CHAPTER ONE

INTRODUCTION
INTRODUCTION TO BANK

A bank is a financial institution that provides banking and other financial services
to their customers. A bank generally understood as an institution which provides
fundamental banking services such as accepting deposits and providing loans. The
word bank has been derived from Greek word BANQUE which means a bench.
Bank means The accepting of deposits of money from the public for the purpose
of lending or investment which are repayable on demand or otherwise and
withdrawable by cheque, draft, order or otherwise.

Banks are subset of the financial service industry. A banking system also referred
as a system provided by the bank which offers cash management services for
customers, reporting the transactions of their accounting and portfolios throughout
the day. Most banks operate under a system known as fractional reserve banking
where they hold only a small reserve of funds deposited and lend out the rest for
profit.

The banking system in India should not only be hassle free but it should be able to
meet the new challenges posed by the technology and any other external and
internal factors.

For the past three decades, Indias banking system has several outstanding
achievement to its credit. The banks are the main participants of the financial
system in several facilities and opportunities to their customers. All the banks
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safeguards the money and valuable and provide loans, credit and payment services
such as checking accounts, money order and cashiers cheques.

The banks also offer investment and insurance products. As a variety of models for
cooperation and integration among finance industries have emerged some of the
traditional distinction between banks, insurance companies and securities firms
have diminished. In spite of these changes, banks continue to maintain and perform
their primary role-accepting deposits and lending funds from these deposits.

INTRODUCTION TO FACILITIES PROVIDED BY BANKS TO

CHILDREN

Every parent aspires to give the best of everything to her/his ids. Every parent
dreams that her/his kids get the best education in the world and her/his wedding
should not be less than any other Big Fat Indian Wedding and it should be one of
the most talked about event in town. Parents do everything it takes to accomplish
this dream of theirs. So the moment kid is born parents start investing for the kids
education and marriage.

Parents explore various options to invest for their kids education and marriage
which may include investment in direct equity shares, mutual funds, real estate,
child insurance plans, fixed deposits, National Saving Certificate, Public Provident
Fund and Government Bond etc. Parent make sure no investment avenue is left
unexplored when it comes to choosing an investment option for their kids future.
They make sure their kid get the best of everything.

Children are the future of the country. You never know what lies the future.
Irrespective of the type of the dream the parent sees, I will surely agree that all
dreams come from with a price tag. Add to it inflation and other financial
commitments and you will realize that you need nothing less than a fortune to
ensure your childs bright future. It aims to do exactly that by helping you create a
financial corpus to meet your childs future needs.

About the Report

Title of the study:- The present study is titled as A Project report on
facilities provided by bank to children. The study is made with special
reference to ICICI Bank, Kalyan And SBI, Kalyan.

Objective of the study:- The following are the objective of the study
To make comparative study of facilities provided by bank to children
by ICICI and SBI.
To study the problems faced by customers in obtaining the children
plan.
To gain Familiarity with a Phenomenon.
Period of the study:- The period of the present study is from oct 2015
Limitations of the Study:- The present study has got all the limitations of
case study method.
Data and Methodology:- For the purpose of the present study taken
primary data and secondary data. In the primary data, I had visited ICICI
bank and SBI bank to collect information of children plan provide by their
banks. In the secondary data, I had referred books, newspaper to collect
information.

CHAPTER TWO
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COMPANY PROFILE
ICICI

ICICI bank limited is an Indian diversified financial company headquartered in

Mumbai, Maharashtra. It is the second largest bank in India by assets and third
largest by market capitalization. The bank currently has subsidiaries in the United
Kingdom, Russia and Canada branches in United States, Singapore, Bahrain, Hong
kong, Srilanka, Quatar and Dubai International Finance Centre and representative
office in United Arab Emirates, China, South Africa, Bnagladesh, Thailand,
Malaysia and Indonesia.

Our UK subsidiary has established branches in Belgium and Germany. ICICI

banks equity shares are listed in India on Bombay Security Exchange and The
National Stock Exchange of India Limited and its American Depository
Receipts(ADRs) are listed on the new York Stock Exchange(NYSE).

