BUSINES SERVICES

 

INTRODUCTION :

All of us have seen a petrol pump. Have you ever thought how a petrol pump owner does his business in a village / remote areas in hilly tracks?  How he gets money to purchase large quantities of petrol / diesel ? How he communicates to petrol depots ? How he safe guards himself from various
risks associated with his business?
The answer to all the above questions is in the understanding of a term known as “Business Service”.

Meaning :- Business services mean those services which help in the successful running of a  business. Business cannot be even imagined in the absence of these services. e.g Banking, insurance, transport, warehousing and communication. Nature of Business

Services :- Nature of business  services is elucidated by the following points.

NATURE OF BUSINESS SERVICES :

1. Intangibility : Cannot be seen, touched or smelled. Just can only be felt. yet their benefits can be availed of e.g. Treatment by doctor.


2. Inconsistency : Different customers have different demands & expectation. e.g. Mobile services/Beauty parlour.


3. Inseparability : Production and consumption are performed simultaneously e.g. ATM may replace clerk but presence of customer is a must.


4. Inventory Loss : Services cannot be stored for future use or performed earlier to be consumed at a later date. e.g. underutilized capacity of hotels and airlines during slack demand cannot be stored for future when there will be a peak demand.


5. Involvement : Participation of the customer in the service delivery is a must e.g. A customer can get the service modified according to specific requirement.

Type of Services :

1. Social Services :- Provided voluntarily to achieve certain goals e.g. health care and education services provided by NGOs.


2. Personal Services :- Services which are experienced differently by different customers. e.g. tourism, restaurants etc.


3. Business Services :- Services used by business enterprises for the conduct of their activities. e.g. Banking, Insurance, communication, warehousing adn transportation.

BANKING :

Mean a company accepting deposits of money from public (for lending & investment), repayable on demand and withdrawal by cheque or otherwise.
Meaning : Banking using electronic media i.e. internet with personal computer / laptop / mobile hone

SERVICES OFFERED BY E-BANKING :

1. Electronic fund Transfer System (EFTS)
2. Automated Teller Machine (ATM)
3. Point of Sales (PoS)
4. Credit Cards.

BENIFITS :

1. 24 hours × 7 day services
2. Can operate from any where in the world.
3. Greater security as customer can travel without cash.

Functions of Commercial Bank :

Accepting the Deposits :

Fixed / time deposit
Current / demand deposit Account
Saving deposit Account
Recurring deposit Account
Multiple option deposit Account

Lending Money :

Loans
Cash Credit
Overdraft
Discounting and Purchase of Bill of Exchange

BENIFITS :

1. 24 hours × 7 day services
2. Can operate from any where in the world.
3. Greater security as customer can travel without cash.

TYPE OF BANKS :

Commercial Bank
Central Bank
Cooperative Banks
Specialized Bank

Commercial Bank -

Public sector bank - owned by govt. They are 20 e.g. SBI, PNB, C.B. etc.

Private sector Banks - owned by private promoters HDFC, ICICI etc. emphasize more on profitability

Foreign banks - own & managed by foreign promoters CITI Ban Standard Charted.

2. Co-oprative Bank : - They provide cheap credit to their members, an important source of rural credit i.e. Agriculture financing in India, e.g. Delhi Nagrik Shastri Bank etc.

3. Specialised Bank :- They are foriegn exchange bank industrial banks, development banks, export/import bank etc. These banks provide financial aid to industries, heavy turn over / key projects & foriegn trade e.g. IDBI, SIDBI etc.

4. Central Bank :- The Central Bank of a country in the Apex institution & the monetary authority. It issues currency & controls money supply & credit in the country. It supervises, controls and regulates the activities of all commercial Banks. it also acts as a banker to the govt. Reserve Bank of India is the Central Bank of our country.

 

CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
Email Id : [email protected]