Project Report On

PROJECT REPORT ON

BANKING FACILITIES AND CUSTOMERS SATISFACTION PROVIDED BY SBI, SONARI BRANCH

A Project Report Submitted To The Sonari Commerce College, In Partial Fulfilment Of The Requirement Of The Bachelor Of Commerce,

Part -III (1+1+1) For The Paper No. -7

UNDERTAKEN BY

SNEHLATA JAIN

SONARI COMMERCE COLLEGE

SONARI

2011-12

CERTIFICATE

Mr. B.N. Tamuli

Lecturer, Department of Finance and Accounting.

Sonari Commerce College,

Sonari- 785690

District- Sivasagar, Assam.

This is to certify that Ms. Snehlata Jain student of B. Com Part III (I +I+I) of Sonari Commerce College has completed the project report titled “Banking Facilities and Customers Satisfaction provided by SBI, Sonari Branch”, under my guidance and that no part of this report has been submitted for the award of any other Degree or Diploma to any other Board or University.

B.N.Tamuli

ACKNOWLEDGEMENT

This study was made possible with the consultations, support and kind opinions from several people. So with immense gratitude, I acknowledge all those, whose guidance and valuable inputs have helped in the materialization of this project.

I am indebted to Prof. B.N. Tamuli, Prof. Rubul Changmai, faculty of Sonari Commerce College, for his unfailing support throughout the study. His timely suggestions and novel ideas provided a better insight for the project of banking.

I thank Sonari Commerce College, for providing me with the opportunity to carry out this project work.

I thank all my friends, whose help and suggestions have helped to shape my project report into what it is today.

Finally, I am immensely grateful to my family for their constant encouragement and support.

(Snehlata Jain)

DECLARATION

I, Snehlata Jain of B.Com Part III, Studying at Sonari Commerce College, Sonari, hereby declare that this project report, titled “Banking Facilities and Customer Satisfaction provided by SBI Sonari Branch” has been prepared by me as partial of the requirements of the B. Com Program of the Dibrugarh University (Batch of 2011-2012). My guide for the project report has been Prof. B.N. Tamuli. 

I further declare that this project report has not been submitted earlier to any other University or Institute for the award of any Degree or Diploma.

(Snehlata Jain)

CONTENTS

Chapter 1 – Banking a Conceptual Framework…………………………………………….......

1.1 Concept of Banks………………………………………………………………...1.2 Capital Requirements to start up a Bank………………………………………...1.3 Types of Banks…………………………………………………………………..1.4 Nationalisation of Banks in India………………………………………………..1.5 Licensing of Banks in India……………………………………………………..1.6 Functions of SBI…………………………………………………………………1.7 Importance of SBI……………………………………………………………….1.8 Advantages of SBI……………………………………………………………….1.9 Role of SBI in Economy…………………………………………………………1.10Role of SBI in International Finance and Business………………………………..1.11Facilities and Services provided by SBI…………………………………………...1.12Recent Awards and Recognitions………………………………………………….

Chapter 2 – Review of Literature……………………………………………………………….

Chapter 3 – Research Design and Methodology………………………………………………..

3.1 Introduction……………………………………………………………………….3.2 Research Methodology……………………………………………………………3.3 Techniques of data collected……………………………………………………...3.4 Sources of Data…………………………………………………………………...3.5 Objectives of the Study…………………………………………………………...3.6 Hypothesis of the Study…………………………………………………………..3.7 Area of the Study………………………………………………………………….3.8 Period of the Study………………………………………………………………..3.9 Significance of the Study…………………………………………………………3.10 Population…………………………………………………………………………3.11 Sample…………………………………………………………………………….

Chapter 4 – Findings, Analysis and Conclusions……………………………..........................

4.1 Analysis…………………………………………………………………………4.2 Findings…………………………………………………………………………4.3 Suggestions……………………………………………………………………...4.4 Conclusions……………………………………………………………………..

.

Bibliography…….………………………………………………………………………………

Appendices……………………………………………………………………………………...

List of Tables……………………………………………………………………………………

List of Abbreviations……………………………………………………………………………

Chapter 1

BANKING - A CONCEPTUAL FRAMEWORK

1.1 CONCEPT OF BANKS

A bank is a financial institution that serves as a financial intermediary. The term ‘bank’ may refer to one of several related types of entities:

A Central bank circulates money on behalf of a government and acts as its monetary authority by implementing monetary policy, which regulates the money supply.

A Commercial bank accepts deposits and pools those funds to provide credit, either directly by lending, or indirectly by investing through the capital markets.

A Saving bank is similar to a savings and loan association (S & L). They can either be stock holder owned or mutually owned, in which case they are permitted to only borrow from members of the financial co-operative.

A Bank’s main source of income is interest. A bank pays out at a lower interest rate on deposits and receives a higher interest rate on loans. The difference between these rates represents the bank’s net income.

Banks acts as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customer’s current accounts. Banks also enable customer payments via other payment methods such as – telegraphic transfer, EFTPOS, and automated teller machine (ATM). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as bank notes and bonds. Banks lend money by making advances to customers on current accounts, by making instalment loans, and by investing in marketable debt securities and other forms of money lending.

Banks provide almost all payment services, and a bank account is considered indispensable by most business, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered and adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial business.

Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Some of the main risks faced by banks include- credit risk, liquidity risk, market risk, operational risk, etc.

1.2 CAPITAL REQUIREMENTS TO START UPA BANK

 The initial minimum paid-up capital for a new bank shall be Rs.300 crore.

The promoters’ contribution shall be a minimum of 40 per cent of the paid-up capital of the bank at any point of time.

 NRI participation in the primary equity of a new bank shall be to the maximum extent of 40 per cent. 

The new bank should not be promoted by a large industrial house. The bank shall be required to maintain a minimum capital adequacy ratio of

10 per cent on a continuous basis from the commencement of its operations.  The new bank will be required to open 25 per cent of its branches in rural and

semi-urban areas.

1.3 TYPES OF BANKS

There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types:

1. Central Bank – RBI is the central bank of India.

2. Commercial Banks:

a. Public Sector Banks: State Bank of India, Corporation Bank, Bank of Baroda, Dena Bank, etc are examples of public sector banks.

b. Private Sector Banks: The Jammu & Kashmir Bank Ltd., Bank of Rajasthan Ltd., Development Credit Bank Ltd., Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd., Global Trust Bank, Vysya Bank, etc are private sector banks.

c. Foreign Banks: Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American Express Bank, Standard and Chartered Bank, Grindlay’s Bank, etc are some foreign banks.

3. Development Banks: Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs) are examples of development banks.

4. Co-operative Banks:

a. Primary Credit Societies: These are formed at the village or town level with borrower or non-borrower members residing in one locality. The operations of its society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.

b. Central Co-operative Banks: These banks operate at the district level having some of the Primary Credit Societies belonging to the same district as their members. These banks provide loans to their members and functions as a link between the Primary Credit Societies and State Co-operative Banks.

c. State Co-operative Banks: These are the apex co-operative banks in all the states of the country. They mobilise funds and help in its proper channelization among various sectors.

5. Specialised Banks:

a. Export Import Bank of India (EXIM Bank).b. Small Industries Development Bank of India (SIDBI).c. National Bank for Agricultural and Rural Development (NABARD).

1.4 NATIONALISATION OF BANKS IN INDIA

Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of seven State Banks of India (formed subsidiary) took place on 19th July, 1960.

The State Bank of India is India’s largest Commercial Bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9000 branches and it offers either directly or through subsidiaries- a wide range of banking services.

The second phase of nationalisation of Indian Banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores. Till this year approximately 80% of the banking segments in India were under government ownership.

