SBI, HDFC, Yes Bank, PNB Banking | Full Details of the Functioning
SBI, HDFC, Yes Bank, PNB Banking-Banks play an important role in the form of financial intermediaries. Banks have emerged as institutions enjoying people’s trust.
As a financial institution, following are the roles of the banks:-
Constitution of payment system
Other financial services providers
What are the Principles of SBI, HDFC, Yes Bank, PNB Banking?
Following are the Principles of Banking:-
i) Liquidity: The main source of income for banks is the interest that they earn on the loan. Banks stays in business by lending most of their deposited amount. At the same time, they should always be in a position to meet the monetary demands of their customers.
A single mistake from the bank can lead to serious consequences. Thus, banks need to maintain adequate cash reserves at all times. Thus the ease with which an asset can be converted to cash is called as Liquidity. Banks can not afford to make a profit while compromising on liquidity.
ii) SBI, HDFC, Yes Bank, PNB Banking Security: How people believe the prudent depends largely on the perception of a bank in their business practices. Suppose that bank is lending to a risky business, such a bank would not enjoy the confidence of its customers.
Just as liquidity and profitability are concerned, risk and profitability are also inversely related. Banks need to survive in order to find a good balance between the two.
After all, banking is essentially handling and/or managing risk. The more prudent bank is in risk management, the better it will be in terms of its image and the possibilities of survival and development.
iii) SBI, HDFC, Yes Bank, PNB Banking Profitability: In case of a bank that is not adequate or it is unsafe, it is likely that people will avoid such a bank. But apart from this, trust also depends on the profits of the bank. If the bank is unprofitable then the confidence of customers is likely to dry up.
If a bank incurs loss or makes only a small profit year after year, then customers will think twice before opening an account with a bank like this, unless they are enjoying some other benefits.
In India, people have a common belief that the public sector banks will not fail because their owners will come to the government for their protection. These people have a different perspective towards the private sector banks.
Banks should be quite beneficial so that they can be able to survive in the long run to maintain the faith of the people.
iv) SBI, HDFC, Yes Bank, PNB Banking Privacy: During the transaction with your business and customers, banks get to know many details about their clients’ finances. Banks need to maintain such confidential information because disclosure to wrong persons can lead to harm to the customer.
Banks, charge some fee from their customers to ensure the full privacy of the information of the customers. A bank needs to take this duty very seriously so that it can enjoy the trust of the customers.
v) SBI, HDFC, Yes Bank, PNB Banking Quality of service: Banking is essentially a transaction-oriented business. The customer has to deal with the banks for most of their financial transactions. As the intensity of the conversation is very high, customers will naturally prefer to deal with those banks that make transaction or conversation pleasant and fast.
In case of errors and delays, poor quality service can seriously lead to the loss of customers’ confidence. This is because such errors and delays in financial transactions can result in a different financial loss due to bitterness. Banks that do not offer quality service cannot enjoy the trust of their customers.
Banking rules are aimed at encouraging banks to follow the principles of liquidity, safety, profitability, and privacy and quality of service. Such rules are for the good of bank and economy.
SBI, HDFC, Yes Bank, PNB Banking Concept of an ATM
Initially, ATMs were started as machines were stand alone and cash is used only as dispensers. There was neither interconnectivity between ATM nor connectivity of ATM networks with banks’ core banking software.
As a result, even simple balance inquiries can not be performed through ATMs. However, recently, a wide variety of ATM banking functions have been developed with the ability to demonstrate.
How ATM works?
To avail the services of an ATM, a customer needs an ATM card, debit card or credit card as well as a personal identification number [PIN]. Only the customer knows the PIN and it is safe.What is MPIN?
A magnetic stripe card is fixed on the back of the card that keeps customers informed about the PIN and account number. When the customer switches the card, the account number is valid through the ATM and if the ATM shows that the number is valid, then enter the PIN to motivate the customer. Customers opt-in on the ATM menu and can proceed with the transaction provided by ATMs. ATM customers provide core services and value-added services for the host.
SBI, HDFC, Yes Bank, PNB Banking Core Services
The core services provided by ATM include:-
Cash or check deposit
Cheque book Requests
The value-added services offered by some of the ATMs include:-
Mobile services recharging
Mobile services topping
Buying an internet pack
Utility service providers are paying bills
Buying Mutual Funds
SBI, HDFC, Yes Bank, PNB Banking, Types of ATMs
Onsite ATM: Either the branch is located on the premises or in close proximity to the branch.
Offsite ATM: It is not located on the premises of the bank, but it is located at other places such as shopping centers, airports, railway and petrol stations.
Worksite ATM: It is located on the premises of an organization and usually only used by the employees of the organization.
Cash Machine: Only allows cash withdrawal, balance inquiry, and request of the mini statement. Unlike an ATM, Cash Machine cannot be used to deposit cash or checks.
