Professional Documents
Culture Documents
To a presentation on
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Basics of
BANKING
K P RAPHEL , Director,
CBRSETI ,THRISSUR
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STRUCTURE OF PRESENTATION
What is Banking. Evolution of Banking. Major Acts related to Banking Banking Functions Opening of bank accounts . Lending Present Day Indian Banking Scenario
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WHAT IS BANKING ?
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INFORMAL BANING
Barter system HAWALA has its origin in ISLAMIC LAWS The financing of long distance trade Money is transferred via a network of Hawala Brokers ,without exchanging any promissory instruments. Attractive because it provides fast and convenient transfer of funds
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BANK OF VENICE - 1157 BANK OF ENGLAND 1694 GENERAL BANK OF INDIA -1786 NATIONALISATION OF BANKS -1969
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Central Bank Reserve Bank Of India 01.04.1935 John Hilton Young Commission 1926 RBI Act 1934 Nationalisation on 01.01.0949 RBI the REGULATOR
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RESERVE BANK OF INDIA - RBI ACT 1934 , established on 01.04.1935 ,nationalised on 01.01.1949 1 Central Office and 4 Local Boards 1 Governor,4 Dy Governers&15 directors
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FUNCTIONS
Issuance of Currency (u/s 22) Bankers to Government (u/s 20) Bankers Bank Controller of Banks Controller of Credit Statutory Reserve Liquidity adjustment facility
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Came in to effect on 16.03.1949 Applicable all over India Not applicable to PACS,Co operative land mortgage banks and Non Agrl Primary credit societies
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SCHEDULED BANK
As per sec 2(e) of RBI Act ,Scheduled Bank is a Bank, whose name is included in the Second Schedule of RBI Act A State Co op bank or a Company, defined in Companies Act 1956 Paid up Capital & Reserve not less than 5 lacs
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Effective from 01.03.1882 Applicable all over India 147 sections and 17 chapters
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NEGOTIABLE INSTRUMENTS
As per s 13,a Negotiable Instrument means and include Promissory Note, Bill of Exchange and Cheque payable to Bearer or Order. As per S 21 of Indian currency Act Currency Note is not a Negotiable Instrument
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CHEQUES
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Paper Cheque Electronic Cheque-E C Cheque is a Cheque,which contains the exact mirror image of a paper cheque and is generated , written and signed in a sewcured in a secured system ensuring the minimum safty standards with the use of digital signature
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TRUNCATED CHEQUE
The cheque is scanned and electronic image , instead of the physical chequeis transmitted in clearing house
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Bearer / Order cheque Date of Cheque Negotiation. Endorsements Crossing Dishonour of Cheque
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BANK ACCOUNTS
KYC NORMS Know Your Customer guidelines were issued by RBI in Aug 2002 u/s 35(A) of BR act relates to identification of depositors with the objective to prevent banks from being used by Criminal elements for money laundering activities
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BANK ACCOUNTS
Documents for opening Bank A/c Who can open an account ? Types of accounts Current A/C Savings Bank A/C Term deposits Recurring account
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OTHER SERVICES
Remittances & Exchange Funds Transfer Safe Deposit Locker Safe Custody Article
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Adjusted Net Bank Credit means Net bank credit plus Investments made by Banks in NON- SLR Bonds held in HTM category
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COMPONENTS OF PS
1.AGRICULTURE 2.SMALL ENTERPRISES 3.OTHER PRIORITY
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NEW INITIATIVES
Financial Sector Reforms Financial Inclusion Simplify K Y C NORMS Opening of NO FRILL ACCOUNTS General Purpose Credit Cards SLBC project 100% Financial Inclusion Business Correspondents/Facilitator
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Financial literacy- Credit counseling centers Bio metric ATMS Usage of Other banks ATMs Cash delivery at POS M&A
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FINANCIAL INCLUSION
What is financial exclusion ? 139 districts suffer Financial Exclusion Adult population per branch is 20,000 URBAN areas-59% banked 41%unbanked RURAL areas 39% banked 61% unbanked
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Announced on 20.04.2010 Key rates hiked by 25 BPs CRR 5.75 to 6.0%(wef24.04.10) REPO 5.0 to 5.25% REVERSE REPO 3.5% to 3.75% GDP growth rate forecast 8% Credit Growth target 20%
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PROJECT REPORT
1. 2.
PROMOTER PRODUCT
3.
4. 5.
PROCESS
FINANCIALS MARKETING
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PROMOTER
BACKGROUND OF PROMOTERS EDUCATIONAL QUALIFICATION EXPERIENCE PAST RECORD EXISTING STATUS OF BUSINESS NET WORTH IT/WT ASSESSMENT ORDERS
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PRODUCT
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PROCESS
LICENCE & PERMITS LAND & BUILDING MECHINERY PLANT LAYOUT POWER ,WATER , FUEL & OTHER UTILITIES AVAILABILITY OF MANPOWER
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FINANCIALS
COST OF LAND&LAND DEVELOPMENT COST OF BUILDING & STRUCTURES COST OF PLANT & MACHINERY SOURCE OF FUNDS WORKING CAPITAL PRELIMINARY EXPENSES OPERATING STATEMENT FUND FLOW STATEMENT BREAKEVEN ANALYSIS
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MARKETING
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MARKETING
MERCHANDISING WAREHOUSING AFTER SALES SERVICE SALES PROMOTION ADVERTISING CREDIT POLICY
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ANY CLARIFICATION ?
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