Introduction The world of banking has assumed a new dimension at dawn of the 21 st century with the advent of tech

banking, thereby lendingthe industry a stamp of universality. In general, banking may beclassified as retail and corporate banking. Retail banking, which isdesigned to meet the requirement of individual customers andencourage their savings, includes payment of utility bills,consumer loans, credit cards, checking account and the like.Corporate banking, on the other hand, caters to the need of corporate customers like bills discounting, opening letters of credit,managing cash, etc.Metamorphic changes took place in the Indian financial systemduring the eighties and nineties consequent upon deregulation andliberalization of economic policies of the government. India beganshaping up its economy and earmarked ambitious plan for economic growth. Consequently, a sea change in money andcapital markets took place. Application of marketing concept in the banking sector was introduced to enhance the customer satisfactionthe policy of privatization of banking services aims at encouragingthe competition in banking sector and introduction of financialservices. Consequently, services such as Demat, Internet banking,Portfolio Management, Venture capital, etc, came into existence tocater to the needs of public. An important agenda for every banker today is greater operational efficiency and customer satisfaction.The mew watchword for the bank is pretty ambitious: customer delight.The introduction to the marketing concept to banking sectors can be traced back to American Banking Association Conference of 1958. Banks marketing can be defined as the part of managementactivity, which seems to direct the flow of banking services profitability to the customers. The marketing concept basicallyrequires that there should be thorough understanding of customer need and to learn about market it operates in. Further the market issegmented so as to understand the requirement of the customer at a profit to the banks. DEFINITION OF BANK The Oxford dictionary defines the Bank as, An establishment for the custody of money, which it pays out, on a customers order. According to Whitehead, A Ba n k i s d e f i ne d a s a n i n s t i t u t io n w h i c h c o l l e c t s s u r p l u s f u n d s f r o m t h e p u b l i c , s a f e g u a r d s t h e m , a n d ma k e s t h e m a v a i l a b l e

t o t h e t r u e owner when required and also lends sums be their true owners to those whoare in need of funds and can provide security. Banking Company in India has been defined in the Banking Companies act1949, O n e w h i c h t r a n s a c t s t h e b u s i n e s s o f b a n k i n g w h i c h m e a n s t h e accepting, for the purpose of lending or investment of the deposits of moneyfrom the public, repayable on demand, or otherwise and withdraw able becheque, draft, order or otherwise.T h e b a n k i n g s ys t e m i s a n i n t e g r a l s u b s ys t e m o f t h e f i n a n c i a l s ys t e m. I t r e p r e s e n t s a n important channel of collecting small savings form t h e households and lending it to the corporate sector.Th e I n d ia n b a n k i n g s ys t e m h a s R e s e r v e B a n k o f I n d i a ( R B I ) a s t h e a p e x body for all matters relating to the banking system. It is the central Bank of India. It is also known as the Banker To All Other Banks. EVOLUTION OF INDIAN BANKING Ancient banking system of India constituted of indigenous bankers. Theyhave been carrying on their age-old banking operations in different parts of the country under different names. The modern age of banking constitutesthe fundamental basis of economic growth. The term Bank is being useds i n c e l o n g t i me b u t t h e r e i s n o c l e a r c o n c e p t i o n r e g a r d i n g i t s b e g i n n i n g . According to the viewpoint, in good old days. Italian money leaders wereknown as Banchi because they kept a special type of table to transact their business. IMPORTANCE OF BANKS Today banks have become a part and parcel of Kotak Bank's life. There wasa time when dwellers of the city alone could enjoy their services. Now bankso f f e r a c c e s s t o e v e n a c o m mo n ma n a n d t h e i r a c t i v i t i e s e x t e n d t o areash i t h e r t o u n t o u c h e d . B a n k s c a t e r t o t h e n e e d s o f a g r i c u l t u r a l i s t s , industrialists, traders and to all the other sections of the society. In moderna g e , t h e b a n k i n g c o ns t i t u t e s t h e f u n d a me n t a l b a s i s o f e c o n o mi c g r o wt h . Thus, they accelerate the economic growth of a country and steer the wheelsof the economy towards its goals of self reliance in all fields. It naturallyarouses Kotak Bank's interest in knowing more about the Bank and the various men and the activities connected with it. Indian Banking System Banking in India has its origin as early as the Vedic period. It was believed that transition from money lending to banking must haveoccurred even before Manu, The great Hindu Jurist, who hasdevoted a section of his work to deposit advance

