ASSINGMENT-2 BANKING THEORY & PRACTICES TOPIC: BANKING SERVICES PROVIDED BY STATE BANK OF INDIA

BY: ANCHAL JAIN B.COM ,5TH SEM K REG NO:10BC300023

INDEX I. II. Acknowledgement Introduction a)History of sbi b) Current status of sbi III. IV. V. Minor account a)opening of minor account Joint bank account a)opening of joint account SBI current bank account facilities a)Features of current account b)Documents required for opening current account: Individual Sole proprietorship Hindu undivided family business (hufs) Partnership firm Private/unlisted companies VI. Online sbi banking services (corporate banking) Access to multiple user Account statement Fund transfer Demat account statement VII. Online sbi banking services (personal banking) SBI E-filing SBI virtual card ASBA facility Other services

Acknowledgement I am thankful to Mrs. Ashiwin mam, our teacher who gave us this project due to which we could learn about public banking facilities and services in depth. It has enriched our knowledge about bank and service provided by them also we gained lot experience while working on this project also it helped in building our team work skills.

ITRODUCTION: State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking and financial services company in India by revenue, assets and market capitalization. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it had assets of US$360 billion with over 13,577 outlets including 157 overseas branches and agents globally. It is the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank of India. SBI has been ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 18,324 branches, has the largest banking branch network in India. SBI has 14 local head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore, Mumbai, Bhopal & Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country. It also has 157 branches overseas.

SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010 MINOR ACCOUNT

Its an account may be opened on behalf of a minor by his/her natural guardian appointed by a court of competent jurisdiction. The guardian shall represent the minor in all transactions of any description in the above account until the said minor attains majority. Upon the minor attaining majority, the right of the guardian to operate the account shall cease. Opening a minor account requires the information of the child, the birth certificate for age proof to prove the minority, and the identity and residential proof of the guardian or the parent or the appropriate authority. A letter of undertaking as well as letter of request to open a minor account on behalf of the child or the ward should be provided to the bankers.

Joint Bank Account is a type of account where there are two owners of the account and they can operate the account jointly. In case of absence of one owner, the other one can carry out the transactions. The Documents Need: The documents needed to open a SBI Joint Bank Account are not very different from the requirements laid down for individual ownership. Identity proof (passport, PAN card, voter ID, driving license etc.) Current Address proof (utility bills, bank account statement etc.) Recent photograph. In case of SBI Joint Bank Account, unless and until, the joint applicants are very closely related, the proof of identity as well as that of the current address is to be separately furnished by the applicants. So, irrespective of the nature of the Savings bank account, SBI Joint Bank Account can be opened. SBI Current Bank Account State Bank of India provides current account facilities for the individuals, public and private limited companies, partnership firms, HUFs/specified associations, trusts etc. The basic requirements and documentation criteria for the individuals is same as in the case of savings bank account. The formalities which are to be followed in case of the public and private limited companies, partnership firms, HUFs/specified associations, trusts etc are mentioned on request.

The features of the SBI Current Bank account are: Credit balances in SBI Current Bank account do not bring any interest earning. The statements are given to the owners as per their desired frequency. Every single owner of the current accounts has the cheque facility and any kind of withdrawal is to be done by cheque. The important thing that is to be kept in mind is that cheques should not be issued for any withdrawal below Rs 100. If a cheque is presented after six months of issue is considered stale and is not paid. The cheques are to be drawn only when there is adequate balance in the account. The cheque book needs to be kept safely and in case a cheque or the cheque book is lost, there should not be any delay in reporting the same to the bank. A cheque can be stopped only after the drawer provides a notice in written mentioning all the details of the cheque before the cheque is presented for payment. The minimum balance to be kept in the current account for different cases is mentioned below: i) Individual account in metro: Rs. 5000 ii) Individual account in urban area: Rs. 5000 iii) Individual account in semi- urban area: Rs. 5000 iv) Individual account in rural area: Rs. 2500 v) Other accounts in metro: Rs. 10000

vi) Other accounts in urban area: Rs. 10000 vii) Other accounts in semi- urban area: Rs. 10000 viii) Other accounts in rural area: Rs. 5000 A) While applying for opening a current account or availing various other funded or non-funded services the applicant has to provide the following documents to the banks or lending institutions. (B) In addition to this some additional/supporting documents may also be required depending upon the product proposition/constitution of the business entity. (C) Some documents may be required/asked by the banks or lending institution in post sanction phase or on periodical basis. The list enumerates the documents required for the applicants which may be an Individual, a Proprietorship firm, a Partnership firm or a Limited company. Documents required for individual :Proof of Identity (any of the following) Photo PAN card Voter's identity card Valid Indian passport Valid driving license MAPIN card Photo ration card ID card issued by any government department/company Proof of address (any of the following) Valid Indian passport Voter's identity card Valid driving license

