INVESTMENT BANKING

Functions of investment bank Raising capital Brokerage services on behalf of customers Proprietary trading on own money to make profit. Research activities Sales & trading

Need for regulation and supervision of banks Safety and soundness of financial institutions. Compliance with consumer protection laws. Objectives of banking regulation Protect the depositors Risk reduction Avoid misuse of banks Protect confidentiality

Principles of banking regulations Minimum requirement of maintaining ratios Supervisory review for compliance with requirement, imposing penalty, revoke bank license. Market discipline – disclose financial and other information like market pricing Reasons of regulations Safety and soundness Monetary stability Protect consumers- no biases on gender, age, location Maintain integrity

Banking supervision Taking action if performance of bank is poor. Compliance with legal framework Compliance with best banking practices Financial data Bank’s management structure Comparison of bank’s condition Need for supervision To protect depositors To prevent abuse of financial institutions by money lenders.

Regulations by RBI Nature of business Licensing Capital requirement KYC Advances CRR SLR Rate of interest

Types of accounts , services and financial inclusion Banking operations Customers identification and introduction Procedure to open a bank account KYC( identity , address proof, source of fund, volume of transactions, identify suspicious transaction, PAN card…if that is correct then account is opened) Nominations (depositor nominates a person in event of death, amount may be paid by the bank and right to receive deposit money)

Account operations ( savings are maintained for salary, payment etc Account operations ( savings are maintained for salary, payment etc., and current account is maintained for business . There may be request for transfer of account, deletion, addition of name, closure of account) Closing of a bank account( relation may be terminated by either parties by giving notice. Cash Operations Opening cash Cash receipt Cash payment Closing cash Remittances

Service channel’s operations ATM Phone banking Internet banking Mobile banking

Types of accounts savings Current Term deposit Fixed deposit Recurring deposit Hybrid deposit others