After the nationalisation of banks in India, the brances of public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11000%.

1955: Nationalisation of State Bank of India. 1959: Nationalisation of SBI subsidiaries. 1969: Nationalisation of 14 major banks. 1980: Nationalisation of 7 banks with deposits over 200 crores.

1.5 LICENCING OF BANKS OF INDIA

1. Save as hereinafter provided, no company shall carry on banking business in India unless it holds a licence issued in that behalf by the Reserve Bank and such licence may be issued subject to such conditions as the Reserve Bank may think fit to impose.

2. Every banking co. in existence of the commencement of this Act, before the expiry of 6 months from such commencement, and every co. before commencing banking business in India shall apply in writing to the Reserve Bank for licence under this section:

Provided that in the case of a banking company in existence at the commencement of this Act, nothing in sub-section (1) shall be deemed to prohibit the co. from carrying banking business until it is granted a licence in pursuance of this section or is by notice in writing informed by the Reserve Bank that a licence cannot be granted to it:

Provided further that the Reserve Bank shall not give a notice aforesaid to a banking co. in existence on the commencement of this Act. Before this expiry of the 3 years refer to in sub- section(1) of the section 11 or of such further period as the Reserve Bank may under that sub-section think fit to allow.

3. Before granting any licence under this section, the Reserve Bank may require to be satisfied by an inspection of the books of the co. or otherwise that the following conditions are fulfilled, namely-

a. that the co. is or will be in a position to pay its present or future depositors in full as their claims accrue,

b. that the affairs of the co. are not being, or are not likely to be conducted in a manner detrimental to the interest of its present or future depositors,

c. that the general character of the proposed manager of the co. will not be prejudicial to the public interest or the interest of its depositors,

d. that the co. has adequate capital structure and earning prospects,e. that the public interest will be served by the grant of a licence to the co. to

carry on business in India.

The Reserve Bank may cancel a licence granted to a public co. under this section:

if the co. ceases to carry on banking business in India or, if the co. at any time fails to comply with any of the conditions imposed up on

it under sub-section (i); or if at any time, any of the conditions referred to in sub-section (3) and sub-

section 3-A is not fulfilled.

Provided that before cancelling a licence under clause (ii) or clause (iii) on this sub-section on the ground that the banking co. has failed to comply with or has failed to fulfil any of the conditions referred to therein, the Reserve Bank, unless it is of opinion that the delay will be prejudicial to the co. on such terms as it may specify an opportunity of taking the necessary steps for complying with or fulfilling such conditions.

1.6 FUNCTIONS OF SBI

The Imperial Bank of India was nationalized in 1957 and after nationalization it was renamed as the State Bank of India. The functions of the commercial banks may be broadly classified into two categories called:

Primary functions Subsidiary functions

The primary functions of the State Bank of India are as follows:

Like other banks, it grants loans and deals in bills of exchange and hundies. If functions as a Govt. Bank where Reserve Bank of India does not exist. It undertakes treasury functions on behalf of the government.

The subsidiary functions of the State Bank of India are as follows:

It helps in issuing bank drafts at the time of transferring of funds. It helps in investing in securities. It purchases bills upto 15 months and issues foreign bills of exchange. It performs other banking functions of a commercial Bank.

1.7 IMPORTANCE OF SBI

SBI is the largest of the big four banks of India, along with ICICI bank, Punjab National Bank and HDFC Bank- its main competitors.

SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16000 branches has the largest banking branch network in India. SBI has 14 local Head Offices and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas.

With an asset base of $ 352 billion and $ 285 billion in deposits, SBI is a regional banking behemoth and is one of the largest financial institution in the world. It has a market share among Indian Commercial Banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed co. in the world according to Forbes. Also SBI is the only bank featured in the coveted “ Top 10 Brands of India” list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

SBI played an extremely important role in developing India’s rural regions, providing the financing needed to modernize the country’s agricultural industry and develop new irrigation methods and cattle breeding techniques, and backing e creation of dairy farming as well as pork and poultry industries. The bank also provided backing for the development of the county’s infrastructure, particularly on a local level, where it provide credit coverage and development assistance to villages.

1.8 ADVANTAGES OF SBI

SBI has done a lot to promote innovation and economic growth then almost any other institution. SBI plays a crucial role in today’s economy. Little can be understood about how the economic system works if you don’t take into account the various functions of SBI:

Investment: For any new business to get off the ground and begin operations, there must be capital available that can be used to purchase necessary equipment and property. SBI makes this capital available to new entrepreneurs through the great number of loans they provide.

Mortgages: The flat price of a home is beyond the purchasing power of most people. Only through the creation of mortgages by SBI, is the ability to purchase a house given to the average person.

Savings: Rather than merely keeping your money in a safe place, by placing your money in a bank account you add to your wealth, as the bank pays interest on the amount. This as a further advantage for society at large. As money saved in bank is not merely dead capital but money that the bank is actively investing in other enterprises, it helps to grow the wealth of society overall.

Payment: SBI have devised a number of ways to aid clients in the payment of their debts. SBI customers can use cheques as well as debit cards and online bill-paying services in a quick, easy way.

1.9 ROLE OF SBI IN INDIAN ECONOMY

SBI is an international commercial bank.. It has all the advantages that a commercial bank can bring. It creates credit, lends out loans, welcomes savings and so on.. Banks maximise their profits through interests. Banks might also attract investment with low interest rates,. They create jobs thereby contributing to economic development.

1.10 ROLE OF SBI IN INTERNATIONAL FINANCE AND BUSINESS

State bank of India, who is the largest bank of India, is growing fastly in international finance and service business sector. The following report can explain the role of SBI in International Finance and Business:

SBI has 92 foreign office spread over 32 countries for providing financial and banking business services.

SBI is doing business of banking with Italy's bank popolare di vicenza under co-operation venture contract.

SBI wants to increase his share in international business and finance up to 25% of his total business in 2012.

SBI purchased 76% shares of Indonesia's PT Bank Indomonex in 2005 and according to the Economics Times, SBI is making planning to acquire second top bank of Indonesia named EKsekutiff bank. SBI has already 10 branches in Indonesia. Merge of this Indonesia bank will enhance the importance of SBI in International finance and business.

1.11 FACILITIES AND SERVICES PROVIDED BY SBI

I. SBI provides various loans such as:

A. Personal Loan.B. Home Loan.C. Car Loan.D. Credit Cards.E. Loan against Property.F. Educational Loan.

A. PERSONAL LOAN

What is a Personal loan?

Personal Loan is an unsecured loan for personal use which doesn’t require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan varies from 1 to 5 years.

Benefits of Personal loan

1. A Loan without security: A Personal Loan is not a secured loan (bank doesn’t ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.

2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or documentation & doesn’t take much time to procure as against a Secured Loan.

3. No specification about the end use of the loan amount: You are not required to disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business & other factors of the borrower.

4. Big Loan amount: Personal Loan is a means to fulfil bigger loan requirement, you can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.

Basis to Compare Personal Loans

Compare Interest Rates: Personal Loan can be compared primarily on the basis of interest rates which vary across banks depending on your profile which is further linked to your occupation, salary/income, credit history etc. The personal loan interest rates ranges from 12% to 25%, you must go for that loan which is offering you at the minimum rate.

Other Charges: You should also check on the other charges like processing fee, pre-payment penalties and documentation fee because they increase the overall loan cost and vary widely across banks. 

Evaluation of various Loan offers: You should first calculate the entire loan cost across banks which constitutes the rate of interest & banks other charges. Evaluate offers keeping the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process will help you get the Best Loan deal.

