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NEED HIERARCHY & FINANCIAL PLANNING

5. SELF ACTUALIZATION

5. TAX AND ESTATE/LEGAL PLANNING

4. SELF ESTEEM

4. RETIREMENT PLANNING

3. SOCIAL NEEDS

3. PLANNING FINANCIAL GOALS

2. SECURITY NEEDS

2. RISK MANAGEMENET

1. BASIC NEEDS

1. CONTINGENCY PLANNING

NEED HIERARCHY & FINANCIAL PLANNING 1. Contingency Planning: SB No Frills/Silver/ Gold CD Classic/ Super Online Banking/ SMS/Email Alerts Debit card/ Credit Card 2. Risk Management: Jeevan/ Vidya Suraksha/ Liability Insurance HealthCare Plus, Personal Accident Insurance, Asset Insurance, NRI Shield All LifeInsurance Products thro LIC: Life/ Endowment/Money Back/ Market Plus/ BimaGold All General Insurance Products thro USGI All Risk/ Fire/ Marine/Farmers/ Householders/ Shopkeepers/ Electrical Equipment/ Plant & Machinery DD/ Cheque/ NEFT/RTGS Utilities Payment/ Bill Payment Clean Loan

3. Planning for Financial Goals: a) Fixed Deposits: FD/SFD/ RD/ RD Gold/ RDP/ Easy deposit/ ED/ WD/VS/ Tax Saver b) Gold retail 4/8/20/50 gm c) Retail Loans: Pushpaka / Easy trade/ Sanjeevini/ Liquirent/ CC against jewellery Home dcor/ Home improvement Subhagruha/ NRI Home loans/ Sahayika/ Vidya Jyothi

d) Mutual funds/ ULIPs- SIP/ Bulk investment, Equity trading-Demat a/c

4. Retirement Planning: FD Schemes: Vardhan scheme/ varshik Aai Yojna PF/ Gratuity/ Pension Accounts Pensioners loan scheme Mutual funds and insurance related schemes

5) Tax and Estate Planning: IOB Tax saver TTD Deposit Charity/ Sponsorship facilitation Participation in CSR- Sampoorna/ Shakti/ Microfinance

Project Report "Banking System" in India Introduction of Banking


Banking regulation Act, 1949, defines banking as accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demands or otherwise and with draw able on demand by cheques, draft or order otherwise.

Functions of Commercial Banks :


1. To change cash for bank deposits and bank deposits for cash. 2. To transfer bank deposits between individuals and or companies. 3. To exchange deposits for bills of exchange, govt. bonds, the secured and unsecured promises of trade and industrial units. 4. To underwrite capital issues. They are also allowed to invest 5% of their incremental deposit liabilities in shares and debentures in the primary and secondary markets. 5. The lending or advancing of money either upon securities or without securities.

6. The borrowing, raising or taking of money. 7. The collecting and transmitting of money and securities. 8. The buying and selling of foreign exchange including foreign bank notes.

Banking scene in India


The banking sector in India is passing through a period of structural change under the combined impact of financial sector reforms, internal competition, changes in regulations, new technology, global competitive pressure and fast evolving strategic objectives of banks and their existing and potential competitors. Until the last decade, banks were regarded largely as institutions rather akin to public utilities. The market for banking services were oligopolies and Centralized while the market place was regulated and banks were expected to receive assured spreads over their cost of funds. This phenomenon, which was caricatured as 36-3 banking in the united states, meaning that banks accepted deposits at 3%, lent at 6%, and went home at 3 p.m. to play golf, was the result of the sheltered markets and administrated prices for banking products. Existence of entry barriers for new banks meant that competition was restricted to existing players, who often operated as a cartel, even in areas where the freedom to price their products existed. The market place began to change for banks in India as a result of reforms of the financial sectors initiated in the current decade. On account of policy measures introduce to infuse greater competitive vitality in the system, the banking has entered in to a competitive phase. Competition has emerged not only from within the banking system but also from non-banking institutions. Lowering of entry barriers, deregulation of interest rates and growing sophistication of customers have made banking far less oligopolistic today. Introduction of capital adequacy and other prudential norms, freedom granted to enter into new turfs and greater overlap of functions between banks and non-banks have forced banks to get out of their cozy little world and think of the future of the banking.

Emerging Environment of Banking in India


Full convertibility of rupee leading to free mobility of capital, which will mean virtual collapse of the national borders for trade and capital flows. Greater coordination between monetary, fiscal and exchanged rate policies for achieving the goals of faster and sustainable economic growth, macro-economic stability and export promotion. Close integration of various financial markets such as money market, capital market and forex market. Removal of lowering of existing barriers of competitiveness, which are present today in the form of quantitative instructions on certain imports protective custom duties, reservation of certain utilities for the public sector.

Growing privatization and commercialization infrastructure sector. Today, Banks customers are better informed, more sophisticated and discerning. They also have a wide choice to choose from various banks and non-bank intermediaries. Their expectations are soaring. This is particularly true for banks corporate clientele but also applies to customers from personal segment. This is changing profile of customers call for a shift from product-based approach to customers-based approach. A bank aiming at maximizing customer value must, of necessity, plan for customized products. A combination of marketing skills and state-of-the-art technology should enable to bank in maximizing its profits through customer satisfaction. In the next millennium banks will have to be more and more cautions about customer service, profitability, increased productivity, to keep face with changing banking scenario. As banks in India prepare themselves for the millenium these are the shifts in the paradigm they are likely to experience. The 21st century may see the dawn of DARWINIAN BANKING. Only the banks could fulfill the demands of markets and changing items would survive and prosper.