Sl.No. Chapter Page Number1 Introduction to FOB course 2

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Mutual IntroductionEvolution of Money and Banking

2 Overview of Banking 183 Business Mathematics 364 Financial Accounting 465 Customer Service 516 Types of Customers 727 Banker Customer Relationship 788 Types of Deposits 85

FOUNDATIONS OF BANKING COURSEFACILITATOR GUIDE – MODULE 1

TABLE OF CONTENTS

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INTRODUCTION TO FOUNDATIONS OF BANKING BLENDED COURSE

What is the objective of the course?The objective of the course is to help the students learn not only the “What and Why” of banking but also the “How”. This prepares the student to take up jobs in the banking industry.

Course Structure

The course structure is divided into three sections:

Section 1 – Basics of Banking

Section 2 – Banking Operations

Section 3 - Banking Environment

Where do we get the Course Content?

The course content is covered in the book “Banking Principles and Operations” by Mr. M. N. Gopinath, member of our Academic Council. This book is recommended for the course as it is keeping with the structure and has been written with the objective of imparting practical knowledge on banking.

Foundations of Banking Blended Course – Facilitator Guide and Student Workbook

We have created a “Facilitator Guide” for the college faculty. This Faciliator guide covers the learning methodology and handling strategy for each and every topic in the Foundations of Banking Course.

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Additionally we have also drawn up a “Student Workbook” for students. The college can take copies of the workbook or printout from soft copy available on the Campus LMS website. The student workbook indicates the recommended reading, e-Learning, assignments, projects and group work relevant for each topic in addition to “Check your understanding” questions at the end of each chapter.

Activities outside the classroom

Assignments, projects and visits have been suggested to widen the knowledge of the students enabling them to understand the big picture as well as understand the practical aspects of banking.

Presentation in class

Students are advised to work in groups and prepare on the topics, and present them in the class room. The role of the faculty will be to facilitate and guide the students in the learning process.

We have included different forms of presentations and group exercises in the workbook. These exercises help students to learn to work in groups as well as to present before an audience.

Role Plays

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Role plays are an exciting way of learning. The students wear different hats – the role of a banker, customer and observer and apply the concepts that they have learnt. It helps students to practice customer service behaviors as well as compliance with banking procedures in a safe environment. The role play scenarios are given in the student workbook as well as the facilitator guide.

Gaming and Simulation Modules

The gaming modules have been designed for students to acquire learning skills in a fun yet challenging manner. Students can repeatedly practice until they master the game and get skilled in the application. The CDs are made available to the faculty who attend the FDP.

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MUTUAL INTRODUCTION – NOTES FOR THE FACULTY

It is important for us to connect to the students and understand their goals and aspirations. Also this activity will help students connect to each other in class and build a bonding. The environment of trust will help open up the minds of students and make learning fun and interesting.

(Announce the instructions in a cheerful/dramatic manner)

Please do write a short introduction about yourself and share it with a friend! Please interview your friend to know him/her better. Then introduce your friend to the class and he/she will introduce you.

Make your mutual introduction different – funny/creative/special/touching… First go ahead and write your story…

Give timelines for the activity and encourage students to keep to timelines.- You could ask the students to complete the self profile at home, so that classroom time can be for sharing and mutual introduction.

My Story

My NameMy SchoolMy home town

Here are some ideas …You could use these or have your own creative introduction

Moments that I cherish Family Life School Life College Days

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My Dream destination – I would love to travel to

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Ten things that make me happya)b)c)d)e)f)g)h)i)

My favourites :

Books……………………………………………………………………………………………………… Movies…………………………………………………………………………………………………….

. Music………………………………………………………………………………………………………

. Sports……………………………………………………………………………………………………..

. Hobbies…………………………………………………………………………………………………… Colours

People who are important to me

Best Friend Most inspiring Teacher Loving Family member Inspiring personality ( could be teacher, family, or national

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Facilitators)

My passion :

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My goals

Goals in my personal life :

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Goals for a career :

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I would like to be remembered for… ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Interesting piece of information, which could be something like..

I hate…………. My secret wish…………. I am scared of…………..

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Evolution of Money - Facilitator Guide

Tips for an attractive beginning to the session

Interesting Quotes:

“Never invest your money in anything that eats or needs repairing.” - Billy Rose

"A fool may earn money, but it takes a wise man to keep it." - Scotland

Story - Money Problems A young man was having some money problems,

and needed Rs.5000 to get his car fixed and road-worthy again.

But had run out of people to borrow from. So, he calls his parents via the operator,

and reverses the charge and says to his dad, "I need to borrow Rupees Five Thousand."

At the other end, his father says, "Sorry, I can't hear you, son, I think there may be a bad line."

The boy shouts, "Five Thousand. I need Five Thousand Rupees!"

"Sorry, I still can't hear you clearly," says his father.

The operator cuts in, "Sorry to interfer , but I can hear him perfectly."

The father says, "Oh, good. YOU send him the money!"

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Fast Facts on Indian Rupee:

The Indian Rupee is the original official currency of India

The English translation of "Rupee" is "silver," and the name exists because it was previously a silver coin.

The issuance of the currency is controlled by the Reserve Bank of India

India was one of the earliest issuers of coins (circa 6th century BC).

The first "rupee" is believed to have been introduced by Sher Shah Suri

In 1861, the Government of India introduced its first paper money, 10 rupee notes. These were followed by 20 rupee notes in 1864, 5 rupees in 1872, 10,000 rupees in 1899, 100 rupees in 1900, 50 rupees in 1905, 500 rupees in 1907 and 1000 rupees in 1909. In 1917, 1 and 2½ rupees notes were introduced.

The language panel on Indian rupee banknotes display the denomination of the note in 15 of the 22 national languages of India

Objective:

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At the end of the session students will be able to explain the evolution of money and banking.

Sub Topic :

Evolution of Money Evolution of Banking Banking in India

Training sequence

Activity Duration (in hours)

E-Learning Evolution of Money and Banking e-learning module to be completed before the session

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Pre Classroom Activity

Assignment-Check RBI website for history of money and banking.Website - www.rbi.org.in/commonman/ financial education

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Classroom Activity

Handling strategy 1Facilitation & SummaryCheck your understanding & Puzzle

Outside classroom activity

Reference Books- Banking Principles and Operations- Mr. M N Gopinath

Handling strategy

Instruction Ask the participants to form groups say on the basis of (Date of Birth, Month of birth, age etc.) & ask them to name their groupAsk each group to present at least 5 points which they have learnt from the e-learning. Ask the other participants to make a note of the important points when one group is presenting1. Evolution of Money - from barter to plastic.2. Evolution of Banking - In the world and in India

Ask each group to present their learning from the e-learning modules and the RBI website .Other participants to note down the points and ensure that the points are not repeated. Each group to be advised that in addition to the basic concepts, they can include interesting stories, history, news, anecdotes relating to the topic to make their presentation interesting and different.

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Quiz Time

Ask the following five questions to each group like a rapid fire round

Group A

1. In barter system we could only exchange _____________a) Goods b) Money c) Cash

2. Metal was used for a certain time as a preferred mode of currency (Am I Serious / Joking )

3. Paper money was first used by a) Indians b) Chinese c) Americans

4. Re-order the stages of Evolution of Money in the order of their existence

j) Cheques (5th)k) Barter(1st)l) Paper currency (3rd)m) Banks (4th)n) Coins (2nd)o) Electronic Money(7th)p) Plastic (6th)

1. Money is derived from the word _____________ a) Monetics b) Moneta c) Monetize

Group B 1. _____________ fixed the first official exchange rate of 10 silver coins equal to 1 gold coin

a) Alexander b) Romans c) Lydians

2. Paper currency replaced coins for the reason _________a) Paper had many colours on it b) Paper was easily availablec) Paper was better in terms of portability and convenience, and was

much lighter than metal

3. Paper currency was backed by the value of ___________ before it was abandoned

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a) Gold b) Silver c) Cattle

4. Name the two banks that were set up for providing long-term finance to the industries

a) ___________? (IDBI)b) ___________? (ICICI)

5. The central bank of our country is the Reserve Bank Of India

Summarise

Ask the students to volunteer to summarise the topic. Give opportunity to students who are silent and encourage them to share their ideas.

Learning in Evolution of Banking

CHECK YOUR UNDERSTANDING

Fill in the blanks

1. The acceptance of any object as money involves the consent of the User as well as the Society

2. Coins were widely accepted as money due to the convenience of nominal value rather

than weighing.

3. Paper currency was discontinued in China due to Hyper-Inflation

4. Receipts issued by the goldsmith were accepted as settlement of debts and evolved as “Bank Notes”

5. The main functions of money were store of value and common measure of value and later evolved into medium of exchange

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6. Development of double entry book keeping by Italians helped their ascent as Bankers7. The first banking institution in India, started in the year 1809, was Bank of Bengal

8. The Bank started by the Government of India in the year 1921 was Imperial Bank of India. It was later rechristened State Bank of India in the year 1955 under an act of Parliament.

9. Fourteen Banks were nationalized in the year 1969 to promote banking services and financial assistance

10.The Government permitted setting up of Banks in the private sector in 1994 to inject an element of competition

Indicate whether the following statements are true or false

1. Money is important only because of its economic value. False

2. Cattle represented ownership of wealth and hence were used as a medium of exchange-Ans- True

3. Money deposited with banks is called intangible money True

4. Banks create money by lending, thereby fueling economic growthTrue

5. Government can influence the policies of nationalized banks True

6. Coins and currency notes are issued by Reserve Bank of India True

7. New private sector banks have brought in technology and management practices to improve the banking system in IndiaTrue

8. The Government’s share in nationalized banks has got diluted since 2000 True

9. The Government has brought about an improvement in the functioning of nationalized banks by introducing the element of competition from new private sector banks True

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10.The financial health of the Banking industry in India has improved in the last decade due to the efforts of RBI True

Your Crossword Puzzle

      1     2       3            4                                                                                                  5                         6                7                                                               8                                                         

ACROSS

3. First people to use paper money4. Made of gold and silver5. Value of goods and services-7. Origin of Banking (city)8. Coins and currency notes, when deposited into accounts with banks, become

DOWN

1. Medium of exchange- Barter2. Goddess of warning- Moneta6. Chinese used - Paper

Answers :

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Across

3-Lydians

4- Money

5- Metal Coins

6- Babylonia

7—Intangible

Down

1- Barter

2-Moneta

3-Paper

Feedback on the session:

How did you find the session?

