WOMEN ARE GOOD AT MULTI TASKING

In my view working women are more efficient than house wives. As they can handle both the house
and their office. If we think that women shouldn't work then there is no place to show their talents.
Consider the CEO's of ICICI, SBI and many more. So we should give an opportunity to women so
that they can prove themselves in all the fields.
Given X number of tasks and a timeline to complete it, both men and women probably will complete it
within the time-frame, but it is the manner in which either of them proceed to take it to a closure that
is very different about them and brings out the picture that women are better at multi tasking.
Say there are vegetables to be cut and a favorite TV program is on. In most instances men would
proceed to quickly complete the task of cutting the vegetables and then settle down to watch TV
whereas in the case of a woman, she would rather proceed to cut the vegetables while watching TV.
Men in general find it comfortable in focusing on one thing at a time, whereas even if a woman might
also prefer it, she does not have as much difficulty in proceeding in doing this simultaneously.
Women surely do multitask knowingly and unknowingly and men surely avoid multitasking
knowingly and unknowingly.
Women are good at multitasking, for example they are good at looking after their children besides
husband and other family members if in a joint family. Women can balance their office work and their
work at home unlike men.

We can take example Mary Kom who excelled in sports even though she is mother of 2 children, she
nurtured them along with practice and spent time for her husband.

Chanda kochar ceo of ICICI was good at office and looking their family members. Like many
examples are given.
Yes so now we always talk about bringing a change in our society but still what we are lacking is the
respect for women. As I being a youngster, feel that they are good at Multitasking. But as a housewife
her contribution gets unrewarded and unrecognized so, the need of hour is that ablaze and awake our
India by adopting broad thinking.
Hello friends, in my opinion I am also a youngster and I feel that nowadays a sea change has been seen
in women empowerment. I think that education is the only key to women empowerment and that they
have gained properly, if we talk about Multi- tasking then millions of women are there who are
earning their own bread and butter and serving their families also. So, yes they are good at multi -
tasking.
Lets just say about our Indian Culture, have you ever seen a women sitting in a club parting from her
duties and saying that's enough.
There are more accidents happening due to stress on men than on women.
In my opinion, Women is the part of life. Women handles our family. In today's era we can say that
women also spread in all part of world like in politics, economics, government job and private sector
also. Women also take care of household things, they manage home children etc.
Women are better at multitasking. They have to support their family, job in any case. They are the
important person in one's family. Studies says that upbringing of a child depends more on mother.
Even when she fell ill they work so that everybody in family get lunch and dinner and often eats
alone. She manages her emotions very well. Now women has risen a lot as we can clearly see
examples of Indira Gandhi, Kalpna Chawla, chanda kochar, and many more. Life would be difficult
without women and we must learn things from them.
I think women are better than men because they have a lot of patience to do multiple work starting
from home to office. They are good at managing home affairs, relationships, office work and taking
out time for family. Now since all the doors have been opened for women to go out and work day by
day their importance is also being realized. So, we can that women are getting educated and their
career scope is also increasing and every time they are exhibiting better performance which is the
reason for their success and therefore they are succeeding in multitasking activities.
Why can't we take an example here to say whether women are better for multitasking or not ? we know
about ICICI CEO, Chanda Kochhar. She was appreciated by all her family members not because of
 her work but, for managing her family in an effective way. Eventhough, she had her family members
in and around to look after her child (ren) , she feels that none could replace her position and
concentrated on her family after her working hours. I can say that, she can be able to manage her
work, her family members and outside projects that she had. So, women can better handle
multitasking's.
In my opinion women had got such a situations in history that they acquired the characteristics of
multi-tasking person. Initially they manage their home only which requires many different type of
works to do. After some years as men were doing the hard work in office and women became literate,
men gave them some work outside the home. Further more due to economical problems women stood
up for jobs also.

Thus women are mentally prepared for different tasks in life. Similarly our culture and festivals are
also held by women.

1] Managing home successfully.

2] Managing office and jobs.

3] The social activities I. E. Festivals and our culture.

4] Maintaining different relationships successfully better than men.

Ultimately this all things proves that women are better at multi-tasking.

My friend Dinesh is saying that the percentage of done work is very less than she can't work. But I
want to notice him that now in this word there is no such a field where women are not working.

Since the oldendays ,women handle household responsibilities and at the same time give scope for the
family to maintain financially good. The latest trend modified their mindsets and also gave rise to
women empowerment in various fields.They are leading today and taking charge of the entire
world.so we can definitely say that they are better at multitasking

GLOBAL WARMING
Introduction and meaning: The rise in earths surface temperature as a consequence of greenhouse
effect is called Global Warming.

The greenhouse gases such as carbon-dioxide and other pollutants absorbs more heat from the sun
then it radiates back. This causes an increase in the intensity of heat in atmosphere.

The thickening of earth atmosphere because of presence of increased carbon dioxide and other
greenhouse gases is called greenhouse effect.

What causes Global Warming?

1. Deforestation and industrial emissions result to an increase greenhouse gases (such as carbon-
dioxide) around earths atmosphere.

2. These greenhouse gases traps and absorbs atmospheric heat and ultimately causes Global
warming (an increase earths surface temperature).
Effects / Impact of Global Warming
If Global warming continues the world would be in danger. The major effects and impacts of Global
Warming are:

1. Climate Change: Global warming is causing climate change. The worlds is becoming warmer and
warmer. There is also prediction of regional climate changes along the ecosystem.

2. Sea Level Change: One major consequence of global warming arising out of greenhouse effect is
the rise in sea level. Four major changes take place prior to this. They are: Thermal expansion,
mountain glacier melting, Greenland ice sheet melting and Polar (Arctic and Antarctic) ice sheet
melting. Thus, the coastal cities and ports may be submerged under sea-water. Many islands may
vanish from the earth surface as well as from the world map.

3. Water Balance: Although changes in sea-level have received much publicity, problems of water
availability are likely to be more serious and perhaps more expensive to solve. In future, warmer
world will face water crisis in some parts while in other regions it will be wetter than it is now.

There is uncertainty regarding regional forecasts of future precipitation as warming of globe makes it
difficult to predict. Also, pattern of agricultural changes, or effects on ecosystems in general are fairly
unpredictable.

4. Human Health: The human health is put at risk because of Global warming. In recent years, there
have been newer reports of spread of major tropical diseases with changing climate. As the earth
becomes warmer, more and more people are likely to be affected by tropical diseases.

How to prevent Global Warming?

The problem of Global Warming can be controlled by minimizing the emission of greenhouse gases
into the environment. The following preventive steps would help save the earth from the harmful
effects of Global Warming.

1. Laws. The Laws that governs pollution and greenhouse gases should be followed.

2. Reduction in thermal power generating stations. Reduced dependence on thermal power

for our electricity need would help towards reducing the quantity if carbon dioxide in the
environment. The use of fossil fuels for generating conventional energy is a major of greenhouse
gases.

3. We should not waste paper. We can save paper by keeping documents in electronic format
and by not printing emails.

4. Planting Trees. Trees absorb carbon dioxide and releases oxygen. Trees are helpful in
reducing the problem of global warming.

5. Sharing our car. We can share our car while going to office or performing other scheduled
activities. On one hand, we will save money, and on the other, we will emit less greenhouse
gases.

Conclusion
Overall of this assignment, I have understood that our earth is "sick". We humans need to "heal" the
earth. Global Warming have causes many problem for human but we human who make global
warming happens. Many people have died because of disease or disaster. It also affects the economics
of the country. However, we need to be reduce the global warming by using less gasoline, recycle and
human should help to reduce global warming instead of making the earth temperature increased. Our
generation should start taking care of the earth because in the next generation they will suffer if we do
not do reduce global warming. Therefore, global warming is a serious issue now. As a business
student we are learning it because we need to understand the effect of climate change that will affect
us when we have our business and we can start saving the earth.

