STUDY ON BANKING OPERATION IN AXIS BANK LTD

Executive Summary

Banks play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way banks become very effective partners in the process of economic development. The study is done on the Banking Operation in AXIS BANK LTD..This project gives an overview of various banking operation. The study is done in three areas of banking operations are µClearing¶, µForeign Exchange¶ & µNRI Services¶. CMS (Cash Management Services) in which payments received from buyers and made to the suppliers are efficiently processed to optimize cash flow position and to ensure the effective management of the business' operating funds. Axis bank cash management enables the efficient utilization of receivables through coordinated management of payments, collections and balances in customer accounts. Starting from the Clearing, the operations focus on the understanding of how clearing process is done and how it benefits the bank and also to its customers. The main objective of Clearing is to speed up the collection of cheques. Clearing operation denotes all activities from the time a commitment is made for a transaction until it is settled .Study provides knowledge of various clearing attributes which are important from bank point of view. ³Foreign Exchange¶ basics was the another important part to come across in which basic concepts of foreign exchange is enhanced. Foreign exchange market µForex¶ deal with the exchange of currencies with different countries all across the globe. The main objective of Forex is to ensure liquidity for worldwide operations and maintain access to local credit markets. A study has been done as how Forex helps in making margin and also the various parameters of Forex like the participants, rates of transactions, concept of SWIFT, letter of credit, etc. NRI services was the another thing to deal with. NRI services are related to nonresident Indian and various lists of services offered by Axis bank which include remittance facilities, various accounts for the customer, and the most importantly Portfolio Investment Scheme (PIS). The main objective of NRI services is to provide outstanding personalized services to meet the needs of customer worldwide. NRIs are permitted to invest in shares/convertible debentures of Indian companies by RBI under portfolio investment scheme.

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BANKING OPERATIONS

STUDY ON BANKING OPERATION IN AXIS BANK LTD

Introduction
Company profile: Axis Bank
Axis Bank was the first of new private bank to have begun operation in 1994 after Government of India allowed. Axis Bank was jointly promoted by the administrator of the specified undertaking of the  Unit trust of India (UTI-1)  Life Insurance Corporation of India (LIC)  General Insurance Corporation ltd (GIC) Also with associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. Axis Bank in India today is capitalized with Rs. 232.86 Crores with 47.50% public holding other than promoters. It has more than 200 branch offices and Extension Counters in the country with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country. Axis Bank India commits to adopt the best industry practices internationally to achieve excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank customers in all the places across the country where it has presence. With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card. The Travel Currency Card is a signature based pre-paid travel card which enables traveler¶s global access to their money in local currency of the visiting country in a safe and convenient way. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Banking Operation At Axis Bank The Bank operates in four segments: treasury, retail banking, corporate/wholesale banking and oth The treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. .Retail banking includes lending to individuals/small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and nonresident Indian (NRI) services.

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BANKING OPERATIONS

 To minimize the clearing related fraud and reconciliation problem so that bank can operate its operation smoothly.STUDY ON BANKING OPERATION IN AXIS BANK LTD Objectives.  To provide the unique services to the customer by reducing the cost of transaction. Foreign Exchange Objective     To fund worldwide operations at the lowest after-tax cost To ensure liquidity for worldwide operations and maintain access to local credit markets To protect assets worldwide To maximize US dollar profits from overseas operations. Specific Objectives  To understand the process of ³Clearing´  To get the concept of foreign exchange and foreign exchange trading  To know about the NRI services provided by Axis Bank Clearing Objective  Main objective of clearing is to speed up the collection of cheques. NRI Objectives  To provide outstanding personalized services to meet the needs of customer worldwide  To provide service solution to ensure convenience. value and absolute satisfaction of costumer Methodology  Secondary Data  Guidelines of Axis Bank  Axis Bank knowledge point(intranet)  Regular consultation with employees of Axis Bank  Observation 3 BANKING OPERATIONS . Scope & Methodology Broad Objective To acquire the knowledge about the Banking Operations.

