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BANK PROFILE

Name of bank : The Nilgiris District Center

Cooperative
Name of the branch : Kotagiri
Date of start : 10/03/1967
Postal address: Taluk office road
Name of the branch manager working during
the financial year : Chari

Home

Savings deposit
Current deposit
Recurring deposit
Fixed deposit
Personal Banking
Loan to salaried employees
Home needs loan
Loan to pensioners
Building mortgage loan
Education loan
Housing loan
Physically challenged person loan
Loan under women entrepreneur credit banking
Scale of finance for crops loan
Jewel loan
Self help group loan
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A work placement

A work placement is a period of supervised work, where you'll have the

opportunity to experience working in a specific role with a company. A common
problem for school leavers and university graduates alike is that employers want to
see work experience as well as relevant qualifications.
I had chose banking sector to do my internship. The reason for selecting this is
because my specialization subject is banking and banks allow interns to spend a short
duration of time working on live projects, assisting senior employees and gaining
knowledge, skills and insight about the crucial aspects of a career in banking. This
would help me to gain lot of knowledge in my studies

Objectives of training

➢ To study the trends and pattern of NPA in urban cooperative bank in India.
➢ To study the performance of the urban cooperative bank of India
➢ To apply the theoretical knowledge in the real industrial situation

Advantage of training

➢ Training gives a chance for the studies to acquire job related functions
➢ Its helpful to obtain practical knowledge
➢ Through this the student is given the opportunity to get trained along with the
working employee in the bank.

Introduction about banks

The word bank is derived from the word Banco which means branch or money
exchange table. Bank is a financial institution and a financial intermediary that
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accepts deposits and channels those deposits into lending activities, either directly by
loaning or indirectly through capital markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays
checks and provides financial services. A bank is a financial intermediary for the
safeguarding, transferring, exchanging, or lending of money. A primary role of banks
is connecting those with funds, such as investors and depositors, to those seeking
funds, such as individuals or businesses needing loans. A bank is a connection
between customers that have capital deficits and customers with capital surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their
services to earn money, and they must market and manage those services in a
competitive field. Banks are financial intermediaries that safeguard, transfer,
exchange, and lend money and like other businesses that must earn a profit to survive.
Understanding this fundamental idea helps you to understand how banking systems
work and helps you understand many modern trends in banking and finance.

The services banks offer to customers have to do almost entirely with handling money
or finances for other people. Banks are critical to our economy. The primary function
of banks is to put their account holders’ money to use by lending it out to others who
are in need of the same.

Money is a medium of exchange, an agreed-upon system for measuring the value of

goods and services. Once, and still in some places today, precious stones, animal
products, or other goods of value might be used as a medium of exchange. This
system was used for centuries, before the invention of money. People used to
exchange goods or services for other goods or services in return. This system is also
known as “Barter System” and an age-old method that was adopted by people to
exchange their services and goods. Roman soldiers were sometimes paid in salt
because it was critical to life and was a scarce commodity at those times.

Anything with an agreed-upon value might be a medium of exchange. Today, many

forms of money are used. Money is any object or record that is generally accepted as
payment for goods and services and repayment of debts in a given socio-economic
context or country. The main functions of money are distinguished as a medium of
exchange; a unit of account; a store of value; and, occasionally in the past, a standard
of deferred payment. Any kind of object or secure verifiable record that fulfills these
functions can be considered money. Money simply shows how much something is
worth, whether it is a new gadget that you can purchase or two hours of your labor.
When you have money, a bank can act as your agent for using or protecting that
money.

HISTORY

Modern banking in India originated in the mid of 18 th century. Among the first
banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-32; and the General Bank of India, established in 1786 but failed in 1791.
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The largest and the oldest bank which is still in existence is the State Bank of India
(SBI). It originated and started working as the Bank of Calcutta in the mid June 1806.
In 1809, it was renamed as the Bank of Bengal. This was one of the three banks
founded by a presidency government, the other two were the Bank of Bombay in
1840 and the Bank of Madras in 1843. The three banks were merged in 1921 to form
the Imperial Bank of India, which upon India’s independence, became the State Bank
of India in 1955. For many years, the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India[5] was established in
1935, under the Reserve Bank of India Act, 1934.[6][7]
In 1960, the State Banks of India was given control of eight state-associated banks
under the State Bank of India (Subsidiary Banks) Act, 1959. However the merger of
these associated banks with SBI went into effect on 1 April 2017. In 1969,
the Government of India nationalised 14 major private banks; one of the big banks
was Bank of India. In 1980, 6 more private banks were nationalised.[8] These
nationalised banks are the majority of lenders in the Indian economy. They dominate
the banking sector because of their large size and widespread networks.[9]
The Indian banking sector is broadly classified into scheduled and non-scheduled
banks. The scheduled banks are those included under the 2nd Schedule of the Reserve
Bank of India Act, 1934. The scheduled banks are further classified into: nationalised
banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign
banks; and other Indian private sector banks.[7] The SBI has merged its Associate
banks into itself to create the largest Bank in India on 1 April 2017. With this merger
SBI has a global ranking of 236 on Fortune 500 index. The term commercial banks
refers to both scheduled and non-scheduled commercial banks regulated under
the Banking Regulation Act, 1949.[10]
Generally the supply, product range and reach of banking in India is fairly mature-
even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and
Rural Development (NABARD) with facilities like microfinance.
Ancient India[edit]
The Vedas are the ancient Indian texts mention the concept of usury, with the
word kusidin translated as “usurer”. The Sutras (700–100 BCE) and the Jatakas (600–
400 BCE) also mention usury. Texts of this period also condemned
usury: Vasishtha forbade Brahmin and Kshatriya varnas from participating in usury.
By the 2nd century CE, usury became more acceptable.
[11] The Manusmriti considered usury an acceptable means of acquiring wealth or
leading a livelihood.[12] It also considered money lending above a certain rate and
different ceiling rates for different castes a grave sin.[13]
The Jatakas, Dharmashastras and Kautilya also mention the existence of loan deeds,
called rnapatra, rnapanna, or rnalekhaya.
Later during the Mauryan period (321–185 BCE), an instrument called adesha was in
use, which was an order on a banker directing him to pay the sum on the note to a
third person, which corresponds to the definition of a modern bill of exchange. The
considerable use of these instruments has been recorded[citation needed]. In large
towns, merchants also gave letters of credit to one another.Medieval Period[edit]
The use of loan deeds continued into the Mughal era and were called dastawez (in
Urdu/Hindi). Two types of loans deeds have been recorded. The dastawez-e-
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indultalab was payable on demand and dastawez-e-miadi was payable after a

