CERTIFICATE COURSE IN “BANKING SERVICES”

 30 HOURS CERTIFICATE COURSE IN

     < BANKING SERVICES >

 ( FROM - Department of Economics - KRM DAV College, Nakodar)

  

 DR.ANOOP KUMAR (PRINCIPAL)

 Prof. (Dr.) KAMALJIT SINGH ( COURSE COORDINATOR )

 Tech.Help by Prof. Jasveer Singh

SYLLABUS 

• BANK,BANKER AND BANKING: AN INTRODUCTION 
• BANKING SERVICES: HISTORY AND TERMINOLOGY 
• TANGIBLE AND INTANGIBLE BANKING SERVICES 
• LOANS AND ADVANCES: CREDIT CREATION & CONTROL 
• PRINCIPLES OF GOOD LENDING 
• CHEQUES, BILLS OF EXCHANGE AND PROMISSORY NOTES 
• BANKER CUSTOMER RELATIONSHIP 
• E-BANKING: ATM, DEBIT CARD, CREDIT CARD  
• INDIAN BANKING SYSTEM AND SERVICES 
• PRACTICAL WORK: ACCOUNT OPENING, INTERNET BANKING AND CASE STUDY OF BANKING SERVICES 

BANK : AN INTRODUCTION 

• Banchi  (Italian):Special Table 
• Banck  (German) : Joint Fund 
• Vedic Period 2000 BC to 1400 BC 
• Budhist Period: Vaishyas,  and Kshtriyas  
• Kautilya’s Arthashastra: 15% to 60% interest on secured and unsecured loans 
• Indigenous Bankers : Shahukar (UP), Shraff (Gujrat),Kayas (Assam), Hundis in 12th century 
• Ancestors : Merchants, Goldsmiths, Money lenders 

HISTORICAL BACKGROUND 

• 1157 : Bank of Venice in Italy, Bank of Barcelona (1401) 
• 1407 : Bank of Geneva, Bank of England (1694) 
• 1770 : Bank of Hindustan by Alexender & Co, Agency House 
• 1806 : Presidency Bank of Bengal 
• 1840 : Presidency Bank of Bombay 
• 1843 : Presidency Bank of Madras 
• 1894 : Punjab National Bank, Bank of Baroda (1907) 
• 1921 : Imperial Bank of India 
• 1935 : Reserve Bank of India 
• 1955 : State Bank of India 
• 1969, 1980 : Nationalisation, RRBs in 1975 
• 1991 : Private Banks 

 

Definition and Meaning of Bank 

• “Accepting for the purpose of lending or investment of deposits of money from public, repayable on demand or otherwise and withdrawable by cheque, draft or otherwise.” 

                        The Banking Companies Act (1949) 

    Business body, Deals in money and credit, accepts deposits, repayable, lending money and investment  

 

BANKING SERVICES : TERMINOLOGY 

• Hundi  
• Scheduled Bank 
• Negotiable Instruments 
• Call Money 
•  BR, CRR, SLR 
•  Collateral Security 
•  Clean Bill 
• PSL, DIR 
•  MICR  
• NPA 
•  Demat Account  

 

BANK : TYPES 

• On the Basis of Function : Industrial, Commercial, Agricultural, Exchange, Saving, Central, Indigenous 
• On the Basis of Law : Scheduled, Non Scheduled 
• On the Basis of Structure : Unit, Branch, Group, Chain, Correspondent 
•  On the Basis of Domicile : Domestic, Foreign 
• On the Basis of Ownership : Public, Private, Co-operative, Regional Rural Banks  

 

Public Sector Banks 

• SBI Group (Hyderabad, Patiala, Travencore, Mysore, Indore, Saurashtra, Bikaner & Jaipur) 
• PNB, BOB, BOI, CBI, UBI, BOM, Canara Bank 
• Indian Bank, IOB, UCO Bank, Andhra Bank 
• Dena Bank, Vijay Bank, Corporation Bank 
• Allahabad Bank, Syndicate Bank, Punjab & Sind Bank, United Bank of India, Oriental Bank of Commerce  

Private Sector Banks 

• HDFC  Ltd. Bank 
• ICICI Ltd. Bank 
• IDBI Ltd. Bank 
• Axis Bank Ltd. 
• J & K Bank Ltd. 
• Lord Krishna Bank Ltd. 
• Indus Ind Bank Ltd. 
• Karnataka Bank Ltd. 
• The Federal Bank Ltd. 
• Kotak Mahindra Bank Ltd. 

