Modern Banking Products
Modern Banking products are those products and services that a particular bank offers its customers. It may differ from one bank to another with respect to accounts and deposits (additional services), loans, remittances, bancassurance, etc.
Types of Banking Products:
Banking instruments include checks, demand drafts, promissory notes. Bills of exchange, credit notes, LC, debit cards, credit cards are also in that list. That actually guarantees the payment of a specific amount of money, either upon request or in a particular period of time.
Banks in India generally offer the various types of Modern products that are listed below:
- Savings bank accounts
- Current bank accounts
- Fixed Deposit Account
- Recurring deposit accounts
- Demat Accounts
- Debit Cards
- Credit cards, etc.
What Banks Offering to you:
Currently, banks offer almost all kinds of services, from depositing money to collecting taxes / GST collection. However, we are listing some of them:
- The basic service of each bank is to deposit the client’s money and provide it to another client. That actually provides his service. The bank’s benefit comes from the difference in interest that it is charging the lender. Also, it gains profit from the interest that the bank pays to the depositor.
- Another type of service more common is the safe deposit cabinets. Almost all banks have lockers to maintain safe custody of customer belongings.
- Discounts of invoices/collection of checks for compensation.
- Currency transaction / subsequent credit / bank guarantee / letter of credit
- Financing of infrastructure projects/development projects and financing of the priority sector (agriculture / MSME).
- Issuance of NSC / PPF accounts / Sukanya Samridhi Accounts.
- NPS svavlamban where a person can contribute on their own to their retirement plan.
- Health insurance: Almost all banks have a link with a different company that deals with medical care. They do this collaboration to provide health insurance to their clients in the bank itself.
- Life insurance: Just like health insurance banks have links with large corporations that deal with life insurance to provide their clients.
- General Insurance: Banks now also deals with general insurance companies. As an example, if you want to ensure your vehicle, home or leave, you can simply visit your bank branch and ask about the same. It could make your service easily performed.
- GST-R Returns / Income Tax Collection: Banks collect GST-R and income tax collection for the government. It is also in the list of modern banking products.
- Provide ATM cards / credit card / mobile banking / Internet banking / Bhim adhaar / POS machines to various outlets.
- Some of the bank branches also operate Adhaar card machines where you can create/modify your adhaar card. Banks have been authorized by UIDAI to perform such tasks.
- Opening of PMSBY / PMJJBY / PMJDY accounts and implementation of various government schemes.
- Export invoices / Post-credit invoicing / Shipping invoices Discounts and provision of intermediation services between different countries.
The banks offer money that you can borrow or withdraw money from the bank. This is in general or if you need to buy a house or a car, they give you credit. Then the credit reimbursements every month. They get a percentage of their own salary from that. These all make the full list of modern banking products.