TOPIC 2

Visit a Commercial Bank. Find out the procedure to open a

Savings account. Find out the details of Various Agency and
general utility services provided by the Bank.
 Bank Of Baroda
Bank: BANK OF BARODA

Address: BEHALA BRANCH,293/2,DIAMOND HARBOUR

RD,KOLKATA,700034

State: WEST BENGAL

District:KOLKATA

Branch: BEHALA BRANCH

Contact: 033-24780945

IFSC Code: BARB0BEHALA (used for RTGS, IMPS and NEFT

transactions)

Branch Code: Last six characters of IFSC Code represent Branch code.

MICR Code: 700012041

 INTRODUCTION
Bank of Baroda (BOB) is an Indian multinational, public sector
banking and financial services company. It is owned by Government
of India. It is the second largest public sector bank in India with a
business mix of close to US$225 billion.

Based on 2019 data, it is ranked 1145 on Forbes Global 2000 list. BoB
has total assets in excess of ₹ 3.58 trillion (making it India's 2nd
biggest bank by assets), a network of 9583 branches in India and
abroad, and 10441 ATMs as of July, 2017. The government of India
announced the merger of Bank of Baroda, Vijaya Bank and Dena
Bank on September 17, 2018, to create the country's third largest
lender. The amalgamation is the first-ever three-way consolidation of
banks in the country, with a combined business of Rs 14.82 lakh
crore, making it the third largest bank after State Bank of India (SBI)
and ICICI Bank.

