Whether you are opening your first bank account or have managed a checking account for years, it helps. Special types of customers under the indian legal regime. They represent no more than 20% of your customer base, but make up more than 50% of your sales discount. Annals of the university of petrosani, economics, 122, 2012, 1274 127 customers categories and types of banking services daniela simona dimitriu abstract. Customers categories and types of banking services 129 romania, but in perspective, the number of those who open their personal accounts should increase considerably. Different types of banks in india 5 commercial banks 6 cooperative banking system 7 national bank for agriculture and rural development nabard 9 small industries development bank of india sidbi 9 national housing bank nhb 10 export import bank of india exim bank 10 functions of commercial banks 11 lesson round up 12 self test questions.
A bank is a place for customers to keep their properties especially cash in order to secure the safety of the properties, hence it is the responsibility of bank to ensure the security of these properties. Under individuals, the following special types of customers. It is called a central bank because it occupies a central position in the banking system and acts as the highest financial authority. In sales, commerce and economics, a customer sometimes known as a client, buyer, or purchaser is the recipient of a good, service, product or an idea obtained from a seller, vendor, or supplier via a financial transaction or exchange for money or some other valuable consideration. Types of customers presented by sindu akilesh chapter 3 types of customers. If you are an active duty military member, please call 800. The legal relationship between a bank and its customer differs in several important respects from the relationships between most other service providers. The interest provided by public sector bank is only 4%, however, some of the private banks like yes bank and kotak bank offers interest between 67%. For this purpose, the bank can open accounts for the public 3. Broadly bank customers can be classified into two categories individuals and nonindividuals. The present discussion highlights the legal position of the special cases of a banks customer and the necessary precautions that a prudent banker should take while dealing with them. Introduction the term customer of a bank is not defined by law. Those rights and responsibilities are also known as special features of. Aug 21, 2014 friends, before going to read this article please read the definitions of banker and customer.
Special types of banking customers linkedin slideshare. Customers that make up a minority of the customer base but generate a large portion of sales. The study totally revolves around the opinions and feedback from the users. United bank of india priority sector loans covers the following different types. To suggest the strategies for the bank to improve the level of customer satisfaction. These deposits are made to deposit accounts such as savings accounts, checking accounts and money market accounts. The opening of an account by a customer with a banker creates an obligation on the banker towards its customer in respect of certain rights and responsibilities. Indian national working abroad for a specific period. Loyal customers these types of customers are less in numbers but promote more sales and profit as compared to other customers as these are the ones which are completely satisfied. Some banks also offer special savings accounts for the various sections of society, like women, senior citizens, children, etc. Banker and customer relationship muse technologies. Oct 02, 2018 broadly bank customers can be classified into two categories individuals and nonindividuals.
You might not have heard of all of these banks, but each example probably plays some part in your everyday life. Hence, they are called a special types of customers. When banks required to disclose customer information 8. Not to be specific but most of the customers of a bank are of different kinds. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.
The bank has the right to sell the subject matter in possession in the ordinary course of business as a banker, and adjust the unpaid debt. The relationship between a banker and a customer depends on the type of transaction. The reason being the lunatic being of unsound mind is not competent to comprehend a contract. Customer of a bank is a person who is maintaining an account in his own name or in whose name the deposits are maintained 3. Follows the procedure and accepts the terms and conditions under the indian contract act,1872. The parent can do this either in their will or in a special type. They do not have to buy a particular item at the top of their list, but come into the store on a whim. All the banks safeguard the money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashiers cheques. If he needs cash, he will go to the bank branch and withdraw money from inside the bank. Joint stock companies limited liability companies 5.
Customers play the most significant part in business. Special types of customers free download as powerpoint presentation. Each financial institution sets the terms and conditions for each type of account it offers, which are classified in commonly understood types, such as deposit accounts, credit card accounts, current accounts, loan accounts. The goal of this study is to obtain a deep understanding of the impact of customer loyalty programs on customer retention. The impact of customer loyalty programs on customer. Case study on state bank of india amruth raj nippatlapalli business management,v. The banks also offer investment and insurance products. Different types of customers management study guide.
Types of customers overview, five main types, and selling. So in the end this is a story about how the standards that uk companies are expected to follow. Lesson 15 banking national institute of open schooling. The relationship between a banker and a customer is the foundation on which mutual duties, liabilities and privileges are being built. A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. The different types of bank deposits include a current deposits are deposits which can be withdraw by the depositors as and when they want, without any notice. Various types of relationship, kyc norms, special types of. A commercial bank is a financial institution that grants loans, accepts deposits, and offers basic financial products such as savings accounts and certificates of deposit to individuals and businesses.
Lending activities can be performed either directly or indirectly through capital markets. Under individuals, the following special types of customers also come. This dissatisfaction could be because of a variety of reasons. These banks play the most important role in modern economic organisation. In the retail industry, customers can be segmented into five main types. Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. T he opening of an account with a banker, and the bankers acceptance for such opening of account gives rise to a contractual relationship. In fact the customer is the actual boss in a deal and is responsible for the actually profit for the organization. The bank has a lien on cheques deposited to the customer s account, to the extent that the customer is indebted to the bank. A banks job is to provide customers with financial services that help people better manage their lives. On the basis of functions, the banking institutions in india may be divided into the following types.
