Acceptance of deposits and maintenance of deposit accounts is the core activity in any bank. Para banking activities are the activities carried out by the bank which are apart from its normal day-to-day activities. Banks can undertake certain eligible financial services or para-banking activities either departmentally or by setting the subsidiaries. Some examples of the para-banking…
A Point-of-Sale (POS) terminal is a vital tool that enables businesses to accept payments from customers at the point of purchase. Beyond facilitating transactions, POS systems also capture sales data and may include functionalities such as barcode scanning, receipt printing, and payment processing. These systems can be either physical devices (e.g., card readers) or software-based…
Automated Teller Machines (ATMs) play a critical role in enhancing financial accessibility and convenience. In India, ATMs are available in various forms to cater to diverse customer needs, ranging from basic transactions to specialized financial services. Below is a structured overview of the different types of ATMs and their distinct purposes: 1. Basic ATMs Basic…
The major difference between wholesale banking and retail banking is in the type of clientele. Retail banking, also known as consumer banking, refers to the offering of banking services to individuals and lower-tier businesses. Services offered in retail banking related both on deposits as well as loans and advances. Deposit products avail retail customers are…
A debenture is a debt instrument issued by a company, acknowledging its obligation to repay the borrowed amount at a specified interest rate. It serves as one of the primary means through which a company raises loan capital. Although the funds raised through debentures become part of the company’s capital structure, they do not constitute…
Banks generate non-interest income primarily through a wide range of fee-based services. These services include monthly account maintenance charges, ATM usage fees, credit card fees, wire transfer charges, and investment advisory services. Below is a detailed overview of the various fee-based income sources for banks: 1. Account-Related Fees Monthly Maintenance and Service Charges:Banks in India…
Ancillary services in banking refer to additional offerings beyond core financial products, aimed at enhancing the overall customer experience and financial inclusion. This includes card services, safe deposit lockers facility, foreign exchange transactions, and other Para-Banking activities. Para-Banking Activities Banks are permitted to undertake certain eligible financial services or para-banking activities either departmentally or through…
The Reserve Bank of India (RBI) has announced an increase in interchange fees on ATM transactions, resulting in higher costs for cash withdrawals starting May 1, as reported by Doordarshan News. This revision is expected to impact frequent ATM users by increasing withdrawal expenses. According to reports, customers will incur an additional charge of Rs…
Banks in India with a net worth of `100 crore and above can undertake credit card business either departmentally or through a subsidiary company set up for the purpose. They can also undertake domestic credit card business by entering into tie-up arrangements with one of the banks already having arrangements for the issue of credit…
A Credit card holder is the customer, or consumer, who is using the card for payment or cash withdrawal. Credit card holders can also add authorized users to their account. The authorized user can make purchases, but the primary holder is still responsible for the debt. Credit card issuer: Financial institutions, usually banks and NBFCs,…