Chapter-I: Innovation in Banking System of Pujjya Sharanabasaveshwara Co-Opeartive Society Maski

Innovation in banking system of Pujjya Sharanabasaveshwara co-opeartive society Maski
CHAPTER-I
INTRODUCTION
Innovation has been always an important area of focus for all industries, not just
for banks. However, in view of the economic slowdown, it is common knowledge that
banks have been taking a very conservative approach over the last two years as many
have been consolidating their portfolio and innovating products had list it importance had
has taken a back seat. We have not seen many innovative products designed for
customers during the consolidation phase, and rightly so, as the primary focus of Banks
has been in cleansing their portfolio and lightening credit extension apart from being
extremely guard in getting only credit worthy customers in their books.
The scence in the Indian Banking Industry is changing; the various global
economies have started showing signs of revival leaving behind them the worst
recessionary phase and moving towards growth. The Prime Minister of India, during the
Department of Commerce P.G Centre, Raichur. Page 1

recent platinum jubilee celebration of Reserve Bank India, as encouraged banks to be

more innovative. Please recall the budgetary announcement by the Finance Minister on
opening up the banking space by offering additional banking license to private players
and NBFC’s .it is expected that at least 5 more international banking giants will setup
operation in India in the next 1 to 2 years, bringing with them superior technology. These
are exciting times for customer in India and challenging times for existing banks, more so
for the public sector banks.
The choice before the customers today is for wider both in the selection of banks
as well as products than ever before. The future growth is largely in retail banking.
Innovative products backed by superior services are vital to provide the cutting edge.
Here’s a quick look at some factors which may probably be the drivers for
innovation in banking, keeping in mind customers expectations and behavior changes:
1. With intense competition between bank which is going to the more server in
the coming years and with more private players waiting to step in, adopting new
technology as assumed added importance, specially for public sector bank. The key to
success is adopting state-of –the –art technology and continuously accelerating business
process.
2. Investment and innovation in technology will result in further advancement in

credit analytics systems that will help them assess customer behavior and enhance
portfolio profitability. Experience in matured market has proven the value of credit
bureaus in the development customer credit. With the possibility of more credit bureau’s
competing with CIBIL looming large, further advancement and innovation to quickly
assess customer credit history will be a critical factor to provide convenience banking to
customers. The day is not for away where you call up your bank for a loan, provide your

UID/PAN number, your credit score verify, eligibility calculated and the processing is
completed almost instantaneously and the loan amount gets credited to your account
within 24 hours.
3. The 3G spectrum auction expected in mid 2010 across various ciacles to private
telecom providers in India will further open up immense migration possibilities to more
convenient channels. It may not be too long where the customer would assess his bank
account using a secured application through his mobile phone. Needless to say, secured
and fast internet banking platforms will become basic necessity.
4. RBI’s recent directive on payment of interest on daily balance maintained in

the savings account effective 1st April 2010 will result in higher outflow to banks. This
will also result in the interest rates for short term deposits (7-90 days) undergoing an
upward revision as against the 2.5% - 3.5% being paid currency by banks on these
deposits. While most banks seem to have enhanced their technology to comply with this
interest calculation methodology, this change however would result in an increased
outflow of around 20% in interest credits. Banks will find ways to innovate and
encourage customers to use their debit cards for purchases, bring the average daily
balance down and gain the differential between interchange spend and interest payouts.
These strategies of promoting debt card usage will also keeps the banking system going,
interchange revenues flowing in and ensuring that credit exposure by way of credit cards
is minimized.
5. Continuous innovation on the product offerings by banks is paramount to

ensure that their products stand out from the crowed. A lot of effort and innovation from
banks is required to make their product the preferred choice of the customers. This needs
to be backed by a powerful and customized loyalty program for customers to be
continuously encourages to keep using their card. Server is an extremely vital cog in the
wheel and the banks which make the investment to have superior service level as their

USP will have a clear advantage. Investment in providing a chat interface as a service for
routine enquiries would be in line with times to come.
6. ten years ago, a customer would have been happy to bank with those who
provided just a fixed deposit or a recurring deposit in addition to his savings account and
a credit card. Today, there is a need to spread the wealth around, diversify the saving into
shares, fixed deposits, mutual funds, pension products and insurance. Banks have a
choice – offer all those as part of their convenience banking to customer or lose him. This
desire and the compulsion to be the one – stop shop for the entire customer’s investment
and borrowing needs will ensure a lot of banks adopt this model increasingly.
7. Smart cards embedded with microprocessors or memory chips will become

tamper proof and replace the existing plastic cards, offering customers a secure digital
identity. This will also provide convenience to customers; provide access to bank’s
website and individual accounts, accurate tracking of usage, spend analysis and manage
long term customer relationships through efficient, timely and valuable services to them.
8. Biometric ATM’s will replace the conventional ATM’s across the country,
apart from all banks investing in additional ATM’s. Banks can authenticate the identity of
the customer in three ways; most common being something the user knows (passwords or
personal identification numbers), something the user has (a security token etc) or
something the user is (a physical characteristics like fingerprint, palm geometry etc.,
called as biometric). With increasing threats on compromise of passwords and account
take over’s and misuse of cards, biometric form of authentication (which have withstood
the test of scrutiny coming out as the most secure form) for ATM and POS transactions
would be the way ahead. Statistics show that India’s ATM density is around 35 ATM’s
per million people which is abysmally low compared to the US’s ATM density of 1300.
This is an area of focus for many banks clearly, offering a branding and marketing
proposition for their investment apart from interchange revenues on usage.
9. Cheques will gradually be phased out and replaced by RTGS and NEFT and other
electronic forms of money transfer and payment mechanisms offering superior
turnaround times. Operational efficiency in processing electronic payment mechanisms
will undergo a radical change, with the beneficiary receiving the credit real time online.
10. The 2010 census process which has begun is going to throw up interesting
focus areas for banks. The demographic of our country, with 54% of the Indian
population being under 25 years of age and 60% within 40 years of age, will be a key
driver to create a large retail customer base. With increasing income level and an annual
GDP growth 8.5-9% predicted for the next 2-3 years, this segment is a good target market
to sell insurance, mutual funds, credit cards etc.
ELEMENTS OF FINANCIAL SYSTEM

Financial market
Unorganized market Organized market
Moneylenders Indigenous bankers

Money market Capital
market
Call market
Govt. Industrial Long-term
securitie securities loan
Commercial market s market market market
Treasury bill market
Primary Secondary
Short-term loan
market market
market
Commercial
Term loan Market for Market for
papers
market mortgages financial
Certificate of guarantees
deposits
Repo market

Financial market
Unorganized market Organized market
Moneylenders Indigenous bankers

