Summer Training Report On “Business Opportunity for Yes Bank Ltd in FCRA Accounts of Charitable Institutions”
Submitted in the partial fulfillment fulfillment for the award of Masters Degree in Business Administration (2007-2009).
Under Supervision
Submitted By
Mr. Jatindeep Sachdeva
Saravpreet Singh
Vice President
Roll No.747
Government Relationship Management
MBA 3rd Sem
Yes Bank Ltd.
PANIPAT INSTITUTE OF ENGINEERING & TECHONOLGY KURUKSHETRA UNIVERSITY KURUKSHETRA
1
INDEX
1. Acknowledgement Acknowledgement
4
2. Preface
5
3. Executive Summary Summary
6
3. Introduction
7
4. Overview of FCRA
8
5. Company Profile
13
6. Industry Profile
21
7. Objective of Study
32
8. Research Methodology
33
9. Sampling
36
10. Time Period
37
2
11. Areas of Study
38
12. Analysis & Interpretation Interpretation
39
13. Comparison of Banks Products
53
14. Conclusion & Suggestion
54
15. Problems & Limitations
51
16. Annexure
57
17. Bibliography
61
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ACKNOWLEDGEMENT
I would like to thank all the people without those help this project could not have been completed. completed. Mr. Jatindeep Jatindeep Sachdeva, Sachdeva, Vice president GRM (Government (Government Relationship Relationship Management) Team who was my guide, was extremely patient and open to what ever suggestion I had to make and in the process gently guide me whenever I went wrong. I would like to thank Mr. A.S.Khurana Senior Advisor YBL (Yes Bank Ltd.) who gave me chance to work in a Bank as reputed as YES BANK LTD. The people without whom I could never managed this far as Mrs. Puja Walia H.O.D. MBA Department.
I would be failing in my duty if I do not express my thanks to my respondents whom I visited and who spared their valuable time to answer my questions. Last, but not the least, my thanks to all the people who helped me in making my efforts fruitful.
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PREFACE Practical exposure in the field of management is extremely important as it gives a close view of the real business issues. It helps to cover all part that remained uncovered in the classroom. It helps to gain experience. Just theoretical knowledge is not sufficient for the success of any business student. So one should have practical knowledge about each aspect of life.
I learnt lot of new things from this project, which could never have been learnt from theory classes.
If any findings & recommendations go in any way to prove some new ground in helping the commodity future sector, I shall deem my efforts have duly served the purpose. In the forthcoming pages an attempt has been made to present report covering different aspects of my project.
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EXECUTIVE SUMMARY
•
MAIN OBJECTIVE: Objective of the study is to search Business opportunities opp ortunities in foreign contribution Regulation Act 1976, (FCRA) accounts acco unts of charitable institutions in Delhi NCR for the Yes Bank Ltd. and forming strategies to target this segment for the bank.
•
SUB OBJECTIVES: 1. To make a comparat comparative ive analys analysis is of the Banking Banking produc productt offered offered by the Banks in FCRA accounts to the charitable institutions. 2. To take an overvie overview w of the needs needs of the charita charitable ble instit instituti utions ons in banking banking industry. 3. To recomm recommend end a product product in in accordanc accordancee to the rules rules of FCRA FCRA 1976 and and as per the guidelines of the RBI.
•
METHODOLOGY: Approach to the project starts from the deep theoretical knowledge of the Act with the help of internet following the visits to the office of FCRA at Ministry of Home Affairs (MHA) New Delhi. Then visiting to the different type of Non Governmental Organizations (NGO’s) in the Delhi and NCR and collecting the requi require red d info inform rmat atio ion n for for the the proj project ect repo report rt by aski asking ng the the ques questi tion onss to the the respondent institutional executives or their members.
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INTRODUCTION INTRODUCTION TO THE REPORT
Report has been prepared with the objective of searching for the business opportunities for the bank by collecting and analyzing information from various sources and making strategies for the same. Report has valuable information which has been carefully collected and analysis on the same has been made to reach at the appropriate conclusion. Survey has been done of the of the various charitable institutes with appropriate questionnaire framed with the objective kept in mind. Questions were asked to the officials to the various organizations and necessary information was collected as a primary source to the subject. Detail study of Foreign Contribution Regulation Act 1976 is done to have the deep
theoretical
and
practical
knowledge
of
the
project.
Project Project is to study the requirements requirements of the charitable charitable institut institutions ions in the banking product which is done by meeting different charitable institutions and asking them about their present banker and their needs. A comparison of the banking product offered by the Standard Chartered Bank and HDFC Bank is also done by meeting the two Banks officials in Delhi region.
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An Overvi Overview ew to the Foreig Foreign n Contri Contribut bution ion (Regul (Regulati ation) on) Act FCRA 1976.
Foreig Foreign n Contrib Contributi ution on (Regul (Regulati ation) on) Act was given given by the Parlia Parliamen mentt in the Twenty Twenty-seventh year of the republic India. It is to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that parliamentary institutions, political associations and academic and other voluntary organizations as well as individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign democratic republic, and for matters connected therewith. FCRA department is situated in New Delhi, Ministry of Home Affairs, Foreigners division, jaisalmer house, 26, Man Singh Road Road ever every y perm permis issi sion on for for regi regist stra rati tion on is sent sent here here.. Appl Applic icat atio ion n Form Formss can can be downloa downloaded ded from from websit website, e, www.mha.nic.in www.mha.nic.in.. Need Need for for the the Fore Foreig ign n Cont Contri ribu buti tion on Regulation Act,1976 was felt due to the security considerations and to ensure that foreign contributio contribution n is utilized utilized for genuine genuine activities activities without compromising compromising on concerns concerns for national security.
The central government has the power to prohibit any person or organizations from accepting foreign contribution or hospitality if it is determined that such acceptance would likely ‘affect prejudicially’ a) the sovereignty and integrity of India, b) public interest, c) freedom of fairness of election to any legislature, d) friendly relations with any foreign state, or e) harmony between religious, racial, social, linguistic or regional groups, castes or communities. The Act was essentially designed to prevent flow of foreign funds to political parties in India.
Registration and permission An associ associati ation on having having a defini definite te cultur cultural, al, econom economic, ic, educati educational onal,, religi religious ous or social social programme can receive foreign contribution after it obtains either •
The prior permission of the central Government, or
•
Gets it self registered with the central Government.
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Prior permission Prior permission is required •
Where the association does not have a FCRA registration ,
•
Where the association is kept under prior permission category,
•
Where registration is frozen
•
Association of political nature not being political party.
