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A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses.[citation

Due to their critical status within the financial system and the economy[citation needed] generally, banks are highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.[1] It is followed by Berenberg Bank of Hamburg (1590)[2] and Sveriges Riksbank of Sweden (1668).

History of banking
Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe.[3] One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397.[4] The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.[5]

Origin of the word

The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths.[6] One of the oldest items found showing money-changing activity is a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350325 BC, presented in the British Museum in London. The coin shows a banker's table (trapeza) laden with coins, a pun on the name of the city. In fact, even today in Modern Greek the word Trapeza () means both a table and a bank. Another possible origin of the word is from the Sanskrit words ( ) 'byaya' (expense) and 'onka' (calculation) = byaya-onka. This word still survives in Bangla, which is one of Sanskrit's child languages. + = . Such expense calculations were the biggest part of mathematical treatises written by Indian mathematicians as early as 500 B.C.


The definition of a bank varies from country to country. See the relevant country page (below) for more information. Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as:[7]

conducting current accounts for his customers, paying cheques drawn on him, and collecting cheques for his customers.

Banco de Venezuela in Coro. In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is organized or regulated. The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation). "banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;

2. paying or collecting checks drawn by or paid in by customers.[8] Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect checks.[9]

Large door to an old bank vault. Banks act as payment agents by conducting checking or current accounts for customers, paying checks drawn by customers on the bank, and collecting checks deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account.


A former building society, now a modern retail bank in Leeds, West Yorkshire.

An interior of a branch of National Westminster Bank on Castle Street, Liverpool

Retail banking

Checking account Savings account Money market account Certificate of deposit (CD) Individual retirement account (IRA) Credit card Debit card Mortgage Home equity loan Mutual fund Personal loan Time deposits ATM card

Business (or commercial/investment) banking

Business loan Capital raising (Equity / Debt / Hybrids) Mezzanine finance Project finance Revolving credit Risk management (FX, interest rates, commodities, derivatives) Term loan Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing)

Financial services
Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the

financial services industry represented 20% of the market capitalization of the S&P 500 in the United States.[1]

History of financial services

The term "financial services" became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge.[2] Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.

Main article: Bank

A "commercial bank" is what is commonly referred to as simply a "bank". The term "commercial" is used to distinguish it from an "investment bank," a type of financial services entity which, instead of lending money directly to a business, helps businesses raise money from other firms in the form of bonds (debt) or stock (equity).

Banking services
The primary operations of banks include:

Keeping money safe while also allowing withdrawals when needed Issuance of checkbooks so that bills can be paid and other kinds of payments can be delivered by post Provide personal loans, commercial loans, and mortgage loans (typically loans to purchase a home, property or business) Issuance of credit cards and processing of credit card transactions and billing Issuance of debit cards for use as a substitute for checks Allow financial transactions at branches or by using Automatic Teller Machines (ATMs) Provide wire transfers of funds and Electronic fund transfers between banks Facilitation of standing orders and direct debits, so payments for bills can be made automatically Provide overdraft agreements for the temporary advancement of the Bank's own money to meet monthly spending commitments of a customer in their current account. Provide internet banking system to facilitate the customers to view and operate their respective accounts through internet. Provide Charge card advances of the Bank's own money for customers wishing to settle credit advances monthly.

Provide a check guaranteed by the Bank itself and prepaid by the customer, such as a cashier's check or certified check. Notary service for financial and other documents Accepting the deposits from customer and provide the credit facilities to them.

Other types of bank services

Private banking - Private banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services.[3] Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.[4] Capital market bank - bank that underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products. Bank cards - include both credit cards and debit cards. Bank Of America is the largest issuer of bank cards.[citation needed] Credit card machine services and networks - Companies which provide credit card machine and payment networks call themselves "merchant card providers".

Foreign exchange services

Foreign exchange services are provided by many banks around the world. Foreign exchange services include:

Currency exchange - where clients can purchase and sell foreign currency banknotes. Foreign Currency Banking - banking transactions are done in foreign currency. Wire transfer - where clients can send funds to international banks abroad.

Investment services

Asset management - the term usually given to describe companies which run collective investment funds. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as Registered Investment Advisors. Hedge fund management - Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades. Custody services - the safe-keeping and processing of the world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately US$100 trillion.[5]

Main article: Insurance

Insurance brokerage - Insurance brokers shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.[6] Insurance underwriting - Personal lines insurance underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance brokers,

and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance. Reinsurance - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses.

Other financial services

Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds. Private equity - Private equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business. Angel investment - An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital. Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts. Debt resolution is a consumer service that assists individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to pay off their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts. There are many services/companies that can assist with this. These can include debt consolidation, debt settlement and refinancing.

Market share
The financial services industry constitutes the largest group of companies in the world in terms of earnings and equity market capitalization. However it is not the largest category in terms of revenue or number of employees. It is also a slow growing and extremely fragmented industry, with the largest company (Citigroup), only having a 3 % US market share.[8] In contrast, the largest home improvement store in the US, Home Depot, has a 30 % market share, and the largest coffee house Starbucks has a 32% market share.

What are the different types of services offered by banks?

(The Economic Times (India) Via Thomson Dialog NewsEdge)Banks offer the following services to account holders at their specified branches - multi-city / Payable at Par (PAP) cheque facility, anywhere banking facility, trade services, phone banking facility, internet banking facility, credit card, debit/ATM card, mobile banking and Real Time Gross Settlement (RTGS).

Foreign banks are expanding the number of products on offer, their complexity such as derivatives, leverage financing. Doorstep banking facilities are being offered by some of these banks to cater to convenience lifestyle of its customers. Private banks are extending services including wealth management and equity trading apart from credit cards.

How do banks price their services?

The pricing mechanism is dependent on client relationship and the nature of the transaction. The pricing can be arrived at by profiling customers into different segments. The large corporate segment comprises of the bulk and large value transactions. This segment is characterised by multiple service relationships. The pricing in this segment is transaction based and depends on the size of transactions and on the banks' relationship with the corporate. Hence, the pricing is decided on a one to one basis and public. The other segments comprise the brokers, small and medium enterprises (SME), other banks and the retail segment. In each of these cases, the pricing is not made public and is determined on the basis of the nature of the transaction and the banks' relationship with the client, on a one to one basis. Typically, high volumes and low value characterise the SME segment. Therefore the pricing for this segment differs from that of the large corporates. Similarly the pricing for the banks is very different. In the retail segment, the bank publishes its tariff.

How do services contribute to the bank's income?

