Professional Documents
Culture Documents
Central Office:
763, Anna Salai, Chennai 600 002
General Manager
FOREWORD
Banking career, like any other professional career is becoming a challenging one. In this
era of rapidly changing economic scenario, the job of a banker, on the one hand, is
demanding in terms of knowledge updation and technological efficiency. On the other
hand, the career opportunities are enormous with rapid branch expansion, exodus of
senior Officials owing to mass retirement and robust business growth.
Hence to keep pace with this trend in the banking field, it is imperative that skill
development and knowledge updation are given due importance. The fourth edition of
Career Guide for IOBians designed by Shri.S.Rajendran Nair, Chief Manager
(Faculty) at Staff College, Chennai is a handbook for enriching your knowledge for a
brighter and successful career path.
The author has made a sincere and dedicated attempt to cover almost all aspects of
Banking and Finance such that the book would serve as a compact reference book.
I am sure that this Career Guide for IOBians will equip all career aspirants
considerably and ensure success in their future endeavours.
With best wishes,
INDIRA PADMINI
General Manager
INDEX
Sl.No
Chapter Name
Page
Number
1. KYC/AML
2. General Banking
12
18
24
5. CASA Schemes
27
6. Term Deposit
32
7. Deposit Schemes
43
49
52
54
60
62
13. BCSBI
65
67
71
73
74
79
81
20. Locker
90
93
ii
Sl.No
Chapter Name
Page
Number
95
101
103
104
106
27. Nomination
107
110
113
114
116
120
122
127
131
144
147
151
155
156
41. Exports
160
42. Imports
167
iii
Sl.No
Chapter Name
Page
Number
43. INCOTERMS
170
174
178
186
192
208
215
225
51. CGTMSE
231
237
239
242
249
256
257
260
59. SGSY
267
60. SJSRY
272
61. PMEGP
275
279
63. ISHUP
281
iv
Sl.No
Chapter Name
Page
Number
64.
Subhagraha
283
65.
Vidyajothi
290
66.
298
67.
Liquirent
305
68.
307
69.
DRI Advances
309
70.
310
71.
316
72.
Takeover of advances
320
73.
322
74.
326
75.
331
76.
Restructuring of advances
332
77.
Credit Monitoring
335
78.
338
79.
SARFAESI Act
339
80.
343
81.
CERSAI
347
82.
Risk Management
350
83.
Valuation of Security
354
Sl.No
Chapter Name
Page
Number
84.
357
85.
Capital Adequacy
358
86.
365
87.
368
88.
Base Rate
369
89.
Security Arrangements
370
90.
ASBA
372
91.
Customer Service
374
92.
Compensation Policy
377
93.
Staff Matters
380
94.
383
95.
386
96.
Miscellaneous matters
390
Disclaimer
This book is designed to provide information on banking topics to promotion
aspirants of Indian Overseas Bank. But the book is also being used as a
reference book in many branches for their routine jobs. This book may serve only
as a general guide and not as the ultimate source of subject information. Every
effort has been made to make the contents of this book as accurate as possible
with latest information. References were made in the Banks Book of instructions,
manuals, circulars, RBI circulars, different Acts etc. to collect details. However,
there may be omissions, typographical and or content errors. The author shall
have no liability or responsibility to any person or entity regarding any loss or
damage incurred, or alleged to have incurred, directly or indirectly, by the
information contained in this book.
KYC/AML Guidelines
(Some points)
Reserve Bank of India has compiled a set of broad guidelines known as Know your
Customer (KYC) norms taking into account the recommendations of;
Financial Action Task Force ( FATF ) on Anti Money Laundering (AML )
measure and on Combating Financing Terrorism ( CFT )
The salient features of the Customer Due Diligence (CDD) for banks
suggested by Basel Committee on Banking Supervision.
A. Objectives
The objective of KYC/ AML/ CFT guidelines is to prevent Banks branches from
being used intentionally or unintentionally by criminal elements for money
laundering or terrorist financing activities.
KYC procedures also enable our branches to know / understand the customers
and their financial dealings better which helps to guard against fraudsters /
criminals besides facilitating assessment of risk perception prudently.
B. Definition of customer
For the purpose of KYC Policy a customer of our Bank is defined as:
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Any person or entity connected with a financial transaction, which can pose
significant reputational or other risks to the bank, say a wire transfer or issue
of high value demand draft as a single transaction
C. Core Components
The Policy on KYC guidelines has been framed on the basis of the following four
core/key elements.
Monitoring of Transactions
Risk Management
The bank shall not open an account or close an existing account where it is
unable to apply Customer Due Diligence (CDD).
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CDD aspects:
Unable to verify identity of the customer.
Unable to obtain documents required as per risk categorisation due to non
co-operation of the customer.
Unable to rely on the data / information furnished by the customer etc.
Undesirble Accounts
Accounts in which the balances often fall below the stipulated minimum
balance
Savings bank accounts in which there are large number of operations not
commensurate with the balance maintained
Accounts in which cheques are drawn without adequate funds or
arrangement to cover them and the cheques are returned frequently
Accounts in which cheques are drawn against uncleared effects expecting
the bank to pay the cheques or accounts where the customer remits funds
always at the last moment to meet the cheques already presented
Accounts of customers who are known through reliable sources to be
indulging in illegal activities (Smuggling etc), FEMA violation etc, and the
developments are likely to tarnish the image of our bank.)
At the end of every year, the forms are to be scruitinised and accounts are to be
re-classified as per risk perception.
Branch shall obtain CROP FORM from Low risk customers, once in 5 years
And once in 2 years in respect of other customers.
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Risk Matrix
Based on the risk perception, following risk matrix is adopted.
RIP One (Low risk)
Individuals and entities whose identities and sources of wealth can easily be
identified and in whose accounts transactions by and large conform to the
known profile shall be categorized under RIP-One.
Example:
Salaried employees whose salary structures are well defined.
People belonging to lower economic strata of the society where accounts
reflect small balances and low turn-over.
Government Departments, and Government owned Companies,
Regulators and Statutory bodies etc.,
NPOs / NGOs promoted by United Nations or its Agencies
RIP TWO
Example:
People with range of business activities of smaller modules Share brokers, real
estate people, Auto consultants, interior decorators etc., who have small
means and who tend to route the dealing amounts which do not belong to
them in their account
RIP Three (High Risk)
Customers for whom sources of funds are not clear or are not convincing shall be
categorized under RIP Three.
Higher due diligence shall be applied for this category of customers who include
the following.
Non resident customers.
High net worth individuals.
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Individuals and entities whose public image in the estimation of branch is poor
/ adverse shall be categorised under RIP Exceptional.
Examples:
Persons and entities having large number of cases filed against them by the
competent authorities viz.,
Enforcement Directorate
Police
Income Tax Department
Monitoring Agency for Forex violations
Commercial Tax department
Bodies handling Export / Imports disputes
b. Customer Identification Procedure (CIP)
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Customer identification procedure shall also be carried out in respect of nonaccount holders approaching the bank for high value one-off transactions.
The documents except passport ration card, registered lease deed and postal
identity card should not be more than 6 months old.
If the address on the document submitted for identity proof by the prospective
customer is same as that declared by him/her in the account opening form, the
document may be accepted as a valid proof of both identity and address.
A rent agreement indicating the address of the customer duly registered with
State Government or similar registration authority may also be accepted as
a proof of address.
Some close relatives viz., wife, son, daughter, parents etc who live with their
husband/Father/Mother/Son are experiencing difficulty in opening account
with banks as the utility bills required for address verifications are not in their
names.
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In order to obviate this predicament, bank shall obtain identity document and
utility bill of the relative with whom the prospective customer is living along
with a declaration from the relative that the said person (prospective customer)
who wants to open an account is a relative and is staying with him/her.
Bank can use any supplementary evidence such as a letter received through
post for further verification of the address.
Transfer of Accounts
KYC once done by one branch of the bank should be valid for transfer of the
account within the bank as long as full KYC has been done for the concerned
account.
The customer should be allowed to transfer his account from one branch to
another branch without restrictions.
Walk-in-customers
Where the bank has knowledge or reason to believe that the client account
opened by a professional intermediary is on behalf of a singleclient, then that
particular client shall be identified.
First remittance to the account of non face to face applicant customer shall
be insisted through banks branch which adheres to similar KYC standards.
While verifying the identity of proprietary concerns and when income tax
return is used for the purpose, the complete Income Tax Return (not just the
acknowledgement) in the name of the sole proprietor where the firm's income is
reflected, duly authenticated/acknowledged by the Income Tax authorities and
utility bills such as electricity, water, and landline telephone bills in the name of
the proprietary concern as required documents for opening of bank accounts of
proprietary concerns.
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Small accounts
'Small account' means a savings account in a banking company where the aggregate of all credits in a financial year does not exceed Rs. 1 lakh;
the aggregate of all withdrawals and transfers in a month does not exceed
Rs.10,000; and
The balance at any point of time does not exceed Rs. Rs.50,000.
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For this purpose Branches will maintain a Suspicious Transaction Index Book
(STIB) wherein the desk officers will record the details of the transactions and
bring them to the attention of the branch Manager
The bank shall advise the branches to fix-up category wise (viz., salaried class,
middle Income group, Businessmen, Traders etc) threshold limits for each
account based on the data on income / business furnished by the customer in
CROP form.
Example;
The threshold limit for an account may be his / her annual salary for salaried
and the total annual business income for a businessman / trader.
The bank shall fix risk level Single Transaction Threshold Limit (STTL) at the
time of opening the account itself, based on the risk profile of the customer.
STTL Limits;
Sl.no
Risk Perception
2
3
Legal Persons
1/12th of annual
turnover subject to
Minimum
Maximum
(Rs.)
(Rs.)
5,00,000
50,00,000
50,000
15,00,000
4,00,000
50,00,000
50,000
10,00,000
3,00,000
50,00,000
Any transaction, which exceeds the threshold limit, shall be enquired into
and the response shall be recorded. If the response from the said customer
is unsatisfactory or not convincing, the transaction shall be reported by the
branches in STR to Regional Office.
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d. RISK MANAGEMENT
Closure of Accounts;
Where the bank is unable to apply appropriate KYC measures due to non
furnishing of information and /or non-cooperation by the customer, the
bank shall consider closing the account or terminating the banking /
business relationship after issuing due notice to the customer explaining the
reasons for taking such a decision.
Such decisions shall be taken by Regional Managers and above only.
Freezing of Accounts
In terms of Section 51A of Unlawful Activities (Prevention) Act, 1967 (UAPA) ,
the Central Government is empowered to freeze, seize or attach funds
and other financial assets or economic resources held by, on behalf of or at
the direction of the individuals or entities.
Banks shall maintain for at least 10 years from the date of transaction
between the bank and the client, all necessary records of transactions, both
domestic or international, which will permit reconstruction of individual
transactions (including the amounts and types of currency involved if any) so as
to provide, if necessary, evidence for prosecution of persons involved in criminal
activity.
Bank shall ensure that records pertaining to the identification of the customer
and his address (e.g. copies of documents like passports, identity cards, driving
licenses, PAN, card, utility bills etc.) obtained while opening the account,
undertaking transactions and during the course of business relationship, are
properly preserved for at least 10 years after the business relationship is
ended/ from the date of cessation of the transactions/ business relationship.
Branches shall maintain record of all cash deposits and withdrawals of Rs. 10
lacs and above in CDW Ten Register.
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Bank shall submit the Cash Transaction Report (CTR) for each month 15th of
the succeeding month
F. The Principal Officer shall record his reasons for treating any transaction or a
series of transactions as suspicious.
G. General Guidelines
Information collected from the customers for the purpose of opening an account
will be kept confidential
Introduction is not necessary for opening of accounts under PML Act and Rules
or Reserve Banks extant KYC instructions. Therefore introduction should not
be insisted for opening bank accounts of customers.
Back to index
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Transaction of at
Commercial Banks.
par
instruments
of co-operative
Banks
by
Delayed period interest shall be calculated only for the delayed period
and not from the date of transaction
The period of delay in a transaction of Rs.1 lac and above will attract
delayed period interest at Bank rate + 2% (Bank rate is notified by RBI
from time to time).
For Transactions below Rs.1 lac each : The delayed period interest will
be levied only at the Bank rate for delays upto 5 calendar days and
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For delay above 5 calendar days, Penal Interest at the Bank rate +2% for
the full period of delay
SB gold -
Rs.5,00,000
SB silver
Rs.1,00,000
Rs.1,00,000
Rs.5,00,000
RD gold
Rs.1,00,000
SB Student
Rs.1,00,000
SB Platinum
Rs. 75,000
Rs.1,00,000
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Relationship of the
Banker-Customers
1.
Debtor-Creditor
2.
Creditor-Debtor
3.
Loan accounts
Creditor-Debtor
Collection of cheques/acceptance of
standing instructions
Acceptance of articles for safe custody
Agent/ Principal
Trustee -Beneficiary
4.
5.
6.
7.
8.
9.
10.
Bailee - Bailor
Agent-Principal
Debtor-Creditor
Trustee-Beneficiary
Lessor-Lessee
13. Mandate
A mandate is neither stamped not witnessed.
If the account holder is illiterate, mandate must be attested by notary
public
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14.
Power of attorney
Insolvency
When an individual customer/proprietor of proprietary concern/ any of
the joint account holders in a joint account becomes insolvent, or when a
company is in the legal process of winding up, the banker customer
relationship stands terminated.
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Cheques issued by the partnership firm signed by a partner who has been
declared insolvent, notice of which has been received by the bank must be
returned with the reason "Refer to Drawer".
If the Partnership Deed does not provide for the continuation of the
partnership and if a partner becomes insolvent and therefore the firm has
to be dissolved, then the solvent partners can be allowed to operate the
account for the purpose of winding up only.