Accounts In the the Act Act it is ment mentio ioned ned that that regi regist ster ered ed asso associ ciat atio ions ns may may only only rece receiv ivee fore foreig ign n contribution in a single account of a specified Bank branch. Every association so registered shall give within such time & in such manner as may be presc prescrib ribed, ed, intim intimati ation on to the centra centrall governm government ent as to the amount amount of each each foreig foreign n contribution received by it. A separa separate te set of account accountss and record recordss shall shall be mainta maintaine ined, d, exclus exclusive ively ly for foreig foreign n contribution received and utilized. Every account shall be maintained on a yearly basis duly certified by a chartered accountant along with a balance sheet & statement of receipt& payment account to MHA.
Foreign Hospitality The Act regulates receipt and utilization of foreign hospitality by certain individuals which which incl include udess memb member erss of legi legisl slat atur ure, e, offi office ce-b -bea eare rers rs of poli politi tica call part party, y, judg judges es,, government government servants, servants, employees employees of Corporation Corporation,, while visiting any foreign country country or territory outside India. Such individuals can receive foreign hospitality only with the prior permission of the Central Government. Prior permission is not required when such indivi individual dualss are required required to receiv receivee any emergent emergent medical medical aid needed on account account of sudden illness contracted during foreign visit, but, they are mandated to intimate the Central Government within one month from the date of such foreign visit/receipt of foreign hospitality. The intimation shall include the source from which and the manner in which such hospitality was availed by the recipient. Foreign hospitality includes cost of travel, boarding, lodging, free transportation, free medical treatment, etc.
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Over 34,035 associations have been registered under FCRA as on 28th February, 2007 to receive and utilize foreign contribution. These associations are broadly divided into 5 categories categories viz. Religious, Cultural, Cultural, Economic, Economic, Educational Educational & Social. Social. Many of these associ associati ations ons are simult simultane aneous ously ly engage engaged d in activi activitie tiess fallin falling g within within two or more more categories. No bank should credit any foreign contribution to the account of an association/NGO unless it produces documentary evidence of having obtained registration/prior permission from the Central Government for the same. In case any foreign contribution is credited to the account of an NGO/Association/Trust directly, the bank should not allow utilization of such such fund fund and inform inform the NGO/A NGO/Asso ssocia ciatio tion/T n/Trus rustt concer concerned ned to obtain obtain necessa necessary ry permission/registration from the Central Government for the same. Simultaneously, the bank should inform the Deputy Secretary (FCRA), Ministry of Home Affairs, Govt. of India, New Delhi about such receipt. Non-compliance of the above by the bank will constitute a violation and will render the defaulting bank liable for appropriate action by the Reserve Bank of India.
Salient Features Data pertaining to receipt of foreign contribution co ntribution for 2005-06 has been compiled. Its salient features are as below: I. As on 31-03-2006, 32,144 associations were registered and 513 were granted prior permission during the year 2005-06. II. For the year 2005-06, 18,570 associations reported receipt of foreign contribution (including those which received NIL amount) amounting to Rs7,877.57 crores. III. Among the States and Union Territories, Tamil Nadu Rs. 1,609.64 crores reported the highest receipt of foreign contribution followed by Delhi Rs.1556.46 crores and Andhra Pradesh Rs 1,011.57 crores. IV. Among the reporting associations, World Vision of India, Tamil Nadu (Rs. 256.41 crores) received the highest amount of foreign contribution followed by Caritas India, Delhi (Rs. 193.36 crores) and Rural Development Trust,
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Andhra Pradesh (Rs. 126.64 crores).
Analysis of the Last Three Years’ Data An analysis of the data for the last three years i.e. from 2003-04 to 2005-06 shows that; a) United States of America is the top donor country. b) Foundation Vincent E Ferrer, F errer, Spain contributed the highest amount of foreign contribution. c) Tamilnadu received the highest amount of foreign contribution. d) Chennai district received the highest amount a mount of foreign contribution. e) World Vision of India, Tamil Nadu received the highest amount of foreign contribution. f) Among the purposes, the highest amount was received for Establishment purposes.
RECEIPT OF FOREIGN CONTRIBUTION IN INDIA Year 2001-02 2002-03 2003-04 2004-05 2005-06
Amount ( Rs. in Crores ) 4871.90 5046.50 5105.50 6256.68 7877.57
% Increase over previous year 7.42 3.58 1.17 22.55 25.91
TOP RECEIPTENT ASSOCIATIONS IN DELHI NAME OF ASSOCIATION
Caritas India, Delhi
Foreign Contribution Rs/Crores 2005-06 2004-05 2003-04
193.36
65.30
37.54
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Plan International Inc., Delhi Oxfam India Trust, Delhi SOS Children’s Village of India, Delhi Society for Development Alternatives, Delhi
92.09 71.90 55.91 53.79
64.91 52.30 26.01 28.46
56.80 33.93 38.66 19.32
NUMBER OF ASSOCIATIONS REPORTING TO FCRA DEPARTMENT YEAR 2003-04 2004-05 2005-06
ASSOCIATIONS 1 714 5 1 854 0 1 857 0
FOREIGN FUNDS COMING TO DELHI 2003-04 2004-05 2005-06
Foreign Contribution Rs/crores 857.12 1075.23 1556.46
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COMPANY PROFILE Country Industry NSE/BSE Listing Regd.& corporate office
India Banking NSE Code -532648 Nehru centre,9th floor, Discovery of India, Dr.A.B.Road, worli, Mumbai 400018 Tel:-
Nort orther hern Re Regional Cor Corp pora orate Of Office
+91(22) 6669 9000 48,Nya Nyaya Mar Marg, Cha Chanakyapur puri, New New Del Delhi 110021 Tel:-+91(11) 6656 9000
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Website
www.yesbank.in
Yes Bank, India’s new age private sector Bank is the outcome of the professional commitment of its founder Mr. Rana Kapoor supported by his highly competent top management team to establish a high quality, customer centric, service driven, private Indian Bank catering to the “Future Industries of India”.
Yes Bank has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of Yes Bank is its knowledge driven approach to banking and an unprecedented customer experience for its retail and wealth management clients.
Yes Bank is steadily building corporate and institutional banking, financial markets, invest investmen mentt bankin banking, g, corpor corporate ate finance finance,, busine business ss (Small (Small &Mediu &Medium m Enterp Enterpris rises) es) and transa transacti ction on bankin banking, g, intern internati ational onal bankin banking, g, retail retail banking banking and wealth wealth managem management ent busine business ss lines lines across across the country country.. The Bank’s Bank’s consta constant nt endeavo endeavour ur is to provid providee a delightful banking experience expressed with simplicity, empathy, and totality.