stipulated time. The use of payment directives by royal treasuries, called barattes,
have been also recorded. There are also records of Indian bankers using issuing bills
of exchange on foreign countries. The evolution of hundis, a type of credit
instrument, also occurred during this period and remain in use.[15]
Colonial era[edit]
During the period of British rule merchants established the Union Bank of Calcutta in
1829,[16] first as a private joint stock association, then partnership. Its proprietors
were the owners of the earlier Commercial Bank and the Calcutta Bank, who by
mutual consent created Union Bank to replace these two banks. In 1840 it established
an agency at Singapore, and closed the one at Mirzapore that it had opened in the
previous year. Also in 1840 the Bank revealed that it had been the subject of a fraud
by the bank’s accountant. Union Bank was incorporated in 1845 but failed in 1848,
having been insolvent for some time and having used new money from depositors to
pay its dividends.[17]
The Allahabad Bank, established in 1865 and still functioning today, is the
oldest Joint Stock bank in India, it was not the first though. That honour belongs to
the Bank of Upper India, which was established in 1863 and survived until 1913,
when it failed, with some of its assets and liabilities being transferred to the Alliance
Bank of Simla.
Foreign banks too started to appear, particularly in Calcutta, in the 1860s. Grindlays
Bank opened its first branch in Calcutta in 1864.[18] The Comptoir d’Escompte de
Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches
followed in Madras and Pondicherry, then a French possession. HSBC established
itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly
due to the trade of the British Empire, and so became a banking centre.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established
in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,
established in Lahore in 1894, which has survived to the present and is now one of the
largest banks in India.
Around the turn of the 20th century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian
rebellion, and the social, industrial and other infrastructure had improved. Indians had
established small banks, most of which served particular ethnic and religious
communities.
The presidency banks dominated banking In India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally
under capitalised and lacked the experience and maturity to compete with the
presidency and exchange banks. This segmentation let Lord Curzon to observe, “In
respect of banking it seems we are behind the times. We are like some old fashioned
sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments.”[citation needed]
The period between 1906 and 1911 saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Catholic Syrian Bank, The
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South Indian Bank, Bank of India, Corporation Bank, Indian Bank, Bank of

Baroda, Canara Bank and Central Bank of India.The fervour of Swadeshi movement
led to the establishment of many private banks in Dakshina Kannada and Udupi
district, which were unified earlier and known by the name South Canara (South
Kanara) district. Four nationalised banks started in this district and also a leading
private sector bank. Hence undivided Dakshina Kannada district is known as “Cradle
of Indian Banking”.[citation needed]
The Inaugural officeholder was the Britisher Sir Osborne Smith(1 April 1935), while
C. D. Deshmukh(11 August 1943) was the first Indian governor. On 12 December
2018,Shaktikanta Das, who was the finance secretary with the Government of India,
begins his journey as the new RBI Governor, taking charge from Urjit R Patel.

Post-Independence
During 1938–46, bank branch offices trebled to 3,469[19] and deposits quadrupled
to ₹ 962 crore. Nevertheless, the partition of India in 1947 adversely impacted the
economies of Punjab and West Bengal, paralysing banking activities for months.
India’s independence marked the end of a regime of the Laissez-faire for the Indian
banking. The Government of India initiated measures to play an active role in the
economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted in greater
involvement of the state in different segments of the economy including banking and
finance. The major steps to regulate banking included:
The Reserve Bank of India, India’s central banking authority, was established in April
1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[20]
In 1949, the Banking Regulation Act was enacted, which empowered the Reserve
Bank of India (RBI) to regulate, control, and inspect the banks in India.
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.

Banks as Financial Intermediaries

An “intermediary” is one who stands between two other parties. Banks are a financial
intermediary—that is, an institution that operates between a saver who deposits
money in a bank and a borrower who receives a loan from that bank. Financial
intermediaries include other institutions in the financial market such as insurance
companies and pension funds, but they will not be included in this discussion because
they are not considered to be depository institutions, which are institutions that accept
money deposits and then use these to make loans. All the funds deposited are mingled
in one big pool, which is then loaned out. Figure 13.4 illustrates the position of banks
as financial intermediaries, with deposits flowing into a bank and loans flowing out.
Of course, when banks make loans to firms, the banks will try to funnel financial
capital to healthy businesses that have good prospects for repaying the loans, not to
firms that are suffering losses and may be unable to repay.

Importance of Banking System

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Before the banking system originated, banking activities were performed by

merchants, money lender, and individuals. This was certainly not the best way to
handle currency and people’s personal wealth. The system lacked regulations and
standardization making general public vulnerable to debauchery and fraud. Therefore,
there was an urgent need of organized banking sector that will enable smooth
functioning of the economy and safe way to handle money. Additionally, a well-
organized banking system provides:
 Money for the economic growth of the country.
 It is the main pillar of the financial sector of the country.
 It offers a safe place to the individuals or group of individuals to deposit their
wealth and keep it secure.
 It offers loans for the personal or developmental purpose to dealers,
households, small and large enterprises.
 It provides government money and power to carry out development work.
 To equally distribute the money to the citizens of the country and prevent the
focus of financial power in the hands of a few.
 It helps in implementing monetary policies.
 It ensures financial stability in the country.
 It provides financial assistance to the industrial sector of the economy.
 It helps in generating employment opportunity.
 In India, it plays a major role in providing assistance to the agricultural sector.
 It ensures balanced economic development of the country.
 It enables capital formation and promotes the habit of saving.
 And provides finance for trade and industries that is essential to our economic
development.

Types of Banks:

Banking Types of Banks teaser Banks provide a multitude of financial services

beyond the traditional practices of holding deposits and lending money. Commercial,
retail, and central banks are three main types.

Understand the difference between the three:

Commercial Banks : Provide familiar services such as checking and savings

accounts, credit cards, investment services, and others. Historically, offered their
services only to businesses, including credit and debit cards, bank accounts, deposits
and loans, and secured and unsecured loans. Due to deregulation, commercial banks
are also competing more with investment banks in money market operations, bond
underwriting, and financial advisory work.

