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BRANCHLESS BANKING

INTRODUCTION:
Branchless banking is the delivery of financial services outside conventional bank branches
through the use of retail agents and information and communications technologies to transmit
transaction details. By relying on already existing retail infrastructure and widespread
technologies, such as mobile phones, branchless banking dramatically reduces the cost of
delivery and increase convenience for customers.
Branchless banking has great potential to extend the distribution of financial services to poor
people who are not reached by traditional bank branch networks; it lowers the cost of
delivery, including costs both to banks of building and maintaining a delivery channel and to
customers of accessing services
NEED FOR BRANCHLESS BANKING:
For achieving financial inclusion
Changing demographics of users
For better accessibility
For improving customer base
For improving the service
For 24x7 availability
For better reach
SERVICES OFFERED IN BRANCHLESS BANKING:
Internet banking
Mobile banking
Phone banking
ATM/CDM
Point of sales
Debit and credit card
CHARACTERISTICS OF BRANCHLESS BANKING:
Use of technology, such as payment cards or mobile phones, to identify customers and record
transactions electronically and, in some cases, to allow customers to initiate transactions
remotely
Use of (exclusive or nonexclusive) third-party outlets, such as post offices and small retailers,
that act as agents for financial services providers and that enable customers to perform
functions that require their physical presence, such as cash handling and customer due
diligence for account opening
Offer of at least basic cash deposit and withdrawal in addition to transactional or payment
services
Backing of a government-recognized, deposit-taking institution, such as a formally licensed
bank
Structuring of the above so that customers can use these banking services on a regular basis
(available during normal business hours) and without needing to go to bank branches at all, if
thats what they choose

FINANCIAL INCLUSION:
Financial inclusion means that households and businesses have access and can effectively use
appropriate financial services. Such services must be provided responsibly and sustainably, in
a well regulated environment.
ADVANTAGES:
Branchless banking offers a path to scalability and impact.
Benefited most customers and retailers.
Ease of accessibility
24x7 service
Time effective
Reach is more
Ease of transaction
No need of additional infrastructure
Use of technology which can reached through all levels of people
DISADVANTAGES:
Perceived risk by customers
Security issues
MODES OF BRANCHLESS BANKING:
Point of Sales
ATM/CDMs
Mobile Banking
Telephone Banking
Online Banking
Kiosks
Debit/Credit cards
Internet, ATMs, POS, EFTPOS devices and mobile phones are combined to offer banking
services through a combination of distribution channels, which make up the banks
branchless strategy of various institutions.
Five main types of services offered by branchless banking are:
Person-to-person remittances
Person-to-business such as utilities, taxes and credit card bills, and government-to-
person such as welfare payments.
E-Commerce
Banking services like savings and credit
In-store payments
According to the Business Correspondent Model by RBI in 2006, banks are permitted to
outsource transaction processing to non-profits, cooperatives, post offices, societies, trusts
and ex-service people. It is hoped that the model would allow banks to offer financial
products, especially savings accounts, to previously unreached populations.

POINT OF SALES:
Point of sale (also called POS or checkout, during computerization later becoming electronic
point of sale or EPOS) is the place where a retail transaction is completed. It is the point at
which a customer makes a payment to the merchant in exchange for goods or services. At the
point of sale the retailer would calculate the amount owed by the customer and provide
options for the customer to make payment. The merchant will also normally issue a receipt
for the transaction.
This is usually done using our debit/credit cards and where the merchant owns a device
(swiping machine).
ATM/CDMs:
An Automated Teller Machine (ATM) is a specialized computer that makes it convenient to
manage your money. A specialized computer used by bank customers to manage their
money. Almost all ATMs allow you to withdraw money, and many allow you to make
deposits.