Yes Bank understands the financial needs of the Government of India, in its progress and devel developm opment ent role role of a ‘Gro ‘Growi wing ng Indi India’ a’ thro throug ugh h Yes Bank Bank’s ’s Knowl Knowled edge ge Bank Bankin ing g approach and the objective of being the “Bank for an Emerging India”. Yes Bank remains committed to serving this specialized segment. Yes Bank’s knowledge Banker’s deliver innovative, structured and comprehensive solutions through a “Money Doctor” approach focusing on diagnostic and prescriptive attention to detail. This is facilitated through Yes Bank’s Technology leadership –delivering proven, easy-to-use solutions for Government Undertakings and agencies. Yes Bank has provided financial and advisory services to Ministries of the Union Government, State Governments, Central and State Public Sector Undertakings (PSU’s) and Agencies.
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In a short span of over three and a half years the Government Relationship Management (GRM) team has developed robust relationships with over 100 entities. The GRM team is commit committed ted to the core core values values of client client orient orientati ation, on, innovat innovation ion and superi superior or servic servicee experie experience nce that that exempli exemplify fy all Busine Businesse ssess at Yes Bank. GRM team is provid providing ing the Knowledge Knowledge Advisory, Advisory, Liquidity Liquidity Management Management and Investment Investment Products, Products, Transactio Transaction n Banki Banking, ng, trade trade fina financ nces es,, cash cash mana manage geme ment nt serv servic ices es,, Trea Treasu sury ry serv servic ices es,, Forex Forex Remittances, debt capital markets, investment managements, corporate salary accounts, Advisory structured transactions, term loans, and cash credit limits to various government operations like IFFCO, SAIL, Airport Authority of India, IOCL, NDPL, HPCL, Bridge & Roof co.(India) ltd and many more.
Business Strategy
Knowledge Banking: - One of the strengths and differentiating features of Yes Bank is its knowled knowledge ge bankin banking g approach approach that that is the essenc essencee of all offering offeringss to its customers customers.. Knowledge has been institutionalized as a key ingredient in all internal and external proc proces esse sess and util utiliz ized ed to crea create te cust custom omiz ized ed solu soluti tions ons for for the the clie client nts’ s’ speci specifi ficc requirements.
Technology and Operations: - As a new generation Bank, Yes Bank has the advantage of accessing the latest available technology. The Bank has taken a calibrated decision to invest in the best IT system and practices in order to make its technology platform a strategic business tool for building a competitive advantage.
Responsible Banking: -Yes Bank has a vision to champion ‘Responsible Banking’ in India, where the concepts of Corporate Social Responsibility (‘CSR’) and sustainability are integrated in its Business focus.
Business Lines: -Yes Bank has four distinct business segments to effectively service the differentiated needs of its targeted customers.
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Corporate and Institutional Banking (C&IB): -To cater to the needs of large corporate & instituti institutional onal clients, clients, MNC’s, MNC’s, government government companies and PSU’s. PSU’s. Bank targets targets C&IB customers through its multifunctional branches in the key metropolitican cities.
Emerging Corporate Banking (ECB): -It is dedicated to partner with growth-focused, fast-paced enterprises, which are emerging as a leader in their respective business areas.
Business Banking: -To cater to the needs of the small and medium enterprises (SME), Yes Bank has set up a dedicated business unit to focus on delivering superior banking solutions specially designed to meet the varying and dynamic needs of its SME clients.
Retail Retail Banking Banking and Wealth Management: Management: -The Bank intends to develop develop Retail Retail Banking into a key value driver. Yes Bank offers its customers choice & convenience, reflected in its branch layout & design, product feature /design, options of distribution channels and superior technology enabled service quality. Yes Bank predominantly offers value added retail retail liabi liabilit lity y and third third party party wealth wealth manage management ment produc products ts as well well as retail retail asset asset offerings through its sales and service network linked to its branches.
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Private Banking: - Yes Bank is focusing on personalized relationship banking for its top end High Net worth customers, supported by structured financial solutions tailor-made to suit the needs of such customers.
Product lines: - Yes Bank offers a wide range of fee-based products to corporate and business banking customers to ensure a high degree of cross-sell to clients.
Financial Markets: -Yes Bank financial markets was ranked second in the ‘Best for currency strategy’ and ‘best for technical analysis’ categories at the Asia Money 2005 foreign exchange poll for India.
Transaction Banking: -Yes Bank Transaction banking group has adopted a consultative approach approach and focus focus on kno knowle wledge dge and relati relations onship hip banking banking to enable enable custom customers ers to address strategic financial and operating needs in the domain of: •
Working capital and liquidity management
•
Asset management
•
Treasury integration
•
Exposure and risk management
Yes Bank proposes to apply industry knowledge and superior technology for offering innovative structured solutions integral to a company’s financial supply chain.
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Yes International Banking: - It offers a complete suite of international banking products and services, services, driven by state-ofstate-of-the the art technology, technology, which includes includes Debt, Trade finance, corpor corporate ate financ finance, e, Invest Investmen mentt banking banking and busine business ss advisor advisory y servic services, es, treasu treasury ry and global Indian banking. The Bank also plans to leverage its international presence, for its capital capital raisin raising g activi activitie ties. s. These These servic services es will will initi initiall ally y be throug through h partne partnersh rships ips with with international banks and financial institutions followed by the establishments of branches and representative offices, as per regulatory approvals.
Brand Creation: - The Bank believes that its differentiation begins with its service and trust mark ’YES’. ‘YES’ represents the bank true spirit of being service-oriented. The ‘YES’ brand creation creation effort effort is supported by ‘Triton ‘Triton Communicat Communications’ ions’,, the principal advertising agency and ‘Ad factors PR’, the Bank’s public relation consultant.
