A study on retail inward & outward remittance in axis bank

1. i



A STUDY ON FOREX RETAIL INWARD & OUTWARD REMITTANCE
IN ‘AXIS BANK LIMITED’


A Summer Training Report submitted to
ISME, BANGALORE
in partial fulfilment of the requirements
for the award of the
POST GRADUATE DIPLOMA IN MANAGEMENT


Submitted by – Harmanjeet singh Sandhu
Your name (151137 )

Under the guidance of
Sudindra (Faculty Guide)
Rachana Tiwari (Industry Guide)



ISME LOGO

International School of Management Excellence
Sy. No. 88, Chembanahalli, Near Dommasandra Circle,
Sarjapur Road,
Bangalore-562125
July 2015
[DOCUMENT SUBTITLE]

International School of Management Excellence
Sy. No. 88, Chembanahalli, Near Dommasandra
Circle, Sarjapur Road,
Bangalore-562125



June 2016

2. ii




CERTIFICATE

This is to certify that the Summer Training Report entitled
“A STUDY ON FOREX RETAIL INWARD & OUTWARD REMITTANCE IN AXIS BANK LIMITED”
, in partial fulfilment of the requirements for the award
of the Post Graduate Diploma in Management is a record of original training
undergone by Harmanjeet singh sandhu ( 151137 ) during the year 2015-2017 of his/her study
at the
International School of Management Excellence, Bangalore under my
supervision and the report has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University.



Place: Bangalore-125 Signature of Guide
Date: 04.06.2016 Your Guide name with qualification and designation


International School of Management Excellence
Bangalore


Countersigned


(Principal)
ISME, Bangalore

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DECLARATION


I, Harmanjeet singh sandhu, hereby declare that the Summer Training Report, entitled
““A STUDY ON FOREX RETAIL INWARD & OUTWARD REMITTANCE IN AXIS BANK LIMITED”” ,
submitted to the
International School of Management Excellence, Bangalore in partial
fulfillment of the requirements for the award of the Post Graduate Diploma in Management
is a record of original training undergone by me during the period
April-June 2016 under the supervision and guidance of
Your Guide name with qualification and designation,
International School of Management Excellence, Bangalore
and it has not formed the basis for the award of any Degree/Fellowship or other
similar title to any candidate of any University.





Place: Bangalore-125 Signature of the Student

Date: 04.06.2016

4. iv





ACKNOWLEDGEMENT


I am extremely thankful to the “designation of the officer under whom you were doing the
project and others who helped you in the organization” for their invaluable support and
guidance in the completion of this project. I wish to thank Mr. Nitin Garg, Director, ISME
Bangalore, for enabling this endeavor. I wish to express my profound gratitude to our Principal
Dr. Swaroop Reddy for their kind permission to take up this project work. I express my heartfelt
thanks to Prof. H. S. Mishra, COC-Placement and his team at ISME, Bangalore who provided all
facilities for carrying out this project.
I immensely thank our Project Guide (Your Guide name with qualification and designation), for
his/her valuable suggestions and for guiding me throughout the work.







Harmanjeet singh sanshu
(151137)

5. v



Contents
CERTIFICATE ...................................................................................................................................... ii
COMPANY CERTIFICATE .......................................................................... Error! Bookmark not defined.
DECLARATION .................................................................................................................................. iii
ACKNOWLEDGEMENT ........................................................................................................................iv
INTRODUCTION ...................................................................................... Error! Bookmark not defined.
COMPANY PROFILE .............................................................................................................................6
FUNCTIONING OF VARIOUS DEPARTMENTS ....................................................................................... 12
WORK ASSIGNED .............................................................................................................................. 17
PROCESS FOLLOWED..................................................................................................................... 17
RESULTS ACHIEVED ....................................................................................................................... 19
CONCLUSIONS, LEARNINGS & SUGGESTIONS...................................................................................... 20
FUTURE POSSIBILITIES....................................................................................................................... 21
BIBLIOGRAPHY ................................................................................................................................. 22

