AKSHIT SINGHAL

12A
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I would like to express my special thanks of gratitude to my

teacher Mr AMIT GUPTA who gave me the golden opportunity
to do this wonderful project on the topic ‘BANKING’, which
also helped me in doing a lot of Research and i came to know
about so many new things I am really thankful to them.

Secondly i would also like to thank my parents and friends

who helped me a lot in finalizing this project within the limited
time frame.
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CONTENTS PAGE NO.

ACKNOWLEDGEMENT 1

INDEX 2

MEANING 3

TYPES OF ACCOUNTS 4

E-BANKING 9

FEATURES OF E-BANKING 9

ADVANTAGES OF E-BANKING 11

DISADVANTAGES OF E-BANKING 11

MAIN FORMS OF E-BANKING 12

BIBLOGRAPHY 16
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A bank is a financial institution that

accepts deposits from the public and
creates a demand deposit while
simultaneously making loans.
Lending activities can be performed either
directly or indirectly through capital
markets.
Banks are a very important part of the
economy because they provide vital
services for both consumers and
businesses. As financial services
providers, they give you a safe place to
store your cash.
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Savings Account: As the name suggests, the savings

accounts can be opened by an individual or jointly by
two people with an aim to save money.
The main benefit of opening a savings bank account is
that the bank pays you interest for opening this type of
account with them.
Given below are a few features of the Savings account:
There is no limit to the number of times the account
holder can deposit money in this account but there
is a restriction on the number of times money can
be withdrawn from this account.
The rate of interest that an account holder get varies
from 4% to 6% per annum
There is no minimum balance that needs to be
maintained for this type of an account
The savings account holders can get an
ATM/Debit/Rupay Card if they want to
Savings bank account is further divided into two
types: Basic Savings Bank Deposit Account
(BSBDA) and the other one is Basic Saving Bank
Deposit Accounts Small Scheme(BSBDS)
The savings bank account is mostly eligible for
students, pensioners and working professionals
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Current Account: The second type of bank

account is the current bank account. These accounts are
not used for the purpose of savings.
Some important pointers related to the current bank
account have been discussed below:
This type of bank account is mostly opened by
businessmen. Associations, Institutions,
Companies, Religious Institutions and other
business related works, the current account can be
opened
There is no fixed number of times that money can
either be deposited or withdrawn from such
accounts
Internet banking is available
This type of bank account does not have any fixed
maturity
Overdraft facility is available for current bank
accounts
There is no interest that is paid on such accounts

Recurring Deposit Account: Recurring Deposit

account or RD account is a form of account wherein the
account holder needs to deposit a fixed amount every
month until it reaches the fixed maturity date.
The features of the Recurring deposit account have been
discussed below:
Any individual or an Institution can open a
recurring deposit account either separately or
jointly
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Periodic or monthly installments that need to be

added can be as low as Rs.50/- or may vary from
bank to bank
The range of months for which an RD account can
be opened varies from 6 months to 120 months
The interest rate varies depending upon the bank
you choose to open an account with
Nomination facility is also available for RC accounts
Passbook is issued for this type of bank account
Premature withdrawal of the amount is permitted,
provided a sum of amount is deducted as penalty

Fixed Deposit Account: FD or a fixed deposit

account is another type of bank account that can be
opened in any Public or Private sector bank.
The list of important things that need to be known with
respect to the fixed deposit account have been
mentioned below:
It is a one time deposit and one time take away
account. Under this type of account, the account
holder needs to deposit a fixed amount of sum (as
per their wish) for a fixed time period
The amount deposited in FD account can only be
withdrawn all at once and not in installments
Banks pays interest on the fixed deposit account
The rate of interest depends upon the amount you
deposit and for the time duration of the FD
Full repayment of the amount is available before the
maturity date of FD
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DEMAT Account: Shares and securities which

can be held in electronic format constitute the
DEMAT account. The DEMAT account also stands
for Dematerialized Account.
Given below the points that need to be known by a
candidate regarding the DEMAT Account:
There are only two depository organisations
which manage this type of bank account in
India. This includes: National Securities
Depository Limited and Central Depository
Services Limited
This helps facilitate easy trade of bonds and
shares
Helps in conducting stress-free transaction of
shares
KYC is required for opening the DEMAT
Account
Transaction cost is reduced
Traders can work from anywhere
The transfer of securities can be done with
reduced paperwork
NRI Account: To fulfil the bank requirements
of a Non-Residential Indian or a Person of India
Origin, the option of NRI account is available.
The NRI Accounts are further divided into three
types:
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1. NRO ( Non-Resident Ordinary Rupees)

