After reading this article you will learn about the direct and indirect services provided at the branch of a bank.
Direct Services Provided at Branch Level:
A normal branch provides following services directly:
1) Acceptance of cash,
2) Payment of cash,
3) Issuing Drafts/pay orders,
4) Fixed deposits
5) Operation of Saving Account, Current Account, Over Draft Account,
6) Issue of cheque books,
7) Processing Stop Payment requests.
8) Accepting Standing Instructions,
9) Updating of Pass Books and issuing Statement of Accounts,
10) Opening and closing of accounts.
11) Issuing ATM Cards,
12) Transfer of funds,
13) Foreign exchange,
14) Issuing Bank Guarantee/Letter of Credit,
15) Acceptance of Government dues,
16) Collection of cheques,
17) Solvency Certificate,
18) Remittances,
19) Demand Loans, Personal Loans, Home Loans, Car Loans,
20) Credit Cards,
21) Lockers and Safe Deposit Vaults,
22) Exchange of mutilated currency notes, and
23) Education Loans etc.
The above list of services being provided directly in branches may differ from bank to bank as per the policy of the respective bank. Most banks try to provide most of the services through the branch channel. In certain cases branches do not provide Direct services for which they entertain the customers for getting them the required service through their controlling office or Head Office.
Indirect Services Provided at Branch Level:
Following are the services which are provided indirectly by the branches:
1. Big Loan proposal are accepted at branch level, sometimes processed also and thereafter sent to Higher authorities for consideration.
2. Loans to NBFCs.
3. Mortgage Loans.
4. Life Insurance and Mediclaims.
5. Pension. Although pension is directly disbursed to pensioners but is received through controlling office.
6. Brokerage Business.
7. Any other services which do not fall within the power of the Branch.
Keeping in view the high utility and popularity of branch banking some banks are trying to open specialized branches engaged in transacting specialized business only. These inter alia include
A. Sanctioning Hub:
In such branches all types of loans are processed and sanctions. But these do not deal directly with customers. Leads are generated at normal branches and are referred to the Sanctioning Hub for further action. However loans are disbursed at branch level only.
B. SSI Branches:
These branches deal with matters of Small Scale Industries.
C. MICRO- Financing Branches:
These are meant for Financial Inclusion as per Government Policy;
D. Foreign-Exchange Branches:
These deal with the matters relating to foreign Exchange only.
E. Signature branches:
In such type of branches customers are not required to visit different counters opened in normal branches for performing their different type of bank services. Rather customers are invited to site across a table in front of the bank employee and explain him the entire banking transactions he wishes to perform. The concerned bank employee takes own the duty of getting the things done himself while the customer is made to sit comfortably at one place.
F. Single Window Concept:
In such type of branches there remain many counters. The customer can go to any counter and get all his transactions on the single counter itself. In traditional type branches each counter provides only one type of service.
SF account holders are required to go to SF Counter and Current Account holder has to go to Current Account counter. In single window concept customer goes to any one counter and his all banking transactions are attended on the single counter.
The Branch is still considered as most liked channel of banking.
Providing Internet banking facilities, PIN/BIN No. and Passwords.