be lowered in order to capture the markets and to
exploits the potential for commercial transactions over mobile device.
Many services and schemes are being piloted and some are already available. Few
are mentioned here under:
Balance enquiry can be made.
Requesting for providing bank statement.
Requesting countermanding cheque payments (stop cheque)
Chequebook request can be made.
Cheque clearance alerts are given to customers.
Sending account balances every time one makes a withdrawal, which helps in
finding out if some one else is using your ATM card.
Limitations /problems in M-Banking:
Possibility of error is higher than in internet banking.
The data transmission is very slow.
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M-banking services are risky and not secure trials and pilots are still on World
Wide Web to developed enhanced security.
M-banking services are not enough versatile.
The information knowledge available related to M-Banking is not sufficient.
Some non-users of mobile banking perceive it to be complicated due to lack of
guidance available.
M Banking is not just a service reserved for international banks but for any
financial institution wishing to take it. There is a great opportunity to exploit the
combination of fast growing consumer device the mobile phone with the richness
of internet protocols that will surpass a similar revolution imitated by pc related
banking M-Banking has a lot to offer banks and to its customers, but its success
depend upon of variety of services, security and user friendly interface its make it
easy, cheaper it simple to use.
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Introduction:
ATM facility was started in early 1990’s by foreign banks like HSBC,
City bank. ATM is made to work 24 Hrs a
day. For the purpose of withdrawing cash
from ATM machine, plastic currency and
debit cards are used. The account number
and credit limit of customers are
magnetically embedded on a strip of the tape
on the back of card.
ATM enables user to perform banking
transactions by actually interacting with the
human teller. This is one of the unattended
or unmanned devices usually located on or off the bank’s premises. Its function is
to receive and dispense cash and to handle routine financial transactions.
The operation mechanism is that card is inserted into the ATM; the terminal
reads the tape data to processes, which activates the accounts. According to the
instructions, the details are displayed on the screen and by checking a few keys of
the keyboard the user can direct the computer to carry out the financial
transactions.
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An automated teller machine (ATM) is a computerized telecommunications
device that provides the customers of a financial institution with access to financial
transactions in a public space without the need for a human clerk or bank teller. On
most modern ATMs, the customer is identified by inserting a plastic ATM card
with a magnetic stripe or a plastic smartcard with a chip, that contains a unique
card number and some security information, such as an expiration date or CVC
(CVV). Security is provided by the customer entering a personal identification
number (PIN).
Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances as
well as purchasing mobile cell phone prepaid credit. ATMs are known by various
other names including automated banking machine, money machine, bank
machine, cash machine, hole-in-the-wall, cashpoint, Bancomat (in various
countries in Europe and Russia), Multibanco (after a registered trade mark, in
Portugal), and Any Time Money (in India).
Working of ATM
Insertion ofCard into ATM
Activation of account
Transmission of Tape data to Processor
Actual Transaction Operation by user
Clicking of keys of keyboard
Display of details on screen
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ATM will give various options on the screen like:
Balance enquiry
Mini statement
Deposits
Cash withdrawals etc.
Banks have launched the operation of accepting payments for utility
services like electricity and telephone bills etc. Banking on the net is only an
extension of the ATM and tele banking services.
Various facilities produced by ATMs:
Cash withdrawals
Personal identification number (PIN) change
On line balance enquiry
Transfer of funds between accounts linked to one’s card
Request for cheque book
Request for account statement
HISTORY:
The first mechanical cash dispenser was developed and built by Luther
George Simjian and installed in 1939 in New York City by the City Bank of New
York, but removed after 6 months due to the lack of customer acceptance.
Thereafter, the history of ATMs paused for over 25 years, until De La Rue
developed the first electronic ATM, which was installed first in Enfield Town in
North London, United Kingdom on 27 June 1967 by Barclays Bank. This instance
of the invention is credited to John Shepherd-Barron, although various other
engineers were awarded patents for related technologies at the time. Shepherd-
Barron was awarded an OBE in the 2005 New Year's Honours List. The first
person to use the machine was the British variety artist and actor Reg Varney.The
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first ATMs accepted only a single-use token or voucher, which was retained by the
machine. These worked on various principles including radiation and low-
coercivity magnetism that was wiped by the card reader to make fraud more
difficult. The machine dispensed pre-packaged envelopes containing ten pounds
sterling. The idea of a PIN stored on the card was developed by the British
engineer James Goodfellow in 1965
In 1968 the networked ATM was pioneered in Dallas, Texas, by Donald Wetzel
who was a department head at an automated baggage-handling company called
Docutel. In 1995 the Smithsonian's National Museum of American History
recognised Docutel and Wetzel as the inventors of the networked ATM.
