DEPOSITS PRESENTATION  BY  S. K. VAZE
DEPOSITS  GENERAL POINTS <ul><li>DEPOSITS CONSTITUTE A VITAL SOURCE OF FUNDS TO A BANK. </li></ul><ul><li>SURVIVAL OF A CO...
DEPOSITS VARIOUS KINDS OF DEPOSITORS <ul><li>1) INDIVIDUALS </li></ul><ul><li>2) JOINT ACCOUNTS </li></ul><ul><li>3) SOLE ...
DEPOSITS VARIOUS KINDS OF DEPOSITORS <ul><li>7) CLUBS, SCHOOLS, SOCITIES, ASSOCIATIONS, COMMITTEES </li></ul><ul><li>8) TR...
DEPOSITS INDIVIDUAL ACCOUNT <ul><li>PURELY A PERSONAL ACCOUNT </li></ul><ul><li>TO BE OPERATED UPON BY THE ACCOUNT HOLDER ...
DEPOSITS JOINT ACCOUNT <ul><li>ACCOUNT IN THE NAME OF TWO OR MORE  INDIVIDUALS  </li></ul><ul><li>FOR CONVENIENCE OF OPERA...
DEPOSITS JOINT ACCOUNT <ul><li>MODE OF OPERATIONS IS IMPORTANT </li></ul><ul><ul><li>FORMER OR SURVIVOR </li></ul></ul><ul...
DEPOSITS JOINT ACCOUNT <ul><li>ON DEATH OF ONE OF THE ACCOUNT HOLDER, BALANCE BECOMES PAYABLE TO THE SURVIVORS. LEGAL HEIR...
DEPOSITS SOLE PROPRIETORSHIP CONCERN <ul><li>ACCOUNT IN THE NAME OF BUSINESS OWNED BY ONE INDIVIDUAL </li></ul><ul><li>IT ...
DEPOSITS PARTNERSHIP FIRM <ul><li>PARTNERSHIP IS A RELATIONSHIP BETWEEN PARTIES WHO HAVE AGREED TO SHARE THE PROFITS OF BU...
DEPOSITS PARTNERSHIP FIRM <ul><li>A PARTNERSHIP FIRM IS NOT A LEGAL ENTITY BUT IT CONSISTS OF PERSONS WHO ARE CALLED INDIV...
DEPOSITS PARTNERSHIP FIRM <ul><li>A MINOR BEING INCOMPETENT TO CONTRACT CAN NOT BECOME A FULL FLEDGED PARTNER; HOWEVER HE ...
DEPOSITS PARTNERSHIP FIRM <ul><li>IN CASE OF DEATH, RETIREMENT, ADMISSION OR EXPULSION OF A PARTNER, THE CONSTITUTION OF T...
DEPOSITS LIMITED COMPANIES <ul><li>PRIVATE LIMITED COMPANY CAN BE FORMED BY MINIMUM TWO MEMBERS AND MAXIMUM 50 MEMBERS. </...
DEPOSITS LIMITED COMPANIES <ul><li>IT IS NECESSARY FOR PRIVATE LIMITED COMPANY TO WRITE AGAINST ITS NAME WORDS ‘PVT. LTD.’...
DEPOSITS LIMITED COMPANIES <ul><li>ADDITIONAL DOCUMENTS  </li></ul><ul><ul><li>MEMORANDUM OF ASSOCIATION </li></ul></ul><u...
DEPOSITS CLUBS, SCHOOLS, SOCITIES  ETC. <ul><li>ADDITIONAL DOCUMENTS </li></ul><ul><ul><li>CERTIFIED TRUE COPY OF RULES, R...
DEPOSITS TRUSTS <ul><li>A TRUST IS CREATED BY MEANS OFA WRITTEN DOCUMENT KNOWN AS A TRUST DEED. </li></ul><ul><li>PRIVATE ...
DEPOSITS TRUSTS <ul><li>A TRUST IS TERMED PRIVATE IN NATURE IF IT IS CREATED FOR THE BENEFIT OF SPECIFIC INDIVIDUALS THAT ...
DEPOSITS TRUSTS <ul><li>IF HOWEVER, THE TRUST IS CREATED FOR THE BENEFIT OF AN UNCERTAIN AND FLUCTUATING BODY OF PERSONS W...
DEPOSITS TRUSTS <ul><li>SUCH A TRUST IS GENERALLY A NON-PROFIT VENTURE WITH CHARITABLE OBJECT AND IN SUCH CASES IT IS ALSO...
DEPOSITS TRUSTS <ul><li>A TRUST CREATED FOR RELIGIOUS PURPOSES IS TERMED AS A RELIGIOUS TRUST AND IT CAN BE EITHER A PRIVA...
DEPOSITS TRUSTS <ul><li>A RELIGIOUS ENDOWMENT MADE VIA TRUSTEES TO A SPECIFIED PERSON IS A PRIVATE TRUST AND THE ONE TO TH...
DEPOSITS TRUSTS <ul><li>A PUBLIC TRUST IS NORMALLY PERMANENT OR AT LEAST INDEFINITE IN DURATION.  BUT A PRIVATE TRUST DOES...
DEPOSITS TRUSTS <ul><li>AT THE EXPIRY OF PURPOSE OF THE TRUST,  OR </li></ul><ul><li>HAPPENING OF AN EVENT,  OR  </li></ul...
DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>NAME AND ADDRESS </li></ul></ul><ul><ul><li>PRO...
DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>NOMINATION </li></ul></ul><ul><ul><li>POWER OF ...
DEPOSITS GENERAL POINTS <ul><li>NOMINATION </li></ul><ul><ul><li>NOMINEE BECOMES ENTITLED TO RIGHTS OF DEPOSITOR </li></ul...
DEPOSITS GENERAL POINTS <ul><li>MANDATE:  </li></ul><ul><ul><li>IT IS AN AUTHORITY IN WRITING BY WHICH AN ACCOUNT HOLDER E...
DEPOSITS GENERAL POINTS <ul><li>POWER OF ATTORNEY: </li></ul><ul><ul><li>IT IS AN INSTRUMENT BY WHICH ONE PERSON IS EMPOWE...
DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM  </li></ul><ul><ul><li>WHY INTRODUCTION </li></ul></ul><ul><ul><ul><u...
DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM  </li></ul><ul><ul><li>WHO CAN INTRODUCE </li></ul></ul><ul><ul><ul><...
DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM  </li></ul><ul><ul><li>LIABILITY OF INTRODUCER </li></ul></ul><ul><ul...
