SUMMER INTERNSHIP TRAINING

PROJECT REPORT

G.H.PATEL POST GRADUATE INSTITUTE OF

BUSINESS MANAGEMENT
SARDAR PATEL UNIVERSITY
VALLABH VIDYANAGAR,
ANAND,GUJARAT.

Basics of Banking sector

Submitted by
Dhaval Parmar
Div-A
18009
 PREFAC
E
This report is prepared to fulfill the requirement of the MBA program of
Sardar Patel University on “BASICS OF BANKING.” I did my summer
Internship at BHARAT CO OPERATIVE BANK which is located in
Vadodara.
Summer internships offer the important opportunity to work closely with
professionals in your field, and to develop knowledge, competencies, and
experience related directly to your career goals. If managed correctly,
internships will lead to new contacts, mentors, and references. With
recommendations in hand from business relationships developed during a
summer internship, securing a job becomes that much easier. According to
Catherine Ahlgren, Assistant Dean for Career Services, Boston University
School of Management, summer internships are essential for MBA
candidates changing careers or with less work experience than their peers.
“The competition is greater now that many candidates have more years of
relevant experience; the more prepared a candidate is, the better their
chances of success.”
 ACKN
OWLEDGMENT

“Thank You is the best prayer that anyone could say. I say that a lot.
Thank You expresses extreme gratitude, humility,
and understanding.”

-Alice walker

As the outset I am grateful to BHARAT CO OPERATIVE BANK for

giving me the opportunity to do my summer internship with them.
I take this opportunity to thank Mr. Vinod Ranchodbhai Valand
(Activity branch manager, BHARAT CO OPERATIVE BANK) who
not only served as my guide, but also encouraged and challenged me
throughout my summer internship program. He gave me his valuable
time and guided me at each step with his experience and provided me
all the required information.
I express my gratitude to our placement officer Dr. K. S. Prasad for
arranging the summer training in good schedule.
I would also like to thank all the faculty members of G H Patel
Postgraduate Institute of Business Management for their critical advice
and guidance without which this project would not have been possible.
My sincere thanks to all my friends and family members who took
active interest in my project and were always there to give their word of
valuable guidance.
I duly acknowledge with gratitude the help and cooperation received
from the entire BHARAT CO OPERATIVE BANK team.

BANK OVERVIEW
Shree Bharat Co-operative Bank Limited, Vadodara has banking license of
Reserve Bank of India, Ahmedabad (License no: UBD/GJU0035P) dtd 18-
5-2009. Bank registered under Gujarat state Co-operative Credit Societies
Act,1961 (Registration No. is 17379), with an ISO Certificate of quality
Managment system (Certificate No. GUJ/Q-1846). Bank currently has
more than Rs. 100 crore of deposit. Registered head off2 of bank is at
"Shakar Sadhna" Near Wadi Tower, Wadi' Vadodara.
In olden days there was a Bharat Vyam Mandir at DaliaWadi. As the days
past the strength of people coming to Vyam Mandir was decreasing day by
day. As it was a Vyam Mandir it consisted a Tample if Lord Hanuman, oil,
Sindur, service, lights, etc was needed but every time there were more
expense than income. So at the time meeting was held by all the young
people who was coming to vyam mandir and explained to save 1Rs every
month and after that it was decided the internet Which will be received
from amount which was contributed, will be used for undertaken for
welfare and development of Vyam Mandir. In this manner thirteen people
came together, all of them were working at Yamuna Mill and from these
"SHREE BHARAT YUVAK MANDAL " came into existence in year
1942.

At the end of five years Shree Bharat yuvak Mandal had the capital of
Rs.1200/- After which a meeting was called and all the members were
agreed to registered this Mandal. Shree Kevdabaugh Navapura Sahakari
mandali's president Shree Narayanrav yashvantari Raut and Alibhai helped
a lot on behalf of Shree Raut society for explaining the rules and
regulation from 10:00 till 7:00 am in morning. After which the procedure
to register the society was undertaken and by these way Shree Bharat
Vyam Mandir become Shree Bharat yuvak and at last "SHREE BHARAT
CO OPERATIVE CREDIT SOCIETY LIMITED VADODARA". was
came into existence.
Then after people joined shree Bharat Co-operative Credit Society Ltd.
and got services of low rate of interest on loan. India got independence in
August 1947 and exactly after fifty days of indepen dence on 4th October
1947 "SHREE BHARAT CO OPERATIVE BANK LIMITED
VADODARA." Bank now has completed 75 years of success.