CHALLENGES BANKING SECTOR IS FACING

Banks in India are considered to be the lifeline of the economy. They play a catalytic role in activating
and sustaining economic growth. As per KPGM-CII report, Indias banking sector is expanding
rapidly and has the potential to become the fifth largest banking industry in the world by 2020 and
third largest by 2025.
Status of Banking Sector at a glance
The Indian banking system consists of 26 public sector banks, 20 private sector banks, 43 foreign
banks, 56 regional rural banks, 1589 urban cooperative banks and 93550 rural cooperative banks.
The Indian banking sectors assets reached 1.8 trillion US dollars in 2014-15 from 1.3 trillion US
dollars in 2010-11, with 70 per cent of it being accounted by the public sector.
Total lending and deposits increased at a compound annual growth rate (CAGR) of 20.7 per cent
and 19.7 per cent, respectively, between 2007 and 2014 and are further poised for growth, backed
by demand for housing and personal finance.
Indian Banks have successfully adopted the Basel II norms of international banking supervision
and as per the Reserve Bank of India (RBI) majority of the banks have already met Basel III capital
norms prior to its deadline of 31 March 2019.
Factors promoting growth of Banking Sector
Emergence of Universal Banking System: Services provided by banks have expanded rapidly in
the last decade. In addition to the traditional savings and loans, banks started providing a wide
gamut of financial services like insurance, investment, asset management, etc which increased their in
the economy.
Through partnerships and acquisitions, banks are trying to integrate financial services, wallets,
payments, shopping services etc., there by adding depth to their financial services.
Economic growth: Over 9 percent GDP growth in the pre global financial crisis period (2009-10)
and over 7 percent in the last two years largely facilitated the growth of this sector.
Globalisation: As India is moving towards closer integration with the world economy, Indias
merchandise trade, service exports and remittances are growing at a faster pace. In order to serve
these new needs banks have evolved and redeemed themselves in India and abroad.
Policy initiatives: The Banking Laws (Amendment) Act, 2012 at the monetary front, and large scale
infusion of funds into the public sector banks by the government in recent years fuelled the growth of
this sector.
For the government, the banking sector is at the core of governance. Initiatives like Jan Dhan Yojana
and Direct Benefit Transfer are case in point.
Usage of technology: Information and communication technologies including the mobile phones
and internet connectivity are the prime reason for expanding the reach of banking sector to the youth
and rural habitations.
Issues and Challenges
Amidst the signs of progress, the Indian banking sector has been facing multiple challenges in recent
times. Few of them are -
Non Performing Assets
NPAs have become a grave concern for the banking sector in couple of years and impacted credit
delivery of banks to a great extent.
As per a survey, net NPAs amount to only 2.36 percent of the total loans in the banking system.
However, if restructured assets are taken into account, stressed assets account will be 10.9 percent of
the total loans in the system. As per the International Monetary Fund (IMF), around 37 percent of
the total debt in India is at risk.
Indias largest lender State Bank of India (SBI) reported a massive 67 per cent fall in consolidated
net profit at 1259.49 crore rupees in the third quarter of the 2015-16 financial year and classified loans
worth 20692 crore rupees as having turned bad.
As per an estimate, the cumulative gross NPAs of 24 listed public sector banks, including market
leader SBI and its associates, stood at 393035 crore rupees as on 31 December 2015.
The Economic Survey 2015-16 also alarmed the policy makers about growing bad debts with the
banks and their potential to disrupt the growth prospects in the future.
Reduced profits: The banking sector recorded slowdown in balance sheet growth for the fourth year
in a row in 2015-16. Profitability remained depressed with the return on assets (RoA) continuing to
linger below 1 percent. Further, though PSBs account for 72 percent of the total banking sector assets,
in terms of profits it has only 42 percent share in overall profits.
Issue of Monetary Transmission
Like reduced profits, this is also an off-shoot of burgeoning NPAs in the system. With the easing of
inflation and moderation in inflationary expectations, the RBI reduced the repo rate by 100 basis
points between January and September 2015.
However, change in the key policy rate was not reflected in lending rates as banks are not willing to
transmit the benefits of low interest policy regime due to low-availability of liquidity against the
backdrop of high NPAs.
Corruption
Scams in the erstwhile Global Trust Bank (GBT) and the Bank of Baroda show how few officials
misuse the freedom they granted under the guise of liberalisation for their personal benefit. These
scams have badly damaged the image of these banks and consequently there profitability.
Crisis in Management
Public-sector banks are seeing more employees retire these days. So, younger employees are replacing
the elder, more-experienced employees. This, however, happens at junior levels.
As a result, there would be a virtual vacuum at the middle and senior level. The absence of middle
management could lead to adverse impact on banks' decision making process.
Steps taken by Government and Banking Sector
To effectively address the above issues the Government including the RBI and the Supreme Court and
the Banks themselves have taken many initiatives. Some of them are
The Ministry of Finance in its Economic Survey 2015-16 suggested four R's - Recognition,
Recapitalization, Resolution, and Reform to address the problem of NPAs.
The Union Government unveiled plans to infuse 70000 crore rupees in the next few years, but PSU
banks would need at least 1.8 lakh crore rupees by 2019-20.
In October 2015, the Government announced Mission Indradhanush under which 7 key strategies
were proposed to reform public sector banks (PSBs).
In May 2015, the RBI advised all PSBs to appoint internal Ombudsman to further boost the
quality of customer service and to ensure that there is undivided attention to resolution of customer
complaints in banks.
 The Government announced its intention to introduce a comprehensive Insolvency and
Bankruptcy Bill in the Parliament based on the recommendations of the Dr T K Viswanathan-
headed Bankruptcy Law Reforms Committee (BLRC).
In order to rein in corruption, the Supreme Court on 23 February 2016 ruled that the top officials
and employees of private banks will be considered as public servants for the purposes of the
Prevention of Corruption Act, 1988.
The RBI is also facilitating rectification of procedural flaws in the system through a number of well-
thought-out initiatives like restricting incremental non-performing assets through early detection,
monitoring, corrective action plans, shared information, disclosures, etc. In this regard, the RBIs
resolve to clean banks books by 2017 is commendable.
Conclusion
Banks are at the core of any economic system whether developed or developing. Essentially, a
technologically advanced, transparent and efficient banking system is the need of the hour for the
growing economy like India.
In our country, need for qualitative banking surpasses the conservative economic or financial logic as
the financial inclusion is still a distant dream. In addition to the provision of traditional services,
many social functions are attached to the banking system financial inclusion and inclusive growth.
In order to achieve the goal of faster and inclusive growth, it is high time the government and
banking industry undertake a comprehensive relook into the existing policies and structures

INTERLINKING OF RIVERS IN INDIA ADVANTAGES &

DISADVANTAGES

Introduction:

Interlinking of Rivers is nothing but joining the rivers of the country by networks of canals and
reservoirs. Interlinking of rivers in India was proposed for the first time during British Colonial rule.
The main intension of the proposal was to reduce the transportation cost of raw materials and finished
products. The Indian Government has established the National Water Development Agency to study
the interlinking of rivers under the Ministry of Water Resources. Many states have proposed for
interlinking of rivers due to scarcity of water in their states and hence the central government is
working on a few projects.

Yes It will reduce the poverty and floods & distribute water equally.

1. India receives most of its rain during monsoon season from June to September, most of it falls in
northern and eastern part of India, the amount of rainfall in southern and western part are
comparatively low. It will be these places which will have shortage of water. Interlinking of rivers will
help these areas to have water throughout the year.

2. The main occupation of rural India is agriculture and if monsoon fails in a year, then agricultural
activities come to a standstill and this will aggravate rural poverty. Interlinking of rivers will be a
practical solution for this problem, because the water can be stored or water can be transferred from
water surplus area to deficit.

3. The Ganga Basin, Brahmaputra basin sees floods almost every year. In order to avoid this, the
water from these areas has to be diverted to other areas where there is scarcity of water. This can be
achieved by linking the rivers. There is a two way advantage with this floods will be controlled and
scarcity of water will be reduced.

4. Interlinking of rivers will also have commercial importance on a longer run. This can be used as
inland waterways and which helps in faster movement of goods from one place to other.

5. Interlinking creates a new occupation for people living in and around these canals and it can be the
main areas of fishing in India.

No It will environmental problems, ecological imbalance & reduce water table

1. Interlinking of rivers will cause huge amount of distortion in the existing environment. In order to
create canals and reservoirs, there will be mass deforestation. This will have impact on rains and in
turn affect the whole cycle of life.

2. Usually rivers change their course and direction in about 100 years and if this happens after
interlinking, then the project will not be feasible for a longer run.

3. Due to interlinking of rivers, there will be decrease in the amount of fresh water entering seas and
this will cause a serious threat to the marine life system and will be a major ecological disaster.

4. Due to the creation of Canals and Reservoirs, huge amount of area which is occupied by the people
will be submerged leading to displacement of people and government will have to spend more to
rehabilitate these people.

5. The amount required for these projects is so huge that government will have to take loans from the
foreign sources which would increase the burden on the government and country will fall in a debt
trap.

Conclusion:

Interlinking of rivers is definitely a good solution for the scarcity of water, but interlinking has to take
place after a detailed study so that does not cause any problem to the environment or aquatic life.

GST Advantages and Disadvantages

The GST is a Value added Tax (VAT) is proposed to be a comprehensive indirect tax levy on
manufacture, sale and consumption of goods as well as services at the national level. It will replace all
indirect taxes levied on goods and services by the Indian Central and State governments. Though GST
is considered to be a historical tax reform in India, it also has some demerits. We here would look into
GST Taxation and deal with its advantages and disadvantages.

GST Advantages

1. GST is a transparent tax and also reduce number of indirect taxes.

2. GST will not be a cost to registered retailers therefore there will be no hidden taxes and and
the cost of doing business will be lower.
 3. Benefit people as prices will come down which in turn will help companies as consumption
will increase.

4. There is no doubt that in production and distribution of goods, services are increasingly used
or consumed and vice versa.

5. Separate taxes for goods and services, which is the present taxation system, requires division
of transaction values into value of goods and services for taxation, leading to greater
complications, administration, including compliances costs.

6. In the GST system, when all the taxes are integrated, it would make possible the taxation
burden to be split equitably between manufacturing and services.

7. GST will be levied only at the final destination of consumption based on VAT principle and
not at various points (from manufacturing to retail outlets). This will help in removing
economic distortions and bring about development of a common national market.

8. GST will also help to build a transparent and corruption free tax administration.

9. Presently, a tax is levied on when a finished product moves out from a factory, which is paid
by the manufacturer, and it is again levied at the retail outlet when sold.

10. GST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspects
of GST.

GST Disadvantages

1. Some Economist say that GST in India would impact negatively on the real estate market. It
would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.

2. Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names
for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the
number of tax layers.

3. Some retail products currently have only four percent tax on them. After GST, garments and
clothes could become more expensive.

4. The aviation industry would be affected. Service taxes on airfares currently range from six to
nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax
rate.

