BIM –Unit-III

Unit-3 Management of Deposit and Advances. Opening of a

Account, Types of Deposit Account, Importance of CRM, Types
of Advances.
Role of Development Officer: Meaning - Importance of
Development officer, Duties of Development officer. Principles
of General Insurance’ Function Personal General Insurance
Products, Commercial General Insurance Products.
 Opening of an account in Bank
• India has the world’s second largest unbanked
population, and women make up nearly 60%
of unbanked adults in India, despite the
government’s national mission for financial
inclusion—the Pradhan Mantri Jan-Dhan
Yojana scheme—that took the percentage of
people who have a bank account in India to
80%.
 Requirements to Open a Bank
Account
• In India, where the government is working toward
digitizing the whole banking infrastructure with the
help of IndiaStack, the largest open API-based
technology in the world, having a bank account has
become a necessity to access any financial service or
buy a financial product.
• To open a bank account in India, an applicant needs to
own a list of documents that are outlined by all state-
owned and private banks in India as must-haves to
meet the Know Your Customer (KYC) requirements.
 List of Documents
• PAN card
• Passport
• Driving License
• Voter's ID
• Employee ID
• Bank passbook
• Ration card
 Steps to take to open a savings
account
1. Choose how to apply
Depending on the institution, you could apply online, by phone, in
person or even by mailing an application. If you apply online, the
process can take 10 to 20 minutes.
2. Gather your identification
For the application, you will likely need to provide your Social
Security number (or tax ID number) and information from a
government-issued ID, such as a driver’s license or passport
number.
3. Provide contact details
Along with your ID number, expect to enter your contact
information, including your first and last name, phone number and
address — typically, you must be based in the United States. You
may also be asked for information including your email address and
date of birth.
 Steps to take to open a savings account
4. Select a single or joint account
Let the institution know if you will be opening the account by yourself or
with someone else. You’ll need the information from the previous steps
for anyone else whose name will be on the account.
5. Accept the terms and conditions
This is where the bank asks you to confirm that you read disclosure
documentation describing fees, liabilities and how account interest is
calculated. Ideally, you have selected an account that earns high rates and
has no or low monthly service charges. This is your chance to double
check.
» Need to compare accounts? Read NerdWallet’s list of best savings rates.
6. Submit your application
You may get an acknowledgement within minutes when you apply online,
but it can take between two and five business days for the bank to verify
your information, open the account and give you access.
7. Fund your new account
Many banks require a minimum initial deposit, often from $25 to $100,
but others have no minimum deposit requirement. Even if you don’t have
to fund your account when you first open it, you’re better off depositing
money sooner rather than later. That way, you’ll be able to start earning
interest sooner.
 Types of Bank Accounts
• One major aspect of the banking industry is the
provision of bank accounts. There are various
types of bank accounts which can be opened in
any Public or Private sector banks.
• Savings Account
• Current Account
• Recurring Deposit Account
• Fixed Deposit Account
• DEMAT Account
• NRI Account
 Savings Account
As the name suggests, the savings accounts can be opened by an
individual or jointly by two people with an aim to save money.
The main benefit of opening a savings bank account is that the bank pays
you interest for opening this type of account with them.
Given below are a few features of the Savings account:
• There is no limit to the number of times the account holder can deposit
money in this account but there is a restriction on the number of times
money can be withdrawn from this account.
• The rate of interest that an account holder get varies from 4% to 6% per
annum.
• There is no minimum balance that needs to be maintained for this type of
an account.
• The savings account holders can get an ATM/Debit/Rupay Card if they
want to
• Savings bank account is further divided into two types: Basic Savings Bank
Deposit Account (BSBDA) and the other one is Basic Saving Bank Deposit
Accounts Small Scheme(BSBDS)
• The savings bank account is mostly eligible for students, pensioners and
working professionals
 Types of Saving Accounts

• Regular Savings Account

• Family Savings Scheme
• Flexi Account
• Flexi Plus Savings Deposit
• Capital Gain Deposit Scheme
• Super Salary Account
• Super Salary Account For Defense/Paramilitary
Personnels
• Special Salary Package for government employees
• Basic Savings Bank Account
 Current Account
• The second type of bank account is the current bank account. These
accounts are not used for the purpose of savings.
• Some important pointers related to the current bank account have
been discussed below:

1. This type of bank account is mostly opened by businessmen.

Associations, Institutions, Companies, Religious Institutions and
other business-related works, the current account can be opened
2. There is no fixed number of times that money can either be
deposited or withdrawn from such accounts
3. Internet banking is available
4. This type of bank account does not have any fixed maturity
5. Overdraft facility is available for current bank accounts
6. There is no interest that is paid on such accounts
 Types of Current Accounts
• 1. Standard Current Accounts – This type of account requires the
customer to maintain a minimum monthly average balance. The
account does not provide any interest on the deposited amount.
However, it provides cheque book facility, debit card, overdraft
facility etc. to its customers.
• 2. Basic Current Accounts – It is ideal for customers with low wage
income like pensioners, young people etc. It helps the customers to
manage their finances rather easily. However, there are some
restrictions on the daily cash withdrawal limit.
• 3. Premium Current Accounts – This is a kind of account that comes
with exclusive offers and benefits to the customers. This account is
best suited for carrying out large value transactions.
• 4. Packaged Current Accounts – This current account type provides
the account holders with lots of perks and benefits. It comes with
exclusive features like medical support, travel insurance and more.
• 5. Foreign Currency Accounts – Foreign Currency Accounts are
offered to NRIs or individuals who want to carry out frequent
transactions in foreign currencies.
 Recurring Deposit Account
• Recurring Deposit account or RD account is a form of account wherein the
account holder needs to deposit a fixed amount every month until it
reaches the fixed maturity date.
• The features of the Recurring deposit account have been discussed below:

1. Any individual or an Institution can open a recurring deposit account

either separately or jointly
2. Periodic or monthly instalments that need to be added can be as low as
Rs.50/- or may vary from bank to bank
3. The range of months for which an RD account can be opened varies from
6 months to 120 months
4. The interest rate varies depending upon the bank you choose to open an
account with
5. Nomination facility is also available for RC accounts
6. Passbook is issued for this type of bank account
7. Premature withdrawal of the amount is permitted, provided a sum of
amount is deducted as penalty
 Fixed Deposit Account
• FD or a fixed deposit account is another type of bank account that
can be opened in any Public or Private sector bank.
• The list of important things that need to be known with respect to
the fixed deposit account has been mentioned below:

1. It is a one time deposit and one time take away account. Under
this type of account, the account holder needs to deposit a fixed
amount of sum (as per their wish) for a fixed time period
2. The amount deposited in FD account can only be withdrawn all at
once and not in instalments
3. Banks pay interest on the fixed deposit account
4. The rate of interest depends upon the amount you deposit and for
the time duration of the FD
5. Full repayment of the amount is available before the maturity
date of FD
 DEMAT Account
• Shares and securities which can be held in electronic format
constitute the DEMAT account. The DEMAT account also stands for
Dematerialized Account.
• Given below the points that need to be known by a candidate
regarding the DEMAT Account:

1. There are only two depository organisations which manage this

type of bank account in India. This includes: National Securities
Depository Limited and Central Depository Services Limited
2. This helps facilitate easy trade of bonds and shares
3. Helps in conducting stress-free transaction of shares
4. KYC is required for opening the DEMAT Account
5. Transaction cost is reduced
6. Traders can work from anywhere
7. The transfer of securities can be done with reduced paperwork
 NRI Account
• To fulfil the bank requirements of a Non-Residential Indian or a
Person of India Origin, the option of NRI account is available.
• The NRI Accounts are further divided into three types:
1. NRO ( Non-Resident Ordinary Rupees) Account – This shall allow
you to transfer your foreign earnings easily to India. It can be
opened in the form of an FD/RD/Current/Savings account. These
accounts can be opened by an individual or jointly opened
2. NRE ( Non-Resident External Rupees) Account – When an Indian
citizen moves abroad to work there, his/her account needs to be
converted into an NRE account. This account can be jointly
opened with an Indian resident
3. FCNR ( Foreign Currency Non-Resident ) Account – This type of
account can be opened to manage an international currency. It
can only be in the form of Term deposit and can be withdrawn
after the maturity period only.
 CRM- Customer Relationship Management.

• CRM is a strategy to sustain and preserve the relationship

with the current customers as well as future customers to
support the Bank’s growth. It is applied widely in all
growing industries.
• CRMs was configured to compile the company’s customer
contact information that includes company email, website,
products, phone number, services, live chat, and so on. It
also offers comprehensive customer data such as staff
names, phone number, history of sales, feedback,
suggestions and so on.
• CRM software gathers all the customer-specific information
and records into a single CRM folder. It is an easy and
effortless way of running an organisation and offers a
structured view of the bond between customer and
employee.
 Characteristics of CRM

• The response of the customers

• Needs of the customers
• The loyalty of the customers
• Retention of the customers
• Service of the customers
• Complaints of the customers
 Advantages of the CRM
• It helps you to automate your processes from start to finish according to
customers interests and needs.
• It gives you data about your distribution pipelines and current customers.
And you can concentrate your marketing efforts on specific consumer
segments rather than mass marketing.
• It helps you to check and evaluate your customers ‘ buying patterns. You
will provide direct access to all notifications related to sold-out items or
products and the buyers who purchased them.
• It facilitates collaboration between departments of sales, marketing and
customer care since they share a similar CRM platform and can function
more cooperatively or as a single unit.
• There are a variety of small sections associated with a procedure that
needs to be done to complete a job, e.g. filling out the form, obtaining a
receipt, submitting reports to seniors when selling a product. The CRM can
achieve most of these tasks, which helps sales representatives to
concentrate their energies more quickly on satisfying customers and
closing the deal.
Development officer in Insurance
Responsibilities includes
Importance
Duties