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A REPORT ON

SME BANKING CURRENT ACCOUNT
DEPOSITS DEVELOPMENT OF NEW
PRODUCTS SUGGESTIONS FOR MOBILIZATION
OF CURRENT ACCOUNT DEPOSITS


BY

SHRESHTHA KOSHTA
13BSP1185




IBS BUSINESS SCHOOL





2

A REPORT ON

SME BANKING CURRENT ACCOUNT
DEPOSITS DEVELOPMENT OF NEW
PRODUCTS SUGGESTIONS FOR MOBILIZATION
OF CURRENT ACCOUNT DEPOSITS


BY

SHRESHTHA KOSHTA
13BSP1185

IBS BUSINESS SCHOOL

DATE OF SUBMISSION
13/04/2013





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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not
have been possible without the kind support and help of many individuals and
organization. I would like to extend my thanks to all of them.

I am highly indebted to Mrs. Rachel John (Credit Manager)
for her guidance and constant supervision as well as for providing necessary
information regarding the project and also for her support in completing the
project. I would like to express my gratitude towards my parents and members
of BANK OF BARODA for their kind cooperation and encouragement which
help me in completion of the project.

I would like to express my special gratitude and thanks to
my college IBS BUSINESS SCHOOL and Faculty for giving me such a great
opportunity. I am also very much thankful to my mentor Prof. Mrs Deepika
Dabke ( faculty , IBS Mumbai) for guiding me during my internship.

Last but not least my thanks and appreciation goes to the
people who have willingly helped me out with their abilities in developing the
project.









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TABLE OF CONTENTS
Authorisation (i) 1-2
Acknowledgement (ii) 3
Synopsis (iii)
1. Introduction 5
1.1 Current Deposits 5
1.2 Current Account
2. Advantages 5
3. Disadvantages 6
4. Types of Current Account in Bank of Baroda 6
4.1 Baroda Advantage Current Account
4.2 Baroda Premium Current Account (BPCA) 6
4.3 Baroda Premium Current Account- Privilege (BPCAP) 7
5. Who can open a Current Account? 7
6. How to open a Current Account? 8
7. Pass book/ Statement of Account 8
8. Credits 8
9. Interest 9
10. Closing of an Account 9
11. Signature of the Depositor 10
12. Nomination Facility 10
13. Feature of Current Account Deposit 10
14. Summary of the Internship 12
15. References 13












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CURRENT ACCOUNT DEPOSITS
INTRODUCTION:
CURRENT DEPOSITS: Current Account deposit refers to a deposit to a bank
account or financial institution without a specific maturity date. These types of
Current Deposit account do not earn any interest to the account holder however
they are low cost deposits to the bank as it is available to the bank without any
cost.
CURRENT ACCOUNT: A foundation stone of business relationship.
Current Account means a form of demand deposit maintained by business
organizations for carrying out their day to day financial operations. In the
current account any number of deposits and withdrawals are allowed. The
customer has to maintain a minimum balance of Rs.10000/- in the account and
this account does not earn any interest to the account holder. This is a low cost
deposit to the bank.
ADVANTAGES:
1. Current account is mainly opened by businessmen such as proprietorship
firm, partnership firms, public and private companies, trust, association of
persons etc. that has a large number of daily banking transactions i.e.
receipts and/ or payments.
2. It enables businessmen to carry out their business transactions properly
and promptly.
3. The businessmen can withdraw from their current accounts without any
limit, subject to banking cash transaction tax, if any levied by the
government.
4. Current Account holder can deposit the cash from any other branch by
paying a nominal charge as applicable.
5. It helps businessmen to make a direct payment to their creditors by
issuing cheques, demand drafts or pay- orders, etc.
6. It enables a bank to collect money on behalf of its customers and credit
the same in their customers current accounts.
7. It enables the current account holder to obtain overdraft facility.
8. The creditors of account holder can get credit worthiness information of
the account holder through inter-bank connection.
9. It facilitates the industrial progress of the country. Without its help,
businessmen would face difficulties in running their businesses.
10. It has the facilities of internet banking and mobile banking to carry out
important business transactions with ease and quickly.
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11. It also provides various other advantages :
deposit and withdrawal of money (cash) at any location,
multi-location funds transfer,
electronic fund transfer,
periodical (monthly, quarterly, yearly) e-mail or download of
bank statements in various formats like .XLS, .TXT, .PDF,
etc.,
support from customer care executive.
DISADVANTAGES:
1. Money held in a Current Account does not earn any interest.
2. Banks collect some service charges from Current Accounts.
3. Current Account holders have to maintain a minimum balance of
Rs.10000/- in their account else it attracts minimum balance charges.

