By- Harihar .

J,
Utkarsha. S,
Aaditya. R
Ashish.B
INTRODUCTION
“Retail banking is typical mass-market
banking where individual customers use local
branches of larger commercial banks. Services
offered include: savings and checking
accounts, mortgages, personal loans, debit
cards, credit cards, and so”
Evolution of banking in India
 Banking is believed to have existed in India as early as
the VEDIC period.
 Money lending was common practice in India.
 British agency houses started modern banking in India in
the second half of the 18th century.
 In 1920, 3 presidency banks bank of Mumbai, kolkata &
Bengal are amalgamated to form Imperial bank of India.
 RBI was established in the year 1935.
 Imperial bank of India became the State bank of India
after its nationalization in 1955.
Functions of Retail Banking
 PRIMARY FUNCTIONS
Accepting deposits
Granting loans & advances

 SECONDARY FUNCTIONS
Agency functions : payment & collection of negotiable
instruments, purchase & sale of securities etc.

General utility function : safe custody, foreign exchange ,

Investments etc.
Retail Liabilities:
The first banking aspect is to start a
relationship with the customer by opening the
account.

Retail Assets:
Retail assets lending is well deserved as a
better product in leveraging the pricing with
diversification. But its importance is something
more.
 Reforms in Banking Sector
 In July 1969, 14 major banks were
nationalized.
 In 1980, 6 other banks were nationalized.
 In 1991, privatization took place so entry for
private sector banks was opened.
 No further nationalizations of bank.
 No difference in treatment between public
sector and private sector banks.
 No bar to open banks in private sector.
 More foreign banks should be allowed to open
branches in India.
CENTRAL BANK OF INDIA
 Itis bank which controlling the banking system of
any country.
 Central bank have the sole right of note issue,
regulating the overall banking business.
 R.B.I. is central bank.
 Control of the R.B.I can be classified as follows :-
 General control for maintaining business discipline.
 Regulation of Banking operations.
 Credit controls.
 Public sector banks in India
 All government owned banks fall in this variety.

 Besides the Reserve Bank of India, the State Bank

of India and its associate banks and about 20
nationalized banks, all comprises of the public sector
banks.

 Many of the regional rural banks that are funded by

the government banks can also be clubbed in this
genre. 
 Public Sector Banks(Nationalised)
   State Bank of India (SBI)
    State Bank of Bikaner & Jaipur
    State Bank of Hyderabad
    State Bank of Indore
    State Bank of Mysore
    State Bank of Patiala
    State Bank of Saurashtra
    State Bank of Travancore
    Bank of India
   Canara Bank
 Private sector banks in India
 A new wave in the banking industry came about
with the private sector banks in India.

 With policies on liberalization being generously

taken up, these private banks were established in
the country that also contributed heavily towards
the growth of the economy and also offering
numerous services to its customers.
Some of the most popular banks in this genre are:-
 Axis Bank
 Bank of Rajasthan
 Catholic Syrian Bank
 Federal Bank
 HDFC Bank
 ICICI Bank
 ING Vysya Bank
 Kotak Mahindra Bank
 SBI Commercial and International Bank.

The Foreign Banks in India like

 HSBC
 Citibank
 Standard Chartered bank etc can also be clubbed here. 
 Cooperative banks in India
 With the aim to specifically cater to the rural
population, the cooperative banks in India were
set up through the country.

 Issueslike agricultural credit and the likes are

taken care of by these banks.
 Cooperative banks in India
 The Goa State Co-operative Bank

 The Cosmos Co-operative Bank

 Rupee Co-operative Bank

 Vidya Sahakari Co-operative Bank

 Sched uled a nd Non -Sch ed uled Ba nk s

 The difference lies in the type of banking

activities that a bank can carry out in India.

 In the case of a scheduled bank, it is licensed by

the RBI to carry on extensive banking operations
including foreign exchange operations, whereas,
a non-scheduled bank can carry out only limited
operations.
 There are a number of factors considered by
RBI to declare a bank as a scheduled bank, like
the amount of share capital, type of banking
activities that the bank is permitted to carry out
etc.

 An example of difference between a scheduled

and non-scheduled bank is dealing in Foreign
Exchange.
 The following are the Scheduled Banks in India
(Public Sector):
 State Bank of India
 State Bank of Bikaner and Jaipur
 State Bank of Hyderabad
 State Bank of Indore
 State Bank of Mysore
 State Bank of Saurashtra
 State Bank of Travancore
 Andhra Bank
 Allahabad Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 IDBI BANK
 IDBI- A Trusted Name In Indian Banking
 IDBI is the apex banking institution in the field of long term
industrial finance.
 Set up in 1964 as a wholly owned subsidiary of the Reserve Bank,
IDBI was delinked from Reserve Bank on 16th February,1976,when
its entire share capital was transferred to the Central Government.
 Today, Industrial Development Bank Of India,(IDBI) is one of
India’s largest banks. It has essayed a significant role in the
country’s industrial and economic progress for over 40 years—first
as a development Financial Institution and now as a full-service
commercial bank.
Info. About Products
Retail Banking Products:
 There are various products in retail banking which are
classified into Retail Liabilities, Retail Assets and Third
Party Distribution(TPD).

Retail Liabilities products:

1. Savings Account:
 Savings Bank Accounts are meant to promote the
habit of saving among the citizens while allowing them to
use their funds when required.
2. Current Account:
A Current account is a financial account with a bank or
financial institution. It enables account holders to make or
receive an unlimited number of payments as frequently as
they wish. Thus, current accounts are considered as an
essential tool for businessman.