Account – This shall allow you to transfer
your foreign earnings easily to India. It can be
opened in the form of an
FD/RD/Current/Savings account. These
accounts can be opened by an individual or
jointly opened
2. NRE ( Non-Resident External Rupees)
Account – When an Indian citizen moves
abroad to work there, his/her account needs to
be converted into an NRE account. This
account can be jointly opened with an Indian
resident
3. FCNR ( Foreign Currency Non-Resident
) Account – This type of account can be
opened to manage an international currency.
It can only be in the form of Term deposit and
can be withdrawn after the maturity period
only.
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Electronic banking has many names like e
banking, virtual banking, online banking, or
internet banking. It is simply the use of
electronic and telecommunications network for
delivering various banking products and
services. Through e-banking, a customer can
access his account and conduct many
transactions using his computer or mobile
phone.
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Online banking facilities typically have many
features and capabilities in common, but also have
some that are application specific. The common
features fall broadly into several categories:
A bank customer can perform non-
transactional tasks through online banking,
including:
o Viewing account balances

o Viewing recent transactions

o Downloading bank statements, for

example in PDF format

o Viewing images of paid cheques

o Ordering cheque books

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Download periodic account

o

statements
o Downloading applications for M-

banking, E-banking etc.

Bank customers can transact banking tasks
through online banking, including:
o Funds transfers between the

customer's linked accounts

o Paying third parties, including bill

payments (see, e.g., BPAY) and third

party fund transfers (see, e.g., FAST)
o Investment purchase or sale

o Loan applications and transactions,

such as repayments of enrollments

o Credit card applications

o Register utility billers and make bill

payments
Financial institution administration
Management of multiple users having
varying levels of authority
Transaction approval process
Some financial institutions offer special internet
banking services, for example:
Personal financial management support,
such as importing data into personal
accounting software. Some online banking
platforms support account aggregation to
allow the customers to monitor all of their
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accounts in one place whether they are with

their main bank or with other institutions.

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1. The cost of operation per unit of services is
lower for banks.
2. Offers convenience to customers since they are
not required to go to the bank’s facilities.
3. There is a very low incidence of errors.
4. The customer can obtain funds at any time
from ATMs.
5. Credit cards and debit cards allow customers to
get discounts at points of sale.
6. The customer can easily transfer the funds
from one place to another place electronically.

1.The bank and client both have to invest in e

banking facilities.
2.Training in technology is needed for both.
3. Clients may not be able to transact due to defect
in technology.
4. One must pay a membership fee to join
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AUTOMATED TELLER MACHINES (ATM):

An automated teller machine or automatic teller
machine (ATM) is an electronic computerized
telecommunications device that allows a financial
institution's customers to directly use a secure method
of communication to access their bank accounts, order
or make cash withdrawals (or cash advances using a
credit card) and check their account balances without
the need for a human bank teller (or cashier in the UK).
Many ATMs also allow people to deposit cash
or cheques, transfer money between their bank
accounts, top up their mobile phones' pre-paid accounts
or even buy postage stamps.
On most modern ATMs, the customer identifies him or
herself by inserting a plastic card with a magnetic
stripe or a plastic smartcard with a chip, that contains
his or her account number. The customer then verifies
their identity by entering a passcode, often referred to as
a PIN (Personal Identification Number) of four or more
digits. Upon successful entry of the PIN, the customer
may perform a transaction. If the number is entered
incorrectly several times in a row (usually three attempts
per card insertion), some ATMs will attempt retain the
card as a security precaution to prevent an unauthorised
user from discovering the PIN by guesswork. Captured
cards are often destroyed if the ATM owner is not the
card issuing bank, as non-customer's identities cannot
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be reliably confirmed.
The Indian market today has approximately more than
17,000 ATM’s.
TELE BANKING: Undertaking a host of banking related
services including financial transactions from the
convenience of customers chosen place anywhere across
the GLOBE and any time of date and night has now been
made possible by introducing on-line Telebanking
services. By dialing the given Telebanking number
through a landline or a mobile from anywhere, the
customer can access his account and by following the
user-friendly menu, entire banking can be done through
Interactive Voice Response (IVR) system. With sufficient
numbers of hunting lines made available, customer call
will hardly fail. The system is bi-lingual and has
following facilities offered

Automatic balance voice out for the default account.

