Abhishek internship report a the kkr bank

banking

1. A
Training report
On
‘Banking operation of the KCCB Bank’
For the training undergone at
‘The Kurukshetra Central Co-operative Bank Ltd.
Dhurala branch Kurukshetra’
Under the Supervision of
Dr. Ajay Kumar
For the partial fulfillment of the award of degree of B.COM
Submitted by
Abhishek
B.COM 2
nd
Sem.
Roll. No. C-724
KUK Regn. No. 24-DDK-143
Submitted to





DRONACHARYA DEGREE COLLEGE KURUKSHETRA
Affiliated to Kurukshetra University Kurukshetra
Period (July- August)

2. DECLARATION

I Abhishek, Roll No. C-724, Class B.COM – 2nd Semester of
KURUKSHETRA UNIVERSITY KURUKSHETRA OF
DRONACHARYA DEGREE COLLEGE , hereby declare that the
summer TRAINING PROFILE PRESENATATION entitled THE
KURUKSHETRA CENTERAL COOPERARIVE BANK LTD.
KURUKSHETRA DHURALA BRANCH is an original work done by
me and the information provided in the study is authentic to the best of my
knowledge and belief. This study has not been submitted to any other
institute or university for the award of any degree or for any purpose.








(Abhishek)
Roll No. C-724
Semester 2nd

3. Certificate
“Certified that this Internship report is an original
report of work done by me under the guidance of
Internship Mentor Mr./Mrs./Dr. _______________
and under the supervision of Internship Supervisor
Mr./Mrs./Dr. _______________ submitted as a part
of the Internship Course of Undergraduate
Programme of Kurukshetra University, Kurukshetra”.


Signature of the student

Countersigned
(Internship Supervisor)



Date

4. Acknowledgement
First of all I thank my department who provided me this
opportunity. I want to thanks to all those who guided me to
move on the track. I am gratefully indebted to the Director
for providing me all the necessary help and requirement
guidelines for the completion of my report and also for the
valuable time that he gave me from his schedule.


(Abhishek)
Roll No. C-724
Semester 2
nd

5. Chapter 1
INTRODUCTION
A. Banking in India
Finance is the lifeblood of trade, commerce, and industry.
Nowadays, the banking sector acts as the backbone of modern
business. The development of any country largely depends on the
banking system. An organization, usually a corporation chartered
by a state or federal government, typically performs one or more of
the following functions:
 Receives demand and time deposits
 Honors instruments drawn on them and pays interest
 Issues notes and makes loans
 Invests in securities
 Collects checks, drafts, and notes
 Certifies depositors’ checks
 Issues drafts and cashier’s checks
The term "bank" is derived from the French word Banco, which
means a bench or money exchange table. In earlier times, European
moneylenders or money changers used to display coins of various
countries in large quantities on benches or tables for the purpose of
lending or exchanging. A bank is a financial institution that deals
with deposits, advances, and related services. It collects money
from those who wish to save and lends it to those who need it.
(b) Meaning of Bank
The term "bank" is derived from the French word Banco, meaning
a bench or money exchange table. Historically, European
moneylenders or money changers used to display coins of various

6. countries in large quantities on benches or tables for the purpose of
lending or exchanging
(c) Definition of bank
Oxford Dictionary defines a bank as "an establishment for
custody of money, which it pays out on customer's order."
(d) Features of bank
1. Dealing in Money
Bank is a financial institution which deals with other people's
money i.e. money given by depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company
means a company which is in the business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits
which are usually repayable on demand or after the expiry of a
fixed period. It gives safety to the deposits of its customers. It also
acts as a custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require
it for different purposes.
5. Payment and Withdrawal
A bank provides easy payment and withdrawal facility to its
customers in the form of cheques and drafts; it also brings bank
money in circulation. This money is in the form of cheques, drafts,
etc.
6. Agency and Utility Services
A bank provides various banking facilities to its customers. They
include general utility services and agency services.

7. 7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented
approach.
8. Ever increasing Functions
Banking is an evolutionary concept. There is continuous expansion
and diversification as regards the functions, services and activities
of a bank.
9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of
money. Banks collect money from those who have surplus money
and give the same to those who are in need of money.
10. Banking Business
A bank’s main activity should be to do business of banking which
should not be subsidiary to any other business.
11. Name Identity
A bank should always add the word “bank” to its name to enable
people to know that it is a bank and that it is dealing in money.
E. Types of banks
Type 1. Saving Banks
Saving banks are established to create saving habit among the
people. These banks are helpful for salaried people and low income
groups. The deposits collected from customers are invested in
bonds, securities, etc. At present most of the commercial banks
carry the functions of savings banks. Postal department also
performs the functions of saving bank.
Type 2. Commercial Banks
Commercial banks are established with an objective to help
businessmen. These banks collect money from general public and give

