Page 121 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes Self Assessment

Fill in the blanks:
19. The ……………………….. policy of the central banking authorities is a factor in determining
the lending policy of a commercial bank.

20. ………………….. and …………………… in deposits in the banks also determine their
lending capacity.

Tasks
1. Chart out the procedure for getting loans and advances from bank with the important
documents required and other formalities to be completed.
2. Visit the nearest bank and enquire about the prevailing rates of interest on different
accounts and loans and advances.
3. Familiarize yourself with the important documents, like application form for loan,
including procedure involved in getting Short-term and Term loan.

4. Discuss with Bank Manager/P.R.O. regarding different types of securities to be
pledged/mortgaged against any particular type of loan raised.

Case Study UCO Bank Educational Loan

CO Bank is a Government of India Undertaken commercial bank. They handle
finance operations in various fields, such as, Agriculture, Industry, Trade &
UCommerce, Service Sector, Infrastructure Sector etc. The bank has a well developed
website to provide customers with the option of online banking.
Project Requirements
The bank required a system to process online requests from customers for UCO Education
Loan. The bank wanted the visitors (surfers) to be able to submit the education loan
application online. The head office users had to have the ability to manage zonal offices,
other head office users and state/district details. The zonal office users required the ability
to initially approve/reject user applications, assign/reassign approved request to respective
branches, update current status of requests and manage branch details of the respective
zonal office. The bank also required a daily status generator engine to generate status
reports and forward those automatically to the head office and zonal offices every day at
a pre-scheduled time.

Solution
The module created by All India Technologies provided the perfect solution to the
requirements of the bank. The use of ASP.Net (2.0 framework) with SQL Server in the back
end provided ample security and flexibility to the bank in its online operations. The use of
separate modules for each operation provided ease of understanding of the system for
bank employees.
Contd...

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