The bank is a financial institution that is licensed and regulated by Regulator i.e., Reserve Bank of India to receive deposits and make loans. Banking services that are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.
The changing role of banks in India can be overviewed in points depicted below.
The Indian banking sector has seen unprecedented growth along with remarkable improvement in its quality of assets and efficiency since 1991 due to LPG Policy (Liberalisation Privatisation and Globalisation Policy) adopted by Government
From providing traditional banking services such as borrowing and lending, banks have gradually transformed themselves into universal banks by providing services like ATMs, Internet banking, mobile banking, and social banking.
Typical Retail Banking offered by Banks include
- Transactional accounts.
- Savings accounts.
- Debit cards.
- ATM cards.
- Credit cards.
- Traveler’s cheques.
- Home equity loans.
- Personal loans.
- Certificates of deposit/Term deposits.
The rationale for having Banking Agents:-
Benefits of banking Agents:-
For clients, Banking Agents help in lowering transaction cost as Banking agents are closer to clientâ€™s home; longer opening hours, shorter lines than in branches, more accessible for illiterates and the very poor especially for them who might feel intimidated in branches. For agents, Banking Agents help in increased sales by increasing the Customer base through additional foot-traffic, differentiation from other businesses, reputation from affiliation with a well-known financial institution as well as additional revenue from commissions and incentives. Financial institutions also get benefitted by increased customer base and market share; Increased coverage and penetration with a low-cost solution in areas with potentially less number and volume of transactions; increased revenue from additional investment, interest, and fee income; improved indirect branch productivity by reducing congestion.