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Project Report

Citizens Urban Co-Op. Bnak

university School Of Management

Rayat Bahra University, Mohali

Submitted To: - Submitted By: -

Prof. Ankit pathak

BBA 5 sem (2016-2019)

Title of the project

“A Study of Banking And Bank as an Investment Destination”

Banking Procedure
Thanks to the almighty for showering his blessing on completion of my project. I want to thanks
all the employees of the Citizens Urban Co-operative Bank Ltd. (kurali) for their cooperation
in successfully completion my project works on C.U.C.B.

I am especially thankful to Mr. Yadvinder Bhatia (Manager) who is one of the busiest people
for giving me actual knowledge about the successful banking, detail knowledge of Deposits,
Loans and giving me time out of his precious schedule.

Ankit pathak




CHAPTER 4- Tpyes Of Co.Operative Bank 9-11




CHAPTER 7- Summary 45-46

 Recommendation & suggestion 47

 Concusion 48

 Bibliography 49-50


“A Co-operative bank, as its name indicates is an institution consisting of a number of

individuals who join together to pool their surplus savings for the purpose of eliminating the
profits of the bankers or money lenders with a view to distributing the same amongst the
depositors and borrowers.”

The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as a co-
operative registered as a co-operative bank in terms of the Act whose members –

1. are of similar occupation or profession or who are employed by a common employer or

who are employed within the same business district; or

2. have common membership in an association or organisation, including a business,

religious, social, co-operative, labour or educational group; or

3. have common membership in an association or organisation, including a business,

religious, social, co-operative, labour or educational group; or

4. Reside within the same defined community or geographical area.


Co-operative bank, in a nutshell, provides financial assistance to the people with small
means to protect them from the debt trap of the moneylenders. It is a part of vast and powerful
structure of co-operative institutions which are engaged in tasks of production, processing,
marketing, distribution, servicing and banking in India. A co-operative bank is a financial entity
which belongs to its members, who are at the same time the owners and the customers of their
bank. Co-operative banks are often created by persons belonging to the same local or
professional community or sharing a common interest. These banks generally provide their
members with a wide range of banking and financial services (loans, deposits, banking
accounts…). Co-operative banks differ from stockholder banks by their organization, their goals,
their Values and their governance.

The Co-operative Banking System in India is characterized by a relatively comprehensive

network to the grass root level. This sector mainly focuses on the local population and micro-
banking among middle and low income strata of the society. These banks operate mainly for the
benefit of rural areas, particularly the agricultural sector.


 The Objective of the study of Co-operative Banking is to know the origin of Co-operative
Banks in India.

 To know the role of Co-operative banks in India.

 To know the importance of Co-operative Banks in India.

 To know the types of Co-operative Banks.



The beginning co-operative banking in India dates back to about 1904, when official
efforts were made to create a new type of institution based on principles of co-operative
organization & management, which were considered to be suitable for solving the problems
peculiar to Indian conditions.

The philosophy of equality, equity and self help gave way to the thoughts of self
responsibility and self administration which resulted in giving birth of co-operative. The origin
on co-operative movement was one such event-arising out of a situation of crisis, exploitation
and sufferings.

Co-operative banks in India came into existence with the enactment of the Agricultural
Credit Co-operative Societies Act in 1904. Co-operative bank form an integral part of banking
system in India. Under the act of 1904, a number of co-operative credit societies were started.
Owing to the increasing demand of co-operative credit, anew act was passed in 1912, which was
provided for establishment of co-operative central banks by a union of primary credit societies
and individuals.

Co-operative Banks in India are registered under the Co-operative Societies Act. The
cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations
Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

 Establishments:

 Co-operative bank performs all the main banking functions of deposit mobilisation,

supply of credit and provision of remittance facilities.

 Co-operative Banks belong to the money market as well as to the capital market.

 Co-operative Banks provide limited banking products and are functionally specialists in

agriculture related products. However, co-operative banks now provide housing loans


 UCBs provide working capital loans and term loan as well.

 The chief functions of Co-operative banks are:

a. To attract deposit from non-agriculturist,

b. To use excess funds of some societies temporarily to make up for shortage in another,

c. To supervise and guide affiliated societies.

 The basic principles on which a Co-operative bank works are:

 A co-operative character of activities and trait of mutual aid

of credit granted.

 Catering for collective organizations and their members.

 Restriction on the number of individual votes.

As a result, during 2007-08, the Primary Cooperative Agriculture and Rural

Development Banks have again started lending for the Non-Farm Sector including Jewel Loans.

 Aiming at high rates on deposits and low rates on lending.

 Limitation of dividends out of profits and bonus to depositors

and borrowers or grants to cultural or co-operative endeavour.

These banks are constituted of voluntary association, self-help and mutual aid, one
share one vote and non-discrimination and equality of members. The co-operative banks are the
organizations of and for the people.



Co-operative Banks are much more important in India than anywhere else in the world.
The distinctive character of this bank is service at a lower cost and service without exploitation.
It has gained its importance by the role assigned to them, the expectations they are supposed to
fulfill, their number, and the number of offices they operate. Co-operative banks role in rural
financing continues to be important day by day, and their business in the urban areas also has
increased phenomenally in recent years mainly due to the sharp increase in the number of
primary co-operative banks. In rural areas, as far as the agricultural and related activities are
concerned, the supply of credit was inadequate, and money lenders would exploit the poor
people in rural areas providing them loans at higher rates. So, Co-operative banks mobilize
deposits and purvey agricultural and rural credit with a wider outreach and provide institutional
credit to the farmers. Co-operative bank have also been an important instrument for various
development schemes, particularly subsidy-based programmes for poor.

The Co-operative banks in rural areas mainly finance agricultural based activities like:

 Farming
 Cattle
 Milk
 Hatchery
 Personal finance

The Co-operative banks in urban areas finance in activities like:

 Self-employment
 Industries
 Small scale units
 Home finance
 Consumer finance
 Personal finance

Some of the forward looking Co-operative banks have developed sufficient core
competencies to such an extent that they are able to challenge state and private sector banks.

The exponential growth of Co-operative banks is attributed mainly to their much better
contacts with the local people, personal interaction with customers, and their ability to catch the
nerve of the local clientele. The total deposits and lendings of Co-operative banks are much more
than the Old Private Sector Banks and the New Private Sector Banks.


Co-operative bank forms an integral part of banking system in India. This bank operates
mainly for the benefit of rural area, particularly the agricultural sector. Co-operative bank
mobilize deposits and supply agricultural and rural credit with the wider outreach. They are the
main source for the institutional credit to farmers. They are chiefly responsible for breaking the
monopoly of moneylenders in providing credit to agriculturists. Co-operative bank has also been
an important instrument for various development schemes, particularly subsidy-based
programmes for the poor. Co-operative banks operate for non-agricultural sector also but their
role is small.

Though much smaller as compared to scheduled commercial banks, co-operative banks

constitute an important segment of the Indian banking system. They have extensive branch
network and reach out to people in remote areas. They have traditionally played an important
role in creating banking habits among the lower and middle income groups and in strengthening
the rural credit delivery system.


1.Co-operative Banks are organized and managed on the principal of co-operation, self-help, and
mutual help. They function with the rule of "one member, one vote". function on "no profit, no
loss" basis. Co-operative banks, as a principle, do not pursue the goal of profit maximization.

2. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of
credit and provision of remittance facilities.

3. Co-operative Banks provide limited banking products and are functionally specialists in
agriculture related products. However, co-operative banks now
provide housing loans also.

4. Co-operative banks are perhaps the first government sponsored, government-supported, and
government-subsidised financial agency in India. They get financial and other help from the
Reserve Bank of India, NABARD, central government and state governments. They constitute
the "most favoured" banking sector with risk of nationalisation. For commercial banks, the
Reserve Bank of India is lender of last resort, but co-operative banks it is the lender of first resort
which provides financial resources in the form of contribution to the initial capital (through state
government), working capital, refinance.

