Ans1

Abankerisabanki ngexper twhogi vecli

entf i
nancialadvi
ceonmat t
ersrelat
ingtol
oans,
i
nvestments,securi
ti
esandsav ings.Thef i
nancialadvicenotonl
yhelpscli
entstosolv
efi
nanci
al
needbutalsoincreasetheirformspr ofi
ts.Anumberofbankerwor kinlocalfi
nanci
ali
nst
it
uti
on
whil
eotherwor kforint
ernationalinf
ormv ariousdut i
esandtasks.

Dut
iesoft
heBanker

1.KeepRecor
ds:

•Banker
srecor
dal
lthedai
l
yfi
nanci
alt
ransact
ionst
heyconduct
.

•Thi
sbeaut
yinv
olv
esr
evi
ewi
ngdocument
s,suchasbankst
atementandl
oanappl
i
cat
ionf
orm
ev
ery
day.

•Indoingsobankercanal
l
ott
henecessar
yaut
hor
it
yift
heynot
iceanyf
raudul
entact
ivi
ti
es
t
akingplacei
nthebank.

•Bankermustal
sokeept
hisr
ecor
dinasaf
epl
acet
opr
otectt
heconf
ident
ial
i
tyoft
he
i
nfor
mation.

2Adv
iceCl
i
ent
s

•Oneoft
hepr
imar
ydut
iesofabankeri
stohel
pcl
i
ent
sful
fi
ll
thei
rfi
nanci
alneeds.

•Theydosobyansweringthefi
nanci
alquest
ionsaskedbycl
i
entei
therdur
ingf
ace-
to-
face
meeti
ngorphoneconv
er sat
ion.

•Exper
ti
seofabankeri
smeasur
edbyt
hesuccessoff
inanci
aladv
icegi
vet
ocl
i
ent
s.

•Goodadv i
cehelpsinbui
l
dingal
argecl
i
entwhyway
swhi
chi
mpr
ovest
hepr
ofi
tabi
l
ityoft
he
f
inanci
ali
nsti
tut
ion.

3.Gat
herFi
nanci
alI
nst
it
uti
on
•Anot
heri
ntegr
aldutyperformedbyabankeri
sgat
her
ingper
ti
nentf
inanci
ali
nfor
mat
ionf
rom
bot
hnewandexisti
ngclients.

•Aft
erspeakingwithcli
entsaboutt
hef
inanci
alneedaBankeruset
hei
nfor
mat
iongat
her
edt
o
pr
epareaccountsandloans.

•Forexample,thebankusesthei
nfor
mat i
ont
ogi
vel
oanst
ocr
edi
twhatt
hepeopl
ewhohav
e
comparat
ivel
ylowerchancesofdef
aul
ting.

4.Di
sbur
seFunds

•Peoplev
isi
tBankt
owi
thdr
awanddeposi
tforoneort
oappl
yforl
oanf
rom t
hef
inanci
al
i
nst
it
uti
on.

•Accept
ingdeposi
tsanddi
sbur
singf
undsrequir
esalotofat
tent
ionandaccur
acy
,banker
s
mayusemoneycountingmachi
netocar
ryoutthi
stask.

5.Enf
orci
ngsecur
it
y

•Fi
nanci
ali
nst
it
uti
oncanmakemi
sul
osst
hroughexcept
ingcount
erf
eitbi
l
ls.

•Bankerpassedthebil
lsdeposi
tedbycust
omert
hrought
hecount
erf
eitmoneydet
ect
ort
o
pr
eventanyfakebil
lfr
om hit
ti
ngthecashsti
ll
.

•Wit
hrisi
ngcaseoffr
audbanker
sar
eal
soont
heLookoutf
orcount
erf
eitcheckt
hecust
omer
mayatt
empttocash.

Responsi
bil
i
tiesoft
heBanker

1.Obl
i
gat
iont
opayCheques

•Iti
sastat
utor
yobligati
onoft
hebank,
hav
ingsuf
fi
cientf
undsoft
hecust
omert
obechecked
dul
ydrawnandpresented.

•Bankmayr
efusepay
mentofachequef
orar
easonsuchas:
-I
nsuf
fi
cientf
undsi
ntheaccount
.

-Chequesi
snotpr
oper
lydr
awn.

-Chequesi
sst
ale.

-Chequesi
scr
ossedbutpr
esent
edf
orcash.

-chequer
ecei
vedaf
terr
ecei
ptofnot
icet
hati
nfl
uenceonuni
tyoft
hedr
awerf
ort
hecheque.

