Online Banking Aspects of Prime Bank Limited

Introduction

Origin of the Report:

This report entitled “Various aspects of Online Banking: A Study on Prime Bank Limited” originated from the partial fulfillment of the Organization Change & Development of HRM.

Objectives of the Report:

a. Broad Objectives:

To analyze the various aspects of Online Banking in Prime Bank Limited & identify the different services offered to the customer by Prime Bank Limited.

b. Specific Objectives:

Specific objectives are:

• To analyze the performance of customer services which are provided to the customers as well as their satisfaction with the services of Prime Bank Limited.
• To find out problems of Online Banking in Prime Bank Limited.
• To find out the problems of customer services of Prime Bank Limited.
• To suggest suitable measures to remove the existing problems and improvement of the system of Prime Bank Limited.

Methodology:

The information about the provided services will be collected from the officers related with customer service department. Also the lack of services and satisfaction of customers, related information will be collected from the clients.

Primary Source of Data Collections are:

• Face to face conversation with the bank officers.
• Personal experience gained by visiting different desks.

Secondary Source of Data Collections are:

• Official records of the clients.
• Annual report of Prime Bank Limited.
• Websites.
• Different publications regarding banking functions.
• Different circular sent by Head Office of Prime Bank and Bangladesh Bank.

Limitations:

Like all survey works this report is subjected to a number of limitations:

• Bank secrecy posed a major problem since discloser of some information’s been restricted.
• Lack of information about Online Banking as Prime Bank Limited yet has not under online system in its all branches.
• The officers at the customer services are very much busy with their activities. They are interested to help me but have no time to do that.  This is the main limitation of the study and the customers are also seem to busy.
• Sufficient records, publications, facts & figures are not available. These constrains narrowed the scope of real analysis.

Profile of Prime Bank Limited

Background of Prime Bank Limited:

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.

As a fully licensed commercial bank, a highly professional and dedicated team is managing Prime Bank Ltd. with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.

Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.

The bank has consistently turned over good returns on Assets and Capital. During the year 2006, the bank has posted an operating profit of Tk. 1052 million and its capital funds stood at Tk 4000 million. Out of this, Tk. 3807 million consists of paid up capital by shareholders and Tk. 55458 million represents earnings assets. The bank’s current capital adequacy ratio of 12.43% is in the market and much above the stipulated line of 8%. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.48%.

Prime Bank Ltd., since it’s beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, the strategy is to serve the customers through capacity building across multi delivery channels. The past performance gives an indication of strength. The bank is better placed and poised to take their customers through fast changing times and enable them compete more effectively in the market they operate.

Objective of the Bank:

Prime Bank Limited is designed to provide commercial investment bank services to all type of customers ranging from small entrepreneurs to big business firms. In this regard, it gives emphasize on the priority sector of the economy like industry, housing and self employment. Besides, the bank aims to provide different customer friendly deposit and loan products to fulfill the banking needs of the individual customers.

The Vision & Mission:

To be the most efficient bank in terms of customer services, profitability and technology application.

The Mission:

• Continuous improvement in business policies and procedures.
• Cost reduction through integration of technology at all levels.
• Converting all functions at quick services.

The Strategic Priorities of PBL:

• To have sustained growth, broaden and improve range of products and services.
• On delivery of quality service in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to the customers.

Contact Profile of PBL:

Every year the branches of PBL increased with different growth rate. The growth rate of branches of PBL is exceptionally high in year 2001 that was 400%. In year 2004 the rate was 100%.

Departments of Prime Bank LTD.

Total division and departments of Prime Bank Limited can be classified under three main aspect of banking.

