Wednesday, July 23, 2014

State Bank of India and its subsidiaries

Image result for sbi images

List of Subsidiaries of SBI

State Bank of India is the largest government owned bank in India. SBI along with its subsidiaries has more than 25000 branches across India and more than 40000 ATMs. Given below are the subsidiaries of SBI –

1. State Bank of Bikaner & jaipupr
2. State Bank of Hyderabad
3. State Bank of Mysore
4. State Bank of Patiala
5. State Bank of Travancore
6. State Bank of Indore – It was merged with SBI in the year 2010
7. State Bank of Saurashtra – – It was merged with SBI in the year 2008
The government is planning to merge all other subsidiaries also with SBI in coming future.

Thursday, July 17, 2014

What is Piggy Bank ?

 Piggy bank (sometimes penny bank or money box) is the traditional name of a coin container usually used by children.The piggy bank is known to collectors as a "still bank" as opposed to the "Mechanical  Banks" popular in the early 20th century. These items are also often used by corporations for promotional purposes. The use of the name 'piggy bank' gave rise to its widely-recognized 'pig' shape, and many financial services companies use piggy banks as logos for their savings products.

Piggy banks are typically made of ceramic or Porcelain.They are generally painted and serve as a pedagogical device to teach the rudiments of thrift and savings to children; money can be easily inserted. Many piggy banks have a rubber plug located on the underside; others are made of vinyl and have a removable nose for easy coin access. Some incorporate electronic systems which calculate the amount of money deposited.[Books, film, and other dramas often portray piggy banks that have no opening besides the slot for inserting coins; characters will usually have to smash the piggy bank to get at the money within as a visual representation of their desire for money.

Wednesday, July 16, 2014



NEFT or National Electronic Funds Transfer system has been introduced by the RBI to make funds transfer between banks throughout India fast and hassle free. A bank branch has to be NEFT enabled for a user to be able to transfer funds to another user using this facility.


Real time gross settlement (RTGS) as defined by RBI is a continuous (real-time) settlement of fund transfers individually on an order by order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time; ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).


RTGS differs from NEFT in the settlement time. In the case of NEFT, there are batches defined for settlement and if a transaction crosses the stated time, it has to wait for the next batch to be processed. Transactions in RTGS are processed continuously throughout the working hours.

Minimum amount of transfer required for RTGS is Rs. 2 lakh. There is no upper limit, though.  The beneficiary bank has to credit the beneficiary’s account within two hours of receiving the funds transfer message.


IMPS (Interbank Mobile Payment Service) is also known as immediate payment service. This might be a lesser popular service than the ones listed above. However, with mobile phone usage increasing day by day, transactions using this service is expected to be huge in the coming years. Users can transfer funds to their desired bank accounts through their mobiles which have internet access.

Unlike RTGS and NEFT, IMPS can be used 24*7 to transfer funds between bank accounts throughout India. Following are the charges for IMPS transactions (similar to NEFT):

-  For transactions up to Rs 10,000: not exceeding Rs 2.50 (+ Service Tax)

- For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)

-  For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)

                                    Guideline from RBI for NEFT and RTGS Transactions:

Done in batches (Slower) NEFT
Real time (Faster) RTGS
Full Form
National Electronic Fund Transfer
Real Time Gross Settlement
Timings on Mon – Fri
8:00 am – 6:30 pm
9:00 am – 4:30 pm
Timings on Saturday
8:00 am – 12:30 pm
9:00 am – 1:30 pm
Minimum amount of money transfer limit
No Minimum
2 lacs
Maximum amount of money transfer limit
No Limit
No Limit
When does the Credit Happen in beneficiary account
Happens in the hourly batch Between Banks
Real time between Banks
Maximum Charges as per RBI
Upto 10,000 – Rs. 2.5
from 10,001 – 1 lac – Rs. 5
from 1 – 2 lacs – Rs. 15
Above 2 lacs – Rs. 25
Rs. 25-30 (Upto 2 – 5 lacs)
Rs. 50-55 (Above 5 lacs)
(Lower charges for first half of day)
Suitable for
Small Money Transfer
Large Money Transfer

Tuesday, July 15, 2014

Green Banking

Defining green banking is relatively easy. It means promoting environmental-friendly practices and reducing your carbon footprint from your banking activities. This comes in many forms. Using online banking instead of branch banking. Paying bills online instead of mailing them. Opening up CDs and money market accounts at online banks, instead of large multi-branch banks. Or finding the local bank in your area that is taking the biggest steps to support local green initiatives.
Any combination of the above personal banking practices can help the environment. So this leads to the question, which banks are green. In general, online banks and smaller community banks have better track record than larger banks. For instance, take a look at the banks that British Petroleum has been reported to seek lines of credit from this past summer after the oil spill.


Saturday, July 12, 2014

Foreign Direct Investment (FDI)

Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country.