Increasingly banks are witnessing a growth in their non-interest or fee-based incomes. With interest spreads decreasing, banks have little option but to ramp up their revenues from feebased income. Fee-based income constitutes a major portion of a bank's other income. The ratio of other income to total income is an indicator of the size of fee-based income. Treasury incomes of public sector banks are no longer the major revenue driver and have been coming down as a result of rising interest rates. Volatility of interest rates are compelling banks to increase their fee based income.

What is non-fund based income?

The non-fund based income comprises of revenues from both financial commitment and services rendered. Financial commitment includes guarantees, letters of credit and bankers acceptances etc. The fees charged may vary from bank to bank and is dependant on the relationship of the bank with the client and the size of the transaction. On the other hand, the revenues from services rendered include fees from funds transfer and enabling services like ATM, internet banking etc. The revenues from funds transfer come from corporate services such as cash management, foreign exchange remittances and from retail services including drafts, pay orders etc.

Which is the most important component for the fee-based income of banks?
The cash management business contributes to banks' fee based revenue stream in a major way. The cash management business comprises four types of services including collection of outstation cheques, disbursement of outstation cheques, payment of dividends, interest, and refunds and e-business. The tariff differs depending on the volumes, the banks' profitability and the banks' relationship with the client. As a proportion of the total fee based income, cash management is the most important component. The other streams of income like auto loans, personal loans, loans against shares among others are residual.

When did RBI grant freedom to banks to prescribe service charges?

Indian Banks' Association (IBA) has dispensed with the practice of prescribing service charges to be levied by banks for various services rendered by them. With effect from September

1999, the Reserve Bank has granted freedom to banks to prescribe service charges with the approval of respective board of directors.

Why is RBI taking note of different service charges levied by banks?

RBI has been receiving representations from the public about unreasonable and nontransparent service charges being levied by the banks. The RBI has directed the banks to display and update on their web sites, offices and branches, the details of the charges prescribed by them for various services. It has advised the banks to display the charges in specified formats. The display may also be in local language. Hitherto, it was left to the banks to fix charges consistent with the cost of providing these services and also to ensure that customers with low value/volume of transactions were not penalised.

Different Services that a bank offers to Personal Customers

Most of us know what a bank is, we know in order to manage our financial life; we should have both a current account and a savings accounts to create balance. Take a look below at the services that banks offer to personal customers: Current Account: A Current Account is a common type of bank account used to store money that is needed on a regular, day-to-day basis. It is a handy way to manage your money in the short-term. It allows you to:

Receive money such as your salary or other types of income Withdraw cash by using your ATM (Automated Teller Machine) or Laser Card or at the bank counter Pay for things using your Laser Card or by writing cheques Transfer money to other accounts Bank using the internet or the telephone Pay bills

ATM Cards & Laser Cards

ATM Cards are used to withdraw cash from your current account You can use your ATM card abroad so long as your card has a Link logo on the back You can use your ATM card at any banks ATM machines As an alternative to using cash Laser Cards (also known as Debit Cards) allow you to pay for items at POS (Point of Sale) terminals in most shops, restaurants, and now even in some taxis! Some retailers will give you the option of receiving cash back, the amount of which is added to the transaction on your laser card

Savings account:

A savings account is a type of bank, building society, credit union or An Post account that is used for accumulating money. Funds saved can be for both short and long-term needs. Short-term needs include things like holidays, weddings and Christmas presents or just for a rainy day. Longer-term needs include things like saving for college or a house. There are many different types of savings accounts available. When deciding on a savings account you should consider how much you want to save and what access you want to the money. Generally speaking, savings accounts can be opened with a small sum of money and you can save either regular amounts or lumps sums, and sometimes both. A Savings Account accumulates interest interest rates can be either fixed or variable. The Government charges DIRT (Deposit Interest Retention Tax) on the interest earned on savings. This tax is automatically taken from your account.


Investment involves purchasing a financial product or other item of value with the expectation that the value of the item will increase over time. Simply put, investment means spending money in the hope of making more money. Investments can offer you a better return on your money in the longer-term compared to savings accounts. However, certain investments may carry a higher level of risk.

What is a Credit Card?

Credit cards are a pay later tool as they let you purchase an item and pay for it some time in the future. VISA and MasterCard are the two main types of Credit Card in Ireland. Credit cards are mainly provided by banks but some retailers and airlines also provide their own credit cards. Remember that you must be 18 years or over to use a Credit Card

How does a Credit Card work?

Credit cards have a credit limit, meaning the amount you can spend on the card this is set by your credit card provider. You have the option of spending the limit in one go or over a period of time. Each month you will receive a credit card statement from your credit card provider. This shows you various information relating to your card including how much you have spent since the last statement, any cash you withdrew using the card, any interest due, the amount you owe and the minimum payment that must be made by a set date. You can settle the amount when your bill falls due or you have the option to pay a minimum amunt, but dont forget youll be charged interest on outstanding balances.

What is Insurance?
Insurance is a forom of risk management you pay a set amount called a premium to an insurer and the insurer agrees to cover the costs associated with certain risks that could be

financially devastating if they were to happen. There are a number of different types of insurance including: Car Insurance By law if you have a car you must, at the very least, have third party insurance. Third party insurance covers any injury or loss suffered by other people as a result of your driving. Comprehensive insurance is an all inclusive type of insurance that covers the cost of repair or replacement if your car is stolen, damaged or destroyed and includes any loss suffered by Third parties. Home Insurance Some of the risks your home may be subject to include damage by fire or flooding, burglary or someone injuring themselves on your property. Taking out insurance can cover you for some of these risks. Travel Insurance There are many risks associated with travel including damage or delay of luggage, cancelled flights, delayed or missed departure, loss or theft of money or passport and illness or injury. Travel insurance can help compensate you in the eventuality of these things happening. Health Insurance Private health insurance helps cover medical or hospital expenses if you get sick, have and accident or need an operation. Payment Protection insurance Payment Protection insurance is designed to cover your repayments on a loan if you suffer from an accident, illness, death or redundancy.

What is a Mortgage?
A mortgage is a special type of loan offered by banks and building societies to enable people to buy property. Its typically a big loan, paid back by the borrower over 25 or 30 years, in monthly instalments. Some different types of Mortgages.

Mortgage This is the most common type of mortgage. The monthly repayment consists of the original loan amount (or capital repayment) and the interest payment. At the beginning of the mortgages life, most of the monthly repayment goes towards the interest. Towards the end, more of the monthly payment goes towards the capital repayment. Interest-only mortgage With this type of mortgage the monthly repayment only covers the interest on the

mortgage and not the capital. The original loan must be repaid in a lump sum at the end of the mortgage term.

What is online banking?