Were the training aids used effectively?

Was the methodology to communicate the topic apt?

Has the training being able to meet your expectations of what you wanted to learn?

Administer the continuous evaluation test to the students to confirm learning

Know The Word :

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This section is to improve the vocabulary of the students. Encourage the students to discover the meanings and usage of new words every day.

Golden Words:

Bargain- Something offered, bought, or sold at a price favorable to the buyer; the terms of a mutual agreement; to discuss the details of a transaction.

Opulence - Wealth; affluence

Find the meaning of the words: (Ask the students to check the dictionary)

Money -

Asset -

Banker - Trust –

Evolution -

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Overview of Banking - Facilitator Guide Opening Case :

Ranjit was waiting anxiously to draw cash from the ATM of ABC Bank for the past half an hour. The shutters of the branch were down as the business hour was only till 6 p.m. It was already 7 p.m and he had a train to catch at 10 p.m. There was a large queue of customers who were getting restless and shouting at the security guard. The ATM had run out of cash. Many of the customers had come here after trying the nearest ATM of ABC Bank which was also out of cash. The guard assured them that he had called up the vendors and they will be coming shortly to load cash. There were no other ATMs in the locality. The customers were discussing rumours that the Bank was making losses and might not have enough cash to pay back its depositors. Ranjit was worried – his entire savings of Rs.75000 was in ABC Bank. He had worked very hard for the past six years as a cook in a hotel to save money for his sister’s wedding. He was traveling to his home town for his sister’s engagement and he had only Rs.100 in his wallet. He had told his parents that he would bring cash Rs.25000/- for the wedding expenses.

Just then the branch manager lifted the shutters and came out of the branch. He apologized to the customers for the inconvenience, informed them that the ATM would be loaded in the next two hours but whoever needed cash urgently, they could withdraw from the branch. Ranjit was pleasantly surprised that even at that hour, the cashier was smiling and greeting the customers politely. The cashier was also very efficient as he quickly made payments within two minutes to each customer. Ranjit was relieved as he walked out of the branch with cash in his wallet.

Discuss in the light of the above case the factors that impacted the trust of the customers.

How would you have felt had you been in Ranjit’s place?

How did the branch manager and staff handle the situation?

Do you think they managed to retain the trust of customers?

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Objective : This topic will help students appreciate the big picture, the importance of banks in the economy and the varied products and services offered by banks.

" Students will able to appreciate the importance of the concept " Banking is a business of Trust"

Sub Topic :

1. Overview of banking2. Definition of Banking3. Roles of Banks-Banking a Business of Trust4. Banking Services and 5. Products-Banking Channels

Training Sequence:Activity Duratio

n (in hours)

E-learning Overview of Banking e-learning module to be completed 4Pre Classroom

Group assignment

1. Divide the class into four groups and assign one of the four topics to each group.

Banks contribute to economic growth of a region in their role as intermediaries

Economy will come to a halt without the payment mechanism of banks

Allied services offered by banks add value to the Banks and to customers

Banking is a business of trust

2. Instruct groups to prepare a scrap book on the assigned topics taking inputs from print media - cut and paste articles and advertisements from newspapers, magazines. Also use pamphlets / brochures brought out by Banks.

3. Ask each group to prepare a power point presentation

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highlighting the key points.

4. Advise the groups that they can come up with a role play as part of their presentation

Classroom Activity

Activity I - Presentation, Role play - Power of BankingActivity – Draw, identify from pictures

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Activity II – Banking is a business of Trust Activity III – Identify the features and benefits of banking productsActivity IV – Check your Understanding

Additional Reading

Banking Principles and Operations- Mr. M N Gopinath

CLASSROOM ACTIVITY

Presentation and role play

Ask the groups to display their scrap book in the classroom. Invite team members from each group to review the scrap books prepared by other groups. Ask each student to jot down the good points in the scrap books. Group Facilitators to compile the points brought out by the team members.

Ask each group to present their topic in class. Advise students to be attentive and list down their learning from the presentation made by other groups.

Points Ideas Query (?)

Ask each group Facilitator to share the learning points from each scrap book and

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presentation. Encourage students to give constructive feedback and appreciate the good points presented by others.

Role Play

Some tips to the groups for coming up with role plays

Banks as intermediariesRoles – Banker, depositor, borrower.

(Hints – Sheela gives a loan of Rs. 1 lakh to her friend Mala. After two months Sheela needs the money urgently, but Mala has invested the money in her business and is able to give back the money only after a month. Next time Mala comes for a loan, Sheela refuses.)

Scene 2: Sheela deposits money with the Bank and withdraw money at her convenience. Mala applies to the Bank for a loan. What are the checks that the Bank does before sanctioning the loan?

Create an exciting atmosphere and encourage the good work done by participants. Help them bring out the necessary points by asking the following questions at the appropriate time.

DISCUSSION

1. Why are Banks needed in the economy?2. Are interest payments and finance the only benefits offered by Banks to

customers?3. What are the various ways in which banks add value to customers?4. Why is banking called a business of trust?

What “Trust means to me “ - express through a diagram Ask students to draw in their note books how they visualise/ picturise the

concept of “Trust”

Go around and check their drawings.

Bring out the important points by asking the following questions.

1. What do we understand by trust?2. Who are the people whom we trust? Why?3. How is trust important in banking business?4. How can banks win the trust of customers?

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CLASSROOM ACTIVITY III – IDENTIFY THE FEATURES AND BENEFITS OF BANKING PRODUCTS AND SERVICES

What is the difference between feature and benefit?

Features and Benefits: A feature is a characteristic of the product. A benefit is the value of the feature to the customer.Customers buy products/service for the benefit they offer and not for their features.Eg. The feature of bath soap is that it contains rose essence – the benefit is the fragrance as well as the freshness it offers.Eg. The feature of an ATM is that it offers 24X7 access. The benefit is that you have the convenience to withdraw money any time at any place.

Identify the features and benefits of the following products and services

Faculty Tips: There are different pictures showing different banking products and services.

1. Ask the students to attempt the exercise in the classroom.2. Invite students to share their points and discuss3. Ask students to do some home work -check the website for more information about

features and benefits 4. Ask students to form groups and present their learning in class. Guide them to

bring out the most important benefits.

Some hints about the benefits of products are given below for your reference.

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Savings account - Safety, Convenience of deposit and withdrawal at any time, interest earning.

CHEQUE BOOK - Convenience – can issue cheques for making payments without the hassle of carrying cash.INTERNET BANKING - Convenience of access from the comfort of home or office. Check balance, funds transfer, shopping online

ATM - Withdraw cash anytime of day, from anywhere across cities, no need to carry cash especially during travel.

MOBILE BANKING – check balances instantly, receive SMS alerts, funds transfer on the go.

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CUMULATIVE FIXED DEPOSIT

Safety – Mental peace that investment can be redeemed any time.Growth – A small investment of Rs.100000/- automatically doubles in a few years due to the power of compounding.

Recurring Deposit

Helps build regular saving habit.

Small amounts saved every month accumulate to a sizeable amount at the end of the period.

For eg. Rs.5000/- saved every month for two years will give Rs.1,20,000 + interest at the end of two years. Can come in handy for education expenses, travel abroad etc.

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MONTHLY INTEREST PAYOUT ON FIXED DEPOSIT

Ideal for retired people to invest their retirement funds and receive regular monthly income.

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HOME LOAN

The joy of owning a home, a space where you can live happily with your family.

LIFE INSURANCE – Peace of securing future for family, accumulate wealth for future requirements

REMITTANCE FACILITIES FOR NRI CUSTOMERS

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The j

The joy of taking your family along on weekends, holidays, the comfort of traveling to office.

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BUSINESS CREDIT

CHECK YOUR UNDERSTANDING

A. Choose the correct answer(s)

1. The primary activity of Banks a) Accepting deposits from the publicb) Lending moneyc) Investment of money d) All of the above

2. The important roles played by Banks in the economy area) Intermediaries b) Payment Mechanismc) Financial Servicesd) All of the above

3. Customers deposit money with Banks becausea) Their money is stored in a safe placeb) They get higher returns by way of interestc) They have the option to withdraw the money whenever they required) Transactions through banks are convenient than handling cashe) All of the above

4. Individuals who have surplus money are unwilling to lend directly to entrepreneurs because

a) They do not have the expertise to assess the credit worthiness of the borrowerb) They do not have the capacity to recover the money in case the borrower fails

to repayc) They might not be able to recall the loan immediately for their urgent

requirementsd) All of the above

5. The payment mechanism of Banks is important for the economy becausea) It generates profits for the banksb) It enables huge volumes of transactions through chequesc) It enables movement of funds from place to placed) All of the abovee) Only b and c

6. ABC & Co has a current account with First Union Bank Andheri Branch. It has paid

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salary to its employees through cheques. Meera has her bank account with First Union Bank, Andheri Branch. She deposits the salary cheque in her account.

a) This is a CMS transactionb) Meera’s account will be debited as a transfer entryc) Meera’s account will be credited as a transfer entryd) None of the above

7. Bill of Exchange is a a) Document of title to goodsb) Bundle of RR and invoicec) Instruction to exchange the bill for invoice

8. Ashish lives in Bombay. He needs to remit Rs.1000/- to IGNOU Delhi for obtaining their prospectus.

a) He has to go to Delhi and pay cash at IGNOUb) He can send a cheque from his Bank account at Mumbaic) He can send a Banker’s cheque payable at Mumbaid) He can send a Demand draft payable at Delhi

9. Raj is planning to visit various cities in the south for business promotion. He needs money for his expenses during the month long tour.a) He should withdraw cash Rs.1 lakh and carry it with himb) He should have an ATM card and withdraw cash wherever there are ATMs.c) He should use his debit card at ATMs as well as merchant establishments for his

purchases and expensesd) He should use his credit carde) c and d

10. Mr.Viswam has retired from office and has Rs.5 lakhs in hand.

a) He should deposit in a savings account for safety and convenient withdrawalb) He should place a fixed deposit in a bank to earn higher interestc) He should invest in shares and earn higher returnsd) He should have a portfolio of savings, fixed deposits, mutual funds and bonds to

increase returns as well as diversify risk

11. Sharon earns a salary of Rs.40000/- per month. His dream is to buy a car and go for a drive with family on weekends.

a) He can save regularly every month and build a lump sum in three years to buy a car

b) He can use his credit card to buy a car and repay after three yearsc) He can avail a car loan from a Bank and repay in monthly installmentsd) He can take a loan from his friends and relatives and give them a drive every

weekend.

