Banks in India offer a wide range of banking services to their customers, such as savings and Current Accounts, loans (personal, business, and mortgages), debit cards, ATMs, credit cards, export credits, corporate and retail lending, investment services, Treasury operations, and electronic banking options like UPI, ECS, mobile banking, NEFT, and RTGS, SWIFT & ISO 20022 messages, etc. They also undertake para-banking activities like portfolio management and insurance business (Bancassurance) to the underwriting of bonds of PSUs, depository, selling gold coins, Government business, and so on. They also offer safe deposit Lockers for customers to securely store valuable items and documents.
Deposit products available in the bank There are several different types of deposit accounts including Savings Bank Account. Current Deposit Account, Fixed Deposit Account. Please read the following post to know the various types of bank deposits available, including savings, current, and fixed deposit accounts, and their features. DIFFERENT DEPOSIT PRODUCTS AVAILABLE IN BANKS Bank finances to customersBanks lend various types of credit facilities to their customers viz. Demand Loans, consumer loans, home loans, education loans, term lending, working capital finance, export credit, Bank Guarantee, Letter of credit, etc. Banks also extend facilities like Overdrafts, Bill finance, leasing finance, Hire-purchase finance, etc. To know more details read: BANK FINANCE OF DIFFERENT TYPES
Other services available in banks
Cheque payments:
A cheque is a document you can issue to your bank, directing it to pay the specified sum mentioned in digits as well as words to the person whose name is borne on the cheque. Cheques are also called negotiable instruments.
Read: HOW TO WRITE A CHEQUE?
Cheque Truncation System:
The system of settlement of payment is based on physical cheques by a new procedure called “ Cheque Truncation System” (CTS). It is an online image-based cheque-clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically eliminating the actual cheque movement.CTS is protected by a comprehensive PKI-based security architecture that incorporates basic security and authentication controls such as dual access control, user ID, and passwords with cryptobox and smart card interfaces. To know more read: CHEQUE TRUNCATION SYSTEM (CTS) FOR ALL BANK BRANCHES IN THE COUNTRY
Discounting on bills of exchange
A bill of exchange is a negotiable instrument that is negotiable merely by endorsing the name. Bill discounting is an arrangement whereby the seller (customer of the bank) approaches his bank/NBFC to discount the bill held by him before it is due. The bank cuts some amount from the bill amount (face value of the bill) and pays the remaining amount, called the discounted value of the bill to the borrower. The difference between the bill amount and the amount paid to the customer is the amount of discount collected by the bank. The discount collected by the bank is the interest collected on the face value of the bill for the period from the date of the bill discount up to the maturity date of the bill. The Bank then presents the Bill to the borrower’s customer on the due date of the Bill and collects the total amount. On the date of maturity, the bank receives full payment (face value of the bill) from the drawee. If the bill is delayed, the borrower or his customer pays the Bank a pre-determined interest depending upon the terms of the transaction. Bill Finance constitutes a vital part of the working capital finance and is a major Trade Finance activity. To learn more read: BILL DISCOUNT: DISCOUNT RATE AND EFFECTIVE INTEREST RATE EXPLAINED
Investment Bank:
An investment bank typically only works with deal makers and high-net-worth individuals (HNWIs)—not the general public. These banks underwrite deals, secure access to capital markets, offer wealth management and tax advice, advise companies on mergers and acquisitions (M&A), and facilitate the buying and selling of stocks and bonds. Financial advisors and discount brokerages also occupy this niche. Banks also provide investment products like mutual funds, stocks, and bonds, helping customers grow their wealth.
Portfolio Management Services
Some banks in India provide Portfolio Management Services (PMS) to high-net-worth individuals (HNWIs)—not the general public. A Portfolio Management Service (PMS) is a professional financial service that provides investors with personalised investment management to deliver superior risk-adjusted returns. Unlike mutual funds which cater to a large pool of investors with the same investment objective, a PMS account is designed to meet customers’ specific financial goals, risk tolerance, and investment preferences. To know more read: WHAT IS PORTFOLIO MANAGEMENT SERVICE?
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