1.
2
I M POSSIBLE
Bibek Prajapati
(FCMA, CS , MBA, M COM, ).
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Thank You

2.
 Banking – Defined
 Banking Functions
 Deposit Schemes
 KYC Norms
 Payment Mechanism
 Lending activity
 Agency Services
 General Utility
Services
 Banker Customer
Relationship
 Nominations
 E Banking
 Mode of Securities
 5 Cs of Credit
 Secured Vs
Unsecured Loan
 Retail Lending
Products
 Credit Cards
 Frauds & Scams
 Credit Information
Bureau
 Banking Ombudsman

3.
 Banking is defined in Section 5 (b) of the
Banking Regulation Act 1949 as
the acceptance of deposits of money from
the public for the purpose of lending or
investment. Such deposits may be repayable
on demand or otherwise and withdrawable by
cheque, draft, order or otherwise.

4.
 Accepting of Deposits from Public
 Lending to the Public
 General Utility Services
 Agency Services

5.
 Current Account Deposits
 Savings Bank Deposits
 Fixed Deposits – Interest paid
periodically
 Reinvestment Deposits – Interest
accumulated
 Cash Certificates
 Recurring Deposits

6.
 Demand deposits are those which can be
withdrawn or transferred by the customers at
any time without prior notice to the bank.
 These deposits are maintained to meet
liquidity and transaction needs.
 Time Deposits are also called Fixed Deposits
or Term Deposits. These are repayable after
the expiry of a specified period

7.
 In order to prevent identity theft, identity
fraud, money laundering, terrorist financing
etc, the RBI had directed all banks and
financial institutions to put in place a policy
framework to know their customers before
opening any account.
 KYC involves verifying customers' identity and
address by asking them to submit documents
that are accepted as relevant proof.

8.
 Photograph
 Identity proof: Any one of the documents viz.
PAN Card/Voters Identity/Passport/Driving
Licence
 Address proof: Anyone of the documents viz.
Ration card/Electricity Bill/Telephone
Bill/Letter from the employer or any
recognized public authority certifying the
address

9.
 ATM
 Cheque
 Draft
 ECS
 NEFT
 RTGS
 Credit Card

10.
 Bouncing of Cheque comes under Section 138 of Negotiable
Instruments Act, which can lead to criminal. In case of cheque
bounce, the opposite party can be sued. The rules in this
regard are:
a) If a cheque is bounced, a notice has to be sent to the
opposite party within 30 days from the date of memo
accompanying the bounced cheque received from the Bank.
b) The opposite party has 15 days time from the receipt of
the notice to settle the matter and no cause of action arises
till the expiry of these 15 days or if paid within this specified
period.
c) After the completion of said 15 days, if the opposite party
does not settle the matter or ignores the notice, then the
holder of the cheque may file a criminal complaint before the
appropriate court within 30 days of the expiry of said 15
days.
d) If it is beyond 30 days period, the delay can be ignored by

11.
 Consumer finance
 Working capital
finance
 Term finance
 Corporate finance
 Bill finance
 Export finance
 Trade Finance
 Rural finance
 Agriculture finance
 SME finance
 Microfinance

12.
 Agency services are those services which are rendered by
commercial banks as agents of their customers. These are:
 a) Collection and payment of cheques and bills on behalf of the
 customers;
 b) Collection of dividends, interest and rent, etc. on behalf of
 customers, if so instructed by them;
 c) Purchase and sale of shares and securities on behalf of customers;
 d) Payment of rent, interest, insurance premium, subscriptions etc.
 on behalf of customers, if so instructed;
 e) Acting as a trustee or executor;
 f) Acting as agents or correspondents on behalf of customers for
 other banks and financial institutions at home and abroad.

13.
 General utility services are those services which are rendered
by commercial banks not only to the customers but also to
the general public. These are available to the public on
payment of a fee or charge.
 They include :
 a) Issuing letters of credit and travellers’ cheques;
 b) Underwriting of shares, debentures, etc.;
 c) Safe-keeping of valuables in safe deposit locker;
 d) Underwriting loans floated by government and public
bodies.
 e) Supplying trade information and statistical data useful to
customers;
 f) Acting as a referee regarding the financial status of
customers;
 g) Undertaking foreign exchange business

14.
 Debtor-Creditor
 Creditor-Debtor
 Bank as a Trustee
 Bailee-Bailor
 Agent-Principal
 Lessor-Lessee

15.
 An account can have only one individual as nominee. It can be
made in favour of a minor also.
 Nomination can be made for all types of accounts - Savings,
Current, Demat, Recurring and Fixed deposit.
 A nominee can be added by simply filling up a form and
submitting it to the bank branch.
 Addition/ modification/deletion of nomination can be made
as many times as desired.
 Always ask for an acknowledgement after the submission of
the nomination form.
 In the event of demise of the account holder the bank shall
hand over the proceeds from his account to the nominee with
minimal documentation.

16.
 The Banking Ombudsman is a senior official,
appointed by the Reserve Bank of India to address
grievances and complaints from customers,
regarding deficiencies in banking services. It covers
all kinds of banks – PSU Banks, Private banks, Rural
banks and co-operative banks.
 It covers deficiencies in services of banking
transactions viz. internet banking, ATM cards, debit
cards, credit cards, deduction of service charges by
banks without prior intimation, unfair practices of
banks and non-compliance by direct sales agents
(DSA) of banks for services promised while opening
an account, credit services etc.

