Technology in Banks

7/31/2019 Technology in Banks

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Consumer Protection InBanksv Indian Constitution has passed the consumer

protection act 1986 , to protect the interest of theconsumers and to provide them-

v Right to safetyv Right to information

v Right to choice

v Right to be heard

v The right to redress

v The right to consumer education


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Applicability of the act in Banks

v According to section consumer protection Act,includes a person who hires or avails of any service fora consideration.

v Thus, a customer of a bank who has a bank accountwith the bank

v A person who purchases a bank draft,

v Hires locker facilityv Obtains bank guarantee from a bank

v They are all consumers "and can prefer complaints

under the Act for deficiency in service on the part ofthe bank or for restrictive trade ractice or unfair


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RBI has segmented to protect the consumer inBanks in 8 categories-

v Deposit Accounts

v Building of products-

v

Inoperative Accounts-v Minimum Balance-

v Savings bank account-

v Know Your Customer (KYC) Normsv Term Deposits


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v Remittancesv Students who makes frequent payments of small

amounts related to fees for their college feesand all such fees are generally made throughDemand Drafts (DD). Students who do not havebank accounts face difficulty in obtaining drafts

for these purposes.v Travel Visa fee payable at Banks

v Penalty for Returned Cheque

v Automatic cheque drop facility

v Loans & advances

v Time Schedule for dis osin of Loan A lication-


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Institutional Arrangements

Banking codes and standard board of India

Code of Banks Commitment to Customers-2006

Code of Banks Commitment to Micro and SmallEnterprises-2008

fair treatments to customers

q Minimum courtesy and behavioural standards

Transparency

Non-discriminatory policy


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Comprehensive Banking Regulation

banking gets its legal basis from a host of Acts

codified under different enactments like IndianContract Act 1872, Negotiable Instruments Act1881, Indian Limitation Act 1963, Indian Stamp

Act 1899, Banking Regulation Act 1949, RBI Act

1935, IT Act 2000, etc.

Other Aspects

Approach and Attitude to Customer Service:


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Reimbursement in case of Frauds

Empowering Disabled Persons

Customer Service Departments of Banks (CSD)

Information on Fraudulent Accounts


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Technology in banks

Electronic payment system - A means of makingpayment over an electronic network such as theinternet.egs

Electronic fund transfer RTGS

NEFT

Direct debits(ecs)

Direct credits


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RTGS

The acronym RTGS refers to for Real TimeGross Settlement, it is a unique and popularfund transfer mechanism which enables the

transfer of money between two banks on a realtime and on gross basis

The system was launched on March 26, 2004

RBI would recover Rs.25 for each transactionsbut banks will have their own charges to varyfrom bank to bank

About 3000 branches at 275 locations in India

meet this criterion.


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NEFT

NEFT is the abbreviation for National Electronic Funds Transferwhich is an online system for transferring funds between financialinstitutions. This system was introduced in 2005 and is highlyimproved version of EFT (Electronic Funds Transfer) which wasconfined to a select centre.

Transaction below 2 Lakhs is done thru NEFT

Rs 5 charged per transaction and if the transaction value is lessthan 10,000 then they charge Rs 2.50


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AUTOMATED TELLERMANAGEMENT (ATM)v You can withdraw you money anytime

v They are located outside the bank hall for withdrawers of cash

v They listen and follow

instructions from the host

v These save time and

involves less paperwork

v They operate 24hours

v

These use pin for security


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Mobile BankingAccount Information

q Mini-statements andchecking of accounthistory

q Alerts on accountactivity or passing ofset thresholds

q Monitoring of term

deposits

q Access to loanstatements

q Access to card

Payments & Transfers

q Domestic andinternational fundtransfers

q Micro-paymenthandling

q Mobile recharging

q Commercial payment

processing

q Bill paymentprocessing

Investments


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Internet Banking

Advantages

q very convenient

q allow you to pay your bills and maketransactions anytime during the day and theweek.

q The bank will never close because you can

access it through your laptop or computer.q So, no matter in which country you are anywhere

in the world, you can go online and handle yourfinances.

q Gives ou the o tion of handlin


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Anywhere banking

It the process by which customers transact fromany branch in India

Centralized banking


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Overseas Expansion AnInitiative

Tap growth in international trade

Focus on increasing presence in internationalmarkets


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History of OverseasExpansion of Indian Banks

Overseas business of Indian Banking dates backto 1921.

Rapid expansion of Indian Banks oninternational front took place during 1976-1984

Slow down of expansion during 1985-1987

Narrow international spread.


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Recent Developments inOverseas Expansion

As on O ctober 2005, 14 Indian Banks hadoperations spread across 42 countries

SBI announced 51% stake in IOIB in early

February 2005 PNB opening more overseas branches

Bank of Barodas wide overseas presence.


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Inherent

INTERNAL

Insufficiency in capital for setting up overseasoperation

Operations confined

No advancements

Resistance from RBI

EXTERNAL

US Debt and Euro Zone crisis

Competitive Global environment


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Gearing Up for the Future

Finance Ministry influencing PSBs to spreadoverseas

7 banks to lead the expansion drive

Ministry to support banks


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HR is responsible for people issues across thewhole company. This includes things like:

v Making sure the business employs the bestpeople, develop them and ensure they dontleave.

v Working with other divisions such as Legal andCompliance to help set company rules andsometimes communicate those rules to staff

v Ensuring employees are treated fairly, aware

about their rights and that there are measures inplace when something goes wrong

v Help to develop people strategies to meet thegoals of different parts of the business


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Roles of HR in banking:

v Contribution of HR Development in Bank Reform

v Changing Nature of the Banking Industry

v Talent & Recruitment

v Creating Strategic Leadership


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New Practices towards HRM:

v Industrial Relations

v Cost Control

v Remuneration - Relating Pay to Performance

v Changing Culture

v Changing Role of Personnel and Line Managers


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Elements of HRM:

v Recruitment & Selection

v Training & Development

v Performance appraisal

v Promotion

v Compensation

v

Employer-Employee relationship


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Main sub-areas of HR

v Recruitment / resourcing / talent acquisition

v Development

v Reward or compensation and benefits

v Employee relations

v Business partners / strategic partners / HRadvisor

Documents

Technology in Banks