Escolar Documentos
Profissional Documentos
Cultura Documentos
SUBMITTED BY
GUPTA AASHISH RAJESH
SUBMITTED TO
UNIVERSITY OF MUMBAI
T.Y.B.M.S (BACHELOUR OF MANAGEMENT STUDY)
SEMESTER V
UNDER THE GUIDANCE OF
PROF.
( ACADEMIC YEAR-2016-2017)
SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF DEGREE OF
T.Y.B.M.S
BY
GUPTA ASHISH RAJESH
ROLL NO 86
CERTIFICATE
This is to certify that, Mr. GUPTA AASHISH RAJESH Of T.Y.B.M.S Semester
V (2016-17), has successfully completed project work On PARA BANKING
SERVICES WITH REFERENCE TO HDFC BAMK
Prof.
PLACE :- KALYAN
DATE :-
(Signature of Coordinator)
(Signature of Principal)
(Signature of External)
GUIDE CERTIFICATE
T.Y.B.M.S
Place :- Kalyan .
Date :Guide)
.
(Signature of Project
Declaration
student of
Signature of Student
SR
PARTICULAR
PAGE NO
1.
2.
14
3.
18
4.
24
5.
34
6.
Mutual funds
54
7.
Micro finance
61
8.
Specialized services
65
9.
NET BANKING
71
Acknowledgement
Many peoples input underlies any effective outlay. We would like to acknowledge
our indebtedness to every individual whose inquisitive mind and feedback made us
to attempt to bring about a project study on Rural Credit and NBFCs.
We present this project study to our college for BBI course, as part of semester VI.
This project has been prepared under the guidance of Prof. Neel Kantan who has
given positive feedback with regard to the project thus encouraging us in bringing
forth the project.
We express our gratitude towards college library for their unflagging support.
Last but not the least our heartfelt gratitude to family and friends for their
continued support and constant encouragement.
Executive summary
With the expansion and boom in banking industry the scenario have changed to
great extent from its traditional activities
It has taken a great leap with the new dimensions in the market showcasing better
understanding, displaying dynamic role, exhibiting innovations and exploring new
creative areas to encourage banking perception.
The scope of banking has widened with changes made by RBI. It has started
rendering more of facilities and services to its valued customers other than its core
activities of term lending and accepting deposits.
It has created room in the economy for its self by acting as a financial
conglomerates and providing one stop shop of services. It is like all the things
available under one roof.
The term used for its services other than traditional ones is known as Para
Para banking includes services such as merchant banking, venture capital, ATM
services, and debit/credit cards, net banking, discounting and so on
The following chapters deals with the meaning of services covered under the
parameters of Para banking as per the guidelines issued by RBI the regulatory
authority and the ones which are offered by the HDFC Bank.
Chapter.1
INTRODUCTION
The word Para refers branching out from the main. It is to offer multiple
activities by a bank to its customers other than its core functions of term
lending and bank deposits.
Para banking offers innumerable innovative products and instruments such as
merchant banking, leasing, hire purchase, forfeiting, discounting, factoring, mutual
funds, debit cards, credit cards, and venture capital and so on and so forth.
Banks can undertake certain eligible financial services or Para-banking activities
either departmentally or by setting up subsidiaries. Banks may form a subsidiary
company for undertaking the types of business which a banking company is
otherwise permitted to undertake, with prior approval of Reserve Bank of India.
The Indian banking scenario is in a phase of growing confusion and chaos with
plethora of ... line so it required a boost for its upliftment. It was possible through
integration of its services which added new term in the financial market as Para
banking
It is like an umbrella of activities which the bank is ready to offer its customers for
the very purpose of maintaining its existence in this competitive environment
by customer retention.
Examples for the Para-Banking activities that a Bank normally involves
1.Global Debit Card
2.Global Credit Card
3.Bancassurance
3.Life Insurance Products
4.Non Life Insurance Products
5.Cash Management (SCMS) and so on...
A banking company tries to provide its valued customers other than its core
functions UNDER THE HEAD OF PARA BANKING.
Banks are engaged in offering Para banking services such as mortgages, credit,
insurances and credit charge cards, Teller Machines, ATM Banking, leasing and
many more.