8. short-term loans to businessmen by way of cash credits, overdrafts, etc.
Commercial banks provide various services like collecting cheques, bill
of exchange, and remittance money from one place to another place.
In India, commercial banks are established under Companies Act,
1956. In 1969, 14 commercial banks were nationalized by
Government of India. The policies regarding deposits, loans, rate of
interest, etc. of these banks are controlled by the Central Bank.
Type 3. Industrial Banks / Development Banks
Industrial / Development banks collect cash by issuing shares &
debentures and providing long-term loans to industries. The main
objective of these banks is to provide long-term loans for
expansion and modernization of industries.
In India such banks are established on a large scale after
independence. They are Industrial Finance Corporation of India
(IFCI), Industrial Credit and Investment Corporation of India
(ICICI) and Industrial Development Bank of India (IDBI).
Type 4. Land Mortgage / Land Development Banks
Land Mortgage or Land Development banks are also known as
Agricultural Banks because these are formed to finance agricultural
sector. They also help in land development.
In India, Government has come forward to assist these banks. The
Government has guaranteed the debentures issued by such banks.
There is a great risk involved in the financing of agriculture and
generally commercial banks do not take much interest in financing
agricultural sector.
Type 5. Indigenous Banks
Indigenous banks mean Money Lenders and Sahukars. They collect
deposits from general public and grant loans to the needy persons
out of their own funds as well as from deposits. These indigenous
banks are popular in villages and small towns. They perform
combined functions of trading and banking activities. Certain well-

9. known Indian communities like Marwari’s and Multan even today
run specialized indigenous banks.
Type 6. Central / Federal / National Bank
Every country of the world has a central bank. In India, Reserve
Bank of India, in U.S.A., Federal Reserve and in U.K., Bank of
England. These central banks are the bankers of the other banks.
They provide specialized functions i.e. issue of paper currency,
working as bankers of government, supervising and controlling
foreign exchange. A central bank is a non-profit making institution.
It does not deal with the public but it deals with other banks. The
principal responsibility of Central Bank is thorough control on
currency of a country.
Type 7. Co-operative Banks
In India, Co-operative banks are registered under the Co-operative
Societies Act, 1912. They generally give credit facilities to small
farmers, salaried employees, small-scale industries, etc. Co-
operative Banks are available in rural as well as in urban areas. The
functions of these banks are just similar to commercial banks.
Type 8. Exchange Banks
Hong Kong Bank, Bank of Tokyo, Bank of America are the
examples of Foreign Banks working in India. These banks are
mainly concerned with financing foreign trade.
Following are the various functions of Exchange Banks:–
 Remitting money from one country to another country,
 Discounting of foreign bills,
 Buying and Selling Gold and Silver, and
 Helping Import and Export Trade.
Type 9. Consumers Banks
Consumers bank is a new addition to the existing type of banks.
Such banks are usually found only in advanced countries like
U.S.A. and Germany. The main objective of this bank is to give
loans to consumers for purchase of the durables like Motor car,

10. television set, washing machine, furniture, etc. The consumers have
to repay the loans in easy installments.
There are two main categories of the co-operative banks.
(1) Short term lending oriented co-operative Banks – Within
this category there are three sub categories of banks viz:
 State co-operative banks
 District co-operative banks
 Primary Agricultural co-operative societies
(2) Long term lending oriented co-operative Banks – Within the
second category there are:
 State co-operatives
 Rural development banks
The co-operative banking structure in India is divided into the
following main 5 categories:


The co-operative
banking structure in
India
Primary
Agricultural
Credit Societies
State Co-op
Banks
District Central
Co-op
Banks
Land
Development
Banks
Primary Urban
Co-op Banks

11. Primary Agricultural Credit Societies:
The Primary Co-operative Credit Society is an association of
borrowers and non-borrowers residing in a particular locality. The
funds of the society are derived from the share capital and deposits
of members and loans from central co-operative banks.
The borrowing powers of the members as well as of the society are
fixed. The loans are given to members for the purchase of cattle,
fodder, fertilizers, pesticides, implements, etc.
District Central Co-op Banks:
These are the federations of primary credit societies in a district
and are of two types – those having a membership of primary
societies only and those having membership of societies as well as
individuals.
The funds of the bank consist of share capital, deposits,
loans and overdrafts from state co-operative banks and joint
stocks. These banks finance member societies within the
limits of the borrowing capacity of societies. They also
conduct all the business of a joint stock bank.
State Co-operative Banks:
The state co-operative bank is a federation of central co-operative
banks and acts as a watchdog of the co-operative banking structure
in the state. Its funds are obtained from share capital, deposits,
loans and overdrafts from the Reserve Bank of India.
The state co-operative banks lend money to central co-operative
banks and primary societies and not directly to farmers.

12. Land Development Banks:
The land development banks are organized in 3 tiers namely, state,
central and primary level and they meet the long-term credit
requirements of the farmers for developmental purposes. The state
land development bank oversees the primary land development..
Primary Agricultural Credit Societies:
The Primary Co-operative Credit Society is an association of
borrowers and non-borrowers residing in a particular locality. The
funds of the society are derived from the share capital and deposits
of members and loans from central co-operative banks.
The borrowing powers of the members as well as of the society are
fixed. The loans are given to members for the purchase of cattle,
fodder, fertilizers, pesticides, implements, etc.
District Central Co-op Banks:
These are the federations of primary credit societies in a district
and are of two types – those having a membership of primary
societies only and those having membership of societies as well as
individuals.
The funds of the bank consist of share capital, deposits, loans and
overdrafts from state co-operative banks and joint stocks. These
banks finance member societies within the limits of the borrowing
capacity of societies. They also conduct all the business of a joint
stock bank.
State Co-operative Banks:
The state co-operative bank is a federation of central co-operative
banks and acts as a watchdog of the co-operative banking structure

13. in the state. Its funds are obtained from share capital, deposits,
loans and overdrafts from the Reserve Bank of India.
The state co-operative banks lend money to central co-operative
banks and primary societies and not directly to farmers.
Land Development Banks:
The land development banks are organized in 3 tiers namely, state,
central and primary level and they meet the long-term credit
requirements of the farmers for developmental purposes. The state
land development bank oversees the primary land development
banks situated in the districts and tehsils in the state. They are
governed both by the state government and Reserve Bank of India.
Recently, the supervision of land development banks has been
assumed by National Bank for Agriculture and Rural
Development (NABARD). The sources of funds for these banks
are the debentures subscribed by both central and state government.
These banks do not accept deposits from the general public.