ATMs first came into wide UK use in 1973; the IBM 2984 was designed at the
request of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true
Cashpoint, similar in function to today's machines; Cashpoint is still a registered
trademark of Lloyds TSB in the U.K. All were online and issued a variable amount
which was immediately deducted from the account. A small number of 2984s were
supplied to a USA bank. Notable historical models of ATMs include the IBM 3624
and 473x series, Diebold 10xx and TABS 9000 series, and NCR 5xxx series.
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Introduction:
Debit cards combine the functions of ATM cards and checks. When you
pay with a debit card, the money is automatically deducted from your checking
account. Many banks issue a combined ATM/debit card that looks just like a credit
card and can be used in places where credit cards are accepted. But don't be
mistaken -- they are not credit cards. The money you spend comes out of your
checking account immediately.
Debit and check cards, as they have become widespread, have revealed
numerous advantages and disadvantages to the consumer and retailer alike.
Advantages are as follows (most of them applying only to a some countries,
but the countries to which they apply are unspecified):
A consumer who is not credit worthy and may find it difficult or impossible to
obtain a credit card can more easily obtain a debit card, allowing him/her to make
plastic transactions.
Use of a debit card is limited to the existing funds in the account to which it is
linked, thereby preventing the consumer from racking up debt as a result of its use,
or being charged interest, late fees, or fees exclusive to credit cards.
For most transactions, a check card can be used to avoid check writing
altogether. Check cards debit funds from the user's account on the spot, thereby
finalizing the transaction at the time of purchase, and bypassing the requirement to
pay a credit card bill at a later date, or to write an insecure check containing the
account holder's personal information.
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Like credit cards, debit cards are accepted by merchants with less identification
and scrutiny than personal checks, thereby making transactions quicker and less
intrusive. Unlike personal checks, merchants generally do not believe that a
payment via a debit card may be later dishonored.
Unlike a credit card, which charges higher fees and interest rates when a cash
advance is obtained, a debit card may be used to obtain cash from an ATM or a
PIN-based transaction at no extra charge, other than a foreign ATM fee.
The Debit card has many disadvantages as opposed to cash or credit:
Some banks are now charging over-limit fees or non-sufficient funds fees based
upon pre-authorizations, and even attempted but refused transactions by the
merchant (some of which may not even be known by the client).
Many merchants mistakenly believe that amounts owed can be "taken" from a
customer's account after a debit card (or number) has been presented, without
agreement as to date, payee name, amount and currency, thus causing penalty fees
for overdrafts, over-the-limit, amounts not available causing further rejections or
overdrafts, and rejected transactions by some banks.
In some unspecified countries, debit cards offer lower levels of security
protection than credit cards. Theft of the users PIN using skimming devices can be
accomplished much easier with a PIN input than with a signature-based credit
transaction. However, theft of users' PIN codes using skimming devices van be
equally easily accomplished with a debit transaction PIN input, as with a credit
transation PIN input, and theft using a signature-based credit transation is equally
easy as theft using a signature-based debit transaction.
In many places, laws protect the consumer from fraud a lot less than with a
credit card. While the holder of a credit card is legally responsible for only a
minimal amount of a fraudulent transaction made with a credit card, which is often
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waived by the bank, the consumer may be held liable for hundreds of dollars in
fraudulent debit transactions. The consumer also has a much shorter time (usually
just two days) to report such fraud to the bank in order to be eligible for such a
waiver with a debit card, whereas with a credit card, this time may be up to 60
days. A thief who obtains or clones a debit card along with its PIN may be able to
clean out the consumer's bank account, and the consumer will have no recourse.
When a transaction is made using a credit card, the bank's money is being spent,
and therefore, the bank has a vested interest in claiming its money where there is
fraud or a dispute. The bank may fight to void the charges of a consumer who is
dissatisfied with a purchase, or who has otherwise been treated unfairly by the
merchant. But when a debit purchase is made, the consumer has spent his/her own
money, and the bank has little if any motivation to collect the funds.
