NEW GENERATION BANKS

PRESENTATION BY,
MAHESH M
S3 MBA
NO: 32
 INTRODUCTION

 What differentiate new generation bank from old generation

bank are the quality of services, the level of technological
advancement, strategy implementation and managing funds.

 They meet customer requirements by considering traditional

human values using modern technology.

 Private sector banks were nationalised at two stages during 1969

and 1980.
Cont…

 After 19 years as per the policy of liberalisation, privatisation and

globalisation during 1991 government of India permitted new
private sector banks in the country.

 HDFC was the first bank to get a license to open a bank branch
however ICICI opened its first branch in the country.
HISTORY OF NEW GENERATION BANKS

 In 1993 RBI issued guidelines for NGB.

 113 applications were received and out of that ten were

selected.

 In that Times bank and Centurion merged with HDFC and Global
Trust bank merged with oriental bank of commerce.

 In 2004 RBI allowed two other banks- Kotak Mahindra and Yes
bank to join.
CONSIDERING TREND

 Desire to improve lifestyle.

 Growing consumerism.

 Higher adaptability to technology.

 Increasing literacy levels.

 Growing disposable incomes.

TECHNOLOGICAL DEVELOPMENTS

INTERNET BANKING
 Internet banking enables a customer to do banking transactions
through the bank’s website on the Internet.

 It is a system of accessing accounts and general information on

bank products and services through a computer while sitting in its
office or home, called virtual banking.

 All transactions are encrypted; using sophisticated multilayered

security architecture, including firewalls and filters.
 MOBILE BANKING

 Mobile banking facility is an extension of internet banking.

 With recent developments in handset designs and mobile

software, this is a trend which has already caught focus of
majority of the banks.

 These facilities are available even to those customers with only

credit card accounts with the bank.
 NEFT

 National Electronic Funds Transfer (NEFT) is a nation-wide

payment system facilitating one-to-one funds transfer.

 It is simple, safe, fastest and cost effective method of fund

transfer.

 To use this facility they should furnish IFS code of the beneficiary
also branch name and full account name of the beneficiary.
 AUTOMATED TELLER MACHINE (ATM)

 ATM is an electronic machine, which is operated by the customer

himself to make deposits, withdrawals and other financial
transactions.

 ATM facility is available to the customer 24 hours a day.

 The customer is issued an ATM card which bears the customer’s
name. This card is magnetically coded and can be read by this
machine.

 Each cardholder is provided with a secret personal identification

number (PIN).
 MONEYGRAM

 Moneygram is a new internet based remittance product.

 It is a cashless money transfer.

 These facilities are available for NRIs to remit money to India.

 ELECTRONIC CLEARING SERVICE

 ECS is an electronic mode of funds transfer from one bank

account to another.

 It can be used by institutions for making payments such as

distribution of dividend interest, salary, pension, among others.

 It can also be used to pay bills and other charges such as

telephone, electricity, water.
 CHIP CARD

 The customer of the bank is provided with a special type of credit

card which bears customer’s name, code etc.

 The credit amount of the customer account is written on the card

with magnetic methods.

 When the customer uses this card, the credit amount written on
the card starts decreasing.

 After use of number of times, at one stage, the balance

becomes nil on the card.
 PHONE BANKING

 Customers can now dial up the bank’s designed telephone

number and he by dialing his ID number will be able to get
connectivity to bank’s designated computer.

 The software provided in the machine interactive with the

computer asking him to dial the code number of service
required.

 By using Automatic voice recorder (AVR) for simple queries and

manned phone terminals for complicated queries.
 ANY WHERE BANKING

 With expansion of technology, it is now possible to obtain

financial details from the bank from remote locations.

 Automated Teller Machines are playing an important role.

 Withdrawals from other stations have been possible due to inter-

station connectivity of ATM’s.
 KIOSK BANKING

 The Kiosk Banking is the initiative taken by the RBI for those living
in villages or other remote areas who are deprived of banking
services due to the non-availability of a bank branch.

 In such arrangement, the person is not required to go the bank to

avail the banking services.

 The Kiosks are the small internet-enabled booths established in

the villages where the customers can come and avail the basic
banking services.