Have you ever wondered how banks deliver their services seamlessly, whether through branches, ATMs, mobile banking, or UPI? If you’re preparing for the JAIIB/CAIIB exams or simply want to understand the modern banking infrastructure, this session is a goldmine for you!
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🚀 Key Topics Covered in This Video
1️⃣ Delivery Channels in Banking
Banks use different channels to offer services to customers. These are mainly categorized into Physical Channels and Electronic Channels.
📍 Physical Channels:
- Branches: Direct customer interactions, transactions, and financial advisory
- Extension Centers: Small outlets offering limited banking services
- Marketing Managers: Specially appointed professionals to assist customers
Branches remain a vital part of banking infrastructure, providing personalized assistance to customers. While digital banking is growing, some services like high-value transactions, loan discussions, and financial advisory are best handled in person.
📍 Electronic Channels:
- ATMs: Self-service machines for withdrawals, deposits, and mini statements
- Internet Banking: Online banking services from fund transfers to bill payments
- Mobile Banking: Banking on-the-go via smartphone apps
Electronic banking has revolutionized how customers interact with their banks, allowing them to make seamless transactions without visiting a branch.
2️⃣ BHIM UPI – Simplifying Digital Payments
BHIM (Bharat Interface for Money) is a UPI-based app developed by NPCI for instant fund transfers.
🚀 Key Features:
- Multiple Payment Methods: Use UPI ID, QR codes, mobile numbers, or Aadhaar numbers.
- High Transaction Limits: Transfer up to ₹2,00,000 per transaction.
- Security Features: Two-factor authentication and fraud prevention mechanisms.
UPI has transformed digital payments in India, allowing users to send and receive money instantly without needing to remember account details. Small businesses and individuals benefit greatly from the ease of transactions.
3️⃣ USSD-based Banking (*99# Service)
USSD-based banking allows customers to perform banking transactions on keypad phones without internet.
📌 How Does it Work?
- Dial *99# on your mobile phone.
- Choose a preferred language.
- Select the banking service you need (fund transfer, balance inquiry, etc.).
- Enter your UPI PIN and confirm the transaction.
USSD banking is especially useful for customers in remote areas who may not have smartphones or reliable internet connectivity. It ensures that digital banking is accessible to all.
4️⃣ Co-Lending Model: Banks + NBFCs = More Credit
The co-lending model allows banks to partner with NBFCs (Non-Banking Financial Companies) to lend money.
✅ Benefits of Co-Lending:
- Better Credit Flow: Funds reach underserved customers.
- Lower Interest Rates: Banks provide cheaper capital, making loans more affordable.
- Risk Sharing: Both banks and NBFCs share the credit risk.
Co-lending is a game-changer for financial inclusion, allowing banks to extend credit to micro-entrepreneurs and small businesses in a risk-mitigated way.
📌 Conclusion: Why This Knowledge Matters?
Understanding delivery channels and digital banking is essential for every banker and finance professional. With the increasing shift toward digital payments, knowing about UPI, co-lending, and fraud prevention helps you stay ahead in the game.
🚀 Key Takeaways:
- Banks use physical and digital channels to serve customers.
- UPI & BHIM app make transactions seamless and secure.
- USSD banking enables transactions without internet.
- Co-lending models improve loan accessibility.
- Customers must be cautious of fraud and report suspicious activities promptly.
💬 What did you find most useful? Comment below!
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