Foreign Banks 

• ABN Amro Bank 
• Bank of America  
• Bank of Ceylon 
• Citi Bank 
• Standard Charted Bank 
• State Bank of Mauritius 
• The Bank of Nova Scotia 
• American Express Bank  

BANKING SERVICES : TANGIBLE & INTANGIBLE 

• DEPOSITS 
• WITHDRAWALS 
• LENDING 
• LOANS & ADVANCES 
• CUSTOMER SERVICES 
• CUSTOMER SATISFACTION 
• VIRTUAL BANKING SERVICES  

DEPOSITS 

• SAVING 
• CURRENT 
• TIME 
• RECURRING 
• FLEXIBLE 
• MISCELLANEOUS  

WITHDRAWALS 

• CHEQUE BOOK 
• E-CHEQUES 
• BANK DRAFT 
• WITHDRAWAL SLIP 
• ATM CARD 
• ONLINE WITHDRAWALS  

LENDING 

• CASH CREDIT 
• OVERDRAFTS 
• DEMAND LOANS 
• BILL DISCOUNTING 
• CONSUMER CREDIT 
• CLEAN LOANS 
• MONEY AT CALL 
• GOVT. CREDIT 
• EXPRT-IMPORT CREDIT  

PRACTICAL WORK-I : OPENING OF BANK ACCOUNT 

• Introduction : Known Person,Form  
• Specimen Signature 
• KYC Norms 
• Mandate 
• Photographs 
• Pay in Slip, Cheque Book, Plastic Card 
• Different Customers: Minor, Joint Account, Partnership Account, Trust, Clubs,Co-operatives, Local Authorities, Limited Companies  

PRACTICAL WORK : 

HOW TO OPEN A BANK ACCOUNT ? 

1.INTRODUCTION : PROPER FORM,DATA 

2.SPECIMEN SIGNATURE: 2 TO 4 TIMES 

3.KYC NORMS: (Passport, PAN Card, Driving License, Voter Card, ID Card, Telephone

 Bill,Electricity Bill, Ration Card, Bank Account Statement) 

(MOA, AOA, Certificate of Incorporation, Resolution of Board of Directors) 

(Registration Certificate, P Deed, Power of Attorney)  

4.MANDATE : Another person, Attorney—Special/General 

5.PHOTOGRAPHS: Latest, Self attested, Authorized Person, PSUs, Guardian 

 

DOCUMENTS 

• PAY IN SLIP: Perforated, date, name, amount, nature of account, account number, detail of currency notes, drawee bank, cheque number. signature.  
• WITHDRAWAL FORM: Accompanied by pass book, limited amount 
• CHEQUE BOOK: 10,20,50,100, blank form in serial number, requisition slip, e-cheque book 
• PASS BOOK: Date, particulars, withdrawals, deposits, balance 
• PLASTIC MONEY CARDS : ATM, Debit, Credit 

DIFFERENT TYPES OF BANK CUSTOMERS 

• 1. MINOR: Age, 

• 2. JOINT ACCOUNT 

• 3.PARTERNSHIP FIRM 

• 4.LIMITED COMPANIES 

• 5. TRUST ACCOUNT 

• 6.CLUBS & SOCIETIES 

• 7. COOPERATIVE INSTITUTION 

• 8.LUNATICS 

• 9.ILLITERATE PERSON 

• 10.BLIND PERSON 

 

TANGIBLE BANKING SERVICES 

• DEPOSITS 
• SAVING: Purpose, Cheque, Interest, No. of deposits and withdrawals,  Minimum amount, Pass book. 
• CURRENT: Liquidity, Minimum risk, No Interest, incidental charges, OD, Cheque, No. of deposits and withdrawals. 
• FIXED: Higher Interest as per period, No Cheque, No. of deposits and withdrawals,  Pre mature withdrawal, loan facility, Insured deposits. 
• RECURRING: Monthly fixed amount,  High Interest, No. of deposits and withdrawals, End of month, Penalty, Pre mature withdrawal, 6months to 10 years. 

