SECONDARY FUNCTIONS - 15 Mints Seminar Notes

 SECONDARY FUNCTIONS - 15 Mints Seminar Notes

(ATMs, CARDS, E-BANKING, M-BANKING)

What are the secondary functions of a commercial bank?

                       The secondary functions of a commercial bank are acting as an agent to its customers and also providing general utility services.

 

ATMs

• ATM has been around for quite some time now.
  
• ATMs are useful because they are available 24/7, so customers do not have to wait until bank hours to access their money.
  
• Provides relief for individuals who are constantly on the move.
  
• ATMs are now in many shopping plazas and malls are also inside convenience stores, restaurants, and other high traffic areas, which makes it convenient for customers to access their money.
  
• Customers can use their ATM card at stores where they are accepted, so they do not have to carry cash.
  
• Money cannot be accessed if the person does not know the four-digit PIN security code.
  

DEBIT CARDS

• It is a bank card which is used to make payments from your own bank account.
  
• It was introduced in 1966
  
• They are linked to the cash holders bank account.
  
• They are also accessed with electronic bank account of the card holder.
  
• It is used to conduct online transactions.
  
• It withdraws the balance from your bank account, i.e. it debits your bank account .so if there is insufficient balance in the account and the transaction will be unsuccessful.
  
• There is a magnetic strip in the card which reads the debit card information.
  
• So, recently banks have started issuing chip debit cards due to security concerns.
  
• So chip is considered as safer than the magnetic strip.
  

CREDIT CARDS

• It is a payment cards.
  
• It is also a tool of short-term lending.
  
• Credit card holder can withdraw money beyond the limits of their bank accounts. So they can borrow money from the bank using his/her credit card.
  
• It offers the card holder a line of credit.
  
• The money has to be repaid to the bank with the interest that the bank charges.
  
• So the time of the repayment will depend according to the terms and conditions of the credit card.
  
• And also there is a credit limit on the card. This is the maximum credit the card holder can run up on a card.
  
• It is used for online purchases, purchases at a point of sales to withdraw cash from the ATM.
  
• Credit cards also allow card holder to transfer money to other bank accounts.
  

ONLINE BANKING

• It is primarily used either with a desktop computer or a laptop.
  
• It also shares a few similarities with ATM.
  
• Each allows users to make certain transactions without having any physical step into financial institution.
  
• They are accessible 24/7.
  
• You cannot make a withdrawal or deposit but still you can move money to various accounts.
  
• They also allow customer to pay their bills online instated of using checks.
  

M BANKING

• Online banking and M banking are considered to be siblings.
  
• It requires an internet connection or cellular data coverage.
  
• It is used in conjunction with a smart phones or a tablet which makes it very convenient.
  

 

Presented By,

Pooja

Banking Student

Magme School Of Banking