e-banking

Importance of e-banking

We will look at the importance of electronic banking for banks, individual customers, and businesses separately.

Banks

1. Lesser transaction costs – electronic transactions are the cheapest modes of transaction
2. A reduced margin for human error – since the information is relayed electronically, there is no room for human error
3. Lesser paperwork – digital records reduce paperwork and make the process easier to handle. Also, it is environment-friendly.
4. Reduced fixed costs – A lesser need for branches which translates into a lower fixed cost.
5. More loyal customers – since e-banking services are customer-friendly, banks experience higher loyalty from its customers.

Customers

1. Convenience – a customer can access his account and transact from anywhere 24x7x365.
2. Lower cost per transaction – since the customer does not have to visit the branch for every transaction, it saves him both time and money.
3. No geographical barriers – In traditional banking systems, geographical distances could hamper certain banking transactions. However, with e-banking, geographical barriers are reduced.

Businesses

1. Account reviews – Business owners and designated staff members can access the accounts quickly using an online banking interface. This allows them to review the account activity and also ensure the smooth functioning of the account.
2. Better productivity – Electronic banking improves productivity. It allows the automation of regular monthly payments and a host of other features to enhance the productivity of the business.
3. Lower costs – Usually, costs in banking relationships are based on the resources utilized. If a certain business requires more assistance with wire transfers, deposits, etc., then the bank charges it higher fees. With online banking, these expenses are minimized.
4. Lesser errors – Electronic banking helps reduce errors in regular banking transactions. Bad handwriting, mistaken information, etc. can cause errors which can prove costly. Also, easy review of the account activity enhances the accuracy of financial transactions.
5. Reduced fraud – Electronic banking provides a digital footprint for all employees who have the right to modify banking activities. Therefore, the business has better visibility into its transactions making it difficult for any fraudsters to play mischief.

  Learn the risks of E-banking here in detail. 

E-banking in India

In India, since 1997, when the ICICI Bank first offered internet banking services, today, most new-generation banks offer the same to their customers. In fact, all major banks provide e-banking services to their customers.

Popular services under e-banking in India

• ATMs (Automated Teller Machines)
• Telephone Banking
• Electronic Clearing Cards
• Smart Cards
• EFT (Electronic Funds Transfer) System
• ECS (Electronic Clearing Services)
• Mobile Banking
• Internet Banking
• Telebanking
• Door-step Banking

Further, under Internet banking, the following services are available in India:

1. Bill payment – Every bank has a tie-up with different utility companies, service providers, insurance companies, etc. across the country. The banks use these tie-ups to offer online payment of bills (electricity, telephone, mobile phone, etc.). Also, most banks charge a nominal one-time registration fee for this service. Further, the customer can create a standing instruction to pay recurring bills automatically every month.
2. Funds transfer – A customer can transfer funds from his account to another with the same bank or even a different bank, anywhere in India. He needs to log in to his account, specify the payee’s name, account number, his bank, and branch along with the transfer amount. The transfer is effected within a day or so.
3. Investing – Through electronic banking, a customer can open a fixed deposit with the bank online through funds transfer. Further, if a customer has a demat account and a linked bank account and trading account, he can buy or sell shares online too. Additionally, some banks allow customers to purchase and redeem mutual fund units from their online platforms as well.
4. Shopping – With an e-banking service, a customer can purchase goods or services online and also pay for them using his account. Shopping at his fingertips.

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Different Types of Bank Accounts in India

Different Types of Bank Accounts in India & their Features!

Read different Types of Bank Accounts in India & their Features here! As per our Banking Awareness Best Series, here is one more article through which you can increase your banking awareness. In India, Bank Accounts are mainly categorized into Demand Deposits (Savings Account and Current Account), Time Deposits (Fixed deposits and Recurring deposits) and Non-resident accounts. In this article, we will brief you about different types of bank accounts in India with their distinct features.

Types of Bank Accounts in India

There are mainly three types of Banking accounts in India:

1. Demand Deposits

2. Term Deposits

3. Non-Resident Deposits

Now, we will study one by one, starting from Demand Deposits.

