[ronnierules]

e) Customer Services: -

The following customer services are offered through the system:

i) Cash withdrawal (up to a specified limit)
ii) Cheque/Cash deposit (the receipt being only for the deposit of the envelope containing cash but not for the amount therein)
iii) Enquiry about balances
iv) Printing of statement of accounts
v) Request for cheque book and standing instructions.
vi) Transfer of funds
vii) PIN change

f) Telebanking: -

• From the conventional banking, where the services were provided manually across the table, it has come to a stage where the customer is not required to visit the bank enquiry of balance in the account, sending a remittance, to get a statement of account, etc.

• The concept has become so popular that in USA customers do not visit the bank for 97% of their transactions and these are done from either customer’s residence or office using a telephone or a home PC.

• In telebanking the customer is required to open the account with the bank initially by visiting the bank.

• Telebanking services are, generally, provided by the bank over the telephone on a special number.

• The number at the bank is connected to a terminal in the bank, which is either handled manually or is automated by connecting the same to the computer network.

• Where the system is automated, two types of technology are used.

g) Home Banking: -

• Under home banking the customer is served at his residence and there is no need for the customer to visit the bank’s premises for a number of routine transactions.

• If the customer needs some information the same can be got by contacting the bank over the phone as described in the telebanking.

• If the customer wants to put through transaction and wishes to see his account or to get a statement of his account, he may have to use a PC.

• This type of facility is available with a town, city or metropolitan area.

• Under such a situation the customer should have a:
 PC
 Modem
 Telephone line
 A compatible software for the home PC

• The home banking service can be broadly classified under two groups, one without using the information technology and another using information technology.
• When customer contacts the bank o the phone no specific technology is involved and the service of telebanking is provided to him.

h) Electronic Fund Transfer (EFT): -

• In India the fund transfers are basically done through Mail Transfer, Draft or Telegraphic Transfer.

• In case of Telegraphic Transfer (TT) again the Department of Telecommunication was the sole provider of Telephone, Telex and Telegram facilities.

• With the process of liberalization private operators have started providing alternative voice communication channels through mobile phones and vast communication as an alternative channels for data communication.

• It was normal for any TT to be credited to the beneficiary’s account after delay of 2 to 4 days

• The different forms of EFT prevalent in the use are:
 EFT through Electronic Data Interchange
 BANKNET
 RBINET
 IDRBT VSAT Network
 EFT from Point of Sales
 Electronic Cash
 SWIFT- Global System for Funds Transfer
 Electronic Clearing Settlement
i) Plastic Cards as Media for Payment: -

There are four types of plastic cards being used as media for making payments. These are:
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card

1. Credit Cards: -

The credit card enables the cardholders to:
 Purchase any item like clothes, jewellery, railway/air tickets, etc.
 Pay bills for dining in a restaurant or boarding and lodging in a hotel
 Avail of any service like car rental, etc.

2. Debit Cards: -

A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank.

Thus it is like an electronic purse, which can be read and debited by the required amount.

It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards.


3. Smart Cards: -

Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc.

In India, a smart card, suiting Indian banking environment, is being developed and tested at IIT, Mumbai, in collaboration with the RBI and SBI. The card is being used as an experimental tool for promoting cashless society in and around the IIT Campus. The latest smart card being developed will combine all the features of electronic purses, credit cards and ATM cards.

4. ATM Cards: -

The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.