Changing Role of Banks inwards India
The piece of work of banks inwards Republic of Republic of India has changed a lot since economical reforms of 1991. These changes came due to LPG, i.e. liberalization, privatization in addition to globalization policy beingness followed past times GOI. Since thus most traditional in addition to outdated concepts, practices, procedures in addition to methods of banking convey changed significantly. Today, banks inwards Republic of Republic of India convey teach to a greater extent than customer-focused in addition to service-oriented than they were earlier 1991. They forthwith besides give a lot of importance to their rural customers. They are fifty-fifty willing ready to assist them in addition to serve regularly the banking needs of country-side India.
The changing piece of work of banks inwards Republic of Republic of India tin give the axe live glanced inwards points depicted below.
The next points briefly highlight the changing piece of work of banks inwards India.
- Better client service,
- Mobile banking facility,
- Bank on wheels scheme,
- Portfolio management,
- Issue of electro-magnetic cards,
- Universal banking,
- Automated teller machine (ATM),
- Internet banking,
- Encouragement to depository fiscal establishment amalgamation,
- Encouragement to personal loans,
- Marketing of mutual funds,
- Social banking, etc.
The above-mentioned points dot the piece of work of banks inwards Republic of Republic of India is changing. Now let's hash out how banking inwards Republic of Republic of India is getting much ameliorate 24-hour interval afterwards day.
1. Better Customer Service
Before 1991, the overall service of banks inwards Republic of Republic of India was really poor. There were really long queues (lines) to have payment for cheques in addition to to deposit money. In those days, around depository fiscal establishment staffs were really rude to their customers. However, all this changed remarkably afterwards Indian economical reforms of 1991.
Banks inwards Republic of Republic of India convey forthwith teach really client in addition to service focus. Their service has teach quick, efficient in addition to customer-friendly. This positive alter is mostly due to ascension contest from novel private banks in addition to initiation of Ombudsman Scheme past times RBI.
2. Mobile Banking
Under mobile banking service, customers tin give the axe easily acquit out major banking transactions past times but using their jail cellphone phones or mobiles.
Here, start a client needs to activate this service past times contacting his bank. Generally, depository fiscal establishment officeholder asks the client to fill upward a uncomplicated cast to register (authorize) his mobile number. After registration, this service is activated, in addition to the client is provided alongside a username in addition to password. Using hush-hush credentials in addition to registered phone, client tin give the axe forthwith comfortably in addition to securely, detect his depository fiscal establishment balance, transfer coin from his line organisation human relationship to another, inquire for a depository fiscal establishment check book, halt payment of a cheque, etc.
Today, almost all banks inwards Republic of Republic of India provide a mobile-banking service.
3. Bank on Wheels
The 'Bank on Wheels' system was introduced inwards the North-East Region of India. Under this scheme, banking services are made accessible to people staying inwards the far-flung (remote) areas of India. This system is a generous seek to serve banking needs of rural India.
4. Portfolio Management
In portfolio management, banks produce all the investments piece of work of their clients.
Banks invest their clients' coin inwards shares, debentures, fixed deposits, etc. They start teach inwards a contract alongside their clients in addition to accuse them a fee for this service. Then they convey the total ability to invest or disinvest their clients' money. However, they convey to give security in addition to turn a profit to their clients.
5. Issue of Electro-Magnetic Cards
Banks inwards Republic of Republic of India convey already started issuing Electro-Magnetic Cards to their customers. These cards assist to acquit out cash-less transactions, brand an online purchase, avail ATM facility, mass a railway ticket, etc.
Banks number many types of electro-magnetic cards, which are every bit follows:
- Credit cards assist customers to pass coin (loaned upward to a surely boundary every bit previously settled past times the bank) which they don't convey inwards hand. They teach a monthly contestation of their purchases in addition to withdrawals. Along alongside the transacted amount, this contestation besides includes the involvement in addition to service fee. The entire amount (as reflected inwards the contestation of credit card) must live paid dorsum to the depository fiscal establishment either fully or inwards installments, but earlier due date.