On receipt of notice of insolvency of a Karta or any coparcener of the Joint
Hindu Family firm, all operations in the account of the Joint Hindu Family
firm must be stopped.
Effect of insanity of customers:
A notice or knowledge that a customer is confined to a lunatic asylum or is
judicially declared a lunatic under the Lunacy Act, would constitute
adequate authority to the Bank to stop operations on his account
On the insanity of one of the joint account holders, the joint relationship
stands cancelled. No operations either by the sane or insane account
holder should be allowed irrespective of the fact that the balance is payable
to either or survivor, anyone or survivor etc.
Cheques issued prior to receipt of notice of insanity should not be
honoured even if it is signed by the sane account holder.
Cheques presented subsequent to receipt of notice of insanity of the
proprietor should be returned with the remark "Refer to Drawer".
If the Partnership Deed provides for continuation of the partnership
business even if one or other partners become insane and if the other
partners want to continue the partnership business, they must be
requested to close the account by drawing a self cheque signed by all the
other partners and open a new account by fulfilling all the formalities
connected with opening an account.
Cheques drawn by partnership firms signed by the partner, who has been
declared insane or known to be insane by way of notice of insanity received
by the Bank, should be returned by the Bank with the reason "Refer to
Drawer".
If the Partnership Deed does not contain such a provision and
subsequently the partnership firm is to be dissolved, the other partners
must be allowed to operate the account for the purpose of dissolution.
Insanity of the karta or individual coparceners will not disrupt the Hindu
Undivided Family Firm. The next senior coparcener becomes
automatically the karta of the family to manage its affairs. The
account may be allowed to be continued after satisfying the validity of the
claim, of the new karta by getting the written consent of all coparceners.
Cheques drawn by the insane karta presented after the notice of his
insanity may be paid only after getting the confirmation of the new karta.
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srn/04.05.2013
Back to index
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1. Interest rate on SB accounts (domestic, NRE & NRO) has been deregulated.
2. ONLINE ACCOUNT OPENING through our Web site is available.
The accounts can be opened under SBGOLD1. SB-NRE, SB-PLAT, SBPUB, SB-GOLD2, SBSTUDNT, SB-SLVR1, & SB-SLVR2.
As and when the required documents, forms, copies of proof etc. have
been obtained by the branch, account opening shall be completed after
due verification of documents as per extant guidelines.
In case the account could not be opened due to genuine reasons/ the
same should be recorded against the relevant data with the reasons.
For SB-NRE:
The initial remittance for opening the account is to be received
through banking channels in an approved manner along with
signature of the depositor duly verified and attested by the overseas
bank, Indian Embassy or Notary Public.
Branch should confirm the identity of the depositor at a later date
when he calls in person by calling for and verifying his current valid
passport.
The officer should compare the signature of the customer in the
passport with those in the account opening form and ensure that they
agree
The Foreign Nationals employed in India and holding valid visas are
eligible to maintain resident accounts with branches in India.
Branches should obtain the complete details from the account holder
about his legitimate dues expected to be received into his account. A
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_____________________________________
declaration to this effect listing out all the legitimate dues to him have to
be obtained from account holder.
The amount repatriated abroad should not exceed USD one million per
financial year.
The debit to the account should be only for the purpose of repatriation to
the account holders account maintained abroad.
There should not be any other inflow / credit to this account other than
that mentioned above.
The account should be closed immediately after all the dues have been
received and repatriated as per the declaration made by the account
holder.
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_____________________________________
17. Basic Savings Bank accounts (MSD/ Basic Savings Bank accounts
All Rural, Semi Urban, Urban and Metropolitan branches can open
and maintain Basic Savings Bank account.
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_____________________________________
Holders of Basic Savings Bank Deposit Account will not be eligible for
opening any other savings bank deposit account in that bank.
With cheque
facility (Rs.)
Without cheque
facility (Rs.)
500/-
100/-
20 per month
Other branches
1000/-
500/-
20 per month
Pensioners SB
acc
250/-
5/
20 per month
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24. Cheque leaves issued more than 25 in number would be charged at the rate
of Rs.2.55/= per MICR cheque leaf and Rs.1.55 per Non MICR Cheque Leaf.
25. Savings Bank customers can enjoy the privilege of having their name(s)
printed on the cheque-book Personalised Cheque-book (PCB). IOB-PRIDE
Project.
26. Some charges:
Item of service
Issue of Duplicate Statement
Issue of Duplicate Pass book
Standing Instructions
Stop payment Instructions
signature verification
Account closure charges
ACCOUNTS
Charges
Flat charges of Rs.41/- for 40 entries
Flat charges of Rs.31/Within same branch for credit to Loan,
RD & Deposits- Free & For othersRs.31/- per transaction
Rs.31/- per instrument -Maximum
Rs.255/Rs.51/For With Cheque book accounts Rs. 76/For without Cheque Book accounts Rs.
51/- ( No period restriction)
UNDER
CAPITAL
GAINS
ACCOUNTS
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srn/19.05.2013
Back to index
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Credit
balances
lying
in
current/cash
credit
accounts
of
individuals/proprietary concerns where the individual/ proprietor has
expired, are eligible for payment of interest at Savings Bank rates for the
period from the date of death till date of settlement of the claims.
Category of Branches
Others
Rs. 1,000/-
Rs. 2,000/-
Others
Rs. 1,000/-
Rs. 1,000/-
All cash deposits in Current and Cash Credit accounts of Rs.50000/- and
above will require the account holder furnishing the Income-tax PAN number
or declaration in Form 60 or 61 as the case may be.
As the purpose of releasing the credit is to pass-on the interest benefit to the
customers, no drawings shall be allowed against such uncleared credit as a
matter of routine.
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Concessions
Some Charges:
Sl
No
Services
Charges
1.
Issue of Duplicate
Statement
2.
Standing
Instructions
3.
4.
Issue of Cheque
Books
MICR Centres
Centres
Rs.3.05 per cheque
cheque
NonMICR
Rs.2.00
per
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_____________________________________
5.
Stop payment
Instructions
6.
Account closure
charges
Rs.102/-
7.
for signature
verification
Rs.51/-
8.
Cash handling
charges
First 10 Sections
NIL
From 11th Section Rs.5 per section
(per transaction)
Maximum
Rs.2550/-
srn/04.04.2013
Back to index
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27
_____________________________________
CASA Schemes
Features
Target Group
Minimum balance
requirement
Special features /
concessions
Remarks
SB-Silver
SB-Gold
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Features
Target Group
Minimum
balance
requirement
Special
features /
concessions
Remarks
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28
_____________________________________
SB - Student
Rs.500
Zero balance with prior permission of
GM/GM(Mkg)
Fund Transfer Facility/ Bankers Cheque (or)
Demand Draft restricted to tuition fees/hostel
fees to a Particular School/ College A/c for
payment of fees.
Free Multi purpose usage card
Free Standing Instructions.
Free Cheque Book.
a Free Personal Accident Insurance Cover
for Rs 1 Lac
Customer ID card (Format given below) as an
alternative to carry out their transactions in
the absence of Pass Book. The card would be
in nature of a debit Card issued to the
students with facilities to operate in ATM, POS
& ECOM. The card would be embossed with
the photo of the student, which may serve as
identification card as well.
Branch should not issue Debit Cards
separately as the multipurpose card is a debit
Card with facilities to operate in ATM, POS &
ECOM.
Maximum amount in the account is. Rs
50,000/- ( Maximum amount will be
removed after the A/c holder attains the age
of 18 yrs)
Rs.750/-
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_____________________________________
Features
Target Group
Minimum
balance
requirement
Special
features /
concessions
_____________________________________
Remarks
_____________________________________
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29
_____________________________________
IOB SUPREME - CA
Proprietary, / Partnership Firms,
Clubs, Societies etc
Rs.7500
Free 75 Cheque Leaves
Debit Card Free IOB
International VISA Debit Card
to Employees/ Owners.
Rent Free POS for 75 days.
Cash Withdrawal up to RS.
50,000 under CBS transactions
from any branch.
Gold Coin Concession of Rs.
7.50 per gram on purchase of
minimum 76 grams of gold coin
in a day.
RTGS/ NEFT (ABOVE Rs. 1.00
lakh) Facility Available with 75
% Concession
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30
_____________________________________
SBDEFCOM
Target Group
Commissioned officers
Minimum
balance
Zero balance
Special features
/ concessions
ATM
Credit card
Demand Draft
Over draft
Retail loans
Remarks
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SBDEFNON
Personnel below the rank of commissioned officers and other
Staff:
Zero balance
Free NEFT & RTGS.
Free CBS Transaction (Within bank)
Unlimited & Free Cheque book
Instant Credit of Outstation cheques up to Rs 15000
Passbook available & Free updating at Non-Home Branch
Free facility setting up Standing Instructions
ASBA Facility Available
Free PAI for Rs.2.50 lacs
Free mobile banking
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31
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Term Deposits
1. Term Deposits
Period of deposit & minimum amount
Term deposits can be made for periods ranging from 7 days ( Rs.1 lakh
and above ) / 15 days ( less than Rs.1 lakh) to one hundred and twenty
months.
Deposits for six months and over are classified under Fixed Deposits, and
the rest are classified under Short Term Deposits.
For minimum period of 7 days the deposit amount is more than Rs.1
lakhs.
The minimum amount for which deposits are accepted under the SFD
scheme is Rs.3000 for periods ranging from 6 months to 120 months.
The minimum amount of deposit under MIS is Rs.100 only and any
further amounts should be in multiples of Rs.10 only with a minimum of
Rs.100 only. MIS deposits can be opened for a minimum period of 1 year
and maximum period of 10 years
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Under IOB Tax Saver Scheme, a maximum of Rs. 1,00,000 per year is
accepted under the scheme from one individual singly or jointly with
another person (including minor) and the minimum amount is
Rs.10000/-. The deposit can be accepted for any period from 5 years to
10 years.
Banks deposit receipts are exempted from stamp duty as a receipt under
the Stamp Act. When the deposit is renewed together with interest or the
proceeds credited to depositors account, then also no stamp duty is
attracted.
If the deposit is already in the joint names of two or more persons, for
adding or deleting the name of any person in the deposit, written consent
of all the depositors should be obtained.
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_____________________________________
the written request from all the joint depositors. Such splitting should
not be treated as premature withdrawal.
For payment / closure of the deposit, the deposit receipt should be sent
to the account maintaining branch on collection basis as detailed above,
in CBS atmosphere.
Retired staff members are eligible for additional interest of 1% p.a in their
deposits, in single name or jointly with the members of their family,
provided the monies deposited in the account belongs to the staff
member.
A minor aged Ten years or above can open deposit account in his/her
single name to be operated upon by himself/herself, subject to
conditions.
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_____________________________________
RBI guidelines
Banks are given the discretion to disallow premature withdrawal of
a term deposit in respect of bulk deposits of Rs 1 crore and above of
all depositors, including deposits of individuals and HUFs. Bank
should, however, notify such depositors of its policy of disallowing
premature withdrawal in advance, i.e., at the time of accepting such
deposits.
A bank on request from a depositor shall allow withdrawal of a
Rupee term deposits of less than Rs 1 crore, before completion of the
period of the deposit agreed upon at the time of making the deposit.
Bank will have the freedom to determine its own penal interest rates
for premature withdrawal of term deposits. Bank should ensure that
the depositors are made aware of the applicable penal rates along
with the deposit rates.
IN IOB
For Domestic Deposits- No penalty for premature closure subject to;
The interest paid on the deposit to be as per card rate for period run
as per existing guidelines and
In case special rates are offered, the same stands withdrawn and
interest rate as per card rate for the period run only will apply.
For deposits above Rs.5 lakhs, additional interest rate contracted for
Senior Citizens deposit is not payable (Vardhan Scheme)
If an overdue deposit, renewed after paying the interest for the overdue
period , is closed prematurely before completing 15 days in the case of
deposits of less than Rs.15 lakhs and 7 days in the case of deposits of
Rs.15 lakhs and above , from the date of renewal - No interest Is payable
on the renewed deposit. The interest already paid for the overdue period
will also be recovered.
If NRE deposit has not completed one year from the date of opening or
renewal and closed prematurely - No interest is payable.
If NRE deposit has completed one year from the date of opening or
renewal and closed prematurely - !% penalty is applicable.
If an NRE overdue deposit, renewed after paying the interest for the
overdue period , is closed prematurely before completing one year from
the date of renewal - No interest is payable on the deposit. Interest
already paid for the overdue period will also be recovered.
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rate applicable for the period during which the deposit has remained with
the bank, without any penalty for premature closure. However, the term
deposit should be placed for a period longer than the remaining period of
the original contracted period of Recurring deposit.
4. Payment of interest on renewal of deposits (NRE deposits)
Up to and inclusive of 14 days from the date of maturity (both the date of
presentation and date of maturity inclusive) for deposits from the public,
staff and senior Citizens Deposits can be renewed from the date of
maturity.
If the overdue period is more than 14 days from the date of maturity for
deposits from the public, staff and senior Citizens, interest for the
overdue period shall be paid separately at simple rate prevailing on the
maturity date or date of renewal whichever is lower is applicable.
In the case of NRE deposits, if the overdue period is less than one year,
the interest rates for one year prevailing on date of maturity or renewal
whichever lower is to be applied.
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8. OVERDUE DEPOSITS
If a deposit is not paid or renewed on the due date, the principal together
with the accrued interest should be credited to OVERDUE DEPOSITS
ACCOUNT in the General Ledger.
Margin on advances (both demand loans and Cash credit) against the
prime security of all kinds of rupee term deposits is 10 % (short deposits,
Special fixed deposits, fixed deposits, Recurring deposits, NRE deposits).
