About Commercial Banking
A commercial bank can be defined as a financial institution that has the responsibility of providing services like acceptance of deposits, dispersing loans for business purposes as well as auto loans and also mortgage lending along with basic products of investment such as “certificates of deposit” and “savings accounts”.
The commercial bank that traditionally exists is an institution of “brick and mortar” which consists of safe deposit boxes, ATMs, tellers and vaults. In certain cases the physical branches are not present for the commercial banks and the consumers are required to complete all their transactions either through the internet or over the phone. High rates of interest are usually paid on the investments as well as the deposits in exchange and fees charged are low.
Thus, it can be said that commercial banks are financial institutions that provide services such as offering saving, deposit and current account and giving loans for individuals, organisations and businesses. This is in contrast to the investment banks, the main role of which is underwriting of securities, M & A advisory, securities trading and asset management.
The profits in case of the commercial banks are made by taking short term and small deposits that are relatively liquid and these are then transformed into longer as well as larger maturity loans. The asset transformation process leads to the generation of net income in cases of the commercial banks. Some of the commercial banks also perform the business of the investment banking but it is not the major area of business of the commercial bank.
While there has been a consolidation in the banking sector, it should be noted that many more people are working and have jobs in the sector of commercial banking in comparison to any other part of the industry of financial services. Banking jobs can be exciting and at the same time offer opportunities that are excellent for learning about the business, interacting with the people and also building up a clientele.
The diversity that the commercial banks possess in the modern age is more than ever before. A wide range of opportunities exist in the sector of commercial banking that start from the level of the branch where a person might begin the career as a teller and then move on to a number of other services like trade credit, international finance, credit card banking and leasing. In case you have the enthusiasm to enter this field and are prepared well, you have chances of finding a large number of jobs related to commercial banking that will be open for you.
Commercial Banking Course Description
The curriculum for the Commercial Banking Module has been designed keeping in view the various aspects of the commercial banking in India and the rules and regulations that are needed to be followed in the commercial banking sector of India as laid down in the guidelines of the RBI. The origin and evolution of commercial banking is also taken into consideration.
Introduction – This section introduces you to Commercial Banking and various other aspects of such as
- Introduction about the Commercial Banking course
- How can banking be defined?
- How has the evolution of banking taken place?
- What are the functions that the Commercial Banks perform?
- The competitive landscape related to the Banks
The Structure of Banking in India
- The Scheduled Banks that are present in India
- Role that is played by the Reserve Bank of India
Bank Deposit Accounts
- Introduction of the various Bank Deposits
- The different kinds of Deposit Accounts
- Strategies that can be employed for mobilizing deposits
- Guidelines for the Deposit Accounts
- Guidelines for the Deposit Accounts – Operations
- Services which are related to the deposits
- Other services related to the deposits
- The services related to the deposits for the NRIs
- Deposit Insurance
Basics of Bank Lending
- Lending principles
- Policy for Loans
- Guidelines of the RBI – Stipulation of Credit and Adequacy of Capital
- Limits of Credit Exposure
- Rates of lending
- Fair Practice Codes related to the lenders
- Basics related to loan appraisal
- Working Capital Finance
- Kinds of advances
- Project Finance
- Loans to rural areas as well as the SMEs
- Directed Lending
- NPA Classification
- Retail Loans
- Restructuring of Debts and other options related to recovery
- SARFAESI Act 2002
- Introduction to the topic of bank investments
- Requirements related to Statutory Reserves
- RBI Guidelines as well as Non SLR investments
- Classification of Investments and Norms related to valuation
- Treasury Measurement
Other Activities that are performed by the Commercial Banks
- Government Services and Foreign Exchange
- Clearing system that is paper based
- Electronic Systems of Payment
- Para Banking activities and NRI Remittances
- Merchant Banking and Primary dealership
- Pension Funds and Mutual Funds
- Other activities related to Para Banking
Bank – Customer Relationship
- Strategy for the expansion of the customer base
- Services for the different groups of customers
- Competition among the Banks
- “CRM and Banking Ombudsman Scheme”
- Norms of KYC along with PMLA
The Trends that are evolving in Modern Banking
- Outsourcing of the non core activities
- Financial Inclusion – SHG as well as Micro Credit
- Financial Inclusion – RBI Initiatives
Questions and Answers
- Q & A 1
- Q & A 2
What are the requirements/pre-requisites?
To pursue the module on commercial banking there are no major requirements. The only things that are required for a person to undertake the module of commercial banking consist of the following –
- Basic knowledge that is related to finance
- The person planning to undertake this module must have interest in finance along with a passion for learning
- A personal computer along with an internet connection
Target Audience for this training
This training on commercial banking can be taken by any person, even a novice student having basic financial knowledge can pursue this course. However, the following persons can be said to make up the target audience for this course –
- Students as well as the professors who have plans of appearing for the NCFM Module
- Any person who has interest in Commercial Banking and what to learn about the Indian system of Commercial Banking
- Students who belong to the various business schools
FAQs – General Questions
- I am new to Commercial Banking? How can this module help me to become familiar with this subject?
