2nd Sem B.

Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

Module No. 5: Recent Developments in Banking

New technologies in Banking – E-services – Debit and Credit cards -Internet Banking-Electronic Fund
Transfer- MICR – RTGS - NEFT –ECS- Small banks, Payment banks- Digital Wallet-Crypto currency- Mobile
banking-E-payments – E money; - KYC norms –Basel Norms

Meaning of E-Banking:

E-Banking or Electronic banking means conduct of banking operation through electronic means or devices such
as computers, telephones, mobile phones, ATM etc,.

Advantages:

 Faster and more convenient transaction.

 No longer required to wait in long queues( 24X7 Service).
 Opening of account simple and easy availability.
 Larger customer coverage.
 Abolishing the uses of paper and man power in transactions.
 Cost effective for banker side.
 Increase in customer satisfaction.
 Fund transfer become faster and convenient.
 Promoting banking services and product internationally.
 Providing a personalized services.

Disadvantages:

 Huge initial start-up cost.

 Lack of customer knowledge i.e illiteracy.
 Lack of skilled personnel.
 Security threat.
 Viruses and worms.
 Obsolescence of technology.
 Technical problems.
 Legal issues.
 Training and maintenance.

The various E-Banking services are:

1. Automated Teller Machine (ATM)

2. Internet Banking
3. Mobile Banking
4. Debit Cards
5. Credit Cards
6. Electronic Fund Transfer (EFT)

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 15
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

7. Magnetic Ink Character Recognition (MICR)

8. Real Time Gross Settlement (RTGS)
9. DEMAT Account

1. ATM (Automated Teller Machines): It is a channel of banking services which dispenses the cash
upon insertion of a plastic card with a unique (PIN) personal identification number.

In other words it is an electronic machine installed by a commercial bank and operated by the customer
himself, to withdraw money and to make other financial transactions with a magnetically encoded plastic
card and a code number.

Features:

1.ATM can be installed at any place i.e on-site ATM ( within the bank premises) and off-site ATM ( outside
the premises of bank)
2. ATM are any anytime banking (24X7).
3. They are user friendly.
4.ATMs are safe banking.
5.There are certain restrictions on the ATM facilities like more than a specific amount say Rs 25.000/-
cannot be withdrawn from an ATM.

Advantages of ATM:

1. 24 hr services: The customer can withdraw cash up to a certain limit during 24 hours .So it is famously
known as ALL TIME MONEY.
2. Better Convenience: Most of the ATM's are located at the convenient places such as airport, railway
station, residential colony that provides better convenience to the customer with reduced time and energy.
3. Reduces Pressure Of Bank Staff: The bank staff is free from the botheration of keeping large cash or
meeting several customers at a time. Thus it ensures better customer satisfaction.
4. Reduces Human Error: As the work of deposit and withdraw is handled by machine, it provides perfect
and accurate service and thus there is absence of human error.
5. Provides an Additional Revenue: Each ATM withdrawal transaction generates sur-charge income for the
owner of ATM.

Dis-advantages of ATM

1. Security: The person performing the transaction will not require the present picture identification.
Hence if the bank card is stolen an unauthorized person can easily access the account.

2. Inability to Perform Complex Transaction: ATM can only perform basic transactions and the people
who need to complete complex transaction have to visit the bank than using ATM.

3. Fees: Not only the banks for which you are not a member charge fee but also users of their own bank
are charged twice for the same transactions.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 16
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

4. Privacy: There is no guarantee of security which performing the transactions in ATM. people may try to
spy on users or they may hack delegate information without the awareness of user.

5. Difficult Of Use By Illiterate People: As it involves a longer process, if the customer is struggling to
complete a transaction ,ATM's will not be so effective for the rural mass or people who are ill-literate.

INTERNET BANKING: It is a channel of services to the banking customer where the account information of
banking transaction carried through the world wide networking on the internet. Transactions such as E-business,
railway or air reservations, payment of bills, transfer of money can be carried out while sitting in house. It is
also refers to the provision of banking services by a bank to its customers through its websites.