Retail Banks: Developed to help individuals not served by commercial banks.

Provide basic banking services to individual consumers. These institutions help
customers save money, acquire loans, and invest. They also offer a wide range of
financial services to a broad customer base. Examples include savings banks, savings
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and loan associations, and credit unions and examples of products and services
include safe deposit boxes, checking and savings accounting, certificates of deposit
(CDs), mortgages, and car loans.

Central Banks: Banks formed, owned, and regulated by the government to manage,
regulate, and protect both the money supply and the other banking institutions.
Guarantee stable monetary and financial policy from country to country. Typical
functions include implementing monetary policy, managing foreign exchange and
gold reserves, making decisions regarding official interest rates, acting as banker to
the government and other banks, and regulating and supervising the banking industry.
Central banks serve as the government’s banker. Central banks issue currency and
conduct monetary policy.

Cooperative Banks
These banks are governed by a law enacted by the state government. They provide
short-term loans to agriculture and related industries.
Cooperative banks’ principal purpose is to enhance social welfare by providing low-
interest loans. They are arranged in a three-tiered system.
State Cooperative Banks, Tier 1 (State Level) (regulated by RBI, State Govt,
NABARD)
The RBI, the government, and the National Bank for Agriculture and Rural
Development (NABARD) all contribute to the project’s funding. After then, the
money is allocated to the general population.These banks are subject to CRR and
SLR concessions. (SLR: 25%, CRR: 3%)
The state owns the company, and the senior management is chosen by the members.
Central/District Cooperative Banks, Tier 2 (District Level)
Tier 3 (Village Level) – Agriculture (Primary) Cooperative Banks

10 Different Types of Bank Accounts in India

Indian banks offer multiple types of accounts for different purposes. Whether one is
working, or a student, an entrepreneur, a partnership firm, or an NRI, each one has
several options to choose from. Bank accounts vary based on purpose, frequency of
transactions, and even location. The different types of bank accounts offered by
Indian banks are savings account, current account, salary account, and NRI accounts.
This article covers the different types of bank accounts in India in detail.

1.Savings Bank Account

This is the most common type of bank account. One can open a savings account
individually or jointly by two individuals for the purpose of saving money. By
depositing money in a savings account, one can earn interest. Following are the
features and benefits of a savings account:

 The savings account pays interest in the range of 2.5% – 6% per annum to its
depositors. Check SBI savings account interest rates.
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 There is no restriction on the number of times one can deposit money. Hence
savings bank accounts are highly liquid. However, there are daily limits on the
number of times and amount of withdrawal.
 The minimum balance requirement is different for different banks. Most of the
banks allow zero balance accounts.
 Savings account holders receive debit cards, ATM cards, cheque books, and
passbooks for ease of transactions. Moreover, they can also access their funds
through internet banking and mobile banking. This also makes fund transfers
easy and quick.
 Depositors can set up auto-debits to pay bills and invest in mutual funds and
other securities. They can also set up auto credit to receive interest and
dividends.
 All resident individuals, including minors, are eligible to open a savings
account in India.

2. Current Bank Account

The current account is a primary requirement for any entrepreneur or business with
multiple transactions in a day. A current bank account is a zero-interest account, and
it usually needs a high minimum balance requirement. Following are the features and
benefits of a current account:

There is no limit on the number of transactions that one can do from a current
account. Moreover, the account facilitates more frequent transactions.
Current accounts require a higher minimum balance requirement.
All businesses, including partnership firms, companies, sole proprietorship firms,
associations, and also trusts, can open a current account.
Banks provide overdraft facilities on current accounts. However, the overdraft facility
will operate as per the term of the banks.
Current account holders receive cheque books, internet banking, and mobile banking
facilities for smooth transactions.
A few current accounts also facilitate foreign currency transactions.

3. Salary Account
A salary account is a type of bank account that has to be opened as per the tie-up
between the bank and the employer. A salary account is an account where the
company credits the salary every month. Following are the features and benefits of a
salary account:

Salary accounts pay interest on the deposit amount. The interest rate varies with the
bank.
Salary accounts do not have minimum balance requirements.
Banks offer ATM cards, debit cards, credit cards and cheque books for salary
accounts. Moreover, banks also offer internet banking and mobile banking facility for
accessing funds in the account. All fund transfers, including NEFT, IMPS, and
RTGS, are also offered at lower rates.
Few banks also offer overdraft facility on salary accounts.
Payment of bills can be easily facilitated through a salary account.
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Salary account holders also receive preferential pricing for personal loans and home
loans.

4. Fixed Deposit Account

A fixed deposit is a facility that is provided by all the public and private banks in
India. A fixed deposit is a very popular investment plan among investors who wish to
park their surplus money for a predetermined interest rate and prefixed maturity.

You can open a FD account either by logging in to your internet banking or by

visiting the nearest branch
Banks have made it very easy and seamless for investors to invest in a fixed deposit
The interest rate varies on the basis of the maturity period and the type of investor
(senior citizen vs other individuals). The rate of interest for a senior citizen is higher
than the interest rate for other individuals by 0.50% to 1%.
The interest rate also varies from one bank to another. You can use Scripbox’s FD
calculator to calculate the estimated maturity amount.
Banks provide tax saving fixed deposit accounts as well. The lock-in period for a tax
saving fixed deposit account is 5 years.
As the name suggests, tax saving fixed deposit accounts are eligible for a tax
deduction of up to Rs 1.5 lakhs under section 80C of the Income Tax Act, 1961.

5. Recurring Deposit Account

Public and private banks in India provide recurring deposit account facility to its
customers. With a RD account, an investor can deposit a fixed amount on a fixed date
to his/ her account for a predetermined interest rate and maturity. Since the
investment is made in installments it becomes easy for an investor to create a corpus.
Moreover, the power of compounding helps earn higher returns. Use a RD calculator
to find your interest and maturity amount.

