Modern
Banking Services:
After
Libera-lization, Privatization and Globalization, there was a huge development
taken place in the Indian banking scenario. All Indian banks were forced to
compete with world banks that were permitted to open their branches in India.
As a result, all banking customers were offered multiple and model banking products
which are different from traditional and conventional banking system in India
and these banking functions or mostly based on information technology.
Such
modern banking services include new products such as Core Banking Solutions; No
frills account; Demat accounts; Net Banking/ E-Banking; Mobile banking; Debit
Card/ Credit cards; Automated Teller Machines (ATM); Insurance etc.
Core
Banking Solution (CBS) is networking of branches, which enablesCustomers to
operate their accounts, and avail banking services from any branch of the Bank
on CBS network, regardless of where he maintains his account. The customer is
no more the customer of a Branch. He becomes the Bank’s Customer. Under this
system all CBS branches are inter-connected with each other. Therefore,
Customers of CBS branches can avail various banking facilities from any other
CBS branch located anywhere in the world. This CBS helps the customers
·
To
make enquiries about the balance or debit or credit entries in the account.
·
To
obtain cash payment out of his account by tendering a cheque.
·
To
deposit a cheque for credit into his account.
·
To
deposit cash into the account.
·
To
deposit cheques/cash into account of some other person who has account in a CBS
branch.
·
To
get the statement of account.
·
To
transfer funds from his account to some other account – his own or of third
party, provided both accounts are in CBS branches.
·
To
obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall
be online debited to his account.
·
Customers
can continue to use ATMs and other Delivery Channels, which are also interfaced
with CBS platform.
These accounts are opened mostly in rural
areas as a part of financial inclusion project encouraged by Reserve Bank of
India. These accounts are opened by banks without the condition of maintaining
minimum balance. No charge will be levied for non-operation/activation of
inoperative basic savings bank accounts. No frill accounts are mainly aimed to
take the banking facilities to the poor people in the unbanked rural areas and
semi-urban areas.
These are maintained by banks for high value
transactions which are maintained in electronic forms for dealing in shares and
securities of the customers mostly dealing in Government Bonds.
This is the easy way of doing banking from the convenient place of the customer and avoids
queue or delay. We can also check balance,transfer funds, pay bills, open fixed
and recurring deposits etc. Each customer is given a unique user ID and
password for the purpose of accessing internet banking. Electronic Banking is
also known as Electronic fund Transfer. Electronic means to transfer funds from
one account to other account by ways of NEFT, RTGS or IMPS.
NEFT-
National Electronic Fund Transfer
RTGS-
Real Time Gross Settlement
IMPS-Immediate
Payment Service
Mobile Banking is a service provided by
banks or other financial institution that allow their customers to do financial
transaction using mobiles like smart phone or tablet. It is quick and simple
way of banking. Mobile banking app helps to check the account balance, transfer
funds, pay in bills etc.
A debit card is a plastic
payment card that can be used instead of cash when making purchases. It is
similar to a creditcard, but unlike a credit card, the money depited directly
from the user’s bank account when performing a transaction. It is also known as
a bank card, plastic card or check card.
In
credit card, in the customer can perform the transaction upto a predefined
limit, and pay them to the bank before a specified date.
This is an electronic device which helps the customers for
withdrawal, deposits money, transfer fund etc, round the clock. For Availing
the services of an ATM the customer need ATM card with PIN number (Personal
identification number). It provides 24 x7 and 365 days a year service.
Insurance is a means of protection from
financial loss. It is an arrangement by which the company undertakes to provide
a guarantee of compensation for specified loss, damages, illness, or death in
return for payment of specified premium. The largest insurance company in India
is owned by government.
These services are provided by some banks. Lock-box helps the
customers particularly the traders, to keep cheques and other remittances in a
box for next day collection and certain entries should be passed. Nightsafe service is useful to the
traders who receive large amount of money after the banking hours and who feel
insecured at their premises.
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