Balance inquiry and transaction inquiry in all
Inquiry of all term deposit account
Statement of account by Fax, e-mail or ordinary
mail.
Cheque book request
Stop payment which is on-line and instantaneous
Transfer of funds with CBS which is automatic and
instantaneous
Utility Bill Payments
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Renewal of term deposit which is automatic and

instantaneous
Voice out of last five transactions.
DEBIT CARD:
Debit cards are also known as check cards. Debit cards
look like credit cards or ATM (automated teller
machine) cards, but operate like cash or a personal
check. Debit cards are different from credit cards. While
a credit card is a way to "pay later," a debit card is a way
to "pay now." When you use a debit card, your money is
quickly deducted from your checking or savings account.
Debit cards are accepted at many locations, including
grocery stores, retail stores, gasoline stations, and
restaurants. You can use your card anywhere merchants
display your card's brand name or logo. They offer an
alternative to carrying a checkbook or cash.

SMS Banking: SMS banking uses short text

messages sent through the client’s mobile phone. SMS
text messages can be used for both passive and active
operations similarly as with classic telephone banking. A
client can automatically receive information about his
account balance: an SMS is sent to the client
immediately after a certain operation is performed, or
on request: a client sends the bank a correctly formatted
message which processes it and answers the client’s
request by SMS.

Credit Card: A credit card is a thin rectangular

piece of plastic or metal issued by a bank or financial
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services company, that allows cardholders to borrow

funds with which to pay for goods and services with
merchants that accept cards for payment. Credit cards
impose the condition that cardholders pay back the
borrowed money, plus any applicable interest, as well as
any additional agreed-upon charges, either in full by the
billing date or over time.
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I would like to express my special thanks of gratitude to my

teacher Mr AMIT GUPTA who gave me the golden opportunity
to do this wonderful project on the topic ‘PRINCIPLES OF
MANAGEMENT’, which also helped me in doing a lot of
Research and i came to know about so many new things I am
really thankful to them.

Secondly i would also like to thank my parents and friends

who helped me a lot in finalizing this project within the limited
time frame.
2|Page

CONTENTS PAGE NO.

ACKNOWLEDGEMENT 1

INDEX 2

MEANING 3

FEATURES OF MANAGEMENT 4

IMPORTANCE OF PRINCIPLES 7
OF MANAGEMENT

OBJECTIVES OF PRINCIPLES 10
OF MANAGEMENT

HENRI FAYOL PRINCIPLES 11

F.W. TAYLOR PRINCIPLES 15

BIBLOGRAPHY 19
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Management is essential to any organization that

wishes to be efficient and achieve its aims. Without
someone in a position of authority there would be
organizational anarchy with no structure and very
little, if any focus. It has been said that
management has four basic functions – planning,
organizing, leading and controlling. Common
sense dictates that without these principles of
management being in place an organization would
have trouble achieving its aims, or even coming up
with aims in the first place!
Principles of management is a broad and general
guideline for managerial decision making and
behavior of employees towards
organization. The principles of management, then,
are the means by which you actually manage, that
is, get things done through others—individually, in
groups, or in organizations. Formally defined, the
principles of management are the activities that
“plan, organize, and control the operations of the
basic elements of [people], materials, machines,
methods, money and markets, providing direction
and coordination, and giving leadership to human
efforts, so as to achieve the sought objectives of the
enterprise.
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o Universality of Application : The

principles of management are universally
applicable. These principles are applied to all
kinds of organisations around the world from
governments to businesses and non-profit
units regardless of their size or scale. Only the
nature of their application and the method of
application changes whereas the concept
remains. An instance to understand this is the
extent of decentralization in an organisation.
Certain types of businesses may require a high
degree of centralization with the requirement
of concentration of decision making and
certain business may require less scale of
centralization, this varied application of scale
however does not take away the application of
the principle of decentralization.
o General Guidelines : Management
principles are naught but general guidelines or
propositions and are not issue specific. That is,
these guidelines are not ready made for
different business situations and must be used
using diligence and intellect after
understanding the situation. These principles
such as for instance, “Firm before
Department” might help in easy resolution of
business problems. The principle now quoted
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can resolve an inter departmental conflict by