1. Administrative department

2. Operational department

3. Miscellaneous/other department

a) Administrative Department

Under the Administrative Department the following divisions of Prime Bank Limited usually operate.

b) Human Resource Division

Human Resource Division of Prime Bank Limited is one the most important divisions. This division is assigned to the responsibilities of recruitment, posting, transfer, promotion, and development of human resources of the bank.

c) Branch Control and Expansion Division

The duties of this division are to preparing test key arrangement among the branches to maintain inter branch accounts and overall control of the branches.

d) Public Relation Division

Another important division under Administration Department is Public Relation Division. The main activity of this division is to maintain public relation in terms of customer relation through its operating all over the country.

a) Operational Department

Under the operational department the following divisions of Prime Bank Limited conduct their respective works.

b) Credit Division

All activities related the loans and advances of the bank are directed and controlled by the Credit Division. This division deals with different kinds of credit products of the bank. These are

• Commercial Credit: Secured overdraft (SOD), cash credit (Hypo/Pledge), Consumer Credit, Small and Medium Enterprise Credit.
• Indusial Credit
• Lease Finance
• Hire Purchase
• Real State Credit etc.

c) Investment Division

Prime Bank Limited has started its operation with an objective, exceptional to other commercial banks, to take part in the Capital Market and Money Market in the country. To achieve this objective bank has established a separate division named “Investment Division”. The main activity of this division is to maintain proper investment and monitoring of those investments.

a) Miscellaneous/Other Departments

There are some other important divisions performing their respective works for the success of Prime Bank Limited which are as follows:

Others:

(b) Research and Development

(c) Marketing Division

(d) Training Division

Product & Services of Prime Bank Ltd.

Deposit Scheme:

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self-employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

 PBL has formulated the following Savings Schemes:

•  Contributory Savings Scheme
•   Lakhopoti Deposit Scheme
•   Special Deposit Scheme
•   Fixed Deposit Scheme
•   Monthly Benefit Deposit Scheme
•   Double Benefit Deposit Scheme
•   Education Savings Scheme
•   HouseBuilding Deposit Scheme
•   Prime Millionaire Scheme
•   Current / Savings Account Form

General Banking Instruments:

There are different types of instruments by which different services are provided to the customers. These instruments are used to do the task smoothly and in a very efficient way.

Cheque Book:

According to section 60f negotiable instruments act, 1881, a cheque is “A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”. To facilitate withdrawals and payments to third parties by the customer, PBL provides a chequebook to the customer chequebook contains 10 leaves for savings account while for current account is 10 to 50 leaves. A chequebook issuing register is maintained in this regard. This register contains the chequebook number, leaf number, issuing date. After giving these entries to this register, information is sent to the computer department for taking the necessary steps to pass the Cheques during withdrawl.

Pay order:

A pay order is a written order, issued by a bank, to pay a certain sum of money to a specified person or a bank. It may be said to be a banker cheque as a bank drawn upon and payable issues it by itself.

A pay order is issued and paid by the same branch of a bank and such, the drawer and the drawee are the same. The person or the organization in whose favor it is issued is known as payee or the beneficiary. It is sometimes sold to the individual on payment of value to may or may not be a customer and is called the purchaser.

Pay Slip:

A pay slip is written authorization for making payment-specified person or firm payable by issuing branch, for a discharge liability of the bank. As pay slip is originated made payable by the bank in a receipt form there is no need for any application for its issue. A pay slip is issued to effect payments on account of bills payable for goods and services purchased or availed by it. For example, bank is required to make payment of bills for the purchase of furniture & fixture, for printing & stationary and for any other works done on its behalf by the other party on agreement with the bank.

Inward Remittances:

Banks have a wide network of branches all over the country and offer various types of remittance facilities to the public. The only other agency, which provides such facilities, in a limited way, is the post office. The remittance of funds by banks is made through different methods. They are

1. Demand drafts
2. Mail transfers
3. Telegraphic transfer

Demand drafts:

Demand draft is an order to pay money, drawn by one branch of a bank for a sum of money payable to order on demand. A draft cannot be done payable to bearer. Customers may purchases draft or non-customers of the bank. The purchaser of the draft must fill in the relative application form with his name, amount, and name of the payee, the amount and the office in which it is drawn. In order to sure safety, the purchaser is advised to cross the draft and the bank gives a test number. Having issued the draft the issuing officer would send the drawee branch, an advice containing the particulars of the draft.