 Ration card Life insurance policy Society outgoing bills Electricity bill Telephone bill Property tax bill Any valid document/letter issued by government department Valid registered lease deed. Sole proprietorship Proof of identity of the Sole proprietorship Firm (any of the following) PAN ID of the concern IT return of the concern Sales tax/Service tax documents/registration certificates VAT/Excise registration documents Registration under shops and establishment act Electricity bill in the name of the concern Water/Municipal tax bill in the name of the concern MAPIN card in the name of the concern Individual identity proof of the Sole proprietor (any of the following) Photo PAN card ,Voter's identity card, Valid Indian passport, Valid driving license MAPIN card, Photo ration card, ID card issued by any government department/company Address(residence) proof for the Sole proprietor (any of the following) Same as for individual with the following additions

 Society outgoing bills, Any valid document/letter issued by government department Valid registered lease deed

Private/Unlisted Companies :Here also documents are same has required

for sole propreitory in addition to the following documents : Certificate of Incorporation Memorandum and articles of association duly authenticated by the company secretary Appropriate board resolution authorizing dealing with the bank Copy of the annual return or a letter establishing the shareholding pattern List of authorized signatories along with individual identity proof (any of the following) Photo PAN card Voter's identity card Valid Indian passport Valid driving license MAPIN card Photo ration card ID card issued by any government department/company

 List of Directors Copy of form 32 filled with Registrar of Companies(ROC) Online banking- Corporate banking services Access to multiple user: Online sbi can be used by all kind of users it can be used for personal banking, corparate banking, net banking etc 2. Account Statement:OnlineSBI can generate an account statement for a date range for any of your accounts. The statement includes transaction details, opening, closing and accumulated balance in the account. 3. Funds Transfer:You can now avail a bouquet of funds transfer services through Internet banking ADVANTAGES: 1.Transfer funds within your own accounts 2Transfer funds to third party account held in the same bank 3.Make an Inter bank funds transfer to any account held in any bank including State Bank Group 4.Pay any VISA credit card bill 5.Transfer funds to religious and Charitable institutions 6.Record standing instructions to transfer a fixed amount at a scheduled frequency for a period not exceeding one year

4. Demat Account Statement:Corporate Internet Banking enables you to view your Corporate Demat account online. You can view the account details and generate the following statements online. Statement of holding Statement of transactions Statement of billing 5. Demand Draft:OnlineSBI enables customers to issue demand drafts online. Customer has the option to collect the draft from branch or give his mandate to dispatch the draft by courier to the beneficiary. 6. Utility Bill Payment:SBI e-PAY - A simple and convenient service for receiving and paying your bills online No more late payments No more queues No more hassles of depositing cheques OnlinePay: Using SBI e-PAY you can 'see and pay' your various bills online, directly from your SBI Account. You can pay telephone, electricity, insurance, credit card and other bills - from the comfort of your home or office, 24 hours a day, 365 days a year. You also get an electronic acknowledgment for every bill paid by you using e-PAY.

AutoPay: You can also set up AutoPay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. The upper limit ensures that only bills within the specified limit are paid automatically, thereby providing you complete control over these payments. 7. File Upload Facility:To facilitate bulk transactions, OnlineSBI provides for upload of files containing following financial and non financial transactions: Inter and Intra Bank fund transfers- Example Salary Payments, Vendor Payments, etc. Request for issue of demand drafts,Tax payments. Direct debit whereby suppliers debit the account of the dealers Beneficiary- addition and deletion,Billers registration Top up of pre paid cards 8.Direct Debit Facility Direct debit is a facility given to Corporates (Suppliers) having Vistaar facility and supplying goods to their Dealers (Dealers need not be availing INB facility) whereby the Corporate (Supplier) can directly debit the accounts of their dealers maintained at SBI branches at different locations. In this facility the Supplier and the Bank will enter in to a bipartite agreement, based on which, the Dealer will provide a mandate to the supplier for debiting his account up to a specific limit.

