Since a banking service cannot be seen or touched before purchase, Physical Evidence helps reduce the perceived risk and builds trust in the customer's mind.

In Omni-channel, a customer can start a loan application on a mobile app and finish it at a branch without re-entering data. In Multi-channel, the branch might not know what happened on the app.

Operational CRM handles front-end interaction. Analytical CRM works in the background to analyze data for segmentation and targeted marketing.

BCSBI (now dissolved, but historically relevant for the code) issued voluntary codes setting minimum standards of banking practices for member banks to follow.

Demographic uses age/income. Behavioral uses usage rates/loyalty. Psychographic dives deeper into the psychological attributes and lifestyle choices of the customer.

Hyper-personalization moves beyond segment-based marketing to individual-based marketing, using real-time data (e.g., offering a travel loan the moment a customer books a flight ticket).

While the WLA machine is owned by a non-bank entity (WLAO), the cash loaded into it is provided by a Sponsor Bank, as non-banks cannot hold currency chests.

Profits usually peak in the late Growth or early Maturity stage. In the Growth stage, sales rise rapidly, and costs per unit drop (economies of scale). In Maturity, competition squeezes margins.

The Internal Grievance Redressal mechanism of the bank is given 30 days to resolve the issue. If rejected or unresolved after 30 days, the customer can escalate to the Ombudsman.

RBI permits cash withdrawal at POS terminals (up to ?2000 per day in Tier 3-6 centres and ?1000 in Tier 1-2 centres) to improve cash accessibility.

Up-selling involves persuading a customer to buy a more expensive, upgraded, or premium version of the chosen item. The other options are examples of Cross-selling.

Managed by NPCI, IMPS enables 24x7 instant money transfer.

RBI mandates automatic reversal within 5 days. Failure attracts a penalty of ?100 per day beyond T+5, payable to the customer without demand.

A Data Warehouse integrates data from various sources (loans, deposits, cards) to provide a unified view of the customer, which is the foundation of Analytical CRM.

Positive brand equity means customers are willing to pay more or choose the brand over competitors because of trust and recognition.

BCs act as "extended arms" of the bank to provide financial inclusion services (deposits, withdrawals) in remote areas where physical branches are not viable.

Responsiveness measures how quickly and willingly employees respond to customer needs. Delays or indifference negatively impact this dimension.

APIs allow third-party providers (like Fintech apps) to access bank data securely (with consent) to offer integrated financial services.

Once the customer reports the incident, any subsequent loss is borne by the bank. However, the loss incurred *before* reporting is the customer's liability due to their negligence.

Advertising is a non-personal, paid form of communication used to reach a large audience to build brand awareness.

Brown Label ATMs carry the logo of the Sponsor Bank, which handles cash and network connectivity, even though the machine is leased/owned by a third party.

CRM aims to increase Wallet Share. If a customer has ?100 savings and keeps ?80 with Bank A, Bank A has an 80% wallet share.

This policy ensures transparency and standardized compensation for customers when the bank is at fault.

This strategy rewards loyal, high-value customers, encouraging them to consolidate more business with the bank.

Immutability is achieved through cryptographic hashing. Changing one block would require changing all subsequent blocks, which is computationally impossible in a decentralized network.

By fraudulently obtaining a duplicate SIM card, the attacker intercepts the OTPs sent by the bank, bypassing the second factor of authentication.

Strengths and Weaknesses are Internal. Opportunities (e.g., new markets) and Threats (e.g., new competitors, regulations) are External environmental factors.

Before any analysis or software can work, the bank must ensure it has accurate, consolidated customer data. Garbage In, Garbage Out applies.

To ensure financial inclusion for vulnerable groups, RBI mandates doorstep services (cash pickup/delivery, KYC, Life Certificate) for seniors over 70 and the differently abled.

Product Depth refers to the variety of variants offered within a specific product line (Deposits). Width would mean offering Loans, Insurance, Cards, etc.

The Core is the credit facility. Basic is the plastic card. Expected is acceptance at shops. Augmented is the value-add (Lounge access) that exceeds expectations and differentiates the product.