reminding the department heads that, the
department is secondary to the firm.
o Result of Observation and
Experimentation : Management principles
were not formulated overnight and are a result
of continuous observation and
experimentation carried out in a work place by
skilled managers over many years. The
principle of division of labor was formulated
seeing the efficiency it brought about through
specialization and accountability. In a like
manner, all principles are developed over a
course of time.
o Flexibility: The principles of management
are not rigid or concrete. Their application
differs from situation to situation. For
instance, the principle of division of labor may
not be applicable when the work to be done is
indivisible and forms a concrete whole. These
principles are applied by the managers after
giving due regard to the conditions of their
applicability.
o Behavioral in Nature : Most of the
principles of management revolves around the
behavior of humans and aims at influencing
this behavior. These principles tries to bring
about a better understanding of the relation
between humans and material resources in
accomplishing organisational goals.
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o Establishes Cause and Effect

Relationship : This is an important feature
of the principles of management. These
principles are intended to establish a
relationship between what causes something
such as an event or action and the effect of that
event or action on something else. The
importance of establishing this is because
many situations can be so understood on the
basis of the understanding of the effect. For
instance, division of labor causes specialization
which creates the effect of efficiency. So such
an understanding entails that if division of
labor is applied to divisible work efficiency can
be achieved.
o Contingent : The principles of
management are contingent on a applicable
situation prevailing or existing for its
application. The application of these principles
thus change according to changing conditions,
and a new principle may be applied in the
place of an existing one when the conditions
changes.
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o Provides insights : Management

principles play a key role in providing insights
to facilitate efficient decision making. These
principles adds to their knowledge and ability
to deal with various situations and also helps
in handling recurring contemplated problems.
Thus it plays a role in increasing managerial
efficiency.
o Optimal Utilization of Resources
: Resources are the life blood of a business. Its
optimal usage is a sine qua non for the success
of a business. Management principles helps in
ensuring optimal usage by laying down broad
frameworks on how to use these resources and
how not to. This when applied in proper
situations can make for efficient resource
decisions. These principles are also applicable
to resource collection or organisation, so as to
prevent wasteful accumulation of scarce
resources.
o Effective Administration : Administration
of a business is a part and parcel of
management. Principles of Management plays
a key role in administering the business by
helping in the regulation of the human
resources among each other and also by
prescribing norms of relations. These norms
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when followed leads to established beneficial

results. For example, decentralization as a
principle helps in administration by giving
adequate power to many units across the
business to ensure compliance and efficiency.
o Scientific Decisions : The decisions made
by following these principles are scientific
decisions. It is scientific in the sense that it is
made with due regard to logic, reason and
facts and it is rational. Rational decisions
always ensures efficiency within a business
and helps in its success.
o Adapting to Changes : Management
principles as already mentioned are general
guidelines which is to be applied differently in
different situations. Different management
principles are contemplated for different
situations. So when a situation changes, a
different management principle apt to the new
situation thereby allows adapting to changes.
o Fulfilling Social Responsibility
: Management principles plays a vital role in
fulfilling the responsibility the business owes
to the society. Businesses being social entities
have social responsibilities for the benefits
they derive from the society. Management
principles such as ensuring optimal resources
etc makes sure that the business does not
bring harm to the society and also that it
benefits the society.
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o Basis of Management Studies

: Management principles lie at the base of
management education. All the knowledge
imparted to the students of management are
derived from management principles. This
understanding conferred by virtue of being
based on management principles helps in
developing managerial talent.
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o Coordination : Coordination is an
essential function of management. It
allows for ensuring that the work done by
the individual elements of the firm are
combined for the furtherance of the
collective objective of the firm. Most
management principles aims at ensuring
this function and facilitating coordination.
o Ensure Efficiency : All management
principles aims at ensuring the overall
efficiency of the business. Management
principles provide guidelines as to how
tasks are to be completed for increased
efficiency.
o Ensure Compliance to the Plan and
Controlling : Management principles
such as centralization and decentralization
etc ensures that plans required for the
firm are formulated at different levels with
different levels of importance. Then it also
facilitates ensuring compliance to the plan
by controlling through principles such as
Authority and Responsibility, Discipline
etc.
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1. Division of Work-
Henri believed that segregating work in the
workforce amongst the worker will enhance the
quality of the product. Similarly, he also concluded
that the division of work improves the
productivity, efficiency, accuracy and speed of the
workers. This principle is appropriate for both the
managerial as well as a technical work level.
2. Authority and Responsibility-
These are the two key aspects of management.
Authority facilitates the management to work
efficiently, and responsibility makes them
responsible for the work done under their
guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished.
It is the core value for any project or any
management. Good performance and sensible
interrelation make the management job easy and
comprehensive. Employees good behaviour also
helps them smoothly build and progress in their
professional careers.
4. Unity of Command-
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This means an employee should have only one