For RDP with remaining maturity of 4 years and above the margin is
fixed at 15 %.
Loan can be granted against Varkshik Aai Yojana deposit upto the extent
of Eighty Five percent of the principal amount only.
Loan against staff deposits: the rate of interest chargeable shall be half
percent over the staff deposit rate. Advances to staff members can be
granted up to Ninety Five percent of the deposit amount.
10.
Notice of lien/assignment
11.
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The joint deposit holders may be permitted to give the mandate either at
the time of placing fixed deposit or anytime subsequently during the
term/tenure of the deposit. If such a mandate is obtained, banks can
allow premature withdrawal of term/fixed deposits by the surviving
depositor without seeking the concurrence of the legal heirs of the
deceased joint deposit holder.
This, however, would not stand in the way of making payment to the
survivor on maturity.
If the former expires before the maturity of the fixed/term deposit, the
Survivor can withdraw the deposit on maturity.
12.
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13.
Floating Rate Deposit Scheme is applicable only to the public and is not
applicable to staff members
The deposits received from Senior Citizens under Floating Rate Deposit
Scheme are not eligible for additional interest rate
Under Floating Interest Rate deposit, the interest rate is fixed in relation
to an anchor rate and will change as and when there is a change in the
anchor rate at predetermined intervals.
Deposits will be accepted for a minimum period of more than 3years but
up to a maximum period of 10 years
The minimum amount of deposit accepted under the scheme is Rs.1 lakh
and in multiples of Rs.10,000/- thereafter. There is no upper ceiling for
amount of deposit.
Interest rate:
For deposits for a maturity period of 3 years to 5 years, the interest
rate will be 5 year G Sec rate, and for deposits for maturity period of
above 5 years to 10 years, the interest rate will be 10 year G Sec
rate.
The rate will be fixed based on the daily average of G Sec rate for the
last 6 months.
The rates will be reset in the accounts on 1st March and 1st
September every year.
Loan can be granted against the deposit for 90% of the amount
deposited. The interest rate on the loan will be 2% over the current
floating rate for loan to self and 3% over the current floating rate for loan
to third parties.
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The interest on loan will also be reset once in six months to synchronise
with resetting the deposit rate.
14.
15.
The depositor will get gold coins worth the maturity amount on the date
of maturity.
The price of gold coins will be the price prevailing as on the date of
maturity of the deposit.
If the maturity amount is less than the price of 2 gms coins, gold coins
will not be given and the maturity proceeds will be paid to the customers.
Concession of Rs.25 per gram on the gold price prevailing as on the date
of maturity, will be given to the depositors.
Personal Accident cover up to Rs. One lakh, the cost of which will be
borne by Central Office.
Unfixed Deposit
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16.
Additional Interest for Senior Citizens and Additional Interest for Staff
Members will not be applicable under the Scheme
The accounts with joint operations and corporate customers are not
allowed with this facility.
The title of the deposit account would be the same as that of the source
account for funds.
The deposit can be closed in full term or on a premature basis by getting the
print out of the deposit discharged, verified and the proceeds credited back
to the customers savings / current account on closure.
Bank will have the freedom to determine its own penal interest rates for
premature withdrawal of term deposits. Bank should ensure that the
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depositors are made aware of the applicable penal rates along with the
deposit rates.
The revised guidelines will be applicable with effect from April 1, 2013.
17.
srn/19.05.2013
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43
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Features
Target group
Minimum
Deposit amount
Minimum &
maximum
period
Payment of
Interest
Remarks
Rs.3000
Monthly/Quarterly
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Features
Target group
Minimum Deposit
amount
Minimum &
maximum period
Payment of
Interest
Gold RD
accepted
for
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Each remittance
identical period.
Remarks
44
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Features
Target group
Minimum Deposit
amount
Minimum &
maximum period
Payment of
Interest
Minimum of Rs. 50
May be opened for 63 months, 84
months or 120 months
compounded quarterly and reinvested
This is a variation of RD
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45
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Features
Target group
Minimum Deposit
amount
Minimum &
maximum period
Payment of
Interest
Remarks
Stage - II : Bank pays a fixed sum monthly /
quarterly to the depositor along with an annual
bonus for sixty, thirty six or twenty four
months for deposits of sixty, eighty four or
ninety six months respectively.
The total period of the deposit in both stage 1
and stage II should not exceed 120 months
The interest is paid in round sum every month
and the fraction is accumulated and paid as
bonus at the end of each year. The
accumulated capital will remain intact.
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46
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Features
Target group
Minimum Deposit
amount
Minimum &
maximum period
Payment of
Interest
Remarks
5 to 10 yrs
Quarterly
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47
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No premature closure
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48
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General
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Minimum quantity accepted as deposit will be 1000 grams in net weight and
for quantities less than 1000 grams prior permission from Treasury
Department is necessary.
D. Period Of Deposit
E.
a. The rate of interest will be decided by the Bank from time to time
b. Interest rates once fixed and indicated in the Deposit Certificate will
remain the same for the entire period of deposit
c. Interest can be paid semi annually on 30th September and 31st
March every year. It can also be compounded at the option of the Depositor.
d. Interest will be paid in Rupee only at Banks Gold / Rupee buying rate
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e. Interest will be paid from the date of provisional receipt on the net weight
and fineness indicated in the final receipt
f. Interest will be calculated at 360 days a year basis (365/360
F. Current Interest Rates
Until further instructions, the following are the rates of interest payable on Gold
Deposits
6 months and above to less than 1 year
1.50% p.a.
1.65% p.a.
1.75% p.a.
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f. Bank may at its discretion in such renewals after the maturity date
pay interest at such rates as deemed feasible for the overdue period in
rupees at its Gold/Rupee buying rate on the date of payment.
J. Premature Payment
There will be a lock-in period of 6 months and no premature payment will be
allowed during the said period.
K. Tax Concessions
In terms of various amendments carried out by respective Acts in Finance Act
1999, the following concessions are currently available:
a. Interest earned under IOB Gold Deposit Scheme will be exempted from
Income Tax.
b. Value of Gold deposited under
be exempted from Wealth Tax.
IOB Gold
Deposit
Scheme
will
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Every working day the CBS system will classify Savings Bank/Current
Account where there has been no operation in the account by customers
for one year (other than crediting of periodic interest in SB accounts or
debiting service charges) as non-operative.
Every working day the CBS system will classify Savings Bank/Current
Account where there has been no operation in the accounts by customers
for the last 2 years (other than crediting of periodic interest in SB
accounts or debiting service charges) as Dormant Accounts.
Savings Bank/Current Account where there has been no operation in the
accounts by customers for the last 3 years (other than crediting of
periodic interest in SB accounts or debiting service charges) will be
classified as Inoperative Accounts.
Transferring to Inoperative Accounts will be done by the system on or
before 10th March of every year.
However, it should be noted that balances should not be transferred to
inoperative accounts in the following cases:
a. where an account is stopped under Garnishee or other court order;
b. where the operations in the account is stopped to obtain legal
representation;
c. where the account is under lien for advances allowed in another
account;
d. where the account is showing a debit balance
Accounts which had remained in-operative for 5 years and above since
their transfer to Inoperative Accounts (8 years since the last transaction
in it by the customer) are classified for transfer to Unclaimed Balances
Account.
Term Deposit Account
The Deposit account will be classified as Unclaimed Deposit account
if the deposit is not claimed within 5 years from the due date.
In case of Term Deposits transferred from Unclaimed Balances
Account and withdrawn by customer without renewal, branches may
pay simple interest, from the maturity date till the date of payment, at
the rate SB interest prevailing on the date of maturity.
Demand Drafts
The Demand Drafts which are outstanding (i.e. remaining unclaimed) for
3 years or more are to be classified as unclaimed balance.
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Sundry Creditors
All items (except those relating to clearing adjustments) lying in the
Sundry Creditor for 3 years or more are to be classified as unclaimed
balances.
Excess Cash
Excess Cash unclaimed for more than 6 months shall be transferred to
Unclaimed Balances Account maintained at Central Office every half year
during March and September
Overseas Branches should, however, maintain Unclaimed Balances
Account in their own books to which all their inoperative accounts
outstanding for more than three years should be transferred under
advice to the parties concerned at their last known addresses or as per
guidelines prevailing in the respective countries whichever makes
more stringent compliance.
There is no limitation period for claiming back the amount from the
Unclaimed Balance Account.
The bank will display on the website, the list of only the names of the
account holders and his/her last known address in respect of Unclaimed
Deposits / Inoperative Accounts which are inactive / inoperative for ten
years or more. The account number, its type and the name of the
branch shall not be disclosed on the website. The list will be updated
once in a year, as of 31st December.
When a branch is approached by a customer whose account has been
transferred to Unclaimed Balances Account, the branch, after verification
of the bonafides of the customer, should request the Balance sheet
Management Department, Central Office, to retransfer the balance in
the particular account giving all the relevant details.
On receipt of the credit from Central Office, the account has to be opened
in the computer system afresh by obtaining KYC Crop form and going
through the Customer Acceptance Policy and Customer Identification
procedure as per KYC Norms / AML standards, if operations are to be
continued in the account.
Display List of Unclaimed Deposits
The bank displays on the website, the list of the names of the account
holders and his/her last known address in respect of Unclaimed Deposits /
Inoperative Accounts which are inactive / inoperative for 10 years or more.
The account number, its type and the name of the branch shall not be
disclosed on the website. The list will be updated once in a year, as of 31st
December
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1. Illiterate Persons
A person who is unable to read and write is considered to be illiterate,
even if he/she can sign in some language
Illiterate customers have to withdraw cash in person and not by
Cheques.
The illiterate customer can have a Mandate Holder for operation of his
account using cheque books
No account can be opened, for a minor blind person, but he can have a
Joint Account with a major, who is not blind.
Major, illiterate account can be opened, provided he is capable of
conducting the account, signing consistently and operating personally by
himself.
2. Visually Challenged/Persons with Disabilities
All banking facilities such as cheque book facility including third party
cheques, ATM facility, Net Banking, Locker, retail loans, credit cards etc. are
invariably offered to visually challenged persons/Persons with disabilities
without any discrimination as they are legally competent to contract.
3. Minor Special Account
A minor can open/operate a SAVING BANK account with cheque book
facility in his/her name provided:
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Fifty
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Probate
(Will)
or
Letter
of
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Local Level Committees set up under National Trust for the welfare of
the persons with Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities Act, 1999 (called as Mental Disabilities Act, 1999).
The details of Local Level Committees are available in the web-site of the
National Trust for the welfare of persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities, i.e. www.thenationaltrust.in.
12. Insolvent persons:
No account should be opened in the name of an un discharged insolvent and
no operation should be allowed in any existing account as soon as the bank
is put on notice of the insolvency of the account holder
13. Partnership firms
A minor admitted to the benefits of a partnership or his guardian is not
required to sign the account opening form and other documents.
He should not be allowed to operate the account unless he is a mandate
holder to operate the firms account.
A Minor is liable only to the extent of his/her share for any debts
incurred by the partnership firm before he attains majority.
If the minor does not elect to become a partner by giving public notice
within 6 months of his/her attaining majority or his/her knowledge of
admission to the benefits of the firm, whichever is later, he/she shall
become a partner on the expiry of the said 6 months.
Minimum number of persons in a partnership firm:2
Maximum number of person in a partnership firm engaged in
banking:10
Maximum number of person in a partnership firm engaged in activity
other than banking:20
Maximum number of person in a partnership firm of professionals: 50
A company can be a partner in a partnership firm.
HUF cannot be a partner of a partnership firm.
14. ACCOUNTS OF HINDU UNDIVIDED FAMILY CONCERNS
The account of Hindu Undivided Family (HUF) firm should be opened
and operated upon by the Karta
Savings Bank accounts in the name of a Hindu Undivided Family Firm
may also be opened, if such accounts are for non-trading purpose
In a HUF, male members of the family become coparceners by birth
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The female members are not coparceners in the HUF. However, in the
States of Tamil Nadu and Andhra Pradesh the Hindu Succession Act
has been amended to confer equal right to property on Hindu women.
In these two states, in a HUF, the daughters shall, by birth, become
coparceners in their own right and have the same rights as a son has in
the co-parceners property.
The Karta of a HUF may issue a mandate letter in favour of a major
coparcener for operating the account.
In case the mandate is to be issued in favour of a third party an
indemnity has to be obtained executed by the Karta and the entire
major coparceners of the HUF.
Liability of a co-parcenor in HUF is restricted to his share in HUF asset.
srn/04.05.2013
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Rights of Banker
1. Right of set off:
This is the right to combine more than one account in order to arrive at
the net amount due from the customer i.e. adjusting debit balance in one
account against credit balance in another both relating to the same
customer.
a. The moneys in the accounts should belong to the customer(s) in the same
right and capacity.
b. The right of set off is subject to the duty to honour cheques
c. A notice must be served on the customer before exercising the right.
d. The right does not extend to contingent liabilities.
e. Right of set off as well as Right of lien is available for time barred debts.
f. Right of set off is available on the deposit balance held in other branches
of the Bank
2. Appropriation of Payments
Under Section 59, the borrower customer has a right to tell his Banker to
which debt (out of several) the money he pays is to be applied and the
Banker accepting such credit is under obligation to act accordingly to the
such instruction.
If however, the debtor customer fails to give any such instruction, as per
Section 60 of Indian Contract Act, the creditor-Banker is free to use his
discretion to credit the amount to any borrowal account he (Creditor Banker) chooses under intimation to the customer who cannot later seek
to vary the appropriation.
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Right of lien is the right to retain the property of another till such time
the owner thereof has paid his debt due to the person in possession of
the property.