and laid downrules relating to rates of interest. During the Mogul period, theindigeneousBankers played a very important role in lending moneyfinancing foreign trade and commerce. During the days of EastIndia Company, it was turn over the agency houses to carry on the business. The General Bank of India was the first to join sector in the year 1786.The others that followed were the Bank of Hindustan and the Bengal bank. The bank of Hindustan is reportedto have continued till 1906 while the other two failed in themeantime.In the first half of the 19 th century the East India Companyestablished three banks: 1 . B a n k o f B e n g a l ( 1 8 0 9 ) . 2. Bank of Bombay (1840).3. Bank of Madras (1843. These three banks are also known as Presidency Banks wereindependent units and functioned well. These three banks wereamalgamated in 1920 and Imperial Bank of India was establishedon 27 th january1921, which started as private shareholders banks,mostly Europeans shareholders, with the passing of time Imperial bank was taken over by the newly constituted State bank of Indiaact in1955.In 1865 Allahabad Bank was established and first timeexclusively by Indians, Punjab National Bank Ltd. was set up in1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. On July, 1969, 14 major banks of India were nationalized and on 15 th April, 1980 six more commercial private banks were also taken over by the government . Reserve Bank of India The Banking system is an integral sub-system of the financialsystem. It represents an important channel of collecting smallsavings from the households and lending it to the corporate sector.The Indian banking system has The Reserve Bank of India (RBI)as the apex body from all matters relating to the banking system. Itis the Central Bank of India and act as the banker to all other banks. Functions of RBI: Currency issuing authority Banker to the government.

 Banker to other Bank. Framing of monetary policy. Exchange control. Custodian to foreign exchange and gold reserves. Development activities. Research and development in the banking sector. CLASSIFICATION OF BANKS On the basis of Ownership PUBLIC SECTOR BANKS Public sector banks are those banks that are owned by the government. Thegovernment owns these banks. In India 20 banks were nationalized in 1969and 1980 respectively. Social welfare is there main objective. PRIVATE SECTOR BANKS These banks are those banks that are owned and run by private sector. Anindividual has control over these banks in proportion to the shares of the banks held by him. CO-OPERATIVE BANKS These are those banks that are jointly run by a group of individuals. Eachindividual has an equal share in these banks. Its shareholders manage theaffairs of the bank. According to the Law SCHEDULED BANK Schedule banks are the banks, which are included in the second schedule of the banking regulation act 1965. According to this schedule bank:1. Must have paid-up capital and reserve of not less than Rs500, 000. 2 . M u s t a l s o s a t is f y t h e R B I t h a t i t s a f f a i r s a r e n o t c o n d u c t e d i n a manner Determinate to the interest of its depositors.Schedule banks are subdivided as:-a) State co-operative banks b) Commercial banks NON-SCHEDULED BANKS Non -schedule banks are the banks, which are not included in the secondschedule of the banking regulation act 1965. It means they do not satisfy theconditions lay down by that schedule. These are the banks having paid

upcapital, less than Rs.5Lakhs. They are further classified as follows:-A. Central Co-operative banks and Primary Credit Societies.B. Commercial banks According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banksmake loans for short to business and in the process create money. Creditcreation is the main function of these banks. FOREIGN BANKS These are those banks that are incorporated by foreign company. They haveset up their branches in India. These banks have their head offices in foreign c o u n t r i e s . Th e i r p r i n c i p l e f u n c t i o n i s t o ma k e c r e d i t a r r a n g e me n t or thee x p o r t a n d t h e i m p o r t o f t h e c o u n t r y a n d t h e s e b a n k s d e a l s i n f o r e i g n exchange. INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loant o t h e i n d u s t r i e s a n d a l s o wo r k f o r t h e i r d e v e l o p me n t . Th e s e b a n k s h e l p industries in sale of their shares, debentures and bonds. They give loan to theindustries for the purchase of land and machinery. AGRICULTURAL BANKS Agricultural banks are those banks that give credit to agricultural sector of the economy. SAVING BANKS The principle function of these banks is to collect small savings across thec o u n t r y a n d pu t t h e m t o t h e p r o d u c t i v e u s e . I n I n d i a d e p a r t me n t o f p o s t office functions a savings banks. CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issuescurrency notes and acts a banker's bank. Economic stability is the principlefunction of this bank. In short, it regulates and controls the banking systemof the country. RBI is the Central Bank of India. PRIVATIZATION OF INDIAN BANKING For the public sector banks, the era of bumper profit is over. For much of thelast decade the process of collaborated financial liberalization had cleared upthe Banks balance sheet enabling them to with stand increased competition,global financing, turmoil and even unprotected industrial slow down. But thecycle of liberalization has run its full course. Now it is the time for the bigstructural leap, rationalization, mergers, and privatization. Unless the banksundertake these fundamental changes, their profit will stay under pressure.T h e r e a r e t w p a r e a s o f c o m p e t i t i o n s w h i c h b a n k i n g i n d u s t r y i s f a c i n g internationally and nationally. In the pre-

