This document provides an overview of various banking services including account types, lending services, foreign currency services, electronic banking services, and information and complaints handling procedures. It discusses the basic services banks provide like deposits, withdrawals, check clearing, and different types of credit facilities. It also outlines services like loans, foreign exchange, ATM access, internet banking, and procedures for addressing customer complaints. The document defines what constitutes a customer and notes they can be individuals or organizations utilizing one or more banking services.

1. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Banker - Customer Relationships
Outline of Bank Services
Types of Accounts
Know Your Customer (KYC)
Savings and Fixed Deposit Accounts
Cheques, Money Transmission, and Other Payment Mechanisms
MODULE COVERAGE
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Code of Banking Practice
Plastic Cards and Electronic Banking

2. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Outline of Banking Services
• A bank will render its customers basic banking services within the limits set by
legislative provisions, regulations issued by authorities and the terms of an
account
• At basic level, banks will provide current and savings account facilities including
deposits and withdrawals, encashment of cheques, clearing collections and
payments, trade finance and different types of credit facilities.
• Banks open accounts for daily banking transactions, savings or investments. The
Savings and Investment accounts earn interest on funds deposited with the Bank
and in some cases on current accounts as well.
• The bank manages assets (mainly cash) entrusted to it by a customer with due
care in accordance with the respective agreement between the bank and the
customer.
• As part of its custodial responsibilities, banks also accept non-cash valuables of its
customers (items like land titles, wills, precious metals) for safe custody till they
retrieve it.
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3. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Lending services
• A Bank lends the customer money that must be paid back with interest at
specified times. For such a transaction, Loan Agreements are signed by
both parties. The loan agreement will stipulate all the terms and
conditions and the responsibilities of each party for the duration of the
loan.
• Information on the various loan alternatives offered by a bank, their
essential terms and conditions and the costs to be paid by a customer
must be availed to the customer. Normally, the bank will require the
customer to provide security for the loan.
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4. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Foreign currency services
• In foreign exchange transactions, banks offer several services including
accounts in foreign currencies if customer has a steady source of foreign
currency income.
• In addition bank customers can freely purchase or sell foreign currencies
to the bank or effect transfers to settle their foreign currency obligations
anywhere in the World. For bank customers travelling abroad, the bank
provides a variety of services including issuance of travellers’ cheques,
foreign currency notes and money transfers
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5. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Electronic banking services
Of recent, banking has been modernized and enhanced through electronic
technology. Largely, electronic records and processing have replaced
paper-based, manual ones. Among the services in electronic banking are:
a) Electronic funds transfer(EFT)between banks on customer’s instructions
b) Access to 24-hour banking services/ financial transactions using
Automatic teller Machines (ATMs) – Both deposits and withdrawals
c) Internet banking services to enable the customers view and operate
their respective accounts through Internet
d) Telephone banking whereby customers access their accounts and give
the bank instructions through mobile phone
e) Facilitation of standing orders and direct debits so that payments for bills
such as water and electricity can be made automatically
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6. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Information on banking services
• To observe the generally accepted principles of providing customers
banking services, banks must provide necessary information in an
accurate and timely way.
• The Information and advertising of services should be clear, truthful
and give an accurate picture of the services offered.
• New customers or existing customers wanting to access new
products need to be given full and accurate information about
those products including charges
• The terms and conditions of the services provided to customers
must spell out the duties and obligations of both parties.
Information on a bank’s service fees, account forms, their terms
and conditions, the means of payment available and on their use
and the interest to be earned on the funds thus deposited will be
available to the customer at the bank.
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7. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Complaints and feedback handling
• Banks are expected to adopt specific, effective procedures
for addressing customer complaints and other feedback
from customers.
• Information regarding the complaints handling procedures
ought to be available to customers in the bank’s branches.
• These should be placed in the banking halls and in the
bank’s overall information network – like the websites and
customer care centres.
• According to Bank of Uganda guidelines, banks are
supposed to respond to a complaint within reasonable
time.
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8. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Who is the customer?
The term ‘customer’ of a bank is not defined by law. Ordinarily a person who has an
account or gets any service in the bank is considered its customer. There is no
statutory definition of “customer”. For a bank a customer is a person utilizing one
or more of the services provided by the bank. A customer of a banker does not
need to be necessarily a person. A firm, company, a society or any separate legal
entity or government department and any entity incorporated by or under the law
may be a customer. The dealings between the Bank and customer should be of a
banking nature which could be:
a. Depositing cash
b. Maintaining accounts
c. Withdrawing cash
d. Borrowing/ lending
e. Use debit or credit cards
f. Foreign Exchange Services
g. Insurance and pension funds management
h. Stock Trading requirements
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