BANKING

Submitted To:
Submitted By:
Mrs. Renu Batish Gursimran Kaur
Niti
Navjot
Sukhman
+1, Commerce, B

OUR SURVEY IN PUNJAB NATIONAL

BANK

PNB

PNB stands for PUNJAB NATIONAL BANK .

The PNB was founded in 1895 and is
headquarted in New Delhi , INDIA . As of
January 5 ,2012 the chairman of PNB is K R
KAMATH.

INTRODUCTION
Abankis afinancial institution and afinancial
intermediarythat acceptsdepositsand channels those
depositsintolendingactivities,eitherdirectlyorthrough
capital market. A bank connects customers with capital
deficitstocustomerswithcapitalsurpluses.

WHAT ARE BANKS

Institutions which deals in money and credit.

An intermediary, which handles other peoples
money both for their advantage and to its own
profits.

A financial institution that links the flow of funds

from savers to the users.

Plays an important role in the economy of any

country as they hold the saving of the public.

BASIC DEFINITION:
A system of trading money which:

provides a safe place to save excess cash, known

as deposits.

suppliesliquidityto the economy by loaning this

money out to help businesses grow and to allow
consumers

to

homes, cars etc.

purchase

consumer

products,

BANKING REGULATION ACT,

1949
As per Section 5(c) of Banking Regulation Act,
1949 a "Banking Company" means any company
which transacts the business of banking in India.
As per Section 5(b) of Banking Regulation Act,
1949 , banking means the accepting, for the
purpose of lending or investment, of deposits of
money from the public, repayable on demand or
otherwise, and withdrawable by cheque, draft,
order or otherwise.
As per Section 5(d) of Banking Regulation Act,
1949 , company means any company as defined in
Section 3 of the Companies Act, 1956 and
includes a foreign company within the meaning of
Section 591 of that Act.

TYPES OF BANKS IN
INDIA

Central Bank: The Reserve Bank of India is the central

Bank that is fully owned by the Government.

Public Sector Banks: State Bank Group, Regional

rural banks.

Private Sector Banks: Foreign Banks, Scheduled and

Non- Scheduled Banks.

Co-operative Sector: State Co-operative Banks, Central

Co-operative Banks, Primary Agriculture Credit Societies.

Development Banks/Financial Institutions: IDBI,

ICICI, NABARD.

TYPES OF BANK
ACCOUNTS
Current
Saving

Accounts

Banking Accounts

Recurring
Fixed

Deposits Accounts

Deposits Accounts.

Multiple Option Deposits

Accounts.

TYPES OF BANKING
SERVICES

Banks offer the following services to account

holders at their specified branches
Multi-city / Payable at Par (PAP) cheque facility,
Trade services
Credit Card,
Debit/ATM Card
Money Changer
Mobile banking
E Banking
Real Time Gross Settlement (RTGS).

Credit Cards
Acreditcardisaformofborrowing.Itmaybeaconvenient
modeofpaymentasitallowsyoutobuygoodsandservices
without using cash, but it is not intended to be a long-term
creditfacility.
Debit Cards
DebitcardsaresimilartoATMcards.Youcanuseyourdebit
card with your Personal Identification Number (PIN) to
withdrawcashfromyourbankaccountatyourbanksATMs.
Youcanalsouseittopurchasegoodsandservices.

Cheques
A cheque is a paper instrument that orders a payment of
money from a bank account. A current account holder can
write cheques to order payments of money. Cheques are
providedwhencustomersopenacurrentaccount.
Money Changers
Money-changinginvolvesanexchangeofnotesdenominated
in different currencies. Exchange rates may vary depending
onmarketconditionsandthemoney-changerscostoffunds.
Ifyouneedtoexchangecurrencies,youmayapproachabank
or licensed money-changer that offers these services. It is
againstthelawtooperateamoney-changingbusinesswithout
a valid licence. You should not engage the services of
unlicensedpersons.

E BANKING

Internet banking (or E-banking) means any user

with a personal computer and a browser can get
connected to his banks website to perform any of
the virtual banking functions.

The term "electronic banking" or "e-banking" covers

both computer and telephone banking.

In other words it is said that it is updated 'on-line,

real time'. The system is updated immediately after
every transaction automatically.

WAYSOFE-BANKING

Automatedtellermachine
Telebanking
Plasticcards
E-cheque
Internetbanking
Virtualbanking

Specific technology discussed,

ATM
Internetbanking
Mobilebanking
Telephonebanking
Debitcards

Internet Banking
Internet banking refers to carrying out certain banking
transactions over the internet. Banking online is very
convenient and can save you time and money. All the
major banks offer online banking. There are a number
of things you can do online such as:
View balances and statements
Transfer money
Top up your mobile phone
Pay bills

HOW ATMS WORK?

Bank
computer

Host
computer

ATM

HOW MOBILE BANKING WORK?

BANKDATABASE

PLASTIC CARDS

TELE BANKING
Customer

Bank
Enquiry

Request facility
Loans
Cheque Status
Fixed Deposit
details

BENEFITS OF
Credit
Unions typically pay higher dividend rates on
BANKING
savings.

Credit Unions typically offer lower rates on loans.

Credit Unions typically provide better service; since
they are owned and governed by their membership,
they tend to prioritize the needs of their members
above all else.
Credit Unions operate on a not-for-profit business
model, so excess earnings are returned back to the
membership in form of competitive rates and lower
fees, and sometimes even special dividends.
Many Credit Unions offer the same products and
services found at banks

COMMERCIAL ROLE OF BANKING

Issue

of banknotes (promissory notes

issued by a banker and payable to bearer
on demand)
Processing of payments by way of
telegraphic transfer, EFTPOS, internet
banking or other means
Issuing bank drafts and bank cheques
Accepting money on term deposit
Lending money by way of overdraft,
installment loan or otherwise

COMMERCIAL ROLE OF BANKING

Providing documentary and standby letters of

credit (trade finance), guarantees, performance
bonds, securities underwriting commitments and
other forms of off-balance sheet exposures
Safekeeping of documents and other items in safe
deposit boxes
Currency exchange
Acting as a 'financial supermarket' for the sale,
distribution or brokerage, with or without advice,
of insurance, unit trusts and similar financial
products

ECONOMIC ROLE OF BANKING

Issue of money, in the form of banknotes and
current accounts subject to cheque or payment at
the customer's order.
Netting and settlement of payments.
Credit intermediation
Credit quality improvement
Maturity transformation

WHAT IS BANK MARKETING?

Bank marketing is the aggregate of functions,
directed at providing services to satisfy
customers financial (and other related) needs and
wants, more effectively and efficiently than the
competitors keeping in view the organizational
objectives of the bank.

TEACHER REPORT

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