Recurring Deposit plans are designed to help people develop a habit of saving on a
regular basis.
The minimum deposit amount varies greatly from one bank to the next. You can start
investing with as little as Rs. 1000.
The minimum deposit time is six months, and the maximum deposit period is ten
years.
The interest rate is the same as that offered on a Fixed Deposit. As a result, the
interest rates are higher than those offered by a savings account.
Withdrawals made too soon are dangerous. However, depending on the bank, you
may be able to close your account before the maturity date under specific
circumstances.
NRI Bank Accounts: There are different bank accounts for residents and non-resident
Indians. For non-resident Indians, banks offer NRI accounts. Following are different
types of NRI accounts.

6. Non-Resident Ordinary (NRO) Savings Accounts

A Non-Resident Ordinary (NRO) savings account is a type of NRI account that helps
in managing the income that they earn in India. The income can be in the form of
 

interest, rent, dividend, etc. The deposits made in the account should only be in Indian
currency. Following are the features and benefits of an NRO account:

NRO account is a rupee-denominated account, and all deposits are to be made in the
Indian rupee. Also, NRO accounts have a slightly higher minimum deposit
requirement.
NRIs can open the account individually or jointly along with another NRI or Indian
resident.
Funds in an NRO savings account cannot be repatriated abroad. Moreover, one cannot
transfer funds from NRO to the NRE account. However, they can use the money to
invest in India.
The nomination facility is available on the NRO savings account. Moreover, the
resident power of attorney can make payments from the NRO account on behalf of
the NRI.
An Indian regular savings account can be converted into an NRO account if the
residential status of the account holder changes. Moreover, one can convert the
account back into a regular savings account when the NRI returns back to India and
changes his/her residential status.
The interest earned on these accounts can be repatriated abroad. Also, the interest is
taxable in India.

7. Non-Resident Ordinary (NRO) Fixed Deposit Accounts

One can invest in NRO fixed deposits through an NRO account. All NRIs, including
Persons of Indian Origin (PIO) and Overseas Indian Citizens (OCI), can invest in
NRO fixed deposits. Following are features and benefits of NRO fixed deposit
accounts:

NRIs can open the NRO fixed deposit account individually or jointly along with
another NRI or Indian resident.
NRIs can get a higher rate of interest on NRO FDs than NRO Savings accounts. The
banks decide the interest rate for NRO fixed deposits. Also, the interest earned on
NRO fixed deposits is credited to the NRO savings account.
The principal amount cannot be repatriated to a foreign country. However, the interest
can be repatriated to a foreign country.
Both interest and principal amount of an NRO fixed deposit account is taxable in
India.

8. Non-Resident External (NRE) Savings Accounts

Non-Resident External (NRE) Savings Account is an account for NRIs to transfer
their foreign currency earnings to India. Following are the features and benefits of
NRE savings account:

NRE account allows NRIs to deposit their foreign currency earnings in India.
NRIs can open NRE savings accounts individually or jointly with another NRI.
This account is very liquid, and all the funds can be fully repatriated abroad.
Any interest earned on the deposits is completely tax-free in India. However, it is
taxable in the country of residence.
 

Funds in the NRE Savings account can be accessed from anywhere using the internet
banking facility and international debit card.
With an NRE Savings account, one can also invest in mutual funds and other
investments in India.
Only eligible investors can open NRE accounts. NRIs, Indian citizens, residing in
foreign countries for studies, employment and business, Person of Indian Origin or
Overseas Citizen of India can open NRE accounts.

9. Non-Resident External (NRE) Fixed Deposit Accounts

Non-Resident External (NRE) Fixed Deposit Accounts are investment options that are
available for NRIs who earn in foreign currency. The investment in NRE FDs is made
in foreign currency and once invested, they are automatically converted into Indian
currency. Following are the features of NRE FD accounts:

One or more NRIs can invest in Non-Resident External (NRE) Fixed Deposit
Accounts.
The banks decide the interest on NRE FDs. Also, the interest earned is completely
tax-free in India. Moreover, the interest and investment amount are fully repatriable.
The tenure of the FD ranges from one year to 10 years.
The minimum investment for NRE FD is slightly higher when compared to a regular
FD.
Nomination and auto-renewal facility is available on NRE FDs.
Only eligible investors can open NRE FD accounts. NRIs, Indian citizens, residing in
foreign countries for studies, employment and business, Person of Indian Origin or
Overseas Citizen of India can invest in NRE FD.

10. Foreign Currency Non-Resident (FCNR) Account

Foreign Currency Non-Resident (FCNR) Account is a term deposit account that is
maintained in foreign currency. One can open this account in only one of the nine
currencies allowed by RBI. Following are the features and benefits of the FCNR
account:

FCNR(B) account is a term deposit account and not a savings account where NRI
investors can invest money. One can also transfer funds from an NRE account to an
FCNR (B) account.
NRIs can deposit money in only one of the nine currencies. They are USD, GBP,
AUD, SGD, CAD, CHF, HKD, EUR, JPY. Also, investors have to deposit money in
the currency of NRIs country of residence.
The interest rate on FCNR accounts varies with banks and currency of deposit. Also,
the banks pay interest only after the completion of one year of deposit. Also, the
interest earned on this account is completely tax-free in India.
Tenure of FCNR deposits ranges from one to 5 years.
Banks allow premature withdrawal with a penalty. Also, withdrawals can happen only
in foreign currency. Moreover, banks also offer an overdraft facility on FCNR
deposits. However, the terms of the loan vary for different banks.
Interest and principal amount are fully repatriable, i.e., fully transferable to a foreign
country.
 

Services of Banks
In modern times there are many services that are offered by the banks. This
is done so that more and more customers are attracted. Although there are
some basic services as well which are offered by the banks. Thus, these basic
services are common for all banks. In this article, we will help you
understand some of the services of banks which are common across all the
banks in India.

List of Banking Services offered by Banks

1.Payment and Remittance Services:

This is another important function of banks that enables us to transfer funds from one
account to of another, from one city to another. Alongside, modern banking systems
allow us to make the direct online money transfer, pay utility bills, collection of
cheques, and more. With the evolution of technology, payments can be made and
collected from any part of the world.

2. Overdraft:
Overdraft services allow account holders to withdraw more than what their deposits
allow. Though, interest is charged on the overdrawn amount. This is one of the many
ways banks lend money to their customers.

