A Simple Guide to Banking
A Simple Guide to Banking:
To churn the thought process of the reader and a possible discussion, the book starts with a comparison of the banking activity with that of an automobile. The aim is to quickly baptizing a beginner into a learner of banking and financial services. In the next few chapters (we call these Learning Posts), banking is seen through the untiring efforts of a young entrepreneur. The entrepreuner who decides to act to ensure economic prosperity for his town people who are otherwise careless about their money matters.
In the Learning Post named ‘Let’s Build a Bank’, the economy of the town & its economic classes have been explained. A bank named ‘First Town Bank Limited’ or FTBL takes birth in the town and opens its doors for its people. People who have never cared about their hard earned money earlier. The bank offers both: the safety of the deposit and income from interest. FTBL now has ‘liabilities’. The bank progresses towards profits as it starts disbursing loans. The bank’s balance sheet now shows ‘assets’ as well.
Progression of the bank is shown from maintaining simple Saving Account (Demand Deposits or Demand Liabilities). Also Project Loans (Medium to Long Term Loans or Long-Term Assets) to various other areas of banking services and products. The book covers easily understandable write-ups on different banking topics such as Know Your Customer (KYC) and Anti-Money Laundering (AML), Reserve Bank of India (RBI), Book Keeping and Accounting Principles, Working Capital Finance, Retail Banking, Wholesale Digital Banking, Non-Performing Assets, Duties of a Relationship Manager (RM) under a learning post named ‘PHIRST’.
This concept of PHIRST is applicable universally to the role of a relationship manager. The book culminates in explaining the applications and benefits of the banking knowledge in the personal life.