5. Adoption and migration to the new GST system would involve teething troubles and learning
for the entire ecosystem.

PAYMENT BANK AND SMALL BANKS A THREAT TO PSBS

How it will change current financial system:

The move of giving licenses to payment banks and small financial banks will be the major step
towards pushing financial inclusion in the country. The main target for payment banks and small
finance banks will be small businesses and low-income household by providing them financial
services at low transaction cost. It is uneconomical for banks to open branches in every village,
but with mobile phones which have wider penetration can provide low-cost platform for taking
banking services to every citizen. It will include people who mainly transact in cash to take their
first step into banking system and also accelerate Indias journey as a cashless economy.

Cost of banking will come down due to competition from payment banks and small banks.
Currently, private banks like ICICI, HDFC, Axis, etc. are making huge profits by collecting funds
at lower costs from savings accounts & current accounts (CASA deposits account for 40% of
bank deposits) and lending it to small borrowers at higher rates. But payment banks and small
finance banks get big chunk from this by providing higher interest rate on deposits and giving
credit (small finance banks only) at lower rates. This will increase competition and lower-income
group and small businesses will be benefitted the most.

For customers, the real attraction will not be higher interest rates, but the convenience of carrying
out banking transactions at fingertips. Also, as payment banks will mainly have government as a
borrower, there is very less chances of defaults. Government is also get benefitted as a borrower,
as payment banks will expand access to cheap funds. As payment banks can only invest in short-
term government bonds, government can borrow more at cheap rates.

We can also eliminate black money from large part of financial system by reducing cash
transaction and encouraging people for use of e-money. This is achievable within 5-10 years with
investment in financial literacy and educating rural citizens, especially women.

Payment bank will reduce dependency on cash and will increase m-commerce, as mobile wallets
will be used as payment option. It will also transform our subsidy and social welfare schemes.
With the troika of Aadhaar card, Jan Dhan Yojana and payment banks will enable government to
provide direct subsidy.

Today, there is a large unmet need for those at the bottom of the pyramid not just to have a bank
account but also to get loan to run their small businesses and get out of poverty. Various models
of rural and cooperative banks have failed to deliver these. But organizations that are selected for
small financial banks have successfully done this job of giving small and know their borrowers
needs. So they have high chance of success.

Small financial banks will extend formal financial access to small enterprises that are currently
dependent on high-cost unorganized sector lending. According to RBI estimates 90 percent of
small enterprises do not have access to formal financial institutions. So it will be a huge step
towards full financial inclusion.
Commercial banks mainly funds large and medium industries or give loans for home, education
or vehicle purposes. But it is very difficult for diamond cutting units or restaurants or any other
small enterprises to get working capital funding. Small financial banks can fill this gap. RBI
expects them to be high technology and low cost operators, which also bring new innovations in
the industry.

How it will affect Commercial Banks:

The customer base of commercial banks might reduce due to shift of savings account money into
payment bank account. So low cost deposits of banks might reduce drastically. Due to such a shift
commercial banks regular fee incomes like cash transfers, cheques withdrawals, fee for making
demand drafts or ATM transactions, etc. might reduce.

Currently, commercial banks have to park 21.5% of their deposits as Statutory Liquidity Ratio
(SLR). This gives the government ready market for borrowings but it encourages lazy banking.
But as payment banks will have to invest 75% of their deposits in G-sec and they become large
and successful, it can also reduce Statutory Liquidity Ratio (SLR) burden on commercial banks.

But commercial banks major advantage over payment banks is that they can provide services
and technologies same as payment banks but payment banks cannot provide all the services
provided by commercial banks. Also major banks have already invested heavily in their
technological infrastructure so they can provide similar services. But payment banks are major
threat to cooperative bank and small public sector banks. So they will have to adopt fast or else
they will lose their business.

Conclusion:

Inclusion of both payment banks and small finance bank will mark biggest revolution after the
nationalization of banks in the Indian banking section. It will make banking more competitive and
more inclusive for both borrowers and depositors thus making banking more affordable to the
common man. The era of consumers has finally come!!

ALTERNATE DELIVERY CHANNELA WORLD OF POSSIBILITIES

Technology has been evolving constantly; ever since World War II, it has never been in halt status.
The increased competition and rapid acceleration in manufacturing, acquiring, and releasing
technology has put all nations under a continuous technical revolutionto the extent that their
advancement is no longer measured by their military strength and readiness, but rather by their
technological competence. Technology has given rise to a new, peaceful armed service called
Channels.
A channel is a gateway for execution of a service. A channel can be an office, media, tool, or an
application; it can be manipulated by human interaction or through a systematic front-end interface.

The Alternate Delivery Channel (ADC) approach emerged as a result of a pressing need to ensure
proper handling and communicating of scattered services, products, and/or commodities that were
previously not following a systematic process flow. ADCs have evolved gradually and adapt to serve
consumer needs at their convenience. ADC serves as an alternate to complement the existing delivery
channels. At this stage, it cannot be considered as a replacement to the existing structured delivery
channels, but rather as an advanced interface to leverage the use of any service that is also being
offered through conventional channels. For more than 20 years, ADC has proven its ability to meet
consumers expectations by ensuring accuracy, convenience, and timeliness in service 24/7.

In the banking sector, Alternate Delivery Channels are channels and methods for providing banking
services directly to the customers. Customers can perform banking transactions through their ATM,
contact the banks Call Center for any inquiry, access the digital Interactive Voice Response (IVR),
perform transactions through Internet Banking, and even on smartphones through mobile banking, etc.
These channels have enabled banks to reach a wide consumer-base across geographies.

ADCs ensure the smooth flow of regular transactions and provide banks with higher profits with
lower operational expenses and transaction costs. Channelize through channels is the new paradigm
for banking today, which in earlier times relied solely on the branch network where expanding the
business meant adding more branches at high real estate and licensing costs.

The evolution of Alternate Delivery Channels has changed the dynamics of the branch network. The
traditional branch services which included, Cheque/Cash deposits, Teller Services, etc. have now
shifted to other channels; ADCs have now become independent of branch to provide unique services
including, Cheque/Cash withdrawal, Foreign Exchange services, Funds Transfers, Bill Payments, and
now even mobile top-ups. This exponential expansion of services has now made the customers more
inclined towards ADCs.

One of the growing tools of ADC is the invention of mobile banking or m-Banking, which is now
even changing the dynamics of ADC. With inclusion of thousands of mobile applications, mobile
banking applications are now also becoming the part of the regular services provided by the bank.
Customers are now expecting m-banking as a default service from the banks. The above figure shows
the evolution of ADCs vs. the Branch Network, and predicts the future trend of ADCs.

In addition, the inclusion of the Social Media has also set new standards and articulated how ADC is
expected to act in the near future, which certainly will eliminate the entire need of any human
interface and full dependency on technology and its gadgets.

Some of the expected scenarios that would take place in less than 2 years, is linking customers
account through Social Media, which will enable the customer to manage all his accounts and
facilities with different banks, plan his budgetary and retirement plans, etc. Furthermore, and on the
other side of the river, it would create an environment of competition among international banks to
acquire more customers and better business opportunities and, of course, by maintaining the highest
level of security to ensure risk-free interaction.

To cope up with this growing trend, ADCs must be backed by reliable technology; banks have to
ensure data trafficking, server capacity, privacy issues, and disaster recovery sites. Technologies
should be under continuous review and evaluation to avoid any adverse situations that could affect
customer satisfaction.

EDUCATION LOANS: BOON OR BANE

Every student has very high hopes for his future career. He/she dreams of going to a prestigious
university to study and finally make it big in the field of his choice. Getting that degree is like getting
hold of the magic lamp whose genie will grant every wish in the future, that wonderful job that they
will have and the endless possibilities associated with it.

Of course, education is important if not a basic necessity in the present times. To quote U.S. President
Barack Obama, In an economy where knowledge is the most valuable commodity a country has to
offer, the best jobs will go to the best educated whether they live in the United States or India or
China. To find and hold a meaningful job and flourish in ones career, the right kind of education and
training is of prime importance. Its as simple as that.

Yet what is not that simple is getting that very education that one hopes for. Higher education is not
free like basic education for children in our country. The government has curtailed subsidies to
universities and colleges which means that they have to find their own resources and have to generate
their own funds. This they do by putting the onus on the students, raising tuition fees and asking for
capitation fees. Education has thus become unnecessarily expensive.

It would not be wrong to say that times have converted education into a commodity. The student has
become the consumer. The university is like a business corporation. Students now buy their degrees
and base their goals according to shifting market values of those degrees.

For the poor there is often no way they can afford a higher education. Middle-class people view their
childrens education as an investment into their future so parents are more than willing to support their
children in their dreams. Parents often sell assets or mortgage property to fund their childrens
aspirations to get into a good college or university which they hope will pay off in the future. When
they cannot fund their children themselves they turn towards college loans as the quick and easy way
out.

There is no doubt that education loans can be a boon for brilliant students who have no other means to
pay for their education and who would have fallen by the wayside, earlier, when banks were not ready
to give education loans. The whole scenario has changed now with banks encouraging and pushing
education loans into the very faces of aspiring students.

Students studying in India can get a maximum loan of Rs 10 lakes while up to Rs 20 lakh can be
obtained for studying in a foreign country. The loan re-payment begins after one year of the course
duration or after six months of the employment. This period is known as moratorium period. Only
simple interest is charged during this term. After that term, compound interest is applied. 1% special
discount in the interest rate is given to those who repay the interest in the moratorium period.

