Chapter- 1

Indian Banking Industry

1.1 Introduction

Indias Rs 77 trillion (US$ 1.30 trillion) banking industry is well at par with global
standards and norms. Prudent practises and conventional framework adopted by the
regulator, Reserve Bank of India, have insulated Indian banks from the global financial
crisis.
The country has 87 scheduled commercial banks with deposits worth Rs.71.6 trillion
(US$ 1.21 trillion) as on 31 May, 2013. Of this, 26 are public sector banks, which
control over 70 per cent of Indias banking sector, 20 are private banks and 41 are
foreign banks. Of the total, 41 banks are listed with a total market capitalisation of
Rs.9.35 trillion (US$ 158.16 billion) as per the recent statistics.
According to the RBIs Quarterly Statistics on Deposits and Credit of Scheduled
Commercial Banks, September 2012, Nationalised Banks accounted for 52.0 per cent
of the aggregate deposits, while the State Bank of India (SBI) and its Associates
accounted for 22.3 per cent. The share of New Private Sector Banks, Old Private Sector
Banks, Foreign Banks, and Regional Rural Banks in aggregate deposits was 13.6 per
cent, 4.8 per cent, 4.3 per cent and 2.9 per cent, respectively.

Nationalised Banks accounted for the highest share of 50.9 per cent in gross bank credit
followed by State Bank of India and its Associates (22.1 per cent) and New Private
Sector Banks (14.7 per cent). Foreign Banks, Old Private Sector Banks and Regional
Rural Banks had shares of around 4.9 per cent, 4.9 per cent and 2.6 per cent,
respectively.
India's foreign exchange (forex) reserves stood at US$ 280.19 billion for the week
ended July 12, 2013, according to data released by the central bank. The value of
foreign currency assets (FCA) - the biggest component of the forex reserves stood at
US$ 252.14 billion, according to the weekly statistical supplement released by the RBI.

1
 The number of mobile banking transactions doubled to 5.6 million in January 2013
from 2.8 million in January 2012. The value of these transactions increased three-times
to Rs 625 crore (US$ 105.73 million) during the month from Rs 191 crore (US$ 32.31
million) in the corresponding month last year.
Moreover, non-resident Indians (NRIs) parked deposits aggregating US$ 14.18 billion
in the financial year ended March 2013, depicting an increase of 19 per cent over the
previous year.
India's leading infrastructure development and finance company Infrastructure Leasing
& Financial Services Limited (IL&FS), has inked a Memorandum of Understanding
with Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), for
mutual cooperation in infrastructure project development services and financial
services related thereto.
The agreement envisages a scope of cooperation between the two financial entities for
providing infrastructure project development services, including financial services
relating thereto, trade, corporate banking, investment banking and treasury related
services, debt raising, advisory and other form of permissible economic cooperation
for such projects across Northern and Eastern Asia and is expected to facilitate more
business opportunities for both the institutions in these geographies.
Meanwhile, Standard Chartered Bank has announced that it will buy US-based Morgan
Stanleys domestic private wealth management business. The deal, to be completed by
the end of 2013, would boost Standard Chartereds private wealth assets under
management by 25 per cent or about US$ 750 million.
Marking another milestone in achieving financial inclusion, Vodafone India and ICICI
Bank have partnered to launch a mobile money transfer and payment service, M-Pesa.
The service will allow customers to transfer money to any mobile phone in India, remit
funds to bank accounts, deposit and withdraw cash from designated outlets, pay utility
bills, and shop at select merchant establishments.

The new service will initially be offered in West Bengal, Bihar and Jharkhand through
8,300 authorised agents. It will be made available across India by 2014-15.

2
 Public sector lender SBI intends to make a strong position in refinance market in 2013.
The bank offers lowest lending rates for buying homes. The fast growing market of
home loans transferred from other banks consists 25 per cent of the total home loans
disbursed by the bank in FY13. SBI made Rs 30,000 crore (US$ 5.08 billion) of home
loans in 2012-13.
Meanwhile, US-based Customers Bancorp Inc (CUBI) has plans to infuse US$ 51
million in multiple securities of Religare Enterprises Ltd. Religare is currently aspiring
for a banking licence to enter the banking industry. The investments will take place
through a combination of primary and secondary market transactions.

Indias central bank is about to propose fundamental changes in the structure of Indian
banking industry. The suggestions include consolidation of some large banks to create
two-three global ones, setting up of smaller banks, separate licenses for specific
banking operations instead of a single universal one, continuous licensing for new
banks and conversion of some urban cooperative banks into full-fledged commercial
banks.
Also, the RBI has, for the time being, relaxed the norm that stipulates non-banking
finance companies (NBFCs) to have a minimum gap of six months between two non-
convertible debentures (NCDs) issues. The move is aimed at streamlining the process
of moving into a more robust asset-liability management framework in a non-disruptive
manner.
Over the past few years, Indian banking system has majorly went revamp and
modernisation. The new infrastructure adopted by the banking system is mainly
comprised of information technology (IT) products and services.
Indian banking and securities companies will spend around US$ 422 billion on IT
products and services in 2013. That will imply a 13 per cent rise from Rs 37,300 crore
(US$ 6.31 billion) spent in 2012. IT services is the largest overall spending category at
Rs 13,200 crore (US$ 2.23 billion) in 2013. This ensures that IT service providers lay
a strong focus on the financial services sector, according to a study by research and
analyst firm Gartner.

3
History

Banking refers to the development of banks and banking throughout history, with
banking defined by contemporary sources as an organization which provides facilities
for acceptance of deposits and provision of loans. The first prototype banks were the
merchants of the world, who made grain loans to farmers and traders who carried
goods between cities. This began around 2000 BC in Assyria and Sumeria. Later,
in ancient Greece and during the Roman Empire, lenders based in temples made
loans, while accepting deposits and performing the change of money. Archaeology
from this period in ancient China and India also shows evidence of money
lending activity. Many histories position the crucial historical development of a
banking system to medieval and Renaissance Italy and particularly the affluent cities
of Florence, Venice and Genoa. The Bardi and Peruzzi Families dominated banking
in 14th century Florence, establishing branches in many other parts of Europe. The
most famous Italian bank was the Medici bank, established by Giovanni Medici in
1397. The oldest bank still in existence is Banca Monte dei Paschi di Siena,
headquartered in Siena, Italy, which has been operating continuously since 1472.

The development of banking spread from northern Italy throughout the Holy Roman
Empire, and in the 15th and 16th century to northern Europe. This was followed by a
number of important innovations that took place in Amsterdam during the Dutch
Republic in the 17th century, and in London since the 18th century. During the 20th
century, developments in telecommunications and computing caused major changes
to banks' operations and let banks dramatically increase in size and geographic
spread. The financial crisis of 20072008 caused many bank failures, including some
of the world's largest banks, and provoked much debate about bank regulation.

4
 Objective
To evaluate the services provided to their customers.

To study the consumer satisfaction from services of Punjab & Sind Bank.

To evaluate that in which field more changes are needed.