Money market Capital
market
Call market
Govt. Industrial Long-term
securitie securities loan
Commercial market s market market market
Treasury bill market
Primary Secondary
Short-term loan
market market
market
Commercial
Department of Commerce P.G Centre, Raichur. Term loan
papers
Market for Market Page
for 7
market mortgages financial
Certificate of guarantees
deposits
About Indian banking system
Introduction
The Indian Banking industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non-scheduled banks
and scheduled banks. Scheduled banks comprise commercial banks and the co-operative
banks. In terms of ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks and private sector
banks (the old/ new domestic and foreign). These banks have over 67,000 branches
spread across the country.
Meaning of bank
A bank is a financial institution and a financial intermediary that accepts deposits

and channels those deposits into lending activities, either directly or through capital
markets. A bank connects customers with capital deficits to customers with capital
surpluses.
Due to their critical status within the financial system and the economy generally,
banks are highly regulated in most countries. Most banks operate under a system known
as fractional reserve banking where they hold only a small reserve of the funds deposited
and lend out the rest for profit. They are generally subject to minimum capital
requirements which are based on an international set of capital standards, known as
the Basel.

Banks play very important role in the economic life of the nation. The health of
the economy is closely related to the soundness of its banking system. Although banks
create no new wealth but their borrowing, lending and related activities facilitate the
process of production, distribution, exchange and consumption of wealth.
In this way they become very effective partners in the process of economic
development. Today, modern banks are very useful for the utilization of the resources of
the country. The banks are mobilizing the savings of the people for the investment
purposes. The savings are encouraged and saving rate increases. If there would be no
banks then a great portion of a capital of the country would remain idle.
A bank as a matter of fact is just like a heart in the economic structure and the
Capital provided by it is like blood in it. As long as blood is in circulation the organs will
remain sound and healthy. If the blood is not supplied to any organ then that part would
become useless. So if the finance is not provided to Agriculture sector or industrial
sector, it will be destroyed. Loan facility provided by banks works as an incentive to the
producer to increase the production.
Role of banks in economic development

In India, as in many developing countries, the commercial banking sector has

been the dominant element in the country financial system. The sector has performed the
key functions of providing liquidity and payment services to the real sector and has
accounted for the Bulk of the financial intermediation process.
Besides institutionalizing savings, the banking sector has contributed to the

process of economic development by serving as a major source of credit to households,
government, and business and to weaker sectors of the economy like village and small
scale industries and agriculture.
Over the years, over 30-40% of gross household savings, have been in the form of
bank deposits and around 60% of the assets of all financial institutions accounted for by
commercial banks .An important landmark in the development of banking sector in
recent years has been the initiation if reforms following the recommendations of the first
Narasimham Committee on Financial System.
In reviewing the strengths and weaknesses of these banks, the Committee

suggested several measures to transform the Indian banking sector from a highly
regulated to amore market oriented system and to enable it to compete effectively in an
increasingly globalize environment.
Many of the recommendations of the Committee especially those pertaining to

Interest rate, an institution of prudential regulation and transparent accounting norms
were in line banking policy reforms implemented by a host of developing countries since
1970‟s.
Current status of banking industry
Central Bank:
A central bank, reserve bank, or monetary authority is the entity responsible for
the monetary policy of a country or of a group of member states. Its primary
responsibility is to maintain the stability of the national currency and money supply, but
more active duties include controlling subsidized-loan interest rates, and acting as a
lender of last resort to the banking sector during times of financial crisis (private banks
often being integral to the national financial system). It may also have supervisory
powers, to ensure that banks and other financial institutions do not behave recklessly or
fraudulently.
Commercial Banks:
A commercial Bank performs all kinds of banking functions such as accepting

deposits, advancing loans, credit creation & agency functions. They generally advance
short-term loans to their customers; in some cases, they may give medium term loans also
Industrial Banks
Ordinarily, the industrial banks perform three main functions: Firstly, Acceptance
of Long term deposits: Since the industrial bank give long term loans, they cannot accept
short term deposits from the public. Secondly the industries require short term loans to
buy raw materials & to make payment of wages to workers. Thirdly it does some Other
Functions - The industrial bank stander advice to big industrial firms regarding the sale &
purchase of shares & debentures-
Agricultural Banks
As the commercial & the industrial Banks are not in a position to meet the credit
requirements of agriculture, there arises the need for setting up special types of banks to
finance agriculture. Firstly, the farmers require short term loans to buy seeds, fertilizers,

plough sand other inputs. Secondly, the farmers require long term loans to purchase land,
to effect permanent improvements on the land to buy equipment & to provide for
irrigation works.
Foreign Exchange Banks
Their main functions are to make international payments through the purchase
and sale of exchange bills. As is well known, the exporters of a country prefer to receive
the payment for their exports in their own currency. Hence their arises the problem of
Converting the currency of one country into the currency of another. The foreign
exchange banks try to solve this problem. These banks specialize in financing foreign
trade.
Indigenous Banks
According to the Indian Enquiry Committee, “Indigenous banker is a person or a

firm which accepts deposits, transacts business in handiest and advances loans etc...
ABOUT RBI
History
1935–1950

The bank was founded in 1935 to respond to economic troubles after the First
World War. The Reserve Bank of India was set up on the recommendations of the Hilton-
Young COM Secondly, Meeting the credit requirements of companies: Firstly the
industries require purchasing land to erect buildings and purchase heavy machinery.
Mission. The commission submitted its report in the year 1926, though the bank was not
set up for another nine years. The Preamble of the Reserve Bank of India describes the
basic functions of the Reserve Bank as to regulate the issue of bank notes, to keep
reserves with a view to securing monetary stability in India and generally to operate the
currency and credit system in the best interests of the country.
The Central Office of the Reserve Bank was initially established

in Kolkata, Bengal, but was permanently moved to Mumbai in 1937. The Reserve Bank
continued to act as the central bank for Myanmar till Japanese occupation of Burma and
later up to April 1947, though Burma seceded from the Indian Union in 1937. After
partition, the Reserve Bank served as the central bank for Pakistan until June 1948 when
the State Bank of Pakistan commenced operations. Though originally set up as a
shareholders’ bank, the RBI has been fully owned by the government of India since its
nationalization in 1949.
1950–1960
Between 1950 and 1960, the Indian government developed a centrally planned
economic policy and focused on the agricultural sector. The administration nationalized
commercial banks and established, based on the Banking Companies Act, 1949 (later
called Banking Regulation Act) a central bank regulation as part of the RBI. Furthermore,
the central bank was ordered to support the economic plan with loans.
1960–1969
As a result of bank crashes, the reserve bank was requested to establish and
monitor a deposit insurance system. It should restore the trust in the national bank system
and was initialized on 7 December 1961. The Indian government founded funds to
promote the economy and used the slogan Developing Banking. The Government of
India restructured the national bank market and nationalized a lot of institutes. As a