The education obtained through the use of a loan, can thus be a ladder for success, for climbing out of
poverty and ignorance. College is definitely worth it. Getting a degree is valuable there is no doubt
about that. Those who go for studies abroad get the chance to broaden their horizons, get jobs abroad
sending remittances back to their country, with the obvious advantages of exchange rates. They may
even be able to settle there in better living conditions.

However, what if? What if one is unable to find as high-paying a job as they would like? What if there
is loss of employment for any reason? What if some ill-health, mental or physical disability crops up?
What if the degree that one has paid through ones nose for wasnt really worth it in the long run?
What if all one is able to get is an under-paid job like a waiter or taxi driver job in spite of the degree?

In such a scenario one can often end up saddled with a debt that becomes more and more difficult to
pay. Ever accruing interest and late fees can add to the burden because of missed payments.

In after-thought, some students rue the day they took an education loan. It becomes like a ball-and-
chain dragging them down. They are unable to do their own thing, for example, start their own
business or fund some other venture because all their money goes towards the instalments to be paid
to the banks. If property has been mortgaged, it can further add to the worries of having their homes
taken away by the banks. Their life style gets restricted and they are only able to start enjoying their
lives after all the loan has been paid off, which could take forever. They may want to kick themselves
for having been ever so stupid.

So then what is one to do? Go for the loan or not? This is a question worth examining. Before taking a
loan students must think long and hard about going in for it and not just jump into it headlong.

There is a misconception that a loan is the only option. They must be smart at the outset and avoid the
debt trap if they can by finding a free college.

They must arm themselves with accurate information about the career course they want to pursue.
Would it pay off eventually? Can they apply for a scholarship? They must use their resourcefulness to
get required training for a career without going broke. Is it possible to get that degree from a smaller
university, public college, or distance course perhaps with equal effect?

If they do go in for a loan, then the loan must be kept to the very minimum. They must not take
overdoses of the loan just to get at what seems like easy money at the time.

Taking a flippant or lazy approach to ones education is a total no-no. One must try and finish the
course in the shortest possible time so as to find a job quickly and get on ones feet. Starting off by
managing ones money wisely from the very beginning is practical. Getting a job while studying can
make a huge difference. Payments must also always be made on time to avoid late fees. Restraint on
personal expenses is also essential. Repayment of the loan must be top priority till such time as it is
paid off.

With a little bit of creativity, money management, finance skills, hard work and restraint one can get
ones education without falling into a debt trap.

FINANCIAL INCLUSION

It is the delivery of financial services at affordable costs to vast sections of disadvantaged and low
income groups

Financial inclusion involves

1) Give formal banking services to poor people in urban & rural areas.

2) Promote habit of money-savings, insurance, pension-investment among poor-people.

3) Help them get loans at reasonable rates from normal banks. So they dont become victims in the
hands of local moneylender.

Some Important initiatives for financial inclusion:

1) Lead banking scheme (LBS).

2) No frills account.

3) BSBDA

4) Business Correspondents (BC) system.

5) Swabhiman Campaign

6) PMJDY

Lead Bank Scheme

The Lead Bank Scheme, introduced towards the end of 1969, envisages assignment of lead roles to
individual banks (both in public sector and private sector) for the districts allotted to them. A bank
having a relatively large network of branches in the rural areas of a given district and endowed with
adequate financial and manpower resources has generally been entrusted with the lead responsibility
for that district. Accordingly, all the districts in the country have been allotted to various banks. The
lead bank acts as a leader for coordinating the efforts of all credit institutions in the allotted districts to
increase the flow of credit to agriculture, small-scale industries and other economic activities included
in the priority sector in the rural and semi-urban areas, with the district being the basic unit in terms of
geographical area.

No Frill Account

'No Frills 'account is a basic banking account. Such account requires either nil minimum balance or
very low minimum balance. Charges applicable to such accounts are low. Services available to such
account is limited. In what can be described as a watershed Annual Policy Statement, the RBI in
2005-06 called upon Indian banks to design a no frills account a no precondition, low minimum
balance maintenance account with simplified KYC (Know Your Customer) norms. But All the
existing No-frills accounts opened were converted into BSBDA in compliance with the guidelines
issued by RBI in 2012 .

BSBDA

RBI in 2012 came out with fresh guidelines and asked banks to offer a Basic Savings Bank Deposit
Account which will offer following minimum common facilities to all their customers. These
guidelines includes:-

(a) This account shall not have the requirement of any minimum balance.

(b) The services available in the account will include deposit and withdrawal of cash at bank branch
as well as ATMs; receipt/credit of money through electronic payment channels or by means of
deposit/collection of cheques drawn by Central/State Government agencies and departments;

(c ) While there will be no limit on the number of deposits that can be made in a month, account
holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals; and

(d) Facility of ATM card or ATM-cum-Debit Card.

Business Correspondent

Business correspondents are bank representatives. They personally goes to the area allotted to them
and carry out banking.

They help villagers to open bank accounts.

They help villagers in banking transactions. (deposit money, take money out of savings
account, loans etc.)

The Business Correspondent carries a mobile device.

The villager gives his thumb impression or electronic signature, and get the money.

Business Correspondents get commission from bank for every new account opened, every
transaction made via them, every loan-application processed etc.

Recently on Financial Inclusion

The Reserve Bank of India (RBI) has constituted a committee with the objective of working out a
medium-term (five-year) measurable action plan for financial inclusion. The terms of reference will
include reviewing the existing policy of financial inclusion, including supportive payment system and
customer protection framework, taking into account the recommendations made by various
committees set up earlier.

It will also study the cross-country experience in financial inclusion to identify key learnings,
particularly in the area of technology-based delivery models, that could inform policies and practices.
The committee will also suggest a monitorable medium-term plan for financial inclusion in terms of
its various components like payments, deposit, credit, social security transfers, pension and insurance.
Deepak Mohanty, RBI executive director, will chair the committee.
THE NEED FOR FRAUD RISK MANAGEMENT SOLUTIONS IN BANKS
Considering the increased reliance on digital technology and the rising incidence of
cybercrime, security is one of the biggest concerns for financial services institutions today. According
to the UKs Office for National Statistics (ONS) there were over 2.5 million cyber crimes reported in
the last year, being the most regular form of cyber crime, attachs by malware, which fall under the
Computer Misuse Act, and hacking. Banks are one of the most common targers of cyber crime. As a
matter of fact, it is esimated that roughly 900 Million Dollars were stolen from worldwide banks in
last two years.
It is therefore essential for banks to devise and adopt strategies that can identify, prevent and control
fraud and financial crimes in their routine operations and ensure cyber security.

Risk management solutions

One way to address the problems outlined previously is through risk management solutions. Risk
management solutions have been available in the market for a long time, but looking for an efficient
one has the ability to detect and prevent frauds, protect the brand and goodwill of a bank and improve
staff productivity. In order to devise such a strategy, banks have to identify the primary objectives that
the risk mitigation system needs to address. This can range from fraud management and cyber-
security concerns to anti-money laundering.

Challenges that Risk Management Strategy must address

1. Frauds and cyber crimes are increasing in both frequency and complexity. Adoption of right
technology and tools is critical to prevent financial crimes of any kind.
2. Data capture and use is getting increasingly heavy and complicated. Acquisitions and
geographic expansions add to the complexity of data gathering. Banks need to access, retrieve,
clean-up, collate, load, and manage, both internal and external sources of data, for analysis.
What an Efficient Risk Management Solution has to Offer

Banks can today protect themselves from known and unknown vulnerabilities, and can address such
threats in a flexible and effective manner. A good fraud management system offers the following
benefits.

1. High detection rate of frauds prevents any loss of finances and reputation, while maximizing
overall productivity.
 2. Protecting customers from fraud helps banks improve their efficiency, while ensuring
regulatory compliance.
3. A good system protects the banks market share and keeps both the brand and its customers
secure.
4. The system has the capability to monitor user behaviour across branches and locations
effectively.
5. Case management tools can be reused and they also help to conduct and finish investigations
efficiently.
6. Threat-assessment helps identify current and potential risks or vulnerabilities.
7. Anti-fraud measures can be established, while codes of conduct for staff, customers, and
partners can also be drafted.
8. A good fraud detection and fraud management system should be able to offer a
comprehensive end-to-end suite of services and should deal with both technology and business
requirements for a healthy ROI.
Risk management solutions in banks should not only address different types of fraud on a real-time
basis, but must also be able to detect and proactively handle possible frauds. This requires trained and
experienced professionals, streamlined data analytical abilities and specialized tools.

KYC - COMPLIANCE VS CONVENIENCE

Is KYC a recent phenomenon?