5. Co-operative Banks belong to the money market as well as to the capital market. Primary
agricultural credit societies provide short term and medium
term loans.

6. Co-operative banks are financial intermediaries only partially.

The sources of their funds (resources) are:
(a) Central and state government,
(b) The Reserve Bank of India and NABARD,
(c) Other co-operative institutions,
(d) Ownership funds and,
(e) Deposits or debenture issues.

7. Some co-operative bank are scheduled banks, while others are non-scheduled banks. Co-
operative Banks are subject to CRR and liquidity requirements as other scheduled and non-
scheduled banks are. However, their requirements are less than commercial banks.

8. As said earlier, co-operative banks accept current, saving, and fixed or time deposits from
individuals and institutions including banks.

9. In the recent past, the RBI has introduced changes in interest rates of co-operative banks also,
along with changes in interest rates of commercial banks. The interest rates structure of co-
operative banks is quite complex. The rates charged by them depend upon the type of bank, the
type of loans,
and vary from state to state.

10. Since 1966 the lending and deposit rate of commercial banks have been directly regulated by
the Reserve Bank of India. Although the Reserve Bank of India had power to regulate the rate
co-operative bank but this have been exercised only after 1979 in respect of non-agricultural
advances they were free to charge any rates at their discretion. Although the main aim of the co-
operative bank is to provide cheaper credit to their members and not to maximize profits, they
may access the money market to improve their income so as to remain viable.




The Co-operative banking structure in India comprises of:

1. Urban Co-operative Banks

2. Rural Co-operatives

Some co-operative banks are scheduled banks, while others are non-scheduled banks. For
instance, State Co-operative banks and some Urban Co-operative banks are scheduled banks but
other co-operative banks are non-scheduled banks.

Scheduled banks are those banks which have been included in the second schedule of the
Reserve bank of India act of 1934.
The banks included in this schedule list should fulfill two conditions.

1. The paid capital and collected funds of bank should not be less than Rs. 5 lac.
2.Any activity of the bank will not adversely affect the interests of depositors.

Every Scheduled bank enjoys the following facilities.

1. Such bank becomes eligible for debts/loans on bank rate from the RBI
2. Such bank automatically acquire the membership of clearing house.
1. Urban Co-operative Banks:

Urban Co-operative Banks is also referred as Primary Co-operative banks by the Reserve
Bank of India. Among the non-agricultural credit societies urban co-operative banks occupy an
important place. This bank is started in India with the object of catering to the banking and credit
requirements of the urban middle classes.

The RBI defines Urban Co-operative banks as “small sized co-operatively organized
banking units which operate in metropolitan, urban and semi-urban centers to cater mainly to the
needs of small borrowers, viz. owners of small scale industrial units, retail traders, professional
and salaries classes.”

Urban Co-operative banks mobilize savings from the middle and lower income groups
and purvey credit to small borrowers, including weaker sections of the society. These banks
organize on a limited liability basis, generally extend their area of operation over a town. The
main functions of these banks are to promote thrift by attracting deposits from members and non-
members and to advance loans to the members. It is registered under Co-operatives Societies Act
of the respective state Governments. Prior to 1966, Urban Co-operative banks were exclusively
under the purview of State Government. From March 1, 1966 certain provisions of Banking
Regulation Act have been made applicable to these banks. Consequently, the RBI became the
regulatory an supervisory authority of Urban Co-operative Banks for their related operations.
Managerial aspects of such banks continue to remain with State Governments under the
respective Co-operative Societies Act. These banks with multi-presence are regulated by the
Central Governments and registered under Multi-State Co-operative Societies Act. The RBI
extends refinance to Urban Co-operative Banks at bank ate against their advances to tiny and
cottage industrial units. These banks grants sizeable loans and advances under priority sector for
lending to small business enterprises, retail trade, road and water transport operators and
professional and self-employed persons. Urban Co-operative banks are mostly located in towns
and cities and cater to the credit requirement of the urban clientele.
The objectives and functions of the Urban Co-operative banks:

 Primarily, to raise funds for lending money to its members.

 To attract deposits from members as well as non-members.

 To encourage thrift, self-help ad mutual aid among members.

 To draw, make, accept, discount, buy, sell, collect and deal in bills of exchange, drafts,
certificates and other securities.

 To provide safe-deposit vaults.

2. Rural Co-operatives:
Rural Cooperative Banking plays an important role in meeting the growing credit needs of rural
population of India. It provides institutional credit to the agricultural and rural sector. The inadequacy of
rural credit engaged the attention of RBI and Government throughout the 1950s and 1960s. One important
feature of providing agriculture credit in India has been the existence of a widespread network of rural
financial institutions. The rural credit structure consists of many types of financial institutions as large
scale branch expansion was undertaken to create a strong institution based in rural area. It has served as an
important instrument of credit delivery in rural and agricultural areas. The separate structure of rural Co-
operative sector for long-term and short-term loans has enabled these institutions to develop a specialized
institution for rural credit delivery. The volume of credit flowing through these institution has increased.


Cooperative institutions are intended for the welfare of the common man particularly the poor section
and have continues to play a vital role in the economic and social upliftment of the masses.The
Citizens Urban Cooperative Bank Ltd., Jalandhar was started in 1989 with a meagre capital, few
members and small operational limits of Jalandhar and Jalandhar Cantonment has become a leading
Urban Cooperative Bank in Northern India in a short span with total business mounting to about Rs.
330 crores and ten branches spread over in the area of operation of the bank. The Bank has brought a
revolution in Banking segment in its area of operation and is contributing to the needs of the localities
by providing attractive saving schemes and need based credit. The Bank is pioneer in introducing
cooperative movement for urbanities and providing them an opportunity to become a partner in
banking industry and avail triple benefits as an investor, depositor and borrower. The Bank is in
profit since its inception and is sharing the same with its members.
The Bank has made tremendous progress across the border since its inception. The membership of
the Bank has risen from 62 members to more than 7000 and paid up Capital from 10500.00 to
Rs.6.22crores. As on 31.12-2012, the Bank’s Own funds have grown to Rs. 28.26crores and
working capital to Rs. 272.95crores which is a manifestation of peoples confidence in the area of
operation of the Bank. The deposits of the Bank have grown to Rs. 229.44 crores and advances have
increased to
Rs. 120.30crores. All the branches of the Bank are in profits and for the financial year 2011-12, the
bank has shown a net profit of Rs. 129 lacs. The Bank is accredited with highest Audit Classification
‘A’ by Registrar Cooperative Societies, Punjab since its inception. The Bank has created a niche in
its area of operation. The Bank is providing credit for all viable economic activities in its area of
operation and catering to all segments of society. The Bank has taken initiative in promoting and
providing financial assistance to small scale industry, traders, shop keepers, unemployed youth and
Weaker Sections. The inbuilt feature is to deploy funds in its area of operation only, thus contribute
and serve as an ideal banking vehicle for economic development of these Districts. The Credit
Deposit (CD) ratio of the Bank is 53% as against 31% in its area of operation.
2.1.1 Addresses and Phone No's of the Branches