Standard CDMs only accept cash. CRMs "recycle" the cash—validating deposited notes and using them to dispense cash for withdrawals, reducing the frequency of CIT (Cash-in-Transit) replenishment trips.

Analytical CRM uses data mining and predictive modeling on historical data to identify patterns indicating dissatisfaction or intention to leave (Churn), allowing the bank to take preemptive retention measures.

As per RBI guidelines on limiting liability, if the customer reports the unauthorized transaction within 3 working days of receiving the communication from the bank, the customer has **Zero Liability**, regardless of whether the fault lies with the bank or a third party.

This targets the customer's internal values, beliefs, and lifestyle choices regarding sustainability, which is a classic Psychographic variable.

Account Aggregators are RBI-regulated NBFCs that enable individuals to share their financial data across institutions digitally and securely, with explicit consent.

To promote digital transactions, the limit for IMPS was increased from ?2 Lakh to **?5 Lakh per transaction.

Unethical cross-selling (misselling) erodes trust. Ethical selling focuses on fulfilling a genuine customer need, not just meeting a sales target.

Confidentiality is a core banker-customer duty. Exceptions include legal compulsion (Income Tax, Court), public duty, or customer consent (Credit Bureaus).

Brand Associations are the mental connections customers make (e.g., "SBI is safe", "HDFC is fast"). Positive associations build strong Brand Equity.

RBI limits cash withdrawal at POS to ?1,000 per day in Tier I and II centers, and ?2,000 per day in Tier III to VI centers.

Since not all customers are equally profitable, banks use tiered service levels (Gold, Platinum, Priority) to focus resources on retaining high-value customers (Pareto Principle).

To ease the burden on senior citizens, banks must allow submission at any branch or digitally via Jeevan Pramaan (biometric). Doorstep banking is also an option.

Push strategy "pushes" the product through the distribution channel to the customer. Pull strategy (Advertising) motivates the customer to "pull" (seek) the product.

ML allows Chatbots to "learn" from past interactions. The more they converse with humans, the better they become at understanding intent and providing accurate answers.

This model optimizes costs. The Hub handles complex tasks (Foreign Exchange, Loan Processing) while Spokes focus on basic sales and service, reducing the need for experts at every location.

Churn (Attrition) is the opposite of retention. High churn indicates dissatisfaction. Banks use predictive analytics to identify "at-risk" customers and retain them.

The IO acts as an independent apex level authority within the bank. Before the bank finally rejects a customer's complaint, it must be reviewed by the IO to ensure fairness.

At the top of the pyramid, wealthy individuals look beyond accumulation to meaning, legacy, and personal passions (Self-Actualization).

Blockchain's distributed ledger ensures transparency and immutability, making it ideal for tracking trade documents (LCs) and sharing secure KYC data between institutions without duplication.

If a user logs in from a new device or country (High Risk), the system adaptively asks for extra proof (MFA). For routine logins (Low Risk), it might allow just a password. This balances security and convenience.

CLV helps banks decide how much to spend on acquiring and retaining specific customers. High CLV customers warrant higher investment.

The four exceptions established are: 1. Under Law, 2. Public Duty, 3. Bank's Own Interest (e.g., suing customer), 4. Customer's Consent. Casual requests are strictly denied due to confidentiality.

Gap 1 is the "Knowledge Gap". It occurs when management does not correctly understand what customers actually want.

The 4 Vs are Volume (Scale), Velocity (Speed), Variety (Forms), and Veracity (Uncertainty/Quality). Poor veracity (bad data) leads to bad decisions.

Migration of low-value, high-volume transactions (like updating passbooks) to automated kiosks frees up branch staff for high-value sales and advisory roles.

Up-selling involves encouraging the customer to purchase a higher-end product (upgrade) than the one they currently have or are considering. Cross-selling would be selling a different product (like a loan).

Zero liability applies if the bank is at fault OR if there is a system breach elsewhere reported within 3 days. If the customer is negligent (shares OTP), they bear the loss until reporting.

The core product is the fundamental benefit the customer is buying. For savings, it is the ability to keep money safe and access it when needed. The passbook/cheque book are Tangible products.

