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BANKING SECTOR IN INDIA

The importance of banking as the nerve sector of economic development can not be over emphasized. Banking industry has acquired a key position in mobilizing resources for defence & for socio economic development of the country. It is said that Bank which are that need of & great wealth of our country have got to be kept very sacred. Just as water is for irrigation, good banks are for the countrys industry & trade. Since the beginning of planning in India banking industry has grown not only in size but also in depth this industry has become one big complex. Today banks have become a part & parcel of our life. Ti was the time when the dwellers of city alone could enjoy their services. Now banks offer access to even a common man & their activities extend to areas hither to untouched & after the globalization & liberalization policy of India, many foreign banks have entered in Indian market with different services & innovation technologies. Apart from their traditional business oriented functions, they have now come out to fulfill national responsibilities. Todays banks cater to the needs of agriculturists, industrialist, traders, women, students & to all other sections of the society. Thus they accelerate the economic growth of a country & steer the wheel of the economy towards its goal of
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Self reliance in all fields. Hence today banking sector has become the lifeline of the economy.

Types of Banks

Regional Rural Bank Nationalize Bank State Bank Group Co-operative Bank Private Bank Foreign Bank

Reserve Bank of India The Hilton-young commission, appointed in 1926 has recommended the necessity of centrally empowered institution to have effective control over currency and financial transaction in the country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and established the Reserve Bank of India with effect from 1st April 1935. The principal aim behind this was to organize proper control over the currency management in the interest of country benefits and to maintain

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financial stability. With this, the RBI mainly looks after the following important functions:

To keep effective control over creation of credits and currency supply To control the Banking transactions of Central and State Governments To act as Central administered Authority of all other Banks in the Country. To organize control over Foreign Currency Transaction Nationalize Banks The Banking Company Act establishes it in July 1969 by nationalization of 14 major banks of India. The sent percent ownership of the bank is of government of India.

State Bank Group

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The State Bank of India was established under the State Bank of India Act, 1955, the subsidiary banks under the State Bank of India (subsidiary Banks) Act, 1959. The Reserve Bank of India owns the State Bank of India, to a large extent, and rest of the part is some private ownership in the share capital of State Bank of India. The State Bank of India owns the subsidiary Banks.

Old Private Banks These banks are registered under Company Act, 1956. Basic difference between co-operative banks and private banks is its aim. Co-operative banks work for its member and private banks work for earn profit. New Private Banks These banks lead the market of Indian banking business in very short period, because of its variety of services and approach to

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handle customer, also because of long working hours and speed of services. This is also registered under the Company Act, 1956.

Foreign Banks Foreign Bank means multi-countries bank. In case of India foreign Banks are such Banks, which open its branch office in India and their head office is outside of India.

Regional Rural Banks (RRB) Regional Rural Banks are added in Indian Banking since October 1975. The Government of India in terms of the provision of the Regional Rural Bank Act 1976 has established these banks. The distinctive feature of Regional Rural Bank is that through it is a separate body corporate with the Commercial Bank, which has sponsored the proposal to establish it. The Central Government, while establishing a Regional Rural Bank at the request of a Commercial Bank, shall specify the local limits within which it
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shall operate. The Regional Rural Bank may establish its branches or agencies at any place within the notified area. State Bank of Saurashtra sponsors Regional Rural Banks in Saurashtra. Co-operative Banks State Co-operative Banks

State Co-operative Bank means the principal Co-operative society in the state. The primary objective of which is the financing other co-operative societies in the state.

Central / District Co-operative Banks

Central / District co-operative Bank means the principal cooperative society in a district, the primary objective of which is the financing of other co-operative in that particular district. Primary / Urban Co-operative Banks

The primary objective of principal business of which the transaction is of banking business and paid up share capital and
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reserve of which are not less than rupees 100,000 and bye-laws of which do not permit admission of any other co-operative society as a member.

General Information of Co-Operative Banks 2.INTRODUCTION

Over the year the difference between co-operative banks & commercial banks has blurred as they all have come under a common law. All products & services are offered by co-operative banks are on the par with commercial banks, with a few
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exceptions related to government business. In 1904 the cooperative movement started in India with a view to provide finance to the agriculturist at a low rate of interest. The cooperative society has to take the place of the money lenders & provide cheap loan to the farmers for productive purposes. Even though many types of co-operative societies have been started particularly for the artisans & others, the most common form of such societies deal in rural credits. And today co-operative banks have started verities of services with different technologies. Once the Mahatma Gandhi has remarked that there is sweetness in co-operation; there is no one who weak or strong among those who co-operate. Each is equal to other.