Branches Phone No.s

Main Branch, Opp. Circuit House, Jalandhar 222007, 224712, 235364

PartapBagh, Mandi Fenton Ganj, Jalandhar 241006, 223382

Banga Road, Nawanshahar 20837, 24467

Mithapur Road, Ravinder Nagar, Jalandhar 273170, 462170

KishanpuraChowk, Ind. Area Road, Jalandhar 294011, 297085

New SabziMandi, G.T. Road, Jalandhar 204056

G.T. Road Banga 261084, 263012

G.T. Road, Opp. GNA, Goraya 263763

Mandi Road, Nurmahal 242994

2.1.2 Management :-
The Citizens Urban Coop Bank Ltd., Jalandhar is a body corporate registered under the Punjab
Cooperative Societies Act 1961 and the rules framed there under. The Bank functions according to
the Bye-Laws framed by it and registered by the Registrar, Cooperative Societies, Punjab. The Bank
is governed under the democratically elected Board of Directors who are well reputed persons of the
area. The term of the board is 5 years. The Board has employed a Chief Executive Officer and further
staff to run day to day working of the Bank. The Board of Directors under the chairmanship of Sh.
K.K. Sharma have drawn up ambitious futuristic plans to compete with other banking institutions in
the region. The Board is well diversified and is being represented by various sections of the society
including bankers, educationists, cooperators, industrialists and traders. The Board is further assisted
by experienced professionals like Financial Consultants, Legal Advisors, internal and external
The Citizens Urban Co-op. Bank Ltd., Jalandhar which has emerged as a leading Urban Co-op.
Bank of Northern India was infact conceived in the late 80's and started functioning on
17/11/1989 after receiving final nod from the Reserve Bank of India with 62 members and share
capital of Rs. 10,500/- within operational limits of Jalandhar and Jalandhar Cantonment.
Since then, Citizens Bank has made a tremendous progress in all the Areas of Banking Sphere.
Only recently, In the financial year 1999-2000, Citizens Bank has set up a mile-stone in the
Urban Co-op. Banking by achieving a 100 crores Deposit target within 10 years of it's working,
thereby becoming the only Urban Co-operative Bank of Northern India who has met the 1st
condition of the R.B.I. for getting schedule Bank status. Marching ahead, Bank's Deposits now
stands at 117.42 crores which is in itself a manifestation of people's confidence residing in the
area of operation of the Bank. Citizens Bank which has nine Branches made consistent profit
gain right from it's inception and has also earned a net profit of Rs.3.64 crores during the last
financial year 2000-01. Bank has achieved this profit growth despite the fact that rate of interest
was reduced from 0.5%-1% during the last financial year. The most satisfying aspect for the
Bank management is that, all the nine branches have recorded profit in the financial year 2000-
01. Bank has also taken initiative in the loan sector & advanced Rs. 88 crores to weaker sections
of the society, small-scale industries, housing, traders, shopkeepers and unemployed youths in
the financial year 2000-01. This advancement has registered an increase of Rs.7 crorefrom the
financial year 99-2000. Further Bank has distributed 17% Dividend to it's members for the year
99-2000. The present membership of the Bank now stands at 6566 and share capital has
increased to Rs. 4.09 Crores. Whereas Bank's own funds and working capital has touched to Rs.
12.19 crores and Rs. 137.52 crores respectively in the financial year 2000-01.
Infact, Bank has achieved it's objective to a great extent by helping the people of weaker
sections, financing S.S.I.'s and developing infrastructure in the area of operation of the Bank.
All the nine branches of the Bank has been approved from R.B.I to open N.R.I. & N.R.E.


 In order to encourage the best and honest employees of the bank and to create a
competition amongst the staff members to achieve their targets and to improve their
service ,the bank has started to honour the best worker of every branch.18 staff members
were honored and awarded by the hon’ble Sh. ManoranjanKalia, cabinet minister, local
bodies and industries, Punjab in the special general body meeting of the bank held on

 In the memory of founder chairman of the bank sh. Vijay sethi ,the bank started giving
'Vijay Sethi award' to best cooperative officer of the department and best cooperator state
every year.for the year 2007, the bank honured Miss kusumjitSidhu, IAS, financial
commissioner ,cooperation, punjab as best cooperative officer and Sh .Sukhdeep Singh as
best cooperator of the state.

 To encourage the staff , the bank management honoured the staff members whose
working during the year found outstanding.

 Further keeping in view the competition of the banking industry and attractive packages
given to the staff by the private as well as foreign banks, the bank has introduced
incentive scheme for the staff in which incentive to the staff will be given on achieving
the yearly target. With the implementation of this scheme, the staff will be benefited
financially, the staff will be motivated, and their morale will be boosted up.


The citizen urban cooperative bank-a leader in the urban cooperative banking sector in northern
India, realizing the need of the hour, has already initiated steps to prepare itself to face the new
challenges and to win the confidence of the public by providing a customer friendly attitude and
atmosphere.With a view to having a very clear and focused approach strategies, bank has
computerized, air-conditioned and automated all its branches. New departments such as retail
banking, npa management and recovery ,distribution of third party product such as life insurance
were formed with a view to adopt a more focused approach. The modernization of the service
and improvement in the infrastructure of the bank has given big boost in the working of the bank.
Bank has continued to provide customer friendly with precision ,regularity and efficiency.
Similarly anti-money laundering standards have been set up in the bank as per R.B.I guidelines.

Customer care is always the first and foremost duty of the Citizens Bank. Keeping this aspect in
mind, Bank is planning to introduce evening service at one of it's Branch. Besides that, for
saving the valuable time of it's esteemed customers and to provide better and quick service,
currency counting machines would be installed in the remaining seven branches. This facility has
already been provided in the Head Office and it'sMithapur Branch.


Deposits are the prime source of funds for the banks. The enormity of deposits replicates the
amount of profit that a bank can make. This is so because large chunk of deposits are given
away as loans which renders higher interest rate than that given on deposits. So, it is customary
to encourage large number of huge deposits.

Thee deposits as offered by Urban cooperative bank are explained below

A. Current

B. Savings

C. Special savings

D. Loan Compulsory

E. Nominal Compulsory

F. Fixed

G. Recurring

General Information

a) Low opening charge-3000

b) Only local cheque book are given
c) Stop payment charges & incidental charges applicable
d) Current Deposits Account can be opened by sole-proprietary / partnership firm,
private and public limited companies, institutions, trusts, individuals, societies etc.
e) Unlimited number of payments and receipts.
f) Overdraft facility.
g) Low minimum balance of Rs. 3000 only.
a) You can give various types of standing instructions like transferring of fund to fixed
deposit accounts at regular intervals, payment of locker rent with our bank's branches and
other utility bills.
b) Nomination facility is available.
c) Free signature verification as per bank's norm.
d) Free Balance Certificate once in a month.
e) Free monthly statement of account as per bank's norms.
f) ECS debit/credit.

Any sole-proprietary / partnership firm, private and public limited companies,

institutions, trusts, individuals, NGO, societies can open current Account.

Documents Required for Opening a Current Account

Following documents are required in case of individuals Two passport size photographs ,Proof of
residence i.e. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration card/voters
identity card ,An introduction of the person from an existing account holder., PAN number /
Declaration in form no.60 or 61 as per the Income Tax Act 1961 Different set of documents are
required as per bank's norms if the account is opened by partnership firms, private and public
limited companies, HUFs / specified associates, societies, trusts etc.


General Information

a) Single type of saving a/c

b) Low opening charge
c) Various Banking facilities like ATM, FD Sweep, Accidental coverage are not
d) Simplest Deposit available to depositor.
e) Easy to Operate. Terms And Condition are simple to understand to facilitate layman's
f) Any individual or society to save from their earnings to plan for your future financial
requirements can open our Saving Account
g) Your deposit is insured by DICGC.
h) Option for money withdrawal by withdrawal forms or by cheque.
i) Your savings remain liquid, safe and also earn moderate interest @ of 3.5% p.a.,
compounded half yearly.
j) You can give various types of standing instructions like transferring to fixed deposit
accounts at regular intervals.
k) An average quarterly balance of Rs. 5,000 only.
l) Interest is payable half-yearly.
m) Minimum balance Rs.1000 for Saving Account with Cheque book and Rs.500 for
saving account without cheque book facility.
n) Minor not below 14 years of age can also open an independent savings account
without Cheque book facility.

a) Resident Indian, Self Help Group or a Co-operative Society.


a) You can give various types of standing instructions like transferring of fund to fixed
deposit accounts at regular intervals, payment of locker rent with our bank's branches and
other utility bills.
b) Nomination facility is available.
c) Quarterly Statement of Account at your doorstep.
d) Free signature verification as per bank's norm.
e) Can open single or jointly with any other person.
f) ECS debit/credit.