the Reserve Bank of India started a special clearing styled. These cheques can be drawn on any of the following: y y y Axis bank locations: all cheques drawn on Axis bank locations. as on date. The Bank as a part of the normal banking operations undertakes collection of cheques deposited by their customers. minimizes cost of collection of cheques. Correspondent bank locations: currently available at more than 900 locations. collection of cheques is one of the prime services provided by bankers.enables to realize funds (on an assured day) through local cheques payable within the purview of local clearing. Bank provides these services at Axis bank network: 140 locations with courier pickup facility and various co-coordinator locations. reduces the scope for clearing related frauds. ³CLEARING speeds up collection of cheques and therefore enhances customer service. In order to facilitate faster collection of outstation cheques. Such cheques are called outstation cheques. Bankers in their normal course of business receive millions of cheques from their client from collection. Speed Clearing by leveraging the core banking solutions implemented in banks In India. The exchange of cheques amongst banks and settlements of the accounts take place at clearing houses. 4 BANKING OPERATIONS . there are about 1047 clearing houses. This is one the most important and popular services. Remote locations: cheques drawn on locations not covered by Axis bank locations or correspondent bank locations can be deposited at any of bank locations. Axis bank provides following collection products: Local Cheque Collection (LCC) .STUDY ON BANKING OPERATION IN AXIS BANK LTD Theoretical Perspective Clearing Clearing operations is a process in which bankers exchange the cheques (drawn on other banks) received from their clients and settle the accounts. The bankers who extens the service of collecting the funds of the cheques are known as ³COLLECTING BANKERS´. eliminates logistics problems etc. reduces reconciliation problems. some of which could also be drawn on non-local bank branches. Up Country Cheque Collections (UCC) ± UCC enables to realize fund at lower costs be depositing outstation cheques at Axis bank locations. Thus. The clearing houses are generally managed by RBI and in certain centers where RBI does not have a presence.´ Managing Receivables: Collections Axis bank facilitates faster collections be enabling quick realization of local and upcountry cheques and pooling the funds in a central account. the same are managed by SBI.

the exchange rates (also known as the foreign-exchange rate. within a committed time frame at any of Axis bank branches on a regular basis which is executed through its dedicated HUB. Foreign Exchange International trade in commodities and services necessitates a method of conversion of value of commodities and services of one country in terms of purchasing power in another country. Exchange Rates In finance.Axis bank also cater to customer business model which has bulk collection cheques. forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. absolutely free of cost. Performance of bulk collections can be arranged by courier and executed via electronic transmissions of diskettes.As collecting bankers. Foreign exchange is the method of conversion of one currency into another. and the bank processes collections in a convenient and efficient way. buyback offers. Bulk Collections. Axis bank provide service relating to public/rights issues. pay orders at all Axis bank locations. private placements. Dividend/Interest/Principle/Refund Order Payment: any one can use this facility at all Axis bank locations and over 500 correspondent bank locations. 5 BANKING OPERATIONS . Bulk payments: this enables to issue bulk demand draft. utility bills. The foreign currency in such conversion is treated as a commodity and the home currency as the purchasing power. etc. This makes any customer a universal customer of Axis bank and eliminates the need for opening and tracking separate accounts. It is the value of a foreign nation¶s currency in terms of the home nation¶s currency. Managing Payables: Payments Payable at par cheque books: Customer can issue local cheques at all Axis bank locations. Statutory payments: any one can make statutory payments like taxes. The mechanism by which such conversion takes place is one of the meanings of µForeign Exchange¶. It also offer efficient printing and dispatching facilities through Axis bank dedicated HUB to ensure error free services and fast movement of funds at minimal costs.STUDY ON BANKING OPERATION IN AXIS BANK LTD IPO Collections. etc.

