Customer service is the service provided in support of a banks core products.

Customer service often includes answering questions; handling complaints. Customer service can occur on site (as when an onstage employee helps a customer or answers a question) or it can occur over the phone or the Internet. Quality customer service is essential to building cordial customer relationship. Banking being a service industry, a lot depends on efficient and prompt customer service. Customer service is the most important duty of the banking operations. Prompt and efficient service with smile will develop good public relations reduce complaints and increase business. Why is Customer Service Important?

Changing customer expectations: Today the customer is more demanding and more sophisticated than he or she was thirty years ago. The increased importance of customer service: With changing customer expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services. The need for a relationship strategy: To ensure that a customer service strategy that will create a value preposition for customers should be formulated implemented and controlled. It is necessary to give it a central role and not one that is subsumed in the various elements of the marketing mix. The customer is the kingpim in growth organizations like commercial banks. Only those institutions which work according to his dictates will flourish. Quality, Consistency

and Durability at low price are the final expectations of a customer. Quality will have to be unambiguous, of world class quality. Quality cannot be of minimum acceptable standards. Customer responsiveness must be quick and also competent. Speed, performance and cost will be the new values mantra for success. The ten key areas of customers services to be attended timely and regularly are: 1. Submission of statement of A/Cs to customers 2. Updating of savings pass books. 3. Teller system efficiency. 4. Cleanliness and Upkeep of premises. 5. Intermediate Credit for institution cheques/land bills. 6. Advance intimation to customers for rewards of Term Deposits Receipts on maturity. 7. Advance for Debit/credit to accounts. 8. Punctuality of staff. 9. Handling of complaint register. 10. Maintain a complaint register. Customers dissatisfaction in the banking industry is neither recent nor unknown. This is mainly due to delays in handling transactions across the counter in collections, update of passbooks supply of statements of accounts, etc. Failure to provide prompt and efficient customer service is likely to lead to reduction in the number of customers and they may have to face closure. To event such situation the following improvements in the customer services may be carried out:

1. Personal relations of the bank employee with customers will improve customer satisfaction. 1 service with smile should be the motto of every bank employee. 2. Rapid customer services should be provided through automation of work and simplification of procedures. 3. ATMs may be introduced in all the branches of the banks, based upon the volume of transactions. This shall facilitate non-stop banking. 4. Credit Cards Services, Debit Card Services, which should be provided to the customers, must a link service with all the banks and branches if possible to facilitate the customer and the business organizations. 5. E-mail service made freely available at all banking centers. 6. Foreign Exchange transactions are to be extended to all the branches to facilitate trade and industries. 7. All the customers are not homogenous in their needs. Hence need based schemes may be introduced. 8. Totally deregulated interest rate structure should be there. 9. The banking staff must be trained to understand the customers psychology, so they may provide customer service in a qualified manner. 10. Educating the customers will increases better utilisation of banking services.

A bank cannot survive without performing the following nonbanking activities:

1. Banks help their customers to make utility payments with ease. 2. They perform merchant banking for their customers. 3. They provide factoring services to their clients. 4. They manage mutual funds and minimize investment risks. 5. They issue gift cheques to the people. 6. They conduct feasibility study and submit the feasibility report. 7. They facilitate the share transactions by maintaining demat accounts. 8. They offer credit and debit cards facility. 9. They also offer leasing services. 10. They give hire-purchase services to owners of various goods 11. They are now allowed to offer insurance services. 12. They provide funds (capital) for starting new ventures . Now let's discuss important non-banking activities performed by banks. 1. Utility Payments Banks make utility payments for their customers. Utility payments include payment of an Electricity bill, Insurance premiums, phone bill, water bill, etc. They also pay SIP (Systmatic Investment Plan) payments to Mutual funds for their customers. These payments are made by using the Electronic Clearance Scheme (ECS). Banks charge a small (nominal) fee for making these payments. 2. Merchant Banking Large banks perform merchant banking for their customers. They help them to raise finance . They give them advice about starting and running abusiness . They help their customers to make a profit in the stock exchange . They even do project management . They also help in expanding and modernizing the business of their clients.

Today, banks help to revive (cure) sick industries. They also help in restructuring the business. 3. Factoring Services Banks also provide factoring services to their clients. Factoring is an agreement between a bank (factor) and a business firm (client). Under this agreement, the business firm sells goods and services to their customers on credit. The bank (factor) purchases the customers' Bills Receivable or debtors account from the business firm. So, the business firm is guaranteed payment for their credit sales. However, the bank (factor) decides whom to give credit and how much credit to give. 4. Mutual Funds Mutual funds are very popular because of expansion and diversification of the financial sector. The Unit Trust of India (UTI) was the first financial institution to start mutual funds in India. Many other banks now have mutual funds such as ICICI Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, etc. Mutual Funds are controlled by SEBI. Mutual Funds are purchased by investors because they offer minimum risk, maximum return and liquidity. Mutual funds with their resources and expertise invest on behalf of individual investors giving them capital appreciation with minimum risk. Mutual funds publish the NAV (Net Asset Value) of their funds daily. They also repurchase the units issued by them based on their NAV. Investors who like to play safe go for mutual funds. 5. Gift Cheques Gift cheques are printed in attractive colours and designs. Gift cheques are issued by banks to the public. They can give these cheques as a present on auspicious occasions like marriage, birthdays, retirements, promotion, anniversary, etc. They are normally issued for Rs. 11, 21, 51 and 101. The purchaser makes full payment at the time of purchase. Gift cheques are transferable by hand delivery. These cheques have an expiry date. If a gift cheque is lost, a duplicate is