SaaS delivers applications over the internet. Banks use SaaS for non-core applications to reduce IT maintenance costs and ensure easy scalability.

Since services are intangible, customers rely on physical cues (Physical Evidence) like the look of the branch, brochures, and cards to assess quality and build trust.

NUUP (National Unified USSD Platform) uses USSD technology to allow basic banking services (balance check, fund transfer) on feature phones (non-smartphones) without internet data.

CBS relies on a Data Center (DC) where all customer and transaction data is hosted centrally. Branches act as access points, updating this central database in real-time ("Anywhere Banking").

BCSBI (now dissolved, but historically relevant for the code) issued voluntary codes setting minimum standards of banking practices for member banks to follow regarding transparency and fairness.

Effective CRM starts with gathering data, cleaning and analyzing it to create segments, and then executing targeted campaigns based on those insights.

Demographic uses age/income. Behavioral uses usage rates/loyalty. Psychographic dives deeper into the psychological attributes and lifestyle choices of the customer.

While the WLA machine is owned by a non-bank entity (WLAO), the cash loaded into it is provided by a Sponsor Bank, as non-banks cannot hold currency chests.

Profits usually peak in the late Growth or early Maturity stage. In the Growth stage, sales rise rapidly, and costs per unit drop (economies of scale). In Maturity, competition squeezes margins.

The Internal Grievance Redressal mechanism of the bank is given 30 days to resolve the issue. If rejected or unresolved after 30 days, the customer can escalate to the Ombudsman.

RBI permits cash withdrawal at POS terminals (up to ?2000 per day in Tier 3-6 centres and ?1000 in Tier 1-2 centres) to improve cash accessibility.

Up-selling involves persuading a customer to buy a more expensive, upgraded, or premium version of the chosen item. The other options are examples of Cross-selling.

Managed by NPCI, IMPS enables 24x7 instant money transfer using Mobile Number and MMID or Account Number and IFSC.

RBI mandates automatic reversal within 5 days. Failure attracts a penalty of ?100 per day beyond T+5, payable to the customer without demand.

A Data Warehouse integrates data from various sources (loans, deposits, cards) to provide a unified view of the customer, which is the foundation of Analytical CRM.

Positive brand equity means customers are willing to pay more or choose the brand over competitors because of trust and recognition.

BCs act as "extended arms" of the bank to provide financial inclusion services (deposits, withdrawals) in remote areas where physical branches are not viable.

Responsiveness measures how quickly and willingly employees respond to customer needs. Delays or indifference negatively impact this dimension.

APIs allow third-party providers (like Fintech apps) to access bank data securely (with consent) to offer integrated financial services.

Once the customer reports the incident, any subsequent loss is borne by the bank. However, the loss incurred *before* reporting is the customer's liability due to their negligence.

Advertising is a non-personal, paid form of communication used to reach a large audience to build brand awareness.

Brown Label ATMs carry the logo of the Sponsor Bank, which handles cash and network connectivity, even though the machine is leased/owned by a third party.

CRM aims to increase Wallet Share. If a customer has ?100 savings and keeps ?80 with Bank A, Bank A has an 80% wallet share.

This policy ensures transparency and standardized compensation for customers when the bank is at fault.

This strategy rewards loyal, high-value customers, encouraging them to consolidate more business with the bank.

Immutability is achieved through cryptographic hashing. Changing one block would require changing all subsequent blocks, which is computationally impossible in a decentralized network.

By fraudulently obtaining a duplicate SIM card, the attacker intercepts the OTPs sent by the bank, bypassing the second factor of authentication.

Strengths and Weaknesses are Internal. Opportunities (e.g., new markets) and Threats (e.g., new competitors, regulations) are External environmental factors.

Before any analysis or software can work, the bank must ensure it has accurate, consolidated customer data. Garbage In, Garbage Out applies.

To ensure financial inclusion for vulnerable groups, RBI mandates doorstep services (cash pickup/delivery, KYC, Life Certificate) for seniors over 70 and the differently abled.

Product Depth refers to the variety of variants offered within a specific product line (Deposits). Width would mean offering Loans, Insurance, Cards, etc.