boss and follow his command. If an employee has
to follow more than one boss, there begins a
conflict of interest and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should
have a unified goal. This means all the person
working in a company should have one goal and
motive which will make the work easier and
achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly
towards the interest of a company rather than
personal interest. Be subordinate to the purposes
of an organization. This refers to the whole chain
of command in a company.
7. Remuneration-
This plays an important role in motivating the
workers of a company. Remuneration can be
monetary or non-monetary. However, it should be
according to an individual’s efforts they have
made.
8. Centralization-
In any company, the management or any authority
responsible for the decision-making process
should be neutral. However, this depends on the
size of an organization. Henri Fayol stressed on the
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point that there should be a balance between the

hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the
hierarchy steps should be from the top to the
lowest. This is necessary so that every employee
knows their immediate senior also they should be
able to contact any, if needed.
10. Order-
A company should maintain a well-defined work
order to have a favourable work culture. The
positive atmosphere in the workplace will boost
more positive productivity.
11. Equity-
All employees should be treated equally and
respectfully. It’s the responsibility of a manager
that no employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in
their job. It is the duty of the management to offer
job security to their employees.
13. Initiative-
The management should support and encourage
the employees to take initiatives in an
organization. It will help them to increase their
interest and make then worth.
14. Esprit de Corps-
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It is the responsibility of the management to

motivate their employees and be supportive of
each other regularly. Developing trust and mutual
understanding will lead to a positive outcome and
work environment.

HENRI FAYOL
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F.W. Taylor or Fredrick Winslow Taylor is

also known as the ‘father of scientific
management’ proved with his practical
theories that a scientific method can be
implemented to management. Taylor gave
much concentration on the supervisory level
of management and performance of managers
and workers at an operational level.
1. Science, not the Rule of
Thumb-
This rule focuses on increasing the efficiency
of an organisation through scientific analysis
of work and not with the ‘Rule of Thumb’
method. Taylor believed that even a small
activity like loading paper sheets into boxcars
can be planned scientifically. This will save
time and also human energy. This decision
should be based on scientific analysis and
cause and effect relationships rather than
‘Rule of Thumb’ where the decision is taken
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according to the manager’s personal

judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the
relationship between the workers and
management should be cordial and complete
harmony. Difference between the two will
never be beneficial to either side.
Management and workers should
acknowledge and understand each other’s
importance. Taylor also suggested the mental
revolution for both management and workers
to achieve total harmony.
3. Mental Revolution-
This technique involves a shift of attitude of
management and workers towards each other.
Both should understand the value of each
other and work with full participation and
cooperation. The aim of both should be to
improve and boost the profits of the
organisation. Mental Revolution demands a
complete change in the outlook of both the
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workers and management; both should have a

sense of togetherness.

4. Scientific Selection ,Training

and development of workers-
The effectiveness of a company also relies on
the abilities and skills of its employees. Thus,
implementing training, learning best practices
and technology, is the scientific approach to
brush up the employee skill. To assure that
the training is given to the right employee, the
right steps should be taken at the time of
selection and recruiting candidates based on a
scientific selection.
5. Standardisation-The tools ,
equipment work methods and working
conditions must be standardised so as to
improve efficiency and quality.
6. Division of work and
responsibility-Management should
concentrate on planning the job of the
workers and workers should concentrate on
performance of work.
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7. Maximum not restricted output-

Conflict between management and workers
arises mainly on division of surplus.Taylor
suggested that the best way to resolve the
conflict is to increase the size of the surplus so
that each side can have a larger
share.Management and workers have a
comman interest in increasing productivity.
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