Key Members of Yes Bank Management Team
NAME Mr. Rana Kapoor Mr. Sunil Gulati
DESIGNATION Managing Director & CEO Group President - C&IB, Transaction
Mr. Deepak Gaddhyan Mr. Sumit Gupta
Banking Group President GRM Team. Country Head – Emerging Corporate Banking
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Mr. Alok Gupta
Country Head – life sciences &
Mr. Rajnish Datta
technology Country Head –Small business banking
Mr. Subir Bisht Mr. Sanjay Aggarwal
group Chief Risk Officer Country Head –Credit Risk, Business
Mr. Varun Tuli
Banking President Business Banking
Key Highlights & Milestones of Yes Bank. Nov 2003 May 2004
Incorporation of YES BANK Limited RBI Li License to to co commence ba banking
Dec 2006
business Ranked No.3 in the Business World
Mar 2007
Survey of India’s Best listed Banks Ranked No.2 among New Private Sector
Dec 2007 Dec 2007 Jan 2008
Banks in the Financial Express survey Won ‘Best CSR practice award 2007’ Won ‘IT people award 2007’ 60 operational branches across India
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Mar 2008
Ranked No.3 among New Private Sector Bank Bankss in the the Finan Financia ciall Expr Express ess-E -E&Y &Y survey & overall #1 on credit quality &
Apr 2008
#2 on Growth 67 operational branches across India
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INDUSTRY PROFILE
The oldest bank in Indian Banking industry is the “State Bank of India” being established as the “Bank of Bengal” in Calcutta in June 1806. The first fully Indian owned Bank was the “Allahbad Bank”, which was established in 1865. By the 1900s, the market expanded with the establishment of Banks such as “Punjab National Bank”, in 1895 in Lahore and Bank of India, in 1906, in Mumbai. The “Reserve Bank of India” formally took on the resp respon onsi sibi bili lity ty of regul regulat atin ing g the the Indi Indian an banki banking ng sect sector or from from 193 1935. 5. Afte Afterr Indi India’ a’ss independence in 1947, the Reserve Bank was nationalized and given broader powers. In the the earl early y 1990 1990’s ’s the the then then Nars Narsim imha ha Rao Rao gove govern rnme ment nt emba embark rked ed on a poli policy cy of liberalization and gave licenses to a small number of private Banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust
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Bank (the first of such generation banks to be set up) which later amalgamated with Oriental Oriental Bank of Commerce, Commerce, UTI Bank (Now re named as Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, kick started the Banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of Banks, namely Government Banks, Private Banks, and Foreign Banks The next stage for the Indian Banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment (F.D.I.), where all foreign investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. The new policy shocks the banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (borrowing at 4%; lend at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional Banks. All this led to boom in India. People just not demanded more from their Banks but also received more.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in the private sector Bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even, though reach in rural India still remains a challenge for the private sector and foreign Banks. In terms of quality of assets and capital adequacy, Indian Banks are considered to have clean, strong and transparent balanc balancee sheets sheets relati relative ve to other other Banks Banks in compar comparabl ablee economi economies es in its region. region. The Reser Reserve ve Bank Bank of Indi Indiaa is an auto autono nomo mous us bod body, y, with with mini minima mall pres pressu sure re from from the the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but
without
any
fixed
exchange
rate
and
this
has
mostly
been
true.
With the growth in the Indian economy expected to be strong for quite some time especially in its service sector-the demand for Banking services, especially retail banking,
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mortgages and investment services are expected to be strong. One may also expect M&A’s, takeovers, and asset sales. Currently, India has 88 scheduled commercial banks (SCBs) -
28 public public sect sector or banks banks (that (that is with with the the govern governmen mentt of India India holding holding a stake stake), ),
-
29 privat privatee banks (the (these se do not have have governm government ent stake stake;; they may may be publicl publicly y listed listed and traded on stock exchanges)
-
And 31 31 for foreeign banks.
They have a combined network of over 53,000 branches and 17,000 ATM’s. According to a report by ICRA limited, a rating agency, the public sector banks hold 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. The annual growth in bank credit to the commercial sector is at 25.4% as on March 31, 2007 and was lower than 27.2% against previous year. Till 2010, retail banking is expected to grow at a CAGR (compounded average growth rate) of 28% to touch a figure of INR 9,700 billion. This requires expansion and diversification of retail product portfolio, better penetration and faster service mechanism.
The report on Retail Banking industry in India covers industry segments like housing loan, auto loan, personal loan, education loan, consumer durable loan, credit card and regulatory frame work for retail Banks is also discussed. The report gives retail banking industry’s industry’s current performance performance and future future outlook. outlook. Total 22 major retail retail Banks in India are covered in terms of their performance, strategy and outlook. In absolute terms, India’s banking sector enjoyed reasonable growth through the year to December 31 2007. In local currency terms, terms, total assets, assets, total loans and total deposits deposits increased by 23%, 21%, and 26%, respectively. The loan/deposit, loan/asset ratio fell while the loan/GDP ratio rose.
State Bank of India (SBI)
State Bank of India is the India’s largest Bank. It has largest branch network all over the country with its special products like
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•
Personal Banking Deposit Schemes Personal Finance
•
Agricultural/Rural Banking Micro Credit Regional Rural Bank
•
•
NRI Services International Banking Trade Finance Merchant Banking Correspondent Banking
•
Corporate Banking Mid Corporate Group Project Finance Small & Medium Enterprises (SME’s)
•
Government Business Public Provident Fund SBI e-Tax
•
Services Internet Banking Mobile Banking
The SBI’s powerful corporate banking formation deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. The Corporate Banking group and the National Banking group are the primary delivery channel channelss for corpor corporate ate banking banking product products. s. The Corpor Corporate ate Bankin Banking g Group Group consis consists ts of dedicated Strategic Business Units that cater exclusively to specific client groups or specialize in particular product clusters. Foremost among these specialized groups is the Corporate Accounts Group (CAG), focusing on the prime corporate and institutional clients of the country’s biggest business centers. The others are the Project Finance unit
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and the Leasing Unit. The National Banking Group also delivers the entire spectrum of corporate banking products to other corporate clients, on a nationwide platform.
Complete Range of Products and Services
The SBI offers an exhaustive range of financial products and services that answers any business or market circumstance, backed by an assublack expertise in customizing the product to meet the most sensitive specificities of each client and each business context. Its team of highly skilled and experienced product specialists can help its customers in forecast structure complex transaction requirements.
The SBI Edge
Commanding unsurpassed respect and legacy in the Indian financial expanse, the SBI is committed committed to provide provide the financial solutions solutions that extract extract maximum value from business business and market situations.
While the Bank is strongly strongly positioned positioned to structure structure financial financial packages packages that anticipate anticipate the changing business environment, its vast network-the world’s largest-ensures delivery channels of unmatched reach, both in India and abroad.
Working Capital Finance
SBI offe offers rs work workin ing g capit capital al fina finance nce to meet meet the the entir entiree range range of shor shortt term term fund fund requirements that arise within a corporate day to day operational cycle. The SBI working capital loans help the companies in financing inventories, managing internal cash flows, supporting supply chains, funding production, and marketing operations, providing cash support to business expansion and carrying current assets.