Document Required For Opening a Savings Account

Two passport size photographs ,Proof of residence i.e. Passport/driving license/Gas / Telephone /
Electricity Bill/ Ration card/voters identity card, An introduction of the person from an existing
account holder,PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961.


This concept and deposit was prevalent earlier, but now it is not in use. In this deposit a
customer can withdraw the money only3 times (less than savings ie 5 times). However, this
deposits gives an interest at the rate which is higher than the savings account. Earlier, when it
was in use these deposits gave a return of 0.5% higher than that of savings deposits

These deposits are made compulsory for a customer who wants to take a loan from JCC. For this
customer it is required to keep 2.5% of the loan amount in these deposits. It gives the same
interest rate as saving deposits.

It is similar to loan compulsory deposits in most ways. However, the difference is that these
deposits are held by customers having less loan amount. These deposits are there to help small
loan takers, so that these people don’t need to keep 2.5% of their loan amount as deposits. It
gives the same interest rate as saving deposits.

General Information

a) An investment of your surplus funds or to create a buffer fund for your future
requirements like children's education/marriage, to buy a car or for a dream holiday. You
will find a product that suits your requirement in our entire branch.
b) Open a savings Deposits account and place funds in FLEXI Deposit scheme, wherein
term is not fixed and provides liquidity as well as benefits of higher returns.
c) Deposit tenure minimum 15 days and maximum 60 months.
d) Interest payable depending on tenure of deposit on monthly/quarterly basis or on

Interest Rate

 On pre-mature withdrawal of deposited amount interest will be calculated at 1%

below the rate applicable for completed period of deposit.

Service Charges
a) Issuance of Duplicate FDR Rs.25


a) Resident Indian, Companies, or a Co-operative Society. Societies, Trust, Firms, SHG's.


a) You can give standing instructions like transferring of interest earned to an account at
regular intervals.
b) The minimum balance of deposit is Rs.1000.
c) Loans against deposits available up-to 90% of deposits available.
d) Nomination Facility - Available.

Serial Fixed Deposit Period Below Rs.15 Lakh Rs.15 Lakh & above
no. (%p.a.) to Below Rs.1.00


1 7 to 14 Days - 1.5%

2 15 to 29 Days 3.5% 3.00%

3 30 to 45 Days 3.5% 3.00%

4 46 to 90 Days 4.25% 4.25%

5 91 to 180 Days 5.5% 5.5%

6 181 days to 1 year 6% 6%

7 Over 1 year to 2 years 6.75% 6.5%

8 Over 2 year to 3 years 7% 7%

9 Over 3 year to 5 years 7.25% 7.25%

10 Over 5 year to 8 years 7.5% 7.5%

 In case of Senior Citizen i.e. person of 60 years & above and for HUF headed by a
Senior Citizen, an additional interest @0.50% p.a. on FDRs above one year and for a
minimum amount of Rs. 10,000/- shall be applicable on regular deposits as well as on
deposits under Sahakar tax Bachat Yojana.

 In case of pre matured withdrawal interest payable on such withdrawal of deposits

will be the contract rate or the rate applicable for which the deposit remain with the
bank, whichever is lower, less 1% penalty.

Things to Remember Before Opening a FD Account

Before opening a fixed deposit account, check the financial position of the bank. Also, try to
check the rates of interest for different banks for different periods. Instead of putting a big
amount in one fixed deposit, keep the amount in five or ten small deposits. This way, in case of
any premature withdrawal of partial amount, then only one or two deposits may need to be
prematurely encashed. Thus, the loss of interest will be less than if a single big deposit were to
be encashed. Check deposit receipts carefully to ensure that all details have been properly and
accurately filled in. Do not leave the renewal column unfilled. Otherwise, on maturity the fixed
deposit amount will go back into an FD. Before investing in a FD it is important to consider the
rate of interest and the inflation rate. A high inflation rate can eat into your real returns. So, it is
vital to have a look at the inflation rate before arriving at the real rate of interest. If the deposit is
withdrawn prematurely, then a penal interest rate is charged as follows. Penal interest rate for
FD Time from subscription Less than 1 year is 1% 1 to 3 years is 2% More than 3 years is
3%.Note that no penal interest is charged to the heirs of FD holder who has died in the duration
of the maturity of FD.

Advantages of Fixed Deposit

 Fixed deposits with the banks are nearly 100% safe as all the banks operating in the
country, irrespective of whether they are nationalised, private, or foreign, are governed by
the RBI's rules and regulations, and give due weightage to the interest of the investor. Till
recently, all bank deposits were insured under the Deposit Insurance & Credit Guarantee
Scheme of India, which has now been made optional. Nonetheless, bank deposits are
among the safest modes of investment.

 One can get loans up to 75- 90% of the deposit amount from banks against fixed deposit
receipts. Though the interest charged will be slightly more than the interest earned by the

Tax Implications

 The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled
bank is eligible for tax deduction under section 80C. However, the interest earned on the
deposit is taxable.

 Tax will be deducted at the source, if the interest income on a fixed deposit per annum
exceeds Rs.10000.

At fixed deposits counter, depositor comes for three things as stated below-
1. Depositing new FDs
2. Renewal of matured FDs
3. Cash withdrawal from FDs
Now, the procedure followed by the banker at Urban citizen cooperative bank when the
depositor comes for the above stated three services is as follows

1. Depositing new FDs - Here the depositor can give cash, cheque of the same bank (UCB)
, cheque of other bank. The pre requisites for this are FD form (given in Appendix 4),
Photo proof, PAN card . The depositor also mentions the time period for which he wants
to deposit the amount. After completing the formalities on the depositor side the
procedure followed by banker is He follows the path: Fixed master transaction create
new which is applicable to UCB only. Here he creates new account where the account
number is automatically given by the system. In the new account the banker enters the
period for which the deposit is to be kept and rate of interest for that particular time
period. The print of the receipt created is taken and is given to the customer.
2. Renewal of matured FDs -Here depositor comes for renewal of his FDs. He follows the
following procedure.
a. He should have brought the earlier receipt of his FD.
b. He should mention the time for which the FD should be renewed.
c. After this banks fill up a slip containing FD a/c number, name, matured amount, date
(all this data from earlier receipt)
d. After this the officer debits the current receipt . Here a/c number, receipt number is
entered and then the receipt is debited.
e. Then credit to other receipt is done .Here the banker enters the details of new receipt
such as date for renewal, period for which FD should be renewed and amount
f. Thereafter print of the new receipt is taken which is given to the client.

3. Cash withdrawal for FDs - Here depositor withdraws cash and first and fourth step of the
above procedure is followed. That is only the receipt is debited. After this for the
customer to withdraw the cash, the amount is credited to savings a/c (If he is having the
a/c in the UCB) or he is given pay slip (if he is not having a/c in UCB).

General Information

a) Encourages savings habits to save for future necessity like, to create a fund for your
children's education or marriage or to buy a car or for a dream holiday.
b) Recurring deposit is a scheme where depositor commits to deposit a fixed amount for a
fixed period of time (for instance Rs 500 every month for 12 months)and gets a lump-
sum amount at the end of defined period. The terms i.e., fixed amount, interval and fixed
the period that is decided at the time of opening the deposit cannot be modified / altered.
c) High interest rates of interest.
d) Non-applicability of Tax Deduction at Source (TDS).
e) Minimum amount required to open RD account is Rs 100/-, subsequent deposits in
multiples of Rs. 100/-.
f) Deposit tenure minimum 12 months and maximum 60 months.

Interest Rate

a) Interest will be compounded quarterly and paid on maturity.

b) On pre-mature withdrawal of deposited amount interest will be calculated at 1% below
the rate applicable for fixed period of deposit.
c) Interest as per bank circulars at time of opening of Recurring deposit account.

How to open a RD Account

A Recurring Bank Deposit account can be opened at any bank that offers this facility. However,
some banks insist that you open a savings bank account with them to operate a Recurring
Deposit account.