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CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO INTERNSHIP :
An internship is on-the-job training for many management professional aspirants more
often taken up by students during the master degree as a part of partial fulfillment of
graduation to supplement their formal education and expose them to the world of work.
Internships offers various occasion to interns during internship programs to expand
familiarity in their choose area of work , to find out what they have an importance in an
exacting in specific line of business, develop professional network links, build
interpersonal skill or get some credit points.
Through internship there is a possibilities of getting a permanent job where by dual
benefit to company as well as student in terms of less or modest cost. It brings sea
changes in business and academic culture in India, due to increasing presence of MNC,
rapid economic growth, globalization.
1.2 IMORTANCE OF INT ERNSHIP:
 Internship leads to the intern’s individual development through challenging global
environment.
 Internship provides directions and mentoring on specialized area to gain exposure and to
get career consciousness.
 It includes work experiences that go together with classroom learnings
 It builds job related skills, ability to accept challenges.
 It provides real world experience, personal development, networking choices option for
future career prospects.

1.3 OBJECTIVES OF STUDY :
 To understand the working mechanism of various departments, procedures, systems
followed and administration on real time basis.
 To study the flow mechanism of Inward and outward remittances in Banks.

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 To understand the role of forex/Treasury department in bank, the process, systems and
critical issues.
 To understand the documents required for inward and outward remittance.

1.4 SCOPE OF THE STUDY:
 The scope of the study involves, analysis of various functional departments operates in an
organization with department objectives, activities, roles and responsibilities of each
employees in an organization
 The present study involves analysis of banking operations in Byramji town branch of
Axis bank inward and outward remittances, Treasury operations, forex transactions in
axis bank.
 To analyze the customer transactions in forex in axis bank.
 To tap the inward & outward remittance of the bank.
 Duration of the study from 28
th
march 2016 to 2
nd
june .

1.5 MEANING OF CONCEPTS :
Banking in India in the modern sense originated in the last decades of the 18th century. Among
the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-32; and the General Bank of India, established in 1786 but failed in 1791.
Without the sound and effective banking system in india it cannot have a healty economy. The
banking system of india should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factor. For the past three
decades indias banking system has several outstanding achievements to its credit. The most
sriking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in
india . in fact, Indian banking system has reached even to the remote corners of the country . this
is one of the main reasons of Indias growth process.

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9. ix


Nationalized banks in india
Banking system in india is dominated by nationalized banks. The nationalization of banks in
india took place in 1969 by Mrs.Indira Gandhi . the major objective behind nationalization was
to spread banking infrastructure in rural areas and make available cheap finance to Indian
famers. Fourteen banks were nationalized in 1969.
Before 1969, state bank of india was only public sector bank in india. SBI was nationalized in
1955 under the SBI act of 1955. The second phase of nationalization of Indian banks took place
in the year 1980. Seven more banks were nationalized with the deposit over 200 crores.

PRIVATE BANKS
All the banks in india were earlier private banks. They were founded in the pre-independence era
to cater to the banking needs of the people. But after nationalization of banks in 1969 public
sector banks came to occupy dominant role in the banking structure. Private sector banking in
india received a fillip in 1994 when reserve bank of india encouraged setting up to private banks
as part of its policy of liberalization of the Indian banking industry. Housing development
finance corporation limited (HDFC) was amongst the first to receive an ‘In principle’ approval
from the RBI to set up a bank in the private sector.
Private banks have played a major role in the development of Indian banking industry. They
have made banking more efficient and customer friendly. In the process they have jolted public
sector banks out of complacency and forced them to become more competitive.

FOREIGN EXCHANGE
In earlier days we have to think to go from one place to another but noe due to technology we
can now move from one country to other within few hours. Every country have different kinds of
currency. So as we travel or deal in different country we require specified contries currency.
Being in the main force driving the3 global economic market , currency is no doubt an essential

10. x

element for a country . however in order for all the countries to trade with one another , a system
of exchange rate between their currencies is needed this system is formally known as foreign
currency exchange . all aspects of buying , selling & exchange of currency is done by foreign
exchange . FEMA regulates the forex.
The main function of forex is inward & outward remmittance
INWARD REMMITANCE
The inward remittances refer to the case where the money is sent from the foreign countries by
the migrant workers to their friends, families and relatives in India. For sending the inward
remittances, the most popular ways are via bank channels, wire transfer, foreign currency
cheques as well as rupees cheques
OUTWARD REMMITTANCE
The outward remittances refer to the process of sending money in foreign locations from the
home country to your family members, friends or relatives. This procedure is governed by lots of
regulations. The outward remittances in India are done mainly through banks. If you like to do
the outward remittance, you should ensure that you are dealing with the genuine people and
firms because you cannot trust any individual or a financial firm for sending your money. You
need to select a bank that has international footprint and good reputation for making your job
almost effortless.