DEPOSITS  <ul><li>TRADITIONALLY DEPOSITS ARE BROADLY CLASSIFIED INTO TWO TYPES: </li></ul><ul><ul><li>1) DEMAND DEPOSITS W...
DEPOSITS <ul><li>DEMAND DEPOSITS </li></ul><ul><ul><li>CURRENT DEPOSITS </li></ul></ul><ul><ul><ul><li>NO INTEREST IS PAID...
DEPOSITS <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>SHORT TERM WHICH ARE PLACED FOR A PERIOD OF LESS THAN A YEAR </li></u...
DEPOSITS <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>FIXED DEPOSIT </li></ul></ul><ul><ul><li>CUMULATIVE DEPOSIT  </li></u...
DEPOSITS  <ul><li>FIXED DEPOSITS </li></ul><ul><ul><li>INTEREST IS PAID PERIODICALLY TO THE DEPOSITOR </li></ul></ul><ul><...
DEPOSITS <ul><li>CUMULATIVE DEPOSIT </li></ul><ul><ul><li>INTEREST IS PAID ON ACCRUED INTEREST. </li></ul></ul><ul><ul><li...
DEPOSITS <ul><li>RECURRING DEPOSITS </li></ul><ul><ul><li>THE DEPOSITOR CREDITS A FIXED AMOUNT TO HIS ACCOUNT AT DEFINITE ...
DEPOSITS <ul><li>SWEEP IN SWEEP OUT </li></ul><ul><ul><li>COMBINATION OF CURRENT AND TIME DEPOSITS. </li></ul></ul><ul><ul...
DEPOSITS SERVICES PROVIDED TO DEPOSITORS <ul><li>COLLECTION OF CHEQUES / BILLS </li></ul><ul><li>CARRYING OUT STANDING INS...
DEPOSITS  GENERAL POINTS <ul><li>TERM DEPOSITS </li></ul><ul><ul><li>AUTOMATIC RENEWAL ON MATURITY </li></ul></ul><ul><ul>...
DEPOSITS  GENERAL POINTS <ul><li>TERM DEPOSITS </li></ul><ul><ul><li>INTEREST CAN BE PAID FOR HOLIDAY PERIOD IF DEPOSIT MA...
DEPOSITS  GENERAL POINTS <ul><li>A TERM DEPOSIT MATURED ON  23-03-2004. ON THAT DAY, BANK’S INTEREST RATE FOR ONE YEAR WAS...
DEPOSITS  GENERAL POINTS <ul><li>ON 23-06-2004 DEPOSITOR REQUESTED BANK TO RENEW DEPOSIT FOR ONE YEAR.  TO GET THE BENEFIT...
DEPOSITS  GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>LEGAL NECESSITY </li></ul></ul><ul><ul><ul><li>...
DEPOSITS  GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>BANKING PRACTICE </li></ul></ul><ul><ul><ul><li...
DEPOSITS  GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>IN THE INTEREST OF PUBLIC </li></ul></ul><ul><u...
DEPOSITS  GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>THE DISCLOSURE SHOULD BE BASED ON FACTS AND SHO...
DEPOSITS  GENERAL POINTS <ul><li>INOPERATIVE ACCOUNTS </li></ul><ul><li>DORMANT ACCOUNTS </li></ul><ul><li>OVERDUE TIME DE...
DEPOSITS  GENERAL POINTS <ul><li>RENEWAL OF DEPOSIT BEFORE ITS MATURITY TO GET ADVANTAGE OF ENHANCED INTEREST RATES. </li>...
DEPOSITS <ul><li>ACCOUNT IS IN THE NAMES OF A AND B PAYABLE TO ‘EITHER OR SURVIVOR’. A ISSUES A CHEQUE. B INSTRUCTS TO STO...
DEPOSITS PAYMENT OF INTEREST <ul><li>CURRENT DEPOSITS – NO INTEREST </li></ul><ul><li>SAVINGS DEPOSITS – INTEREST IS PAID ...
DEPOSITS PAYMENT OF INTEREST <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>FIXED DEPOSITS – INTEREST IS APPLIED QUARTERLY AN...
ACCOUNTS OF  DECEASED DEPOSITORS <ul><li>EVIDENCE OF DEATH </li></ul><ul><ul><li>ANNOUNCEMENT IN NEWSPAPER </li></ul></ul>...
ACCOUNTS OF  DECEASED DEPOSITORS <ul><li>ON RECEIVING EVIDENCE OF DEATH OF ACCOUNT HOLDER, THE OPERATIONS ON ACCOUNT ARE S...
ACCOUNTS OF  DECEASED DEPOSITORS <ul><li>LEGAL HEIRS CAN OBTAIN A SUCCESSION CERTIFICATE FROM A COURT. </li></ul><ul><li>E...
DEPOSITS <ul><li>“A” WINS SOME AMOUNT FROM “B” IN GAMBLING. “B” ISSUES A CHEQUE IN FAVOUR OF “A”, WHO IN TURN ENDORSES IT ...
DEPOSITS <ul><li>i) FROM “A” </li></ul><ul><li>ii) FROM “B” </li></ul><ul><li>iii) BOTH FROM “A” AND “B” </li></ul><ul><li...
STOP PAYMENT INSTRUCTIONS <ul><li>PAYMENT OF A CHEQUE CAN BE STOPPED BY </li></ul><ul><ul><li>A) PAYEE </li></ul></ul><ul>...
STOP PAYMENT INSTRUCTIONS <ul><li>IN CASE A CHEQUE, WHOSE PAYMENT HAS BEEN STOPPED, IS PAID, THE LIABILITY IS THAT OF </li...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>BANK ENSURES THAT WHILE THE CUSTOMER'S MONEY EARNS INTEREST AS A FIXED DEPOSIT, IT TUR...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>AVERAGE MONTHLY BALANCE OF RS.20000/-TO BE MAINTAINED IN THE SPECIAL PREMIUM SAVINGS A...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>B ALANCE AVAILABLE IN THE ACCOUNT, IN EXCESS OF RS.20000/-, ON ANY DAY, GETS AUTOMATIC...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>IN THE EVENT OF SHORTFALL IN SB ACCOUNT FOR HONOURING CHEQUES DRAWN BY CUSTOMER, THE F...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>NO PENALTY IS CHARGED FOR BREAKING THE FIXED DEPOSIT PREMATURELY. HOWEVER, THE AMOUNT ...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>EVEN WHILE BREAKING THE FIXED DEPOSIT, ONLY THE MOST RECENTLY CONVERTED FIXED DEPOSIT ...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>ONLY THOSE AMOUNTS SWEPT OUT OF YOUR SPECIAL PREMIUM SAVINGS ACCOUNT ARE ELIGIBLE FOR ...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>WHEN FIXED DEPOSITS MATURE AT THE END OF 1 YEAR 1 DAY, THE BANK WILL RENEW THE PRINCIP...