KYC was always there in banking! The focus, earlier, was more on the asset side and not on the
liability side as no banker could risk parting with his funds to an unknown person. The thorough
appraisal process to screen the potential borrowers is a good example of KYC process.
Then, issues such as illegal/black money and more recently, terrorism financing became matters of
serious concern and then KYC on payments and remittances, and consequently on the liability side
(deposit accounts, etc.) started assuming high importance.
Why KYC/AML norms

Sound KYC policies and procedures are critical for protecting the safety and soundness of banks and
the integrity of banking system in the country.
Due to increasing globalisation of Indian banks, their interaction with other countries' financial
systems are expanding, making the task of ensuring safety of our systems more critical. International
obligations and inter-regulatory consensus built via United Nations Resolutions, Basle Committee on
Banking Supervision and the Financial Action Task Force also require that we put in place an
elaborate KYC Framework in India.
Who is a Customer - a KYC context

In the context of KYC framework, the concept of "customer" has now been redefined. A "customer" is
no longer just the one who has an Account and/or business relationship with the bank; the ones on
whose behalf the account is maintained (i.e. the beneficial owner), the beneficiaries of transactions
conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors
 and any person/entity connected with any financial transaction which can pose risk to bank, say,
through a wire transfer/issue of a high value DD, etc are all "customers".
KYC policy of banks - the 4 key elements

The Reserve Bank has prescribed that the KYC policy of banks should have the following key
elements:
i) Customer Acceptance Policy
ii) Customer Identification Procedures
iii) Monitoring of Transactions, and
iv) Risk Management
Customer acceptance policy

The salient features are:

No anonymous or fictitious/benami accounts to be allowed
Not to open/close accounts when unable to apply appropriate Customer Due Diligence (CDD
- decision to close a/cs to be taken at reasonably high levels after issuing due notice to the customers).
Define parameters of risk perception to enable categorisation of customers
Documentation/information requirements for different risk categories (to prepare a profile of
each customer)
Circumstances where a customer is permitted to act on behalf of another person/entity, should
be spelt out (eg., account is operated by a mandate holder)
Identity of the customer does not match with those of criminal backgrounds/banned entities
(terrorists, etc.)
Customer Identification Procedures (CIP)

Customer identification - identifying the customer and verifying his/her identity by using
reliable, independent source documents, data or information.
The banks must be able to satisfy the competent authorities that due diligence was observed
based on the risk profile of the customer in compliance with the extant guidelines in place.
Such risk-based approach is considered necessary to avoid disproportionate cost to banks and
a burdensome regime for the customers.
Nature of information/documents required would also depend on the type of customer
(individual, corporate etc.)
CIP - NP - Address documents

Telephone bill
Bank account statement
Letter from any recognized public authority
Electricity bill
Ration card
Letter from employer (subject to satisfaction of the bank) if an officially valid document is
produced for identity
Rent agreement duly registered with state Govt or similar Regn. Authority indicating the
address of the customer.
Based on self-declaration, accounts could be transferred from one branch to another without
address proof (correct address proof is to be obtained by the transferee branch within 6 months).
 Any one of the documents would suffice (If address is available in ID document, single
document is sufficient).
Banks to obtain sufficient information necessary to establish, to their satisfaction, the identity
of customer and the purpose of the intended nature of banking relationship.
Banks need to satisfy the competent authorities that due diligence was observed based on the
risk profile of the customer.
Banks have been advised to accept e-KYC service of UIDAI as a valid process for KYC
verification. The information including the photographs made available from UIDAI as a result of e-
KYC process to be treated as "Officially Valid Documents".
Monitoring of transactions

Banks are required to closely examine the transactions in order to ensure that they are consistent with
their knowledge of the client, his business and risk profile and where necessary, the source of funds.
Banks are also required to prescribe threshold limits for a particular category of accounts and pay
particular attention to the transactions which exceed these limits. Banks have to particularly guard
against the Money Mules - the innocent recruits or persons with fake documents.
Suspicious transactions

Transactions falling outside the regular, normal and reasonable pattern of activity of the customer will
be regarded as suspicious transactions. Unusually large transactions and all unusual patterns which
have no apparent economic or visible lawful purpose in regard to customer's proclaimed
business/income activity and transactions that involve large amounts of cash, inconsistent with the
normal and expected activity of the customer will qualify to be suspicious transactions. Banks are
required to be vigilant about these transactions.
Combating financing of terror

Banks are to develop suitable mechanism for enhanced monitoring of accounts suspected of having
terrorist links and swift identification of the transactions and making suitable reports to FIU-Ind on
priority. STRs should include suspected cases of terrorist financing. Banks have to be particularly
aware of the UNSCR enlisted individuals and entities and accounts and transactions are to be
monitored vis-? -vis the list. Any matching found is to be advised to MHA (UAPA - Section 51A).
Customer convenience

We are aware of the possibility that some of these guidelines can be irritating, burdensome to comply
with. Several representations and feedback were received to that effect as well. The Reserve Bank
therefore periodically reviews these instructions and modifies them, with a view to reduce the burden
and bring in ease of compliance, but at the same time ensuring the safety of the financial system and
the sanctity of financial transactions are not compromised.
Some of these modifications and adjustments are as follows:
Any one of the various documents listed would suffice for the identification and address
purposes ie one for identification and another one for address; If address is available in ID document,
single document is sufficient.
e-KYC service of UIDAI as a valid process for KYC verification. The information including
the photographs made available from UIDAI as a result of e-KYC process to be treated as "Officially
Valid Documents".
In respect of close relatives, e.g. wife, son, daughter and parents, etc. who live with their
husband, father/mother and son, etc., banks can obtain an identity document and a utility bill of the
relative with whom the prospective customer is living along with a declaration from the relative that the
said person (prospective customer) wanting to open an account is a relative and is staying with him/her.
Banks can use any supplementary evidence such as a letter received through post for further
verification of the address.
 Financial inclusion

We faced challenges in promoting financial inclusion with this KYC framework. Many of the
financially excluded may not have proper official document, especially that of address as in the case
of migrant people.
As per Customer Acceptance Policy guidelines, the CAP and its implementation should not be too
restrictive, and must not result in denial of banking service to public, especially to those who are
financially or socially disadvantaged. Banks have been advised not to deny public access to banking
services, taking the indicative list of documents as an exhaustive list.
What could be done if required documents are not available?

We have special provision for close family members as mentioned earlier. Small Accounts could be
opened by those who do not have the prescribed documents. Small Accounts can be opened with a
form filled up & signed before the bank officer with self-attested photograph - bank officer to certify.
The small accounts will have the following features: they will have limitations on
credit/debit/balance; will be available only at CBS-enabled branches; no foreign remittances will be
permitted; will be available only for 12 months - further extension on application for Officially Valid
Document; the aggregate of all credits in a financial year does not exceed One lakh; the aggregate
of all withdrawals and transfers in a month does not exceed ten thousand, and the balance at any
point of time does not exceed fifty thousand.
Additional documents + AEPS

Documents such as Aadhaar letter & NREGA Card are officially valid documents for identity
and address proof.
Aadhaar Enabled Payment System or AEPS developed by National Payments Corporation
of India allows a person with an Aadhaar number to carry out financial transaction on a Micro-ATM
provided by the Banking correspondent.
With AEPS, the account holders will be able to make balance enquiry, cash withdrawal, cash
deposit and Aadhaar to Aadhaar funds transfer.
To conclude

Do we need such elaborate structure? Is it not taking the question of safety too far? Are we paranoid
about terrorism and money laundering? Why we have to put ordinary customers of banks to such
greater and deeper requirements?
These are legitimate questions that can arise in your mind. But, we have to remember that we are
responsible citizens; we have to not only abide by the law, but also help enforcing the law. We are also
a responsible nation among the international community. We have obligations to the rest of the world
as well.
This KYC structure built by us is not of our own only; it is based on the consensual approach by all
the committed nations. It is for the general good of the citizens of the world.
We seek the understanding and the cooperation of all bank customers in complying with the KYC
requirements on an ongoing basis. No security comes free of cost or inconvenience. That said, it will
be our continued endeavour to minimize such cost and inconvenience. Reserve Bank is committed to
ease of operations by bank customers, while requiring the banks to be vigilant about nefarious designs
of anti-social elements and terrorists to use the banking and financial systems

PREVENTION IS BETTER THAN CURE

Introduction
Prevention is better than cure is a proverb which completely suits us in our daily sphere of life. It
teaches us to take preventive measures always in our life to get away from all sorts of dangers.
Preventive measures help us to save our health, effort, time and money. Preventive measures are very
essential in our life required to deal with the effects of bad circumstances regarding healthy life. It is
good to have preventive measures earlier than following them while getting affected with any type of
health disorder. So, we should take all the preventive measures before spreading of diseases.
Preventive measures are like drinking clean water, eating healthy diet at right time, washing hands
with soap before and after taking food, washing hands with soap after each and every use of toilet,
follow good habits of hygiene, taking daily bath, wearing clean cloth, taking proper sleep during
night, etc.

Importance of it in our Daily Life

This proverb prevention is better than cure has various importance in our daily life. Following it in
our life, we can be prevented from illness. It teaches us to adopt healthy habits of eating and living. It
teaches us to do everything in advance in order to avoid last moment harassment. We should plan our
all the activities for the project we have already decided to do in future. It helps us to prevent from all
the hazards that may occur because of our irregularity in the daily routine. For example, if we have
planned for holidays, we should plan and work accordingly to the trip for getting smooth travel. If we
eat easily digestible foods, our stomach will be healthy and calm. If we are not prepared for the exam,
we will get harassed at the exam time. So, we should make ourselves ready for all the circumstances.

Conclusion: Prevention is a big tool which helps us in many ways if we understand its real meaning
and follow its teachings in our daily routine all through the life. It benefits a lot than it means.

CONSOLIDATION IN THE INDIAN BANKING SECTOR BE A BOON OR

A BANE

The long-term benefits far outweigh short-term challenges.

A consolidated Indian banking structure would be a positive development in the long term for the
Indian banking system, says Fitch Ratings. "We believe that consolidation coupled with higher capital
requirements and governance reforms would position the banking system better in support of a more
open and higher-growth economy."