USD 1 = Rs 46. The second / higher rate is the ask rate. The difference between bid (buying) and ask (selling) rates is known as spread. The exchange rate can be quoted in following two ways: i) Direct Quotations In direct quotations. it means that the bank is ready to deal in USD and would buy USD at Rs 46.e. the order is: EUR ± GBP ± AUD ± NZD ± USD ± others. E. In other words here USD is a Base currency & INR is a Term currency E. Rs 100 = USD 2. the rates are quoted as a certain number of units of USD (or the base currency) per unit of local currency. payment currency) that can be exchanged for one unit of "base currency" (unit currency. INR is the term currency and the exchange rate tells us how many Indian rupees we would pay or receive for 1 USD.4825 Ii Indirect Quotations In indirect quotations. For example. For example the rates mentioned above earlier are quoted as: 1USD= (INR) 46.4875. when a bank quotes USD 1 = (INR) 46.4825/75 6 BANKING OPERATIONS . The quotations are given in the ascending order.46. It is conventional that rate are quoted by giving the first rate in full and only last two digits of the other. it is a practice to always quote two way rates i. In most parts of the world. This mean when we will buy. There is a market convention that determines which is the base currency and which is the term currency.4825 and sell USD at Rs 46.4825 .g. the price of counter currency is expressed as a certain number of units of that local currency per unit of USD (or the base currency). transaction currency). the rate for buying (bid) as well as for selling (ask).STUDY ON BANKING OPERATION IN AXIS BANK LTD Quotations An exchange system quotation is given by stating the number of units of "quote currency" (price currency. It is a reverse of direct quotation. The first rate / lower rate are the bid rate. Bid is to buy and Ask is to sell. we will buy at bid rate and when we sell we sell at ask rate.1525 Two Way Quotation/Bid & Ask Rates In foreign exchange market.4875. Thus if we are doing a conversion from USD into INR.g. USD is the base currency.

6725 Buy SGD against US $ i. the parity between them is decided by using an intermediary currency.7975 7 BANKING OPERATIONS . participants in foreign exchange market.6725 1. as it is presumed that the other figures are known.6675 US $ 1 = SGD 1.6675 Therefore.4825/75) is known as ³Big figure´. then the rate at which the Bank can buy SGD against Rupee can be calculated as follows: Buy US $ at their offer rate US $ 1 = Rs 46.e.6725 1 Therefore. the figure 48 (in USD = 1 INR 46. In India. The above mentioned rates may thus be quoted as 25/75. Incidentally. often quote the rates by giving only last two digits. SGD 1 = Rs ----------1.7975 1 SGD 1 = US $ -------1.STUDY ON BANKING OPERATION IN AXIS BANK LTD To save time. only US Dollar / Rupee exchange rate is available in the Indian foreign Exchange market and exchange rates of Rupee with all other foreign currencies are derived from this rate.7975 US $ 1 = Rs 46. the price of one currency is not quoted against the other currency.0375 2) Similarly. US Dollar being the currency of intervention. SGD 1 = Rs --------.7975 Sell US $ at their bid rate US $ 1 = Rs 46.6675 / 6725 and SGD is quoted as US $ 1 = SGD 1. Sell US $ at their bid rate US $ 1 = SGD 1. the rate at which the Bank can sell SGD and receive Rupee can be calculated as follows: Buy US $ at their offer rate US $ 1 = SGD 1.7925 US $ 1 = SGD 1.7925 US $ 1 = Rs 46.6675 46. The rate thus obtained is called a Cross Rate and the principle applied to obtain the cross rate is called the Chain Rule. 1) If US Dollar is quoted in India at US $ 1 = Rs 46. Cross Rate In case.7925 1 SGD 1 = US $ -------1.7925/75.7925 SGD 1 = Rs 26.x 46.

to pay the beneficiary the sum indicated thereon.9625 Modes of Remittance Banks use the following modes of remittance for undertaking transactions for customers (merchants) to receive or send foreign exchange. Clause 2(V) of FEMA 1999 defines a "Resident" as follows: A person residing in India for more than 182 days during the preceding FY but does not include:  A person who has gone out of India or who stays outside India. or y For any other purpose. (iii) Demand Draft (DD) It is an order in writing to the correspondent bank / branch abroad as per the agreed arrangement. Use of this mode is restricted to the banks having agency arrangement. (ii) Mail Transfer (MT) Instructions in case of Mail Transfer are sent by way of an order in writing and delivered / despatched by mail.STUDY ON BANKING OPERATION IN AXIS BANK LTD SGD 1 = 25.  A person who has come to or stays in India in either case. Clause 2(W) of FEMA 1999 indicates that "A person resident outside India" means a person who is not resident in India. in either case y for or on taking up employment outside India. (i) Telegraphic Transfer (TT) Telegraphic Transfer is one of the most popular and fastest modes of transferring funds from one centre to another. It is not as quick as TT. Messages for transfer are sent by way of Telex or SWIFT (Society for Worldwide Inter-bank Financial Tele-communication). The instrument is not a negotiable pay order. or y for carrying on outside India a business or vocation outside India. but is a cheaper mode than TT. The DD is handed over to the remitting party who mails it to the beneficiary for receiving payment by presentation to the drawee bank branch. NRI Services Non Resident Indian (NRI) A Non-Resident Indian is termed as a "person resident outside India". It is also based on the arrangement between two banks. or 8 BANKING OPERATIONS . otherwise than y for or taking up employment in India. in such circumstances as would indicate his intention to stay outside India for an uncertain period.