 
DEPOSIT SCHEMES/SERVICES 

• FLEXIBLE: Benefits of S & F Deposit, Units of Rs.1000/- 
• PEOPLE’S SAVING PLAN : Rs. 500/- per month,1/10th after 3 months. 
•  MINOR SAVING PLAN : 12 or above  
• FARMER’S SAVING PLAN : Twice in a year, Lump sum  
• MONTHLY INCOME SCHEME: Mainly Pensioners 
•  MARRIAGE SAVING SCHEME : Liability in future, regular savings. 
•  EDUCATION SAVING SCHEME 
• JANTA/PIGMY DEPOSITS: Daily, Door collection, loan        

BANK LOANS: CLASSIFICATION 

• PURPOSE :Productive, Consumption. 
• SECURITY : Secured, Unsecured. 
• REPAYMENT : Lump sum, Installments. 
• TIME : Short term, Intermediate, Long term. 
• ORIGIN : Capital, Reserves, Deposits, Borrowings.  

LOAN ADVANCING SERVICES 

• CASH CREDIT/ LIMIT: Against hypothecation,      Business firms, interest on amount used.  
• OVERDRAFT : Up to an agreed amount,     current account, security. 
• TERM LOANS: Specific period, 1 to 10 years, against security. 
• DEMAND LOANS : Recall on demand, entire amount is paid to bank in one go. 
•  MONEY AT CALL : A few days, inter-bank,  call back by lender. 

LOAN ADVANCING SERVICES 

• BILL DISCOUNTING  & PURCHASING: Advancing against a promise of repayment in future. 
• EXPORT IMPORT LOANS : Pre &Post shipment finance, LOC,EXIM Bank. 
• CONSUMER LOANS : Consumption, durables, lump sum, payable in installments. 
• MARRIAGE & EDUCATION LOANS : Future needs  
• LOANS TO GOVERNMENT: Indirect loans, investment in securities 

WITHDRAWALS 

• WITHDRAWAL FORM: Accompanied by pass book, limited amount 
• CHEQUE BOOK: 10,20,50,100, blank form in serial number, requisition slip, E-cheque book 
• PLASTIC MONEY CARDS : ATM Card, Debit Card, Credit Card 
• Bank Draft (DD) :Customers & non-customers, Order to pay money, Remittances, Bank to Bank 
• Online Withdrawals :Net Banking, PAYTM, NEFT 

INTANGIBLE BANK SERVICES 

• Unique Skills 
• Communication 
• Positive Attitude 
• Responsiveness, Discipline, Help Desk 
• Customer Orientation : KING, Retaining Old & Attracting New Customers 
• Customer Satisfaction to Customer Delight: Customer Service Committees, Suggestion Box 

RBI &INTANGIBLE BANK SERVICES 

• Quick Service in collection/payment of Cheques  
• Having Patience & Gentle Behaviour  
• Guiding Public about bank services 
• Proper Attending of Customers 
• Exchanging of torn & new notes 
• Not to get angry with customers 
• Update & Correct information to customers 
• Simple & Understandable Rules  

NEGOTIABLE INSTRUMENTS 

• A document the property in which can be passed from one person to another by (a) merely delivery or by (b) delivery and endorsement. 
• Freely Transferable, Good Title 
• Good Faith, Proper Form 
• Before Maturity,For Value gets it free from all defects 
• Can sue upon the instrument in his/her own name 
•  As per the Negotiable Instrument Act (Section 13) 
• “A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer”  

CUSTOM OR USAGE DOCUMENTS 

• Money Order 
• Postal Order 
• Dock Warrants 
• Bill of Lading 
• Deposit Receipt 
• Railway Bonds 
• Delivery Order 
• Shah Jog Hundis  
• Railway Receipt 
• Dividend Warrant, Currency Notes, Cheque Not Negotiable

PROMISSORY NOTE 

• A written promise made by one person to pay certain sum of money due to another person or any other legal holder. 
• Not oral, Promise 
• Unconditional, Certain sum of money 
• Signature of maker, liability is primary and absolute 
• Certain payee, certain maker maker 
• Place, Date, Time 
• Single copy of foreign promissory note 
• Stamped as per Indian Stamp Act 

PARTIES & ADVANTAGES 

• MAKER 
• Payee 
• Holder 
• Simple method to borrow and repay 
• Acknowledgement of Debt 
• Increase in Business Activities 
• No acceptance is required 
• Joint and several liability can be made  

TYPES OF PROMOSSORY NOTE 

On the basis of Liability :  
          Single Promissory Note 
          Joint Promissory Note 

On the basis of Time :  
          Payable on Demand 
          Payable at a Future date or Time    

•           Promissory Note 

 

BILL OF EXCHANGE 

• “An instrument in writing containing an unconditional order, signed by maker, directing a certain person to pay a certain sum of money only to, or to order of, a certain person or to the bearer of  the instrument”. Sec 5 of NI ACT, 1881 
• Written , Unconditional, Order to pay, Certain sum of money, Time of payment, Certain parties (Drawer, Drawee, Payee), Signature, Date, Place, Acceptance, Stamp duty as per Stamp Act, 1899.  

