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RESEARCH PROJECT REPORT ON ANALYSIS OF EFFORTS MADE BY COMMERCIAL BANK FOR FINANCIAL INCLUSION
Toward partial fulfillment of MASTER OF BUSINESS ADMINISTRATION
SESSION 2012-2013

INDIRA GANDHI INSTITUTE OF CO-OPERATIVE MANAGEMENT LUCKNOW Session : 2012-13

Guided by Dr. M.K. Jha IGICM, Lucknow

Submitted by Shailendra Kumar Singh MBA-2ND YEAR. 4TH SEM.

ROLL No.: 1117770029

PREFACE
The project titled Analysis of efforts made by Commercial Bank for Financial Inclusion is an outcome of my research report as a part of my M.B.A. from IGICM, Lucknow.

To familiarize with the company as corporate world and its various aspects of functioning, salient features, growth strategies.

I have taken utmost care to prepare the project. I hope that analysis and summary will certainly help the organization to make an effort to innovate their work culture and functioning.

ACKNOWLEDGMENT
Number of individuals have contributed directly and indirectly in this project. I

am thankful to all of them for their help and encouragement. So, I would start by thanking my teachers who gave me knowledge and understanding of the concept. My sincere gratitude is also to Dr. M.K. Jha for permitting me to go for training. Last but not the least I express my sincere thanks to my parents for their constant support and suggestions to accomplish my goals. I thank God for his love and grace that enabled me to complete the project. SHAILENDRA KUMAR SINGH MBA-2ND YEAR. 4TH SEM

DECLARATION

I hereby declare that this project work entitled Analysis of efforts made by Commercial Bank for Financial Inclusion, is my work, carried out under the guidance of my faculty guide Dr. M.K. Jha. This report neither full nor in part has ever been submitted for award of any other degree of either this university or any other university.

SHAILENDRA KUMAR SINGH MBA-2ND YEAR. 4TH SEM

TABLE OF CONTENT
CHAPTERS Index with Page No. 1.)Introduction(600 Words max) 2.) Literature review (400 words max) 3.) Rationale of the study (400 words) 4.) Objective 5.) Hypothesis 6.) Research design a. Sampling b. Data Collection c. Tools d. Data Analysis e. Findings and Pre-conclusion f. Questionnaire 7) Data analysis and findings 8) Conclusion 9) Suggestion 10) Bibliography 11) Questionnaire PAGE NO.

INTRODUCTION
While walking in the streets of any town or city you might have seen some signboards on buildings with names-Canara Bank, Punjab National Bank, State Bank of India, United Commercial Bank, etc. What do these names stand for? Did you ever try to know about them? If you enter any such building you will find some kind of a business office. You will see some employees sitting behind counters dealing with visitors standing in front of them. You will find that some are depositing money at one counter while some are receiving money at another counter. Behind the counters in the office you will see tables and chairs occupied by officers. On one side of the office you will also see a chamber (small partitioned room) where the manager is sitting with papers on his table. This is the office of a Bank. Let us know in detail about banks and their activities. You know people earn money to meet their day-to-day expenses on food, clothing, education of children, housing, etc. They also need money to meet future expenses on marriage, higher education of children, house building and other social functions. These are heavy expenses, which can be met if some money is saved out of the present income. Saving of money is also necessary for old age and ill health when it may not be possible for people to work and earn their living.

The necessity of saving money was felt by people even in olden days.

They used to hoard money in their homes. With this practice, savings were available for use whenever needed, but it also involved the risk of loss by theft, robbery and other accidents. Thus, people were in need of a place where money could be saved safely and would be available when required. Banks are such places where people can deposit their savings with the assurance that they will be able to withdraw money from the deposits whenever required. People who wish to borrow money for business and other purposes can also get loans from the banks at reasonable rate of interest. Bank is a lawful organization, which accepts deposits that can be withdrawn on demand. It also lends money to individuals and business houses that need it. Banks also render many other useful services like collection of bills, payment of foreign bills, safe-keeping of jewelery and other valuable items, certifying the credit-worthiness of business, and so on. Banks accept deposits from the general public as well as from the business community. Any one who saves money for future can deposit his savings in a bank. Businessmen have income from sales out of which they have to make payment for expenses. They can keep their earnings from sales safely deposited in banks to meet their expenses from time to time. Banks give two assurances to the depositors a. Safety of deposit, and b. Withdrawal of deposit, whenever needed

On deposits, banks give interest, which adds to the original amount of deposit. It is a great incentive to the depositor. It promotes saving habits among the public. On the basis of deposits banks also grant loans and advances to farmers, traders and businessmen for productive purposes. Thereby banks contribute to the economic development of the country and well being of the people in general. Banks also charge interest on loans. The rate of interest is generally higher than the rate of interest allowed on deposits. Banks also charge fees for the various other services, which they render to the business community and public in general. Interest received on loans and fees charged for services which exceed the interest allowed on deposits are the main sources of income for banks from which they meet their administrative expenses. The activities carried on by banks are called banking activity. Banking as an activity involves acceptance of deposits and lending or investment of money. It facilitates business activities by providing money and certain services that help in exchange of goods and services. Therefore, banking is an important auxiliary to trade. It not only provides money for the production of goods and services but also facilitates their exchange between the buyer and seller. You may be aware that there are laws which regulate the banking activities in our country. Depositing money in banks and borrowing from banks are legal transactions. Banks are also under the control of government. Hence they enjoy the trust and confidence of people. Also banks depend a great deal on public confidence. Without public confidence banks cannot survive.

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The development of banking in an inevitable precondition for the healthy and rapid development of the national economic structure. Banking institutions have contributed much to the development of the developed countries of the world. Today we cant imagine the business world without banking institutions. Banking is as important as blood in the human body. Due to the development of banking advances are increased and business activities developing so it is rightly said, The development of banking is not only the root but also the result of the development of the business world. After independence, the Indian government also has taken a series of steps to develop the banking sector. Due to considerable efforts of the government, today we have a number of banks such as Reserve Bank of India, State Bank of India, nationalized commercial banks, Industrial Banks and co-operative banks. India Banks contribute a lot to the development of agriculture, and trade and industrial sectors. Even today the banking systems of India possess certain limitations, but one cant doubt its important role in the development of the Indian economy. Banking sector is the first and most important aspect of the economicplanning of a nation for the faster and speedy development of a nation; welldevelopment and advanced banking sector is the precondition. In the most of developed countries of the world, there is very close relation between the business activities and banks. It is quite difficult to think the business activities without the existence in economy as blood in human body. Thus, we can say that, there is a noteworthy contribution of banking sector in the development of various fields such as, agriculture, industries business

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activities, transportation and communication.