So, after having such easy government policy, today many co-operative banks have started in India. And they are catering to the all section of the society, & also today co-operative sector has grown in all over the world, with globalization of the world they have also started to implement new technologies & various management tools. Now, they are in same market with all the other banks. So, by this way the co-operative banks are in the key position in the economy.

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2.1DEFINITION OF CO-OPERATION

Co-operation has been defines in slightly different ways in various sciences & by various scholars. This is due to its flexible nature which can lend itself to variety of purpose & social system, in order to have a through understanding of the concept some well known definitions are discussed below.

Co-operation is a form of organization where in persons voluntarily associate together as human beings on a basis of equality, for the promotion of economic interests of them selves.

-Hubert Calvert

Another protagonist is an association for the purpose of joint trading, originating among the weak & conducted always in an unselfish spirit, on such terms that all who are prepared of assume the duties of membership my share in its reward in proportion to the degree in which they make use of there association.

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- C. R. FAY

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2.2PRINCIPLE & CHARACTERISTICS

Careful analyses of the above definitions will reveal the following principles & characteristics of co-operative organization.

VOLUNTARY ASSOCIATION ::-

Co-operative organization is purely a voluntary association if individual who join together for betterment of their economic interest through collective efforts. A member is at liberty to leave the organization at any time & withdrawal his capital by giving due notice. But it should be remembered that a member is not allowed to transfer his shares to another person as found in the company organization.

OPEN MEMBERSHIP ::-

Membership of co-operative organization is open to all irrespective of religion caste, color, creed, political affiliations belief & status to which a person belongs. The membership fees

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& the entrance fees are kept relatively low so as to enable the economically weak to become the members.

EQUAL VOTING RIGHTS ::-

Equality is the quintessence of co-operative organization. Members have equal voice in the management of its affairs with the underlying principle ONE FOR ONE VOTE.

SERVICE MOTIVE ::-

It is mainly intended to goods first to its members & then to outsiders at profit the primary aim of any co-operative organization is to render service to its member. So these are the primary motive or principles. There are other principles, cooperative organization has to follow those principles like state control, democratic organization etc.

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2.3TYPES OF CO-OPERATIVE BANKS

There are mainly three types of co-operative banks in India. State co-operative banks Central co-operative banks Urban co-operative banks

STATE CO-OPERATIVE BANKS ::These banks are also known as apex bank & are registered

under co-operative societies act 1912. In fact these banks are established to function as a leading co-operative financial institution of the state offer co-operative societies should grow. The apex banks as they are called are they to render financial help as & when the co-operative societies are in need of their help.

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CENTRAL CO-OPERATIVE BANKS ::-

A district level of central co-operative banks is functioning as a commercial bank & that too as an independent unit. They are there in order to strengthen the co-operative movement in the country. In fact these banks are the key link between people & apex bank & render valuable services to downtrodden & rural folk in taking them out of the financial wood central co-operative banks get funds from (A) Share capital (B) deposits (C) financial help from state cooperative banks (D) state bank of India & (E) commercial banks. Their working capital is usually provided by state government.

URBAN CO-OPERATIVE BANKS ::-

Urban co-operative banks are organized & established in towns on the pattern of joint stock banks but are established under co-operative societies act 1912. For funds these banks depend on their own sources. However central co-operative banks are helping them in financially viable. Central co-operative banks are directly links with the state co-operative banks. Urban primary co-operative banks provide funds to rural folk in easy
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terms to help them in agriculture work aid its development today they have started playing a significant role in rural upliftment. They are in tune with the government policies & program.

2.4 ROLE OF CO-OPERATIVE BANKS

Now-a-days co-operative banks are progressing very fast then any commercial or nationalized banks. The customer service lending services & other banking facilities given to the society is being better than other banks. So people are also being attracted & interested in co-operative banks.

The main aim of the bank is to extend credit facilities to the small traders, workers & other middle class people. This bank derive their funds for working partly through share capital contributed by the members & partly through deposits collected
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from members, general public & render usual banking services. The liability of members is normally unlimited. This enables the society to raise funds from outside agencies & also encourages member to take keen interest in working of the society.