Research Methodology

A research design is a conceptual structure within which research is conducted. A

descriptive research study is done, which is concerned with describing the
characteristics of a particular individual or a group.

Project Definition

Banks provide various services to their customers to retaining them for long time and
to carry out their business for survive in the market. This project is an attempt to study
loans, insurance, accounts, money transfers etc. offered by Punjab and Sind Bank and
level of customer satisfaction regarding these schemes.

Sample Design

i. Population

To study the satisfaction of customers regarding services of Punjab and Sind Bank who
have over 20,000 accounts in D0291 Najafgarh New Delhi-43 branch.

ii. Sample Size

Sample size for the study is 50 Account holder of the bank.

iii. Sampling Technique

In this study Judgment Sampling technique has been used to draw sample from
universe.

5
 Data Collection Design
Sources of Data

Both primary and secondary source of data has been used to collect information.

Primary data was collected of Punjab and Sind Bank, D0291 Najafgarh New Delhi-
110043. The data explained about different products/services being offered by their
bank. Questionnaire was prepared to study the customers satisfaction regarding
services offered by the bank (questionnaire is attached as annexure and interpretation
is given).

Secondary data was collected by making extensive use of the internet. The data was
also collected from various books, journals, publications and annual report of the bank.

Technique of Data Collection

Data was also collected by personally interviewing the customers of the bank and
through questionnaire.

6
 Chapter- 2

PUNJAB AND SIND BANK

2.1 Profile
Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in New
Delhi. Of its 1466 branches spread throughout India, 623 branches are in Punjab state.
Its net profit is Rs. 121.35 crores and net NPA is 3.55% for the year ending 2014-15.
The bank's operating profit for the year ending 2014-15 is Rs. 775.45 crores. Total
business of the bank was Rs. 1,51,511 crores for the year ending 2014-15 and Business
per employee is Rs. 15.95 crore. The net worth of the bank as on 31.03.15 is Rs. 4812
crore.

2.2 History

On 24 June 1908, Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan
Singh established Punjab & Sind Bank.

On 15 April 1980 Punjab & Sind Bank was among six banks that the Government of
India nationalised in the second wave of nationalisations. The first wave had been in
1969 when the government nationalised the top 14 banks.

In the 1960s Punjab & Sind Bank established a branch in London. In 1991 Bank of
Baroda acquired Punjab & Sind Bank's London branch at the behest of the Reserve
Bank of India following Punjab & Sind's involvement in the Sethia fraud in 1987.

Since 2004 Punjab & Sind has shown growth of over 40% year on year, and its recent
IPO was oversubscribed by more than 50 times. Recently the bank crossed a mark of
Rs 1 lac crore in business.

The bank was founded on the principle of social commitments to raise the standard of
living of the poor. It was started as a single branch in Hall Bazaar, Amritsar. Decades
have gone by; even today Punjab and Sind Bank stands committed to honour the social
7
commitments of the founding fathers. To start with the bank had its branches in
Gujranwala, Lahore, Rawalpindi and Layalpur. The bank extended its helping hands to
Punjabis. The bank also contributed its rights to serve social cause. The bank helped
many educational institutes to come up. The bank also worked for growth of Punjabi
language and Punjabi culture.

The partition of the country in 1947 caused a heavy loss to the Punjabis in general and
Punjab and Sind Bank in particular. Out of the total ten branches which the bank had
in undivided Punjab, eight were in the area now forming part of Pakistan. Only two
branches namely registered office at Amritsar and another branch at Ludhiana were in
India. The head office of the bank tried its best to recover the valuable from branches
left in Pakistan but unfortunately nothing substantial could be salvaged.

The period from 1968 to 1978 could truly be called a golden era of Punjab and Sind
Bank. This was a period of rapid growth and achievements. In this decade, the bank
achieved tremendous results in all spheres banking. From a meager figure of Rs. 5.39
crores of deposit in 1968, the bank touched the mark of Rs. 150.31 crore in 1975 in a
single year and number of branches increased to 356 besides six extension counters.

The bank continued unabated on its branch expansion programme and in the year 1979
alone the bank opened 81 new branches. The bank opened 400 th branch on 17th
December 1976 at Amritsar, the city where the bank was founded in 1908. The bank
which was operation mainly in the state of Punjab and in a small way in Delhi, Uttar
Pradesh and Haryana, spread its wings all over the country. The bank had also opened
its branch in South Hall, London in May 1977. This was a matter of pride for the
institution that it was amongst the first in private sector banks who were allowed by
RBI to open an office there. On 16th April 1980, the bank was nationalized along with
five other banks.

8
2.3 Corporate Vision

We envision to emerge as a strong vibrant Bank through the implementation of

effective Risk Management and Internal Control Systems through synchronization of
the human, financial and technological resources.

2.4 Corporate Mission

To put in place the effective Risk Management and Internal Control Systems.
To adopt and operationalize high-level technology standards.
To strive to achieve excellence in Customer Service.
To achieve the highest standards of transparency and accountability in the conduct of
banking business.
To adopt professional approach in effectively managing financial as well as non-
financial risks. To maximize profitability and profits of the Bank with due compliance
of prudential guidelines. To maximize competitive risk adjusted return on capital,
through planned reduction in the average cost of funds, increased yield on advances
and investments besides reduction in cost of operations.

2.5 Branch Network

The corporate office of the bank is situated at Rajendra Place, New Delhi with 19
zonal offices (as on 30.09.2004) scattered in various states controlling the branches.

The Bank has a vast network of 813 branches and 76 extension counters (as on
31.03.2006) spread all over India catering to the needs to all section of society
irrespective of their social and economic strata. These branches are manned by a
dedicated work force of 9778 personnel.
In line with the spirit of liberalisation, the Bank is laying special stress on International
Banking Divisions, Merchant Banking, Hire Purchase and Leasing, Telebanking &
Credit Card.
9
2.6 Business Areas of the Bank
Banks primary business is taking deposits, and making advances and investments, and
is principally divided into retail banking, corporate banking, priority sector banking,
treasury operations and other banking services such as agency functions for insurance,
distribution of mutual funds and pension and tax collection services.
The bank has various deposit products, such as current, savings and term deposits for
its customers. In retail banking, bank provides loan and advances for housing, trade,
automobiles, consumer durables, education and personal loans. It provides commercial
banking products and services to corporate customers, including midsized and small
businesses and government entities.
In corporate banking, its loan products include term loans to finance capital expenditure
of assets across various industries as well as shortterm loans, cash and export credit
and other working capital financing and bill discounting facilities.
The bank also provides credit substitutes, such as letters of credit and guarantee. It also
engages in syndication of loans provided by other financial institutions and other fee
based services such as cash management and remittance services.
In the priority sector, the banks offers direct financing to farmers for production, as
well as indirect financing for infrastructure development and credit to suppliers of
agricultural inputs. It also offers a wide range of general banking services to our
customers including ATM cards, cash management, remittance services and collection
services.
Punjab & Sind Bank also distributes thirdparty products such as life and nonlife
insurance policies through corporate agency agreements with Aviva Life Insurance
Company India Private Limited and Bajaj Allianz, respectively, and mutual funds with
UTI AMC through a distribution agreement. It also acts as an agent for various state
governments and the GOI on numerous matters including the collection of taxes and
payment of salary and pension.