2.
Secr
ecy

•Iti
soneoft
hei mport
antthi
ngsfort
hebankert
omaint
aincompl
etet
hesecrecyofthest
atus
ofcust
omeraccountandfail
uret
odosowillmaket
hebanktocompensat
ethecustomerfor
anydamageorlosssuff
ered.

•Discl
osur
einthebanksint
eresti
spermi
tt
ed.Soalsoi
tisanaccept
edcustom amongt
he
bankerst
odiscl
osecert
aini
nformati
ontoafel
lowbankeronwri
tt
enrequest
.

3.Banker
'sl
i
en

•Li
engeneral
l
yisari
ghtofthecr
edit
ortoret
aint
hepossesi
onoft
hegoodsandsecur
it
ies
ownedbythedebt
orunt
ilt
hedebtisrepai
d.

•Banker
'sgener
all
yisnotappli
cabl
etosafecust
odyar
ticlesdocument
s/moneydeposi
tedf
or
speci
fi
cpurposeinsecur
it
ies/val
uabl
eslef
tthr
oughoversight
.

4.Mandat
e

•theaccountholderalonehasther
ightt
ooper
atehi
saccountwiththebank.Nopersonother
thantheaccountholderCanordert
hebanktodebi
ttheaccount
.Buttheaccounthol
dercan
givemendedorapowert oeconomytoanot
herper
sontooperatehi
saccount.

•Amandat
eisanaut
hor
it
ygi
venbyt
heaccounthol
deri
nfav
ourofat
hir
dper
son.

5.PowerofAt
tor
ney

•Iti
sadocumentexecut
edbythedonoror
gant
abl
einf
avourofdr
iveror
igi
ntoactonbehal
fof
thefor
merpr
opert
ygivenint
hedocument.

•
Ther
ear
etwot
ypesofpowerofat
tor
ney:
a.Speci
alpower
,and

b.Gener
alpower

6.Ci
rcumst
ancesl
eadi
ngt
oCl
osur
eofAccount
s

•Therel
ati
onshi
pbetweenthebankerandt
hecust
omeri
sver
yst
abl
i
shedbymut
ual
agr
eement
openandoperat
etheaccount
.

•Thi
srel
ati
onshi
pmaybet
ermi
nat
edatanyt
imebyei
therPar
tybycl
osi
ngt
heaccount
s.

•Infactthebankercustomerrel
ati
onshi
pimposeanimpl
i
edobl
igat
iononthebankernotto
closetheamountoft hecust
omerexpectint
heextr
aordi
nar
ycasesuppor
tedbyindi
sputabl
e
reasons.

7.Loans&Adv
ances

•TheBankdeposi
tar
eusedf
orl
endi
ngori
nvest
mentorbot
h.

•Inaddi
tionBankhandl
espur
chaseandsal
eoff
orei
gncur
renci
esandal
sol
andf
ori
mpor
tand
exportt
rade.

•landi
ngbythebanki
nmost
lyagai
nstsecur
it
ysuchasgooddebt
s,l
andandbui
l
ding,
li
vest
ock,
securi
ti
es,
etc.

(
2)Tr
adi
ti
onal
Banki
ng-

-Banksexi
stphy
sical
l
yforser
vingt
hecust
omer
s

-
Peopl
ehav
etov
isi
tbanksonl
ydur
ingt
hewor
kinghour
s

-Tr
adit
ional
bankingdoesnotencountere-
secur
itythr
eatscust
omer
swhoof
tent
rav
elabr
oad
cannotpaycloseat
tent
ionandcontroloft
heirf
inance.

-
Cust
omer
sdonothav
etospendmoneyf
orVi
sit
ingbank.

-
Thecosti
ncur
redbyt
radi
ti
onal
banksi
ncl
udesal
otofoper
ati
ngandf
ixedcost
.

-l
ntr
adi
ti
onal
banks,
theempl
oyeesandcl
eri
cal
staf
foft
hebankcanat
tendonl
yfewcust
omer
s
ata
t
ime.

I
nter
netbanki
ng-

-
Int
ernetbanksdonothav
ephy
sical
presenceasser
vicesar
epr
ovi
dedonl
i
ne.

-
Itdoesnotconsumet
imeascust
omer
sdonothav
etov
isi
tbankst
ocheckbankbal
ancesort
o
t
ransfer

moneyf
rom oneaccountt
oanot
her
.Cust
omer
scanaccesst
hei
raccountr
eadi
l
yfr
om
any
wher
ewitha

comput
erandi
nter
netaccess.

-
Int
ernetbanki
ngi
sav
ail
abl
eatanyt
imeandi
tpr
ovi
des24hour
saccess.