1. Demand  Deposits

• In these types of accounts, money is payable on demand.
• It includes current accounts and savings accounts (CASA - Current Account and Savings Account)

(a) Savings account: A savings account is an interest-bearing account held at a bank.

• There are mainly three types of saving accounts in Indian banks:

         (i) Basic Savings Bank Deposit Accounts (BSBDA)

         (ii) Basic Saving Bank Deposit Accounts Small scheme

         (iii) Normal Saving Bank Account

(i) Basic Savings Bank Deposit Accounts (BSBDA)

• According to RBI guidelines in August 2012, all banks are required to convert the existing 'no-frills' accounts’ into 'Basic Savings Bank Deposit Accounts'.
  No Frills Account- These accounts were introduced by RBI in November 2005 to provide banking facilities to the poor section of society. These accounts had the facility of ‘nil’ or very low minimum balance.
• An individual can open only one BSBDA account in one bank.
• These accounts are normal banking accounts available to all customers.
• There are no restrictions on age and income criteria of the individual for opening BSBDA.
• Know Your Customer (KYC) norms are applicable to these accounts.
• Jan Dhan accounts under Pradhan Mantri Jan Dhan Yojana comes under this category.

(ii) Basic Saving Bank Deposit Accounts Small Scheme

• When a person doesn't possess any of the ‘official valid documents’, still he/she can open ‘small accounts’ with banks.
• Total deposit money by a person in such accounts should not exceed one lakh rupees in a year.
• Withdrawal money limit in this account is ten thousand rupees in a month.
• Any time maximum balance in the account should not exceed fifty thousand rupees.
• These accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an official valid document.
• Small Accounts can only be opened at the Core Banking Solution (CBS) linked branches.

(iii) Normal Saving Bank Account

• In this account, facilities and minimum balance vary from bank to bank.
• Generally, these accounts are held by individuals like the salaried person, student etc.

(b) Current Account: A current account is an interest-free account held at a bank.

• People engaged in business prefer these types of accounts.
• In this account, there is no restrictions on the number of transactions permitted per day.
• For providing these facilities, banks take charges from the customers.
• Banks also provide overdraft facility to the customers. Overdraft facility allows the company or businessman to withdraw more money than what they have in their accounts with a promise of repayment of money within a stipulated time frame.

2. Term Deposits

• In these types of accounts, money is deposited for a specific period.
• In this, the interest rate given by the bank is more than the saving account.
• Interest rate slightly higher for senior citizen (60+ years)
• It includes Recurring Deposit and Fixed Deposits. 

(a) Fixed Deposit 

• In this type of deposits, banks accept deposits varying from 7 days to a maximum of 10 years.
• Interest rate varies from bank to bank.
• Pre-withdrawal facility available with some penalties.

(b) Recurring Deposit

• In this type of accounts, banks accept a fixed amount from a customer in fixed installments in regular interval of time.
• Deposit period varies from six months to ten years.

3. Non-Resident Deposits

• These accounts are only held by non-resident Indians.
• Currently, there are three types of Non-Resident Deposits accounts in India.

(a) Foreign currency Non-Resident (Banks): FCNR (B)

• These accounts are only opened and maintained in the foreign currency.
• These accounts can be opened in the following currencies viz., US dollar, Pound Sterling, Euro, Japanese Yen, Canadian Dollar and Australian Dollar.
• Only term deposit is allowed.
• These accounts are non-taxable in India.
• In these accounts, the principal amount and the interest are fully repatriable.
  Repatriable- Defined as sending or bringing money back to the foreign country.

(b) Non-Resident External Rupee Account (NRE)

• These accounts are held in Indian rupee.
• Term deposits and saving deposits are allowed.
• These accounts are also non-taxable in India.
• In these accounts, the principal amount and the interest are fully repatriable.

(c) Non-Resident Ordinary Rupee Account (NRO)

• Anyone individual residing outside India is eligible for NRO Account.
• If Indian resident migrated abroad can shift his account to this category.
• Term deposits and saving deposits are allowed.
• These accounts are taxable in India.
• In these accounts, the principal amount is non-repatriable.
• Interest amount can be repatriable.

