Class 9 & 10

Class 9 & 10

Retail Banking (Individual Banking) - Comparatively high transaction cost & lower risk than corporate banking (Banks hence take high risk in corporate & distribute in retail)

A person more than 182 outside India is considered as NRI

Liability segment / product

· Resident Segment

ü Demand Liabilities – Minors savings bank account

ü Time Liabilities – Education deposit, Piggy bank deposit

· Non-resident segment

ü Can hold currency in foreign denomination

ü Factors under consideration – Exchange Rate, Interest Rate, Duration of Deposit, Implication of Tax

Repatriability – With-drawl of funds at free will at any point in time

FCNR – Foreign currency non-residential deposit – Minimum 1 year to maximum of 3 years. One can maintain USD account though earning in SGD.

Now students are also considered / classified as non-residents to avail loans in foreign currency

Other banking products –

· Mutual Funds

· Insurance Sales

· Investment advice

ü Portfolio Management – Mandate given in favor of bank to transact on behalf of customer

· NRI Services

· Bill Payment Services

· Depository Services

ü Demat Account, Safe deposit vault

Why Exchange rate – For Price discovery & stability of prices

In commodities, only profit is traded (which normally pushes the prices up)

Retail Assets Group

· Product Team

ü Programs

ü Pricing

· Marketing Team

· Credit Risk Team

ü 5Cs

§ Character

§ Capacity

§ Capital

§ Collateral

§ Cash Flow

· Acquisition Team (Under-writer)

· Operation

· Collection

· RCU

ü Example – De-flagging of salary account