liberalization era, Indian banksc o u l d g r o w i n a c l o s e d e c o n o m y b u t t h e b a n k i n g s e c t o r o p e n e d u p f o r private competition. It is possible that private banks could become dominant p l a y e r s e v e n w i t h i n I n d i a . I t h a s b e e n r e c o r d e d a r a p i d r i s e o f t h e n e w private sector banks and it has tracked the transformation of the public sector banks as they grapple with the changes of financial deregulation.Use of ATM cards, Internet Banking, Phone Banking, Mobile Banking arethe new innovative channels of banking which are being widely used as theyr e s u l t i n s a v i n g b o t h t i me a n d mo n e y w h i c h a r e t wo e s s e n t i a l t h i n g s t h a t every one is short of and is running to catch hold of them. Moreover privates e c t o r b a n k s a r e aligning its infrastructures, marketing quality a n d t e c h n o l o g y to b u i l d d e e p c o mmi t me n t i n b u i l d i n g c o n s u me r a n d r e t a i l banking. The main focus of these banks is on innovative range of services or products. STRUCTURE OF BANKING SYSTEM Different countries of the world have different types of banking systems.However, commercial banking had grown under all these banking systems.To understand the structure of banking system, let us take up various typesof banking systems one by one. These types are:(1) UNIT BANKINGU n i t B a n k i n g o r i g i n a t e d i n t h e Un i t e d S t a t e o f A me r i c a . I t g r e w i n t h e Un i t e d S t a t e s o f A me r i c a . As a c o u n te r p a r t o f i n d e p e n d e n t o r i n d u s t r i a l units. An independent unit bank is a corporation that operates one office and that is not related to other banks through either ownership or control. Shaper, Solomon and White.Thus under unit banking, a single bank is a complete organization in itself having its own management. The scale of operation is small and the area isrestricted to a locality only. Unit banking is localized banking and is muchmore responsive to the needs of the locality. It has better understanding of the local problems and conditions, which helps it to cater to the needs of thearea in a better way. The staff of the unit bank is generally local and is in a better position to determine the standing or desirability of the customers.T h e f a i l u r e o f t h e u n i t b a n k w i l l n o t e n d a n g e r t h e b a n k i n g s ys t e m a n d e c o n o my. I t i s f r e e f r o m t h e d i f f i c u l t i e s a n d d i s e c o n o mi e s o f l a r g e s c a l e operations. It will not drain out the financial resources of villages and smalltowns to big industrial centers and will ensure a balanced growth. (2) BRANCH BANKING: Economic and Managerial problems faced by the unit banks l e t t o t h e emergence of banking system. Now, This the most popular and important banking system. In branch banking, a bank has a large network of