12. Shekar & Co has a credit limit of Rs.5 lakhs with a Bank against the security of its

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stock. The type of loan facility it enjoys is called:

a) Overdraftb) Demand Loanc) Cash Creditd) Bill Purchase

13. Heera has bought a diamond necklace worth Rs.1 lakh. She wants to keep it safe. She should

a) Hire a safe deposit locker with a Bank and place the necklace in the locker.b) Keep it locked in her Godrej cupboard at homec) Keep it in her friend’s locker and share the rentd) Wear it all the time so that she has control

14. Sriram would like to have Rs.5 lakhs ready for his daughter’s higher education .His daughter is 6 years old. He earns Rs.40000/- per month and has invested all his surplus funds in buying a home.

a) He should start a recurring deposit for Rs. 5000/- per month for 10 yearsb) He should invest in a fixed deposit after 5 yearsc) He should take a loan after 10 yearsd) He should sell his house, so he need not save

15. Stanley has a savings account with a Bank. He is always on the move and would like to transact his account at his convenience. The channels available to him are:

a) ATMb) Phone bankingc) Mobile Bankingd) Internet Bankinge) All of the above

B. Indicate whether the following statements are True or False

a) Transfer transactions can take place between branches of a bank without central-ized systems.

b) Clearing can take place only in cities where Reserve Bank offices exist.

c) Recurring Deposits are ideal for salaried people to save regularly

d) Retail loans are given to individuals for their requirements like buying a home, car, vehicle etc.

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e) Multi-city cheques are payable at any branch of the Bank

C. Fill in the blanks

a) Ashok has a savings account in his name with X Bank. His wife Beena also has a savings account with the same bank branch. He issues a crossed cheque from his account favouring Beena. Beena deposits the cheque into her account. Bank will treat this transaction as __________ and will give credit to ______account by debiting ________account.

b) Beena issues a cheque for Rs.1000/- from her savings account to her brother Mitesh. Mitesh deposits the cheque in his account with Y Bank. Y Bank will collect the funds from X Bank through_______________________

c) __________will act as clearing house where RBI has a branch and where RBI is not having a branch, generally _____ or _________ as mutually agreed by banks in that centre will act as a clearing house.

d) For safety and protection purposes_________ _________ is affixed by the collecting banker.

e) Cheques drawn on a branch in Chennai when deposited by a customer in a Bank in Delhi will go under _________ clearing.

f) CMS facilitates _________ and ___________ efficiently in order to improve ______________ of a corporate.

g) ECS _____________ facilitates large service providers to collect their periodic dues from users.

h) ECS is operated through _________.

i) ECS _______ is used for making payments of _____amounts in ________volumes.

j) For amounts of higher value (say Rs.1 lakh and above), ________clearing is used.

k) ________________________ risk is the possibility of a loss due to change in the interest rates in the market

l) _______________________ risk is the possibility that the borrower may not have funds to repay the loan immediately on demand, even though he is credit worthy

m) Banks have a duty of _________________________ to customers, to maintain confiden-tiality of the customer’s accounts.

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n) ____________________ and ________________________ are inversely related and Banks have to find a balance between the two

o) Banks have to ensure that they maintain _____________________ ____________________ in customer interactions and transactions.

p) Banks earn fee income by selling ________________ Products

q) Banks pay higher interest on _______________ deposits than _________________ de-posits and zero interest on ___________________________

r) De mat accounts maintained by banks are very similar to savings accounts. When-ever an account holder buys shares, the number of shares will be _____________to his account and when he sells it, his account will be ________________

s) The amount up to which the credit cardholders can make purchases or withdrawals is called the ________________and it is fixed according to the ______________ capacity of the person

t) Funds required for acquiring fixed assets are given ________________ which are re-paid in instalments from the profits of the company

Administer the continuous evaluation test on the topic

Closing Case :

Mitra stepped into the busy branch of ABC Bank at 9 a.m on a Monday morning. The branch was open between 9 a.m to 6 p.m and a few of the staff were also just walking in. One or two counters were open and there were a few customers already waiting in the lobby. Mitra had wanted to complete her transaction quickly and reach college in time for her first lecture at 10 a.m. She took a token and was pacing the lobby and looking at the notice board when her ears caught the name of her head of department in the conversation between two of the customer service officers who were standing behind their desks arranging the papers. They had not yet settled down at the counters.

“Congratulations Chandini. I heard that you had sold an insurance policy of Rs.5 lakhs yesterday to Mrs.Suniti Malhotra? It is amazing how you got such a big amount.” Mitra heard the girl called Chandini reply proudly “Oh yes. Mrs. Malhotra

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has fixed deposits in three or four banks. She seemed to be clueless as to how to manage her funds and about the investment opportunities but she was so arrogant that she would not admit it. It was very easy to convince her once I showed off my knowledge about the markets. She has promised to get her son to open an NRE account with us. She said he was earning USD 10000 per month and is sending her USD 2000 every month– She has such a comfortable job as a lecturer and a son who sends her money- she wears such costly sarees and travels only by car - no wonder she is so arrogant - but I don’t mind so long as she gives me business.”

Chandini and her friend settled down at their desk and opened their counters for customers.

Mrs. Malhotra had told Mitra the previous day that there were attractive tax saving investment options offered by the Bank and Mitra should start an insurance policy. Mitra had wanted to create a fixed deposit and a recurring deposit, so she thought she would explore the options offered by the Bank. Having come to the branch, she had taken a token for cash withdrawal as she needed notes of smaller denomination. She was called to the counter of Chandini for her transaction of cash withdrawal. Chandini checked the account of Mitra and found that it had a balance of Rs.1 lakh and it was the salary account of Hindu College. She smiled cheerfully at Mitra and said “Welcome mam, we are proud to service lecturers like you, we have some attractive investment opportunities for you”. Mitra looked at her and without smiling, said, “I know, but I am not interested”

What do you think are the concerns that Mitra would have after this experience? What would you do if you were Mitra? Discuss how the concept of secrecy impacts the trust of customers and the

prospects of getting more business.

Know The Word :

This section is to improve the vocabulary of the students. Encourage the students to discover the meanings and usage of new words every day .

Trust Words:

Trust - Firm reliance on the integrity, ability, or character of a person or thing.

Synonyms of Trust: accredit assume

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bank on be convinced bet bottom dollar on bet on, build on calculate on confide in have faith in hope imagine lay money on lean on place trust in presume rely upon

Find the word : Reckon on-

Gamble on

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Business Mathematics - Facilitator Guide

Objective :

To understand how the concepts of business mathematics are relevant for bankers and customers

Sub Topics :

Session 1 : Basic - Simple and Compound Interest- Fixed and Floating rates of interest

Session 2 : Advanced - Methods of Repayment- Time Value of Money- Bonds

Training sequence

Activity Duration (in Hours)

E-learning Complete the e-learning module on Business Mathematics - basic

3

Classroom Exercise -Check your understanding 1Presentation 2Question for discussion

36

Advise students to complete the questions given below before the classroom session :

CHECK YOUR UNDERSTANDING

         PART 1: ANSWER THE FOLLOWING     1) What is the method of calculation of interest payable quarterly?  

 __________

   

2)Customer deposited Rs.10000/- and got Rs.12100/- at the end of two years. What is the method of calculation of interest if the rate is 10 % p.a.?  

 __________

   3) At what frequency is the interest compounded in Bank's cumulative de-

posit plan?  

 ___________

   4) What is the simple interest on a fixed deposit of Rs.100000/- for 12

months at 6 % p.a.?  

 ___________

   5) What is the interest that would be paid every quarter in the above case?  

 ___________

   6) Customer deposited Rs.5000/- on January 1st.He withdrew entire money

on Jan 2nd. He deposited again Rs.5000 /- on March 31st .Has he main-  

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tained average quarterly minimum balance of Rs.5000?

 ___________

   7) What is the average quarterly balance maintained by the customer?  

 ___________

   8) What is the rate of interest paid on savings account?  

 ___________

   9) Savings interest is calculated on the basis of  

 ___________

   

10)A customer had an overdraft of Rs.15000/- in his current account on April 10th. He deposited Rs.10000/- in to the account on April 15th, Rs.2000 on April 20th and Rs2000/- on April 25th. How much amount should he pay with interest on April 30th to close his overdraft?  

 ___________

       

PART 2: CALCULATION OF INTEREST - Exercises1) Gita deposited Rs.1, 00,000/- for a period of 24 months at 7% p.a. under Quarterly

Interest scheme with a Bank. What is the interest amount she will receive every quarter?

2) What is the total interest earned by Gita on the fixed deposit?

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3) Sheeba had placed a cumulative fixed deposit of Rs.13, 00,000/- with the Bank on 5 th May 2006, at 8 % interest p.a. find out the maturity value of the deposit that she will receive on 5th May 2007?

4) Seetha needs Rs.10, 00,000/- at the end of 5 years .Find the principal she must invest to get this maturity value, assuming the rate of interest to be 7 % p.a.

5) Arjun had a savings account with a Bank. His transactions in the Bank account for the six months October 1, 2006 to March 31, 2007 are given below. What is the savings account interest that will be credited to his account on March 31st?

 

Date Transaction Amount (Rs.)