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2.5REGISTRATION & LICENSING

There should be co-ordination between the state cooperative department & RBI for the registration & licensing of urban banks. Urban banks should build up their share capital & reserve to the revised minimum level with in period of 3 year which can be extendedly by the RBI to a further period of 2 years whenever necessary.

For organization or urban co-operative bank in each state there should jointly survey local areas & identify the potential growth centers where urban banks could be organized once such centers are located prominent person of the locality might be contacted to seek their assistance for registration of the urban banks. New banks are to be organized in backward areas or by weaker section of the community may not be able to collect the initial minimum share capital required for obtaining license. Government assistant in the form of share capital contribution for such new banks may be equal to that collected by members. These banks derive their funds for working partly through share capital contributed by the numbers & partly through deposits collected from members & non-members & renders usual banking services. The shares are of higher value. But the
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liability of the member is limited to the extent to the shares hold by them.

3.SWOT ANALYSIS

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SWOT Analysis is one of the tools to measure performance. It includes internal strengths & weakness and external opportunities & threats. For any particular firm this is the parameter which includes both the aspect i. e. areas which has been already improved and areas which are needed to be improved. A firm has tried to develop its weak areas retain its strengths, look for new opportunities with considering competitors upcoming strategies that is what SWOT all about.

STRENGTH: This bank is a very reputed in Rajkot & its District.

Professional management co-operative team spirit Fully Computerized Profitable & Sound Liquidity Branches in all most developed part of Rajkot
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WEAKNESS: Bank is not performing marketing activities because lack or marketing eateries. Lack of modern management concept and sometimes communication gap can be found which indicates lack of professionalism.

Bank is not providing ATM facilities in the all developed places.

Lower volume of clearance due to higher rate of interest may affect the expansion of the organization. There is a mistake in regular transaction can be found because of large network.

OPPORTUNITIES: Bank can open branches at state level in near future.


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Bank can introduce new service like NRI loan, ATM etc. Bank can perform marketing activity by TV, Media etc.

THREATS: Changes in government policies and in rules and regulation regarding bank can be distributed in regular service bank.

All the depositors may withdraw their money from bank because of any wrong rumours against bank.

Bank appraisal process should be time bound. There must be deep study of validity of loan repayment while giving new loan. The inspection of pre and post sanction should be more strict and regular.

The financial liability of the borrower should be checked on more scientific and statistical base and not depending on relationship banking.

There must be deep study of validity of loan repayment while giving new loan. The inspection of pre and post sanction should be more
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strict and regular.

4.RAJ BANK :
Raj bank believes in curtailing NPA rather than managing the same. That is the reason Net NPA of your bank is ZERO since 1990 and Raj bank is popularly known as ZERO NET NPA BANK.

4.1Establishment & Glorious History of the Bank Ramnikbhai Dhami, Chief Promoter and founder of this Bank, cooperative leader and advocate by profession laid a strong foundation of bank on 24.11.1980 and today The Co-operative Bank of Rajkot Ltd. (popularly known as RAJ BANK) has various special characteristics added to its success portfolio. forged ahead successfully owing to its transparent administration and management group as also due to the efficiency and sharpness of the banks employees. The bank was started in a small premise and converted into a large and most popular bank having its branch network in the entire Rajkot District, Junagadh District and also branches in Surendranagar and
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Ahmedabad city. In years to come the bank will expand its business in the entire Gujarat State.

4.2CORPORATE MISSION

strategies.

Survive to the common man. Enhance the value of share holders. Emerge as a symbol of public trust & confidence by creating a positive image. Maintain excellence in operation & management by bringing in transparency & integrity. Develop & motivate human resource there by cultivating professional culture in the banking operation. Ensure speedy & satisfactory customer services through continuous product innovation & aggressive marketing And the last but not least that is.

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To assist the weaker section of the society Is the primary motto of the RAJ Bank.

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4.3BANK DETAIL Our special Characteristics : ZERO NET NPA since 1990 and persistent efforts to maintain the same. Strong Brand Equity, Largest Non Schedule Bank in Gujarat Respectable ranking and position in Gujarats Top Co-operative banks. Fully Computerisation and automation. Successful and effective leadership. Profitability. Insurance of all types of advances. Inter personal banking relations. Sound Liquidity. Strict monitoring & strong internal control ATM in smaller towns. We are pioneer in introducing ATMs in the entire Saurashtra and Kutch region in the Co-operative banking sector.