Chapter 2
THE KURUKSHETRA CENTRAL CO -OPERATIVE
BANK
A. Introduction
According to the International Co-operative Alliance Statement of
co-operative identity, a co-operative is an autonomous association
of persons united voluntarily to meet their common economic,
social, and cultural needs and aspirations through a jointly-owned
and democratically-controlled enterprise. Co-operatives are based
on the values of self-help, self-responsibility, democracy, equality,
equity and solidarity. In the tradition of their founders, co-operative

14. members believe in the ethical values of honesty, openness, social
responsibility and caring for others.
The 7 co-operative principles are:
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training and information
6. Co-operation among Co-operatives
7. Concern for Community
A co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the customers
of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a
common interest. Co-operative banks generally provide their
members with a wide range of banking and financial services
(loans, deposits, banking accounts...).
Co-operative banks differ from stockholder banks by their
organization, their goals, their values and their governance. In most
countries, they are supervised and controlled by banking authorities
and have to respect prudential banking regulations, which put them
at a level playing field with stockholder banks. Depending on
countries, this control and supervision can be implemented directly
by state entities or delegated to a co-operative federation or central
body.
Even if their organizational rules can vary according to their
respective national legislations, co-operative banks share common
features:
Customer’s owned entities: in a co-operative bank, the needs of
the customers meet the needs of the owners, as co-operative bank
members

15.  are both. As a consequence, the first aim of a co-operative bank
is not to maximize profits but to provide the best possible
products and services to its members. Some co-operative banks
only operate with their members but most of them also admit
non-member clients to benefit from their banking and financial
services.
 Democratic member control: co-operative banks are owned and
controlled by their members, who democratically elect the board
of directors. Members usually have equal voting rights,
according to the co-operative principle of “one person, one vote”.
 Profit allocation: in a co-operative bank, a significant part of
the yearly profit, benefits or surplus is usually allocated to
constitute reserves. A part of this profit can also be distributed
to the co-operative.
 B. Branches & District Central Co-operative Banks

Chandigarh
Sr.
No.
Branch Phone
Number
1. The Haryana State Cooperative Apex Bank Limited, SCO
78-80, Sector 17-B, Chandigarh
0172-2721026
2. The Haryana State Cooperative Apex Bank Limited, Sector
15-B, Chandigarh
0172-2771315
3. The Haryana State Cooperative Apex Bank Limited, Sector
19-D, Chandigarh
0172-2773077
4. The Haryana State Cooperative Apex Bank Limited, Hry.
Civil Sect, Chandigarh
0172-2741604
5. The Haryana State Cooperative Apex Bank Limited,
Manimajra, Chandigarh
0172-2739319
6. The Haryana State Cooperative Apex Bank Limited, Sector
20-D, Chandigarh
0172-2706557
7. The Haryana State Cooperative Apex Bank Limited, Sector
34, Chandigarh
0172-2666672
8. The Haryana State Cooperative Apex Bank Limited, Sector
44, Chandigarh
0172-2609540
9. The Haryana State Cooperative Apex Bank Limited, Ext. 0172-2713908

16. Counter, New Sect, Chandigarh
10. The Haryana State Cooperative Apex Bank Limited, Sector
28, Chandigarh
0172-2651634


Panchkula Branches
Sr.
No.
Branch Phone
Number
1. The Haryana State Cooperative Apex Bank Limited, Sector
9, Panchkula
0172-2560178
2. The Haryana State Cooperative Apex Bank Limited, Ext.
Counter, HSAMB Complex, Panchkula
0172-2563934
3. The Haryana State Cooperative Apex Bank Limited, Sector
4, Panchkula
0172-2566406
4. The Haryana State Cooperative Apex Bank Limited, Sector
11, Panchkula
0172-2566365
5. The Haryana State Cooperative Apex Bank Limited, Sector
15, Panchkula
0172-2566405
6. The Haryana State Cooperative Apex Bank Limited 0172-2573871

District Central Co-operative Banks
Sr.
No.
Branch Phone
Number
FAX
1. The Ambala Central Cooperative Bank
LTD.
0171-2530101 0171-2530347
2. The Bhiwani Central Cooperative Bank
LTD.
01664-244102 01664-244102
3. The Faridabad Central Cooperative Bank
LTD.
0129-2280108 0129-2280108
4. The Fatehabad Central Cooperative Bank
LTD.
01667-226412 01667-221406
5. The Gurgaon Central Cooperative Bank
LTD.
0124-2323476 0124-2333076
6. The Hisar Central Cooperative Bank LTD. 01662-236964 01662-255205
7. The Jind Central Cooperative Bank LTD. 01681-245872 01681-245179
8. The Jhajjar Central Cooperative Bank LTD. 01251-256262 01251-256262
9. The Kaithal Central Cooperative Bank
LTD.
01746-234048 01746-232058

