BANKING SYSTEM

The Banking System provides access to eight basic functions of banking. These include:

Bank Accounts

Printing MICR Information

Checks

Deposits

Adjustments

Check Register

Check Reconciliation

Recurring Payments

Batch Posting

The Check Writer tabbed dialog form provides access to the first five banking functions.

BANK ACCOUNTS
The Bank Accounts form is used to enter bank account information. You can enter multiple accounts per bank, or enter accounts for any number of banks. You can also set your starting check number, if the account is a checking account, as well as view the current bank balance and other account information.

PRINTING MICR INFORMATION

If you purchase the optional MICR Font (included for free with the Developer version), you can enter and print MICR information on your checks. This is really only used if you will be printing to blank check stock. MICR stands for Magnetic Ink Character Recognition. Banks use this to automatically process checks. If you will be printing your own checks with MICR information, you will also need to use magnetic toner. This produces a MICR font that is readable by your bank. If you are interested in printing MICR information, we can provide you with companies that sell Magnetic toner. Once the font is installed and registered in Windows, Yes! I Can Run My Business can locate the font and display MICR information on the MICR Line in the Bank Accounts form. This information is then displayed on the Deposits, Checks and Adjustments forms. When your print any of these items, you have the option to print the MICR information.

CHECKS
The Checks form allows you to create and print checks. Choose the bank account you want to work with and enter check information.

Create Check Stubs for Check Printing and Mailing

Handle VOID/Spoiled Checks

Enter Multiple GL Account Splits include Negative Amounts

Search by Check Number, Date, Payee, or Memo Field Data

Control Passwords for Reprinting or Unvoiding Checks

Automatically Display Bills Used to Create Bill Pay Checks

Duplicate Any Check

Several options are available for printing checks. You can print checks in several positions, as shown in the figure below. You can also select from different check types, such as Window, Standard, Pre-Printed or Plain Paper checks.

If you purchased the optional MICR Font and have magnetic toner, you can print the checks on blank paper. Otherwise, you can use virtually any type of check stock to print the check data to pre-printed checks. Just customize the check report to print the data on your pre-printed check. You can also purchase pre-printed checks through Database Creations, Inc. that can be used with Yes! I Can Run My Business.

DEPOSITS
The Deposits form allows you to enter deposits for any bank account that you have. You can also create detailed deposit slips describing the contents of a deposit. Deposit slips can automatically be created from checks received through the Invoice system.

ADJUSTMENTS
The Adjustments form is used to create a number of different types of adjusting transactions. You can setup your own transaction types that are specific to your business needs. These can include withdrawal type transactions such as bank charges or fees, or deposit type transactions, such as interest earned or wire transfers.

CHECK REGISTER
The Check Register allows you to view or print all the transactions that affect a particular bank account. This register is similar to the check register you would keep for your own personal checking account. It is easy to read and move through. The register will also display voided checks and a cumulative balance.

CHECK RECONCILIATION
The Check Reconciliation form is used to reconcile each bank account. You can view Outstanding, Cleared or All Transactions as well as the current checkbook balance and current Bank Balance. The form calculates the statement difference and outstanding balance. It will also list the number and sum of outstanding checks, payments, deposits and credits. You can easily view the check for any item by pressing the check button.

Features of this form include:

Visual Check Register with Declining Balances

Automatically Excludes Void Checks

Displays All Transactions in Order of Entry

View/Print Running Balances

Easy to Use Check Reconciliation System

Works by Checking Off Reconciled Transactions

Enter Adjustments While You Reconcile

RECURRING PAYMENTS
The Recurring Payments option allow you to enter standard payments that occur on a regular basis on a specific account. You can enter the payment frequency (Monthly, Daily, Weekly, Quarterly, Annually), GL and payment information for each recurring payment. A separate form allows you to view all recurring payments and gives you the option to create checks for all or only selected checks.

BATCH POSTING
The Batch Posting form allows you to view and post all unposted banking transactions. You can select checks to post by bank account or selected period. Basic information about each unposted check is displays on the form and a check button provides the ability to display the actual check.

