NHAI to Replace FASTag with GPS-Based Toll Collection System from May 2025
The National Highways Authority of India (NHAI) has announced the phased implementation of a GPS-based toll collection system, set to replace the existing FASTag system beginning May 1, 2025. This strategic shift is aimed at enhancing operational efficiency, minimizing congestion at toll plazas, and promoting greater transparency in toll fee computation. Rationale Behind the Transition…
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Fee-Based Services or Non-Interest Income of Banks
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…
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Overview: Ancillary Products and Services Offered by Banks
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…
Read article Understanding Credit Products or Asset Products of Banks
Introduction to Credit Products Credit products refer to the range of commitments or obligations under which a bank agrees to make payments on behalf of or for the account of a borrower. These include various types of loans and advances, as well as non-fund-based facilities such as letters of credit, guarantees, and other arrangements designed…
Read article Understanding Deposit or Liability Products in Banks
A liability account in accounting refers to any account representing an obligation owed by a business—such as a bank—to a third party. In the context of banking, the most common liabilities include: This article provides a detailed overview of the deposit and liability products in banks, categorized as follows: 1. Deposit Products (Liability Products) In…
Stages of the Product Life Cycle and Product Lines in Banking
The Product Life Cycle (PLC) in the banking industry refers to the progression of a financial product through distinct stages from its initial introduction to eventual decline. Understanding the PLC is essential for financial institutions, as it informs strategic decisions related to product development, marketing, and eventual product withdrawal. The life cycle typically comprises four…
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