3. Currency Exchange:
Imagine if there were no banks where you would acquire foreign currency for travel
or trading purposes. The banks provide foreign currency exchange with local currency
in an easy manner.
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4. Consultancy:
Modern banks have a holistic approach and they aim to provide all kinds of services
to their customers that involve their financial situation. Modern banks are hiring
financial and legal experts to provide advice and solutions about customers wealth,
investment, and trading.

5. Online Banking:
In the digital world, every bank is striving to make space in online banking world.
With the help of the internet, banks allow their customers to perform banking
activities through their official website. This allows the customer to access their
account 24/7 without having to visit a physical branch.

6. Mobile Banking:
Similarly, banks are also providing mobile banking services wherein customers can
perform banking activities through their smartphone apps.

7. Home Banking:
Home banking is another rising trend wherein banking transaction can be made from
home directly. These services require an internet connection or access to online
banking.

8 .Debit Cards Debit cards withdraw the funds electronically from the cardholder
accounts. To verify the transaction and keep it safe all the debit cards requires
personal identification number (PIN).

9. Lockers:
Banks also offer safe deposit to their clients to store their valuables safely, at minimal
fees.

10. Money Transfer:

There are several ways banks offer to transfer money from one part of the world to
the other with the help of demand drafts, money orders, cheques, online banking, and
more.

11. Investment Banking:

Many banks now offer financial services to their customers. They help them make the
best of their wealth by offering several investment products.

12.Wealth Management:
Wealth management is one of the many investment services offered by banks. It
allows the customers to plan their finances to grow long-term wealth.
Apart from all this, banks also offer several auxiliary services to the customers such
as solvency certificates, mutual funds, insurance services, gold coins, and more.
 

Today, we have a fairly well-organized and highly sophisticated banking system that
includes new-generation banks along with traditional banks. In the banking industry
of India, there has been extraordinary growth that has replaced traditional banking
methods with simplified, accurate, and fast banking methods. Indian banks are subject
to tremendous change and are expected to expand invariably.

13.Advancements of loans
Banka runs on the profit they make. They are into the business of making profits. So,
to generate the profit they give loans to the public and private organizations.
Thus, in return, they get an interest paid to them which helps them in making a profit.
Banks need to keep a minimum cash reserve with them.
So, after deducting this cash reserve, banks provide short, medium, and long-term
loans to the people who are in need of it.

14.Cheque Payments
The person who holds an account in the bank is provided with the cheque pads. Thus,
the account holders draw cheque upon the bank when they are required to pay the
money. So after verifying formally, banks pay for the cheques and proceed with the
official procedures.

15.Discounting on bills of exchange This is another popular services of banks for

lending the money. In this method, the person who holds the bill of exchange gets it
discounted by the bank in exchange for a bill. The creditor gives the payment to the
debtor who accepts it and agrees that the amount shall be paid upon maturity. Once
the marginal deductions are made the bank pays the value to the holder of the bill.
After that, when the bill is matured the banks get their payment from the person who
has accepted the bill.

16.Collecting and paying the credit instruments For modern purposes, there are a
variety of instruments that are used as credit instruments. This includes promissory
notes, bill of exchange, cheques, etc.These instruments are dealt with by the banks.
The banks are responsible for collecting and paying the different types of credit
instruments. These credit instruments are the representative of the customers.

17.Guarantee by Banks

In modern banking, customers are provided with the guarantee by the banks. This
happens mostly when the customers have to deposit a large fund in courts or
government offices for various reasons.The banks itself acts as a guarantee for that
person

18.Consultancy

Modern banks expand their businesses and also provides consultancy services to its
customers. For this, they hire legal, financial, and market leaders and experts who can
provide advice to customers regarding industry, income, trade, investment, etc.
 

19.Credit Cards

It is a service that allows the holders to make the purchase of the goods and services
in exchange for a credit card.It immediately pays off for the services and goods while
the cardholder is required to pay back the amount over a period of time with a certain
percentage of interest.

20.Funds Remittance

In this facility, banks provide the customers to transfer their funds from one account
to another using cheque, drafts, etc.

21.Debit Cards Debit cards withdraw the funds electronically from the cardholder
accounts. To verify the transaction and keep it safe all the debit cards requires
personal identification number (PIN).

Bank Audit

Definition: Bank audit is a procedure performed by an auditor appointed by RBI and

ICAI to verify the financial statements of the banking institutions and to verify
whether the banking concerns are following the law and compliances or regulatory
framework applicable on them or not.

Regulatory framework under which banks has to perform their work are mentioned
below:

 Banking Regulation Act, 1949.

 RBI Act, 1934.

 Companies Act, 2013.
 Income Tax Act, 1961.
 Information Technology Act, 2002.
 SBI Act, 1955.
 SBI Subsidiaries Act, 1959.
 Banking co. Acquisition and transfer of undertaking Act, 1970 (amended in
1980).
 SARFAESI Act, 2002.
 Credit information companies’ regulation Act, 2005.
 Payment and Settlement Act, 2007
 

Procedure of Bank Audit

Banking sector is a dynamically changing sector. Thus, it requires proper and

effective audit measures to understand the exact financial condition of the banks for
which the following procedure is adopted: RBI and Indian Institute of Chartered
Accountants of India (ICAI) together scrutinise and appoint an auditor or audit firm
for the audit of the bank after obtaining indebtedness declaration from a respective
firm or an auditor. The audit firm or an auditor cannot assign with any other statutory
audit in the year they are appointed as a bank auditor. Before initialising the audit, the
firm needs to establish the undertaking of engagement terms describing the time
period of audit term. However, as per ICAI Act, 1949 before getting engaged the
auditor need to communicate with the previous auditor of the bank in writing for
taking his consent. After that, the new auditor will review the initial opening balance,
and if he founds any material misstatement or errors affecting financial statement, he
can assert his point of view in his audit report by way of qualified or adverse report.
Thereafter assessment of engagement risk is done, which is a difficult part of the audit
procedure, and then the engagement team gets established to manage the risks and
complexities of bank operations. Auditor then tries to understand the working
environment and internal controls of the organisation for deciding the basis of the
audit. Thereafter, banks accounting process, risk management process and risk
identification are made along with control and monetary activities considered by the
management. At last, after reviewing all the relevant elements, an auditor prepares an
audit report defining his opinion regarding the financial condition of the bank as well
as if any loopholes found in following the mentioned regulations under Act.