 

Oct. 1 Opening balance 10000Oct. 2 Salary credit 60000Oct. 5 Cash withdrawal 20000Oct. 12 Recurring deposit 5000Nov. 2 Salary credit 50000Nov. 3 Cash withdrawal 8000Nov. 5 Cash withdrawal 15000Nov. 12 Transfer to RD 5000Dec. 1 Salary 50000Dec. 2 Cash withdrawal 20000Dec. 12 Transfer to RD 5000Jan. 9 PF credited 400000Jan. 12 Transfer to RD 5000Feb. 12 Transfer to RD 5000Mar. 12 Transfer to RD 5000

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Hint: Draw up a savings bank account of Arun .The first three transactions are entered to give you a start. Go ahead and enter all the transactions in Arun's savings account. On which balance will you pay interest. Check and calculate the interest.Date Particulars of

transactionsDebit Credi

t Balance

Oct 1 By Balance brought forward 10000Oct 2 By Salary 6000

0 70000

Oct 3 To cash withdrawal 20000 50000

PART 3 - Check Your Understanding

Choose the correct answer (s :

1. Interest rates on floating rate fixed deposits are

floating every year reset every quarter fixed for the first year reset every year

2. Fixed rate home loans are profitable to customers

When interest rates are on the increase every year When interest rates are declining year on year

3. Vimal has taken a home loan in year 2004 at the rate of 7 % p.a. fixed, repayable in 120 months. The home loan rates have increased to 10 % p.a. in 2007.

The home loan deal is profitable to the Bank The home loan deal is profitable to Vimal

4. Deepak took a home loan in year 2000 at the rate of 12 % p.a., fixed rate, repayable in 180 months. The interest rate offered by the Bank reduced to 7 % p.a. in 2004 and increased to 10 % p.a. in 2007.

At present, the deal is profitable

To the Bank To Deepak

5. Under what circumstances will the home loan deal be profitable to Deepak?

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6. Bank’s rate of interest increases for the remaining period to:

11 % 15 % 12% Decreases to 8%

7. Equated monthly installment is a method of repayment

Where interest is paid every month Where only Principal is paid every month in equal installments The repayment is allocated into Principal and interest every month The amount paid by the customer every month does not vary

Session II - Advanced Business Mathematics

Activity Duration (in Hours)

E-learning Complete the e-learning module on Business Mathematics - Advanced

3

Classroom Exercise 1Presentation 2Question for discussionReference Books - Accounting and Finance for Bankers - Macmillan

Additional Reading

Read the Amortization Chart given below and fill in the blanks. Discuss the distinct features of the EMI scheme.

         Enter loan amount   200000   ROI (p.a.)   9.00%   Term in years   1                   EMI (monthly rest)   17,490.30             Amortization schedule        

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         Months Opening Interest Principal Closing         

1 200000 1500 15990 1840102 184010 1380 16110 1678993 167899 1259 16231 1516684 151668 1138 16353 1353165 135316 1015 16475 1188406 118840 891 16599 1022417 102241 767 16723 855188 85518 641 16849 686699 68669 515 16975 51694

10 51694 388 17103 3459111 34591 259 17231 1736012 17360 130 17360 0

MATCH THE PAIRSPart A Part B1. Yield to maturity 1.Interest rate offered on the bond

2. Price of the bond 2. Bonds Issued by Government

3. Par value of the bond 3. Coupon /market price *100

4. Current Yield4. Interest rate is not specified on the bond. Maturity value is specified

5. Amortisation5. Rate of interest which equates discounted value of cash flows to the current market price

6. Deep discount bond 6. Face value of the bond

7. Coupon rate 7. The value that the bondholder will get on redemption

8. Maturity value 8. Present value of future cash flows

9. Cash inflows 9. Annual interest + maturity value

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10. Risk free Bonds 10. Repayment of principal every year

A bond certificate picture is given identify the various features of the bond certificate

Who is the issuer of this bond? What is the face value of this bond? What is the maturity value? What is the maturity date? What is the interest rate? When is the interest paid to the bondholder? Can this bond be sold in the market?

CLASS ACTIVITY

Presentation

Ask the participants to form four groups and present on the learning from the e-learning modules

Topics will be allotted to groups on the day of presentation. 15 minutes will be given to the teams for preparation and then to each team to present. After all the teams have presented, important points can be discussed

Topics can be

Simple Interest Compound Interest Fixed & Floating rates

Methods of repaymentAmortisationReschedulingDiscounting

Time Value Of MoneyFuture ValuePresent valueAnnuityNet Present ValueInternal Rate of Return

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Examples on each topic to be highlighted by the participants to get a clear understanding of the subject matter

Questions for facilitation

f) What is the relevance of these concepts for customers?g) How can bankers educate customers?

Summarise your learning from the entire session

Story Time – One grain of rice and then double…

When the creator of the game of chess showed his invention to the ruler of the country, the ruler was so pleased that he gave the inventor the right to name his prize for the invention. The man, who was very wise, asked the king this: that for the first square of the chess board, he would receive one grain of rice, two for the second one, four on the third one, and so forth, doubling the amount each time. The ruler, arithmetically unaware, quickly accepted the inventor's offer, even getting offended by his perceived notion that the inventor was asking for such a low price, and ordered the treasurer to count and hand over the rice to the inventor. However, when the treasurer took more than a week to calculate the amount of rice, the ruler asked him for a reason for his tardiness. The treasurer then gave him the result of the calculation, and explained that it would be impossible to give the inventor the reward.

Can you guess why the treasurer said that it would be impossible to give the reward?

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The number of grains of rice on the first half of the chessboard is 1 + 2 + 4 + 8 + 16 + 32 + 64 + 128 + 256 + 512 + 1024 + ... + 2,147,483,648, for a total of 2 32 − 1 = 4,294,967,295 grains of rice, or about 100,000 kg of rice, with the mass of one grain of rice taken as 25 mg[2]. This amount is about 1/1,200,000th of total rice production in India per annum (in 2005) [3].

While the number of grains on the first half of the chessboard is large, the amount on the second half is vastly larger.

The number of grains of rice on the second half of the chessboard is 232 + 233 + 234 ... + 263, for a total of 264 − 232 grains of rice, or the square of the number of grains on the first half of the board plus itself. (Indeed, the first square of the second half alone contains more grains than the entire first half.) On the 64th square of the chessboard alone there would be 263 = 9,223,372,036,854,775,808 grains of rice, or more than two billion times as much on the first half of the chessboard.

On the entire chessboard there would be 264 − 1 = 18,446,744,073,709,551,615 grains of rice, weighing 461,168,602,000 metric tons.

Moral of the story: Start saving early in life and use the power of compounding to multiply your money a million times !

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Financial Accounting - Facilitator Guide

Objective:

To build an understanding of the basic accounting principles applicable in banking

Sub Topic:

Concepts of Accounting Double entry book keeping Types of accounts Accounting process Journal and Ledger Financial Statements-Trial Balance, Profit and Loss statement, Balance Sheet-

Adjustment entries Accounting Standards

Training sequence

Activity Duration (In hours)

E-Learning Complete the e-learning module on Financial Accounting 4Pre Classroom Check your understandingClassroom Presentation

Story Time2

Reference Books

Accounting and Finance for Bankers - Macmillan

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Exercise

A. Write the journal entries for the following transactions in Nurul Hassan's books. The first entry is given here as an example.

Nurul Hassan starts a fresh paneer shop with Rs. 8000 as capital.Cash A/c Dr. Rs. 8000

To Capital A/c Rs.8000

He borrows Rs. 2000 from his father-in-law Mr. Ahmed.

He opens a current account with Punjab National Bank (PNB) and deposits Rs. 5000.

He buys a fridge from Vijay Sales Co for Rs. 11000 with a loan of Rs. 10000 from Citi Financials. For the balance money, he issues a cheque to Vijay Sales Co.

He buys furniture for Rs. 4000 from a carpenter Ramvilas and pays cash to him.

He buys a weighing machine for Rs. 2000 from Kirloskar and issues a cheque for it.

During the first month, he:a. Purchases a total of 690 kilos of paneer for Rs. 69000. b. Sells it for Rs. 86250. Although purchase and sales happens daily, Nurul

maintains only one set of entries for convenience sake. There is no closing stock at the end of the first month.

c. He pays cash of Rs. 800 for electricity.d. He pays Rs. 1500 to Vincent, a helper as salary in cash

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e. He deposits Rs. 10000 in the bank.f. He issues a cheque for Rs. 2200 in favour of Citi Financials of which Rs. 2000 is towards instalment and Rs. 200 is towards interest.g. He issues a cheque for Rs. 2000 to Nagarajan towards rent.h. He gives a loan of Rs. 1000 to Prabhu, a friend in cash.i. He gives a donation of Rs. 100 to Sai Orphanage in cash.j. He pays cash of Rs. 2000 to his wife, Noor for household expenses.

B. Based on the preceding transactions Post the journal entries in ledger accounts Balance each ledger account. Prepare a Trial Balance

CLASSROOM ACTIVITY

Presentation

Ask any of the participants to present on the following topicsa) Preparation and relevance of Journal & Ledgerb) Preparation and relevance of Profit & Loss A/c and balance sheet

Questions for facilitationa) How are accounting concepts relevant in banking transactions? b) What are the principles and practices that are useful in day to day operations in

banking?

STORY TIME : Great Waves

In the early days of the Meiji era there lived a well-known wrestler called O-nami, Great Waves.

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O-nami was immensly strong and knew the art of wresting. In his private bouts he defeated even his teacher, but in public was so bashful that his own pupils threw him.

O-nami felt he should go to a Zen master for help. Hakuju, a wandering teacher, was stopping in a little temple nearby, so O-nami went to see him and told him of his great trouble.

"Great Waves is your name," the teacher advised, "so stay in this temple tonight. Imagine that you are those billows. You are no longer a wrestler who is afraid. You are those huge waves sweeping everything before them, swallowing all in their path. Do this and you will be the greatest wrestler in the land."