Online banking refers to carrying out certain banking transactions over the internet. Banking online is very convenient and can save you time and money. All the major banks offer online banking. There are a number of things you can do online such as:

View balances and statements Transfer money Top up your mobile phone Pay bills

Some banks online banking services allow you to:

Apply for certain products, such as credit cards, loans and savings accounts Set up, amend and cancel standing orders Share deal buy and sell shares online

Benefits of online banking Some of the benefits of online banking include:

Save time and effort by banking from home (or wherever you have access to a pc and the internet) Information about your accounts and transactions is immediately available Can be cost-effective for example transactions charges may be lower and online accounts may offer higher interest rates Cuts down on your paper work

What is a pension and why start one?

Pensions are an investment you contribute to throughout your life, putting money away so youll have money in the bank when you retire. While there are many different types of pensions the principle is the same - to ensure you have a nest egg to live from when you get older. A pension plan is basically a long-term savings plan. People put money away in increments called contributions. Usually people plan for their retirement by starting a pension plan once they start working. People save for a pension so that they can maintain a certain standard of living after they retire.

Different types of pension

State Pension The Government pays a weekly pension to people once they reach the age of 66. Employee pensions Some employers contribute to a pension fund for its employees and employees then have the option to add to this fund.

Self-employed pensions People who are self-employed are entitled to put a certain percentage of their profits into a pension plan and in doing so gain some tax benefits. Owner-Director pensions The Government allows owners or directors of companies to pay into a pension fund once the business starts making enough money for it to do so and in doing so gain some tax benefits.

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Different types of loans

There are various types of loan present in the market. You can take anyone of them from them according to your requirement and will. Although basic eligibility for all the loans remain the same but they differ on interest rates and repayment options. Let's have a look on different types of loan present in the market.

1. Overdraft An overdraft allows a current account holder to withdraw in excess of his/her credit balance up to an approved limit. The utilised portion of the overdraft will be subject to interest charges. 2. Bridging Loan Usually granted for housing or mixed development projects, the terms of the loan are flexible to meet customers needs and are designed to meet the cash flow requirements pending the receipt of project income.

3. Term Loan A term loan is a loan granted for a period of time, and repaid in monthly instalments. A loan of this structure is suitable for asset acquisition as it caters to the borrowers cash flow requirements. 4. Fixed Loan A fixed loan is a loan granted for an agreed period of time with periodic repayments, which includes interest charges. It is somewhat similar to a term loan.

5. Revolving Credit Revolving credit is usually useful as short-term working capital funding and allows for flexible drawdown of funds as and when required. Borrowers are also given repayment options of either servicing of monthly interest and roll over of principal amount or partial repayment of principal amount, whichever is within their financial means. 6. Blanket Hire-Purchase This is a facility suitable for hire-purchase of commercial equipment and vehicles. An agreed limit is fixed and drawdown will run down upon utilisation of the loan amount. Here, repayment will be over a fixed schedule which will usually compliment borrowers needs. 7. End-Financing Usually granted to property developers to enable the shops and houses developed to be sold to purchasers. Financing is almost automatically given to the purchaser of a new property under this facility. 8. Financial Guarantee This facility offers financial guarantee in the event of default or non-performance by a borrower. Some of the financial guarantees offers include performance guarantee, security deposit guarantee, advance payment guarantee and financial guarantees issued to insurance companies. 9.Education loan information and eligibility

Education loan is the loan provided by the bank to cover all the expenses of study of needy students. In India, education loan is available for almost every certified course. It covers all your expenses of study including stationary expenses, hostel fees and other securities. Also, if you are planning to study abroad, then also you can take assistance from education loan facility. The main benefit of education loan is that you have to pay the loan amount after completing your education.

10.Home loan information and types

To have your own home is the dream of every middle class man but the cost of real estate is touching the sky which hampering the dream of every individual. To fulfil this dream of home, banks offer different types of home loans.

1. Home purchase loan- This loan is provided for buying a new home. Bank provided financial assistance of up to 80% of the cost of new home. 2. Home improvement loan- This loan is provided to those people who wish to renovate their existing home. 3. Home construction loan- Home is constructed once in the life time so most of the people prefer to construct it instead of buying a new home. Home construction loan is given to such people who have a wish to construct the home instead of buying an already constructed house. 4. Home extension loan- This loan is given to those people who wish to extend their home further. 5. Home conversion loan- This loan is provided to those people who already taken a loan for their home and wish to take another house on loan. In this facility, your already taken loan amount is added to the new loan amount and EMIs are calculated thereafter. 6. Bridge loan- Bridge loan is for those who are planning to buy a new home but not getting the buyer of their existing house. The bridge loan facility provides you the assistance for buying the new home until you didn't get the customer of your existing home.

11.Gold loan information and benefits

Gold loan is one of the popular loans available in the market. There are many benefits of gold loan and the major advantage of gold loan is that it provides you the loan amount instantly without any much hindrance. You also don't have to give any security to the bank as your yellow element is the greatest security for the bank. Gold loan is now provided by most of the major banks of India. The only thing which is required for gold loan is that you must possess gold. The process of availing gold loan is as simple as calculating from 1 to 100 for a graduate.

12.Vehicle loans available in India

If you are planning to buy a car but your pocket doesn't allow you then you don't have to worry as you can go through the path of car loan to own your dream car. The repayment of the car loan can be done by easy instalments. Also, taking the car through car loan saves your tax. People who run their business and wish to buy some commercial vehicles can also avail the facility of commercial vehicle loan.

13.Personal loan types and information

Personal loan is the only solution to have instant money from the bank. Personal loan can be taken for any purpose without telling the reason to the bank, for example if you are running short from money for the marriage for your daughter then you can apply for the marriage loan in bank.

Although, interest rate on personal loan is slightly higher than other loans but it offers you the facility of instant cash without any security. Only thing which is required by the bank is that you should have good credit record in the bank.

14.Business loan available in India

To run any business successfully it is must that you have strong financial hand. To make you financially strong to run your business strongly, bank offers different types of business loan. You can opt for any of them according to your need. There are certain eligibility criteria which must be fulfilled before you apply for the business loan.