4. Other Accounts

(a) DEMAT Account

• DEMAT stands for Dematerialised Accounts.
• These accounts are used to transact shares in electronic format.

(b) Nostro Account

• These accounts are held by Indian Banks in foreign Banks in foreign currency.
• Example- Punjab National Bank has an account in Bank of America in dollars.
• (i) Loro Account
  (a) These accounts are held by a third party bank, other than both banks who are doing the transaction.
  (b) Example: If South Indian bank wants to do some transaction with Bank of America in dollars in the USA. but he doesn't have the account in with Bank of America. State Bank of India has an account with Bank of America in the USA in dollars. If State bank of India does the transaction in the bank of America in the USA on behalf of South Indian bank. In this case, for SBI this account is known as Nostro Account and for South Indian Bank it is known as Loro Account.

(c) Vostro Account

• These accounts are held by foreign banks in India in Indian Rupees.
• Example: Bank of America has an account in Punjab National Bank in Indian Rupees.

(d) Escrow Account

• It is the temporary pass through an account held by third parties during the transaction between two parties.

(e) GILT Account

• These accounts are maintained by investors with the Primary dealers for holding their Government securities and Treasury bills in the Demat form. 

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8 Main Features of Indian Agriculture

8 Main Features of Indian Agriculture – Explained!

(i) Source of livelihood:

Agriculture is the main occupation. It provides employment to nearly 61% persons of total population.

It contributes 25% to national income.

(ii) Dependence on monsoon:

Agriculture in India mainly depends on monsoon. If monsoon is good, the production will be more and if monsoon is less than average then the crops fail. Sometimes floods play havoc with our crops. As irrigation facilities are quite inadequate, the agriculture depends on monsoon.

(iii) Labour intensive cultivation:

ADVERTISEMENTS:

Due is increase in population the pressure on land holding increased. Land holdings get fragmentated and subdivided and become uneconomical. Machinery and equipment can not be used on such farms.

(iv) Under employment:

Due to inadequate irrigation facilities and uncertain rainfall, the production of agriculture is less, farmers find work a few months in the year. Their capacity of work cannot be properly utilised. In agriculture there is under employment as well as disguised unemployment.

(v) Small size of holdings:

Due to large scale sub-division and fragmentation of holdings, land holding size is quite small. Average size of land holding was 2.3 hectares in India while in Australia it was 1993 hectares and in USA it was 158 hectares.

(vi) Traditional methods of production:

In India methods of production of agriculture along with equipment are traditional. It is due is poverty and illiteracy of people. Traditional technology is the main cause of low production.

(vii) Low Agricultural production:

ADVERTISEMENTS:

Agricultural production is low in India. India produces 27 Qtls. wheat per hectare. France produces 71.2 Qtls per hectare and Britain 80 Qtls per hectare. Average annual productivity of an agricultural labourer is 162 dollars in India, 973 dollars in Norway and 2408 dollars in USA.

(viii) Dominance of food crops:

75% of the cultivated area is under food crops like Wheat, Rice and Bajra, while 25% of cultivated area is under commercial crops. This pattern is cause of backward agriculture.

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14 Fayol's principles of managenent

     Fayol's principles of managenent

Difference between Formal & Informal Organization

   Definition of Formal Organization

According to Chester Banard “an organization is formal when the activities are coordinated towards a common objective”. He found that the essence of formal organization is conscious common purpose and that formal organization comes into being when persons:

    Definition Of Informl Organisation

The informal organisation may be defined as “a network of personal and social relationships that arise spontaneously as people associate with one another in a work environment. It is composed of all the informal groupings of people within a formal organisation.”