Types of Bill of Exchange 

• Sight or Demand Bill, Usance or Time Bill 
•  Inland Bill, Foreign Bill 
•  Order Bill, Bearer Bill 
• Clean Bill, Documentary Bill 
• Trade Bill, Accommodation Bill 
• Escrow, Fictitious Bill 
• Ambiguous, Inchoate Bill 

CHEQUE 

• “A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.” Sec 6, NI ACT. 
• An order on a bank to pay a certain sum of money to the payee mentioned in the cheque. 
• Written, Unconditional, Drawn on a specified Banker, Order to pay, Certain sum of money, Payable on demand, Certain payee, No acceptance, Crossed, No stamping  

TYPES OF CHEQUE 

• OPEN :Bearer, Order 
• Crossed : General, Special, Restrictive, Not Negotiable 
• Undated, Anti- dated, Post-dated 
• Stale/Over-due/Out of date 
• Mutilated 
• Material Alternated  

CROSSING OF CHEQUE 

• Two transverse parallel line at top left with or without any words across its face.  
• Purpose : To direct the paying banker not to make payment unless presented through a banker 
•  TYPES : General, Special, Restrictive, Double, Not Negotiable 
• Opening of Crossing :  Cancellation of CrossingPay Cash 
• Who can cross a cheque : Drawer, Banker, Holder  

CREDIT PROCEDURE 

• Application Form by Borrowers, Interviews 
• Security by Borrowers 
• Assessment of Creditworthiness of Borrowers 
• Credit Reports & Credit Rating 
• Execution of Agreement 
• Sanctioning of Loans 
• Follow up :Supervision of Advances 
• Management of Sick Accounts 

Factors Affecting Advancing of Loans 

• Character of Borrower : past record 
• Business of Borrower 
• Capital Resources of Borrower 
• Amount of Loan 
• Purpose of Loan 
• Period of Loan 
• Source of Repayment 
• Security Available  

PRINCIPLES OF GOOD LENDING 

• SOLVENCY : Capacity to meet liabilities in the long run, Loss  or misappropriation of assets, Risk of default, Fluctuating interest rate.
• LIQUIDITY : Capacity to meet  demand liabilities , Ownership of deposits (individual or firm), SLR, Banking habits, Seasonal Requirements (Festivals), Structure of Banking, Money Market Development  

• PROFITABILITY/INCOME 

1. Portfolio Management : Appropriate distribution of assets and liabilities in the light of basic objectives 
2. Revenue - Cost 
3. Depends upon liquidity and solvency 
4. Conflict between liquidity and Income : Bank Credit Pyramid :Cash, Money at Call, Bills, Investment, Advances 
5. Conflict between Income and Solvency : interest and value of security 
6. Purpose, Spread and National Interest 

CREDIT CREATION 

• Credo (Latin) : I believe (matter of faith) 
• Business Body 
• Primary Deposits 
• Derivative Deposits 
• Cash Reserve Ratio 
• Excess Reserves 
•  Credit Multiplier=1/CRR 

MECHANISM OF CREDIT CREATION 

• Single Banking System 
• Multiple Banking System 
• DD=DP+DP(1-r)+DP(1-r)2+DP(1-r)3……… 
• 1000+900+8100+729+………. 
• 1000+1000(9/10)+1000(9/10)2+……. 
• 1000[1+9/10+…….] 
• 1000[1/1-.9] 
• 1000*10=10000  

CREDIT CREATION : MULTIPLE BANKING 

 

LIMITATIONS OF CREDIT CREATION 

• Banking Habits 
• Cash Reserve Ratio 
• Primary Deposits 
• Policy of other Banks 
• Availability of Good Borrowers 
• Availability of Good Securities 
• Volume of Money in Circulation 
• State of Economy-Trade Cycle  

CREDIT CONTROL 

• Regulation of credit by the Central Bank in order to achieve definite objectives 
• Internal Price Stability 
• External Price Stability 
• Full Employment 
• Control over Trade Cycle 
• Economic Growth  