The function of this module is to act as a preparatory course that will help to familiarise the students with the fundamental aspects of Banking and also gives insights into the practices as well as the policies that is followed by the system of Indian Banking. The course needs to be understand as it gives an explanation of banking right from the beginning. The explanation that is provided is comprehensive. It explains the candidates about the way banking had started, the various functions that are performed by banking and finally the way in which the modern banking works. This will result in the creation of awareness related to the different policies as well as procedures of the Commercial Banking Industry of India and the way one get familiarise oneself with the Indian banking services.
- What benefits will I be getting from this course?
The Commercial Banking course prepares the persons who are planning to appear for the module of NCFM related to the Indian commercial banking. It is the beginner’s module which provides assistance in giving the candidate a required foundation so that he or she gains confidence when they appear for the certification tests of NCFM. The entire module of NCFM is divided into various chapters in a training that is interactive and based on PowerPoint. In the end the model questions as well as answers will also be discussed. The candidates planning to pursue the NCFM module usually find difficulty in selecting the correct approach to understand the training material of NCFM which has a curriculum that is in-depth, in finding the time to study and also in staying motivated for the entire period of learning. Keeping this in mind, the preparation of the course is done in a way that interest is created in the topics that have to be learnt. Being totally online, the course can be learnt according to the convenience of the person and towards the end the person gets the confidence of appearing in the test.
- What is the objective of this course and what are the basic concepts that I will be learning from this course?
“The Commercial Banking – NCFM module Preparatory Course” mainly attempts to serve the educational as well as the testing requirements of the students who are undergoing preparation for the certification tests so that they can qualify the tests easily.
The basic concepts that you will be learning from this course will be related to the sector of commercial banking in India and the way in which it operates. It will also familiarise the candidates with the banking fundamentals and will also provide certain basic insights into the practices as well as the policies that are being followed in the banking system of India. The business related to the banking rights will be explained right from the scratch. A comprehensive explanation will also be provided related to the way in which the various functions of banking had begun and also the way in which the modern banking is functioning. The foundation that is required will be provided to you by this course so that you gain a high level of confidence when you are appearing for the certification tests of NCFM.
A number of opportunities exist within the educba which provide help to you in not only continuing the hobbies as well as interests that you presently have but also start with something which may be totally new to you and at a time which is convenient to you. I took the preparatory module on the commercial banking in India and found the introduction to the concepts of commercial banking extremely good. I was able to get an in depth understanding of the various aspects of commercial banking in India, the way it developed and also the various roles that are performed by it in the country. This was a great course for someone like me who only possessed basic financial knowledge but had a passion to learn more about the banking sector. The questions as well as the answers at the end of the course were really very helpful in revision of the complete course. I really enjoyed the course and now I am all set to appear for the certification test to be conducted by NCFM.
Learning through an online mode proved to be an excellent journey. The best part was the flexibility of learning anywhere and at anytime. There were absolutely no issues with the services that were extremely prompt as well as quick. The best part was the training provided us with examples that were industry based which helped in gaining a better understanding of the topic. I pursued the preparatory module for the commercial banking course and was completely satisfied with the services that were offered. I had a fantastic experience by joining the online training course of educba. The videos as well as the study material that were provided as a part of the course were very much detailed and comprehensive and provided information related to the concept in an in depth manner. Assistance can also be taken from the experts whenever there is a requirement for that. The preparatory course helped me in gaining perfect knowledge which I really needed.
“The Commercial Banking Module Course” is among the best courses that create an understanding related to commercial banking and the way in which it works. The explanation regarding the commercial banking and its origin, the different functions that are undertaken by the commercial banks as well as the procedures and policies of the commercial banking have been explained in an excellent way by this module. I gained immense understanding of the commercial banking industry of India and the various guidelines that are needed to be followed by this sector. Overall the training and also the material that was provided were of excellent quality and provided great help to a technical person like me to prepare for the certification test of NCFM related to commercial banking. I will highly recommend this course to other people.
Career Benefits of this training
- Comprehensive and Detailed Knowledge
The course provides a comprehensive as well as detailed knowledge for the people who want to appear for the NCFM module certification test related to the Indian commercial banking. As a beginner’s module, the course prepares the person for the certification test by providing the information which is required so that the confidence level of the candidates appearing for the tests becomes high. The course is divided into several chapters and the interactive training is based on PowerPoint which is very detailed and provides an in depth knowledge of the various concepts of commercial banking. Several questions and answers are given at the end in order to make revision for the tests simple.
- High Income
Once the person is able to complete the training and pass the certification test of NCFM for commercial banking after that, the person has a high potential of earning a high income in the commercial banking sector of India. The person will have the option of working in any of the Indian commercial banks as he will be having thorough knowledge related to the various functions that are performed by the commercial banks in India along with the guidelines of the RBI that need to be followed for that purpose. The understanding of the bank lendings as well as the investments, relationship between the banks and the customers and also the way the modern banking has been evolving in the recent years will be very useful in career advancement in the banking field. This field has the maximum number of job opportunities as far as the financial sector is concerned.
|Where do our learners come from?|
|Professionals from around the world have benefited from eduCBA’s NCFM – Commercial Banking Module courses. Some of the top places that our learners come from include New York, Dubai, San Francisco, Bay Area, New Jersey, Houston, Seattle, Toronto, London, Berlin, UAE, Chicago, UK, Hong Kong, Singapore, Australia, New Zealand, India, Bangalore, New Delhi, Mumbai, Pune, Kolkata, Hyderabad and Gurgaon among many.|