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CHAPTER 2
COMPANY PROFILE
2.1 About the company
Axis Bank Limited is the third largest private sector bank in India. It is a public company in
banking and finanacial service industry . it was found in 1990 as uti as in 2007 its name changed
to axis bank.the headqaurtes are located at Mumbai Maharashtra india. Website is
www.axisbank.com. Axis Bank has its registered office at Ahmedabad. Shikha Sharma is MD &
CEO of the company. Products of the company are Credit cards, consumer banking, corporate
banking, finance and insurance, investment banking, mortgage loans, private banking, private
equity, wealth management. There are 42500 employees working in bank. Revenue of axis bank
is 44565 crore (US$6.6 billion) in 2015. Net income of axis bank is 7448 crore (US$1.1 billion)
in 2015. Total assests of axis bank is 467242 crore ( US$69 billion) in 2015.axis bank is traded
as BSE: 532215 , LSE: AXBC , NSE: AXISBANK.
Indian Business: As of 22 April 2016, the bank had a network of 3062 branches and extension
counters and 12922 ATMs .Axis Bank has the largest ATM network among private banks in
India and it operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a height of
4,023 meters (13,200 ft) above sea level.
International Business: The Bank has eight international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo

and representative offices at
Dubai and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment
banking and liability businesses. In addition to the above, the Bank has a presence in UK with its
wholly owned subsidiary Axis Bank UK Limited.The total assets of the overseas branches were
US$7.86bn .
Axis Bank's stake holders include prominent national and international entities. As of 31 Dec.
2013, approximately 43% of the shares are owned by Foreign Institutional Investors. Promoters
(UTI, LIC and GIC), who collectively held approx. 34% of the shares, are all entities owned and
controlled by the Government of India. The remaining 23% shares are owned by corporate
bodies, financial institutions and individual investors among others
Unit : Axis bank limited,Nelson square,Nagpur-440017Tel :

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The corporate office :Axis bank limitedCorporate officeBombay dyeing mill compound
Worli,Mumbai – 4400025Tel : [phone]

2.2 VISION & MISSION
Mission
 Progressive globalization and achieving international standards.
 Customer service and product innovation tuned to diverse needs of individual and
corporate clients.
 Continuous technology up grading while maintaining human values.
 Customer satisfaction through providing quality service effectively and efficiently.
Vision
 To be the preferred financial solutions provider excelling in customer delivery through
insight, empowered employees and smart use of technology & to become no.1 bank.
2.3 PRODUCT RANGE
1.Accounts–
 saving accounts
 current account
 youth account
 basic saving account
 demat account
 priority account,etc.
2. Deposits –
 fixed deposit
 recurring deposit
 encash24
 tax saver fixed deposit.

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3.loans offered by axis bank -
 Home loan
 Car loan
 Personal loan
 Loan against shares
 Loan against gold
 Education loan
4.Cards offered by axis bank
 Credit cards – platinum credit card,easy credit card,silver credit card,eshop card
 Debit card – priority debit card,gold plus debit card,business gold debit card,classic debit
card
 Prepaid cards – travel currency card,payroll card,gift card,reward card,meal card,annuity
card,remittance card.

5. forex offered by axis bank
 Outward remittance
 Inward remmitance
 Travel currency card
 Foreign currency traveler cheque.
 Foreign currency exchange
 India travel card

6. investment services offered by axis bank
 Gold mohrus
 Silver mohurs
 Mutual fund
 Online trading
 Demat accunt

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7.insurance services offered by axis bank
 Life insurance
 Home insurance
 Motor insurance
 Health insurance
 Travel insurance
8. other services
 Bill pay
 Direct tax payment
 Online shopping
 E-statement
2.4 size of the company
Company Name
Net Sales
(Rs. cr)
ICICI Bank 49,091.14
HDFC Bank 48,469.90
Axis Bank 35,478.60
Yes Bank 13,533.44
Kotak Mahindra 9,719.87
IndusInd Bank 9,691.96
Federal Bank 7,419.47
JK Bank 7,061.13
Karur Vysya 5,395.88
South Ind Bk 5,286.22

15. xv


Sources: http://www.moneycontrol.com/stocks/marketinfo/netsales/bse/banks-private-
sector.html
Inference: Axis bank stands at 3
rd
place in terms of turnover among various banks in India.


