Special Mention Accounts - SMA

Special Mention Accounts are those assets/accounts that shows symptoms of bad asset quality in the first 90 days itself or before it being identified as NPA.

The classification of Special Mention Accounts (SMA) was introduced by the RBI in 2014, to identify those accounts that has the potential to become an NPA/Stressed Asset.  Logic of such a classification is because some accounts may turn NPA soon. Here, an early identification will help to tackle the problem better. There are four types of Special Mention Accounts – SMA-NF, SMA 0, SMA1 and SMA 2.
The Special Mention Accounts are usually categorized in terms of duration. For example, in the case of SMA -1, the overdue period is between 31 to 60 days. On the other hand, an overdue between 61 to 90 days will make an asset SMA -2.
But some ‘Special Mention’ assets are identified on the basis of other factors that reflect sickness/irregularities in the account (SMA -NF). 
In the case of SMA -NF, non-financial indications about stress of an asset is considered.

post credit: https://lms.indianeconomy.net/glossary/special-mention-accounts-sma/

Views on Indian Union Budget 2022

 As expected, India Union Budget, presented by Hon'ble finance minister Mrs. Nirmala Sitharaman, is in line with previous year budget. No big announcement for the year in question, rather a roadmap is given for long way to go. This has come to the expectation of many who have learnt from previous year budget and Government initiatives. The Capex has increase to more than 35% which is the need of the hour to be as developing economy. The "Amrit Kaal" term was coined by PM Narendra Modi on 15th August 2021 which is suitably justified in 2022 budget announcements. The common man taxpayer was expected a bit relief in term of Income Tax slabs, However, the same is not possible as country is reviving from COVID pandemic situation.

CAIIB - RETAIL BANKING - UNIT 11 DELIVERY CHANNELS IN RETAIL BANKING

UNIT 11 DELIVERY CHANNELS IN RETAIL BANKING

v  Advantages of a good branch layout are

(i)      Promotes efficiency as it will ensure smooth flow of services.

(ii)     Internal communication effectiveness increases thereby facilitating better coordination among the staff resulting in better customer service.

(iii)    Provides a comfortable and congenial work environment to the staff which results in high employee motivation and acts as a morale booster.

        (iv)   Serves as an image building tool for the bank

v  For opening of different liability accounts, branches in the brick and mortar format perform only the role of the marketing function and front office operations.

v  customers were provided with the facility of withdrawing from other banks' ATMs through a common networking arrangement "National Financial Switch"

v  Two of the important net working arrangements called "Cash Tree" and "INFINET-National Financial Switch offered networking facility across banks.

v  Functioning efficiency of ATMs has an impact on  reputation risk for the bank and may result in customer switching also.

v  Net Settlement when the transfer of funds actually takes place, may occur at the same time as the transaction or soon afterward, or it may occur later in the day in POS systems that operate Off-Line in a Store and Forward mode.

v  Globally, mobile banking initiatives were stared by Wachovia in 2005 and the full fledged mobile browser in 2007.

v  Union Bank of India is one of the very early Public Sector Banks to offer mobile banking facility to their customers.

v  Presently, the bank's Mobile Banking works on SMS, GPRS, and J2ME over GPRS facilities

v  General Packet Radio Service (GPRS) is a packet oriented mobile data service, through which the customer can access the services of the bank using his/her MPIN.

v  Reserve Bank of India has recently enhanced the transaction amount through mobile banking to Rs.50,000/ and this higher limit is definitely going to create a greater impact in the mobile banking marketing

v  Ernest. T. Parkins had observed that internet banking, going forward, would have great implications on (1) Internet commerce, (2) new types of electronic retail payments, (3) electronic retail banking, and (4) the movement more generally of retail financial services to electronic delivery, including insurance, discount brokerages, and mutual funds

v  The levels of banking services offered through INTERNET can be categorized in to three
types: Basic Level Service, Simple Transactional Websites, 'Fully Transactional Websites'

v  Security issues include questions of adopting internationally accepted state-of-the art minimum technology standards for access control, encryption/decryption (minimum key length etc), firewalls, verification of digital signature, Public Key Infrastructure (PKI) etc.

v  Merita Nordbanken (MRB) leads in 'log-ins per month' with l .2 million Internet customers, and its penetration rate in Finland (around 45%) is among the highest in the world for a bank of 'brick and mortar' origin.

v  Swedbank was the first bank in the world to introduce Electronic Bill Presentment and Payment (EBPP).

v  If you compare internet banking and mobile banking, mobile banking will score over internet banking as a complete remote channel because of the strong penetration of mobile services across geography including rural areas.

v  While internet banking is an attractive channel for the upper middle end customers who are tech savvy, mobile banking is a universal remote channel attracting bottom of pyramid customers as well as high end customers.

v  In the long run, mobile banking as a remote channel will be the king of delivery channels in retail banking because of its simplicity and reach.

CAIIB - RETAIL BANKING - UNIT 10 MARKETING IN RETAIL BANKING

UNIT 10   MARKETING IN RETAIL BANKING

v  The fundamental ingredients of an effective marketing mix in retail banking which are as follows:

(i)    Product

(ii)   Price

(iii)  Promotion

(iv)   Place

(v)    People

(vi)   Process

(vii) Physical evidence

v  In the case of deposit products, 'Price' refers to the interest rate offered by the banker to the customer.

v  process relates to all organisational activities which go into the marketing of the final product to the customer including delivery channels.

v  Physical evidence refers to developing tangibility to the intangibility concept of banking services.

v  Delivery Channels are basically of two types. Physical Channels and Remote Channels

v  Branches and Extension Counters are referred to us Physical Channels.

v  Remote Channels also called as Electronic Channels  designed to serve customers outside the branch and includes ATMs, Internet Banking and Mobile Banking.