Banking

Financial Awareness

• There are various reasons why banks should lend money. Firstly, Bank lends money to earn income and fulfil the legal requirement of Banking Regulation Act, 1949, second, in order to meet its liabilities arising out of interest and non-interest paid expenses, and third, as a partner to economic development process, e.g. lending to trade, commerce, industry, agriculture etc.
• Bankers have liability on them as a part of Fair Practices Code set by IBA/RBI. These are:
• Develop simplified and comprehensive loan application forms containing all important information like interest rate, manner of charging interest, etc.
• Develop system of giving acknowledgement for receipt of all applications indicating any fee taken for processing fee, etc.
• As a lender to ensure that there is proper assessment of credit requirement of borrowers.
• Keep the record of duly signed sanctioned letter containing amount, interest charged and installment amount to be paid more...

THE CONCEPT OF MARKETING Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Basically, marketing is a business technique devised to sell products and services keeping in mind the needs and requirements of existing and prospective customers. Marketing is based on five concepts:

Product concept

Production concept

Marketing concept

Social marketing concept

Selling concept

  IMPLEMENTING THE MARKETING CONCEPT To implement the marketing concept/ companies need to focus on 3 basic areas:

Target market: The first step is to identify the target market. This can be by market research and deciding which target market will give the best returns.

Value proposition: In this concept/ the companies decide what strategy they need to adopt. The combination of above- the-line (ATL) and below-the-line (BTL) activities should be adopted. The kind of more...

Current Developments in Indian Banking   The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks/ in addition to cooperative credit institutions.

The Indian Banking industry is currently worth Rs. 81 trillion (US $ 1.31 trillion) and banks are now utilizing the latest technologies like internet and mobile devices to carry out transactions and communicate with the masses.

  BHIM (Bharat Interface for Money) BHIM (Bharat Interface for Money) is a Mobile App developed by National Payments Corporation of India (NFCI), based on the Unified Payment Interface (UPI) intended to facilitate e-payments directly through banks. It was a part of the 2016 Indian bank note demonetisation and drive towards cashless transactions. Government will also launch two new schemes to more...

  Indian Economy   Economy is a framework, within which economic activities like investment, production and consumption are carried out. The economy of India is the 7th largest in the world by nominal GDP and the 3rd largest by Purchasing Power Parity (PPP). On a per capita income basis, India ranked 140th by nominal GDP and 122nd by GDP (PPP) in 2015, according to the IMF. India is the 19th largest exporter and the 13th largest importer in the world.   Economy An economy consists of the production, trade of distribution and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individual, businesses, organisations or governments.   Types of Economy Following are the types of economy   Capitalist Economy In this type of economy, the central problems of economy is that there more...

  Origin and Development of Banking in India   A bank is a financial institution that provides banking and other financial services to their customers. A bank is generally understood as an institution which provides Fundamental Banking Services such as accepting deposits and providing loans.   History of Banking in India Banking system has been existing in India since ancient times. Though it was not in organised form before the arrival of Britishers, various banking activities were performed. After the arrival of Britishers in 17th century foreign banking system started declining. Mayser's Alexander and company established the first European bank The Bank of Hindustan in 1770. The development of Banking system in India can be understood with the help of following choronology. We can summarise the origin of banking in India in the following way,   Early Phase of Indian Banks before more...

  Banking Regulation System of India   The nature of banking business can be summarized in two words i.e. financial intermediation, which needs to be carried out efficiently for stimulating the real sectors of the economy. Another essential characteristic of banks is that they are highly leveraged and hence, need to be regulated for protecting the interest of depositors.   Banking in India, as elsewhere, takes diverse forms viz, banks formed under special statutes, companies registered under the Companies Act, 1956 or foreign companies and cooperative societies registered under the Cooperative Societies Act. Banks are classified on their ownership pattern such as Public Sector Banks, Private Sector Banks and Foreign Banks.   Indian Companies (Amendment) Act, 1936 The Indian Companies Act that was passed in 1913 introduced the institution of private companies in corporate more...

  Financial Reforms in Banking Sector   A new era of banking industry in India was started after independence. In this era, efforts were made to improve banks's methodology and responsibilities and various committees were formed in this regard. Apart from this, banks also took various steps to improve their working procedure.   Important Acts Related to Banking Regulation   Banking Regulation Act, 1949 The Banking Regulation Act, 1949 came into force on 16th Mar, 1949. It contained various aspects related to Banking Companies in India. Its purpose is to

• provide safety in the interest of depositors;
• prevent misuse of powers by managers of banks;
• see that the act does not supersede, but supplements to the Companies Act, 1956.

  State Bank of India Act, 1955 Imperical Bank of India was transformed into SBI through SBI Act, 1955 more...

  New Banking System   Over the years, banks in India have taken a new turn to avail their services to its customers in more easy and friendly manner. RBI is the sole organisation for providing a platform to fulfill the services offered by various bank. The Government's objective of achieving 100% financial inclusion in India got a shot in the arm with the new banking system.   Indradhanush Scheme for Public Sector Banks Union Government has launched a seven pronged plan called Indradhanush Mission to revamp functioning of Public Sector Banks (PSBs). Mission Indradhanush is aimed to revamp the functioning of public sector banks so that PSBs can compete with the Private Sector Banks. The mission is a brainchild of PJ Nayak committee. The mission includes the seven key reforms of appointments, board of bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms.   more...

  Banking Innovation in India   The term "Innovation" means to make something new- The innovations in the banking field mainly depends upon rapid growth in the technology. The banking industry has became one of the developed service sector industries in India. In the last decade, India has seen a shift from traditional payment methods, i.e. cash/paper-based payments to modern electronic payment systems. On one hand innovation has increased the working efficiency of banks whereas on the other hand customers are also at an ease.   Automated Teller Machine Automated Teller Machine (ATM) is a computerised machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial and non-financial transactions without the need to actually visit their bank branch. The benefit of ATMs for customers

provide 24 x 7 and 365 days a year service.

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  Financial Institutions in India   Finance It is the procurement (to get, obtain) of funds and effective utilization of funds. It is the science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial system which include the public, private and government spaces and the study of finance and financial instruments, which can relate to countless assets and liabilities.   Categorization of Finance Finance can be categorised into three types according to their objectivity

• Short Term Finance It is often referred to as bridging finance, which usually refers to loans mostly offered on terms of up to 15 months.
• Mid Term Finance This type of finance is given for longer period. It is for period saying from 15 months to 5 yr. Prominently it is given for machines, land separation, etc.
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