Mail Transfer:

Mail transfer is an advice regarding remittance of funds sends by one branch of the bank to another branch of the same bank, at the written request of the application. The mail transfer contains the name and address of the remitter. It is a nonnegotiable instrument and generally is not handed over to the customer rather sent through post office to the concerned branch for credit to the respective account. In some cases, full address of the beneficiary required to be maintained by the applicant. Such M.T. is an advance and treated as a credit voucher of the paying branch, no separate advice is issued by the issuing branch. On receipt of the M.T. payment is made by debit to issuing branch through SB account.

Telegraphic Transfer: 

Telegraphic transfer may be affected at the written request of any person and against value received from him. A written application on the bank’s prescribed form duly signed by the purchaser should be obtained. If the application for issue of telegraphic transfer contains instruction to debit the account of the purchaser, his or her signature should be verified. It is however, preferable to obtain a confirmation cheque from the customer.

The application form is in variably checked on the following points:

• There should be a branch of Prime Bank Limited in the place on which telegraphic transfer will be issued and the said branch has test arrangement with the issuing branch.
• Full name of the payee and his or her account no. In case instructions are to credit his or her test arrangement with the issuing branch.

• The amount of T.T. commission and telegram charges should be received from the purchaser. The total amount may be paid in cash or tendered by a cheque if he or she is a customer of the branch. Sometimes, the customer may also desire to pay the amount of T.T. by cheque and commission and telegraph charges by cash.
• In case of amount tendered by cheque, the drawer on the cheque and the purchaser of the T.T. should be the same person, viz.; the signature of the cheque and on the application should tally. Such cheque should be in favor of Prime Bank Limited.
• Now, a cost memo for the T.T. is also to be prepared by the officer under his signature, which contains the amount of T.T. commission & telegram charges and is delivered to the purchase.
• Now the officer concerned as to the amount, name of the beneficiary has correctly prepared the message, instructions regarding mode of payment and place of payment.
• The concern officers should correctly prepare the test.
• T.T. over telephone may be transmitted on account of valued clients of the bank.

Online Banking Operation:

The bank has set up a wide area network across the country to provide online branch banking facility to its valued clients. Under the scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system a client will to do the following type of transaction:

• Cash withdrawal from his or her account at any branch of the bank irrespective location.
• Cash deposits in others account at any of the bank irrespective of location.
• Cash deposits in his or her account at any branch of the bank irrespective of location.
• Transfer of money from his or her account with any branch of the bank.
• Any amount can be deposited or transferred under Prime line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

Analysis of online banking technology of Prime bank limited

The vision of Prime Bank Ltd. is to be the most efficient Bank in terms of service, profitability and technology application. On going researches to innovate products and fine-tune the existing products will lead to advantageous position. MasterCard credit cards business and newly introduced ONLINE banking has opened up new possibilities not only for improved customer service but several windows for profit generation. Installation of SWIFT and integration of Treasury functions in both local money market and international foreign exchange market are expected to yield better growth in volume and earnings.

While banking is undergoing changes to accommodate increasing needs of customers, technology is considered as a key element for achieving competency based on reliability. PBL is working to further improve its computer system in order to provide clients with new IT products and services such as ATM, ONLINE BANKING and POINT OF SALES transactions. From PBL’s perspective, Technology will help Prime Bank Ltd. to operate more efficiently and improve its productivity. Therefore, investment in technology infrastructure receives highest priority. While technology takes care of much of the routine functions, employees will have more time to spend with their customers providing greater range of advice and services.

On-line Banking:

The bank has set up Wide Area Network (WAN) across the country within its all branches to provide on-line branch banking facility to tits valued customers. The service named “PRIMELINE” has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its Web Site to facilitate dissemination of information about the banking services and facilities of Prime Bank Limited all over the world.

