Sign Nevada Banking Promissory Note Template Mobile

Industry sign banking nevada promissory note template mobile

hello everyone i am dr manoj kumar nv working as a society professor in the department of management sciences maharaja instead of technology mysore today we are focusing on the second unit uh the subject title banking and financial services subject over 18 mba fm 301 so today we are moving to the second chapter the the second chapter mainly focusing on commercial banking so in this chapter we are going to learn about how the structure of commercial bank and what are all the function of commercial banker the functions are classified into two types primary function and secondary functions and also we are discussing about the role of commercial banks in socioeconomic development and whatever the services rendered by the commercial bankers and what are the advanced technology which is using with respect to the concept of universal banking home banking atms internet banking mobile banking core banking solutions through debit cards credit cards smart cards and electronic payment system micr and check truncation system ecs eft left and rtgs so this chapter mainly focusing on the complete theoretical where we are going to be get to know what kind of the services are rendering by the commercial bankers and or as a entrepreneurs we can able to know how the commercial banks are going to be helpful to the business rank day-to-day operations for the business units so therefore uh when we look into the commercial bank so commercial banking a commercial bank is a type of financial institution that accept the deposit that accept the deposit and offer lending account services so as we know that if any banker they have a primary function where they are going to accept the deposit and they are providing a loans so i make various types of loans and offer offer basic financial products like certificate of deposits and commercial paper and savings accounts through individuals and small businesses in fact the commercial banks as their name suggests assets they are acts profit act as a profit seeking industries that is uh they do banking business to earn the profit so therefore this is not like a non-profit organization they do profits a commercial banker and there is a specific kind primary objective towards earning better profits then coming to the structure of commercial banks where the structure which is noticed here where the structure is classified the structure is classified into majorly two heads uh one is scheduled bank and another one is non-scheduled banks so in the schedule banks in the schedule banks we are categorized back into again three types one is uh public bank private bank and foreign banks so the public bank the public bank with the bank which is controlled and monitored by the central government or any government are regulatory bodies that we are called as public banks so where the stake is controlled by the government are uh the particular authority where the public bank where we can able to give example where sbi and their subsidiary like earlier we can notice that we have a state bank of travancore trace state bank of india so like that we have a different subsidiary under sbi also we have other nationalized banks so nationalized bank any bank which is nationalized under the reserve bank of india and when they are fulfilled the nursing committee recommendation then they are considered to be a nationalized bank so in that we can give example of canada bank syndicate bank those banks can able to give an example for national rights banks then coming to the private banks private banks are completely uh in the hands of private people where in earlier 1949 1990 prior to 1991 it is very restricted to enter into the banking sector as a private player but in 1991 onwards there is a huge competition which is um raised by the uh private bankers and coming to the foreign banks where we have a dost bank and uh western union banks these are the banks which we needed to transfer the currency one country currency to another country currency and they are going to access those currencies into inrr they are convert the in are into other currencies so therefore uh the scheduled bank those are refers to refers to which have been included in the second schedule of reserve bank of india act 1934 those are considered to be a scheduled banks these schedule banks again it is clarified into three types first one is public and the private and then it will be followed by foreign banks these banks so when we take a consideration of public banks these banks are owned and controlled by the government the main objective of these banks is to provide the services to the society not to make profits not to make profit to serve the society and to make stability and increasing the interest of savings by the investors so stay we can take example of state bank of india bank of india punjab national bank canada bank and corporation banks these banks are we can able to state as examples for uh public banks so public banks we can clarify it into as i said fbi and other subsidiaries as well as we also can classified into other nationalized banks then coming to the second one is private banks so private banks these banks are owned and controlled by the private business people corporates private carpets their main objective is to earn the profit like you take example of uh in 2007 the ica they are instead of they are concentrating as a financial institution they are turning to the icici bank hdfc bank idbi bank these are the banks they are holding in the private people and they are in the profit mode so they are doing the banking services and providing the financial tools made on earning profits is the primary objective of private sector banks then coming to the foreign coming to the foreign banks these banks are owned and controlled by the foreign players and their number has grown rapidly since 1991 because in 1991 as we know that when uh there is a nurseman committee which is taking place as well as the government coming with the industrialization through industrial policy in 1991 so that will make that uh the huge impact in the global economy and it will be helpful to india to come out with lpg concept where liberalization globalization and privatization that mechanism which is makes the country into getting more fdi and investing into other countries and channelizing their business through expansion the all these things which is happened from 1991 onwards uh then uh these banks are owned and controlled by the foreign people and their number of numbers are rapidly grown from 1991 when the process of economic liberalization had