Definition of Bank and its types

A bank is a financial institution that plays a crucial role in managing money and providing financial
services. Its primary functions include accepting deposits from individuals and businesses,
offering loans to help with personal and commercial needs, and facilitating payment transactions
through various methods like checks, wire transfers, and electronic banking. In addition to these
services, banks provide opportunities for investment, allowing customers to grow their wealth by
offering access to stocks, bonds, and mutual funds. They also engage in currency exchange,
making it easier for people to conduct international transactions. Furthermore, many banks offer
wealth management services, providing advice on retirement planning, estate management, and
more. Central banks, a specific type of bank, oversee the overall banking system, regulate
monetary policy, and ensure financial stability.

In India, There are two important types of banks:

1.Commercial Banks: In India, commercial banks provide essential banking services

to individuals, businesses, and institutions. They accept deposits, offer loans (such as
personal loans, home loans, and business loans), and facilitate payment transactions
through checks, debit/credit cards, and online banking. Some prominent examples of
commercial banks in India include State Bank of India (SBI), HDFC Bank, and ICICI Bank.
Commercial banks form the backbone of the Indian banking system, supporting both retail
and corporate customers, and playing a key role in driving the country's economic
activities.

2. Central Bank (Reserve Bank of India - RBI): The Reserve Bank of India (RBI)
is India's central bank and regulatory authority. It manages the country's monetary policy,
controls the money supply, and oversees inflation and interest rates. The RBI ensures
financial stability by regulating and supervising the banking sector. It also acts as the
government’s banker, manages foreign exchange reserves, and serves as a lender of
last resort to commercial banks in times of financial distress. The RBI’s policies have a
significant impact on India's economy, influencing growth, inflation, and currency stability.
Functions of Commercial Bank
Primary Functions

For primary function refer frank isc eco book , ch 14 pg no 264-267.

*Note – Write any point except no. 5 and no. 6

Agency and General Utility Function

For agency and general utility function,from frank isc eco book pg 267
write point no. 5 and 6.

*Note- Write the portion marked by SNG

Types of Deposits offered by commercial bamk
Refer pg 264 of frank isc eco book. Write the portion marked by SNG.
Types of Loans
Refer pg 265 point 2
Select any nationalized bank an write its brief history
Bank of Baroda :
Bank of Baroda (BOB or BoB) is an Indian government Public sector bank headquartered
in Vadodara, Gujarat. It is the third largest public sector bank in India after State Bank of
India. Based on 2023 data, it is ranked 586 on the Forbes Global 2000 list.The Maharaja
of Baroda, Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the princely state
of Baroda, in Gujarat.The Government of India nationalized the Bank of Baroda, along
with 13 other major commercial banks of India, on 19 July 1969 and the bank was
designated as a profit-making public sector undertaking (PSU).

Bank of Baroda (BoB) was established on July 20, 1908, by Maharaja Sayajirao
Gaekwad III of Baroda with the aim of providing financial services to the local community
and fostering economic growth. Starting with its first branch in Baroda (now Vadodara,
Gujarat), the bank expanded rapidly across India and abroad. In 1953, BoB became one
of the first Indian banks to open an international branch, in Mombasa, Kenya, marking the
beginning of its global presence. Over the years, it grew into one of India’s largest public
sector banks, known for its wide range of banking services and strong international
footprint, serving customers in over 20 countries. Today, BoB remains a key player in
India's financial landscape, continuing its legacy of innovation and growth.
Write a procedure opening savings bank account online
in a flowchart form

Download the Bank of

Baroda app

Click on the three horizontal

lines, select 'Accounts'

Select 'Open a Savings

Account Digitally'

If you agree to the terms

and conditions, click 'Yes'

Provide your contact details

including product type,
bank sub-product

Press 'Generate OTP' and

receive code

Provide PAN and Aadhaar

details for verification

Complete your video KYC

for verification
 Bank of Baroda Savings Account Offline
To perform the Bank of Baroda savings account opening process offline, follow these
steps:

1. Go to the nearest Bank of Baroda branch.

2. Ask the bank officials for the Bank of Baroda account opening form and fill out the
details.

3. Choose the type of savings account you prefer to open.

4. Provide the required details following the 'Know Your Customer' (KYC) format, such
as address proof, identity proof, and passport-size photographs.