In 1908, Maharaja Sayajirao Gaekwad III, set up the Bank of Baroda

(BoB), with other stalwarts of industry such as Sampatrao Gaekwad,
Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM
Chokshi.
 TYPES OF ACCOUNT
1.Current account is mainly for business persons, firms,
companies, public enterprises etc and are never used for the
purpose of investment or savings.These deposits are the
most liquid deposits and there are no limits for number of
transactions or the amount of transactions in a day. While,
there is no interest paid on amount held in the account,
banks charges certain service charges, on such accounts. The
current accounts do not have any fixed maturity as these are
on continuous basis accounts.
2.Savings Account is meant for saving purposes. Any
individual either single or jointly can open a savings account.
Most of the salaried persons, pensioners and students use
Savings Account. The advantage of having Savings Account is
Banks pay interest for the savings. The saving account holder
is allowed to withdraw money from the account as and when
required.
The rate of interest ranges between 4% to 6% per annum in
India. There is no restriction on the number and amount of
deposits. But withdrawals are subjected to certain
restrictions. Some banks recommend to maintain a minimum
amount to keep it functioning.
3.Recurring deposit account or RD account is opened by
those who want to save certain amount of money regularly
for a certain period of time and earn a higher interest rate. In
RD account a fixed amount is deposited every month for a
specified period and the total amount is repaid with interest
at the end of the particular fixed period.
The period of deposit is minimum six months and maximum
ten years. The interest rates vary for different plans based on
the amount one saves and the period of time and also on
banks. No withdrawals are allowed from the RD account.
However, the bank may allow to close the account before the
maturity period.
These accounts can be opened in single or joint names. Banks
are also providing the Nomination facility to the RD account
holders.
4.Fixed Deposit Account (also known as FD Account), a
particular sum of money is deposited in a bank for specific
period of time. It’s one time deposit and one time take away
(withdraw) account. The money deposited in this account can
not be withdrawn before the expiry of period.
However, in case of need, the depositor can ask for closing
the fixed deposit prematurely by paying a penalty. The
penalty amount varies with banks.A high interest rate is paid
on fixed deposits. The rate of interest paid for fixed deposit
vary according to amount, period and also from bank to
bank.
PROCEDURE OF OPENING A BANK ACCOUNT
The procedure for opening a bank account consists of the
following steps.
1. Application in the Prescribes Form: The person or
organisation wanting to open a bank account has to apply to
the bank concerned in the prescribed form. The application
forms are printed and are available in the bank free of
charge. Banks provide different application forms for opening
different types of accounts. The application form contains
information concerning the name of the applicant, his
occupation, full address, and specimen signatures. The bank
also ask the applicant to furnish photo copy of his/her
Permanent Account Number (PAN) card.
2.Introduction of the Applicant: Opening of an account
creates a business relationship between the applicant and
the bank. The bank undertakes to honour the cheques drawn
by the customer so long as there is a credit balance in his
account.This invoves risk and, therefore, the bank wants to
be satisfied about the identity of the applicant. A Bank Insists
that the applicant is introduced by an existing account holder
of the bank or a reputed businessman. The person
introducing the applicant signs on the application form itself
and writes his full address. The bank may also consult the
references about the financial standing and honesty of the
applicant. The purpose of introduction and references is to
reduce the scope for fraud.
3. Specimen Signatures : Once the bank is satisfied with the
introduction and references it proceeds with the opening of
the account. The applicant is asked to give his two or three
specimen signatures on a prescribed card. These signature
cards of accountholders are alphabetically filed by the bank
for ready reference. Whenever the need arises signatures of
an account holder are verified by comparing the recorded
signature and the signatures on cheques. In case the two
signatures differ, the bank can refuse to honour the cheque.
4. Photographs : A number of bank frauds took place despite
introduction and references. There were instances where
'account payee' dividend warrants and refund orders sent by
companies were encashed by opening fictitious accounts.
Therefore, bank now require that photographs of the
account holder are affixed on the signature card.
5. Initial Deposit : The applicant deposits the initial amount.
The minimum amount depends on type of account - savings
or current. After the deposit, the bank issues a cheque book
and a pass book to the applicant.
DOCUMENT REQUIRED FOR OPENING A BANK ACCOUNT
IDENTITY PROOF
 Valid Passport with photograph & signature
 Driving license
 PAN Card
 Voter ID card
 Aadhaar card
 Property Tax bill or Municipal Tax
 Post Office savings bank account statement
AGENCY FUNCTION
Bank of Baroda serves as an agent for its customers in the
following ways :
(a) Collects cheques, bills, dividends, interest, rent, etc., on
behalf of customers.
(b) Pays cheques, bills, rent, taxes, interest, insurance
premium, fees, subscriptions,etc., on behalf customers.
(c) Purchases and sells securities on behalf of customers as
per their instructions.
(d) Acts as trustee, executor, gurantor etc., in financial
matters for their customers.
(e) Carries out correspondence for and on behalf of
customers.
(f) Acts as agent or correspondent for other banks at home
and abroad.
General Utility Services
(a) Transfer of funds through RTGS, NEFT, etc.
(b) Issuing letter of credit and standing as surety for
customers.
(c) Accepting valuables, jewellery and securities for safe
custody.
(d) Underwriting capital issues.
(e) Providing foreign exchange to persons going abroad and
to importers.
(f) Issuing travellers, cheques, demand drafts, circular notes,
etc.
(g) Providing trade information to customers.
(h) Providing reports on the creditworthiness of customers.
(i) Accepting and discounting bills of exchange of exporters.
(j) Advising customers with regard to investments and other
financial matters.
 REAL TIME GROSS SETTLEMENT
Real-time gross settlement (RTGS) systems are specialist
funds transfer systems where the transfer of money or
securities takes place from one bank to any other bank on a
"real time" and on a "gross" basis. Settlement in "real time"
means a payment transaction is not subjected to any waiting
period, with transactions being settled as soon as they are
processed. "Gross settlement" means the transaction is
settled on one-to-one basis without bundling or netting with
any other transaction. "Settlement" means that once
processed, payments are final and irrevocable.
RTGS systems are typically used for high-value transactions
that require and receive immediate clearing. In some
countries the RTGS systems may be the only way to get same
day cleared funds and so may be used when payments need
to be settled urgently RTGS payments typically incur higher
transaction costs and usually operated by a country's central
bank.
Features are:
(i) RTGS transactions are processed individually and
continuously throughout banking hours rather than in
batches.
(ii) The minimum amount in a RTGS transaction is two lacs.
There is no upper ceiling for a RTGS transaction.
NATIONAL ELECTRONIC FUNDS TRANSFER
National Electronic Funds Transfer (NEFT) is an electronic
funds transfer system maintained by the Reserve Bank of
India (RBI). Started in November 2005, the setup was
established and maintained by Institute for Development and
Research in Banking Technology (IDRBT). NEFT enables bank
customers in India to transfer funds between any two NEFT-
enabled bank accounts on a one-to-one basis. It is done via
electronic messages. Unlike real-time gross settlement
(RTGS), fund transfers through the NEFT system do not occur
in real-time basis. NEFT settles fund transfers in half-hourly
batches with 23 settlements occurring between 8:00 am and
6:30 pm on week days and the first, third and fifth Saturday
of the calendar month. Transfers initiated outside this time
period are settled at the next available window. No
settlements are made on the second and fourth Saturday of
the month, or on Sundays, or on public holidays.
Features are:
1. An individual, firm or company can make use of NEFT
even without having a bank account by depositing cash
at a NEFT enabled bank branch.
2. NEFT transactions take place in batches.
3. There is no minimum or maximum amount that can be
transferred through NEFT.
CORE BANKING SOLUTION
Core Banking Solution (CBS) is networking of branches,
which enables
Customers to operate their accounts, and avail banking
services from any branch of the Bank on CBS network,
regardless of where he maintains his account. The
customer is no more the customer of a Branch. He
becomes the Bank’s Customer.
Another interesting fact regarding CBS is that all CBS
branches are inter-connected with each other.
Therefore, Customers of CBS branches can avail various
banking facilities from any other CBS branch located
anywhere in the world.
Features are:
1.Instant transfer of funds between the accounts in
CBS branches across the country.
2. Cash withrawal facility from any of the CBS branches.
3. The facility of centralised corporate limits in all the
CBS branches.
4.Transaction management.
ELECTRONIC BANKING

Electrornic banking means banking transactions carried

out with the help of computer systems having Internet
Connection. Any user having a PC and a browser can
access the bank website and avail of banking services.
Electronic banking is banking over the internet. It is a
part of virtual banking.
Features are:
1.There is no face-to-face contact in person between
the bank and the client.
2.Both the bank and the client need computer/mobile.
Advantages are:
1.Customers get 24 hours and 365 days-a-year
services.
2.Customers can make the permitted transactions from
residence or office and even while travelling. They
need not go to the bank.
Disadvantages are:
1.The bank and its clients have to invest money in e-
banking technology.
2.Training in technology is needed for both.
CONCLUSION
CERTIFICATE