Retail Banking is characterized by multiple products (liabilities, assets, services) catering to a large customer base (mass market) through multiple channels. The ticket size (loan/deposit amount) is typically low compared to corporate banking, making statement III incorrect. The customer base is huge, making statement IV incorrect.

Retail banking involves lending small amounts to a huge number of customers. Thus, the risk is spread out (diversified); the default of a few customers doesn't impact the bank significantly. Corporate banking involves huge loans to few entities, leading to high concentration risk.

Servicing millions of small customers requires extensive infrastructure (branches, ATMs, technology) and manpower. This results in high operational/monitoring costs per unit of money handled compared to wholesale banking.

Mass Affluent customers sit between the Mass Market and HNIs. They have higher income than average and demand value-added services, premium cards, and investment products but don't require bespoke private banking.

Historically, banks served only the wealthy or corporates (Class Banking). Post-nationalization and especially post-1991 reforms with technology, banks now target the general population (Mass Banking) with standardized products.

In banking terms, Loans are Assets (they earn interest) and Deposits are Liabilities (interest is paid). Personal Loan is an asset product for the bank.

Remote channels allow customers to transact without physical interaction or visiting a location. Branch, Extension Counter, and RM visits involve physical presence/interaction.

Assets refer to loans given by the bank. Auto Loan is a classic retail asset product. Current, Term, and Salary accounts are liabilities (deposits).

Liability products are those where the bank owes money to the customer (Deposits). Savings Account is the most fundamental retail liability product. Loans are assets.

Retail involves millions of transactions (High Volume) but the value of each transaction (e.g., ATM withdrawal, Personal Loan) is relatively small (Low Ticket Size).

HNIs require personalized investment advice, tax planning, and estate planning. Private Banking is the specialized division that caters to these complex needs.

AI/ML models can process unstructured data to predict repayment behavior, enabling banks to lend to "New to Credit" customers whom traditional models might reject.

Risk diversification is a key advantage. In corporate banking, a single default (e.g., Kingfisher) can create a massive NPA. In retail, the impact of individual defaults is negligible on the overall portfolio.

India's demographic dividend (young population) and the rise of a consuming middle class with higher disposable income have fueled the demand for housing, vehicles, and personal loans.

Given the volume of retail accounts, ensuring compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) norms requires robust technology and constant vigilance, which is resource-intensive.

This segment focuses on the general population. Profitability comes from economies of scale and cross-selling basic products like savings accounts and debit cards.

Retail loans (Housing, Auto) create demand for goods and services (cement, steel, cars), driving industrial growth and economic development.

The breakdown of joint families into nuclear families creates new demand for housing, household goods, and vehicles, driving the need for retail loans. Coupled with rising income, this presents a massive growth opportunity.

Since retail banking depends on volume, the ability to serve millions of customers quickly, cheaply, and accurately through robust IT systems and channels (ATMs, Mobile) is the most critical success factor.

Retail customers tend to be loyal and don't move money frequently based on small rate changes. This provides a stable and cheap source of funds for the bank (Stable Funding Base).

M&A Advisory is a core Investment Banking/Corporate Banking function dealing with large companies. Retail banking focuses on individual consumers.

While technology is an enabler, the rapid pace of obsolescence requires banks to constantly invest huge sums in upgrading Core Banking, ATMs, and Digital platforms, which is a significant financial strain.

Working Capital limits for large corporates fall under Wholesale/Corporate Banking. Retail banking deals with individuals and small businesses.

"Click and Mortar" refers to the strategy of having both an online presence (Click) and physical branches (Mortar) to serve customers effectively.

Mutual Funds are products created by Asset Management Companies (AMCs), not the bank itself. The bank acts as a distributor/agent.

SCSS involves the customer depositing money with the bank. It is a liability for the bank.

The trend is shifting towards "Phygital" (Physical + Digital) banking, where data and AI are used to offer hyper-personalized products and seamless digital experiences.

Using AI to analyze transaction history and behavior, banks can offer products tailored to the specific immediate needs of an individual customer (e.g., offering a travel loan just when a customer books a flight).