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Literature Survey
Indian economy in general and banking services in particular have made rapid strides in the recent past. Developing nations, like India have immensely benefited from the globalizing economy. Wealth has been pouring into the country as investments. Wealth has been also generated by Indian companies from global trade. This has directly affected the lives of many citizens in our country. For many, there has been a dramatic increase in the disposable income. The savings, consumption and investment patterns have changed in the past few years. This has meant that there has been an increase in demand for many financial services from different financial firms. An increasing financially aware middle class have realized the importance of financial services. Banks have streamlined and rationalized themselves to meet up with the changing demands of the people. However, not all the reforms in the financial services sector have still been able to bring in the other half of Indias population who are un-banked. There are many reasons that are obvious for this kind of financial exclusion. The new surge in the economy has not yet percolated into the lower strata of the society. It is easy to blame the capitalist growth for this sort of income disparities; however, the inefficiencies and the inadequacies of the government and its policies are equally at fault for lack of reduction in poverty. Most of the un-banked or financially excluded population of India lives in rural areas; nevertheless there is also a significant amount of the urban population of

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India who face the same situation even with easy access to banks. Many of the financially excluded in these areas are illiterates earning a meagre income just enough to sustain their daily needs. For such people, banking still remains an unknown phenomena or an elitist affair. It is easier for them to keep their money at their house or with some money lenders and easily make immediate purchases (which make up most of their expenditure) rather than to follow the cumbersome process at banks. By making them financially inclusive we are making their financial position less volatile. At the same time, we are treating them on an equal par with other members of the population so that they wouldnt be denied of access to a basic service such as banking.

Financial Exclusion
Financial Exclusion refers to a certain section of the population or a certain group of individuals that has denied the access to basic financial services . The term came to prominence in the early 90s in Europe where the geographers found that a certain pockets or regions of a particular country were behind the others in utilizing financial services. It was also found that these pockets or regions were poorer compared to regions which utilized more of financial services. The term attained a wider connotation in the late 90s when it was expanded to refer to individuals who were denied access to financial inclusion rather than geographical areas. Financial Exclusion could be a hindrance to growth of economy. Without a formal and a legally recognized financial system in which all sections of the population are a part of, it would be impossible even for the most efficient of the

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governments to reach out to all sections of the people. A stable and healthy financial service sector creates trust among the people about the economy and only with this trust (which has legal validity) could a strong, stable and an inclusive economy be created. Financial exclusion is individuals limited access to or use of formal financial services is a problem of epic proportions. More than 3 billion people are financially excluded around the world. With barely 34 percent of its population engaged in formal banking, India has the second-highest number of financially excluded households in the worldabout 135 million. Among those who are financially excluded is a distinct and huge group of consumer, whose potential to become viable banking customers has been greatly under-estimated. Categorized by income, this segment sits just above the poorest of the poor and just below consumers who are currently targeted by most banks. It is served primarily by the informal financial sector.

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Type of Financial Inclusion

1. Transaction accounts 2. Time Deposits 3. Financial Advice 4. Appropriate small credit 5. Insurance 6. Mortgage Loans 7. Superannuation 8. Enterprise based loan

Who is Financially Excluded?

1. Poor 2. Socially under-privileged privileged 3. Disabled 4. Old as well as children 5. Women 6. Uneducated 7. Ethnic Minorities 8. Un-employed

India has 91 million households that fit the profile of future customers. A typical household in this segment in a large metropolitan area earns between Rs (rupees) 60,000 and Rs 180,000 annually. In smaller towns and villages, where the cost of living is lower, the income floor falls to Rs 45,000. Indian government has made some headway in alleviating financial exclusion, mainly by requiring the formal sector to provide services to low-income households or to certain sectors of the economy.

Causes of financial exclusion

1. LACK OF FINANCIAL AWARENESS: The lack of financial awareness about the benefits of the banking and also illiteracy act as stumbling blocks to financial inclusion.

16 The lack of financial awareness maybe the single most risk in financial inclusion as those who are newly included in the financial sector have to maintained within the formal financial sector. 2. EASY ACCESS TO ALTERNATIVE CREDIT: For a good amount of low income people, the alternative credit provided by the money lenders and pawn shop owners are far more attractive and hassle free compared to getting a loan from a commercial bank. Some of the poor that do not have property find it impossible to get credit without the collateral. 3. LOW INCOME: Most of the poor are low wage earners, for them opening an account and withdrawing money is seemingly unviable. Most of the poor do not have high spending that would require borrowing of credit from a formal agency like banks. They would rather keep their daily income at their homes rather than in a bank.

Income and Exclusion are Closely Linked

Source BCG Survey, 2007

17 4. LACK OF UNDERSTANDING OF PROPERTY RIGHTS: The concept of property rights are still not clearly understood in most parts of India. In most of the developing nations, the poor and the weaker sections of the society have little or no knowledge of property rights since most are uneducated. 5. LACK OF INTEREST FROM COMMERCIAL BANKS: There is a lot of criticism on the commercial banks because of their inherent tendency to think that poor people and not worthy of being banked on. Banks are in business to make profit and would like to only indulge in activities that give them profit. Unless banks see any incentive in banking with the weaker sections of the society, they would not be willing to do so.