5. Attach the necessary documents with the application form and a cash deposit slip
or demand draft.

After the bank officials verify your details, your savings account will be opened.
Define FD
A Fixed Deposit (FD) is a secure investment option provided by banks and financial
institutions where individuals deposit a lump sum amount for a specific tenure at a fixed
interest rate. This interest rate is generally higher than what is offered in savings accounts,
making FDs an attractive option for those seeking stable and predictable returns. The
tenure can vary, ranging from a few months to several years, and during this period, the
deposited money is locked in. While premature withdrawal is possible, it usually involves
a penalty and lower interest rates. FDs are considered a low-risk investment, providing
guaranteed returns unaffected by market fluctuations. Investors can opt to receive the
interest periodically or let it accumulate until the end of the term, making FDs a popular
choice for conservative investors.

Differentiate between FD and Savings Deposit

 How to Open an FD Account by Visiting a Bank?

If one already has a savings bank account with the bank they want to open their FD
with, then one has to download the FD application form from the bank's website. One
can also fill out the application form by physically visiting the bank branch.

After procuring the application form, one must follow these steps:

• Fill in the application for a fixed deposit with relevant and correct details. Write down
the amount one wants to invest in and mention the tenure.
• Submit the duly filled-in application form at the bank, along with the required
documents.
• Provide cash/cheque for the amount one would like to invest in FD.
• The application will then be processed, and the FD account will be opened by the
concerned bank/financial institution.
Closing Bank of Baroda FD
➢ On Maturity
You can close your Bank of Baroda (BoB) FD account when it matures by visiting
your local branch office. You will have to submit the fixed deposit certificate. For
deposits that are jointly held, make sure that the signatures of all the joint
depositors are on it. You will also have to submit an FD account closure form. If
there are joint depositors, their signatures will be required on the form. Submit
your Know Your Customer (KYC) documents along with this, which may need to
be self-attested. This should include an address proof and your PAN as well. The
total amount on maturity will be transferred to your linked savings account.
If the auto-liquidation feature is available, the proceeds from your FD account will
be credited to your linked bank account automatically on the date of maturity.

➢ Before Maturity (Premature Closure)

Here is what you need to do to close your Bank of Baroda FD prematurely:

• Step 1: Visit the Bank of Baroda (BoB) branch where the account was opened
• Step 2: Obtain a premature withdrawal application form
• Step 3: Fill up the form with the required details such as your FD account
number, bank account details, name, etc.
• Step 4: Submit the form
The funds will be credited into your savings account once the request is processed.
Punjab National Bank(PNB)
Punjab National Bank (PNB) was founded onMay 19, 1894, by Lala Lajpat Rai and other
Indian leaders with the vision of establishing a bank owned and managed by Indians to
serve the country's financial needs. The bank opened its first branch in Lahore, in
undivided India (now in Pakistan), making it the first Indian bank to be created entirely
with Indian capital. Over the years, PNB grew rapidly, reflecting the spirit of nationalism
and independence during British rule. After India’s partition in 1947, the bank shifted its
operations to New Delhi, where it continued its expansion, becoming one of India’s
leading public sector banks. Today, PNB operates across India and internationally,
offering a wide range of banking and financial services, with a strong legacy of trust and
service excellence.

Bank of Baroda(BOB)
Bank of Baroda (BoB) was established on July 20, 1908, by Maharaja Sayajirao Gaekwad
III of Baroda with the aim of providing financial services to the local community and
fostering economic growth. Starting with its first branch in Baroda (now Vadodara,
Gujarat), the bank expanded rapidly across India and abroad. In 1953, BoB became one
of the first Indian banks to open an international branch, in Mombasa, Kenya, marking the
beginning of its global presence. Over the years, it grew into one of India’s largest public
sector banks, known for its wide range of banking services and strong international
footprint, serving customers in over 20 countries. Today, BoB remains a key player in
India's financial landscape, continuing its legacy of innovation and growth.