History

ICICI bank was established in 1996 by the Industrial Credit Investment

Corporation of India, an Indian financial institution as a wholly owned subsidiary.
The parent was formed in 1955 as a joint venture of the World Bank. ICICI bank
launched internet banking operation in 1998. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to a
diversified financial services group, offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE. In 2000, ICICI
bank become the first Indian Bank to list on the NYSE with its five million
American Depository shares issue generating a demand book 13 times the offer
size.

DEVELOPMENT

ICICI bank is Indias second largest bank with total assets of Rs. 4,736.47
Billion(US$ 93 billion) at March 31, 2012. And profit after tax Rs. 64.65
Billion(US$1,271 Million) for the year ended March 31, 2012.The bank
positioning itself at the leading edge of technology and is coming out with various
technologies cards, smart cards and online e-commerce. The bank has already
launched its e-banking services and mobile banking for its customers as value
added services. The bank has put in place 24 hours customer care centre enabling
secure online banking and information services. The bank has network at 2,757
branches and 9,363 ATMs in India and has presence in 19 countries including
India. ICIC Bank is one of the big four banks of India, along with State Bank of
India, Punjab National Bank and Bank of Baroda.

SBI

State Bank of India (SBI) is the largest banking and financial services company in
India by revenue, assets and market capitalization. It is a state-owned corporation
with its headquarters in Mumbai, Maharashtra. The bank traces its ancestry to
British India, through Imperial Bank of India to the founding 1806 of the bank of
Calcutta, making it the oldest commercial bank in the Indian Subcontinent.

Bank of Madras merged into the other two presidency banks- Bank of Calcutta and
bank of Bombay to form the Imperial bank of India , which in turn became the
State Bank of India. The government of India nationalized the Imperial bank of
India in 1955, with the Reserve Bank of India taking 60% stake, and renamed it the
State bank of India. In 2008, the government took over the stake held by the
Reserve Bank of India.

SBI has been ranked 285th in the Fortune Global 500 rankings of the worlds
biggest corporations for the year 2012. SBI is a regional banking behemoth and is
one of the largest financial institutions in the world. It has a market share among
Indian commercial banks of about 20% in deposits and loans.

History

The roots of the SBI lie in the first decade of 19 th century, when the Bank of
Calcutta, later renamed the Bank of Bengal was established on 2 June 1806. The
Bank of Bengal was one of three Presidency Banks, the other two being the Bank
of Bombay(Incorporated on 15 April 1840) and the Bank of Madras(Incorporated
on 1 July 1843). All three Presidency banks were incorporated as joint stock
companies and were the result of the royal charters. These three banks received the
exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right
they retained until the formation of the RBI. The Presidency banks amalgamated
on 27 January 1921, and the re-organized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint stock company.

Pursuant to the provisions of the SBI Act of 1955, the RBI, which is Indias central
bank, acquired a controlling interest in the Imperial Bank of India. On 30 April
1955, the Imperial Bank of India became the State Bank of India. The government
of India recently acquired the Reserve Bank of Indias stake in SBI so as to remove
any conflict of interest because the RBI is the countrys banking regulatory
authority.

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In 1959, the government passed the State Bank of India Act, which made eight
state banks associates of SBI. A process of consolidation began on 13 September
2008, when the State Bank of Saurashtra merged with SBI. SBI has acquired local
banks in rescues. The first was the Bank of Behar(est. 1911), which SBI acquired
in 1969, together with its 28 branches. The next year SBI acquired National Bank
of Lahore(est.1942), which had 24 branches.

Five years later, in 1975, SBI acquired Krishnram Baldeo Bank, which had been
established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao
Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the
Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the bank of Cochin in Kerala, which had 120 branches. SBI was the
acquire as its affiliate, the State Bank of Travancore, already had an extensive
network in Kerala.

