Retail Banking can be defined as doing business with individual customers.
Retail banking is, however, quite broad in nature – it refers to the dealing of commercial banks with individual customers, bot on liabilities and assets sides of the balance sheet. Fixed, current/savings accounts on the liabilities; and personal loans, housing, auto loans and educational loans on the assets side, are the important products offered by banks. Related ancillary services include credit cards, debit cards and depository services. Today’s retails banking sector is characterized by three basic features:
- Multiple Products (Deposits, Credit cards, Insurance, Investments and Securities);
- Multiple Channels of Distribution (Call center, Branch, Internet and Kiosk); and
- Multiple Customer Groups (Consumer, Small Business and Corporate).
The typical products offered in the Indian retail banking segment are:
Retail Deposit Products:
- Savings Bank Account
- Recurring Deposit Account
- Current Deposit Account
- Term Deposit Account
- Zero Balance Account for salaried class people
- Basing Savings Bank Deposit Account (BSBDA) for the common man
- Senior Citizen Deposit Account, etc.
Retail Loan Products:
- Home Loans to resident Indians for purchase of land and construction of residential house/purchase of ready built house/for reprisal and renovation of an existing house.
- Home Loans to Non-Resident Indians
- Auto Loans – for purchase of new/used four-wheelers and two-wheelers
- Consumer Loans – for purchase of white goods and durables
- Personal Loans – for purchase of jewels, for meeting domestic consumption etc.
- Educational Loans – for pursuing higher education both in India and abroad
- Trade related advances to Individuals – for setting up business, retail trade etc.
- Crop Loans to agricultural farmers
- Credit cards etc.
- Safe Deposit Lockers
- Depository Services
- Bancassurance Products etc.