The teacher retired. O-nami sat in meditation trying to imagine himself as waves. He thought of many different things. Then gradualy he turned more and more to the feeling of waves. As the night advanced the waves became larger and larger. They swept away the flowers in their vases. Even the Buddha in the shrine was inundated. Before dawn the temple was nothing but the ebb and flow of an immense sea.

In the morning the teacher found O-nami meditating, a faint smile on his face. He patted the wrestler's shoulder. "Now nothing can disturb you," he said. "You are those waves. You will sweep everything before you."

The same day O-nami entered the wrestling contests and won. After that, no one in Japan was able to defeat him.

What is your learning from the above story?

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Get creative- Suggest a different title for this story. Can you make it unique, yet relevant to the story?

What are your strengths? Talk about yourself/your strengths and the qualities that you admire in others. (You could speak about your winning smile, and the patience of your teacher...)

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Customer Service – Facilitator Guide Objective:

To understand the concepts of customer service. To inculcate service attitude and professionalism To help students to become customer service professionals

Sub Topics:

Customer Service Concepts Customer Service Process-Handling Complaints - Quality in Customer Service

E-learning module Corporate Attire, grooming and etiquette to be completed before the customer service session.

Activity Duration (in Hours)

E-learning - mandatory

Customer Service 4

E-learning – recommended for additional inputs

All about waste, Quality and Six Sigma for beginners, Quality Toolbox, Five S

Pre Classroom 1) Visit to a bank to get the feel of customer service 2) Visit to any service organization3) Read at least one of the books given below and prepare

a review- “FISH” by Stephen C. Lundin, Harry Paul and John

Christensen- “FISH sticks” by Stephen C. Lundin, Harry Paul and John

Christensen

6

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- “FISH tales” by Stephen C. Lundin, Harry Paul and John Christensen

- “Raving fans” by Stephen C. Lundin, Harry Paul and John Christensen

Classroom activity

- Show the videos and invite students to share their responses. Inculcate the customer service behaviour and encourage students to practice the same in class everyday.

- Help participants to prepare a customer service skit which will highlight the points on customer service aspects which you have shown in the videos

15

Presentation on Book Review (Fish, Fish Tales, Raving Fans, The Alchemist, Customer First)Role Play – Administer the role plays as given in the customer service role play booklets.Case-letDiscussionAttitude Story Time

Reference books Banking Principles and Operations by Mr.M.N.GopinathOther interesting books

“Lions don’t need to roar” by D.A.Benton “The Monk who sold his Ferrari” by Robin

Sharma “The Greatness Guide” by Robin

Sharma “Seven Habits of Highly Effective People” by Stephen

Covey “Men of Steel” by VIR Sanghvi “The Alchemist” by Paulo Coelho “Wise and Otherwise” by Sudha

Murthy “Wings of Fire” by Abdul

Kalam “Who moved my Cheese” by Spencer

Johnson “Jonathan Livingston Seagull” by Richard

Bach “The Present” by Spencer

Johnson “You can Win” by Shiv Khera “Customer First - A Strategy for Quality Service“ by

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Dennis Walker

CLASSROOM ACTIVITY

Draw the picture of anything that will bring a smile on your face. E.g.

Flower Ice cream

How happy and contended did you feel when you were able to bring a smile on anyone's face?

Mention your experience and your feelings below.

How important do you feel it is to help a customer, to bring a smile on his face?

Form groups in the class to facilitate learning.

Ask students to share their experience as customers. Encourage them to think of a restaurant, shop which they have visited recently. It could even by a grocery shop or a vegetable vendor.

Recall three different instances when you received

a) Excellent customer service. b) Good service c) Poor service.

These experiences could relate to any service – for example, restaurants, airports, hotels, hospitals, travels, banks etc.

1. Write down what were your needs and expectations when you approached the organization for service. Also write down what the organization/customer service officer/manager did which made you feel that the service was excellent, good or bad.

2. Write down any other aspects of the experience, which you think, contributed to your perception of excellent, good or bad service.

3. Did you share any of these experiences with your friends/ family? Why?

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Customer Satisfaction results when

Perception of customer service = Expectation

Let us see this through certain examples below

Scenario 1:

You are a busy person and expect quick service wherever you go. You go to a popular restaurant with your friend for dinner. Your friend tells you that the restaurant is famous for their delicious north Indian dishes. You take the menu card on the table and find the following statement on the first page:

“North Indian Dishes will take 20 minutes from the time the order is taken “

What do you think the restaurant is communicating to the customers? Do you think you can complain when the server takes 20 minutes to bring your order?

Scenario 2:

A signboard at the passport office said, “Expected turn around time – one month. For urgent processing in a week’s time, apply through TATKAL with an additional fee.”What will you do if you need a passport in ten days? What is the effect of this notice on customer service?

Scenario 3:

You are a customer service officer at the account-opening desk of a bank branch. The turn around time (TAT) for activation of a new account is 4 working days but you have a customer demanding that he needs his account to be activated by end of day. He tells you that your sales person had promised that he could open the account and start operating immediately. You know that it will take a minimum of 3 days to process the account opening form even on priority. What will you do?

REMEMBER

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The basic expectations of a customer are:

Value me, my time, my business Understand me Be reliable in delivery Provide solutions not excuses Advise me on alternatives and possibilities

While interacting with customers remember the four steps in customer interaction are:

Welcome Understand Serve Close

Situation

Have you experienced waiting at a restaurant, with waiters walking past you without eye contact? When they act as if you are non-existent, you would either create a noise demanding attention or walk out.

How do you feel when the waiter looks at you, and nods that he would be coming to you? You are prepared to wait for ten minutes once your presence has been acknowledged. Eye contact makes people feel comfortable.

Presentation 1Each group has to present on any of the books of “FISH”. Other participants must make a note of the learning from each group.

SMILE

“A smile is a curved line that puts everything straight”

As she entered the elevator, she noticed Bill right behind her. That will save me the trip to his office, she thought. The car was crowded so they didn't converse, but, when the door opened on her floor, she turned to Bill and handed her boss her bag, which had a distinct odour emanating from it. “A gift,Bill. It's called a smiling sushi.” As the door

55

closed she heard a loud, “Mary Jane!”

A few seconds after she was at her desk the phone rang. “Strange gift, Mary Jane.” said Bill with the hint of a smile in his voice. She told him what she had done on Saturday. ”Stay with it ,Mary Jane.I don't know what a fish market has to do with First Guarantee, but if you can make me smile with the day I have ahead, you may be on to something.”

Read on more in the book “FISH” ... what happens next after she hangs up on the phone.

Words that work like magic are:

Good Morning...Have a nice day...Have a great day...Thank you….Please …We understand …What can I do for you? ….We assure you…..

PRACTICE YOUR UNDERSTANDING

Activity 1: Visit to a Bank

Visit a bank and request for information on opening an account. Observe the body language, words used, attitude and attire of the staff. Observe how they interact with different customers. Write down how important it is to create a positive impact on clients.

Activity 2 - Practice Self-talk

Listen to your self-talk at different times of the day, when you interact with different people. Are you positive or negative? Imagine others can hear your self-talk. Would you like them to listen to your negative talk while you are trying to communicate goodwill through smile and greeting?

Have you heard people barking “Good Morning” without meaning it?

Imagine you are meeting your best friend. Track the self-talk that runs in your mind. Your self-talk could be “It is great to meet you. I really enjoy spending time with you. I would like to do anything to make you happy.” Can you practice this self-talk with the first person you meet today? Check what effect it has on your body language, your smile and the impact on the person whom you interacted with.

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Activity 3 - Eye contact

Practice eye contact with your friends and check if you are able to communicate better. Try maintaining eye contact when you meet seniors, top professionals. It will increase your confidence level and create a favourable impact.

Activity 4 - Greeting

Practice wishing your friends “Good Morning”. Check whether your voice conveys cheer and goodwill. Repeat the exercise again and again till you get the right tone. Practice the tone everyday and make it a habit.

Role Play

Ask the group to prepare a role play on a given situation at the bank they observed. Incorporate the above qualities discussed for customer service to enable a happy customer

E.g. two customers visit the branch to modify the nomination in their accounts. One customer has got married recently and wishes to make her spouse the nominee in her account. Your tone should be cheerful while you assure the customer that the nomination would be altered as per request.

The second customer wishes to change the nomination as the nominee has passed away. You need to alter your tone to respond to the customer’s grief and convey that you would take care to change the nomination.

If the customer is disturbed, you show concern and care. If the customer is enthusiastic, you reflect energy and enthusiasm. If the customer is angry, you maintain your poise while reflecting concern in solving his problem.

How was his query resolved? What was his reaction? Was he assisted in time? Why had he come to the branch for placing the request? Was there an alternate

which could be promoted or customer being educated on ? What was the customer’s reaction at the end of the conversation? Was the sequence of handling his query appropriate?(Listen-Probe-Understand-

Give Solution-Alternative-Educate-Thank)

Guide participants to give feedback to each group.

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List down your learning from the role play

DISCUSSION QUESTIONS

Ask participants to discuss the questions below and share their points.

What are our expectations as customers when we buy a product or service? List them down

Why is it important for businesses to have satisfied customers? List them down How can businesses increase their market share and profits by providing

excellent customer service? List them down What are the behavioural and technical aspects that contribute to good

customer service? List them down

EXERCISERecall any incident where you experienced bad service. What did you do? Did you go up to the manager and complain or did you just walk away deciding never to return?

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ATTITUDE

“The most significant change in a person's life is a change of attitude. Right attitudes produce right actions “

“You can't always change your situation, but you can always change your attitude “

“Ability is what you're capable of doing. Motivation determines what you do.

Attitude determines how well you do it “

“If a man empties his purse in his head, no one can take it away from him. An investment in knowledge always pays the best interest “

“Challenge each problem you face with purposeful thought and determined action. Resolve that 'every' situation you encounter will make you better, stronger,

wiser, more skilful and more loving “

“There is a little difference in people, but that little difference makes a big difference.

That little difference is attitude. The big difference is whether it is positive or negative “

“A happy person is not a person in a certain set of circumstances, but rather a person with a certain set of attitudes “

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STORY TIME

One day, a poor boy who was selling goods from door to door to pay his way through school, found he had only one thin dime left, and he was hungry. He decided he would ask for a meal at the next house.