An ATM card (also known as a bank card, client card, key card, or cash card) is
any payment card issued by a financial institution to its customers which enables a customer
to access an automated teller machine (ATM) for transactions such as deposits, cash
withdrawals, obtaining account information, and other types of banking transactions. The
payment card may be any card which has that feature enabled, and may be a debit, credit, a
limited-use ATM or other card. Interbank networks allow the use of ATM cards at ATMs of
financial institutions other than those of the issuing institution.
ATM cards can also be used on improvised ATMs, such as merchants' card terminals that
deliver ATM features without any cash drawer (commonly referred to as mini ATMs). These
terminals can also be used as Cashless scrip ATMs by cashing the fund transfer receipt at the
merchant's Cashier.
The first ATM cards were issued by Barclays in London, in 1967, and by Chemical
Bank in Long Island, New York, in 1969.
HSBC Premier Card HKD40,000
HSBC Advance Card HKD30,000
Other personal customer cards HKD20,000
Business Debit Card HKD20,000
Company ATM Card Customized limit
from HKD1,000 to HKD20,000.
MOBILE BANKING:
Services offered:
Account alerts, security alerts and remainders
Account balances, updates and history
Customer service via mobile
Branch or ATM location information
Bill payments
Funds transfers
Transaction verification
Mortgage alerts
Mobile banking uses a mobile phone to access your bank account, credit card account or
other financial accounts. This can be done either by accessing your banks web page
through the web browser on your mobile phone, via text messaging, or by using an
application downloaded to your mobile phone.
TELEPHONE BANKING:
Telephone banking is a service provided by a bank or other financial institution, that
enables customers to perform financial transactions over the telephone, without the need to
visit a bank branch or automated teller machine. Telephone banking times can be longer than
branch opening times, and some financial institutions offer the service on a 24 hour basis
(Call centres). From the bank's point of view, telephone banking reduces the cost of handling
transactions by reducing the need for customers to visit a bank branch for non-cash
withdrawal and deposit transactions.
Uses of Telephone Banking:
Check balance
Make payments including bills
Transfer money between accounts
Amend personal details
Telephone banking in HSBC offers two types of telephone banking: a voice response service
and one that puts you in touch with a friendly customer service adviser. The former is always
available can be used to make simple financial transactions like making a payment to a third
party or transferring money to another of your accounts. It can also tell you your balance over
the phone. The latter is open between 8am and 10pm except on Christmas Day, Boxing Day
and New Years Eve. This gives customers using HSBC telephone banking the option to also
pay bills, set up standing orders and update their account details. To access HSBC telephone
banking, you will need to have your account details and the digits from your security number
to hand.
ONLINE BANKING:
The performance of banking activities via Internet. Online banking is also known as "Internet
banking" or "Web banking." A good online bank will offer customers just about every service
traditionally available through a local branch, including accepting deposits (which is done
online or through the mail), paying interest on savings and providing an online bill payment
system.
General features of online banking at HSBC:

View your account balances and transactions
View checking and savings statements using e-Statements
Move money easily between your eligible HSBC and nonHSBC deposit accounts
Pay bills securely and for free, with an ontime guarantee
1

Send money from your HSBC accounts to another person, business or financial
institution with funds transfers (wires)
View Form 1099INT
2
when you sign-up for e-Statements
View copies of your posted check images with RecordCheck
3

HSBC PERSONAL INTERNET BANKING:

Personal Internet Banking is one of the fastest, most convenient ways to access your
HSBC Bank USA, N.A. accounts, view balances, transfer funds and pay your bills
online. Using your unique Username, Memorable Answer, and Password you can
perform banking transactions online, whenever and wherever you want, from a secure
PC with Internet access. It's safe, convenient, it's free, and it's also backed by our $0
Liability, Online Guarantee.

FEATURES OF PERSONAL INTERNET BANKING AT HSBC:
Personal Internet Banking allows you to make transactions online and manage your accounts,
balances, bill payments and deposits:
View balances and transactions on your deposits, loans, credit card, and mortgage
accounts
Pay bills to virtually anyone in the United States with complimentary online Bill Pay
service
Review the last 24 months of transactions for Personal Internet Banking.
View your eligible Checking, Savings, Select Credit and Credit Card account
statements for the last 12 months through eStatements
Online Check Images - Personal Internet Banking customers with a checking account
who are enrolled in the RecordCheck

service can view and print their posted checks


images right online.
Transfer funds between your HSBC accounts (this is an ideal way to pay your HSBC
accounts quickly).
With the Bank to Bank Transfers service, you can move money between your HSBC
accounts and other financial institutions, credit unions and brokerage accounts.
Initiate wire transfer requests to another person, business or financial institution in the
U.S. or internationally through Personal Internet Banking.
View information about your mortgage account including escrow and payment history
Obtain quotes for several insurance products
View your investment and brokerage balances
Request a credit card line increase
Apply for HSBC select accounts and services
Order new checks
Request copies of statements
Request a Stop Payment for an HSBC check
Access to Credit Card Rewards Program website to view and redeem Credit Card
Rewards Points
Email our Customer Relationship Center anytime for information on products and
services
Online Password Reset - Customers who forget their Internet Banking Memorable
Answer or Password can select a new Memorable Answer or Password to gain
immediate access to Personal Internet Banking. No more waiting for a confirmation in
the mail.
e-satements(part of online banking)
HSBC takes its responsibility to the customers and the environment. That's why they have
made it easy for us to receive free electronic statements for our eligible checking, savings,
Select Credit

and credit card accounts. With eStatements we can view, download or print an
electronic version of your statement that looks just like the paper version you receive by mail.
Other benefits include:
HSBC is excited to announce that since March 23, 2014, it has been offering
customers extended access to electronic deposit statements from 12 months to 7 years
12 months of electronic statements available online for credit cards and Select Credit
accounts
Email notifications when your new statement is available
View and print your eligible interest income Form 1099INT
1
conveniently, every
year
Added protection against identity theft


