The document provides an overview of various topics in banking including: 1. It introduces retail banking, corporate banking, investment banking and private banking and the various services offered under each. 2. It discusses key banking terminology like CASA (current and savings accounts), time deposits, loans, remittances and non-branch delivery channels. 3. It covers banking principles, regulations, accounting practices, lending, types of accounts, and legal and regulatory aspects of banking.

1. Agenda I Introduction to Banking II Introduction to Retail Banking III Banking Terminology IV CASA V Time Deposits VI Loans VII Remittances VIII Non-Branch Delivery Channels IX Audit and Supervision X Software Expectations XI Wrap-Up

2. Introduction to Banking

3. Banks Role of Intermediary Banks and “Banking” Functions Competitors to Banks “ Disintermediation” Changing Role of Banks Towards a Financial Supermarket...

4. What is Banking Borrowing and safe keeping of money Lending of money Transmitting of money Exchanging of money Exchange of financial information

5. BANKING FRAMEWORK Retail Banking CASA, Deposits, Loans, Credit Cards, FX, Remittances, Securitization Corporate Banking Trade Finance, Project Finance, Bills, LCs, Guarantees, Syndicated Financing Investment Banking FX, Money Markets, Securities, Leasing, Factoring

6. Private Banking Trusts, Portfolio Management Fiduciary Services Pensions, Custody Services, Will & Estate Management Other services Correspondent Banking, Safe deposit Vaults, Insurance, Travel, Bill Payment, Tax Counselling BANKING FRAMEWORK-2

7. Retail VS Wholesale Banking Retail Banking Wholesale Banking Focus On Individual Customers Focus On Large Corporate Entities Wide Branch Network Limited Branch Networking Variety Of Services Available Focus On Smaller Customer Base

8. Money Multiplier Effect Money supply creation by Banks Need to regulate and control Methodology of regulation

9. Customer and the Bank Who is a “Customer” Customer Confidentiality “Ownership” of Accounts Precaution against “Conversion” and “Frauds” Legal Responsibility to prevent Money Laundering Breaking country’s Laws

10. Bank-Client Relationship “ Good Faith” Banker’s General Right of Lien Rights of Set -Off “ Estoppel” Confidentiality Disclosure Under Laws of the Land Full Disclosure of Terms and Conditions of Relationship Can bank Discriminate between Customers in Treatment?

11. Interest Accrual Capitalization Accrual Frequency Capitalization Frequency Interest Methods Monthly Minimum, Daily Balance, Average Balance,... Interest Basis 30/360, Actual/Actual, Actual/360,... Withholding tax, Interest tax deduction

12. Bank Accounting Peculiarities “Window Dressing” Income Recognition NPA Classification International Accountancy Rules Capital Adequacy Deposit Risk Cover Protection Banks’ Books of Accounts

13. General Ledger General Ledger and Subsidiary Ledger Central Bank Reporting Multi-Currency Treatment Treatment of Inter-Branch Transactions Treatment of Suspense Accounts, Entries External General Ledger

14. Lending of Money Statutory controls on lending Principles of sound lending Purposes Periods Types of lending Security for advances

15. Principles of Sound Lending Borrower Character Capital Capability Bank Safety of funds Spread of risk Liquidity of funds Profitability Viability of the scheme

16. Traditional Banking... Competition, Disintermediation and Diminishing Spreads Movement towards Fee-income Technology Driving Banking, Banking Driving Technology Market Place crowded, Mixed, Technology-driven

17. Types of lending Fund based Term Loans Cash Credit / Overdraft Purchase & Discount of Bills (inland & foreign) Non Fund based Letters of credit Guarantee Bills Co-acceptance

18. Term Loans Fixed Amount For purchase of fixed assets Payable in suitable installments in lump sum (principal + interest) Usually Secured

19. Cash Credits & Overdrafts Running accounts Drawings fluctuate within a pre-determined band As many drawals as necessary Interest charged on daily balances Cash credit : Usually secured Overdraft : Could be secured or unsecured

20. Bills : Purchase & Discount BILLS INLAND FOREIGN DEMAND USANCE DOCUMENTARY CLEAN

21. Types of Bills Demand Bills Payable on demand or At sight or On presentment or No time for payment specified Usance Bills Payable on the expiry of a certain period after date or sight

22. Types of Bills Clean Bill Unaccompanied by any other allied documents eg : Cheques, Warrants Trade bills without the relative document evidencing dispatch of goods Unsecured. Can be Sight or usance Documentary Bill Accompanied by document of title to goods Secured/Unsecured: Secured/Unsecured

23. Advantages of Bill Business Definite date of repayment Re-discounting facilities Stability of value High profitability Greater legal protection

24. Bill Transactions Collection Purchase & Discount Negotiation

25. Letters of Credit Issuing bank undertakes to make payment to the beneficiary of the LC against presentation of specified documents Beneficiary is assured of payment No immediate outflow of funds Parties to a credit Applicant (buyer) Beneficiary (seller) Issuing bank

26. Guarantees To perform the promise or discharge the liability of a third party in case of his default Three parties Guarantor / Surety (banker) Principal Debtor (on whose behalf) Principal Creditor (in whose favour) Financial Guarantee Performance Guarantee Deferred payment guarantee No immediate outflow of funds

27. Related Services Merchant banking Counselling corporate clients on Capital structure Form of capital to be raised Terms & conditions of the issue Under writing of the issue Timing of the issue Preparation of the prospectus Raising of long term loans

28. Related Services (contd...) Trustee, executor, & admin services To handle Investments / estates / properties Distribution after death To act as guardian of a minor’s property To administer public trusts

29. Factoring Factor maintains the trade debts of the client company Maintains sales ledger Issues invoices Collects payments Credit protection Factor assumes responsibility for trade debts, due to the client company Factor advances a proportion of the trade debts immediately and the balance on maturity of the debts Improves client's liquidity Related Services

30. Clearing House Operations Outward clearing Inward clearing Returns- outward clearing Returns- Inward clearing Re-presentations Time factor Reconciliation

31. Automated Clearing House Electronic clearing Paperless transfers of funds Settlement

32. Foreign Exchange FX Market Exchange rates Risks Revaluation Mark to the market Risk management

33. Legal aspects in Banking Customer Types of legal relationships Duties and obligations Rights and remedies Confidentiality Law relating to Limitations Disclosure regulations in Accounts

34. Law and Banking Application of Law Jurisdiction Civil laws Criminal laws Law of limitation

35. Supervision of Banks “Central” Bank of the country Degrees of supervision Modes of Supervision Audit and self-regulation Importance of proper supervision Cross-country regulation of Banks