Right of lien arises out of normal course of business and is not therefore
available for goods received for specific purpose (safe custody, goods in
safe deposit lockers, goods held by bank in the capacity of trustee),
Banker's lien, known as implied pledge is a 'general lien' (as per section
171 of Indian Contract Act) which is applicable against all dues payable
as against a particular lien (under Section 170 of Indian Contract Act)
which is available for specific dues only.
srn/04.04.2012
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It has been held by the Supreme Court that Right to Information is derived from
the freedom of speech and expression which is guaranteed by Article 19 (1)(a) of
the Constitution of India.
Information, in general terms, has been described by the Act as any material in
any form, including records, documents, memos, e-mails, opinions, advices,
press releases, circulars, orders, log books, contracts, reports, papers, samples,
models, data material held in any electronic form etc.
The right to information under the Act means, accessibility to the information
held under the control of any public authority and includes the right to
i.
ii.
iii.
iv.
Further, the person requesting for information need not give any reasons.
The Act provides that if any officer is assigned the task of providing information
by CPIO then, such officer shall be treated as CPIO.
In our Bank, The Deputy General Manager (Law department), has been
designated as Central Public Information Officer (CPIO) and
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On studying the request from the applicant, CPIO will decide whether the
disclosure is exempted under the Act, on case to case basis. Brief details of
grounds for exemptions are furnished below:
Information which would affect sovereignty and integrity of the Country .
Expressly forbidden by any court of law or tribunal and disclosure which
could be construed as contempt of court.
Information causing breach of privilege of Parliament and State
Legislature.
Information including commercial confidence, the disclosure of which
would harm the competitive position of a third party (issues involving
larger public interest not covered)
Information available to a person in his fiduciary capacity.
Information received from foreign government, in confidence.
Information which endanger life or physical safety of any person.
Information impeding the process of investigation
Cabinet papers including records of deliberations.
Information which relates to personal information the disclosure of which
has no relationship to any public activity or interest.
Disclosure of information infringing the copy right may be rejected
outright.
Fee Payable:
Application fee - Rs. 10.
Following fee structure has been prescribed for furnishing the information.
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For inspection of records, no fee for the first hour, and a fee of Rs. 5 for each
fifteen minutes (or fraction thereof) thereafter.
No such fee shall be collected from persons who are of below poverty line
As per the Act, CPIO or CAPIO shall either provide the information or reject
the request as expeditiously as possible, and in any case within thirty days
of the receipt of the request.
Failure to reply to the applicant will attract penalty under the Act.
Appellate Authority
srn/04.04.2012
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BCSBI was promoted by Reserve Bank and 11 Banks public, private and
foreign.
It is not a Department under the control of RBI, but "An independent and
autonomous watch dog to monitor and ensure that the Banking Codes and
Standards adopted by the banks are adhered to in true spirit while
delivering their service
Banking Codes & Standard Board of India has brought out two codes. They
are;
One is Code of Banks Commitment to Customers.
Code of Banks Commitment to Micro and Small enterprises.
This Code will be reviewed within a period of three years. The review will be
undertaken in a transparent manner. Last reviewed during August 2009.
As per code of BCSBI and RBI directives for any increase or introduction of
Service charges one month prior notice is to be given to the customers.
In our bank, all the Regional Managers are designated as Regional Code
Compliance Officer to ensure implementation of the code,
This Code applies to all the products and services listed below, whether they
are provided by branches or subsidiaries, agents acting on our behalf, across
the counter, over the phone, by post, through interactive electronic devices,
on the internet or by any other method.
Current accounts, savings accounts, term deposits, recurring deposits,
PPF accounts and all other deposit accounts
Payment services such as pension, payment orders, remittances by way
of Demand Drafts, wire transfers and all electronic transactions e.g.
RTGS, EFT, NEFT
Banking services related to Government transactions
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The Reserve Bank may appoint one or more of its officers in the
rank of Chief General Manager or General Manager to be known as
Banking Ombudsmen to carry out the functions entrusted to them by or
under the Scheme.
3.
4.
5.
The Reserve Bank shall specify the territorial limits to which the authority
of each Banking Ombudsman.
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j.
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(3) A customer would also be able to lodge a complaint against the bank for its
non-adherence to the provisions of the fair practices code for lender or the
code of banks commitments to customers issued by BCSBI
(4) The Banking Ombudsman may also deal with such other matter as
may be specified by the Reserve Bank from time to time in this behalf.
6. Procedure for filing complaint
(1) Any person who has a grievance against a bank on any one or more
of the grounds may, himself or through his authorised representative
(other than an
advocate), make
a
complaint
to
the
Banking
Ombudsman within whose jurisdiction the branch or office of the
bank complained against is located.
If the complaint is arising out of the operations of credit cards, it
shall be filed before the Banking Ombudsman within whose territorial
jurisdiction the billing
address of the card holder is located and not the
place where the bank concerned or the credit card processing unit is located.
(2) No complaint to the Banking Ombudsman shall lie unless:a. the
complainant had, before making a complaint to the Banking
Ombudsman, made a written representation to the bank and the bank
had rejected the complaint or the complainant had not received any reply
within a period of one month after the bank received his representation or
the complainant is not satisfied with the reply given to him by the bank;
b. the complaint is made not later than one year after the complainant has
received the reply of the bank to his representation or, where no reply is
received, not later than one year and one month after the date of the
representation to the bank;
c. the complaint is not in respect of the same subject matter which was
settled or dealt with on merits by the Banking Ombudsman in any previous
proceedings whether or not received from the same complainant or along
with one or more complainants or one or more of the parties concerned with
the subject matter;
d. the complaint does not pertain to the same subject matter, for which any
proceedings before any court, tribunal or arbitrator or any other forum is
pending or a decree or Award or order has been passed by any such court,
tribunal, arbitrator or forum;
e. The complaint is not frivolous or vexatious in nature; and
f. The complaint is made before the expiry of the period of limitation prescribed
under the Indian Limitation Act, 1963 for such claims.
7. Award by the banking ombudsman
The award shall state briefly the reasons for passing the award.
The Award passed under sub-clause (1) shall specify the amount, if any,
to be paid by the bank to the complainant by way of compensation for
the loss suffered by him and may contain any direction to the bank.
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the Banking Ombudsman shall have the power to pass an award directing
payment of an
amount not exceeding the actual loss suffered by the
complainant as a direct consequence of the act of omission or commission
of the bank, or ten lakh rupees (one lakh for credit card) whichever is
lower.
A copy of the Award shall be sent to the complainant and the bank.
srn/04.04.2012
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Garnishee Order:
Issued at the request of the creditor to attach the debtors' funds in the
hands of another debtor (banker known as Garnishee)
First order Nisi is issued requesting the bank to explain why the funds
of the depositor should not be attached. Bank informs depositor and
stops operations.
If the order is in the name of individual it will not attach the partnership
a/c in which the individual is a partner or the individual who holds the
a/c in trust.
Any deposit already due or accruing due (term deposit) are attached but
payable to court only on maturity.
If the order is in the name of individual but the a/c is in the Joint names
it is not attachable.
If the order is issued in joint names it attaches the joint accounts as well
as individual accounts if any.
Payment in cash, before actual parting; and in case of clearing, upto the
time of return of clearing cheques the balance available can be attached
On receipt of a Garnishee Order, the date and time of its receipt must be
marked and authenticated by the officer of the department
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srn/28.04.13
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Attachment Order
Issued to receive from any person the money due or becoming due to
the assessee, or from any person who holds money or may hold
subsequently for or an account of an assessee.
If the bank fails to act on an Income Tax (IT) attachment order, it will be
deemed as an assessee in default.
Right of set off is available in both cases before effecting the Garnishee or
IT attachment order.
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The NI Act states in its preamble that it seeks to define the law relating to
promissory note, bill of exchange and cheque and therefore it deals with only
these three kinds of negotiable instruments
Common Features: Any instrument that possesses the common features may be
considered to be a negotiable instrument (e.g. bank drafts, government
promissory notes).
i.
ii.
iii.
The holder of negotiable instrument can sue in his own name and can
recover the amount of the instrument from the party liable to pay thereon
as there is a right of action attached to the instrument itself.
Bill of exchange is used in business and trade involving the seller and buyer
of goods/services sold on credit terms.
It has three parties - drawer (seller), drawee (buyer) and payee (beneficiary).
Instead of paying cash, the drawee (buyer) undertakes to pay to the payee, or
to his order, a specified sum on demand (i.e. demand bill on presentment of
the bill), or on a specified future date (i.e. usance bill after acceptance).
The drawee of a bill is not liable until he accepts the bill, indicating thereby
his assent to the drawer's order to pay.
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Usance bill is presented twice to the drawee - first for acceptance, and
thereafter for payment on the due date.
A cheque has three parties. The drawer is the account holder signing the
cheque; drawee is always the bank branch where the account holder
maintains his account and the payee is the beneficiary who will receive the
amount mentioned in the cheque.
The cheque has to be signed in ink by the account holder or his authorized
agent (through mandate or power of attorney) as per the specimen
A holder of an undated cheque may fill in the date while presenting it for
payment.
A banker can pay a cheque written only in words where the amount in
words and figures mutually differs.
But if the amount is written only in figures, the bank generally returns it.
Such crossing ensures that the cheque or draft will be payable not in cash,
but only through the bank, by credit to the account of the payee.
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Such crossing ensures that the drawee bank shall not pay the cheque to
anyone than the banker/his agent (to whom it is crossed) for collection.
Type of Endorsements:
Blank endorsement: When the endorser signs only his name on the back of
the instrument, it is termed as a blank endorsement.
After such endorsement, the instrument can be negotiated by mere delivery
without any further endorsement required.
Special endorsement or endorsement in full: When the endorser's signature
is accompanied by instructions to pay the amount to/to the order of a
named person, it is termed as a special endorsement.
The person to whom the money is payable is known as endorsee.
That endorsee can further endorse the instrument in favour of another
person specifically instructing to pay to that certain person.
Restrictive endorsement: When further negotiation of the instrument, is
prohibited. (e.g. the instrument is endorsed as "pay A only") it is termed as
restrictive endorsement.
Such an endorsement takes away the negotiability of the instrument.
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The term 'holder in due course', denotes a 'bona fide holder for value
without notice
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_____________________________________
Merely because the drawer issued a stop payment instruction to the drawee or
to the bank for stopping the payment, will not preclude an action under Sec 138
of the NI Act by the drawee or the holder of a cheque in due course.
srn/04.04.2012
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The maturity period of CDs issued by banks should be not less than 7
days and not more than one year.
The FIs can issue CDs for a period not less than 1 year and not
exceeding 3 years from the date of issue.
Back to index
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Rating Requirements:
All eligible participants shall obtain credit rating for issuance of
Commercial Paper from either CRISIL or ICRA or CARE or The India
Ratings and Research Private Limited (India Ratings) or such other
credit rating agencies as may be specified by the Reserve Bank of
India from time to time, for the purpose.
Eligible participants/issuers shall obtain credit rating for issuance of
CP from any one of the SEBI registered CRAs. The minimum credit
rating shall be A3 as per rating symbol and definition prescribed by
SEBI.
The issuers shall ensure at the time of issuance of the CP that the
rating so obtained is current and has not fallen due for review
srn/14.04.2013
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Cheque collection
1. Cheque collection(foreign)- USD-denominated cheques :
JP Morgan Bank will credit our Nostro account on the second banking
business day in USA calculated from the date of receipt of cheque at JP
Morgan, Mumbai under usual reserve as applicable to cash letter
service.
JP Morgan will be charging USD 0.25 per cheque towards check 21,
which will be absorbed by Treasury Dept.
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Cooling period will not be indicated for other countries, in view of the fact
that within the same country it may vary from one centre to other
The day when the amount is due for credit is the date of credit to Nostro
Account plus 15 days for USD cheques and date of credit to Nostro
Account plus 21 days in case of other currencies subject to other
conditions as applicable in respective countries.
Branches should pay interest at SB rate from the date of credit to Nostro
account to the date of credit to customers account.
AD branches concerned should pay the interest for the delayed period.
In respect of cheques with value less than USD 100, customers may be
informed of the charges likely to be levied while accepting the cheques for
payment.
The exchange rate will be the rate prevalent on the date of conversion.
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Local Cheques
All cheques and other Negotiable Instruments payable locally would
be presented through the clearing system prevailing at the centre.
All branches will fix up the days cut off time for the inclusion of
instruments for clearing, taking into account the clearing cycle and
other related factors, like distance from clearing house,
communication facility, local established practices, methodology being
followed by other banks in the particular centre etc.
Display board will be placed in the banking hall , indicating the cut off
time limits for receipt of cheques for payment to Government
Accounts like income-tax etc.
Cheques deposited at branch counters and in collection boxes within
the branch premises before the specified cut-off time will be presented
for clearing on the same day.
Cheques deposited after the cut-off time and in collection boxes
outside the branch premises including off-site ATMs will be presented
in the next clearing cycle.
As a policy bank would give credit to the customers account on the
same day clearing settlement takes place.
Withdrawal of amounts as credited would be permitted as per the
Cheque return schedule of the clearinghouse.
Bank branches situated at centres where no clearing house exists,
would present local cheques on drawee banks across the counter and
it would be the banks endeavour to credit the proceeds at the earliest.
For extending this facility there will not be any separate stipulation of
minimum balance in the account.
on
savings
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Bank shall levy normal collection charges and out of pocket expenses
while providing immediate credit against outstation instruments tendered
for collection.
drafts,
Conduct of which has been satisfactory and bank has not noticed any
irregular dealings.
Where the bank has not experienced any difficulty in recovery of any
amount advanced in the past including cheques returned after giving
immediate credit.
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7.