The Key Elements of our strategy are Sharing the vision Structuring Resources Transparent Management Capitalize on new business opportunities Leverage our brand and distribution capability Proactively Adopt Technology Develop Human Capital Expansion of profitable Business
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Expansion is the way of life

DETAIL OF RAJ BANK RS IN LACS PARTICULAR OWNFUNDS DEPOSITS ADVANCES TOTAL

YEAR 2010-11

PROJECTION 15500 84000 50400 134400

ACTUCAL 16853.07 87172.05 51420.42 138592.47 45711.69 104975.99 2528.46

CHANGE + 8.73 % +3.78 +2.02% +3.12% +10.41% +2.92% +5.35%

BUSINESS INVESTMENT 41400 WORKING 102000 FUNDS GROSS PROFIT 2400

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4.RESEARCH METHODOLOGY METHODOLOGY/ FOCUS/ SCOPE & LIMITATIONS 4.1 PROJECT OBJECTIVE

The project is aimed at evaluating banking activity of The co-operative bank of Rajkot LTD.

To discuss whole chain of banking activity and department function starting from Clearing , Transfer , Remittance , Cash , Loans and advances and Deposits.

To discuss other banking manual rates, progress of the bank and procedure for all department activity.

4.2 METHODOLOGY

The methodology to be adopted for the project is explained as under:


1.

The initial step of the project was studying about the company, visiting the all department.

2. Started from the KYC rules and procedures. 3. Study the transfer of cheques and daily OBC maintenance

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4.

In loans and advances study the loans rate, how to give loans, types of loans, practical working for the loan work and valuation of that department. In deposit get the ideas regarding daily fd maintenance, and other compound interest deposits.

5.

6. For some days see the daily cash maintenance as per rules and regulation.

SECONDARY SOURCES: Data was collected from documents, records and files of the company. Data was gathered from the annual reports of the company.

4.3 SCOPE OF THE STUDY

Studying the banking activity and learn about the cooperative banking is a great task for everyone. It become quite difficult rather impossible to make judgment about the each and every process with greater accuracy in a limited time but for this two month summer training gives me a chance to analyze the Raj Bank function and every department.

The data are collected from the each and every department member and by helping them in each procedure of the particular department activity.
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Cheques taken and seeing loan case live, making of fixed deposit. Opening of account of customers, helping them for understanding loans and deposits rates. In this two months time I realize the activity done by the members in bank have to be appreciated by the each and every customer and by me also.

4.4LIMITATION: In spite of my continued efforts to make the project as accurate and wide in scope as possible, certain limitations are becoming evident while implementing the project. These limitations cannot be removed and have to be accepted as permanent constraints in implementing the project. Some limitations, which have been identified, by me are: Dont look at the cash figure in the bank daily tb and day books.

Cannot sit on the staff members computer, allowing to sit near to them. It is good for me and bank also.

Follow the particular bank time 10:30 to 3:00 pm and 4 to 6 pm I am not looking for the cash department activity more than 1 day.
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As per bank rules and regulation I am not opening any files, manual and other cupboard if any work occurs.

5.1 DIFFERENT SERVICES OF A RAJ BANK


Personalized Cheque Book Demand Draft ATM Card E-Token Insurance Bill Collection E CMS Facilities
NEFT/RTGS

5.2 CURRENT DEPOSIT

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Current account refers to regularity of transecting in account with in banking hours on all working day. The bankers liability in this regard is to honor all the demand of the customer to the extent to which his account shows a credit balance. It is because of this obligation current account deposit is known as bankers demand liability & in order to fulfil this liability they keeps sufficient cash ready every moment.

A current account is an account which is generally opened by businessmen, companies, institutes, corporations, industrialists etc.

Who have huge working capital in their hand. Who are interested in keeping money safe. Who transect with their banker daily. Who received and make payment usually through cheques. Who utilize the agency services of the banker frequently Who are engaged in large scale business activity, social services and government activities.

At present in RAJ BANK the condition of current account is as under.

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total deposit amt. 102,08,13,013.91

Features of the current account And Facilities provided to the current account holder.