17. 10. The Kurukshetra Central Cooperative Bank
LTD.
01744-290643 01744-292447
11. The Karnal Central Cooperative Bank LTD. 0184-2251424 0184-2251424
12. The Mahendragarh Central Cooperative
Bank LTD.
01285-220195 01285-220135
13. The Rewari Central Cooperative Bank LTD. 01274-220800 01274-220790
14. The Panchkula Central Cooperative Bank
LTD.
0172-2569034 0172-2571961
15. The Panipat Central Cooperative Bank
LTD.
0180-2650138 0180-2650138
16. The Rohtak Central Cooperative Bank LTD. 01262-254484 01262-254484
17. The Sirsa Central Cooperative Bank LTD. 01666-224258 01666-247763
18. The Sonipat Central Cooperative Bank
LTD.
0130-2242527 0130-2242527
19. The Yamunanagar Central Cooperative
Bank LTD.
01732-262050 01732-262050
Saving Accounts in India
Saving accounts are opened to encourage people to save and collect
their savings. In India, a saving account can be opened by
depositing an amount ranging from Rs. 100 (approx. US $2.19) to
Rs. 500 (approx. US $11).
 Account holders are permitted to withdraw money two to
three times per week.
 The interest on saving accounts is usually nominal, though
sometimes attractive.
 As of now, the interest rate is 3.50% p.a. in India, subject to
deposit amount, maturity, and banking trends.
(ii). Features of Saving Account
The main characteristics of a saving account are:
1. To promote savings.
2. No restriction on the number or amount of deposits.
3. Withdrawals allowed under certain restrictions.

18. 4. Withdrawals can be done via cheque or slip.
5. Nominal interest rate (around 3.50% p.a.).
6. No fixed term (continual in nature).
7. A minimum balance must be maintained.
8. No loan facility against saving accounts.
(iii). Advantages of Saving Account
The benefits of having a saving account include:
1. Encourages a saving habit (especially among salaried/fixed
income individuals).
2. Interest-earning opportunity for depositors.
3. Enables payments through cheques.
4. Access to multiple banking services.
Opening of Saving Bank Account (Rules under HRCO
Banks):
1. Any person approved by the bank can open a saving account
after agreeing to the rules.
2. Only one saving bank account can be opened.
3. Can be opened in one's own name.
4. Can be opened jointly with more than one person.
5. Minors (14+ years) who can read and write may open an
account.
6. Natural guardians (father/mother) or court-appointed
guardians can open accounts for minors.
7. A minimum deposit of Rs. 500 (in cash) is required to open
an account. If the balance falls below Rs. 500, the bank may
close the account at its discretion.
8. Interest rate is 3.50% per annum.
II. Current Bank Account
i. Meaning:

19.  Meant for businessmen or those with frequent transactions
(deposits & withdrawals).
 Also called Demand Deposit Account.
 Available in co-operative and commercial banks.
 Allows unrestricted deposits and withdrawals at any time
without notice.
 Ideal for:
o Making payments to creditors via cheques.
o Depositing cheques received from customers.
 Can be opened by depositing between Rs. 500 (US $11) and
Rs. 1,000 (US $22).
 Withdrawals allowed through cheques.
 Generally no interest is paid, but co-operative banks may
offer up to 1% interest.
 Major benefit: Overdraft facility for account holders.
(ii) Features of Current Bank Account
The main features of current bank accounts are:
1. The main objective is to enable businessmen to conduct
transactions smoothly.
2. No restriction on the number or amount of deposits, or on
withdrawals.
3. Generally, no interest is paid on current accounts. However,
some banks may now offer interest.
4. It is a continuing account — there is no fixed maturity
period.
(iii). Advantages of Current Bank Account
The key advantages are:
1. Enables smooth business transactions.
2. Allows unlimited withdrawals at any time.
3. Facilitates direct payments to creditors via cheques.

20. 4. Bank collects money on behalf of customers and credits their
accounts.
5. Provides overdraft facility to the account holder.
6. Creditors can access creditworthiness of the account holder
through inter-bank communication.
7. Contributes to industrial growth — helps businessmen
efficiently manage operations.
Opening of Current Bank Account (Rules at HRCO
Banks)
1. Any person approved by the bank can open a current account
after agreeing to the applicable rules and regulations.
2. A person intending to open an account must be properly
introduced to the bank by someone already known to the
bank.
3. The account can be opened by a person who has attained
majority.
4. Can also be opened jointly by more than one person,
including Joint Hindu Families.
5. Also available to clubs, societies, trusts, executors,
administrators, liquidators, government and semi-
government bodies, etc.
6. Minimum opening balance is Rs. 5000 in cash. A fee of Rs.
50 per transaction is charged if the balance falls below Rs.
5000.
7. No interest will be allowed on current bank accounts.
III. What is Recurring Deposit Account?
Meaning
A Recurring Deposit (RD) Account is generally opened with a
future goal in mind — such as:
 Wedding expenses

21.  Purchase of land or luxury items (e.g., car, refrigerator, air
conditioner)
Key points:
 It is ideal for people who want to save regularly for a fixed
period.
 It typically earns a higher interest rate than savings accounts.
 A fixed amount is deposited every month.
 The total deposit is returned with interest after the fixed term.
Features of Recurring Deposit Account
The main features are:
1. The primary objective is to develop regular saving habits
among the public.
2. In India, the minimum deposit can be as low as Rs. 10 at
regular intervals.
3. The deposit period ranges from a minimum of 6 months to a
maximum of 10 years.
4. The rate of interest is comparatively higher than savings or
current accounts.
5. Withdrawals are not permitted before maturity. However,
the bank may allow early closure under special conditions.
6. Loan facility is available. Up to 75% of the deposited
amount can be availed as a loan by the account holder.
Advantages of Recurring Deposit Account
1. Encourages regular savings habits among people.
2. Offers loan facility to account holders.
3. Banks can use the funds to lend to businessmen.
4. Banks may also invest such funds in profitable areas.
(IV). Fixed Deposit Account – Bank

22. Meaning
A Fixed Deposit (FD) Account is opened for a specific time
period by depositing a fixed amount of money. It is also referred to
as a Term Deposit Account.
 The money deposited is locked in for a period like 6 months,
1 year, 5 years, or even 10 years.
 Withdrawals are not allowed before maturity, unless under
special permission.
 The interest rate depends on the amount, period, and
individual bank policies.