SBI’s working finance products comprise a spectrum of funded and non-funded facilities ranging from cash credit to structured loans, to meet the different demands from all segments of industry, trade and the services sector. Funded facilities include cash credit, demand loan and bill discounting. Demand loans are considered also under the FCNR (B)
25
(Foreign currency from Non Resident) scheme. Non-funded instruments comprise letters of credit (inland and overseas) as well as bank guarantees (performance and financial) to cover advance payments, bid bonds etc.
Project Finance
The SBI has formed a dedicated Project Finance Strategic Business Unit to assess credit proposals from and extend term loans for large industrial and infrastructure projects. Apart from this, project term loans for medium sized projects and similar clients are delivered through the CAG (Corporate Accounts Group) and NBG (National Banking group).
In general, project finance covers Greenfield industrial projects, capacity expansion at existing existing manufactur manufacturing ing units, units, constructi construction on ventures ventures or other infrastructure infrastructure projects. projects. Capital Capital intens intensive ive busine business ss expansi expansion on and divers diversifi ificat cation ion as well well as replac replaceme ement nt of equipment may be financed through the project term loans.
Project finance is quite often channeled through special purpose vehicles and arranged against the future cash streams to emerge from the project. The loans are approved on the basis of strong in house appraisal of the cost and viability of the ventures as well as the credit standing of promoters.
Deferred Payment Guarantee (DPG)
SBI can extend deferred payment guarantees to industrial projects for obtaining imported equipment. The DPG is a standby credit guaranteeing deferred payments, usually for payments for capital goods, turnkey contracts etc.
Corporate Term Loan
Thee SBI Th SBI corpor corporat atee term term loans loans can can supp suppor ortt compa company ny in fundi funding ng ong ongoi oing ng busi busine ness ss expan expansi sion, on, repay repayin ing g high high cost cost debt debt,, techn technol ology ogy up grada gradati tion, on, R&D R&D expen expendi ditu ture re,, levera leveragin ging g specif specific ic cash cash stream streamss that that accrue accrue into into the company company,, implem implement enting ing early early retirement schemes and supplementing working capital. Corporate term loans can be
26
structured under the FCNR (B) scheme as well, with the option of switching the currency denomination at the end of the interest periods. This will help you take advantage of global interest rate trends vis-à-vis domestic rates to minimize your debt cost. The Bank’s Ban k’s corpor corporate ate term term loans loans are genera generall lly y availa available ble for tenure tenuress from from three three to five five years, years, synchronized with your specific needs. SBI corporate term loans can have a bullet or periodic repayment schedule as required by the client. The repayment mode may be linked to the cash accruals of the company. The Bank’s expert credit crew gauges the applicant’s particular fund requirements and evaluates the company’s credit worthiness, factoring in the cash flows generated by it.
Structured Finance
SBI structured finance involves assembling unique credit configurations to meet the complex fund requirements of large industrial and infrastructure projects. Structured finance finance can be a combination combination of funded and non-funded non-funded facilities facilities as well as other credit enhan enhance ceme ment nt tool tools, s, leas leasee cont contra ract ctss for for inst instan ance, ce, to fit fit the the mult multii laye layerr fina financ ncia iall requirements of large and long-gestation projects. Being India’s largest bank and with the rich experience that it brings with it, SBI commands formidable expertise in engineering financial packages that address complex requirements with minimum risk. Further, SBI has firm relationships across the financial map of the world, which can be leveraged to structure solutions that may necessitate the participation of several credit agencies.
Dealer Financing
SBI extends financial support to the corporate distribution network, by providing both working capital finance and term loans to select dealers of identified companies. This gives dealers to leverage their business relationship with major corporate to avail low cost credit. Also, this type of financial solutions allows the corporate negotiate a better price with dealers. Dealer financing may be extended in the bill discounting form or simply as cash credit.
Channel Financing
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Channel financing is an innovative finance mechanism by which the bank meets the various fund necessities along customer supply chain at the supplier’s end itself, thus helpin helping g them them sustai sustain n a seamle seamless ss busine business ss flow flow along along the arteri arteries es of the enterp enterpris rise. e. Channel finance ensures the immediate realization of sales proceeds for the SBI client’s supplier, making it practically a cash sale. On the other hand, the corporate gets credit for a duration equaling the tenure of the loan, enabling smoother liquidity management. SBI has the world’s largest banking network of over 9,000 branches and this enables it to deliver the financial solution at suppliers doorstep, across the span of the country.
Equipment Leasing
The SBI’s has deployed a dedicated strategic business unit for lease financing that is richly experienced in arranging lease contracts for procuring expensive equipment for clients clients project or plant. At SBI, lease agreements agreements as stand alone contracts or as part of a structured package are arranged.
Loan Syndication
The SBI leverages its vast network of relationships to arrange syndicated credit products for for corpor corporat atee clie client ntss and and indu indust stri rial al proj projec ects ts.. With With its its rich rich expe experi rien ence ce and and stro strong ng reputation, SBI’s syndication desk can assemble large loan packages involving a ring of repute reputed d financ financial ial entit entities ies,, domest domestic ic and intern internati ationa onal, l, that that match match the large large credit credit requirements of infrastructure projects.
Industrial Credit& Investment Corporation of India ICICI Bank
ICICI Bank is India’s second largest bank with total assets of Rs.3, 997.95 Billion (US$100 billion) at March 31, 2008 and profit after tax of Rs.41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the
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Indian stock exchanges in terms of free float market capitalization. The Bank has a network of about 1308 branches and 3950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of Investment banking, life and non life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia, and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International finance centre and representative offices in United United Arab Arab Emirat Emirates, es, China, China, South South Africa Africa,, Bangla Banglades desh, h, Thail Thailand, and, Malays Malaysia ia and Indonesia. UK subsidiary has established branches in Belgium and Germany.
ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the Nation National al Stock Stock Exchang Exchangee of India India Limite Limited d and its Americ American an Deposi Depositar tary y Receipt Receiptss (ADR’s) are listed on the New York Stock Exchange (NYSE).
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited in all stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investor in fiscal 2001 and fiscal 2002. ICICI was formed to in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian Industry. The principal objective was to create a development financial institution for providing medium term and long term p roject financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide range of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank in 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.