result, the RBI had to play the central part of control and support of this public banking
sector.
1969–1985
Between 1969 and 1980, the Indian government nationalized 6 more commercial
banks, following 14 major commercial banks being nationalized in 1969 (as mentioned
on the RBI website). The regulation of the economy and especially the financial sector
was reinforced by the Government of India in the 1970s and 1980s. The central bank
became the central player and increased its policies for a lot of tasks like interests, reserve
ratio and visible deposits. The measures aimed at better economic development and had a
huge effect on the company policy of the institutes. The banks lent money in selected
sectors, like agri-business and small trade companies.
The branch was forced to establish two new offices in the country for every newly
established office in a town. The oil crises in 1973 resulted in increasing inflation, and
the RBI restricted monetary policy to reduce the effects.
A lot of committees analyzed the Indian economy between 1985 and 1991. Their
results had an effect on the RBI. The Board for Industrial and Financial Reconstruction,
the India Gandhi Institute of Development Research and the Security & Exchange Board
of India investigated the national economy as a whole, and the security and exchange
board proposed better methods for more effective markets and the protection of investor
interests.
The Indian financial market was a leading example for so-called "financial
repression" (Mackinnon and Shaw). The Discount and Finance House of India
began its operations on the monetary market in April 1988; the National Housing
Bank, founded in July 1988, was forced to invest in the property market and a new
financial law improved the versatility of direct deposit by more security measures
and liberalization.

1991–2000
The national economy came down in July 1991 and the Indian rupee was
devalued.The currency lost 18% relative to the US dollar, and the Narsimahmam
Committee advised restructuring the financial sector by a temporal reduced reserve ratio
as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish
a private banking sector.
This turning point should reinforce the market and was often called neo-liberal.
[15]
The central bank deregulated bank interests and some sectors of the financial market
like the trust and property markets.[16] This first phase was a success and the central
government forced a diversity liberalization to diversify owner structures in 1998.
The National Stock Exchange of India took the trade on in June 1994 and the RBI
allowed nationalized banks in July to interact with the capital market to reinforce their
capital base. The central bank founded a subsidiary company—the Bharatiya Reserve
Bank Note Mudran Limited—in February 1995 to produce banknotes.
Since 2000
The Foreign Exchange Management Act from 1999 came into force in June

2000. It should improve the foreign exchange market, international investments in India
and transactions. The RBI promoted the development of the financial market in the last
years, allowed online banking in 2001 and established a new payment system in 2004–
2005 (National Electronic Fund Transfer).
The Security Printing & Minting Corporation of India Ltd., a merger of nine

institutions, was founded in 2006 and produces banknotes and coins. The national
economy's growth rate came down to 5.8% in the last quarter of 2008–2009 and the
central bank promotes the economic development.
Monetary Authority:
 Formulates implements and monitors the monetary policy.

 Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.
Regulator and supervisor of the financial system:
 Prescribes broad parameters of banking operations within which the country’s

banking and financial system functions.
 Objective: maintain public confidence in the system, protect depositors'' interest
and provide cost-effective banking services to the public.
 Regulator and supervisor of the payment systems
o Authorizes setting up of payment systems
o Lays down standards for operation of the payment system
o Issues direction, calls for returns/information from payment system operators.
Manager of Foreign Exchange
 Manages the Foreign Exchange Management Act, 1999.

 Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.
Issuer of currency:
 Issues and exchanges or destroys currency and coins not fit for circulation.
 Objective: to give the public adequate quantity of supplies of currency notes and
coins and in good quality.
Developmental role
 Performs a wide range of promotional functions to support national objectives.

Related Functions
 Banker to the Government: performs merchant banking function for the central
and the state governments; also acts as their banker.
 Banker to banks: maintains banking accounts of all scheduled banks.
Central Board of Directors
The Central Board of Directors is the main committee of the central bank.
The Government of India appoints the directors for a four-year term. The Board consists
of a governor, four deputy governors, four directors to represent the regional boards, one
from the Ministry of Finance and ten other directors from various fields.
Bank Rate
RBI lends to the commercial banks through its discount window to help the banks
meet depositor’s demands and reserve requirements. The interest rate the RBI charges the
banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and
money supply in the market, it will decrease the bank rate and if it wants to reduce the
liquidity and money supply in the system, it will increase the bank rate. As of 5 May,
2011 the bank rate was 6%.
Cash Reserve Ratio (CRR)
Every commercial bank has to keep certain minimum cash reserves with RBI.
RBI can vary this rate between 3% and 15%. RBI uses this tool to increase or decrease
the reserve requirement depending on whether it wants to affect a decrease or an increase
in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory
on the part of the banks to hold a large proportion of their deposits in the form of deposits
with the RBI. This will reduce the size of their deposits and they will lend less. This will
in turn decrease the money supply. The current rate is 6%.
Statutory Liquidity Ratio (SLR):

Apart from the CRR, banks are required to maintain liquid assets in the form of
gold, cash and approved securities. Higher liquidity ratio forces commercial banks to
maintain a larger proportion of their resources in liquid form and thus reduces their
Capacity to grant loans and advances, thus it is an anti-inflationary impact. A

higher liquidity ratio diverts the bank funds from loans and advances to investment in
government and approved securities.
In well-developed economies, central banks use open market operations--buying

and selling of eligible securities by central bank in the money market--to influence the
volume of cash reserves with commercial banks and thus influence the volume of loans
and advances they can make to the commercial and industrial sectors. In the open money
market, government securities are traded at market related rates of interest. The RBI is
resorting more to open market operations in the more recent years.
INNOVATION IN BANKING SYSTEM
Innovation for the financial sector
Modern delivery channels core plus offer access to new electronic banking
channels with full support for Internet and mobile phone banking as well as ATM/POS
networks.
The connection to the ATM network uses the industry standard ISO 8583
interface and latest secure technologies like Web Services and SOAP.

Inter Banking Internet is the fabric of our networking social and financial life. It is
a great tool to leverage and facilitate the interaction between bank and their customer.
Since its inception, probanx has innovation in the banking way to use the internal users of
the banks.
Mobile Teller and Banking Point-of-Services (B-POS) the last (but not least!)
innovation of probanx brings the banking service at the fingertips of your clients and
tellers with the Banking point-of-Service and Mobile teller terminals.
Using the most recent telephony and card technologies, it allows branchless
banking in full control and full security, and it supports offline transactions as well.
Future-Proof Solution Core Plus enables the banks to meet the challenges of the new
banking age. By choosing Core Plus, you get a future-proof banking system ably
equipped to manage complex, high-volume banking operations and adjust your strategic
business activities to meet new demands as they arise.
Supporting Modern Delivery Channels
New technology
Core Plus is fully web enabled and allows the bank to have multiple delivery channels
like Internet banking, phone banking, ATM and real-time interfaces to card payment
providers.
Core plus Electronic banking proving a cost-effective and versatile environment in which
banks can offer a wide range of retail banking service, via the Internet or mobile phones
and other hand-held devices.