Features of Fixed Deposit Account
1. The main purpose is to enable individuals to earn a higher
interest rate on their surplus funds (extra money).
2. The amount can be deposited only once. For further deposits,
separate accounts must be opened.
3. Deposit period ranges from 15 days to 10 years.
4. A high interest rate is offered, though it may vary by
amount, period, and bank policy.
5. Withdrawals are not allowed before maturity. In
emergencies, premature closure is permitted, but banks may
deduct 1% from the interest.
6. A fixed deposit receipt is issued, which must be produced at
maturity. The deposit can be renewed.
Advantages of Fixed Deposit Account
1. Encourages long-term savings habits.
2. Offers a high interest rate.
3. Provides access to loan facilities.
4. Maturity amount can be used to purchase assets.
5. Funds are available to the bank for a longer period.

23. 6. Banks can lend such funds for short-term business loans.
7. Indirectly boosts the economic development of the country.
8. Banks can invest these funds in profitable ventures.
Opening of Fixed Deposit Account (Rules at HARCO
Bank):
1. Any person approved by the bank may open the account by
agreeing to the governing rules.
2. Only one savings bank account may be opened.
3. The account must be in the person's own name.
4. Joint accounts may be opened by more than one person.
5. An account may be opened by a minor (above 14 years of
age) who can read and write.
6. A natural guardian (father or mother) or a court-appointed
guardian can open an account on behalf of a minor.
7. Minimum amount required to open an account is Rs. 500
(cash only). Balance must be maintained above Rs. 500 to
keep the account active. If not, the account may be closed at
the bank’s discretion.
8. Interest rate: 3.50% per annum.
B. Difference between Fixed Deposit (FD) and Recurring
Deposit (RD)
When choosing a deposit scheme, many people struggle to decide
between FD and RD. Here’s a helpful comparison:
Fixed Deposit (FD)
 Ideal for individuals with a lump sum to invest.
 Interest depends on maturity period — longer periods offer
higher interest.
 Returns can be taken monthly, quarterly, half-yearly,
yearly, or in a lump sum at maturity.

24.  Premature/partial withdrawal is allowed with penalties,
which vary by bank.
 If interest exceeds Rs. 10,000/year, a TDS (Tax Deducted at
Source) is applied:
o 10% of interest
o Plus 3% Education Cess
FD is not ideal if you can't invest a lump sum in one go.
Recurring Deposit (RD)
 Best for salaried individuals or those with regular monthly
income.
 Suitable when you want to save a fixed amount monthly for
a specific time.

Difference between FD and RD
Recurring Deposit (RD) is a better option if:
 You have regular income but not a lump sum to invest at
once.
 You are confident you can deposit the fixed amount every
month.
Drawbacks of RD:
 Non-flexibility in the deposit amount.
 No partial payments or overpayments allowed.
 Interest depends on maturity period — longer duration yields
higher interest.
 RD generally provides less return than FD.
 Premature withdrawal is allowed with penalties.
 No partial withdrawal permitted.
 No TDS (Tax Deductible at Source) is applicable for RD.

25. Conclusion:
FD generally offers higher returns but requires lump-sum
investment. RD is suitable for those with regular income who can
commit to monthly deposits. Choice depends on your personal
financial planning.

C. Account Opening
7 Simple Steps to Open a Bank Account
Today, banks are essential institutions that help manage financial
transactions securely. Opening a bank account is simple and only
requires seven steps.
Step 1: Decide the Type of Bank Account You Want to Open
Choose from types such as:
 Saving Account
 Recurring Account
 Fixed Deposit Account
 Current Account
Step 2: Approach Any Bank of Choice & Meet Its Bank Officer
Once the account type is decided, approach a convenient bank. The
person must meet the bank officer, who will provide a proposal
form (Account Opening Form).
Step 3: Fill Up Bank Account Opening Form - Proposal Form
 The proposal form must be filled with all required information
(name, address, occupation, etc.).
 Two or three specimen signatures are required.
 For joint accounts, signatures from all holders are necessary.
 Banks may ask for passport-sized photographs for ID
verification.

26. Step 4: Give References for Opening Your Bank Account
 The bank may require references or an introduction from an
existing account holder.
 The introducer signs in the designated column.
 This is to protect the bank’s interest.
Step 5: Submit Bank Account Opening Form and Documents
 Submit the completed form with required documents.
 Example: A joint stock company must include the Board’s
resolution and certified copies of the Articles and
Memorandum of Association.
Step 6: Officer Will Verify Your Bank Account Opening Form
 The officer checks the form and verifies all details and
documents.
 Once satisfied, the officer clears the proposal form.
Step7: Deposit initial amount in newly opened Bank Account
After getting the proposal form cleared, the necessary amount is
deposited in the bank. After depositing the initial money, the bank
provides a pass book, a cheque book and pay in slip book in the
case of savings account. In the case of fixed deposits, a fixed
deposit receipt is issued. In the case of current account, a cheque
book and a pay in slip book is issued. For recurring account, the
pass book and a pay in slip book is issued.
Advantages (ii)
1. Bank account facilitates a safe custody of money
The bank is the custodian of cash. As and when the account holders
needs the money can withdraw the same depending upon the type
of account.