Mobile ATM: Refers to an ATM that runs in different areas for customers. Some private banks have introduced ATMs on wheels.
Benefits of ATMs
24 7 x and 365 days service provided.
Fast and efficient service offering.
Allow secrecy in transactions.
The cardholder can use withdraw cash at any location, regardless of where they maintain their accounts.
Offering flexibility of cash withdrawal for customers.
Enables accounts fund transfers in different branches or different banks accounts.
Banking facility is available anywhere.
Cheaper if the number of transactions is large, thereby reducing the burden on the branches
Optional to open new branches
Reduces operating costs of banks
Helps the employees of banks to avoid transportation of cash and cash handling
Branch banking concepts
The branch is considered as one of the most important channels of the bank and is generally the most preferred channel from the customer’s point of view.
In reality, the branch is responsible for the sale of the bank’s service and branch employees are responsible for the sale and service both.
The most common examples of deposited products of a bank are savings bank accounts, current accounts, fixed deposit accounts, and recurring deposit accounts. If Customers want to open any of these accounts, they fill out an account opening form [AOF] and complete the form and submit the specified documents in know your customer [KYC] form.
Services provided in the branches
Bank branches are offering many services to customers. The following list covers the services offered by most of the main branches only:
Open an account.
Stop payment of checks.
Term Deposits and Clearing of premature withdrawals.
DD and banker check issued.
Safe deposit locker.
Foreign exchange services.
Acceptance or clearing of check.
Deliverable in the form of Cheque book, Debit card, PIN, and Password,.
Acceptance of questions and complaints.
Retail loan products.
Despite the emergence of external dis.tribution channels for many other banks, branch banking remains its utility. This may be due to the benefit of the location of the branches enjoyed by the customer.
Many banks have their own websites that provide banking facility on the Internet. Security and regulatory approvals for internet banking are similar in brick and mortar banking branches. Internet Banking is one of the most powerful ways to manage client accounts. Customers can do this type of work in the form of their accounts, savings accounts, credit cards, or a loan account through the Sbi net Banking.
There are some prerequisites for internet banking:-
Bank Account in a branch where Internet Banking facility is active.
Login to Internet Banking Account with User ID and Password.
Transaction passwords for funds transfer for ATM or Debit Card.
Internet connection to access the bank’s website.
Mode of Operation Internet Banking
⇔ID and password are given to each customer for the purpose of accessing a unique user and Internet banking.With the help of User ID and Password, customers can log on to their accounts and carry out transactions outside of Internet Banking Bank transfers data on a real-time basis for core system.Online Sbi net banking.
It helps the customers operate their bank account with virtually no intervention in the core system of the bank.
Services available through Internet Banking
Internet banking services offered by competent customers:
View balance in account and download statements.
Funds transfer between accounts (as well as banks in the same specified locations within the other banks).
Make fixed deposits online.
Request for Demand Draft [DD].
Utility bill or payment of life insurance premium.
Order of a cheque book.
Request to stop payment on a check.
Request for a debit card.
Management of Demat Accounts.
A prepaid mobile card refill.
Track dividends, interest based on your investment but receive bonus shares in their account.
Renewal and Request for Fixed Deposits and Recurring Deposits of closed.
The nature of extended facility through internet banking will depend on the nature of the account. In order to avail of this facility, the customer needs to be a registered user of the bank’s internet facility. Some banks may also levy fees for certain types of transactions through internet banking. For information about such allegations, different banks are being tracked separately.
Benefits of Internet Banking
Provides information on real-time and customer accounts.
Can be accessed at any time, from anywhere, giving full control over customer’s finances.
Does not include customers to queue.
Is quick and saves time.
Is a safe service.
SBI, HDFC, Yes Bank, PNB Banking Safety Tips for Internet Banking
The customer should not share his user ID or password with anyone else.
They avoid using their own names, husband’s name or password based on the choice as they seem easy to do.
Alphanumeric alliance with special characters.
Regularly to change the password.
Report any suspicious misappropriation to the bank from their accounts immediately.
Generate Generation and User ID and Password Separation.
Asking customers for their user ID and password to prohibit the employees of the bank.
To verify randomly or authenticate the customer’s ATM or debit card number.
Maintaining high standards of security standards for websites.
Phone Banking and Mobile Banking
SBI, HDFC, Yes Bank, PNB Banking Phone Banking
Phone banking, also known as telebanking, has brought about a revolution in the banking industry. This is another electronic banking channel that enables customers to bank 24 hours. Phone Banking facility helps clients in reaching bank services from home, office or business place.
With the activation of computer-based IVR [Interactive Voice Response] capabilities, the gamut of services that can be extended to phone banking has increased significantly. Banks computer is connected to a telephone and telephone is connected to a modem. Callers or customers are identified by a codeword/keyword and accordingly sent a suitable response to your query.