in secondary market through a registered broker on a recognized Stock Exchange. and  Person of Indian Origin (PIOs) are allowed to invest in the secondary capital markets in India through the portfolio investment scheme (PIS). by Reserve Bank of India. An office.P. y y An office. Portfolio Investment Scheme y NRIs are permitted to invest in shares / convertible debentures of Indian companies. Who can avail PIS?  Foreign Institutional Investors (FIIs). Transactions excluded from the ambit of PIS: y y Securities purchased as a resident individual are not covered under this scheme. Further. Features Of PIS A/c      Dedicated Relationship Manager Issuance of PIS permission Management of transfer of funds for buy / sale transactions Computation of Capital gain if any & effect payment of applicable taxes Reporting of NRI Investments to RBI 9 BANKING OPERATIONS . in such circumstances as would indicate his intention to stay in India for an uncertain period Any person or body corporate registered or incorporated in India. y Transactions covered under PIS: y Only secondary market purchase and sales of shares / convertible debentures of Indian companies by NRI's are within the ambit of the PIS scheme. the OCBs that have already made investments under PIS have been allowed to continue to hold such shares / convertible debentures till such time these are sold on the stock exchange. 2001 has prohibited OCBs to invest under PIS in India. (DIR Series) Circular No. vide A. 13 dated November 29. Reserve Bank of India.  Non-Resident Indians (NRIs). under Portfolio Investment Scheme (PIS). branch or agency outside India owned or controlled by a person resident in India.STUDY ON BANKING OPERATION IN AXIS BANK LTD y y y for carrying on in India a business or vocation in India. branch or agency in India owned or controlled by a person resident outside India. Derivative segment transactions or Mutual fund unit purchases are not within the ambit of the PIS scheme. or for any other purpose.

10 BANKING OPERATIONS . Clearing Procedure Of Clearing CLEARING ZONE CLEARING HOUSE A-Service Branch B-Service Branch A-1 Branch B-1 Branch A BANK B BANK Actions at A-1 Branch: A-1 branch forward all the cheques received from their clients to its Service Branch and parks the total amount of the cheques lodged in clearing in a suspense account. Primary data include observation and employees knowledge.STUDY ON BANKING OPERATION IN AXIS BANK LTD  Transaction alerts / updates via e-mail / Mobile alert facility Tariff Structure y y y y Account opening charges :NIL Purchase Transaction : Rs 100 per scrip Sale Transaction : Rs 100 per scrip Annual Maintenance Fees : Rs 1000 Methodology And Procedure The methodology used for this project is mainly primary and secondary data. Secondary data were axis bank guidelines and reports provided by bank itself.

there are different buying and selling rates. The net amount of cheques received/delivered is adjusted in the current accounts of the respective banks maintained with the clearing house. the balance is reduced and unpaid cheque is returned to the account holder. Then the cheques are forwarded to Clearing House. In case of dishonor of cheque. the numerous cheques received from the member¶s banks and read and sorted by a machine known as µreader sorter¶. The principle involved is that an instrument/ transaction involving little expense (work / effort) and risk will be more valuable i. Different rates are: y y y y TT selling rate TT buying rate Bill selling rate Bill buying rate Apart from the above rates. The amount of the cheque is encoded on the MICR band with an encoder machine and the collecting bank¶s clearing endorsement is affixed on the reverse side of the cheque. it will command a better price for the seller than an instrument costing more to collect and involving greater risk.  After validation some cheques are sorted  Left out cheques are debited  Bulk posting of sorted cheques is done and finally the sorted cheque is returned back to SBI. the service branch representatives return to the respective banks with cheques drawn on them. Foreign Exchange Various BUYING and SELLING rates: As all purchase/sale transactions are not alike. After receiving the confirmation A-1 branch convert the balance into regular balance which can be drawn by the account holder. Action at Clearing House: At the Clearing House.STUDY ON BANKING OPERATION IN AXIS BANK LTD Action at Service Branch: All the cheques received from all the branches of A bank are amalgamated bank-wise.e. Then cheques are distributed to all the respective banks after sorting. banks usually quote the following rates: y y Travellers cheques selling rate Foreign currency note selling rate 11 BANKING OPERATIONS . The cheques returned paid by the B-1 Branch. Procedure At Axis Branch  At first entry of cheques is done.  Next step is to validate the customer account for purpose regarding whether there is sufficient fund or not. After this exercise.

