1.

Introduction to Banking

Banking is a vital part of any modern economy. It refers to the business of accepting deposits and
providing loans to individuals, businesses, and governments. Banks act as financial intermediaries
that connect savers and borrowers, helping to keep the flow of money running smoothly in the
economy.

The word "bank" is derived from the Italian word "banco", which means a bench or counter. In earlier
times, moneylenders in Italy conducted their business on benches in marketplaces. Over time, this
system evolved into modern-day banking.

Banks play a key role in economic development by mobilizing savings and channeling them into
productive investments. They offer various services like savings and current accounts, loans, credit
cards, digital payments, investment advice, and more.

In today's digital age, banking has also become more convenient through online banking, mobile
banking, and automated teller machines (ATMs). These technologies have made banking faster,
safer, and more accessible.

Banking is regulated by central banks, such as the Reserve Bank of India (RBI) in India, to ensure
stability, protect customers, and maintain trust in the financial system.

2. Introduction to Commercial Banks

Commercial banks are financial institutions that accept deposits from the public and provide loans
for various purposes. They play a major role in the economy by helping individuals, businesses, and
industries manage their money and financial needs.

The primary objective of a commercial bank is to earn profit by providing loans and financial
services. They act as intermediaries between people who save money and those who need money
for investment or consumption.

Commercial banks offer a wide range of services, such as:

- Accepting deposits (Savings, Current, and Fixed Deposits)

- Providing loans (Personal, Business, Home, Education, etc.)

- Issuing credit and debit cards

- Enabling online and mobile banking

- Offering foreign exchange services and safe deposit lockers

In India, commercial banks are regulated by the Reserve Bank of India (RBI). They are divided into
two main types:

1. Public Sector Banks - e.g., State Bank of India (SBI)

2. Private Sector Banks - e.g., HDFC Bank, ICICI Bank

Commercial banks are essential for the development of a country's economy, as they provide the
necessary financial support for both individuals and businesses.

3. Introduction to Bank of Baroda (B.O.B.)

Bank of Baroda (B.O.B.) is one of the leading public sector banks in India. It was established on July
20, 1908, by Maharaja Sayajirao Gaekwad III in Baroda (now Vadodara), Gujarat. Today, it is
recognized as a major Indian international bank with a strong presence across the country and
abroad.

After the nationalization of banks in 1969, Bank of Baroda became a government-owned bank. It
has grown over the decades to become the second-largest public sector bank in India, after the
State Bank of India (SBI).

Bank of Baroda provides a wide range of financial products and services including:

- Savings and Current Accounts

- Fixed Deposits
- Loans (Home, Personal, Education, Business)

- Credit and Debit Cards

- Online and Mobile Banking

- Insurance and Investment services

As of today, B.O.B. has a strong global network with over 8,000 branches in India and a presence in
more than 15 countries. The bank's tagline is "India's International Bank", which reflects its
commitment to global banking standards and customer service.

Bank of Baroda merged with Vijaya Bank and Dena Bank in April 2019, making it even stronger and
more competitive in the Indian banking sector.

4. Procedure to Open a Savings Account in B.O.B.

Method 1: Offline (by Visiting the Branch)

- Visit the nearest B.O.B. branch.

- Ask for a Savings Account Opening Form.

- Fill in the required details like name, address, mobile number, PAN, Aadhaar, occupation, etc.

- Attach required documents (KYC): Aadhaar card, PAN card, photographs, address proof.

- Submit the filled form and documents.

- Make the initial deposit (Rs 500 - Rs 1000).

- Bank verifies and processes the application.

- After approval, you receive: Passbook, Debit Card, Cheque Book, Welcome Kit.

Method 2: Online (Website or BOB World App)

- Visit [Link] or use BOB World app.

- Choose "Open Digital Savings Account".

- Fill the online form and upload documents.

- Aadhaar OTP verification.

- Video KYC.
- Account is activated and details shared via email/SMS.

Documents Required (KYC):

- Aadhaar card

- PAN card (or Form 60)

- Photograph

- Mobile number linked with Aadhaar

Key Features:

- ATM-cum-Debit Card

- Net and Mobile Banking

- SMS Alerts

- Passbook

- UPI and QR Code

5. Functions of Commercial Banks

Primary Functions:

- Accepting Deposits (Savings, Current, Fixed)

- Providing Loans and Advances (Personal, Home, Business)

- Credit Creation

Secondary Functions:

- Agency Functions: Fund transfers, cheque collection, bill payments, trusteeship.

- General Utility Functions: Lockers, debit/credit cards, online banking, forex, financial advice.

6. Conclusion

During our visit to a commercial bank, we gained valuable insights into the working and services of
modern banking. We learned the step-by-step procedure to open a savings account, including filling
forms, KYC, and making deposits, both offline and online.

We also explored agency services like fund transfers, cheque collection, bill payments, and
trusteeship. General utility services included lockers, debit/credit cards, online banking, and forex.

This experience helped us understand how commercial banks play a crucial role not only in
managing personal finances but also in supporting the economy. It was a highly informative visit that
strengthened our knowledge of practical banking.