Magnitude and Spread of Financial Exclusion

Reserve Bank of India data shows that as many as 139 districts suffer from massive financial exclusion, with the adult population per branch in these districts being above 20,000 and only 3 percent with borrowings from banks. On the assumption that each adult has only one bank account (which does not hold good in practice, so that actual coverage is likely to be worse) on an all India basis, 59 percent of the adult population in the country has bank accounts. 41 percent of the population is, therefore, unbanked. In rural areas the coverage is 39 percent against 60 percent in urban areas. The unbanked population is higher in the poorer regions of the country, and is the worst in the North-Eastern and Eastern regions. Credit markets have much more exclusion, as the number of loan accounts constituted only 14 per cent of adult population. In rural areas, the coverage is 9.5 per cent against 14 per cent in urban areas. Regional differences are significant

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with the credit coverage at 25 per cent for the Southern region and as low as 7, 8 and 9 per cent respectively in North Eastern, Eastern and Central regions. The extent of exclusion from credit markets can be observed from a different perspective as well. Out of 203 million households in the country, 147 million are in rural areas 89 million are farmer households. 51.4 per cent of farm households have no access to formal or informal sources of credit while 73 per cent have no access to formal sources of credit. As per NSS only 37 percent of the urban selfemployed have access to credit.

Financial Inclusion Banking the Unbanked

Financial inclusion is aimed at providing banking / financial services to all people in a fair, transparent and equitable manner at affordable cost. Households with low income often lack access to bank account and have to spend time and money for multiple visits to avail the banking services, be it opening a savings bank account or availing a loan. These families find it more difficult to save and to plan financially for the future. Thus, the unbanked public is largely cut off from the Banking products/services. It is the endeavor of the Bank to provide the basic banking facility of SB a/cs to all the unbanked. Towards this initiative the Banks has taken the lead and evolved two different models i.e. Rural and Urban Financial Inclusion Model to take care of the requirement of the people in rural and urban areas which differ from each other. Financial Inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged and low income groups. Unrestrained access to

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public goods and services is the sine qua non of an open and efficient society. As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of the public policy.
---Shri V.Leeladhar, Former Deputy Governor RBI (Dec, 2005)

Scope of Financial Inclusion

In India the focus of the financial inclusion at present is confined to ensuring a bare minimum access to a savings bank account without frills, to all. Internationally, the financial exclusion has been viewed in a much wider perspective. Having a current account / savings account on its own, is not regarded as an accurate indicator of financial inclusion. There could be multiple levels of financial inclusion and exclusion. At one extreme, it is possible to identify the super-included, i.e., those customers who are actively and persistently courted by the financial services industry, and who have at their disposal a wide range of financial services and products. At the other extreme, we may have the financially excluded, who are denied access to even the most basic of financial products. In between are those who use the banking services only for deposits and withdrawals of money. But these persons may have only restricted access to the financial system, and may not enjoy the flexibility of access offered to more affluent customers.

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Middle-Income Households will lead Indias Population Growth

From the above report by NCAER it is outlined that there will be increased number of middle class income groups in the total population by 2010 i.e. the figure currently is 70 millions (approx) which will be extended to 80 million by 2010. So, it would be profitable for bank to target such a mass group.

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Microfinance and Financial Inclusion

Financial Inclusion is a paradigm shift from microfinance to inclusive finance. Financial Inclusion acquires a broader definition since it is not limited to microfinance institutions. Financial Inclusion aims at bringing into the mainstream those people who hadnt had the chance of being financially included while at the same time looking at the comparative advantages for the banks. Although the terms Micro-finance and Financial Inclusion are closely inter-related, there is some difference between the two. Till now, through microfinance we have only allowed the people access to micro-financial services provided mostly by small agencies. Financial Inclusion aims at bringing the un-banked citizens into the financial mainstream. With initiatives the previously excluded section of the population could have access to financial facilities. They should be made aware of the advantages of remaining with a formal financial agency. The Financial Inclusion is therefore a step by step process involving the people as well as the respective agencies. Financial inclusion takes the process of micro-finance a step further by not just treating them as different or poor but by considering them as credit-worthy citizens and bankable consumers. Financial Inclusion aims to bring into contact the poorest of the poor with the big banks who have so far been hesitant to deal with them. The valuable experience of microfinance has shown that the doubts of poor consumers defaulting payment of credit might not be valid after all. Microfinance Institutions have been a big success because they have been able to come up with

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financial products that the population in the lower economic strata wants. However there still remains to be seen how the transaction costs on the large number of small credit can be lowered.

RBI and Financial Inclusion

As the central bank of the country, the Reserve bank of India has taken steps to ensure financial inclusion in the country. It has tried to make banking more attractive to citizens by allowing for easier transactions with banks. In 2004 RBI appointed an internal group to look into ways to improve Financial Inclusion in the country. It came out with a report in 2005 (Khan Committee) and subsequently RBI issued a circular in 2006 allowing the use of intermediaries for providing banking and financial services. Through such policies the RBI has tried to improve Financial Inclusion. Financial Inclusion offers immense potential not only for banks but for other businesses. Through an integrated approach the businesses, the NGOs, the government agencies as well as the banks can be partners in growth. RBI has realized that a push is needed to kick start the financial inclusion process. Some of the steps taken by RBI include the directive to banks to offer No-frills account, easier KYC norms, better customer services, promoting the use of IT and intermediaries, and asking SLBCs and UTLBCs to start a campaign to promote financial inclusion on a pilot basis. So far the campaign for 100% financial inclusion has been said to be a success with many states now reaching near-total financial inclusion.

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International Scenario
An interesting feature which emerges from the international practice is that the more developed the society is, the greater the thrust on empowerment of the common person and low income groups. It may be worthwhile to have a look at the international experience in tackling the problem of financial exclusion so that we can learn from the international experience.

India Has the Second-Highest Number of Financially Excluded Households in the World, After China

The Financial Inclusion Task Force in UK has identified three priority areas for the purpose of financial inclusion, viz., access to banking, access to affordable credit and access to free face-to-face money advice. UK has established a Financial Inclusion Fund to promote financial inclusion and assigned responsibility to banks and credit unions in removing financial exclusion. Basic

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bank no frills accounts have been introduced. An enhanced legislative environment for credit unions has been established, accompanied by tighter regulations to ensure greater protection for investors. A Post Office Card Account (POCA) has been created for those who are unable or unwilling to access a basic bank account. The concept of a Savings Gateway has been piloted. This offers those on low-income employments 1 from the state for every 1 they invest, up to a maximum of 25 per month. In addition the Community Finance Learning Initiatives (CFLIs) were also introduced with a view to promoting basic financial literacy among housing association tenants. A civil rights law, namely Community Reinvestment Act (CRA) in the United States prohibits discrimination by banks against low and moderate income neighborhoods. The CRA imposes an affirmative and continuing obligation on banks to serve the needs for credit and banking services of all the communities in which they are chartered. In fact, numerous studies conducted by Federal Reserve and Harvard University demonstrated that CRA lending is a win-win proposition and profitable to banks. In this context, it is also interesting to know the other initiative taken by a state in the United States. Apart from the CRA experiment, armed with the sanction of Banking Law, the State of New York Banking Department, with the objective of making available the low cost banking services to consumers, made mandatory that each banking institution shall offer basic banking account and in case of credit unions the basic share draft account, which is in the nature of low cost account with minimum facilities.