TYPES OF CURRENT ACCOUNT IN BANK OF BARODA:
There are basically three type of Current Account in Bank of Baroda
Baroda Advantage Current Account
Baroda Premium Current Account (BPCA)
Baroda Premium Current Account Privilege (BPCAP)

1. BARODA ADVANTAGE CURRENT ACCOUNT:

Minimum Quaterly Average Balance
(QAB)
Rural Rs. 1000/-
Semi- Urban Rs. 1000/-
Urban/Metro Rs. 10000/- for
individual as well as
non-individuals
Minimum Balance Charges Rs. 500/- per quarter + service tax for
not maintaining quarterly average
balance
Premature Closure Charges ( if
account is closed within a year)
Individuals Rs. 100/-
+service tax
Others Rs. 100/-
+service tax

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2. BARODA PREMIUM CURRENT ACCOUNT (BPCA)
The Baroda Premium Current Account can be opened by any business customer
from individuals to partnerships and limited companies to large corporate but
excluding banks and financial institutions.
Minimum Quarterly Average Balance
(QAB)
Rs. 250000/-
Minimum Balance Charges Rs. 1000/- +service tax for not
maintaining quarterly average balance
Premature Closure Charges ( if
account is closed within a year)
Rs. 1000/- +service tax

3. BARODA PREMIUM CURRENT ACCOUNT- PRIVILIGE
(BPCAP)

Minimum Quarterly Average Balance
(QAB)
Rs. 75000/-
Minimum Balance Charges Rs. 600/- +service tax for not
maintaining quarterly average balance
Premature Closure Charges ( if
account is closed within a year)
Rs. 600/- +service tax


WHO CAN OPEN A CURRENT ACCOUNT?
(i) Any person competent to contract and satisfactorily introduced to the
Bank may open an account in his/her own name. Account may be
opened in the names of two or more persons and may be payable to :
Any one or more of them
Any one or more of the survivors
Either to anyone or more of them or the survivors jointly, or survivor
former or survivor or latter or survivor, subject to the condition that
the second named account holder will be entitled to the balance lying in
the account only on the death of the former
(ii) Accounts can be opened for the sole proprietorship firms, partnership
firms, private limited and public limited companies, Joint Hindu
families, trusts, clubs, associates etc. satisfactorily introduced to the
bank and on fulfilling laid down procedures and tendering required
credentials.
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(iii) Accounts can be opened by the minors of 14 years and above, if able
to read and write, in their sole names.

HOW TO OPEN A CURRENT ACCOUNT?
(i) Application to open an account must be made in Banks prescribed
account opening form. All signatories are required to come in person
to the bank to sign the account opening form. Required credentials
depending upon the type of constitution of the prospective
accountholder are to be submitted to the bank.
(ii) Each applicant will be required to sign a declaration to the effect that
he has read and accepted Current Account Rules. A copy of the rules
is displayed on the Notice Board.
(iii) A recent passport size photograph of every account holder, proprietor/
partner/ directors of the company/ office-bearers/ trustees and other
officials authorized to operate upon the account, is required it be given
to the bank.
(iv) The account is to be introduced by an existing current/ cash credit
account holder having minimum six months old satisfactorily and
actively conducted KYC Compiled account with the Bank.

PASS BOOK/STATEMENT OF ACCOUNT
(i) Computer generated statement of account showing a record of all
sums paid in and all cheques drawn is issued to each account holder
on monthly basis.
(ii) It should be understood that although entries may have been made to
the credit of an account and such entries initialed by an officer in the
pass book, should such entries be made up of cheques which have to
be collected, the amount they represent is not available for drawing,
until the proceeds have been realized by the Bank..