branchess c a t t e r e d a l l o v e r t h e c o u n t r y . B r a n c h b a n k i n g d e v e l o p e d i n E n g l a n d . S u b s e q u e n t l y mo s t o f t h e c o u n t r i e s o f t h e w o r l d a d o p t e d t h e s ys t e m. I n terms of branches, the State Bank of India has emerged as one of the largest banks in the world.As under the system the resources of a number of branches get pooled under the same management, any individual branch is in a better position to facee x c e s s i v e wi t h d r a w a l s b y t h e c u s t o me r s . I t f a c i l i t a t e s d i v e r s i f i c a t i o n o f activities because the area covered by the branches is generally widespread.Un d e r t h e s ys t e m b r a n c h e s c a n o p e r a t e wi t h o u t k e e pi n g l a r g e i d l e c a s h reserves. It becomes possible for the bank to hire the services of competenta n d professionally qualified managers, capable of u n d e r s t a n d i n g t h e handling technical problems and complex situations. The cost of remitting or transferring funds from one place to another works out to be less. The staff s t a ys a t a b r a n c h o n l y f o r a l i mi t e d p e r i o d , s o t h e c h a n c e s o f o b je c t i v e decision making in the branch banking are high.Branch Banking tends to bring homogeneity in the prevailing Interest Ratesa s i t i n c r e a s e s t h e mo b i l i t y o f r e s o ur c e s f r o m o n e p la c e t o a n o t h e r . I t i s easier for the Central Bank to exercise Control. It will communicate onlyw i t h a f e w R e g i s t e r e d / H e a d O f f i c e s o f t h e B a n k s a n d n o t w i t h e a c h individual branch. In this system there more safety and liquidity of funds.The choice of securities and investments is larger. Branch banking makesc o mp l e t e b a n ki n g s e r v i c e s a v a i l a b l e t o t h e s ma l l e s t c o m mu n i t i e s . Th e branches in small localities can be initially operated at loss in expectation of future gains.The comparative study of unit banking and branch banking is a case of smallscale banking versus large scale banking. It is evident that the scale is clearlytitled towards branch banking. With the growth of large scale business it isno wonder that the trend is almost every country towards the branch bankingi.e. big banks with a network of branches all over the country. Even in theU.S.A. The birthplace of unit banking. The Bank of America has now morethan 500 branches in the state of California itself. (3) CHAIN BANKING : Shaper, Solomon and White have defined Chain Banking as An arrangements by which two or more banks each of which retains itsidentity, capital and personnel are brought under common control by anydevice other than a Holding Company. Under the system there is pooling of resources. Chain banking overcomesc e r t a i n l i mi t a t i o n s o f u n i t b a n k i n g . B u t t h e s ys t e m s u f f e r s f r o m c e r t a i n limitations of its own. There may be a lack of coordination, proper controletc. The system is inflexible.

(4) GROUP BANKING : It is similar to Chain Banking, the difference being that under GroupBanking two or more banks are brought under t h e c o n t r o l o f t h e s a m e management through a Holding Company. Both the systems aim at gainingthe advantages of large scale operations. The banks are able to pool their resources in case of emergency or when large amount of cash is required tom e e t t h e l o a n r e q u i r e m e n t s o f the customer. The advantages and disadvantages of both the systems are similar. Both the systems developed int h e United State of America as a result of attempts to o v e r c o m e t h e difficulties or limitations of unit banking. (5) CORRESPONDENT BANKING: Under Correspondent banking, small banks serving local communities holdd e p o s i t s wi t h jo i n t b a n k s s e r v i n g i n b i g c i t i e s . T h i s k i n d o f banking is p r e v a l e n t i n U . S . A . T h e c o r r e s p o n d e n t b a n k s perform two importantservices of outstation cheque c l e a r i n g a n d l o a n p a r t i c i p a t i o n f o r t h e r e s p o n de n t b a n k s wh i l e t h e y b e n e f i t f o r t h e d e p o s i t f u n d s o f r e s p o n d e n t banks. A) COMMERCIAL BANKS PRIMARY FUNCTIONS : 1)Accepting of Deposits : A bank accepts d e p o s i t s f r o m t h e p u b l i c . People can deposit their cash balances in either of the following accounts totheir convenience:a. Fixed or Time Deposit Account : Cash is deposited in thisaccount for a fixed period. The d e p o s i t o r g e t s r e c e i p t s f o r t h e a m o u n t deposited. It is called Fixed Deposit Receipt. The receipt indicates the nameof the depositor, amount of deposit, rate of interest and the period of deposit.This receipt is not transferable. If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying thediscount to the bank. b. Savings Account : This type of deposit suits to those who justwant to keep their small savings in a bank and might need to withdraw themoccasionally. Banks provide a certain rate of interest on the minimum balancekept by the depositor during the month. c. Current Account : T h i s t y p e o f a c c o u n t i s k e p t b y t h e b u s i n e s s ma n w h o a r e r e q u i r e d t o wi t h d r a w mo n e y e v e r y n e w a n d t h e n . Banks do

