types of bank ac
TRANSCRIPT
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A Project report
On
TYPE OF BANK ACCOUNTS
IN
THE NAWANSHAHR CENTRAL
CO-OPERATIVE BANK LTD.(NAWANSHAHR)
SUBMITED FOR PARTIAL FULFILLMENT OF THE
MASTER DEGREE OF COMMERCE FOR
G.N.D.U AMRITSAR
(SESSION 2011-2012)
SUBMITTED TO: SUBMITTED BY:
PROF. S.B.JOHAR MANJEET KAUR
(HEAD OF COMMERCE DEPERTMENT) ROLL NO.1566
M.COM ( 2nd YEAR)
R.K. ARYA COLLEGE
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NAWANSHAHR
PREFACE
As a part to M.com, every student has to write the project
report.Every student of this course has to undergo training in
an industrial or commercial origination.By training,we know
about the functioning of actual business and working condition
under which we have to work in future.
I underwent my training at Central Co-operative Bank
Ltd.Nawanshahr for a period of 6 weeks.Central Co-operative
Bank is an institution on co-operative basis and doing ordinary
banking business.I too have learnt from this experience and so
am writing about the Bank and finance department as I have
understood it.
The study has been written in a very simple language.Every
effort has been made to avoid any type of bias or
misunderstanding while writing the report.
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ACKNOWLEDGEMENT
This project report would have not possible without the kind
assistance and guidance of many persons who indeed were
very helpful,co-operative,kind during the during the entire
course of my assignment. I would like to take this opportunity to
express my heart-felt appreciation for all those concerned.
I am grateful to Mr.S.B Johar (Head of Department) and the
official of GNDU Amritsar for giving me an opportunity to
Work on this project report.I would like to express my sincere
thanks to my worthy guide Mr.S.B.Johar (Lecturer in
Commerce Department,R.K. Arya College,Nawanshahr) for thekeen interest and guidance.
On the same term I want to express my indebtedness and
sincere gratitude to Mr.Nirmaljit Singh and K.K Gogana who
provided the desired information and other technical facilities
during the tenure of the project work.
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THE NAWANSHAHRCENTRAL COOPERATIVE BANK
LTD.
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Content of report
Particular Page No.
Introduction 1-4
Definition 5
Objectives of Bank 5
Principal of Co-Operative Bank 6
Available Accounts in Banks 7
Loans Available in Bank 7
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INDEX
Particular Page no.
Introduction to Bank 13-15
Facilities of Bank 17-18
Types of Bank Accounts 20-22
1. Fixed Deposits Accounts 24
Feature of Fixed Deposits A/c 25
Advantages of Fixed Deposits A/c 26-27
Drawback of Fixed Deposits A/c 28
Precaution 29
2. Recurring Deposit Account 31
Feature of Recurring Deposit A/c 32
Advantages Recurring Deposit A/c 33-34
3. Saving Account 36
Document Require for opening a Saving A/c 38
Features of Saving A/c 39
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Types of Saving A/c 40-43
Advantages Saving A/c 44-45
Disadvantages of Saving A/c 46
4. Current Bank Account 48-49
Features of Current Bank A/c 50
Advantages of Current Bank A/c 51-52
Advantages opening an A/c 53-55
Operation of bank account 61-65
Closing a bank account 67-69
Suggestion 71-74
Bibliography 76
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INTRODUCTION
In January 1934 devoted cooperates of the Nawanshahr
Subdivision took a very wise and farsighted step by organizing
this bank having a separate entity in Jalandhar district by
amalgamation of two Cooperative Unions namely Dhaha and
Jandiali with working capital of Rs.2.25 Lac.This bank is
situated in a small rented room in local Gurudwara Sahib in
Nawanshahr.On formation of Nawanshahras district,
Balachaur Sub-division was amalgamated in this bank w.e.f
01.10.1996.This bank is serving small, marginal,other framers
and weaker sections of the society in rural as well as urban
areas in Nawanshahr District with 47 branches.All the branches
are successful.Per branch business exceed Rs.15 core and all
B.Os are earning profit.Consequent of good results, RBI has
granted Banking license to us in the year 1990. Our bank has
won four out of six NABARD BEST PERFOMANCE AWARDS
for the year 1995-96,1996-97,1998-99 and 1999-2000 being
declared as best amongst the Central Co-operative banks of
Punjab state and Second Prize for the 2000-2001
(1)
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Owned Funds
This bank tops all Central Co-operative Banks in respect of
own funds in the Punjab State.Our bank is on very sound
footings,which is evident from the fact owned funds have
touched a new height of Rs.118.21 core due to recurring profits
in the successive years. Owned funds are cost free to the bank
and are an sample proof of our good financial health.