TYPES OF BANKING
According to their functions, banks may be classified into four chief types, namely, commercial, savings, trust, and investment. The deposits of commercial banks are received largely from individuals, firms and corporations in all lines of business, are repayable on demand, and are mostly invested in short time loans for commercial business purposes, these loans having a maturity of perhaps three to six months, and enabling the bank to keep its assets comparatively liquid and its loans constantly maturing. Savings banks, which are designed to promote thrift, receive unused, small sums from the general public, which are left with the banks for future need. These deposits may be repaid on demand, but since interest is usually paid on deposits, and the bank's investments are made for a long period of time to enable it to earn a higher interest rate , the banks are generally allowed to demand advance notice of anywhere from ten to ninety days of any substantial sums to be withdrawn. This notice of withdrawal may be waived by the bank if it so desires. The bank may also further protect itself against large

withdrawals by limiting the amount which it will receive on deposit from any one person. The chief investments of savings banks are approved bonds and first mortgages on real estate, both probably of long maturity. The deposits classified as trust funds are received from individuals, firms and corporations assigning funds for some trust function, and are repayable and invested according to law and the conditions of the trust. Investment banks receive their deposits from well-to-do people who wish their funds held for investment and which are in due course converted into bonds, acceptances and other so-called investment securities. A particular bank may perform functions of more than one type of banking as the recent tendency in banking is towards an ever greater scope of business, partly caused by competition and partly by the natural desire of a bank to handle all of the business of its customers which it readily can.

CENTRAL BANK
The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the functioning of all banks operating within the country.

PUBLIC SECTOR BANKS

a. State Bank of India and its associate banks called the State Bank Group b. 20 nationalized banks c. Regional rural banks mainly sponsored by public sector banks

PRIVATE SECTOR BANKS

a. Old generation private banks b. New generation private banks c. Foreign banks operating in India d. Scheduled co-operative banks e. Non-scheduled banks

CO-OPERATIVE SECTOR
The co-operative sector is very much useful for rural people. The cooperative banking sector is divided into the following categories. a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit Societies

DEVELOPMENT INSTITUTIONS

BANKS/FINANCIAL

IFCI IDBI ICICI IIBI SCICI Ltd. NABARD Export-Import Bank of India National Housing Bank Small Industries Development Bank of India North Eastern Development Finance Corporation

BANKING SERVICES
Banking in India is so convenient and hassle free that one (individual, groups or whatever the case may be) can easily process transactions as and when required. The most common services offered by banks in India are as follow:

Bank accounts: It is the most common service of the banking sector. An individual can open a bank account which can be either savings, current or term deposits.

Loans: You can approach all banks for different kinds of loans. It can be a home loan, car loan, personal loan, loan against shares and educational loans.

Money Transfer: Bnaks can transfer money from one corner of the globe to the other by issuing demand drafts, money orders or cheques.

Credit and debit cards: Most banks offer credit cards to their customers which can be used to purchase products and services,or borrow money.

Lockers: Most banks have safe deposit lockers which can be used by the customers for storing valuables, like important documents or jewellery.

BANKING SERVICE FOR NRIS:

Non Resident Indians or NRIs can open accounts in almost all Indian banks. The three types of accounts that NRIs can open are:
o

Non-Resident (Ordinary) Account - NRO A/c Non-Resident (External) Rupee Account - NRE A/c Non-Resident (Foreign Currency) Account - FCNR A/c

PROJECT REPORT
ON

BANKING SYSTEM
SUBMITTED TO :MR. RAJU SIR

SUBMITTED BY :ABHISHEK GOYAL (15130) BBA II SEM SECTION-C

BABA FARID COLLEGE OF MANAGEMENT & TECHNOLOGY

DEON (BATHINDA)

ACKNOWLEDGEMENT
There is always a sense of gratitude which one expresses to others for the help and timely service they render during all phases of life. I too would like to do it as I really wish to express my gratitude towards all those who have been helpful to me during my project Today, after completing my project. I feel a lot more revealed but I still remember the time spent. I would never have had completed it if my teacher MR. Raju had not helped me. I am deeply indebted to him without his able and expert guidance, keen interest and constant encouragement my project would not have been successful. I am grateful to my family who stood by me in all phases of my life. Especially thanks to my father who encouraged me to complete my project.

Signature

CERIFICATE

This is to certify that the thesis/dissertation entitled, BANKING SYSTEM submitted for the degree of B.B.A. from the Punjabi University, Patiala is a bonafide research work carried out by ABHISHEK GOYAL under my

supervision and that no part of this Report has been submitted for any other degree. The assistance and help received during the course of investigation have been fully acknowledged.

Teachers Signature

TABLE OF CONTENTS
BANK ACCOUNTS
PRINTING MICR INFORMATION

CHECKS
DEPOSITS ADJUSTMENTS

CHECK REGISTER CHECK RECONCILIATION RECURRING PAYMENTS BATCH POSTING

TYPES OF BANKING
CENTRAL BANK PUBLIC SECTOR BANKS PRIVATE SECTOR BANKS
CO-OPERATIVE SECTOR

DEVELOPMENT BANKING SERVICE FOR NRIS