10
 2.7 Major Events

1908 Incorporated as Punjab and Sind Bank Limited in Amritsar, Punjab.

1975 Aggregate deposits with the Bank exceed 150 crore.
1979 Number of branches cross 500
1980 Nationalized along with five other banks and constituted as a corresponding new
bank as per the Bank Acquisition Act
1986 Sutlej Gramin Bank established as a regional rural bank with effect from March
22, 1986, in the state of Punjab, under the name Faridkot Bathinda Kshetriya Gramin
Bank.
1999 The paidup capital of the Bank was reduced by Rs 462.47 crore for write down
of investments for adjustment of losses 2006 Total business of the Bank for financial
year 200506 crosses ' 25,000 crore.2008 Highest percentage of growth in advances
of 56.28% among all public sector banks in India Gross NPAs dropped to less than
1.00% for financial year 200708.The equity capital of the Bank was restructured by
converting an amount of Rs 160.00 crore into IPDI, Rs 200.00 crore into PNCPS and
Rs 200.00 crore into PCPS, while retaining Rs 183.06 crore as the equity capital.
2009 Total business of the Bank for financial year 200809 crosses Rs 50,000 crore.
2010 Total business of the Bank crosses Rs 81,000 croreNet profit of the Bank
crosses Rs 500.00 crore Joined the NFSFirst CBS branch rolledout on June 24,
2010Entered into a memorandum of understanding with the Unique Identification
Authority of India to provide assistance in the implementation of project for assignment
of unique identification numbers.

Performance and Achievements

The total business of the Bank was up by 26% as on 31, March 2006.
The bank earned a Net Profit of Rs.108.32 Crore in the last fiscal year.
The total advances of bank were up by 40.53%.
The total deposits of bank were up by 19.43%.

11
 The total NPAs were down from 8.11% to 2.43%.
It is the first bank in Northern India to get ISO 9002 certification for our selected
branches.
In the spirit of liberalization, the bank lays special stress on international banking,
merchant banking, hire purchase, leasing, tele-banking and credit cards.
2.8 Awards/ Certifications/ Recognitions
In the annual Business TodayKPMG survey of Best Banks in India 2008, the bank
was ranked number one on the list of Small Sized Best Banks in India (i.e. banks with
a then balance sheet size of less than 24,000 crore).

2.9 Financial Performance

FY FY
# Particulars 2016- 2015-
17 16

85,54 91249.
A Deposits (' INR crores)
0.16 96

60,26 65277.
B Advances (' INR crores)
3.09 22

1,45,
Total Business (A+B) (' 1,56,5
C 803.2
INR crores) 27.18
5

12
 Total Assets (' INR 97,75 94,509
D
crores) 3.40 .15

Operating Profit (' INR 1241. 1269.8

E
crores) 88 9

201.0
F Net Profit(' INR crores) 335.97
8

Business/Employee ('
G
INR crores)

Net Interest Margin

H 2.16 2.22
(NIM) (%)

I Return on assets (%) 0.20 0.34

J Gross NPAs (%) 10.45 6.48

K Net NPAs (%) 7.51 4.62

L Total Branches 1506 1400

M Total ATM's 1400 1300

13
Type Public

Traded as BSE: 533295

NSE: PSB

Industry Banking
Financial services

Founded 24 June 1908; 109 years ago

Headquarters Rajendra Place New Delhi, India

Key people S.Jatinderbir Singh (CEO&MD.), M.K.Jain (E.D.), A.K.

Jain (E.D.)

Products Finance, FOREX, Retail Banking

Revenue 8,744.34 crore(US$1.4 billion)(2016)[1]

Operating 1,270 crore(US$200 million)(2016)[1]

income

Net income 335.97 crore(US$52 million) (2016)[1]

Total assets 102,581.42 crore(US$16 billion) (2016)[1]

Owner Government of India

Number of 9,403 (2016)

employees

Capital ratio 10.91% (2016)

Website www.psbindia.com

14
 Chapter- 3

Services offered by Punjab & Sind Bank

3.1 Types of Insurance

Endowment Policy

There is a savings quotient linked to such policies. They come with a specified
maturity period, as decided by the insurer. On the occurrence of any unforeseen
event of the death or permanent disability, during the tenure of the policy; the sum
assured will be received by the said beneficiaries to the policy. If the insured
survives the term of the policy, the agreed maturity benefits become payable.

Term Insurance

Policy offers coverage only for a set period of time. On the occurrence of death or
permanent disability during the tenure of the plan, the beneficiaries will be paid benefits
to cover income loss or unpaid debt. Disability can be both partial and total, depending
on the type of plan. However, if the insured survives the term of the plan, no such
benefits are paid.

Money Back Plans

In these types of plans, a portion of the agreed and payable sum assured is returned to
the insured person by the insurance company. This payment is made on a periodical
basis, in the form of a survival benefit. When the term expires, the outstanding sum
assured is paid as a maturity benefit. However, life risk is covered for the entire amount
of the agreed sum assured, even if a portion of the benefits has already been paid.

15
Whole Life Insurance

Unlike a term insurance policy, whole life plans strive to give you lifelong protection.
Such cover comes with death benefits, meaning your family can continue to be
financially stable after your death. It also comes with maturity benefits, after the expiry
of the term. Most people use this type of policy to create an inheritance or estate for
their children.

Childrens Policies

These plans can be taken in the name of the child or the parent. However, it is only for
the benefit of the child. This helps parents mobilize finances when the child reaches a
particular age or stage of life.

Annuity Plans

Just like a term insurance policy, this type of insurance aims at covering income loss.
After retirement, an individual is cut-off from a regular source of income, and any
benefits, like gratuity or provident funds, run the risk of getting exhausted quickly.
Pension is a model provision for safe-guarding retirement, as the benefit is like a regular
income. So, it is best to get pension plans in order to ensure financial independence
after retirement.

2.2 Types of Account

Current Account

Current Account is one of the two components of its balance of payments, the other
being the capital account (sometimes called the financial account). The current account
consists of the balance of trade, net primary income or factor income (earnings on
16
foreign investments minus payments made to foreign investors) and net cash transfers
that have taken place over a given period of time. The current account balance is one
of two major measures of a country's foreign trade (the other being the net capital
outflow). A current account surplus indicates that the value of a country's net foreign
assets grew over the period in question, and a current account deficit indicates that it
shrank. Both government and private payments are included in the calculation. It is
called the current account because goods and services are generally consumed in the
current period.