Internet Banking
Core plus embanking is the next generation of internet banking. It is a comprehensive,

flexible, multi-lingual and user-friendly solution that offers secure self-service banking
transactions to your customers.
Enabled for straight through processing and high performance, this module provides a
cost-effective banking platform for 24 hour banking services.
ATM-POS connectivity to your ATM network uses the industry standard ISO 8583
interface and latest technologies like web service and SOAP.
Merchant Banking
This module is a unique invention and development of probanx. It enables banks to use
Merchants all over the country to act as a mini branch of the using industry standard POS
units. It allows the bank to reach many more customers without investing into branch
offices and employees.
SMS and email notifications
This is latest addition to our electronic banking service. Now a customer or a supervisor
can receive notifications via SMS or email for various events, which can be configured
individually. This service is fully automated and cost-efficient.

What is RTGS System
The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as
the continuous (real-time) settlement of fund transfer individually on an order by order
basis (without netting). ‘Real Time’ means the processing of instructions at the time they
are received rather than at some later time. ‘Gross Settlement’ means the settlement of
funds transfer instructions occurs individually (on an instruction by instruction basis).
Considering that the funds settlement takes place in the books of the Reserve Banking of
India, the payments are final and irrevocable.
What is NEFT
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating

one-to-one funds transfer. Under this Scheme, individuals, firms and corporate can
electronically transfer funds from any bank branch to any individual, firm or corporate
having an account with any other bank branch in the country participating in the Scheme.
WHAT IS ATM
Automatic teller Machine-using an ATM, customers can access their bank accounts in
order to make cash withdrawals and check their account balances Advantages of using an
ATM You don’t need to make a trip to the bank every time you need to withdraw money,
and if you need the cash you can access your money at an ATM machine any time of day
or night.

CHAPTER-II
RESEARCH
AND
DESIGN
Meaning of Research;
It can be defined as the search for knowledge or as any systematic investigation,
with an open mind, to establish novel facts, solve new or existing problems, prove new
ideas, or develop new theories.
The primary purpose or basic researches as opposed to applied research are

documentation, discovery Interpretation, or the research and development of methods and
systems for the advancement of human knowledge.
Statement of problem;
Unless they said problems are addressed to the banks the profitability or the
margin of the banks will always be under pressure
“How best the system of the bank is structured this area requires to be
continuously reinvented by innovative method. This is more so all banks are trying to
implement as much as possible innovative ideas in the banking system as to compete with
the challenging are”
Need for the study;

The innovation is the ongoing process, so it is necessary to keep on the changes of

everything. Especially in the bank & their system. The bank
This plays an important role in the economic development of a country.
It is necessary to make study on areas like deposit, loans and advances, collection
remittance, international banking, etc.
Objectives of the study
 To know the modern felicities providing by Pujja Sharanabasaveshwara

bank to the public.
 To know the effectiveness work or Pujja Sharanabasaveshwara co-
operative society in Maski.
 To study the development and growth of the bank.
 To understand the better concept of innovations in the banking sector.
 To know the employees working capacity by inventing new innovation in
their work.
 To analyses the customers’ satisfaction towards the bank and its goodwill.
 To know the new transaction innovations in Pujja Sharanabasaveshwara
co-operative society.
 To find out the bank position in old system & recent systems.
 To know impacts of these systems.
Scope of the study:

The area of innovation is very vast & innovations in banking system are very vast.
From various it is focus more on financial as well as technology innovation in Pujja
Sharanabasaveshwara Patina Souharda Sahakari Ni Maski.

The study is made on almost all areas like deposits, loans & advances, interest
rates, securities system, online banking, & ATM, etc.
Limitations;
1 The project was constrained by times limited period.

2 Due to the time constraint the study is limited to Pujja Sharanabasaveshwara
Patina Souharda Sahakari Ni Maski.
3 Vast scope, so study is made on limited topics.
4 The study is purely made on information provided by bank manager.
5 The project study is restricted to banking sector used in India only.
Methodology:
Sources of data;
There are two kinds of sources to get the date and information which are first one
is primary data and second one is secondary data. The information is collected from bank
manager in the form of opinions or information through interview method. The branch
has provided the required information or data for the study is collected by the way of
methods which are as fallows.
Primary data;
Primary data is the data which is first hand data this can be collected thorough the
experienced officers or concerned staffs in the branch.
Secondary data;
The secondary data is the data which is are collected from the 3rd party is called
secondary data.
 Published materials
 Reports of Pujja Sharanabasaveshwara Patina Souharda Sahakari Ni in

Maski.

 Banks dairies
 Books.etc
CHAPTER-III
INDUSTRIAL
PROFILE &
COMPANY PROFILE

INDUSTRIAL PROFILE
INTRODUCTION OF CO-OPERATIVE
In the early 20th century, the availability of credit in India, more particularly in
rural areas was non existent. There was no organized institutional credit for agricultural
and related activities.
People in the rural areas largely depended on money lenders who lent money at
very high rates of interest. Thus, there was need to create an institution which would cater
to the needs of ordinary people and was based on the principles of cooperative
organization and management.
In 1904, the first legislation on co-operatives was passed. In 1914, the Maclagen
committee suggested a three tier structure for cooperative banking that is Primary
Agricultural Credit Societies at the grass root level, Central Cooperative Banks at the
district level and State Cooperative Banks at the State or apex level. Cooperative banks
were expected to serve as substitutes for money lenders, and provide both short-term and
long-term institutional credit at reasonable rates of interest.