Advantages of Internet Banking:

 Easy to Set Up: It is easy and fast to set up internet bank account. users have to just create an online
account with the security features such as password and user name.
 Convenient Online Comparison: online banking allows to compare various features such as interest rate,
availability of credit cards, banking terms and interest on loans etc.
 Easy Monitoring: It helps to track the information’s such as deposits, clearing of cheques, account balance
and it also helps to keep the account form going into negative balance.
 Convenient Banking: with online banking, the customer need not have to stand in long lines to obtain
financial information and it also reduces paper work and helps to apply for loans faster and easier.
 Maintain Accurate Financial Records: customer can keep track of financial records and can download the
banking statements whenever required.

Dis-Advantages of Internet Banking:

 Security: It does not guarantee complete safety because internet criminals try to hack customer account
and gain access to their financial information.
 Site Navigation: If customers are new to online banking, it may take some time to get used to it.
Sometimes the customers may navigate the site that results in frustration by carrying out the transaction.
 Accessibility: If customer’s business is located in rural area, the internet options would be limited. Thus it
becomes difficult to carry out the transactions everywhere.
 Site Disruptions or Server Problem: A technical mal-functioning would cause bank website to go offline
that results in problems for customer's business.
 User Apprehension: Some business owners are apprehensive that is, they may not feel comfortable with
the idea of placing the financial information into online account.

MOBILE BANKING: The banking transactions which are carried through the cell-phone is called mobile
banking.

Advantages of Mobile Banking:

 One can make transactions or pay the bill at any time and thus it saves lot of time.
 It is user friendly and simple to operate and one can also save the record of any transactions made.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 17
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

 It is cost effective and it cuts down the cost of tele-banking making it as more economical.
 It helps to promote and sell banking products and services like credit cards, loans etc.
 Various banking services like account balance enquiry, credit or debit alerts, transaction history, fund
transfer facility can be accessed from mobile.
 It helps to transfer money instantly to another account.
 It ensures better connectivity in remote places where internet connection is a problem.
 It reduces risk of fraud because the customer will be getting an SMS whenever there is a transaction like
deposits, cash withdrawals, fund transfer etc.

DEBIT CARD: An electronic card issued by a bank to its customers to access to their account either to
withdraw cash or pay for goods and services.

Advantages of Debit Card:

 24 hours access: a customer can get 24 hrs and 365 days services in a year. It works around the clock and
thus it offers all time benefit.
 View Account Balance and Mini Statement: The card holder can get the details of last 10 transaction with
the mini statement along with bank balance.
 Request A Cheque Book or Account Statement: It helps in sending request for a cheque book or account
statement for last quarter.
 Transfer Funds Between Accounts: The customers can also transfer funds between accounts of customer
and other parties easily.
 Refill your prepaid mobile: It also facilitates in recharging the customer mobile and also making any kind
of payment.
 Easy to Manage: It is very easy to carry and handle and manage while travelling to outstation or overseas.
 Nominal Fee or Source of Revenue: An annual fee for the issuance and maintenance of card is collected on
which is automatically debited from the account of customer.

Dis-Advantages:

 Limited transaction: Debit card facilitates limited transactions till positive balance. The card holder can
withdraw or purchase till the account shows positive balance.
 Extra charge against extra transaction: Debit card holder is restricted with number of transactions per day
and the excess transactions involves extra charges.
 Fine against transaction without having sufficient balance: The card holder should pay fine in case of
transaction made without having sufficient balance.
 Security: The security of debit card is based on PIN number and its maintenance. The card holder should
not share the PIN with other person.
 Possibility to use debit card by other person: when the card is lost, the card holder have to inform the
banker to lock the card or the amount will be utilized by third person.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 18
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

CREDIT CARD: It is a plastic card issued by a financial institution that allows the customer to borrow
approved funds to complete a purchase transaction. These are plastic card issued by a bank that allow the card
holder to purchase goods or services on credit.