 Personal Loans.
 GyanSagar Educational Loans.
 Home Loan
 Vehicle Loans.
 Mortgage Loan
 Industrial Loan
 Loan Against Security
 Hotel/Motel/Restaurant Loan Scheme
 Micro Finance
 SahakarTex Bachat Yojana
 Sahakar Sugam Credit Cash Scheme
 Kisan Credit card Scheme
 KrishakMitraYojana
 Personal Accident Insurance Scheme


One of the reasons for boom in Indian economy is that now a days loans are easily available and
the rate of interests at which they are available are very reasonable. Urban citizen cooperative
bank is giving loan for and loan against any and every thing. Government too is encouraging
people to take loans for certain purposes

.Following are the some types of loans provided by urban citizen cooperative bank-

Personal loan/Consumer loan -

Products - CUCB Personal loan

a) Personal loan 1 lack or 8 times of monthly salary For casual financial obligations.
b) For emergency financial requirements.
c) Faster Processing
d) Minimum Documentation required
e) Attractive Interest Rates
Quantum of Loan
a) With CUCB Home loan, you can get a loan up to Rs.1, 00,000/- without collateral
security and Rs.2, 00,000/- with collateral security. Loan amount is eight times of
monthly income in case of salaried persons. In case of non-salaried persons loan
amount is sixty six percent of annual income.

Rate of Interest
a) Interest rate @13.00% p.a. on monthly rest.

Repayment Period
a) Five years.

Types of Personal Loans

 A secured loan is one in which you need to attach a guarantee against the sum of money
borrowed. This can either be in the form of your property or any fixed/movable asset.
Upon default, there is a risk of the asset being taken over by the bank and sold off.

 An unsecured loan is one in which no security needs to given for the money borrowed.
However, in this case, the lender would be charging a higher rate of interest, taking into
account the high risk involved in lending the sum. In case the recipient fails to repay the
loan, the lender can seek legal help to make up for the loss incurred.

Eligibility Criteria for Personal Loans

Salaried Individuals

 Minimum Age of the Applicant - 21 years

 Maximum Age of Applicant at Loan Maturity - 58 years

 Minimum Employment Period - 2 years in total and 1 year at present organization

 Minimum Income - Rs. 8000 per month

Self Employed Professionals & Businessman

 Minimum Age of the Applicant - 25 years

 Maximum age of Applicant at Loan Maturity - 65 years

 Minimum Business Period - Minimum 3 years in current business and 5 years total

 Minimum Annual Income - Rs.60,000

Documents Required for Personal Loan

 Bank Statement for last three months (where salary/income is credited)

 Salary Slips for last three months (if salaried) or ITR for the last two years (if self

 Proof of Continuity in Current Job - Form 16 / Company Appointment Letter (if salaried)

 Proof of Identity (Copy Of Passport / Driving License / Voters ID / PAN Card / Photo
Credit Card / Employee ID Card)

 Proof of Residence (Copy Of Ration Card / Utility Bill / LIC Policy Receipt)

 Proof of Qualification Highest Degree (for Professionals / Govt employees)

 For Professionals - proof of qualification, say degree, registration with professional

council, etc.

 Two passport size photographs

Auto loan

With a plethora of auto loan opportunities available in India these days, it is now possible for you
to buy your dream car within a matter of days. No need to save up money for making complete
down payment at the time of buying. Urban citizen cooperative bank offer an easy auto loan
service to provide its constomer satisfactory service. Just gather enough amount for the initial
payment and pay the rest in easy installments, by taking up a loan. The best part about auto
financing is that, apart from the new cars, loans are available for old cars as well. After you have
decided to take an auto loan, check out the various schemes available in the bank. After
undertaking a thorough research of each and every scheme, you will need to pick the one that
suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size
of the loan will depend upon the cost of the vehicle and its type (standard or premium), along
with the percentage financing you want or are being offered.

Type of vehicle Rate of Interest

Three Wheelers/Scooter/Motor Cycle /Light Vehicle 11.25%

Car loans UptoRs 4.00 lacs 11.25%

Car loans Above Rs 4.00 lacs 11.50%

Trucks and other Heavy Vehicles 13.50%

There is no necessity for any collateral to get a car loan from urban citizen cooperative bank
Usually, the bank hypothecates the car in its name. The endorsement for hypothecation is made
in the Registration Certificate (RC) book of the vehicle, which gets cancelled after the loan is
repaid. Usually the tenure of auto loan varies from 1 to 5 years. However, Urbancizen
cooperative bank has a schemes that offer loans for 7 years as well.

General Features

 In case of a new car, loan amount is up to 90% of cost of the car.

 In case of used car, loan amount is up to 80% of the car.

 The maximum loan amount is up to 3 times the annual salary (for salaried professionals)
or 6 times the annual income (for self employed professionals).

 Urban citizen cooperative Bank generally offer a preferential treatment to their existing
customers. If you have savings or current account with a bank, it is easier to get the loan
and you might also get preference in terms of rate of interest.

 Loan is given for a period of 1 to 5 years.

 If you want to go for an early settlement of the loan amount, certain charges are taken as
a penalty.
 For the purpose of auto loan, the interest is calculated on compound basis.

 In case you have been declared bankrupt, applied for bankruptcy, defaulted in some loan
in the past or a court case pending against you, it will be very difficult for you to get an
auto loan.

 The rate of interest for an auto loan is 11.25% percent.

Eligibility Criteria

 Minimum Age of Applicant While Applying For Loan: 21 years

 Maximum Age of Applicant at Loan Maturity: 58 years

 Minimum Employment: 1 year in current employment and minimum 2 years of

employment in general

 Minimum Annual Income: Rs 100,000 (net)

 Telephone: Must at Residence

Documents Required

 Proof of Identity (Copy of Passport, PAN Card, Voters ID Card or Driving License)

 Income Proof (Latest salary slip with form 16 - for salaried individuals or IT returns for
the last two financial years - for self employed individuals and professionals)

 Address Proof (Copy of Ration Card/Driving License/Voters Card/Passport /Telephone

Bill/ Electricity Bill/Life Insurance Policy/ Pan Card)

 Bank Statement (For the last 6 months)

 Two passport size photographs

Real estate is currently one of the fastest growing sectors in India. Banking sector is also
registering profitable business since the last few decades, with the growth of real estate. Majority
of the banks are also offering easy home loans at attractive rates to their customers. Now that
getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of
purchasing lands, building their houses and expanding their homes. Different types of home
loans are tailored to suit the heterogeneous requirements of the customers. The description of
some of the most common types of home loans is given below.

Types Of Home Loans

 Home Purchase Loans: This is the basic home loan for the purchase of a new home.

 Home Improvement Loans: These loans are given for implementing repair works and
renovations in a home that has already been purchased by you.

 Home Construction Loan: This loan is available for the construction of a new home.

 Home Extension Loan: This is given for expanding or extending an existing home. For
instance, you may apply for a loan for the addition of an extra room in your home and for
similar cases.

 Home Conversion Loan: This is available for those who have financed the present home
with a home loan and wish to purchase and move to another home for which some extra
funds are required. Through home conversion loan, the existing loan is transferred to the
new home including the extra amount required, eliminating the need of pre-payment of
the previous loan.

 Land Purchase Loans: This loan is available for purchase of land for both construction
and investment purposes.

 Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to
be paid on the purchase of property

Type of Loan Rate of Interest

House and Building (Owned )

Upto to Rs 5.00 Lacs 10.25%

Above Rs 5.00 Lacs to 20.00 Lacs 10.80%

Above Rs 20.00 Lacs to Rs 25.00 lacs(Maximum) 11.25%

House and Buliding(Trust and Edu. Society) 13.00%

General Information

 The loan amount is based on the repayment capacity of the customer. However, it cannot
be more than 85% of the cost of the property (including the cost of the land).

 The minimum term of home loan is 5 years, while the maximum duration for the loan is
20 years, subject to the retirement age of the applicant.