KIOSKS:
In information technology, a kiosk is a small physical structure (often including a computer
and a display screen) that displays information for people walking by. Kiosks are common
near the entrances of shopping malls in North America where they provide shoppers with
directions. Kiosks are also used at trade shows and professional conferences.
More sophisticated kiosks let users interact and include touch screens, sound, and motion
video. A number of companies specialize in creating multimedia kiosks. A simple kiosk can
be created using HTML pages and graphics, setting the typesize large enough to attract
people from a short distance, and removing the Web browser's tool bar so that the display
screen is effectively in "kiosk mode." The presentation can be designed to simply loop
through a series of pages or to allow user interaction and exploration. Having a separate
printed sign that invites people to your home-made kiosk may help.
It is self-service solutions, allowing customers to service themselves with computer based
touchscreen and making different sort of transactions. KIOSK Banking is a facility provided
by bank wherein customers need not go to the Bank branch to make different transactions.
The branch itself comes to the customer's village/place where the customer can make/view
the transactions.


Kiosks can be an integral part of the success of a business, but poor planning can lead to an
unpleasant customer experience and, ultimately, drive users away. Too often, when installing
a kiosk, a deployer thinks first of the kiosk and then of the customer, but customer
convenience and comfort must be considered. Learn 10 common mistakes kiosk deployers
make and how to overcome them, including:
Inconvenient location
Not having enough kiosks
Poor browsing mechanisms
Long wait times


DEBIT/CREDIT CARDS:
HSBC AT Ms can be used for-
Depositing cash and checks - no envelopes or deposit slips needed at most ATMs
Withdrawing money from your checking account
Transferring funds
Printing mini-statements

Debit Cards:
The HSBC Debit MasterCard card is accepted anywhere you see the MasterCard card logo. It
can be used to make purchases directly from the HSBC checking account without having to
write a check and enjoy 24-hour access to accounts from any ATM.
The HSBC Debit MasterCard card can be used with no transaction fees on domestic
purchases and no annual or monthly service fees.
Types of debit cards offered-
HSBC Debit Card: Access to HSBC Group ATMs and ATMs affiliated to the Visa
network and access to Visa merchant outlets worldwide
#
.
HSBC Advance Platinum Debit Card:An elite debit card specifically crafted for
HSBC Advance customers, offering host of privileges and benefits
>
. Widely accepted
by merchants worldwide
#
, HSBC Advance Platinum Debit Card offers higher
spending power and fabulous ofHSBC Premier Platinum Debit Card
The Internationally valid HSBC Premier Platinum Debit Card is designed keeping in
mind the convenience and lifestyle requirements of Premier customers. HSBC
Premier Platinum debit card is designed to provide convenience and privileges like
never before. Access to HSBC Group ATMs and ATMs affiliated to the Visa network
and access to Visa merchant outlets worldwide.


Advance Platinum Debit Card
An elite debit card specifically crafted for valuable HSBC Advance customers, offering host
of privileges to match exclusive status and lifestyle. Widely accepted by merchants
worldwide, Advance Platinum Debit Card offers higher spending power and offers.
How does HSBC Advance work?
It works by focusing and assisting you in following four key areas:
Getting more from Day-to-day banking
Protection for you and your family
International services
Fast Track Wealth Accumulation

Eligibility for Advanced customers
Maintain a quarterly Total Relationship Balance (TRB) of Rs. 3 lakh (Rupees three lakh) in a
combination of savings and current account balances, term deposits, holdings in demat
account held with HSBC, investments and life insurance through HSBC
OR
Have a mortgage relationship of Rs. 15 lakh (Rupees fifteen lakh) or more with HSBC
OR
Hold a corporate salary account under HSBC's Corporate Employee Programme in India,
with a net monthly salary credit of Rs. 50,000 (Rupees fifty thousand) or more


A transaction fee is applicable for withdrawals from any ATM outside India. All cash
withdrawals overseas must be strictly in accordance with the Exchange Control Regulations
of the Reserve Bank of India. The aggregate expenses (i.e. through cash/traveller's
cheques/your bank accounts) should not exceed the limit set by RBI, as prevailing from time
to time.