Types of Bank Audit

1.Concurrent Audit

Banks deals with a large number of transactions on a daily basis whose examination is
also necessary on a continuous basis for determining the accuracy of the financial
statement. For conducting such audit an external auditor is appointed by the bank
known as a concurrent auditor who performs an audit of the transaction on a monthly
basis. The main objective of conducting a concurrent audit is to ensure compliance
with the internal systems, procedures and the guidelines of the bank. Concurrent audit
is always performed on a continuous basis to examine whether proper guidelines are
following by the banks or not such as proper documentation, proper cash verification,
NPA classification, etc.

2.Internal Audit

Along with the concurrent audit, banks also perform an internal audit for which they
appoint an internal auditor to make a regular check on the financial activities of the
bank throughout the year.One of the prominent sectors of internal audit is information
system audit, which is becoming a necessary part of a banking system with the rapid
growth of computerised banking functions, and it is important to keep an eye on such
 

system on timely intervals to check their work ability. Therefore, the auditor should
also have a basic knowledge of banking software’s so that he may identify the errors
easily without any help of bank employee as they sometimes also try to distract the
auditor for overlapping their mistakes.

3.Statutory Audit

Statutory Audit itself comprises the word statute, which means regulation. Thus, it
can be understood easily that the statutory audit is a mandatory audit defined under
the law or Banking Regulation Act, 1949. Under Statutory Audit ICAI and RBI
altogether assigns the banks to an auditor who is generally a practising chartered
accountant and this auditor performs year-end audit in all branches assigned to them
by the ICAI from the end of March to first or second week of April.Some of the
important aspects which should be covered under statutory audit is cash verification,
tax-related issues, loan accounts verification. After that, an auditor prepares an audit
report defining his opinion on a financial statement for which he has been allotted a
specific time under which he has to perform an audit and submit his report.

The overall advantages of a bank include:

1. Safely storing the public’s wealth.

Instead of walking around with wads of cash or hiding it under the

floorboards, banks provide you with a protected place to store your money
without worrying about theft.

2. The widespread availability of affordable loans.

The qualifications for loans are relatively standard across most banks.
Modern establishments have broken this cycle by increasing accessibility to
loans and offering more reasonable requirements.

3. Propelling the economy forward.

Banks often act as lenders for large amounts of capital to various economic
sectors like agriculture and small businesses, which, in turn, raises
employment rates and spending power.

The government expects banks to support particular facets of society. Rural or

underdeveloped communities and industries are two such areas. Investing and
approving loans in these areas increases development and modernization
while building local branches to improve access to banking services.

Meaning of Cooperative Bank:

 

Cooperative bank is an institution established on the cooperative basis and dealing in

ordinary banking business. Like other banks, the cooperative banks are founded by
collecting funds through shares, accept deposits and grant loans

The cooperative banks, however, differ from joint stock banks in the following
manner:

(i) Cooperative banks issue shares of unlimited liability, while the joint stock
banks issue shares of limited liability.

(ii) In a cooperative bank, one shareholder has one vote whatever the number
of shares he may hold. In a joint stock bank, the voting right of a
shareholder is determined by the number of shares he possesses.

(iii) Cooperative banks are generally concerned with the rural credit and
provide financial assistance for agricultural and rural activities. Joint stock
companies are primarily concerned with the credit requirements of trade
and industry.

(iv) Cooperative banking in India is federal in structure. Primary credit

societies are at the lowest rung. Then, there are central cooperative banks
at the district level and state cooperative banks at the state level. Joint
stock banks do not have such a federal structure.

(v) Cooperative credit societies are located in the villages spread over entire
country. Joint stock banks and their branches mainly concentrate in the
urban areas, particularly in the big cities

Position of Co-operative Banks in India

The scheduled bank listed in the RBI Act 1934 comprises commercial, Rural, Urban
Co-operative, and State Co-operative Banks. There are more than 2741 urban
cooperative banks and 41 state co-operative banks operating in India. A Co-operative
Bank’s failure in the last few years has been high, but those failures were somewhat a
unique experience. The position is good because the main interest of co-operative
banks is to serve the needs of the rural sector in general and particularly the
agricultural sector.

History of Cooperative Banking in India:

Cooperative movement in India was started primarily for dealing with the problem of
rural credit. The history of Indian cooperative banking started with the passing of
Cooperative Societies Act in 1904. The objective of this Act was to establish
 

cooperative credit societies “to encourage thrift, self-help and cooperation among
agriculturists, artisans and persons of limited means.”

Many cooperative credit societies were set up under this Act. The Cooperative
Societies Act, 1912 recognised the need for establishing new organisations for
supervision, auditing and supply of cooperative credit. These organisations were- (a)
A union, consisting of primary societies; (b) the central banks; and (c) provincial
banks.

Although beginning has been made in the direction of establishing cooperative

societies and extending cooperative credit, but the progress remained unsatisfactory in
the pre-independence period. Even after being in operation for half a century, the
cooperative credit formed only 3.1 per cent of the total rural credit in 1951-52.

Structure of cooperative banks

 There are different types of cooperative credit institutions working in India.

These institutions can be classified into two broad categories- agricultural and
non-agricultural. Agricultural credit institutions dominate the entire
cooperative credit structure.

 Agricultural credit institutions are further divided into short-term agricultural

credit institutions and long-term agricultural credit institutions.

 The short-term agricultural credit institutions which cater to the short-term

financial needs of agriculturists have three-tier federal structure- (a) at the
apex, there is the state cooperative bank in each state; (b) at the district level,
there are central cooperative banks; (c) at the village level, there are primary
agricultural credit societies.

 Long-term agricultural credit is provided by the land development banks. The

whole structure of cooperative credit institutions is shown in the chart given.
 

Short-Term Rural Cooperative Credit Structure:

In rural India, there exists a 3-tier short-term rural cooperative structure. Tier-I
includes state cooperative banks (SCBs) at the state level; Tier-II includes central
cooperative banks (CCBs) at the district level; and Tier- III includes primary
agricultural credit societies (PACSs).

In 19 states, there exists a 3-tier short-term cooperative credit structure, comprising

SCBs, CCBs and PACSs. And in 12 states, there exists a 2-tier short-term cooperative
structure. In the north-eastern states, including Sikkim, the structure is 2-tier,
comprising only SCBs and PACSs.