-Onl
i
nebanki
ngi
sthet
empt
ingt
argetf
orhacker
s.Secur
it
yisoneoft
hepr
obl
emsf
acedby
cust
omersin

accessi
ngaccount
sthr
oughi
nter
net
.

-
Cust
omer
swhoof
tent
rav
elabr
oadcanhav
egr
eat
ercont
rol
overt
hei
rfi
nances.

-
Cust
omer
shav
etospendmoneyf
or

vi
sit
ingbanks.
Theycanav
oidbankchar
gest
hatmaybechar
gedf
orcer
tai
ntel
l
ert
ransact
ions
orwhen

t
heypaybi
ll
sel
ect
roni
cal
l
y—di
rect
lyf
rom t
hei
raccountt
othemer
chant
.Ithel
pst
osav
e
moneyon

post
alchar
ges.

-
Suchcost
sar
eel
i
minat
edast
hebanksdonothav
ephy
sical
presence.

-
Inonl
i
nebanki
ng,
thecust
omer
sdonothav
etost
andi
nqueuest
ocar
ryoutcer
tai
nbank

t
ransact
ions.

-
Cust
omer
scanhav
eonl
yel
ect
roni
ccont
act
s.

(
3)I
mpor
tanceofI
nsur
ance
Thewor ldwel i
veinisfullofuncert
ainti
esandr isks.Indivi
duals,f
ami l
ies,businesses,propert
ies
andasset sareexposedt odiff
erenttypesandl evelsofr i
sks.Theseincluder i
skofl ossesofli
fe,
health,
assets,proper
ty,etc.I
nsuranceisaf i
nanci alproductthatreducesorel iminatesthecost
oflossoref f
ectoflosscausedbydi fferentt
ypesofr i
sks.Amongot herthings,Insurancesect
or
al
soencour agest hevi
rtueofsav i
ngsamongi ndividualsandgener at
esempl oyment sfor
mill
ions,especi
allyi
nacount ryli
keIndia,wheresav i
ngsandempl oymentar eimpor tant.

Ty
pesofI
nsur
ance-

-
Lif
einsur
ance

Asthenamesuggest s,li
fei
nsuranceisinsuranceony ourli
fe.Youbuyl i
feinsur
ancetomake
sureyourdependentsar efi
nanciall
ysecuredintheev entofy ouruntimelydemise.Li
fe
i
nsuranceisparti
cularlyi
mportantifyouarethesol ebr eadwinnerforyourfamil
yorifyour
famil
yisheavil
yreli
antony ourincome.Underl if
einsur ance,thepoli
cyholder
’sfamil
yis
fi
nancial
l
ycompensat edincaset hepol
icyholderexpi
resdur ingtheterm ofthepoli
cy.

-
Heal
thi
nsur
ance

Heal
thinsuranceisboughttocov ermedicalcostsforexpensi
vetreatments.Dif
fer
entt
ypesof
heal
thinsur
ancepol i
ciescoveranarrayofdiseasesandai l
ments.Youcanbuyagener i
chealt
h
i
nsurancepolicyaswel l
aspolici
esforspeci
ficdiseases.Thepremium pai
dt owardsaheal
th
i
nsurancepolicyusual
lycoverstr
eatment,hospital
izat
ionandmedi cat
ioncosts.

-
Cari
nsur
ance

I
nt oday’sworld,acari
nsurancei
sanimportantpoli
cyforeverycarowner.Thisi
nsurance
protect
sy ouagainstanyuntowar
dinci
dentli
keaccidents.Somepolici
esalsocompensat efor
damagest oyourcarduri
ngnatur
alcal
amit
iesli
kef l
oodsorearthquakes.I
talsocoversthi
rd-
partyli
abil
itywhereyouhavetopaydamagest oothervehicl
eowners.
-
Educat
ionI
nsur
ance

Thechi l
deducati
oni nsuranceisakintoal i
feinsur
ancepolicywhi chhasbeenspeci al
l
y
designedasasav ingtool.Aneducat i
oninsurancecanbeagr eatwayt oprovi
deal umpsum
amountofmoneywheny ourchil
dreachest heagef orhi
ghereducat i
onandgai nsent r
yinto
coll
ege( 18year
sandabov e).Thi
sf undcant henbeusedt opayf oryourchil
d’shigher
educationexpenses.Undert hi
sinsurance,thechil
distheli
feassur edortherecipientofthe
funds,whilet
hepar ent/
legalguardi
ani stheowneroft hepoli
cy.