29
After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian Banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal legal structure for the ICICI group group’s ’s univ univer ersa sall banki banking ng stra strate tegy gy.. Th Thee merg merger er woul would d enha enhance nce valu valuee for for ICIC ICICII shar shareh ehol olde ders rs thro through ugh the the merg merged ed entit entity’ y’ss acce access ss to low low cost cost depos deposit its, s, grea greate ter r opportunities for earning fee based income and the ability to participate in the payment system and provide transaction banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI’s strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the boards of directors of ICICI and ICICI bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI personal financial services limited and ICICI capital services limited with ICICI bank. The merger was approved by shareholders of ICICI and ICICI bank in January 2002, by the high court of Gujarat at Ahmedabad in March 2002, and by the high court of judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s financing and banking operations, both wholesale and retail, have been integrated in a single entity.
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OBJECTIVE OF THE STUDY Main objective: Objective of the study is to look for the banking opportunities in FCRA accounts of charitable institutions for the Yes Bank. With the increasing number of organizations taking the FCRA registration, Bank is interested in having the business with the NGO’s in Delhi and NCR.
1. Objective of the study aims at the 360 degree knowledge to the target business. It includes the MHA (Ministry of Home Affairs), NGO’s and various banks giving such type of services to take detail know how and should reach at a decision to be taken by the bank after concluding the study.
2. To operate the FCRA accounts in accordance with the rules and guidelines mentioned in the FCRA 1976.
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RESEARCH METHODOLOGY Research in general refers to the search of knowledge. One can also define research as a scientific & systematic collection of information. In simple words research is the careful investigation or enquiry of markets especially through search for new facts in any branch of knowledge.
Analytical Tools Micros Microsoft oft Excel Excel (Pivot (PivotCha Chart rt Reports Reports). ). A PivotC PivotChar hartt Report Report is an interactive chart that quickly combines and compares large amounts of data from tables in excel. PivotChart report was used here to analyze related totals, because there was a long list of figures to sum and there was a need to compare several facts about each figure. Because a PivotChart report is interactive, it has flexibility to change the view view of the the data data to see see more more detai details ls or calc calcul ulat atee diff differ eren entt summaries, such as counts or averages. Drop fields feature was
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extensively used for the report creation. Essentially it is an area in a PivotChart report where we can drop fields from the Field List dialog box to display the data in the field.
DATA COLLECTION Data can be collected by using two well known methods: Primary & Secondary. In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and yourr research you research and, until until you publish publish,, no one else else has access to it. There There are many methods of collecting primary data and the main methods include: •
Questionnaires
•
One-to-one interviews
•
Group interviews
•
Observation
•
Case-studies
•
Diaries
•
Critical incidents
•
Portfolios
Secondary data is data that has already been collected by someone else for a different purpose to yours. For example, this could mean using: •
Data collected by a hotel on its customers through its guest history system
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•
Data supplied by a marketing organization
•
Annual company reports
•
Government statistics.
Primary data collection method used for this project.
I used questionnaire method which is also known as scheduling method for primary data collection in the research process. To know the exact details regarding FCRA accounts in Banks 360 degree approach is being used as the FCRA department, Banks, and NGO’s are surveyed to take the required
Secondary Data is also used for the purpose of completion of project which includes Internet, Centre for policy Research, and FCRA department.
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SAMPLING AND SAMPLING DESIGN The procedure by which a few fields are chosen from the data to be studied in such as way that the sample can be used to estimate the same characteristics in the total is referred to as sampling. The advantages of using samples are that it is much less costly, quicker and, if selected properly, gives results with known accuracy that can be calculated mathematically. Even for relati relatively vely small sample samples, s, accurac accuracy y does does not suffer suffer even though though precis precision ion or the amount of detailed detailed information information obtained, might. These are important important considerations, considerations, since most research projects have both budget b udget and time constraints.
Sampling process is taking a sample out of the universe population to take a decision regarding the population. Instead of surveying the whole population we take only a few persons for our topic to have a general idea of the subject related. In the project I took a sample of three Banks for a general idea of the FCRA accounts and made our study reach a conclusion. These three banks are
35
1. HDFC BA BANK
2. STANDARD CHARTERED 3. CORP CORPOR ORAT ATIO ION N BANK BANK
For the charitable institutions and NGO’s who are reporting to the FCRA Department to be studied I took a sample of 11 organizations from the NCR.
TIME PERIOD OF STUDY June, 9-14, 2008
Gather Gathering ing inform informati ation on regard regarding ing the Act, Act, Rules, Rules, Bill, Bill, with with help help of the second secondary ary mediums.
June, 16-18, 2008
Meeting FCRA, Ministry of Home Ho me Affairs official collecting the necessary ¤t information regarding the Act.
June, 19-23, 2008
Visiting various banks like Standard Charted Bank, HDFC Bank, Corporation Bank and other banks which offer special services to the charitable institutions in regards to FCRA & collecting the necessary details.
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June, 24-4 July, 2008
Meeting the officials of various charitable trusts and such institutions who are registered with FCRA and having the present banking arrangements.
AREAS OF STUDY Study of the project started from the Regional office of the Bank at 48, Nayaya Marg Chanakyapuri New Delhi. Main centre of the study was around the office like visiting the FCRA office from the Bank and an d then meeting the different charitable institutions and also the different Banks providing the same services in the area of Delhi and NCR. Area includes the different parts of New Delhi few of them are •
Connaught Circus
•
Safdarjung Enclave
•
Janakpuri
•
Ashok palace
•
Bhai Veer Singh Marg
•
Lodhi Road
37
ANALYSIS AND INTERPRETATION INTERPRETATION
1. Foreign Foreign receipt receipt in in the the present present year.
noforeig foreign n foreig foreign reci never
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No Foreign Receipt in Present
Foreign Receipt in Present Never received foreign funds
27% 73% 0%
This pie chart shows that only 27% of the organizations have not received any foreign funds in the current year and 73% organizations are receiving funds continuously and there is no organization (0%) which has h as never received any foreign fund so far.
2. Donor Donor from from which which coun country try..
Donor from all over the world. Donor only from USA. Donor from USA & others.
55% 27% 18%
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The figure gives an idea of the sample that 55% of the organizations surveyed are receiving funds from all over the world where as the 27% organizations are having foreign receipts or donations or members sending funds to India are only from USA. 18% of the organizations are as such they receiving funds from USA & others like UK, Netherlands etc.
3. Dealing with which Bank for FCRA accounts.
Public Sector Private Sector Foreign Bank
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Account in Public Bank. Account in Private Bank. Account in Foreign Bank.
