Banking

BANKINGSubmitted To:Submitted By:Mrs. Renu BatishGursimran KaurNitiNavjot Sukhman +1, Commerce, B

OUR SURVEY IN PUNJAB NATIONAL BANK

PNBPNB stands for PUNJAB NATIONAL BANK . The PNB was founded in 1895 and is headquarted in New Delhi , INDIA . As of January 5 ,2012 the chairman of PNB is K R KAMATH.

INTRODUCTION

Abankis afinancial institution and afinancial intermediarythat acceptsdepositsand channels those deposits intolendingactivities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.

WHAT ARE BANKSInstitutions which deals in money and credit. An intermediary, which handles other peoples money both for their advantage and to its own profits.A financial institution that links the flow of funds from savers to the users.Plays an important role in the economy of any country as they hold the saving of the public.

BASIC DEFINITION:A system of trading money which:provides a safe place to save excess cash, known as deposits.suppliesliquidityto the economy by loaning this money out to help businesses grow and to allow consumers to purchase consumer products, homes, cars etc.

BANKING REGULATION ACT, 1949As per Section 5(c) of Banking Regulation Act, 1949 a "Banking Company" means any company which transacts the business of banking in India.As per Section 5(b) of Banking Regulation Act, 1949 , banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. As per Section 5(d) of Banking Regulation Act, 1949 , company means any company as defined in Section 3 of the Companies Act, 1956 and includes a foreign company within the meaning of Section 591 of that Act.

TYPES OF BANKS IN INDIA Central Bank: The Reserve Bank of India is the central Bank that is fully owned by the Government. Public Sector Banks: State Bank Group, Regional rural banks. Private Sector Banks: Foreign Banks, Scheduled and Non- Scheduled Banks. Co-operative Sector: State Co-operative Banks, Central Co-operative Banks, Primary Agriculture Credit Societies. Development Banks/Financial Institutions: IDBI, ICICI, NABARD.

TYPES OF BANK ACCOUNTS Current AccountsSaving Banking AccountsRecurring Deposits Accounts Fixed Deposits Accounts. Multiple Option Deposits Accounts.

TYPES OF BANKING SERVICESBanks offer the following services to account holders at their specified branchesMulti-city / Payable at Par (PAP) cheque facility,Trade servicesCredit Card,Debit/ATM CardMoney ChangerMobile bankingE BankingReal Time Gross Settlement (RTGS).

Credit CardsA credit card is a form of borrowing. It may be a convenient mode of payment as it allows you to buy goods and services without using cash, but it is not intended to be a long-term credit facility.

Debit CardsDebit cards are similar to ATM cards. You can use your debit card with your Personal Identification Number (PIN) to withdraw cash from your bank account at your banks ATMs. You can also use it to purchase goods and services.

ChequesA cheque is a paper instrument that orders a payment of money from a bank account. A current account holder can write cheques to order payments of money. Cheques are provided when customers open a current account.

Money ChangersMoney-changing involves an exchange of notes denominated in different currencies. Exchange rates may vary depending on market conditions and the money-changers cost of funds. If you need to exchange currencies, you may approach a bank or licensed money-changer that offers these services. It is against the law to operate a money-changing business without a valid licence. You should not engage the services of unlicensed persons.

E BANKINGInternet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions.The term "electronic banking" or "e-banking" covers both computer and telephone banking.In other words it is said that it is updated 'on-line, real time'. The system is updated immediately after every transaction automatically.

WAYS OF E-BANKINGAutomated teller machineTele bankingPlastic cardsE-chequeInternet bankingVirtual banking

Specific technology discussed,ATMInternet bankingMobile bankingTelephone banking Debit cards

Internet BankingInternet banking refers to carrying out certain banking transactions over the internet. Banking online is very convenient and can save you time and money. All the major banks offer online banking. There are a number of things you can do online such as:View balances and statementsTransfer moneyTop up your mobile phonePay bills

HOW ATMS WORK?Bank computerHost computerATM

HOW MOBILE BANKING WORK?BANK DATABASE

PLASTIC CARDS

TELE BANKINGCustomerBankEnquiryRequest facility

Loans

Cheque Status

Fixed Deposit details

BENEFITS OF BANKINGCredit Unions typically pay higher dividend rates on savings.Credit Unions typically offer lower rates on loans.Credit Unions typically provide better service; since they are owned and governed by their membership, they tend to prioritize the needs of their members above all else.Credit Unions operate on a not-for-profit business model, so excess earnings are returned back to the membership in form of competitive rates and lower fees, and sometimes even special dividends.Many Credit Unions offer the same products and services found at banks

COMMERCIAL ROLE OF BANKINGIssue of banknotes (promissory notes issued by a banker and payable to bearer on demand) Processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by way of overdraft, installment loan or otherwise

COMMERCIAL ROLE OF BANKINGProviding documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures

Safekeeping of documents and other items in safe deposit boxes Currency exchange

Acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products

ECONOMIC ROLE OF BANKINGIssue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. Netting and settlement of payments.Credit intermediationCredit quality improvementMaturity transformation

WHAT IS BANK MARKETING?Bank marketing is the aggregate of functions, directed at providing services to satisfy customers financial (and other related) needs and wants, more effectively and efficiently than the competitors keeping in view the organizational objectives of the bank.

TEACHER REPORT

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