Definition of co-operative bank
A co-operative bank is a financial entity which belongs to its members, who are at
the same time the owners and the customers of their bank. Co-operative banks are often
created by persons belonging to the same local or professional community or sharing a
common interest. Co-operative banks generally provide their members with a wide range
of banking and financial services (loans, deposits, banking accounts.
Co-operative banks differ from stockholder banks by their organization, their

goals, their values and their governance. In most countries, they are supervised and
controlled by banking authorities and have to respect prudential banking regulations,
which put them at a level playing field with stockholder banks.
Depending on countries, this control and supervision can be implemented directly

by state entities or delegated to a co-operative federation or central body. Even if their
organizational rules can vary according to their respective national legislations, co-
operative banks share common features:
Customer-owned entities:
In a co-operative bank, the needs of the customers meet the needs of the owners,
as co-operative bank members are both. As a consequence, the first aim of a co-operative
bank is not to maximize profit but to provide the best possible products and services to its
members.
Some co-operative banks only operate with their members but most of them also
admit non-member clients to benefit from their banking and financial services.
• Democratic member control:
Co-operative banks are owned and controlled by their members, who

democratically elect the board of directors. Members usually have equal voting rights,
according to the co-operative principle of “one person, one vote”.
• Profit allocation:
In a co-operative bank, a significant part of the yearly profit, benefits or surplus is

usually allocated to constitute reserves. A part of this profit can also be distributed to the
co-operative members, with legal or statutory limitations in most cases.
Profit is usually allocated to members either through a patronage dividend, which

is related to the use of the co-operative’s products and services by each member, or
through an interest or a dividend, which is related to the number of shares subscribed by
each member.
Co-operative banks are deeply rooted inside local areas and communities. They
are involved in local development and contribute to the sustainable development of their
communities, as their members and management board usually belong to the
communities in which they exercise their activities.
By increasing banking access in areas or markets where other banks are less
present – SMEs, farmers in rural areas, middle or low income households in urban areas -
co-operative banks reduce banking exclusion and foster the economic ability of millions
of people. They play an influential role on the economic growth in the countries in which
they work in and increase the efficiency of the international financial system.
Brief History of Urban Co-operative Banks in India
The term Urban Co-operative Banks (UCBs), though not formally defined, refers
to primary cooperative banks located in urban and semi-urban areas.
These banks, till 1996, were allowed to lend money only for non-agricultural purposes.
This distinction does not hold today. These banks were traditionally centered on
communities, localities work place groups. They essentially lent to small borrowers and
businesses. Today, their scope of operations has widened considerably.The origins of the
urban cooperative banking movement in India can be traced to the close of nineteenth

century when, inspired by the success of the experiments related to the cooperative
movement in Britain and the cooperative credit movement in Germany such societies
were set up in India.
Cooperative societies are based on the principles of cooperation, - mutual help,

democratic decision making and open membership. Cooperatives represented a new and
alternative approach to organization as against proprietary firms, partnership firms and
joint stock companies which represent the dominant form of commercial organization.
The Beginnings
The first known mutual aid society in India was probably the ‘Anyonya Sahakari
Mandali’ organized in the erstwhile princely State of Baroda in 1889 under the guidance
of Vithal Laxman also known as Bhausaheb Kavthekar. Urban co-operative credit
societies

Company profile
The “PUJJYA SHARANABASAVESHWARA PATTINA SOUHARDA SAHAKARI
NI’’
It was incorporated in the year of 2008 on February 11th. The bank was started with initial
capital of Rs 5, 00,000 and it was collected by the shareholders.
This Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Ni bank is leading

the position as a credit co-operative with facilitating good services in the Raichur district.
By this bank performance it has increased its share capital to Rs 25, 23,600.
The credit society formed by under registration KCS (Karnataka co-operative

society) act. The credit society established as Pattina Souharda Sahakari Ni and at 11 th
February 2008 is converted to new act Karnataka Souharda sahakari act.

Pujjya Sharanabasaveshwara Pattina Souharda Sahakari Ni with head office at

MASKI made its beginning on 5th may 2008 admits other giant commercial societies
functioning in the command area.
The society which was established exclusively to meet the credit requirement of
the targeted groups small or marginal, agricultural labors rural artisans, retailers small
business peoples etc has fulfilled its objectives to a great extent and has become a
household name in its command area.
While fulfilling its objectives the society also ensured that it remain a viable
entity by earning profit. Patronage extended by customers and well wished and dedicated
work force of the society helped society to grow from strength year after year.
The society existed of over 3 year has been successful in taking society to the
door steps rural masses. Extended timely credit facilities to them and helped them to
relive themselves from the shareholder. In this process the society has also been able to
mobilize substantial rural savings and plough back the same of rural development in the
command area of the society.
PSPSSN providing “SERVICE WITH SMILE”.
Corporate objectives
Every year the society sets corporate objectives in prioritizing on the aspects of
the society in the corporate objectives.
AIMS OF PSPSSN
 Aggressive deposit mobilization.
 Impressive increase in non-priority sector earning.
 Massive reduction in NPA.
 Build up low cost deposits.
 Ensure high yielding equality advance.
The area of network

The society originally covering four district such as Raichur, Gulbarga, in the
command area of PSPSSN project consequently up on reorganization or district the
society is covering number of talukas covered by society continuous be 5 of collected
fund.
 Useful investment of fun better customer services.
 Building transparency in all dealings.
 And achieve its own viability.
MISION OF THE BANK

“While working on co-operative principle is to mobilize the recourses and provide loans
to all borrowers with more focus on micro finance and NFS has also to provide modern
banking services to has to bring about economic development along with social welfare
of its members.
SCHEMES OF PSPSSNM
The schemes of PSPSSN are well received by customers considering simplicity in
alignment and documentation. These are many innovative schemes for professionals
farmers, business mans, industrialist etc.
1. SCHEMES OF DEMAND DEPOSIT
a) Savings Bank Account
b) Current Account this is for business people only.
2. Scheme of term deposit

In fixed deposit quarterly interest is paid to the depositor another schemes in fixed
deposit is monthly interest payable system.
a)Recurring deposit
This deposit is for salaries incomes and fixed person.

b) Devanampriya cash certificate
It is only for those people who are wish to make long term deposits it means nothing
but making the money into double money it is period about 6 years 3 months in the year
by long term savings deposits
c) Staff Security Deposit:
Employees’ guaranty or security purpose of society.
d) Samruddhi Pigmy deposit

In this schemes the society appoint an agent and mobilizes and small savings of the
customers by personally visiting their shops, residence, etc.
In this schemes customer do not to go to the society to deposit their money by paying
with agent of society they can save their money and time.
3. LOANS SCHEMES OF PSPSSN
a) Working capital loans

Business loans, old deposits, cash credits it’s giving for trading and industries.
These loans are payable within one year and maximum amount is from 500000 and there
in mo restriction on the maximum amount.
b) Term loans
The term loan is provided to those people they are industrialist, professionals to
purchase machinery, equipment construction of land and building for their organization,
gowdens,etc
c) Consumption loan
These loans are provided for marriage expenses, medical allowances, for
consumption in nature.

d) Investment loans
These loans are provided to purchase bulk of cart, dairy loans and other
agricultural activities.
e) surety loans
f) employee loan
g) vehicle loan
h) gold loan
i) loan on FD
j) Loan on pigmy.
ORGANIZATION STRUCTURE OF PSPSSN
CASHIER FIELD OFFICER

CHAIRMAN
BOARD OF DIRECTORS
DIRECTORSS
MANAGER
INCHARGE MANAGER
CLEARKS
The board of Directors of the SPSSN Maski consists of

the following persons.

