m.com(Final)

Name : Hemang Surendrabhai Patel.
Roll No : 25.
Project : Working of UMA Co-operative bank.
Name of bank : UMA Co-operative bank ltd.
(Makarpura branch).
Faculty : Co-operative management and rural studies.
M. S. University of Baroda.
M.com(final).
(2015-2016).
Teacher : Prof. Girish thakkar

 CONTENTS
Introduction.
Definition & types of bank.
Types of Loan, accounts & transaction.
Description of Transactions.
RTGS/NEFT & ECS description.
Pertinent & systematic approach.
Specific & systematic structure of staffing.
Duty & positioning of staff.
Concerning digitalized aspect.
Better parameters.
Working on principle of CO-Operation.
Authority & responsibility.
Conclusion.

 Introduction.
 In common parlance UMA CO-operative bank is an urban co-
operative bank which deals with the peoples who residing in the
urban area.
 UMA Co-operative Bank established in 21-08-1982.
on the recommendation of the R.B.I under Banking Regulation
Act,1949.

 The Origin of the Bank is derived from the Group of
"MAHESANA PATIDAR SAMAJ".
 The Board comprises-
Chairman - Shri. Bachubhai Patel.
Vice chairman - Shri. Somabhai L. patel.
Managing Director - Sankar bhai patel.
 UMA CO-Operative Bank Registered under,
o Gujarat CO-Operative Society Act 1961.
Recently in registered in,
o Gujarat CO-Operative Society Act 2012.
 The Bank Vested in Federal Structure,
 Head office - Nizampura branch,Vadodara.
And 5 Branches.
 Subhanpura Branch - (Branch Code.003)
 Makarpura Branch - (Branch Code.005)
 Ranoli Branch - (Branch Code.004)
 Waghodiya Branch - (Branch Code.006)
 Ajwa branch - (Branch Code.007)

 Overview of UMA CO-Operative bank (2014-2015) (rs. in lacks)
 Total number of share holders = 8162.
 Total amount of share capital = 219.52.
 Total deposits received throughout year = 10974.55.
 Total advances given by the bank = 6722.50.
 Total business = 14385.58.
 Net profit (profit after tax) = 172.98.
 Gross N.P.A (non performing assets) =120.81.
(advance for which the principal or interest payment remained overdue for a period of 90 days.)
 Total amount of reserved been kept by bank = 2436.91.
 As per financial report 2014-15 dividend now given to the
members on the rate of 15% per annum.
 Profit is to be distributed under, (rs. in lacks)
 Amount of Reserve fund on 31-3-2015 = 322.00.
 Reserve fund including general reserve (at rate 25%) = 432.4.
 Education cess throughout the year (2.5%) = 30.00.
 Dividend equalisation fund (2%) = 34.59.
 Building fund (40%) = 691.92.

 Recently,
UMA CO-Operative bank has renewed the negotiations with the
YES BANK LTD. On regards to the RTGS/NEFT and also increased
the limit of the RTGS/NEFT with the good amount of rate for the better
contingency.
 RTGS charges (revised),
o Up to 5 lacks = 28rs. (per transaction)
o Above 5 lacks = 56rs. (per transaction)
 NEFT Charges (revised),
o Up to 1 lacks = 6rs. (per transaction)
o Above 1 lacks = 28rs. (per transaction)
 Bank also been revised the Investment depreciation fund to the
10% of total amount which is 21.85lacks.
 Bad debt reserve also been revised in current year and comprises
10% on the total debt which incurred to 21.85lacks.
 All the expense and fixed cost are settle under the Net profit after
tax which is in 2014-2015 = 1729.80 lacks.
 As per, GUJARAT CO-OPERATIVE SOCIETY ACT,2002
Sec.115(j) 15% of total net profit is to be kept under the column of
SAMKARI FUND.

 Definition of Banking.
 As per Section 5(b) of the Banking Regulation Act, 1949
"banking" means the accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawable by cheque, draft, order or
otherwise.
 In India Co-operative banks and Types of banks comprises, with
the Regulation and bye-laws of R.B.I and State co-operative
society Act.

