INNOCENT HEARTS SCHOOL

CH : 4 Business services

Submitted To : Mrs. Sonika Kapoor

Submitted By : Palak (717) Paavan Bedi (719)

Yashvi Jain (718) Akshit Luthra (720)
 Intangible : services are intangible i.e
they are experiential in nature

Inconsistency : since there is no

standard tangible product , services

Nature of
have to be performed exclusively each
time

Inseperabilty : service is simultaneous

services
activity of production and consumption.
This makes the consumption and
production inseparable

Inventory : services have little or no

tangible components, and therefore ,
cannot be stored for a future use

involvement : one of the most important

feature of services is the involvement of
customer in the service delivery process
 Nature of services
Types of Services
Table Of Functions of commercial Banks
Contents E-Banking
Insurance
Types of insurance
Types of Business services
 BASIS SERVICES GOODS

Nature An activity or process. e.g.,

A physical object. e.g., video cassette of
watching a movie in a cinema hall
movie

DIFFERENCE
Type
Heterogeneous Homogenous

BETWEEN Intangibility
Intangible e.g., doctor treatment
Tangible e.g., medicine

SERVICES AND
GOODS Inconsistency
Different customers having
different demands e.g., mobile
Different customers getting
standardised demands fulfilled.
services
e.g., mobile phones

Simultaneous production and

Separation of production and
Inseparability consumption. e.g., eating ice-cream
consumption. e.g., purchasing ice cream
in a restaurant
from a store
 Cannot be kept in stock.
Inventory
e.g., experience of a train Can be kept in stock. e.g.,
journey train journey ticket

Participation of involvement at the time

Involvement customers at the of delivery not possible
selfsorse line dast ya e.g. manufacturing of a
joint vehicle
 Business Services: Business services are those services
which are used by business enterprises for the conduct of
their activities. For example, banking, insurance,
transportation, warehousing and communication services.G

TYPES OF Personal Services: Personal services are those services which are
experienced differently by different customers. These services

SERVICES
cannot be consistent in nature.
For example, tourism, recreational services, restaurants.

Social Services: Social services are those services that are generally
provided voluntarily in pursuit o certain social goals. These social
goals may be to improve the standard o living for weaker sections of
society to provide educational services to thei childrenBack
etcto Agenda Page
BANKING TYPES OF
Commercial banks are an
BANKS
important institution of the
economy for providing
institutional credit to its COMMERCIAL BANKS
customers.

COOPERATIVE BANKS
A bank stimulates
economic activity in the SPECIALISED BANKS
market by dealing in
money.
CENTRAL BANK
 Commercial banks are institutions dealing in money.
COMMERCIAL BANKS There are two types of commercial banks, public sector and private sector banks.
Public sectors banks are those in which the government has a major stake and
they usually need to emphasise on social objectives than on profitability.Private
sector banks are owned, managed and controlled by private promoters and they
are free to operate as per market forces.

COOPERATIVE BANKS Cooperative Banks are governed by the

provisions of State Cooperative Societies Act
and meant essentially for providing cheap
credit to their members.

SPECIALISED BANKS These banks provide financial aid to

industries, heavy turnkey projects
and foreign trade.

The Central bank of any country supervises,

CENTRAL BANKS
controls and regulates the activities of all the
commercial banks of that country.
 Functions of
commercial banks
Acceptance of Deposits are the basis of the loan operations since banks
are both borrowers and lenders of money. As borrowers
deposits
they pay interest and as lenders they grant loans and get
interest. These deposits are generally taken through
current account, savings account and fixed deposits.

Types of bank accounts

.current account
.savings account
.fixed deposit account
 Functions of
commercial banks
Second major activity of commercial banks is to provide
Lending of funds loans and advances out of the money received through
deposits. These advances can be made in the form of
overdrafts, cash credits, discounting trade bills, term loans,
consumer credits and other miscellaneous advances.