EMIs: EMI is the monthly equated instalment which constitutes the principal amount and the interest on the principal equally divided across each month in the loan tenure. Use our EMI Calculator to compare EMIs across banks

 Tenure: Tenure is the time frame for the loan payments to be paid back to the bank; it ranges from 1 year to 5 years. If you have a longer tenure you will end up paying more interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs & the interest amount is less.

Charges involved in personal loan

The Rate of interest alone should not be judged before you finalize your application, apart from the rate of interest, personal loan also constitute other charges levied by the lender which affect the overall cost of your loan and should be considered while comparing it across banks. These charges are:

Processing fee Prepayment fee Late penalties Cheque bounce charges Documentation charges.

Documents required in Personal Loans

The documentation process is very fast as against home loan. Following documents are required by financial institutions to process the loan application:

Identity proof 3 to 6 months Bank statements Residence proof Salary slip Guarantors & their same set of documents

In case of self-employed banks require balance sheets, profit & loss account, partnership deed & other mandatory documents etc.

B. HOME LOAN

What is a Home loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Home Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property.

Types of Home Loan

There are different types of home loans available in the market to cater borrower’s different needs. These are:

Home Purchase Loan: This is the basic type of a loan which has the purpose of purchasing a new house.

Home Improvement Loan: This type of loan is for the renovation or repair of the home which is already bought

Home Extension Loan: This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc.

Home Conversion Loan: It is that loan wherein the borrower has already taken a housing loan to finance his current home, but now wants to move to another home. The Conversion Housing Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfils the money required for new home.

Bridge Loan: This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home.

Home Construction Loan: This type of loan taken when the borrower wants to construct a new home.

Land Purchase Loan: It is that loan which is taken to purchase a land for construction & investment purposes.

Charges in Home Loan

Acquiring a Home Loan doesn’t only involve the cost of home loan interest rates but it also includes other charges & fee accompanying at various stages of taking the Home loan. You must consider all these charges while comparing the cost structure across banks. Following is the detailed fee structure incurred by banks at different loan stages:

Processing Charge: It is a fee payable at the time of submitting the loan application to the bank which is normally non-refundable. The fee ranges between 0.5 per cent and 1 per cent of the loan amount.

Administrative Fee: It is a fee incurred by banks at the time of loan sanction; there are few banks who have removed this fee so you must check it with all the banks.

Prepayment Penalties: When the borrower pre-pays the loan before the loan tenure, banks charge a penalty which usually varies between 1 per cent and 2 per cent of the pre-paid amount.

Legal Charges: Banks also incur some charges from the customer for legal and technical verification of the property.

Delayed payment Charges: When there is a delay in the payment of your EMI, banks charge a late payment fee from the borrower which normally ranges from 2% to 3% of the EMI.

Cheque bounce charges: Banks charge between Rs. 250 and Rs. 500 for every bounced cheque towards the loan payment because of lack of funds in your account.

Tax Benefits in Home Loan

The Home Loan borrower enjoys Tax Benefits on both Interest paid and the Principal re-paid Under Section 24(d) of Income Tax, the deduction of Interest payable on the Home Loan is up to a maximum of Rs. 150000. Under Sec 80(c) of Income Tax, Principal amount for the repayment of loan along with other savings and investments is eligible for Tax Deduction up to a maximum limit of Rs. 100000.

Documents required in Home Loan

Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:

Age Proof Address Proof Income Proof of the applicant & co-applicant Last 6 months bank A/C statement Passport size photograph of the applicant & co-applicant

In case of Salaried

Employment certificate from the employer, Copies of pay slips for last few months and TDS certificate Latest Form 16 issued by employer Bank statements

In case of Self-employed

Copy of audited financial statements for the last 2 years Copy of partnership deed if it is a partnership firm or copy of memorandum of

association and articles of association if it is a company Profit and loss account for the last few years Income tax assessment order

C. CAR LOAN

Car loan application process:

1. Enquiry with a lender: Firstly you need to get in touch lenders and get them to make loan offers to you. Then negotiate with them to get the best car loan interest rates. Check if there are any special offers too. Then all you need to do is select the best bank (lender) by comparing the information you have collected to choose the best deal for you.

2. Documents Collection: After your lender selection, their direct selling agent will visit you to collect documents supporting proof of income, residence proof, and identity. You may be have to give copies of IT returns, salary slips, bank statements, passport, driving license, and other relevant documents as well. List of Car loan Documents (Please note that these requirements vary across lenders.)

3. Field Investigation Agency Representative Visit: After submitting the documents, a field investigator visits your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is important that you are present during this visit to clarify any question that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up - thus forcing the lender to reject your loan application.

4. Loan approved: After the lender is satisfied with the authenticity of your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).

D. CREDIT CARD

What is a Credit Card?

A Lot of people miscomprehend the usage of credit card thinking that it only augments their expenditure & nothing else, however they are not aware of the proper usage of the card. A Credit Card is plastic money which is used as a way of payment, facilitating you to purchase products/services on credit. It eases your life & your shopping experience is made simpler as you are not required to carry cash at all the places; just swipe your credit card & you are given a free credit period of 50-55 days by the bank. A lot of people think that the credit period starts from the date of purchase which is not correct; you should note that the credit period is calculated from the date of billing and not from the date of purchase.

Benefits of Credit Card

1. Free Credit Period: Firstly the Credit Card offers you a free credit period (of 50-55 days) from the date of the billing cycle which helps you to purchase on credit without any hassle of carrying cash, thus making your shopping much easier.

2. Online Shopping: The Credit Card helps you to buy products/services online or over the phone thus helping you to purchase anywhere 24x7.

3. Advantage of various Branding offers: Most importantly credit cards offer various discounts & schemes which are associated with entertainment, travel, shopping etc.

Issuing Credit Card Banks tie up with the reputed brands to sell products/services at attractive rates which you can buy through your credit cards. To check offers running on your credit card.

4. Borrowing cash through credit cards: You can also withdraw cash through ATMs at any time.

5. Credit Cards also offer reward points on purchases which you can accumulate and redeem later with cash backs & attractive gifts etc.

How does Credit Card work?

The players involved in the credit card business:

1. Credit Card Holder: The person who is issued a credit card, who actually holds & uses it. He purchases various things through the card & pays the borrowed money later within a scheduled time to the bank or the company.

2. Merchant/Shop-keeper: The person who accepts the payments from the card holder through the swiping of the credit card in return of the transaction.

3. Card Issuing Bank: It is the bank which has actually issued the credit card to customers & offers credit to them on transactions made by the card holder.

4. Acquiring Bank: All the transactions made using the credit card is done through the acquiring bank. The merchant pays a fee to the acquiring bank for the signing of machine & other services.

5. Credit Card Network: This is that network which helps facilitate the card transactions such as Visa or Master Card.

E. LOAN AGAINST PROPERTY

Simply put, a loan against property is what it actually connotes -- a loan given or disbursed against the mortgage of property. This is unlike a personal loan, which is disbursed to an individual; no questions asked. The loan is given as a certain percentage of the property's market value (usually around 40 per cent-60 per cent). But the threshold amount too is generally defined by most lending institutions like say, Rs 200,000. This multi-purpose loan puts funds at your disposal to use as you wish. It unlocks the hidden value in the property you own.

Features of Loan Against Property

Loans from Rs2 Lakhs onwards depending on your needs Borrow up to 70% of market value of the property Flexibility to choose between an EMI based loan or an overdraft

High tenure loans for ease of repayment. Attractive interest rates. Simple and speedy processing. Loan for salaried & self-employed individuals 

Advantages of taking a Loan Against Property: 

Cheaper than Personal Loans: It works out to be much cheaper than a personal loan, which is usually issued at interest rates in the region of 16 per cent-21 per cent.