Types of Trade Financing Facilities

In addition to loan facilities, commercial banks also offer the following trade financing products: 1. Letter of Credit (LC) This facility enables a business to import goods promptly. 2. Bankers Acceptance (BA) This is a useful facility when your SMI business is of export nature and requires immediate funds for working capital or if yours is a business of import nature, you will require funds to pay your suppliers promptly for goods delivered. Similarly, you may be a trader wanting to pay in cash to obtain discounts. 3. Trust Receipt (TR) This is an ideal financial tool that can help improve your liquidity simply by allowing your goods to be delivered to you with payment to be made later. 4. Shipping Guarantee (SG) This facility allows you to take delivery of your imports before receipt of the bills of lading, thus avoiding unnecessary delays. 5. Bank Guarantee (BG) This allows you to supplement your cash flow through Performance Guarantees and/or Financial Guarantees

Accepting Deposits
1. Savings account - These are the simplest of deposits. You deposit money into your account and you can withdraw it anytime. There would be a small limitation on the number of times you can withdraw money from your account. The money in SB accounts earn an interest of around 3.5% per year

2. Current account - These are similar to Savings accounts with two small differences. One is, the money in a current account does not earn interest and two is, you can withdraw any

number of times. This account is for business people who would have high number of transactions in one single day. 3. Fixed Deposit - This is a deposit product where you deposit a certain sum of money with the bank for a specific duration of time. As per the deposit agreement you are expected to let the money be with the bank based on the deposit tenure. Hence the interest offered on such deposits is higher than normal deposits. Also you will attract a penalty charge for pre-closing such deposits 4. Recurring Deposits - These are similar to fixed deposits with a differenc e being, you deposit a small amount of money every month into this account for a specified duration of time and the bank would compound the interest every month and pay you in lump at the end of the tenure.

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Advisory Services
Advisory Services

The starting point is profiling The advice we give is as unique as you are. It is based purely on your appetite for risk, time horizons and need for liquidity. So at the very inception, we work intensively towards understanding you. Your requirements and profile is agreed upon and then documented through a consultative process. We take cognizance of the fact that your profile is likely to change with time and hence we follow this process on a continual basis. Allocation A time tested fundamental principle of investment A lot of emphasis is laid on the mechanics of asset allocation, as we believe that this is the basic tenet of portfolio optimisation. This involves allocating your portfolio across various asset categories - essentially debt, equity and cash. Deciding upon your asset allocation is a synthesis of science, art and investment discipline. Portfolio analysis and financial planning We analyse your existing portfolio allocation and recommend changes in line with current opportunities, your profile and cash flows, risk appetite and financial requirements.

A comprehensive investment plan is drawn out to meet your long and short- term financial goals across multiple asset categories. Portfolio review and tracking Your portfolio is tracked on an ongoing basis to monitor the portfolio returns, cash flows and asset allocation. We continually advice you on appropriate rebalancing of your portfolio on the basis of performance of each asset category and analysis of future expectations. All portfolios are approved by our research desk on an ongoing basis. Advice across asset categories We offer research-based advice across asset categories like mutual funds, equity and its derivatives, insurance and more. Hence, our service is a one-stop-shop for your entire portfolio needs saving valuable time. Also, a holistic view of your portfolio across all asset categories helps us advice you better and offer you a consolidated wealth statement. Dedicated investment advisor For you, time is priceless, which is why a trained personal advisor is assigned to you as a one-point contact, guiding you and attending to all your investment related needs. The advisor on an ongoing basis helps you restructure and monitor your portfolio based on research desk's recommendations as well as provides procedural assistance, both through online and offline modes. Value added services We also offer value added services that help your portfolio like transaction audit for transactions done through HDFC Bank, tax guidance and opinions in related areas.

Insurance Services
What is Insurance? Insurance is a form of risk management you pay a set amount called a premium to an insurer and the insurer agrees to cover the costs associated with certain risks that could be financially devastating if they were to happen. There are a number of different types of insurance including: Car Insurance By law if you have a car you must, at the very least, have third party insurance. Third party insurance covers any injury or loss suffered by other people as a result of your driving. Comprehensive insurance is an all inclusive type of insurance that covers the cost of repair or replacement if your car is stolen, damaged or destroyed and includes any loss suffered by Third parties. Home Insurance

Some of the risks your home may be subject to include damage by fire or flooding, burglary or someone injuring themselves on your property. Taking out insurance can cover you for some of these risks. Travel Insurance There are many risks associated with travel including damage or delay of luggage, cancelled flights, delayed or missed departure, loss or theft of money or passport and illness or injury. Travel insurance can help compensate you in the eventuality of these things happening. Health Insurance Private health insurance helps cover medical or hospital expenses if you get sick, have and accident or need an operation. Payment Protection insurance Payment Protection insurance is designed to cover your repayments on a loan if you suffer from an accident, illness, death or redundancy.

Internet Banking Services

Internet banking is convenient

The advent of the World Wide Web in the mid-1990s brought information to our fingertips. Using the Internet, we can shop, pay bills, hear weather reports, play interactive games and keep abreast of breaking news. In recent years, both Internet-based and traditional brick-andmortar banks have set up shop online, allowing their patrons to send, receive and monitor money in their accounts. According to the U.S. Department of the Treasury, there are three types of Internet banking: informational, communicative and transactional.

Read more: Types of Internet Banking |

1. Informational Internet Banking


This fundamental level of banking does not allow patrons to view or maintain accounts, nor does it allow for communication between the financial institution and customers. Informational Internet banking simply means the bank provides basic information about its products and services, much like a brochure. This is meant for marketing purposes only, and there is no connection to the bank's main computer systems.

Communicative Online Banking


Communicative online banking allows for some communication between the patron and bank. However, this is typically limited to fundamental interactions such as account inquiries, new account updates, loan or mortgage applications, contact information updates and balances. Communicative online banking may connect with the bank's main computer systems.

Transactional Internet Banking


The most popular online banking type, transactional Internet banking offers all of the benefits of a traditional brick-and-mortar institution. This includes full control over your accounts---deposits, withdrawals, transfers, updates and online payments. Increased security measures now make Internet banking safe, secure and convenient, especially in the case of mobile online banking.

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Fund Based Services

Working Capital Finance We offer working capital facilities - both fund-based and fee-based. Fund-based working capital products include cash credit, overdraft, bill discounting, short-term loans, export financing (pre-shipment as well as post-shipment). Fee based facilities include letters of credit and bank guarantees. Working Capital facilities are provided to finance the day-to-day business requirements. Funding requirements are structured to finance procurement of raw materials/stores and payment towards manufacturing costs and other overheads. Sales are financed against sundry debtors/ receivables. The Bank offers a combination of operative cash credit and working capital demand loan to meet the domestic working capital requirements of our clients. Short Term Finance The Bank offers short-term loans for a period ranging from 3 months to 12 months to sound corporates for meeting their specific short-term working capital requirements. The funds are provided with interest rates either linked to our BPLR or at a fixed rate with varying repayment patterns. Bill Discounting This product enables corporates to fund their operating cycle right from the stage of procurement to sale. Bill Financing is extended by IndusInd Bank to its clients at competitive rates. Letter of credit backed bill discounting and clean bill discounting are the convenient mode of financing for domestic trade transactions. BOE could be broadly classified into Demand and Usance bills and are further classified into clean and documentary bills Export Finance As an important incentive to the exporters community for boosting exports, financial assistance in Rupees is extended to exporters on priority basis on relatively liberal terms. Such finance is provided both at pre-shipment stage (as working capital finance) and at post-shipment stage (to bridge the time lag between the shipment of goods and the realisation of proceeds). Interest charged on export credit is exempted from the purview of interest tax. Term Lending We offer term loans to both Industrial as well as Infrastructure sectors promoted by strong business houses. These loans are for a period of 3-5 years with a moratorium period. Interest rates could be fixed or floating linked to the bank's BPLR. Buyers Credit / Suppliers Credit This facility provides total flexibility to corporates to utilise the line (sanctioned limit) of credit. The terms of the line of credit are either predetermined or negotiated at the time of availment. This facility is used as and when the client has a requirement