Easy Procedures for account opening. 24 hours banking facility through their ATM centers. Personalized services & special facility by the way of telephonic inquiry. Regular bank statement is provided at home through post or E-mail. Special facility of over draft cleans O.D. & secured O.D.

5.3 SAVING DEPOSIT Saving deposit account is an ideal account or those who have money to save but who cannot advantageously invest them anywhere else as their saving are not of much significance to the capital market because their saving are too small. This amount is therefore meant of smaller saver. The account is therefore
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encourages small saving and tries to forge a saving habit in the general public. The attitude to save is important which this account tries to create and thus mobilize such small savings for greater social good saving deposits account is for that section of society and put to fruitful utilization.

Features of the saving deposit Restriction on with drawl of amount. Restriction on deposit of amount. Payment of interest. Extra features to the saving account holder of the Raj Bank.

Attractive Rate of interest (3.5%) Easy procedure for account opening. 24 hours banking facility through their ATM centers. Personalized services & special facility by the way of telephonic inquiry. Regular bank statement is provided at home through post or E-mail. Attractive computerized passbook. No charges for saving account holder.

5.4 TERM DEPOSIT


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This account attracts those customers who have money invest for a longer period but do not want to take much of risk. Such person prefers to deposit with commercial banks for a specified period at a specified rate of interest. The interest rate varies from one period to another. A deposit of 15 days attracts a smaller rate of interest and deposits for 5 or more years has highest rate of interest. The period for which deposits are to be made depends upon the depositor himself. However, once a decision is taken by the depositor any money deposit usually he is not allowed to withdrawal the same before the interest earned till that date or accepts a lower rate of interest than stipulated at the time of deposits.

At present in RAJ BANK the condition of the term deposits is as under. Monthly term deposit amt.
49,37,97,615.69

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INTEREST RATES Attractive rates of interest on all types of Fixed Deposits. Deposit Rate w.e.f. 15-01-2010

Sr. No. 1 2 3 4 5 6 7 8 9

Period 15 to 45 days 46 to 90 days 91 to 121 days 121 days to 179 days 180 days to 1 year 1 Year to 2 Years 2 Years to 3 Years 3 Years to 5 Years 5 Years & More

Rate of Interest 4.50 % 5.00 % 5.50 % 6.00 % 6.50 % 7.00 % 7.50 % 8.00 % 7.00 %

Senior citizen can get 0.50 % more interest for more than 1 year deposit.

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5.5 RECURRING DEPOSIT

To encourage regular saving habits in the depositing public the bank in the country provide an opportunity to them to save regularly. According to their capacity and need and earn more than what saving deposit accounts offers to them. The following are the main features of the recurring deposits. The deposits are made every month of fixed amount say Rs. 5, 10, 15, 25 and so on. The deposit is made for fixed period say 6,12,24,36,48,60,72,84, months and so on. This account can be opened by everyone competent to enter in to contract including the minor one. A passbook is supplied to the customer and entry is made there in every month after every deposit. The account attract higher rate of interest. The customer is allowed to raise loan against his recurring deposit account to the maximum limit of 75% of the deposit he has made till the date of raising the loan.

As far as concerned with recurring deposits at the RAJ Bank, than these are the features are the provided to the recurring deposit holders. Easy and simple account opening procedure.
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Speedy and timely services. Account can be opened with any convenient amount.

6.LOANS: 6.1TERM LOAN

It is one of the major sources of debt finance for a long term project. Term loans are generally repayable in more than a year but less than 10 years. These loans are offered by all Indian financial institutions. Term loans are generally secured through a first mortgage or by way of deposit of title deeds of immovable properties. capital. loan. Bank grants these loan 2 lacs to 25 lacs. Rate of interest charged on this loan is 10% to 13%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of Any business operator for the purpose of purchase necessary building, build a building or purchase new machinery. For the purpose of this loan is to invest in long term

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6.2MORTGAGE LOAN get purpose. a person. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 7 years. Bank grants this type of loan Rs. 50,000 to maximum 10 lacs. Bank charges rate of interest on this loan is 12.5% to 13.5%. A person who is gating mortgage loan he has to mortgage land, building or any other fixed assets. Document of properties have to be given to the bank by Any kind or traders, businessmen or an industrialist can mortgage loan. Bank grants mortgage loan for the any

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6.3SECURED OVERDRAFT

Any kind of traders, businessmen, personally, professional & industrialist can get secured over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs. 1 lacs to maximum 100 lacs. Bank charged interest on this over draft is 10.75% to 14%.

over draft.