As required by law, while opening this account, we satisfy ourselves about the identity,
including verification of address, of a person(s) seeking to open an account to assist in
protecting the right of customer(s) and ourselves against fraud and other misuses of the
banking system. We also require a satisfactory introduction of the person(s) opening
the account by a person acceptable to the Bank and will require to obtain two recent
photographs of the person(s) opening/operating the account, as per RBI directives. You
are required to give Permanent Account Number (PAN) or alternatively obtain
declaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139A) from
the person(s) opening the account (i.e. including partners of Registered/Unregistered
partnership as also Registered / Incorporated bodies / companies). We provide to our
prospective customers details of the documents/required for identification of the
person(s) opening the account. In addition to a satisfactory introduction. Documents
normally accepted are the current, gas/telephone/electricity bill/ration card/voter's
identity card/driving licence/passport, etc. Minimum balance as stipulated from time to
time is required to be maintained and no interest is paid on credit balances kept in
current account. For opening special types of current accounts like for Executors
Administrators, Trustees, Liquidators, etc., the Branch Manager may be contacted who
will help in opening these type of accounts. As per RBI directives, the applicant should
declare in the account opening form or separately that he is not enjoying any Credit
facility with any Bank and if he does enjoy any facility/facilities he should declare full
particulars therefore indicating the name of the Bank and name of the Branch,
wherefrom he has availed these facilities.

17
 Saving Account

Savings Account is a deposit account held at a retail bank that pays interest but cannot
be used directly as money in the narrow sense of a medium of exchange (for example,
by writing a cheque). These accounts let customers set aside a portion of their liquid
assets while earning a monetary return. In some jurisdictions, deposits in savings
accounts do not incur reserve requirements.

Under the RBI direction to achieve greater financial inclusion Bank has since
introduced a no frill deposit account named as "Saral Savings Scheme that would
make accessible banking to vast section of society, which has been deprived of the
banking facilities till date. Basic feature of the account shall be as under:-

Such accounts shall remain operative even when these have Zero balance & can be
opened in any branch of the bank

"Saral Savings Account" can be opened with the initial deposit of Rs100/- and
thereafter the balance may go below Rs 100/- and will continue to be operative with
even zero balance, unless the account holder request to close the account. No charges
shall be levied in this regard.

Target Customers
Landless labour / Artisans in the rural areas/House wives not having regular income.

Casual labour / Daily wage earners in construction / Industries etc. earning small
amount daily.

Students having no sound financial background, having no resources and least chances
of the saving opportunities.

Similar other segments of society who do not have regular employment and permanent
residential occupancy.

These accounts shall come under the category of the normal saving bank account, once
the balance is enough to qualify under KYC norms.

This product is not for Non Resident Indians, Trusts and Societies etc.

18
 The account can be opened by filling up of usual Saving Bank Accounts Opening forms
and self-verified photograph to be attached.

Introduction of the account

An account holder qualifying KYC norms whose account is at least six month old with
satisfactory operations may introduce the account.

Any other evidence as to the identity and address of the customer to the satisfaction of
branch incharge.

Operational Stipulation

Cheque Book will not be issued to this account holder, however on requisition loose
cheque may be issued. Manager cheque / Demand Draft / MT may be issued on request
of the account holder after satisfaction that transaction is genuine but each instrument
not to exceed Rs 3000/-. Usual bank charges to be levied for issue of these instruments.

Number of withdrawals permitted -'FIVE' in a month and 'TWENTY' per half year.

For each transaction account holder has to come personally to the branch.

Persons above the age of 15 and below 18, who is able to read and write may open such
account only in his / her own name or jointly with any person / guardian. In such
account guidelines shall be same as applicable on savings bank account. Interest is
payable at the rate applicable as per saving bank account. However no interest is
payable until the balance in the account is Rs 500/-.

Credit balance in account is not expected to exceed Rs 50000/- OR the total credits are
not expected to exceed Rs100000/- in a year, if KYC norms not complied with. No
further transaction will be permitted till compliance of KYC norms if at any point in
all his accounts balance exceeds Rs 50000/- ( Fifty Thousand) or total credits in the
account exceeds Rs 100000/-(One Lac) no further transaction will be permitted till
compliance of KYC norms .

No Collection of cheque is permitted in these accounts. However, if any cheque is

brought for collection then customer is to satisfy KYC norms. Normally transfer and
clearing is not allowed.

19
Fixed Deposit

Fixed Deposit is a financial instrument provided by banks which provides investors

with a higher rate of interest than a regular savings account, until the given maturity
date. It may or may not require the creation of a separate account. It is known as a term
depositor time deposit in Canada, Australia, New Zealand, and the US, and as
a bond in the United Kingdom and India. They are considered to be very safe
investments. Term deposits in India and Pakistan is used to denote a larger class of
investments with varying levels of liquidity. The defining criteria for a fixed deposit is
that the money cannot be withdrawn from the FD as compared to a recurring deposit or
a demand deposit before maturity. Some banks may offer additional services to FD
holders such as loans against FD certificates at competitive interest rates. It's important
to note that banks may offer lesser interest rates under uncertain economic conditions.
The interest rate varies between 4 and 11 percent. The tenure of an FD can vary from
7, 15 or 45 days to 1.5 years and can be as high as 10 years. These investments are safer
than Post Office Schemes as they are covered by the Deposit Insurance and Credit
Guarantee Corporation. However, DICGC guarantees amount up to 1,00,000 per
depositor per bank. They also offer income tax and wealth tax benefits.

Recurring Deposit

Recurring Deposit is a special kind of Term Deposit offered by banks in India which
help people with regular incomes to deposit a fixed amount every month into their
Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. It
is similar to making FDs of a certain amount in monthly instalments, for example
1000 every month. This deposit matures on a specific date in the future along with all
the deposits made every month. Thus, Recurring Deposit schemes allow customers
with an opportunity to build up their savings through regular monthly deposits of fixed
sum over a fixed period of time. Minimum Period of RD is 6 months and maximum is
10 years.

20
The Recurring Deposit can be funded by standing instructions which are the
instructions by the customer to the bank to withdraw a certain sum of money from his
Savings/ Current account and credit to the Recurring Deposit account.

When the RD account is opened, the maturity value is indicated to the customer
assuming that the monthly instalments will be paid regularly on due dates. If any
instalment is delayed, the interest payable in the account will be reduced and will not
be sufficient to reach the maturity value. Therefore, the difference in interest will be
deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront.
Interest is compounded on quarterly basis in recurring deposits.

One can avail loans against the collateral of Recurring deposit up to 80 to 90% of the
deposit value.

Rate of Interest offered is similar to that of Fixed Deposits. Earlier it seemed to be one
of the best method to save the amount yield after years of deposit. It was effective from
June 1, 2015 TDS is applicable on RDs.

Tax Deducted at Source is applicable on Recurring deposits. If interest earned on

recurring deposits exceeds Rs. 10,000 a year, TDS at the rate of 10 per cent would be
deducted by the bank. Income tax is to be paid on interest earned from a Recurring
Deposit at the rate of tax slab of the RD holder. Investors with no taxable income will
have to submit Form 15G to avoid TDS on both recurring deposits and fixed deposits.

