Business Servite> (a) To provide short-term, medium-term and long-term loans for agriculture and its allied activities. (b) To extend refinancing facility to the commercial and the cooperative banks on agricultural loans. (©) To provide finance for encouraging the export of specific commodities. (4) To perform research work for rural upliftment. Functions of Commercial Banks Functions of the commercial banks have been divided into four categories: (1) Primary Functions (2) Secondary Functions (3) Electronic Banking Services @ (1) Pri inctions have two primary functions—accepting deposits and advancing loans. (A) Accepting Deposits: The bank accepts the deposits from public. People deposit their money as per their convenience and capability in the following accounts: (i) Fixed or Time Deposit Account: Money is deposited in this account for a fixed period. _TIhe depositor gets.a fixed deposit receipt. The receipt contains the name of the depositor, the amount deposited, the rate of interest and the period for which the deposit is made. This receipt is not transferable. If the depositor needs this money before the completion of the deposit time period, then bank refunds this money to him after charging some discount. The money deposited in this account earns maximum interest. The rate of interest is determined by the banks as per the requirement. For example, the rate of interest may be lower for the longer period. Money deposited in this account is also known as the Time Liability of the Bank. (ii) Current Account: In this account, a depositor can deposit money any number of time and can withdraw it as and when he requires it. In this account, generally business class deposits the money. Generally, the bank does not pay any interest on this deposit. If the total amount deposited is less than the minimum amount required, then the bank can charge some service charges. Money is withdrawn from this account by cheque. Money deposited in this account is known as the Demand Liability of the Bank. (iii) Savings Deposit Account: This account is to encourage the small savings. The bank pays interest on this account which is less than that of fixed deposit account Money deposited in this account is known as Demand Liability of the Bank. (iv) Recurring Deposit Account: In this type ofaccount, a depositor depositsa fixed amount of money for a fixed period. The money is deposited on monthly basis. This money cannot be withdrawn before the expiry of a fixed term except in certain conditions. ‘The amount of interest which is received on the money deposited in this account is re-deposited along with the principle. This account attracts higher interest in comparison to other accounts like the Fixed Deposit Account. Money deposited in this account is known as Time Liability of the Bank. Scanned with CamScannerr _ (v) Multi Option Deposit Account: It is a type of Savings Bank Account in which dg in excess of a particular limit gets automatically transferred into Fixed Depositrts! Deposit. On the other hand, in case adequate fund is not available in our Say," Bank Account so as to honour a cheque that we have issued, the required amo gets automatically transferred from Fixed Deposit/Term Deposit to the Savings Rat Account. The balance amount continues as Fixed Deposit and earns interest as existing rate of interest. It is to be noted that one can earn higher rate of interest f;, a Fixed Deposit Account than from a Savings Bank Account. Therefore, the accoy, holder has twin benefits from this account — (i) he can earn more interest and (ij lowers the risk of dishonouring a cheque. (B) Advancing Loans: Another main function of a bank is to advance loans to people. A ban receives money through deposits. A certain part of this money is transferred to the cay reserve and the balance is used by the banks for advancing loans. These banks general provide loans for productive works and while doing so, they demand a proper security, Thp amount of loan is generally lower than the value of security. The banks advance loans of thy following types: Drfivent Servite, prondd by 600% ii Credit: Under this, a borrower is allowed to withdraw a specific amount on th basis of a specific security. The borrower withdraws the money and deposits it with thjsspecific limit only. The bank charges interest only on the money withdrawn. ty Ocnan The customer, who maintains a current account with the bank, take permission from the bank to withdraw more amount than deposited in his accoun ‘The extra money withdrawn is called Overdraft. This facility is available to trustworthy customers for a small period. For instance, if in an individual's account & 10,000» deposited and the bank has allowed him to issue a cheque upto & 12,000, then & 2,000 overdraft facility. Sif Demand Loan: These loans are provided by the banks against the security of Fixe Deposit’ Receipt (FDR), Govt. Securities, Life