METHODS OF CREDIT CONTROL 

• QUANTITATIVE TOOLS (General Tools):

•  

     Bank Rate  
    Open Market Operations 
    Cash Reserve Ratio 
     Statutory Liquidity Ratio 

• QUALITATIVE TOOLS (Selective Tools) : 

        Margin Requirements, Rationing of Credit 
       Regulation of Consumer Credit, Moral Persuasion 
        Publicity, Direct Action 

 

LIMITATIONS OF CREDIT CONTROL 

• Unorganized Banking Sector 
• Lack of control over Banks : Manipulation 
• Lack of control over final use of credit 
• Less Co-operation among Banks 
• NBFIs 
• Less Developed Money Market 
• Conflict among Tools 
• Conflict among Objectives

BANKER CUSTOMER RELATIONSHIP 

BANKER : A Person who takes deposit accounts,issues cheques,pays cheques, 

       collects cheques.  

CUSTOMER : A person  or organization who has an   account with a bank, Operating Accounts,takes loans,lockers,banking hours.  

 

GENERAL RELATIONSHIP 

• 
  

• Debtor Creditor  Relationship 

•       Proper place 
•       Proper time 
•       Proper manner 
•       Necessary demand from banker 
•       Part of the debt may be demanded 
•      Creditor Debtor Relationship 
• 
  

SPECIAL RELATIONSHIP 

• Bailee and Bailor  
• Agent and Principal/Advisor 
• Mortgagee and Mortgagor 
• Lessee and Lessor  
• Guarantor and Guarantee 
• Trustee and Beneficiary 

 

OBLIGATIONS OF BANKER 

• To Honour Cheques : Sufficient Funds , Proper Time , Complete in all respects , No Court Order  
• Disclosure of Information : IT Act (1961), Companies Act (1956), RBI Act (1934), Banking Regulation Act (1949), Gift Tax Act (1956), FERA/FEMA (1974), IDBI Act (1964). Banker’s own interest , Public/National Purpose , Consent of the Customer 
• To  Maintain Secrecy  
• To Keep Record of Transactions  
• To Follow Instructions of the Customer   

RIGHTS OF A BANKER 

General Lien : Particular & General  
To Set-off: Combining Accounts 
Claim Incidental Charges  

To Charge Compound interest 

• Right to Appropriation:  

    By Debtor (Sec 59 Indian Contract Act) 
    By Creditor (Sec 60 : Garnishee Order) 
    By Law  (Sec 61) : Clayton’s Case  

E-BANKING SERVICES

 Delivery of Banking Services or products by electronic channels.

Application of electronic technology towards banking services like transfer of funds through an electronic terminal, computer or magnetic tape.

Cashless, Anywhere, Anytime, Quick, Globalised, Better Quality, Convenience, Competition, Efficiency, Productivity, Automated

FACETS OF E-BANKING

•       Computerization: 1985-89, Rangarajan C-1988
•       Telephone Banking: Automated, Client Advisors
•       ATMs : Shared Payment Network System  SWADHAM in Mumbai since 1997
•       Cards : ATM cum Debit, Credit, Smart.
•       E-mail Banking : Simple operations, account Statements
•       Network/Online Banking, EFT, E-Cheques

PROCEDURE OF E-BANKING

      •       Log on to WWW
•       Verification of User ID Password
•       Processing of Information
•       Request for Credit Card Number
•       Final Approval for Transaction
•       Transaction

ADVANTAGES OF E-BANKING

•       FOR BANKS :

• ü  Cost Reduction and Sharing
• ü  Increase in Customer Base and Profits
• ü  Better Quality of Services
• ü  Opportunities to Cross-sell and Marketing Tools
• ü  Reduction in Risk and Paper Work
• ü  Reduction in Frauds
• ü  Promotion of Banking Services

ADVANTAGES OF E-BANKING

•       FOR CUSTOMERS :

•       Quick Services  and Time Saving, Cashless Banking and Less Risk, More Convenient and Satisfaction, Online Shoping

•       FOR TRADERS :

•       Less Risk of Cash Transactions, Immediate Settlement, Business Promotion

•       FOR NATION AND GOVERNMENT :

•       Transparency in Transactions, Worldwide Coverage, Increase in Revenue, More Growth of Economy

LIMITATIONS OF E-BANKING

• •       Access Problem
• •       High Infrastructural Cost
• •       Lack of Awareness among Customers and Employees
• •       Security Problems and Cyber Crime
• •       Privacy Problems
• •       Lack of Computerization and inter bank transfers
• •       Unauthorized Transactions