staggered in india bank of america american express banks standard charter banks are few of the examples for examples for uh foreign banks then coming to then coming to na non non-scheduled banks so non-scheduled banks are referred to those banks which are not included in the second second schedule of reserve bank of india 1934 all the banks which is considered to be a non-scheduled banks then coming to uh focusing on the functions of commercial banker so where the functions are clarified into majorly two types first one is primary function and then it we call it as secondary function the primary functions are as follows like the first primary function is to acceptance of deposits so any commercial banker accept deposit from the people from the business and other entities in the form of so there we can notice that where we have two types of deposits saving deposits and fixed deposits so where in the saving deposits whenever we do save then we can able to deposit into the particular bank where the percentage rate of interest is comparatively lesser to the saving bank account so as an individual other individual account and small enterprises they can go for savings bank account then uh saving deposit they can do then the second one is time deposit time deposit means we can call it as even the fixed deposit why we use the term as uh time deposit here we have a short term medium and long term deposit based on the term period which we are going to be decide that whether it is us short-term long-term or medium term so where the name only indicates the time deposits the banks accept the deposits for a fixed time of period for a fixed time of period maybe one year or maybe five years or 10 years or 20 years so doubling period those will be applicable how you are going to increase the term that will going to maximize the amount of gain which you are going to be getting for your investment so the rate of return will be higher when the duration will be higher then coming to the uh next one is that is current deposit so current deposit uh i think all of you know that any business car people they are going to use the current accounts where they need a short term whenever they are lacking with the short term requirements they do benefit they get the benefit of current deposits they are going to climb more than uh the whatever the cash they are required you know whatever the short term obligations they had to meet the complication they are going to be prefer the current deposits so these accounts are normally have a no interest are very less percentage of interest for current deposits where these accounts do not offer any interest as i said it is not provide any interest for your deposit because every day you have a transaction so therefore there is no amount which will be hold for the long term period so therefore we can consider that where the current deposit does not include any interest and further most correct most of the current accounts offer od or draft up to a pre-specified limit so means they given a stipulated time period so whatever the amount you climbed in the initial time after the particular stipulated period you must need to be payback otherwise they are going to be charged very high rate of interest on whatever the amount you are uh drawn in the particular account and therefore undertakes this obligation of paying all checks against to the deposit subject to the availability of sufficient funds in the account then coming to uh yeah with respect to acceptance of deposit in the time deposit we are classified in the nature we can classified into uh fixed deposit and uh recurring deposit so fixed deposit means what the time is fixed and what it is a lump sum amount investment so today are investing and after one year after 10 years you are going to get the uh principal plus interest for the particular deposit but the second uh nature of the time deposit is to recurring deposit so recurring deposit means watch it is like a installment class so when you do the installment the installment amount will be a same the premium amount will be same so every year or every month or every semi-annually you are going to pay the deposit for a stipulated period for 5 years or for 10 years or 15 years and after the 15 years you are going to get the lump sum of cash so therefore that is also helpful to the people who are in the uh employers who are who are working as employees or who are government employees or who are earning every day are earning per month as a salaried employees those can able to prefer the recurring deposits then coming to our second primary function the second primary function is lending of loans this is the most important functions of commercial banker another it is another important activity is lending funds to customers in the form of loans and advances cash credit and your od facilities and also discounting of bills so here we can notice here in the form of how they do lending so we know there are the banker will facilitate different types of loans it might be short-term loan medium term loan long-term loan it and uh mortgage loan or securitized deposit loans so like uh they are going to decide about the type of loan with respect to whatever the assets are pledged or mortgage or the uh if the particular person who apply for loan what is the eligibility criteria for him to provide the loan once the banker is analyzed then they are going to facilitate the different types of and different purposeful loan for the particular customer so therefore the first one under the lending of loan in terms of different types of loan made on the term short term medium term and long term then coming to advances so advances as i said sometimes the banker prior they are going to commit with the particular business the banker give a acceptance and advance payments so therefore advances also one of the way that the banker provide lending to the customer so therefore they are going to be collect that once the transaction is completed then cash credit so cash credit it is a short term instrument so whenever they need a immediate cash then they give a cash credit and od facilities so body facilities or draft facilities where uh overdraft means whenever they do access with the current account they are going to be borrow whatever the balance is there more than the balance they are going to be drawn from the current account so therefore well od account other business people are the corporates they must need to be very careful whatever the particular duration which is given to make a repayment they must need to do within the particular date otherwise the banker is going to be charged very high rate of interest on od accounts so