PART-2 BUSINESS STRUCTURE OF BANKING IN INDIA.

PART-2 BUSINESS STRUCTURE OF BANKING IN INDIA.

We have already discussed on business structure of banking in PART-1 OF THE SERIES. Now we will see the complete process and work of Operational Department or Administration Department to learn banking completely in very easy words. Let’s see how Operation Department of the bank works.

To open the Saving Deposit Account in the bank where you want to open the account comes under the operational department. To open the Saving Deposit Account, customer has to fill up the CUSTOMER INFORMATION FORM(CIF) WITH SAVING DEPOSIT ACCOUNT OPENING FORM (SB A/C OPENING). FORM should be fill up by the customer’s own handwriting. After fill up the form customer has to submit KYC (KNOW YOUR CUSTOMER) Document with the form. KYC document means PAN CARD, AADHAR CARD, VOTING CARD, EMPLOYER ID CARD, LIGHT BILL, TELEPHONE BILL WITH latest passport sized Photograph to stick on the ACCOUNT OPENING FORM.

All the KYC document should be verified by the concern manager/officer of the bank where you are going to open the saving bank account. After submission of the Account opening form with necessary document, operational department will process your account opening application and give you one number that is called as SAVING BANK ACCOUNT NUMBER. After received the Saving bank account number you can ready to do transaction in your account by depositing initial account opening amount that is vary from bank to bank. Your saving account number is very important to do the transaction with the bank, before doing the transaction in your account you have to check and verify the account number. After opening of Saving Bank Deposit Account customer will receive the Cheque Book and ATM CARD with the embossed name of the account holder. You can open Saving Bank Deposit Account with singly or jointly. Customer can open their account jointly with their parent, brother and sister etc. Saving Bank Deposit Account having option of “operation of Account” means how you operate your account, whether you want to operate your account by yourself only/singly or by jointly with others. If you opted “Singly” the account operating option as operation of Account, then only and only you can do the transaction in your account, transaction means depositing the amount to your account and withdrawing the amount from your account. If you select “Jointly” as account operating option, then your account can be operated jointly. In jointly operating account you have an option of operation of Account like “Either or Survivor”, “Former or Survivor”, “jointly by all” etc. on your Saving bank deposit account you will get the insurance from the bank.

Types of saving account:

SAVING BANK DEPOSIT ACCOUNT:

                                                              Saving Bank Deposit Account is the account where depositor can deposit their saving amount and receive the interest on it. Saving Bank Deposit Account offers unlimited transaction in the account. There is no limitation of depositing and withdrawing the amount from Saving bank deposit account. Saving bank deposit account having minimum quarterly balance criteria.

SAVING BANK SMALL ACCOUNT:

                                                          This is small account which is opened by the below poverty line people, who does not have such big amount to deposit in the account. In these types of account small amount is deposited by the depositor. Saving Bank Small Account having very restriction to deposit the amount to account and withdrawing the amount from the account. This account only for those people who doesn’t have proper KYC document and not having to much saving to deposit in their account. Saving bank small deposit account having no minimum quarterly balance criteria. This account is called as no- frill account.

STUDENT SAVING DEPOSIT ACCOUNT:

                                                              Student saving deposit account is opened by the student to receive their scholarship amount or subsidy amount by the government. There is restriction on transaction for deposit and withdrawals.

RD ACCOUNT:

                            It is opened for some specific period with monthly instalments and is closed after the tenure is completed.

FIXED ACCOUNT:

                             It is opened for longer period with lump-sum amount to get the advantage of higher interest rate of the bank.

CURRENT ACCOUNT:

                              Current account is the account which offers unlimited transaction of deposit and withdrawal but bank  does not pay the interest on the deposit amount in the current account.