In case of local cheques presented for clearing, the bank shall permit
usage of the shadow credit afforded to the customers account
immediately after closure of relative return clearing and withdrawal shall
be allowed on the same day or maximum within an hour of the
commencement of business on the next working day subject to usual
safeguards.
For cheques and other instruments sent for collection to centres within
the country the following time norms shall be applied
Cheques presented at any of the four major Metro Centres ( New
Delhi, Mumbai, Kolkata and Chennai) and payable at any of the other
three centres: Maximum period of 7 days.
Metro Centres and State Capitals (other than those of North Eastern
States and Sikkim) Maximum period of 10 days
In all other Centres: Maximum period of 14 days
Bank would give credit to the party on credit of proceeds to the Banks
Nostro Account with the correspondent bank after taking into account
cooling periods as applicable to the countries concerned.
with
its
As part of the compensation policy of the bank, the bank will pay interest
to its customer on the amount of collection instruments in case there is
delay in giving credit beyond the time period mentioned above.
Such interest shall be paid without any demand from customers in all
types of accounts.
Local cheque: interest will be paid at savings bank rate for the
corresponding period of delay
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Outstation Cheques :
Savings Bank rate for the period of delay beyond 7/10/14 days as
the case may be in collection of outstation cheques.
Where the delay is beyond 14 days, interest will be paid at the rate
applicable to for term deposits of the respective period.
In the case of extraordinary delay, i.e., delay exceeding 90 days,
interest will be paid at the rate of 2% above the corresponding Term
deposit rate.
In the event of the proceeds of Cheque under collection was to be
credited to an overdraft / loan account of the customer, interest will
be paid at the rate applicable to the loan account.
For extraordinary delays, interest will be paid at the rate of 2% above
the rate applicable to the loan account.
10.
In addition, bank will pay interest on the amount of the Cheque for a
further period of 15 days at Savings Bank rate to provide for likely
further delay in obtaining duplicate Cheque/instrument and collection
thereof.
The bank would also compensate the customer for any reasonable
charges he/she incurs in getting duplicate Cheque/instrument upon
production of receipt, in the event the instrument is to be obtained from
a bank/institution who would charge a fee for issue of duplicate
instrument.
Bank will reimburse the related charges debited in the account of the
drawer (of collection/clearing cheque deposited by the customer which is
lost in transit) by the drawee bank branch
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11.
12.
Force Majeure
The bank shall not be liable to compensate customers for delayed credit
if some unforeseen event (including but not limited to civil commotion,
sabotage, lockout, strike or other labour disturbances, accident, fires,
natural disasters and other Acts of God war, damage to the Banks
facilities or of its correspondent bank(s) absence of the usual means of
communication or all types of transportation, etc beyond the control of
the Bank prevents it from performing its obligations with the specified
service delivery parameters.
13.
14.
Policy for dishonour of Physical/ Truncated for less than Rs. 1 Crore
Branches should affix a rubber stamp with message on the front upper
wrapper of cheque book that issue of cheque without maintaining
sufficient balance in the account will disqualify the drawer for additional
cheque books.
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If the customer does not maintain the account properly even then, the
branch should send a letter to the account holder by Registered post
with acknowledgement due & also notice by certificate of posting (in
addition to Regd letter) requesting that the account holder should
maintain the account properly and also cautioning him that the Bank
will close the account if it is not conducted properly within one month.
Even after expiry of the notice period if the account is not conducted
properly the branch should close the account and remit the balance
payable to the customer by draft by Registered post with
acknowledgement due & notice by certificate of posting..
The branch should call for return of the unutilized cheque leaves from
the customer and effectively follow up to obtain the same.
15.
Policy for dishonour of Physical/ Truncated for Rs. 1 Crore and above
(Similar to that of Less than one crore, but daily reporting.)
16.
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Our Bank has fixed ECS return charges within the ceiling limits and the
same is given below:
For transactions up to Rs. 25,000/ -
Rs. 31/-
Rs. 51/
Rs. 76/
Rs. 102/-
( first 3 returns)
Rs. 153/-
( after 3 returns)
Rs. 204/-
18.
Prohibition
On
Crediting
Banks cannot collect account payee cheques for any person other than
the payee constituent.
srn/12.05.2013
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At the time of breaking open the locker there should be sufficient evidence to
show that the hirer failed to pay the rent due in spite of registered notices.
E. Charges
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1. Locker hirers must either operate the locker or surrender it where the
lockers have remained not operated for more than three years for medium
risk category OR one year for higher risk category
2. The locker should be broken open by the representative mechanic of the
manufacturers in the presence of 3 respectable outside witnesses and 2
officers of the Bank.
3. The contents, if any, should be removed to vacant locker and kept in the
joint custody of the Manager and Deputy Manager of the Branch with the
triplicate copy of the list of contents also deposited therein along with the
articles, pending the receipt of instructions of Regional Office/Central Office
regarding their disposal.
4. A registered notice on form 122 J form 122 K as the case may be along with
the quadruplicate copy of the list of contents should be sent to hirer(s). In
the case of joint accounts such notice should be sent to each person.
G. Access to Lockers
1. If the hirer, accompanied by a third party desires that the third party, be
allowed to accompany him inside the vault, the hirer may be permitted to do
so at his specific written request and at his sole risk and responsibility
2. Access to locker may be allowed to the hirers appointee or Authorised
person only against a Power of Attorney in form 122 AX or Form 122 BX as
the case may be (single hirer or joint hirers).
H. Responsibility of the Officer in charge of the locker units
1. It is the responsibility of the custodian of the vault to check all lockers
operated during the day and ensure that they are properly locked and that
no articles / valuables are left behind by the locker hirers in the strong
room/ locker room
2. The lock of a surrendered locker must be interchanged with that of another
vacant locker before being let out to another hirer and the entry in the
Locker Key Register should be amended accordingly under the authorisation
of the official concerned
I. Procedures to be followed When Locker left open by the Hirer.
1. A declaration to that effect should be obtained in writing from the hirer to
that effect.
2. In case the hirer who has left the locker unlocked is not immediately
available the contents may be listed in the presence of the Manager, Deputy
Manager the custodian and one or two customers.
3. In case the key is left in the unlocked locker the contents should be kept
locked in the locker and the key should be kept in the joint custody of the
Manager and Deputy Manager or the custodian.
4. In case the key is not left behind the contents should be kept in a vacant
locker and the key should be kept in the joint custody of the Manager and
Deputy Manager or the custodian.
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Considering the Claim for settlement only after lapse of 7 years from the
date of his/her being reported missing.
The claimant /legal heirs should produce enquiry form, legal heir ship
certificate, affidavit, consent letter, etc except the death certificate, as
prescribed for the normal death claim. In addition to the above, the
claimant /legal heirs should also produce the following documents:-
srn/04.04.2012
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Mobile Banking
RBI Instructions
Mobile banking initiatives permits to access a Bank account and carry out
various banking transactions and enquires.
SMS alert service keeps you informed/ updated about the significant activities/
transactions taken place in your account(s).
Mobile Banking service works on all GSM mobile phones that support SMS
technology.
What is "GPRS"?
The General Packet Radio Service (GPRS) is a new non-voice value added
service that allows Mobile Phones to be used for sending and receiving data over
an Internet Protocol (IP)-based network.
Interbank Mobile Payment Service (IMPS)
The beneficiary does not need to disclose his/her account and other financial
critical details to the sender.
The customer can transact on IMPS subject to a daily cap of Rs.50,000/(Rupees Fifty Thousand Only) and monthly limit of Rs.2,50,000/- (Rupees Two
Lakh Fifty Thousand Only). This amount is the overall limit for both IMPS and
non-IMPS funds transfer through mobile banking.
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Remittance Process
For Remitter (To Send Money):
Login to the IOB Mobile Banking Software and select Interbank System
(IMPS) under Funds Transfer Option.
Create / Approve Payee.
Enter Debit Account, Beneficiary Nickname, Amount and Remarks
Await confirmation SMS for the debit in the senders account
Beneficiarys account.
Note the Transaction Reference number for any future query.
For Beneficiary (To Receive Money):
Share the Mobile Number and MMID with the remitter
Check the confirmation SMS for credit to the beneficiarys account
srn/04.04.2013
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RTGS TRANSACTIONS
Customer Window:
A.
B.
C.
A customer can transfer funds through RTGS only if the amount is Rs. 2 lakh
and above.
Inter-Bank Window:
It is a channel through which bank to bank settlement takes place like funding
of clearing adjustment, LC payment, Bill Payments etc.
Line Number
Line 1
Line 2
Line 3
Details provided
RETURN
UTR number of the original transaction
Reason for return
3. If it is a local holiday for the branch or the branch has finished the day end
jobs, at the time of receipt of RTGS inward transaction(s), our Software
provides an option to keep the transaction in the Sundry Creditors A/c of
the respective branch General Ledger, automatically.
4. In such cases, immediately, after the branch does the day begin jobs on the
next working day, the entries shall be vouched to the credit of the customers
account or returned back to the senders bank through the return option
available in the system (which reverses the entry in the Sundry Creditors
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_____________________________________
and sends the message to the other Bank with full particulars of the inward
message.
5. Branches are not permitted to forward their originating RTGS customer
transactions through Inter Bank Window.
6. Message format used in RTGS for transmission of messages in respect of
customer transactions : R41
7. NEFT uses the Public Key Infrastructure (PKI) technology to assure endto-end security and the Indian Financial Network (INFINET) to connect bank
branches for electronic transfer of funds
8. The B+2 return discipline would require banks to afford credit to beneficiary
accounts immediately upon completion of a batch or else return the
transactions within 2 hours of completion of the batch settlement, if credits
are unable to be afforded for any reason
9.
RBI levy service charges for all outward transactions of RTGS members.
Rs.4000
Band
1
2
3
4
Charge per
transaction Rs.
0.50
0.40
0.30
0.10
and
(iii) time-varying tariff as follows:
Block
1
2
3
4
Charge per
transaction
Rs.
Nil
1.00
5.00
10.00
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D.
E.
9.00 hrs to
12.00 hrs
Rs.25+ ST = 28
Rs.26+ST = 29
Rs.50+ST = 56
Rs.51+ST = 57
After 15.30
hrs to 16.30
hrs
Rs.30+ST =
34
Rs.55+ST =
62
While branches originate a transaction the originator must ensure that the
funds are either received from abroad or a NRE account maintained in India
is debited, before the transaction is originated.
While remittance of funds to the credit of NRE accounts, the following steps
should be followed.
1. In the field tag 7495 (sender to receiver information), the branch should
select NRE, instead of FT available as default.
2. In case NRE is mentioned in field tag 7495, then the field tags
5516/5517 become mandatory and the details of the ordering
institutions have to be given.
3. If the field tag 7495 contains the word NRE, it is assumed that the
sending bank is certifying the source of fund and payment bank must
ensure STP
F.
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G.
Days
Customer transactions
Monday to Friday
Saturday
A gap of one hour and thirty minutes is kept between customer timings and
interbank timings to ensure that a customer transaction, where credit
cannot be afforded to the beneficiary, would have to be returned to the
senders account within one hour and thirty minutes after closing hours of
Customer mode window.
NEFT TRANSACTIONS:
NEFT has no amount restrictions and accepts cash up to Rs. 50,000 for
originating transactions. All NEFT receipts shall have the new 15-digit number;
otherwise, the receipts are liable to be rejected.
For the purpose of remitting such funds received by cash, branches should use
the code no. 50.
In our CBS system, NEFT remittances are received through a process known as
Straight-Through-Process (STP).
If the customer doesnt provide e-mail id/mobile number, branches should use
branch e-mail id.
In the case of inward NEFT transactions, if the branches are not able to apply
funds to beneficiarys account, they should return the transaction (using the
return mode available in the system) within two hours of the batch time
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_____________________________________
under which the remittance was received. The return transactions are on
B+2 basis
In the event of any delay or loss on account of error, negligence or fraud on the
part of an employee of the destination branch in the completion of funds
transfer pursuant to receipt of payment instructions by the destination branch
leading to delayed payment to the beneficiary, the destination branch has to
pay compensation at current RBI LAF Repo Rate plus 2% for the period of
delay.
In the event of delay in return of the funds transfer instructions for any reason
whatsoever, the destination branch has to refund the amount together with
interest at the current RBI LAF Repo Rate plus 2% till the date of refund.
General:
As per the revised guidelines from RBI, in the RTGS/ NEFT/ NECS/ ECS
credit transactions, the responsibility to provide correct information in
the payment instructions, particularly the beneficiary account number
information rests solely with the remitter/ originator.
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NECS/ECS-Credit
o
High value reporting : Branches have to report, well in advance, all high
value transaction of Rs.5 Crores and above (both inflow and outflow) which
are routed through NEFT/RTGS/Clearing along with the details to Money
Market Desk at Treasury over telephone.
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srn/07.05.2013
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Single premium to cover the entire duration of the loan is payable up front at
the time of disbursement of the loan or thereafter.
The premium can be loaded on to the loan amount and recovered over the
loan duration as a part of the EMI.
All new and existing Retail Loan Borrowers between 18 years to 59 years of
age as on last birthday are eligible for cover.
The first named borrowers life is covered. The premium is to be paid as per
the age of the first named borrower.
Minimum Period
Lien Period : There is no cover for the first 45 days except in the case of
death due to accident.