State Bank of India

The State Bank of India (SBI), India’s largest public sector bank, traces its origins back to
the Bank of Calcutta, established in 1806. Later renamed the Bank of Bengal, it was one
of the three Presidency Banks along with the Bank of Bombay (1840) and the Bank of
Madras (1843). In 1921, these banks were merged to form the Imperial Bank of India,
which became the largest banking entity in the country. After India gained independence,
the Imperial Bank of India was nationalized and renamed the State Bank of India (SBI)
on July 1, 1955, to serve the nation's growing financial needs. Since then, SBI has played
a crucial role in India’s economic development, expanding its network both nationally and
internationally, and offering a comprehensive range of banking services. Today, it is a
cornerstone of India’s banking system, known for its wide reach and trust.
Union Bank of India
Union Bank of India was established on November 11, 1919, and its first office was
inaugurated by Mahatma Gandhi in Mumbai. The bank started its operations during the
colonial period, primarily serving the business community. After India's independence,
Union Bank played a significant role in the country’s economic development by providing
financial services across various sectors. In 1969, it was nationalized along with 13 other
major banks, which helped it expand its reach and services across rural and urban areas.
Over the decades, Union Bank grew steadily, merging with other banks to increase its
presence. In 2020, it merged with Andhra Bank and Corporation Bank, further
strengthening its position in the Indian banking industry. Today, Union Bank of India is
one of the largest public sector banks in the country, offering a wide range of financial
products and services.

Canara Bank
Canara Bank was founded in 1906 by Ammembal Subba Rao Pai in Mangalore,
Karnataka, with the aim of providing financial support to the underprivileged and
promoting the principles of fair banking. Initially called Canara Hindu Permanent Fund,
the institution grew steadily and was renamed Canara Bank in 1910. Over the years,
Canara Bank expanded its services across India, playing a vital role in supporting small
businesses, industries, and rural development. In 1969, it was nationalized by the
Government of India, along with 13 other major banks, which accelerated its growth and
reach. Canara Bank became known for its customer-centric approach and wide array of
financial services. In 2020, it further strengthened its presence by merging with Syndicate
Bank, making it one of the largest public sector banks in India. Today, Canara Bank
operates globally, continuing its legacy of innovation and financial inclusion.
For Regular Citizens
Punjab National Bank(PNB)

Interest Rates (% p.a.)

Tenure
Regular Citizens
7 to 14 days 3.50

15 to 29 days 3.50

30 to 45 days 3.50

46 to 90 days 4.50

91 to 179 days 4.50

180 to 270 days 6.25

271 days to 299 days 6.50

300 days 7.05

301 days to less than 1 year 6.50

1 year 6.80

Above 1 year to 399 days 6.80

400 days 7.25

401 days to 2 years 6.80

Above 2 years to 3 years 7.00

Above 3 years to 1203 days 6.50

1204 days 6.40

1205 days to 5 years 6.50

Above 5 years to 1894 days 6.50

1895 days 6.35

1896 days to 10 years 6.50

Bank of Baroda(BOB)

Interest Rates (%) p.a.

Tenure Regular Citizens
7 days to 14 days 4.25
15 days to 45 days 4.5

46 days to 90 days 5.5

91 days to 180
days 5.6
181 days to 210
days 5.75
211 days to 270
days 6.25
271 days & above
and less than 1
year 6.5

360 days (bob360) 7.1

1 year 6.85
Above 1 year to
400 days 7
Above 400 days to
2 Years 7
Above 2 Years to 3
Years 7.15
Above 3 Years to 5
Years 6.5
Above 5 Years to
10 Years 6.5

Above 10 years
(MACT/MACAD 6.25
 Court Order
schemes only)

State Bank of India(SBI)

Interes Rates
(%p.a.)
Tenure Regular Citizen
7 days to 45
days 3.50%
46 days to
179 days 5.50%
180 days to
210 days 6.25%
211 days to
less than 1
year 6.50%
1 Year to
less than 2
years 6.80%
2 years to
less than 3
years 7.00%
3 years to
less than 5
years 6.75%
5 years
and up to 10
years 6.50%
400 Days
(Amrit
Kalash) 7.10%
Union Bank of India
Interest Rates (%
p.a.)
Tenure Regular Citizens
7 days to 14 days 3.5