Non Fund Based Services

Letter of Credit The Basic objective of Letter of Credit is to facilitate orderly movement of trade. It is therefore necessary that the evidence of movement of goods is present. Banks are not connected with the quality / quantity of the goods and are concerned only with the documents which should conform to the terms and conditions of Letter of Credit. IndusInd Bank establishes Letters of Credit for inland and foreign transactions. Bank Guarantees Bank Guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default. IndusInd Bank sanctions Bank Guarantee limit to facilitate issue of guarantees on behalf of its clients. Various types of guarantees offered are financial, performance, bid bond, tenders, customs, etc. Our guarantees are well accepted. Our overseas correspondent bank alliances also enable us to issue guarantees overseas for participation in global tenders, etc.

Mobile Banking
Mobile / SMS Banking
our latest mobile sms banking services

The bank is ushering in to the new area of technology. We are delighted to introduce SMS Banking to all our customers. Presently SMS Alert facility is free to the customers. There are two types of services available namely SMS PUSH Alerts and SMS PULL Alerts. The bank is introducing the Push Alert facility, initially and the Pull Alerts Services will be introduced later.


TMB recently introduced M-Banking which is different from Mobile SMS Banking. Click Know more about M-Banking to learn about the services offered under M-Banking.
The eligible Push Alert services are as follows

To send an alert when the account balance goes above the maximum balance specified by the customers. To send an alert when the transaction amount credited is Rs. 10,000 and above or the amount specified by the customer, whichever is higher. To send an alert when the transaction amount debited is Rs. 10,000 and above or the amount specified by the customer, whichever is higher. To send an alert when a cheque is bounced. The send an alert when the outstation cheque is realized. To send an alert when a cheque deposited by the customer gets returned un paid. To send the end of day balance of the specified account given by the customer (CA / OD / CC). To send reminding alert seven days before the maturity of the term deposit accounts (Amount may not be mentioned). To send reminding alert seven days before the installment due date for the loan accounts (Amount may not be mentioned).

Other than the listed alerts, facilities like changing the Access Code, Temporarily disabling of Service / Enabling of Service will be provided in phased manner.
Eligible customers

Any customer (resident / non-resident) who has a SB / CA / CC / OD account (in his individual capacity) in our bank is eligible for this service. The customer can also include his joint account even if the mode of operation is Either or Survivor or Former or Survivor. In the former case, all the joint account holders have to sign the registration form and the alerts will be sent to their registered Mobile number and in the latter case, the all the account holders have to sign the registration form and the alerts will be sent to the formers mobile number only. SMS Banking facilities are also offered to the Karta (HUF), Partnership as well as Limited Company account holders also who are maintaining Current / Overdraft / Cash Credit accounts with the below mentioned Conditions:. In case of partnership accounts, signature of all the partners has to be obtained in the Customer Registration Form. And a declaration as per the Annexure - I (Format: MS Word "DOC" File) is to be obtained. In case of Limited Companies, signature of the Authorized signatory[ies] as per the account opening documents has to be obtained in the Customer Registration Form. And a board resolution as per the Annexure - II (Format: MS Word "DOC" File) is to be obtained. Further, the facility is not available if the accounts are operated jointly by two or more partners / directors.

SMS Banking facilities to the Karta of HUF who are maintaining Savings Bank / Current / Overdraft / Cash Credit accounts are allowed with the below mentioned Conditions and submission of undertaking in the Annexure - III (Format: MS Word "DOC" File) format. A declaration cum indemnity in the annexed format should be obtained from HUF members, authorizing the Karta of HUF to act on behalf of them. The same should be executed in Rs.100/- Non judicial stamp paper or according to the prevailing laws of respective States where the account is maintained. Further Only the HUF account can be linked and no other account in the individual capacity should be linked.
Registration Process

Customers have to submit the application form (as enclosed in the annexure) by giving their mobile number, account number and alert details. The customer has the option to choose or not to choose the different alerts available.
Security features

Customer will receive the alerts only in the mobile number, which he has registered with our bank. Moreover the sensitive information such as account number is not sent as a whole. But only the last six digits and account type will be sent to the customer. The customer can receive his account balance and transactions only when the request is received from the mobile phone number registered with us and duly authenticated by the 4 digit Code Number, which will be provided when PULL Alert services are introduced. The mobile phone number and the Code number from which the service is accessed will serve as a User ID and password for authentication. The Code number has therefore to be kept confidential. Click to Download the SMS Banking Application Form (Format: Adobe "PDF" Document) to apply for mobile sms banking services. For complete details governing the SMS alert services offered by the bank, please refer to our SMS Alert Terms and Conditions (Format: Adobe "PDF" Document) document.

Trade Services

Trade Finance products are specialised bank products designed to reduce the risks and uncertainties associated with commercial transactions, thus, facilitating trade. To compete successfully in the ever-expanding international trade arena, which requires the financial ability to minimise the buyer's cost, maximise the seller's offer, and manage the commercial, political and currency risks on both sides.