In some unspecified coutriesand for certain types of purchases, such as
gasoline, lodging, or car rental, the bank may place a hold on funds much greater
than the actual purchase for a fixed period of time. However, this isn't the case in
other countries, such as Sweden. Until the hold is released, any other transactions
presented to the account, including checks, may be dishonored, or may be paid at
the expense of an overdraft fee if the account lacks any additional funds to pay
those items.
While debit cards bearing the logo of a major credit card are accepted for
virtually all transactions where an equivalent credit card is taken, a major
exception (in some unspecified countries only, is at car rental facilities. In some
unspecified countries, car rental agencies require an actual credit card to be used,
or at the very least, will verify the creditworthiness of the renter using a debit
cardThere are currently two ways that debit card transactions are processed: online
debit (also known as PIN debit) and offline debit (also known as signature debit).
In some countries including the United States and Australia, they are often referred
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to at point of sale as "debit" and "credit" respectively, even though in either case
the user's bank account is debited and no credit is involved.
Some cards are blocked from making either online or offline transactions, while
other cards are enabled for both kinds of transactions.
Online debit ("PIN debit" or "debit")
Online debit cards require electronic authorization of every transaction and the
debits are reflected in the user’s account immediately. The transaction may be
additionally secured with the personal identification number (PIN) authentication
system and some online cards require such authentication for every transaction,
essentially becoming enhanced automatic teller machine (ATM) cards. One
difficulty in using online debit cards is the necessity of an electronic authorization
device at the point of sale (POS) and sometimes also a separate PINpad to enter the
PIN, although this is becoming commonplace for all card transactions in many
countries. Overall, the online debit card is generally viewed as superior to the
offline debit card because of its more secure authentication system and live status,
which alleviates problems with processing lag on transactions that may have been
forgotten or not authorized by the owner of the card. Banks in some countries, such
as Canada and Brazil, only issue online debit cards.
Introduction:
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A credit card is a system of payment named after the small plastic card
issued to users of the system. A credit card is different from a debit card in that it
does not remove money from the user's account after every transaction. In the
case of credit cards, the issuer lends money to the consumer (or the user). It is
also different from a charge card (though this name is sometimes used by the
public to describe credit cards), which requires the balance to be paid in full each
month. In contrast, a credit card allows the consumer to 'revolve' their balance, at
the cost of having interest charged. Most credit cards are the same shape and size,
as specified by the ISO 7810 standard.
The issuer of the card grants a line of credit to the consumer (or the user)
from which the user can borrow money for payment to a merchant or as a cash
advance to the user. A credit card is different from a charge card, where a charge
card requires the balance to be paid in full each month. In contrast, credit cards
allow the consumers to 'revolve' their balance, at the cost of having interest
charged. Most credit cards are issued by local banks or credit unions.
Credit cards are issued after an account has been approved by the credit provider,
after which cardholders can use it to make purchases at merchants accepting that
card.
When a purchase is made, the credit card user agrees to pay the card issuer. The
cardholder indicates his/her consent to pay, by signing a receipt with a record of
the card details and indicating the amount to be paid or by entering a Personal
identification number (PIN). Also, many merchants now accept verbal
authorizations via telephone and electronic authorization using the Internet, known
as a 'Card/Cardholder Not Present' (CNP) transaction.
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Electronic verification systems allow merchants to verify that the card is
valid and the credit card customer has
sufficient credit to cover the purchase in a few
seconds, allowing the verification to happen at
time of purchase. The verification is performed
using a credit card payment terminal or Point
of Sale (POS) system with a communications
link to the merchant's acquiring bank. Data
from the card is obtained from a magnetic
stripe or chip on the card; the latter system is in
the United Kingdom and Ireland commonly known as Chip and PIN, but is more
technically an EMV card.
Other variations of verification systems are used by eCommerce merchants to
determine if the user's account is valid and able to accept the charge. These will
typically involve the cardholder providing additional information, such as the
security code printed on the back of the card, or the address of the cardholder.
Each month, the credit card user is sent a statement indicating the purchases
undertaken with the card, any outstanding fees, and the total amount owed. After
receiving the statement, the cardholder may dispute any charges that he or she
thinks are incorrect (see Fair Credit Billing Act for details of the US regulations).