Here's more from Fitch Ratings:

The topic of consolidation has made media headlines following the Union budget and, more
recently, at the government's two-day meeting of Indian Public Sector Banks (PSBs) where the
topic was discussed.
 More stable banking systems tend to be structured around a number of large 'pillar' banking
groups. These large banks in a consolidated banking system enjoy scale benefits leading to better
diversification of risks and stronger overall profitability contributing to higher credit ratings.

Good examples in Asia-Pacific include Australia, Singapore, as well as some less developed
banking systems in Thailand and Malaysia.

In the Indian context, the financial systems would benefit from more banks of a similar size to
State Bank of India (SBI). The system is quite fragmented at present, with around 50 domestic
banks - with PSB's accounting for around a 70% asset share.

SBI has performed much better than its PSB peers through this credit cycle, thanks in part to
greater scale benefits which enhance pricing power from a funding perspective and
diversification. SBI has stronger capital ratios and is better positioned to absorb the asset-quality
issues that have plagued the sector.

Importantly, a well-structured banking system would be in a better position to support the growth
potential of the economy. The banking system would need sufficient lending capacity to fund
these large corporates as corporate India expands and extends its global reach.

Furthermore, private credit to GDP in India should rise from current levels of just over 50% as
the middle class grows and becomes more affluent, This would imply higher credit growth rates
relative to GDP over an extended period.

This evolution is not without risks, and so necessitates a system that is competitive, profitable
and well capitalised. Lastly, a consolidated system would also be in a better position to meet one
of the Indian government's key objectives of financial inclusion.

There will always be implementation challenges, as with any consolidation process, and so this
will require the commitment of all interested parties. It appears that momentum for change may
be building.

The long-term benefits far outweigh short-term challenges that tend to be associated with a
consolidation process that is forced on the sector. Unfortunately, when consolidation is not
executed on a voluntary basis, it then tends to be forced on the sector when it least wants to
entertain it.

However, notwithstanding the talk about potential consolidation, the need to address the PSB's
asset quality and potential capital shortfalls are the more immediate issues that need to be
addressed.

ROLE OF DIGITIZATION IN BANKING

What is meant by digitization :-

Digitization is the process of converting data into digital format. Digitalization means
the adoption of technology. But these two words are being used interchangeably.
Role of digitization in banking :-

Banks are not just a part of our lives, but have a significant role in our daily lives. For many,
day will not end without at least a single financial transaction. Thus banks always try to adopt
latest technologies to enhance customer experience.

Digitization is not an option for banking industry, rather it is inevitablebecause every industry
is being digitized and banking sector is no exception.

Mobile banking is increasing at a fast pace more than online banking.

Advantages of digitization in banking :-

Improved customer experience.

Reduction of costs for banks and customers as well by using ATMs, cashless
transactions etc.

With more digital data available with banks, they can take data-driven dynamic
decisions by using digital analytics. This benefits both customers and banks.

Technology is non-discriminatory. Everyone will be treated same at banks.

Number of customers will be increased for banks because of the

increased convenience of banking.

Digitalization reduces human error.

Need of handling large amounts of cash will be reduced.

Opening and maintaining bank accounts are never been this easier.

Repetitive tasks will be eliminated by automation.

Rural and urban gap will be eliminated.

With the increasing cashless transactions, fake currency threat will be reduced.

Productivity will be increased.

Disadvantages of digitization in banking :-

Digitalization reduces the effort of employees and hence results in loss of jobs.

Some bank branches may cease to exist with the increasing use of online banking.

Banks will be more vulnerable to cyber attacks.

 Privacy may have to be compromised. No one can hide crores of rupees in banks and
just act middle class.

These disadvantages are just temporary. Loss of jobs will be compensated through creation of
new jobs such as cyber security, research team for innovation in technology etc.

Its not that banks are going to have less work, but its just that the role of retail banking
sector changes.

Conclusion :-

With the increasing usage of smartphones, digitization of banking sector is inevitable to catch up
the increasing expectations of the world. It indeed reduced human errors and increased convenience.
But the fact that cyber threats are on the rise, banks must be very careful and should be prepared to
handle cyber attacks

DEMONETIZATION OF OLD 500 & 1000 RUPEES NOTES IS IT A

GOOD MOVE?
Background :-

On 8th November 2016, Indian Government demonetized 500 and 1000 rupee notes that are
in circulation, and announced the issuance of new 500 and 2000 rupee notes.

Time limit was set to exchange old notes with new ones.

Reasons for this move :-

To counter black money and fake currency. People who have black money cannot be able to
deposit the old currency easily. So black money can be taken out of circulation.

In Favor :-

A good chunk of black money will be taken out of circulation strengthening Indias economy.

This step will instill fear among the tax evaders that they are not inescapable if they follow
illegal practices.

This move is a big blow to the corruption, drug trafficking and smuggling, because all these
activities are carried out with black money.

Most of the fake currency will be out of the system.

Old notes are allowed to be paid for utility bills. In the one week span after the
demonetization move, lots of outstanding bills are cleared, which will have positive impact on
economy.

Supreme Court responded negatively to the petition asking for withdrawal of the
demonetization move and said that the move is laudable.
 With the inconvenience caused to farmers in the Rabi crop season, Govt of India relaxed the
demonetization rules and said that farmers can now buy seeds with the old 500 notes.

Common people should bear the inconvenience for the greater good of the society.

International response to this move is positive.

With this move, owners of informal organisations are more likely to register their
organisations to transform them into formal organisations. Thereby tax revenue for governments
will be increased.

Chattisgarh is the first state to pass notion supporting the demonetization move.

Against :-

It caused a lot of inconvenience to common people. People were forced to stand in long
queues at ATMs and banks as there was very low limit of withdrawal each time.

Still there are many Indians, especially in the below poverty line section that have no bank
accounts. They will have no other option, because one person can exchange old notes worth
Rs.2000/- only. Remaining amount can be deposited in the bank accounts.

People who are in emergency situations such as medical emergencies and marriage
ceremonies are suffering because of the present situation.

Cost of demonetization is more than its benefits. The expenditure for printing new notes and
the costs to carry out denomination move are very high.

Most of the black money may not be in terms of physical cash.

85% of transactions in India are cash transactions. So It may not be the right move to force
everyone towards cashless transactions all of a sudden.

Once the new notes come into circulation, the problem of black money may return to the
previous position.

The decision was one-sided. India is a democratic country. Democratic government shouldnt
take one-sided decisions like Monarchial governments.

This move caused temporary loss to workers in informal sectors. Because most of them get
wages per day in cash. Due to lack of physical cash, employers had to stop work for few days.

World Bank estimated that demonetization move will reduce GDP growth from the earlier
estimated 7.6% to 7% for the financial year 2016-17.

Delhi, Uttar Pradesh and West Bengal opposed the move.

Conclusion :-

Demonetization of higher denomination notes is a good move but with poor execution.
Government would have given alternatives for common people. It would have taken steps to avoid
inconvenience to commoners. But this move will surely strengthen Indias economy, which in turn
benefits common people.
 Merits-Demonetization favours Economy
Demonetization policy of the Government has been termed as the greatest financial reform
that aims to curb the black money, corruption and counterfeit currency notes.
All the people who are not involved in malpractices welcomed the demonetization as the right
move.
Demonetization will help India to become corruption-free as it will be difficult now to keep
the unaccounted cash.
Demonetization will help the government to track the black money and the unaccounted cash
will now flow no more and the amount collected by means of tax can be better utilized for the public
welfare and development schemes.
One of the biggest achievements of demonetization has been seen in the drastic curb of
terrorist activities as it has stopped the funding the terrorism which used to get a boost due to inflow
of unaccounted cash and fake currency in large volume.
Money laundering will eventually come to halt as the activity can easily be tracked and the
money can be seized by the authorities.
Demonetization will stop the running of parallel economy due to circulation of fake currency
as the banning of Rs.500 and Rs. 1000 notes will eliminate their circulation.
The unaccounted cash can be deposited in the Pradhan Mantri Garib Kalyan Yojana after
paying 50% tax. The money will remain deposited for 4 years with the bank without incurring any
interest. However, after 4 years the amount will be returned. This amount can be utilized for social
welfare schemes and making the life of low income groups better.
The Public Sector Banks which were reeling under deposit crunch and were running short of
funds have suddenly swelled with lot of money which can be used for future finances and loans after
keeping a certain amount of reserve as per RBI guidelines.
The people who opened the Jan Dhan accounts will now use their accounts and become
familiar with banking activitiy. The money deposited in these accounts can be used for the
developmental activity of the country.
The tax collected due to launch of demonetization policy will be put to developmental
activities in the country.
Demonetization has driven the country towards a cashless society. Lakhs of the people even
in remote rural areas have started resorting to use the cashless transactions. The move has promoted
banking activities. Now even the small transactions have started going through banking channels and
the small savings have turned into a huge national asset.
The high rising price pattern and inflationary trends which the Indian economy was facing are
taking a down turn making the living possible within low income group reach.