The Para banking Division has been accorded the status of Mother Division
amongst all division.
Para banking has a wide scope in the financial market because it offers more
and is the requirement of the competitive financial market. It will strengthen
the rural sector along with its great impact in the urban sector.
A bank shall carry out all the acts and transactions which are deemed necessary for
or incidental to the smooth running of the managed collective investment
undertakings and assets, according to normal standards of diligence and
professional skills. It is wider term used for banking activities.
It can also be said that an institution which mobilizes the savings of the community
and diverts them for financing different activities. It needs to be registered. Para
banking is a boon to the industry and has a great impetus in the society as it
contributes greatly to the economy under the supervision of the regulatory
authority.
Commercial banks render these services with the aim to target the right
market as well corporate sector which adds to the national economy.
The whole lot of directions to be followed by the banks in order to undertake
Para activities is given by RBI. It has a good scope as well as bright future
in upcoming years.
Chapter2.
Merchant banking
Merchant banking may be defined as an institution which covers a wide range of
activities such as issue management, portfolio management, credit syndication,
counseling and advisory services.
Venture capital
It is a method of financing in the form of equity participation. A venture capital
finances the project based on the potentialities of a new innovative project.
Net banking
Internet is a channel of service to banking customer. One can carry out its
banking operations through internet facilities.
ATM Services
ATM is a mechanical device used o dispenses cash upon insertion of a plastic
card and its unique personal identification number.
Telco Billing System
Telco billing system allows the customer to make the payment at instance,
without being party to long queues by directing its bank to make the payment on
behalf of him.
Chapter.3
Company profile
Management
Technology usage
Business
classification
Customer Focus,
Operational Excellence,
Product Leadership and
People.
It is believed that the ultimate identity and success of bank will reside in the
exceptional quality of people and their extraordinary efforts. For this reason,
HDFC Bank is committed to hiring, developing, motivating and retaining the
best people in the industry
HDFC Bank is one of the most preferred employers in banking industry in India
The mission is to be "a World Class Indian Bank", benchmarking it selves
against international standards and best practices in terms of product offerings,
technology, service levels, risk management and audit & compliance.
The objective is to build sound customer franchises across distinct
businesses so as to be a preferred provider of banking services for target
retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Bank's risk appetite.
HDFC bank is committed to do this while ensuring the highest levels of
ethical standards, professional integrity, corporate governance and regulatory
compliance.
HDFC Bank believes that what makes it different from other banks is not on the
basis of product differentiation but the brand image, people orientation and the
trust its customers have on the bank for the services it provides.
Bank doesnt believe in adopting any marketing strategies or promotional tools to
advertise itself in the market because the core principle in what it emphasizes is as
such services speak for themselves.
HDFC Bank was incorporated in August 1994, and, currently has a nationwide
network of 1,506 Branches and 3,573 ATM's in 635 Indian towns and cities.
Management
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting
and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.
Excessive usage of technology
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank's branches
have online connectivity, which enables the bank to offer speedy funds transfer
facilities to its customers. Multi-branch access is also provided to retail customers
through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
bank. The Bank's business is supported by scalable and robust systems which
ensure that clients always get the finest services it offer.
The Bank has prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.
Wholesale banking
business
Retail banking business
treasury
Wholesale banking businessIt is recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members
and banks.
Retail banking businessThe objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a onestop window for all his/her banking requirements. The products are backed by
world-class service and delivered to customers through the growing branch
network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking.
TreasuryWithin this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
HDFC Bank had initiated Para banking services and activities to increase its
income by way of earning commission. When it offers these services it helps it to
not only provide new products and benefits to its customers but also ensures its
stability and growth in the market segment.
It offers varied variety of treasury, custodian, wholesale, retail services.
The Bank has its deposit programs rated by two rating agencies - Credit Analysis
& Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's
Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
which represents instruments considered to be "of the best quality, carrying
negligible investment risk"
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit
Rating Information Services of India Limited (CRISIL).
Leading Indian and international publications have recognized the bank for its
performance and quality. HDFC bank provides better safety too.
