Module 3

MODULE -3
SUPPLY CHANNELS
INTRODUCTION OF SUPPLY CHANNELS
• Supply chain finance is a set of tech-based business and financing

processes that lower costs and improve efficiency for the parties involved
in a transaction.
• Supply chain finance works best when the buyer has a better credit rating
than the seller and can thus access capital at a lower cost.
• Supply chain finance provides short-term credit that optimizes working
capital for both the buyers and the sellers.
• Channel financing is an innovative finance mechanism by which
the bank meets the various fund necessities along your supply
chain at the supplier's end itself, thus helping you sustain a
seamless business flow along the arteries of the enterprise.
• 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 tenor of the loan, enabling smoother liquidity
management.
 Branch Banking: A branch of a bank is a place, office, unit where all
banking operations are done under the single roof. It is a place where
customers can visit personally and can make use of different kind of
services and banking products in one place. In case of any difficulty the
customers are able to seek advise of the bank staff, remove their all doubts,
get their all clarifications about banking operations.
The branch is a channel that can boost the image of the entire bank by
developing personal relations with customers and enhancing the customer
relationship management of the bank.
THE EXTENSION COUNTER
It is a part of Branch Banking. Whenever any Branch deals with some huge
Business House, A big Institution or Organization may be Government or Private it
has to perform banking transactions in Bulk. In addition to keeping the accounts of
such big houses, branch has to provide banking services to the staff of these
organizations which may run in thousands in number. Other ancillary services are
also required to be provided by the branch.
In case such organizations are not located very near to the branch the dealing
branch opens a counter in the premises of such organization to facilitate the easy
access to banking requirements and deploys some staff on such Extension
Counters.
2. MOBILE BANKING
In the era of stiff competition every bank want to reach to maximum people to
enhance their customer base. In this process some of the banks have started
Mobile banking services. A mobile van is equipped with necessary equipment’s
and a few staff members are assigned the duty on such vans.
These vans roam about the local area in order to provide door to door service to
its customers. But in such a system very limited banking services are provided.
The main services include receipt and payment of cash only. Some ancillary
services like balance enquiry, cheque collection are also provided.
3. ATM CHANNEL OF BANKING
In simple words The ATM is known as Automated Teller Machine. Before the
introduction of ATM in 80’s the people were familiar with one teller only. A human
being sitting behind the cash counter and making cash payments or receiving cash
from customers. For cash transactions one was required to go to the teller physically
and that too within the working hours of the bank. The invention of the ATM has
changed the entire scenario.
The ATM has provided customers an option to access the banking services beyond
the regular banking hours. ATM is a machine for receiving and dispensing cash
round the clock. In its initial stage it was able to dispense cash only without able to
perform any other function.
4 . M OB I L E B A NK I NG O R P H O NE B A NK I NG ,
T E L E - B A NK I NG
It is matter of surprise that many people are using mobile or phone banking without
knowing that restricted services are being provided to them. You deposit some
amount in cash or through cheques a SMS shall flash on your mobile informing that
such and such amount has been credited in your account. Likewise the moment any
withdrawal is made from your account a similar message shall be sent on your
mobile.
On the other part customers can approach to their banks and request for using the
Phone banking or tele-banking. The bank shall enable its customers with their
computerized system of IVR. This IVR technology is known as Interactive Voice
Response which automates interactions with telephone callers.
The banks computers are connected with telephone (IVR is phone
technology) and the telephone is linked with the modem. The customers are
identified by a code word/keyword (in case of ATM it is PIN) after due
identification of the callers a suitable reply or solution is sent on phone. With
the help of phone banking the customers may get reply of their enquiries or
services without going to bank.
Services provided through Phone banking are limited like:
• Asking for account balance,
• Status of a cheque deposited for collection,
• Request for cheque book or statement of account,
• Record stop payments, and
• Information on bank products.
5. PC BANKING, SELF SERVICE BANKING
Initially the customers were able to perform some routine banking functions at
home For availing home banking services telephone or cable connections were
required and transactions were performed with the help of a terminal, keyboard
and a monitor (TV or PC).
With the help of this facility customers were able to access to bank services like
inquiry of account balance, moving funds between accounts, payment of bills and
buy/sell investments or securities. All this was done by the customers themselves
on their own system while sitting home, office, or work place.
6. INTERNET BANKING, ONLINE
BANKING, E-BANKING
In India now most of the banks have their own websites for the purpose of
offering banking services on the internet. The Reserve Bank of India has also
issued guidelines for internet banking which all the banks are required to
follow. The multinational and private sector banks have been successful in
setting up internet banking but some Public Sector banks had been lagging
behind because of their inherent difficulties.

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MODULE -3

• Supply chain finance is a set of tech-based business and financing

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