Otherwise, the cardholder must pay a defined minimum proportion of the bill by a
due date, or may choose to pay a higher amount up to the entire amount owed. The
credit provider charges interest on the amount owed if the balance is not paid in
full (typically at a much higher rate than most other forms of debt). Some financial
institutions can arrange for automatic payments to be deducted from the user's
bank accounts, thus avoiding late payment altogether as long as the cardholder has
sufficient funds.
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Interest charges
Credit card issuers usually waive interest charges if the balance is paid in full each
month, but typically will charge full interest on the entire outstanding balance from
the date of each purchase if the total balance is not paid.
For example, if a user had a $1,000 transaction and repaid it in full within this
grace period, there would be no interest charged. If, however, even $1.00 of the
total amount remained unpaid, interest would be charged on the $1,000 from the
date of purchase until the payment is received.
The credit card may simply serve as a form of revolving credit, or it may
become a complicated financial instrument with multiple balance segments each at
a different interest rate, possibly with a single umbrella credit limit, or with
separate credit limits applicable to the various balance segments. Usually this
compartmentalization is the result of special incentive offers from the issuing bank,
to encourage balance transfers from cards of other issuers. In the event that several
interest rates apply to various balance segments, payment allocation is generally at
the discretion of the issuing bank, and payments will therefore usually be allocated
towards the lowest rate balances until paid in full before any money is paid
towards higher rate balances. Interest rates can vary considerably from card to
card, and the interest rate on a particular card may jump dramatically if the card
user is late with a payment on that card or any other credit instrument, or even if
the issuing bank decides to raise its revenue.
Advantages: The main advantages are as follows:
Advantages
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Benefits to customers:
Because of intense competition in the credit card industry, credit card providers
often offer incentives such as frequent flyer points, gift certificates, or cash back
(typically up to 1 percent based on total purchases) to try to attract customers to
their programs.
Low interest credit cards or even 0% interest credit cards are available. The only
downside to consumers is that the period of low interest credit cards is limited to a
fixed term, usually between 6 and 12 months after which a higher rate is charged.
However, services are available which alert credit card holders when their low
interest period is due to expire. Most such services charge a monthly or annual fee.
Grace period
A credit card's grace period is the time the customer has to pay the balance before
interest is charged to the balance. Grace periods vary, but usually range from 20 to
40 days depending on the type of credit card and the issuing bank. Some policies
allow for reinstatement after certain conditions are met.
Usually, if a customer is late paying the balance, finance charges will be calculated
and the grace period does not apply. Finance charges incurred depend on the grace
period and balance; with most credit cards there is no grace period if there is any
To customers Grace period To merchants
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outstanding balance from the previous billing cycle or statement (i.e. interest is
applied on both the previous balance and new transactions). However, there are
some credit cards that will only apply finance charge on the previous or old
balance, excluding new transactions.
Benefits to merchants
An example of street markets accepting credit cards.
For merchants, a credit card transaction is often more
secure than other forms of payment, such as checks,
because the issuing bank commits to pay the merchant
the moment the transaction is authorized, regardless of
whether the consumer defaults on the credit card
payment (except for legitimate disputes, which are discussed below, and can result
in charges back to the merchant). In most cases, cards are even more secure than
cash, because they discourage theft by the merchant's employees and reduce the
amount of cash on the premises. Prior to credit cards, each merchant had to
evaluate each customer's credit history before extending credit. That task is now
performed by the banks which assume the credit risk.
For each purchase, the bank charges the merchant a commission (discount fee) for
this service and there may be a certain delay before the agreed payment is received
by the merchant. The commission is often a percentage of the transaction amount,
plus a fixed fee.
Parties involved
Cardholder: The holder of the card used to make a purchase; the consumer.
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Card-issuing bank: The financial institution or other organization that issued
the credit card to the cardholder. This bank bills the consumer for repayment and
bears the risk that the card is used fraudulently. American Express and Discover
were previously the only card-issuing banks for their respective brands, but as of
2007, this is no longer the case.
Merchant: The individual or business accepting credit card payments for
products or services sold to the cardholder
Acquiring bank: The financial institution accepting payment for the products
or services on behalf of the merchant.