Difference between Formal & Informal Organization

Basis of difference	Formal Organization	Informal Organization
Meaning	Formal Organization may be defined as such organization in which authority, responsibility and account-ability of each member are clearly defined.	On the other hand, informal organization may be defined as such organization in which authority, responsibility and account-ability of each member are not clearly defined.
Objectives	The purpose or objective of establishing formal organization is to achieve Pre-determined goals of an enterprise.	Where as, the objective of establishing informal organization is just to fulfill the psychological and social needs of its members.
Stability	Formal organization is generally more stable in comparison to informal organization, because it is established according to proper rules and regulations for achieving certain goals.	On the other hand, informal organization is not as stable as formal organization, because it is established, in the lack of proper rules and regulations.
Need	Formal organization is gene-rally more needful to every organization, in comparison to informal organization due to stability.	On the other hand, informal organization is not as essential to every organization as formal organization due to absence of proper suitability.
Size	Formal organization is generally too large in size, in comparison to informal organization.	On the other hand, informal organization is generally too small, in comparison to formal organization.
Establishment	Formal organization is established on the basis of proper rule and regulation, where authority, responsibility and accountability of each member are clearly defined.	On the other hand, informal organization is established spontaneously. It doesn't require any rule and regulation to emerge.
Use of Organization charts	Organization charts is needed to show formal organization.	There is no use of organization charts in informal organization.
Types of Communication	In formal organization generally written or formal communication takes place to express the orders, views and feedback etc.	On the other hand, in informal organization generally oral or informal communication takes place to express the orders, views and feedback etc.
Flow of authority	n formal organization gene-rally authority flow from top to bottom vertically over the subordinates and responsibility goes from bottom to top over superiors.	On the other hand, in informal organization everyone has equal rights and duties, so there is horizontal flow of authority in this organization.
Leader	In formal organization gene-rally managers are the leader of organization and so, each and every activity is done under their guidance.	On the other hand, in informal organization generally leader is elected by the members and so, each and every activity is done by members under his guidance.
Relationship	In formal organization each and every members has impersonal or formal relationship with each-other due to bound in rules.	On the other hand, in informal organization each and every member has informal or personal relationship with each-other due to equal rights.
Scope	The scope of formal organization is broader, in comparison to informal organization.	On the other hand, the scope of informal organization is narrow in comparison to formal organization.
No. of members	There is long list of members in this organization for achieving certain goals of organization.	On the other hand, in informal organization there is short list of members due to lack of certain goals.

                                                          

                                                    

Top 10 Leadership Qualities

Top 10 Leadership Qualities That Make Good Leaders

 The meaning of Leadership: Everybody defines leadership differently but I really like the way John C Maxwell defines leadership, “A leader is one who knows the way, goes the way, and shows the way.” 

. Honesty and Integrity

The 34th President of United States, Dwight.D.Eisenhower once said, “The supreme quality of leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office.” Honesty and integrity are two important ingredients which make a good leader. How can you expect your followers to be honest when you lack these qualities yourself? Leaders succeed when they stick to their values and core beliefs and without ethics, this will not be possible.

2. Confidence

To be an effective leader, you should be confident enough to ensure that other follow your commands. If you are unsure about your own decisions and qualities, then your subordinates will never follow you. As a leader, you have to be oozing with confidence, show some swagger and assertiveness to gain the respect of your subordinates. This does not mean that you should be overconfident, but you should at least reflect the degree of confidence required to ensure that your followers trust you as a leader.

3. Inspire Others

Probably the most difficult job for a leader is to persuade others to follow. It can only be possible if you inspire your followers by setting a good example. When the going gets tough, they look up to you and see how you react to the situation. If you handle it well, they will follow you. As a leader, should think positive and this positive approach should be visible through your actions. Stay calm under pressure and keep the motivation level up. As John Quincy Adams puts it, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” If you are successful in inspiring your subordinates, you can easily overcome any current and future challenge easily.

4. Commitment and Passion

Your teams look up to you and if you want them to give them their all, you will have to be passionate about it too. When your teammates see you getting your hands dirty, they will also give their best shot. It will also help you to gain the respect of your subordinates and infuse new energy in your team members, which helps them to perform better. If they feel that you are not fully committed or lacks passion, then it would be an uphill task for the leader to motivate your followers to achieve the goal.