Chapter .4
Merchant banking and venture finance
Merchant banking/services
Merchant bank invests its own capital in a client company whereas an investment
bank purely distributes (and trades) the securities of that company in its capital
raising role
Provide fee based corporate advisory services
Venture Finance
Business Cycle
Industry
Investment
Location
Return
Involvement
The process of venture capital initiates with the entrepreneur developing a novel
idea of starting up a techno based project.
He will approach venture capitalist who assess the capabilities of the entrepreneur
and if satisfied than it will finance the project and advertise for the subscription of
the issue
With all due diligence and skill the process is carried out and when the
entrepreneur reaches advanced stage of maturity at this instance venture capitalist
may either sell his part of shares to the promoters or in the market.
Centurion Bank of Punjab got amalgamated with HDFC Bank in March 2006 with
effect from March 2008.
This venture enabled both the banks to expand their data base and widen the
services offered to their customer which in turn would enhance its position.
Whereas, concerned regarding venture capital financing activities in relation to
HDFC Bank it is not provided by it.
Venture capital is at take off stage in India. It can play a catalytic role in the
development of entrepreneurship skills that remains unexploited among the
young and energetic technocrats and other professionally qualified talents. In
order to ensure success of venture capital in India following suggestions are
offered:
a)
b)
c)
d)
e)
Chapter .5
Automated teller machine services
&
Debit/credit cards
Customers can access their bank accounts in order to make cash withdrawals and
check their account balances as well as purchasing mobile cell phone prepaid
credit. It is known by varied names such as, money machine, bank machine, cash
machine, hole-inthewall, cash point etc.
Select the language in which you want to be led through the transactions. Most
ATMs offer you the options of conducting your transactions in English or Hindi. At
some locations, you will be able to select between languages.
Debit cards
Discover the power and convenience of HDFC Bank Debit Cards that not only let
to withdraw cash from ATMs but also let to shop cashless and hassle-free. It helps
to enhance the spending ability within the limits of the amount available in the
account.
Appearance of card
Customer
orientation
Used for
thousands of
establishment
functions
Customer having
salary account
Customers
having salary
account
Drives and
sustains need of
business
Woman
customer
For convenience
around the world
Kisan Card
Farmers of the
country
Cash Back*: For every Rs. 200 that you will spend, you will receive Re. 1 as cash
back. This cash back is valid on all purchases made through the Card, at all times
of the year!!!
Insurance cover*: The following are included in the insurance covers:
Fire & Burglary for the items purchased under Debit Card (up to 6 months) Sum assured Rs. 2, 00,000
Loss of checked baggage - Sum assured Rs. 1, 00,000
with effect 1st March 09, for Claims under Loss of Checked Baggage and Fire
& Burglary insurance to be accepted & processed, the cardholder should have
carried out at least 1 purchase transaction using the Debit Card, within 6 months
prior to the event date.
3.) Easy Shop Womans Advantage Debit Card:
1. HDFC Bank EasyShop Woman's Advantage Debit Card is India's first
Woman's Debit Card of its kind
2. It is primarily dedicated to Indian women
3. The HDFC Bank Womens Cards both Credit and Debit, are intended to
acquire a greater part of household spending, currently being split among
various other cards
4. Card offers a maximum credit limit of - Rs 3 lakh, with Life Insurance
Cover of Rs 25 lakh - due to air accident, Rs 3 lakh due to road accident and
up to Rs 50,000 on hospitalization due to accident
5. Spends above Rs.5,000 in a month would accrue 5 reward points for each
Rs.100. Spend of up to Rs.5,000 in a month would accrue the usual 2 points
for each Rs.100 spent.
6. Cash Back: 5% cash back on spends at Department stores
4.) Easy Shop NRO Debit Card:
1. Daily Limits
Rs. 15,000 at ATMs for Withdrawal and Rs. 25,000 at merchant
establishments for shopping.
2. Domestic Validity
The Debit Card can be used only in India to make purchases at Merchant
locations and withdraw local currency at ATMs. The NRO Debit Card can
Credit cards
A credit card is a part of system of payments named after a small card issued to
users of the system. It is a card entitling its users to buy goods and services
based on the holders promise to pay for these goods and services. Credit cards
allow the consumers to revolve their balance at the cost of having interest charged.