not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder.2 ) A d v a n c i n g of Loans : The bank advances money in any one of t h e following ways. a. Overdraft Facilities : Customers of good trading are allowed tooverdraw from their current account. But they have to pay intereston extra amount they have withdrawn. Overdrafts are allowed to provide temporary accommodation since the extra a m o u n t withdrawn is payable within a short period. b. Money at Call : It is the money lent for a very short period varyingfrom 1 to 14 days. Such advances are usually made to other banksand financial institutions only. Money at call ensures liquidity. Inthe Interbank market it enables bank to make adjustment accordingto their liquidity requirements. c. Loans : Loans are granted by the banks on securities which can beeasily disposed off in the market. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced. d. Cash Credit : The Debtor is allowed to withdraw a certain amounton a given security. The debtor withdraws the amount within thisl i m i t , i n t e r e s t i s c h a r g e d b y t h e b a n k o n t h e a m o u n t a c t u a l l y withdrawn. e. Discounting Bill of Exchange : I t i s a n o t h e r me t h o d o f ma k i n g advances by the banks. Under this method, bank give advance tot h e i r c l i e n t s o n t h e b a s i s o f t h e i r b i l l s o f e x c h a n g e b e f o r e t h e maturity of such bills. f. Investment in Government Securities : Purchasing of governmentsecurities by the banks tantamount to advancing loans by them tot h e Go v e r n me n t . B a n k s p r e f e r t o b u y g o v e r n me n t s e c u r i t i e s a s t h e s e a r e c o n s i d e r e d t o b e t h e s a f e s t i n v e s t me n t . F o r e x a mp l e : Indira Vikas Patra : It enables the banks to meet requirement of statutory liquidity ratio (SLR)

3) Credit Creation : One of the main functions of banks these days is to c r e a t e c r e d i t . Banks create credit by giving more loans than t heir cash reserves. Banks are able to create credit because the demand deposits i.e. aclaim against the bank is accepted by the public in settlement of their debts.I n t h i s p r o c e s s t h e b a n k c r e a t e s mo n e y. F o r t h i s r e a s o n P r o f . S a ye r s h a s called bank the manufactures of money.4) Cheque system of Payment of FundsA cheque, a negotiable instrument, which in fact is a bill of exchange, drawnupon a banker, is the most popular credit instrument used by the client tomake payments. Cheque system is the main credit instrument in the bankingworld.Although a cheque is not a legal tender money, the serves as a medium of exchange in a limited way as it is a negotiable instrument.Because of clearing houses and clearing operations of the banks, cheques can be and are used for transferring funds from one centre to another. In the modern days they can also be used for transferring funds from one country toanother.SECONDARY FUNCTIONSB e s i d e s t h e a b o v e p r i ma r y f u n c t i o n s , b a n k s a l s o p e r f o r m ma y s e c o n d a r y functions such as agency functions, general utility and social functions.A) Agency FunctionsBanks act as agents to their customers in different ways :i) Collection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, hundies,rent, interest etc. On behalf of their customers and also make payments of i n c o m e t a x , f e e s , i n s u r a n c e p r e m i u m e t c . o n behalf of the customers. Customers can leave standing instructions with the banker f o r v a r i o u s periodic payments ensuring the regular payments and avoiding the trouble of performing it themselves. i i ) Pu r c h a s e a n d S a l e o f S e c u r i t i e s : The modern commercial banks alsou n d e r t a k e t h e p u r c h a s e a n d s a l e o f v a r i o u s s e c u r i t i e s l i k e s h a r e s , s t o c k s , bonds units and debentures etc. On behalf of the customers, banks do notgive any advice regarding the suitability or otherwise of a security but simply perform the functions of a broker. iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their customers on their advice. Sometimes banks also undertakeincome tax services on behalf of the customers.