However, he lost his nerve when a lovely young woman opened the door. Instead of a meal he asked for a glass of water. She thought he looked hungry so brought him a large glass of milk He drank it slowly, and then asked, "How much do I owe you?"

"You don't owe me anything," she replied "Mother has taught us never to accept payment for kindness."

He said, "Then I thank you from my heart."

As Howard Kelly left that house, he not only felt stronger physically but his faith in God and man was strong also. He had been ready to give up and quit.

Years later that young woman became critically ill. The local doctors were baffled. They finally sent her to the big city, where they called in specialists to study her rare disease. Dr. Howard Kelly was called in for the consultation.

When he heard the name of the town she came from, a strange light filled his eyes. Immediately he rose and went down the hall of the hospital to her room. Dressed in his doctor's gown he went in to see her. He recognized her at once. He went back to the consultation room determined to do his best to save her life. From that day he gave special attention to the case.

After a long struggle, the battle was won. Dr. Kelly requested the business office to pass the final bill to him for approval. He looked at it, then wrote something on the edge and the bill was sent to her room. She feared to open it, for she was sure it would take the rest of her life to pay for it all. Finally, she looked, and something caught her attention on the side as she read these words.

“Paid in full, with one glass of milk.” (Signed) Dr. Howard Kelly.

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Tears of joy flooded her eyes as her happy heart prayed: "Thank You GOD, that your love has spread abroad through human hearts and hands."

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ROLE-PLAYS

On Customer Service

62

Role plays are an exciting way of learning. It helps students to practice customer service behaviours as well as compliance with banking procedures in a safe AND FUN environment.

ROLE PLAY - The students wear different hats – the role of a banker, customer and observer and apply the concepts of customer service that they have learnt.

CUSTOMER BANKER OBSERVER

Discussion after role play

Feedback and discussion of learning after the role play exercise helps students to reflect on their behaviours as bankers and customers and understand different perspectives; helps identify shortfalls in their skills so that they can practice again and again till they are perfect. Students can help each other with observations of their behaviours both right and wrong and learn to give constructive feedback.PREREQUISITES FOR CUSTOMER SERVICE ROLE PLAY

Completion of e-learning module “ Business Etiquette” Preferably complete the e-learning module “types of deposits” as well.Completion of the session “Customer Service “ in class

Pre work -

Remember the steps in the three stages in Customer Interaction Cycle – Pre CI, CI and Post CI

Visit the website www.icicibank.com and check the inputs under deposits and interest rates to know the deposit products of the bank so that

63

customer queries can be answered.

Do a QUICK RECAP of the Customer Service concepts. You can conduct a quiz to excite students to remember the concepts.

2

Customer Satisfaction

Customerperceptionof servicereceived

Expectation

Dissatisfaction

Customerperceptionof servicereceived

Expectation

Delight

What are the expectations of customers?What is perception of service?What is customer satisfaction?

64

Customer Service Process – A recap

Pre CI - Pre Customer Interaction – Preparation Stage

Physical self – Grooming and Hygiene Mental self – Professionalism, positive, caring and service attitude Physical environment – Clean and tidy desk with all necessary documents

Customer Interaction Cycle Welcome –

o Make eye contact,o Smile, o greet, o offer to help

Understando Listen and observeo Acknowledge facts and feelingso Gather information – Know from data and probe for moreo Confirm Understanding

Serveo Inform Solution Patho Activate resolutiono Confirm resolution

Closeo Propose next stepso Offer Additional assistanceo Thank

Post Customer Interaction Follow up Keep commitments

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Facilitation of role playHow to facilitate the role play activity in class?

Role Play Activitiy Take a print out of the instructions sheets for banker, customer and observer.

( given in student workbook) Take a print out of the roleplay sheets – there are four different scenarios which

can be allotted to four different groups Divide students into groups of three each. Select students for the roles for the first role play

Students who score high in the banking quiz - BankerStudents who have good acting ability – CustomerStudents who are quiet and observant – Observer

After one round of role plays, the roles can be rotated in the next round so that everybody gets an opportunity to experience different roles.

Allot role plays to different groups Select one group to demonstrate the role play before the entire class and provide

inputs Then ask groups of 3 to play the role plays among themselves.

Feedback Activity

Ask the observer in each group to initiate the feedback discussion within their group

Ask groups to then share their learning points from this experience with the entire class

Discuss the correct behaviours and how behaviours can be improved with practice

Debriefing Activity

Discuss the solutions for the scenarios as given in the faculty notes. Reinforce the importance of knowledge of products and processes as well as skills

to render good customer service. Ask students to practice appropriate behaviours and hold the role play activity

after a month This time the students can script their own role play

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ROLE PLAY SCENARIOS – (FACULTY NOTES – LEARNING POINTS TO EMERGE FROM ROLE PLAY)

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Role Play Scenarios – Faculty Notes

Scenario 1

Ms.MoneyBag says “give me more interest”

1. Ms.Moneybag is a finance executive with Mehta and Co.,2. She visits the bank branch of ICICI Bank to inquire about placing a fixed deposit

with the Bank.3. She already has an existing savings account with the bank. 4. She wants to place a fixed deposit of Rs.40000/- for 5 years and is interested in

getting a high return. 5. Her mother has advised her to place the deposit in a cooperative bank as they of-

fer higher rate of interest.

Faculty is requested to give the Role play sheet to the banker, customer and observer along with the instruction sheet.

You can give the following hints to the students:

Hints for Customer: Make enquiries regarding rate of return, type of fixed deposit, nomination facility, safety, money to be withdrawn incase of emergency

Hints for Banker: Be prepared with information about fixed deposits, interest rates, returns at compounded rates etc. Build a rapport with the customer, offer the best option and convince the customer to place the deposit with your bank quoting safety of investment.

Solution to the caselet:

Banker has to build a rapport with the customer and win her trust Banker has to check the rate of interest for different periods and suggest a

period where the rate of interest is the highest. Banker also needs to convince the customer that under cumulative deposit,

interest will earn interest so that effective returns will be higher than normal simple interest

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Banker should also highlight on the safety of bank deposits as well as liquid-ity – the customer can do a premature closure in an emergency

The banker should try to understand the profile of the customer and sell more products like insurance, gold coins as well as ask for referrals of her friends and relatives.

Scenario 2

“I would like to save before I spend “, says Mr.Savesmart

Mr.Savesmart is a young executive with a software company in Mumbai He is earning Rs.25000/- per month. He visits the branch to deposit his first salary cheque into his savings account. He wants to take a demand draft for Rs.10000/- favouring his mother payable at

Chennai He inquires about the deposit schemes in the branch He estimates that he would need to send Rs.10000 every month to his mother

and spend another Rs.5000/- towards his monthly expenses

Hints for the customer: - Express your anxiety whether your money would be safe, whether you can commit to saving Rs.5000/- per month, can the bank automatically transfer from savings to RD every month ?, What is the penalty if the deposit is discontinued, can you withdraw the money in an emergency etc.?

Hint for the banker: Read up the provisions of recurring deposit and check the rates of interest from the website. See if you can calculate the maturity value for the RD to attract the customer. Try and build a rapport with the customer by using your customer service skills.

Solution to the caselet:

Banker has to build a rapport with the customer and win his trust Banker could wish the customer on receiving his first salary.(don’t ask for a treat!)

and assure him that the bank will help him maintain and increase his wealth. Banker needs to sell recurring deposit to the customer as it would be ideal for his

investment need Banker can also try to sell mutual funds/insurance

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Banker needs to advise the customer to get his mother’s account opened at the Chennai branch of ICICI Bank in her city so that instant funds transfer can be done

Banker can ask the customer to refer his friends and family to open accounts

Scenario 3

“I want someone to listen to me “says Mr.Careful

Mr.Careful is a senior citizen having an E or S account with his wife Mrs.Kind at the Main branch.

He visits the branch for a cash withdrawal of Rs.10000/- from his account. He wants denominations of 100s, 50s and 10s. The cashier offers him one section of 100 rupee notes – Mr.Careful is upset and

demands smaller denomination as he has to pay the labourers who are working on renovation of his house.

Mr.Careful is already upset that he had to wait for half an hour before he was called for cash payment – he is in a hurry to reach home by lunch

He needs to pay the weekly wages to the labourers by evening. He is expecting his daughter, son-in-law and grandchildren from abroad next

month and he is anxious to complete renovation work within the next week. Mr.Careful shares that he is also the secretary of his housing colony and most of

his neighbours also dislike visiting banks because they are crowded.

Hints for the customer – Just go on and on about all the problems that a senior citizen could have – including health issues, attitudes of youngsters etc( remember any comments from your grand parents/ elderly neighbours?)

Hints for the Banker – How will you pacify the customer, build trust and resolve his requirement to the best of your ability. What other products can you offer, references, businesses can you get through Mr.Careful?

Solution to the caselet:

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Banker has to build a rapport with the customer and win his trust Banker has to pacify the customer by offering water or cool drink Banker needs to offer the best possible denominations that are available in the

branch to satisfy the customer’s requirement Banker needs to take the references of the customer’s daughter and son-in-law

to offer NRE accounts Banker needs to suggest to the customer that he can come during non peak

hours and approach the senior citizen’s desk at the branch for any help Banker also needs to ask for references in the neighbourhood as Mr.Careful is

the secretary of the housing society

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Scenario 4

“I have got married recently – I want to delete my sister and add my wife’s name to the account” says Mr.Handsome.

Mr.Handsome has a savings account with the Bank jointly with his sister Ms.Intelligent to be operated by either or survivor. He has got married recently and wants to delete his sister’s name and add his wife Ms.Beautiful’s name in the account. He wants to get this done without the knowledge of his sister, so he visits the bank alongwith his wife. He had got Rs.3 lakhs in his account which he claims is totally from his salary savings. He would like to place a fixed deposit of Rs.2 lakhs for 2 years. As per bank’s procedures, Ms.Intelligent’s signature is required for deletion of her name

Hints for customer: Try to get the Bank to agree to your request to delete your sister’s name – try to prove that it is your money and convince the banker

Hints for the banker: Check out the topic types of customers to understand the provisions of an E or S account. Be convincing in your reply to the customer, while maintaining good rapport.

