DEPARTMENT OF TECHNICAL EDUCATION
ANDHRA PRADESH
Name : [Link]
Designation : Senior Lecturer
Branch : Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam
Year/Semester : V semester
Subject : Banking
Subject code : CCP 504(B)
Topic : Customer Services in Banks.
Duration : 50mts
Sub topic : Services Rendered by Banks
Teaching Aids : PPT, Animation
CCP504(B).37 1
Customer Service in Banks
Objectives:-
On completion of this period, you would be able to:
Understand the relationship between a banker and a
customer,
Understand the services of a banker to its deposit
holders and credit seekers.
CCP504(B).37 2
Known to unknown
What are the primary functions of a bank?
In addition to primary functions, which type of
services banks perform?
Say an example for general utility service
Why banks perform general utility services?
Give an example for agency service
CCP504(B).37 3
General Relationship of
Banker and Customer
There are three types of general relationships
between a Banker and a Customer. They are:
• Debtor and Creditor Relationship
• Trustee and Beneficiary Relationship
• Agent and Principal Relationship
CCP504(B).37 4
Debtor – Creditor Relationship
When a customer (Debtor) deposits money with a
Bank ,the customer becomes a lender and the bank
becomes borrower.
As such, the relationship is that of a debtor and
creditor.
It is a General relationship between banker and
customer.
CCP504(B).37 5
Trustee and Beneficiary relationship
A trust is a relation between two persons by virtue
of which one of them (called Trustee) holds
property vested in him for the benefit often (called
beneficiary).
If a customer deposits securities or often
valuables with the banker for safe custody, the
banker acts as a Trustee of his customer
(beneficiary).
CCP504(B).37 6
Agent and Principal relationship
Generally ,bankers render agency services for their
customers.
The bankers pay insurance premiums, electricity
bills taxes etc.,
Bankers acts as per the ‘standing Instructions’ of
their customers.
CCP504(B).37 7
Services of a Banker to the Deposit
Holders and Credit Seekers
The Modern Banks are performing various types of
services to their deposit holders and credit seekers in
addition to primary functions. They are:
1. General Utility Services
Example: Providing Locker facility, issuing
Letters of Credit and underwriting securities etc.,
3. Agency Services Example:- Remittance of
Funds, execution of standing orders etc.,
4. Issuing debit cards and credit cards
CCP504(B).37 8
Services of a Banker to the Deposit
Holders and Credit Seekers
1. Telephone Banking
2. Introduction of ATMs
3. Personal Computer Banking
4. Network or Online Banking
5. Electronic Funds transfer
CCP504(B).37 9
Services rendered by Banks
Collection of Cheques, Demand drafts, Bills or
exchange promissory notes, hundies and foreign
documentary and clean Bills.
Purchase of local and foreign currency.
Carrying out the standing instructions for the
payment of insurance premia ,subscriptions ,Taxes.
CCP504(B).37 10
Ancillary services
1. Performance Guarantee and financial Guarantee
2. Safe custody of deeds, securities
3. Safe deposit vault
4. Purchase and sale of securities
5. Collection of Interest on securities/debentures
6. Collection of Dividend on shares
7. Collection of Pension Bills
CCP504(B).37 11
Ancillary services
1. Remittance of funds –Bank drafts, Mail transfers,
Telegraphic Transfers
2. Credit transfers
3. Credit / Debit cards
4. Personal tax Assistance, preparing Income Tax,
sales Tax, wealth Tax returns
5. Traveler cheques and Gift cheques
CCP504(B).37 12
Summary
Banks have three types of relationship
with its customers. They are:
1. Debtor and Creditor Relationship.
1. Agent and Principal Relationship.
3. Trustee and Beneficiary Relationship.
CCP504(B).37 13
Summary
Banks are providing various types of
Customer Services They are:
1. General utility and Agency Service
1. Issuing Debit Cards and Credit Cards
3. Providing ATMs and Internet Banking etc
CCP504(B).37 14
Quiz
• One of the Relationship between a Banker
and Customer is ?
• Debtor and Creditor
• Employer and Employee
• Government Office
• None
CCP504(B).37 15
Quiz
1. ATM Stands for ?
a) Any Time Meals.
b) Automatic Time Machine.
c) Any Type of Mistake.
d) Automatic Teller Machine.
CCP504(B).37 16
Frequently Asked Questions
What is the relationship between a Banker and a
Customer ?
What are the different services Offered by Modern
Bankers to its Customers ?
CCP504(B).37 17