Domestic debit cards issued to the NRI customers holding NRO accounts with HSBC India
or issued to the Power of Attorney holders designated by the NRI customers for their NRE
Accounts with the bank, are valid for transactions within India only.
Credit Cards:
HSBC offers the following type of credit cards:
Platinum credit card
Gold credit cards
Classic credit cards
Co-branded credit cards: like
The Platinum Credit Card from HSBC and MakeMyTrip
The Signature Credit Card from HSBC and MakeMyTrip
HSBC Westside credit card
HSBC Spencer's Happy Ties Card



K. Sai Dinesh (1225113222)
P. Saritha Yadav (1225113234)
Deepika. C (1225113253)

. RTGS:

Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or
securities[1] takes place from one bank to another on a "real time" and on "gross" basis. Settlement
in "real time" means payment transaction is not subjected to any waiting period. The transactions
are settled as soon as they are processed. "Gross settlement" means the transaction is settled on
one to one basis without bunching or netting with any other transaction. Once processed, payments
are final and irrevocable.
NEFT:

The national electronic fund transfer (NEFT) system is a nation-wide system that facilitates
individuals, firms and corporates to electronically transfer funds from any bank branch to any
individual, firm or corporate having an account with any other bank branch in the country.

What is RTGS ?

The full form of RTGS is "Real Time Gross Settlement". RTGS can be defined as "as
the continuous (real-time) settlement of funds transfers individually on an order by
order basis (without netting")


What do you mean by Real Time? What is the Meaning of Gross Settlement"?

Here the words 'Real Time' refers to the process of instructions that are executed at the
time they are received, rather than at some later time. On the other hand "Gross
Settlement" means the settlement of funds transfer instructions occurs individually (on
an instruction by instruction basis). The settlement of funds actually takes place in the
books of RBI and thus the payments are considered as final and irrevocable.


What is NEFT ?

The full form of NEFT is "National Electronic Funds Transfer (NEFT). The NEFT is a
nation wide payment system facilitating one-to-one funds transfer. Under this system,
individuals, firms and corporates can electronically transfer funds from any bank
branch to any individual, firm or corporate having an acount with any other bank
branch in the country participating in the system.

RTGS Vs NEFT :

Thus, we can say that both RTGS and NEFT are schemes started by RBI for the benefit
of the customers which allow accounts holders in the banks to electronically transfer
the funds intra-bank. In the case of RTGS, settlement in on 'Real Time' basis whereas
in case of NEFT the settlement in on batch basis and net basis. There are some other
rules, regulations and differences, which we will be discussing below:-

What are the minimum and maximum amount of remittance under RTGS and NEFT :

RTGS NEFT

Minimum Amount : RS 2 lakhs No minimum
limit
Maximum Amount : No upper ceiling No upper
ceiling

(However, maximum amount per transaction is limited to Rs.50,000/- for cash-based
remittances and remittances to Nepal.)


What are the operating hours of RTGS and NEFT ?

RBI has prescribed the following operating hours for NEFT : Presently, NEFT operates
in hourly batches - there are twelve settlements from 8 am to 7 pm on week days (Monday
through Friday) and six settlements from 8 am to 1 pm on Saturdays.

RBI has prescrbed the following operating hours for RTGS : The RTGS service window
for customer's transactions is available from 9.00 hours to 16.30 hours on week days and
from 9.00 hours to 13.30 hours on Saturdays for settlement at the RBI end.

However, remember that the timings of both RTGS and NEFT at the bank can vary
depending on the customer timings of the bank branches. Moreover, normally, banks
close their own window for accepting the transactions, about 15 minutes before the
above time as to allow them to put the transaction in the system so that it reaches by the
upper time limit at the RBI window. Thus, for each bank / branch the above timings
may sometimes vary.
https://www.hsbc.co.in/1/2/personal/internet-and-self-service-banking/internet-
banking/funds-transfer-demo