(2)
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Profits for the year
Year Profit (in lacs)
193419401950196019782000
2001200220032004200520062007
20082009
0.040.040.090.3934.08815.90
960.89984.071153.511322.821046.46796.75741.75
658.581203.74
Levying of Income Tax for the financial year 2006-07 has
lowered our profit.Our financial margin is 3.68 and net margin
being 1.64 per hundred
(3)
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Meaning of co-operative Bank
Co-operative Bank is an institution on co-operative basis and
doing ordinary banking business.These banks are funded by
collecting funds through shares, deposits etc.They are
concerned with rural credit and provide financial assistance to
agricultural and rural activities.In India,huge co-operative
institutions are operating.
In our country,co-operative institutions are started to look
after the needs of the agriculturists.In 1902,provision was made
to start primary co-operative societies at Village level to grant
short term loans.In 1912,Land Development banks are
initiated. They granted long term loans to enable the farmer to
buy farm equipments like tractors, o make permanent
improvement and to repay past debts.In 1912,provision was
made to establish District Co-operative Banks at the State
level.
(4)
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Definition of Co-operative Ban k
A cooperative bank is an autonomous association of
persons united voluntarily to meet their common economic ,
social and culture needs and aspiration through a jointly owed
and democratically controlled enterprise.
Objectives of the Banks
1.Commitment to quick services.
2.Achievement of customer satisfaction.
3.Qualitative Services.
4.Cordial relationship with public.
5.Service with smile.
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(5)
Principles of Co-operative Bank
1.Voluntary and open membership: Co-operative banks
are voluntary organizations,open to all persons.
2.Democratic member control: Co-operative banks are
democratic organizations,controlled by their members,whoactively participate in setting their polices and making
decisions.
3.Member Economic participation: Members contribute
equality to and democratically control the capital of their co-
operative banks.A small part of the capital is usually the
common property of the co-operative banks.
4.Autonomy and independence: Co-operative banks are
autonomous,self help organizations controlled by their
members.
5.Education,Training and Information: Co-operative
banks provide education and training for their members,
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elected representatives,managers and employees so that they
(6)
can contribute effectively to the development of their co-
operative banks.
Available Accounts in Bank
1.SAVING DEPOSIT ACCOUNT
2.FIXED DEPOSIT 1ACCOUNT
3.CURRENT DEPOSIT ACCOUNT
4.RECCURING DEPOSIT ACCOUNT
Loan available in Co-operaive bank
1.SALARY LOAN
2.NON SALARY LOAN
3.PERSONAL LOAN
4.TWO WHEELER LOAN
5.NON FARM SECTOR
6.HOUSE LOAN
7.URBAN HOUSE LOAN
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8.HOUSE LOAN RURAL
9.LOAN AGAINST PROPERTY
10. CCT LOAN (7)
In The Distt, The Co-operative Bank Has 45Branches
They areBRANCH PHONE NO.