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DEVELOPMENT

As of March 2012, it had assets of US$ 360 billion and 14,119 branches, including
173 foreign offices in 37 countries across the globe. Including the branches that
belong to its associate banks, SBI has 21,500 branches. SBI provides a range of
banking products through its vast network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). The State Bank Group
has the largest banking branch network in India. SBI has 14 local head offices
situated at Chandigarh (Punjab & Haryana), Delhi, Lucknow (Uttar Pradesh),
Patna

(Bihar)

Kolkata

(West

Bengal),

Guhawati

(North

East

Circle),

Bhuwaneshwar (Orissa & Chattisghad), Hyderabad (Andhra Pradesh), Chennai

(Tamil Nadu), Trivendram (Kerala), Banglore (Karnataka), Mumbai (Maharashtra),
Bhopal (Madhya Pradesh& Ahmedabad (Gujarat) and 57 zonal Offices that are
located at important cities throughout the country.

The State Bank of India is the 29 th most reputed Company in the world according
to Forbes. Also, SBI is the only bank featured in the coveted top 10 brands of
India list in an annual survey conducted by Brand Finance and The Economic
Times in 2010. The state Bank of India is the largest of the Big four Banks of
India, along with ICICI Bank, Punjab National Bank and HDFC Bank- its main
competitors.

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CHAPTER 3
COMPARATIVE STUDY
ICICI YOUNG STAR ACCOUNT

The ICICI Young Stars Accounts a special bank account developed for children. It
is brought to you by ICICI bank to help the parents teach and educate their children
about importance of savings for future, overall money management, how to
manage their personal finance independently and responsibly. It is an excellent
product to inculcate saving habits in children. It can be accessed and operated
online.

ICICI Young Star Account can be called as the kids bank account or saving
account for children. Since it has been made especially for children, the ICICI
Young Star Account web page is very attractive and comes with many fun pages
that helps in developing interest and enhance knowledge of the children about
saving. Along with this, the web page also contains pages about Internet Banking.
Children can transfer their pocket money directly to their savings account or shop
online at Young Stars Page. Hence, it facilitates both learning and develops interest
of your children towards financial planning.

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This account can be opened for children under the age group of 1 day-18 years. It
is important for the parent/guardian to hold an ICICI Saving Bank Account.
International debit card is issued to the parent or guardian upon specific request. To
open the ICICI Young Stars account, the parent should be an existing consumer of
the bank and hold active ICICI savings bank account. If not, both the accounts can
be opened simultaneously. Quarterly Average Balance required for ICICI Young
Star Saving Account is just Rs.2,500/-. ICICI Young Stars account can be opened
typical saving account or fixed account or a recurring deposit account. Standing
instructions can be provided to transfer specific sum of money every month
towards recurring deposit from the ICICI Young Star Savings account or the parent
account.

Similarly, the fixed account is open to add additional deposit amount and the
interest rates and amount are added on pro-rata basis. At Young Stars, we will
guide your child through the world of banking from checking the childs savings
account balance to guiding through fun zones and special pages on the Internet
Banking channel. It makes banking a pleasure and teaches your child to manage
his or her personal finances through a savings account. You can transfer pocket
money into your childs account. You can even shop with him/her at Young Stars
Shopping page. You can also open a recurring deposit in your childs name.

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Once you are done with your banking, you can access your childs account with
all the fun links to special zone designed to suit your childs area of interest and
also impart knowledge on the current events of the world. ICICI Bank provide
Young Star Account for specifically for children but also provide them education
plan account also.

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Key Features
Open a Kids Savings Account, Fixed Deposit or a Recurring Deposit- the money
deposited grows faster. The deposited money can be moved from savings account
to higher interest earning fixed deposit.
The minimum average balance for a saving account is Rs.2500/- higher rates of
interest than usual rates paid to other savings account.
Free personalized Cheque Book- Free personalized cheque book in the childs
name gives identity to the child.
Internet Banking- Special Internet Banking Facility that allows complete control
over the account-both the guardian and the child can access account online with
separate passwords. Access to special zones and links to related websites for
making Internet Banking a memorable experience.
Free International Debit Card- the amount can be withdrawn in a day can be
decided by the guardian. For children above the age of 7 years with features as
below:
Daily withdrawals limits of Rs.1,000/2,500/5,000
Daily spend limits of Rs.1,000/2,500/5,000
Daily withdrawals and spends up to Rs.5,000 - cash withdrawal at bank is
subjected to approval and with presence of the parent or guardian. The next time
you want to withdraw cash from your ICICI bank Young Stars saving account, just
walk into any banks ATM and use your ICICI Bank ATM-cum-debit card for free.
The above benefit is available to young star savings account holders on

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maintenance of a monthly average balance of more than Rs.10,000/- in the savings

account in a month. The above benefit can be availed in the same month.