In the event of the death of the borrower, the insurance company will pay
the liability as per repayment schedule in the loan account and the property
will be released from the mortgage without any burden on the dependants
: 3 years
age up to 57 years :
Loan upto Rs.20 lakhs : Simple Declaration of Good Health
No medical requirements
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For others
With regard to accounts that fall under Scheme B, the branches may
forward the relevant application duly filled in along with the necessary
documents required to be furnished and the premium by means of a DD
drawn on CCO Chennai, favouring LIC OF INDIA, directly to Retail Banking
and marketing Dept., Central Office.
srn/04.04.2013
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Loan Secure
Loan Secure is an Insurance Policy. It offers protection for the Bank in the
unfortunate event of borrower being affected by
Named Critical illnesses (Major Medical Illness & Procedures)
Personal accident and Permanent total disability
Loss of job
Fire and allied perils (Dwelling & Contents)
Earthquake and Terrorism (optional covers)
The product offers coverage for the period of 3 years which can be renewed
thereafter for same period or for a minimum period of one year.
Two types of coverages are offered; 1. Fixed Sum Insured (Loan sanctioned)
2. Reducing Balance (Loan outstanding)
Medical requirements:
Free Medical Limit upto Rs.1 Crore
Pre Insurance Medical checkup for cases Rs.1 Crore and above
cases for pre-existing disease declared
Income Tax Rebate: Premium Paid Under Section - A Critical Illness will be
eligible for Tax Rebate u/s 80 D Of Income Tax Act,1969
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This is a floater policy for our individual SB, CD and NRI customers and
their immediate family members, in the age group of 3 months to 65
yrs
Upper age limit for entry is 65 years (subject to renewal cover available up
to 80 years).
As regards children, the cover is available for male child up to 21 years and
for female child upper age limit is up to 25 years or till their marriage
whichever is earlier.
Income tax benefit is available U/S 80D for the premium paid
for the first 30 days of enrolling the policy, there is no cover except in the
case of death due to accident
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Premium rates will be calculated based on the age of the Prime member
(applicant). Different age-bands viz., 0-25, 26-35, 36-45, 46-55, 56-65, 6670 and 71-80 are being introduced. For fixing the Premium, the completed
age will be taken into consideration.
USGI has extended a grace period of 15 days from the due date for
renewal of the policy. Now branches can even renew Health Care Plus polices
within 15 days from the date of expiry of the same
srn/01.01.2013
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We are at present selling gold coins to the general public as well as our staff
members including retired staff.
Source
Fineness
: 999.9 %
Price
Concessions to staff
members
srn/21.05.2013
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A. General
Nomination
Section 45ZA to 45ZF of the Banking Regulations Act. permit banks to accept
nomination in respect of Deposit accounts, Safe custody of articles and Safe
Deposit locker facility.
Variation and cancellation may be made any time during the currency of
deposit.
When a bank account holder has availed himself of nomination facility, the
same may be indicated on the passbook with the legend "Nomination
Registered". This may be done in the case of term deposit receipts also.
Claim of the nominee has to be settled irrespective of the claim from the legal
heirs unless restricted by court through a specific order.
Claim is settled in favour of nominee by closing the account and making the
payment against the nominee's discharge on stamped receipt.
B. Deposit Accounts
The nomination forms (DA1, DA2 and DA3) have been prescribed in the
Nomination Rules.
Only one individual in his / her personal capacity can be made as a nominee in
respect of particular deposit account.
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_____________________________________
Where the nominee is a minor, it shall be lawful for the depositor making the
nomination to appoint any person to receive the amount of the deposit in the
event of death of the depositor/s during the minority of the nominee.
In the case of a joint deposit account the nominee's right arises only after the
death of all the depositors.
No separate nomination need be obtained for the deposits created out of autosweep facility since the SB account from which auto sweep is made, forms the
base account for which nomination is already available.
However when the depositor wants to withdraw from the special scheme, the
existing term deposit created by auto-Sweep will be allowed to be continued as
normal deposits if the depositor so desires and at such time separate term
deposit opening form with nomination should be obtained.
D. Safe Custody
All other formalities are same as those applicable for deposit accounts.
In case of joint hirers, branch may accept more than one nominee upto the
limit of the number of joint hirers.
If the sole locker hirer nominates a person, banks should give to such nominee
access of the locker and liberty to remove the contents of the locker in the event
of the death of the sole locker hirer.
In case the locker was hired jointly with the instructions to operate it under
joint signatures, and the locker hirer(s) nominates person(s), in the event of
death of any of the locker hirers, the bank should give access of the locker and
the liberty to remove the contents jointly to the survivor(s) and the
nominee(s).
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In case the locker was hired jointly with survivorship clause and the hirers
instructed that the access of the locker should be given over to "either or
survivor", "anyone or survivor" or "former or survivor" or according to any other
survivorship clause, banks should follow the mandate in the event of the death
of one or more of the locker-hirers.
F. Preparing Inventory
Banks should prepare an inventory before returning articles left in safe custody
/ before permitting removal of the contents of a safe deposit locker. The
inventory shall be in the appropriate Forms set out for the purpose.
Banks are not required to open sealed/closed packets left with them for safe
custody or found in locker while releasing them to the nominee(s) and surviving
locker hirers / depositor of safe custody article.
srn/04.04.2013
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In case a person falling in the above category is not registered with the
Central Government, it can accept foreign contribution only after
obtaining prior permission of the Central Government.
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Every person who has been granted a certificate under Section 12 shall
have such certificate renewed within six months before the expiry of the
period of the certificate.
Such person can open one or more accounts in one or more banks for
utilising the foreign contribution received by him.
person in
prescribed
which the
such form
10. The amount of foreign contribution lying, unutilised in the exclusive foreign
contribution bank account of a person whose certificate of registration has
been cancelled shall vest with the banking authority concerned till the
Central Government issues further directions is the matter.
11. In case a person whose certificate of registration has been cancelled
transfers/has transferred the foreign contribution to any other person, the
above condition would apply to the person to whom the fund has been
transferred
12. Every bank has to send a report to the Central Government (through our
Central Office) within 30 days of any transaction in respect of receipt of
foreign contribution by any person who is required to obtain a certificate of
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registration or prior permission under the Act, but who was not granted
such certificate or prior permission as on the date of receipt of such
remittance.
13. It has been made a duty of the bank concerned to send a report to the
Central Government within 30 days from the date of such last transaction
in respect of receipt of any foreign contribution in excess of one crore
rupees or equivalent thereto in a single transaction or in transactions within
a duration of thirty days, by any person, whether registered or not under the
Act.
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srn/04.04.2013
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The rate of interest charged on the loan taken by the subscriber of a PPF
account on or after 01.12.2011 shall be 2% per annum.
A subscriber can close the account in the 16th financial year. The account
can also be continued with or without subscription, for further blocks of 5
years.
Deposits are qualified for Income Tax rebate under section 80C of Income
Tax Act.
Bank earns an income of Rs.45/ per receipt transaction and for payment
Rs.90/lakh (turnover basis).
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1. Our credit card is a global card valid not only in India and Nepal but also
throughout the world
2. Our Banks Vendor for Credit cards : M/s Yalamanchili Consultancy
Services (P) Ltd (YCS)
3. Type of Credit Cards:
Classic Cards :The cards issued with the limit slabs of Rs.10000/-,
Rs.25000/-, and Rs.50000/-
Gold Cards : The cards issued with the limits of Rs.60000/- and above
and up to Rs.500000/- ( maximum credit limit)
Rs. 10000
Rs. 25000
Rs. 50000
Rs.100000
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Per day Ceiling Cash through ATM Gold cards /Classic cards
Rs.25000/-Rs.15000/
i. Self
Rs.10.00 lac
ii. Spouse
i. Self
ii. Spouse
i. Self
Rs.4.00 lac
ii. Spouse
Rs.2.00 lac
i. Self
Rs.2.00 lac
ii. Spouse
Rs.1.00 lac
11. Compensation In case of erroneous debits arise out of fraudulent or other
transactions;
The Bank would compensate the customer even when neither the bank
nor the customer is at fault and the fault lies somewhere in the system.
Where it is established that the bank had issued and activated the
credit card without the written consent of the recipient, the bank would
not only reverse the charge immediately but also pay a penalty without
demur to the recipient amount to twice the value of charges reversed.
srn/04.04.2012
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Debit Card
1.
2.
3.
Eligible customers for using debit cards: Cards can be issued only in the
name of Individuals. The following account holders are eligible for issuance
of Debit Card.
CD Individuals Single, A or S.
4.
When a customer has forgotten his PIN and has keyed wrong PIN in any
ATM for more than 5 times his card will be blocked temporarily.
5.
The cash bins in our ATMs are configured for 50, 100 & 500
denominations notes.
6.
Withdrawal of cash from the ATM owned by the account holding bank is free
of charges to the customer.
7.
Withdrawal of cash from other Banks ATM is also possible. The charges are
given below:
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In case of Non-SB customers, there will not be any free cash withdrawals
and cash withdrawals attract service charges of Rs.20/- per transaction.
8.
The maximum number of currency notes our Banks ATM can dispense
through the dispensing slit: 40.
9.
FAST CASH: The facility to withdraw cash, in pre-defined slabs from 500 to
50000.
10. Further, Cards which have not been used for more than 6 months are
automatically blocked with Suspended status.
11. Accounts with continuous zero balance for 30 days gets automatically
blocked.
12. Insurance for Cash in ATM. The cash inside the ATM is covered under the
master policy taken by Central Office. The policy covers ATM cash up to
RS.20 lacs.
13. ATM Maintenance, Cash Management, Consumables Management and Cash
Reconciliation are outsourced(for outsourced model): TCBIL, as outsourcing
agent.
14. M/s Scientific Security Management Services Ltd., an agent of TCBIL is
the Cash Replenishment Agency (CRA).
15. In addition to the Outsourced Model, Bank is now installing ATMs through
M/s AGS Transact Technologies Ltd. under Banks Owned Model.
16. ATM branch is permitted to hold the captured card for two working days
(excluding the day of capture) only.
17. It is mandatory for the banks to reimburse the customers; the amount
wrongfully debited on account of failed ATM transactions, within a
maximum period of 7 working days from the date of receipt of the customer
complaint.
18. For any failure to re-credit the customers account within 7 working days
from the date of receipt of the complaint, the bank shall pay compensation
of Rs.100/-, per day, to the aggrieved customer, by the issuing bank.
19. Any Customer is entitled to receive such compensation for delay, only if a
claim is lodged with the issuing bank within 30 days of the date of the
transaction.
20. The complaints submitted by the customers are lodged in the online
complaint register on the same day,
21. This compensation shall be credited to the customers account automatically
without any claim from the customer, on the same day when the bank
affords the credit for the failed ATM transaction.
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22. The issuing bank is entitled to claim such compensation paid to the
customer from the acquirer bank, if the delay is attributed to the latter. By
the same logic the ATM network operators shall compensate the banks for
any delay on their part.
23. All disputes regarding ATM failed transactions shall be settled by the issuing
bank and the acquiring bank through the ATM System Provider only.
24. Other Charges
The following debit card holders are exempted from the payment of the
above Annual Maintenance Fee.
SB account holders under Special Schemes, like, SB-SILVER and SBGOLD category.
Staff Members
Annual fee of Rs.100 + service tax is collected from the Debit Card
holders only from 2nd year onwards. No fee is collected from the card
holder till one year from the date of generation of the Debit card
collect Rs.100/= plus applicable Service Tax for re-issue of cards if
lost/stolen/damaged and
Rs.20/= plus applicable Service Tax for re-issue of PINs to customers
25. Renewal of cards
Our Bank is presently issuing Debit cards with 10 years validity.
But for Student cards validity period is 5 years.
Only active Cards i.e. cards which have been used atleast once during the
past 6 months are renewed automatically.
26. Add on cards
Add on card is an additional facility provided to SB account holders
(except students accounts) that enables their family members to avail
Debit card facility for the same account, without becoming a joint holder
for that account.
Add on cards can be issued even for Joint accounts with E or S /A or
S operations, provided all the account holders sign the application.
The number of Add on cards that can be issued to an account will be
restricted to one.
The Add on card holder will be treated as a Mandate holder.
Add on card holder must be KYC compliant and branches should
obtain KYC documents
The name of the Add on cardholder cannot be added in the same
account.
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All the existing terms and conditions for normal Debit cards will apply for
Add on cards also.
only Personalised cards will be issued
Daily Cash withdrawal limit will be fixed separately for Add on cards.
Add on card holders will also be allowed to make 5 free transactions in
other Bank ATMs in a calendar month, which is similar to regular card
holders.
If the primary card is hot listed, then the add-on cards also will get hot
listed automatically.
Add on cards will be issued free of charges like normal debit cards.
However, Annual fee will be levied for usage of add on card from second
year onwards.
27. While Label ATMs:
28.
ATMs set up, owned and operated by Non-bank entities are known as
White Label ATMs" (WLAs).
This requires authorisation from RBI under the Payment and Settlement
Systems (PSS) Act 2007.
These Non-bank entities must have net worth of at least Rs 100 crore as
per the last audited balance sheet.
srn/02.05.2013
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120
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Features
Eligibility
All SB accounts,
CD/CC accounts in the name of
individuals or Proprietary concerns
Daily Cash
withdrawal
limit (Rs,)
Daily limit (Rs)
for usage in
Merchant
Establishments
(PoS)
Daily limit
(Rs.) for usage
in Internet
(E-com)
Charges for
issuance of
Card (Rs.)
Annual
Maintenance
fee
20,000
30,000
50,000
50,000
75,000
2,00,000
50,000
75,000
2,00,000
NIL
150
200
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Features
Eligibility
Daily Cash
withdrawal
limit (Rs,)
Daily limit (Rs)
for usage in
Merchant
Establishments
(PoS)
Daily limit
(Rs.) for usage
in Internet
(E-com)
Charges for
issuance of
Card (Rs.)
Annual
Maintenance
fee (Rs.)
Remarks
121
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50,000
General
All the Debit cards issued by our Bank can be used abroad
besides usage in our Country.