5. Good Communicator

Until you clearly communicate your vision to your team and tell them the strategy to achieve the goal, it will be very difficult for you to get the results you want. Simply put, if you are unable to communicate your message effectively to your team, you can never be a good leader. A good communicator can be a good leader. Words have the power to motivate people and make them do the unthinkable. If you use them effectively, you can also achieve better results.

6. Decision-Making Capabilities

Apart from having a futuristic vision, a leader should have the ability to take the right decision at the right time. Decisions taken by leaders have a profound impact on masses. A leader should think long and hard before taking a decision but once the decision is taken, stand by it. Although, most leaders take decisions on their own, but it is highly recommended that you consult key stakeholders before taking a decision. After all, they are the ones who will benefit or suffer from your decisions.

7. Accountability

When it comes to accountability, you need to follow the approach highlighted by Arnold H Glasow when he said, “A good leader takes little more than his share of the blame and little less than his share of the credit.” Make sure that every one of your subordinates is accountable for what they are doing. If they do well, give them a pat on the back but if they struggle, make them realize their mistakes and work together to improve. Holding them accountable for their actions will create a sense of responsibility among your subordinates and they will go about the business more seriously.

8. Delegation and Empowerment

You cannot do everything, right. It is important for a leader to focus on key responsibilities while leaving the rest to others. By that, I mean empowering your followers and delegating tasks to them. If you continue to micromanage your subordinates, it will develop a lack of trust and more importantly, you will not be able to focus on important matters, as you should be. Delegate tasks to your subordinates and see how they perform. Provide them with all the resources and support they need to achieve the objective and give them a chance to bear the responsibility.

9. Creativity and Innovation

What separates a leader from a follower? Steve Jobs, the greatest visionary of our time answers this question this way, “Innovation distinguishes between a leader and a follower.” In order to get ahead in today’s fast-paced world, a leader must be creative and innovative at the same time. Creative thinking and constant innovation is what makes you and your team stand out from the crowd. Think out of the box to come up with unique ideas and turn those ideas and goals into reality.

10. Empathy

Last but certainly not the least, is empathy. Leaders should develop empathy with their followers. Unfortunately, most leaders follow a dictatorial style and neglect empathy altogether. Due to this, they fail to make a closer connection with their followers. Understanding the problems of your followers and feeling their pain is the first step to become an effective leader. Even that is not enough until you work hard and provide your followers with the suitable solution to their problems.

Conclusion

To become a good leader, you must have all these qualities but if you lack some of these qualities, then you might struggle to make the mark in the world of leadership. You will have to set a good example for others to follow. That is where your commitment,
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Elements of Communication Process

Communication Process

The communication process consists of several components. Let's take a look.

              

7 Major Elements of Communication Process

1) Sender:

The person who intends to convey the message with the intention of passing information and ideas to others is known as sender or communicator.

(2) Ideas:

This is the subject matter of the communication. This may be an opinion, attitude, feelings, views, orders, or suggestions.

(3) Encoding:

Since the subject matter of communication is theoretical and intangible, its further passing requires use of certain symbols such as words, actions or pictures etc. Conversion of subject matter into these symbols is the process of encoding.

(4) Communication Channel:

The person who is interested in communicating has to choose the channel for sending the required information, ideas etc. This information is transmitted to the receiver through certain channels which may be either formal or informal.

(5) Receiver:

Receiver is the person who receives the message or for whom the message is meant for. It is the receiver who tries to understand the message in the best possible manner in achieving the desired objectives.

(6) Decoding:                                                       The person who receives the message or symbol from the communicator tries to convert the same in such a way so that he may extract its meaning to his compl

(6) Decoding:                                                       The person who receives the message or symbol from the communicator tries to convert the same in such a way so that he may extract its meaning to his complete understanding.

(7) Feedback:

Feedback is the process of ensuring that the receiver has received the message and understood in the same sense as sender meant it.
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  The meaning of advertising:

a condition or circumstance that puts one in a favourable or superior position.

"companies with a computerized database are at an advantage"

synonyms:

upper hand, edge, lead, head, whip hand, trump card; More

Types of advertising

A successful advertising campaign will spread the word about your products and services, attract customers and generate sales. Whether you are trying to encourage new customers to buy an existing product or launching a new service, there are many options to choose from.

