indian banking system and its emerging trends
TRANSCRIPT
![Page 1: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/1.jpg)
INDIAN BANKING SYSTEM AND ITS EMERGING TRENDS
SUBMITTED BY-
Saurav Prashar
ROLL NO- 140423301
SUBMITTED TO-
Dr. Dheeraj Joshi
![Page 2: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/2.jpg)
![Page 3: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/3.jpg)
ESTABLISHMENT OF BANKS IN
INDIA
• .
![Page 4: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/4.jpg)
June 2, 1806: The Bank of Calcutta
![Page 5: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/5.jpg)
April 15, 1840: Bank of Bombay
![Page 6: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/6.jpg)
July 1, 1843: Bank of Madras
1861: Paper Currency Act passed.
![Page 7: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/7.jpg)
January 27, 1921
![Page 8: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/8.jpg)
1955
• TAKEN OVER BY SBI
![Page 9: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/9.jpg)
FUNCTIONS OF BANKING
![Page 10: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/10.jpg)
FUNCTIONS OF BANKSAccepting deposits
Giving loans
Overdraft
Discounting of Bills of Exchange
Investment of Funds
Agency Functions
Miscellaneous
Functions
![Page 11: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/11.jpg)
INVENTIONS AND FACILITIES FOR EASING OF BANKING IN
THIS MODERN ERA
![Page 12: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/12.jpg)
AUTOMATIC TELLER MACHINE
(ATM)
![Page 13: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/13.jpg)
CRADIT CARDS
![Page 14: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/14.jpg)
DEBIT CARDS
![Page 15: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/15.jpg)
CHEQUE CARDS
![Page 16: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/16.jpg)
CHARGE CARDS
![Page 17: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/17.jpg)
SMART CARDS
![Page 18: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/18.jpg)
LATEST TRENDS IN BANKING
![Page 19: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/19.jpg)
UNIVERSAL BANKING
![Page 20: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/20.jpg)
ELECTRONIC BANKING
![Page 21: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/21.jpg)
![Page 22: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/22.jpg)
GLOBALISATION OF BANKING• Globalization has emerged as a prime mover in the
Indian banking system.
• This has come about as a result of the policy of liberalization and opening up of banking and other sectors pursued after 1991 in India.
• Foreign banks that wish to set up their offices/branches in India have been granted licenses by RBI on liberal and on reciprocal basis.
• Similarly, Indian banks are also opening their offices/branches abroad, particularly in countries whose banks have opened offices in India
![Page 23: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/23.jpg)
SATELLITE BANKING• Satellite banking is an upcoming technological
innovation in the Indian banking industry.
• It is expected to help in solving the problem of weak terrestrial communication links in many parts of the country.
• The use of satellites for establishing connectivity between branches will help banks to reach rural and hilly areas in a better way, and offer better facilities, particularly in relation to electronic funds transfers.
![Page 24: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/24.jpg)
![Page 25: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/25.jpg)
TECHNOLOGICAL DEVELOPMENT
• With the advancement of technology and the
birth of competition, banks are in the race of
becoming the best in the country.
• The advancement in the technology has helped
the banks to reduce the workload.
• There are so many activities, which are taken
over by machines. Employees are no more
loaded with paper work.
![Page 26: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/26.jpg)
![Page 27: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/27.jpg)
PHONE BANKING
• Pick up the phone to access a host of Bank
services, day or night.
• Phone and mobile banking are a fairly recent
phenomenon for the Indian banking industry.
• Phone banking channels function through an
Interactive Voice Response System (IVRS) or
tele-banking executives of the banks.
![Page 28: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/28.jpg)
![Page 29: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/29.jpg)
![Page 30: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/30.jpg)
![Page 31: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/31.jpg)
![Page 32: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/32.jpg)
![Page 33: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/33.jpg)
Online banking
• Online banking (or Internet banking) is a term
used for performing transactions, payments etc.
over the Internet through a bank, credit union or
building society's secure website.
• This allows customers to do their banking
outside of bank hours and from anywhere
where Internet access is available.
![Page 34: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/34.jpg)
Features of online banking
• Online banking usually offers such features as:
• Bank statements.
• Electronic bill payment
• Funds transfer.
• Loan applications and transactions, such as
repayments
• Account aggregation
![Page 35: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/35.jpg)
![Page 36: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/36.jpg)
REAL TIME GROSS SETTLEMENT
• RTGS is a large value funds transfer system .
• Transfer of money takes place from one bank to
another on a “real time” and on “gross basis”.
• Money can be transferred only to those
branches in which RTGS is enable
Benefits of RTGS
• full value of individual
• Real time immediate value transfer
![Page 37: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/37.jpg)
Features
• 1. No bundling up of transactions,
• 2. No netting
• 3. No deferral of final settlement
![Page 38: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/38.jpg)
Funds
Availabl
e
No
Queue
Yes
Queue
DelaySubmit
Now
L
I
Q
U
I
D
I
T
Y
Participant Payment Participant Payment Participant Payment
![Page 39: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/39.jpg)
BANCASSURANCE
![Page 40: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/40.jpg)
Bancassurance
• Bancassurance is the term used to describe the
sale of insurance products in a bank.