Longer Loan Tenure: The tenure for a Loan against Property is usually longer than that for a personal loan. Generally, LAP is given for a maximum tenure of 10 years. 

Lower EMI: Since the rate of interest is lower, many times, LAP Equated Monthly Instalments (EMI) turn out to be cheaper than those under personal loans.

Simple documentation and Fast Approvals: LAP being a secured Loan has comparatively faster approvals and minimal documentation.

G. Education Loan

Education loans/Student loans are easily available from many banks and financial institution facilitating many students to pay for their higher education.

Special Education Grant

Special education generally refers to students who are differently-abled. However, it can also refer to students who require special education needs in other ways. For example, students with emotional difficulties that make it difficult to study may qualify for certain types of special education grants and loans. Students who are not able to attend regular classes for a specific reason may also qualify for special education loans and special consideration when pursuing a college degree. If, for example, you are hospitalized, you may qualify for special aid. Special education grants exist from a number of sources. These types of aid do not have to be paid back but allow students to pay for their education.

Grants for special education should be sought out earnestly by those were qualified for them. When it comes to grants, special-education students do qualify for both regular grants and special education grants. Students will want to apply for both types of grants to ensure that they get the funding they need.

Special Education Financial Aid options:

If you have a condition that prevents you from attending classes or taking part in degree programs regularly — for example, you are differently-abled or seriously ill and cannot leave

the hospital room — then special grants and loans exist to help you pay for education. Students with special needs often find that they require extra money for school. They may require Braille translated textbooks, for example, or they may require special computer equipment that allows them to study. Grants designed especially for special-education hope to address these additional costs for students while at the same time encouraging students with different abilities to apply for degree program.

Criteria for Special-Education Scholarship, Grant, or Loan:

If you have trouble with school because of the physical, emotional, or mental challenge, then chances are pretty good that there are financial aid options available for you. Some types of special-education scholarships or grants are designed for people with specific types of challenges. Others are simply earmarked for anyone who faces special challenges when pursuing an education.

Depending on the grants or scholarships to apply for, you may find that you require additional application materials. Often, you will need to provide a doctor’s note or some other confirmation of your condition. You’ll often also be asked to describe how your condition affects your ability to function.

Types of Special-Education Financial Aid Options:

1. Special Education Loans: If you require additional money because of special needs, special-education borrowing can help you make up the difference between your needs and your financial aid package. Federal student loan programs as well as private lenders will be able to lend you money that you can use toward your schooling. Once you finish your schooling or no longer enrolled, you will need to pay back your debt — with interest.

2. Distance Education Loans: Distance education is more popular than ever today. It allows students to study remotely, without having to attend classes at a university. This allows students from all walks of life to pursue a college education without disrupting their family or work life. While there is no doubt that distance education makes education more accessible to many, students often find that they require distance education loans in order to pay for their remote education. Distance learning education loans are more available than ever before. Students can now turn to a number of sources in order to get the money they need to succeed in school.

3. Alternative Education Loans: Alternative education loans are also known as private education loans. These loans are simply amounts of money lent by private lenders. They may be offered by banks, private companies, or other financial institutions or persons. The loans are attractive to distance education students because they are so flexible. You do not need to be a full-time student, in many cases, to qualify for some form of loan. You often do not need to be a United States citizen in order to apply for such loan. You can also apply this type of education loan to any school you attend.

4. Bank Loans: If you’re looking for online distance education loans, you may wish to seek out traditional loans as well. Traditional lines of credit, credit cards, personal loans, and other types of loans can provide a good alternative to distance education loans. These loans can help you pay off your education, and do not require an extensive application process. As long as your credit is decent, you can get approved with competitive interest rates. Of course, you will need to start repaying your loan right away. However, since many people pursuing distance education work full time as well, this is rarely a problem. An advantage of this type of loan is that it does not leave the student with a large debt after graduation. Plus, since many people pursuing distance education do so one course at a time, it is possible to get out one or two small loans in order to pay for education. In many cases, students find that this is enough.

5. Employer Education Loans: Some employers offer their employees financial assistance in order to go to school. Often, this is because extra education can make an employee more productive and more valuable to the workplace. Some employers are willing to offer private loans, or offer loans based on employers retirement contributions, in order to allow the employee to attend distance education courses.

II. MOBILE BANKING

 State Bank Freedom – Your Mobile Your Bank

Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank Freedom offers -convenient, simple, secure, anytime and anywhere banking.

1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP)

The service is available on java enabled /Android mobile phones (with or without GPRS) where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on all phones (java/non java) with GPRS connection.

The following functionalities are available:

Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS) Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service

Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions

Mobile Top up M Commerce (Top up of Tata sky, Big TV, Sun Direct, Dish TV, Digital TV and

Videocon d2h connections, SBI life insurance premium)

Business Rules

All Current/ Savings Bank Account holders in P segment are eligible. Transaction limit per customer per day is Rs.50,000/- with a calendar month  limit of

Rs.2,50,000/-  All customers can avail the Service irrespective of their telecom service provider. The Service is free of charge. SMS/GPRS cost will be borne by the customer.

2. Mobile Banking Service over SMS:

The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. Ordinary SMS charges are applicable.

The following functionalities are available:

Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS- Mobile to Mobile Transfer Change MPIN

Business Rules

All Current/ Savings Bank Account holders in P segment are eligible. Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of

Rs.5,000/-  All customers can avail the Service irrespective of telecom service provider. The Service is free of charge. SMS cost will be borne by the customer. As a matter of abundant precaution, Customers are requested to delete all the

messages sent to the number 9223440000, once the response for their request has been received.

3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data)

The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application.

The following functionalities are available:

Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up Funds Transfer (within Bank)

Business Rules

All Current/ Savings Bank Account holders in P segment are eligible. Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of

Rs.5,000/- The Service is available for subscribers of select telecom operators only. The Service is free of charge. USSD session charges will be borne by the customer. The service is session based and requires a response from the user within a reasonable

time

III. ATM SERVICES

State Bank Networked ATM Services

State Bank offers you the convenience of over 26,000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.

Kinds of Cards Accepted at State Bank ATMs

Besides all cards of State Bank of India, State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs:-

1. State Bank Credit Card

2. Cards issued by other banks  displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos

3. All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos

State Bank ATM-cum-Debit (State Bank Cash plus) Card:

India's largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You

can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card.

Features: 

Withdraw cash from over 26,000 ATMs of our group FREE and about 40000 ATMs of other banks under multi-lateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, ICICI Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying Master Card/ Maestro/Cirrus logo for FREE up to first 5 transactions (Financial and Non-Financial) in a calendar month (for SB account holders).

Make payments for purchases by using the debit card at more than 4 lakh shops, restaurants, shopping malls, hotels, petrol pumps and many other outlets which display Maestro logo.

Recharge pre-paid mobile phones of Vodafone, IDEA, Reliance and BPL without any charges at any State Bank ATM.

Pay MTNL, Mumbai bills through State Bank ATMs

Payment of Electricity Bills (Bescom), Bengaluru

Payment of SBI Credit Card bills

Payment of SBI Life insurance premium

Pay fees of select colleges

Registration of SBI Mobile Banking and SMS Alerts

Transaction Limits: 

Daily limit of Rs 40,000/- at the ATM Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions  Combined daily limit of Rs 90,000/-

The breakup of Multi Option Deposit Scheme units is available through the Saving Bank / Current Account linked with the ATM-Cum-Debit Card, if attached with the MODS. The withdrawals can be made in units of Rs 1000/- from the deposits.