Types of credit cards:

1. Gold card: A gold card is a credit card that is offered to the elite. It offers many additional benefits and
facilities, such as higher credit limit, more cash advance.
2. Master card: It is a type of credit card issued under the umbrella of Master card International. The
issuing bank has to obtain a franchise from Master card Corporation of the U.S.A. It is honoured by the
Master Card Network.
3. VISA: It is a type of credit card issued under the umbrella of VISA card International. The issuing bank
has to obtain a franchise from VISA International Corporation of the U.S.A. It is honoured by the VISA
Network.
4. Smart Card or chip card: A smart card is a type of credit card with an embedded microchip, which
stores certain monetary value. When a transaction is effected, using smart card, the value of that
transaction is debited, and the balance comes down automatically. Once the fixed monetary value comes
down to nil, the balance is to be restored all over again to make card operational as usual.
5. Proprietary card: Credit cards are issued by the banks themselves under their own brand without any
tie-up or franchise arrangement is called proprietary cards. Eg, SBI Card, Can card of Canara bank etc.

Advantages of Credit Card:

 It allows the customer to make purchases on credit.

 It allows convenient remote purchasing that is, ordering or shopping online and even the payment will be
on installment.
 They are cheaper forms of short term borrowing because interest is paid only on the remaining debit and
not the full loan amount.
 Accurate record keeping.
 Convenience shopping.
 Safety.
 Cheaper for short term borrowing.
 Additional benefits like insurance on purchase, cash back discount holidays.

Dis-Advantages:

 It give raise to credit culture in the society and harmful to individual and society.
 These are relatively expensive because of high interest rate and other cost.
 Lost or stolen cards will be an unwanted expense and inconvenience to the customer.
 Use of large number of credit cards can get the customer into further debit.
 It includes an element of risk because if the card details tracked by a third person, will result in fraudulent
purchases on the card.
 There is a risk of bad debts

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 19
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

 Element of risk i.e frauds and unauthorized charges.

DIFFERENCES BETWEEN DEBIT AND CREDIT CARD:

Sl DEBIT CARD CREDIT CARD

1 It represents the drawing power of the card It represents the borrowing power of the card
holder. holder.

2 Amount withdraw able is based on credit Amount withdraw able is based on Sanctioned limit
balance available in the bank account of a by the bank to its card holder.
holder.

3 No interest or costs are charged to the card Interest or costs are charged to the card holder.
holder.

4 There is no risk of overspending to the card There is arisk of overspending to the card holder.
holder.

5 There is no chances of overdraw to the card There is a chances of overdraw to the card holder.
holder.

6 Opening of an account is very necessary for Opening of an account is very not necessary for
debit card. credit card.

7 No grace periods are given and instantly Grace period of 30 to 40 days of making payment is
debited to account. give.

8 No conditions are to be satisfied to obtain a Conditions are to be satisfied to obtain a credit card.
debit card.

ELECTRONIC FUND TRANSFER (EFT): It is an electronic exchange, transfer of money from one account
to another either within single institution or across multiple institution through computer based systems.

Advantages:

 it is easy and convenient mode of transfer of funds.

 it is fast and secured.
 it is efficient and involves less paper work.
 This scheme is economical
 Funds are credited to beneficiary account fast and timely.
 Fraud in remittance of funds can be avoided.
 It minimizes the loss of interest for customers, since transferred instantly.
 It increases the efficiency of the banks because of 24 X 7 service.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 20
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

Dis-Advantages:

 If the account holder enters the information incorrectly, there is no way to reverse the transaction.
 Once amount is transferred, the bank cannot reverse a transaction.

MAGNETIC INK CHARACTER RECOGNITION [MICR]: It is a character recognition technology used

by the banking industry for processing and clearance of cheque and documents.