Demerits-Blow to economic growth and inconvenience all around

The very next day of announcing the demonetization, the BSE Sensex and NIFTY 50 stock indices
fell over 6%. The severe cash shortages brought detrimental impact on the economy. People trying to
exchange their bank notes had to stand in lengthy queues causing many deaths due to inconvenience
and rush.
The sudden announcement has made adverse impact on business and economy. Instead of a
growing economy India has become a standstill and no growth economy. It is fearedthat a fall of 2-3%
in the GDP growth will be recorded coming year.
India is an agriculture based economy. Due to the cash crunch, the farmers especially small
and marginal who largely depend on cash to buy seeds, fertilizers and to pay for sowing, borrowing
water for irrigation and for other related agriculture equipments remained worst affected and could
not complete the crop related activity.
Since small branches of the banks were also not supplied with adequate cash within time of
sowing season of the crop, farmers could not get their crop loans disbursed. This added to the woes of
the farmers leading to a weak agriculture production the coming year.
Real Estate sector came to a stand still and is still gasping for buyers of the constructed and
half constructed inventory without buyers. This has resulted in poor cash flow leading to a poor
demand.
 Demonetization has made the situation become chaotic. Tempers are running high among the
masses as there is a delay in the circulation of new currency.
Due to the inability to pay cash to poor daily wage workers, the small employers have stopped
their business activity.
The poor planning on the part of the government has also added to the woes of the common
people with low incomes. The Rs.2000 currency note does not find many takers as it is difficult to get
the balance back when you are buying daily needs like vegetables, milk, bread or paying for petty
expenses like bus fare. While rs.100 currency notes were not available in sufficient number, Rs.500
note arrived in the market very late.
Demonetization is the 2 way sword in regard to incurring the public expenditure. On the one
hand huge cost is to be incurred on printing the new currency and on the other hand managing the
lakhs of crores of old currency volume has also become a big expenditure incurring item.
Many Economists are of the view that Rs.2000 currency note will be much easier to hide and
can be used to store black money in shorter space.
Entire opposition has stood against demonetization and has called this decision a draconian
law.
Although the Government thinks that the demonetization will have favourable impact in future, the
present condition of uncertainty and chaos speaks otherwise.

FINANCIAL INCLUSION AND INDIA-CHALLENGES, OPPORTUNITIES

Financial inclusion may be defined as the process of ensuring access to financial services and timely
and adequate credit where needed by vulnerable groups such as weaker sections and low income
groups at an affordable cost (The Committee on Financial Inclusion, Chairman: Dr. C. Rangarajan).
Financial Inclusion, broadly defined, refers to universal access to a wide range of financial services at
a reasonable cost. These include not only banking products but also other financial services such as
insurance and equity products (The Committee on Financial Sector Reforms, Chairman: Dr.Raghuram
G. Rajan).

Need for Financial Inclusion According to the United Nations the main goals of inclusive finance
are as follows:
1. Access at a reasonable cost of all households and enterprises to the range of financial services for
which they are bankable, inc luding savings, short and long-term credit, leasing and factoring,
mortgages, insurance, pensions, payments, local money transfers and international remittances.
2. Sound institutions, guided by appropriate internal management systems, industry performance
standards, and performance monitoring by the market, as well as by sound prudential regulation
where required.
3. Financial and institutional sustainability as a means of providing access to financial services over
time.
4. Multiple providers of financial services, wherever feasible, so as to bring cost-effective and a wide
variety of alternatives to customers (which could include any number of combinations of sound
private, non-profit and public providers).

There has been a many objectives related to the need for financial Inclusion such as
1. Economic Objectives:
For the equitable growth in all the sections of the society leading to a reduction of disparities in
terms of income and savings the financial inclusion can serve as a boom for the underdeveloped and
developing nation.
2. Mobilisation of Savings:
If the weaker sections are provided with the facility of banking services the savings can be
mobilised which is normally piled up at their households can be effectively utilised for the capital
formation and growth of the economy.
3. Larger Market for the financial system:
 To serve the requirements and need of the large section of society there is a surgent need for the
larger market for the financial system which opens up the avenue for the new players in the financial
sectpr and can lead to growth of banking sector also.

4. Social Objectives:
Poverty Eradication is considered to be the main sole objective of the financial inclusion scheme
since they bridge up the gap between the weaker section of society and the sources of livelihood and
the means of income which can be generated for them if they get loans and advances.
5. Sustainable Livelihood:
Once the weaker section of society got some money in loan form they can start up their own
business or they can support their education through which they can sustain their livelihood. Thus
financial inclusion is turn out to be boom for the low income households.
6. Political Objectives:
There are certain other political objectives which can be achieved with the wider inclusion of
lower strata in the society and an effective direction can be given to the government programmes.
RBI has initiated several measures to achieve greater financial inclusion, such as facilitating no- frills
accounts and GCCs for small deposits and credit. Some of these steps are:
1. Opening of no-frills accounts: Basic banking no-frills account is with nil or very low minimum
balance as well as charges that make such accounts accessible to vast sections of the population.
Banks have been advised to provide small overdrafts in such accounts.
2. Relaxation on know-your-customer (KYC) norms: KYC requirements for opening bank
accounts were relaxed for small accounts in August 2005, thereby simplifying procedures by
stipulating that introduction by an account holder who has been subjected to the full KYC drill would
suffice for opening such accounts. The banks were also permitted to take any evidence as to the
identity and address of the customer to their satisfaction. It has now been further relaxed to include
the letters issued by the Unique Identification Authority of India containing details of name, address
and Aadhaar number.
3. Use of technology: Recognizing that technology has the potential to address the issues of outreach
and credit delivery in rural and remote areas in a viable manner,banks have been advised to make
effective use of information and communications technology (ICT), to provide doorstep banking
services through the BC An Analytical Study:Relevance Of Financial Inclusion...20 model where the
accounts can be operated by even illiterate customers by using biometrics, thus ensuring the security
of transactions and enhancing confidence in the banking system.
4. Adoption of EBT: Banks have been advised to implement EBT by leveraging ICT-based banking
through BCs to transfer social benefits electronically to the bank account of the beneficiary and
deliver government benefits to the doorstep of the beneficiary, thus reducing dependence on cash and
lowering transaction costs.
5. GCC: With a view to helping the poor and the disadvantaged with access to easy credit, banks have
been asked to consider introduction of a general purpose credit card facility up to `25,000 at their rural
and semi-urban branches. The objective of the scheme is to provide hassle-free credit to banks
customers based on the assessment of cash flow without insistence on security, purpose or end use of
the credit. This is in the nature of revolving credit entitling the holder to withdraw up to the limit
sanctioned.
6. Simplified branch authorization: To address the issue of uneven spread of bank branches, in
December 2009, domestic scheduled commerc ial banks were permitted to freely open branches in tier
III to tier VI centers with a population of less than 50,000 under general permission, subject to
reporting. In the north-eastern states and Sikkim, domestic scheduled commercial banks can now open
branches in rural, semi-urban and urban centers without the need to take permission from RBI in each
case, subject to reporting.
7. Opening of branches in unbanked rural centres:

To further step up the opening of branches in rural areas so as to improve banking penetration and
financial inclusion rapidly, the need for the opening of more bricks and mortar branches, besides the
use of BCs, was felt. Accordingly, banks have been mandated in the April monetary policy statement
to allocate at least 25% of the total number of branches to be opened during a year to unbanked rural
centres.
8. Engaging business correspondents (BCs):

In January 2006, RBI permitted banks to engage business facilitators (BFs) and BCs as intermediaries
for providing financial and banking services. The BC model allows banks to provide doorstep
delivery of services, especially cash in-cash out transactions, thus addressing the last-mile problem.
The list of individuals and entities that can be engaged as BCs is being widened from time to time.
With effect from September 2010, for-profit companies have also been allowed to be engaged as BCs.

Conclusion
For standing out on a global platform India has to look upon the inclusive growth and financial
inclusion is the key for inclusive growth .There is a long way to go for the financial inclusion to reach
to the core poor according to K.C.Chakrabarty RBI Deputy Governor Even today the fact remains
that nearly half of the Indian population doesnt have access to formal financ ial services and are
largely dependent on money lenders. Mere opening of no-frill bank accounts is not the purpose or the
end of financial inclusion while formal financial institutions must gain the trust and goodwill of the
poor through developing strong linkages with community-based financial ventures and cooperative.
Financial Inclusion has not yielded the desired results and there is long road ahead but no doubt it is
playing a significant role and is working on the positive side . India has, for a long time, recognized
the social and economic imperatives for broader financial inclusion and has made an enormous
contribution to economic development by finding innovative ways to empower the poor. Starting with
the nationalization of banks, priority sector lending requirements for banks, lead bank scheme,
establishment of regional rural banks (RRBs), service area approach, self-help group-bank linkage
programme, etc., multiple steps have been taken by the Reserve Bank of India (RBI) over the years to
increase access to the poorer segments of society.