Independent sales organization: Resellers (to merchants) of the services of
the acquiring bank.
Merchant account: This could refer to the acquiring bank or the independent
sales organization, but in general is the organization that the merchant deals with.
Credit Card association: An association of card-issuing banks such as Visa,
MasterCard, Discover, American Express, etc. that set transaction terms for
merchants, card-issuing banks, and acquiring banks.
Transaction network: The system that implements the mechanics of the
electronic transactions. May be operated by an independent company, and one
company may operate multiple networks. Transaction processing networks
include: Cardnet, Nabanco, Omaha, Paymentech, NDC Atlanta, Nova, TSYS,
Concord EFSnet, and VisaNet.
Affinity partner: Some institutions lend their names to an issuer to attract
customers that have a strong relationship with that institution, and get paid a fee or
a percentage of the balance for each card issued using their name. Examples of
typical affinity partners are sports teams, universities, charities, professional
organizations, and major retailers.
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The flow of information and money between these parties — always through the
card associations — is known as the interchange.
Features:
As well as convenient, accessible credit, credit cards offer consumers an easy
way to track expenses, which is necessary for both monitoring personal
expenditures and the tracking of work-related expenses for taxation and
reimbursement purposes. Credit cards are accepted worldwide, and are available
with a large variety of credit limits, repayment arrangement, and other perks
(such as rewards schemes in which points earned by purchasing goods with the
card can be redeemed for further goods and services or credit card cashback).
Some countries, such as the United States, the United Kingdom, and France, limit
the amount for which a consumer can be held liable due to fraudulent transactions
as a result of a consumer's credit card being lost or stolen.
ProblemsA smart card, combining credit card and debit card properties. The 3 by 5 mm
security chip embedded in the card is shown enlarged in the inset. The contact pads
on the card enable electronic access to the chip.
The low security of the credit card system presents countless opportunities for
fraud. This opportunity has created a huge black market in stolen credit card
numbers, which are generally used quickly before the cards are reported stolen.
The goal of the credit card companies is not to eliminate fraud, but to "reduce it to
manageable levels". This implies that high-cost low-return fraud prevention
measures will not be used if their cost exceeds the potential gains from fraud
reduction.
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Most internet fraud is done through the use of stolen credit card information which
is obtained in many ways, the simplest being copying information from retailers,
either online or offline. Despite efforts to improve security for remote purchases
using credit cards, systems with security holes are usually the result of poor
implementations of card acquisition by merchants.
For example, a website that uses SSL to encrypt card numbers from a
client may simply email the number from the webserver to someone who manually
processes the card details at a card terminal. Naturally, anywhere card details
become human-readable before being processed at the acquiring bank, a security
risk is created.
Introduction:
Online banking (or Internet banking) allows customers to conduct
financial transactions on a secure website operated by their retail or virtual bank,
credit union or building society.
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Features:
Online banking solutions have many features and capabilities in common, but
traditionally also have some that are application specific.
The common features fall broadly into several categories
Transactional (e.g., performing a financial transaction such as an account to
account transfer, paying a bill, wire transfer... and applications... apply for a loan,
new account, etc.)
o Electronic bill presentment and payment - EBPP
o Funds transfer between a customer's own checking and savings accounts, or to
another customer's account
o Investment purchase or sale
o Loan applications and transactions, such as repayments
Non-transactional (e.g., online statements, check links, cobrowsing, chat)
o Bank statements
Financial Institution Administration - features allowing the financial institution
to manage the online experience of their end users
ASP/Hosting Administration - features allowing the hosting company to
administer the solution across financial institutions
Security
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Security token devices
Protection through single password authentication, as is the case in most secure
Internet shopping sites, is not considered secure enough for personal online
banking applications in some countries. Basically there exist two different security
methods for online banking.
The PIN/TAN system where the PIN represents a password, used for the login
and TANs representing one-time passwords to authenticate transactions. TANs can
be distributed in different ways, the most popular one is to send a list of TANs to
the online banking user by postal letter. The most secure way of using TANs is to
generate them by need using a security token. These token generated TANs depend
on the time and a unique secret, stored in the security token (this is called two-
factor authentication or 2FA). Usually online banking with PIN/TAN is done via a
web browser using SSL secured connections, so that there is no additional
encryption needed.