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Types of Fraud
There are various ways in which a fraudster may try to deceive you into giving them your
personal and security details. They use these details to get access to your financial
information with the bank and also set up payments out of your account into theirs.
Some of the more common frauds that are prevalent are:
Phishing Emails:
Phishing involves an email message being sent out to as many Internet email addresses that
the fraudster can obtain, claiming to come from a legitimate organisation such as a bank,
online payment service, online retailer or similar. To avoid getting phished you should never
respond to email messages that request personal or financial information and never click on a
link in such an email.
HSBC never asks you to disclose your personal or security details by email. If you
receive such an email, do not respond to it. Forward the same to info@hsbc.co.in and
delete the email immediately.
The Security Device, one of a technological innovations from HSBC, takes online security to
higher levels. To log on to your account on Internet Banking, you need to enter your existing
username and password as usual, followed by the unique security code generated by the
Security Device. This 2-step authentication process provides you with an enhanced level of
security as access to your Internet Banking.
Please read the section on Your role in Online Security to learn about how to protect
yourself from such email frauds.
Trojan:
Trojans are usually emails that may contain files, pages or attachments that you are asked to
open. Once opened, they can secretly install a program on your computer that can monitor
your online activity, down to what keys you're pushing on what page.
This can mean the next time you enter your credit card details on your favourite online
shopping website, the fraudsters will be alerted.
Money mule / Additional income email scam:
A recent scam involves someone offering, via an email or website, to pay funds into your
account on the understanding you then transfer them overseas. In return, you supposedly get a
commission.
Many of these scams involve the proceeds of fraud and you should ignore the request. Any
customer that participates will become involved in a police investigation and we could close
any account involved in this scam. If it looks too good to be true, it probably is a con.
Advanced Fee Fraud ('419' scams):
This involves unsolicited letters and email messages offering the recipient a generous reward
for helping to move a staggeringly large balance of funds, usually in US Dollars.
The fraudsters are after banking details. The transactions typically require the recipient of the
letter or email message to pay something like a fee / tax / bribe to complete the deal - this is
the Advance Fee. Such fees will be lost.
If you suspect someone has access to your Internet Banking details, logon to Internet
Banking to change your Password and immediately call us on our Phone Banking
Numbers. HSBC's Phone Banking numbers are accessible 24 hours a day, 7 days a
week*.
Privacy and Security | Terms of Use | Hyperlink Policy
Copyright 2014. The Hongkong and Shanghai Banking Corporation Limited, India (HSBC
India). Incorporated in Hong Kong SAR with limited liability. All rights reserved.
Multi-layer logon verification
Your financial information is protected by a sophisticated combination of a unique Username
and Password, and a one-time Security Code generated by your Online Security Device.

Transaction verification
When you transfer money or pay bills online, HSBC prompts you for the Security Code
generated by your Online Security Device. This ensures that only you can authorise payment
and transfer requests.

128-bit Secure Socket Layer (SSL) Encryption
HSBC uses 128 bit Secure Socket Layer (SSL) Encryption for information transmitted during
an Internet Banking session, which is accepted as the industry standard for encryption.

Automatic 'Time-out' feature
As a security measure, your Internet Banking session will automatically shut-down or time-
out, out after a period of not being used. You should always close your Internet Banking
session when you have finished.
E SATEMENTS
Please note that only the latest 11 credit card e-statements and the latest 15 bank account e-
statements are held on your HSBC Internet Banking account. You may download these
statements on to your computer if you want to store them for a longer period.
Features & Benefits
With instant access, view your latest accounts and credit card transactions anytime at your
convenience
No more worries about lost or delayed statements; Stay updated on your card dues and
payment dates
Participate in environmental change; reduce paper consumption when you opt for e-
statements
This service is available to you absolutely FREE

You also have a role to play in Online Security
Adopt the following measures to ensure Internet Banking security:
Ensure your computer is protected with the latest anti-virus and firewall protection software
at all times. Download updates regularly to ensure you have the latest protection
Choose a Password that is memorable to you but not easy to guess by someone else.
Passwords that contain combinations of alpha and numeric characters are generally harder
to guess (e.g. a7g3cy91)
Do not choose a Password that you use for other services. Your Password should be unique
to Internet Banking
Change your Internet Banking Password on a regular basis
Never disclose your Internet Banking Password to anyone. A member of HSBC will never ask
you for your Password
Do not write your Internet Banking Username together with your Password. Do not write
your Password in a recognizable format and never leave your logon details with your Online
Security Device
Disable functionality on your computer or browsers that remembers logon details
Keep your system and web browser updated. Manufacturers regularly release security
patches when weaknesses are discovered in their systems and browsers. Check with your
software provider for these updates on a regular basis.
Check the padlock symbol and site certificate. Double-click the padlock symbol at the
bottom of your browser when you log-in to HSBC Online Banking to ensure the site
certificate belongs to HSBC. This will ensure you're not being duped into entering your
details on a 'fake' site.
Check your accounts regularly. If in doubt about any transactions, note the details and call
us.
Always log-out after using Online Banking. Just select the log-out button and never leave
your PC unattended while you're logged in to the service.
See how to transfer funds online.