1. ALLACHAUR 01823-223647
2. AUR 01823-245023
3. BACHHAURI 01885- 273205
4. BALACHAUR 01885-220149
5. BANGA 01885-260075
6. BAJID PUR 01823-257163
7. BEHLOOR KALAN 01823-238136
8. BEHRAM 01823-270227
9. DOPALPUR 01823-244617
10. EV.BR.NSR 01823-263177
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11. GARCHA 01823-234263
12. GHATARON 01823-255753
(8)13. GHUMAN 01823-272015
14. GOBINDPUR 01823-281853
15. HAKIMPUR 01823-276062
16. JADLA 01823-253024
17. KAHMA 01823-278029
18. KARNANA 01823-279014
19. KATARIAN 01823-230060
20. KATHGARH 01885-250622
21. KHANKHANNA 01823-275603
22. KULTHAM 01823-283808
23. LADHANA JHIKKA 01823-263557
24. LANGROYA 01823-250038
25. MAHIL GAHALAN 01823-273038
26. MAIN BR, NSR 01823-509493
27. MAJARI 01885-238290
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28. MEHLI 01823-283030
29. MUKANDPUR 01823-276023
(9)30.PALLI JHIKKI 01823-273349
31. PATHLAWA 01823-281366
32. PHAMBRA 01823-245068
33. POJEWAL 01885-244608
34. R.P.DABBA 01823-279017
35. RAHON 01823-240031
36. RAKRAN DHAHAN 01885-238338
37. SAHIBA 01823-232434
38. SANDHAWAN 01823-270240
39. SARHAL QAZIAN 01823-247227
40. SAROYA 01823-230029
41. SUGAR MILL 01823-222634
42. SUJJON 01823-273485
43. TONSA 01881-273727
44. URAPAR 01823-248032
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45. USMANPUR 01823-244011
(10)
THE NAWANSHAHR CENTRAL CO-OPERATIVE
BANK LTD.(S.B.S Nagar) PUNJAB
List of Board of Director
1. SUCHA SINGH ARK MANAGING DIRECTOR
2. CH. GURMAIL SINGH NAGRA CHAIRMAN
3. S. GURMINDER SINGH VICE CHAIRMAN
4. S. DILDAAR SINGH DIRECTOR
5. S. RAGHVIR SINGH DIRECTOR
6. S. JASKAMAL SINGH [TALWANDI FATTU] DIRECTOR
7. S. MOHAN SINGH BAJWA DIRECTOR
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8. S. BALVIR SINGH DHILLON DIRECTOR
9. S. SATVIR SINGH PALLI JHIKKI DIRECTOR
(11)
INTRODUCTION TOTYPES OF BANK
ACCOUNTS
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INTRODUCTION:
A bank is a financial institution that serves as a financial
intermediary. The term "bank" may refer to one of several
related types of entities:
A central bank circulates money on behalf of a
government and acts as its monetary authority by
implementing monetary policy,which regulates
the money supply.
A commercial bank accepts deposits and pools those
funds to provide either directly by lendin g,or indirectly
by investing through the capital markets. ithin theglobal financial markets, these institutions connect
market participants with capital deficits (borrowers) to
market participants with capital surpluses (investors
and lenders) by transferring funds from those parties
who have surplus funds to invest (financial assets) to
those parties who borrow funds to invest in real
assets.
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Financial_market -
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(13
)
A savings bank (known as a "building society" in
the United Kingdom) is similar to a savings and loan
association (S&L).They can either be stockholder
owned or mutually owned, in which case they are
permitted to only borrow from members of the finance
Italic textile cooperative.The asset structure of savings
banks and savings and loan associations is
similar,with residential mortgage loans providing the
principal assets of the institution's portfolio.
Open bank account - the most common and first
service of the banking sector.There are different types
of bank account in Indian banking sector.The bank
accounts are as follows:
Bank Savings Account - Bank Savings Account can be
opened for eligible person / persons and certain
organisations / agencies (as advised by Reserve Bank
of India (RBI) from time to time)
http://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Cooperative -
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(14)
Bank Current Account - Bank Current Account can be
opened by individuals / partnership firms / Private and
Public Limited Companies /HUFs / Specified Associates
/ Societies / Trusts, etc.