 Banking structure in India.
3 Tired CO-Operative Banks structure in India,
State
Co-operative
bank
District
Central
Co-operative
banks
PACs
(primary
agricultural
credit
co-operative
banks)

Meaning of co-operative bank.
 A co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the customers
of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a
common interest. Co-operative banks generally provide their
members with a wide range of banking and financial services.
 Co-operative banks differ from stockholder banks by their
organization, their goals, their values and their governance. In most
countries, they are supervised and controlled by banking
authorities and have to respect prudential banking regulations,
which put them at a level playing field with stockholder banks.
Depending on countries, this control and supervision can be
implemented directly by state entities or delegated to a co-
operative federation or central body.
 Co-operative banks are deeply rooted inside local areas and
communities. They are involved in local development and
contribute to the sustainable development of their communities, as
their members and management board usually belong to the
communities in which they exercise their activities. By increasing
banking access in areas or markets where other banks are less
present - SMEs, farmers in rural areas, middle or low income
households in urban areas - co-operative banks reduce banking
relying on the above-mentioned principles of organization, has
proven successful both in developed and developing countries.

 Types of Loan, accounts & transaction.
 In UMA Co-operative bank there are major 5 types of accounts.
1. Saving A/C
2. Current A/C
3. Cash Credit A/C
4. Fixed Deposit A/C
5. Recurring A/C
 Loan disbursement refers to.
1. Continues Loan - Cash Credit.
2. Term Loan.
3. Period wise Loan.
4. Bank Guarantee.
5. Bank Solvency Certificate.
6. Cheque Discount/Bills Receivable/Bills Discount.
 Types of transaction relating to.
1. Receipt - Cash & Transfer.
2. Payment - Cash & Transfer.
3. RTGS/NEFT
4. CTS Inward/CTS Outward

 Types of accounts.
 Types of accounts related to deal with the different types of
customers and different kind of transactions. To handle them UMA
co-operative bank adopt the various types of accounts such as,
1. Saving account.
 Saving account refers opened to encourage the people to save
money and collect their savings. Interest rate are to be provided to
the customer as per rules and regulation of the R.B.I
 The saving account holder is allowed to withdraw money from the
account as and when required. The interest which is given on
saving accounts is sometime attractive, but often nominal.
 There is no restriction on the number and amount of deposits.
However, in India, mandatory PAN (Permanent Account Number)
details are required to be furnished for doing cash transactions
exceeding Rs.50,000.
 Withdrawals are allowed subject to certain restrictions. The rate of
interest payable is very nominal on saving accounts. At present it is
between 4% to 9.5% p.a in India. As per Banking Regulation Act.
 Saving account is of continuing nature. There is no maximum
period of holding.

 A minimum amount has to be kept on saving account to keep it
functioning.
 Generally, equated monthly installments (EMI) for housing loan,
personal loan, car loan, etc., are paid (routed) through saving bank
account.
 Annexure of saving account in UMA CO-Operative bank.

2. Current account.
 Current bank account is opened by businessmen who have a higher
number of regular transactions with the bank. It includes deposits,
withdrawals, and contra transactions. It is also known as Demand
Deposit Account.
 Current account can be opened in co-operative bank and
commercial bank. In current account, amount can be deposited
and withdrawn at any time without giving any notice. It is also
suitable for making payments to creditors by using cheques.
Cheques received from customers can be deposited in this
account for collection.
 In India, current account can be opened by depositing Rs.5000
(approx. US $ 100) to Rs. 25,000 (approx. US $ 500). The
customers are allowed to withdraw the amount with cheques, and
they usually do not get any interest. Generally, current account
holders do not get any interest on their balance lying in current
account with the bank.
 Current bank accounts are operated to run a business. It needs a
higher minimum balance to be maintained as compared to the
savings account.

 Banker requires KYC (Know your Customers) norms to be
completed before opening a current account. The main objective of
current bank account is to enable the businessmen to conduct their
business transactions smoothly. There is no restriction on the
number and amount of deposits. There is also no restriction on the
number and amount of withdrawals made, as long as the current
account holder has funds in his bank account.
 Annexure of current account in UMA CO-Operative bank.

3. Cash credit account/C.C account.
 Cash credit is an arrangement under which a customer of a bank or
financial institution is allowed an advance up to certain limit against
credit granted by bank. however the customer/borrower of the loan
may take the amount of loan to the extent required by him but not
exceeding the limit of Rs. 1 Lakhs.
 The purpose for which loan is required is essential to ascertain, as for
different purposes different types of loan can be taken. Eg. Incase the
loan is required to purchase fixed assets like plant and machinery,
term loan must be taken as plant and machinery are long term assets it
will take time in repayment of the loan and repayment can be done in
EMI’s (Equated Monthly Installments). Where as a loan required for
working capital needs a long term loan is not required as repayment
does not require long period,
hence cash credit may availed.
 In Cash Credit facility an amount of loan is given to the
borrower/businessman for his working capital needs. The entire
amount of working capital required is not funded by the bank, some
small amount will have to be funded by the businessman and the
balance amount will be funded by a bank as a loan. This is as per RBI
rules.