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STRUCURE OF BANKING IN INDIA

RRBS: Regional Rural Banks NABARD: National Bank for Agriculture and Rural Development

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(1.5.A) Central Bank

A central bank is a special institution which controls and regulates the entire banking structure of country. It also strives to maintain monetary stability of the country. It also strives to maintain monetary stability of the country. Central bank is also the apex bank of country. Since it functions in the best interest of the country and making profits is unknown to it, it is entrusted the right to issue currency notes. No other bank is allowed this right. It operates in close co-operation with the government for implanting economic policies, thereby promoting economic development. The central Bank of our country is Reserve Bank of India. Its establishment was made by the Reserve Bank of India act in 1935. In India, any person cannot do the business of banking without getting the license of Reserve Bank.

THE RESERVE BANK OF INDIA (RBI)

The Reserve Bank of India (RBI, Hindi: Bhartiya reserve Bank) is the central bank of India, was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 [1]. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. Though originally privately owned, the RBI has been fully owned by the Government of India since nationalization in 1949.

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Dr. Duvvuri Subbarao who succeeded Yaga Venugopal Reddy on September 2, 2008 is the current Governor of RBI. The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years. The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage. It has 22 regional offices, most of them in state capitals

FOUNDATION OF RBI:
Manages currency notes of all denominators except one rupee note As a banker of Government, state Government, Commercial and cooperative banks. Monetary regulations Regulations on exchange value of rupee. As a represents Govt. of India in International Monetary India in International Monetary Fund (IMF)

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FUNCTION OF RESERVE BANK OF INDIA:

Rule currency notes greater than one rupee. As a Bank of Government, state Government, commercial and cooperative banks. Regulation Monetary Regulations on exchange value of rupee. As a delegation of India in IMF (International monetary Federation)

(1.5.B) Commercial Banks

Commercial banks accept money from the public and arrange for their productive use. They also carry out carry out lending of money to meet the needs of traders and business houses. The accepted deposits are always repayable on demand or on short notice. Commercial banks provide only short-term loans to trade and industry. Besides this, they also provide working capital finance, and also provide a number of subsidiary services.

Commercial Banks are banking institutions that accept deposits and grant short-term loans and advances to their customers. In addition to giving short-term loans, commercial banks also give medium-term and long-term loan to business enterprises.

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Now-a-days some of the commercial banks are also providing housing loan on a long-term basis to individuals. There are also many other functions of commercial banks, which are discussed later in this lesson.

Types of Commercial banks:

Commercial banks are of three types Public sector banks, Private sector banks Foreign banks.

Public Sector Banks: These are banks where majority stake is held by the
Government of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Boroda and Dena Bank, etc.

Private Sectors Banks: In case of private sector banks majority of share

capital of the bank is held by private individuals. These banks are registered as companies with limited liability. For example: The Jammu and Kashmir Bank Ltd., Bank of Rajasthan Ltd., Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd., Global Trust Bank, Vysya Bank, etc.

Foreign Banks: These banks are registered and have their headquarters in a
foreign country but operate their branches in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking

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Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank, Grindlays Bank, etc. The number of foreign banks operating in our country has increased since the financial sector reforms of 1991.

STATE BANK OF INDIA (SBI)

In 1955, the imperial bank of India was nationalized and renamed as State Bank of India. Today it is largest bank of India. As a commercial bank and views pointing to branches, it is worlds largest bank with 10,836 Branches.

Subsidiary Bank of SBI

State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Indore State Bank of Pateyala State Bank Of Saurashtra State Bank of Travancore

NATIONALIZED BANKS:

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Following 14 commercial banks were nationalized on the 19th July, 1969. Bank of India Canara Bank Central Bank of India Corporation bank Indian Bank Indian overseas bank Syndicate Bank UCO Bank
Allahabad Bank Bank of Baroda Bank of Maharashtra Dena Bank Oriental Bank of Commerce Punjab & Sind Bank Union Bank of India United Bank of India Vijaya Bank IDBI Bank

Other six banks were nationalized on the 10th April, 1980. State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Mysore

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State Bank of Indore State Bank of Pateyala State Bank Of Saurashtra State Bank of Travancore In October 1993, the New Bank of Indian and Punjab National Bank were merged.

PRIVATE SECTOR BANKS:

HDFC Bank ICICI Bank Federal Bank ING Vysya Bank Axis Bank (formerly UTI Bank) Yes Bank
Bank of Rajasthan Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab City Union Bank Development Credit Bank Dhanalakshmi Bank Ganesh Bank of Kurundwad IndusInd Bank Jammu & Kashmir Bank

33 Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Nainital Bank Ratnakar Bank SBI Commercial and International Bank South Indian Bank Amazing Mercantile Bank Punjab National Bank Rupee Bank Saraswat Bank Tamilnad Mercantile Bank Thane Janata Sahakari Bank Bassein Catholic Bank

General Banks Function

Principal Function: Accounting Deposits Granting Advances Ancillary Function: Discounting of Bills & Cheques. Collection of Bills & Cheques.

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Remittance. Safe Custody of Articles. Safe Deposit Lockers. Conducting: Safe Deposit lockers

Issue of : Letters of credit. Guarantees.

Function of the Commercial Bank

Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. So the main function of the commercial bank is as follow:

The functions of commercial banks are of two types. (A) Primary functions; and (B) Secondary functions. Let us discuss details about these functions.