Customers can also be provided with a voice mail facility with simple and limited services. Without the need to visit bank branches, customers can use bank services and can receive an answer to all requests and services through phone banking facility.SBI SBI Online account Opening.
There are lines of calling for phone call services to all that the customer needs for phone banking services. When the number of customers dials the number, a record sound/signal through various transactions. Customers can also call the Phone Banking Officer [PBO] who is able to provide the necessary support for customers.
Services provided through Phone Banking
Customers can obtain the required information by keying in their / their account number after the six-digit date of their birth. Wherever IVR is used, customers need to press the appropriate number button for the requirement of the type of services [IVR number should be pressed for that particular service] indicated. Customers can then follow the instructions.Saving Plan for women.
However, some banks gather to collect customer charges do not maintain the average quarterly balance that is set for the account or for a service that is not listed as free of charge through Phone Banking Service. For example, in order to stop the recording payments, the phone banking phone received the banking channels through the charge of some banks.The Insurance sector in India.
Different phone banking services are provided through:-
Check account balance.
Check status inquiry.
Request for a cheque book.
Request for account details.
A check stops payment record.
Report of Loss of ATM / Debit / Credit Card.
Questions about credit and credit card.
Information on bank products.
Pick up cash for the request.
Questions related to fixed deposits.
Inquiries related to interest rates and for foreign currency rates.
SBI, HDFC, Yes Bank, PNB Banking Mobile Banking
Mobile banking is expanding rapidly. In today’s busy work environment, it is very difficult for some customers to take time and visit the branch for at least information, such as inquiry inquiries. For example, through mobile banking customers can get information on the information about the last three transactions in the balance inquiry account.
Mobile banking works via a set of text messages or SMS. Without making a phone, customers can get the necessary information from the banks through mobile phones. Banks also send messages to mobile phones in order to keep customers informed about their transactions in the account.
Banks offer customers mobile banking facility to customers, credit card customers, demat customers, as well as loan customers, who have opted for this facility.
Through the convenience of mobile banking, banks pay their credit to any credit, debit or credit transaction which is above a cut-off limit, when the inquiry has returned the SMS alerts to the customers about their deposits, and the payment of loan installments. Due date reminders
Mobile Banking has become an added value service that is made available to its customers by many banks. Mobile Alert features, through which the customer is instantly informed and when one transaction takes place (both debit and credit) takes place in many types of accounts are common.
Banks as Financial Intermediaries
SBI, HDFC, Yes Bank, PNB Banking financial intermediary
Enabling some financial institutions or some form of mediation Some of them collect some deposits while others lend, while some other people, such as life insurance, corporation [LIC], meet the needs of insurance.
Mutual Fund organizations are focused on pooling resources from individuals, investing them in the market, and passing on profits to investors. Banks only enjoy the benefits of being through entities which can be transferred from one person to another and from one place to another.How to Get Home Loan Easily.
Therefore, banks become components of the economy’s payment system. All other financial intermediaries on one point or the other depending on the banks and can not work more efficiently in their absence. Banks, because of their reach, people, and other roles that they believe in the game are able to emerge as the world’s largest financial arbitrator. As a result, depending on the financial prosperity of different sectors and industries of the economy as a whole.
Banks lend a large part of their deposit amount, and play the role of a financial intermediary and understand that the banks are constituting a payment system due to the respect that they will respect the commitments made to the people. If this belief has been broken for any reason, banks will not be able to survive. The failure of a bank is also their role as a component of the lead payment system for the failure of other banks because they have enough behavior and reliance on each other.HDFC NET Banking.
Banks may lack the interest if taking place in isolation of an area or an industry. SBI, HDFC, Yes Bank, PNB Banking Not only those who are rejecting are suffering, but such an approach can affect the economy as a whole. Therefore, being the largest financial intermediary, banks have to play an important role in achieving the balanced development of industries, sectors, and large-scale economies.
Services offered by banks as financial intermediaries
Loan or credit services
1 Deposit services
Banks accept deposits and fixed or time deposits. Demand deposits are repayable on demand whereas fixed deposits are a fixed maturity period and are repayable only after the agreed period. Since demand deposits are more liquid compared to fixed deposits, interest on such a deposit is paid at a low rate or there is no interest at all. Liquidity is low, high-interest rate. Therefore, now the term of the term deposit will be, that the higher interest is paid.
While in the form of demand deposits, they are cheaper in the case of interest payments, the cost of maintaining demand deposit accounts is higher in terms of the large number of fixed deposits in the deposits, compared to fixed deposit accounts.
The products offered by various banks within the deposit services are:-
Savings bank accounts
Term deposit accounts
Recurring deposit accounts
SBI, HDFC, Yes Bank, PNB Banking Loan or credit services
The products offered by banks within the loan services are as follows:-