Four different types of services banking first bank. Every country has a central bank of its own generally regulated by a special act. Hence its important for an organization to retain customers or. Ordinarily, a person who has an account in a bank is considered as its customer. The study was conducted to know the customer satisfaction regarding service provided by sbi for the customers. Bank deposits consist of money placed into banking institutions for safekeeping. Their business mainly consists of receiving deposits, giving loans and financing the trade of a country.
Now you have, supposed, opened a saving account with a bank and have legally become a customer of the bank. Your checking and savings accounts are often kept with a retail bank, which focuses on consumers or the general public as customers. Minors are considered one type of special customer in a bank. The market economy is a modern monetary economy a money. While, there is no interest paid on amount held in the account, banks charges certain service charges, on such. Banks open accounts for various types of customers like individuals. He is legally capable of entering into a valid contract. Retail banks are probably the banks youre most familiar with. While opening the accounts the banker has to keep in mind. Most nations have institutionalized a system known as fractional reserve. Customers that do not have a specific product in mind and purchase goods when it seems good at the time. The purpose of this document is to serve as a ready reference of all relevant information in one place for bankers as well as for persons with special needs and disabilities. They are to be dealt with carefully while operating and opening the accounts.
F riends, in our previous post we have discussed about the general relationship between banker and customer. This customer likes the security of bank managers, tellers behind security bars, and a guard with a baton at the doorway. Now come to the researchers topic is that special types of customer means are those who are distinguished from other types of ordinary customers by some special features. It makes money primarily by providing different types of loans to customers and charging interest.
Nonresident individuals nris various types of nri accounts. General lien empowers the bank to retain all movables in its possession but particular lien gives the right to retain the goods or property connected with. A study on customer satisfaction of commercial banks. Central banks are bankers banks, and these banks trace their history from the bank of england. They shop your store frequently, but make their decisions based on the size of your markdowns impulse. The bank must not disclose details of transactions through the customer s account unless the customer consents, there is a public duty to disclose, the banks interests require it, or the law demands it. In a bankercustomer relationship, one of the roles of banker is to act as the trustee for customers. In general the blind customers are given special attention whenever they come to the bank. A person who is not 18 years of age is considered a minor and therefore is a special type of banking customer. The impact of customer loyalty programs on customer retention. To help you meet your financial goals, please consider other u. As technology advances and competition increases, banks are offering different types of services to stay current and attract customers. The general relationship between banker and customer. Jan 15, 2016 the interest provided by public sector bank is only 4%, however, some of the private banks like yes bank and kotak bank offers interest between 67%.
Sep 10, 2009 bank is required to explain the terms and conditions governing the account to the blind person. Whether you are opening your first bank account or have managed a checking account for years, it helps to know the different types of banking services. Banking theory and practice lpu distance education. Under indian contract act, a contract with or by a lunatic is void. Although banks offer a wide variety of accounts, they can be broadly divided into five types. Current account is mainly for business persons, firms, companies, public enterprises etc and are never used for the purpose of investment or savings.
When customers have to deposit certain fund in governmental offices or courts for a specific purpose, a bank can present itself as the guarantee for the customer, instead of. Bank is required to explain the terms and conditions governing the account to the blind person. General legal relationship between bank and customer. Loyal customersthese types of customers are less in numbers but promote more sales and profit as compared to other customers as these are the ones which are completely satisfied. For the data collection, sample of 120 customers who hav their bank account with different banks having operations in surat city on convenience basis. Individual bankingbanks typically offer a variety of services to assist individuals in managing their finances. Customers are provided the facility of bank guarantee by modern commercial banks. The relationship between the banker and customer is, generally, like a commercial transaction.
What are the different types of deposits in a bank. Chapter 3 types of customers the banker has certain legal restrictions for having business relations with certain type of people. For a person a person to be known as a customer of the bank there must be either a current account or any sort of deposit account like saving, term deposit, recurring deposit, a loan account or some similar relation. A bank is a financial institution that accepts deposits and recurring accounts from the people and creates demand deposit. Pdf the bank and customer relationship, combination of. For a bank it is advantageous to have different types of clients because, as will receive deposits and provide loans for both business and individuals. A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans. Different banks specialize in distinct areas, which makes senseyou want your local bank to put everything they can into serving you and your community. College,vikrama simhapuri university,india abstract. Apr 03, 2020 but there are several different types of banks, all serving different needs. Special types of customers partnership banks scribd. These banks offer loans and may provide credit cards, and theyre the ones with numerous branch locations in populated areas commercial banks focus on business customers. What are the different categories of customers in any bank.
A bank account may be opened by any person who can legally enter into a valid. Modern banks collect and pay different types of credit instruments as the representative of the customers. Customer is the one who uses the products and services and judges the quality of those products and services. The study investigates the impact of independent variable. The following are some examples of special types of customers. Banks open accounts for different types of customers like an individual, partnership firm, trusts, companies, etc. Compilation of rules, acts and guidelines are updated as on november 2017. If the banker without knowing that the person is lunatic opens an account and enters into a contract acting in good faith is protected. All economic transactions are influenced in one way. Bank doesnt offer checking or savings accounts in your area.
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