SWEEP IN SWEEP OUT DEPOSITS <ul><li>IF THE MONTHLY AVERAGE BALANCE IN THE SPECIAL PREMIUM SAVINGS ACCOUNT GOES BELOW RS.20...
DEPOSITS  <ul><li>BANK MAY RECEIVE THE DEPOSIT FROM CUSTOMER IN ONE OF THE FOLLOWING 3 METHODS </li></ul><ul><ul><li>1) BY...
DEPOSITS <ul><li>IN VIEW OF THIS, BANK TRANSACTIONS ARE BROADLY CLASSIFIED IN FOLLOWING 3 WAYS </li></ul><ul><ul><li>1) CA...
CASH TRANSACTIONS <ul><li>MOST VULNERABLE AND RISKY AREA  </li></ul><ul><ul><li>THEFT </li></ul></ul><ul><ul><li>FORGED NO...
CASH TRANSACTIONS <ul><li>CASH TRANSACTIONS ARE BALANCED ON DAILY BASIS AS UNDER: </li></ul><ul><ul><li>CLOSING CASH = OPE...
CASH TRANSACTIONS <ul><li>TO PREVENT FRAUDS, THE PRACTICE OF MAINTAINING A SCROLL OF ALL CASH RECEIPTS IS FOLLOWED BY THE ...
CASH TRANSACTIONS <ul><li>AT THE END OF THE DAY THIS WILL BE TALLIED WITH CASH DEPARTMENT </li></ul><ul><li>THIS ENSURES T...
CASH TRANSACTIONS <ul><li>AS AN ABUNDANT PRECAUTION (FOR HIGH VALUE TRANSACTIONS), SAME TRANSACTION IS PASSED THROUGH SECO...
CASH TRANSACTIONS <ul><li>CASH RECEIVED FROM CUSTOMERS IS IDLE MONEY FOR THE BANK. </li></ul><ul><li>AFTER KEEPING SUFFICI...
TRANSFER TRANSACTIONS <ul><li>IF THE AMOUNT OR FUNDS ARE TRANSFERRED FROM ONE ACCOUNT TO ANOTHER ACCOUNT IN THE SAME BRANC...
CLEARING TRANSACTIONS <ul><li>WHEN A CUSTOMER DEPOSITS A CHEQUE IN HIS ACCOUNT WHICH IS DRAWN ON ANOTHER BANK, THEN IT NEE...
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Deposits

  1. 1. DEPOSITS PRESENTATION BY S. K. VAZE
  2. 2. DEPOSITS GENERAL POINTS <ul><li>DEPOSITS CONSTITUTE A VITAL SOURCE OF FUNDS TO A BANK. </li></ul><ul><li>SURVIVAL OF A COMMERCIAL BANK DEPENDS ON </li></ul><ul><ul><li>QUANTUM OF DEPOSITS HELD BY IT. </li></ul></ul><ul><ul><li>THE WAY DEPOSITS ARE MANAGED </li></ul></ul><ul><li>HENCE BANKERS ADOPT MARKETING APPROACH </li></ul>
  3. 3. DEPOSITS VARIOUS KINDS OF DEPOSITORS <ul><li>1) INDIVIDUALS </li></ul><ul><li>2) JOINT ACCOUNTS </li></ul><ul><li>3) SOLE PROPRIETORSHIP CONCERN </li></ul><ul><li>4) PARTNERSHIP FIRM </li></ul><ul><li>5) HINDU UNDIVIDED FAMILY(HUF) </li></ul><ul><li>6) LIMITED COMAPNIES </li></ul>
  4. 4. DEPOSITS VARIOUS KINDS OF DEPOSITORS <ul><li>7) CLUBS, SCHOOLS, SOCITIES, ASSOCIATIONS, COMMITTEES </li></ul><ul><li>8) TRUSTS </li></ul>
  5. 5. DEPOSITS INDIVIDUAL ACCOUNT <ul><li>PURELY A PERSONAL ACCOUNT </li></ul><ul><li>TO BE OPERATED UPON BY THE ACCOUNT HOLDER </li></ul><ul><li>MAY AUTHORISE ANOTHER PERSON TO OPERATE THE ACCOUNT THROUGH MANDATE OR BY EXECUTING A POWER OF ATTORNEY IN HIS FAVOUR. </li></ul>
  6. 6. DEPOSITS JOINT ACCOUNT <ul><li>ACCOUNT IN THE NAME OF TWO OR MORE INDIVIDUALS </li></ul><ul><li>FOR CONVENIENCE OF OPERATIONS </li></ul><ul><li>TO AVOID LEGAL COMPLICATIONS UPON DEATH OF ONE OF THE ACCOUNT HOLDERS. </li></ul>
  7. 7. DEPOSITS JOINT ACCOUNT <ul><li>MODE OF OPERATIONS IS IMPORTANT </li></ul><ul><ul><li>FORMER OR SURVIVOR </li></ul></ul><ul><ul><li>EITHER OR SURVIVOR </li></ul></ul><ul><ul><li>JOINTLY OR SURVIVOR </li></ul></ul>
  8. 8. DEPOSITS JOINT ACCOUNT <ul><li>ON DEATH OF ONE OF THE ACCOUNT HOLDER, BALANCE BECOMES PAYABLE TO THE SURVIVORS. LEGAL HEIRS ARE NOT ENTITLED TO CLAIM AMOUNT UNLESS THEY BRING PROHIBITORY ORDERS FROM COMPETENT COURT REFRAINING BANK FROM MAKING PAYMENT TO THE SURVIVORS. </li></ul>
  9. 9. DEPOSITS SOLE PROPRIETORSHIP CONCERN <ul><li>ACCOUNT IN THE NAME OF BUSINESS OWNED BY ONE INDIVIDUAL </li></ul><ul><li>IT IS IDENTICLE TO INDIVIDAL ACCOUNT EXCEPT THAT IT IS OPENED IN HIS TRADING NAME INSTEAD OF HIS OWN NAME. </li></ul>
  10. 10. DEPOSITS PARTNERSHIP FIRM <ul><li>PARTNERSHIP IS A RELATIONSHIP BETWEEN PARTIES WHO HAVE AGREED TO SHARE THE PROFITS OF BUSINESS CARRIED ON BY ALL OR ANY ONE OF THEM ACTING FOR ALL. </li></ul>
  11. 11. DEPOSITS PARTNERSHIP FIRM <ul><li>A PARTNERSHIP FIRM IS NOT A LEGAL ENTITY BUT IT CONSISTS OF PERSONS WHO ARE CALLED INDIVIDUALLY AS PARTNERS AND COLLECTIVELY AS A FIRM. </li></ul><ul><li>A FIRM CAN HAVE MAXIMUM 20 PARTNERS BUT 10 FOR A FIRM ENGAGED IN BANKING BUSINESS </li></ul>