As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of

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A person has to give reference of two people who are depositor in the RAJ Bank as guarantors.

6.4PERSONAL LOAN

Any localize person can get this loan. Bank grants personal loan for the purpose of purchase fridge, T. V., washing machine or any other thing which can be useful for home management.

Bank grants this type of loan Rs. 10,000 to maximum 50,000 or 70% to 90% of the quotation price of the product.
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Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchase products of purchased product in favor of the bank as a security. A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 5 years.

6.5CLEAN OVER DRAFT

Any kind of traders, businessmen, personally, professional & industrialist can get clean over draft. Bank grants secured overdraft for the purpose of fulfillment or short term working capital need in the business. Bank grants this type of over draft Rs.50, 000.
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over draft.

Bank charged interest on this over draft is 12%. As a security a person has to mortgage any fixed assets whose reliable market value is enough in proportion of A person has to give reference of two people who are depositor in the RAJ Bank as guarantors.

6.6VEHICLE LOAN

Any kind of traders, businessmen, personally, professional or any person can get this type of loan. Bank grants personal loan for the purpose of purchase old or new vehicle for personal or business use.
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product.

Bank grants this type of loan Rs. 15,000 to maximum 10,00,000 or 70% to 90% of the quotation price of the Bank charges rate of interest on this loan is 11%. Applicants need to make such documents of purchased vehicle in favor of the bank & in RTO applicant need to register as a hire purchased vehicle as a security.

A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 7 years. Quotation of vehicle, proof of guarantors income (one time only), RTO certificate & other documents are required with the application form.

6.7LOAN AGAINST NSC, KVP, LIC.

Any person who should have share certificate on his own name or any LIC policy holder.
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Bank grants loan for any purpose. Bank grants this type of loan 70% to 90% of the price of the NSC, KVP, LIC. Bank charges rate of interest on this loan is 11.50%. Applicant need to give share certificate or LIC policy. Applicant has to repayment this loan within the due date of that certificate or policy. Application form, other documents specified in the application form and if an applicant has to give Share certificate or policy than need to sign in favour of the bank.

6.8HOME LOAN

Any localize person can get this loan.


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Bank grants personal loan for the purpose of purchase or to build home. Bank grants this type of loan Rs. 15,000 to maximum 15,00,000 or 70% to 90% of the price of the home. Bank charges rate of interest on this loan is 11.50%. Applicants need to make such documents of purchased home in favour of the bank & bank takes all the documents as a security.

A person has to give reference of two people who are depositor in the RAJ Bank as guarantors. Loan repayment period is 3 years to 15 years. Application form, other documents specified in the application form and if an applicant want to mortgage any assets than he need to give whole file of that assets and title report through advocate approved by bank only proof of guarantors income (one time only).

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6.9CASH CREDIT

1.

Loan to Small Scale Industries:

A person who has his own business and wants to start his own business as a small scale sector can get this kind of the loan for the purpose of fulfillment of the short term working capital needs or to purchase new machineries or so on. A businessman can get loan 1 lacs up to 25 lacs and a person has to repay the loan in installment which should have already been decided. In case credit can withdraw money if there is no money in his account. Bank grants this loan against the raw material stock, and any mortgage properties. The insurance of the stock and mortgaged properties is taken by the bank as a security. Rate of interest on this loan 11 to 15%.

2.

Other Loan:

Bank also grants cash credit to the local residential or to an ordinary people to fulfill their needs of money. A person can get loan up to 10 lacs but in special cases bank allows him to grants above 10 lacs and person has to repay the loan installment which
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should have already been decided. In cash credit type loan, person can withdraw money if there is no money in his account. Rate of interest on this loan is as under.

Up to Rs.2 lacs: Rs 2 lacs to Rs.5 lacs: Rs 5 lacs to Rs 10 lacs: Above Rs. 10 lacs:

11.5% 12.25% 12.75% 13.5%

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7 OTHER SERVICE

7.1Safe Deposit Vault (locker facility)

At RAJ bank there is a proper locker department at ground floor here locker facility has been providing to the customer. Customer can keep all the ornaments, important documents and many other papers and many things. For every bank this facility is become just like primary function and for providing best customer service RAJ bank is managing this service too.

