Products & Operations of Banks

Introduction

Banks have moved beyond simple deposits and loans. They now offer a suite of technological products for convenience ("Anywhere Banking").

1. Plastic Money

1. Debit Card: "Pay Now". Money is deducted directly from bank account.
2. Credit Card: "Pay Later". Bank pays the merchant; you pay the bank later (with interest if delayed).

2. Electronic Fund Transfer (EFT)

A. NEFT (National Electronic Funds Transfer)

• Timing: 24/7.
• Limit: No minimum or maximum.
• Speed: Batches (every 30 mins). Not instantaneous.

B. RTGS (Real Time Gross Settlement)

• Timing: 24/7.
• Limit: Minimum ₹2 Lakhs.
• Speed: Instant (Real-time). Used for large value transactions.

C. IMPS (Immediate Payment Service)

• Timing: 24/7.
• Speed: Instant via Mobile/Net Banking.

3. Other Operations

1. ATM (Automated Teller Machine): Cash withdrawal, Balance enquiry, Mini Statement.
2. Core Banking Solution (CBS): Networking of branches. A customer of a branch is a customer of the bank.
3. Cheque Truncation System (CTS): Image-based clearing of cheques (No physical movement of cheques).

Summary

• Cards: Debit (Own money) vs Credit (Bank's money).
• Transfers: NEFT (Batches), RTGS (Big value, Instant), IMPS (Instant).
• Tech: CBS connects all branches.

Quiz Time! 🎯

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