CREDITS:
(Irrespective of Area) Quaterly Average Balance (QAB): Rs. 10000/- for
individual as well as for non individual.
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(i) Current accounts may be opened by individuals as well as for non
individual with minimum initial deposits of Rs.10000/- irrespective of
Area.
(ii) All payments made in the account should be accomplished by a
paying-in-slip, which is supplied free of charge to customers. Separate
paying-in-slip should be used for
(a) Cash
(b) Local cheques/ DWs etc. drawn on our branches
(c) Local cheques/ DWs etc. drawn on other banks
(d) Outstation cheques, DWs, draft etc. drawn on outstation centers where
bank has no branches, will be collected at the responsibility of the
constituents and the Bank will not be liable for any act, negligence or
insolvency of any agent.
(iii) Cheques etc. on clearing banks, if received after specified time will be
cleared on the next working day. Local bills payable otherwise than on
demand , should be sent one clear day atleast before due date. Demand
bills (hundies) should be lodged not later than specified time of
presentation on the same day. Hundies lodged on Saturdays will be
presented on the next working day.
(iv) No cheques will be accepted for collection in newly opened accounts
till the confirmation of introducer is received by the branch, in
accounts where the introducer has not come in person to the branch for
introducing the account.
INTEREST
No interest is payable on credit balance in current account, including those of
Banks staff members as per RBI directives
Simple interest at the rate of Savings Bank shall be paid on credit balance of
deceased individual accountholders, from the date of his/her death of payment
to legal heirs.
In case of death of sole proprietor, interest will similarly be paid in the account
of the sole proprietary firm.

CLOSING OF AN ACCOUNT
(i) The account holder must give in writing his/her intention to close the
account. In case of partnership firm and joint account, the letter should
be signed by all the partners and all the account holders, respectively.
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In case of limited companies, a board resolution authorizing closure of
the account is required.
(ii) The unused cheque leaves, Debit Cards, if any, given to the depositor
should be returned to the Bank.
(iii) Latest statement of the account should also be presented.
(iv) Bank shall recover Rs.75/- (+ service tax) from the Individual or Rs.
100/- (+service tax) from Non-Individual if the account is closed
within a year.

SIGNATURE OF THE DEPOSITOR
(i) Every accountholder will be required to give specimen of his/her
signature for record in presence of an authorized officer of the Bank at
the time of opening of the account.
(ii) All withdrawal instructions, cheques and letters to the Bank must be
signed strictly in accordance with the specimen signature recorded at
the branch.

NOMINAL FACILITY
The individual accountholder/s and Sole Proprietorship concern will have the
facility to make, vary or change nominations.

FEATURES OF CURRENT ACCCOUNT DEPOSITS:
The main features of Current Account are as follows:
1. Current bank accounts are operated to run a business.
2. It is a non-interest bearing bank account.
3. It needs a higher minimum balance to be maintained as compared to the
savings account.
4. Penalty is charged if minimum balance is not maintained in the Current
Account.
5. It charges interest on the short-term funds borrowed from the bank.
6. It is of a continuing nature as there is no fixed period to hold Current
Account.
7. It does not promote saving habits with its account holders.
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8. Banker requires KYC ( Know Your Customers) norms to be completed
before opening a current account.
9. The main objective of current bank account is to enable the businessmen
to conduct their business transactions smoothly.
10. There is no restriction on the number and amount of deposits.
11. There is also no restriction on the number and amount of withdrawals
made, as long as the current account holder has funds in his bank account.
12. Generally, bank does not pay any interest on current account. Nowadays,
some banks do pay interest on current accounts.





















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SUMMARY of INTERNSHIP

1
ST
WEEK During the 1
st
week of internship I learned the basics of banking,
work done in a Bank of Baroda, types of accounts, customer
interaction last but not least understood the work place environment.

2nd WEEK- In second week I got an exposure to SME Banking, got a gist of
types of SME Loans and proposal letters and also analyzed Stock
Statements.

3
rd
WEEK-In the start of 3
rd
week I learned all about Current Accounts, how to
open a current account, what all documents needed, at this time I
was basically dealing with the verification of the documents and helping the
customers in opening a current account. Also I got an exposure to the Savings
accounts their opening and maintainance, along with this I have also get
customer exposure and learned interacting customers, customer behavior and
also giving customer service.

4
th
WEEK- Now in 4
th
week I am getting an in-depth knowledge of proposals
given to Bank by customers.






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REFERENCES
1. http://www.deposits.org/dictionary/term/current-deposit/
2. http://www.bankofbaroda.co.in
3. http://kalyan-city.blogspot.com/2011/02/what-is-current-bank-account-
its.html
4. https://in.answers.yahoo.com/question/index?qid=20101115065921AAm
Lxas