Transfer Funds Facility- This is a facility to transfer the money automatically from
the guardians account to the childs account to enable parent to inculcate savings
habit amongst children. Facility of transferring funds from the Young Stars
Accounts to the RD to enable the parents to let their child earn more.

A special Recurring Deposit with additional features as below:

The parent would put forward the desired amount to be earned at the
end of the tenure.
Based on the prevailing rate of interest, the bank staff would then back
calculate the installments to be deposited now till maturity.
Once the child attains the age of 18 years, the account automatically ceased to the
minor account and enjoy the facilities of minor account. However, the parent can
opt for closure of the account even before the child attains the age of 18 years.

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Documentation

The minor can open a normal savings account (operative account) or a

fixed/recurring deposit (non-operative account). Documents of parent/Guardian
applicants must satisfy the following documentation requirement:

Latest Photograph/s of applicant/s

Relationship document
Identity proof
Proof of communication address
Self cheque (if the applicant is not visiting the branch for account opening).
Proof of date of birth of the minor.

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SBI Life Insurance

As a caring parent you would always want your child to get the very best. To
ensure that you fulfill dreams that you may have for your loved ones education,
financial planning for their secured future is very important. At SBI life, we
understood that. Thats why we present you host of child plans so that you can
choose the one of the best that suits your and your childs needs best. Our plans are
as accommodating as you are for your child.
Celebrate Life! SBI Life presents a Child Education Planner that will help you
determine investments you need to make regularly in order to fulfill your little
ones dreams.

SBI Life- Scholar II

A traditional participating plan, SBI Life- Scholar II has guaranteed benefits which
are payable at the regular intervals during the term of the policy. In an unfortunate
event, your nominee would receive full sum assured along with vested bonus, plus
regular guaranteed survival benefit.

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Key Features

Twin benefit if saving for your childs education and securing a bright future
despite the uncertainties of life.

Full risk cover throughout the policy term irrespective of payment of

survival benefits installments.
Option to receive the installments in lump sum at the due date of first
installment of Survival Benefit.

Rebate for Female lives and high Sum Assured.

15 days Free Look Period.

Benefits

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 Guaranteed payment at regular intervals, when the child attains 18 years of

age, the parent has an option of Receiving the sum assured in 4 installments.
Age

Guaranteed Benefit Payment

18 years

25% of sum assured

19 years

25% of sum assured

20 years

25% of sum assured

21 years

25% of sum assured + vested bonus

Receiving the Survival Benefits in a single installment along with

the vested

bonus. Vested bonus is the total amount of bonus accrued till date, under the policy.

Death Benefits: In the event of unfortunate incident of your early death

during the term of the plan, your childs future remains secured in 3 ways:
Child future educational need 25% of sum assured is payable in 4
equal installments when the child attains the age 18 years to 21 years.
This ensures the childs higher educational needs are met.
Immediate Payment: The nominee receives the sum assured along
with the bonus declared until that date.
All future basic premiums need not be paid: Ensuring that your family
is not financially burdened in your absence.

Tax Benefits

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 Tax deduction under Section 80(c) is available. However in case the

premium paid during the financial year, exceeds 10% of the sum assured, the
benefit will be limited up to 10% of the sum assured.
Tax deduction under Section 80(D) is available for premiums paid towards
Dhanvantri Supreme individual Critical Illness Rider.
Tax exemption under Section 10(10D) is available, subject to the premium
not exceeding 10% of the sum assured in any of the years during the term of
the policy.
Tax benefits, are as per the Income Tax laws & are subject to change from
time to time. Please consult your tax advisor for details.