Insurance Policies etc. These loans a led demand loans because the bank can demand them at any time. yr ge Loan: These loans are provided by the banks to their customers for a fixed perics to purchase machinery, truck, scooter, house etc, The borrowers repay these loans monthly/ quarterly/half yearly/annual installments. (v) Discounting of Bill of Exchange: This is another method of providing advances t the banks. Under this, a bank gives money to its customers on the security of a BM of Exchange before the expiry of the bill in case a customer needs it. After chargir discount for the remaining period of the bill, the bank makes immediate paymei against the bill. A bank discounts only the trade bills. The bank charges interest fro them as per the market rate and realises its money on the completion of the period: the Bill of Exchange. Scanned with CamScanner0) Secondary Functions Besides the primary functions, banks perform various secondary functions also such as agency functions and general utility functions. (A) Agency Functions: A bank performs various agency functions for its customers: (i) Collection and Payment of Various Items: A bank collects cheque, rent, interest, etc. on behalf of its customers and pays taxes, insurance premium etc. as per their instructions. (ii) Purchase and Sale of Securities: A bank performs the function of sellingand purchasing securities on behalf of its customers. (iii) Trustee and Executor: As per the instruction of their customers, banks perform the function of a trustee and an executor for their assets. (iv) Remittance of Money: Remitting money from one place to another is also done by the banks. This is done through bank drafts. (¥) Purchase and Sale of Foreign Exchange: Banks encourage the foreign trade by selling and purchasing the foreign exchange, Generally, this function is performed by the foreign commercial banks and some authorised branches of the public sector Indian commercial banks, (vi) Letter of Reference: Banks provide information of financial conditions of their customers to traders of the same or other countries. In the same manner, banks collect the si formation about traders of the same or other countries for their customers. (vii) Baffk Draft: A bank draft is a financial instrument with the help of which money can be Temitted from one place to another. Anyone can obtain a bank draft after depositing the money in the bank. The bank charges some commission in liew of issuing a bank draft. ‘The amount of commission varies from bank to bank. A bank may issue bank draft even free of cost depending on the customer’s relation with the bank. ‘The bank issues a draft for the amount on its own branch at other places or on other banks (only in case of tie-up with those banks) at those places. The payee can present the draft on the drawee bank at his place and collect the money. As bank draft funds are withdrawn directly from a bank’s fund, not from an individual's account, it is less risky for a creditor. It will be honoured by the drawee bank unless the draft is forged. Features of a Bank Draft: The following are the main features of a bank draft: (a) Through bank draft money can be remitted from one place to another. (b) ‘The issuing bank charges some commission for it. (©) Itis less risky for the creditor as it has no danger of being dishonoured. (viii) Banker’s Cheque or Pay Order: A banker's cheque or pay order is almost like a bank draft. It refers to that bank draft which is payable within the town. It can be termed as local bank draft. Banks issue pay order for local purpose and issue bank draft for outstations, The commission on pay orders is slightly lesser than bank draft. Like a bank draft, it will be honoured by the drawee bank unless it is forged. Hence, it has no danger of being dishonoured. Scanned with CamScannerto their customers who are importing goods and help them a0.” (iii) Business Information and Statistics: As the banks are aware of the economic conditior they can advise their customers on financial matters by collecting business informatio: and statistics. ° ) Boat Banking Services/E-Banking ag ith the introduction of computer and Internet, a novelty has crept into the working of the banks. Using computer and Internet in the functioning of the banks is called electronic banking. Because of these services the customers do not need to go to the bank every time as has made transactions with the bank possible at any time and from any place. The chief electronis services are the following: Types 7 gigitel Pom (1) Elecfronic Fund ‘Transfer (EFT): Under this system, money can be transferred from on Hf account to another account. The following are the chief examples of the direct crediting am biting: Electronic Fund Transf Itrefers to the computerised system for performing financia. ‘transactions. Ay Direct Credits: Direct credits include dividend on shares, interest on debenture’ commission, salary and pension, etc. {i Direct Debits: This includes telephone and electricity bills, loan installment, insurane installment, club membership fee, credit card dues, etc. ‘The following are the advantages of the Electronic Fund Transfer: (i) Payment on due date (ii) No loss in transit (iii) No mishandling of cash (iv) Effortless transactions Automated Teller Machine—ATW? No expenses on correspondence. It refers to an electronic terminal that allows people wit (2) Automated Teller Machine (ATM): ATM is | plastic car perm simple banking tasachns 2 an automatic machine with the help of which | hours aday without the help ofa human teller. Scanned with CamScannerBusiness Services ¢ money can be withdrawn or deposited by inserting the card and entering your Personal Identification Number (PIN). This machines operates for all the 24 hours) This has reduced the work of an employee (teller) by more than half. The ATM is getting oa everyday. (3y Debit Card: (oa Card is issued to a customer in lieu of his money depositéd in the bank. The customer can make immediate payment of goods purchased or services obtained on the basis of his debit card provided the terminal facility is available with the seller. Jhrough this medium the money is transferred from the aceetint of the purchaser to the account of the seller, With the help of the debit card money can also be withdrawn from the ATM ATM. (4) Codi Card: A bank issues a credit card to jose of its customers who enjoy good Debit Card? reputation. Itis not necessary that a customer |i jefrsta asc card that alls thebankto take money should have money in the bank in order to get | trom the customer's account and transfer it toa selr’s a credit card. This is a sort of overdraft facility, | account With the help of this card the holder can buy goods or obtain wise name of the issuing bank, the name of the holder and his/ Credit Card? her identity alongwith the date of validity are | It efas toa plastic card tat allows the customer to buy inscribed on the credit card. The credit card _| tam Fa back the leaned amour to bank at fre holder keeps on depositing the money used according to the agreement with the bank. (5 banking: Under this facility, a customer can get information about the balance in his \ account or information about the latest transactions on the telephone. This facility is available round the clock. (6) Core Banking: The complete name of this banking system is ‘Core Banking Solution’ or ‘Centralised Banking Solution’ popularly known as CBS. CBS is that banking system which makes banking convenient by changing the status of a customer from ‘Customer of a Branch’ to ‘Customer of the Bank facilitating speedy and effective banking anywhere and at all times. In this system, a customer by opening a bank account in one branch (which has CBS facility) can operate the same account in all CBS branches of the same bank anywhere across the country. It is immaterial with which branch of the bank the customer deals with when he/she is a CBS branch customer, A CBS customer is given a unique ID, It will identify the customer asa privileged CBS customer which gives the customer the ease of opening any account withe any of the CBS branches without necessitating fresh photographs, introduction, etc. Facilities Available to CBS Customer: (i) Cash withdrawal facility from any of the CBS branches, (ii) Instant transfer of funds between the accounts across the country under CBS branches. (iii) Pass Book can be updated across the branches under CBS. Scanned with CamScanner| 4.4Pos Telecom | Aérvices “dl | Indian post and telegraph department provides vari | description is given below: | @ Modes of Postal and Telecom Services The modes of communication have been indicated in Scanned with CamScannerevaded; In India, telephone service was started’ by the post and telegraph deparn, comking to a person in the same city is called a local call whereas talking to 4 Pegi c other city is known as trunk call. Presently, STD (Subscriber Trunk Dialling) a ternational Subscriber Dialling) facilities are also available. Now, through the meg; [st we can talk to a person in some other city and through the medium of ISD we a, . to a person in some other country. Telephone is the best medium for quick commun a both in and outside the country. These days the telephone service is being provided by, Videsh Sanchar Nigam Ltd, (VSNL), Bharat Sanchar Nigam Ltd. (BSNL) etc. Telephy, used to communicate business as well as personal messages. UPC: UPC stands for ‘Under Postal Certificate’ It refers to that postal certificate whig, issued by the post office as an evidence of posting the letter. When ordinary letters are posted, the post office does not issue any receipt. However, sender wants to have a proof that he/she has actually posted the letter, then a certif can be obtained from the post office on payment of prescribed