UNIT-5

Bank Customer
• A customer is someone who has an account
with a bank or who is in such a relationship with
the bank that the relationship of a banker
and customer exists…
• The legal position implies that opening an
account is the crucial element in establishing
the banker-customer relationship
 Types of Bank customer
• When an account is opened in individual name,
it is called as individual account. For example-
an account opened in the name of “A”
• When an account is opened in joint names, the
account is called as joint account. Example –
the account in the name of “A” and “B”.
2. Clubs/Associations/Charitable
Institutions/Trusts:
• Clubs are bodies where like minded people join
together for some specific purpose. Example – Youth
club, Ladies club, Children’s club etc.,
• Clubs are managed by authorized persons namely;
the president, secretary and treasurer. Such persons
are elected by the members of the club through a
resolution.
• 3. Hindu Undivided family:

• Hindu Undivided family is one where more than

one family exist.

• For example in a joint hindu family, there can

be twenty family members including children

4. Proprietorship firms:
• When business is done by one single individual
it is called as a proprietorship concern

05. Partnership firms:

• Partnership firm is one where more than one
individual join together for a common business
purpose
• The do business for the purpose of earning a
profit
• Companies:

• Companies are legal bodies.

• They exist by means of collective efforts of

different individuals called as shareholders.

 Bank Customer Relationship
• https://www.youtube.com/watch?v=wzo7KhS-
7ac

• VIDEO KYC
• https://www.youtube.com/watch?v=YZu7HKn-
xMI
• Customer service
representatives who work
for banks answer
customer questions about
basic banking services,
such as account balances
and interest rates and
fees. They also help
customers protect their
accounts
• Banks focus on customer profiles and offer

differentiated deposit and credit products to

various categories of customers depending on

their income category, age group and

background.
• For example, banks may segment various

categories of customers to offer targeted

products, such as Private Banking for high net

worth individuals, Defence Banking Services for

defence personnel, and Special Savings

Accounts for trusts.

• Banks use multiple channels to target specific
segments of population. Banks deliver their
products and services through a variety of
channels, ranging from traditional bank
branches, extension counters and satellite
offices, to ATMs, call centres and the Internet
• Some private banks also appoint direct
marketing agents or associates,

• who deliver retail credit products.

• These agents help banks achieve deeper

penetration by offering doorstep service to the
customer
• To ensure that their customers get 'one-stop solution',
a key component of banks' customer strategy is to
offer an expanded set of products and services.
• Through their distribution network, banks may offer
Government of India savings bonds, insurance
policies, a variety of mutual fund products, and
distribute public offerings of equity shares by Indian
companies
• As a depository participant of the National
Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited
(CDSL),
• a bank may offer depository share accounts to
settle securities transactions in a
dematerialized mode and so on.
Bank Customer Relationship
• Services to different Customer Groups
• Developing and properly categorising a
customer data base forms part of the core
strategy of a bank.
• A typical bank with a widespread network of
branches aims at serving the following broad
customer groups.
 Types of bank customer

• Retail customers;

• Corporate customers;

• International customers;

• Rural customers.
• A bank formulates its overall customer strategy
to increase profitable business keeping in mind
its strengths and weaknesses.
• The key strategy components and trends in
each of these customer groups are briefly
discussed below.
 Retail Lending Activities

• Banks offer a range of retail products, including

home loans, automobile loans, commercial
vehicle loans, two wheeler loans, personal
loans, credit cards, loans against time deposits
and loans against shares
• https://www.youtube.com/watch?
v=EEedF5ob3L8
• Banks also fund dealers who sell automobiles,
two wheelers, consumer durables and
commercial vehicles. \
• A few banks have set up home finance
subsidiaries in order to concentrate on this
business in a more focused manner.
• Personal loans are unsecured loans provided to
customers who use these funds for various
purposes such as higher education, medical
expenses, social events and holidays.
• Personal loans include micro-banking loans,
which are relatively small value loans to lower
income customers in urban and rural areas.
• Lending to small and medium enterprises
• strategy with regard to small and medium
enterprises with their strategy for retail products
and services.
• retail focus includes meeting the working capital
requirements, servicing deposit accounts and
• Providing other banking products and services
required by small and medium enterprises
 CORPORATE BANKING
• Asset and Cash Flow Management,
• Investments,
• Securities and Equities Managements,
• FOREX,
• Loan Operations,
• Mutual Funds Management,
• Deposits and Liquidity Management,
• Risk Management,
• Advisory Services

Banks offer financial advice for an assortment

of corporate and financial activities. That
includes:

• Mergers and acquisitions

• Asset management
• Taxation issues, such as using tax havens.
 Project Financing
Banks offer loans for large-scale projects,
particularly infrastructure projects.

• Those loans are repaid based on the revenue

the project winds up generating.

• If the project is deemed particularly risky, a

group of banks can agree to lend the client
portions of the required loan.
• Insurance

Banks offer insurance to their large-scale

clients.
• The insurance can cover corporate activities, as
well as staff and management.
 Rural Banking
• Rural Bank can be defined as rural financial institution/
cooperative/ community bank or deposit taking MFI
that provides customised financial services
to rural communities.
Role of RBI towards RRB
 KYC
• https://www.youtube.com/watch?v=YZu7H
Kn-xMI&feature=youtu.be

• https://www.youtube.com/watch?
v=vLeC6khWzpM
 Banking Ombudsman
• https://www.youtube.com/watch?v=wKOS
L5y6jgI
• https://www.youtube.com/watch?
v=6JHtRlSbwKg