State Bank Cash Plus International Card:

This is an International ATM-cum-Debit Card with which you can enjoy shopping at over 4 lakh establishments in India and over 10.5 Million establishment worldwide displaying Maestro logo, wherein the amount you spend on your card is automatically debited to your account. Withdraw cash from over 26,000 ATMs of our group FREE  of other banks  from ATMs displaying Master Card/ Maestro / Cirrus logo in India and more than 8,20,000 ATMs across the globe for a nominal fee. In India, it would function as the State Bank ATM-cum-Debit (Cash Plus) card. 

WITHDRAWAL LIMIT: -

Table-1.1 Cash Withdrawals (per day)

Source- www.statebankofindia.com

Table-1.2 Transaction at POS (per day)

  India AbroadMaximum Rs. 1,00,000 US$1000 or equivalent

Source- www.statebankofindia.com

Maximum permitted aggregate utilization in a day is Rs. 145000 in India and equivalent to US$ 2000 abroad (subject to compliance with the RBI and Exchange Control/ FEMA Regulations).

State Bank International ATM-cum Debit card

Eligibility:

All Saving Bank and Current Account holders having accounts with networked branches and are:

18 years of age & above Account type: Sole or Joint with "Either or Survivor" / "Anyone or Survivor" NRE account holders are also eligible but NRO account holders are not.

  India AbroadMinimum Rs. 100 Depends on the Bank whose

ATM is being usedMaximum Rs. 45000 US$1000 or equivalent

Benefits: 

Convenience to the customers travelling overseas Can be used as Domestic ATM-cum-Debit Card Available at a nominal joining fee of Rs. 200/- Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or equivalent at

Point of Sale (POS) terminal for debit transaction Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to Rs.

2,00,000/- Charges for usage abroad: Rs. 150+ Service Tax per cash withdrawal Rs. 15 + Service

Tax per enquiry.

*Conditions apply.

IV. INTERNET BANKING

The Internet banking portal of our bank enables its retail banking customers to operate their accounts from anywhere anytime, removing the restrictions imposed by geography and time. It's a platform that enables the customers to carry out their banking activities from their desktop, aided by the power and convenience of the Internet.

Using Internet banking services, you can do the following normal banking transactions online: 

Funds transfer between own accounts. Third party transfers to accounts maintained at any branch of SBI Group Transfers to accounts in State Bank Group Inter Bank Transfers to accounts with other Banks Online standing instructions for periodical transfer for the above Credit PPF accounts across branches Request for Issue of Demand Draft Request for opening of new accounts Request for closure of Loan Accounts Request for Issue of Cheque Book

Apart from these, the other salient value-added features available are: Utility bill payments Online Ticket Booking for travel by Road, Rail and Air SBILIFE, LIC and other insurance premia payments SBI and other Mutual funds Investments SBI and other Credit Card dues payments Tax Payment – Income, Service, State Govt Customs Duty Payment

Online Share Trading (eZ-trade@SBI) Online Application for IPO Fee Payment to select educational institutions including IITs and NITs

V. SAFE DEPOSIT LOCKER

For the safety of your valuables, we offer safe deposit locker facility at a large number of our branches. There is a nominal annual rent, which depends on the size of the locker and the centre at which the branch is located

It is always beneficial to avail the benefits of nomination facility/ survivorship clause provided to locker-hirers. The major advantage of availing these facilities is that in the event of unfortunate death of one of the joint locker-hirer, the right to the contents of the locker does not automatically devolve on the surviving joint locker-hirer/ nominee (s), unless there is a survivorship clause/ nomination. 

VI. E-RAIL

The facility has been launched w.e.f 1st September 2003 in association with IRCTC. The scheme facilitates Booking of Railways Ticket Online. The salient features of the scheme are as under:

1. All Internet banking customers can use the facility.2. You are required to register on www.irctc.co.in. You can select your train depending

on your journey and book your ticket online. 3. On giving payment option as SBI, the user will be redirected to onlinesbi.com. After

logging on to the site you will be displayed payment amount, TID No. and Railway reference no. 

4. On selecting the payment amount your account will be debited. You will return to www.irctc.co.in . The ticket with PNR No. will be displayed. You can print the ticket. 

5. The ticket can be delivered or collected by the customer. 6. The user can collect the ticket personally at New Delhi reservation counter.7. The Payment amount will include ticket fare including reservation charges,

courier charges and Bank Service fee of Rs 10/. 8. For cancellation, the ticket has to be presented over reservation counter. 9. No cash will be paid at the time of cancellation. Only cancellation ticket will be

issued. Your account will be credited after 4 days. 10. SBI shall not be responsible for any delays or disputes regarding tickets.

VII. RTGS/NEFT

Real Time Gross Settlement System (RTGS) &

National Electronic Fund Transfer system (NEFT) Bank offers Real Time Gross Settlement System (RTGS) & National Electronic Fund Transfer system (NEFT) which enables an efficient, secure, economical and reliable system of transfer of funds from bank to bank as well as from remitter’s account in a particular bank to the beneficiary’s account in another bank across the country. 1. RTGS: An electronic payment system in which payment instructions between banks are

processed and settled individually and continuously, on a real time basis, throughout the day. Available for transaction value of Rs.2.00 lacs and above.

 2. NEFT : Another electronic payment system in which payment instructions between banks

are processed and settled on deferred net settlement (DNS) basis at fixed times during the day. There is no minimum or maximum stipulated transaction value for using this facility.

 Note: RTGS and NEFT systems work on all days except on Sundays and common National Holidays across the states.

Information Required for transfer of Funds Amount to be remitted Account no. to be debited Name of the beneficiary bank Name of the beneficiary customer Account no. of the beneficiary customer Sender to receiver information, if any IFSC code of the receiving branch. (IFSC Code is printed on cheque leaves.)

VIII. RBIEFT

Inter-bank Electronic Funds Transfer facility of the Reserve Bank of India (RBI - EFT) is available with our branches in the clearing zone of Service Branches at Kolkata, Mumbai, New Delhi and Chennai.

IX. E-PAY

Bill Payment (e-Pay) will let you to pay your Telephone, Mobile, Electricity, Insurance and Credit Card bills electronically over our Online SBI website: https://www.onlinesbi.com. 

If your biller presents bills online, you can also give us Auto Pay instructions and we will pay the bills as and when it falls due.

The service is available for select local billers at Ahmedabad, Bangalore, Bhopal, Bhuvaneshwar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Kolkata, Lucknow,

Mumbai, Patna, Thiruvanathapuram. The national billers like LIC, SBI Cards, SBI Life Insurance etc. can be paid at any centre across the country.

You can add billers online using the Add Biller link on https://www.onlinesbi.com site or you can fill up the SBI e-Pay Registration Form (SeRF) which is available at the branch and submit thereat. Branch will add your Billers for payment over e-Pay.

X. MAGNETIC INK CHARACTER RECOGNITION(MICR)

In MICR technology the information is printed on the instrument with a special type of ink which is made up of magnetic material. On insertion of the instrument in the machine, the printed information is read by the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes easy and transfer of funds becomes faster in order to facilitate operations. 

XI. FOREIGN INWARD REMITTANCE

Drafts in Indian rupees can be purchased from exchange companies or our correspondents and mailed to the branch where you have your account. 

Telegraphic or wire transfers can be made through our branches abroad or our correspondents to branches having SWIFT/TT drawing arrangements. Please indicate your account number clearly.

Cheques can be deposited for credit of your accounts. These will be collected and credited to your accounts. 

Travellers cheques can be tendered by you personally during your visit to India.

If your branch is SWIFT enabled you can transfer funds from anywhere by SWIFT. 

For speedy credit to accounts from Gulf, you can use SBI Express.