2.3 Types of Loans

Student Loans

Student loans are offered to college students and their families to help cover the cost of
higher education. There are two main types: federal student loans and private student
loans. Federally funded loans are better, as they typically come with lower interest rates
and more borrower-friendly repayment terms. The high cost of education in premier
institutions need no longer stand between you and your career aspirations. While you
21
plan your education in world class universities, Punjab and Sind Bank takes care of all
the expenses.

The education loan scheme aims at providing financial support on reasonable terms
from the banking system to deserving/meritorious students for pursuing their higher
education in India and abroad. The main emphasis is that every meritorious student,
though poor is provided with an opportunity to pursue education with the financial
support from the banking system with affordable terms & conditions. No deserving
student is denied an opportunity to pursue higher education for want of financial
support.

Consumer Loan

Consumer loans help you to take care of your immediate requirements without much
of a hassle. The most attractive feature of the consumer loan is that you do not have to
give any kind of security to avail this loan. No collaterals, only hypothecation of assets
to be created. The maximum amount of consumer loan for which you are eligible
depends upon the net salary you take home. Loans are repayable in Equal Monthly
Instalments. Loan tenure varies from 1 to 5 years.

Punjab and Sind Bank offers a broad range of consumer loans to meet the customers
specific needs and situations. Punjab and Sind Bank consumer loans are hassle free,
quickly approved and are on very attractive interest rates. Consumer loans are given
for the purpose of consumer durables and vehicles.

Mortgages

Mortgages are loans distributed by banks to allow consumers to buy homes they cant
pay for upfront. A mortgage is tied to your home, meaning you risk foreclosure if you
fall behind on payments. Mortgages have among the lowest interest rates of all loans.

22
Auto Loans

Like mortgages, auto loans are tied to your property. They can help you afford a
vehicle, but you risk losing the car if you miss payments. This type of loan may be
distributed by a bank or by the car dealership directly but you should understand that
while loans from the dealership may be more convenient, they often carry higher
interest rates and ultimately cost more overall.

Punjab and Sind Bank also offers two wheeler loans which are economical, friendly
and offer easy instalment options. Under two wheeler loans only scooter and motor
cycles are financed. Finance is offered up to specified percentage of the price of product
and rest is paid as margin by borrower himself. The loan can be repaid in a period
ranging from 1 to 3 years.

Punjab and Sind Bank prompts cost efficient and simple second hand car loan scheme.
The applicant should have an earning capacity of Rs. 50,000 per annum. The repayment
period ranges from 1 to 4 years.

Personal Loans

Personal loans can be used for any personal expenses and dont have a designated
purpose. This makes them an attractive option for people with outstanding debts, such
as credit card debt, who want to reduce their interest rates by transferring balances.
Like other loans, personal loan terms depend on your credit history.

Loans for Veterans

The Department of Veterans Affairs has lending programs available to veterans and
their families. With a VA-backed home loan, money does not come directly from the
administration. Instead, the VA acts as a co-signer and effectively vouches for you,
helping you earn higher loan amounts with lower interest rates.

23
Small Business Loans

Small business loans are granted to entrepreneurs and aspiring entrepreneurs to help
them start or expand a business. The best source of small business loans is the U.S.
Small Business Administration, which offers a variety of options depending on each
businesss needs.

Payday Loans

Payday loans are short-term, high-interest loans designed to bridge the gap from one
pay check to the next, used predominantly by repeat borrowers living paycheck to pay
check. The government strongly discourages consumers from taking out payday loans
because of their high costs and interest rates.

Borrowing from Retirement & Life Insurance

Those with retirement funds or life insurance plans may be eligible to borrow from
their accounts. This option has the benefit that you are borrowing from yourself,
making repayment much easier and less stressful. However, in some cases, failing to
repay such a loan can result in severe tax consequences.

Consolidated Loans

A consolidated loan is meant to simplify your finances. Simply put, a consolidate loan
pays off all or several of your outstanding debts, particularly credit card debt. It means
fewer monthly payments and lower interest rates. Consolidated loans are typically in
the form of second mortgages or personal loans.

Borrowing from Friends and Family

Borrowing money from friends and relatives is an informal type of loan. This isnt
always a good option, as it may strain a relationship. To protect both parties, its a good
idea to sign a basic promissory note.

24
Cash Advances

A cash advance is a short-term loan against your credit card. Instead of using the credit
card to make a purchase or pay for a service, you bring it to a bank or ATM and receive
cash to be used for whatever purpose you need. Cash advances also are available by
writing a check to payday lenders.

Home Equity Loans

If you have equity in your home the house is worth more than you owe on it you
can use that equity to help pay for big projects. Home equity loans are good for
renovating the house, consolidating credit card debt, paying off student loans and many
other worthwhile projects. Home equity loans and home equity lines of credit use the
borrowers home as a source of collateral so interest rates are considerably lower than
credit cards. The major difference between the two is that a home equity loan has a
fixed interest rate and regular monthly payments are expected, while a HELOC has
variable rates and offers a flexible payment schedule. Home equity loans and HELOCs
are used for things like home renovations, credit card debt consolidation, major medical
bills, education expenses and retirement income supplements. They must be repaid in
full if the home is sold.

Building our own home is one of the most important decisions that we make in our life.
It provides an impetus in our lifestyle and provides financial security.

Punjab and Sind Bank offers home loan with appropriate Equated Monthly Instalments
with regard to customer as well as home loan executive. It is simple and quick in
processing with easy payment terms and interest rates are very attractive.

25
2.4 Types of Card

Debit Card

Debit Card also known as a bank card or check card is a plastic payment card that can
be used instead of cash when making purchases. It is similar to a credit card, but unlike
a credit card, the money comes directly from the user's bank account when performing
a transaction.

Some cards may carry a stored value with which a payment is made, while most relay
a message to the cardholder's bank to withdraw funds from a payer's designated bank
account. In some cases, the primary account number is assigned exclusively for use on
the Internet and there is no physical card.

In many countries, the use of debit cards has become so widespread that their volume
has overtaken or entirely replaced cheques and, in some instances, cash transactions.
The development of debit cards, unlike credit cards and charge cards, has generally
been country specific resulting in a number of different systems around the world,
which were often incompatible. Since the mid-2000s, a number of initiatives have
allowed debit cards issued in one country to be used in other countries and allowed
their use for internet and phone purchases.

Unlike credit and charge cards, payments using a debit card are immediately transferred
from the cardholder's designated bank account, instead of them paying the money back
at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as an ATM
card for withdrawing cash. Merchants may also offer cashback facilities to customers,
where a customer can withdraw cash along with their purchase.

26
Credit Card
Credit Card is a payment card issued to users (cardholders) to enable the cardholder to
pay a merchant for goods and services based on the cardholder's promise to the card
issuer to pay them for the amounts so paid plus the other agreed charges. The card
issuer (usually a bank) creates a revolving account and grants a line of credit to the
cardholder, from which the cardholder can borrow money for payment to a merchant or
as a cash advance. In other words, credit cards combine payment services with
extensions of credit. Complex fee structures in the credit card industry may limit
customers' ability to comparison shop, help ensure that the industry is not price-
competitive and help maximize industry profits. Because of this, legislatures have
regulated credit card fees.