S.No                      Name of the Industry or Sector                              FDI Limit(%)

  1                           Insurance                                                                   49
  2                           Banking                                                                      74
   3                           Advertising                                                                100
   4                           Agriculture                                                                 100
  5                           Airports                                                                        74
  6                           Broadcasting                                                              74
  7                           Asset Reconstructions                                            74
    8                           Courier Services                                                       100
   9                           Coal & Lignite                                                             74
  10                         Credit Information comes                                        74
  11                         Defense                                                                        26
  12                         Direct to Home(DTH                                                  74
  13                        Drugs and Pharmaceuticals                                    100
  14                        Electricity                                                                      100
  15                        Films                                                                               100
  16                        Hotels & Tourism                                                        100
  17                        Real Estate                                                                    100
 18                        Mining                                                                              74
 19                        Retailing                                                                          51
  20                       Non-banking companies                                             100
  21                       Oil, Petrol and Pollution                                                100
  22                        Power                                                                               100
  23                      Satellites                                                                             74

          Note:  The Foreign Investment Promotion Board (FIPB) is a national agency of Government of India, with the remit to consider and recommend foreign direct investment (FDI) which does not come under the automatic route
For More information go through       

Wednesday, July 09, 2014

Point Of Sales (POS)

What is Point of Sale (POS)?

POS or PoS is an abbreviation for Point of Sale (or Point-of-Sale, or Point of Service). The term is applicable to a retail shop or store, the checkout/cashier counter in the store, or a location where such transactions can occur in this type of environment. It can also apply to the actual Point of Sale (POS) Hardware & Software including but not limited to : electronic cash register systems, touch-screen display, bar code scanners, receipt printers, scales and pole displays. Point of Sale Systems are utilized in many different industries, ranging from restaurants, Hotels & hospitality businesses, nail/beauty salons, casinos, stadiums, and let's not forget - the retail environments. In the most basic sense, if something can be exchanged for monetary value - a Point of Sale System can be used.
Cash Withdrawal at Point-of-Sale (POS)
Presently cash withdrawal facility using plastic cards is available only at Automatic Teller Machines (ATMs). As on May 31, 2009, number of ATMs and POS terminals in the country stood at 44,857 and 4,70,237 respectively. The use of debit cards at Point-of-Sale (POS) terminals at different merchant establishments has been steadily increasing. As a further step towards enhancing the customer convenience in using the plastic MONEY, it has been decided to permit cash withdrawals at POS terminals. To start with, this facility will be available for all debit cards issued in India, upto Rs.1000/- per day.

Benefits of Using a POS System

The right Point of Sale system will give you control over many different areas of your business operations increasing efficiency and profitability.  A Point of Sale system will streamline business operations, including inventory and vendor management along with streamlining Point of Sale processes.  The following overview, categorized by area of operation, highlights some of the typical benefits of using a Point of Sale system. 
·          Inventory: a Point of Sale system allows you to categorize your inventory by a number of fields for easy lookup and sorting of your merchandise.  A typical inventory hierarchy would include Store, Dept., Class, Subclass, Item Description, Size, and Color.  Most systems also offer extended inventory descriptions to track additional information such as alternate lookup and additional product descriptions.  You can quickly search and sort your inventory to track quantity on hand and restock levels for each item in your inventory.  In addition you can typically track suppliers, substitutes, aliases, and parent relationships. 
·          Purchasing: a Point of Sale system will help you replenish items efficiently and negotiate lower vendor costs.  You can quickly generate purchase orders and add items on the fly. Purchase orders can be created for standard items as well as matrix items (size and color).  Purchase orders can be tracked by order date, receive date and cancel date so you can take the appropriate action on your open orders.  You will be able view what is on order and backorder at all times and print aging reports for open orders. 
·          Point of Sale: allows you to reduce pricing errors and speed up checkouts.  A Point of Sale system enables cashiers to process transactions and serve customers efficiently, and allows managers to maintain tight control.  Some of the benefits of using a system include the ability to automatically look up and sell items based on pre-set sales, quantity discount, and preferred price levels.  In addition at the Point of Sale you can check availability of items on the fly and be able to support multiple tender transactions, including cash, check and credit card. 
·          Customer Relationship Management (CRM): keep a complete profile of every customer who has shopped in your store.  Customer information typically includes demographics, preferences and purchase history.  Using CRM features will allow you to target market and send promotions to customer based on purchasing history or other specific customer preferences.
·          Reports and Analysis: a Point of Sale system will allow you to preview, search and print daily sales reports and journals by register, batch, and receipt number. 
You will be able to identify sales trends by item, style, department, and vendor.  Review top performer reports for cashier, sales person, and customers.  Most systems will also allow you to export reports directly into Excel, XML, CSV or your E-mail application.  

Tuesday, July 08, 2014

CTS Cheques

As per the RBI'snew check book guidelines from 2013 of Cheque Truncation System (CTS) effective from January 2013 there is a new sort of revolution due technological advance to make paper cheque and Demand Drafts clear very fast.
The technology is to scan the cheques and clear it on machines and no physical movement of cheques will be required locally or for outstation.
A CTS-2010 standard cheque can be identified by a mention of CTS-2010near the tear away portion of the top left side of the side written vertically.
It means all your old cheques(non-CTS complaint) will not be usable even in your home branch( for example for Self cheques).
Good news is that many private banks were already issuing CTS complaint cheques many months before December, 2012.

For example all cheques issued by Yes Bank after March, 2012 were CTS complaint and those customers need to nothing for new cheques.
This new system will improve efficiency, increase security, lower man power hours, physical delivery costs including chances of getting lost and most importantly saving clearing time. For example mine out station takes 7 days for clearing, I expect it to be cleared by next day.
Now say thanks to RBI for copying western technology in India, pretty fast!