Most credit cards are issued by local banks and are the shape and size specified by
the ISO/IEC 7810 standard as ID-1.This is defined as 85.60 X 53.98mm in size
to match your
premium lifestyle
Titanium Credit
Card
Exclusive credit
card
Womans Gold
Credit Card
with exclusive
Platinum Plus Credit travel and
Card
preferential
benefits -
Corporate credit
cards
A very premium
offering for the
truly elite, a card
with tailor-made
premium privileges
It's a designation
Corporate platinum
card
offers to provide
you with truly
world beating
features
designed to add
Business credit card value to your
business,
Purchase card
Distributor card
a) Signature Access
HDFC Bank Visa Signature Credit card entitles a Priority pass that provides
access to exclusive airport lounges across the world. Priority Pass is the
world's largest independent airport lounge program, which gives the
cardholder access to more than 500 airport lounges in more than 275 cities
worldwide.
Priority Pass is Priced at Rs. 500/annum.
Earn 2 Reward Points for every Rs.150 spent on your card and double
Reward Points (2 extra points) for every Rs. 150 spent above Rs. 15000.
b) Signature benefits
c) interest free period up to 50 days, the lowest interest rate of 3.05% on
revolving credit facility (36.6% annually)# and petrol surcharge waiver of
2.5% across all petrol pumps in the country
6) World Master Card
a) HDFC Bank presents India's First World MasterCard Credit Card
b) World class card
World Luxury -HDFC Bank World Master Card entitles you to an exclusive
"Taj Epicure" membership. Taj Epicure Membership is Priced at Rs. 1500/annum
World rewards- Earn up to 4 reward points per Rs 150/- using the HDFC Bank
World Credit Card.
HDFC Bank Corporate Platinum Card -which comes with a unique 24x7
Expense management solution called SMART DATA ONLINE, powered
by Master card International.
A. 24x7 online MIS availability.
B. 60 MIS reports for better informed business decisions.
C. Substantial savings for the business through better negotiations with
airlines, hotel chains and other service providers.
D. Streamlines accounting procedures by consolidating transaction data from
.
7) Purchase cards
The HDFC Bank Corporate Purchasing Solution helps reduce purchasing costs
considerably as follows
a) Eliminates the delay and cost of traditional purchase transactions.
b) Enables effective control to track and manage spending.
c) Automates purchase process for easy account management.
Business benefits
1. 1. Reduces transaction processing time, cost of high volume and low value
transactions for the Corporate.
2. 2. Streamlines the payment process and enables account management
control.
3. 3. Reduces the cost of goods by consolidating the supplier base and
negotiating more favorable pricing from preferred suppliers.
4. 4. Minimizes risks associated with fraud, forgery and theft through a
secure, totally mechanized card programme.
5. 5. Provides online expense management solutions - minimizing paperwork
and simplifying reconciliation
8) Distributor card
Benefits to Corporate
a) Increases distributor's appetite for the corporate products.
b) Shorter working capital cycle and improved cash flow management
c) Removal of cheque and cash payments and consequent problems for
Corporate
d) Easy reconciliation of transactions
e) Helps quick delivery of goods or services
Benefits to Distributor
Chapter.6
Mutual funds
Meaning
o Advantages of mutual funds
o Mutual funds in HDFC bank
o Products
o Why HDFC mutual funds
o Vision statement
Mutual funds
A mutual fund is a professionally managed type of collective investment scheme
that pools money from many investors and invests it in stocks, bonds, short-term
money market instruments, and/or other securities.
The mutual fund will have a fund manager that trades the pooled money on a
regular basis. The net proceeds or losses are then typically distributed to the
investors annually.
What is mutual fund through diagrammatic representation for better
understanding?
Mutual funds are funds that pool the money of several investors to invest in equity
or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced
funds. Funds are selected on quantitative parameters like volatility, FAMA Model,
risk adjusted returns, and rolling return coupled with a qualitative analysis of fund
performance and investment styles through regular interactions / due diligence
processes with fund managers.