Bank Term Deposits Account - Bank Term Deposits
Account can be opened by individuals/partnership firms
/Private and Public Limited Companies/HUFs/ Specified
Associates / Societies / Trusts, etc.
Bank Account Online - With the advancement of
technology, the major banks in the public and private
sector has facilitated their customer to open bank
account online.Bank account online is registered
through a PC with an internet connection. \The advent
of bank account online has saved both the cost ofoperation for banks as well as the time taken in opening
an account.
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(15
)
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Facilitates ofBank Account
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Facilitates of Banks Account
1.Bank account facilitates a safe custody of money
the bank is the custodian of cash.As and when the
account holders needs the money can withdraw the
same depending upon the type of account.
2.Bank account helps in making payments
The bank account holder can make payment to third parties
through the savings and current account.The payment may
be regarding electricity bills,insurance premium,etc.The bank
also makes direct payment on the standing instructions of
the customer.
3.Bank account helps in collection of money
The bank can directly collect money of the customer in
respect of dividend,salary pension or from debtors.The
collected money is then deposited in customer's bankaccount.
(17)
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4.Bank account holders get advances and loans
The current account holder can obtain an overdraft facility
from his bank. The recurring and fixed deposit account
holders can get a loan upto 75% of the amount to their
credit.The savings account holders can also obtain loans to
purchase computers and such other equipments.
5.Bank account helps in smooth transactions
The bank account makes it possible for the businessmen to
conduct their business operations smoothly not only in the
domestic trade but also in the foreign markets.
6.Bank account holders get a safe deposit locker
The bank provides safe deposit locker facility to its accountholders to keep their valuables like gold jewellery,sharecertificates,property documents,etc.
(18)
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Types of BankAccounts
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TYPES OF BANK ACCOUNTS
A.Term Deposit Account.
1.Fixed Deposit Account
2.Recurring Deposit Account
B.Demand Deposit Account
1.Saving Deposit Account
2.Current Deposit Account
A.Term Deposit Account: Deposit accepted by bank which
is repayable only after a fixed period of time.In other
words we can say the deposit which is not repayable on
demand.
Following can be term deposit:
1.Fixed account
2.Reccuring account
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(20)
B.Demand Deposit Account: It refers to deposit received
by banker, repayable on demand i.e.customer can
withdraw when they want.
Following can be demand deposit:
1.Saving bank account
2.Current account
Traditional Types of Bank Account
Saving Accounts Current Accounts Fixed Deposit AccountsRecurring Deposit Accounts
Modern Types of Bank Account
Now a days banks have introduced new and innovative
deposits plans as follows:
Saving Account with Zero balance
Saving Salary Account
Student Deposit Scheme
Janta Deposit Scheme
Home Safe Deposit Account etc.
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(21)
All the above different kinds of bank account differs from
each other mainly on the following grounds:\
1. Minimum balance to be maintained.
2. Restriction on No. of withdrawals.
3. Length of notice required to be given for
withdrawal.
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(22)
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Fixed DepositAccount
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Fixed Deposit Account
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 can not 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.
(24)
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Features of Fixed Deposit Account
The main features of fixed deposit are:
1.The individuals to earn a higher rate of interest on their
surplus funds (extra money).
2.The amount can be deposited only once. For further such
deposits, separate accounts need to be opened.
3.The period of fixed deposits range between 15 days to 10years.
5.A high interest rate is paid on fixed deposits.The rate of
interest may vary as per amount, period and from bank to
bank.
6.Withdrawals are not allowed.However,in case of
emergency, banks allow to close the fixed account prior to
maturity date. In such cases, the bank deducts 1%
(deduction percentage may vary) from the interest
payable as on that date.
7.The depositor is given a fixed deposit receipt,which
depositor has to produce at the time of maturity.Thedeposit can be renewed for a further period.