fee. In order to have su certificate you just need to write the complete address of the receiver and sender on paper and affix the required postage on it. This paper along with the letter is handed ove the postmaster. The post- master will put its seal on that paper and return it to you. This pyy now serves as an evidence of posting the letter in case of any dispute about communica () AGistered Posty It refers to that type of post facility under which it is ensured that the. is definitely delivered to the addressee otherwise it should be returned to the sender, ‘These mails are handed over to the post office after affixing additional postage as registray charges upon receiving the mail the post office immediately issues a receipt to the se which also serves as a proof that the mail has been posted. To distinguish them fron ordinary mail, all registered mails are superscribed as ‘Registered Post. Ifsender wantsto confirm that his/her mail has been delivered to the addressee, the post « provides another facility. Generally, registered posts are handed over to the addressee getting their signature on some postal document. But it is not intimated to the sender w he specifically asks for it. Ifthe sender wants to have intimation, then an ‘Acknowledgyy) Due’ card can be sent along with the registered mail. This card is signed by the rea (addressee) on delivery of the mail and returned to the sender by post. The Acknowledgry, Due cards are available at all the post offices. The sender of the registered post is requ to write his complete postal address on it and tag it to the envelope. The envelope muy spperscribed as ‘Registered Post with AD’ (6)/ Parcel Post: It refers to that type of post facility under which articles can be sent acrost country as well as outside the country. Suppose we hvant to send a mobile phone to our friend who is staying in the nearby city. this purpose we can avail the parcel post service of the post office. Under this service, par of specified size and weight can be sent to other places. Postal charges vary accordinyy weight of the parcel. Separate postage is to be paid for inland and foreign parcel post. (4) 226 Scanned with CamScannerBusiness Services q (a) To provide short-term, medium-term and long-term loans for agriculture and its allied activities. (b) To extend refinancing facility to the commercial and the cooperative banks on agricultural loans. (c) To provide finance for encouraging the export of specific commodities. (€) To perform research work for rural upliftment. Functions of Commercial Banks Functions of the commercial banks have been divided into four categories: (1) Primary Functions (2) Secondary Functions (3) Electronic Banking Services e Mpa have two primary functions—accepting deposits and advancing loans, (A) Accepting Deposits: The bank accepts the deposits from public. People deposit their money as per their convenience and capability in the following accounts: (i) Fixed or Time Deposit Account: Money is deposited in this account for a fixed period. The depositor gets a fixed deposit receipt. The receipt contains the name of the depositor, the amount deposited, the rate of interest and the period for which the deposit is made. ‘This receipt is not transferable. Ifthe depositor needs this money before the completion of the deposit time period, then bank refunds this money to him after charging some discount. The money deposited in this account earns maximum interest. The rate of interest is determined by the banks as per the requirement. For example, the rate of interest may be lower for the longer period. Money deposited in this account is also known as the Time Liability of the Bank. (ii) Current Account: In this account, a depositor can deposit money any number of time and can withdraw it as and when he requires it. In this account, generally business class deposits the money. Generally, the bank does not pay any interest on this deposit. Ifthe total amount deposited is less than the minimum amount required, then the bank can charge some service charges. Money is withdrawn from this account by cheque, Money deposited in this account is known as the Demand Liability of the Bank. (iii) Savings Deposit Account: This account is to encourage the small savings. The bank pays interest on this account which is less than that of fixed deposit account} Money deposited in this account is known as Demand Liability of the Bank. (iv) Recurring Deposit Account: In this type of account, a depositor depositsa fixed amount of money for a fixed period. The money is deposited on monthly basis. This money cannot be withdrawn before the expiry of a fixed term except in certain conditions. ‘The amount of interest which is received on the money deposited in this account is re-deposited along with the principle. This accountaattracts higher interestin comparison to other accounts like the Fixed Deposit Account. Money