Packing List. it is realized 12 BANKING OPERATIONS .e. Import (Advance Remittance): -  Application form of the bank and A1 form is to be filled along with performa invoice should be given  IEC (Import Export Code) should be given to the bank for the first transaction and further when the code is identified then it is taken as default IEC code of the respective customer  Then payment is to be done by the Bank on the basis of Performa invoice Note: If below 500000 INR then Bill Sell Rate is taken from the card rate keeping a margin and if above 500000 INR then Treasury decides the rate. Commercial invoice and Bill of Lading to the bank  Then payment is to be done by the Bank on the basis of above details 3.STUDY ON BANKING OPERATION IN AXIS BANK LTD y y y Clean cheques buying rate Travellers cheques buying rate Foreign currency note buying rate Limits Of Lending Foreign Currencies: Basic travel quota: 2000 USD in a financial year Business purposes: 25000 USD Education: 100000 USD Gift: up to 200000 USD Procedure Of Various Forex Transactions 1. Import (Direct Remittance):  Application form of the bank and A1 form is to be filled by the customer  IEC (Import Export Code) should be given to the bank for the first transaction and further when the code is identified then it is taken as default IEC code of the respective customer  Customer has to give the Bill of Entry. 2. Export (Export Collection):  Exporter gives the Bill to the Bank and then lodgement is done  Bank sends the bill to the beneficiary bank  Now the Beneficiary Bank will collect all the details from the customer and sends back the credit to the Bank  And when the SWIFT comes then customer¶s a/c is credited i.

STUDY ON BANKING OPERATION IN AXIS BANK LTD 4. Selling Of Currencies  Application form of the bank along with A2 form should be filled in by the customer and he should be an account holder in the bank  The customer has to submit a copy of his passport and visa along with confirm air ticket and if the customer is NRE then only passport  According to customer need he is given the currencies which is according to CCY Sell rate keeping a margin and then the respective amount is debited from customer¶s a/c 6. the beneficiary bank presents the document to importer¶s bank along with the bill of lading. beneficiary bank and other details given in a SWIFT is matched with the details given by the Head Office about the debit / credit statement in the Nostro Account  If there is an amount less than 500000 INR then TT Buy rate and if above than treasury rate is applied  Then the rate is verified by the TFC and the transaction is done which means customer a/c is credited 5.  As per the contract. packing list. 13 BANKING OPERATIONS . Export (Inward Remittance)  SWIFT related to the transaction comes to the Bank  Then amount. declaration certificate and all other necessary documents  Then importer¶s bank gives an intimation to its importer after receiving the documents and then lodgment is done  The importer arranges for the fund and payment has to be done within the due date. Issuance Of Letter Of Credit  Application is given by the customer with all the terms and conditions along with the insurance contract in case of FOB (Free on Board)  On the basis of these documents LC (letter of credit) is opened and supplier is given intimation about this.

The only condition is that the beneficiary should have a proper Bank account with a Bank in India. This can be the remitter himself or his friends/relatives. Thereafter he/she uses the electronic clearance service in his country to park money in our designated Nostro Account. 14 BANKING OPERATIONS . Such electronic transfer of funds can either be a push transaction (where customer pushes i. as in Power Transfer module of I-connect) or a pull transaction (where the Bank pulls money from the customer account ± as in ECS debits).STUDY ON BANKING OPERATION IN AXIS BANK LTD NRI Services Steps Involved In Sending Money  Step 1: Customer registers on Axis Remit site giving basic KYC (Know your customer) information. the details of which are conveyed to him at Axis Remit site. originates the transfer of funds.  Step 4: Remitter revisits Axis Remit site after completing the transfer (only in the case of CIP (Push) transactions) and keys in the net-transfer reference number in the appropriate module.e.  Step 5: At the back-end. It must be noted that the information provided by customer is cross-checked and the customer id will be disabled later if the KYC check turns negative.  Step 2: Remitter Customer registers one or more beneficiaries for receiving remittances.  Step 3: Remitter initiates a remittance transaction in Axis Remit by mentioning the beneficiary & amount. the service provider (TOML) matches the customer furnished information with Credits in Axis bank Nostro Account and releases payments to beneficiaries. The credits to beneficiaries are passed on by way of account credit (for Axis Bank customers) and NEFT / Demand Draft (for nonAxis Bank beneficiaries).

