Remittances

Remittances is a service provided by banks through which customer can remit funds without carrying physical cash. Banks earn commission on this. Major remittances modes are 1.Demand draft 2.Pay order/pay slip 3.Electonic clearing system (ecs) 4.National electronic fund transfer (neft) 5.Realtime gross settlement (rtgs)

Demand Draft

It is a mode of remittance to remit funds outside the city. Demand draft is issued by one branch of a bank to another upcountry branch. The amount will be paid by the drawee branch.

Demand Draft

Cancellation of demand draft. Duplicate demand draft. Revalidation of demand draft

Pay Order

Pay order is a mode of remittance for remitting funds with in the city. The amount will be paid by the issuing branch itself.

Electronic clearing system

A mode of remittance between bank and any other organization. Generally used for remittance having regular frequency. Helps corporate bodies to credit dividend and interest warrants to the investors accounts without issuing paper instruments.

Now even banks are using ECS for recovering installments from borrowers accounts.

National electronic fund transfer

NEFT is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. Beneficiary gets the credit on the same day or the next day depending on the time of settlement as per the next time slot available in RBI. This can also be done by the customer using net banking services offered by the banks.

Real time gross settlement

RTGS is also used for inter bank fund transfer. In RTGS, final settlement of fund transfer instructions take place continuously in real time. Each participating bank is allotted an 11-digit IFSC code.

Other Ancillary Services

Safe deposit vault Credit card/ATM card Banc assurance Mutual funds

Safe deposit vault

The customer will be allotted a locker where he can keep his valuable things safely. The locker will be under dual control. Safe deposit vault will be of different sizes Rent will be collected in advance by the bank from the customer.

Credit card

A credit card is an instrument which provides instant credit facilities to its holder to avail of a variety of goods and services at the merchant outlets. This card is made of plastic and hence popularly called as plastic money

Banc assurance & mutual funds

Majority of banks are corporate agents insurance.

for mutual funds and

Banks do business for them through their client base. Banks get commission income for doing this business. Customers get the facility of availing variety of products under one roof.