As on March 31, 2013, the number of SCBs was 31, of CCBs was 370 and of PACSs
was 92432. As on March 31, 2012, the loans advanced by SCBs were Rs. 75600
crore, by CCBs were Rs. 14400 crore and by PACSs were Rs. 91200 crore.

Principles of Co-operative Bank

➢ Voluntary and Open Membership:

People can voluntarily become members of Co-operative society. They are
voluntary organizations; everyone can use their services without any
discrimination based on religion, caste, sex, and can accept the responsibilities
of membership.

➢ Democratic Member Control:

Cooperatives are vote based associations constrained by their individuals,
who effectively take an interest in setting arrangements and deciding. The
chosen agents are responsible for enrollment. In essential cooperatives,
individuals have equivalent democratic rights (one member, one vote) and
cooperatives at different levels are composed in a just way.

➢ Individuals’ Economic Participation:

Members contribute impartially to, and justly control, the capital of their
agreeable. At any rate, some portion of that capital is generally the basic
property of the helpful. Individuals, as a rule, get restricted pay, assuming any,
on capital brought in as a state of enrollment. Individuals assign surpluses for
any or the entirety of the accompanying purposes: building up the helpful,
conceivably by setting up saves, some portion of which at any rate would be
resolute; profiting individuals in relation to their exchanges with the
agreeable; and supporting different exercises affirmed by the participation.

➢ Self-governance and Independence:

Cooperatives are independent, self-improvement associations constrained
by their individuals. If they go into concurrences with different associations,
including governments, or raise capital from outside sources, they do as such
on terms that guarantee law based control by their individuals.
 

➢ Knowledge, Training, and Information:

Cooperatives give training and preparation to their individuals, choose
delegates, administrators, and representatives so they can contribute
successfully to the advancement of their cooperatives. They educate the
overall population, especially youngsters and assessment pioneers, about the
nature and advantages of participation.

➢ Collaboration among Co-operatives:

Cooperatives serve their members most effectively and strengthen the
cooperative movement by working together through local, national, regional, and
international structures.

➢ Think for Community:

While concentrating on part needs, cooperatives work for the maintainable
improvement of their networks through approaches acknowledged by their
individuals.

Features of Co-operative Bank

➢ One Man One Vote:

The co-operative banks works on the principle of Cooperation, self-help, and
mutual help. All the members usually have equal voting rights. The word
cooperation very simply means work together and help each other. So
Cooperative banks also follow this.

➢ No profit no loss:
Cooperative banks work on no profit no loss basis because they aim to help
masses and not Profit maximization.

➢ RBI’s partial control:

Co-operative banks are the first banks which are government-sponsored. The
Reserve bank of India has partial control over cooperative banks because the
borrowings which State co-operative banks take are usually from the Reserve
Bank of India. RBI provides capital to cooperative banks.

➢ Registration:
Co-operative banks are registered under the cooperative society Act. The
registration process in co-operative banks is quite easy and less time
consuming as compared to other banks.

➢ Loans:
Co-operative banks perform all the banking functions that also include
granting of loans, the supply of credit. Co-operative banks also provide
housing loans, and Urban co-operative banks provide working capital loans
and term loans to customers as well.

➢ Other Features:
 

The co-operative bank has access to limited areas that means they can operate
their activities in limited areas and they cannot open their branches in any
foreign land or foreign country.

Types of Co-operative Bank

➢ State Co-operative Bank

Functions and Organisation:

State cooperative banks are the apex institutions in the three-tier cooperative
credit structure, operating at the state level. Every state has a state cooperative
bank. State cooperative banks occupy a unique position in the cooperative
credit structure because of their three important functions:

(a) They provide a link through which the Reserve Bank of India provides
credit to the cooperatives and thus participates in the rural finance,

(b) They function as balancing centers for the central cooperative banks by
making available the surplus funds of some central cooperative banks. The
central cooperative banks are not permitted to borrow or lend among
themselves

© They finance, control and supervise the central cooperative banks, and,
through them, the primary credit societies.

Capital:

State cooperative banks obtain their working capital from own funds, deposits,
borrowings and other sources:
 

(i) Own funds include share capital and various types of reserves. Major
portion of the share capital is raised from member cooperative societies
and the central cooperative banks, and the rest is contributed by the
state government. Individual contribution to the share capital is very
small;

(ii) The main source of deposits is also the cooperative societies and
central cooperative banks. The remaining deposits come from
individuals, local bodies and others

(iii) Borrowings of the state cooperative banks are mainly from the Reserve
Bank and the remaining from state governments and others.

Loans and Advances:

State cooperative banks are mainly interested in providing loans and advances
to the cooperative societies. More than 98 per cent loans are granted to these
societies of which about 75 per cent are for the short-period. Mostly the loans
are given for agricultural purposes.

The number of state cooperative banks rose from 15 in 1950-51 to 21 in 1960-

61 and to 28 in 1991-92. The loans advanced by these banks increased from
Rs. 42 crore in 1950-51 to Rs. 260 crore in 1960-61, and further to Rs. 7685
crore in 1991-92.

➢ Central Co-operative Banks

On the other hand, the Central co-operative banks work at the district level. It
is also called District Co-operative Central Bank. The main purpose of the
establishment of DCCB is to provide banking to the rural people for the
agricultural sector. The Central Co-operative bank usually raises its capital
from its funds, deposits, and borrowings. The deposits come from cooperative
societies, local bodies, and individuals. Whereas the borrowings are from
Banks like RBI and Apex banks.

Central cooperative banks are of two types:

(a) There can be cooperative banking unions whose membership is open only
to cooperative societies. Such cooperative banking unions exist in
Haryana, Punjab, Rajasthan, Orissa and Kerala.

(b) There can be mixed central cooperative banks whose membership is open
to both individuals and cooperative societies. The central cooperative
banks in the remaining states are of this type. The main function of the
central cooperative banks is to provide loans to the primary cooperative
societies. However, some loans are also given to individuals and others.


Capital:

The central cooperative banks raise their working capital from own funds,
deposits, borrowings and other sources. In the own funds, the major portion
consists of share capital contributed by cooperative societies and the state
government, and the rest is made up of reserves.

Deposits largely come from individuals and cooperative societies. Some

deposits are received from local bodies and others. Deposit mobilisation by
the central cooperative banks varies from state to state.

