Professional Documents
Culture Documents
WHAT IS BANK?
A bank is a financial institution
that accepts deposits and makes loans. The
bank has a unique, characteristic balance sheet
showing long-term assets (loans) offset by
short-term liabilities (deposits). Any other
company would be insolvent with the balance
sheet of a bank. Resolving this mismatch of borrowers’ and savers’ time
horizons is the function of a bank. Bank oversight (i.e. FDIC) tries to reduce
bank failures from the inherent risk. The US bank thus faces vigorous
competition, compelling it to offer a wide range of convenient services such
as taking deposits, issuing checking and savings accounts, lending money,
cashing checks, providing wire transfers, issuing cashiers checks, debit cards
and credit cards, providing safe deposit boxes plus a network of ATMs, and
offering online banking.
Definition of bank:
According to negotiable instrument act 1881defines,
“Bank is financial institution or a person willing to accept deposits from
public repayable on demand or otherwise by cheques or draft and lend or
invest the deposits so accepted on different account.”
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FEDERAL BANK
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2. pan card
4. driving license
Address
(i) Telephone bill
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Function
s
Primary Seconda
Function ry
Function
A. Primary Functions:
These Are The Functions Which Are Compulsory For Every Bank
To Perform. These Are Also Called As The “Main Functions Of A Bank”.
1. Receiving Deposits:
Following are the types of receiving deposits:
• CURRENT DEPOSIT:
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6) Current accounts are cheque operated accounts meant neither for the
purpose of earning interest nor for the purpose of savings but only for
convenience of business hence they are non-interest bearing accounts.
8) As per RBI directive banks are not allowed to pay any interest on the
10) A minimum initial deposit of take. 1000/- shall be required for opening a
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period, chosen by the depositor to suit his purpose & to enable him to
get back the money as & when he needs it. As the date of repayment
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• SAVINGS DEPOSITS
(3.5% INTEREST ON MONTHLY BASIS):
1. The main object of this deposit is to promote savings of people. it is
intended primarily for small savers.
2. There is a restriction on withdrawal from this deposit.
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9. The main advantage of savings bank account is its high liquidity and
safety.
11. Savings bank accounts can also be opened and operated by the minors
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original term of the deposit, interest will be paid at the rate applicable
on the date of deposit, for the period for which the deposit has
remained with the bank. Premature withdrawal is also permissible but
penalty is levied. TDS is not applicable on recurring deposits.
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2. Granting loans:
• Purchase/Construction of House/flat
Eligibility
• Proof of income
Loan Amount
Period
• Residents – Up to 20 years
• Non-residents – Up to 15 years
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Eligibility
Loan amount
Period
• Upto 60 months
Interest
Security
• Co-obligant/Collateral security
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Eligibility
• Individuals Residents & Non-Residents
Loan amount
Period
• Up to 60 Months
Interest
Security
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LOAN)
Eligibility
Loan Amount
• Up to Rs. 25 Lakhs
Period
• Maximum 11 years
Interest
Security
• Co-obligant/Collateral Security
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• Business/Personal/Agriculture
Eligibility
Loan Amount
• Up to Rs.75 Lacs
Period
• 3 months to 12 months
Interest
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Eligibility:
Security:
• Primary : Nil
Interest Rate:
Mode of Repayment:
Method of operation:
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Eligibility Individuals
Period
• Up to 60 months
Security
• Co-obligant/Collateral security
• LG PC – Marketed by LG Electronics
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B. Secondary Functions:
Following are the secondary functions of federal
bank:
• AGENCY FUNCTIONS:
Banks perform certain functions on behalf of their customers.
The banks acts as an agent while performing these services for their
account holders. Federal bank performs following agency functions:
a. Collection:
Commercial banks collect cheque, bills, promissory notes,
dividend, and interest, rent on behalf of their customers. For these
services banks normally charge a nominal amount.
b. Payments:
The bank can also make payments on behalf of their customers
like paying insurance premium, rent, taxes, electricity and telephone
bills, etc. a commission is normally charged for such services.
c.Demat account:
One can open demat account in federal bank and can do buying
and selling of shares.
d.E-banking:
Through e-banking, a customer can operate his bank account
through internet. He can make payments of various bills; he can even
transfer money from one place to another.
e.Income tax consultant:
Commercial banks act as representative or executor of their
clients. It procures tickets and passports of their customers.
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• MOBILE ALERTS:
Now track transactions in your account, as it happens,
across the world. Information are money and this is especially true when it
comes to your banking needs. Thanks to fed alert, you now have timely
information at your fingertips. This alert message service from federal bank
sends important information on your account to you through your mobile
phone irrespective of your mobile service provider. The service is available
across the globe in more than 150 countries & in different networks like
CDMA, TDMA & GSM.
• EMAIL ALERTS:
Being updated on your account details is as easy as
accessing your mailbox. Register with us your email ID and start receiving
alerts right on your desk, wherever you are. You have the freedom to select
the periodicity also and receive daily, weekly or monthly updates on
following:
1 All transactions in account
2 Deposit renewal due dates
3 Loan installment due dates
4 Cheque book issue
5 Standing instruction failure
Register your email ID with your branch today itself & start receiving alerts
in your mail box.
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• FED E-PAY:
We are proud to tell you about the unique bill
payment system in India. The fed e-pay system where you can pay your land
& mobile phone bills from your phone itself or you have the freedom to tell
us to pay your bills as and when due.
Imagine how difficult it is to make a phone bill
payment. You need to take a copy of your bill, you need to remember the
due dates & of course the long wait in the collection centers. Forget all these
things, just register your phone details in your branch & from the next month
onwards your bill payment is the easiest thing in the world.
Visit your branch with a copy of your bill. Ask for
fed e-pay and forget about your bill payments.
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FACILITIES PROVIDED
• ATM FACILITY
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Debit Card?
• Your money remains in the account till you spend it and you continue
to earn interest on it. Details of individual transaction will reflect in your
Bank passbook. Debit information can be forwarded to your mobile phone
as SMS automatically through Fed Alert. You can also access your bank
accounts while you are traveling overseas. No more travelers’ cheques
required.
From time to time, there may be special offers due to which you may
get discounts/ on purchases at shopping malls, restaurants, supermarkets etc
if you pay through your debit card.
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• CENTRALISED TELEBNKING –
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• After entering the account number, the system will give a voice
confirmation of the account number.
• It will now ask to press 1 to confirm or press 2 to redial the account
number.
• Now the system will prompt for PIN (Personal Identification
Number).
• Enter the PIN and wait for the response
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• MOBILE BANKING
BANKING ON WIRELESS
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access code number, which will act as a password to ensure privacy and
security.
FACILITIES AVAILABLE
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• To change access code: PIN followed by 4-digit access code and then
the new 4-digit access code. eg. PIN12346789 (where 6789 is the new
access code selected by the customer).
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• ANYWHERE BANKING
• Cash Remittance
• Cash Withdrawal
• Funds Transfer
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OVERVIEW
The Challenge
The Solution
The Benefit
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