Online Branch Banking

The Bank has set up a Wide Area Network (WAN) across the country to provide online branch banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank.

Under this system a client will to be able to do following type of transactions:

• Cash withdrawal from his/her account at any branch of the Bank irrespective of location.
• Cash deposit in his/her account at any branch of the Bank irrespective of location.
• Cash deposit in other’s account at any branch of the Bank irrespective of location.
• Transfer of money from his/her account with any branch of the Bank.

Any amount can be deposited or transferred under Prime Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

Terms & Conditions of Online Branch Banking Service

• Online Branch Banking Service is designed to serve its valued clients.
• Under this system, you shall be able to do the following type of transactions:
• Cash withdrawal from your account at any branch of the Bank.
• Deposit in your account at any Branch of the Bank.
• Transfer of money from your account to any other account with any Branch of the Bank.

Transaction Limit

1. Maximum ceiling of cash withdrawal by self is Tk. 10, 00,000/- (ten lack) only per transaction.
2. Maximum ceiling of cash withdrawal by third party (bearer) per transaction is below Tk…………… only (please mention the limit you wand to place).
3. Cash deposit/transfer by online transaction is unlimited.

Online Transaction Membership Fee

Membership fee of Tk. 50/- per month for the Online Branch Banking Service.

Charges for Online Transaction

• There will be no charge for transaction within the city where the account is domiciled.
• Fee Tk. 50/- will be realized from the customer’s account for each remote transaction (inter-city)  for amount upto Tk. 1,00,000 (one lac).
• Fee at the rate of  0.075% will be realized from the customer’s account for each remote transaction of amount more than Tk. 1,00,000 (one lac).

Exclusion and Exceptions

Prime Bank Limited shall not be responsible or liable to any Online account holders for any loss or damage incurred or suffered as a consequence of:

1. Any malfunction, defect or error in any computer, or other machine or online system of login belonging to or  operated by Prime Bank Limited or otherwise; or
2. Any delay or inability of Prime Bank Limited to perform any of its obligations pursuant to this Agreement because of any mechanical, data processing or telecommunication failure, Act of God, civil disturbance or any event outside of Prime Bank Limited control or as a consequence of any fraud or forgery; or
3. Any undesired fraud and forgery by means of computer hacking or any means that causes for any burden to the account holder.

Conclusiveness of Documents and Certificates

1. Prime Bank Limited shall be entitled to rely upon and to treat any document relating to any online transaction with the signature of the account holder as conclusive evidence of the Online Transaction as therein stated or recorded was authorized and properly made or effected by the online account holder.
2. The Bank will send monthly statement to online account holders. Any error or inaccuracy in any online account statement shall be notified in writing to Prime Bank Limited within 7 days from the date of issue of the statement.

Set off and Consolidation

Prime Bank Limited may at any time and without prior notice or demand combine or consolidate any and all accounts maintained by an online account holder with Prime Bank Limited and or set off or transfer any sum outstanding to the credit in any or all such accounts in or towards the discharge or payment or any or all sums due to Prime Bank Limited from the online account holder on any online account or under this agreement and the right herein conferred shall be exercisable notwithstanding that the use of the online account is not terminated.

Amendments

Prime Bank Limited may at any time amend any of these terms and conditions by  giving notice to the clients and such amendment (s) shall take effect on the date specified in such notice.

Termination of the Contract for Availing Online Banking Facility

The contract may be terminated by either side giving 30 (Thirty) days’ prior notice.

Who can get this service?

The Clients who has account in prime bank or who will open account in prime bank and would be interested to maintain substantial deposits in Savings, Current or STD accounts, will be eligible to get Prime Line Service.

How one can get this service

Intending and eligible clients have to apply in prescribed application form to their branch (where account is maintained) to get the online service from the bank. The client should submit two copies photographs and signature cards along with the application form. To avail the Prime Line service, no charge should be paid for online transaction within a locality where the account is domiciled. But charges should be paid by the customer for inter city online transaction.

