1. BANKS AS FINANCIAL
SERVICE PROVIDERS
PRESENTED BY:
KUSUM BANDURI
RAJI YEGAMMAI
ASHWINI CHIKANE
RITESH LODAYA
SOUMYA SINGH

2. INTRODUCTION
• Banks were used only a place to park
surpluses in earlier times.
• Banks have come out with many products.
• Forayed in rural areas.
• Provide third party products.
• Become one stop service providers.
• Convenient to customers.

3. FINANCIAL SERVICES
DISTRIBUTION
Insurance products
Gold coins
Mobile recharge
Mutual funds
Government bonds
DEMAT ACCOUNT
SAFEKEEPING SERVICES
COLLECTION OF TAXES & UTILITY BILLS
ADVISORY SERVICES

4. INSURANCE
Insurance is defined as the transfer of the risk of a
loss, from one entity to another in exchange for
payment.
FEATURES:
Insured is compensated for the financial loss
Risk is transferred from insured to insurer
A person can take more than one policy
Insurance policies can be modified
Premium is charged for Insurance contract.

5. ADVANTAGES
• Safe and profitable long-term investment
• Assured income through annuities
• Uncertainties are reduced
• Creation of wealth over a period of time.
• Protection against rising health expenses
• Tax Benefits
• Planning for life stage needs.

6. TYPES OF INSURANCE
(A) LIFE INSURANCE :
• Term Life Insurance
• Whole life insurance
(B) GENERAL INSURANCE
• Home Insurance
• Travel insurance
• Motor vehicle Insurance
• Health insurance
• Fire insurance
• Marine insurance

7. GOLD COIN
• It is universally acceptable since the coin is made of gold.
• Free and unrestricted import and export of gold under gold coin
standard ensures stability in foreign exchange rates.
• This is the simplest form of gold standard which can be easily
understood by the common people.
• Buying gold coins is its ease to liquidate.
• They have intrinsic value.

8. MOBILE RECHARGE
• Customers can recharge their account easily and instantly. The
account debits are reflected immediately into the account.
• Customers can enjoy the benefits of doing anytime and everywhere
online recharge.
• Online Recharge facility offers complete freedom to consumers to
do instant recharge of any desired amount as per their
convenience.
• Online recharge enables stress free, user friendly and convenient
option of refilling of the prepaid account for doing online recharge
over the internet.
• Online recharge not only offers convenient way of recharging
account from home, it also saves time and energy
• You can get your prepaid account recharged anytime and from
anywhere because they offer services 24/7 basis

9. MUTUAL FUNDS
• Pools savings from a number
of investors having a common
financial goal.
• Money is invested in capital
market instruments.
• Investors known as unit
holders.
• Shares profit & losses in
proportion to their holding.

10. ADVANTAGES
• Diversification
• Transparency
• Tax benefits
• Professional management
• Liquidity
• Low transaction cost
• Well regulated

11. STRUCTURE OF MF
• Sponsor
• Trust
• AMC
• Custodian & Depositories
• Registrar & transfer Agents
• Bankers
• Distributors
• Brokers

12. TYPES OF MF
• Based on structure:
 Open-ended funds
 Close ended funds
• Based on type of security:
 Debt fund
 Equity fund
 Money market MF
• Hybrid funds
 Balanced funds
 Growth & income funds
 Asset allocation funds
• Others
 Commodity funds
 Real estate funds
 ETFs
 Fund of funds

13. GOVERNMENT BONDS
• Debt instrument
• Amount invested for a certain amount of time
with a certain interest rate.
• Issued in domestic currency
• Bonds issued in foreign currency- Sovereign
bonds
• RBI Relief bond is the most popular.
• Tax saving tool for individual investors
• Carry 8.5% interest rate compounded half-
yearly

14. DEMAT ACCOUNT
• Demat Account, a short form of saying Dematerialized Account is a type of
banking account which dematerializes the paper based physical shares.
• It can be considered as another form of a personal account where people keep
shares instead of money and cheques.
• Demat account allows you to buy or sell shares in safe, secure and convenient
way without any delay and paperwork.
• Opening a Demat account is as simple as a bank account opening.
• You can open a Demat account with any registered depository participant (DP).