17.
Nature of complaints referred to Banking
Ombudsman
 Levying of charges without any notice or Information
 Cheque lost in transit by the bank
 Non-updation of CIBIL records
 Loss of cheque from Cheque drop box
 Unreasonable credit card charges or fraudulent transactions on lost
credit card
 Fraudulent transfer of funds by using net banking
 Closure of any account without providing any information or reason
 When bank demands unreasonable proofs for opening of account
 Change in terms and conditions without notice or valid reason
 Delay in providing any service
 Mis-selling of Insurance products
 Forcing customers to take insurance policies for processing Loans
 Harassment to customer or misbehaviour for any reason

18.
Procedure of Complaint ?
There are two ways of filing your complain .
 Online Complaint : You can complain to Banking ombudsman
online by filling up the form. Once you fill up the form , you
can also upload your proofs like bank rejection letter, banks
reply or anything else.
 Offline Complaint : You can also complain in offline mode to
Banking Ombudsman. Just download the form from Banking
Ombudsman website and fill up the complaint. You should
provide your contact information, name and address of the
bank against which you are lodging the complaint,
documentary evidence and the compensation you need. Once
you have filled up the form, you can send it to the Banking
Ombudsman address which comes under your jurisdiction

19.
 Deposit Insurance
 Dormant Accounts
 NRI Accounts
 Bancassurance

20.
Internet Banking can be used for the following.
 View account balances
 Transfer funds between accounts
 Create fixed deposits – online
 Request a Demand Draft
 Order a cheque book
 Pay utility bills – insurance premium, credit
card etc.

21.
BANK CREDIT &
LOAN PRODUCTS

22.
 Lien
 Set Off
 Pledge
 Hypothecation
 Mortgage
 Assignment

23.
Mode of
Security
Description
Lien Legal claim against an asset which is used to secure a
loan. For e.g. loans raised from banks against the lien of
FD receipt.
Set Off Right of a creditor to adjust the amount in another
account towards the liability of the same person. For e.g.
banker can exercise the right of adjusting the credit
balance in SB account of a person towards his liability in
loan account.
Pledge It is the bailment or delivery of an asset to a creditor as
security for a debt. For example, in gold loans gold is
delivered to the financing agency as security for availing
gold loan.
Hypothecatio
n
Is the creation of an agreement in respect of taking
security of movable goods, without delivery of
possession of the moveable property. The creditor has

24.
Character – borrowers reputation
Capacity – ability to repay a loan
Capital – ability to provide borrower’s
contribution
Collateral – additional security to secure the
loan
Conditions – terms and conditions of the loan

25.
 If a loan is secured, it means it is secured
against something you own and failing to
repay the loan could result in lender taking
possession of that asset and selling it to
cover their losses.
 Unsecured loan does not require you to
secure anything against the loan – the lender
relies on your contractual obligation to pay it
back.

26.
 Role of HFIs and banks
 Construction of Houses or Outright purchase
of housing property
 Security being Mortgage of the house
property proposed to be purchased
 Loan – long term, repayable after ten, fifteen
or twenty years
 Repayable by EMI
 EMI based on repayment capacity of the
borrower

27.
 Legal clearance of the documents of the
properties
 Necessary approval of the local authorites
 Disbursement of loan in stages if
construction is in stages
 Fixed interest or floating interest rate
 Spouse’s salary can be reckoned to arrive at
the salary
 Tax relief on instalmens as well as interest on
HL

28.
 Security being hypothecation of the vehicle.
 Loan upto 80% of the on road price of the
vehicle
 Term – upto 5 years
 Interest rate, generally, low
 Hypothecation charges to be noted in the RC
book
 Cancellation of Hypothecation charge entry in
the RC book, once the loan is closed.

29.
 The OD Limit, upto 50% of the market value
of the property
 Security being mortgage of the house
property
 Interest on loan amount to be remitted then
and there
 Client can operate the loan account like a
current account, withdrawals subject to the
maximum OD limit.
 Loan documents to be signed by the party

30.
 Security being pledge of gold/gold
ornaments
 Interest rate is generally low
 Loan eligibility upto certain percentage of the
market value of the gold ornaments
 Duration of the loan, generally, one year
 Failure to repay the loan and interest would
result in auctioning the gold ornaments by
the bank/financial institution

31.
 To meet the educational expenses
 Upto Rs 4 lakhs no collateral security
 Necessary proof of securing education at
specified educational institutions to be
provided
 Loans disbursed against reimbursement of
fees remitted, other expenses incurred etc.
 Guardian to join as co-obligant
 Repayment to start after six months of
getting the job or within such period as
specified in the loan sanction note.

32.
 Based solely on the credit rating and ability to
repay the loan
 Loan for short duration
 Interest rate generally high
 Repayment through EMI
 Post Dated Cheques (PDCs) to be remitted

33.
 Credit card vs Debit card
 Free use of credit for a specific period
 Credit Limit
 Monthly bill is to be settled before the due
date
 Minimum balance to be remitted, the balance
can be carried forward
 Interest rate, generally, high

34.
 Fraudulent forces operating in the society
 Offers lucrative returns to lure the investors
 Check the service provider/issuing agency is
legitimate
 Whether it satisfies in terms of safety and return
 Whether the promise is practical and how income
is generated to service the obligation.
 Ponzi schemes are fraudulent in vestment
operation that pays return to investors not from
any actual profit, but from their own money or
money paid by subsequent investors.

35.
 CIBIL (Credit Information Bureau of India Ltd)
 Information on credit history of individuals
shared with banks and financial institutions
 Banks and financial institutions submit data to
CIBIL
 CIBIL tracking repayment history of individuals
 CIBIL gives a credit score
 Good credit score enables one to get credit at
cheaper rate
 Individuals can access CIBIL to know their credit
score on payment of prescribed fee.

36.
47
I M POSSIBLE
Bibek Prajapati
(FCMA, CS , MBA, M COM, ).
My kind request for you Please like , subscribe ,comment and don’t forget to share
Pray to God for the success in Life
Thank You

37.
THANKS