The reason that mutual funds are so popular is that they offer the ability to easily
invest in increasingly more complicated financial markets. A large part of the
success of mutual funds is also the advantages they offer in terms of
diversification, professional management and liquidity.
f) Potential of return -The fund managers who take care of your Mutual
Fund have access to information and statistics from leading economists
and analysts around the world. Because of this, they are in a better
position than individual investors to identify opportunities for your
investments to flourish.
g) Low Costs - The benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
Particulars
Housing Development Finance Corporation
Limited
Standard Life Investments Limited
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund,
following a review of its overall strategy, had decided to divest its Asset
Management business in India. The AMC had entered into an agreement with ZIC
to acquire the said business, subject to necessary regulatory approvals.
The AMC is managing 24 open-ended schemes of the Mutual Fund
HDFC Growth Fund (HGF),
HDFC Balanced Fund (HBF),
HDFC Income Fund (HIF),
HDFC Liquid Fund (HLF),
HDFC Long Term Advantage Fund (HLTAF),
HDFC Children's Gift Fund (HDFC CGF),
HDFC Gilt Fund (HGILT) and so on.
The AMC is also managing 13 closed ended Schemes of the HDFC Mutual
Fund viz.
a) HDFC Long Term Equity Fund,
b) HDFC Mid-Cap Opportunities Fund,
c) HDFC Infrastructure Fund,
d) HDFC Fixed Maturity Plans,
e) HDFC Fixed Maturity Plans (Series II-X)
f) The AMC is also providing portfolio management / advisory services
and such activities are not in conflict with the activities of the Mutual
Fund
Products
Equity / Growth Fund
Invest primarily in equity
and equity related
instruments.
Liquid Funds
Provide high level of liquidity
by investing in money market
and debt instruments.
Chapter 7
Micro finance
The topic to be discussed are
Meaning of micro finance
Scope in industry
Role of HDFC bank
Vicious circle
Micro finance
Over the last several decades the banking sector in the country has taken
significant strides to achieve profitability, financial stability and competitiveness to
cater to the increasing demand for financial services.
However, much of the benefits accrued due to the growth in banking services have
been limited to a minority of the total population of the country. Banks have not
been able to reach a vast segment of the population particularly in the rural areas
and take even basic banking services to the under served and disadvantaged
masses, for various reasons.
Banks have confined to only areas around their branch network whereas the need
for cheap and timely credit transcends the boundaries of these branches to remote
areas which lack even basic infrastructure.
Micro-credit is a process. Poor people ensure their development through this
process.
The poor becomes aware, efficient and hopeful. Credit is provided without any
security. People are motivated to be engaged in productive activities and inspired
to carry on trades and commerce
Savings, Credits, Insurance etc. are included in micro-credit management.
Although the poor people has got a very little entrance in the conventional finance
institutions used to get different types of financial assistance in micro-credit
To conclude, HDFC Bank has a deeply felt commitment to financial inclusion and
has been the pioneer in using the business correspondent model to achieve this
purpose. A dedicated team of specialized and trained officers across the country are
working exclusively on the various initiatives of the bank on Financial Inclusion
and Literacy. With the introduction of technology and market linkage initiatives by
the bank, the scalability, viability and sustainability of financial inclusion and
This vicious circle will enable the farmers and self help groups to overcome their
financial help and raise their standard of living without being explicated
Chapter 8
Specialized services
Letters of credit and
guarantees
Cash management services
Forex desk
Debt market instruments
Derivatives desk
Custodial services
Letter of credit
Para Banking reflects HDFC Bank's strengths in providing clients in India, a wide
array of commercial, transactional and electronic banking products. It achieves this
through innovative product development and a well-integrated approach to
relationship management.
HDFC Bank can extend import financing through Letters of Credit, which are well
accepted globally and supported by a strong trade finance set-up. We are direct
Guarantees
Forex desk
HDFC Bank's Foreign Exchange Department has two desks, viz. the Inter
Bank Desk and the Corporate Desk.
The Inter Bank Desk (IB) does cover operations of the positions generated
by the Corporate Desk. Besides, it trades on its own account.