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PRIMARY FUNCTIONS
The primary functions of a commercial bank include: a) Accepting deposits; and b) Granting loans and advances. Accepting deposits The most important activity of a commercial bank is to mobilize deposits from the public. People who have surplus income and savings find it convenient to deposit the amounts with banks. Depending upon the nature of deposits, funds deposited with bank also earn interest. Thus, deposits with the bank grow along with the interest earned. If the rate of interest is higher, public are motivated to deposit more funds with the bank. There is also safety of funds deposited with the bank. Grant of loans and advances The second important function of a commercial bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks on various deposit accounts. The rate of interest charged on loans and advances varies according to the purpose and period of loan and also the mode of repayment.

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i) Loans A loan is granted for a specific time period. Generally commercial banks provide short-term loans. But term loans, i.e., loans for more than a year may also be granted. The borrower may be given the entire amount in lump sum or in instalments. Loans are generally granted against the security of certain assets. A loan is normally repaid in instalments. However, it may also be repaid in lump sum. ii) Advances An advance is a credit facility provided by the bank to its customers. It differs from loan in the sense that loans may be granted for longer period, but advances are normally granted for a short period of time. Further the purpose of granting advances is to meet the day-to-day requirements of business. The rate of interest charged on advances varies from bank to bank. Interest is charged only on the amount withdrawn and not on the sanctioned amount. Types of Advances Banks grant short-term financial assistance by way of cash credit, overdraft and bill discounting. Let us learn about these. a) Cash Credit

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Cash credit is an arrangement whereby the bank allows the borrower to draw amount up to a specified limit. The amount is credited to the account of the customer. The customer can withdraw this amount as and when he requires. Interest is charged on the amount actually withdrawn. Cash Credit is granted as per terms and conditions agreed with the customers. b) Overdraft Overdraft is also a credit facility granted by bank. A customer who has a current account with the bank is allowed to withdraw more than the amount of credit balance in his account. It is a temporary arrangement. Overdraft facility with a specified limit may be allowed either on the security of assets, or on personal security, or both. c) Discounting of Bills Banks provide short-term finance by discounting bills, that is, making payment of the amount before the due date of the bills after deducting a certain rate of discount. The party gets the funds without waiting for the date of maturity of the bills. In case any bill is dishonoured on the due date, the bank can recover the amount from the customer.

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SECONDARY FUNCTION
The subsidiary functions of a commercial bank constitute the agency services and the miscellaneous services.

Agency Services:One of the important functions of a banker is the services performed by him as an agent. The services as an agent are as under: Collection of Interest and Dividend: The bank collects interest or dividend as and when earned by the customers from securities. A very small charge is levied for the collection on behalf of the customer. Collection and payment: Commercial banks also collect and pay cheques, bills and promissory notes. Executing standing orders: A customer may leave standing instructions to a banker to make payments to certain individuals or institutions against his account. The banker usually charges small fees for such services. Buying and selling of Securities: A commercial baker also undertakes to purchase or sell stocks or shares on behalf of his customers. Remittance of Funds: It is convenient for banks to transfer funds as they have a network of branches all over the country. The remittance of funds is done by mail transfer, telegraphic transfer, and bank draft.

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Miscellaneous Services: Among the various function when they are many general utility personal

or miscellaneous services rendered to the customers. The important ones are as under: Safety of Customers valuable: This is undertaken when they are kept in specially constructed rooms in the bank premises. Here the bank acts as a bailee of the goods as it is entrusted to its safe keeping. Usually there are two methods of ensuring safety of customers valuable. One is the acceptance of valuables ( e.g. documents of title, jeweler etc.) for safe custody, and the other is the provision of safe deposit vault (Lockers) on hire to customers. Foreign Exchange: Commercial banks also deal in foreign exchange transactions. They assist in foreign trade by discounting foreign bills of exchange and sometime even have to arrange transport, insurance and warehousing of goods. Letters of Credit: A commercial bank can issue personal and commercial letters of credit, enabling the customer to profit by the superior credit. Bankers as Referee: Commercial bankers certify the respectability and financial standing of their customers. This service benefits businessmen who deal with the banks customers. Underwriting: - Banks often act as underwriters to local and municipal authorities or other public bodies. Banks also underwrite for companies, corporations, and underwrite issues of Govt. loans, raised by municipal

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authorities, and industrial securities. Information & Statistics: - Several big banks have started the collection of information related to trade and business and provide the same to its customers. Some banks even publish monthly reviews containing financial and economic information.

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PNB Profile

Punjab National Bank

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present.

A professionally managed bank with a successful track record of over 110 years. Largest branch network in India - 4668 Offices including 432 Extension Counters spread throughout the country. Strategic business area covers the large Indo-Gangetic belt and the metropolitan centers. Ranked as 248th biggest bank in the world by Bankers Almanac, London. Strong correspondent banking relationships with more than 217 international banks of the world. More than 50 renowned international banks maintain their Rupee Accounts with PNB. Well equipped dealing rooms; 20 different foreign currency accounts are maintained at major centers all over the globe.

With its presence virtually in all the important centers of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade

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and international banking. Among the clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. The large presence and vast resource base have helped the Bank to build strong links with trade and industry.

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Performance Comparison over the years

Punjab National Bank (Performance Chart) (Amount in Rs) Crores)
All Banks Average

During the FY 2008-09, the bank achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst nationalized banks. Bank has a strong capital base with capital adequacy ratio at 14.03% as on March09. As on March09, the Bank has the Gross and Net NPA ratio of 1.77% and 0.17% respectively. During the FY 2008-09, its ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was also higher than the respective national goals of 40% & 18%.