Export Services

Selling your products and services in the global market need not be a painstaking process for you anymore. With Commercial Bank handling all of your export related transactions - its no more hassles! With faster credits through our global network of branches and access to collection information through E-mail alerts and a dedicated Trade Toll Free Number - you have greater control over your foreign receivables. Through a dedicated and expert Trade and Forex Advisory desk - we can structure and customise solutions for your specific requirement. a. Export Bill Collection Services By routing your Documentary Collections through Citibank you can now enjoy faster credit of your export credits through our global network of branches in more than 100 countries. With easy access to collection information details - you can now be in complete control of your foreign receivables! b. Export Packing Credit (Pre-Shipment Finance) We provide pre-shipment finance in the form of Export Packing Credit to manage your cash flows for the purpose of procuring raw materials, manufacturing, processing, transporting, warehousing, packing, shipping of goods, etc. You can avail this facility in Indian Rupees (Packing Credit) or in a foreign currency (PCFC - Packing Credit in Foreign Currency). Please walk in to the nearest branch or call your Relationship Manager to know more! c. Export Bills Negotiation (Post-Shipment Finance) We also negotiate your Export Bills Drawn under a Letter of Credit (LC), if the documents submitted comply with the Terms of the LC. This offering is in the form of a loan advanced to you to bridge the working capital need that may arise after shipping of goods to the date of realisation of your export proceeds. And this comes to you at a very competitive rate of finance! d. Export Bill Purchasing and Discounting (Post-Shipment Finance) If your Export Bills are not drawn under a Letter of Credit (LC) - we can advance an amount against sanctioned credit limits immediately after shipment of goods. e. Export LC Advising With an international presence in more than 100 countries and a strong correspondent bank network (more than 6,500 banks globally) we advise LCs for customers and non-customers across the country. Once received these LCs are advised to you without any delay and under committed time frames. Through our expertise we can explain complex LC terms to help you assist in error - free document preparation. f. Export LC Confirmation Services To protect your export receivables against the political climate or credit risk of the buyer's country, we offer LC Confirmation Services. Once confirmed you are assured of payment subject to your submission of non-discrepant documents irrespective of non-payment by LC opening bank.

g. Export Document Scrutiny Services A small discrepancy in your export document can lead to refusal of document acceptance or delayed payments resulting in financial losses for you. This can adversely affect your cash flows and profits. With a specialist team of trade exports scrutinising your export documents and a rigorous process of checking you can be assured of not only saving substantially on the discrepancy fee of foreign banks but of any risks that may arise in case the documents get rejected.

Import Services
Being a privileged customer of Commercial Bank you now have access to the complete suite of import services. By being a leading bank of international repute, we can offer you customised solutions to suit your business requirements. Our wide presence helps us deliver products in a speedy and efficient manner and also helps in simplifying and faster query resolution, responses to follow ups and reimbursements. a. Import Letter of Credit A letter of credit represents an unconditional undertaking by the Issuing Bank to pay/accept to pay to the beneficiary on fulfillment of stipulated documentary conditions. Hence, the creditworthiness of the bank replaces that of the buyer. Citibank issues, advises, amends, confirms and pays sight and time letters of credit through its extensive network of branches and correspondent bank relationships. We boast of a high level of expertise in providing advisory services in the structuring of Letter of Credits to suit the specific requirements of your transactions. Our trade team is well equipped to structure solutions for a variety of purchase requirements, ranging from simple LCs to revolving LCs, to Standby Letters of Credit. b. Import Payments Services With us you can be assured of a prompt and efficient handling of your Import Collection Documents, direct import documents or advance payments. Our team of experts will carefully scrutinise the documents and assist you in effecting payments for the goods purchased from abroad. With our trade advisory services you can now be advised on various provisions that exist in FEMA relating to such payments and effecting faster and efficient remittances to your supplier. c. Supplier and Buyer's Credit We can arrange for financing your imports through a buyer's/supplier's credit at very competitive rates of interest. This is a foreign currency loan and interest rates are typically linked to the LIBOR rate of the currency of finance.

Bank Guarantees
A bank guarantee is an undertaking by the Bank on behalf of its client to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain Terms and Conditions of an agreement and contract. Types of Guarantee that are available are:

Financial Guarantee: These guarantees are irrevocable undertaking by the banks to guarantee repayment of financial obligation Performance Guarantee: Such guarantees are an irrevocable undertaking to make payment in the event the customer fails to perform a non-financial contractual obligation Shipping Guarantee: These kind of guarantees are issued in favor of the shipping company to enable importer to take delivery of goods without shipping documents Others

You can now have BGs issued through us with 100% cash collateral or against an existing line with us.

Domestic Trade

Collection of domestic purchase or sale documents Extensive tie up with local banks Faster realisation of payments

Non Banking Activities Services

A bank cannot survive without performing the following non-banking activities:

1. 2. 3. 4. 5. 6. 7. 8. 9. Banks help their customers to make utility payments with ease. They perform merchant banking for their customers. They provide factoring services to their clients. They manage mutual funds and minimize investment risks. They issue gift cheques to the people. They conduct feasibility study and submit the feasibility report. They facilitate the share transactions by maintaining demat accounts. They offer credit and debit cards facility. They also offer leasing services.

10. They give hire-purchase services to owners of various goods. 11. They are now allowed to offer insurance services. 12. They provide funds (capital) for starting new ventures.

Now let's discuss important non-banking activities performed by banks.

1. Utility Payments

Banks make utility payments for their customers. Utility payments include payment of an Electricity bill, Insurance premiums, phone bill, water bill, etc. They also pay SIP (Systmatic Investment Plan) payments to Mutual funds for their customers. These payments are made by using the Electronic Clearance Scheme (ECS). Banks charge a small (nominal) fee for making these payments.

2. Merchant Banking

Large banks perform merchant banking for their customers. They help them to raise finance. They give them advice about starting and running a business. They help their customers to make a profit in the stock exchange. They even do project management. They also help in expanding and modernizing the business of their clients. Today, banks help to revive (cure) sick industries. They also help in restructuring the business.

3. Factoring Services

Banks also provide factoring services to their clients. Factoring is an agreement between a bank (factor) and a business firm (client). Under this agreement, the business firm sells goods and services to their customers on credit. The bank (factor) purchases the customers' Bills Receivable or debtors account from the business firm. So, the business firm is guaranteed payment for their credit sales. However, the bank (factor) decides whom to give credit and how much credit to give.

4. Mutual Funds

Mutual funds are very popular because of expansion and diversification of the financial sector. The Unit Trust of India (UTI) was the first financial institution to start mutual funds in India. Many other banks now have mutual funds such as ICICI Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, etc. Mutual Funds are controlled by SEBI. Mutual Funds are purchased by investors because they offer minimum risk, maximum return and liquidity. Mutual funds with their resources and expertise invest on behalf of individual investors giving them capital appreciation with minimum risk. Mutual funds publish the NAV (Net Asset Value) of their funds daily. They also repurchase the units issued by them based on their NAV. Investors who like to play safe go for mutual funds.

5. Gift Cheques

Gift cheques are printed in attractive colours and designs. Gift cheques are issued by banks to the public. They can give these cheques as a present on auspicious occasions like marriage, birthdays, retirements, promotion, anniversary, etc. They are normally issued for Rs. 11, 21, 51 and 101. The purchaser makes full payment at the time of purchase. Gift cheques are transferable by hand delivery. These cheques have an expiry date. If a gift cheque is lost, a duplicate is issued. These cheques are payable on demand. The payee can claim the money at any branch of the issuing bank.