  12. 12. DEPOSITS PARTNERSHIP FIRM <ul><li>A MINOR BEING INCOMPETENT TO CONTRACT CAN NOT BECOME A FULL FLEDGED PARTNER; HOWEVER HE CAN BE ADMITTED TO THE BENEFITS OF A FIRM. </li></ul>
  13. 13. DEPOSITS PARTNERSHIP FIRM <ul><li>IN CASE OF DEATH, RETIREMENT, ADMISSION OR EXPULSION OF A PARTNER, THE CONSTITUTION OF THE FIRM IS CHANGED. </li></ul><ul><li>EXISTING ACCOUNT NEEDS TO BE CLOSED AND A NEW ACCOUNT OF THE RECONSTITUTED FIRM SHOULD BE OPENED. </li></ul>
  14. 14. DEPOSITS LIMITED COMPANIES <ul><li>PRIVATE LIMITED COMPANY CAN BE FORMED BY MINIMUM TWO MEMBERS AND MAXIMUM 50 MEMBERS. </li></ul><ul><li>PUBLIC LIMITED COMPANY CAN BE FORMED BY MINIMUM 7 MEMBERS AND NO LIMIT ON HIGHER SIDE. </li></ul>
  15. 15. DEPOSITS LIMITED COMPANIES <ul><li>IT IS NECESSARY FOR PRIVATE LIMITED COMPANY TO WRITE AGAINST ITS NAME WORDS ‘PVT. LTD.’ </li></ul>
  16. 16. DEPOSITS LIMITED COMPANIES <ul><li>ADDITIONAL DOCUMENTS </li></ul><ul><ul><li>MEMORANDUM OF ASSOCIATION </li></ul></ul><ul><ul><li>ARTICLES OF ASSOCIATION </li></ul></ul><ul><ul><li>CERTIFICATE OF INCORPORATION </li></ul></ul><ul><ul><li>CERTIFICATE OF COMMENCEMENT OF BUSINESS </li></ul></ul><ul><ul><li>A CERTIFIED COPY OF BOARD RESOLUTION </li></ul></ul>
  17. 17. DEPOSITS CLUBS, SCHOOLS, SOCITIES ETC. <ul><li>ADDITIONAL DOCUMENTS </li></ul><ul><ul><li>CERTIFIED TRUE COPY OF RULES, REGULATIONS AND BYE-LAWS </li></ul></ul><ul><ul><li>A COPY OF RESOLUTION PASSED BY MANAGING COMMITTEE APPOINTING THE BANK AS THEIR BANKERS AND SPECIFYING THE NAMES OF OFFICE-BEARERS WHO ARE AUTHORISED TO OPERATE UPON THE ACCOUNT. </li></ul></ul>
  18. 18. DEPOSITS TRUSTS <ul><li>A TRUST IS CREATED BY MEANS OFA WRITTEN DOCUMENT KNOWN AS A TRUST DEED. </li></ul><ul><li>PRIVATE TRUSTS AND PUBLIC OR CHARITABLE TRUSTS. </li></ul><ul><ul><li>CERTIFIED TRUE COPY OF RULES, REGULATIONS AND BYE-LAWS </li></ul></ul><ul><ul><li>NAMES OF OFFICE-BEARERS AUTHORISED TO OPERATE UPON THE ACCOUNT </li></ul></ul>
  19. 19. DEPOSITS TRUSTS <ul><li>A TRUST IS TERMED PRIVATE IN NATURE IF IT IS CREATED FOR THE BENEFIT OF SPECIFIC INDIVIDUALS THAT IS, INDIVIDUALS WHO ARE DEFINED AND ASCERTAINED INDIVIDUALS OR WHO WITHIN A DEFINITE TIME CAN BE DEFINITELY ASCERTAINED </li></ul>
  20. 20. DEPOSITS TRUSTS <ul><li>IF HOWEVER, THE TRUST IS CREATED FOR THE BENEFIT OF AN UNCERTAIN AND FLUCTUATING BODY OF PERSONS WHO CANNOT BE ASCERTAINED AT ANY POINT OF TIME,FOR INSTANCE THE PUBLIC AT LARGE OR A SECTION OF PUBLIC FOLLOWING A PARTICULAR RELIGION, PROFESSION OR FAITH, THE TRUST IS TERMED AS PUBLIC TRUST. </li></ul>
  21. 21. DEPOSITS TRUSTS <ul><li>SUCH A TRUST IS GENERALLY A NON-PROFIT VENTURE WITH CHARITABLE OBJECT AND IN SUCH CASES IT IS ALSO REFERRED TO AS THE CHARITABLE TRUST. </li></ul>
  22. 22. DEPOSITS TRUSTS <ul><li>A TRUST CREATED FOR RELIGIOUS PURPOSES IS TERMED AS A RELIGIOUS TRUST AND IT CAN BE EITHER A PRIVATE OR A PUBLIC TRUST. </li></ul>
  23. 23. DEPOSITS TRUSTS <ul><li>A RELIGIOUS ENDOWMENT MADE VIA TRUSTEES TO A SPECIFIED PERSON IS A PRIVATE TRUST AND THE ONE TO THE GENERAL PUBLIC OR A SECTION THEREOF IS A PUBLIC TRUST. </li></ul>
  24. 24. DEPOSITS TRUSTS <ul><li>A PUBLIC TRUST IS NORMALLY PERMANENT OR AT LEAST INDEFINITE IN DURATION. BUT A PRIVATE TRUST DOES NOT WORK IN PERPETUITY AND ESSENTIALLY GETS TERMINATED </li></ul>
  25. 25. DEPOSITS TRUSTS <ul><li>AT THE EXPIRY OF PURPOSE OF THE TRUST, OR </li></ul><ul><li>HAPPENING OF AN EVENT, OR </li></ul><ul><li>AT ANY RATE, TWENTY ONE YEARS AFTER THE DEATH OF THE LAST TRANSFEREE LIVING AT THE TIME OF THE CREATION OF THE TRUST. </li></ul>
  26. 26. DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>NAME AND ADDRESS </li></ul></ul><ul><ul><li>PROOF OF RESIDENCE </li></ul></ul><ul><ul><li>PHOTOGRAPH </li></ul></ul><ul><ul><li>SPECIMEN SIGNATURE OR LEFT HAND THUMB IMPRESSION </li></ul></ul><ul><ul><li>OPERATIONAL INSTRUCTIONS </li></ul></ul>