Any shareholder or depositor can easily get their personal locker of bank. There are mainly three types of lockers at RAJ bank Small size locker, Medium size locker, and large size locker. And for to maintain best services RAJ bank has different department and enough staff for locker department. Different charges and deposits for different locker are as under.
Rates of Rentals Annual rates and locker deposit of rentals of lockers of various sizes are as under: (Inclusive of Service Tax)

Specifications of Lockers

Annual Locker Deposit


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Class of Internal dimensions in Rent Locker mm.(approx.) Rs.

A B C

Height Width Depth 125 175 492 125 352 492 278 352 492

225 275 340

Rs. 10000 20000 30000

For the management of this locker department they are mainly follow these activities.

They have locker attendance register in which the identification, address, full name and signature of locker holder are being maintained.

Before any locker holder open his/her personal locker the staff member has been verifying the signature of that parson and than they allow him to open locker.

They are also maintained time register in which the entry time and exist time a locker holder is being written. So this is very essential function for RAJ Bank.

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7.2CASH CARD FACILITY

Cash card facilities totally new and plastic product is started by only RAJbank among the nation by cash card any customer can every with drawl amount up to Rs. 15000 from ATMs by cash card. There are no charges for cash card and in also one silent feature is there is no minimum balance require for cash card system. It is a unique facility of RAJ Bank. Cash card is given instead of token for the payment of cheques.

7.3CHEQUE DEPOSITORY SERVICE

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For the purpose of providing best customer service with advanced technologies to their customer, RAJ bank has also started Cheques depository service through cheques depository machine. This service provided to the customer 24 hours of 365 days. CDM facility started on 17th July 2004 at main branch. Now any customer can easily deposit cheques through CDM at any time and any day without filling big slips and without standing in big queue.

7.4ATM FACILITY

ATM has given a new dimension to banking by giving rise to self service banking. Customer have long been constrained by conventional banking services which have been characterized generally by fixed location and fixed timing on the other hand. Customers not desiring to keep much money on them expect their money to be available to them. Whenever and wherever they need money, 24 hours banking services is available for any time. ATM can be used for withdrawal of cash. For RAJ bank it is a matter of great proud that it is pioneer in introducing ATM in the entire Saurashtra region in Co-Operative banking sector. At
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present RAJ bank has twelve ATM. By this ATMs any customer can easily withdrawal maximum 10000 per day.

7.5DEMAND DRAFT

Purchase of demand draft is required to fill up the request application form of bank which contains following columns:

Date of the application. Scroll number. Name of the drawer bank in its branch. Account type number and cheque number. Demand draft number and bank number
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Amount of demand draft in figures and commission and total Rupees Purchaser's name, address and sign. There is demand draft of nationalize bank like Dena SBI, BOB etc. by minimum commission and speedy

Bank, service.

7.6AGRIULTURAL LOANS:
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Medium term Agriculture Loan.

As per the requirement of farmer which needs like, irrigation, S,R,T.O Cattle land purchase the bank have pass Rs. 32.70 crore and other tractor 7 trailer Loan of Rs. 44 crore. Self employment credit card For the establish self employment in rural area and develop small business the RAJ bank has pass 261 Card and loan of Rs. 0.63 crore and total 1144 Card and loan of Rs. 2.66 crore. Self help group bank linkage programe For develop small and poor people in society and development of there child and give them social status under guided of NABARD, bank has 1038 Self help group Bank Account and bank have pass loan of Rs. 0.27 Crore . Smart Kishan Credit Card (KCC) Within the co-operative bank in our country RAJ Bank is first who have started this facility. In this KCC the farmer can get emergency loan up to 10,000.

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8.Conclusion:

As a part of my study, I have taken my training in Shree CoOperative Bank of Rajkot Ltd (Raj Bank).During my summer training I have observed so many things which are as below.

They have very good infrastructural facility. Each employee has given his/her separate table. Fully organized work is being done over there. All the employees are very much Co-Operative and Friendly. All the employees are well mannered and disciplined.

Really, I have got very good experience during my summer project in Shree Co-Operative Bank of Rajkot Ltd.

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Bibliography

Websites:

www.rajbank.net www.bookrags.com

Reference books:

Financial Management Khan & Jain

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