15 days to 30 days 3.5

31 days to 45 days 3.5

46 days to 90 days 4.5

91 days to 120 days 4.8

121 days to 180
days 5

181 days to less

than 332 days 6.35

333 days 7.4

334 days to less
than 1 year 6.35

1 year 6.8
Above 1 year to 398
days 6.8

399 days 7.25

400 days to 2 years 6.6

Above 2 years to
996 days 6.6
997 days 6.4
Above 998 days to
less than 3 years
(execpt for 999 days
@ 6.40% p.a.) 6.6
3 years 6.7
Above 3 years to 5
years 6.5
Above 5 years to 10
years 6.5

Canara Bank
Interest Rates (%
p.a.)
Regular
Tenure Citizens
7 days to 45
days* 4
46 days to 90
days 5.25
91 days to
179 days 5.5
180 days to
269 days 6.15
270 days to
less than 1
year 6.25

1 year 6.85

444 days 7.25

Above 1 year
to les than 2
years 6.85
2 years to
less than 3
years 6.85
3 years to
less than 5
years 6.8
5 years to 10
years 6.7
For Senior Citizen
Punjab National Bank (PNB)

Interest Rates (% p.a.)

Senior Super Senior
Tenure Citizens Citizens
7 to 14 days 4 4.3

15 to 29 days 4 4.3

30 to 45 days 4 4.3

46 to 90 days 5 5.3

91 to 179 days 5 5.3

180 to 270 days 6.75 7.05

271 days to 299 days 7 7.3

300 days 7.55 7.85

301 days to less than 1
yr 7 7.3

1 year 7.3 7.6

Above 1 year to 399
days 7.3 7.6

400 days 7.75 8.05

401 days to 2 years 7.3 7.6

 Above 2 years to 3
years 7.5 7.8

Above 3 years to 1203

days 7 7.3

1204 days 6.9 7.2

1205 days to 5 years 7 7.3
Above 5 years to 1894
days 7.3 7.3
1895 days 7.15 7.15
1896 days to 10 years 7.3 7.3

Bank of Baroda(BOB)

Interest Rates (%)

p.a.

Tenure Senior Citizens

7 days to 14
days 4.75

15 days to 45
days 5

46 days to 90
days 6

91 days to 180
days 6.1

181 days to
210 days 6.25

211 days to
270 days 6.75

271 days &

above and less
than 1 year 7
360 days
(bob360) 7.6

1 year 7.35
Above 1 year to
400 days 7.5
Above 400
days to 2 Years 7.5
Above 2 Years
to 3 Years 7.65
Above 3 Years
to 5 Years 7.15*
Above 5 Years
to 10 Years 7.50**
Above 10 years
(MACT/MACAD
Court Order
schemes only) 6.75

State Bank of India(SBI)

Interest Rates
(% p.a.)
Senior
Tenure Citizens
7 days to 45
days
4.00%

46 days to
179 days 6.00%

180 days to
210 days 6.75%
211 days to
less than 1
year 7.00%

1 Year to
less than 2
years 7.30%

2 years to
less than 3
years 7.50%
 3 years to
less than 5
years 7.25%

5 years
and up to 10
years 7.50%
400 Days
(Amrit
Kalash) 7.60%

Union Bank of India

Interest Rates (% p.a.)

Tenure Senior Citizens
7 days to 14 days 4

15 days to 30 days 4

31 days to 45 days 4

46 days to 90 days 5

91 days to 120 days 5.3

121 days to 180 days 5.5

181 days to less than

332 days 6.85

333 days 7.9

334 days to less than 1
year 6.85
1 year 7.3

Above 1 year to 398

days 7.3

399 days 7.75

400 days to 2 years 7.1

Above 2 years to 996

days 7.1

997 days 6.9

Above 998 days to less
than 3 years (execpt for
999 days @ 6.40% p.a.) 7.1
3 years 7.2
Above 3 years to 5
years 7
Above 5 years to 10
years 7

Canara Bank

Interest Rates (% p.a.)

Tenure Senior Citizens
7 days to 45 days* 4

46 days to 90 days 5.25

91 days to 179
days 5.5

180 days to 269

days 6.65

270 days to less

than 1 year 6.75

1 year 7.35

444 days 7.75

 Above 1 year to
less than 2 years 7.35
2 years to less
than 3 years 7.35
3 years to less
than 5 years 7.3

5 years to 10 years 7.2

Different services provided by any of above bank.(Debit

card,credit card,ECS,etc)and changes made by them.