  27. 27. DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>NOMINATION </li></ul></ul><ul><ul><li>POWER OF ATTORNEY OR MANDATE </li></ul></ul><ul><ul><li>PERSONAL INFORMATION (OPTIONAL) </li></ul></ul><ul><ul><li>CHEQUE BOOK REQUISITION SLIP </li></ul></ul>
  28. 28. DEPOSITS GENERAL POINTS <ul><li>NOMINATION </li></ul><ul><ul><li>NOMINEE BECOMES ENTITLED TO RIGHTS OF DEPOSITOR </li></ul></ul><ul><ul><li>ONLY ONE PERSON CAN BE APPOINTED AS NOMINEE. </li></ul></ul><ul><ul><li>NOMINEE AS WELL AS NOMINATOR SHOULD BE INDIVIDUALS </li></ul></ul><ul><ul><li>GUARDIAN SHOULD BE NAMED TO ACT IN CASE THE NOMINEE IS A MINOR </li></ul></ul>
  29. 29. DEPOSITS GENERAL POINTS <ul><li>MANDATE: </li></ul><ul><ul><li>IT IS AN AUTHORITY IN WRITING BY WHICH AN ACCOUNT HOLDER EMPOWERS ANOTHER TO OPERATE ACCOUNT ON HIS BEHALF. </li></ul></ul><ul><ul><li>IT IS NOT REQUIRED TO BE STAMPED. </li></ul></ul><ul><ul><li>IT COMES TO AN END DUE TO DEATH / INSOLVENCY/ LUNACY OF EITHER. </li></ul></ul>
  30. 30. DEPOSITS GENERAL POINTS <ul><li>POWER OF ATTORNEY: </li></ul><ul><ul><li>IT IS AN INSTRUMENT BY WHICH ONE PERSON IS EMPOWERED TO ACT FOR ANOTHER. </li></ul></ul><ul><ul><li>IT SHOULD BE STAMPED AS PER INDIAN STAMP ACT. </li></ul></ul><ul><ul><li>IT STANDS REVOKED BY DEATH / INSOLVENCY / LUNACY OF THE CUSTOMER. </li></ul></ul>
  31. 31. DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>WHY INTRODUCTION </li></ul></ul><ul><ul><ul><ul><li>A DEFINITE MEASURE OF PROTECTION AGAINST OPENING OF ACCOUNTS UNDER FICTITIOUS NAMES. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TO ESTABLISH IDENTITY OF THE CUSTOMER </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TO GET PROTECTION U/S 131OF NI ACT- RISK OF CONVERSION </li></ul></ul></ul></ul>
  32. 32. DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>WHO CAN INTRODUCE </li></ul></ul><ul><ul><ul><ul><li>EXISTING ACCOUNT HOLDER </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PASSPORT </li></ul></ul></ul></ul><ul><ul><ul><ul><li>WELL KNOWN PERSON </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PAN </li></ul></ul></ul></ul><ul><ul><ul><ul><li>VOTER’S CARD </li></ul></ul></ul></ul><ul><ul><ul><ul><li>RATION CARD </li></ul></ul></ul></ul>
  33. 33. DEPOSITS GENERAL POINTS <ul><li>ACCOUNT OPENING FORM </li></ul><ul><ul><li>LIABILITY OF INTRODUCER </li></ul></ul><ul><ul><ul><li>NOT LEGALLY LIABLE BUT MORAL LIABILITY. </li></ul></ul></ul><ul><ul><ul><li>NOT LIABLE FOR FRAUDS COMMITTED </li></ul></ul></ul><ul><ul><ul><li>HOWEVER LIABLE IF CUSTOMER TURNS OUT TO BE FICTITIOUS </li></ul></ul></ul><ul><ul><ul><li>AS SUBSTANTIVE REQUIREMENT RATHER THAN A FORMALITY. </li></ul></ul></ul>
  34. 34. DEPOSITS <ul><li>TRADITIONALLY DEPOSITS ARE BROADLY CLASSIFIED INTO TWO TYPES: </li></ul><ul><ul><li>1) DEMAND DEPOSITS WHICH MAY BE WITHDRAWN AT ANY TIME. </li></ul></ul><ul><ul><li>2) TIME DEPOSITS WHICH ARE DEPOSITED FOR A CERTAIN PERIOD OF TIME. </li></ul></ul>
  35. 35. DEPOSITS <ul><li>DEMAND DEPOSITS </li></ul><ul><ul><li>CURRENT DEPOSITS </li></ul></ul><ul><ul><ul><li>NO INTEREST IS PAID </li></ul></ul></ul><ul><ul><ul><li>NO RESTRICTIONS ON WITHDRAWALS </li></ul></ul></ul><ul><ul><li>SAVINGS DEPOSITS </li></ul></ul><ul><ul><ul><li>SPECIFIC RATE OF INTEREST IS PAID </li></ul></ul></ul><ul><ul><ul><li>RESTRICTIONS ON WITHDRAWALS </li></ul></ul></ul>
  36. 36. DEPOSITS <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>SHORT TERM WHICH ARE PLACED FOR A PERIOD OF LESS THAN A YEAR </li></ul></ul><ul><ul><li>LONG TERM WHICH ARE PLACED FOR A PERIOD OF MORE THAN ONE YEAR </li></ul></ul>
  37. 37. DEPOSITS <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>FIXED DEPOSIT </li></ul></ul><ul><ul><li>CUMULATIVE DEPOSIT </li></ul></ul><ul><ul><li>RECURRING DEPOSIT </li></ul></ul><ul><ul><li>SWEEP IN SWEEP OUT DEPOSITS </li></ul></ul>
  38. 38. DEPOSITS <ul><li>FIXED DEPOSITS </li></ul><ul><ul><li>INTEREST IS PAID PERIODICALLY TO THE DEPOSITOR </li></ul></ul><ul><ul><ul><li>MONTHLY, QUARTERLY, HALF YEARLY </li></ul></ul></ul><ul><ul><li>THE PRINCIPAL IS REPAID ON MATURITY. </li></ul></ul>