Table 2.2 Table showing size of AXIS bank in terms of number of employees



Sources: Business standard
Inference: during 2015 AXIS bank employess strength reduced, over 5 years.

16. xvi

2.5 MARKET SHARE AND POSITION OF THE COMPANY :
COMPANY NAME
LAST
PRICE
%
CHANGE
52 WK
HIGH
52 WK
LOW
MARKET
CAP
HDFC Bank 1174.50 -0.06 1194.80 928.80 297,058.54
ICICI Bank 241.85 0.73 321.00 180.80 140,662.07
Kotak Mahindra 743.20 -0.28 754.90 586.50 136,361.60
Axis Bank 523.50 1.98 613.40 366.65 124,901.33
IndusInd Bank 1111.30 0.70 1112.00 799.00 66,148.20

17. xvii

CHAPTER 3
FUNCTIONS OF VARIOUS DEPARTMENT
3.1 FOREX DEPARTMENT

3.1.1 DEPARTMENT OBJECTIVE: to ensure the customer forex transactions are
smooth in all respect, to satisfy customer as well as generate profit for bank and to
meet statutory requirement.

3.1.2 DEPARTMENT ST RUCTURE


3.1.3 ACTIVITIES OF FOREX DEPARTMENT:
 To understand the customer requirements
 Providing services on forex currency, completing legal formalities
 Collecting necessary documents and completing application process
 Verifying all the statutory requirement
 Sending the file to next level for auditing


3.2 RTGS/NEFT DEPARTMENT
3.2.1 DEPARTMENT OBJECTIVE: To satisfy the customer by doing rtgs and neft.
MANAGER-
TREASURY
OPERATIONS
ASSISTANT
MANAGER
CLEARING
ASSISTANT OPERATION
MANAGER
AUDITING

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3.2.2 DEPARTMENT STRUCTURE


3.2.3 ACTIVIES OF RTGS & NEFT
 Checking the cheque and slip by z check.
 It it is proper accepting it by giving stamped acknowledgement to customer.
 Entry on the internal software(finacle)
 Sending it to another level for further process.

3.3 SALES DEPARTMENT

3.3.1 Objective of department – to make maximum customer & satisfy there needs.

3.3.2 Structure of department


3.3.3 Activites of sales department
 To understand the customer requirement
OPERATIONS
HEAD
Z CHECK
VERIFICATION
MANAGER
DATAENTRY
BRANCH
SALES
MANAGER
FORMFILLING
VERIFICATION
MANAGER
DATAENTRY

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 To verify the form filled by the customers
 To verify documents of customers.
 Documents are Send to higher authority to open the account.


3.4 DD/TRANSFER DESK

3.4.1 DEPARTMENT OBJECTIVE - To satisfy customer needs and give them proper service.

3.4.2 Structure of the department



3.4.3 Activities of department
 To know about the customer need.
 Checking the cheque & slip and giving them acknowledgement with stamp on it.
 Entering the data in the system.
 Sending it to higher level for verification & signature.

3.5 CASH COUNTER

3.5.1 Objective of department – To do the work very fast and with maximum accuracy.




3.5.2 STRUCTURE OF THE DEPARTMENT

OPERATION
HEAD
DOCUMENT
VERIFICATION
OPERATION
MANAGER
DATAENTRY

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3.5.3 ACTIVITES OF THE DEPARTMENT
 Accepting the cash from the customers who deposit it.
 Giving the cash to that customer who wants to withdraw.
 Doing the work very carefully.
 Calculation & tally cash daily
 Data entry of every transaction.