55% 27% 18%
From the study of various organizations it has been concluded that the 55% organizations are dealing with the public sector Banks which include Indian overseas Bank, State Bank of Hyderabad, PNB, P&S Bank and 27% organizations reported to have their Bank account with the private sector Banks it has ICICI Bank, Federal Bank, Catholic Syrian Bank Ltd. Only 18% of the organizations are having Bank Account in Foreign Banks which has ABN AMRO, American express Bank.
4. Satisfaction level with present Banker.
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Poor Average Good Excellent
9% 9% 73% 9%
From the figure shown above it is clear that most of the organizations visited are satisfied with the services of present Banker as the 73% of the institutions have marked their Banker as good service provider and 9% each has been given to the Poor service, average,& excellent respectively.
5. Foreign Exchange conversion charges taken by Bank.
No charges Nominal Heavily
No extra charges. Charge, but Nominal. Charge Heavily.
27% 55% 18%
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Analysis for the foreign exchange charges is shown in the figure that 27% of the organizations are not paying any extra charges for the foreign receipts in their FCRA accounts, 55% of the organizations are paying the charges but they take them as a nominal charge for the transaction, only 18% of the organizations are paying heavily on the foreign exchange conversion to the Banks.
6. More Services desired from the Banking sector.
Just Satisfied need more. Well satisfied. Desire more benefits.
46% 27% 27%
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Most of the Organizations visited report to be just satisfied with the services provided by their present banker as the figure reaches up to 46% and also they need more from the banking industry. 27% of the institutions reported to be well satisfied with their banker, same is the percentage (27%) in the category which desires more from the banking sector in their product.
7. Investment advisory an important value added.
Investment advisory required. Own separate advisory body. Already getting.
55% 27% 18%
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Figure above shows about the 55% of the organizations are interested in the investment advisory and 27% of the organizations are having their own separate body for the purpose of investments, 18% of the organizations are already receiving such types of advices.
8. Reaction to proposed FCR bill 2006.
In favor of Bill 2006. Against the Bill 2006. Partially favor partially against.
18% 36% 46%
A major proportion of the organizations have two sided opinion on the FCR Bill 2006 as few of the proposals like multiple bank accounts instead of single bank account at
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present, are good for the organizations but few proposals are not favorable for the working of the organizations so it is 46% who are partially favoring it and partially opposing it. But 36% of the organizations are totally against the Bill, & 18% are in the favor of the Bill they say what government do is fine.
9. Requirement in rules of working with Fcra.
No Requirement to change in Rules. Required to be amended.
82% 18%
Most of the organizations are well satisfied with the current rules of the department as 82% of the organizations do not need any change in rules of FCRA only a small proportion i.e. 18% wants to have some amendments in the rules of FCRA.
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10. Auditing done by FCRA Department for the organization.
No Auditing by FCRA Auditing by FCRA in Past
No auditing by FCRA. Auditing in Past.
82% 18%
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According to the 82% organizations in the NCR area no auditing is done by the FCRA department separately for their organizations, the only thing is they file the FC-3 return at the end of each year audited by the certified chartered accountant and for the 18% organizations FCRA department has done auditing some time in past.
11. Problem faced in working with FCRA.
Problem faced No problem.
No Problem faced Problem Faced
100% 0%
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Survey Survey tells there is no proble problem m in workin working g for the organi organizat zation ionss with with the FCRA department as 100% of the organizations told that there is no problem in working as per rules of MHA.
12. Response level of FCRA department.
Poor Average Good Excellent
0% 18% 82% 0% 49
Survey shows that FCRA department is very good at response level to the organizations as 82% of the respondents have marked as good for the FCRA department & only 18% of the organizations mark them as average as they said officers sitting in the FCRA office are not fully trained they should be perfect in that.
13. Use of online services for the filling of returns by the NGO’s.
Using Online Services Not Using Online Services
45% 55%
50
Figure tells about the use of online services for contacting the FCRA department for filling the FC-3 returns or other returns is about 45% by the NGO’s and 55% of the NGO’s are just using the traditional way of filling the return to the FCRA department.
14. Reaction on the Proposed Renewal Fees on the FCRA registration in Bill 2006.
Against the Bill. Favor the Bill. Neutral for Bill.
64% 9% 27%
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Figure tells about the view point of the organizations towards the proposal of renewal fees on the certificate of the FCRA after every five years in order to eliminate the organizations from the certification those who are not responding to the department regularly, 64% of the organizations are against the renewal proposal as they are regularly reporting to the department, 9% are in favor as they say whatever government do is alright, 27% of the sample respond that they are neutral towards Bill2006.
Comparison of the FCRA accounts offered by different Banks.
Standard Chartered Bank •
Savings Account
•
Cash withdrawal allowed
•
Special team targeting NGO’s for FCRA accounts.
•
Compliance team at Bombay is reporting RBI and central government for MIS of the accounts.
•
Special care in case of Prior permission obtained by organization from central government.
HDFC Bank •
Savings Account
•
Cash withdrawal not allowed
•
Consultancy services as extra benefits to the account.
•
Special team for FCRA accounts.
•
Reporting regularly to central government and RBI.
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•
Special care in case of Prior permission obtained by organization from central government.
Corporation Bank •
Savings Account
•
Cash withdrawal allowed
•
•
No special team. International Banking Division (IBD) is contacting central government for FCRA accounts MIS.
•
Special care in case of Prior permission obtained by organization from central government.
CONCLUSION AND SUGGESTION
CONCLUSION
On the basis of study it is concluded that going towards the FCRA product will be a good move by the bank as there is large number of NGO’s in NCR region which are actively performing their projects, as they are receiving foreign funds through FCRA accounts in banks then it can be a source of foreign funds for the bank. There were 1120 FCRA accounts which reported to the department in year 2005-06 and these accounts have received 1557 crores in NCR.
SUGGESTION
VANI (Voluntary Action Network India) is the active NGO forum in NCR, It is better to introduce our new product through Forum and target our potential customers through this platform. In this forum most of the NGO’s and charitable institution are
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members, in this way Yes Bank can have business with them. Special team is required to target the FCRA accounts of public sector banks as they are not having any special team to handle them, but private sector banks like Standard Chartered, HDFC are having special team for this segment. YBL need to have •
Special FCRA product
•
Special team
•
Target to public sector banks having FCRA accounts
•
Relationship with FCRA department
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CHARITABLE INSTITUTIONS.
