University of Management and Technology
Course Outline
Course code…………BN-650………......
Course title… Retail & Consumer Banking Operations
Program
Credit Hours
Duration
Prerequisites
Resource Person
Counseling Timing
(Room#
)
Contact
Chairman/Director signature………………………………….
Dean’s signature……………………………
Course Outline
Date………………………………………….
Page 1
Learning Objective:
The focus of the course shall be as follows:
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Knowledge about Retail banking and its basic operations.
Development of practical insight amalgamated with analytical management
skills on the students of consumer banking.
Since consumer banking is radically on the risk, therefore entrepreneurs
already working in different organization shall stand to gain through it.
Advancement of professional competence in the careers especially related to
the areas of banking and commerce.
Learning Methodology:
The course
The course shall be covered as stipulated in the outline.
Regularity & Punctuality
Regularity & Punctuality will be very strictly observed. All participants have an allowance
of # of absences as per University policy. This includes the leaves approved by your Batch
Adviser. In this regard SBE policy will be strictly applied.
Regarding punctuality, you will be marked present only if you arrive in the class within five
minutes of the scheduled time and will attend whole class. Any absence during the
presentations sessions will result in deduction of 1 point each from the class participants
marks. This means that the class participation marks can go into the negative as well. If
your group is making assignment and you are not there then you will get a zero. If you miss
a Quiz you get zero in that quiz and on late submission of assignment you will lose 1
point/day.
Book Readings & Pre-study System
The learning process is based on independent work with texts, textbook, and cases
supported by lectures and assignments/cases - see schedule.
Class Participation
Positive and constructive class participation will be monitored for each class. Particular
emphasis will be given during the presentation sessions. The manner in which the question
is asked or answered will also be noted. Your behaviour, as business executive will
contribute to the class participation marks.
Course Outline
Page 2
Consultancy
During the semester, consider me as your consultant for this course. However, to avoid
inconvenience setting up of appointment is recommended. But counselling will hours will
be announced in class for your convenience.
Grade Evaluation Criteria
Following is the criteria for the distribution of marks to evaluate final grade in
a semester.
Marks Evaluation
Marks in percentage
Quizzes
10%
Assignments
10%
Mid Term
25%
Attendance & Class Participation
10%
Term Project
05%
Presentations
05%
Final exam
35%
Total
Recommended Text Books:
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Quarterly journals from Institute of Bankers of Pakistan.
SBP’s Latest Prudential Regulations
Handouts
Publications/Journals
Course Outline
Page 3
Calendar of Course contents to be covered during semester
Week
1
Course Contents
Evolution of Banking & Depository Institutions.
 Evolution of banking Institutions
 Types of Banks
State Bank of Pakistan
• History
• Functions
Banking Sector Reforms In Pakistan
1. Privatization of Nationalized Commercial Banks
2. Corporate governance.
3. Capital Strengthening.
4. Improving Asset quality.
5. Liberalization of foreign exchange regime
6. Consumer Financing
7. Mortgage Financing
8. Legal Reforms
9. Prudential Regulations
10. Micro financing
11. SME Financing
12. Taxation
13. Agriculture Credit
14. E-Banking
15. Human Resources
16. Credit Rating
17. Supervision and Regulatory Capacity
18. Payment Systems
2
Reference Chapter(s)
Handouts
Retail banking accounts and relationship types
Banker Customer Relationship
 Nature of relationship
 Rights of customer
 Duties of customer
 Rights of bank
 Duties of bank
Handouts
Type of relationships between a banker and his
customer:
 Debtor and Creditor
 Creditor and Debtor
 Principal and Agent
 Bailer and Baillie
 Mortgagor and Mortgagee
Pledger and Pledgee
Course Outline
Page 4
3
4
Quiz 1
General Requirements for opening an account.
The bank account types and their likely users.