iv) Remittance of Funds : The Commercial banks remit funds on behalf of clients from one place to another through cheques, drafts, mail transfers etc. v) Representation and Correspondence : Sometimes commercial banks actsa s r e p r e s e n t a t i v e s o r c o r r e s p o n d e n t s o f t h e c l i e n t s e s pe c i a l l y i n h a n d l in g various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. v i ) Bi l l i o n T r a d i n g : I n ma n y c o u n t r i e s , t h e c o m me r c i a l b a n k s t r a d e i s b i l l i o n s l i k e g o l d a n d s i l v e r . I n O c t 1 9 9 7 , 8 b a n k s i n c l u d i n g S B I , I OB , Canara Bank and Allahabad Bank have been allowed import of gold which has been put under open general licensed category. vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreignexchange, promoting international trade. This function is mainly discharged by foreign Exchange Banks. v i i i ) L e t t e r o f Re f e r e n c e s : B a n k s a l s o g i v e i n f o r ma t i o n a b o u t e c o n o mi c position of their customers to domestic and foreign traders and vice versa. B) GENERAL UTILITY SERVICESIn addition to agency services, banks render many more utility services to the public. These services are :-i ) L o c k e r F a c i l i t i e s : B a n k s p r o v i d e l o c k e r f a c i l i t i e s t o t h e i r customers. People can keep their valuables or important documents in theselockers. Their annual rent is very nominal.i i ) A c t i n g a s a r e f e r e e : I t d e s i r e d b y t h e c u s t o m e r s , t h e b a n k c a n b e a referee i.e. who could be referred by the third parties for seeking informationr e g a r d i n g t h e f i n a n c i a l p o s i t i o n o f t h e c u s t o me r s . Th e b a n k w i l l a c t s a s referee only and only if it is desired by the customer, otherwise the secrecy of a customers is account is maintained very carefully.i i i ) I s s u i n g l e t t e r s o f c r e d i t : B a n k e r s i n a w a y b y i s s u i n g l e t t e r s o f credit certify the credit worthiness of the customers. Letters of credit are very popular in foreign trade.i v ) A c t i n g a s U n d e r w r i t e r s : B a n k s a l s o u n d e r w r i t e t h e s e c u r i t i e s i s s u e d b y t h e Go v e r n me n t a n d C o r p o r a t e b o d i e s f o r a c o mmi s s i o n . Th e n a me o f bank as an underwriter encouraged investors to have faith in the security.v ) A c t i n g a s i n f o r m a t i o n b a n k s : C o m m e r c i a l b a n k s a l s o a c t s a s information bureau as they collect the financial, economic and statisticald a t a r e l a t i n g t o i n d u s t r y, t r a d e

a n d c o mme r c e . HD F C B a n k i s p r o v i d i n g i n f o r m a t i o n r e l a t i n g t o N R I S c h e m e s a n d c o m m e n t a r i e s o f e x p e r t s o n development in the areas of finance through Internet.v i ) I s s u i n g T r a v e l e r s cheques and credit cards : Banks have b e e n rendering great service by issuing travelers cheques, which enable a persont o t r a v e l w i t h o u t f e a r o f t h e f t o r l o s s o f m o n e y . N o w , s o m e b a n k s h a v e started credit card system under which a credit card holder is allowed to availc r e d i t f r o m t h e l i s te d o u t l e t s wi t h o ut a n y a d d i t i o n a l c o s t o r e f f o r t . Th u s , credit card holder need not carry or handle cash all t h e t i m e . N o w , international credit cards are joining hands with Indian Banks.v i i ) I s s u i n g o f g i f t c h e q u e s : C e r t a i n b a n k s i s s u e gift cheques of variousd e n o m i n a t i o n s , e . g . S o m e I n d i a n b a n k s i s s u e g i f t c h e q u e s f t h e denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge.v i i i ) D e a l i n g i n F o r e i g n E x c h a n g e : M a j o r b r a n c h e s o f c o m m e r c i a l b a n k s also transact business of foreign exchange. Commercial banks are the mainauthorized dealers of foreign exchange in India.i x ) M e r c h a n t b a n k i n g S e r v i c e s : C o m m e r c i a l b a n k s a l s o r e n d e r merchant banking services to the customers. They help in availing loans fromnon-banking financial institutions.x ) H e l p i n T r a n s p o r t a t i o n o f G o o d s : B i g b u s i n e s s m e n o r i n d u s t r i a l i s t s after consigning goods to their retailers send the Railway R e c e i p t (Consignment Note) to the bank. List of Public Sector Banks o State Bank of Bikaner & Jaipur o State Bank of Hyderabad o State Bank of Indore o State Bank of Mysore o State Bank of Saurastra o State Bank of Travancore Other Nationalised banks are:

