Wondering what is TAT in banking? TAT in banking stands for Turnaround Time, which refers to the duration within which a particular process or service is expected to be completed. In the context of banking in India, TAT is used to measure and monitor the efficiency and responsiveness of various banking operations and customer service activities.
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Here's how TAT is relevant in different banking scenarios:
- Loan Processing:
The time taken by banks to process and approve loan applications submitted by customers. This includes verifying the applicant's eligibility, assessing creditworthiness, and disbursing the sanctioned loan amount.
The time taken to disburse the sanctioned loan amount to the borrower's account after loan approval.
- Account Opening and KYC:
The time taken by banks to open new accounts for customers, including completing the necessary documentation, verifying identity and address proofs, and activating the account.
The time taken to complete Know Your Customer (KYC) verification procedures for new account holders, which may involve physical verification of documents and customer details.
- Fund Transfer and Payments:
The time taken to process and settle fund transfers initiated by customers through NEFT (National Electronic Funds Transfer) or RTGS (Real-Time Gross Settlement) systems. Banks aim to complete fund transfers within specified TAT to ensure timely payments and settlements.
The time taken to process and execute utility bill payments, credit card payments, and other financial transactions initiated by customers through online banking platforms or mobile apps.
- Investment and Wealth Management:
The time taken to process redemption requests for mutual fund investments made by customers. The time taken to provide investment advice, portfolio management services, and financial planning solutions to wealth management clients.
Importance of TAT in Banking
Timely and efficient service delivery contributes to enhanced customer satisfaction and loyalty. Monitoring turnaround time in banking helps them to identify bottlenecks, streamline processes, and improve operational efficiency.
Meeting TAT requirements ensures compliance with regulatory guidelines and standards set by regulatory authorities such as the Reserve Bank of India (RBI). Banks that consistently achieve shorter TAT gain a competitive edge by attracting and retaining customers through superior service quality.
This is all about what is TAT in banking.
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What is TAT in Banking?
Shami
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11 months
2024-05-31T16:20:03+00:00 2024-06-12T10:19:25+00:00Comment
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