01 Sri Andanappa Gundalli President
02 Sri Mallappa Kudatini Maski Director
03 Sri Malleshappa Byali Director
04 Sri Shivappa Udbal Director
05 Sri Shashidhar Patti Director
06 Sri Vinaykumar Poolbhavi Director
07 Sri Mahadevappa Byali Director
08 Sri Pampanna Gundalli Maski Director
09 Smt Gangamma Balekayi Director
SPECIAL FACILITIES FOR PUBLIC BY PSPSSN

1) Savings Accounts: It is an account people can deposit or withdrawal their
amount at any time during the bank also for which the bankers will charge 3 to
4% simple interest to their account
Merits:-

 There is no restriction for depositing or withdrawal the amount

through SB account
 SB can start with minimum balance but Rs with 500 so that it is very
useful to small scale or small petty peoples.
 The account can be open even minority also and other peoples also
like students, un educated peoples etc.
 Which can be operated through ATM also it is also useful after

working also.
Demerits:-
 It cannot be able to transients by business oriented peoples
 If you are investing through SB we cannot able to expect more

interest from SB account.
2) Fixed deposits
It is also called as term deposit. People can deposit their amount through FD for
certain definite period .i.e. from minimum 15 days to maximum 5 to 6 years. It is
called as fixed deposit.
Merits
 People can expect maximum interest rate through SB account.
 For long term depositors people can expect mutually interest against their
deposit.
 For those whose planning for future like children’s, marriages, education.
it is suitable for like those peoples.

 It is useful for especially for retired persons to plan their future life.
 We can take loan on FD without any security.
Demerits
 If a person wants to withdraw FD is not getting assumed amount.
 It is not will suitable for monthly salary persons.
 People are not showing much interest because the bankers are deducting
TDS (Tax Deduct Services) against FD
3) Demand draft ( DD)
It is an instrument which is issued by the national banks instead of currency. It

can be used Ancash the cash in any banks.
Merits
 People can carry the DD from one place to another place. Interest of
carrying money for safety.
 Through DD we can pay the few, purchases, necessaries materials from the
shops or marketing.
 It can be used as a carrying successfully and travelling currency.
 It is vary useful to business peoples and non business peoples.
Demerits
 It cannot be transfer easily from one person to another.
 It cannot be encashed the money without an account.
 If a person is wants to take bank DD amount they can be charged certain

amount.
4) Automatic teller machines (ATM).
ATMs are electronic machine which are operated by a customer himself to

deposit or withdraw cash from the bank. for using an ATM card from his
bank. The ATM card is a plastic card, which is magnetically coded. It can be
easily read by the machine.

To operate an ATM card the customer has to inset the card in the machine. He
has to enter the password.
Merits
 ATM provides 24 hour services.
 ATM gives convenience to the bank’s customers.
 ATM reduces the work load of the bank’s staff.
 ATM provides services without any error.
 ATM is very beneficial for travelers.
 ATM may give customers new currency notes.
5) Real time gross settlement system (RTGS).
The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be
defined as the continuous (real-time) settlement of fund transfer individually
on an order by order basis (without netting). ‘Real Time’ means the
processing of instructions at the time they are received rather than at some
later time. ‘Gross Settlement’ means the settlement of funds transfer
instructions occurs individually (on an instruction by instruction basis).
Considering that the funds settlement takes place in the books of the Reserve
Banking of India, the payments are final and irrevocable.
6) Mobile banking.
Bankers will give password using this password customer can operate through
Mobile also
Merits
 We can transfer the fund without visit bank.
 Through this we can pay help phone bill, fees, etc.

Demerits
 In case forget the password or loss the password it cannot easy
 Without knowing the password it is not easy to do.
7) Fully computerized.
It is very useful and accuracy account. There is no need to recognize account

holders CC (customer Code).
Merits
 Interest calculation is very easy through this like simple interest, dividend
interest, capitalization etc.
Demerits
 Lack of maintenance it is very difficult
 Sufficient power (current) facility is not there means it is difficult.ss
8) Key loan facilities.
This loan called as Godden it is giving on commodity only.
9) Insurance facilities.
Bankers will provide insurance facility i.e. vehicle insurance and life
insurance to the shareholders only.
10) Easy money
It is a scheme period of 20 months it is having the quality of RD, FD a same

features of chit fund

Merits
 Members can interest are join the group in any month
 Customers can getting dividend in each month
 People can close their account in at any month there is no define time for
closing account.
Demerits
 There is loan facility against the collected amount
 He can participate only through bidding.
 If you want to withdraw amount within 6 months period account holders

can be charged 5% services charge against his deposit amount.
12) Current account
Only business people can do this account the person wants to do the business he can
operate.
Merits
 For business peoples it is very useful
 Current account can liable to pay the tax in every year.
 Account can be operated with minimum balance of 5 to 10,000 Rs.
 Customer can operate the account only through cheques.
Demerits
 Interest cannot be provided to account holders like SB account
 It is not suitable for common peoples like money employees peoples
 It can be operated only restricted persons.
In this bank the bankers are extended time to taking the deposit amount and
withdrawal of amount for the deposit holder comparatively other co-operative societies
this is the special in this bank.

FUTURE PLANS
 Society planed to establish two or more branches in coming two years.

 Any where banking system in branches.
 To have own premises.
Social Activities
 The bank is providing extra curriculum activities such as
 Blood donation.
 Education funds.
 Cultural activities.