 Home Loans can be applied either individually or jointly, with spouse, children (son or
daughter) and even earning parents (father or mother), but if staying with the applicant
and having regular income.

 Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the
income, increasing the home loan tenure and opting for a step-up loan.

 The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan
amount granted for the applicant would be 80% to 85% of the cost of the home.

 The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens
with the increase in home loan rates.

 Processing charge, pre-payment penalties, commitment fees and miscellaneous costs

accompany a home loan, in many of the cases.

Eligibility Criteria

 The minimum age limit for the person applying for loan is 21 years.

 For Government employees and those working at public limited companies, the
maximum age limit for applying for home loan is 60 years, while for salaried individuals,
it is 58 years.. For self employed people, the maximum age limit is 65 years.

 The applicant should be graduate.

 The applicant should have a stable source of income, at the time of availing the loan and
should have a saving history as well.

Documents Required
Salaried Customers Self Employed Professionals Self Employed Businessman

Application form with Application form with Application form with

photograph photograph photograph

Identity and Residence Proof Identity and Residence Proof Identity and Residence Proof

Education Qualifications Education Qualifications

Latest Salary-slip Certificate and Proof of Certificate and Proof of
business existence business existence

Last 3 years Income Tax

Form 16 Business profile
returns (self and business)

Last 3 years Income Tax

Last 3 years Profit /Loss and returns (self and business) &
Last 6 months bank statements
Balance Sheet Last 3 years Profit /Loss and
Balance Sheet

Education Loan

Education is the essence of life. To ensure that no deserving student is denied education for want
of funds, the government is promoting education loans in a big way. The basic aim or idea
behind education loan is to bring education within the reach of students and help them improve
their prospects in life. Any student who has secured admission in an institute of repute, whose
degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory
Body or recognized by AICTE (All India Council of Technical Education) and other institutes of
repute, is eligible for educational loan.
Education loans cover cost of the school/college fee, hostel expenses, and cost of books and
stationery. Apart from this, any other expense required to complete the course can also be
considered. The maximum amount of education loan is up to Rs. 7.50 lakh in case of studies in
India and Rs 15 lakhs for studying abroad. The sum of money offered is against a third-party
guarantee. The third-party guarantee can come from an uncle, neighbor or friend standing
guarantee for the full amount of the loan.
On an average, an education loan has to be repaid over a period of 5 to 7 years, with the
provision of a grace period of one year after completion of studies. The loan money has to be
repaid within 84 months in equated monthly installments (EMIs), commencing 12 months after
course completion or 6 months after getting the job, whichever is earlier. In case of overseas
study loan of 7 lakhs or above, the sum of money is usually given against fixed deposits, NSC
certificates and property worth the loan amount.

General Information for taking education loan from urban citizen cooperative bank is:

 The exact rate of interest for education loan differs from one bank to the other. However,
it usually varies from 10 to 15 percent.
 Apart from the fee of the course, a list of other expenses is also covered by education
loans. However, the list depends upon the bank from which you are taking the loan.
 Education loan can be offered at fixed as well as floating interest rate. The interest is
usually charged on a daily or monthly reducing balance.
 Generally, nationalized banks have been seen to offer variable interest rates, while
private and foreign banks charged fixed interest rates on education loans.
 While applying for education loan, you will have to pay a percentage of the loan amount,
as processing fee.
 In most of the cases, the entire fee for a course is not financed by the bank. A certain
proportion, called margin, has to be paid by the applicant. The margin requirements on
education loans are not very rigid, with the average being 5 percent for studying in India
and 15 per cent for abroad.

The Urban citizen cooperative bank ltd is providing higher education loan at the rate of 12.50%.
Marriage Loan

Marriage is one of the most important events in a person's life. You want to make sure that all
the arrangements are perfect and match the occasion. Marriage loans ensure that money is not a
hindrance in marriage preparations. Several Indian banks offer loans for marriage. The loan is
available for meeting the expenses of marriage of your own self as well as that of your daughter,
son dependent sister and dependent brother.
The marriage loan amount that can be sanctioned varies from bank to bank and from customer to
customer, depending on a number of factors, such as, security/collateral offered by the customer,
repayment capacity of the borrower, age of the borrower. Generally, it is twice the net annual
income of the applicant. There is no fixed interest rate for marriage loans in India.
For the loan to be disbursed, the bride and the groom should not be less than 18 years and 21
years of age respectively. Anyone can apply for the loan. He/she has to fill a form at bank outlet.
The bank charges processing fees, at the time of submission of the form, which varies from one
bank to the other. The repayment of the loan can be done either through monthly/quarterly/half
yearly installments or under Equated Monthly Installmentsscheme. The eligibility criteria to take
marriage loan from Urban citizen cooperative bank is

 Minimum Age for loan: 21 years (groom)/ 18 years (bride)

 Maximum Age of Applicant at the Time of Loan Maturity: 60 years
 Net Annual Income: Rs. 1,44,000 pa
 Years in Current Job / Profession: 1 year
 Years in Current Residence: 1 year

Business Loan

Business loans are available to self employed professionals, firms and corporations, to
meet their operating expenses, finance capital expenditure (or acquisition of fixed assets)
towards starting or expanding a business. Even industrial units are given business loans, to swap
existing high-cost debt from other bank / financial institution. Apart from providing funding,
bank can also issue letters of credit or give a guarantee, on behalf of the customer, to the
suppliers and even government departments, for the procurement of goods and services on
The maximum amount of business loan that can be sanctioned varies from bank to bank.
However, the minimum loan amount is Rs. 25000 and maximum loan amount is Rs 25 Lakh and
tenure is 5 years. Generally, no security is required for business credit up to a certain limit. For
business loans above the limit, banks usually require a collateral security or a percentage of
business loans as margin, in the form of fixed deposit with the bank. Business loans are similar
to an overdraft and are available like a limit on current account. In this case, the interest is
charged only on the actual amount utilized, rather the entire amount of loan.

Types of Business Loans

Professional Loans

Professional loans, as their very name suggests, are provided to self employed
professionals like Doctor, Chartered Accountant, Interior Decorator, Architect, Company
Secretary, etc. Unsecured in nature, this type of loan is not given to manufacturing, trading or
processing units. The amount of loan varies between Rs. 25000 to Rs. 25 lakh, considering the
age of the applicant, his financial standing, his repayment capacity, tenure of the loan (maximum
5 years), etc. The urban citizen cooperative bank provides loans to professionals including
doctors,charteredaccountants,companysecretaries,architects,engineers at the rate of

In case of professional loans, the rate of interest depends upon the prime lending rate, is
calculated on diminishing balance and can be on the fixed as well as fluctuating basis. In many
cases, it depends upon the customer's profile and his financial capacity. The payment is made
through EMIs and in only a few cases, tangible collateral security is required. Most of the
finance companies also charge a process fee, usually 1% of the loan amount.

Trade Loans
Trade loans are provided to traders/ businessmen, so as to help them either open a new
business or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs.
100 lakh, considering the age of the customer, his financial standing, his repayment capacity,
tenure of the loan, etc. The maximum duration for which the loan is given is 5 years and it has to
be repaid through Equated Monthly Installments or EMI.

The rate of interest depends upon the prime lending rate and can be offered on the fixed
as well as fluctuating basis. There are many banks that require customers to furnish collateral
security for the loan, in the form of mortgage of land (not agricultural land) and building. Apart
from that, National Savings Certificates, Government Bonds, Bank's Term Deposits, Assignment
of Life Insurance Policies, Approved Shares & Bonds (in the name of
borrower/proprietor/partner/director) are also acceptable.