Services provided by Shree Bharat Co Operative Bank Ltd

 1. Cash Credit to Retail Traders & Whole sellers

1. A cash credit is a drawing account against credit limit granted by the

bank and is operated in almost the same manner as a overdraft account.
2. The distinction between van overdraft and a cash credit is in the nature
of the security.
3. When the advance is secured by the pledge/ hypothecation of goods or
produce, it is treated as a cash credit account.
4. The security may be changed from time to time according to the
borrower's business requirement provided it always fully covers the
balance outstanding the account (with the stipulated margin).

2. Apply Loan
Bank provides a specific amount that has a specified repayment schedule
and a floating internet rate. Term loans almost mature between 1 to 10
years

3.Opening a account
Bank offers the facility of savings and current account at the lowest rate
without any  hidden charges. current the depositing of minimum amount is
Rs. 2000.
Saving account can be opened by depositing the minimum amount that is
Rs. 500.

4. Fund transfer
Bank provides a facility to transferee funds from one bank to another
electronically. Fund's are immediately credited to the second bank and
debited from first. Shree Bharat Co-operative bank has a tie up with
HDFC  bank for RTGS and IFSC code is HDFC0CSBCBL

5. Payment Government Taxes Online

Bank provides facility to its customers/ Tax payers to make E-payments of
all Direct Taxes. Customers can avail this facility from any bank branch of
Shree Bharat Co operative Bank Ltd.
1. Corporate Tax - Tax on companies and tax deducted at sources from
companies 
2. Other Tax Deducted or collected at source (TDS or TCS) on salaries of
employees, income from Fixed Deposits, Vendor payments, rent, Income
from Game shows
3. Income Tax
4. Any other Direct Tax including Advance Tax

Cash Credit
A Cash Credit (CC) is a short-term source of financing for a company. In
other words, a cash credit is a short-term loan extended to a company by a
bank. It enables a company to withdraw money from a bank account
without keeping a credit balance. The account is limited to only borrowing
up to the borrowing limit. Also, interest is charged on the amount
borrowed and not the borrowing limit.

Example of Cash Credit

Company A is a phone manufacturer and operates a factory where the
company invests money to purchase raw materials to convert them into
finished goods. However, the finished goods inventory is not immediately
sold. The company’s capital is stuck in the form of inventory. In order for
Company A to meet its expenses while waiting for their finished goods
inventory to convert into cash, the company takes a cash credit loan to run
their business without a shortfall.

Cash credit is more commonly offered to businesses than individuals. It

requires that a security be offered up as collateral on the account in
exchange for cash. This security can be a tangible asset, such as stock, raw
materials, or another commodity. The credit limit extended on the cash
credit account is normally a percentage of the value of the
collateralized security.

Sometimes a financial institution offers a cash reserve account but calls it

a cash credit. A cash reserve is an unsecured line of credit that acts
like overdraft protection. It typically offers higher overdraft limits and has
smaller real interest costs on borrowed funds than an overdraft, since
penalty fees are not triggered for using the account.

It is common for a cash credit to be renewed annually for a business line.

However, an account holder's access to overdraft protection is reviewed
annually and may or may not be re-approved by the bank.
 Fixed Deposit
Fixed deposit is investment instruments offered by banks and non-banking
financial companies, where you can deposit money for a higher rate of
interest than savings accounts. You can deposit a lump sum of money in
fixed deposit for a specific period, which varies for every financier.

Once the money is invested with a reliable financier, it starts earning an

interest based on the duration of the deposit. Usually, the defining criteria
for FD is that the money cannot be withdrawn before maturity, but you
may withdraw them after paying a penalty.

Taxability on Fixed Deposit

The interest earned from fixed deposit is taxable. The tax deducted at
source on FD can range from 0% to 30%, depending on income tax
bracket of the investor. Financiers deduct 10% TDS if your interest earned
is more than Rs. 10,000 in a year, if your PAN details are available with
them. However, in case your PAN details are not provided to your
financial institution, 20% TDS will be deducted.

If your total income is below the minimum tax slab of 10%, you can claim
a refund of the deducted TDS. You can also avoid the deduction by
submitting Form 15G to your financial institution, and submitting Form
15H if you’re a senior citizen. If you fall in the higher tax bracket (20% or
30%), you would have to pay extra tax over and above the TDS deducted
by your NBFC or bank.