The bank has a state-of-the-art Dealing Room and is an
active player in the local Inter Bank market. The Dealing Room is manned
by highly trained professionals. Because of its involvement in the
development of the market in the country, the Bank is a number of various
important committees of Foreign Exchange Dealers' Association of
India (FEDAI) as well as of Reserve Bank Of India (RBI). Currency
swaps, outward and inward remittances, prompt and competitive pricing,
economic and technical analysis.
Debt market instruments
Government of India securities: These are sovereign (credit risk-free)
coupon bearing instruments which are issued by the Government of India.
Securities are available in primary and secondary market in wide range. It is
highly liquid able and can be holded in physical form or in demat form
Commercial papers: It represents short term unsecured promissory notes
issued by top rated corporate, primary dealers (PDs), satellite dealers (SDs) and the
all-India financial institutions (FIs).
1. CP can be issued for a minimum
period of 15 days and a maximum up
to one year.
2. Minimum amount invested is
5,00,000 or multiples
3. Cps are issued at a discount to face
value
4. Issued in demat form
Treasury bills
It is a discounted instrument issued by the Central Government.
The main features of Treasury Bills are:
a) Sovereign zero risk instruments.
b) Treasury Bills: Short term, discounted Instruments with a maximum
tenor of 364 days.
c) Available in primary and secondary market.
d) Issued at a discount to face value i.e., investors will buy the Treasury
Bills at discount to face value of Rs.100 and on maturity the face value
of Rs.100 is received by the investor.
e) No Tax Deduction at Source (TDS)
f) Convenience of CSGL a/c as in case of Central Govt. securities such as
automatic credit of redemption money.
Derivatives desk
HDFC Bank has established itself as a leading player in the derivatives market.
The bank has a team exclusively dedicated to the area of derivatives.
In line with the bank's commitment of adding value to clients, the bank actively
advises its corporate clients on the use of derivatives to manage their currency and
interest rate risks.
The products offered by the desk include interest rate swaps, caps, floors, short
dated as well as long dated currency options, cross currency swaps embedded with
options and swaptions
The bank has carved a special niche for itself in rupee derivatives market. It takes
pride in being one of the most aggressive players in this market.
Custodial services
The Bank has set up the Custody Services group offering quality and reliable
custody services to the clients and has in place a customised Information system,
high security storage vaults and premises for processing / safekeeping securities.
HDFC Bank also has the capability to offer "Straight-through Processing"(STP)
through NSDL, NSE-IT and FT
The Bank has been appointed Custodian by the National Stock Exchange - the
country's leading automated exchange in respect of the securities deposited by the
trading members.
Chapter 9
NET BANKING
Net Banking is a system of banking in which customers can view their account
details, pay bills, and transfer money by means of the Internet. Internet
banking, sometimes called online banking, is an outgrowth of PC banking. Internet
banking uses the Internet as the delivery channel by which they conduct banking
activity
For example, transferring funds, paying bills, viewing checking and savings
account balances, paying mortgages, and purchasing financial instruments and
certificates of deposit.
An Internet banking customer accesses his or her accounts from a browser
software that runs Internet banking programs resident on the banks World Wide
Web server, not on the users PC.
Net Banker defines a true Internet bank as one that provides account
balances and some transactional capabilities to retail customers over the
World Wide Web. Internet banks are also known as virtual, cyber, net, interactive,
or web banks.
Net safe schemes
A typical Internet bank site specifies the types of transactions offered and
provides information about account security.
Because Internet banks generally have lower operational and transactional
costs.
Further, in some cases, web banks are not restricted to conducting transactions
within national borders and have the ability to make transactions involving
large amounts of assets instantaneously.
According to industry analysts, electronic banking provides a variety of
attractive possibilities for remote account access, including:
* Availability of inquiry and transaction services around the clock;
* worldwide connectivity;
* Easy access to transaction data, both recent and historical; and
* Direct customer control of international movement of funds without
intermediation of financial institutions in customers jurisdiction.
It is easy using electronic banking services
One may simply ask their institution for the software needed for PC banking or
obtain a password for Internet banking. Either approach requires minimal
paperwork.
