BRANCH BANKING

This ppt is made for primary users, junior college or engineering students and te information is at a basic level. The objective of the ppt is explain certain basic functions of a bank branch.

What are bank branches ?

Banks run through customer operating offices which are commonly know as bank-branches. A single branch has a specific area of operation although not restricted to it. Each branch is managed by its own branch manger and closely assisted by experienced Relationship manager or a wealth manager an assistant branch manger. A Bank X branches are connected to each other and to the Head office usually known as the Bank House. All application processing takes place at a processing center in one or two locations usually known as the Shared Service Center. Each bank branch is required to have an Automated Teller Machine.

All the money transaction that takes place in the branch are from a currency chest kept at the branch. All chek transactions that take place through the branch are sent for clearing by 11am. They treasury team of the bank consolidates the debit and credit of the bank as a whole.

Bank Branch

The functional layout distinguishes the roles and the designations of the bank staff. However each and every member of the branch are a front office staff and are required to have direct customer interactions.

The purpose of a branch is to ensure that each and every customer of the bank can execute his financial needs of depositing, borrowing and transferring in a seamless process. Usually branches discourage customers to avoid opening multiple accounts for the same purpose as it may lead to fraud All bank branch compulsorily should have all its retail products available to its customers. However wholesale banking or premiere banking is operative at special zones for trade and business convenience.

BANK HOUSE

BRANCH

BRANCHBRANCH

BRANCH

SERVICE CENTER

ATM

ATM

ATM

SSC

Branching structure

STATE WISE DISTRIBUTION OF COMMERCIAL BANK BRANCHES –MAR’13

CUSTOMER RELATIONSHIP

It is the foremost responsibility of the branch to maintain legally sound and effectively prosperous relationship with each customer. The RESERVE BANK OF INDIA has urged all bankers in India to remain committed to customer education on banking products and restrain misspelling.

Each branch customer relationship comes under Banking Obudsman. Banking Ombudsman [1] is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006, and the authority was created pursuant to the a decision by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks.

Indian region-wise complaint received under Banking Ombudsman

INTERBRANCH TRANSFERS

One of the most important reasons why a bank branch exists is to help transfer money instantly to our creditors, friends & relatives and other service providers. Be it businesses big or small professionals or any adult monetary transaction is not possible by physically carrying money from one place to another for payments or purchases. This where the the banks help through the NEFT and RTGS for account transfers.

NEFT & RTGS

NEFT Electronic branch to different bank branch fund transfer Receiver or beneficiary gets credit same day or next day Remitting bank prepares a structured financial messaging

solution and sends it to service branch The RBI & Clearing house sorts the data and sends

information to the receiving bank, wherein it credit Beneficiary account.

RTGS This is national or international fund transfer where

settlement is done on real time gross basis For the banks this help in reducing Payment systems risk &

credit risk. The banks may charge something for this service

PROGRESS IN NEFT IN INDIA

PROGRESS IN RTGS IN INDIA

Electronic Banking Today banks in India are being enrolled to CBS

or CORE Banking System. CORE stands for centralized online real-time electronic banking.

Electronic system follows the concept of Anywhere banking & Anytime banking. This is possible through possible through batch updates and online updates through the different services as shown in the previous fig. . Batch updates are typically for total cash movement from the branch for that particular day eod everyday. Online updates are direct links to mainframe computers with ATMs etc.

The products through which a user can benefit out of electronic banking are Debit cards, Credit cards and Electronic banking unique identification codes

ELECTRONIC BANKING TRANSACTIONS - ALL INDIA

resources

We have referred the RBI website for most of the data represented here. We have also refereed textual matter from IIBF books.