When an account will be activated for online

Within 15 days from the date of submission application an account will be activated for online service

Challenges

Today, not only in Bangladesh but also over the world, uses of technology are no longer a fashion. It is eagerly sought in the highly competitive market especially in the financial sectors.

In Bangladesh the challenges for using information technology in banking sector are manifold such as:

• Some users specially the senior level employees in the banks are not equipped to handle basic computer operations. Those executives generally assume that computer related works are outside the scope of general banking tasks and responsibilities of data input lies with the computer operators. They also feel comfortable working manually.
• There is also a section of employees who are computer literate but with time have become too comfortable with whatever system is in place and will resist any kind of change as this will require adapting to new practices ideas and skills.

So, setting up of online banking software dose not comprises only technology challenges but also a lot of human challenges.

Other Information Technology in Banking Operation:

Prime Bank Limited has adopted automation in banking operation from the first day of its business. The main objective of this automation is to provide efficient and prompt services to its valued clients. At present all the branches of the bank are computerized under UNIX operating system to provide best security to the information. Prime Bank Limited is providing comprehensive range of banking services with utmost care and efficiency to its customers. Auto Teller Machine is used to count money properly to save client’s valuable time as well. The customer can draw money/cash from their account within a minute.

Technology is changing very fast and so is the demand for services in the banking sector. The services are now technology based and the bank cannot remain behind the stream in this respect. The bank has already selected TEMENOS T24 of Temenos Holdings, NV Netherlands Antilles as the world class Core Banking Solution (CBS). It is functionally rich thin client scalable integrated modular systems. It is one of the major technological initiatives in the IT infrastructure development.

The bank is also investigating computing and safety hardware to support such software development. Quite substantial investment has been earmarked to improve communication network across the bank.

SWIFT Service:

Prime Bank Limited is one of the first few Bangladeshi Banks who have become member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication) in 1999.  SWIFT is members owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.

Master Card

Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card which created a new dimension in its customer service and consumer financing.

The Special feature of the Prime Bank Master Card is that its bears the card holder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local & International. Locall cards can be used in Bangladesh only.

Followings are the main feature of MasterCard Credit –

• Prime Bank Ensure High Level of Security by inserting your Photograph on the Card.
• 20 to 50 days credit form the date of transaction. When you receive your monthly statement, you can either choose to pay in full or just minimum due amount shown on the statement. No interest is charged if you pay in full within payment due date.
• 24 hours a day, 365 days worldwide service.
• No joining/administrative fees.
• Waiver of annual fees for International Card: If you accumulate 20,000 Prime Bank Bonus Point for your Gold Card or, 10,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( $ 1 purchase: 1 Bonus).
• Waiver of annual fee for Local Card:  If you accumulate 10,000 Prime Bank Bonus Point for your Gold Card or 8,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( Tk. 50/- purchase : 1 Bonus point).
• The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-Bangkok-Dhaka. (Business Class).
• Cash advance facilities.
• 1, 39, 00,000 locations accept MasterCard worldwide.

Facilities Available with the Card

1. Making payments to Merchants against purchase of all goods and services by the Cardholder form Merchant(s); and
2. Availing Cash Advances:

1. From any of PBL Branches or any member of MasterCard of any Merchant authorized to make Cash Advances; as may be agreed upon by PBL or

2. By the use of the Card on any ATM of PBL or of MasterCard. Subject to these terms and conditions and in compliance with such requirements, limitations and procedures as may be imposed by PBL, any Merchant or MasterCard from time to time.