Solution to be discussed after feedback has been shared by all participants:

1. Banker should congratulate the customer on his marriage and welcome his wife to the bank

2. Banker should advise the customer politely of the procedures requiring his sister’s signature for deleting her name

3. If the customer is not particular about the account number, banker can advise the customer to open a fresh account jointly with his wife and transfer the major bal-ances to the new account.

4. Banker should convince the customer to place the fixed deposit, as well as invest in other products like MF and Insurance.

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Types of Customers - Facilitator Guide Objective :

To explain the various modes of operations by different types of customers, The importance of the regulations to protect the customer's as well as the bank's

interest

Sub Topics :

1. Introduction2. Modes of Operation3. Individuals -Proprietorship-Partnership-Joint stock Company- Trusts, Societies,

Clubs-Government bodies-others

Training Sequence

Activity Duration (in hours)

E-learning Types of Customers - Part I and II 8Pre Classroom

1. Ask students to read the case-lets on single and joint accounts.

2. Groups to script and enact role plays for different types of individual customers

3. Prepare a chart on the mode of operation of non individual customers

1

Classroom Ice BreakerPresentation or Role play DiscussionRole Play

2

Reference Books

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Banking Principles and Operations by Mr.M.N.Gopinath

Types of Customers – Mode of operation to be discussed for the following

Types of customers Modes of operation/ Legal regulations

Single AccountMandate holderNomination

Joint AccountMode of operationSpecial Instructions

Minor'sMode of operation

Illiterate, visual and hearing challenged, aged

Mode of operationExecutor and AdministratorHindu Undivided FamilyProprietorshipPartnershipJoint Stock Companies

Mode of operationOfficial Liquidator

TrustsSocieties / AssociationsClubsSelf Help Groups

Ice breaker

Marooned - You are marooned on an island. What five (you can use a different number, such as seven, depending upon the size of each team) items would you have brought with you if you knew there was a chance that you might be stranded. Note that they are only allowed five items per team, not per person. You can have them write their items on a flip chart and discuss and defend their choices with the whole group. This activity helps them to learn about other's values and problem solving styles and promotes teamwork.

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Presentation or Role Play

Ask the participants to give a presentation on the individual customers and enact a role play CASELETS

They can be asked to read the caselets given below for better understanding

Caselet 1Consider the following scenario:Sudhir has opened a savings account in his name. He has deposited Rs. 5 lakh in the account. He is planning to go abroad to attend a conference.Sudhir (to his wife Sushma): “Sushma, please go to the bank and withdraw Rs 1,00,000. Here is the cheque. Also, please get a statement of my account.”Sushma goes to the bank and presents the cheque to the Customer Service Officer (CSO).CSO: “Madam, can you please get this cheque signed?”Sushma (takes a look at the cheque): “Oh God! Sudhir has forgotten to sign the cheque. It is okay. I am his wife. You can make the payment to me. I will sign it now. I am also the nominee in this account.”CSO (smiling politely): “Sorry Madam. This is a single account in the name of Sudhir. We need the customer’s signature to debit his account and pay cash.”Sushma (annoyed): “Sudhir is always forgetful. Give me a statement of his account.”CSO: “Madam, can you please get a request signed by Mr Sudhir? We will issue a statement on receiving his request or he can also place a request with the call centre.”Sushma (over the phone): “Sudhir, can you please come down to the bank, sign the cheque and take cash? It is all yours. Thank you.”Discuss the caselet 1. What were the banking transactions, queries that the customer’s wife had come for?2. Do you think the Bank was right in refusing her requests? What was the risk to the bank if they had acceded to the request?3. How effective was the CSO in handling the service denial? (Relate to the customer service chapter done earlier)Caselet 2Sudhir opens a joint account with Sushma with the mode of operation being Either or Survivor (E or S means either of them can sign or withdraw cash).

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Sudhir (to the Customer Service Manager (CSM)): “Hi! I have just returned from my US trip. I want to place a fixed deposit of Rs. 8 lakhs from my account. Here is the account number.”CSM: “Mr Sudhir, the balance in your account is Rs. 7 lakhs. What amount would you like to place as deposit?”Sudhir (shocked): “What? I had remitted Rs. 10 lakhs into the account last month. I had issued a cheque for Rs. 2 lakhs, so I must have Rs. 8 lakhs in my account.”CSM (politely): “Yes Mr Sudhir. There is a credit of Rs. 10 lakhs on April 2nd. There is also a withdrawal of Rs. 1 lakhs on April 12th.”Sudhir: “I would like to know how you paid the money without my signature. It is my money.”CSM (after checking the transaction): “Mr Sudhir, the cheque has been signed by your wife, Mrs Sushma. The mode of operation in the account is Either or Survivor (E or S).” Sudhir (calling from his mobile): “Sushma, have you withdrawn Rs. 1 lakh from the bank?”Sushma: “Yes. The service in the bank is really good.’Sudhir (getting angry): “What did you do with the money?”Sushma (in an excited voice): “It is a surprise for your birthday. I will show you when you come home.”Seething with anger, Sudhir returns home.Sushma: “Here is the diamond necklace I gifted myself for your birthday. Isn’t it beautiful?”The next day, Sudhir goes to the bank.Sudhir: “I would like to delete the second name from the account.”CSM: “Mr Sudhir, deletion of the name can be done if both of you sign the request for deletion.”Sudhir: “Okay. Close this account. I will open a fresh account.”CSM: “The closure request should also be signed by both the account holders.”Sudhir: “It is an E or S account, so, can’t I give instructions?”CSM: “The E or S mode is only for normal transactions in the account. We require the signatures of all the applicants for instructions such as addition, deletion of names, change of nomination, and closure of accounts.”Sudhir: “In that case, I will give a letter to stop my wife from operating the account.” CSM: “Mr Sudhir, we will take this instruction, but after you place the request, the account can be operated only by both of you jointly.”Sudhir: “You mean I cannot operate the account singly even if I want to?”

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CSM: “If one of the account holders requests for stopping operations in the account by the other, the account becomes operable jointly.”

Now divide the group in two groups - Activity to be given to each group to be divided as per topics

Individuals

1. Single or Joint Account2. Minors3. Illiterates, sick, old customers

Group 1 - Role play of a family that has a minor, illiterate servant, aged persons etc. Show a bank scenario where these people come to open an account and the branch official is giving the information about account operation to them

Hint – Situation: One participant will enact as Mr. Kisan Ramchandra Bhogale, an illiterate who walks into your branch (other participant as the banker) at your desk and wants to open an account. Think of the possible type of questions he might ask. His gestures, voice and understanding level needs to be kept in mind while enacting the role play.

Similar kind of situation can be generated for a minor, senior citizen etc.

Role play should highlight the roles in terms of

1. Documentation2. Product information3. Type of account offered 4. Facilities , mode of operation

Non individuals

1. Sole Proprietorships 2. HUF3. Partnership4. Joint Stock Companies5. Trust, Association, Societies and Clubs (TASC)

Hint - Situation - One participant to enact as Mr. Gopinath Iyer, a sole proprietor of a stationery shop. You wish to open an account with the bank. Mr. Gopinath walks into the branch (another to enact as a banker) at your desk. Please guide him on opening the account.

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Role play should highlight the roles in terms of

Documentation Product information Type of account offered Facilities , mode of operation

DISCUSSION

Ask the participants to discuss on the points in groups. Each group Facilitator to finally share their learning with other participants

1. What is the importance of the regulations governing the mode of operations of bank accounts by different types of customers?

2. How does adherence to the regulations protect the bank's and customers' interest?

3. Can a banker deviate from the rules to satisfy a customer request?

Frame Game

Give each learner four blank cards and instruct them to fill in four different responses on the subject:

"What were main concepts or learning points of the material we just covered?"

Give them about five minutes to complete the exercise, then collect the cards, shuffle them, and randomly deal three cards to each learner.

Ask the participants to list down their learning from each

(Note: If desired, the trainer can make up four cards of her own, but they should be philosophically unacceptable with the principles presented. That is, play devil's advocate.)

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Banker Customer Relationship – Facilitator Guide

Objective :

This session will enable you to

Explain the rights, duties and responsibilities of bankers Identify the different roles played by the banker while offering different products and

services

Sub Topics :

1. Definition of a customer2. Relationship between banker and customer 3. Rights and obligations of Banker

Training Sequence

Activity Duration (in Hours)

E-learning Banker Customer Relationship 2Classroom Activity Case-let 2

Match the following

CLASSROOM ACTIVITY

Divide the group in to equal numbers

Invite two students at random from one group; give them a product - for e.g. deposits.

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Ask them to discuss the banker customer relationship.

Repeat the exercise for all the relationships mentioned below and facilitate the students to bring out all the essential points

Debtor – Creditor Pledgee – Pledgor Agent – Principal Agent of Third Parties Lessor – Lessee Advisor – Advisee

Discuss and list down what is the relationship between the banker and the customer in the following cases:

Sheela places a fixed deposit with the Bank.

Bank has given car loan to Naresh.

Sriram has deposited a cheque for collection.

Sheela has bought insurance from the bank.

Bank has sold Government of India Bonds to Sri.Viswanathan.

Bank has given a home loan to the Rajeshkumar.

Shridhar has borrowed money for business by pledging his securities with the bank.

Srilekha has taken a locker in from the bank for the safekeeping of her jewels.Caselet I

Answer the questions individually and then discuss the issues and implications for the Banker with your group members.

1. Sudhakar opens a savings account with the bank in his single name, Mrs. Sudhakar calls up the branch to enquire the balance in his account. She insists that she can answer all the verification queries about her husband and that she is handling his

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account. She threatens to get the account closed if the bank does not give her the information.Can the bank officer give the information? State the reasons for your answer.