For speedy credits from USA use SBI express credit. SBI express credits are through the Automated Clearing House (ACH), log on to www.onlinesbi.com/gls. Your money will be credited to your account in 4 days. [At present, there are no charges for remittances over $100].

XII. DEMAT SERVICES

SBI offers Demat services that would ensure free transferability of securities with speed, accuracy and security.SBI is Depository Participant both with - National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL) through more than 1000 branches. Features & Benefits

As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits: 

Account Maintenance & Safe custody: Facilitates Maintaining Security Balance in electronic form.

Dematerialization: Facilitates converting physical share certificate into electronic balances.

Re-materialization: Facilitates converting the electronic balances to physical (share certificate) form.

Account Transfers: Facilitates delivery/receipt of electronic balances consequent to market / off-market trades.

Pledge/Hypothecation: Facilitates blocking securities balance of borrowers in favour of lenders for obtaining Loans / advances against shares.

Initial Public offer: Facilitates faster and direct credit of security balances into DP account on allotment through public issue of companies.

Disbursement of corporate benefits: Facilitates faster and direct credit of security balance into DP account on account of non-monetary corporate benefits as bonus and rights issues.

Security Lending: Facilitates earning extra income on your dematerialized holdings by the way of securities lending.

In fact what makes scrip less holding in SBI DP account most attractive is the total ease of operation.Once you open your account, you can easily convert your physical holdings to paperless form by surrendering your share certificate together with a Demat request form. Thereafter, on selling / purchasing securities, you only need to give an appropriate instruction to effect settlement.

XIII. SBI YUVA CARD

SBI Yuva Card is an International Debit Card on VISA platform, exclusively designed for vibrant youth of India between 18-30 years of Age. The card can be used at ATMs for cash withdrawal at all ATMs under bilateral arrangement. It can be used for dining, shopping and travelling at POS/MEs. This Card is available in all our branches free of cost. You can not only draw cash at ATM but also swipe it for. This card is PIN based on ATM and signature

based at POS/MEs. This card can ‘be used for e-commerce i.e. for shopping through internet by using VbV (Verified by VISA) certified internet websites. Funds can also be transferred using VISA Monet Transfer facility. Using our ATMs, card holder can also transfer funds to other VISA Debit/ Credit Cards issued by our Bank or any other Bank. 

Table No. 1.3 Salient Features of SBI YUVA Debit CardSr. No.

Particulars SBI YUVA Card

1 Main Eligibility All Saving Bank and Current Account holders having account at CBS branches, in the age group of 18-30 years and holding account either in their sole name or jointly with their parents/ spouse with mode of operation " Either or Survivor"/ Anyone or Survivor will be eligible to apply for this card.

2 Daily Cash Withdrawal Limit

Minimum Rs.100 and Maximum Rs.50,000 / Overseas US $1000

3 Daily purchase limit at Merchant Establishments/Point of Sales/Internet Merchant Establishments

Rs. 2,00,000.00/ Overseas US$ 4000

4 Mode of Operation PIN on ATM, Signature at ME/POS and Verified by Visa password on Internet Merchant Establishments

5 Annual maintenance Fee

NIL

6 Complementary Insurance

Rs.2 lacs (accidental death only) and Rs. 5,000 on purchase protection

7 Loyalty Points One loyalty point equivalent to Rs.0.25 for every purchase of Rs.100 at POS. The loyalty points earned by the card holder, subject to a minimum 100 points, may be converted into monetary figures and credited back to the account at the end of every calendar quarter.

8 Cash Withdrawal & balance enquiryfee other than SBI ATMs

Cash Withdrawal-Free at SBI ATMs and for first 5 withdrawals in SB account in a calander month under multilateral ATMS and in other cases Rs. 20 Balance Enquiry- Free at all above ATMs.

9 Concessions 50% concessions on processing charges on loans 50% concessions on Demat A/C charges 25 basis point concessions in interest rates on Education, Housing and Vehicle loans to the card holders who maintain their salary / revenue accounts with us.

10 Validity of the Card 10 Years from the date of issue11 Visa Money Transfer

(VMT)Transfer of money from any ATM Debit Card issued by the bank to another VISA ATM Debit / credit card issued in India by the Bank / other Banks using their ATM PIN at ATMs & Active INB users through www.onlinesbi.comusing their ID and password up to Rs. 50,000.00 per transaction.

*The charges applicable are Rs. 20.00 + service charge per transaction.

12 Verified by Visa (VbV) By registering to the facility the card holders can securely carryout ecommerce transactions on VbV enabled websites. It is mandatory for the Card holders to register for the facility for carrying out e-commerce transactions on VbV enabled Internet merchants.

13 Other facilities Can undertake transactions through internet for ticketing, e- commerce. Visa Bill pay, Mobile Top Up, Virtual cards solution for e-commerce and wide range of Discount on shopping, entertainment and leisure, and purchase etc. on use of YUVA Cards.

Source: www.statebankofindia.com

XIV. STATE BANK GIFT CARD

With the advancement of Banking, Gift Cheques were introduced, allowing the beneficiary to use the money according to their wishes. These cheques, however, are accepted at the issuing bank branches only. The SBI Gift Card, issued in association with VISA International, is one such product which gives the comfort of convenience and wide acceptability. SBI Gift Card is a Pre-paid Plastic Card supported by Magnetic-stripe based technology. It is usable at all VISA enabled Merchant Establishments at PoS by signature. It is a perfect substitute for Gift Vouchers sold by many retail houses as its use is not restricted to any particular Merchant Establishment/ Point of Sale.

 Table no. 1.4Name of the

ProductSBI Gift Card

Currency of Issue

Indian Rupee only

Availability All State Bank of India Branches and also available online through SBI Internet Banking website www.onlinesbi.com for all SBI customers availing Internet Banking facility.

Re-load State Bank Gift Card is not re-loadableMinimum Amount of

Issue

Rs. 500 and thereafter in multiples of Rs. 1

Maximum Amount of

Issue

Rs. 50,000

Usage State Bank Gift Cards can only be used at VISA enabled Merchant Establishments at PoS by signature. Facility of cash withdrawal is not available on this card.

Balance enquiry Cardholder can view the balance in the Gift card and also obtain a transaction receipt indicating the balance from any State Bank Group

ATM in India free of cost and also online at www.prepaid.onlinesbi.comValidity of Card The validity of the card is for1 year from the date of issue.

Daily Transaction

Limit

No Limit

KYC * Full KYC of the purchasers of Gift Card required (separate KYC would not be required for customers who purchase Gift Cards against debit to their KYC-compliant accounts with State Bank of India).

Personalized Cards

The card can also be personalized, upon request by the Corporate for Bulk Issue.

Source- www.statebankofindia.com

XV. STATE BANK VISHWA YATRA FOREIGN TRAVEL CARD

State Bank Vishwa Yatra Foreign Travel Card is a prepaid Foreign Currency card that makes your foreign trip trouble-free and convenient. It is a Chip based Card which stores encrypted and confidential information. It offers you a convenient and secure way to carry cash anywhere in the world (valid worldwide except in India, Nepal and Bhutan).

State Bank Vishwa Yatra Foreign Travel Card is available in seven Foreign Currencies viz. US Dollars (USD), Pound Sterling (GBP), Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (YEN), Saudi Riyal (SAR) and Singapore Dollar (SGD).

 ELIGIBILITY:

Any bonafide citizen of India who plans to travel abroad except Nepal and Bhutan.

Corporate for their employees whom they plan to send abroad for official purpose subject to completion of KYC norms.

Parents / sponsors of the students going abroad for higher studies, in the student’s name and can be subsequently reloaded up to the statutory ceiling prescribed from time to time.

Foreign Nationals residing in India subject to completion of KYC norms.