issued. These cheques are payable on demand. The payee can claim the money at any branch of the issuing bank. 6. Feasibility Reports Banks conduct feasibility study on behalf of the client and submit the feasibility report. This report shows chances of success of the project. Feasibility study is conducted before starting the project or business. Conducting feasibility study is not compulsory, but it gives many benefits to the businessman. Banks like IDBI or any commercial bank can conduct feasibility study in functional areas such as technical, managerial, financial and economic. After completion of feasibility study, the banks submit a feasibility report. Based on this report the businessman decides whether to do the project / business or not. 7. Demat Account Demat is a commonly used name for dematerialization. Traditionally, shares were held in a physical form. Under dematerialization, shares are held in an electronic form. Demat account is like money kept in a savings account. You can deposit and withdraw the amount whenever you want. The transactions in electronic shares are quick, safe and simple. The shares purchased by a shareholder are transferred in his name on the next day of payout. A shareholder can sell and transfer his electronic shares from his office / house through a broker. Most of the shares are under demat. Banks facilitate the share transactions by maintaining demat accounts in their branch.

8. Credit and Debit Cards Most large banks offer credit card facilities. Indian credit card market is growing at 30-35% per annum. ICICI, Citi, HDFC and SBI are the leading banks that offer credit card facilities. Most of the banks also offer debit cards to their customers. With the help of debit cards, the customers can make payments for the goods and services. This amount gets deducted from the balance they hold with the banks.

9. Leasing Services Indian banks offer leasing services. In March 1994, RBI permitted banks to enter leasing finance provided following conditions are fulfilled: 1. Specialized branches must be opened for doing this work. 2. Banks may give lease finance up to 10% of their total advances. 3. Assets in leasing will be treated as assets carrying 100% risk weightage. 10. Hire Purchase Banks provide hire-purchase services. They finance hire-purchase contracts. Here, the owner of goods hires them to another party for a certain period and for the payment of a specific installment. The transfer of goods is passed on to the user after a definite period provided payment of all specified installments is clear. 11. Insurance Banks are now allowed to offer insurance services through separate branches. Many Indian banks such as ICICI, IDBI, HDFC, etc., have entered into foreign collaborations to provide life insurance service in India. ICICI has joined Prudential Life, HDFC with Standard Life, IDBI with Fortis (now Federal) to provide life insurance services to Indians. 12. Venture Capital Services Banks like ICICI, SBI, IDBI provides venture capital services. Here, banks provide funds for starting new ventures and for high-risk businesses with high-profit potential. Venture capital helps businessmen to get funds for highly risky projects. Venture capital means to buy shares in high-risk projects / businesses with high-profit potential. For e.g-ICICI bank has a customer service charter and all sort of things like netbanking phonebanking , privilege desk etc. It is decent

if u are a relationship or privileged client. But the fact still remails, for the aam customer, their customer service still Sucks bigtime. ATM : An ICICI ATM is never empty, there is always a line of customers waiting to be serviced. Some even thieves so beware to take ur belongings including the atm card and press clear/ cancel and check the screen before u exit. Phonebanking : If you want to listen to a voice other than an ivr, expect waiting atleast 8 minutes at 10.30 at nite, more during the day . If u have verified ur account thru the ivr expect the person to verify you again and again with wierd queries like what were your last three transactions and what is ur debit cards last 4 digits, then put u back on the ivr if u dont have ur atm/debit card handy , then wait for another person for another 5 to 8 minutes. If your wait time is less than a minute you will feel a sense of immense accomplishment that no words can describe.One more accomplishment is if one manages to desensitize oneself off the sick jhin chako jhin icici song and the loads of adds that one has to hear while waiting.Cheat the system by using the nri number or wealth management no. Netbanking is the best service offered by the bank, that is if u manage to get it to work. Remember ur atm/debit card no is ur login, not ur cust id.Pray that the branch doesnt bungle up, and the courier manages to mail you ur password, else ask for a branch collect as i had to do after 2 attempts. Branch Banking: Find a good branch to bank with , some branches are pathetic at service. Be meticulous at record keeping and escalate complaints with the BM if the bum in the blue salwar has messed up ur mundane task. Customer service/ Email: Please dont shy from escalating ur complaint to a higher up as soon as possible. Dont waste your time with low level customer officers, they most often than not dont know their job. That said , rethink your decision of opening an account with ICICI bank In the first place.

ROLL NUMBER-

272
BIBLIOGRAPHY: www.google.com www.wikipedia.com

JOSHI BEDEKAR COLLEGE

NAME : SUPRIYA RAMCHANDRA PHADTARE

SUBJECT: ECONOMICS CLASS & DIVISION: T.Y.BCOM/C

ASSIGNMENT NO. : 1 ASSIGNMENT TOPIC : PERFORMANCE OF BANK CUSTOMER SERVICES

PROFESSOR: JANGALE SIR

ACKNOWLEDGMENT
My deepest thanks to lecture , prof. PRAKASH JANGLE sir the guide of the project for guiding and correcting various doccuments of mine with attention and care. He has taken pain to go through the project and make necessary correction as and when needed. I exess my thnks to the principal of univercity of mumbai for extending his support. i would also thank my institution and my faculty member without whom this project have been distant reality.