AUTOMATED TELLER MACHINE

•       Banking Services :

• ü  Balance Enquiry & Mini Statement,
• ü  Deposits & Cash Withdrawals,
• ü  Any Time & Any Place Banking,
• ü   No paper based Verification and personal attendance of customer,
• ü  Replacing Cheques &PIN Change,
• ü  Transfer of funds between accounts linked to card,
• ü   Utility Bill Payment,
• ü  Shared Payment Network System (Cash Tree of BOI)

PROCEDURE OF WORKING OF ATM

• •       Insert ATM Card
• •       Transmission of Data to Processor
• •       Activation of Account
• •       Detail on Screen Display
• •       Selection of Function to Perform
• •       Clicking of Keys on Keyboard : PIN, Amount
• •       Paper Printing or Display only
• •       Actual Transaction

ATM DEVICES

• •       CPU
• •       Chip Card Reader
• •       PIN Pad
• •       Display
• •       Function Key Buttons or Touch Screen
• •       Record Printer
• •       Vault

DEBIT CARDS

MEANING : Card meant for withdrawal against the balance already there in account.

FEATURES : Direct access to our bank account

Ø   Bank account is debited immediately

Ø   No credit period

Ø  Combination of Cheque and ATM Card

Ø  Limited spending

Ø   Sufficient Balance

Ø  Charges for withdrawal for more than five  times

Ø  Termination of Card in case of death, insolvency, bankruptcy etc.

TYPES & OPERATION OF DEBIT CARD

•       DIRECT : Only online transactions (PIN), immediate transfer of funds to merchant’s account, Suvidha Debit card by Citibank.

•       DEFERRED : Online and offline (no PIN) transactions, Electron Debit Card by HDFC.

•        OPERATION CONDITINS : PIN, Loss of Card, Transaction Records, Closing of Account, Service Charges if any.

CREDIT CARDS

• •       Document of cardholder’s creditworthiness
• •       Cashless transactions but as per specified limit
• •       Anywhere or Anytime Credit Facility
• •       Grace period-No interest
• •       Bank gets commission from the seller
• •       Net gain of bank= Commission-(Cost+Interest)
• •       Certain minimum income
• •       Initial, annual, re-issue fee from cardholders

OPERATION OF CREDIT CARD

• •       Application and Issuing of Credit Card-Name, Number, Date and Signature
• •       Arrangement between Banker and Seller
• •       Purchasing and Signature on sales voucher
• •       Detailed voucher from Seller to Banker
• •       Bank settles claim of the seller
• •       Bank intimates Customer
• •       Customer makes the payment

BANKING REFORMS IN INDIA

 WHY ?

• •       High Proportion of NPAs
• •       Poor Financial Base
• •       Poor Quality of Customer Service
• •       Increased Competition
• •       Lack of Advanced Technology & skilled manpower
• •       Lack of Autonomy
• •       Lack of Relationship Banking

 COMMITTEES ON BANKING REFORMS

•       •       Narasimham Committee on Financial System (1991)-I
• •       Narasimham Committee on Banking Sector Reforms (1998)-II
• •       Khan Committee on DFIs & CBs (1998)
• •       Verma Committee on Weak Banks (1999)
• •       SS Kohli Committee on Willful Defaulters (2001)

 MAIN BANKING REFORMS

• Foundation Phase : Before 1969-IBI to SBI, Associate
• Expansion Phase : 1969 to 1984-Mass Banking
• Consolidation Phase : 1985 to 1990-Rationalization
• Reform Phase : 1991 onwards- Structural Changes
• Reduction in CRR & SLR
• Directed Credit
• Deregulation of Interest Rate
• Prudential Norms : Assets Classification, Recognition    of Income Sources, Uniform Accounting Practices
• Capital Adequacy Ratio (CAR) & Branch Licensing
• Autonomy and Narrow Banking

MAIN BANKING REFORMS

• Banking Diversification: MFs, Insurance etc.
• New Generation Banks : Universal, E-banking
•  Private Banks and Foreign Banks
• Asset Reconstruction Company
• Turning to Buyer’s Market and Transparency
• Structuring of Banks
• Debt Recovery Tribunals
• CAMELS
• BASEL Norms : I,II & III

HAPPY LEARING !

STAY SAFE,STRONG & HAPPY

Department of Economics - KRM DAV College, Nakodar