Banks like Punjab National Bank (PNB), State Bank of India (SBI), Canara Bank,
and Union Bank of India offer a variety of services to cater to different financial needs.
Below are some of the common services provided by these banks, along with recent
changes or updates made by them:

1. Debit Card Services:

• Services: Banks offer debit cards linked to savings or current accounts, enabling
ATM withdrawals, online transactions, and in-store payments.
• Recent Changes:
o Enhanced security with EMV chip cards replacing magnetic stripe cards.
o Contactless debit cards using NFC technology are now widely available.
o Banks have also introduced limits on international transactions for
security, with users needing to opt-in for overseas usage.
2. Credit Card Services:

• Services: Credit cards are offered with varying limits based on credit scores,
featuring rewards, cashback, and installment plans.
• Recent Changes:
o Introduction of zero-liability protection for unauthorized transactions.
o Increased interest rates and late payment fees as part of stricter credit
policies.
o Expansion of co-branded credit cards with retail and e-commerce giants
like Amazon and Flipkart.
o Enhanced credit card reward programs and integration with Unified
Payments Interface (UPI) for seamless payments.

3. Electronic Clearing System (ECS):

• Services: ECS is used for bulk payments like salaries, pension, dividends, and
automated bill payments (utility bills, loan EMIs).
• Recent Changes:
o ECS has been largely replaced by NACH (National Automated Clearing
House), which offers better speed, coverage, and efficiency for bulk
payments and direct debits.
o Enhanced control for customers to pause or modify recurring payments.

4. Mobile Banking and Internet Banking :

• Services: Customers can manage their accounts, transfer funds, pay bills, and
invest using mobile and internet banking platforms.
• Recent Changes:
o Many banks have revamped their mobile apps, adding features like voice-
assisted banking, biometric logins, and personalized insights into
spending patterns.
o UPI integration has made real-time payments easier.
o Multi-factor authentication (MFA) and tokenization to enhance security.

5. Automated Teller Machines (ATMs):

• Services: ATMs allow withdrawals, balance inquiries, fund transfers, and more.
• Recent Changes:
o Cardless cash withdrawal using mobile banking apps and UPI QR codes
has been introduced.
o ATM fees have been revised, with most banks limiting the number of free
transactions for customers before charges apply.
6. NEFT/RTGS/IMPS (Electronic Fund Transfer):

• Services: These are digital services for real-time fund transfers.

• Recent Changes:
o NEFT and RTGS services are now available 24/7 (previously only during
banking hours).
o IMPS limits have been increased, allowing for higher-value transactions.

7. Loans (Personal, Home, Education):

• Services: Banks provide loans for personal needs, housing, education, and
business.
• Recent Changes:
o Interest rate revisions due to changes in RBI policies, linking many loans
to external benchmarks like repo rate.
o Introduction of digital lending platforms, reducing paperwork and
speeding up the approval process.
o Enhanced flexibility in repayment options, such as step-up and
balloon repayments for home loans. Examples of Specific Changes:

• SBI recently introduced the YONO app for a range of services, including
cardless withdrawals, UPI payments, and personal loans.
• PNB introduced the PNB One app, which consolidates multiple services,
including mobile banking, investment, and credit card management.
• Union Bank of India offers a Platinum Debit Card with higher withdrawal and
transaction limits.
• Canara Bank launched a video KYC facility for opening accounts during the
pandemic, making the process more convenient for users.
• Bank of Baroda introduced digital services like the BoB World app, video KYC,
contactless cards, repo rate-linked loans, and enhanced cybersecurity to
improve customer experience and security.

Conclusion
In conclusion, the banking sector plays a pivotal role in the economic growth and
development of a country by providing essential financial services such as loans,
savings, and investments. Over the years, technological advancements have
revolutionized banking, making it more efficient, accessible, and secure for customers.
Digital innovations like mobile banking, online transactions, and enhanced cybersecurity
measures have not only improved convenience but also promoted financial inclusion.
As banks continue to evolve, they remain central to fostering economic stability and
ensuring the smooth functioning of global financial systems.
Bibliography