Execution Of Transaction (sale) Bank receives contract note from broker for sale (t+ o) Bank receives cheques from broker to be credited in customers NREPI/NROPI a/c.STUDY ON BANKING OPERATION IN AXIS BANK LTD PIS Process Flow Beginning Of A Relationship Customer fills up application form along with applicable documentation. Bank will issue PIS permit letter to the customer Execution Of A Transaction(Purchase) Receive contract note from broker for purchase (t + o) Bank debits NREPI/NROPI a/c and credit broker a/c or issue PO favoring broker. Bank computes Capital Gain Tax FIFO basis (for short term) and sends TDS certificate to customer annually. Bank opens SBNRE/ SBNRO/ & NREPI/NRPEO (Demat optional) Bank verify original copy of LOA( Letter of authority) to operate the account. In case of Ban/Caution bank rejects the contract note. BANKING OPERATIONS 15 .

" is when a company (called the issuer) issues common stock or shares to the public for the first time. but can also be done by large privately-owned Companies looking to become publicly traded. Foreign Exchange 1. Nostro accounts are usually in the currency of the foreign country. 2. 16 BANKING OPERATIONS . Bank will collect fund from the customer and put it in the µDisbursement¶ account and sent it back to the particular city bank and then to the party subsequently. Here banks play an important role as they collect funds on behalf of the companies. For example UBS of Switzerland opening an account in AXIS BANK in India. Cash Management Services (CMS): Clearing is an integral part of Cash Management Services. 3. This allows for easy cash management because currency doesn't need to be converted. They are often issued by smaller. In today¶s competitive marketplace. or if AXIS BANK India opens an account in UBS Switzerland then that account is a Nostro account for AXIS BANK India. then the cheque is treated as an outstation cheque. In this. bank makes payment on behalf of its customer when customer has to make payment to his party. Here a bank uses cheques for the purpose of giving dividend. Vostro Account . It referred to simply as an "offering" or "flotation. If the collecting bank and the paying bank are situated in two different clearing zone.STUDY ON BANKING OPERATION IN AXIS BANK LTD Learning From The Study Clearing 1. Nostro Account . 2. younger companies seeking capital to expand.Account held by a particular domestic bank in a foreign bank is called Nostro account. 4. Disbursement It is a payment part of CMS arrangement. Here in the above example given in Vostro account the same account is a nostro account for UBS Switzerland. this is Vostro account for AXIS BANK in India. Dividend Warrant An order of payment (such as a cheque payable to a shareholder) in which a dividend is paid is known as dividend warrant. 5.Account held by a foreign bank in a domestic bank is called vostroaccount. Axis bank cash flow solutions gives maximum control over this vital asset. Local cheques and Outstation cheques: if the collecting and the paying banks are within a same clearing zone. Initial Public Offering(IPO) IPO is a collection part of Cash Management Services (CMS). such a cheque is known as µLocal Cheque¶. effectively managing cash flow can make the difference between success and failure.