27. 2. Bank account helps in making payments
The bank account holder can make payment to third parties through
the savings and current account. The payment may be regarding
electricity bills, insurance premium, etc. The bank also makes
direct payment on the standing instructions of the customer.
3. Bank account helps in collection of money
The bank can directly collect money of the customer in respect of
dividend, salary pension or from debtors. The collected money is
then deposited in customer’s bank account.
4. Bank account holders get advances and loans
The current account holder can obtain an overdraft facility from his
bank. The recurring and fixed deposit account holders can get a
loan up to 75% of the amount to their credit.
5. Bank account helps in smooth transactions
The bank accounts make it possible for the businessmen to conduct
their business operations smoothly not only in the domestic trade
but also in the foreign markets.
6. Bank account holders get a safe deposit locker
The bank provides safe deposit locker facility to its account holders
to keep their valuables like gold jewelers, share certificates,
property documents, etc.
D. Cheque
Meaning
Cheque is an important negotiable instrument which can be
transferred by mere hand delivery. Cheque is used to make safe and
convenient payment. It is less risky and the danger of loss is
minimized.

28. Definition of a Cheque
"Cheque is an instrument in writing containing an unconditional
order, addressed to a banker, sign by the person who has deposited
money with the banker, requiring him to pay on demand a certain
sum of money only to or to the order of certain person or to the
bearer of instrument."
Types of Cheques
1. Bearer Cheque
When the words "or bearer" appearing on the face of the cheque
are not cancelled, the cheque is called a bearer cheque. The bearer
cheque is payable to the person specified therein or to any other
else who presents it to the bank for payment. However, such
cheques are risky, this is because if such cheques are lost, the
finder of the cheque can collect payment from the bank.
2. Order Cheque
When the word "bearer" appearing on the face of a cheque is
cancelled and when in its place the word "or order" is written on
the face of the cheque, the cheque is called an order cheque. Such a
cheque is payable to the person specified therein as the payee, or to
anyone else to whom it is endorsed .
3. Uncrossed / Open Cheque

29. When a cheque is not crossed, it is known as an "Open Cheque" or
an "Uncrossed Cheque". The payment of such a cheque can be
obtained at the counter of the bank. An open cheque may be a
bearer cheque or an order one.
4. Crossed Cheque
Crossing of a cheque means drawing two parallel lines on the face
of the cheque with or without additional words like "& CO." or
"Account Payee" or "Not Negotiable". A crossed cheque cannot be
encashed at the cash counter of a bank, but it can only be credited
to the payee’s account.

5. Anti-Dated Cheque
If a cheque bears a date earlier than the date on which it is
presented to the bank, it is called an "anti-dated cheque". Such a
cheque is valid up to six months from the date of the cheque.


6. Post-Dated Cheque
If a cheque bears a date which is yet to come (future date), then it is
known as a post-dated cheque. A post-dated cheque cannot be
honored earlier than the date on the cheque.
7. Stale Cheque
If a cheque is presented for payment after six months from the date
of the cheque, it is called a stale cheque. A stale cheque is not
honored by the bank.

30. (iii). Features of Cheques
1Cheque is an instrument in writing
A cheque must be in writing. It can be written in ink pen, ballpoint
pen, typed, or even printed. Oral orders are not considered as
cheques.
2. Cheque contains an unconditional order
Every cheque contains an unconditional order issued by the
customer to his bank. It does not contain a request for payment. A
cheque containing conditional orders is dishonored by the bank.
3. Cheque is drawn by a customer on his bank
A cheque is always drawn on a specific bank mentioned therein.
Cheques drawn by strangers are of no meaning. Cheque book
facility is made available only to account holders who are supposed
to maintain a certain minimum balance in the account.


4. Cheque must be signed by customer
A cheque must be signed by the customer (account holder).
Unsigned cheques or cheques signed by persons other than the
customer are not regarded as valid cheques.
5. Cheque must be payable on demand
A cheque, when presented for payment, must be paid on demand. If
a cheque is made payable after the expiry of a certain period, then
it is not considered a valid cheque.
6. Cheque must mention exact amount to be paid

31. A cheque must be for a specific monetary amount. The amount to
be paid must be clear and written both in words and figures.
7. Payee must be certain to whom payment is made
The payee of the cheque must be clearly identified—either a real
person or an artificial person like a Joint Stock Company. The
name of the payee must be written on the cheque, or it can be made
payable to the bearer.
8. Cheque must be duly dated by customer of bank
A cheque must be clearly dated by the customer. It must include
the date, month, and year. A cheque is valid for six months from
the date of issue.
9. Cheque has 3 parties: Drawer, Drawee & Payee
1. Drawer: The person who draws (writes) the cheque.
2. Drawee: The bank on which the cheque is drawn.
3. Payee: The person in whose favor the cheque is issued.