deposited in this account is known as Time Liability of the Bank. 189 Scanned with CamScannerDil psusness Studies (v) Multi Option Deposit Account: It is a type of Savings Bank Account in which ep, in excess of a particular limit gets automatically transferred into Fixed Deposit/[, Deposit. On the other hand, in case adequate fund is not available in our Say, Bank Account so as to honour a cheque that we have issued, the required amoy,\ gets automatically transferred from Fixed Deposit/Term Deposit to the Savings Bay, Account. The balance amount continues as Fixed Deposit and earns interest as Pay existing rate of interest. It is to be noted that one can earn higher rate of interest fron a Fixed Deposit Account than from a Savings Bank Account. Therefore, the accouy, holder has twin benefits from this account — (i) he can earn more interest and (i), lowers the risk of dishonouring a cheque. (B) Advancing Loans: Another main function of a bank is to advance loans to people. A bani) eceives money through deposits. A certain part of this money is transferred to the cay, reserve and the balance is used by the banks for advancing loans. These banks general, provide loans for productive works and while doing so, they demand a proper security. The amount of loan is generally lower than the value of security, The banks advance loans of the » following types: Aiflevent Cenvite, provid ty San% (i Gash Credit Under this, a borrower is allowed to withdraw a specific amount on the basis of a specific security. The borrower withdraws the money and deposits it within peda limit only. The bank charges interest only on the money withdrawn. ii7Overdraft: The customer, who maintains a current account with the bank, takes » permission from the bank to withdraw more amount than deposited in his account The extra money withdrawn is called Overdraft. This facility is available to trustworthy customers for a small period. For instance, if in an individual's account & 10,000 is deposited and the bank has allowed him to issue a cheque upto & 12,000, then & 2,000is overdraft facility. iif Demand Loan: These loans are provided by the banks against the security of Fixed Deposit Receipt (FDR), Govt. Securities, Life Insurance Policies etc. These loans are Ned demand loans because the bank can demand them at any time. ) Term Loan: These loans are provided by the banks to their customers for a fixed period to purchase machinery, truck, scooter, house etc, The borrowers repay these loans in monthly/ quarterly/half yearly/annual installments. (v) Discounting of Bill of Exchange: This is another method of providing advances by the banks. Under this, a bank gives money to its customers on the security of a Bill of Exchange before the expiry of the bill in case a customer needs it. After charging discount for the remaining period of the bill, the bank makes immediate payment | against the bill. A bank discounts only the trade bills. The bank charges interest from them as per the market rate and realises its money on the completion of the period of the Bill of Exchange. Scanned with CamScanner|| EE ee | (2) Secondary Functions Besides the primary functions, banks perform various secondary functions also such as agency functions and general utility functions. (A) Agency Functions: A bank performs various agency functions for its customers: (i) Collection and Payment of Various Items: A bank collects cheque, rent, interest, etc. on behalf of its customers and pays taxes, insurance premium etc. as per their instructions. (ii) Purchase and Sale of Securities: A bank performs the function of selling and purchasing securities on behalf of its customers. (iii) Trustee and Executor: As per the instruction of their customers, banks perform the function of a trustee and an executor for their assets. (iv) Remittance of Money: Remitting money ftom one place to another is also done by the banks. This is done through bank drafts. (v) Purchase and Sale of Foreign Exchange: Banks encourage the foreign trade by selling and purchasing the foreign exchange. Generally, this function is performed by the foreign commercial banks and some authorised branches of the public sector Indian commercial banks, (vi) Letter of Reference: Banks provide information of financial conditions of their customers to traders of the same or other countries. In the same manner, banks collect the s formation about traders of the same or other countries for their customers. (vii) Bask Draft: A bank draft is a financial instrument with the help of which money can be emitted from one place to another. Anyone can obtain a bank draft after depositing the money in the bank. The bank charges some commission in liew of issuing a bank draft. ‘The amount of commission varies from bank to bank. A bank may issue bank draft even free of cost depending on the customer's relation with the bank. The bank issues a draft for the amount