The most suitable advertising option for your business will depend on your target audience and what is the most cost effective way to reach as many of them as possible, as many times as possible. The advertising option chosen should also reflect the right environment for your product or service. For example, if you know that your target market reads a particular magazine, you should advertise in that publication.

The following list is an introduction to advertising tactics that you could use. Remember, you can always be creative in your advertising to get noticed (within advertising regulations).

Newspaper

Newspaper advertising can promote your business to a wide range of customers. Display advertisements are placed throughout the paper, while classified listings are under subject headings in a specific section.

You may find that a combination of advertising in your state/metropolitan newspaper and your local paper gives you the best results.

Magazine

Advertising in a specialist magazine can reach your target market quickly and easily. Readers (your potential customers) tend to read magazines at their leisure and keep them for longer, giving your advertisement multiple chances to attract attention. Magazines generally serve consumers (by interest group e.g. women) and trade (industry/business type e.g. hospitality).

If your products need to be displayed in colour then glossy advertisements in a magazine can be ideal - although they are generally more expensive than newspaper advertisements.

Magazines do not usually serve a small area such as a specific town. If your target market is only a small percentage of the circulation, then advertising may not be cost-effective.

Radio

Advertising on the radio is a great way to reach your target audience. If your target market listens to a particular station, then regular advertising can attract new customers.

However, sound has its limitations. Listeners can find it difficult to remember what they have heard and sometimes the impact of radio advertising is lost. The best way to overcome this is to repeat your message regularly - which increases your costs significantly. If you cannot afford to play your advertisement regularly, you may find that radio advertising does not generate strong results.

Television

Television has an extensive reach and advertising this way is ideal if you cater to a large market in a large area. Television advertisements have the advantage of sight, sound, movement and colour to persuade a customer to buy from you. They are particularly useful if you need to demonstrate how your product or service works.

Producing a television advertisement and then buying an advertising slot is generally expensive. Advertising is sold in units (e.g. 20, 30, 60 seconds) and costs vary according to:

• the time slot
• the television program
• whether it is metro or regional
• if you want to buy spots on multiple networks.

Directories

Directories list businesses by name or category (e.g. Yellow Pages phone directories). Customers who refer to directories have often already made up their mind to buy - they just need to decide who to buy from.

The major advantage of online directories over print directories is that if you change your business name, address or telephone number, you can easily keep it up to date in the directory. You can also add new services or information about your business.

If your target market uses print and online directories, it may be useful to advertise in both, although print directories are being used less.

Outdoor and transit

There are many ways to advertise outside and on-the-go. Outdoor billboards can be signs by the road or hoardings at sport stadiums. Transit advertising can be posters on buses, taxis and bicycles. Large billboards can get your message across with a big impact. If the same customers pass your billboard every day as they travel to work, you are likely to be the first business they think of when they want to buy a product.

Even the largest of billboards usually contain a limited amount of information; otherwise, they can be difficult to read. Including your website address makes it easy for customers to follow up and find out more about your business. Outdoor advertising can be very expensive especially for prime locations and supersite billboards.

Direct mail, catalogues and leaflets

Direct mail means writing to customers directly. The more precise your mailing list or distribution area, the more of your target market you will reach. A direct mail approach is more personal, as you can select your audience and plan the timing to suit your business. A cost effective form of direct mail is to send your newsletters or flyers electronically to an email database. Find out more about direct mail.

Catalogues, brochures and leaflets can also be distributed to your target area. Including a brochure with your direct mail is a great way to give an interested customer more information about your products and services. Learn more about leaflet marketing using letterbox drops and handouts.

Online

Being on the internet can be a cost-effective way to attract new customers. You can reach a global audience at a low cost. Many customers research businesses online before deciding whom to buy from.

A well-designed website can entice customers to buy from you. There are a number of ways you can promote your business online via paid advertising or to improve your search engine rankings. Learn more about doing business online.

Other ways to advertise your business online include promoting your products or services on social media sites, blogs and search engines and other websites that your target audience visits. Find out more about social media.
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