-
Homei
nsur
ance

Wealldr
eamingofowningourownhomes.Homei nsurancecanhelpwit
hcover
ingl
ossor
damagecausedt
oy ourhomeduet oacci
dent
sli
kefir
eandot hernat
ural
cal
amit
iesorper
il
s.
Homeinsur
ancecoversotheri
nst
ancesli
keli
ght
ning,ear
thquakeset
c.

(
4)pr
ocessi
ncl
udedi
nvent
urei
nvest
mentpr
ocessar
easf
oll
ows

-
Deal
ori
ginat
ion

Ori
ginat ionofadeal i
st hepri
mar ystepinvent
urecapit
alfi
nancing.Iti
snotpossi bl
etomake
aninv estmentwi thoutadeal thereforeastr
eam ofdeali
snecessar yhowev erthesourceof
ori
ginationofsuchdeal smaybev ari
ous.Oneofthemostcommonsour cesofsuchor igi
nati
on
i
sref erral sy
stem.I nrefer
ralsyst
em dealsareref
erredtotheventurecapital
istbythei
rbusiness
part
ner s, parentorganisat
ions,fr
iendsetc.

-
Scr
eeni
ng

Screeningistheprocessbywhi chtheventur
ecapit
ali
stscr
uti
nisesallt
heproject
sinwhi chhe
couldinvest.Theproj
ectsarecategori
sedundercert
aincri
ter
ionsuchasmar ketscope,
technologyorproduct,si
zeofinvestment,
geographi
call
ocati
on,stageoff
inancingetc.Forthe
processofscr
eeni
ngt
heentr
epreneursareaskedtoeit
herpr
ovideabri
efprof
il
eoft
hei
r
ventureori
nvi
tedf
orf
ace-
to-
facediscussi
onforseeki
ngcert
aincl
ari
fi
cati
ons.

-
Eval
uat
ion

Theproposal i
sevaluatedaf terthescr eeni ngandadet ailedstudyisdone.Someoft he
document swhicharest udiedindet ail
sar eproject
edpr ofil
e,tr
ackrecordoft heent
repreneur,
fut
uret ur
nov er,
etc.Thepr ocessofev aluat ionisat horoughpr ocesswhi chnotonlyevaluates
theprojectcapacitybutal sothecapaci t
yoft heentrepreneur stomeetsuchcl ai
ms.Certain
quali
ti
esi ntheentrepreneursuchasent repreneuri
al skil
ls,techni
calcompet ence,
manuf acturi
ngandmar ket i
ngabi l
i
t i
esandexper i
encear eputintoconsiderati
onduri
ng
eval
uat i
on.Af t
erputti
ngi ntoconsi derational lt
hef actors, t
horoughriskmanagementi sdone
whichist henfoll
owedbydeal negot i
ation.

-
Deal
negot
iat
ion

Aft
ert heventurecapital
istfindstheprojectbenefi
cial
heget sint
odeal negot
iati
on.Deal
negotiat
ionisapr ocessbywhi cht het
ermsandcondi ti
onsoft hedealaresoformulatedsoas
tomakei tmut ual
lybenef i
cial.Theboththepar t
iesputforwardthei
rdemandsandawayi n
betweeni ssoughttoset tl
et hedemands.Someoft hef act
orswhicharenegot i
atedar
eamount
ofinvestment,percentageofpr of
ithel
d

bybot
hthepar
ti
es,
right
soft
hev
ent
urecapi
tal
i
standent
repr
eneuret
c.

-
Posti
nvest
mentact
ivi
ty

Oncet hedealisfi
nal
ised,theventur
ecapital
istbecomesapar tofthev ent
ureandtakesup
cer
tainr i
ght
sanddut i
es.Thecapi t
ali
sthowev erdoesnott
akepar tint hedaytodaypr ocedures
ofthef i
rm;i
tonlybecomesi nv
ol v
eddur i
ngthesituat
ionoffi
nancialrisk.Theventurecapital
i
sts
par
ticipatei
ntheenterpri
sebyar epresent
ati
oni ntheBoar
dofDi rector sandensurethatthe
ent
er pri
seisacti
ngaspert heplan.

-
Exi
tpl
an
Thelaststageofv enturecapit
al i
nvestmentistomaket heexi
tplanbasedont henat
ureof
i
nvestment ,
extentandt ypeoffinancialst
akeetc.Theexitpl
anismadet omakemi ni
mal l
osses
andmaximum pr of
its.Theventurecapital
istmayexitt
hroughIPOs,acqui
sit
ionbyanother
company ,
pur chaseoft hevent
ur ecapit
ali
stssharebythepromoteroranoutsider
.