MICR technology involves the following steps:

 There is standardization of quality, size, and printing of cheques or drafts with suitable space for
encoding information at bottom.
 Encoding in magnetic ink of details on the cheques to facilitate mechanized sorting. The code line
contains the following information like cheque number, city code, bank code, branch code, account
number etc,.
 There will be selection and acquisition of necessary equipment’s required to installed in the bank for
MICR technology.
 There are certain conditions to be satisfied:

 MICR cheque or bank draft should not be folded even by sending post.
 Pins, staples should be only at the top left corner of the cheque.
 Signature of the drawer, rubber stamp above the code line
 Nothing should be written on the code line
 MICR cheque should not contain any counter foils.
Advantages:
 It ensures greater security for the documents.
 It involves minimum errors compared to other character recognition system.
 This technology rapidly process high volume of cheques within minutes and thus it saves the time.
 Chances of errors are very less since easily read by machines
 Transfer of funds between two banks are easy and quick
 The work of clearing of cheques becomes easy in MICR cheques
 Frauds can be avoided because genuineness can be easily checked.

Dis-Advantages:

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 21
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

 These are expensive for maintaining and setting up.

 It is capable of recognizing only MICR fonts written in specific format.
 It is limited to very few cities.
 Great care should be taken in handling MICR cheques and drafts .

RTGS (Real Time Gross Settlement):

It is a system of transfer mechanism where money gets transferred from one bank branch to another bank
branch on a "real time" and on "gross basis". Real time means, the transaction is not queued or staggered for
any waiting period. Gross settlement means, the transaction is settled on one to one basis without bunching with
any transaction.

Details to be required to furnish RTGS and EFT:

 Amount to be remitted.
 His account number which is to be debited.
 Name of the beneficiary customer.
 Name of the beneficiary customer bank.
 Account number of the beneficiary customer.
 The IFSC (Indian financial system code) of the receiving bank.

Features of RTGS
1. RTGS system is primarily for large volume transactions.
2. The minimum amount to be remitted through RTGS is RS. 2 lakh.
3. There is no upper limit [ceiling] for RTGS transactions.
The details to be given from the remitter under RTGS transactions are:
 amount to be remitted.
 remitter account number which is to be debited.
 name of beneficiary customer.
 name of the beneficiary bank.
 account number of beneficiary customer.
 IFSC of receiving bank branch.
4. The processing charges are:
 For inward transactions no processing charges are levied.
 Outward transactions 2 to 5 lakh Rs/-30 per transaction and above 5 lakh Rs/- 55 per transaction.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 22
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

 The service is available from 9 hrs to 16:30 hrs on weekdays and 9 hrs to 13:30 hrs on Saturday
but the timings depends on the bank.
5. Process of RTGS: The beneficiary branches should receive the fund on real time as soon as funds are
transferred by remitting bank. The beneficiary bank has to credit the beneficiary customer account
within 2 hrs of fund transfer. If the money cannot be credited for any reason, the receiving bank should
return the amount for the remitting bank within 2 hrs. once the money is received, the original debit
entry in the customers a/c should be reversed.

DEMAT ACCOUNT: A DEMAT account is an account which is electronically maintained by the banks or
provided by broker agencies, where one can keep money for transaction in shares, mutual funds, gold etc.

 DEMAT process: It is the process by which an investor can get the physical certificates converted into
electronic form.
 Depository: The organization responsible to maintain investor’s securities in the electronic form is
called the depository.
 Depository Participant: The market intermediary through whom the investor gets the depository
services is called a Depository Participant. NSDL and CDSL are the two DP’s in India.