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SBI Life- Smart Scholar

Life begins afresh when you become a parent. Its a joy you never felt and a feeling
you never experienced. When your child takes baby steps towards you, you wonder
what else bliss could be?
Amidst all this divine happiness, theres a new sense of responsibility that fills
your heart. Like you may not really believe that lifes a rose bed or a tender
cushion, but you certainly want it to be for your lovely children. At SBI life, we
understand and we provided you with a flexible and all-encompassing solution
through our SBI Life- Smart Scholar Plan. Choose the one that suits you and your
childs needs best. Our specially crafted Smart Scholar Plan is as accommodating
as you are to your child.

Key Features
Secure your childs future by gaining from the financial market and much
more.

Dual Protection for your family, is case you are not around Payment of base Sum Assured and
Inbuilt Premium Payor Wavier Benefit to ensure continuance of your
benefit.
Accident benefit which includes accidental death benefit and accidental total
and permanent disability benefit, is an integral prat.
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 Free allocation

of units by way of regular Loyalty Additions, giving

periodic boosts to your investments.

Enhanced investment opportunity through 9 varied fund options include P/E
Managed Fund. Index Fund & Top 300 Fund.
Twin benefits of market linked return & insurance benefit.
Liquidity through partial withdrawals.

Benefits

Basic Life Benefit:

In the event of unfortunate death of life assured, a lump sum benefit
equal to higher of the sum assured or 105% of all premiums paid till
date of death will be payable.
If on the date of death, the sum assured is less than 105% of all
premiums paid, the amount in excess of the sum assured will be paid
from your fund by disinvestment of units.
In the event of death of child no sum assured is payable. Life assured
will inform the company regarding the event. In such case he/she can
either continue the policy or terminate the contract. In case of
termination of contract, the fund value (without any surrender
charges), will be payable.
If both the life assured and the child die during the term of the policy
the policy will be automatically terminated and all due benefits will be
paid along with the fund value.
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Maturity Benefit:
On completion of the policy term, maturity benefit i.e. the fund value
shall be paid to beneficiary in a lump sum or as per settlement option,
if chosen. The beneficiary will be the policyholder if he/she survives
OR child, in case of death of the life assured during the policy term.

Tax Benefit:
Tax deduction under Section 80C is available. However in case the
premium paid during the financial year, exceeds 10% of the sum
assured, the benefit will be limited up to 10% of the sum assured.
Tax exemption under Section 10(10D) is available, subject to the
premium not exceeding 10% of the sum assured in any of the years
during the term of the policy.
Tax benefits, are as per the Income Tax laws & are subject to change
from time to time. Please consult your tax advisor for details.

CHAPTER FIVE
CONCLUSION

ICICI BANK PROVIDE BETTER SERVICE THAN SBI BECAUSE

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 ICICI bank has a special account only for children i.e. Young Star Account
whereas SBI do not have a separate account for children. Child plan is
provided by SBI Life Insurance.
ICICI Young Stars Account web page is very attractive whereas SBI Life
Insurance webpage is less attractive.
ICICI Young Stars Account comes with many interest and enhance
knowledge of the children about saving.
In ICICI Young star account, children can transfer their pocket money
directly to their saving a/c or shop online at young stars page.
The minimum average balance for a savings a/c is Rs.2500 in ICICI Young
Stars Account whereas Rs. 50,000 in SBI.
ICICI Young Stars Account provides higher rates of interest than usual rates
paid to the other saving account.

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 ICICI Young Stars Account is a banking service for children in the age group
of 1 day-18 years whereas SBI provides child plan from 0 years-17 years.
ICICI young Stars Account maximum withdrawal limit for self is Rs.50000
per day and for Third party is Rs.15000 per day.

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BIBLIOGRAPHY

Banking and Financial System- V. Nityananda Sarma

WEBILOGRAPHY

http://www.icicibank.com
http://www.statebankofindia.com
http://www.sbilife.co.in
http://vidyagyan.blogspot.in
http://www.lawersclubindia.com

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