- Debit cards assist customers to pass that coin which they convey saved (credited) inwards their private depository fiscal establishment accounts. They demand non acquit cash but instead tin give the axe utilisation a debit carte to brand a purchase (for shopping) and/or take away coin (get cash) from an ATM. No involvement is charged on the usage of debit cards.
- Charge cards are used to pass coin upward to a surely boundary for a month. At the terminate of the month, client gets a statement. If he has a sufficient balance, thus he alone had to pay a small-scale fee. However, if he doesn't convey a necessary balance, he is given a grace catamenia (which is to a greater extent than oftentimes than non of 25 to 50 days) to repay the money.
- Smart cards are currently beingness used every bit an option to avail populace carry services. In India, this covers Railways, State Transport in addition to City (Local) Buses. Smart carte has an integrated circuit (IC) embedded inwards its plastic body. It is made every bit per norms specified past times ISO.
- Kisan credit cards are used for the produce goodness of the rural population of India. The Indian farmers (kisans) tin give the axe utilisation this carte to purchase agricultural inputs in addition to goods for self-consumption. These cards are issued past times both Commercial in addition to Co-operative banks.
6. Universal Banking
In India, the concept of universal banking has gained recognition afterwards twelvemonth 2000. The customers tin give the axe teach all banking in addition to non-banking services nether 1 roof. Universal depository fiscal establishment is similar a super store. It offers a broad attain of services, including banking in addition to other fiscal services similar insurance, merchant banking, etc.
7. Automated Teller Machine (ATM)
There are many advantages of ATM. As a result, many banks convey opened upward ATM centres to offering convenience to their customers. Now banks are operating ATM centres non alone inwards their branches but besides at populace places similar airports, railway stations, hotels, etc. Some banks convey joined together in addition to agreed upon to laid upward mutual ATM centres all over India.
8. Internet Banking
Internet banking is besides called every bit an E-banking or meshing banking. Here, the client tin give the axe produce banking transactions through the medium of the meshing or Blue Planet broad spider web (WWW). The client demand non take in the bank's branch. Through this facility, the client tin give the axe easily query most depository fiscal establishment balance, transfer funds, asking for a depository fiscal establishment check book, etc. Most large banks offering this service to their tech-savvy customers.
9. Encouragement to Bank Amalgamation
Failure of banks is well-protected alongside the facility of amalgamation. So depositors demand non worry most their deposits. When weaker banks are absorbed past times stronger banks, it is called amalgamation of banks.
10. Encouragement to Personal Loans
Today, the purchasing ability of Indian consumers has increased dramatically because banks give them tardily personal loans. Generally, involvement charged past times the banks on such loans is really high. Interest is calculated on reducing balance. Large banks offering loans upward to a huge amount similar 1 crore. Some banks fifty-fifty organise Loan Mela (Fair) where a loan is sanctioned on the spot to deserving candidates afterwards they submit proper documents.
11. Marketing of Mutual Funds
A mutual fund collects coin from many investors in addition to invests the coin inwards shares, bonds, short-term money market instruments, gilded assets; etc. Mutual funds earn income past times involvement in addition to dividend or both from its investments. It pays a dividend to subscribers. The charge per unit of measurement of dividend fluctuates alongside the income on mutual fund investments. Now banks convey started selling these funds inwards their ain names. These funds are non insured similar other depository fiscal establishment deposits. There are dissimilar types of funds such every bit open-ended funds, closed-ended funds, growth funds, balanced funds, income funds, etc.
12. Social Banking
The authorities uses the banking organisation to alleviate poverty in addition to unemployment. Many social evolution programmes are initiated past times the banks from fourth dimension to time. The success of these programmes depends on fiscal back upward provided past times the banks. Banks furnish a lot of finance to farmers, artisans, scheduled castes (SC) in addition to scheduled tribe (ST) families, unemployed youth in addition to people living below the poverty line (BPL).
