TRENDS IN BANKING

INTRODUCTION

Today we have a fairly well developed banking system with different classes of banks : Public sector banks Foreign banks Private sector banks Regional rural banks Co-operative banks with the RESERVE BANK OF INDIA as the foundation head of the system.

During last 41 years since 1969, there has been tremendous changes in the banking industry like : Gold deposit scheme Venture capital Consumer credit Net banking ATM cards (Debit & credit) Financing Phone banking Green card for farmers

Effect of the new trends in banking : Customer satisfaction Easy accessibility to bank Economic development Wide International connect More safety Helpful towards many organisations More security of money

GOLD DEPOSIT SCHEME

The banks offer a gold deposit scheme, which allows investors to earn interest on the gold lying idle with them. This scheme is open to resident Indian individuals, Hindu undivided families, trusts & companies. The deposit is typically offered for 3-7 years. Only designated branches of a bank are authorized to offer the scheme.

FACTORS INCLUDED IN THE SCHEME :ACCOUNT :The investor needs to provide: Proof of identity & address, photograph, along with the application form for opening the account. Nomination form in case of individuals. ECS form for credit of interest directly in the bank account. An inventory form, giving description of the gold deposited.

TYPE OF GOLD :The gold offered for the deposit can be in the form of jewelry, bars or coins. The minimum quantity of gold that can be deposited is specified by each bank.

INTEREST :The interest on gold deposit is calculated on the basis of the principal quantity of gold deposit & applicable rate of interest. Effectively, one can earn an interest amount that is calculated in gold terms, but paid in rupees.

DEPOSIT CERTIFICATE :On submission of documents & gold, a preliminary assessment of the quantity of gold is carried out & a provisional receipt is issued. The gold deposited is then melted to determine the content of pure gold with uniform fineness & is converted into bars. Subsequently, a gold deposit certificate is issued for the weight within 90 days. OTHERS : Loans can be availed of against gold deposit certificates. After the lock-in period, premature payment maybe allowed subject to a penalty.

ADVANTAGES OF GOLD DEPOSIT SCHEME

You get interest on idle gold. Tax benefits. If prices of gold raise, you can stand to

gain. Loan facility. No locker costs & theft worries. No upper limit.

DISADVANTAGES :Most of the schemes are

plain money saving schemes. You cant redeem money. Gold saving schemes are designed to guarantee future sales.

SOME OF GOLD SCHEMES IN MARKET :Gold harvest from Tanishq Jewels for less from PC jewelers Gold tree from GRT jewelers Jos Alukkas gold saving schemes Kothari gold deposit scheme Gold schemes- Bheema Gold