DETAILS OF LOANS

MATRGAGE LOANS:
1) up to 1,99,999, ROI-17%
2) Above 2 lakh ROI- 16%
3) Above 5 lakh ROI-15%
4) Maximum installments 60 months
5) Minimum one surety
VEHICLE LOANS:
1) TWO wheelers ROI-17%
2) Four wheeler ROI-14%
GOLD LOAN:
1. Maximum 75% on appliers valuation
2. ROI-15%
3. Processing fees 1% on loan amount
OD LOAN:
1. Up to 1,99,999/-ROI-17%
2. Rs 2,00,000/- to 4,99,999/-ROI-16%
3. RS 5,00,000/-ROI-15%
4. minimum one surety

LOANS ON FD:
1. ROI offered 2% extra
2. ]maximum limit 80%
PIGMY DEPOSIT LOAN
1. ROI 12%
2. maximum limit 80%
CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION
Capital
TOTAL DEPOSITS IN PSPSSN BANK
YEAR 2013 2014 2015
AMOUNT 3606352.75 3963900.00 4524000.00

TABLE SHOWING TOTAL DEPOSITS
60000000
50000000
40000000
YEAR
30000000
AMOUNT
20000000 3-D Column 13
10000000
0
2013 2014 2015
Analyses: as showing in the above graph in the 2013. 3606352.75 and in the year of
2014. 3963900 and also in the year of 2015. 4524000 as comparing to gradually
improved in total deposit of the bank.
Interpretation: Here above table we can see development in PSPSSN bank,Maski
RESERVES IN PSPSSN BANK
YEAR 2013 2014 2015
AMOUNT 1788588 5382478.88 7907995.34
CHART SHOWING RESERVES

8000000
7000000
6000000
5000000
4000000 YEAR
AMOUNT
3000000
2000000
1000000
0
Analysis: A s we can see in above graph year by year it’s also gradually increased as in the
year of 2013 Rs 1788588 and 2014 Rs5382478.88 and in the last year of 2015 Rs 7907995.34
Interpretation: In the reserves also PSPSSN bank developed frequently.
II Barrowings
TABLE SHOWING OTHER LIABILITIES IN PSPSSN
Year 2013 2014 2015
Amount 2733494 5636624 5667685.00
CHART SHOWING OTHER LIABILITIES

6000000
5000000
4000000
Year
3000000
Amount
2000000
1000000
Analysis: From the above table showing that other liabilities how the responsibilities
changed in the bank as 2013,Rs 2733494, 2014 RS 5636624 and last year 2015 it’s RS
5667685.00.
Interpretation: as seeing above other liabilities critically complicated from 2014’15

decreased.
TABLE SHOWING PROFIT AND LOSS
Year 2013 2014 2015
Amount 2066992 2657041.46 2803075.07
CHART SHOWING PROFIT AND LOSS

3000000
2500000
2000000
1500000 Year
Amount
1000000
500000
Analysis: As seeing the above chart we can come to know that the profit was in the year
of 2013 RS 2066992, 2014 Rs 2657041.46 and in the year of 2015 Rs2803075.07
Interpretation: Every organization is main intention to earn profit and reach the
organization objectives here also PSPSSN bank has got financially good potion.
TABLE SHOWING CASH IN HAND IN PSPSSN BANK
Year 2013 2014 2015
Amount 2307573 1204258 968568
CHART SHOWING CASH IN HAND

2500000
2000000
1500000
Year
1000000 Amount
500000
Analysis: from the above table it’s clearly shows that the cash In hand of PSPSSN
has been improved by in the year of 2013 Rs 2307573 in the year of 2014 RS 1204258
and the last 2015 RS 968568
Interpretation: As compare to last year operating expenses of current year has been
sharply increased it is efficiency of the organization in PSPSSN bank, Maski.
TABLE SHOWING BALANCE WITH BANK
Year 2013 2014 2015
Amount 6848403 6021588.21 6513433.98
CHART SHOWING BALANCE WITH BANK

7000000
6000000
5000000
4000000
Year
3000000 Amount
2000000
1000000
Analysis: from the above graph shows that year by year has been sharply increased by
year of 2013,6848403,2014,6021588.21 and 2015, 6513433.98.
Interpretation: hence it indicates the performance of bank balance is well and good
throughout the study period of the PSPSSN bank.
Investments
CHART SHOWING LOANCE AND ADVANCES
Year 2013 2014 2015
Amount 52305454 71727127.14 67163639.28
SHOWING LOANCE AND ADVANCES

80000000
70000000
60000000
50000000
40000000 Year
Amount
30000000
20000000
10000000
0
Analysis: from the above table it denotes the investments in PSPSSN bank has been
substantially increased by from the year of 2013,RS 52305454 and 2014,RS 71727127.14
and 2015,Rs67163639.28
Interpretation.: As compare to the last year investment in PSPSSN bank

proportionately increased in the know of investors in this bank.
CHART SHOWING FIXED ASSETS
Year 2013 2014 2015
Amount 648008 948199 920294
SHOWING FIXED ASSETS

1000000
900000
800000
700000
600000
500000 Year
Amount
400000
300000
200000
100000
0
Analysis: the graph it clearly shows that fixed assets of PSPSSN bank is maintained
constant level during the following years2013,Rs 648008 ,2014,Rs 948199 ,and last year
2015RS 920294.
Interpretation: as compare to the last year increased in the fixed assets hence it has
shown efficiency of the PSPSSN bank during the period.
CHART SHOWING OTHER ASSETS

Year 2013 2014 2015
Amount 49843 1217044 218544.60
SHOWING OTHER ASSETS

Analysis: from the above graph shows that other assets of PSPSSN bank has been
sharply increased by year 2013 RS,49843. 2014, Rs1217044 and 2015,218544.60
Interpretation: hence the it indicate performance of the PSPSSN bank is well & good
as compare to previous years
BALANCESHEET AS ON 31st MARCH,2014
Liability Assets
PARTICULARS SCH 31st mar PARTICULARS SCH 31ST MAR
2014 2014

Authorized capital 1 Cash in hand 13 1204258.00
Capital 2 3963900.00 Balance with bank 14 6021588.21
Reserves 3 5382478.88 Investments 15 7586152.00
Deposites 4 71064324.01 Loan and advances 16 71727127.14
Borrowings 5 0.00 Fixed asset 17 948199.00
Other liabilities 6 5636624.00 Other asset 18 1217044
Profit 7 2657041.46 Loss 19
Total 88704368.35 Total 88704368.35
BALANCESHEET AS ON 31st MARCH,2015
Liability Assets
PARTICULARS SCH 31st mar PARTICULARS SCH 31ST MAR
2015 2015
Authorized capital 1 Cash in hand 13 968568.00
Capital 2 4524000.00 Balance with bank 14 6513433.98
Reserves 3 7907995.34 Investments 15 7608356.00
Deposites 4 62490080.45 Loan and advances 16 67163639.28

Borrowings 5 0.00 Fixed asset 17 920294.00
Other liabilities 6 5667685.00 Other asset 18 218544.60
Profit 7 2803075.07 Loss 19
Total 83392835.86 Total 83392835.86
CHAPTER-V
FINDINGS &
SUGGESIONS &
CONCLUSION
Findings:
1. The total business of bank increased during year by year.
2. Co-ordination among the employees is very good.
3. The bank will also provide loan for the self employed persons.
4. Bank will providing to the loans such as, loan on deposits ,gold loans, staff salary
loan, vehicle loan, housing loan, business loan, etc..
5. They provide ATM facility through AXIS BANK
6. Profit is not a main intention of the bank but giving more services to the society by
providing various financial services.
7. The responding to the customers is excellences

Suggestions:
After seeing of PUJJYA SHARANABASAVESWARA PATTINA SOUHARDA

SAHAKARI Ltd no doubt the bank moving effectively and efficiently in all the cases, it
will not be worth in giving any specific suggestion because the banks management is
quite good.
But still after my detailed study, I wish to suggest a few things which I have
noticed during the study. Those are as follows:
1. The bank should try to increase the rate of interest for the deposit of the customers. It
will increase the investors.
2. Bank should try to give the clear information about deposits and loans because of most
the customers are uneducated in our country.
3. The bank should utilize the new advanced technology and enter new markets this
increase new profit opportunities.

