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PARA BANKINGSTRATEGIES FOR IMPROVEMENT / IMPLEMENTATION OF PARA BANKIN

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Group participants

1. Sherekar Sheetal S.

2. Patil Bhakti R.

3. Panchal Suman S.

4. Landge Swati B.

5. Kadam Sudesh U.

6. Kelkar Ashwini B.

7. Salaskar Rachna A.

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INTRODUCTION

Para Banking : The activities which are done by a Bank apart fr

normal day to day transactions ( like deposit , withdrawal etc..Para-Banking Activities / Operations.

The Para Banking launched various schemes considering the da

earner to the businessmen.

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HISTORY OF PARA BANKING

In 1929 central banking enquiry committee investigate th

reasons for the failure for the current banking scenario : low level of liquid assets

long term loans on short term deposits.

No proper guidelines from govt or banking authoriti

Unlimited liabilities / irregular credit policies.

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Para BankingActivities & Services

Mutual Fund Business

Smart / Debit Card Business.

Insurance :- a) Life Insurance

b) General Insurance.

Safety Net Schemes.

Referral services

Collection Of Various Bills.

Franking.

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Mutual Fund Business

Prior approval of the RBI

Should not use the name of the sponsoring bank as part of their n

Banks can act only as an agent of the customers.

Banks are not required to buy back units of

Mutual Funds from their customers.

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Smart / Debit Card business :

Banks can introduce smart/on-line debit cards with the approval of

Boards

Banks should obtain prior approval of RBI

Banks with net worth of Rs.100 crore and above are only eligible toundertake issue of off-line debit cards

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Insurance

SCBs and its subsidiaries are permitted to undertake insurance bu

agent of insurance companies

A) Life Insurance

B) General Insurance

Note: Deccan Merchant bank tie up with Birla Sun life insurance

& General Insurance tie up with Bharati AXA general insura

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Safety Net Schemes

Certain banks/subsidiaries provide buy-back facilities

There is no income commensurate with the risk of loss built into the

The investor will take recourse to the facilities offered under the sch

Banks/their subsidiaries have been advised that they should refrain

such Safety Net facilities.

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Referral services

1. Bank should ensure that the selection of third party issuers of the

products is done in such a manner so as to take care of the reputat

2. The bank should make it explicitly clear upfront to the customer

that it is purely a referral service and strictly on a non-risk particip

3. The third party issuers should adhere to the relevant regulatory

guidelines applicable to them.

4. While offering referral services, the bank should strictly adhere to

the relevant RBI guidelines.

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Collection Of Various Bills

1. Electricity Bills

2. Telephone bills

3. Mahanagar Gas

FrankingSell of Government Stamps

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Strategy & planning

Leveraging IT

Suggestion and feedback from customer

Learning with competitor

Product promotion

Prospectus sell

Improve Marketing and Sales Effectiveness

Keys to a Successful Planning Process

banksstrategic planning process should answer the following four q

Where are we now?

Where do we want to be?

How do we get there?

How do we measure our progress?

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THANK YOU !Questions are welcome