3.6 CLEARING DEPARTMENT

3.6.1 OBJECTIVE OF THE DEPARTMENT – To recive inward clearing & giving the best
service to the customer.

3.6.2 Structure of the department





OPERATION
HEAD
ACCETPNG &
GIVING CASH
CASHIER
DATAENTRY
OPERATION
HEAD
Z CHECK
ASSISTANT
OPERATION
MANAGER
DATAENTRY

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3.6.3 Activities of the department
 Accepting the cheque and slip by the customer.
 Doing the z check.
 Data entry on excel.
 Send for clearing in the service office.

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CHAPTER 4
WORK ASSIGNED

4.1 PROCESS FOLLOWED
ASSIGNEMNT 1: 2 weeks RTGS & NEFT DESK




Assignment 2 :1 week for DD/ TRANSFER DESK.

receipt of
RTGS/neft
request
checking account
no. signature,
authenticity
•NO
is it meeting as
per bank norms
•yes
SEND APPROVAL
OF TRANSACTION
Sending to the higher authority for futher process.
Giving ackowledgement to customer with stamp
Doing the Z check -date , account no, ammount, signature.
Receipt for DD & transfer request.

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Assignment 3 – 5 weeks in forex department
There are two type of transaction in forex inward & outward remittance.

Process of inward remittance


Process of Outward remmitance

1
•Daily inward remittance comes in internal software(ARC) in the form of
swift messeage and M103.
2
•The documents is taken and check that all details are correct or not.
3
•The customer submits the disposal instruction given by the bank.
4
•All the documents and form are check once again and then it is handover to
higher authority for rate booking and further process.
Then documents are verified and it is given to higher authority for futher process.
Then documents like A1 or A2 form is taken from customer and attact it with
documents
If customer is staisfed with the rate then outward remittance form is given to them
and ask them to fill it.
Customer ask for the rate it the amount is less then 5 lacks then card rate is given
which is send in morning daily and it the amount is more then 5 kacks then live rate is
given.

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4.2 Result achieved
1. Learnt about how banking operations are done.
2. Understand that which documents is required foe forex transaction.
3. Done RTGS/NEFT process and send it to higher authority for further process.
4. Verified the documents of inward & outward remittance.
5. Checked the slip and cheque of transfer and gave acknowledgement to customers.
6. Arranged the receipts and payment of the bank in sequence order.
7. Data entry on excel of inward clearing.
8. Setting up the ATM pin of customers.
9. Have good knowledge about the process of banking operations.
10. Come to know about the internal softwares used by the bank.

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Chapter 5
CONCLUSIONS, LEARNINGS & SUGGESTIONS
5.1 CONCLUSIONS:
 Inward and outward department is most essential for banking.
 The study was mainly on how customer uses facility of forex in the axis bank.
 Forex department is major sources of revenue for bank. Bank makes heavy profit due to
spread etc. etc… some of the conclusion of your learning.
 In this study I found that the bound of axis bank with its customers is very strong,
because axis bank mainly focuses on retaining their customers.
 Trade forex transaction of inward remittance is much more then the outward remittance..
 Bank should make more forex customer because facility is there is the branch so to raise
more profit they should make more forex customers.
 Through the study conclude that customers are treated as friendly and problem is solve
quickly.

5.2 LEARNINGS:
 Knowing how to fulfill tasks relevant to your desired career path
 How to navigate the working world in real life, working in office environment.
 Reference for future job
 Industry connections which provides guidances, advice, future job search.
 Understand the functioning of various departments,
 More confidence in career guidance,
 Business etiquette, disciplined, professionalism attitude
 Ability to work under deadline, feedback and improvement for future.

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Chapter 6
Future possibilities

 Banking is a vast growing sector. it’s a new age banking there are lot of opportunities to
have the advance technicalities in banking solutions.
 No of forex customers are increasing day by day so that they will have a large forex
customer base.
 No of branches and ATM are increasing rapidly.
 The assets in their international operations are growing at a very faster pace with the
growth rate of 9%.
 As now the world is becoming globalized so people are dealing with different countries
that’s why in future there is very vast scope of foreign exchange.

27. xxvii


Chapter 7
BIBLIOGRAPHY

 www.axisbank.com
 www.economitimes.com
 www.rbi.org
 http://www.businessinsider.in/8-things-to-take-away-from-your-summer-internship-that-
will-help-you-land-a-job-in-the-future/articleshow/48702717.cms