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(25)
Advantages of Fixed Deposit Account
The advantages of fixed deposit account are as follows:-
1.Fixed deposit encourages savings habit for a longer period
of time.
2.Fixed deposit account enables the depositor to earn a high
interest rate.
3.The depositor can get loan facility from the bank.
4.On maturity the amount can be used to make purchases of
assets.
5.The bank can get the funds for a longer period of time.
6.The bank can lend such funds for short term loans to
businessmen.
7.Fixed deposits indirectly boost economic development of
the country.8.The bank can also invest such funds in profitable areas.
9.Various banks offer higher rates of interest to senior
citizens on their fixed deposits than to regular account
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)27(
Drawbacks of Fixed Deposit Account s
The drawbacks of fixed deposit accounts are:
1.Money invested in a fixed deposit grows slower than in
investments such as stocks.
2.The rate of interest offered by banks on fixed deposits is
subject to change according to inflation.If inflation rises,
the interest earnings from a fixed deposit will be
significantly impacted.
3.The account holder is not allowed to withdraw the funds
before the date of maturity.
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(28)
Precautions While Investing in Fixed
Deposit Accounts
Here are some precautions an investor must bear in mind
while investing in fixed deposit accounts:
1.If one has invested in a companys fixed deposit account,
chances are s/he will lose her or his money if the
company goes bankrupt.It is important to read the fine
print. The best option is to open a fixed deposit account in
an established and reputed bank and to ensure this
situation is covered by insurance.
2.The amount one earns on a fixed deposit depends on
whether the bank compounds interest on a quarterly or
monthly basis.A monthly scheme will yield more returnsthan a quarterly scheme.
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Recurring DepositAccount
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Recurring Deposit Account
Recurring deposit account is generally opened for a purpose
to be served at a future date.Generally opened to finance
pre-planned future purposes like,wedding expenses of
daughter, purchase of costly items like land,luxury car,
refrigerator or air conditioner,etc.
Recurring deposit account is opened by those who want to
save regularly for a certain period of time and earn a higher
interest rate.
In recurring deposit account certain fixed amount is accepted
every month for a specified period and the total amount is
repaid with interest at the end of the particular fixed period.
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(32)
Advantage of Recurring Deposit
Account
Advantage of recurring Deposit is:
1. Fixed rate of interest
The rate of interest offered on a recurring deposit is not
floating it remains the same for the entire tenure of the
recurring deposit.
The rate of interest offered varies from bank to bank,and
also depends on the tenure of the recurring deposit.But
the interest rates offered typically range from around 4%
to 10%.
For example,State Bank of India (SBI) offers interest
rates between 4.75% and 10%. Similarly,ICICI Bank
offers interest rates between 3.75% and 9.5%.
2.Loan / Overdraft facility
Many banks provide the facility of a loan or overdraft
against the amount accumulated in your recurring
deposit account.
http://www.raagvamdatt.com/index.php?module=pnEncyclopedia&func=display_term&id=6&vid=1http://www.raagvamdatt.com/index.php?module=pnEncyclopedia&func=display_term&id=6&vid=1http://www.raagvamdatt.com/index.php?module=pnEncyclopedia&func=display_term&id=6&vid=1http://www.raagvamdatt.com/index.php?module=pnEncyclopedia&func=display_term&id=6&vid=1 -
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9.The bank may also invest such funds in profitable areas.
(33)
What are the prevailing rates f or
recurring deposits
Various banks give different interest rates for different
schemes.There are Kids Specific Recurring Deposit
Schemes too,offered by many banks. All these schemes
offer Interest amount ranging from 7.5% Per Annum to 9.5%
Per Annum, which depends on the Sum Assured,The tenure
opted for, and also depending on various schemes.Many
banks have separate interest schemes made available
exclusive to the senior citizens.Generally an amount of 0.5%
Interest is paid more in almost all of the senior citizens
schemes,which includes Recurring Deposits.