E. Crossing of Cheque
A cheque is a negotiable instrument. During circulation, a
cheque may be:
 Lost or stolen
 Endorsed by someone other than the rightful payee
This can lead to misuse. To prevent fraud and unauthorized
payment, crossing is used as a protective measure.
Purpose of Crossing

32.  Protects the drawer and payee
 Applies to both bearer and order cheques
 Prevents encashment at the counter—must be deposited
through a bank account
Crossing involves drawing two parallel lines across the face of
the cheque, ensuring it’s only processed via bank transfer, not over-
the-counter.
A. Different Types of Crossing
1. General Crossing
A cheque is generally crossed when:
1. Two transverse parallel lines are marked across its face, or
2. It bears the abbreviation "& Co." between the two lines, or
3. It bears the words "Not Negotiable" between the lines, or
4. It bears the words "A/c. Payee" between the lines
5.
 A crossed cheque can be converted back into a bearer
cheque by:
o Cancelling the crossing,
o Writing a statement indicating the cancellation,
And affixing the full signature of the drawer
Specimen of General Crossing
 & Co.
 A/c Payee
 Not Negotiable
These are written between two parallel lines to restrict over-the-counter
payments.
2. Special or Restrictive Crossing

33.  This type of crossing occurs when a specific bank's name is written
between the two parallel lines.
 It is more secure than general crossing.
 The cheque is payable only through the bank mentioned, and not
through any other bank.
Specimen of Special or Restrictive Crossing
 STATE BANK OF INDIA
 A/c Payee Only STATE BANK OF INDIA
 Not Negotiable STATE BANK OF INDIA
These forms indicate that the cheque is restricted to be processed through
State Bank of India only, and is further protected from negotiation or
bearer encashment.
Conclusion of Crossing of Cheque
 Special crossing ensures that payment is made only to the banker
named in the crossing.
 It is more secure than general crossing.
 The closing statement reiterates:
"Cheque is an instrument in writing."
E. Loan
As a Scheduled Bank, issuing Loans and Advances is a primary function.
The bank supports:
 Term Loans and Working Capital loans
 Sectors: Agriculture, Trade, Services, MSMEs, Infrastructure,
Export/Import
 Loan products are customized for personal and commercial needs.
KCC Loan – Kisan Credit Card Scheme
A specific agricultural loan scheme is introduced with a brief table:

34. Sr. No Conditions Requirements
1 Purpose of the
loan
Raising of various crops in Haryana State
2 Beneficiary / Who
can borrow
Any agriculturist who is also a member of the PACS
(Minibank)
3 Amount / Period
of the loan
admissible
To be worked out by multiplying number of acreage
being cultivated to scale of finance for that crop
subject to ceiling of:a) Cash Rs. 75,000/-b) Kind Rs.
25,000/-Loan is for a maximum period of 12 months.
4 Frequency/mode of
release of funds
Funds released by cheque as many times as required
by the borrower, drawn on concerned branch of
CCB/Mini bank.
5 Repayment a) Kharif advances between 1.3 to 31.8 will fall due
on 31-1 next year. Rabi advances between 1.9 to
28/29 Feb for next year will fall due on 31-5 next
year. (No drawl shall be allowed for a period of more
than 12 months)b) In case of failure of crops due to
natural calamities, facility of conversion of loan into
medium term loan available.
6 Security 1. Two personal sureties who are also members of
the Minibank.2. Floating charge on crops being
cultivated by raising the loan.
7

Rate of Interest 7% (Subject to revision from time to time)

8 Penal rate of
interest
5% p.a.

KISAN CREDIT CARD

35. 1. OBJECTIVES:
 Kisan Credit Card Scheme aims at providing need-based and timely
credit support to the farmers for their cultivation needs as well as non-
farm activities in a cost-effective manner.
 To bring about flexibility and operational freedom in credit
utilization.
2. ELIGIBILITY:
 Under the scheme, branches may issue Kisan Credit Cards to
the farmers who are otherwise eligible for sanction of short-
term credit for crop production, allied activities, and other
non-farm activities.
 The farmers should come from the operational area of the
Branch.
3. ISSUE OF CARDS:
 The farmers under the scheme will be issued a credit card-
cum-passbook incorporating the name, address, particulars of
land holding, borrowing limit/sub-limits, validity period, etc.
to facilitate recording of the transactions on an ongoing basis.
The passbook, among others, would provide for a passport-
size photograph of the beneficiary.
 The beneficiary farmer should produce the passbook while
operating the account.


4. TECHNICAL FEASIBILITY:
 Suitability of soil, climate, and availability of adequate
irrigation facilities.
 Suitability of the produce for storage.
 Suitability of the storage unit.

36. 5. TYPE OF FACILITY:
 Revolving Cash Credit – Annual Review:
The farmer should be allowed for any number of drawls and
repayment within the limit.
 The review may result in continuation of the facility,
enhancement of the limit, or cancellation of the
limit/withdrawal of the facility, depending upon the
performance of the borrower.
 The aggregate of credits into the account during the 12-month
period should at least be equal to the maximum outstanding in
the account.
 No drawl in the account should remain outstanding for more
than:
o 12 months in case of normal crops
o 18 months in case of sugarcane and banana crops
 In case of reschedulement of the period of repayment due to
natural calamities affecting the farmer, the period for
reckoning the status of operations as satisfactory or otherwise
would get extended together with the extended amount of
limit. When the proposed extension goes beyond one crop
season, the aggregate of Debits for which extension is
granted should be transferred to a separate term loan account
with stipulation for repayment in installments as per existing
guidelines.
 As a measure of incentive for card holders with good
performance, the Branches may, at the time of review,
enhance the credit limit suitably to take care of the increase in
cost of inputs/labour, change in cropping pattern, etc.
(vii). SECURITY:
(a) Up to Rs. 50,000/= :
 D. P. Note