FEATURES:

Minimum amount of load: USD 500/GBP 250/Euros 400/CAD 500 /AUD 500/YEN 50,000/SAR 2000/SGD 600.

Minimum amount of re-load: USD 250/GBP 125/Euros 200/CAD 250/AUD 250/YEN 25,000/SAR 1000/SGD 300.

Maximum amount of issue: As prescribed by RBI/FEMA 1999 depending on the purpose of overseas visit.

Competitive exchange rates.

Reloadable any number of times.

SMS message on your Mobile phone for each transaction.

Opera table by 4 digits PIN at ATMs and by PIN/Signature at Merchant Establishments.

Free balance enquiry at State Bank Group ATMs and VISA ATMs (at a charge).

Free balance enquiry and view/download details of transactions through https://prepaid.onlinesbi.com

Add-on cards not exceeding two in number to be used by the card holder in case of loss/misplacement/defacement of the card.

Balance information after each transaction through SMS.

A 24 x 7 call centre to provide information and hot-list (block) the card in case of loss / misplacement.

DOCUMENTS 

Copies of Passport. Form A2 PAN or Form 60 in lieu thereof. Proof of residence in case the address is different from that appearing on passport.

1.12 Recent Awards and Recognitions

Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010

The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine

Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009

Best Bank 2009 by Business India

The Most Trusted Brand 2009 by The Economic Times

Most Preferred Bank & Most preferred Home loan provider by CNBC

Visionaries of Financial Inclusion By FINO

Technology Bank of the Year by IBA Banking Technology Awards

SKOCH Award 2010 for Virtual corporation Category for its e-payment solution

The Brand Trust Report: 11th most trusted brand in India

Chapter-3 Research Design and Methodology

3.1Introduction:

This chapter includes methodology used, area of the study, sampling, sources of data, types of data, objectives of the study.the population, significance of the study, period of the study and hypothesis of the study are included in this chapter. Efforts has been made to design the project, how it is proposed to be done.

3.2 Research Methodology:

Research Methodology deals with the systematic and analytical methods that can be adopted to solve research problems. Methodology is a crucial step in any research because it directly influence the whole research and its findings.The present study is carried out to gain an insight into the customer satisfaction level with the quality of services provided by SBI, Sonari Branch. Accordingly, the use has been made of primary as well as secondary data. The secondary data have been collected mainly from periodicals, newspapers, books and internet.

To know the banking facilities and customers satisfactions provided by SBI,questionnaires have been used to collect necessary datas from customers and manager of SBI,Sonari Branch.

3.3 Techniques of Data Collected:

For this project study, both primary and secondary data are collected. Secondary data are collected from website of SBI, bank magazines and journals. Primary data have been calculated from persons having account in SBI, Sonari branch by filling up well structured

questionnaire and through personal meetings with customers and manager. The questionnaire comprises of open ended questions.

3.4 Sources of Data:

The Primary data are collected through questionnaire and secondary data are collected through periodicals, newspapers, websites, journals, etc.

3.5 Objective of the Study:

The main objective of the study are

to find out the facilities provided by SBI. to find out the level up to which the customers are satisfied with the facilities of SBI,

Sonari Branch. to find out the problems faced by the customers of SBI, Sonari Branch.

3.6 Hypothesis of the Study:

The following hypothesis is taken for the study:

Banking facilities provided by SBI, Sonari Branch is not satisfactory.

3.7 Area of the Study:

The area of the study is confined to the people of Sonari, who are the customers of SBI, Sonari Branch. In the present study people of Sonari as well as nearby villages are considered.

There are three banks in Sonari- SBI, UCO and GVB, out of which SBI is most liked by the people. In Sonari, customers of SBI are comparatively much more than that of GVB and UCO bank.

3.8 Period of Study:

This study covers the period from June 2011 to December 2011

3.9 Significance of the Study:

It is expected that the study will be of immense significance to the customers of SBI, as well as the common people who would like to deal with SBI.

With the phenomenon increased in the country’s population and the increased demand for banking services, speed and service quality, customer’s satisfaction are going to be key differentiators for each bank’s future success. Thus it is imperative for SBI to get useful feedback on their actual response, time and customer’s service quality perception of banking facilities, which in turn will help them to take positive steps to maintain a competitive study.

3.10 Population:

The customers of SBI are considered as population for the study. The reason behind choosing this area is that almost all of the variables of population are highly educated people of society. They are educated people who know the importance of banks and the facilities provided by it.

3.11 Sample:

It is not feasible to go for a population survey due to numerous customers and this scattered location. Hence, I had gone for intelligent sampling.

In this research I had surveyed 30 respondents who were having their accounts with SBI in Sonari Town. In this research stratified and convenience sampling method has been used for sampling procedure

Chapter 4 Findings, Analysis and Conclusions

4.1 Analysis

1. Annual Income

Income 0-150000 150000-200000No. Of Persons 18 12

0-150000 150000-20000002468

101214161820

No. Of Persons

No. Of Persons

From the above Graph it is disclosed that 60 % of the respondents are having their annual income up to Rs. 150000 and 40% of the respondents are having annual income from Rs. 150000 to Rs. 200000.

2. Do you think that your bank caters all your banking needs?

Yes 30No 0

Yes No0

5

10

15

20

25

30

35

Series1

From the above graph it is disclosed that cent percent of the respondents thinks that their bank caters all their banking needs.

3. For the past how many years you have an account with this bank?

Years No.Of Persons0-5 35-10 6

10-15 915-20 12

0-5 05-Oct Oct-15 15-200

2

4

6

8

10

12

14

No.Of Persons

No.Of Persons

From the above graph it is disclosed that 10 %, 20 %, 30 %, 40 % respondents have their account with this bank from 0-5, 5-10, 10-15, 15-20 years respectively.

4. What type of account do you maintain in this bank?

Type Of Account No. Of PersonsSavings A/C Only 21Current A/C Only 0Both 9

Savings A/C Only Current A/C Only Both0

5

10

15

20

25

No. Of Persons

No. Of Persons

From the above Graph it is disclosed that 70 % of the respondents maintains savings A/c and 30 % of them maintains Both Savings and Current A/c.

5. What are the facilities provided/offered by your bank?

Facilities No. Of PersonsLoan 0Overdraft 0

ATM 0Mobile Banking 0All 30

Loan Overdraft ATM Mobile Banking

All0

5

10

15

20

25

30

35

No. Of Persons

No. Of Persons

From the above Graph it is disclosed that cent percent of the facilities i.e. loan, overdraft, ATM and mobile banking are provided by their bank.

6. Does your bank conduct any recreation facilities for the customers?

Yes 18No 12

Yes No0

2

4

6

8

10

12

14

16

18

20

Series1

From the above Graph it is disclosed that 60 % of the respondents agree on the recreational facilities provided by their bank.

7. Is your bank listed in the stock exchange?

Yes 6

No 0Not Aware 24

Yes No Not Aware0

5

10

15

20

25

30

Series1

From the above Graph it is disclosed that 80 % of the respondents are not aware whether their bank is listed in stock exchange or not.

8. Does your bank have core banking facilities for the customer?

Yes 30No 0

Yes No0

5

10

15

20

25

30

35

Series1

From the above Graph it is disclosed that cent percent of the respondents agree that their bank provide core banking facilities.

9. Do they charge unnecessarily for maintaining minimum balance in your account?

Yes 0No 30

Yes No0

5

10

15

20

25

30

35

Series1

From the above Graph it is disclosed that cent percent of the respondents says that their bank donot charge unnecessarily for maintaining minimum balance in their account.

10. Does your bank offer competitive service charges?

Yes 6No 24

Yes No0

5

10

15

20

25

30

Series1

From the above Graph it is disclosed that 80 % of the respondents accepts that their bank do not offer competitive service charges.