Example: Company 'A' (Supplier) is supplying petrol to his dealer 'B' (Dealer) The conventional method: 'B' approaches his bank and takes a demand draft then fills up the requisition form and sends it to 'A'. 'A' then deposits the DD in his bank and after realization of the DD, supplies petrol. In respect of "SBI Direct Debit" the flow will be as under: 'B' places the order for petrol; online/over telephone/by fax (Any mode). 'A' raises debit to the Dealer's account through OnlineSBI. Upon confirmation of the credit, 'A' supplies petrol to 'B'. This is also referred to as the 'Pull method of e-collection' 9. Online Auditor: OnlineSBI provides for an optional role of Online Auditor who takes a quick second look at the transaction and post-facto audits them offline. If this option is exercised, the Regulator shall set the threshold on number of un-audited e-pay orders in the auditor's inbox at any given point of time and amount of pay order beyond which the transactions need to be audited. The auditor needs to clear the transactions in his inbox on a continuous basis so as to ensure that the number of un-audited entries in his inbox remain within the set threshold limit. The system will not allow the users to create fresh transactions involving amounts beyond the set limit, if the number of un-audited entries in the auditor's inbox exceeds the threshold limit of un-audited e-pay orders. This is applicable to Corporates availing Vistaar facility 10. User Hierarchy :OnlineSBI provides user hierarchy with discretionary access to accounts and discretionary financial rights as desired by the Corporate.

There are three types of users - Regulator (Executive control), Administrator (Management control) and Users (Operational control) Personal banking services: 1. SBI e-File (E-filing of IT Returns) Now you can file your Income Tax returns Online. The new offering is available for the staff and the Banks customers at a discounted rate. The fee for a salaried individual starts as low as Rs.150. The fee for the service can be paid using either SBI Internet Banking or State Bank Debit card. The benefits of this new offering are: It is easy and convenient Does automatic calculations ensuring accuracy Provides online guidance and faster processing Ensures confidentiality of data on a secured technology platform Offers seamless process enabling faster refunds! e-filing process through Tax Spanner, a Govt approved eIntermediary Available at attractive rates exclusively for SBI customers

State Bank Virtual Card: State Bank Virtual Card, also known as Electronic Card or e-Card, is a limit Debit Card created for ecommerce transactions. It provides an easy and secure way of transacting online . Virtual Cards can be used at any merchant location accepting MasterCards / Visa Cards online, without any difference from a regular plastic card. The key features of Virtual Card are as follows: Security Highly Flexible Easy to Use Zero Loss 3. ASBA facility IPO-APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA) SBI has brought a new hassle free solution for investment in IPO called e-Invest. Under the instructions of SEBI, Bank has introduced this supplementary process for applying in public issues. Unlike the current system of applying in IPOs using cheques, where your funds are blocked unproductively as application money till the finalisation of the bid, Under e-Invest your funds will continue earning interest during the application processing period. Bank will mark a lien on the deposit account of the investor to the extent of the application

money. Lien will be removed immediately after finalization of the basis of allotment. If bid is successful, lien will be removed and the shares allotted will be transferred to the applicants Demat account. This facility is also available for right issues. An Investor can apply through ASBA, provided he/she: is from any of the approved category eligible to apply in IPO as per SEBI guidelines. is maintaining a Savings Bank or Current Account with SBI. is having Demat account with any of the DP along with Permanent Account Number PAN) has sufficient clear balance in his/her Savings Bank or Current account (including overdraft account) for application money. o An Investor can also modify, revise or delete the bid within bidding period. o An Investor can make 5 applications from a single deposit account. o 1061 branches have been designated for this purpose. The product is also available to the users, of our Internet Banking with transaction rights.Internet banking users should log on to www.onlinesbi.comand go to DEMAT/ASBA option. He/She can apply electronically without need of physical application form. He/She should have DePositry A/c with any service provider.

OTHER SERVICES Online Shopping Foreign Travel Card Mobile Banking Services NRI Services Online SBI Global SBI Express Remit Secure Card Transactions Net Banking for Visually Challenged

ASSINGMENT-2

AUDITING TOPIC: AUDITORS REPORT, BALANCE SHEET PROFIT & LOSS ACCOUNT OF MISCHIEF CLOTHING PVT.LTD
BY: ANCHAL JAIN B.COM 5TH SEM K REG NO:10BC300023

INDEX AUDITORS REPORT

BALANCE SHEET PROFIT AND LOSS ACCOUNT STATEMENT