4. Fixed deposit accounts.
 fixed deposit (FD) is a financial instrument provided by banks
which provides investors with a higher rate of interest than a
regular savings account, until the given maturity date.
 The account which is opened for a particular fixed period (time) by
depositing particular amount (money) is known as Fixed (Term)
Deposit Account.
 The term 'fixed deposit' means that the deposit is fixed and is
repayable only after a specific period is over.
 Under fixed deposit account, money is deposited for a fixed period
say six months, one year, five years or even ten years. The money
deposited in this account cannot be withdrawn before the expiry of
period.
 The rate of interest paid for fixed deposit vary (changes) according
to amount, period and from bank to bank.
 The main purpose of fixed deposit account is to enable the
individuals to earn a higher rate of interest on their surplus funds
(extra money).
 The amount can be deposited only once. For further such deposits,
separate accounts need to be opened.
 The period of fixed deposits range between 15 days to 10 years.
 A high interest rate is paid on fixed deposits. The rate of interest
may vary as per amount, period and from bank to bank.

 The depositor is given a fixed deposit receipt, which depositor has
to produce at the time of maturity. The deposit can be renewed for
a further period.
5. Recurring Deposit
 Recurring Deposit is a special kind of Term Deposit offered by
banks in India which help people with regular incomes to deposit a
fixed amount every month into their Recurring Deposit account
and earn interest at the rate applicable to Fixed Deposits.
 Recurring Deposit is a special kind of Term Deposit offered by
banks in India which help people with regular incomes to deposit a
fixed amount every month into their Recurring Deposit account
and earn interest at the rate applicable to Fixed Deposits.
 It is similar to making FDs of a certain amount in monthly
installments, for example Rs 1000 every month. This deposit
matures on a specific date in the future along with all the deposits
made every month. Thus, Recurring Deposit schemes allow
customers with an opportunity to build up their savings through
regular monthly deposits of fixed sum over a fixed period of time.
Minimum Period of RD is 6 months and maximum is 10 years.

 The Recurring Deposit can be funded by [Standing order
(banking)Standing instructions] which are the instructions by the
customer to the bank to withdraw a certain sum of money from his
Savings/ Current account and credit to the Recurring Deposit every
month.
 When the RD account is opened, the maturity value is indicated to
the customer assuming that the monthly installments will be paid
regularly on due dates. If any installment is delayed, the interest
payable in the account will be reduced and will not be sufficient to
reach the maturity value.
 Loan disbursements
1. Cash credit
 A cash credit is a short-term cash loan to a company. A bank
provides this type of funding, but only after the required security is
given to secure the loan. Once a security for repayment has been
given, the business that receives the loan can continuously draw
from the bank up to a certain specified amount.

2. Term loan
 In term loan there has been two major type of loan,
a) fix installment wise loan
which define in broad categorize as in,
I. Vehicle Loan
II. Personal Loan
III. Machinery Loan
IV.Housing Loan
V. Mortgage Loan
b) Period wise Loan.
I. Loan on Fixed Deposit
II. NSC/KVP Loan
III. Loan on LIC
3. Bank Guarantee
 In bank guarantee bank taken guarantee against the company
which intends to take loan from other financial institution in which
bank charged its remuneration to the guarantor and play role as a
guarantor

4. Bank solvency certificate
 In which bank gives a certificate called credit worthiness
certificate to the company which intends to take loan or other
perquisites from any other institution
5. Bills receivable/cheque discount
 These are the various types of loans which given by the UMA co-
operative bank and only to the share holders decision of to whom
loan is to be disbursed is decided in to the Annual General Meeting
up to the majority of board of directors.
 Prime customer is handled by the branch manager respectively and
branch manager takes decision and disbursed the loan.
 all loan and advances given by the bank under the bye laws of the
society UMA co-operative bank registered under the co-operative
society act and which it has to be follow.
 RTGS/NEFT/ECS
RTGS refers to,
 The full form of RTGS is "Real Time Gross Settlement". RTGS
can be defined as "as the continuous (real-time) settlement of
funds transfers individually on an order by order basis (without
netting")