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank List of Private Sector Bank

Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank UTI Bank List of Foreign Banks in India

ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank Upcoming Foreign Banks In India By 2009 few more names is going to be added in the list of foreignbanks in India. This is as an aftermath of the sudden interest shownby Reserve Bank of India paving roadmap for foreign banks in Indiagreater freedom in India. Among them is theworld's best private bank by Euro Moneymagazine, Switzerland's UBS. The following are the list of foreign banks going to set upbusiness in India Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group

 Industrial and Commercial Bank of ChinaMerrill Lynch is having a joint venture in Indian investment bankingspace -- DSP Merrill Lynch. Goldman Sachs holds stakes in KotakMahindra arms.GE Capital is also having a wide presence in consumer financethrough GE Capital India.India's GDP is seen growing at a robust pace of around 7% over thenext few years, throwing up opportunities for the banking sector toprofit from.The credit of banks has risen by over 25% in 2004-05 and the growthmomentum is expected to continue over the next four to five years.Participation in the growth curve of the Indian economy in the nextfour years will provide foreign banks a launch pad for greater business expansion when they get more freedom after April 2009.

Objectives of the Study This study has been conducted with a variety of importantobjectives in mind. The following provides us with the chief objectives that have tried to achieve through the study. The extentto which these objectives have been met could judged from theconclusions and suggestions, which appear in the later of thisstudy. The Chief Objectives of this study are: 1.To find the bank sector that is largely availed by the customer.2.To study the factors the factors influencing the choice of a bank for 3.availing services.4.To find and compare the satisfaction level of customers in public sector 5.as well as in private sectors bank.6.To study the problem faced by customer.7.To get suggestions for improvement or change in the services of publicand private sector banks.8.To study what do people expect in the new era of banking. RESEARCH METHODOLOGY R e s e a r c h i s a n a r t o f s c i e n t i f i c i n v e s t i g a t i o n . I n o th e r wo r d r e s e a r c h i s a scientific and systematic search for pertinent information on a specific topic.The logic behind taking research methodology into consideration is that onec a n h a v e k n o w l e d g e a b o u t t h e m e t h o d a n d p r o c e d u r e a d o p t e d f o r achievement of objectives of the project. With the adoption of this others canevaluate the results also. Its main aim is to keep the researchers on the righttrack.The methodology adopted for studying the objectives was surveying thesaving account holders of District Jalandhar. So keeping in view the natureof requirements of the study to collect all the relevant information regardingthe comparison of saving account of Centurion Bank of Punjab with other banks, direct personal interview method with structured questionnaire wasadopted for the collection of primary

data.S e c o n d a r y d a t a h a s b e e n c o l l e c t e d t h r o u g h t h e v a r i o u s ma g a z i n e s a n d newspapers and by surfing on Internet. And the guide in the organizationwas consulted at many times. SAMPLE DESIGN:A s a mp l e d e s i g n i s a d e f i n i t e p l a n f o r o b t a i n i n g a sample from a given population. It refers to the techniques or the procedurethe researcher would adopt in selecting items for the sample. Sample designmay as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample design is determined b e f o r e d a t a a r e collected. Here we select the population as sample in our sample design. Theselected respondents should be as representatives of the total population. POPULATION:The persons holding saving account related to businessclass of District Jalandhar were taken into consideration. DATA COLLECTION Data was collected by using main two methods i.e primary data andsecondary data. PRIMARY DATA Primary data is the data which is used or collected for first time and it is notused by anyone in the past. There are number of sources of primary datafrom which the information can be collected. We choose the following resources for our research. QUESTIONNAIRE:This method of data collection is quite popular, particular in case of big enquiries. Here in our research we set 15 simplequestions and request the respondents to answer these questions with correctinformation. RESPONDENTS:Respondents helps in creation of more accurate ideaabout our research. We personally meet the respondents inside and outsidethe banks.