A credit card is different from a charge card, where it requires the balance to be repaid
in full each month.[4] In contrast, credit cards allow the consumers a continuing balance
of debt, subject to interest being charged. A credit card also differs from a cash card,
which can be used like currency by the owner of the card. A credit card differs from a
charge card also in that a credit card typically involves a third-party entity that pays the
seller and is reimbursed by the buyer, whereas a charge card simply defers payment by
the buyer until a later date.

2.4 Types of Money Transfer

Electronic Funds Transfer

Electronic Funds Transfer is the electronic transfer of money from one bank account to
another, either within a single financial institution or across multiple institutions,
via computer-based systems, without the direct intervention of bank staff. EFT
transactions are known by a number of names. In the United States, they may be
referred to as electronic checks or e-checks.

27
Immediate Payment Service

Immediate Payment Service is an instant real-time inter-bank electronic funds

transfer system in India. IMPS offers an inter-bank electronic fund transfer service
through mobile phones. Unlike NEFT and RTGS, the service is available 24/7
throughout the year including bank holidays.

It is managed by the National Payments Corporation of India (NPCI) and is built upon
the existing National Financial Switch network. In 2010, the NPCI initially carried out
a pilot for the mobile payment system with 4 member banks (State Bank of India, Bank
of India, Union Bank of India and ICICI Bank), and expanded it to include Yes
Bank, Axis Bank and HDFC Bank later that year. IMPS was publicly launched on
November 22, 2010. Currently, there are 53 commercial banks, 101
Rural/District/Urban and cooperative banks, and 24 PPLI signed up for the IMPS
service.

National Electronic Funds Transfer

National Electronic Funds Transfer is an electronic funds transfer system maintained

by the Reserve Bank of India. Started in November 2005,[1] NEFT is a facility enabling
bank customers in India to transfer funds between any two NEFT-enabled bank
accounts on a one-to-one basis. It is done via electronic messages. Unlike Real-time
gross settlement, fund transfers through the NEFT system do not occur in real-time
basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring
between 8:00 AM and 6:30 PM on week days and the 1st, 3rd and 5th Saturday of the
calendar month. Transfers initiated outside this time period are settled at the next
available window. No settlements are made on the second and fourth Saturday of the
month, or on Sundays, or on public holidays.

NEFT facilities are available at 74,680 branches offices of 101 banks across the country
(out of around 82,400 bank branches) as of January 2011, and well as online through
the website of NEFT-enabled banks. and work on a batch mode. NEFT has gained

28
popularity due to its saving on time and the ease with which the transactions can be
concluded, This reflects from the fact that 42% of all electronic transactions in the 2008
financial year were NEFT transactions.

Real Time Gross Settlement

Real-time gross settlement are specialist funds transfer systems where the transfer
of money or securities[1] takes place from one bank to another on a "real time" and on
a "gross" basis. Settlement in "real time" means a payment transaction is not subjected
to any waiting period, with transactions being settled as soon as they are processed.
"Gross settlement" means the transaction is settled on one-to-one basis without
bundling or netting with any other transaction. "Settlement" means that once processed,
payments are final and irrevocable.

RTGS systems are typically used for high-value transactions that require and receive
immediate clearing. In some countries the RTGS systems may be the only way to get
same day cleared funds and so may be used when payments need to be settled urgently.
However, most regular payments would not use a RTGS system, but instead would use
a national payment system or network that allows participants to batch and net
payments. RTGS payments typically incur higher transaction costs and usually
operated by a country's central bank.

Automated Teller Machine

Automated Teller Machine, also known in the United States of America as
an automatic teller machine (ATM, American, British, Australian, Malaysian, South
African, Singaporean, Indian, Maldivian, Hiberno, Philippines and Sri Lankan
English), automated banking machine (ABM, Canadian English), cash point (British
English, cash line, minibank, cash machine, time machine, cash
dispenser, bankomat or bancomat, is an electronic telecommunications device that

29
enables the customers of a financial institution to perform financial transactions,
particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.

According to the ATM Industry Association (ATMIA), there are now close to 3.5
million ATMs installed worldwide.

On most modern ATMs, the customer is identified by inserting a plastic ATM card with
a magnetic stripe or a plastic smart card with a chip that contains a unique card number
and some security information such as an expiration date or CVVC (CVV).
Authentication is provided by the customer entering a personal identification
number (PIN) which must match the PIN stored in the chip on the card (if the card is
so equipped) or in the issuing financial institution's database.

Using an ATM, customers can access their bank deposit or credit accounts in order to
make a variety of transactions such as cash withdrawals, check balances, or credit
mobile phones. If the currency being withdrawn from the ATM is different from that
in which the bank account is denominated the money will be converted at an
official exchange rate. Thus, ATMs often provide the best possible exchange rates for
foreign travellers, and are widely used for this purpose.

Internet Banking

Online banking, also known as internet banking, e-banking or virtual banking, is

an electronic payment system that enables customers of a bank or other financial
institution to conduct a range of financial transactions through the financial institution's
website. The online banking system will typically connect to or be part of the core
banking system operated by a bank and is in contrast to branch banking which was the
traditional way customers accessed banking services.

To access a financial institution's online banking facility, a customer with internet

access will need to register with the institution for the service, and set up a password
and other credentials for customer verification. The credentials for online banking is
normally not the same as for telephone or mobile banking.

30
Financial institutions now routinely allocate customers numbers, whether or not
customers have indicated an intention to access their online banking facility. Customer
numbers are normally not the same as account numbers, because a number of customer
accounts can be linked to the one customer number. Technically, the customer number
can be linked to any account with the financial institution that the customer controls,
though the financial institution may limit the range of accounts that may be accessed
to, say, cheque, savings, loan, credit card and similar accounts.

The customer visits the financial institution's secure website, and enters the online
banking facility using the customer number and credentials previously set up. The types
of financial transactions which a customer may transact through online banking are
determined by the financial institution, but usually includes obtaining account balances,
a list of the recent transactions, electronic bill payments and funds transfers between a
customer's or another's accounts. Most banks also enable a customer to download
copies of bank statements, which can be printed at the customer's premises (some banks
charge a fee for mailing hard copies of bank statements). Some banks also enable
customers to download transactions directly into the customer's accounting software.
The facility may also enable the customer to order a cheque book, statements, report
loss of credit cards, stop payment on a cheque, advise change of address and other
routine actions.

Today, many banks are internet-only institutions. These "virtual banks" have lower
overhead costs than their brick-and-mortar counterparts. In the United States, many
online banks are insured by the Federal Deposit Insurance Corporation (FDIC) and can
offer the same level of protection for the customers' funds as traditional banks.

Mobile Banking
Mobile banking is a service provided by a bank or other financial institution that allows
its customers to conduct financial transactions remotely using a mobile device such as
a smartphone or tablet. Unlike the related internet banking it uses software, usually
called an app, provided by the financial institution for the purpose. Mobile banking is
31
 usually available on a 24-hour basis. Some financial institutions have restrictions on
which accounts may be accessed through mobile banking, as well as a limit on the
amount that can be transacted.