therefore uh the everyday checkout check up whatever the transaction which is happen and how much you are borrowed from the od account and what are on the last day were there to make a client you must need to be known to make a fulfill with respect to od accounts then also one of the function of the primary function of the banker is to discounting of bills so you may have the term bills of exchange so the bills of exchange which is a promissory note which is uh promised by the debtors to the creditors so here the creditor is a bank or or the person who given a loan and the decade is the person who taken the loan from the particular person so therefore obviously the debtor always used to give a bills of exchange that is promised to pay a certain amount for the future date but as a credit card if i need immediately the if i need the cash immediately but whatever the data we given a promissory note in that dimension after three months but i need the particular amount today itself then what i can do is i can produce my bills of exchange to the banker to discounting my bill what the banker has to do in that is uh he has to collect the bill bills of exchange and whatever just assume that my data is pay a bills of exchange which you have a worth of thousand rupees and he's promised to pay after three months then i submit the same check to the banker today and i said to discount the particular bill so what the banker will do is banker is going to be collect the commission r whatever the processing charges which is incurred we kept we make that whatever the east charges we are going to be remixed from that and the remaining value 95 or 90 rupees is going to be transferred to my account are you going to pay the cash to us so therefore whenever we need a immediate cash urgency then also we can make use of whatever the cheques we are received we can submit to the banker and we collect the cash and the banker is going to be get the responsibility towards collecting the cash from the big cars so therefore all these facilities which is most important for a commercial bankers to focusing on that so loans i are advances that the bank extends to his customers with or without security for a specified time so sometimes if you are the banker they ask for the proof they ask for the securities they ask for the property documents to produce the loan sometimes they may not and an agreed rate of interest so therefore the rate is specified so whatever the rate they specify the customer must need to be bear the interest for whatever the amount of loan he is getting from the banker further the bank credits the bank reads the loan amount to amount in the customer account while he withdraws as per its needs so therefore uh there is no need that the whatever the sanction amount by the bank or entire amount you must need to be take it and need to be make use of it you can take whatever the need for your loan so you can take the part of whatever the amount which is required for meeting the particular need and under the cash credit facility the banker offered its customer to facility to borrow cash up to a certain limit against the security of goods so therefore whenever we pledge whenever we do give a securities at that time immediate cash is going to be given from the banker or and further an old draft is an arrangement that a banker offered to customers wherein uh the where in the temporary it's a temporary facility offered to wardrobe to overdraw from the current account without any security so therefore you can make use of the od facility whenever you need a uh immediate urgency towards make a current payments so the limit is a pre specified so therefore you have a restriction because you can't able to borrow more than whatever the limit which is prescribed because it is going to be decide once again based on your income level build on your earnings so additionally additionally bank also discount and your repurchase the bills so in both these cases the bank credits the amount of the bill in the customers after uh a customer's account after deducting the discounts and commissions so i already said they are going to be charged whatever the processing charges is there discount charges is that they are going to be remitted to them and the remaining amount only it is going to be deposited to the bankers to the customers account so this account is received from recovered from the details on the maturity of the instrument as i said bills of exchange have a maturity period within that maturity so at the maturity period the banker is going to be collect the cash from the debtors then we are moving to uh the secondary functions of commercial banks so the secondary function of the commercial banks are as follows the first one is the commercial banks acts as an agent so why we do call it as an agent so here we can look into the services which are provided by the banker as a agent okay so where we can notice that in the in this the first services which we can take is collecting bills so means uh as i said discounting of bills so therefore in the discounting of bills once other credit card i collected i produced the promissory note or bill of bills to the banker and collected the discounting amount discounted amount later on the banker is going to be meet the dictators and he is going to collect the cash from them so therefore whenever we need a mini currency we directly get the cash but the task of collecting the amount from the guitars it's it will be a responsibility of the bankers so therefore even though it will be reduce the risk because other other creditor if we go and approach to the debtors there will be a chance of bad its because we are not having much guarantee that each and everybody will going to give amount entire amount whatever we are given so therefore that responsibility will be reduced to the company by making a discount of bills then one more thing is draft so draft checks so sometimes the banker is going to be given a check assurance to the customer that even though the particular customer is not liable to pay then the banker is agreed to pay the responsibility so therefore they are playing as a agent then any cheque which you are going to produce even though it is bounce you can put the stitch you against to the particular part you are given a check to you whether they are insufficient balance or whether they are not have a access with the particular account if they give an outdated check and all we can able to produce you so therefore the banker perform as the agent here to fulfill the particular transactions i'm paying in insurance premium if you're given a standing restrictions instructions to the banker then whatever the