Credit Limit

PBL may sanction any credit limit, i.e. the maximum of credit available to the Cardholder which can be accessed at any one time, for the facilities under Condition 2 hereof and may terminate or modify or vary such facilities or credit limit without notice. Unless the credit limit is imposed in relation to each Card Account, the imposed credit limit is the limit applicable to the aggregate of the balances due to PBL on all Card Accounts of the Principal Cardholder and all Supplementary Cardholders the limit imposed for Cash Advances shall be part of the credit limit imposed. Notwithstanding, any credit limit that may be sanctioned by PBL in its absolute discretion authorize and allow any Card Transaction even though the credit limit would be or has been exceeded or refuse to make or approve any Cash Advance or authorize or approve any Card Transaction notwithstanding that the credit limit is not exceeded. The credit limit shall be notified in writing to the Cardholder. The available credit is unused balance available to the Cardholder at any point of time. The available credit shown on Card Account Statement shall depict the amount available to the Cardholder as on the date of statement.

Loss of Card or Disclosure of Pin

1. The Cardholder shall not disclose or cause to be disclosed to any persons the PIN assigned to the Card Immediately upon learning that the Card is lost or stolen or the PIN is disclosed, the Cardholder shall report it to PBL followed by written confirmation containing cardholder’s signature on the said loss. The cardholder shall at the request of  PBL furnish PBL with a statutory declaration in such a form as PBL may require and F.I.R./Police report and/or any other information as PBL may require. If the lost or stolen card is found or recovered, the cardholder shall not make use of the card but shall immediately cut it into halves and return the same to PBL.
2. Notwithstanding the loss on the theft of any Card or disclosure of the PIN in respect of any Card, PBL may charge and debit the Card Account the amount of each and every Card Transaction made or effective before written confirmation by the Cardholder of such loss, theft or disclosure is received by PBL. Replacement of Card may be made to the Cardholder on payment of required charges in this regard.

Charges to Card Account

PBL may charge and debit the Card Account the amount of each and every Card Transaction made or effected, whether by the Cardholder or any other person with or without the Cardholder’s knowledge or authority notwithstanding that the balance due to PBL on the Card Account may as a consequence of any such charge or debit exceeding any credit limit that may be sanctioned. For existing Fees and Service Charges, one may contact Card Division at PBL’s Head Office or any Branch of PBL.

Cash Advance Fee

In respect of each Cash Advance made through the use of any Card and or the PIN, PBL shall charge and debit the Card Account a fee as decided from time to time.

Payment

1. In respect of each Card Account Statement, the following stated therein shall be paid to Card Division at PBL’s Head Office within the Payment Due Date: I) at least the aggregate of the minimum payment(s) specified as such in the Card Account Statement; and ii) the amount, if any, by which the Outstanding Balances stated therein exceeds the credit limit in relation to the Card Account(s) stated therein.
2. If, Outstanding Balance stated in Card account Statement is not paid in full within the Payment Due Date stated therein, PBL may charge and debit the Card Account calculated on a daily basis, subject to a minimum monthly finance charge of 2.50% or such other sum as may be determined from time to time by PBL without notice.
3. On the amount of each and every charge stated in that Card Account Statement as from the date when such charge was incurred or was posted to the Card Account, as PBL may elect, to the billing date stated in that Card Account Statement and ii) On the entire Outstanding Balance from the billing date stated in that Card Account Statement until full payment of the Outstanding Balance is made. A charge in relation to any Card Transaction shall be deemed to have been incurred on the Card Account on the date when that Card Transaction was effected.
4. If any amount required to be paid under Condition 7.1 hereof is not paid in full by the Payment Due Date stated therein, PBL may charge and debit the Card Account a late payment charge at such rate or amount as PBL may from time to time determine without notice.
5. following order:

6. In respect of payment of Cardholder (Card Type-Gold/Silver International) to PBL, charges shall be made by Bankers’ draft payable in US$ or any other settlement mode acceptable to PBL. If PBL decides to accept payment tendered in some other currency, payment will not be credited in the Card Account. Charges incurred in any currency other than US$ will be converted into US$ at rates that will not be less favorable to Cardholder than the rate arrived at by use of an inter bank rate in existence within 24 hours that PBL or any authorized Agent processes the Charge plus 1% of the converted amount. An official rate will be used where required by law. Charges converted by common carriers shall be billed at rates used by such carriers and where submitted to PBL by such carriers in other than US$, shall be converted to US$ in accordance with foregoing procedures PBL may charge the Card Account for cost resulting for converting payments.