2. Mr. Sasikanth has guaranteed a loan sanctioned by the Bank to his friend Mr. Sashidhar. Mr. Sashidhar does not maintain his accounts properly and has not been able to honour the monthly repayement for the past 2 months. Mr. Sasikanth visits the Bank to enquire about the balance in the account of Mr. Sashidhar. Can the Bank give the information? State reasons

3. Mr. Ramachandran has been maintaining a savings account and a current account with your bank for the past 10 years. He has approached ABC Bank for an overdraft limit for a new business. ABC Bank has written to you asking for the credit worthiness of Mr. Ramachandran. Mr. Ramachandran had already mentioned to you that he is approaching the other bank for loans. Can you share the account information of Mr. Ramachandran with ABC Bank?

4. Mr. Seetharaman had a savings account with your branch which he had closed one month back. One of your valued customers Mr. Dhandapani requests for information on Mr. Seetharaman's account. He tells you that he is considering a marriage proposal for his daughter with Mr. Seetharaman's son and your inputs would be very important in finalising the marriage. Mr.Dhandapani has a relationship of Rs.30 lakhs with you and has introduced several customers to the Bank. You check Mr.Seetharaman's account and find that he had not maintained the minimum balance for the last one year. There were also numbers of cheque bounces in his account. What would you do now? Your colleague suggests that since Mr. Seetharaman has closed his account, the Bank has no relationship with him; hence you can give the details to Mr.Dhandapani.

Discuss in your group how each of the above situations is different and what is the Bank's duty in each case?

Caselet II

1. Ms. Sitalakshmi has a loan account with the Bank where the interest payment is overdue for three months. She visits the Bank along with her sister to operate her locker and inadvertently leaves a bag containing gold jewellery on the Branch Manager's table. Can the Branch Manager retain the jewels till the interest is regularised? Why?

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2. Bank has given a jewel loan to Mr.Rajappa against pledge of his wife's jewellery valued at Rs.1 lakh. Rajappa has defaulted in repayment of the loan. Does the bank have a lien on the jewels?

3. Sujitha has a fixed deposit in the Bank for Rs. 10 lakhs in the joint names of herself and her husband Kumar. Kumar has borrowed Rs.4 lakhs from the Bank as personal loan and has defaulted in payment of EMI for two months. Can the Bank set off the fixed deposits of Sujitha against the loan of Mr. Kumar?

4. Sajid has a fixed deposit of Rs.1 lakh and a savings account balance of Rs.10, 000/- in the Chennai main branch of ABC Bank. He has outstanding dues in his credit card to the amount of Rs.50000/- due beyond 90 days and the Bank has not been able to collect the repayment from him. The Bank part closes the fixed deposit and settles the credit card outstanding under notice to Sajid. Sajid claims that he had taken his credit card from a different department and they have no right to take money from his balance in a different branch. Please comment

5. Lakshmi enterprises has an overdraft limit with the Bank for Rs.50000/-. The current outstanding amount in the overdraft account has reached Rs. 75000/- debit balance and the proprietor Mr. Lakshmikanth has been asking for extension of time to regularise the account. You find out that Mr. Lakshmikanth has a fixed deposit in his name for Rs. 15000/- and a fixed deposit in the name of his son Karthik for Rs. 2 lakhs. Can the Bank manager set off any of the fixed deposits against the overdraft amount? Why?

Discuss the Case-let in your group. What are the rights available to a banker for

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recovering outstanding loan amounts from a customer? What are the exceptions to this right? List them down

List down your points for discussion :

CHECK YOUR UNDERSTANDING

Match the following:

A - Bank B - Relationship customer 1 Fiduciary Agent a Recipient2 Agent of Depository b Right to retain any property of the

debtor3 Advisor c Principal4 General Lien d Adjust the credit balance & debit

Balance

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5 Right to set off e Customer of Depository

Answers:

1- c; 2- e; 3- a; 4- b; 5- d

STORY TIME :

Sairam, the customer service officer at the Kanchi branch of ABC Bank was very busy that Monday morning, handling cash receipts and payments. He had joined the bank a week back and everything was new to him. He had been a class topper in B.Com but that didn’t seem to help him in counting cash. Mr.Nagalingam, a HNI customer, walked in at that moment. Mr.Nagalingam was six foot tall, well built, with a tough face highlighted by his bushy eyebrows and big moustache.Mr.Nagalingam: (In a booming voice) Hi, young man, where is your branch manager gone?Sairam (slightly scared, in a timid voice) Sir, he has gone out to meet a customer.Mr.Nagalingam (looking around) is there no body else?Sairam (thinking…he looks like a movie villain) No Sir, What do you want?Mr.Nagalingam: I want to know the balance in Lakshmi’s savings accountSairam: (slightly relieved, politely) Who is Lakshmi sir? Can I have the account number?Mr.Nagalingam: (angry) What! You dare to speak my wife’s name. Do you know who I am? I am the panchayat president here.Sairam: (scared) Sorry sir, can I have the account number?Mr.Nagalingam: (Roughly) You don’t know the account numbers of important customers? You expect us to remember the numbers?Sairam: (backing out) Sorry Sir, I have just joined a week back. I do not know.Mr.Nagalingam: Ok. Here is the number. Tell me the balance quickly.

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Sairam: (checking the account number in the system, in a firm voice): Sorry Sir, this account is in the name of Lakshmi. Your name is not in the account. So I cannot tell you the balance.Mr.Nagalingam: (raising his voice) How dare you speak to me like this? I am the one who is putting money in her account. Call your branch manager. I will get you transferred from here. What is happening in this branch?Sairam (in a shaking voice): As per Banking Regulation Act, we cannot share the balance of a customer with another person. As a banker, I cannot violate the secrecy of a customer.Mr.Nagalingam: (Pushing the table, shaking his fist) What! Is my wife keeping money secretly without my knowledge? And you cannot tell ME her balance! I will take you all to court. I will see that all the people in my village close their accounts with your bank

Learning

What went wrong in this interaction? Would you have acted differently if you were the service officer?

Faculty Notes:

Probe the students: Is it ok to tell the balance if the customer is a HNI?

What the students need to learn is that speaking about laws and regulations would put customers off. We need to learn to speak in a manner that the customer understands and explain why it is important to follow the rules.

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Types of Deposits – Facilitator Guide

Objective :

To explain the features of different types of deposits and highlight the benefits to customers

Sub Topic :

Demand and Term DepositsTwo in one accountsRecurring deposits

Training Schedule :

Activity Duration (in hours)

E learning Deposits and Accounts 2Pre classroom Check websites and brochures of different banks Compare

the savings bank account and fixed deposit products offered by BanksList down the products and services offered by ICICI Bank ( check from ICICI Bank website)

2

Classroom Charts 2PresentationFun game – Act dumb!

Reference Books

Banking Principles and Operations by Mr.M.N.Gopinath

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Charts :

Ask students to prepare a comparative chart for the following and present

f) Demand and Term Depositsg) Two in one accountsh) Recurring deposits

List down your learning from the charts presented

What are the latest interest rates offered by ICICI bank on term deposits? Check on website www.icicibank.com? Ask the participants to check what is b2 savings account? Click on b2 to hear what it is all about.

What are the best rates offered for particular period available in the market? Compare with other banks like SBI, HDFC, Axis, Canara Bank. Prepare a comparative chart below. Check out the RBI website path www.rbi.org.in/common man>Useful Information>Financial agents/ Banks in India.

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Presentation

As the students have visited the branches to know about fixed deposit, ask them to highlight the various points of difference observed in different banks through a presentation/ role play. Participants can portray two different banks and try and sell their products to the customers.

Discussion

After forming of groups discuss on the below points and present

1. How do banks differentiate their offering to attract customers?

2. Analyze the difference in interest rates on fixed deposits offered by Banks?

3. Banks offering lower interest rate are also able to attract and retain customers. How?

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Form groups and discuss on the topics given below:

Saving account Current account Term deposit 2-in-1 account Recurring deposit

Pen down your points on each of the above topic

Fun Activity in the class room: Act Dumb!

Ask each group in the class has to prepare cards containing names of the different products and services offered by ICICI Bank. Select one participant from group 1 has to pick up a card from group 2 and act out the product to his group. The participant pretends that he is dumb. Two points for each correct identification within one minute. If group 1 is not able to identify, then give 30 seconds to any other group to give the answer. For example, if the product is “Young Stars” then the student can act like a child

Fabulous Flags

Pass out a sheet of paper, pens, colour pencils, crayons, and/or markers to each person.Explain the activity - “We’re now going to draw flags that represent or symbolize us.  Please design your own flag - include some symbols or objects that symbolize who you are or what you find enjoyable or important.”  You can show your own sample flag if you like.  For example, they could draw:

1. a guitar (representing your passion for music) 2. a tennis racket (someone who enjoys sports) 3. a country like India (representing your affiliation with a country) 4. a book ( for a book lover)5. a flower ( a nature lover)

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Give everyone a set amount of time to draw (e.g. 10 minutes or so) and then reconvene.  Ask for volunteers to share their flags and explain the meaning of what they drew.  If it is a large group, you can divide everyone into smaller groups and ask them to share their flags with each other, or you can just ask a small number of volunteers to share.

VariationsAfter everyone has finished sharing the individual flags, as a big group you can ask everyone to brainstorm ideas on what to draw for a large class-wide flag.  Proceed to delegate individuals to draw certain parts of the class-wide flag.  Alternatively, you can collect the individual flags and paste them onto a board to create a “quilt” of individual flags, representing unity.QUIZ TIME!! Take a small quiz, to identify the reach of the topic with the students, like a rapid fire round. Ask one of the most silent participants to be the quiz master but he should be able to speak fast.

Name the term1. Invest on a regular basis and earn interest at the same rate of other fixed

deposit. Recurring Deposit

2. Repayable on expiry of the period for which deposit has been made Fixed or term deposit

3. Designed to meet the daily needs of the individual and earn interest Saving Account

4. These accounts do not earn any interest on their deposit Current Account

5. What is levied for premature withdrawal of deposit amount? Penalty or premature withdrawal charges

6. Reverse Sweep takes place in this type of accountTwo-In-One

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