  39. 39. DEPOSITS <ul><li>CUMULATIVE DEPOSIT </li></ul><ul><ul><li>INTEREST IS PAID ON ACCRUED INTEREST. </li></ul></ul><ul><ul><li>COMPOUNDING OF INTEREST </li></ul></ul><ul><ul><li>ON MATURITY PRINCIPAL PLUS INTEREST IS REPAID TO THE DEPOSITOR. </li></ul></ul>
  40. 40. DEPOSITS <ul><li>RECURRING DEPOSITS </li></ul><ul><ul><li>THE DEPOSITOR CREDITS A FIXED AMOUNT TO HIS ACCOUNT AT DEFINITE INTERVALS (GENERALLY MONTHLY) FOR A FIXED PERIOD. </li></ul></ul>
  41. 41. DEPOSITS <ul><li>SWEEP IN SWEEP OUT </li></ul><ul><ul><li>COMBINATION OF CURRENT AND TIME DEPOSITS. </li></ul></ul><ul><ul><li>DEPOSITOR ENJOYS MAXIMUM BENEFIT. </li></ul></ul><ul><li> </li></ul>
  42. 42. DEPOSITS SERVICES PROVIDED TO DEPOSITORS <ul><li>COLLECTION OF CHEQUES / BILLS </li></ul><ul><li>CARRYING OUT STANDING INSTRUCTIONS. </li></ul>
  43. 43. DEPOSITS GENERAL POINTS <ul><li>TERM DEPOSITS </li></ul><ul><ul><li>AUTOMATIC RENEWAL ON MATURITY </li></ul></ul><ul><ul><li>LOAN OR OVERDRAFT FACILITY </li></ul></ul><ul><ul><li>PREMATURE PAYMENT </li></ul></ul><ul><ul><li>PERIOD NOT EXCEEDING 10 YEARS </li></ul></ul><ul><ul><li>ADDITIONAL RATE OF INTEREST </li></ul></ul><ul><ul><li>TAX DEDUCTED AT SOURCE </li></ul></ul>
  44. 44. DEPOSITS GENERAL POINTS <ul><li>TERM DEPOSITS </li></ul><ul><ul><li>INTEREST CAN BE PAID FOR HOLIDAY PERIOD IF DEPOSIT MATURES ON A HOLIDAY </li></ul></ul><ul><ul><li>INTEREST WILL NOT BE PAID FOR OVERDUE DEPOSITS UNLESS IT IS RENEWED FOR A PERIOD OF 30 DAYS FROM THE DATE OF RENEWAL </li></ul></ul>
  45. 45. DEPOSITS GENERAL POINTS <ul><li>A TERM DEPOSIT MATURED ON 23-03-2004. ON THAT DAY, BANK’S INTEREST RATE FOR ONE YEAR WAS 7.50 % P.A. IT WAS CHANGED TO 8.50 % P.A. FROM 24-03-2004. </li></ul>
  46. 46. DEPOSITS GENERAL POINTS <ul><li>ON 23-06-2004 DEPOSITOR REQUESTED BANK TO RENEW DEPOSIT FOR ONE YEAR. TO GET THE BENEFIT OF HIGHER INTEREST RATE, DEPOSITOR REQUESTED THE BANK TO RENEW DEPOSIT WITH EFFECT FROM 24-03-2004. HOW BANK SHOULD PROCEED? </li></ul>
  47. 47. DEPOSITS GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>LEGAL NECESSITY </li></ul></ul><ul><ul><ul><li>1) RBI ACT </li></ul></ul></ul><ul><ul><ul><li>2) BANKING REGULATION ACT </li></ul></ul></ul><ul><ul><ul><li>3) CRIMINAL PROCEDURE CODE </li></ul></ul></ul><ul><ul><ul><li>4) FEMA </li></ul></ul></ul><ul><ul><ul><li>5) INCOME TAX ACT </li></ul></ul></ul><ul><ul><ul><li>6) COMPANIES ACT </li></ul></ul></ul><ul><ul><ul><li>7) ORDER OF COURT </li></ul></ul></ul>
  48. 48. DEPOSITS GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>BANKING PRACTICE </li></ul></ul><ul><ul><ul><li>CUSTOMER’S CONSENT </li></ul></ul></ul><ul><ul><ul><li>IN THE INTEREST OF THE BANK (TO LAWYERS IN CASE OF FILING OF SUIT) </li></ul></ul></ul><ul><ul><ul><li>CREDIT INFORMATION REQUIRED BY ANOTHER BANK </li></ul></ul></ul>
  49. 49. DEPOSITS GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>IN THE INTEREST OF PUBLIC </li></ul></ul><ul><ul><ul><li>IF BANK CONSIDERS THAT TRANSACTIONS OF CUSTOMER ARE ANTI NATION </li></ul></ul></ul><ul><ul><ul><li>IF RECORDS INDICATE THAT CUSTOMER IS AVOIDING PROVISIONS OF ANY LAW </li></ul></ul></ul><ul><ul><ul><li>IF SIZABLE FUNDS ARE RECEIVED FROM ABROAD </li></ul></ul></ul>
  50. 50. DEPOSITS GENERAL POINTS <ul><li>SECRECY OF ACCOUNTS </li></ul><ul><ul><li>THE DISCLOSURE SHOULD BE BASED ON FACTS AND SHOULD BE WITHOUT ANY BIAS </li></ul></ul><ul><ul><li>IN CASE OF WRONGFUL DISCLOSURE THE BANK WILL BE LIABLE TO CUSTOMER FOR ANY MATERIAL LOSS </li></ul></ul>
  51. 51. DEPOSITS GENERAL POINTS <ul><li>INOPERATIVE ACCOUNTS </li></ul><ul><li>DORMANT ACCOUNTS </li></ul><ul><li>OVERDUE TIME DEPOSITS. </li></ul><ul><li>IN CASE ORIGINAL DEPOSIT RECEIPT IS LOST, THEN DUPLICATE RECEIPT IS NOT ISSUED. </li></ul><ul><li>TERM DEPOSIT RECEIPTS ARE NOT TRANSFERRABLE OR NEGOTIABLE. </li></ul>
