Banking Services and Operations

A personal identification number (PIN) is a numeric password used to authenticate a user to a system, particularly in association with an ATM card.

Code of Customer Rights sets minimum standards of banking practices that member banks have to follow while they deal with individual customers. It provides protection to customers and explains how banks are expected to deal with customers in their day-to-day operations. 

The Code has been developed to: a. promote good and fair banking practices by setting minimum standards in our dealings with you; b. increase transparency so that you can have a better understanding of what you can reasonably expect from us; c. encourage market forces, through competition, to achieve higher operating standards; d. promote a fair and cordial relationship between you and your bank; e. foster confidence in the banking system.

Distribution channels for banking products: (a) Phone banking/call centre (b) Mobile banking (c) Automated teller machinery (d) POS (e) CDM (Cash deposit machines)

Many times a banker is in the position of a trustee. A trustee is one who holds property for the benefit of a person or beneficiary. The banker is a trustee when a customer deposits his valuables and securities for safe custody. In this case, the customer continues to be the owner and is entitled to the same goods and valuables as he deposited. The banker cannot use the articles kept for safe custody anyway he likes. He cannot return equivalent goods in place of the original one. Here the legal position of a banker as a trustee is quite different from that of debtor and creditor. For example, in the event of bank's liquidation, securities and valuables held by the bank as trustee are not available for distribution to the general creditors. Fund, if any, coming to the hands of the bank as a trustee must also be applied for specific purpose as the trust deed indicates.

Lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Introduction is not essential. It is done in order to have the guarantee of the person.

Computers are getting more sophisticated. They have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. All the given parts are beneficial for banks. 

Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of cash, gold and government approved securities before providing credit to the customers.

Characteristics of financial services: (1) Customer-specific (2) Intangibility (3) Tendency to perish (4) Inseparability (5) Variability

Credit card does not belong to product line to other banks.

No addition, alteration or amendment shall be made to or in the provisions of the Articles of Association for the time being in force, unless the same shall have been previously submitted to and approved by the Registrar. Thus, the Registrar of Companies can be helpful to have a copy of the amended documents. 

Section 8 in BANKING REGULATION ACT, 1949: Prohibition of trading — Notwithstanding anything contained in section 6 or in any contract, no banking company shall directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it, or engage in any trade, or buy, sell or barter goods for others otherwise than in connection with bills of exchange received for collection or negotiation or with such of its business as is referred to in clause (i) of sub-section (1) of section 6: 42 [Provided that this section shall not apply to any such business as is specified in pursuance of clause (o) of sub-section (1) of section 6.] Explanation — For the purposes of this section, “goods” means every kind of movable property, other than actionable claims, stocks, shares, money, bullion and species, and all instruments referred to in clause (a) of sub-section (1) of section 6.

The informal lenders include moneylenders, traders, employers, relatives and friends, etc. 

for improving human resource intervention

Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities takes place from one bank to another on a real time and on gross basis.