11. Do you use the service of alternative bank?

Yes 24No 6

Yes No0

5

10

15

20

25

30

Series1

From the above Graph it is disclosed that 80 % of the respondents use the services of alternative banks.

12. What do you feel about the overall service quality of your bank?

Excellent 3Very Good 3Good 24Average 0Poor 0

Excellent Very Good Good Average Poor0

5

10

15

20

25

30

Series1

From the above Graph it is disclosed that 80 % of the respondents feels Good about the overall service quality of their bank.

13. Would you recommend this bank to your friends, relatives, associates?

Yes 30No 0

Yes No0

5

10

15

20

25

30

35

Series1

From the above Graph it is disclosed that all the respondents surveyed recommend this bank to their friends, relatives, associates etc.

14. When you think of your bank, what comes first in your mind?

Personalized Services 0Wide Branch Network 18Customer Service 3Computerized Banking 3Core Banking 6

Personaliz

ed Se

rvices

Wide Bran

ch Netw

ork

Customer

Servic

e

Computerize

d Bankin

g

Core Ban

king

02468

101214161820

Series1

From the above Graph it is disclosed that 60% of the respondents thinks about Wide Branch Network first for their bank while 20% of them thinks about Core Banking and 10% of the respondents thinks about Customer Service and Computerized Banking first for their bank.

15. Are you satisfied with the number of cash counters in this bank?

Yes 9No 21

Yes No0

5

10

15

20

25

Series1

From the above Graph it is disclosed that 70% of the respondents are satisfied with the number of cash counters in this bank.

16. Are you satisfied with the locker facility provided by this bank?

Yes 30No 0

Yes No0

5

10

15

20

25

30

35

Series1

From the above Graph it is disclosed that all the respondents surveyed are satisfied with the locker facility provided by this bank.

17. Your overall opinion about this survey?

Satisfactory 9Will Yield Result 12Looking forward for results 9

Satisfactory Will Yield Result Looking forward for results

0

2

4

6

8

10

12

14

Series1

From the above Graph it is disclosed that 40% of the respondents thinks that this survey will yield result,while 30% of them thinks satisfactory about this survey and rest of them are looking forward for results.

4.2 Findings:

From Customers’ point of view:

After analysing the data in tabular form, I found that the customers are satisfied with the services provided by this bank to some extent, but at the same time there are some matters which do not satisfy them. They face problems when the staff behave rudely with them and do not attend them when the working hour is going to be off, the staffs at the same time are conscious about leaving their workplace. The customers are not satisfied with the lack of “may I help you” counter as when a person is new for the bank, no one is there to guide him where to go or how to do what he wants to do etc. They also complains about lack of advertisement about new launched schemes. They don’t even know about any new schemes when it is newly launched, they become aware of it after some time from outsiders. Beside these unsatisfactions, there are some fields which satisfy the customers, like loan facilities, overdraft facilities, ATM facilities, mobile banking, recreation facilities, core banking facilities, locker facility, etc.

Cent percent of the respondents whom I surveyed maintain savings bank account in this bank and they feel good about the overall service quality of this bank. They do recommend this bank to their friends, relatives, associates, etc. the respondents of this bank are not satisfied with the number of cash counters and they expect some more counters which may help them to do their transactions in lesser time. The customers suggested that the bank is yet to instil confidence among the customers that it has the ability to provide excellent services dependably and accurately.

From Field Manager’s point of view:

The SBI of Sonari was established in Sonari in 1984 and the bank building is a rented house. This bank provided short term, medium term and long term loan in the initial stage and accepted deposits, provided loans to the businessmen as well as to the employees at that time. The customers response was also satisfactory at the time, they repaid their loans with in the stipulated time. The bank collects fixed deposit, current deposit, savings deposit, etc from the customers and they are attracted by both deposit as well as loan schemes. There are approx. 50000 customers in this bank and the yearly collection from customers is Rs. 60 crores approx. This bank has its own ATM facility and the trend of the customer from the starting date till today is increasing and most of the customers belong to employees’ group. The customers do not disclose the rude behaviour of the staffs to the manager due to the inconveniences which may be caused by the working staffs to their accounts. Due to the lack

of knowledge of the customers, the staffs get irritated by their unnecessary talking and the disturbances made by them.

Mr. Borthakur, Field Manager of SBI, Sonari Branch told about many developmental schemes for the local people of Sonari- KCC, KVIC, PMRY, PMEGP, express loans.

4.3 Suggestions:

To the Customers:

I suggest the customers firstly to be educated enough to know the systems, and rules of the bank, so that they can do by themselves whatever they wants to do without giving any inconveniences to the staffs or manager. They should also have patience to complete their work; they should understand the stress and burden of the working staffs during rush. They should directly discuss with the manager about the difficulties they face in the bank.

To the Manger:

The manager should guide his working staffs to change their rude behaviour for the customers and be friendly and decent. The manager should give some more facilities to its customers like “May I help you” counter, to guide the people how to do the work they wants to do.

4.4 Conclusion

After doing the task of project work, I came to the conclusion that between many obstacles and many bars, the SBI is very good bank. It is serving our nation since 1806 and still serving. It cares for the customers need and also provides the customers their full satisfaction and relaxation to their depository money. The overdraft customers are also satisfied with the bank and its facility, as bank minimizes the rate of interest time and again for their special customers. Overall, it is the best bank in the world, it is the widespread bank, having the highest number of branches in the world.

The scope of future research on this topic is vast. As this study has focused on only empirically establishing the banking facilities and customer’s satisfaction provided by SBI in Sonari Branch. Future study can elaborate on the extent of customer’s satisfaction on the services provided by SBI, all over Assam or India

This study carried out offers a basis for others to carry out extensive research in this field and also provides them preliminary knowledge for their research.

LIST OF ABBREVIATIONS

EMI- Monthly Equated Instalment

TDS- Tax Deducted at Source.

IT- Income Tax.

DD- Demand Draft

LAP – Loan Against Property

WAP- Wireless Application Protocol

IMPS- Interbank Mobile Payment Service

DTH- Direct To Home Satellite

MPIN- Marketing Partner ID Number

USSD- Unstructured Supplementary Services Data

VISA- Visitors’ Intention to Stay Abroad

POS- Point Of Sale.

MODS- Multi Option Deposit Scheme

NRE- Non-Recurring Expenses

PPF- Public Provident Fund

IPO- Initial Public Offering

IITS- Indian Institute of Technology

NITS- National Institute of Technology

IRCTC- Indian Railways Catering & tourism Corporation

TID- Target ID

PNR- Passenger Name Record

RTGS- Real Time Gross Settlement System

NEFT- National Electronic Fund Transfer

DNS- Deferred Net Settlement.

IFSC- Indian Financial System Code

EFT- Electronic Fund Transfer

MICR- Magnetic Ink Character Recognition

ACH- Automated Clearing House

CDSL- Central Depository Service Limited

NSDL- National Securities Depositories Limited

VbV- Verified By Visa

VMT- Visa Money Transfer

KYC- Know Your Customer

PAN- Permanent Account Number

KCC- Kisan Credit Card

KVIC- Khadi & Village Industries Commission

PMRY- Prime Minister Rozgar Yojana

Bibliography:

1. Business Studies- R.K. Sharma, Shashi K. Gupta, S.S. Sarkar.2. Business Environment- S. Sachdeva.3. Indian Financial System- P.N. Varshney, D.K. Mittal4. Arunodaya- House Magazine of State Bank of India5. www.sbi.com 6. www.statebankofindia.com 7. www.deal4loans.com 8. www.onlinesbi.com