Current account
Current bank accounts are very popular among companies, firms, public
enterprises, businessmen who generally have higher number of regular
transactions with the bank. The current account includes deposits,
 withdrawals, and contra transactions. Such accounts are also called the
Demand Deposit Account.
A Current account can be opened in most of the commercial banks. A
current account being a zero-account, is generally associated with huge
transactions on a regular basis. Because of the fluidity that these accounts
offer, they don’t earn any interest. These also usually do not carry a limit
on the number of transactions which can be made.

Savings Account
A savings account is an interest-bearing deposit account held at a bank or
other financial institution that provides a modest interest rate. Financial
institutions that offer savings accounts may limit the number of
withdrawals from an account each month. They also may charge fees
unless you maintain a certain average monthly balance in the account. In
most cases, banks do not provide checks with savings accounts.

Difference between Current account & Saving

account

● Meaning 
A savings account is a deposit account which allows limited transactions,
while a Current Account is meant for daily transactions.
● Suitability
A savings account is most suitable for people who are salaried employees
or have a monthly income, whereas, Current Accounts work best for
traders and entrepreneurs who need to access their accounts frequently.
● Interest
Savings accounts earn interest at a rate of around 4%, while there is no
such earning from a Current Account. A Current Account is actually a no
interest-bearing deposit account.
● Overdrawing
When you withdraw more money from the account, than is actually there,
then your account is said to be overdrawn. In the case of a savings
account, banks neither offer nor allow overdraft facilities, whereas, this
facility is provided with a Current Account.
● Minimum balance
The minimum balance required to maintain a savings account is usually
low, but for a Current Account it is much higher in comparison..
This should clarify the differences in the purpose and function of Current
Account and Savings Account.

Fund transfer Methods:

National Electronic Fund Transfer (NEFT)

The National Electronic Fund Transfer is perhaps one of the most common
ways of transferring money online from one bank account to another. In
this method, there is no cap on the amount of money that can be
transferred. However, individual banks may have set their own limits.
Also, do remember that each transfer cannot exceed Rs 50,000.

To initiate a NEFT transfer, you must have the bank IFSC code, along
with details such as bank account number, bank branch, and account
holder name, among other details.

You can make a transfer with this method between 9 am and 7 pm on

weekdays, and between 9 am and 1 pm on Saturdays.

Real Time Gross Settlement (RTGS)

This fund transfer method ensures that the money is sent in ‘real time’
without any delay. The minimum amount for this transaction is Rs 2 lakh,
and there is no cap on the maximum amount that can be transferred.
The transfer happens on a real-time basis throughout the RTGS business
hours, which are 9 am to 4.30 pm on weekdays, and 9 am to 2 pm on
Saturdays. It takes approximately thirty minutes for the money to be
credited into the account of the beneficiary.

IFSC Code

FSC stands for Indian Financial System Code. It’s an 11-digit code written
in an alphanumeric format, and it identifies the branches in the National
Electronic Funds Transfer (NEFT) network. The Reserve Bank of India
(RBI) uses IFSC for electronic money transfers between banks, as the code
can quickly identify where the funds are coming from and where they’re
going.

An IFSC will start with four letters that represent a bank’s name. These
letters are followed by six characters that are usually numbers but could
also be letters, and they represent the specific branch of the bank. The last
character is a 0.
Difference between RTGS Vs. NEFT
The fundamental difference between RTGS and NEFT, is that while
RTGS is based on gross settlement, NEFT is based on net-settlement.
Gross settlement is where a transaction is completed on a one-to-one basis
without bunching with other transactions. On the other hand a Deferred
Net Basis (DNS), or net-settlement means that the transactions are
completed in batches at specific times. Here, all transfers will be held up
until a specific time. RTGS transactions are processed throughout the
working hours of the system.
RTGS transactions involve large amounts of cash, basically only funds
above Rs 200,000 may be transferred using this system. For NEFT, any
amount below Rs 200,000 may be transferred, and this system is generally
for smaller value transactions involving smaller amounts of money.
RTGS processes in real-time (‘push’ transfer), while NEFT processes in
cycles during the given working day. This causes a NEFT transaction that
is initiated later than the last cycle to be completed the next day.
So if you want to transfer large sums of money real time RTGS is better
but for small amounts where there is not much urgency NEFT is a Better
Option. Usually RTGS costs more than NEFT Transactions.