Steps in Opening a Demat Account and Required Documentation

 Choose a Depository Participant (DP): Select a DP, which can be a bank, financial institution,
or broker, that offers Demat account services.
 Fill Out an Account Opening Form: Obtain and fill out the account opening form from the
chosen DP.
 Submit KYC Documents: Provide the necessary Know Your Customer (KYC) documents.
 Verification: The DP will conduct an in-person verification (IPV) or online verification
process.
 Sign Agreement: Sign an agreement with the DP outlining the terms and conditions.
 Receive Demat Account Number: Once processed, you will receive a unique Demat account
number, also known as Beneficiary Owner Identification Number (BO ID).
Advantages of DEMAT Account:
To the investors:
 It is a safe and convenient way to hold securities compared to holding securities in physical form
 No stamp duty is levied on transfer of securities held in DEMAT account.
 It enhances better liquidity because of instant transfer of securities.
 It eliminates delays, thefts, misuse of certificates.
 Any number of securities can be transferred in any denominations. Therefore it reduces paper work.
Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)
Department of Commerce
Manasa Degree College, Rajajinagar Page 23
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

 It facilitates taking loans against securities.

 Immediate credit of bonus shares, rights issues and IPO are possible.

To the company:
 It helps in reducing cost of new issues due to lower printing and distribution cost.
 It provides better facilities for communication and timely service to shareholders and investors.
DEPOSITORY PARTICIPATION
Depository participants are the banks and financial institutions that act as agents of customers as well as the
depositories in the depository system.
Depository is an organization which holds complete securities of investors in electronic form at the request of
the investors through registered depository participants.
Eg,. National Securities Depository Limited (NSDL)
Central Depository service Limited (CDSL)
COREBANKING:
Core Banking refers to Centralized Online Real Time Electronic Banking. For rendering Core banking services
all the branches of a bank are networked with each other and they function as a group. Hence customers can
access their bank accounts and perform their basic banking transaction from any branch of the group.
Computer software’s were developed to perform CORE operations. Performance activities incorporated in
software include;
 Recording of transactions,
 Pass book maintenance,
 Interest calculations on loans and deposits,
 Customer records providing statement of accounts,
 Recording payments and withdrawals,
 Showing balance in each account of the customer after each transaction is carried out.
UNIVERSAL BANKING:
“A system of banking, where banks undertake various steps of financial services such as commercial banking,
development building, investment banking, insurance business housing finance and various other financial
services”.
OFFSHORE BANKING
The term “Offshore” refers to a location outside of one’s national boundaries, whether or not that location is
land or water based. This term is considered as adjective to any banking or other activity.
Thus, Offshore banking refers to the deposit of funds by individuals and companies in a bank that is located
outside national residence. Although this meaning implies that these banks are located in islands or such other
not physically easily accessible places, number of offshore banks are found in well known Onshore locations
such as Switzerland, Panama and lesser known places such as Mauritius, Bezire etc.

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 24
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

INTER-BANK MOBILE PAYMENT SERVICE (IMPS): The inter-bank mobile payment service (IMPS) is
a new service which has been launched by the National Payments Corporation of India (NPCI) in November
2010.
E-Wallet: “E-Wallet or electronic wallet is a type of electronic card which is used for transactions made online
through computer or a mobile”.
The objective of E-wallet is to make transaction easier in electronic form and reduce paper money transaction
like using cheque or draft.
Features
 It is a pre-paid account which facilitates the user to store his/her money for any future online transaction.
 Protected with password.
 user can make payments for any type of purchases made and for various other transactions.

