Presented by :

Shilpi Dani Tanisha Jain Shivani Tomar Shivani Singhal Shikha Shrivastav Shilpi Singh Sukesh Singh Vinay Singh kushwah Vivek singh Yadav

Retail banking
Retail banking refers to banking in which banking

institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

Types:1) Commercial bank: Commercial bank is the term used for a normal bank to distinguish it

from an investment bank. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.

Cont
2) Community development bank:It regulated banks that provide financial services and credit to underserved markets or populations.

3) Private bank: "Private banks" can also refer to non-government owned banks in

general, in contrast to government-owned (or nationalized) banks.

4) Offshore bank:An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages.

5) Savings bank:It accept savings deposits.

Deposit account
A deposit account is a current account, savings account,

or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank, and represent the amount owed by the bank to the customer.

Types
Fixed Deposit Account:These are deposit which are made with the bank for a fixed period specified in advance. The bank need not maintain cash reserves against these deposits and, therefore, he bank offer higher rates of interest on such deposits.

Saving Bank Deposit Account:These deposit are mostly of small amounts and are accepted by banks to encourage persons of small means to make savings.

Current Deposit Account:The primary objective of current account is to save big customer as big businessmen, joint stock companies, public authorities, etc. from the risk handling cash themselves. It is a running account.

Opening of Current and Savings Account

1) Application on the prescribed form:The application is required o give his name, address and occupation, including bank rules in the form.

2) Photographs:Submit two photographs.

3) Introduction or Reference:The applicant is also required to furnish in the application from the names of the refers from whom the banker may make enquires regarding the character, integrity and respectability of the applicant.

4) Specimen signature :Even customer is required to supply to his banker with one or more specimen of his signature in alphabetical order.

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5) Mandate for an operation of the account by an agent:In case a customer desires to get his account operated upon by another person, the bank will obtain a mandate in writing to that effect as well as the specimen signature of the person in whose favour the mandate is given.

6) Opening the account:After observance of these formalities, The applicant is required to deposit alternative minimum amount ranging from Rs. 100- 1,000 in Saving account and Rs. 5,000 20,000 in case of current account. Bank provides:-

A pay in slip book.

A cheque book.
A pass book.

Legal frmework
the account holder retains rights to have their funds repaid on demand.

The customer may or may not be able to pay the funds in the account by cheque, internet banking, or other channels depending on those provided by the bank and offered or activated in respect of the account. the term "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds (whether cash or checks) themselves, which are shown an asset of the bank. In the audited financial statements of the bank, on the balance sheet, the $100 in currency would be shown as an asset of the bank on the left side of the balance sheet, and the deposit account would be shown as a liability owed by the bank to its customer, on the right side of the balance sheet.

 the bank has actually borrowed $100 from its depositor and has

contractually obliged itself to repay the customer according to the terms of the demand deposit account agreement. By transferring the ownership of deposits from one party to another, they can replace physical cash as a method of payment. In fact, deposits account for most of the money supply in use today.

Banking Regulation
Bank regulations are a form of government regulation which

subject banks to certain requirements, restrictions and guidelines.

Objective: Prudentialto reduce the level of risk to which bank creditors are

exposed (i.e. to protect depositors) Systemic risk reductionto reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures Avoid misuse of banksto reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime To protect banking confidentiality Credit allocationto direct credit to favored sectors

Regulatory protection
Banks are normally subject to prudential regulation which

has the purpose of reducing the risk of failure of the bank. It may also have the purpose of reducing the extent of depositor losses in the event of bank failure.

Retail lending
Retail lending is the practice of loaning money to individuals rather than institutions . Retail lending has taken a prominent role in the lending activities of banks, as the availability of credit and the number of products offered for retail lending have grown. The amounts loaned through retail lending are usually smaller than those loaned to businesses

Drivers of Growth
Economic prosperity and consequent increase in

purchasing power. Changing consumer demographics. Technology Declining interest rates

Other Drivers
Growing disintermediation Credit risk diversification

Information asymmetry
Unequal resources

Analysis of Retail Credit Growth

Housing loan Credit cards

Education loan
Auto loans Personal loans

Housing loan
These loans are secured by mortgage of residential property which is quite easy to sell in the market. Up to INR 20 lacs such loans qualify as priority sector advances, and borrowers who live in these houses (selfoccupied) are interested in retaining ownership, so default rates will be under control under normal circumstances.

Personal loan

CREDIT CARDS
Foreign banks in India were the first to start the retail lending revolution in India. To overcome the restriction imposed by the branch licensing policy of RBI, these banks began targeting retail customers through other delivery channels. Credit card was the first product that foreign banks offered to retail customers in India. These banks operated through franchisees for selling cards, collections, and acting as customer contact points.

EDUCATION LOAN
Due to the gradual reduction in government subsidies, and proliferation of private educational institutions for professional courses, higher education has become quite costly. Education loans provide financial assistance to deserving students to enable them to pursue higher education.

Auto loan