BASEL III IMPLEMENTATION: A NEW CHALLENGE FOR INDIAN

BANKS

Basel III Norm (or the Third Basel Accord) is a global, voluntary regulatory framework on bank
capital adequacy, stress testing and market liquidity risk. It was agreed upon by the members of
the Basel Committee on Banking Supervision in 201011, and was scheduled to be introduced
from 2013 until 2015; however, changes from 1 April 2013 extended implementation until 31
March 2018 and again extended to 31 March 2019.
What are Basel III norms?
The third installment of the Basel Accords was developed in response to the deficiencies in
financial regulation revealed by the financial crisis of 200708. Unlike Basel I and Basel II,
which focus primarily on the level of bank loss reserves that banks are required to hold, Basel III
focuses on the risk of a run on the bank by requiring differing levels of reserves for different
forms of bank deposits and other borrowings.
What are the challenges in Basel III implementation?
Shyamala Gopinath, former Deputy Governor, Reserve Bank of India (RBI) on 31 st August, 2015
said that Indian banks are already adopting Basel-III norms in a phased manner and are steadily
progressing towards this global standard, while speaking on challenges in implementing Basel
III in India, at an Assocham event However, in her speech she poined out the following
challenges:
a) Capital: The first set of Basel III reforms agreed in later part of 2010 tackled the issue of
numerator part of regulatory capital ratio. While minimum total capital requirements were kept
unchanged at 8% of the RWA, the definition of various components of capital and its
composition were thoroughly revised to ensure that capital performs its intended role of loss
absorption. The minimum common equity requirement was raised from 2% level, before the
application of regulatory adjustments, to 4.5% after the application of stricter adjustments.
b) Liquidity: The second Challenge comes from Liquidity Framework. The global crisis
underscored the importance of liquidity management by banks. The apparently strong banks ran
into difficulties when the interbank wholesale funding market witnessed a seizure. The crisis
proved that and had it not been for central bank support, the crisis toll could have gone beyond
what we saw. The LCR and the NSFR Frameworks basically address this problem.
c) Technology: BCBS is in the process of making significant changes in standardized approach
for computing RWAs for all three risk areas. These revised standardized approaches them selves
will be quite risk sensitive and will be dependent on a number of computational requirements.
d) Skill Development: Its is a requirement both in the supervised entities and within the Reserve
Bank. Implementation of the new capital accord requires higher specialized skills in banks. In
fact it requires a paradigm shift in risk management. The governance process should recognize
this need and make sure that the supervised entity gears up to it.
e) Governance: Corporate governance will be the deciding factor in the ability of a bank to meet
the challenges. BCBS has added a separate principle on corporate governance in its core
principles for effective banking supervision which were revised in 2012.
What is the role of RBI in facilitating the Basel III norms?
The RBI had already considered that banks can reckon government securities (G-Secs) to the
extent permitted under the marginal standing facility (MSF) as level 1 high quality liquid assets
(HQLA).
Ms. Gopinath said, RBI has been progressively reducing the SLR requirements, which stands
now at 21.5 per cent. The suggestion to reduce further in view of new liquidity standards has
some merit.

Conclusions
It is more relevant at an economy's macro level to address issues such as systemic risk, market
discipline, liquidity and transparency in the risk-management framework. It is interesting to note that
though risk capital may be the necessary safety cushion for banks, capital alone may not be sufficient
to protect them from any extreme unexpected loss events. In reality, risk capital will remain only a
number and may not be effective if banks do not assess their risk periodically and take timely
corrective action when the risk exceeds the threshold limit. Thus, whether it is Basel II or Basel III, it
is crucial that a bank does not depend solely on "regulatory capital". What is needed is a dynamic risk
mitigation strategy, where all employees act as risk managers in their own area. A proper risk culture
needs to be developed across the organisation and " risk" should be an input for future business
decision-making. Risk management should not merely be an activity to comply with regulatory
requirements.

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

Constant product innovation to match the requirements of the customer segments

The customer database available with the banks is the best source of their demographic and financial
information and can be used by the banks for targeting certain customer segments for new or modified
product. The banks should come out with new products in the area of securities, mutual funds and
insurance.

Quality service and quickness in delivery

As most of the banks are offering retail products of similar nature, the customers can easily
switchover to the one, which offers better service at comparatively lower costs. The quality of service
that banks offer and the experience that clients have, matter the most. Hence, to retain the customers,
banks have to come out with competitive products satisfying the desires of the customers at the click
of a button.

Introduction of new delivery channels

Retail customers like to interface with their bank through multiple channels. Therefore, banks should
try to give high quality service across all service channels like branches, Internet, ATMs, etc.

Tapping of unexploited potential and increasing the volume of business

This will compensate for the thin margins. The Indian retail banking market still remains largely
untapped giving a scope for growth to the banks and financial institutions. With changing psyche of
Indian consumers, who are now comfortable with the idea of availing loans for their personal needs,
banks have tremendous potential lying in this segment. Marketing departments of the banks be geared
up and special training be imparted to them so that banks are successful in grabbing more and more of
retail business in the market.

Infrastructure outsourcing

This will help in lowering the cost of service channels combined with quality and quickness.

Detail market research

Banks may go for detail market research, which will help them in knowing what their competitors are
offering to their clients. This will enable them to have an edge over their competitors and increase
their share in retail banking pie by offering better products and services.

Cross-selling of products

PSBs have an added advantage of having a wide network of branches, which gives them an
opportunity to sell third-party products through these branches.

Business process outsourcing

Outsourcing of requirements would not only save cost and time but would help1the banks in
concentrating on the core business area. Banks can devote more time for marketing, customer service
and brand building. For example, Management of ATMs can be outsourced. This will save the banks
from dealing with the intricacies of technology.

Tie-up arrangements

PSBs with regional concentration can reap the benefit of reaching customers across the country by
entering into strategic alliance with other such banks with intensive presence in other regions. In the
present regime of falling interest and stiff competition, banks are aware that it is finally the retail
banking which will enable them to hold the head above water. Hence, banks should make all out
efforts to boost the retail banking by recognizing the needs of the customers. It is essential that banks
would be imaginative in predicting the customers expectations in the ever-changing tastes and
environments. It is the innovative and competitive products coupled with high quality care for clients
will only hold the key to success in this area. In short, bankers have to run very fast even to stay
where they are now. It is the survival of the fastest now and not only survival of the fittest.
DIFFERENCE BETWEEN RETAIL AND WHOLESALE BANKING

Those days are gone when banking referred to only one thing that is a place where savers can deposit
money and borrower take loan when they are in need of funds, however nowadays banking has
changed completely and it encompasses many things. Retail and wholesale banking are two of them;
lets look at some of the differences between retail and wholesale banking

1. Retail banking refers to that banking which targets individuals and the main focus of such
banks is retail customer whereas wholesale banking refers to that banking which targets corporate
or big customers and their main focus is providing services to corporate clients.

2. Ticket size of loans given in retail banking is low and due to it impact of NPA will be less
pronounced due to diversification as compared to wholesale banking where ticket size of loan is
very high and due to it impact of NPA is more pronounced.

3. Loans such as car, housing, educational, personal loans are some of the examples of loans
given in retail banking whereas loans such as loan for setting industry, machinery advance, export
credit are some of the examples of loans given in wholesale banking.

4. Monitoring and recovery if the loan turn out to be NPA in retail banking is more difficult
because customer base is wide whereas in case of wholesale banking due to low customer base it is
easy to monitor as well recover the loan given to customers.

5. Cost of deposit is low in retail banking because retail customers do not have the bargaining
power due to less deposit with them whereas in case of corporate customers banks have to offer
them high interest rates in order to attract funds from them.

6. Retail banking requires large network of branches in order to cater to large customer base and
hence it results in high operational costs while in case of wholesale banking small number of
branches is sufficient to cater to corporate clients.
 INCREASING NON INTEREST INCOME

We all know that banks generate income on interest, lending money, and collection fees. What many
people dont know is that banks also make money from other sources not related to interest.

This is where product specialists and bank executives earn their money, as it takes creativity and
strong product adoption to make these non-interest revenue generators work and grow.

Below are 5-examples of things banks do to generate money from non-interest sources. We also
include tips on how to grow each.

1. Debit Card Fees

Debit cards are perhaps the biggest non-interest revenue stream for banks. It is incredibly profitable
for Visa, MasterCard and the bank of issuance. As anyone whos ever accepted a card payment before
knows, there is a processing fee of between 2-5% on all transactions. The issuing bank gets a portion
of the processing fee in addition to a flat fee ranging between 10-24 cents. There are federal
regulations in place that limit the size of the fee banks can collect based on the banks size. Big banks,
defined as $10 billion or more in assets are capped at around 21 cents plus 0.05% of transactions.
Smaller banks with fewer assets can charge a higher percentage and flat fee.

Increasing this stream

The only way to do this is to increase the volume of customers with a debit card and how often they
spend with that card. Ever wonder why they advertise a seemingly free product so heavily? Well,
now you know!
2. The World of Fees (overdraft, processing, application etc)

If you werent sick of fees after the last point, let me try again. Banks make money by charging you
fees for account servicing and the always popular overdraft fee. At Bank of America for example, that
overdraft fee is $35. Plus if you stay negative for 5-business days they tack on another $35. Over the
scope of many millions of people, that quickly builds bank profits quite nicely.

Increasing this stream

Offering overdraft protection so people can get what amounts to a small credit card built into their
checking account is really how banks build this stream up.
3. Subscription Services

Subscription services are bank offerings that charge on an ongoing fee per month, such as payroll
services for example. Many banks handle payroll for a set amount per month for each employee.

Increasing this stream

Many of these services are geared toward commercial customers like the payroll feature referenced
above. Ramping up B2B marketing and building relationships with those customers is the best way to
increase this form of revenue.
4. Free checking accounts

Free checking accounts are the hook on the end of the banks fishing pole. They provide the in with
customers and get people in the door. The goal with these accounts is to play on the desire of most
consumers to have all their financial services handled under 1-roof. If you can be that roof with a free
checking account, other more lucrative spending will follow.

Increasing this stream

While these accounts dont generate revenue onto themselves, most banks are equipped to handle 2-3
times more accounts than they have. Focusing on younger parents between 29-40 is a great way to
 target families, who will most likely open bank accounts for their children once they reach an age
where they need one.
5. Merchant Services (mobile payment, credit card processing centers)

As more people open small businesses, the need to process electronic payments continue to rise.

Increasing this stream

Much like subscription services, growing this sector is best accomplished when you target your
marketing to the B2B sector. Mobile payment options tend to target the younger and on-the-go
businessman, so it may be a good idea to channel the marketing to the millennial crowd.