PAYTM: It refers to Pay through Mobile, launched in the year 2010. It acts as a virtual wallet facilitating. It
can store money online which is called PAYTM cash and it can be used for payments through mobile getting a
cash back on PAYTM Application and for transfer of money from PAYTM to bank account. It can be used in
the absence of any debit or credit card or net banking.
BHIM: BHIM refers to Bharat Interface for Money. This was introduced in December 2016 and is named
after Dr. B. R. Ambedkar. Basically, it is a mobile application. It facilitates all types of payment transactions
quickly and easily with the help of Unified Payments Interface (UPI). It uses only the mobile number or the
Virtual Payment Address (VPA) to make payments as well as to collect money.
Features;
 It can be used on all mobile devices.
 Available in 13+ languages.
 Fraud prevention features such as timeouts after 90 seconds, if no activity takes place within this time.
 Transaction histories are available as and when required. OR code (machine readable code-bar code)
generation for vendors that enables customer to simply scan and pay for them.
 QR code generation for individuals to scan and receive person to person payments.
Benefits:
 It is a mechanism which facilitates real-time transfer of money straight into the user' bank account.
There is no necessity to hold money as in e-wallet.
 Strong security measures are embedded to prevent frauds.
 All payments and receipts are consolidated in a single platform.
 No working hour restriction. It works 24x7 basis.
 Facilitates users to check their bank accounts to know the balances available at credit in each bank
account. BHIM App is an ideal app for people with basic needs.
GOOGLE PAY: (TEZ): Google has started its online payments in February 2018. The Google wallet
application is called Google Pay Send. For setting up Google Pay, one has to download and install Google Pay
Application on his mobile phone. Then, he has to open the Google Pay Application and add his debit called or
credit card within the cards tab. Afterwards the payment method has to be selected taking a photo of the card
Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)
Department of Commerce
Manasa Degree College, Rajajinagar Page 25
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

and entering the required information. Google will then verify via SMS or e-mail authentication. Then, the
phone has to be unlocked and tapped to use Google Pay at any contactless payment terminal.
PHONEPE: It is another Indian digital wallet company facilitating e-commerce payments both online and
offline. It was founded in December 2015 with its headquarters at Bangalore. The PhonePe Application went
live in August 2016. It was the first payment application built on Unified Payment Interface (UPI).
National Electronic Fund Transfer (NEFT): This is one of the modes of transferring funds electronically.
Electronic fund transfer was introduced in 1995, and managed by RBI and first adopted for cheque clearing.
Special EFT scheme was introduced in 2003 to expand and increase the coverage of clearing. All bank branches
which were computerized were connected through a network enabling transfer of electronic messages to the
receiving branches, (whether they were networked or not) in a straight through manner. This was called STP
processing.
Immediate Payment Service (IMPS): IMPS is an instantaneous money transfer system introduced by
National Payment Corporation of India (NPCI). Funds, in this system, is transferred through mobile phones,
from one account to the other account, within the same bank or accounts across the banks. Transfer in IMPS
mode car be done across banks on weekends and bank holidays (24x7) using phones, ATMs, Mobile Money
Identifier (MMID) and internet banking. Although this mode of transfer takes place mainly through mobile.
Some banks have also started providing this service through internet banking.
SECURITY MEASURES: Many of the problems in internet banking are in the nature of teething problems
and hence, they can be eliminated over a period of time. However, for venturing into e-banking, the following
major controls must be ensured:
 Authenticity controls: to verify identity of individuals like password, PIN, etc.
 Accuracy controls: to ensure the correctness of the data flowing across the network.
 Completeness controls: to make sure that no data is missing.
 Redundancy controls: to see that data is travelled and processed only once and there is no repetitive
sending of data.
 Privacy controls: to protect the data from inadvertent or unauthorized access.
 Audit trail controls: to ensure keeping chronological role of events that are occurred in the system.
IMPORTANT QUESTIONS
SECTION A
1. Give the meaning of E-banking?
2. What is ATM?
3. What is credit card?
4. Give the meaning of debit card?
5. What is NEFT? Why it is used?
6. Expand RTGS and NEFT?
7. Expand ATM and MICR?

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 26
2nd Sem B.Com, BCU (As per revised NEP Syllabus 2022-23 Onwards) – Law & Practice of Banking

SECTION B
1. Briefly explain the three E-services of a bank?
2. Explain the merits and demerits of ATM.
3. What are the advantages of electronic banking services?
4. Bring out the advantages of credit cards?
5. What are the differences between debit card and credit card?

SECTION C
1. Write a detailed note on debit card, credit card and ATM’S.
2. Discuss the various advantages and disadvantages of internet banking?
3. Write a note on: A. Internet banking B. ATM C. MICR

Asst.Prof Vandana Kumari C Mali. M.Com (B.Ed)

Department of Commerce
Manasa Degree College, Rajajinagar Page 27