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Introduction to Banking

Banking Transaction

Having learned about Fixed Deposits, one day, Satish left his office early to visit the bank and open a fixed deposit. When he met the representative at the counter, he was told that there was no need for him to visit the branch, he could have done it himself if he had signed up for online banking.


Surprised, Satish wanted to know more about it and got to know the following information:  


Various Banking Channels for Transactions 

Banks offer their services through various channels which help them to serve their customers better. Two decades back, customers could avail of banking services only through branches. Banking has come a long way since. Today, banks service their customers through:


  • Branch Banking: This is an office of the bank where all kinds of banking operations and transactions can be done under one roof. This is the most traditional channel. It is manned by trained and knowledgeable bank personnel who are eager to help customers. 

    Sometimes, banks open a miniature version of branches in some locations to serve their customers. Known as ‘Extension Counters', these are mini branches through which some of the functions of branches can be performed. These extension counters help banks to serve their customers better. 
  • Online Banking: Almost all banks have a robust Online Banking portal nowadays which are mini branches available online. Customers are issued with their own login ID and a confidential password to access their account. From viewing transactions to making foreign remittances, customers can perform almost all transactions online. They can also make service requests for those services which are not available online and have a bank representative contact them in return.
  • ATM Channel: There was a time when people had to make trips to bank branches and wait in long queues to withdraw even ₹ 100 from their accounts. Today, very rarely people visit a bank to withdraw money, thanks to Automated Teller Machines (ATM). Customers can withdraw money 24 hours a day from any ATM located near them. Customers can also deposit money, view recent transactions, express their interest in obtaining a loan or a credit card, and perform a host of functions using ATMs.
  • Phone Banking: There's a mini-branch available on customer's phones today which is known as Phone Banking. The Phone Banking channel enables banks to serve their customers through an Interactive Voice Response (IVR) system and representatives over the phone. It is an extremely useful channel for customers and enables them to perform a host of banking activities over the phone. 
  • Mobile Banking: The whole world is glued to their mobile these days. So it is essential for banks to have a mobile presence as well. Most banks have a functional mobile app through which many transactions can be done. 

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