Transactions through mobile banking may include obtaining account balances and lists
of latest transactions, electronic bill payments, and funds transfers between a
customer's or another's accounts. Some apps also enable copies of statements to be
downloaded and sometimes printed at the customer's premises; and some banks charge
a fee for mailing hardcopies of bank statements.

From the bank's point of view, mobile banking reduces the cost of handling transactions
by reducing the need for customers to visit a bank branch for non-cash withdrawal and
deposit transactions. Mobile banking does not handle transactions involving cash, and
a customer needs to visit an ATM or bank branch for cash withdrawals or deposits.
Many apps now have a remote deposit option; using the device's camera to digitally
transmit cheques to their financial institution.

Mobile banking differs from mobile payments, which involves the use of a mobile
device to pay for goods or services either at the point of sale or remotely, analogously
to the use of a debit or credit card to effect an EFTPOS payment.

Foreign Exchange Services

When you buy or sell foreign exchange, we will give you information on the services,
details of the exchange rate and other charges which apply to foreign exchange
transactions. If this is not possible, we will tell you how these will be worked out. If
you want to transfer money abroad, we will tell you how to do this and will give you:

i. A description of the services and how to use them;

ii. Details of when the money you have sent abroad should get there and the reasons for
delays, if any.
iii. The exchange rate applied when converting to the foreign currency (if this is not
possible at the time of the transaction, we will let you know later what the rate is)
32
 iv. Details of any commission or charges, which you will have to pay and a warning that
the person receiving the money may also, have to pay the foreign bank's charges.
v. We will tell you if the information provided by you for making a payment abroad is
adequate or not. In case of any discrepancies or incomplete documentation, we will
advise you immediately and assist you to rectify/complete the same.
vi. If money is transferred to your bank account from abroad, we will tell you the original
amount received and charges if any levied. If the sender has agreed to pay all charges,
we will not take any charges when we pay the money into your account.
vii. We will guide you about regulatory requirements or conditions relating to foreign
exchange services offered by us as and when requested by you.
viii. In case of delay beyond the day when the amount is due for credit, you will be
compensated (a) for any loss on account of interest for due period beyond the due date
and (b) also for adverse movement of forex rate as per the compensation policy of the
bank.
ix. All certificates required to be issued under regulatory/statutory instructions will be
issued free of charge.

33
2.5 New Challenges Facing Banks

The functions of banks will increase under competitive pressure. These may emanate
from within the banking system as well as from non-banking institutions. A greater
overlap in product coverage between commercial banks and non-banking
intermediaries will occur. Thus, both on the liability and assets sides, banks will face
increasing competition.

Banks should be willing to offer products to savers, which are competitive in terms of
both price and service. On the lending sides the effort of the corporate to seek directly
from the market will also have an impact on the asset distribution of banks. Competition
will also compel banks to keep the interest spread to minimum and this context bank
can earn enough for them only by reducing the proportion of non-performing assets.
Banks will also have to pay attention to market segmentation and greater specialization
in different niches of the markets.

34
 Chapter- 4

Data Analysis & Interpretation

In order to extract meaningful information from the data, analysis of the data was done.
Analysis was done by using certain statistical tools like bar graphs, pie-charts,
percentage and from these analysis interpretations were drawn. These figures show the
feedback about the Punjab & Sind Bank that how its works and customer can get
satisfied from the services provided by the bank.

35
 Occupation of Account Holders

20%

50%

30%

Salaried Professional Business

Annual Income of Account Holders

15%
20%

25%

40%

Below 50000 50000 to 100000 100000 to 500000 Above 500000

36
 Duration of Account with PSB

60%

25%
15%

1 to 2 yrs 3 to 5 yrs More tha 5 yrs

Duration of Account with PSB

Satisfaction with Processing Fees

35%

65%

Yes No

37
 Time taken by bank b/w submission of application &
dibursment of loan or insurance

More than 3 Days 25%

2/3 Days 40%

1 Day 35%

Time taken by bank b/w submission of application & dibursment of loan or insurance

Queries solved related to your Account

40%

60%

Yes No

38
 Standard Services by PSB

Fair 30%

Good 25%

Very Good 30%

Excellent 15%

Standard Services by PSB

Information provided by Customerto PSB is cross checked

25%

75%

Yes No

39
 Why select PSB for availing Banking Services

Near to your Place

Recommeded by Someone

Employee of PSB

Attractive Schemes

Good Services

Why select PSB for availing Banking Services

Avail FD/RD in Future with PSB

20%

50%

30%

Yes No Can't Say

40
 Strongest Point of PSB

40%

25%
20%
15%

Efficient Staff Attractive Schemes Excellent Customer Branch Ambience

Service

Strongest Point of PSB

41
 Findings

Most of the respondents are satisfied with the interest rate charged by the bank which
shows that interest rate of Punjab and Sind Bank is quite reasonable as compared to
other banks.
All the respondents except two are satisfied with the processing fee as they feel that it
is less as compared to other banks.
Most of the respondents are satisfied with the level of services provided by bank but
they feel that these services can still be made better.
Most of the people who have taken loan either belong to salaried class or are
professional.
Most of the respondents have selected Punjab and Sind Bank for availing loan,
insurance etc. either due to attractive schemes, good customer service or due to the fact
that they are an employee of Punjab and Sind Bank.
Customers queries are not solved properly by the officials.
Most of the respondents say that next time when they want to avail loan they will prefer
Punjab and Sind Bank.
Punjab and Sind Bank is popular among masses due to efficient staff, attractive
schemes and good customer service.
Generally customers are not aware about hidden charges so they must be given full
information about these charges.
Customers are not satisfied with branch ambience.

42
 Chapter- 6

Recommendation & Conclusion

6.1 Recommendation
Self Service Passbook Printer

Self Service Passbook Printer is an automated machine where in customer can print
there passbook on their own. SSPBP machine recognizes the account details from the
magnetic strip placed on the Passbook, through these details machine fetches the
account transaction details and prints it on passbook. Customer can use this facility
24x7 from the SSPBP machine installed in E-lobby/ATM. Some of the salient features
of this product are:

Self Service Passbook Printer (SSPBP) is a fully automated machine having the ability
to auto flip, auto align and update the customer passbook without any intervention of
branch staff or the customer.

It is a specialized machine, where customer has to simply insert passbook with only
cover page opened and thus it is very convenient for all strata of customers.

Machine will automatically flip and align the pages and print on appropriate
page/locations.

Passbook used in SSPBP is magnetic stripe based. It will bear a pre-printed number
which is already stored in the magnetic stripe of the passbook and mapped with the
customers account.

Passbook pages have been made with grey scale strips, facilitating easy reading.

Simple and customer convenient process.

No manual intervention or help of branch official required.

Services available 24X7 in e-lobbies and ATM cabins.