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Meaning of Saving Account
Commercial Banks, Co-operative Banks and Postal
Departments accept deposits by way of opening saving bank
account.The saving bank account is generally opened by
salaried persons or by the persons who have fixed income.
Saving accounts are opened to encourage the people to
save and collect their savings.In India, saving account can
be opened by depositing Rs.100 (US $2.19) to Rs.500 (US
$11).The saving account holder is allowed to withdraw
money from the account two times or three times in a week.
The interest which is given on saving accounts is sometime
attractive, but often nominal.At present the rate of interest is
3.50% p.a in India.The interest rates varies as per amount of
money deposited and its maturity range.It is also subject to
current trend of banking policies in a country.
(36)
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Features of Saving Account
The main features ofsaving account are as follows:-1.The main objective of saving account is to promote
savings.
2.There is no restriction on the number and amount of
deposits.
3.Withdrawals are allowed subject to certain restrictions.
4.The money can be withdrawn either by cheque or
withdrawal slip.
5.The rate of interest payable is very nominal on saving
accounts.At present it is about 3.50% p.a in India.
6.Saving account is of continuing nature.There is no
maximum period.7.A minimum amount has to be kept on saving account.
8.No loan facility is provided against saving account.
(39)
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(40)
Instant Access or Easy Access
Accounts
1Notice Account
Notice accounts generally earn a better rate of interest but
require you to give a certain amount of notice before
withdrawing funds to avoid any penalty.The amount of notice
that needs to be given depends on which account you
choose.
These accounts are becoming less attractive as instant
access accounts have become more competitive and allow
you to withdraw your money immediately.
2.Bonds or term account
For many savers, the most important aspect of any
investment knows that their money is safe and secure.If this
applies to you,then bonds or term accounts could be what
you are looking for.Bonds or term accounts are high interest
savings accounts which offer the most competitive interest
rates but which require your money to be tied up for a
specific period of time.The interest rate on most accounts is
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fixed from opening the account until the maturity date. (41)
The money in the account is tied up for a specific length
of time, usually between 1 to 5 years and you are not usually
allowed to add further funds to your initial deposit once a
bond has been opened.
Most providers do not permit any type of withdrawal
before the maturity date and if withdrawals are allowed then
a penalty will normally be incurred.
3.Regular Savings Accounts
this type of account is aimed at people who can commit to
making regular savings and deposit money into the account
each month.A certain number of monthly payments have to
be made into these accounts each year to prevent loss of
interest or closure.
They often pay superior annual rates of interest by
giving savers an annual bonus payable as interest on top of
their interest rate. However, with some accounts,if you fail to
make the required deposits you will lose the annual bonus.Some accounts limit the amount you can put in each
month and most accounts limit the number of withdrawals
you can make each year,so they aren't much good if you
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Advantages of Saving Account
The advantages of saving account are as follows:-
1.Protection
Most banks and credit unions are insured,which means that
the money deposited into a savings account is safe and
secure.No matter what happens,you will get your money
back.
2.Saving
The entire point of a savings account is to save money.
You can purposefully open a savings account that does not
have an ATM card linked to it to make withdrawing thefunds less convenient.
3.Automatic Deposits and Payments
Automatic payments and deposits can be set up to manage
the account,and your employer can directly deposit money
into the account.This gives you less to worry aboutthroughout the month.
(44)
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Disadvantage of saving accounts
1.Minimum Balance
Many banks require you to maintain a minimum balance in
order to avoid fees on your savings account.For some banks
this is only Rs.500 but others requires as much as Rs.1000minimum.It may take some shopping around to find a
savings account to suit your needs.
2.Interest Rates
Savings accounts have the lowest interest returns of any
place you can keep your money,other than a checkingaccount.If you are looking to make money on interest, a
savings account is not for you.
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(52)
The large majority of current accounts will
include these basic features:
Cash or Debit Card This handy card can be used to
withdraw money or check the balance on your account
through a large cash machine network throughout the
UK.Since cash machines never close,the cash card
offers you the ability to withdraw funds any time of the
day or night.Debit cards can also be used to make
purchases from retailers.