FCRA
DIFFERENT BANKS
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LIMITATIONS LIMITATIONS OF THE STUDY 1. General survey is more biased: General Survey is more biased because few charitable institutions were not ready to give the exact financial details.
2. Less responsi Genera rall Surv Survey ey was was foun found d to be less responsive ve commun communicat ication ion:: Gene responsive because of the reason that institutions &organizations did not want to respond to the questionnaire due to lack of time & non willingness.
3. Time consuming: The General Survey was time consuming because it take time to reach to different charitable institutions & ask them certain related questions in there different areas.
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ANNEXURE In the project I took the sample of 11 charitable institutions in the NCR for the purpose of know how of the FCRA account working. 1. CARI CARITA TAS S INDI INDIA A
CBCI Centre, Ashok Palace, Mr. N.M.Valan (Finance Manager) 2. ADOPT
606, Ansal Bhawan K.G.Marg Ms. Alpana Mukherjee 3. DEEPALYA
46, insti. Area, D-Block Janakpuri Mr. Mathew Jose (Deputy Director Finance) 4. CHETANALYA
9-10, Bhai vir Singh Marg Mr. Thomas K.S.(Finance Manager) 5. Centre for Women’s Development Studies
25, Bhai vir Singh Marg Mr. V.N. Soumya Narayan N arayan (Administrative Officer) 6. Delhi Bible Fellowship
22, Bhai vir Singh Marg Mr. Samson Masih (Administrative Assistant) 7. Marthoma Church Society
26, Bhai vir Singh Marg Rev. Jayan Thomas 8. National Institute of Urban Affairs
India Habitat Centre 4B 1st floor Mr. Diwan Singh (Senior Accountant) 9. Bhai Vir Singh Sahitya Sadan
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Bhai vir Singh Marg 011-23363510 10. Foundation for Panjab Studies
Bhai vir Singh Marg 011-23347919 11. Science Olympiad Foundation
B-8 Taj apartments Safdarjung Mr. Partap
QUESTIONS FOR CHARITABLE INSTITUTIONS. 1. Any sort of foreign income to the trust or any foreign donor?
2. Foreign donor is from which country?
3. Dealing with which Bank for the foreign receipt?
4. Satisfaction level with the services provided by your present Banker! a) Poor b) Average c) Good d) Excellent 5. What type of services is desired from the Bank?
6. Reactions to the F.C.R bill, 2006.
7. Any requirement regarding FCRA by you.
8. Any auditing done by the FCRA department?
9. Online services given by the FCRA department is helpful to organization. a) Yes b) No
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10. Fees on the FCRA registration is proposed in the bill 2006.What is your reaction to that? 11. Response level of the FCRA department to the queries and filling of different returns? a) Poor b) Average c) Good d) Excellent 12. Any problem faced in working of organization with rules of FCRA in FC-3 or etc.
FCRA DEPARTMENT QUESTIONS. 1. Basi Basicc purp purpos osee of FCR FCRA A 1976 1976??
2. Any Any chan change ge in in law law afte afterr 1976? 1976?
3. What What is the status status of Bill Bill 2006? 2006?
4. Reaction Reaction of charita charitable ble institut institutions ions after after the the proposed proposed Bill Bill 2006?
5. Banks having the FCRA FCRA accounts accounts have have to report to RBI or to FCRA?
6. Auditing Auditing process process by the the FCRA to the the charitable charitable insti institutio tutions? ns?
7. Single Single bank account account is allowed allowed for receivi receiving ng the foreign foreign funds. funds. Why? Why?
8. Fees structu structure re for the the registrat registration ion with with FCRA or Prior Permission Permission..
9. Any plan plan for for new new offi offices ces in Indi India? a?
10. 30321 registered associations in 2005 how many of them are reporting reporting to you?
11. What are the powers to the officer while granting granting the registration?
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12. Requirements for obtaining obtaining the registration registration from FCRA?
13. “Speculati “Speculative ve Business” is not allowed allowed out of the foreign foreign contribution contribution what is the checking process followed for that?
14. Banks having FCRA accounts have to report regularly regularly are they reporting reporting to you?
15. Any specifications specifications for opening account in in specific Bank?
QUESTIONS FOR BANKS. 1. What What type type of servic services es your Bank is providi providing ng to the Charit Charitabl ablee Instit Instituti utions ons and NGO’s?
2. Do you have have a separate separate team targetin targeting g the NGO’s/chari NGO’s/charitable table instit institution utions? s?
3. Is that that different different from from the the regular regular services services on on saving/cur saving/current rent account? account?
4. Do you have have FCRA account opened for for these these NGO’s/cha NGO’s/charita ritable ble institut institutions? ions?
5. How difficul difficultt is it to change change from from one Bank to to the other other for your your present present customer customer (NGO’s/charitable institutions)?
6. How much much is the the operation operation difficul difficulties ties in the reporti reporting ng of FCRA FCRA accounts? accounts?
7. Are you report reporting ing to the FCRA FCRA department department regular regularly ly for your your FCRA custome customers? rs?
8. How much much servic servicee oriente oriented d are these these account accounts? s? 9. Where
does
the
Bank
earn
from
these
accounts-foreign
exchange
conversions/current account floats income/charges on transaction/investment of surplus funds?
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Bibliography
1. KOTLER KOTLER,, PHILIP; PHILIP; Mark Marketi eting ng Managem Management ent,, “11th Edition” New Delhi, Prentice Hall of India, 2002. 2. RAMASWAMY, RAMASWAMY, VS & NAMAKUM NAMAKUMARI, ARI, S; Marketing Marketing Managemen Management: t: Planning, Planning, Implementation & Control, “3rd Edition” New Delhi, Macmillan. 3. ZIKMUN ZIKMUND, D, G WILL WILLIAM IAM,, Marke Marketi ting, ng, “7 “7th Edition”, Thomson learning, Mumbai. 4. COOPER COOPER & SCHIND SCHINDLER, LER, Research Research Methodolo Methodology gy Method, Method, TMH,”6th Edition”. 5. KOTHARI, KOTHARI, C.R; C.R; Resear Research ch Methodolog Methodology, y, Wishawa Wishawa Parkashan, Parkashan, “2nd Edition”. 6. SALKIN SALKIND, D, NEIL NEIL,, Explor Exploring ing Resear Research, ch, 3rd Edition, Prentice Hall, NJ, 1997. 7. RAJMOH RAJMOHAN, AN, R; Image Image Retail Retail,, ““2 2nd Edition”, 2007. 8. www.yesbank.in 9. www. www.mh mha. a.ni nic. c.in in
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