PR aims to manage the spread of information between the bank and the public to build trust and reputation (e.g., press releases, community service), often perceived as more credible than paid ads.

Device/SIM binding ensures that the banking app works only on the device containing the registered mobile number's SIM card, preventing fraudsters from using stolen credentials on their own phones.

Operational CRM includes tools for Sales Force Automation (tracking leads, sales pipeline), Service Automation, and Marketing Automation to streamline daily business processes.

For a delay of 4-7 days, the customer's liability is capped (e.g., ?5,000 for Basic Savings accounts, ?10,000 for other SB accounts, up to ?25,000 for Credit Cards with limit > ?5 Lakh). Beyond 7 days, it is as per board-approved policy.

In banking (e.g., cash withdrawal at a counter), the service is produced by the teller and consumed by the customer at the same moment. They cannot be separated.

The limit for fund transfer using USSD (*99#) is capped at ?5,000 per transaction to minimize risk on feature phones.

This technique analyzes purchase patterns (e.g., "Customers who bought Home Loans also bought Insurance") to design effective product bundles and cross-sell offers.

For delays in collection of local cheques beyond the timeline, banks typically pay interest at the Savings Bank rate for the period of delay. (For outstation cheques, higher rates apply for longer delays).

Banks may offer loans at lower interest rates or waive processing fees (Penetration Pricing) to attract new customers and gain market share in a competitive segment.

"On-Us" transactions (Issuer = Acquirer) are processed within the bank's own switch and are usually free/unlimited. "Off-Us" transactions go through the NFS switch and may attract charges.

ML algorithms enable chatbots to learn from historical interactions, identify patterns in customer queries, and refine their answers automatically.

Internal Marketing views employees as internal customers. It ensures they are aligned with the bank's vision and skilled enough to deliver the brand promise to external customers.

DMAs act as an extended sales force, reaching out to potential customers for loans/cards, collecting applications, and doing preliminary checks, helping banks expand reach at lower cost.

Retention REDUCES overall marketing costs because acquiring new customers is far more expensive. Retained customers buy more and refer others.

Form 15H is specifically for resident individuals aged 60 years or more to declare that their tax liability is nil, preventing TDS on interest.

Psychographics analyzes the internal drivers of behavior. For example, two people with the same age/income (demographic) might have different risk appetites (psychographic) - one buys FDs, the other Crypto.

To improve cash access in smaller towns/rural areas (Tier III-VI), RBI allows a higher limit of ?2,000 per day per card for cash withdrawal at POS terminals. (In Tier I/II, it is ?1,000).

NBP models use predictive analytics to increase cross-selling success rates by offering the right product at the right time, rather than random selling.

The penalty for delayed reversal of failed transactions (ATM, IMPS, UPI, Cards) is standardized at ?100 per day of delay beyond the prescribed TAT (T+1 for IMPS).

Primary research gathers fresh data for a specific purpose. Secondary research uses existing data (reports, publications). Banks use primary research to test new product concepts.

NEFT operates in half-hourly batches throughout the day, starting from 00:30 hours to 00:00 hours. Total batches = 24 hours * 2 = 48.

This unified view is essential for understanding the customer's total relationship value, identifying cross-sell opportunities, and providing better service.

The Ombudsman does not interfere in the commercial decisions of the bank (like credit sanctioning) unless there is a violation of RBI guidelines or fair practice code.

Bancassurance leverages the bank's extensive branch network ("Place") to distribute insurance products to a captive customer base.

Micro ATMs are portable devices used by BCs in rural areas to facilitate biometric-based cash deposits/withdrawals using AePS.

Collaborative CRM ensures that if a customer complains via email, the call center agent also knows about it, providing a unified interface.

While the service is mandatory for eligible customers, banks are permitted to charge a reasonable fee for the service to cover costs.

Social media amplifies consumer voice. A single complaint can go viral instantly, causing significant reputational damage if not handled quickly.

UPI Mandate (AutoPay) allows users to pre-authorize a transaction that will execute later or recurrently, automating bill payments and investments.

Open Banking fosters innovation by enabling a secure ecosystem where banks share data (with consent) with fintechs, who then create tailored financial management tools and services.