2,70,000
2,70,000
300
200
High spending power with a no pre-set
spending limit or a minimum of
US$6000 spending limit.
US$ 1,00,000 personal travel accident
insurance (or local currency equivalent).
srn/10.02.2013
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These declarations are not valid if PAN has not been furnished.
Tax under Section 195 has to be deducted as per rates in force or the rates
specified in the Double Taxation Avoidance Agreements (DTAA) entered
into by the Central Government, whichever is lower.
For NRO Accounts, both PAN and Country Details to be furnished for
claiming DTAA Tax rate. Otherwise, prevailing tax rate of 30.90% will be
deducted.
2. Threshold limits of payments for TDS purposes with effect from July 1,
2010 are given below:
Section
Nature of payment
194 A
Interest Payment
Threshold
limit (Rs)
10,000
Payment to Contractors
Consideration for single contract
30,000
194 C
194 H
194 I
194 J
195
TDS
rate(%)
10
1
75000
5,000
10
180000
10
2
30000
10
30.90
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41.20
42.024
3. Penalty for Failure to deduct tax : Simple Interest is payable @ 1% ( per month
or part) from the tax deductible date till date of actual deduction
4. Penalty for failure to deposit TDS: Simple Interest is payable @ 1.5% (per month
or part) for the amount from date of deduction till date of payment.
Please note that where PAN is not furnished by the deductee, the tax has to
be deducted at the applicable rates or @ 20%, whichever is higher.
Tax deducted in respect of income or amount credited or paid in the
month of March shall be paid to the credit of Central Government on or
before 30th day of April
Tax deducted in other months shall be paid to the credit of Central
Government on or before the seventh day from the end of the month
in which the tax has been deducted.
Tax deducted shall be remitted only electronically by way of internet
banking facility of any authorised Bank.
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Due date
30th June
15th July
30th September
15th October
31st December
15th January
31st March
15th May
The certificate for deduction at source shall be in Form No 16 ( for Salaries ) and
in Form No 16A ( Payments other than salaries)
TDS certificate in Form No.16 is to be issued annually whereas TDS certificate
in Form No.16A is to be issued quarterly.
TDS certificate in Form No.16A shall be compulsorily generated through TIN
central system and issued.
Form No 16A shall have to be issued quarterly, within 15 days from the due
date for submitting quarterly E TDS returns.
Duplicate TDS certificates can be issued if the original certificate is lost by the
deductee and a request is made for issue of duplicate.
For defaults in furnishing statements fee @ Rs 200/- per day till return is filed,
to be deposited before filing of such TDS return. The maximum amount of fees
leviable is up to the TDS amount.
Penalty for failure to furnish TDS statements within the time prescribed or
furnishing incorrect information in the TDS statements submitted shall be a
sum which shall not be less than Rs 10000/- and may extend to Rs 100000/-.
Income tax should be deducted at source as aforesaid only if the interest paid or
credited to each depositor exceeds Rs.10,000 (per branch) during the Financial
Year.
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For NRIs, only NRO deposits are subject to tax deduction at source. Rates for
deduction of tax from interest paid on such NRO deposits are subjected to
DTAA.
Tax need not be deducted at source from interest paid on any other deposits
held by NRIs.
wherever the depositors produce a valid Certificate issued by the Income Tax
Officer (in Form 15 AA) authorising the bank not to deduct tax at source in
respect of the person named in the Certificate, tax need not be deducted at
source in such cases
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The bank shall in accordance with the provisions of the Act, deduct tax at
source on the interest accruing on the above mentioned deposit(s) as per
existing procedure and at the rates in force.
The certificate of deduction of tax shall be issued by the bank in the name of
the depositor.
If more than one person has been directed to deposit any specified amount,
the amount of TDS shall be corresponding to each such depositor for the
portion of interest accrued in its respective share in the total amount
deposited and TDS certificates shall be accordingly issued by the bank.
At the time of making deposit of the amount ordered by the court, the
depositor(s) shall submit a prescribed declaration with the court for record
purpose and to facilitate the administration of TDS.
srn/11.04.2013
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KYC/AML
(Some points related to Foreign Exchange Transactions)
Wire Transfers
The originator is the account holder, or where there is no account, the person
(natural or legal) that places the order with the bank to perform the wire
transfer.
Cross-border transfer means any wire transfer where the originator and the
beneficiary bank or financial institution are located in different countries.
It may include any chain of wire transfers that has at least one cross-border
element.
Domestic wire transfer means any wire transfer where the originator and
receiver are located in the same country.
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Amount per
tourist/travellor
1.
$ 1000
2.
$ 1000
3.
4.
Sl.No
$ 500
NIL
All purchases made by a person within one month may be treated as single
transaction for the above purpose and also for reporting purposes.
A customer ID has to be created for the first transaction of the calendar month
and the same ID will be referred for the subsequent transactions.
In all other cases, Branches should make payment by way of 'Account Payee'
cheque/demand draft only
In all cases of sale of foreign exchange, irrespective of the amount involved, for
identification purpose the passport of the customer should be insisted upon
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and sale of foreign exchange should be made only on personal application and
after verification of the identification document.
Banks and financial institutions are required to verify the identity of the
customers for all international money transfer operations.
Maintenance of record
In case of money changing activities and cross border Inward Remittance under
Money Transfer Service Schemes, all series of cash transactions integrally
connected to each other would have been valued below Rs.10 lakh or its
equivalent in foreign currency where such series of transactions have taken
place within a month.
Banks shall maintain for at least 10 years from the date of transaction
between the bank and the client, all necessary records of transactions, both
domestic or international, which will permit reconstruction of individual
transactions (including the amounts and types of currency involved if any) so as
to provide, if necessary, evidence for prosecution of persons involved in criminal
activity.
Bank shall ensure that records pertaining to the identification of the customer
and his address (e.g. copies of documents like passports, identity cards, driving
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licenses, PAN, card, utility bills etc.) obtained while opening the account,
undertaking transactions and during the course of business relationship, are
properly preserved for at least 10 years after the business relationship is
ended/ from the date of cessation of the transactions/ business relationship.
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srn/11.04.2013
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Foreign Exchange
Authorised Dealers category II eg: Well Run & financially strong RRB,
Co Operative Banks, upgraded FFMCs etc. They are authorised to deal
only specified non-trade related current account transactions.
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Austria
6.
France
11.
Luxemburg
16.
Slovenia
2.
Belgium
7.
Germany
12.
Malta
17.
Spain
3.
Cyprus
8.
Greece
13.
The
Netherlands
4.
Estonia
9.
Ireland
5.
Finland
10.
Italy
14.
15.
Portugal
Slovakia
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(d)Mirror account.
TT Buying rate: This rate is applied to those buying transactions where the
AD has already received the foreign exchange to the credit of its Nostro
account
Bills Buying Rate: This rate is applied to those buying transactions where
AD will receive the foreign exchange to its Nostro account at a date
subsequent to the date of buying. These rates are applied when AD purchase
a cheque/Bill on DP terms drawn at a foreign centre.
TT Selling rate: applied to all transactions which do not involve handling of
documents and other instruments for collection.
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1 USD
In this home
INR 54.20
TTS
TTS
TTS
BS
***
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MERCHANT MARKET
SPOT
FORWARD
CASH
TOM
SPOT
FORWARD
The first rate is called the BID rate and the second is the Ask rate.
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Card Rates: Card rates are released by the Dealing room for various currencies
and as per extant guidelines in our Bank. They should be used for values less
than Rs. 50,000 only when finer rates are not warranted for non-customers or
for negligible value transactions. But such transactions should also be reported
to the dealing room and appropriate telex serial number should be obtained.
21. All the foreign currency assets (FCTL, WCFC, RDBF, RUBF, WCDL, etc.) and
foreign currency contingent liabilities (LC, LG, Buyers Credit, etc.) are
maintained in the CBS System,
by applying the Bills Selling Rate
prevailing on the date of transaction.
22. Actual market rate will be applied only for our foreign currency assets and
contingent liabilities.
23. Notional Rate is applied for
FCNR/EEFC/RFC/DDA Accounts.
24.
the
foreign
currency
liabilities,
i.e.
Service Tax thus collected from any customer for any forex transaction,
calculated as above, either manually or by the system shall be parked in
the above new GL head 2377. The amount available in the said GL Head
at the end of every month will be remitted to the Government account by
Central Office before 5th of succeeding month.
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The Asian Clearing Union (ACU) was established with its head quarters at
Tehran, Iran on December 9, 1974 at the initiative of the United Nations
Economic and Social Commission for Asia and Pacific (ESCAP), as a step
towards securing regional co-operation.
The ACU is a system for clearing payments among the member countries
on a multilateral basis.
The Asian Monetary Unit is the common unit of account of ACU and is
equivalent in value to one U.S. dollar.
The Asian Monetary Unit may also be denominated as ACU dollar ACU
Euro which shall be equivalent in value to one US Dollar and one Euro,
respectively.
28. There is no restriction for inward remittance of foreign exchange from other
countries to India except that it should be received through authorised
banking channels.
29. A Non-resident can be issued foreign exchange by way of TC/DD/currency
note without limit to the debit of their NRE/FCNR accounts.
30. Resident can be issued /foreign exchange by way of TC/DD/currency note
without any limit to the debit of their RFC/EEFC a/cs.
31. Cash payment is allowed against Foreign Travellers Cheque upto USD 1000
or equivalent per transaction, in tourist centre /towns and upto USD 500 in
other centres
32. CHIPS
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37. REUTER Computer based data Bank which provides access to real time
data.
38. SWIFT
SWIFT Society for World Wide Inter-Bank Financial Telecommunication
Registered Office/head quarters at LA HULPE in Brussels in Belgium.
SWIFT No. - 11 characters. Of which first 4 indicates name of the Bank.
The next 2 the code of the country, the next two the code of the city and the
last three Branch code.
Standardized format MT stands for Message Type.
M-Field Mandatory field in Swift Message
O-field Optional field in Swift Message
STP Straight through Processing
SWIFT service is available for 24 hours in a day.
Where a SWIFT message fails STP Scrutiny, there will be a need for manual
intervention which is technically known as REPAIR.
39. Foreign exchange can be released maximum 60 days ahead of the journey
date.
Compensation for delayed payment : Authorised Dealers shall pay or send
Intimation, as the case may be, to the beneficiary in two working days from
the date of receipt of credit advice / Nostro statement.
In case of delay, the bank shall pay the beneficiary interest @ 2 % over its
savings bank interest rate. The bank shall also pay compensation for
adverse movement of exchange rate, if any, as per its compensation
policy.
40. Bringing of Foreign Exchange to India
A person is permitted to bring India Foreign exchange in the form of
Currency cheque, TC/in any other form without limit. However when he
brings Foreign currency note above US$ 5000 or currency note & TC
exceeding US$ 10000 (or equivalent) he is required to submit the customs
authorities. Currency Declaration form ( CDF). The limit is per person per
visit.
41. Holding /Possessing of Foreign Exchange allowed - US$ 2000
Foreign Coins - any amount without any limit
Foreign currency & Travelers Cheque up to US$ 2000...
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A resident can send or take out side India Indian Currency up to RS 7500/per person. Similarly a resident on a temporary visit abroad can bring in to
India Indian currency up to Rs.7500/-. However these limits are not
applicable for visit to/from Nepal/Bhutan. In respect of Nepal & Bhutan
there is no limit of taking out or bringing in Indian Currency note up to
denomination 100. A resident can take outside India Commemorative coins
not exceeding two coins each.
Similarly currency of Nepal & Bhutan can be taken out of India or brought
to India without any limit.
43. Submission of returns;
STAT - 10
Monthly
ENC
Fortnightly
XOS
Half Yearly
BEF
Half Yearly
IBS
Quarterly
EBW
Half yearly
Form - A1
Form - A2
Form A3
Form A4
44. Packing credit can be given at a concessional rate for a maximum of 360
days.
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As per RBI directive, the premium under Whole Turnover post shipment
has to be borne by Banks themselves. For packing credit cover, insurance
premium is borne by the exporters/customers.
For any limit sanctioned to any exporter customer exceeding the above
discretionary limit, the same is to be notified to ECGC and their prior
approval is to be obtained.
47. Forward contracts: are hedging tools to insulate against the foreign
exchange movements. The same is available to all exporters, importers,
residents and non-residents. Forward contracts can be booked based on the
underlying contract or based on the past performance subject to conditions.
SME units and resident individuals are permitted to book forward
contracts even without underlying contract subject to conditions.
Ad branches should obtain the forward contract agreements for every
contract entered into with the customer and forward a copy of the same
to Treasury(foreign) on the same day without fail.
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AD branches should diarise for the due date of the contracts and ensure
delivery as per contract terms. At no cost, delivery should be made
after the due date.
Forward contracts will be automatically cancelled on the 3rd working day
after the maturity date of the contract. For the purpose of computing the
working days, Saturdays will be excluded.
If the contract is cancelled on the 3rd day at the instance of
Treasury(foreign), the loss so incurred will be passed on to the branch,
for recovery from the customer.
If for any reason, the delivery could not be made by the customer before
the due date of contract, which will amount to cancellation. AD branches
should inform Treasury (foreign) about the same.
exporters are allowed to cancel and rebook forward contracts to the
extent of 25 percent of the contracts booked in a financial year for
hedging their contracted export exposures
48. Persons Resident in India: Section 2(u) of FEMA provides the definition of
Persons Resident in India. It states that:
Persons Resident in India means:
i.