37.  Hypothecation of standing crops
(b) Above Rs. 50,000/= :
 D. P. Note
 Hypothecation of standing crops
 Mortgage of land / Collateral security
Note:
 In case the value of land mortgaged is adequate, no other
security should be obtained.
 For finance against Government warehouse receipts,
mortgage may be waived.
 Waiver of mortgage of land in deserving cases may be
considered as per security norms.
 RBI norms on security should be strictly adhered to.
Common Documents:
(a) Demand Promissory Note.
(b) Deed of Composite Hypothecation Agreement (CHA-1).
(c) Letter of Authority (AG-15).
(d) Charge on land as per Agricultural Credit Act or Equitable
Mortgage or Legal Mortgage of land (CHA-4).
(e) Letter of Pledge (OD-159).
(f) Pledge of Storage Receipt duly discharged.
(g) Undertaking to repay the advance within 12 months or on sale
of produce.
(h) Bank’s lien to be notified to the storage unit.
(i) Undertaking from the godown / cold storage owners not to
deliver the goods without production of the pledged storage receipt.
(j) L-515.
(k) L-516 (if required).
Note:

38. (1)Documents mentioned under (e) to (i) above are applicable
only if sub-limit against storage receipt is sanctioned.
(2) In case produce marketing limit is extended against the
produce stored in the premises of the farmer, then hypothecation
deed (CHA-1) should suffice to cover hypothecation charge on the
produce stored.
6. RATE OF INTEREST:
(a) On Debit Balance:
 As advised by Head Office from time to time.
(b) On Credit Balance:
 Rate of interest payable will be as per Savings Bank interest
rate.
 Follows the Savings Bank rules, except opening a separate
account.
7. (MTPL) MEDIUM TERM PERSONAL LOAN
 Medium term finance is defined as money raised for a period
from one to five years.
 The funds are mainly used by businesses for repair and
modernization of machinery.
 There are various sources for raising medium term finance,
with commercial banks being the most important.
 These banks now provide medium term loans against
security of assets.
 The loan is usually credited to the borrower's account, and
may be withdrawn in full or in installments.
 Traditionally, banks focused on short-term loans, but
nowadays, term loans exceeding one year are increasingly
offered.
SWOT ANALYSIS

39. 1. STRENGTHS:
I. Provide loans to farmers & artisans at low rate of interest.
II. Provide Micro Finance.
III. Help in rural upliftment.
IV. Backed by government.
V. No profit-making motive.
2. WEAKNESSES:
I. Far from technology.
II. No ATM machines.
III. No RTGS, NEFT system available (not yet).
IV. Poor structure of bank.
V. Lack of staff.
3. OPPORTUNITIES:
I. Development opportunity available.
II. Will soon get IFSC code.
III. Job opportunities also available.

4. THREATS:
I. Increase in number of NPAs (Non-Performing Assets)
II. No ATM – it will be a threat in the near future.
III. Large customer base is of poorer status.
IV. Most branches work on a no profit / no loss condition.
CONCLUSION:
 Finance is the lifeblood of trade, commerce, and industry.
Nowadays, the banking sector acts as the backbone of
modern business. The development of any country largely
depends on the banking system.

40.  A bank accepts money from people in the form of deposits,
usually repayable on demand or after a fixed period, providing
safety to customers' money.
 A co-operative bank is a financial entity that belongs to its
members, who are both the owners and customers of the
bank. These banks are typically created by individuals from
the same local or professional community and offer a range
of services like loans, deposits, and bank accounts
 Co-operative banks differ from stockholder banks in their
organization, goals, values, and governance. They are
generally supervised by banking authorities and must follow
prudential regulations to remain competitive with
stockholder banks.
 Depending on the country, supervision of co-operative banks
is either directly implemented by state entities or delegated
to a co-operative federation or central body. Even if their
organizational rules can vary according to their respective
national legislations, co-operative banks share common
features:
 Customer's owned entities: in a co-operative bank, the needs
of the customers meet the needs of the owners, as co-operative
bank members are both. As a consequence, the first aim of a
co-operative bank is not to maximize profit but to provide the
best possible products and services to its members. Some co-
operative banks only operate with their members but most of
them also admit non-member clients to benefit from their
banking and financial services
 Democratic member control: co-operative banks are owned
and controlled by their members, who democratically elect the
board of directors. Members usually have equal voting rights,
according to the co-operative principle of "one person, one
vote". Profile allocation: in a co-operative bank, a significant
part of the yearly profit, benefits or surplus is usually allocated

41. to constitute reserves. A part of this profit can also be
distributed to the co-operative

The Co-operative Bank operates under its own brand as well as
those of smile, Platform and Britannia. We offer our services
through 342 branches and 22 corporate banking centers as well as
telephony and online channels. We are a leader in the field of
ethical investment and corporate social responsibility. Our
customer driven ethical strategy was the first of its kind in our
industry and we pursue an active strategy of community
involvement.













LEARNING FROM TRAINING
➢ Account opening
➢ Cash withdrawal
➢ Cash deposit

42. ➢ Different type of cheques
➢ Loans
➢ Voucher entry in FINACLE SOFTWAR















REFERENCES
Rai, Upendra. Banking Awareness.

43. Haryana State Cooperative Apex Bank. Retrieved from
https://www.harcobank.com
Kangra Central Cooperative Bank. Annual Report. Retrieved
from https://www.kccb.in