Signature based online banking where all transactions are signed and encrypted
digitally. The Keys for the signature generation and encryption can be stored on
smartcards or any memory medium, depending on the concrete implementation.
Attacks
Most of the attacks on online banking used today are based on deceiving the user
to steal login data and valid TANs. Two well known examples for those attacks are
phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also
be used to steal login information.
A recent FDIC Technology Incident Report, compiled from suspicious activity
reports banks file quarterly, lists 536 cases of computer intrusion, with an average
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loss per incident of $30,000. That adds up to a nearly $16-million loss in the
second quarter of 2007. Computer intrusions increased by 150 percent between the
first quarter of 2007 and the second. In 80 percent of the cases, the source of the
intrusion is unknown but it occurred during online banking, the report states.[4]
Countermeasures
There exist several countermeasures which try to avoid attacks. Digital certificates
are used against phishing and pharming, the use of class-3 card readers is a
measure to avoid manipulation of transactions by the software in signature based
online banking variants. To protect their systems against Trojan horses, users
should use virus scanners and be careful with downloaded software or e-mail
attachments.
LIMITATIONS OF THE STUDY
During the study work a number of limitations have been arisen which are
acknowledged here under. The limitations are:
First of all main problem is that no any bank was ready to give training.
Due to shorter span of time and resources less information has been considered
to analysis the concept of Income & Investment Sources. So the study cannot be
generalized.
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The respondents whose opinions are analyzed are not willing to disclose the
quantum of information they have.
The information that is collected in project report is not adequate.
CONCLUSION
This chapter represents a conclusive review of the efforts made since up till about
the different innovations by Central Bank of India in banking sector.
Various innovations of the bank provide benefits to the various business
and Industries in many different ways. The innovations of bank are of two types:
innovations in products & innovations in branches
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Innovations in products includes, Working & Operations of centrel bank
of india , ATM, debit cards, credit cards & mobile banking whereas innovations in
branches includes, universal banking, offshore banking, retail banking, wholesale
banking.
The project report summarizes about the facilities of CBI
accounts and deposits and also provides the different products. This information
is based on the primary and secondary data available from different sources.
FINDINGS
The Project work is done on basis of certain objectives, which are as
follows:
To understand the various innovations in banking sector by the bank.
To know about the different products of the bank.
To discuss about the role of Central Bank of India in banking field.
To know about the benefits of innovations of the bank.
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In the light of these objectives the following are the findings that represent
the changing environment of Indian economy in global scenario in the wake of
liberalization and globalization.
The study reveals about the different types of innovations of the bank, which
helps the people in many ways.
The role of board of directors is properly described. Processes are established in
such a manner that allows the board of director to compliance with the policies of
companies.
The study presents the different types of products available in the bank for the
help of its customers.
So, these are the findings, which the project reveals by making an analysis of
the topic. Moreover to making efficient central bank of India, certain suggestions
have to be followed by these banks. These are as follows:
Central bank of India has to provide ATM facility to its customers so that the
people can get benefit of this facility and withdraw money at any time at any place
with this they would not have to face any problem regarding to money.
Central bank of India’s branch network should be wider as, we have already
discussed about ATM network in each branch.
Central bank of India has to improve its disclosure policies so that everyone can
get easily all information regarding banking policies and other information related
to bank.
Indian market will provide for high growth market so bank should make
strategies to grab such opportunities.
Bank should open their branches in rural area.
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BIBLOGRAPHY
www.wikepeadia.com
www.google.com
www.lycos.com
www.central bank of india.com
Page 56
Value notes.com
White papers.comBanknetindia.com
Gahoo yoogle.com
Banking Law and Practice by Sharma publications.
Banking theory and practices by kalyani publishers.
Principles of banking by AIBA (All India banking associations)
RESEARCH METHODOLOGY
WHAT IS RESEARCH METHODOLOGY?It is the science that tells the method of doing research it mainly consists
of following steps; Developing research design.
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Determining the data collection method. Developing sampling plan. Conducting field work.
Research in common parlance refers to a search for knowledge. One can also define research scientific systematic search for pertinent information on a specific topic. The word research has been derived from French word Researcher means to search.