3. Fixed Deposit:
Fixed Deposit was introduced in September 1992 to raise
funds from eligible investors. Deposits are accepted in
multiples of Rs 1000 for a minimum deposit amount of
Rs10000/- and for minimum period of 1 year. Interest is
calculated at applicable.
 Retail Assets products
Loan Against Shares(LAS):
 It is nothing but secured loan in which borrower pledge some
asset as collateral for the loan, which then becomes a secured
debt owed to the creditor who gives the loan.

Benefits.
 No EMI’s
 No Post Dated cheques
 No Pre – payment charges
 Interest charged only on utilized amount
 Simple and speedy processing
 Loan.
 Overdraft against fixed deposits (FDOD):

 This option allows you to continue earning the

higher rate of interest on an FD and at the
same time, you meet your monetary
requirements.

 An overdraft of up to 90% of the FD/Multiple

FDs held with the bank, will be setup in your
zero balance savings account.
 Types of Loans:

1. Home Loan:

 Maximum Funding
 Flexibility of choosing between Floating or Fixed interest rate
 Attractive rate of interest
 EMI on daily reducing balance
 Personalised doorstep service
 Simple documentation
 Legal and technical assistance
 Balance transfer facility
 Tax Benefits : A maximum deduction of Rs. 1,50,000 on your income
towards interest paid on your home loans.
 A maximum deduction of Rs. 1,00,000 on the principal repaid . The
above benefits are available subject to you fulfilling certain conditions,
for which you should refer the IT Act 1961.
 Auto Loan:

 A amount taken from bank to purchase vehicle which you desire is called as
auto loan.

Features and Benefits:

Maximum Funding.
Covers wide range of vehicles and high end bikes.

Personal Loan:

In case of death or disability due to an accident, the insurance company will
pay the principle outstandings.
In case of loss of job, the insurance company will pay the EMIs for up to 3
months.
Also customer can transfer his existing loan to IDBI Bank and save up to Rs
50,000.
 Mortgage Loan:

 A loan taken against Commercial and Residential property and also

against the future rent receivables is called as mortgage loan.

Education Loan:

 Maximum loan amount:

 Study in India-Rs.10 lakhs
 Study Abroad -Rs.20 lakhs

Third Party Distribution(TPD):

 A third party distribution beneficiary is an individual for whose

benefit contract is created even though that person is stranger to both
the agreement and consideration. Such an individual can usually
bring suit to enforce the contract or promise made for his or her
benefit. IDBI bank has different products in third party as follows:
1. General Insurance: General insurance or non-life insurance
policies, including automobile and homeowners policies, provide
payments depending on the loss from a particular financial event.

2. Life Insurance : Life insurance or life assurance is a contract

between the policy owner and the insurer, where the insurer agrees to
pay a designated beneficiary a sum of money upon the occurrence of
the insured individual's or individuals' death or other event, such as
terminal illness or critical illness.
 
3. Wealthsurance: It is a unique tax saving plan that helps customer
to achieve the twin objectives of tax efficiency and wealth growth.
The premiums customer contribute to his wealthsurance plan are
eligible for tax savings under Sec 80C up to limit of Rs.1lac per year,
and all the returns and benefits customer receive under the
wealthsurance plan are tax-free under Sec 10(10D).

 
RETAIL SERVICES
Retail Banking Services:

 Thereare two type of services such as card services and alternate

channels in retail banking services segment. IDBI bank has following
services:

Card Services:

 International Debit-cum-ATM-Card:
This card enables customer to access world, anytime of the day or
night. It not only lets the person to withdraw money from ATM’s and
IDBI bank’s associated ATM’s, but also empowers customer to shop,
dine and travel.
 Gold Debit-cum-ATM Card:
 It is IDBI Bank’s other revolutionary card product. The customer not only withdraw cash
or make PURCHASES on card, but also gets benefits like Petrol Surcharge Waiver, Insurance
cover and enhanced daily redemptions.

Platinum Card:
 This card of IDBI bank guarantees the customers a power packed banking experience, a
package of special benefits and unique offers on shopping and fine dining, Zero Fuel Surcharge
waiver, more enhanced daily limits.
 
Gift Cards:
 IDBI Bank has presented India’s first prepaid Gift Card. It gives the customer the power
of choice at over 3.24 lacs VISA outlets across India, it can be used more than once with
convenient refills. There is no need to have an account in bank for purchasing gift card. It is
valid for 2 years.

Cash Card:
 This card is an easy solution for the corporate which want to disburse salary of their
employees without opening an account. IDBI bank cash card allows the customer to use the
card to make purchases at over 3.4 lakh merchant establishments in India and it can also be
used to withdraw cash from over860 IDBI Bank ATM’s and all shared network ATM’s in India.
 Retail Banking Services Chart:

Services  

   CARD SERVICES ALTERNATE SERVICES

 
International Debit cum ATM card Internet Banking

Gold Debit cum ATM card Mobile Banking

Platinum Card Phone Banking

Gift Card Demat Account

World Currency Card Card-to-Card Money

Transfer
Cash Card
Account Alerts

Easy Fill
 
 
 
 Easy Fill:

 With Easy Fill service of IDBI Bank, there is no need for

prepaid mobile users to go and buy talk time refill again.

 Customers can get an instant mobile refill either through

IDBI Bank’s ATM, or by sending an SMS, or by using
IDBI Bank’s Internet Banking- anytime, anywhere.

 Customers can also refill mobile airtime in various

denominations depending on their requirements.
THANK YOU….