• The word is a combination of "banque or bank"
and "assurance" signifying that both banking and
insurance is provided by the same corporate entity.
• Banks gives you peace of mind with
Bancassurance.
• One receive coverage and save money at the
same time. You can choose the right option which
benefits you the most.
![Page 41: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/41.jpg)
![Page 42: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/42.jpg)
![Page 43: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/43.jpg)
Core banking solutions(CBS)
• Core banking (stand for "centralized online
real-time exchange") is a banking services
provided by a group of networked bank
branches
• Here customers may access their bank
account and perform basic transactions from
any of the member branch offices.
• Larger businesses are managed via
the Corporate banking division of the institution.
![Page 44: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/44.jpg)
![Page 45: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/45.jpg)
Electronic fund transfer (EFT)
• Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands.
• It is used for both credit transfers, such as payroll payments, and for debit transfers, such as mortgage payments.
• The growing popularity of EFT for online bill payment is paving the way for a paperless universe where checks, stamps, envelopes, and paper bills are obsolete.
![Page 46: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/46.jpg)
Benefits of EFT
• reduced administrative costs
• increased efficiency
• simplified bookkeeping
• greater security
![Page 47: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/47.jpg)
![Page 48: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/48.jpg)
Electronic clearing system
• 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.
• It can also be used to pay bills and other charges such as telephone, electricity, water.
• For making equated monthly installments payments on loans as well as SIP investments. ECS can be used for both credit and debit purposes.
![Page 49: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/49.jpg)
![Page 50: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/50.jpg)
Electronic data interchange (EDI)
It facilitates computer to-computer exchange
of electronic documents (such as purchase
orders, advance shipment notices and without
human intervention or human readable (paper
or electronic documents)..
![Page 51: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/51.jpg)
![Page 52: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/52.jpg)
![Page 53: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/53.jpg)
International banking
• Indian banks have extended their activities beyond
the national boundaries.
• The extension may take place in the form of
borrowings as well as lending and it may take place
through official or private or commercial channel.
• In the process of internationalization, the domestic
financial institutions participate in foreign financial
markets and the foreign institutions participate in
domestic market to a significant extent.
![Page 54: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/54.jpg)
International lending
• Syndicated loans
• Large loans that enable borrowers to obtain large amounts of funds and lenders can diversify their credit risk. Lead bank can earn fee income for management services.
• Letters of credit
• Import letters of credit are issued by a bank in favor of a firm in most cases. An export letter of credit is issued by a foreign bank to a firm in the U.S.
![Page 55: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/55.jpg)
Letters of credit
• The letter of credit is a document from a bank
that says it will pay the exporter when the
conditions in the letter are met.
• In effect, the bank’s credit is substituted for the
importer.
• The issuing bank pays the seller through the
advising (paying) bank.
• The importer pays the issuing bank a fee for its
services.
![Page 56: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/56.jpg)
![Page 57: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/57.jpg)
Foreign exchange markets
• Interbank market of money center banks and
major foreign banks.
• Foreign exchange brokers facilitate currency
trading.
• Credit risk associated with the counterparty
(bank or broker) failing to meet its obligations.
![Page 58: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/58.jpg)
CRMs and any branch banking• Customer relationship management (CRM) is a
system for managing a company’s interactions with current and future customers.
• It often involves using technology to organize, automate and synchronize sales, marketing, customer service and technical.
• Any branch banking
• All the branches are inter-connected and are capable of providing online, real-time transactions to its customers.
• Customers can Deposit/Withdraw freely without any tariff charge i.e. free ABBS facility.
![Page 59: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/59.jpg)
Risk management
• The financial sector in various economies like that of India are undergoing a monumental change factoring into account world events such as the ongoing Banking Crisis across the globe.
• Risk management in Indian banks is a relatively newer practice, but has already shown to increase efficiency in governing of these banks as such procedures tend to increase the corporate governance of a financial institution
![Page 60: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/60.jpg)
POINT OF SALE TERMINAL
• A type of electronic-transaction terminal.
• Point-of-sale terminals typically include a computer, a cash register and other equipment or software used to sell goods or services.
• They also transmit sales data to be posted to customer accounts.
• It is an electronic payment system involving electronic fund transfers based on the use of payment cards, such as debit or credit, at payment terminals located at point of sale.
![Page 61: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/61.jpg)
![Page 62: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/62.jpg)
![Page 63: Indian banking system and its emerging trends](https://reader035.vdocuments.us/reader035/viewer/2022081323/55a55a561a28abb5618b45a8/html5/thumbnails/63.jpg)
Thank you
• A presentation by-
Saurav prashar