on its own branch at other places or on other banks (only in case of tie-up with those banks) at those places. The payee can present the draft on the drawee bank at his place and collect the money. As bank draft funds are withdrawn directly from a bank's fund, not from an individual's account, it is less risky for a creditor. It will be honoured by the drawee bank unless the draft is forged. Features of a Bank Draft: The following are the main features of a bank draft: (a) Through bank draft money can be remitted from one place to another. (b) ‘The issuing bank charges some commission for it. (c) Itis less risky for the creditor as it has no danger of being dishonoured. (viii) Banker’s Cheque or Pay Order: A banker's cheque or pay order is almost like a bank draft. It refers to that bank draft which is payable within the town. It can be termed as local bank draft. Banks issue pay order for local purpose and issue bank draft for outstations. The commission on pay orders is slightly lesser than bank draft. Like a bank draff, it will be honoured by the drawee bank unless it is forged. Hence, it has no danger of being dishonoured. 191, Scanned with CamScanner(2) {2 (a) CIS almost UKE d Dallk Chel (b) Itis payable within the town. (c) The issuing bank charges commission on it. (d) Ithas no risk of being dishonoured. (B) General Utility Services: Commercial banks perform the type of functions which are helpy to general public. These functions are as follows: (i) Locker Facilities: Banks provide locker facilities to its customers where customers their gold and silver ornaments and other important papers safely. The annual rent foe the use of these lockers is very low. (ii) Traveller's Cheques and Letter of Credit: Banks provide the facility of traveller, cheque to their customers who are travelling, With this facility, the customer need ng, carry with him the cash and he can travel freely, Further, the banks issue Letter of Cred: to their customers who are importing goods and help them a lot. (iii) Business Information and Statistics: As the banks are aware of the economic condition they can advise their customers on financial matters by collecting business information, and statistics. @ (3) Elgetfonic Banking Services/E-Banking ith the introduction of computer and Internet, a novelty has crept into the working of the banks. Using computer and Internet in the functioning of the banks is called electronic Electronic Fund Transfer? itrefersto the computerised system fr performing financial transactions. banking. Because of these services the customers do not need to go to the bank every time asi has made transactions with the bank possible at any time and from any place. The chief electroni y services are the following: v 4ccount to another account. The following are the chief examples of the direct crediting an Types D wigited Paryrsn 0 Bone Fund Transfer (EFT): Under th system, money can be transferred from ony biting: Aiy Direct Credits: Direct credits include dividend on shares, interest on debentures commission, salary and pension, ete. (i) Direct Debits: This includes telephone and electricity bills, loan installment, insurance installment, club membership fee, credit card dues, et ‘The following are the advantages of the Electronic Fund Transfer: (i) Payment on due date (ii) No loss in transit (iii) No mishandling of cash (iv) Effortless transactions ‘No expenses on correspondence, \utomated Teller Machine (ATM): ATM is an automatic machine with the help of which Machine—ATM? {refers to an electronic terminal that allows pedple with plastic card to perform simple banking transactio tour da whut the blp ofa human tell : Scanned with CamScannerBUSINESS SEIS money can be withdrawn or deposited by inserting the card and entering your Personal Identification Number (PIN). This machines operates forall the 24 hours) This has reduced the work of an employee (teller) by more ffan half. The ATM is getting Ps everyday. (3¥ Debit Card: (oa Card is issued to a customer in lieu of his money deposited in the bank. The customer can make immediate payment of goods purchased or services obtained on the basis of his debit card provided the terminal facility is available with the seller Yhrough this medium the money is transferred from the accetint of the purchaser to the account of the seller. With the help of the debit card money can also be withdrawn from the ATM ATM. (4) Cyedtf Card: A bank issues a credit card to © § jose of its customers who enjoy good | Debit card? reputation. It is not necessary that a customer. shouldbave money in the bankcin ode o get! | fm be aan’ mn ene ae a credit card, This is a sort of overdraft facility, | accaunt. With the help of this card the holder can buy goods or obtain services, The name of the issuing bank, the name of the holder and his/ Credit Card? her identity alongwith the date of validity are | It refers to aplastic