DEFINATION OF RESEARCH METHODOLOGY:Research may he defined as "a careful investigation or enquiry specially through search for new facts in any branch of knowledge “in a technical sense research comprise defining & redefining problems, formulating hypothesis or suggested solutions, collecting, organizing & evaluating data; making deductions & reaching conclusions & at the last carefully testing the conclusion to determine weather they fit the formulating hyposthesis.
RESEARCH DESIGN:Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research id descriptive.RESEARCH DESIGN USED IN THE SURVEYConsidering the objectives if the study and also the importance of the decisions it was decided to undertake an exploratory survey. DATA COLLECTION:Types of data:1. Primary data:- Primary data are those which are fresh and collected for the first time and thus happen to be original characters.2. Secondary data :- It is the data that is already been roilected by someone else.In this survey I used both primary and secondary data. All information collected through questionnaire.
DATA SOURCE: The sources of collection of secondary data are:
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Questionnaire Books Websites Magazine Brochure
SAMPLING PLAN:It is very difficult to collect information from every member of a population. As time and costs are the major limitations that the researcher faces.
A sample of 30 was taken the sample size of 30 individuals were selected on the basis of conveinent sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the researcher study.
ANALYSIS AND INTERPRETATIONData collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed, interpreted with the help of table, bar chart and pie chart.
PREFACE
This project report is on the “MARKETING STRATEGY OF
MUTHOOT FINANCE .
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Theories can be read but the perform it in the real life is different
experience will together. Management courses are designed to produce
future managers and unless you have practical knowledge the theoretical
knowledge is not implicated. Hence this project is to give us the practical
way of knowing how market behaves and reacts.
This is also in part fulfillment of BBA Degree.
RAKHA JATAV
BBA IV th Semester
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number of persons I wish to express my deep
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sense of gratitude to all those who generously helped in successful completion of
this report by sharing their invaluable time and knowledge.
It is my proud and privilege to express my deep regards to respected
Principal & Head for Department allowing me to undertake this project.
I feel extremely exhilarated to have completed this project under the able
and inspiring guidance of Mr. Dhudhnath Ji . He rendered me all possible help
and guidance while reviewing the manuscript in finalising the report.
I also extend my deep regards to my faculty members , family members,
friends and all those whose encouragement has infused courage in me to complete
the work successfully.
Neha Pandey B.B.A. IV th Semester
DECLARATION BY THE CANDIDATE
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I Declare that the project report titled“topic “ Working
& Operations of centrel bank of india ’’. is my own work conducted under the
supervision of Mr. Dhudhnath Ji Central bank of india . To the best of my
knowledge the report does not contain any work which has been submitted for the
award of any degree, anywhere.
Neha Pandey B.B.A. IV th Semester
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C E R T I F I C A T E
Signature of the Supervisor
Signature of the Head of the Department
Signature of the Examiner
The Project report titled " MARKETING STRATEGY OF MAHINDRA
DURO"has been prepared the marketing strategy and
advertisement by Miss. JYOTI SONI student of B.B.A. IV th
Semester under the guidance and supervision of Mrs.Shikha urmil
khan for the fulfillment of the Degree of B.B.A.
PREFACE
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I am pleased to present the project
report on preparing project report on The Assigned topic Working & Operations
of centrel bank of india before my respected reader .It is a humble attempt from my
part to study the Working & Operations of in relation to Central Bank of India .
This study deals with a namber of topic , which will help the
reader understand and learn how is done Working & Operations . Language of
the report is simple and lucid .Attempts have been made to arrange the subject
matter in a systematic and well –knit style .Effort have also been made to deal
with all topic precisely and gently .
I exprees thanks to all those prolite teacher and expert of
management whose theories and ideas have been incorporated in this project report
Despite of this it is very difficult to be perfect to the core and mistakes do creep in
for which I extend my apology and carve the hospitality of the readers to point
them out . Their criticism and suggestions for the improvement in future are
welcomed.
Neha Panday
BBA IV th Sem.
OBJECTIVES OF THE STUDY
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The objectives of the study are based on the concept of Working & Operations
Central Bank Of India . The various secondary objectives are discussed as under :
To discuss about the role of Central bank of india in banking field.
To know about the benefits of investments to the bank .
To gather information about home lone & schime the bank
To know about products and service of the bank.
To get knowledge debit & credit card .