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PNBs Contribution to Financial Inclusion

PNB endeavors to give a major thrust to financial inclusion and hoped to enhance its customer base to 10 crore by 2010. Bank is committed to make its services easily accessible to common man at national level and more particularly in the Indo-Gangetic belt, where bank has dominant presence. PNB is celebrating 2009 as "Year of Financial Inclusion'. PNB has already achieved 100% financial inclusion in more than 11000 villages, covering 198 identified districts. Under financial inclusion mission Bank plans to cover 30000 villages by 2010 by making use of Business Facilitators and Business Correspondents. By engaging Technological Solution Provider, FINO, Bank is issuing Biometric enabled Multi-Application Smart Cards to people. These Smart Cards are unique full proof IDs for the customers. This card contains customer's demographic data, relationships and fingerprint. This card allows customer identification without any requirement for a PIN/password, as in traditional channel delivery system, for operation of accounts. This technology also ensures that that there will be no duplicate identity created for the same customer. PNB General Manager (kanpurCircle) R K dubey said the Bank has very strong foothold in the nationals capitals withs as customers bases of 35s lakh. To give financial assistance to the urban poor, the bank has recently opened over 67,000

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'No Frill Accounts' under its financialsinclusionsinitiativesatsvariousslocationssin kanpur

RATIONALE OF THE STUDY

The following Questions were asked to respondents in our survey. The occupation of the respondent, educational qualification, the source of income for the family and whether the respondent had an account, if so the type of the bank. About the awareness of new measures for financial inclusion like no-frills account and relaxation of KYC norms for accounts. The reason for not opening the account and if aware about measures for Financial Inclusion, the reason for not opening an account. The spending patterns of the respondents and what constitutes the maximum expenditure over a particular period of time. The credit requirements and whether they were interested in availing credit from banks and for what particular reason. The use of financial services and instruments and also the frequency of them going to banks to measure financial awareness. Impact of student account opening and Financial Inclusion campaign of P.N.B.

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OBJECTIVE OF THE STUDY

Every project is based on a theme or has some specific objectives which are given more importance. The objective of my project is to know the level of Financial Inclusion & the impact of initiatives taken by the bank in of Financial Exclusion. However, this broad objective is defined more clearly as under: To know the measures and initiatives taken by PNB to help SHG and financially challenged people under Financial Inclusion project. To know the level of Financial Exclusion and the progress that has been achieved by the 100% financial inclusion campaign. To measure the reach ability & impact of student a/cs opening campaign in the nearby areas of Kanpur.

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HYPOTHESIS
To accomplish our objective we made a null hypothesis that there is no significantdifference among the promotion activities of three generation banks. So Ho: No difference in promotion activities of the three generation banks. H1: There is difference in promotion activities of the three generation banks. To test our hypothesis we measured the average involvement of the three generation banks in promotion activities and then t-test to compare the sample mean. Besides this, we tried to find whether promotion activities in our banking industry have any influence over the deposit collection & amount of loan disbursement. To test this we formulated other two hypotheses. Those are Ho: There is no effect of promotion activities upon deposit collection H1: There is significant effect of promotion activities upon deposit collection. Ho: There is no effect of promotion activities upon the loan amount of banks.H1: There is significant effect of promotion activities upon the loan amount of banks. To test these hypotheses we run a regression of the different promotion activities of thenine sample banks and their deposit and loan amount. In this aspect we have taken thedeposit and loan amount of sample banks over last five years (i.e. from 2004-2008). Thenwe made the average deposit and loan amount over these five years. I have taken the response of 370 people. 210 persons had given positive preference for PNB

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Error: Reference source not found = 210 Error: Reference source not found = 370 Error: Reference source not found = 10 Sample size > 30
X

Z=

Z = 210-370/10

= -16 Level of significance = 5% i.e.1.96

-1.96

+1.96

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Two tailed test -16 falls in rejection region so Ho is rejected H0 is Rejected and H1 is accepted then we can say that People will prefer investment in Reliance Mutual Fund as Compared to mutual fund in Nanded

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RESEARCH METHODOLOGY
Research Design There are three types of research Exploratory Research Descriptive Research Casual Research

We have used Descriptive research design The basis of my research was primary data which I collected from 50 peoples i.e. sample size in the service centre through Questionnaire. Sources of Data Collection The relevant data was collected from both primary sources and secondary sources. The starting point of my information gathering has been the secondary sources such as internet, books, journals and so on . First, I made a study of the training objectives of the insurance companies to train its personnel through secondary sources such as internet, insurance magazines, and journals and so on. Then I gathered information about the training programs conducted for advisors by Commercial Banks by interacting with some of the advisors already working for the company.

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SAMPLING
When fields study are undertaken in practical life, consideration of time and cost almost invariably lead to a selection of respondents, i.e., selection of only few items. The respondents selected should be representative of the total population as possible in order to produce a miniature cross section. The selected respondents constitute a Sample and the selection procedure is called Sampling Technique. The survey so conducted is known as Sample Survey. It should represent not only the total population characteristics but also the various sub classes of the population. The validity of findings would also depend upon how people willingly and correctly report of their opinion, attitude, preferences, and favorableness.

Different Types Of Sample Design There are different types of sample designs based on two factors, i.e., the representation basis and the element selection technique. On representation basis, the sample may be probability sampling or it may be non-probability sampling. On element selection basis, the sample may be either unrestricted selection technique or restricted selection technique. Thus, the sample designs are basically of two types, i.e., non-probability sampling and probability sampling. Steps in Sampling Design While developing a sampling design, the researcher must pay attention to the following points:

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1. Type of Universe - The first step in developing any sample design is to clearly define the set of objects, technically called the universe. The universe can be finite or infinite. In finite universe the number of items is certain, but in case of infinite universe the number of items is infinite, i.e., we cannot have any idea about the total number of items.

2. Sampling Unit A decision has to be taken concerning a sampling unit

before selecting sample, sampling unit may be geographical one such as state, district, village etc., or a construction unit such as house, flat, etc., or it may be a social unit such as family, club, school etc., or it may be an individual.

3. Source list It is also known as sampling frame from which sample is

to be drawn. It contains the names of all items of the universe (in case of finite universe only). If source list is not available researcher has to prepare it. It is extremely important for source list to be representative of the population as possible.

4. Size of Sample This refers to the number of items to be selected from

the universe to constitute a sample. The size of sample should neither be extremely large, nor too small. It should be optimum. An optimum sample is one, which fulfills the requirements of efficiency, representative ness, reliability and flexibility.

5. Parameters of Interest In determining the sample design, one must

consider the question of the specific population parameters, which are of interest. There may also be important sub groups in the population about

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whom we like to make estimates. All this has strong impact upon the sample design we would accept.