15. PROCESS.

16. DEPOSITORIES AND DPs
• A depository is a place where the stocks of investors are held
in electronic form.
• The National Securities Depository Ltd (NSDL) and the Central
Depository Services Ltd (CDSL).
• Under the arrangement, the Depository acts as registered
owner of the securities in electronic form in the books of issuing
company and the client will be the beneficial owner.
• The Depositary Participants are the agents governed by
Depositories through which one can operate the Demat
account.
• Depository participants are mainly banks and brokers. There
are 276 DPs in India.

17. WHO CAN OPEN?
• Any individual or corporate can open a Demat
account.
• It is possible to open more than one Demat account in
identical names.
• Once a Demat account has been started, it is not
possible to change the account name.
• In such case a new Demat account needs to be opened
in the changed name, securities are to be transferred
from the old account to the new account and the old
account needs to be closed.

18. BENEFITS
• A safe and convenient way to hold securities;
• No odd lot problem, even one share can be sold;
• Nomination facility
• Reduction in transaction cost.
• Change in address recorded with DP gets registered with all
companies
• Transmission of securities is done by DP eliminating
correspondence with companies
• Automatic credit into Demat account of shares, arising out
of bonus/split/consolidation/merger etc.

19. SAFE KEEPING.
SAFE DEPOSIT VAULT :-
 Safe keeping facility is a
traditional function of banks.
 Lockers are easily access &
provided at very reasonable rates.
 Rents are charged as per size of
the locker and are payable in
advance.
 Locker can be hired by
Individuals, Firms, Limited
Companies, Association, Societies
etc.

20. CONTD….
 Lockers are rented out for a
minimum period of one year.
 Nomination for Safe deposit
locker are available.
 Banks have two keys, one of
which is kept with the banks
so that bank can control
access to safe.

21. SAFE CUSTODY.
 Banks accept sealed packets of
valuables for safe keeping in their
strong rooms.
 Packets were kept in the bank’s safe.
 Articles are returned upon the
customer handling over the receipt.
 Banks today deposit the duplicate
keys of branches for safe custody
with other banks in case of
emergencies.
 Only given in exceptional cases.

22. CONTD…
 Annual rent is calculated from the date you open the locker to the
same date next year.
 If you decide to close your locker in midyear ,in most cases, you
forego the annual rent which you paid at the beginning of the year.
 Most banks claim that confidentiality of the locker’s contents is
maintained, unless the income tax authorities or the police deem
otherwise.
 Locker facility is not available at all branches of a bank.

23. COLLECTION OF TAXES
 Earlier, taxes payable to the Central government
and state governments could be paid only at the
branches of the SBI and other public sector banks.
 Now, almost all banks, including private sector
banks, have been authorized to collect taxes on
behalf of the government.
 The amount collected are remitted to RBI where
government account are kept.
 To facilitate easy payment of taxes, banks are
providing the facility of online payment of taxes
through net banking.

24. PAYMENT OF UTILITY BILLS
• Collection of utility bills
such as:
Telephone bills
Mobile bills
Electricity bills

25. CONTD..
• Standing instructions
• Convenient to
customers
• Banks earn
commission
• Maintain accounts of
utility organisations

26. ONLINE PAYMENTS
• Online shopping
• Advance tax
• Insurance premium
• E-tickets of railways, airlines
• Payment through debit
card/credit card

27. ADVISORY SERVICES
• Professional assistance needed by investors
• Banks offer consulting services to private
banking customers
• Help in minimising risks & maximising returns
• Help customers in conducting investment
transactions
• Contribute a substantial portion of profits of
retail banking business of banks

28. TYPES OF ADVISORY SERVICES
• Wealth advisory services
• Asset advisory services
• Transaction advisory services
• Portfolio advisory services
• Debt advisory services

29. THANK YOU