6. Feasibility Reports

Banks conduct feasibility study on behalf of the client and submit the feasibility report. This report shows chances of success of the project. Feasibility study is conducted before starting the project or business. Conducting feasibility study is not compulsory, but it gives many benefits to the businessman. Banks like IDBI or any commercial bank can conduct feasibility study in functional areas such as technical, managerial, financial and economic. After completion of feasibility study, the banks submit a feasibility report. Based on this report the businessman decides whether to do the project / business or not.

7. Demat Account

Demat is a commonly used name for dematerialization. Traditionally, shares were held in a physical form. Under dematerialization, shares are held in an electronic form. Demat account is like money kept in a savings account. You can deposit and withdraw the amount whenever you want. The transactions in electronic shares are quick, safe and simple. The shares purchased by a shareholder are transferred in his name on the next day of payout. A

shareholder can sell and transfer his electronic shares from his office / house through a broker. Most of the shares are under demat. Banks facilitate the share transactions by maintaining demat accounts in their branch.

8. Credit and Debit Cards

Most large banks offer credit card facilities. Indian credit card market is growing at 30-35% per annum. ICICI, Citi, HDFC and SBI are the leading banks that offer credit card facilities. Most of the banks also offer debit cards to their customers. With the help of debit cards, the customers can make payments for the goods and services. This amount gets deducted from the balance they hold with the banks.

9. Leasing Services

Indian banks offer leasing services. In March 1994, RBI permitted banks to enter leasing finance provided following conditions are fulfilled:
1. Specialized branches must be opened for doing this work. 2. Banks may give lease finance up to 10% of their total advances. 3. Assets in leasing will be treated as assets carrying 100% risk weightage.

10. Hire Purchase

Banks provide hire-purchase services. They finance hire-purchase contracts. Here, the owner of goods hires them to another party for a certain period and for the payment of a specific installment. The transfer of goods is passed on to the user after a definite period provided payment of all specified installments is clear.

11. Insurance

Banks are now allowed to offer insurance services through separate branches. Many Indian banks such as ICICI, IDBI, HDFC, etc., have entered into foreign collaborations to provide

life insurance service in India. ICICI has joined Prudential Life, HDFC with Standard Life, IDBI with Fortis (now Federal) to provide life insurance services to Indians.

12. Venture Capital Services

Banks like ICICI, SBI, IDBI provides venture capital services. Here, banks provide funds for starting new ventures and for high-risk businesses with high-profit potential. Venture capital helps businessmen to get funds for highly risky projects. Venture capital means to buy shares in high-risk projects / businesses with high-profit potential.

Custody services
Custody services of financial instruments The Bank administers investments guaranteeing safety and effective management of the portfolios of its clients, prompt execution of instructions, competent and fast service. Custody services tailored to the needs of the clients custody services to domestic pension insurance companies, collective investment schemes, insurance companies, as well as to a vast number of international clients. The Bank offers servicing of domestic and international issues if financial instruments. CUSTODY SERVICES OF FINANCIAL INSTRUMENTS custody services related to financial instruments issued in the country and abroad. The Bank administers investments by guaranteeing safety and effective management of the portfolios of its clients, prompt execution of instructions, competent and fast service.

Key Features

Custody and Settlement Services Depository Receipts Broker Back office Escrow Accounts Foreign Direct Investment Internet Interface for Clients

The custodial services offered by Kotak Mahindra Bank include:

Custody And Settlement Services

Account Opening: Kotak Mahindra Bank would assist clients for the custody account opening documentation requirements and facilitate clients during the SEBI registration process . These would include: 1. Clarification on existing guidelines 2. Providing assistance during the application process including vetting of application forms 3. Liaison with SEBI and feedback to client on application status

Transaction Settlement: As a Clearing Member with the clearing houses of leading Indian Stock Exchanges (NSE & BSE), KMBL performs clearing and settlement of cash and securities on behalf of clients. Securities Safekeeping: Provides safekeeping services for securities held - both in electronic as well as physical forms Corporate Actions: KMBL custody tracks for corporate actions and does corporate actions processing for both voluntary and involuntary events on behalf of its clients. This involves application made to issuers on behalf of clients, income collection and following-up for corporate action events like dividend, interest, redemption, bonus, rights, etc. Standardized and Customized Reporting: Investors need meaningful information that offers insight to their investment portfolios. Apart from the very comprehensive standard suite of reports, KMBL provides customized reports to clients at various frequencies to enable clients to efficiently manage their securities portfolio, cash balances and take more informed investment decisions. Compliance Monitoring and Regulatory Reporting: KMBL would monitor compliance to existing guidelines by investors and facilitate reporting to regulators and local authorities on behalf of the client. Foreign Exchange Services: KMBL has a dedicated foreign exchange desk that takes care of client needs for currency conversions and risk management products. Proxy Services: KMBL would act on client instructions and participate and vote on their behalf in shareholders' meetings of companies.

Depository Receipts
KMBL would coordinate with local custodians to ensure prompt receipt of underlying securities against cancelled depository receipts and report the same to clients on priority basis.

DP Back office for Brokers

KMBL manages the pay-in and pay-out of securities to / from clearing houses of Stock Exchanges on behalf of trading member brokers and does depository transfers of securities on behalf of trading members.

Escrow Accounts
KMBL has expertise in customized solution for escrow arrangements.

Foreign Direct Investment

KMBL Custody facilitates in the following manner during FDI transactions undertaken by clients:

Close co-ordination between company / counter-party and client for the date of transaction and movement of funds and shares on the transaction date. Compliance of transaction with regulations Follow-up with company for filing of necessary documents with regulators

Internet Interface for Clients

KMBL combines technology and a deep understanding of the investment process to transform data into information that our clients need to make investment decisions. KMBL provides one of its kind web enabled interface to its Custody Services clients. The web interface delivery system provides different types of information that clients need and in a manner that is most efficient. The web interface provides the following functionalities to its clients:

Instruction input for market transactions Instruction input for voluntary corporate actions Online generation of various standard reports and ad hoc reports Online monitoring of cash and security balances

We maintain a strong commitment to the securities servicing business and technology plays a critical role in every thing we do. We invest extensively in the latest and most advanced technology solutions so we can in turn offer the most advanced solutions and the broadest range of value added services to our clients.