6. Budgetary Constraint Cost considerations, from practical point of

view, have a major impact upon decisions relating to not only the size of the sample but also to the type of sample.

7. Sampling Procedure Finally, the researcher must decide the type of

sample he will use i.e., he must decide about the technique to be used in selecting the items for the sample. There are several sample designs. Obviously, he must select that design which, for given sample size and for a given cost, has smaller sampling errors.

2.2 Limitations The survey was limited to three areas & therefore cannot give a complete picture of the level of financial inclusion of the city.

The study is concentrated on the poor people of the city, since the poor are the majority who make up the financially excluded.

The study is also limited by the number of individuals.

2.4 Sampling Procedure A sample of 25 advisors is selected for the study, using simple random sampling procedure. The focus of study was on advisors who were trained in the recent

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past. So, the sample was drawn from among the advisors who were working for Commercial Banks since last 1 2 months.

2.5 Primary Data Collection Data was collected through an interview schedule, consisting of both open ended and closed ended questions. The schedule covered parameters like training methodology, trainer feedback, overall effectiveness of training program, relevance of training program etc. Most of the interviews were conducted over telephones since these advisors need not report to any branch regularly. Most of the times, they were found to be in the field searching for prospective customers. The approximate time taken for each interview was 10 minutes

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Findings & Analysis

The survey is done as per the given objective, to find out the level of financial inclusion amongst people, and the factors which influence the mind set of people while taking financial services. So the outcome of survey and its interpretation is done through Excel tools as given below.

---Finding is comprised of three parts:

---Question. ---Outcome from survey i.e. data interpretation. ---Analysis of outcome.

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1. Occupational Distribution
The survey found that a major share of the respondents or the earning members of the family were either Manual Laborers or self employed. The respondents belong to the working age from 30 to 55 and the average family size is around five i.e. total sample sizes 750. 90 people were unemployed and 210 were self-employed.

Analysis
It was noticed here that Government employees included mainly those who are working in the Municipal Corporation and the Housing Board that built the colony. Self employed are mainly working as auto rickshaw drivers, fruit & vegetable vendors and owning small businesses.

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2. Educational Qualification
Following were the responses from respondents when asked about Educational Qualification:-

Analysis
Most of people were either illiterate or have only done primary schooling. And 50% people have done either S.S.C or H.S.C. And it was not surprising to know that only a small segment i.e. 9% of total sample size were graduate or above. It was found that less the educational qualification of the respondents lesser they were aware about financial inclusion.

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3. Level of Financial Inclusion

The survey has found that a greater share of the households do not have access to banking facility. 47% of the households in the areas had access to banking facilities and around 398 households had no account. It should be noted here that some of the respondents said that they had stopped using the accounts.

Level of Financial Inclusion

Analysis
It can be interpreted from the above chart that most of the respondents do not have access to financial services offered by banks so it would be beneficial for society if bank cater to these segments. Only one third of manual labors have bank accounts. The reasons for this maybe due to the fact that they get daily wages and spend most of what they earn on household items. There is a need to make them aware of the uses of banking.

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Out of 12% unemployed, 10% dont have bank a/cs but as survey shows the majority of people are employed hence there is good chance of these people getting employment in future also here some students are present.

Inclusion of this segment will increase the customer base of bank which can lead to profitability in long-run.

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4. Major Reasons cited for Financial Exclusion.

Following were the responses from respondents when asked about reasons for Financial Exclusion:-

Analysis
The results were close to each other. All three reasons emerged as the major problem for financial inclusion. It was quiet surprising to know that Easy access to alternate credit also carried a high weightage. On enquiring further about this reason we came to know that these people have access to easy credit form private money lenders and they do not like the slow & paper involving process of commercial banks.

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5. Distribution of Bank accounts

It is necessary as an indicator to find out the kind of banks in which the people bank in, but it is not directly related in the context of Financial Inclusion. An overwhelming 82% of the accounts were in public sector banks which were the Punjab National Bank, State Bank of India, Canra Bank. The Urban and Rural cooperative banks could cater to populations that are generally neglected by the commercial banks. Their position allows them to reach out to the people far easier.

82%

Distribution of bank account

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Analysis
The PSUs have a high % of customers because of the reason that a section of people are government or retired employees (who receive regular pensions), thus every one of them maintains account with PSU. The number of private banks having branches in urban areas is high, yet they have not had a major impact among the poor in the city. The account opening charges/ penalty/maintenance charges of most of private banks are quiet high therefore the people prefer Public Sector Banks.

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6. Credit Requirements and type

Most of respondents responded positively about their need for credit and the rest of them were in dilemma. The requirement of credit for housing was in demand more than any other types of credit. A small section of people are willing to have the credit facility for education purposes.

65% Credit

Need

Analysis
When asked about the credit requirements 35% of the households responded that they wouldnt want to have any long-term or short-term credit fearing that they might default. Only a small minority responded that banks would not give any credit to them. The highest demanded is for housing, which for many living in sub-

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standard housing looking for a house of their own is not an unexpected answer. The second highest preference was for self-employment credit facility, as some people are unemployed and desperately want credit for selfemployment and rests of them want the credit for betterment of their existing mode of earning.

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7. Amount & time period for Credit requirement

Most of people who require loan for period of 6 to 18 months fall in credit range b/w Rs 25000 to 65000. 25% people are from segment that need credit facilities for comparatively high period for the purpose of educational requirements & housing.

40%
35%

Amount
25%

Analysis
35% people require loans for automotive and self-employment purposes and the repayment is expected in short period of less than six months. Lying in medium range are people, who need credit for housing and family purpose and the requirement of credit was for a considerable amount of time.

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8. Awareness about measures of R.B.I

The survey has shown a dismal performance by banks in reaching out to the people and making them aware about the new initiatives taken for financial inclusion. It was found that only in 8 out of the total 150 households the people had any knowledge about the new measures of RBI.
95%

Awaren

Those who knew had some idea about no-frills account but not about the relaxation of the KYC norms. 5% people who responded positively were those people who were aware of PNB student account opening campaign and majority of people were thinking that this initiative is taken by school and not by bank.