BANK DAY BOOK

Posted By G.S. Bansal, On November 19, 2011 Bank day book is called as
bank journal or bank book also. Bank vouchers are are prepared relating to
all payment or receipts through bank then these vouchers are recorded in
bank book. Bank book is divided in to two parts i.e. receipt side and
payment side. Receipt side is called as debit side of bank book and the
payment side is called the credit side of bank account. Both debit and
credit sides have the columns like date, particulars, ledger folio and
amount. In date column the date of voucher is written, in particulars the
account head other than bank account is written, ledger folio is used when
the entry is posted to ledger and in amount column the amount of voucher
is written.
All bank payment vouchers or cheque payment voucher are recorded in
payment side and all bank receipt or cheque receipt vouchers are recorded
in receipt side. Contra vouchers relating to bank are also recorded in bank
book. If the cash is withdrawn from bank then the voucher is written
payment side of bank book if the cash is being deposited into bank the
contra voucher is recorded in receipt side of the bank book. Suppose, a
business firm is having more than two bank accounts then two column or
three column bank books can be used.
Keeping in view the size of bank transactions, separate bank books can be
maintained for different banks. The bank book is maintained by the cashier
or accountant. The balancing of bank book is done on daily basis.
Balancing means all receipt minus all payments. But like cash book it is
not necessary that the balance as per bank book must tally with the balance
as per banks. there may be so many reasons. Because of those reasons the
balance as per bank book and balance as per bank may differ. The pages of
bank book are always serially numbered.

CKYC Form:
Central KYC Registry or CKYCR will now replace the existing multiple
KYC submission process while opening savings bank accounts, buying
life insurance or investing in mutual fund products into one time
centralized process.
The Government of India has authorized the Central Registry of
Securitization and Asset Reconstruction and Security interest of India
(CERSAI) to manage this Central KYC Registry process. From 1st
August, 2016 this new process will be applicable to all individuals.
Hence, it is important for all individuals to know the contents of Central
KYC Registry or CKYCR form. Also, you must aware of how to fill the
form.
The beauty of this new form is that in the single form itself you will find
the new KYC registration and modification feature. Also, the FATCA
declaration is also available in same KYC form. As of now, you have to
declare when you are investing. However, it is now made it mandatory of
FATCA declaration while completing the KYC Process itself.
CRITICAL OBSERVATIONS
Throughout my internship program, I have observed some aspects of this
branch. They are given below:
•Bank employees were very much co-operative and friendly. They were
extremely patience while giving me guidelines before assigning me to any
kind of task.
•The authority of this branch is very strict about punctuality. Each day a
prayer is performed before starting the regular banking hour and it is
mandatory for all the staffs to attend the prayer on time.
Despite the above positive responses, I have also come across some
negative issues. They are given below:
•Lack of manpower: The workload of the branch is very high compared to
other branches of Bank of Baroda. But they do not have enough work
forces to manage the work pressures. If one employee is absent or on a
leave, another employee from same department has to look after the
responsibilities of two people. This can cause lack of motivation.
•Lack of dynamic and prompt customer service: Since number of new
banks is increasing and they are introducing a very competitive customer
service. Now a days people have very little time to waste and want fastest
and unique services in short time. But there are only two employees
handling the overall customer service department. So, sometimes they do
not get the time to satisfy all the customers and customers have to wait a
long time and lost their patience.
•Unsatisfactory software performance: Bank uses Finical software to
perform their tasks. But sometimes the server becomes very slow and the
software does not work properly.
•Lack of proper compilations and maintenance of files: The branch gives
personalized services. All the officers have to give concentration to the
customers, while doing this they cannot properly completed and maintain
the customer files. In many cases, most of the files and papers are kept
here and there by the officers during the busy hour.
•Customer complaints: Customers often complain unavailability of the
bank’s ATM booth as well as passbook printing machine.

CHALLENGES
FACED
● Lack of customer interaction while talking to them on calls
● Some small mistakes while opening savings account with the
tablet
● Difficulties in making couriers and making entries in the courier
book

CONCLUSION
During the two months of internship program at Bank of Baroda almost all
the desk have been observed. This practical orientation program, in first
has been arranged for gaining knowledge of practical banking and to
compare this practical with theoretical knowledge. Comparing practical
knowledge with theoretical involves identification of weakness in the
branch activities and making recommendations for solving the weakness
identified. I got the chance to gather practical experience for the internship
program. However, highest effort has been given to achieve the objectives
the internship program