For example, it is much higher in Gujarat, Punjab, Maharashtra, and Himachal

Pradesh, but very low in Assam, Bihar, West Bengal and Orissa. Borrowings
are mostly from the Reserve Bank and apex banks.

Loans and Advances:

The number of central cooperative banks in 1991-92 was 361 and the total
amount of loans advanced by them in 1991-92 stood at Rs. 14226 crore. About
98 per cent loans are received by the cooperative societies and about 75 per
cent loans are short-term. Mostly the loans are given for agricultural purpose.

About 80 per cent loans given to the cooperative societies are unsecure and the
remaining loans are given against the securities such as merchandise,
agricultural produce, immovable property, government and other securities
etc.

Problem of Overdues:

The most distressing feature of the functioning of the central cooperative

banks is heavy and increasing overdue loans. In 1997-98, the percentage of
overdues to demand at the central cooperative level was 34.

According to the Review of the Cooperative Movement in India, 1974-76, by

the Reserve Bank of India, the main causes of these overdues are

(a) Natural calamities such as floods, draughts, etc., affecting the repaying
capacity of the borrowers;
(b) Inadequate and inefficient supervision exercised by the banks;
(c) The poor quality and management of societies and banks;
(d) Absence of linking of credit with marketing;
(e) Reluctance to coercive measures; and
(f) Where coercive measures were taken, the inability of the machinery to
promptly execute the decrees.

For the rehabilitation of the weak Central cooperative banks, the Central
Sector Plan Scheme has been formulated under which semi financial help is
 

given to write off the bad debts, losses and irrecoverable overdues against
small and marginal farmers.

➢ Primary Co-operative Banks

The Primary cooperative banks are at many places known as urban

Cooperative Banks (UCBs) they are registered as cooperative societies. They
are registered under the State Cooperative Societies Act or Multi-State
Cooperative Act, 2002. The overall supervision of UCBs is done by the
registrar of Co-operative Societies (RCS). The Reserve Bank carries out all
inspections and Surveillance( close examination) of Primary Co-operative
banks. The word Primary Co-operative banks are not defined anywhere but it
refers to primary cooperative banks located in urban areas and semi-urban
areas.

➢ Land Development Banks

Land development banks are special kinds of banks in India, they perform
quasi-commercial functions. To provide long term credit (5 years to 20 years)
to Indian Farmers land development banks came into existence. After 1966-67
the name of Land mortgage banks was renamed as land development banks.
The Land Development Banks (LDBs) are co-operative institutions and
registered under the Co-operative Societies Act. The capital of Land
Development Banks is raised from deposits, debentures, share capital, and
borrowings from banks. There are Central and primary development banks at
Central and the district level. The main object of LDB is to promote an
increase in agricultural production.

Various advantages of cooperative credit institutions are given :

 Alternative credit source

The main objective of Co-operative credit movement is to provide an
effective alternative to the traditional defective credit system of the village
money lender. The cooperative banks tend to protect the rural population from
the clutches of money lenders. The money lenders have so far dominates the
rural areas and have been exploiting the poor people by charging very high
rates of interest and manipulating accounts.

 Cheap rural credit

Cooperative credit system has cheap and the rural credit both directly and
indirectly :
a) Directly, because the cooperative societies charge competitively low
interest rates and
b) Indirectly, because the presence of cooperative societies as an alternative
agencies has broken money lenders monopoly, thereby enforcing him to
reduce the rate of interest
 

 Productive Borrowing
a) An important benefit of cooperative credit system is to bring a change in
the nature of loans. The cultivators used to borrow for consumption and
other unproductive purposes
b) But now they mostly borrow for productive purposes. Cooperative
societies discourage unproductive borrowing .

 Encouragement to saving and investment.

Cooperative credit movement has encouraged saving and investment by
developing the habits of thrift among the agriculturists. Instead of hoarding
money the rural people tend to deposit there savings in the cooperative or
other banking institutions.

 Improvement in farming methods

Cooperative societies have also greatly helped in the introduction of better
agricultural methods. Cooperative credit is available for purchasing improved
seats, chemical fertilizers, modern implements , etc. The marketing and
processing societies have helped the members to purchase there implements
cheaply and sell there produce at good price

Suitable federal structure of cooperative baking system .

 Cooperative banking system has a federal structure with :-

a) Primary agriculture credit societies at the village level
b) Higher financing agencies in the form of central cooperative and
state cooperative banks
c) Land development banks for providing long term credit for
agriculture. Such a banking structure is essential and particularly
suited for effective meeting the financial requirements of the vast
rural areas of the country

 Considering the great importance of cooperative banks, particularly in rural

areas, it is not surprising that every committees or commissions , that has
examined the working of the cooperative banking system in India, has
expressed the common view that cooperation remains the best hope of rural
areas of rural India

 Various committees, commissions and individual studies that have reviewed

the working of the cooperative banking system in India have pointed out a
number of weeknesses of the system and have made suggestions to improve
the system.

 Nowadays, banking cooperatives surfer from lack of autonomy. State

partnership in cooperatives cost the introduction of many restrictive provisions
in various state cooperative societies acts. The restrictive provisions eroded
the autonomy and independence of cooperatives
 

Conclusion
The Co-operative banks help in strengthening the development of the economy.
Cooperative banks are a great help to rural masses who are engaged in agricultural
activities. But currently, these banks are under great pressure because of low
productivity, low efficiency and therefore the necessary profit is unable to generate.
The Co-operative banks have great scope because India is an agricultural-based
country and Co-operative banks mainly work for masses engaged in agricultural
processes. There are some suggestions which would help in the effective functioning
of Co-operative banks such as, Willful defaults should be made an offense, financial
stability of the money borrower should be checked and evaluated. New and Innovat

Week Activities

The general information about the bank and

rules and regulations followed by then and
1st week the service provided by them to the customer
was explained by the manager and analysing
the day book and the day book of accounts.
How to check day book and how to deposit
money and full check

2nd week How to open bank account and how to fill the
details in the form

3rd week What are loans and for whom the loans are
given and how to fill the loan form and
knowing what all document to get a loan

4th week Feeding the customer details in the computer

and editing some of information and
scanning the originals which is given by


customers to bank as a proof of there identity