Other Charges and Fees

PBL may charge and debit the Card relating to any Card  

1. An annual service fee for the issue or renewal of the Card at such rate as PBL may prescribe from time to time without notice and such fee shall not be refundable in any event.
2. Where any cheque or Bankers’ Draft drawn to the order of PBL by Cardholder ( or pursuant to Cardholder’s authorization ) is not honored for the full amount thereon, PBL may assess a Service Charge for each Cheque so dishonored or returned to reimburse PBL for the cost and expenses of collection.
3. An administrative fee of such amount as PBL prescribe from time to time without notice for the replacement of the card or for the provision of any records, statements, sales drafts, credit vouchers or other documents relating to the use of the Card or Card Account and copies thereof at the request of any Cardholder.
4. A charge for each travel airline or hotel reservation made through the use of the Card which is subsequently cancelled or not taken up and such charge shall be at the rate prescribed by the Merchant with or through whom the reservation was made or at such rate as prescribed from time to time without notice; and

Where by any arrangement executed between any Cardholder and financial institution, any payment is to be made to PBL for the credit of any Card Account, whether at regular intervals or otherwise, a fee of such amount as prescribed from time to time without notice for each occasion when any payment to PBL is not effected at the time when such payment should have been effected in accordance with such arrangement.

Findings

To doing this report I some various aspects of Prime Bank Ltd.These are following below:

1.   PBL is not a centrally online bank. In today’s technological development it is a great problem for a bank for its development

2. Cheques, deposit slips are not to be written properly.

3. Some customers are not interested or not able to write D.D., T.T., pay order voucher.

4. Lack of education and of adequate knowledge of general banking peoples in our country are not interested in involving Bank activities.

5. Failure of the electricity created problems to be done properly.

6. The telephone network of our country will have not been expended developed.

7. Not adequate knowledge for the development of a decent Banking culture in the country.

Recommendation &Conclusion

My observations & recommendations:

 I have observed some shortcomings regarding operational and other aspects of their banking. On the basis of my observation I would like to recommend the following recommendations-

1. Bank employees should be more diplomatic for acquiring information of the customers.
2. Government should take necessary measures for development of electricity.
3. Government and Private sector should give adequate knowledge for the development of a decent banking culture in the country.
4. Management information System should immediately be developed.
5.  Call centre can be established for receiving complains and suggestions.
6.  Telephone network should be developed.
7.  Fund transfer, payment of utility bill, balance inquiry etc can be done through internet.
8. PBL can introduce debit card. So, people will feel more comfortable to expend money.
9. Online Banking services should be started centrally as soon as possible.
10.  It is observed that bank executives have little idea about their customer   behavior; attempts should be taken to bring customers orientation in banking management.

Conclusion

The bank has set up Wide Area Network (WAN) across the country within its all branches to provide on-line branch banking facility to tits valued customers. The service named “PRIMELINE” has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its Web Site (www.prime-bank.com) to facilitate dissemination of information about the banking services and facilities of Prime Bank Limited all over the world. But this online banking facilities are not centrally set up. It is a good news for clients and banker of PBL that the online banking system is under process and it has started this facilities very soon.

On the other hand, General Banking development performs the core functions of the bank, operated the day-to-day transactions, all other department is linked with these departments. They take the deposit from the customers and meet their demand for cash honoring their cheques. The department is very rush and the employees here are too upgrade to their duty.

The Prime Bank Ltd. has been put on the top of all the commercial Banks in the Central Banks CAMEL rating (Published in Financial Express on July 2, 2003).

I have also noticed that PBL has a better position for providing General Banking Services comparing with other private sector Banks. There is a word in business sector “A company must diminish from the market when it ceases to serve its customer.” So it is necessary to provide quality of services to make customer satisfied. Thus, an organization can achieve its goal successfully.