 Here the words 'Real Time' refers to the process of instructions that
are executed at the time they are received, rather than at some later
time. On the other hand "Gross Settlement" means the settlement
of funds transfer instructions occurs individually (on an instruction
by instruction basis). The settlement of funds actually takes place
in the books of RBI and thus the payments are considered as final
and irrevocable.
NEFT refers to,
 The full form of NEFT is "National Electronic Funds Transfer
(NEFT). The NEFT is a nationwide payment system facilitating
one-to-one funds transfer. Under this system, individuals, firms
and corporate can electronically transfer funds from any bank
branch to any individual, firm or corporate having an account with
any other bank branch in the country participating in the system.
RTGS Vs NEFT
 Thus, we can say that both RTGS and NEFT are schemes started
by RBI for the benefit of the customers which allow accounts
holders in the banks to electronically transfer the funds intra-
bank. In the case of RTGS, settlement in on 'Real Time' basis
whereas in case of NEFT the settlement in on batch basis and net
basis. There are some other rules, regulations and differences,
which we will be discussing below:-

Particular
RTGS NEFT
Minimum Amount :
limit
RS 2 lacks No minimum
Maximum Amount :
ceiling
No upper ceiling No upper
 RBI has prescribed the following operating hours for NEFT :
Presently, NEFT operates in hourly batches - there are twelve
settlements from 8 am to 7 pm (Monday through Friday and also
on Working Saturdays i.e. Saturdays other than 2nd & 4th
Saturdays)
 RBI has prescribed the following operating hours for RTGS :
The RTGS service window for customer's transactions is available
from 8.00 hours to 16.30 hours(Monday through Friday and also
on Working Saturdays i.e. Saturdays other than 2nd & 4th
Saturdays).
 RTGS charges
(a) Inward Transactions : Free, no charge to be levied.
(b) Outward Transactions: Rs 2 lakh to Rs 5 lakh - Not
exceeding Rs 30 per transaction; Above Rs 5 lakh - not
exceeding Rs 55 transactions;

 NEFT chages
a) Inward transactions at destination bank branches
(for credit to beneficiary accounts)
Free, no charges to be levied from beneficiaries.
b) Outward transactions at originating bank branches
charges applicable for the remitter
- For transactions up to Rs 10,000 : not exceeding Rs 2.50
(+ Service Tax)
- For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5
(+ Service Tax)
- For transactions above Rs 1 lakh and up to Rs 2 lakhs
not exceeding Rs 15 (+ Service Tax)
- For transactions above Rs 2 lakhs: not exceeding
Rs 25 (+ Service Tax)
 ECS
 ECS is an electronic mode of funds transfer from one bank account
to another. It can be used by institutions for making payments
such as distribution of dividend interest, salary, pension, among
others

 Systematic aproach and structure of staffing of the
bank
 The systematic structure of the staffing in the bank works smoothly
towards hectic schedule in the every branch of UMA CO-Operative
bank there are,
 Through which accountability of the work is been done and
suitability of congeal atmosphere is been done by the bank by these
tremendous structure of the staffing.
 Every work and every transaction in peek time is been short out by
the staff easily.

Better parameters.
 Better parameters has been done in the bank with the specialized
knowledge of the judgment and knowledge of maintaining
relations with the customers And mainly Concerning with
digitalized aspect with the easy banking software and daily time
basis attendance with digitalized.
Working on principle of CO-Operation.
It has been seen that in UMA CO-Operative bank all the staff
members coordinating each other and cooperate each other also
they make personal touch to the consumer who came in the bank
so business would automatically will grow on other hand Authority
& responsibility is disbursed very efficiently by the directors of the
bank every branch has each branch manager and officer to tackle
the transaction and critical eventually came loopholes.
the head office coordinating very well to the all branch for the
better working and congeal atmosphere of the banking business
the CO-Operation amongst Members and CO-Operation amongst
Branches is been seen.

 Conclusion.
For the better growth of any business enterprise there has to be,
1. Service motive.
2. CO-Operation.
The success behinds UMA CO-Operative bank, it has strong
membership and organizational structure with the wisdom and
sympathy amongst the CO-OPERATION.
(Thank you)
Encl.
Copy of Financial Report.
Credentials and Forms.

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