It is a safest method transaction as there is no risk involved in it. Loro Account . After receiving the goods and documents payment is made by the importer.An account held by a domestic bank in itself on behalf of a foreign bank. (Prime & Priority) Free iConnect. Direct Import Bill: In direct import bill.Basic(5000/-). the date and time. the names and numbers of the accounts involved in the transfer. and acceptable. the MT category of the transmission. NRI Deposits: Axis Bank offers following four deposits to NRI¶s:  NRE A/C (non resident rupee a/c)  NRO A/C (non resident ordinary a/c)  FCNR A/C 17 BANKING OPERATIONS . a description of the asset being transferred.On domestic & international mobile numbers Mandate/ power of Attorney Facility available Portfolio Investment Scheme and Demat Accounts Free financial advisory services for investment in mutual funds and insurance Free personal accident cover of Rs 200. standardized phrases as described above.000/. the address and code of the receiving bank. NRI Services 1. Benefits provided by Axis Bank to NRI¶s: Axis bank provides following services to their customers:                Balance requirement. Priority(1.(Generally not in practice) 4.00. Prime(25000/-). SWIFT: A SWIFT consists of a one-page document containing the name and code of the originating bank. the name and internal code of the officer initiating the transmission.Internet Banking Facility Mobile Banking. supplier supplies the goods and importer receives the goods and also all required document subsequently.000/-) Free VISA international debit card. 5. The latter in turn would view this account as a nostro account.STUDY ON BANKING OPERATION IN AXIS BANK LTD 3.on debit card Free phone banking facility Tax advisory services facility Auto chequebook replenishment Expert personalized service of dedicated relationship manager Free email alert on customer account transaction PAN application assistance Any branch banking facility 2.

With tremendous leverage available to forex traders the risk is too much to bear for the account size can be affected. Dealing with brokers can be avoided if you know how to utilize forex futures. Brokers can't bargain at the interbank rates.Direct retail traders must hire a broker instead of doing transaction straight in the interbank market themselves. 800). When cheques are brought in from the Clearing house there are chances that it can be lost in transit or in case of outstation cheques. FOREX: Forex is a very huge market but for many retail traders transaction with brokers. Frauds: in today¶s world lot of frauding activity takes place.000! (Example Rs 44. Brokers have the ability to diversify spreads and/or decline a trade during a changeable trading condition. Cost of collection of cheque : Cost of collection of cheques charged by the Clearing House i. For eg: he may chage amount of 40000 to 48000. Exchange Rates provided by service providers can vary.5.As the direct retail trader in the business and as a newbie you must use a broker to trade. Some of them are as follows : 1. actually. NRI Services:  Refunds: some online services providers will not give a refund in case of errors. 300 instead of Rs 44. 18 BANKING OPERATIONS . A broker will broadly quote a fixed spread of 3-20 pips trusting on the currency pair. 3. 4. 2. Reconciliation Problem& Lost in Transit: If the balances of the cheques received and entered does not tally. 3. the broker will be the median in every transaction and is. Hence. and if entries not done then all the Inward cheques are to be returned to the clearing house mentioning link as a problem. A fraudster may rewrite the amount of money on cheque. SBI in Ranchi. Brokers . difference in exchange rate would result in a Rs 500 difference for a Transfer of every US $ 1. the odds might turn against them. Leverage .e. Spreads . 2.  Exchange rate risk: exchange rates provided by service providers may vary. A Rs. no work can be done. claiming inability to reconvert from the rupee or other converted currency. Link Problem: If there is no slink. thus. In this situation a good money management ordinance must be conformed with. No entries can be done.STUDY ON BANKING OPERATION IN AXIS BANK LTD Limitation Of The Study Clearing: 1. The fundamental interbank rate might be as low as 1 pip. making the market. this can direct margin calls.

Clearing is one of its part in which bankers exchange the cheques received from their client and settle the accounts. money market transaction. payment transaction. also minimizes the cost of collecting cheques and reduces the scope of clearing related frauds. The market for NRI services is growing rapidly all over the globe as people migrates all over the world for the purpose of better job and standard living. This is the only market where trading losses can be managed by foreign exchange hedging. This market allows 24 hours of trading. It is a method of conversion of one currency into another. Bank provides variety of services and benefits to the NRI 19 BANKING OPERATIONS . banking operation is mainly a legal transaction which is carried out by bank when executing its specific functions. Banking operation can be categorized into different criteria like in terms of return. etc. Clearing helps in enhancing the customer service as it speeds up the collection of cheques. Banking operation also includes operation carried on foreign exchange. When we look upon the popularity Customer Management Services is one of the important parts of banking operation.STUDY ON BANKING OPERATION IN AXIS BANK LTD Conclusion In a nutshell. Foreign exchange market is the largest and most liquid market in the world which allows investors to make investment all around the globe. security transaction. fee and commission business.

com Wikipedia.org Ambest.com 20 BANKING OPERATIONS .com Answers.STUDY ON BANKING OPERATION IN AXIS BANK LTD Bibliography         AXIS bank guidelines RBI guidelines AXIS bank knowledge point Axis bank .com Ubs.

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