Loan against home

Loan against home connotes a loan that is given or disbursed against the mortgage of
home, as a certain percentage of market value of the property. Generally, the loan amount that is
sanctioned ranges from 40% to 70% of the market value, with a minimum threshold limit of Rs 2
lakh. A loan against home works out to be much cheaper than personal loan. The rate is lower
because the lending entity has a security in the form of the housing mortgage vis-à-vis a personal
loan that is given without any security.
The tenure for repaying loan against home has an upper limit of 10 years. The loan can be taken
for any purpose and the customer is not required to disclose the motive behind the loan, to the
lending authority. The criteria for loan against home are same as that of a home loan. Part
prepayment as well as full prepayment of the loan is generally allowed by most lending
institutions, though with a charge. Loan against property is available in case of both residential
and commercial property. Many housing finance companies allow individuals to take loan
against home even if they have taken a housing loan from them.

Amount of Loan Depends Upon

 Your income, savings, debt obligations

 Cost/value of the property mortgaged
 Your repayment track record for other loans, credit cards, etc
 Number of years in service/ business

The Urban citizen cooperative bank ltd is providing loan against home in following

Loan against home Rate of interest

a)Business purpose(upto 60.00 lacs) 13.75%

b)General purpose(uptors 60.00 lacs) 14.00%

Generally, loan processing charge of 2% is levied. Pre-payment is allowed after 6 months.

Generally, prepayment charge equivalent to 4% of the outstanding principal is levied. In
most of the cases, the minimum amount of loan against property is Rs 25,000 and the
maximum amount is Rs 60.00 Lacs. The charges that might apply in case of loan against
property are processing fee, pre-payment fee, charges for changing from fixed to floating
rate of interest and charges for changing from floating to fixed rate of interest.

Internet Banking:
Internet banking involves use of internet for delivery of banking products and services. With
internet banking is now no longer confirmed to the branches where one has to approach the
branch in person, to withdraw cash or deposits a cheque or request a statement of accounts. In
internet banking, any inquiry or transaction is processed online without any reference to the
branch (anywhere banking) at any time. The Internet Banking now is more of a normal rather
than an exception due to the fact that it is the cheapest way of providing banking services.

Benefits of Internet Banking: •

 Reduce the transaction costs of offering several banking services and diminishes the need
for longer numbers of expensive brick and mortar branches and staff.
 Increase convenience for customers, since they can conduct many banking transaction 24
hours a day.
 Increase customer loyalty.
 Improve customer access. Attract new customers.
 Easy online application for all accounts, including personal loans and mortgages

Financial Transaction on the Internet:

 Electronic Cash: Companies are developing electronic replicas of all existing payment
system: cash, cheque, credit cards and coins.
 Automatic Payments: Utility companies, loans payments, and other businesses use on
automatic payment system with bills paid through direct withdrawal from a bank account.
 Direct Deposits: Earnings (or Government payments) automatically deposited into bank
accounts, saving time, effort and money.
 Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls,
laundry service, library fees and school lunches.
 Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for
payment of goods and services. This system has made functioning of the stock Market
very smooth and efficient. BANKING SERVICES IN INDIA
 Cyber Banking: It refers to banking through online services. Banks with web site “Cyber”
branches allowed customers to check balances, pay bills, transfer funds, and apply for
loans on the Internet.

Automatic Teller Machine:

The introduction of ATM’s has given the customers the facility of round the clock banking. The
ATM’s are used by banks for making the customers dealing easier. ATM card is a device that
allows customer who has an ATM card to perform routine banking transaction at any time
without interacting with human teller. It provides exchange services. This service helps the
customer to withdraw money even when the banks ate closed. This can be done by inserting the
card in the ATM and entering the Personal Identification Number and secret Password.
ATM’s are currently becoming popular in India that enables the customer to withdraw their
money 24 hours a day and 365 days. It provides the customers with the ability to withdraw or
deposit funds, check account balances, transfer funds and check statement information. The
advantages of ATM’s are many. It increases existing business and generates new business. It
allows the customers.
 To transfer money to and from accounts.
 To view account information.
 To order cash
 To receive cash.


Although the bank is facing stiff competition from the public sector and new generation private
sector banks with the enhanced technological advancement in banking operations, but due to
focused personalized service approach to the members nad small depositors,the bank has shown
tremendous growth in all areas of its operations and attain new heights of progress during the
financial year 2011-12 as under. The financial performance of the bank for the year ended March
31,2012 at a glance is as under

Mar-11 Mar-12
Gross income 2582.08 1807.24
Profit before depreciation ,tax and provisions 471.55 279.72
Depreciation on fixed assets 34.85 30.86
Profit before provisions and contingencies 436.7 248.86
Provisions and contingencies 198.57 119.83
Profit after tax 238.13 129.03
Working funds 28048 24003
Paid up capital 662 577
Reserves and surplus 2247 2095
Net worth 3037 2674

 Gross income increased to Rs 2582.08 lacs as against rs. 1807.24 lacs in the previous
year registering a growth of 42.87%

The citizens urban co-op. Bank, Ltd. Jalandhar is a fast growing institution which has made an
indelible mark in the history of urban banking in Northern India. The Board of Directors under
the chairmanship of Sh. K.K. Sharma have drawn up ambitious futuristic plans to compete with
other Banking institutions in the region..

* New Branches : The citizens bank which has now nine branches is planning to setup
three more branches during the financial year 2001-02, thereby increase the total number
of branches to 12. The proposed places for the setting-up of new branches are :

* Kapurthala

* Bhogpur

* J.P. Nagar, Jalandhar

The above branches are proposed to setup during the year subject to the approval by the RBI. For
the early issuance of licenses, necessary correspondence is being made with the RBI. Besides
that, to have it's own premises is the priority of every organisation. Keeping this priority in mind,
citizens bank has decided to get the bank building constructed by the engineering cell of Punjab
Markfed on it's 53 marla plot adjoining, HotalShangrila, Jalandhar and architectural assignment
has already been assigned

This study has been conducted with a variety of important objectives in mind. The following
provides us with the chief objectives that have tried to achieve through the study. The extent to
which these objectives have been met could be judged from the conclusions and suggestions,
which appear in the later of this study.

 To study the services provided by Citizens Urban Co-Op. Bank Ltd.

 To study the satisfaction level of the customers with Citizens Urban Co-Op. Bank Ltd.
 To get information regarding different conditions to be fulfilled for opening an account in
the bank.
 To know the type of services provided by Citizens Urban Co-Op. Bank Ltd. in deposits
 To know the staff attitude towards bank’s customers.


Research means a search for knowledge or gain some new knowledge and methodology can
properly refer to the theoretical analysis of the methods appropriate to a field of study or to the
body of methods and principles particular to a branch of knowledge. A Research methodology
has a specified framework for collecting the data in an effective manner. Research methodology
means a "defining a problem, defining the research objectives, developing the research plan,
collecting the information, analyzing the information and presentation of findings." Such
framework is called "Research Design". The research process that was followed by me
consisting following steps;
A) Defining the problem
B) Developing the research plan
C) Collection of Data
D) Analysis and Interpretation of Data
E) Presentation of findings

A) Defining the problem and research objectives

 My research problem is to know services provided by Citizens Urban Co-Op. Bank Ltd.

B) Developing the Research Plan

The development of research plan has following steps:
1. Data source
2. Research approach
3. Type of Research Design
4. Research instrument
5. Sampling plan
i) Sample unit
ii) Sample size
iii) Contact methods
6. Questionnaire Design

1. Data Source: The researcher can get two types of data:

a) Primary Data
b) Secondary Data

a) Primary Data
Primary data is a data which did not exist earlier and is being collected by the researcher first
time for its specific objectives. In other words, direct collection of data from the source of
information, technology including personal interview, observation, Questionnaire and through

b) Secondary data
Any data which have been collected earlier for some purpose are the secondary data. Indirect
collection of data from sources containing past or recent past information like bank's brochures,
annual publication, books etc. Secondary sources used are:
 Text books
 Internet sites
 Newspaper articles
 Broachers

2. Research Approach
Survey is best suited for descriptive and analytical research. Survey are undertaken to learn about
people's knowledge, beliefs, preferences, satisfaction and so on and to measure these magnitudes
in the general public. Therefore, I have done this survey for Descriptive and analytical research
Descriptive research includes surveys and fact finding enquiries of different kinds. The main
purpose is description of the state of affairs is noted down and analytical research used to analyze
the material and facts.