card that allows the customer to buy inscribed on the credit card. The credit card _| fo" am MY fake lard aout oan at fie holder keeps on depositing the money used according to the agreement with the bank. i Pehanking Under this facility, a customer can get information about the balance in his ~~ account or information about the latest transactions on the telephone. This facility is available round the clock. (6) Core Banking: The complete name of this banking system is ‘Core Banking Solution’ or ‘Centralised Banking Solution’ popularly known as CBS. CBS is that banking system which makes banking convenient by changing the status of a customer from ‘Customer ofa Branch to ‘Customer of the Bank facilitating speedy and effective banking anywhere and atall times. In this system, a customer by opening a bank account in one branch (which has CBS facility) can operate the same account in all CBS branches of the same bank anywhere across the country. It is immaterial with which branch of the bank the customer: deals with when he/she isa CBS branch customer, A CBS customer is given a unique ID, Itwil identify the customer asa privileged CBS customer which gives the customer the ease of opening any account witle any of the CBS branches without necessitating fresh photographs, introduction, etc. Facilities Available to CBS Customer: (i) Cash withdrawal facility from any of the CBS branches. (ii) Instant transfer of funds between the accounts across the country under CBS branches. (ii) Pass Book can be updated across the branches under CBS. 1a Scanned with CamScanner— 4.4 Post Business. Telecom ‘i! reaches the ervices col 5 ‘oteed mai & whol 8 33 ywith 3 Ce Bie e i z #828 Indian post and telegraph department provides variou a 2 aed description is given below: @ S228 ; | a = | @ Modes of Postal and Telecom Services 7 = ‘The modes of communication have been indicated in the fol A. Traditional Modes 2 Telegrams: 7. Speed Post Postal Services: 1.Corespondence 1. Cellular Mobile Service - 2. Radio Paging Services) Electronic Services 3. Fixed Line Services 3. Telephone 7 1 Fax 4, Cable Services ‘A.UPC 2 Internet 5. Registered Post 1a 6 Parcel 5. Very Small Aperture 3. E-mai Terminal (VSAT) Services 6.Direct to Home (OTH) Services Some modes of communication have been in vogue since long, These mediums are I postal services, The history of the postal services in India is as follows: Beginning of the Postal Services 1837 Setting up of the Postal Department 1854 Beginning of the Railway Post Service ite 1907 Beginning of the Airmail Service oF ptt I Beginr- 7 6s Scanned with CamScanner(iii) Legality of Ver in the message. Therefore, care should be taken to send the message in compensatiamber of words. evaded,¢in India, telephone service was started by the post and telegraph department in conyking to a person in the same city is called a local call whereas talking to a person in «other city is known as trunk call. Presently, STD (Subscriber Trunk Dialling) and ISD premon! Subscriber Dialling) facilities are also available. Now, through the medium of STD we can talk to a person in some other city and through the medium of ISD we can talk toa person in some other country. Telephone is the best medium for quick communication both in and outside the country. These days the telephone service is being provided by the Videsh Sanchar Nigam Ltd. (VSNL), Bharat Sanchar Nigam Ltd. (BSNL) etc. Telephone is used to communicate business as well as personal messages. (4) UPC: UPC stands for ‘Under Postal Certificate’ It refers to that postal certificate which is issued by the post office as an evidence of posting the letter. ‘When ordinary letters are posted, the post office does not issue any receipt. However, if a sender wants to have a proof that he/she has actually posted the letter, then a certificate can be obtained from the post office on payment of prescribed fee. In order to have sucha certificate you just need to write the complete address of the receiver and sender on plain Paper and affix the required postage on it. This paper along with the letter is handed over to the postmaster. The post- master will put its seal on that paper and return it to you. This paper now serves as an evidence of posting the letter in case of any dispute about communication, (5) AGgistered Post: It refers to that type of post facility under which it is ensured that the mail is definitely delivered to the addressee otherwise it should be returned to the sender. ‘These mails are handed over to the post office after affixing additional postage as registration charges upon receiving the mail the post office immediately issues a receipt to the sender, which also serves as a proof that the mail has been posted. To distinguish them from the ordinary mail, all registered mails are superscribed as ‘Registered Post. Ifsender wantsto confirm that his/her mail has been delivered to the addressee, the