policies you have it will be directly remitted to the banker because unless you are recall you are recall that you are going to pay the premium if you are failed to pay the premium sometimes the particular scheme may cancel so instead of that if you given a standing instruction to the banker obviously whatever the principles premium you have that will be remedied directly from your bank accounts and also in case of rent in case of any loan installment all these such payments you can able to do uh based on whatever the banking transaction in that only if you give a standing instructions then they are going to be do the particular transactions then uh working as a representative of a customer for purchasing or redeem the securities in the security stock exchange or security market where whenever we do the transaction we do investment in the shares we do investment in the security market then whenever we do purchasing and whenever we are going to pay whenever we sell purchase and all it will be directly transacted through the banks so therefore the each transaction is going to be encountered in the whatever the password countries and banking transaction they are going to be concentrated as a agent and acting as an executor or trustee of the estate of the of a customer so therefore as we know in case anything which is happen then the banker is taking a consideration to whom to transfer the amount whether to nominee or whether to the consent person whether it is a joint account all these jobs which are going to be fulfilled are take place by the bankers also and also they are also preparing the income tax returns climbing tax refunds etc so therefore through the bank account itself you can able to get to know what is the total income and what will be the possible payments which is going to be deduct from your climbing of income tax deductions that also the banker is going to be notified that whatever all the uh deduction you can climb whatever the total income which is generated all this information you can able to access through bank account then coming to the general utility services so the general utility services also rendered by the uh commercial bankers where we can they are going to issue the traveler check traveler check it is going to be one of the mode that you can able to use that for the traveling whenever you do travel outside the countries are within the limit of the judiciary restriction where you can able to make use of traveler checks so traveler check which will be helpful like instead of your carrying a cash you can able to carry your particular check traveling check so therefore you can make use of the particular check for traveling anywhere where they are going to be accept the traveler checks so whatever the amount of deposit you do you are can able to access the particular amount of check as a traveler checks then uh the next one is offer offering a locker facilities as we know that there is no guarantee there is no responsibility hold by the bankers but they are going to be provide the lockers to make safe make safe of whatever the jewelries are property bonds papers or land property papers you have you can kept kept it in the locker instead of you keep it in the home as unsafely you can able to put all those things in the bank locker then they are not going to provide any uh security for that so therefore it is just make you to keep safety of your documents through your whatever the locker facility which is rendered by the banker so it is like a safe custodial for your valuables then the last one is it is also concentrating on issuing gun debit cards and credit cards so today without those cards are without mobile banking services so nobody can do the any operation any transactions like you may know that even in the rural area where they if they ask for uh the barcode everybody they are going to be used the internet banking are they are used on mobile banking in terms of google pay and phone pay they are going to be used and earlier uh in recent time uh 10 years back it is a more prominence which is given for uh ishinga debit cards and credit cards but today as today's trends we are mainly depending on all mobile apps and whatever the application which is given from the banker as a app which we are going to make use of transferring the money and making the payment making the insurance are paying the insurance premium everything we are going to be accessed through mobile banking and internet banking so therefore uh today we are mainly concentrating on all these aspects of whatever the major functions of the commercial banker and how these functions are most important from the banker side and even how it is going to be fulfill the needs of the customers and also we are looking to how the structure of commercial banks and who are the major players in that and what will be the category of the commercial bankers and how they are going to be have a major task as a public banks as a private banks and commercial banks and how they do operations so that we are going to be discussed today so hope everybody you are understand uh how should be the structure of commercial banks and how they are going to be play a major role in the commercial banks or banking sector towards fulfill whatever the customer needs so therefore as a banker and as an investor you must need to be aware of all these services other individual functions of the commercial bankers and you should need to know why this structure is most important uh and why they given more importance for public sector and private sector and how the policies are become liberal towards make influence for getting more fdi to india through lpg concept so these are the major thing which you are going to be noticed and need to be understand well that how the emerging trend which is happened in india in with respect to the banking sector so as we know today the majority of the bankers are performing as a commercial bankers and they have even though it's in the coveted situation the banking sector is performing very well and even the banking and pharma except these two the other sectors are having huge losses but these two sectors are having a very good uh improvement and the announcement in the profitability so therefore there will be a more employment opportunities if you are thorough in all the basic conceptual things with respect to the banks and you must need to be advanced with respect to technological usage so if you know very well if you thorough in the technology surely there will be a huge amount of huge number of job creation which is going to be take place in a upcoming days so hope everybody you are understand thanks for listening thank you you