  52. 52. DEPOSITS GENERAL POINTS <ul><li>RENEWAL OF DEPOSIT BEFORE ITS MATURITY TO GET ADVANTAGE OF ENHANCED INTEREST RATES. </li></ul><ul><ul><li>INTEREST IS PAID AT THE RATE APPLICABLE ON THE DATE OF INITIAL DEPOSIT FOR THE PERIOD, FOR WHICH DEPOSIT REMAINED WITH THE BANK. </li></ul></ul><ul><ul><li>PENALTY IS NOT CHARGED </li></ul></ul>
  53. 53. DEPOSITS <ul><li>ACCOUNT IS IN THE NAMES OF A AND B PAYABLE TO ‘EITHER OR SURVIVOR’. A ISSUES A CHEQUE. B INSTRUCTS TO STOP PAYMENT. YOU WILL </li></ul><ul><ul><li>i) FOLLOW INSTRUCTIONS OF B </li></ul></ul><ul><ul><li>ii) IGNORE INSTRUCTIONS OF B </li></ul></ul><ul><ul><li>iii) INSIST FOR THE SIGNATURE OF BOTH A AND B FOR STOPPING PAYMENT OF THE CHEQUE </li></ul></ul><ul><ul><li>iv) NONE OF THE ABOVE </li></ul></ul>
  54. 54. DEPOSITS PAYMENT OF INTEREST <ul><li>CURRENT DEPOSITS – NO INTEREST </li></ul><ul><li>SAVINGS DEPOSITS – INTEREST IS PAID ON THE MINIMUM BALANCE IN THE ACCOUNT BETWEEN 10 TH DAY OF THE MONTH AND END OF THE MONTH. INTEREST IS PAYABLE HALF YEARLY. IN FEBRUARY( INTEREST ACCRUED BETWEEN AUGUST AND JANUARY) AND IN AUGUST (INTEREST ACCRUED BETWEEN FEBRUARY AND JULY). </li></ul>
  55. 55. DEPOSITS PAYMENT OF INTEREST <ul><li>TIME DEPOSITS </li></ul><ul><ul><li>FIXED DEPOSITS – INTEREST IS APPLIED QUARTERLY AND PAID TO DEPOSITOR AS PER HIS INSTRUCTIONS. </li></ul></ul><ul><ul><li>CUMULATIVE DEPOSITS – INTEREST IS APPLIED QUARTERLY AND COMPOUNDED. ON MATURITY PRINCIPAL AND INTEREST IS PAID. </li></ul></ul>
  56. 56. ACCOUNTS OF DECEASED DEPOSITORS <ul><li>EVIDENCE OF DEATH </li></ul><ul><ul><li>ANNOUNCEMENT IN NEWSPAPER </li></ul></ul><ul><ul><li>A LETTER FROM NEAREST RELATIVE </li></ul></ul><ul><ul><li>DEATH CERTIFICATE </li></ul></ul>
  57. 57. ACCOUNTS OF DECEASED DEPOSITORS <ul><li>ON RECEIVING EVIDENCE OF DEATH OF ACCOUNT HOLDER, THE OPERATIONS ON ACCOUNT ARE STOPPED. </li></ul><ul><li>CREDITS ARE ALLOWED. </li></ul><ul><li>A CUSTOMER IS SAID TO HAVE DIED INTESTATE, IF HE DIES WITHOUT LEAVING A WILL. </li></ul>
  58. 58. ACCOUNTS OF DECEASED DEPOSITORS <ul><li>LEGAL HEIRS CAN OBTAIN A SUCCESSION CERTIFICATE FROM A COURT. </li></ul><ul><li>EXECUTOR IS THE PERSON NAMED BY THE DECEASED IN HIS WILL. </li></ul><ul><li>ADMINISTRATOR IS A PERSON APPOINTED BY THE COURT IF THE DECEASED HAS DIED INTESTATE. </li></ul>
  59. 59. DEPOSITS <ul><li>“A” WINS SOME AMOUNT FROM “B” IN GAMBLING. “B” ISSUES A CHEQUE IN FAVOUR OF “A”, WHO IN TURN ENDORSES IT IN FAVOUR OF “C” WHO RECEIVES FOR VALUE. IF CEQUE IS DISHONOURED, FROM WHOM WILL “C” RECOVER THE MONEY? </li></ul>
  60. 60. DEPOSITS <ul><li>i) FROM “A” </li></ul><ul><li>ii) FROM “B” </li></ul><ul><li>iii) BOTH FROM “A” AND “B” </li></ul><ul><li>iv) EITHER FROM “A” OR “B” </li></ul>
  61. 61. STOP PAYMENT INSTRUCTIONS <ul><li>PAYMENT OF A CHEQUE CAN BE STOPPED BY </li></ul><ul><ul><li>A) PAYEE </li></ul></ul><ul><ul><li>B) DRAWEE </li></ul></ul><ul><ul><li>C) DRAWER </li></ul></ul><ul><ul><li>D) HOLDER </li></ul></ul>
  62. 62. STOP PAYMENT INSTRUCTIONS <ul><li>IN CASE A CHEQUE, WHOSE PAYMENT HAS BEEN STOPPED, IS PAID, THE LIABILITY IS THAT OF </li></ul><ul><ul><li>A) DRAWER </li></ul></ul><ul><ul><li>B) PAYEE </li></ul></ul><ul><ul><li>C) COLLECTING BANK </li></ul></ul><ul><ul><li>D) PAYING BANK </li></ul></ul>
  63. 63. SWEEP IN SWEEP OUT DEPOSITS <ul><li>BANK ENSURES THAT WHILE THE CUSTOMER'S MONEY EARNS INTEREST AS A FIXED DEPOSIT, IT TURNS LIQUID TO MEET HIS URGENT NEEDS. THAT TOO AT NO EXTRA COST. </li></ul>
  64. 64. SWEEP IN SWEEP OUT DEPOSITS <ul><li>AVERAGE MONTHLY BALANCE OF RS.20000/-TO BE MAINTAINED IN THE SPECIAL PREMIUM SAVINGS ACCOUNT. </li></ul>
  65. 65. SWEEP IN SWEEP OUT DEPOSITS <ul><li>B ALANCE AVAILABLE IN THE ACCOUNT, IN EXCESS OF RS.20000/-, ON ANY DAY, GETS AUTOMATICALLY SWEPT OUT INTO A FIXED DEPOSIT FOR 1 YEAR 1 DAY IN UNITS OF RS.1000/-. </li></ul>
  66. 66. SWEEP IN SWEEP OUT DEPOSITS <ul><li>IN THE EVENT OF SHORTFALL IN SB ACCOUNT FOR HONOURING CHEQUES DRAWN BY CUSTOMER, THE FIXED DEPOSIT IS SWEPT BACK INTO THE SPECIAL PREMIUM SAVINGS ACCOUNT IN REQUIRED NUMBER OF UNITS OF RS. 1000/- FREE OF COST . </li></ul>