Once they have joined the system, customers have electronic access to all of
their accounts at the bank. Net banking is a facility provided by bank to its
customers who do not have much time to visit bank again and again. One can
do transaction from their home. One can request for cheque book, balance
inquiry, download statement, and can check their record of last so many years
which bank can't provide you.
Points of importance:
This service is provided free of cost by banks.
Always avoid using your net banking account in public computers and keep
changing your password and never set your password as your name, date of
birth, pin code, city name or your best friend name
It should be always unique otherwise your id and password can be hacked.
Mobile banking is also a new interface and HDFC Bank and reliance mobile
had significantly carried it out.
Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-second
account information, Net Banking lets you manage your account from the comfort
of your mouse - anytime, anywhere.
Net Banking is Real Time, giving you up-to-the-second details on your account. It
can be accessed anytime, from anywhere, giving you complete control over your
finances. There are no queues to stand in, or turns to wait for. With Net Banking
you are in control.
1. Your HDFC Bank credit / debit card number is never used on the
merchant website
2. The Net Safe card you create is a onetime use card
3. You can set your own limit for the Net Safe cards you generate
4. You can use it on any merchant website that accepts VISA/Master
card cards
5. All purchases you make with Net Safe Cards will appear on your
statement, just like any other transaction.
Net Safe offers a unique security feature, wherein your credit/debit card
number is never revealed on the Internet. Instead, you generate a virtual
card number, drawing funds from either your credit or debit card account
[for debit card, you can generate up to 5 virtual cards daily subject to your
Point of Sale(POS) limit per day, provided there is available balance in
your savings/current account and for your credit card up to available credit
limit]. You can then use this virtual card number at any online merchant
site and complete your shopping with security and ease.
Conclusion
We live in a world of rapid change. Todays world is certainly more complex and
ambiguous than the world of yesterday, us new approach has to be different from
what we have been doing traditionally.
The emphasis on understanding what Para banking services and activities are and
research in this area is a relatively new development.
Financial institutions and banks through their Para-banking activities have played a
useful role in financing various sectors of the economy. Considering the current
scenario of branch banking, it will take some more time to reach the wider
population across the country and provide financial services in a cost-effective
manner from the larger banks. Para-banking services have to be carefully regulated
and supervised by the regulator both on financial health of the service provider as
well as customer protection.
Whilst there is a greater need for Para-banking services for the wider population
and supporting greater participation in the financial services network coverage, it
is important to evolve new workable models for appropriate supervision.
Finally, any thought and decision on banning Para banking activity or institution or
class of institutions should be considered after significant deliberations and giving
due weight age to the contributions and negative roles over the last few decades
rather than be motivated by some recent incidents relating to a certain entity.
Bibliography
Sources:
Business environment-The ICFAI University
India's banking and financial sector in the new millennium, Volume 2-Uma Kapila
Principles and Practices of Banking and Insurance-P.K. Bandgar
Development issues of Indian Economy-Misra and Puri
(Himalaya Publishing House)
Websites hunted:
http://www.rbi.org.in
www.hdfc.com
www.hdfcbank.com
neeraj.jha@hdfcbank.com
http://www.labnol.org/india/knowledge/reliance-mpay-use-your-reliance-mobileas-a-virtual-hdfc-bank-credit-card/2316
sme@hdfcbank.com
www.Allbusiness.com
http://in.answers.yahoo.com/question/index?qid=20080911024357AATANmE
http://www.hdfcbank.com/wholesale/sme/value_added_services/merchant_services
/Merchant_Services.htm
http://www.hdfcbank.com/wholesale/sme/value_added_services/merchant_services
/Merchant_Services_program.htm
http://www.walletpop.com/specials/decoding-the-lingo-of-the-financial-crisis
www.krchoksey.com
http://www.hdfcbank.com/personal/cards/Debit_Cards/EasyShop_Gold_Debit_Car
d/dc_gold.htm
http://www.hdfcbank.com/personal/cards/dc_gold_faqs.htm
www.Moneycontrol.com
http://www.ivfa.com/present_hdfc.asp
http://www.comparecards.in/view-details/113/hdfc-bank-gold-credit-card.html
http://www.hdfcbank.com/wholesale/fit/financial_institutions/custodial_services/C
ustodial_Service.htm