1. Ancillary Services
2. Banking Ancillary services
Remittance suggests the transfer of funds on a branch of the identical bank or a different bank. The client will create payment at intervals town through banker’s cheques and for remitting funds from one center to a different through Demand Draft (DD), Mail Transfer (MT), Telegraphic Transfer (TT), National electronic funds transfer (NEFT), and Real-Time Gross Settlement (RTGS) at nominative service charges. Banker’s Cheque or Payment Order could be a cheque issued for creating the payments at intervals identical town. All bankers’ cheque is pre-printed with “NOT NEGOTIABLE”. It may be cleared in any branch of an identical town. Bankers cheque may be cleared in any branch of the bank provided it comes underneath the native jurisdiction
- Demand Draft: Demand draft could be a legal document wont to transfer cash from one person in one town to a different person in another town. Demand draft of Rs. 20000 or additional ought to be issued with “A/c payee” crossing. It may be cleared at any branch of an identical bank. Demand Draft may be cleared at any branch of an identical bank no matter town.
- A mail transfer could be a method of remitting cash from one place to a different bank. Just in case the receiver could be a client, his account is attributable. It’s used for internal and international remittances. Bank charges commission for this service.
- Telegraphic transfer, conjointly called Wire transfer is an associate degree electronic technique of transferring funds. During this technique, cash is transferred from one bank to a different via cable services or telegraphs. Earlier, overseas payments via telegraphic transfer were a preferred technique. Though telegraph isn’t used for transfers nowadays, the name still remains identical for the transfer of funds electronically or for any wire transfer transactions.
- Mobile banking started in the Asian nations in 2002, and previously, transactions were dispensed through SMS. Today, the majority of banking transactions may be performed employing a laptop, laptop computer, or smartphone. Everything from bank account statements to paying Mastercard bills, utility bills, and transferring funds may be done online.
- Safe Deposit locker could be a facility extended to the client to change to the purchasers to change them to stay their valuables/ documents etc, in an exceedingly specially designed locker on payment of prescribed rentals. The connection between the bank and therefore the employer of the lockers is that of a “Lessor and Lessee” or “Bailor and Bailee” (Licensor and Licensee).
Banking Ancillary services
Bank has 2 main activities
- Because the sourcing or borrowing of funds (as deposits and capital from the market)
- And therefore the deploying or disposition the funds as Loans and Investments): these type the standard and core activities of all the banks.
Apart from these basic activities, the banks give a range of alternative services or products.
The most standard ones are listed below.
- Funds transfer service: helpful for causing and receiving cash from everywhere around the globe. The products that cowl these services are Demand Drafts, Bankers Checks/Pay orders, EFT (Electronic Funds Transfer), etc. The names given to those services might vary among the banks however primarily they’re identical.
- For-ex service: you’ll purchase the exchange for any purpose of expenditures like travel, shopping for merchandise, and sell identical to the bank after you earn or receive from abroad. Of course, these forex- transactions are subject to the principles and rules prevailing in an exceedingly country and that they are provided by solely those bank branches that are approved by the Banking Authority or Regulator for this purpose.
- Tutelar Service: Keep your valuables like jewels, documents under this service that is usually called Locker facility (Safe Deposit Vaults in banking formulation. The bank can collect a nominal fee for the service.
- Gold sale: Purchasing pure gold for self-consumption or for mercantilism by the jewellery businesses. Here also, solely a number of elite branches of banks or banks are allowed to supply this. The product sometimes varies from a coin to a one hundred-weight unit biscuit or bar.
- Investment service: Invest your cash within the mutual funds surpass the banks. The service comes as a Portfolio service and as a complete product wherever the choice to induce most returns is borne by you. Each has the and minus however these products are offered to suit the convenience of the investors.
- Insurance sale: a spread of insurance product covering the danger of life, health, assets like vehicle, credit and debit cards, travel are offered by the majority the banks by themselves or unwieldy with the leading insurance firm firms that once more is also native or international entities.
- Card services: Primarily meant for safety and convenience purpose however currently, has become a payment mode and an emblem of economic standing. The cardboard product sometimes is known as charge account credit, MasterCard.
- eBanking: conjointly called Net banking or web banking is that the latest and most convenient facility of the banks. You can get an id and secret to work your account online: For the transfer of funds to a different account within the same bank or another bank. You’ll keep the excess funds in fastened deposit by victimization this facility. The most effective use of this facility is for searching online.