post office ) provides another facility. Generally, registered posts are handed over to the addressee after getting their signature on some postal document. But it is not intimated to the sender unless he specifically asks for it. If the sender wants to have intimation, then an ‘Acknowledgment Due’ card can be sent along with the registered mail. This card is sighted by the-receivery (addressee) on delivery of the mail and returned to the sender by post. The Acknowledgment Due cards are available at all the post offices, The sender of the registered post is required to write his complete postal address on it and tag it to the envelope. The envelope must be spperscribed as ‘Registered Post with AD’ (ofr Post: It refers to that type of post facility under which articles can be sent across the country as well as outside the country. Suppose we lvant to send a mobile phone to our friend who is staying in the nearby city. Fo this purpose we can avail the parcel post service of the post office. Under this service, parcty of specified size and weight can be sent to other places. Postal charges vary according t weight of the parcel. Separate postage is to be paid for inland and foreign parcel post. ou Scanned with CamScannerBusiness Services q (Y Speed Post: It refers to that type of post facility under which mail reaches the addressee at the earliest. In this case, post office provides time-bound and guaranteed mail delivery- Under this service, letters, documents and parcels are delivered faster, ie., within a fixed timeframe. This facility is available at specific post offices. The post office charges relatively more postage for speed post than that of ordinary mail and it varies according to distance. B. Modern Mode/Recent Trends During the last few years many modes of communication have been developed. With the help of these mediums, messages can be communicated to other places quickly, safely and confidentially. ‘These mediums are of two types: © (|) Semier Services Courier service is provided by individual post offices. These individual post offices have come up as a good alternative to the government-run post offices. Letters, documents, parcels, etc. can be sent through the courier service. This service is expensive than the services provided by the post offices. It being a private service, the employees work with more responsibility. @ (Il) Electronic Services ‘Technological development has made it possible to exchange message with the help of many electronic services, The sending of a message has never been so easy as is the case with the electronic services, The popular electronic services are as follows: (1) Fax: It refers to that electronic machine through which a written message can be sent to any part of the world at the utmost speed. This service is available for all the 24 hours. The written. message reaches its destination the moment it is inserted in the fax machine. Process: (i) Writing or printing the message (ii) Inserting the message in the fax machine (iii) Locating the fax of the receiver by the fax machine (iv) Printing the message by the fax machine on the fax machine of the receiver (v) ‘The receiver receives the message, Advantages: (i) Speedy communication Fax Machine (ii) 24-hours service (iii) Secrecy in communication (iv) Easy to operate the machine 4 Avmilability of the service in every corner of the world edeccnivatiat tac Scanned with CamScannerBusiness Services q Telephone Line =) final: E-mail is that system of electronic letter exchanging in which through the medium of internet the messages are exchanged on the computer. The message can be long as well as short. With regard to e-mail messages, the immediate presence of the receiver isnot necessary. ‘The messages keep on gathering on the computer of the receiver. We can look at them, read them and get them printed whenever we desire, We may keep them stored in his computer or erase them. Process: (i) In order to get the facility of the Internet, we have to open an e-mail account with some Internet service provider company. In our country there are many Internet service provider companies which are giving this facility free of cost. The e-mail account is identified through e-mail address, (ii) Now, we can send an e-mail message to anybody, but we must have his e-mail address. (iii) Whenever an e-mail is received, it is transferred to the In Box by an automatic system. A special indication is received when the computer gets linked with the Internet. With its help the user comes to know that there is some e-mail for him. Now, if he wants, he can read it at that time and delete it or he can preserve it to read it at a later stage. (iv) In order to keep the e-mail message confidential, we can lay down a password. ‘This is a, sort of code number and we can open our e-mail account only with its help. We cannot i= + tthe naseword E-mail Scanned with CamScanner