Direct Debits Direct debits offer the ultimate
convenience for those regular payments with which you
have to grapple.Instead of dealing with late fees
because you forgot to pay your mobile phone bill
(again!), you can set up payments so the money I
automatically taken out of your account at the same
time each month.
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(62)
Check book/withdrawal slip
Every bank has its own printed cheque forms which are
supplied to customer at the time of opening account and
subsequently at the request as and when required by
customer.A cheque book contains serially numbered blank
forms. The cheque book generally contains from 10 to 100
blank forms.When a customer wants,to withdraw money or
make payments,he has to fill in the cheque and sign it.So
cheque is an unconditional order to specified banker to pay a
certain amount of money to directed person.A cheque book
also contains a requisition slip which is to be duly filled in
and prested by customer for obtaining another cheque bookfrom the bank.
In case of saving deposit account cheque book is
provided only to those who undertake to maintain minimum
balance in their accounts.If they do not want to maintain
minimum balance in the account, then they can withdrawmoney through withdrawal slips.
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(63)
Pass Book
This is a book issued by the bank to the customer in which
all transaction b/w them are recorded.In fact, it is a copy of
customers account in the books of a bank.The transactions
in the pass book are recorded in the bank. The purpose of
issuing a pass book to the customer is to acquaint him
periodically with state affairs of his account with the bank.
This book contains the details as to the amount withdrawn
with date of withdrawal,and the balance of account on a
particular date.Now-a-days some banks do not issue a pass
book to the depositors of current accounts but the bank
sends to them at the end of each month a bank return whichis a copy of the customers account with bank for the relate
month.
(64)
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Closing a BankAccount
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CLOSING A BANK A/C
Banker customer relation continues as long as both of them
sodesire.Willingness on the part of both parties is essential.This relationship can be terminated by the act of any of the
party.In both the cases the party wants to terminate the
relationship has to give formal notice of his intention of the
party is under any obligation to other except one that is on
the party of banker to maintain secrecy in regard to the
customer accounts.
Accounts of customer can be closed by any of the
following ways:
1. Closing of Account by customer
Whenever a customer desire to close operations of his
account, he can terminate the relationship of banker and
customer but only after satisfying the banker that the
closer is genuine.
The following are the reasons when account is closed
by the customer:
(a) The change in terms and conditions regarding,rate
of interest,to commission,incidental charges etc.
may not acceptable to customer.
(67)
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bank,in some bank it is three year),then it is treated as
dormant account.The banker can close this account but only
after giving notice to account holder.
3.Closing of account under compulsion of
law
Sometime banker has to close to account of customer
under legal compulsion due to following reasons:
(i) When customer is traced to be indulged in illegal
activities.
(ii) His working is not in the interest of nation.
(iii) The account may be closed due to death/insolvency
/instantaneity of customer.
There are some cases in which operation of accounts areclosed until the text next instruction received.This stopping is
temporary in nature.
These cases are:
Death of customer
Insolvency of customer
Voluntary liquidation of a limited co.
Attachment of garnishee order (69)
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(73)
Fifthly,one problem experienced by banks is that, many
a time,villagers divert the loans from productive to
unproductive uses.This needs to be stopped and it needs to
be ensured that the credit is used for the purposes for which
it is meant.Banks may think in terms of advancing credit to
agriculturists in the form of agricultural inputs.While giving
credit to farmers in the form of agricultural inputs,it should be
ensured that inputs are supplied in adequate
quantities and intime and complementary and supplementary facilities are also available
Finally, it needs to be remembered that stray attempts would
not solve the problem of agricultural credit.The credit system
as a wholegovernment, commercial and cooperative
must be so knit together that it does not suffer either from agap or an overlap.It is only then that the real fruits of credit
facilities will be enjoyed by the country at large in the form of
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(76)