NRI Services
Types of Accounts 1.Savings Account

Non-Resident External (NRE) Savings Account Non-Resident Ordinary (NRO) Saving Account

1.NRE bank account A. A NRE bank account is Non-Resident External Account. Since it is an external Account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country. Money can be freely transferred from NRE account to NRO account. 2.What is NRO bank account A. A NRO bank account is Non-Resident Ordinary Account. Money cannot be transferred from NRO account to NRE account. Erroneously transferred money from NRE account to NRO account, cannot be transferred back to NRE account. NRO has restricted repatriation; money can be repatriated to a limit of 1 million USD per annum after RBI reporting through supported applications - 15CA & CB 2.PINS Account
Any NRI or a PIO wanting to trade/make fresh investments in the Indian Equity Secondary Market, needs and must have one PINS account with only one designated bank in India. Notes:

1. PINS account is applicable only for NRIs and not for resident Indians.

2. It is only for trading in Indian markets and not in any other foreign markets

3. It is applicable only for equity trades and not for Mutual fund investments.

3.Trading Account Trading accounts is used to place-execute the order over respective stock exchange. NRI's can transact over registered Indian stock exchange National stock exchange (NSE) & Bombay stock exchange (BSE) through the trading account NRE Trading Code -> NRE Saving Account & NRE Pins Account NRO Trading Code -> NRO Saving Account & NRO Pins Account 4.DEMAT Account Demat refers to Dematerialization. Demat Account is essentially used for holding shares. In a transaction, if a purchase transaction is punched in and the order is successfully executed at the exchange the demat account is credited by the said number of shares and in case of a sell order the Demat account is debited with the said number of shares. NRI Demataccounts : Features
i. ii. iii. Demat account can be held jointly or singly as per the preference of the customer. Nomination facility is provided on the Demat accounts. Demat account helps to maintain the transactions details such as the date of purchase; cost of the transaction; selling price of the transaction etc.

Alternative Financial Services

Alternative financial services in the United States refers to a particular type of financial service, namely sub-prime lending (that is lending to people with relatively poor credit) by non-bank financial institutions. This branch of the financial services industry is more extensive in the United States than in some other countries, because the major banks in the U.S. are less willing to lend to people with marginal credit ratings than their counterparts in many other countries. Examples of these companies include American General Finance, Inc.,Duvera Financial, Inc., Lendmark Financial Services, Inc., HSBC Finance, CIT, CitiFinancial, Wells Fargo Financial, and Monterey Financial Services, Inc.[citation needed] The more generic name "consumer finance" is also used, although more properly the term applies to financing for any type of consumer.
1. Existing Alternative Financial Services

To understand the local market for alternative financial services, community development organizations must be thoroughly aware of the existing retail financial services within their target communities, both as possible competition and as potential partners in an effort to serve lowincome families in a more affordable and responsible way. CDOs should do an exhaustive inventory of check cashing and other AFSPs, as well as existing bank and credit union branches within their footprint. This will include understanding the services and fees offered by each of these kinds of businesses. For check cashers, CDOs will want to fully understand services offered, fees, hours, and operating methods. It is important to be fully aware of the checking and savings account options offered by local banks and credit unions, and their accessibility and feasibility to serve a lowincome client base. Furthermore, this inventory will need to include the availability and rate structure of smalldollar loans as well as check cashing and

Microfinance services
Microfinance itself is a credit lending model, and within this lending model exist several subcategories, i.e. microfinance lending models, which differ in terms of where their funds are sourced from, and how the money is governed. This post briefly mentions each lending model (explained in detail at GDRCs website) and lists microfinance providers that follow these models.

Microfinance Lending Model 1: Associations

An association is formed by the poor in the target community to offer microfinance services (micro savings, microcredit, micro-insurance, etc.) to themselves. The association, which can form on the basis of gender, religion, or political and cultural orientation of its members, then gathers capital and intermediates between banks, MFIs and its members. Example: Self Help Groups, SHGs (India)

Microfinance Lending Model 2: Bank Guarantees

A donor or government agency guarantees microloans made by a microfinance/commercial bank to an individual or group of borrowers. Compulsory deposits by borrowers in such banks are also included in this model. Examples: AfriCap Microfinance Fund (Mauritius), Bellwether Microfinance Fund (India), Latin America Bridge Fund, Microfinance Credit Guarantee Facility (Pakistan)

Microfinance Lending Model 3: Community Banking/ Grameen Bank/ Village Banking

Community Banks/Village Banks are formal versions of associations and are created by members of a target community who wish to improve their living standards and to generate employment. By offering microfinance services, these banks seek to develop their communities. Guarantees are provided by social collateral (peer-pressure) as services are distributed through 5-member groups where each members eligibility for loans is based on his/her peers performance. Examples: Grameen Bank (Bangladesh), MuCoBa (Tanzania)

Microfinance Lending Model 4: Cooperatives

Cooperatives are very much like associations and Community Banks except that their ownership structure does not include the poor. A group of middle or upper class individuals may form a co-op to offer microfinance services to the poor. Examples: Co-operative Bank (England), Cooperative Rural Bank of Bulacan (Phillipines)

Microfinance Lending Model 5: Credit Unions

In a credit union, members of a target community gather their money and make loans to one another at low interest rates. Compared to community banks, credit unions are smaller and non-profit oriented, charging interest rates that merely allow sustainability (read 10 determinants of interest rates in microfinance). Example: Unin Progresista Amatitlaneca (Guatemala), Vancity Credit Union (Canada)

Microfinance Lending Model 6: Non-Governmental Organizations (NGOs)

Unlike community-based models, NGOs are external organizations and their activities range from offering microfinance services (loans, insurance, savings, etc.) to improving credit rating of the poor, training, education and research. NGOs may also act as intermediaries between the poor and donor agencies (UN, ADB, World Bank) and operate locally, as well as globally (through a physical or online presence). Examples: ACCION International (headquarters in USA), KIVA (Headquarters in USA), Kashf Foundation (Pakistan)

Microfinance Lending Model 7: For-profit Banks

Commercial Banks, as well as specialized Microfinance Banks offer various financial services to the poor but the main purpose may be to secure a high return on investment. Unlike other models, the aim is social development as well as financial progress, beyond institutional sustainability. Read about a bank that exploited the poor under the guise of microfinance. Examples: Bank Compartamos (Mexico), Khushali Bank (Pakistan)

Microfinance Lending Model 8: ROSCAs Rotating Savings and Credit Associations (ROSCAs)

ROSCAs are small groups, typically composed of women, where each member makes regular cyclical contributions into a common fund, which is given entirely to one member at the start of each cycle (weekly, monthly, quarterly). The benefit of this model is the matching of a clients cashflows with the loan, the ability to structure the deal without interest rates, and the absence of over-head costs. Example: Say, a group of 10 women come together in January and pitch in $7 each, making a total of $70, and this sum is given to Member A for the month. In February, another $70 is gathered and given to Member B, and the cycle continues for 10 months (10 members). No interest is charged, and social collateral ensure the money is returned.