3. Research instrument
Questionnaire:Questionnaire (also known as self-administered survey) is a type of statistical
survey handed out in paper form usually to a specific demographic to gather information in order
to provider better service or goods. A document that contains a set of questions that has been
specially formulated as a means of collecting information and surveying opinions, etc on a
specified subject or theme, etc .
A questionnaire was constructed for my survey.

4.Sampling plan
Sample is a group of few items which represents the population or universe from where it has
been taken. The sampling plan calls for three decisions;
a) Sample unit
b) Sample size
c) Contact methods
a) Sample unit – who is to be surveyed?
The target population must be defined that has to be sampled. It is necessary so as to develop a
sample frame so that everyone in the target population has an equal chance of being sampled. I
have completed my survey in Jalandhar .

b) Sample size - how many people have to be surveyed?

Generally, large sample size gives more reliable results than small samples. The sample
consisted of 100 respondents. The sample was drawn from people having different educational
qualification, age group, occupation. The selection of the respondents was done on the basis of
Simple Random Sampling.
Simple random sampling is the technique in which every item in the universe and population has
an equal chance of being selected in the sample. Researcher has no role to play or he cannot
influence the selection process there is no possibility of biasness. It can easily assess the
accuracy of estimate.

c) Contact methods
Once the sampling plan has been determined the Questionnaire is how the subject should be
contacted i.e. by telephone interview, personal interview, mail etc. Here, in my survey, I have
contacted the respondents through personal interviews.

C) Collecting the information

After this, I have collected the information from the respondents with the help of Questionnaire.

D) Data Analysis and Interpretation

The next step is to extract the pertinent findings from the collected data. I have tabulated the
collected data and developed frequency distributions. Thus, the whole data was grouped aspect
wise and was presented in tabular form. Thus, frequencies and percentages were prepared to
render impact of study.
E) Presentations of findings
This was the last step of survey.


Due to constraints of time and resources, the study is likely to suffer from certain limitations.
Some of these are mentioned here under so that the findings of the study may be understood in a
proper perspective.

The limitations of the study are:

 Some of the respondents of the survey were unwilling to share information.
 The research was carried out on in-house customers. i.e. within the branch in the small
city of Punjab viz. Jalandhar so the response may vary by including the respondents from
other branches in other areas as well.
 The research was carried out in a short period of 6 weeks as a part of summer training.
Therefore the sample size and other parameters were selected accordingly so as to
finish the work within the given time frame.
 The information given by the respondents might be biased because some of them might
not be interested to give correct information.


 The study is limited to only those 100 respondents who have account in Citizens Urban
Co-Op. Bank Ltd.
 The study shows that maximum numbers of people are aware of saving account of
Citizens Urban Co-Op. Bank Ltd.
 It is revealed from the research study that majority of the respondents have come to know
about the services of Citizens Urban Co-Op. Bank Ltd. through newspaper followed by
other sources i.e. friends, pamphlets, TV, Banners etc.
 It is depicted from the study that 44% of customers are dealing with Citizens Urban Co-
Op. Bank Ltd. from last 3-5 years, 26% of customers are dealing with Bank from last
more than 5 years, 20% of customers are dealing with Bank from last 2-3 years and 10%
of them are dealing with Bank from last one year.
 Citizens Urban Co-Op. Bank Ltd. is a one stop bank because it provides all modern
banking services and products to customers under one roof.
 It can be analyzed from the research study that 60% customers spent only 5 to 10 minutes
to perform only transaction in the Bank. 30% customers spent 5 to 10 minutes and only
10% customers spent more than that in Citizens Urban Co-Op. Bank Ltd.
 It has been analyzed that most of the customers of the bank are satisfied with the time
taken by bank for opening of A/c in the bank
 It is clear that majority of the respondents are average satisfied with services provided by
Citizens Urban Co-Op. Bank Ltd.
 It has been observed that the most of the customers are satisfied with the time taken by
bank for clearing of cheques but still there are many people who are not satisfied with the
time taken by bank for clearing of cheques i.e. still 24% of the customers are not satisfied
so, bank staff should be more efficient.
 From the study it is clear that majority (70%) of the respondents visit the Citizens Urban
Co-Op. Bank Ltd. 1-4 times in a month, 20% respondents visit 5-10 times and remaining
10% respondents visit the Bank 11-15 times in a month.
 It is revealed that 86% customers would like to recommend the name of Citizens Urban
Co-Op. Bank Ltd. to other persons. Only 4% customers would not like to recommend the
name of Citizens Urban Co-Op. Bank Ltd. and 10% customers are confused to give
 The study shows that 14% respondents are highly satisfied with the staff behaviour of
Citizens Urban Co-Op. Bank Ltd. while 60% respondents are satisfied with the staff
behaviour. 20% of the respondents are not satisfied with the staff behaviour of Citizens
Urban Co-Op. Bank Ltd. and 4% are highly dissatisfied with staff behaviour.
 Majority (46%) of the respondents are average satisfied with the overall performance of
Citizens Urban Co-Op. Bank Ltd. where they are operating their account. 34% of the
respondents are satisfied, 16% are highly satisfied and remaining 4% respondents are
not satisfied with the performance of Citizens Urban Co-Op. Bank Ltd.
The customer satisfaction is very important for success of Bank. Only those Banks will be at the
top which satisfied their customer. If the employees are performing their Job efficiently it will
improve the customer relations.
The face of Indian banking is changing rapidly. The competition and challenges in Indian
banking sector is increasing day by day. I made this project on the topic entitled “Services
provided by Citizens Urban Co-Op. Bank Ltd.”. From the above study I concluded that the
account holders of Citizens Urban Co-Op. Bank Ltd. are satisfied with the bank. The banking is
providing all modern banking products & services like Saving A/c, Current A/c, Fixed Deposits,
NRI A/c, Loans etc. to customers of Citizens Urban Co-Op. Bank Ltd.
Citizens Urban Co-Op. Bank Ltd. is one of the fastest growing co-operative bank in Jalandhar.
The bank has to take necessary initiatives in order to increase customer base. The bank should
increase number of branches and install ATMs at the prime locations of Jalandhar. The bank can
also introduce gifts and prizes from time to time. The interest for different deposits account
should be increased.
From the above study, I can conclude that Citizens Urban Co-Op. Bank Ltd. has maintained
excellent position in the market and the customers are satisfied with the overall performance of
Citizens Urban Co-Op. Bank Ltd. So, we can say that Citizens Urban Co-Op. Bank Ltd. is well
known for understanding the customer needs in the modern era of banking.
 Citizens Urban Co-Op. Bank Ltd. should increase the number of branches in the city.
 The bank should bring out new products and schemes at time-to-time so that more people
can be attracted.
 Even some gifts and prizes may be offered to the customers for their retention.
 Citizens Urban Co-Op. Bank Ltd. should install ATMs in the prime locations of
Jalandhar City.
 Customer feedback should be taken at regular intervals, so as to keep track of the
changing requirements of the customers.
 The bank should increase rate of interest of deposit accounts.
 The need of the customer should properly be understood so that customer feels satisfied.
 24 hours banking should be induced so as to facilitate the customers who may not have a
free time in the daytime. It will help in facing the competition more effectively.
 Employees’ behavior should be so nice so that customer don’t feel any hesitation in
asking his doubts.

Books :

 Khan Masood Ahmed (1992), “Banking in India”, Anmol publications, 3rd Edition, New

 Kotahri C.R. (2005)- “Research Methodology” Tata Mcgraw Hill, New Delhi.

 Seethapathi K., Sivaram Y G and Rama T S, (2003) “Indian Banking System – The
Changing Scene”, ICFAI University Press
 P. N. Varshney (1999) - “Indian Financial System And Commercial Banking”, Sultan Chand
& Sons Publication.

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