  67. 67. SWEEP IN SWEEP OUT DEPOSITS <ul><li>NO PENALTY IS CHARGED FOR BREAKING THE FIXED DEPOSIT PREMATURELY. HOWEVER, THE AMOUNT SWEPT OUT EARNS INTEREST FOR THE PERIOD RUN AT THE APPLICABLE RATE. </li></ul>
  68. 68. SWEEP IN SWEEP OUT DEPOSITS <ul><li>EVEN WHILE BREAKING THE FIXED DEPOSIT, ONLY THE MOST RECENTLY CONVERTED FIXED DEPOSIT IS FIRST BROKEN TO MINIMISE INTEREST LOSS TO THE CUSTOMER . </li></ul>
  69. 69. SWEEP IN SWEEP OUT DEPOSITS <ul><li>ONLY THOSE AMOUNTS SWEPT OUT OF YOUR SPECIAL PREMIUM SAVINGS ACCOUNT ARE ELIGIBLE FOR SWEEP IN AND NOT OTHER FIXED DEPOSITS </li></ul>
  70. 70. SWEEP IN SWEEP OUT DEPOSITS <ul><li>WHEN FIXED DEPOSITS MATURE AT THE END OF 1 YEAR 1 DAY, THE BANK WILL RENEW THE PRINCIPAL FOR A FURTHER PERIOD OF 1 YEAR 1 DAY WHILE CREDITING THE INTEREST TO THE SAVINGS ACCOUNT. </li></ul>
  71. 71. SWEEP IN SWEEP OUT DEPOSITS <ul><li>IF THE MONTHLY AVERAGE BALANCE IN THE SPECIAL PREMIUM SAVINGS ACCOUNT GOES BELOW RS.20000/- ,THEN RS.100/-PER MONTH IS LEVIED AS SERVICE CHARGES </li></ul>
  72. 72. DEPOSITS <ul><li>BANK MAY RECEIVE THE DEPOSIT FROM CUSTOMER IN ONE OF THE FOLLOWING 3 METHODS </li></ul><ul><ul><li>1) BY CASH </li></ul></ul><ul><ul><li>2) FROM EXISTING ACCOUNT OF THE DEPOSITOR WITH THE SAME BRANCH OR ANOTHER BRANCH OF SAME BANK </li></ul></ul><ul><ul><li>3) BY CHEQUE WHICH IS DRAWN ON ANOTHER BANK </li></ul></ul>
  73. 73. DEPOSITS <ul><li>IN VIEW OF THIS, BANK TRANSACTIONS ARE BROADLY CLASSIFIED IN FOLLOWING 3 WAYS </li></ul><ul><ul><li>1) CASH TRANSACTIONS </li></ul></ul><ul><ul><li>2) TRANSFER TRANSACTIONS </li></ul></ul><ul><ul><li>3) CLEARING TRANSACTIONS </li></ul></ul>
  74. 74. CASH TRANSACTIONS <ul><li>MOST VULNERABLE AND RISKY AREA </li></ul><ul><ul><li>THEFT </li></ul></ul><ul><ul><li>FORGED NOTES </li></ul></ul><ul><ul><li>SOILED NOTES </li></ul></ul><ul><ul><li>SHORT RECEIPT </li></ul></ul><ul><ul><li>EXCESS PAYMENT </li></ul></ul>
  75. 75. CASH TRANSACTIONS <ul><li>CASH TRANSACTIONS ARE BALANCED ON DAILY BASIS AS UNDER: </li></ul><ul><ul><li>CLOSING CASH = OPENING CASH + CASH RECEIPTS DURING THE DAY – CASH PAYMENTS MADE DURING THE DAY </li></ul></ul>
  76. 76. CASH TRANSACTIONS <ul><li>TO PREVENT FRAUDS, THE PRACTICE OF MAINTAINING A SCROLL OF ALL CASH RECEIPTS IS FOLLOWED BY THE BANK. </li></ul><ul><li>AN OFFICIAL (NOT ATTACHED TO CASH DEPARTMENT) WILL KEEP A RECORD OF ALL CASH RECEIPTS </li></ul>
  77. 77. CASH TRANSACTIONS <ul><li>AT THE END OF THE DAY THIS WILL BE TALLIED WITH CASH DEPARTMENT </li></ul><ul><li>THIS ENSURES THAT ALL THE CASH TENDERED BY THE CUSTOMERS IS ACCOUNTED FOR. </li></ul>
  78. 78. CASH TRANSACTIONS <ul><li>AS AN ABUNDANT PRECAUTION (FOR HIGH VALUE TRANSACTIONS), SAME TRANSACTION IS PASSED THROUGH SECOND OFFICIAL. </li></ul><ul><li>ARMED GUARDS ARE PLACED </li></ul><ul><li>BURGLAR ALARMS ARE PLACED. </li></ul><ul><ul><li>THE BUTTONS ARE KEPT IN STRATEGIC PLACES IN BRANCH PREMISES. </li></ul></ul><ul><ul><li>DIRECTLY CONNECTED TO NEAREST POLICE STATION </li></ul></ul>
  79. 79. CASH TRANSACTIONS <ul><li>CASH RECEIVED FROM CUSTOMERS IS IDLE MONEY FOR THE BANK. </li></ul><ul><li>AFTER KEEPING SUFFICIENT CASH FOR DAY TO DAY OPERATIONS, THE BRANCHES DEPOSIT THE EXCESS CASH WITH THE NEAREST CURRECY CHEST </li></ul><ul><li>THEREBY THEY EARN INTEREST. </li></ul>
  80. 80. TRANSFER TRANSACTIONS <ul><li>IF THE AMOUNT OR FUNDS ARE TRANSFERRED FROM ONE ACCOUNT TO ANOTHER ACCOUNT IN THE SAME BRANCH OR ANOTHER BRANCH OF THE SAME BANK. </li></ul><ul><li>TRANSFER SCROLL IS MAINTAINED </li></ul><ul><li>DEBIT TRANSFER AND CREDIT TRANSFER MUST TALLY. </li></ul>
  81. 81. CLEARING TRANSACTIONS <ul><li>WHEN A CUSTOMER DEPOSITS A CHEQUE IN HIS ACCOUNT WHICH IS DRAWN ON ANOTHER BANK, THEN IT NEEDS TO BE CLEARED BEFORE CREDITING THE AMOUNT TO THE ACCOUNT OF THE CUSTOMER. </li></ul><ul><li>INWARD CLEARING AND OUTWARD CLEARING </li></ul>

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