43
 Value additions like self-mapping of passbook at SSPBP without approaching the
branch for issuance of subsequent passbook etc. are enabled to enhance customer
experience.

Cash Deposit Machine

Cash Deposit Machine is self-service terminal that enables you to deposit cash without
any manual intervention of the branch officer.
Now no need to fill deposit slips and stand in long queues at the cash counter. Deposit
your cash through the simple and fast CDM installed in the branch and get instant credit
in your account. To use the CDM, you need to have the Punjab & Sind Bank Debit
Card or know the Punjab & Sind Bank Banks 14 digit account number in which you
wish to deposit the money.

Instant credit in your account.

Immediate receipt.

No need to fill deposit slips.

No need to stand in long queues.

No need to sort and arrange your cash denomination wise.

Aadhaar Update Machine

Enabling Aadhaar for various services like Government & Non-Government Services,
Subsidy Benefits, Pensions, Scholarships, Social Benefits, Banking services, Insurance
services, Taxation services, Education, Employment, Healthcare etc., makes it essential
to ensure that Aadhaar data of the resident stored in the CIDR is accurate and up-to-
date.

Changes in life events such as marriage may lead to residents changing their basic
demographic details such as name and address. Address and mobile number could also
44
 change due to migration to newer locations. Residents may also want changes in their
relatives details due to changes in life events such marriage, death of a relative etc. In
addition, residents could have other personal reasons to change their mobile number,
email address etc.

Changes in various service delivery platforms may lead residents to declaration request
changes and to add mobile number to CIDR etc.

Errors made during the enrolment process wherein the residents demographic data
may have been captured incorrectly. Changes to DOB/Age and Gender fields are
expected primarily due to enrolment errors.

Since a resident can enrol anywhere in India, it may happen that a native speaker of
language A is enrolled by an operator of language B and consequently the
residents local language of enrolment is B. Later, the resident may want to change
the local language of enrolment to another that he/she prefers. If so, then all the
demographic information that is printed on the Aadhaar letter will need to be updated
in the new local language.

UIDAI may also ascertain availability of POI, POA and other documents collected at
the time of enrolment/update and its quality and decide to notify resident to update their
demographic information and submit the required document.

PAN Updating Machine

Permanent Account Number is a code that acts as an identification for Indian nationals,
especially those who pay Income Tax. It is a unique, 10-character alpha-numeric
identifier, issued to all judicial entities identifiable under the Indian Income Tax Act,
1961. An example number would be in the form of ARLPA0061H. It is issued by
the Indian Income Tax Department under the supervision of the Central Board for
Direct Taxes (CBDT) and it also serves as an important proof of identification.

It is also issued to foreign nationals (such as investors) subject to a valid visa and hence,
it is not acceptable as a proof of Indian citizenship.

45
 The PAN is mandatory for a majority of financial transactions such as opening a bank
account, receiving taxable salary or professional fees, sale or purchase of assets above
specified limits etc.; especially high-value transactions.

The primary purpose of the PAN is to bring a universal identification to all financial
transactions and to prevent tax evasion by keeping track of monetary transactions,
especially those of high-net-worth individuals who can impact the economy.

The PAN is unique to each individual and is valid for the lifetime of the holder,
throughout India. An important point to note would be that once issued, the PAN is not
affected by a change of address.

Electronic KYC
Know your customer is the process of a business identifying and verifying the identity
of its clients. The term is also used to refer to the bank and anti-money
laundering regulations which governs these activities. Know your customer processes
are also employed by companies of all sizes for the purpose of ensuring their proposed
agents, consultants, or distributors are anti-bribery compliant. Banks, insurers and
export creditors are increasingly demanding that customers provide detailed anti-
corruption due diligence information.
Customers must be given full information about all the charges and fees related to a
particular scheme in detail.
More young and energetic staff should be employed to manage the work load.
Punjab and Sind Bank should revise its schemes with special reference to interest rate
from time to time in order to attract new customers.
The efforts should be made to improve bank ambience and to increase the speed of
service.
A customer grievances cell should be made functional and steps should be taken to
enhance speedy settlement of the compliant.

46
6.2 Conclusion

Punjab and Sind Bank is one of the most efficiently run financial institution of India.
The management of this institution is quiet content and satisfied by the progress made
by it since its humble beginning in 1908 at Amritsar. Punjab and Sind Bank offers a
broad range of consumer loans to meet the customers specific needs and situations.
This project is an attempt to study consumer loans schemes offered by Punjab and Sind
Bank and level of customer satisfaction regarding these schemes.

This project throws light on procedure of availing consumer loan as well as different
kind of frauds pertaining to these loans. A questionnaire is also incorporated to know
the level of customers satisfaction regarding these loans and evaluation has been done
on the basis of responses retrieved by customers of the bank.

After making research with the help of questionnaire and personal interview it is found
that customers are satisfied with the consumer loan schemes offered by Punjab and
Sind Bank. They are also contended with the services provided by the bank but they
feel that these can be made better. It can be done by employing more young and
energetic staff to manage the work load. The customers are not aware about the hidden
charges so they must be given full information about all the fees and charges.

47
 QUESTIONNAIRE
Name ___________________________

Age ___________________________

Gender ___________________________

1. Occupation
(a) Salaried

(b) Professional

(c) Business

2. Annual Income:-
(a) Below Rs. 50,000
(b) Rs. 50,000 to Rs. 1 lakh
(c) Rs. 1 lakh to Rs. 5 lakh
(d) Above Rs. 5 lakh

3. What is duration of your account with Punjab and Sind

Bank?

(a) 1 to 2 years

(b) 3 to 5 years

(c) More than 5 years

4. Are you satisfied with the interest rate charged by Punjab and
48
 Sind Bank?

(a) Yes

(b) No

5. Are you satisfied with the processing fee charged by Punjab

and Sind Bank?

(a) Yes

(b) No

6. How much time was taken by Bank between submission of application and
disbursement of loan or insurance ?
(a) 1day

(b) 2 to 3 days

(c) More than 3 days

7. Are queries related to your account being solved properly?

(a) Yes

(b) No

8. Are you sure that no hidden charges are debited in your account?
(a) Yes

(b) No

49
 If No than specify the kind of charges debited in your account
____________________________________________

____________________________________________

9. What do you think about the standard services provided by Punjab and Sind Bank?
(a) Excellent

(b) Very good

(c) Good

(d) Fair

10. At any point of time do you think that the information

Provided by you to bank is being cross-checked?

(a) Yes

(b) No

11.Why do you select Punjab and Sind Bank for availing of

Banking services?

(a) Good service

(b) Attractive schemes

(c) Recommended by some person

(d) Employee of Punjab and Sind Bank

(e) Near to your place

12.Next time when you want to avail FD/RD would you avail it

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 from Punjab and Sind Bank?

(a) Yes

(b) No

(c) Cant say

13.What according to you is the strongest point of Punjab and

Sind Bank?

(a) Efficient staff

(b) Attractive schemes

(c) Excellent customer service

(d) Branch ambience

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