5%

Analysis
The low awareness about the steps taken by RBI and the financial institutions shows that there is an urgent need to reach out to them and to spread the awareness about the initiatives It seems that merely displaying posters informing consumers about nofrills account will not by itself increase the awareness about the new measures.

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9. Reachability of student a/c opening campaign

Following were the results when we asked people about the reach ability of student a/c opening campaign: 92% people responded that this campaign has reached to their homes out of them majority of people were those whose children are studying in nearby schools. Respondents also say that this campaign has generated a lot of confidence in them for using banking services.

8%

92%

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Analysis
This proved to be a good decision for bank to go for this student account campaign for Financial Inclusion. So, from this survey we can interpret that this campaign has achieved 100% Financial Inclusion as far as opening of student bank account is concerned.

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10. Impact of Financial Inclusion campaign

As bank has taken so many measures to make this financial Inclusion Campaign successful, we asked about impact to know level of satisfaction among the people and level of success of this campaign. Following are the results:-

78%

Impact of Financial Inclusion campaign

10%

12%

Analysis
As it was very much expected, majority of respondent i.e. 78% responded yes when asked about positive impact of financial inclusion. A very small segment feels that this campaign is like any other ordinary campaign and it will not have any positive impact on their life or way of living. Few respondents were not aware of financial inclusion campaign so they could not give their judgment when asked about the importance of this campaign.

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Conclusion
Financial Inclusion has been a catch phrase for the past few years. Delivering financial services to all sections of the population will remain a challenge that banks around the world will face over the next few years. Increasing educational level means more financial inclusion; therefore a literate population must be created in order to create a meaningful financially included population. Not only should people have access to basic financial services but should also actively use them. A modern and a globalized economy cannot be successful unless it is inclusive. With enthusiasm and foresight this challenge would be overcome rather simply.

It may appear in the first instance that taking banking to the sections constituting the bottom of the pyramid, may not be profitable but it should always be remembered that even the relatively low margins on high volumes can be a very profitable proposition. The banks would have to evolve specific strategies to expand the outreach of their services in order to promote financial inclusion. Technology can be a very valuable tool in providing access to banking products in remote areas. Financial inclusion can emerge as commercial profitable business. Only the banks

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should be prepared to think outside the box!

Suggestions & Recommendations

It is becoming increasingly apparent that addressing financial exclusion will require a holistic approach on the part of the banks in creating awareness about financial products, education, and advice on money management, debt counseling, savings and affordable credit. The banks would have to evolve specific strategies to expand the outreach of their services in order to promote financial inclusion. 1. Strengthening financial literacy: With already 47% financial inclusion in the area, the rest 53% need to be brought into mainstream. This would require giving the occupants of the area a simple bank account and thereby become financially included. 2. Decentralized banking system: Banks should be given more freedom to deal in the manner in which they would want to deal with the public. Flexibility and independence are needed to make small banking viable. 3. Excluded segment specific products and services: The credit needs and amount of credit needed by the poor or the financially excluded differs from the middle class and the upper class needs hence require adoption of new strategies. Most of the self-employed and the daily wage earners find it cumbersome to go to banks and cash their money; therefore, the use of Business Correspondents (BC) could bring in such occupational groups who have little time for the conventional

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system of banking. It would require person-to-person interactions to make banking and the use of financial services a part of their lifestyle. 4. Need to adopt a professional approach: - There is a need for increasing professionalism among banks and related agencies. There is no doubt that these organizations have helped the poor tremendously but just as in the case of many co-operative banks, NGOs and PSUs, they remain prone to lack of professionalism and negligence. The commercial banks and other agencies can play their part by training individuals and organizations that help to reach out to the poor. 5. Private Public Collaboration: -Financial inclusion would become meaningless if the burden of it falls wholly on the government. The Corporate, the large commercial banks and NBFCs should be made aware of the advantages of Financial Inclusion and the business opportunities it offers to them. Private partnership will ensure that there would be financial products which are more in tune with the needs of the customers, big and small. The partnership of private financial institutions would ensure a healthy competition leading to on-time delivery of services at affordable rates. Small private banks can be encouraged to practice targeted banking aimed at delivering services to certain communities rather than the society as a whole. This would not only ensure a steady number of banking customers for the small banks but also a chance to do business in a market dominated by large commercial banks. By doing so, the chances of financial exclusion are reduced as small banks would try to bring in as much customers as possible.

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6. Retired bank employees as Business Correspondents: - looking at retired bank employees as Business correspondents for branchless banking can be a good option. Retired bank employees with their experience in banking are far more likely to be professional in their dealings and more accustomed to new methods of banking. They could provide an essential middle link between the banks and the thousands of customers that they intend to serve. 7. Separate department & highly trained employee: - There is need to have a dedicated department with highly trained employee to deal with this segment to achieve 100% financial inclusion.

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Bibliography
Websites
www.thehindu.com www.newyorktimes.com www.economictimes.com www.iob.in

Books Referred

The Next Billion Customers: A road map for expanding Financial Inclusion in India, Sinha J. and A. Subramanian Boston Consulting Group, 2007

Report of C. Rangarajan Committee on Financial Inclusion, 2008

3
4

Press Release of PNB for the Year ended 31st March 2009
http://www.skoch.in/SDF/html/national_study_on_speeding_fin.html

Draft Report of the Committee on Financial Sector Reforms (CFSR) , ch.3, Planning Commission, 2008

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QUESTIONNAIRE

1. Occupational Distribution Unemployed Manual Labour Government Employees Self Employed

2. Educational Qualification Upto 8th SSC HSC Graduation and above

3. Level of Financial Inclusion With A/C : Unemployed Government Self Employed Manual Labour

Without A/C :

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Unemployed Government Self Employed Manual Labour

4. Major Reasons cited for Financial Exclusion. Easy access to alternate credit Low Income Financial Awareness

5. Distribution of Bank accounts Public Sector Cooperative Private Sector

5. Credit Requirements and type Self employment Educational Housing Family Reasons Automotive

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6. Amount & time period for Credit requirement

Less than 6 months More than 18 months to 18 Months

7. Awareness about measures of R.B.I Yes No

9. Reachability of student a/c opening campaign Yes No

10. Impact of Financial Inclusion campaign Positive No Impact Can't Say