4. Bank should maintain close interaction with the borrowers. This would help to ensure
timely repayments.
Conclusion
Innovations in Banking System in Pujjya Sharanabasaveshwara Pattina Souhardha Sahakari Ni in

Maski. Is very essential l in every organization to accept the deposits and lending the money to
customers? Without financial sources banks are cannot run their financial activities in bank.
By accepting the finance from financial sources bank financial position will increase, when it is
increase they should try to develop their customer’s life in economically by providing loans in
less interest. Maski Pujjya Sharanabasaveshwara Pattina Souhardha Sahakari Ni. in Maski. Will
give most preference to business loans because this area peoples depends on business, and
bank should charge some percent interest on that loan by accepting that interest they can
improve their financial position.
Finally innovations in banking system are much needed in every institution and person to do any
activities in society.

Bibliography
 Financial statement of past three years.

 Pujjya Sharanabasaveshwara Patina Souhardha Sahakari Ni.Bank
booklets.

ANNEXURE
1. When the PSPSSN was started

Ans: 11th February 2008
2. What is mean by Innovation
Ans: something new invention in the market and society.
3. Expand ATM
Ans: Automatic teller Machine.
4. Expand NEFT
Ans: Net Electronic Fund Transfer
5. Expand RTGS
Ans: Real Time Gross settlement.
6. What is Devanampriya Cash Certificate?
Ans: It is a double money scheme.

7. Who is the father of the co-operative society?
Ans: Siddanagowdwa kanaginahal.
8. Who is the president of PSPSSN
Ans: Andanappa Gundalli.
9. What are the social activities of PSPSSN
Ans: Blood donation.
Education funds.
Cultural activities
10. What is the interest rate gold loan
Ans: 15%.
11. Special facilities of PSPSSN
Ans: Savings bank account
Fixed deposit
Demand Draft
ATM
RTGS and etc.
12. What is the interest rate of pigmy deposit
Ans: 12%.
13. What is the principle of co-operative society?

Ans: one for all and all for one.
14. What is mean by loan?
Ans: loan is finance or large amount it given on a definite purpose and payable on
installment
15. What is the main difference between Savings bank account and current account
Ans: In Sb account bankers will give or charge minimum interest rate 3-4%
But in Current Account interest cannot be provide.
16. What is the main future plan of PSPSSN
Ans: Society planed to establish two or more branches in coming two years.
17. According to PSPSSN bank in which source bank was used effectively in bank?
Ans: Public deposit
18. What are the scheme of demand deposit
Ans: savings bank account and current account.



Chapter-I: Innovation in Banking System of Pujjya Sharanabasaveshwara Co-Opeartive Society Maski

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Chapter-I: Innovation in Banking System of Pujjya Sharanabasaveshwara Co-Opeartive Society Maski

Caricato da

Copyright:

Formati disponibili

Innovation in banking system of Pujjya Sharanabasaveshwara co-opeartive society Maski

Department of Commerce P.G Centre, Raichur. Page 1

recent platinum jubilee celebration of Reserve Bank India, as encouraged banks to be

2. Investment and innovation in technology will result in further advancement in

Department of Commerce P.G Centre, Raichur. Page 2

4. RBI’s recent directive on payment of interest on daily balance maintained in

5. Continuous innovation on the product offerings by banks is paramount to

Department of Commerce P.G Centre, Raichur. Page 3

7. Smart cards embedded with microprocessors or memory chips will become

ELEMENTS OF FINANCIAL SYSTEM

Department of Commerce P.G Centre, Raichur. Page 5

Unorganized market Organized market

Moneylenders Indigenous bankers

Treasury bill market

Department of Commerce P.G Centre, Raichur. Page 6

Unorganized market Organized market

Moneylenders Indigenous bankers

Treasury bill market

About Indian banking system

A bank is a financial institution and a financial intermediary that accepts deposits

Department of Commerce P.G Centre, Raichur. Page 8

Role of banks in economic development

Department of Commerce P.G Centre, Raichur. Page 9

In India, as in many developing countries, the commercial banking sector has

Besides institutionalizing savings, the banking sector has contributed to the

In reviewing the strengths and weaknesses of these banks, the Committee

Many of the recommendations of the Committee especially those pertaining to

Current status of banking industry

A commercial Bank performs all kinds of banking functions such as accepting

Department of Commerce P.G Centre, Raichur. Page 11

Foreign Exchange Banks

According to the Indian Enquiry Committee, “Indigenous banker is a person or a

Department of Commerce P.G Centre, Raichur. Page 12

The Central Office of the Reserve Bank was initially established

Department of Commerce P.G Centre, Raichur. Page 13

Department of Commerce P.G Centre, Raichur. Page 14

The Foreign Exchange Management Act from 1999 came into force in June

The Security Printing & Minting Corporation of India Ltd., a merger of nine

 Formulates implements and monitors the monetary policy.

Regulator and supervisor of the financial system:

 Prescribes broad parameters of banking operations within which the country’s

 Regulator and supervisor of the payment systems

o Authorizes setting up of payment systems

o Lays down standards for operation of the payment system

o Issues direction, calls for returns/information from payment system operators.

Manager of Foreign Exchange

 Manages the Foreign Exchange Management Act, 1999.

 Performs a wide range of promotional functions to support national objectives.

Department of Commerce P.G Centre, Raichur. Page 16

Central Board of Directors

Cash Reserve Ratio (CRR)

Statutory Liquidity Ratio (SLR):

Department of Commerce P.G Centre, Raichur. Page 17

Capacity to grant loans and advances, thus it is an anti-inflationary impact. A

In well-developed economies, central banks use open market operations--buying

INNOVATION IN BANKING SYSTEM

Innovation for the financial sector

Department of Commerce P.G Centre, Raichur. Page 18

Supporting Modern Delivery Channels

Department of Commerce P.G Centre, Raichur. Page 19

Core plus embanking is the next generation of internet banking. It is a comprehensive,

SMS and email notifications

Department of Commerce P.G Centre, Raichur. Page 20