Banks render a very important service to their customers by

Cheque facility collecting their cheques drawn on other banks.It is the most
convenient and an inexpensive medium of exchange. There
are two types of cheques mainly (a) bearer cheques, which
are encashable immediately at bank counters and (b) crossed
cheques which are to be deposited only in the payees
account
 Functions of
commerci banks

Remittance of funds Another salient function of commercial banks is of providing the facility
of fund transfer from one place to another, on accountof the
interconnectivity of branches.
The transfer of funds is administered by using bank drafts, pay orders or
1t mail transfers, on nominal commission n charges.

Allied services In addition to above functions, banks also provide alliedservices such as
bill payments, locker facilities, underwriting services.They also perform
other services like buying and selling of shares and debentures on
instructions and other personal services like payment of insurance
premium, collection of dividend etc.
E-BANKING
. Internet bankingmeans any user with a PC and abrowser can get
connected to thebanks website to perform any of the virtual

. banking functions and avail of any of the bank's services.

.
There is no human operator to respond to the needs of the customer.

e-banking is a service provided by many banks, that

allows, a customer to conduct banking transactions, such
as managing collection of savings, checking accounts
applying for loans or paying bills over the internet using a
personal computer, mobile telephone etc
E-BANKING

. The range of services offered by e-banking are

AutomatedTeller Machines (ATM)
Point of Sales (PoS)
Electronic Data Interchange(EDI)
Credit Cards Electronic
Digital cash
Electronic bank transfer (EFT).
BENIFITS OF E-BANKING

There are various benefits of e-banking provided to customers which are:

(i) E-banking facilitates digital payments and promotes transparency in
financial statements.
(i) e-banking provides 24 hours, 365 days a year services to the customers
of the bank;
(iii) Customers can make some of the permitted transactions from office or
house or while travelling
(iv) It inculcates a sense of financial discipline by recording each and
every transaction;
(v) Greater customer satisfaction by offering unlimited access to the
bank, not limited by the walls of the branch and less risk and greater
security to the customer as they can avoid travelling with cash.
INSURANCE

Life is full of uncertainties The chances of occurrence of

an event causing losses are quite uncertain. Insurance
helps to minimize the financial impact of these
uncertainties.
Functions of Insurance

Certainty: Insurance tends to reduce the level of risks, and

the insured receives the payment for loss .The insurer
charges premium from insured.

Protection: Insurance cannot prevent a risk or event from

occurring, but it can compensate for losses incurred as a result of it
Risk sharing: On the happening of a risk event, the loss is
shared by all the persons exposed to it.

Assist in capital formation: The accumulated funds of the insurer

received by way of premium payments made by the insured are
invested in various income generating schemes.
Principles of Insurance

Utmost Good faith: Insurance contracts require that both parties act with
the utmost good faith. This means that both parties must provide all
relevant information honestly and completely.

Insurable interest: The insured must have an insurable interest in the

subject matter of insurance
Principle of Indemnity: The indemnity concept ensures that an
insurance contract protects and compensates you in the event of
damage, loss, or injury.

Proximate cause: When more than one event causes an

accident or damage, the proximate cause principle comes
into play
Subrogation: It means that after claiming the insurance clain
the insurer will get rights of damaged property/vehicle of
insured.
Contribution: As per this principle it is the right of an insurer
who has paid claim under an insurance, to call upon other liable
insurers to contribute for the loss paymen
Mitigation: This principles states that it is the duty of the insured
to take reasonable steps to minimise the loss or damage to the
insured property.
 TYPES OF INSURANCES
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LIFE INSURANCE GENERAL INSURANCE

MARINE INSURANCE

FIRE INSURANCE

OTHER INSURANCE
 Types of Insurance
Life Insurance Policy :Life insurance is a type of insurance policy in which the insurance company
undertakes the task of insuring the life of the policyholder for a premium that is paid on a
daily/monthly/quarterly/yearly basis.
》 Types of Life Insurance Policy :
1) Whole Life Policy : As the name suggests, in this kind of policy the amount that is insured will only
be paid out to the person who is nominated and it is only payable on the death of the insured.