• Business accounts
• Saving accounts
• Deposit accounts
• Special purpose accounts Bank Lending
Retail banking services
Negotiable Instruments
Meaning of Negotiable Instruments
Types of Negotiable Instruments
i. Promissory Note
ii. Bill of Exchange
iii. Cheques
Types of Cheque
a) Open cheque,
b) Crossed cheque.
c) Bearer cheque
d) Order cheque
e) Stale Cheque:f) Mutilated Cheque:g) Post-dated Cheque:-
Handouts
Handouts
iv. Pay Orders
v. Demand Drafts
vi. Demand draft, payment order, postal order,
money order, traveler cheques etc.
Features of Negotiable Instruments
Differences between bill of exchange, promissory notes
and cheques
5
Quiz 2
Clearing House, Payment & Clearing System
 Clearing function with bank
 Clearing House (NIFT)
 RTGS and its working
 PRISM in Pakistan
SWIFT
Course Outline
Handouts
Page 5
6
7
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9
ECIB as per State Bank of Pakistan
SBP’s NIFT Guidlines
Prudential Regulations For Consumer Financing
 SBP regulations
SBP’s Latest
 Minimum requirements for consumer financing
 Operations
Prudential
 Limits on exposure against total consumer
financing
Regulations
 Total financing to be commensurate with the
Income
General reserves against consumer financing.
PERSONAL LOANS & LIFESTYLE/ CONSUMER
DURABLE LOANS
 Eligibility criteria
 Amount of loan / Tenure
 Credit Analysis
 Pricing
 Documentation / Security
 Mode of repayment
 Verification
 Charges
 Customer Services
 Prudential Regulations For Personal Loans
 Collections & Recovery of NPLs
Litigation process for Write-Off loans.
AUTO FINANCE
 Eligibility Criteria
 Equity Requirement / Tenure
 Documentation / Security
 Mode of repayment
 Pricing & Interest Calculation
 Insurances
 Verification / Data Check / CIB Report
 Customer Services / Charges
 Prudential Regulations For Auto Finance
 Classification and Provisioning
 Collection Recovery of NPLs & Repossession
Process
 Litigation process for Write-Off loans.
Assignment / Case Study.
Course Outline
SBP’s Latest
Prudential
Regulations
SBP’s Latest
Prudential
Regulations
Page 6
10
11
Quiz 3
HOME FINANCE
 Eligibility Criteria
 Purpose ( Improvement / Renovation/ Self
construction )
 Property Analysis / Evaluation
 Legal Consultation before disbursement of Loan
 Repayment Process / Insurance
 Prudential Regulations For Home Finance
 Classification and Provisioning
 Collection Recovery of NPLs & Repossession
Process
 Litigation process for Write-Off loans.
SBP’s Latest
CREDIT CARDS
 Eligibility Criteria / Application Analysis
 Documentation
 Verification / Sanction
 Mode of repayment
 Financial Activity / Mark-up Charging
 Customer Services / Charges
 Balance Transfer Facility (BTF)
SBP’s Latest
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Installment Plans (Step By Step Payment Plan)
Utility Bill Payment Facility
Transaction Process Flow
Acquiring Business
Inter Bank Transaction Charges
Prudential Regulations For Credit Cards
Collection & Recovery of NPLs
Litigation process for Write-Off loans.
Quiz 4
 VISA / Master Card Concept (Associations)
 Internet Transactions through Credit Cards
 International Spending
 Security & Safety
 Virtual Cards
 Pre-Paid Cards
 Pay-Roll Cards
 Charge Cards
Course Outline
Prudential
Regulations
Prudential
Regulations
Handouts
Handouts
Page 7
14
General Concepts
 Bank Statement Analysis for Allocation of Loan
 Credit Card Mark-Up Charging
 Policy Deviation / Exceptions
 Hypothecation
Handouts
 Consumer Finance for Prime Customers (Platinum
Cards)
 Involvement of Fraud & Risk Management Unit
(FRMU)
 Plastic Money Security Features.
Case Study on Card Usage In International Market
15
Course Outline
Project & Presentation.
Page 8