2) Endowment Life Policy : In this type of policy the insurer undertakes to pay a fixed sum to the
insured once the required number of years are completed or there is death of the insured.

3) Joint Life Policy : It is that type of policy where the life insurance is availed by two persons, the
premium for such a policy is paid either jointly or by each individual in the form of installments or a
lump sum amount
4) Annuity Policy : Under this policy, the sum assured or the policy money is paid
to the insured on a monthly/quarterly/half-yearly or annual payments. The
payments are made only after the insured attains a particular age as dictated by
the policy document.

5) Children's Endowment Policy : Children’s endowment policy is taken by any

individual who wants to make sure to meet the expenses necessary for children’s
education or for their marriage. Under this policy, the insurer will be paying a
certain sum of money to the children who have attained a certain age as
mentioned in the policy agreement.
Fire Insurance : Fire insurance is a type of general insurance policy where the
insurer helps in paying off for any damage that is caused to the insured by an
accidental fire till the specified period of time, as mentioned in the insurance policy.

Marine Insurance : Marine insurance is a contract between the insured and the
insurer. In marine insurance, the protection is provided against the perils of the sea.
The instances of dangers in sea can be collision of ship with rocks present in sea,
attacking of the ship by pirates, fire in ship.
Types of Marine Insurance :-
1) Ship or Hull Insurance : As the ship is exposed to many dangers at the sea, the
insurance covers for losses caused by damage to the ship.
2) Cargo Insurance: The ship carrying cargo is subjected to many risks which can
be theft of cargo, lost goods at port or during the voyage. Therefore, insuring the
cargo is essential to cover for such losses.
3) Freight Insurance: In the event of cargo not reaching the destination due to any
kind of loss or damage during transit, the shipping company does not get paid for
the freight charges. Freight insurance helps in reimbursing the loss of freight caused
due to such events.

Feel free to reach out!

DIFFERENCE
BETWEEN LIFE ,
FIRE AND MARINE
INSURANCE
TYPES of BUSINESS SERVICES

Communication Services Transportation

Postal Services Warehousing

Telecom Services Banking

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 Postal Services

This service is required by every business to send and receive letters , market reports , parcel etc. All
these services are provided by the post and telegraph offices scattered throughout the country
These services are broadly categorized into :
• Financial Facilities :- They provide banking facilities to the general public and mobilize their savings
through various schemes like Kisan Vikas Patra , Public Provident Fund etc.
• Mail Facilities :- The mail facilities offered by post services includes transmission of message through
postcards , envelopes etc.
Telecom Services
Telecom services are the backbone of every business activity . There have been far reaching
developments in the convergence of telecom , IT, consumer electronics and media industries
worldwide. Through the framework the government provide both universal services to all uncovered
areas and high - level services for meeting the needs of people
The various types of telecom services are :
1) Cellular Mobile Services :- These are all types of mobile telecom services including voice and non
voice messages , data service and PCO services utilising any type of network
2) Fixed Line Services :- These are all types of fixed services including voice and non voice messages
and data services to establish linkages for long distance traffic
3) Cable Services :- These are linkages and switched services within a licensed area of operation to
operate media services
4) VSAT Services :- Very Small Aperture Terminal is a satellite based communications service . It can
be used to provide innovative applications
5) DTH Services :- Direct to Home is again a satellite based media services provided by cellular
companies . The service provider of DTH services provides a bouquet of multiple channels
Transportation
It refers to physical movement of goods from one place to another .
Transportation comprise of freight services . The transportation
services is necessary to remove the place gap between the producer
and the consumer

Warehousing
Warehousing means holding and preservation of goods
from the time of their production of purchase and until
their use or sale . Today's warehouses have ceased to be a
merge storage service providers and have really become
logistical service