A person residing in India for more than 182 days during the course of
the preceding financial year but does not includeA. A person who has gone out of India or who stays outside India, in
either case:
a. For or on taking up employment outside India, or
b. For carrying on outside India as business or vocation outside
India, or
c. For any other purpose, in such circumstances as would indicate
his intention to stay outside India for an uncertain period;
B. A person who has come to or stays in India, in either case, otherwise
than
a. For on taking up employment in India, or
b. For carrying on in India a business or vocation in India, or
c. For any other purpose, in such circumstances as would indicate
his intention to stay in India for an uncertain period;
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49. when a person resident outside India, who has established in India in
accordance with the Foreign Exchange Management (Establishment in India of
Branch or Office or other Place of Business) Regulations, 2000, a branch,
office or other place of business, excluding a liaison office, acquires any
immovable property in India in accordance with the provision of said
regulation, the said person has to file with the Reserve Bank a declaration in
the form IPI to those regulations, not later than ninety days from the date
of such acquisition
50. A person resident outside India who is a citizen of India or a Person of Indian
Origin (PIO) acquiring immovable property in India under General Permission
need not submit Form IPI.
51. A person resident in India is free to hold, own, transfer or invest in foreign
currency, foreign security or any immovable property situated outside India if
such currency, security or property was acquired, held or owned by such
person when he was resident outside India or inherited from a person who
was resident outside India.
52. An investor can retain and reinvest the income earned on investments made
under the Liberalised Remittance Scheme.
53. For the purpose of converting foreign assets/deposits for reporting in
Form A Return for maintenance of CRR- banks may be guided by the RBI
Reference rate announced on the Reserve Banks web site at around 12:30
pm (instead of indicative rates announced by FEDAI at 12 noon). The change
may be brought into effect from the reporting fortnight ending July 13, 2012.
54. Facility of non-resident guarantee under the general permission for non-fund
based facilities (such as Letters of Credit/guarantees/Letter of
Undertaking (LoU) /Letter of Comfort (LoC) ) entered into between two
persons resident in India is available. The method of discharge of liability by
the non-resident guarantor under the guarantee and the subsequent
repayment of the liability by the principal debtor would continue, as hitherto,
as detailed in A.P. (DIR Series) Circular No. 28 dated March 30, 2001.
55. Remittance of salary
A citizen of a foreign state, resident in India, being an employee of a foreign
company or a citizen of India, employed by a foreign company outside India
and in either case on deputation to the office/branch/subsidiary/joint venture
in India of such foreign company may open, hold and maintain a foreign
currency account with a bank outside India and receive the whole salary
payable to him for the services rendered to the office/branch/subsidiary/joint
venture in India of such company, by credit to such account, provided that
income tax chargeable under the IT act 1961 is paid on the entire salary as
accrued in India
srn/01.05.2013
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When a person resident in India leaves India for a country (other than Nepal
or Bhutan) for taking up employment or for carrying on business or vocation
outside India or for any other purpose indicating his intention to stay
outside India for an uncertain period, his existing account should be
designated as a Non- Resident (Ordinary) Account.
When a person resident in India leaves for Nepal or Bhutan for taking up
employment or for carrying on business or vocation or for any other
purposes indicating his intention to stay in Nepal or Bhutan for an uncertain
period, his existing account will continue as a resident account. Such
account should not be designated as Non-Resident (Ordinary) Account
(NRO).
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Where the account holder is only on a temporary visit to India, the account
should continue to be treated as non-resident during such visit.
Persons going abroad for studies are treated as Non-Resident Indians (NRIs)
and are eligible for all the facilities available to NRIs. Educational and other
loans availed of by them as residents in India will continue to be available to
them as per FEMA Regulations
H. Transfer of Funds from Non-Resident Ordinary (NRO) account to NonResident External (NRE) Account
NRI shall be eligible to transfer funds from NRO account to NRE account
within the overall ceiling of USD one million per financial year subject to
payment of tax, as applicable.
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1. Non-Resident Indian (NRI) and Persons of Indian Origin (POI) are eligible to open
NRE accounts. (Individuals / entities of Bangladesh / Pakistan nationality/
ownership require prior approval of RBI)
2. Joint account
3. Nomination facility
Available. The nominee can be a resident or a non-resident or even a foreign
national. ADs are delegated with powers to allow repatriation of settled funds to
the non-resident nominee
4. Currency in which account is denominated
Indian Rupees
5. Eligible credits in the NRE accounts
a.
b.
c.
ii.
d.
e.
f.
NRI shall be eligible to transfer funds from NRO account to NRE account
within the overall ceiling of USD one million per financial year subject to
payment of tax, as applicable. Such credit of funds shall be treated as
eligible credit to NRE accounts.
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g.
h.
i.
j.
k.
l.
m.
6. Repatriability
Balance available in NRE accounts is repatriable
7. Type of Accounts
Savings, Current, Recurring, Fixed Deposit
8. Period for fixed deposits
Deposits are accepted for the following maturities;
1 year to less than 2 years;
2 years to less than 3 years;
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If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left
unclaimed with the bank will attract savings bank rate of interest
Conversion of NRE deposit into FCNR(B) deposit and vice versa before
maturity should be subject to the penal provision relating to premature
withdrawal
Banks are not permitted to allow the benefit of additional interest rate on
any type of deposits of non-residents including staff members
11.
Overdue period is more than 14 days - Interest for the overdue period is paid
separately at simple rate prevailing on the date of deposit or renewal
whichever is lower applicable for the period of overdue.
The deposit amount should be placed as fresh deposit at least for the
minimum period for which such deposits are accepted.
If an overdue deposit renewed after paying the interest for the overdue period
is closed before completing the minimum period for which such deposits are
accepted, no interest is paid on the deposit and the interest paid for the
overdue period is also recovered.
12.
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Repatriate funds outside India from the account to a person other than the
depositor himself.
Advances to third parties against such deposits should not be granted on the
basis of Power of Attorney
13.
Loans
Rupee loans in India and Foreign currency Loan in India & outside India
can be allowed to depositor/third party without any ceiling subject to usual
margin requirements
srn/01.05.2013
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A. Nature of Deposit
The deposits under the Scheme mean term deposits received by the bank for a
fixed period and withdrawable only after the expiry of the said fixed period and
includes Reinvestment Deposits and Cash Certificates or other deposits of
similar nature. Recurring Deposits should not be accepted under the FCNR(B)
Scheme.
B. Non-Resident Indian (NRI), may be permitted to open FCNR(B) account with
their resident close relative (relative as defined in Section 6 of the Companies
Act, 1956) on former or survivor basis. The resident close relative shall be
eligible to operate the account as a Power of Attorney holder in accordance with
extant instructions during the life time of the NRI/ PIO account holder.
C. Exchange risk in respect of FCNR(B) accounts is to be borne by the bank.
D. Other features of the Schemes
a. AD banks in India are permitted to accept FCNR (B) deposits in any
permitted currency by RBI A.P. (DIR Series) Circular No. 36 dt.October 19,
2011. It may be noted that 'Permitted currency' for this purpose would mean
a foreign currency which is freely convertible as defined in FEMA.
b. In our Bank the Scheme covers deposits in Pound Sterling, US Dollar,
Canadian Dollar, Australian Dollar, EURO, Japanese Yen, Newzealand
Dollars(NZD) and Swiss Francs(CHF) from non-resident individuals of Indian
nationality or origin (NRIs).
c. Minimum amount of Deposits:
USD : 1000
AUD : 1000
GBP : 1000
CAD: 1000
EUR : 1000
JPY
: 100,000
NZD : 1000
CHF : 1000
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ii.
The benefit of additional interest on any type of deposits of nonresidents should not be allowed.
G. Quantum of loans
Rupee loans in India and Foreign currency Loan in India & outside India
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ii. In the event of the payment of the deposit being claimed before the
maturity date, the bank should pay interest at an applicable rate
prevailing on the date of placement of the deposit, without charging
penalty;
iii. In the event of death of the depositor before the date of maturity of the
deposit and the amount of the deposit being claimed after the date of
maturity, the bank should pay interest at the contracted rate till the date
of maturity. From the date of maturity to the date of payment, the bank
should pay simple interest at the applicable rate operative on the date of
maturity, for the period for which the deposit remained with the bank
beyond the date of maturity.
iv. However, in the case of death of the depositor after the date of maturity of
the deposit, the bank should pay interest at a rate operative on the date
of maturity in respect of savings deposits held under RFC Account
Scheme, from the date of maturity till the date of payment;
v. If, on request from the claimant/s, the bank agrees to split the amount of
term deposit and issues two or more receipts individually in the name/s
of the claimant/s, it should not be construed as premature withdrawal of
the term deposit for the purpose of levy of penalty provided the period
and aggregate amount of the deposit do not undergo any change.
Note: In the case of claimant/s being residents, the maturity proceeds may be
converted into Indian rupees on the date of maturity and interest be paid for the
subsequent period at the rate applicable to a deposit of similar maturity under
the domestic deposit scheme.
H. Addition or deletion of name/s of joint account holders
At the request of all the joint holders, branches can allow the addition or
deletion of name/s of joint account holder/s if the circumstances so warrant or
allow an individual depositor to add the name of another person as a joint
holder. However, in no case should the amount or duration of the original
deposit undergo a change in any manner whatsoever. The bank should
ascertain the reasons from the applicants for doing so and also satisfy
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themselves about the bona fide nature of the request. Further, opening of
accounts in the names of Pakistani/Bangladeshi nationals, though of
Indian origin, will require approval of the Reserve Bank from the exchange
control angle.
H. Payment of interest on FCNR(B) deposits of NRIs on return to India
Banks should convert the FCNR(B) deposits on maturity into Resident Rupee
Deposit Account or RFC Account (if eligible) at the option of the account
holder.
I. Conversion of FCNR(B) Accounts of Returning Indians into RFC Account Waiver of Penalty
The penal provisions would not be applicable in the case of premature
conversion of balances held in FCNR(B) deposits into Resident Foreign Currency
Accounts by Non-Resident Indians on their return to India.
J. Rate of Interest
Maturity
Period
1 year to less
than 3 years
3 - 5 years
Existing
Revised
The benefit of additional interest rate on any type of deposits of nonresidents should not be allowed. No additional interest for account of staff
members also.
K. Prohibitions
srn/21.04.2013
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FEDAI Rules
FEDAI :
Registered as non-profit making company under the provisions of Sec 25 of
Companies Act
Head Office at Mumbai and local offices at Chennai, Delhi, Calcutta and
Bangalore
Objective: to regulate the dealings of ADs, both interse & with public,
brokers, RBI & all other bodies.
Fix business hours
Rule 1 : Hours of Business
The exchange trading hours for Inter-bank forex market in India would be
from 9.00 a.m. to 5.00 p.m.
Customer transactions are undertaken by the ADs only upto 4.30 p.m. on all
working days.
Cut-off time limit of 05.00 p.m. is not applicable for cross currency
transactions
For the purpose of Foreign Exchange business, Saturday will not be treated
as a working day
Known holiday is one which is known at least 2 working days before the
date. A holiday that is not a known holiday is defined as a suddenly
declared holiday.
Interest for the normal transit period and/or usance period shall be
recovered upfront simultaneously
For crystallisation of FC liability into Rupee liability, the AD shall apply its
TT selling rate of exchange
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The conversion of foreign currency proceeds of export bills sent for collection
or of goods sent on consignment basis shall be done at prevailing TT buying
rate or the forward contract rate, as the case may be.
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If the fixed date of delivery or the last date of delivery option is a known
holiday; the last date for delivery shall be the preceding working day.
Extension of contract:
Foreign exchange contracts where extension is sought by the customers
shall be cancelled (at an appropriate selling or buying rate as on the date
of cancellation) and rebooked simultaneously only at the current rate of
exchange.
The difference between the contracted rate, and the rate at which the
contract is cancelled, shall be recovered from/paid to the customer at the
time of extension.
Such request for extension shall be made on or before the maturity
date of the contract.
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srn/07.04.2013
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Exports
DGFT operated under the Ministry of Commerce and it lays down policies
and regulations relating to physical movement of goods into/from India.
If the goods to be exported are not under (Open General License) OGL, the
exporter should have the required license/quota permit to export the goods.
Declaration as regards export of goods and services:Every exporter of goods or software in physical form or through any other
form, either directly or indirectly, to any place outside India, other than
Nepal and Bhutan, shall furnish to the specified authority, a declaration in
one of the forms set out in the Schedule and supported by such evidence as
may be specified, containing true and correct material particulars including
the amount representing
GR forms
GR forms should be completed by the exporter in duplicate and both the
copies submitted to the Customs at the port of shipment along with the
shipping bill.
Within 21 days from the date of export, exporter should lodge the
duplicate copy together with relative shipping documents and an extra
copy of the invoice with the AD Category I banks named in the GR form.
After the documents have been negotiated / sent for collection, the AD
Category I banks should report the transaction to Reserve Bank in
statement ENC.
The duplicate copy of the form together with a copy of invoice etc. shall
be retained by the AD Category I banks and may not be submitted to
Reserve Bank.
SDF
The SDF should be submitted in duplicate (to be annexed to the relative
shipping bill) to the Commissioner of Customs concerned, for exports
declared to Customs Offices notified by the Central Government which
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PP Forms
The manner of disposal of PP forms is the same as that for GR forms.
Postal Authorities will allow export of goods by post only if the original
copy of the form has been countersigned by an AD Category I banks.
Therefore, PP forms should be first presented by the exporter to an AD
Category I banks for countersignature.
The AD Category I banks will countersign the forms after ensuring that
the parcel is being addressed to their branch or correspondent bank in
the country of import and return the original copy to the exporter, who
should submit the form to the post office with the parcel.
The duplicate copy of the PP form will be retained by the AD banks to
whom the exporter should submit relevant documents together with an
extra copy of invoice for negotiation/collection, within the prescribed
period of 21 days.
AD Category I banks may, however, countersign PP forms covering
parcels addressed direct to the consignees, provided:
An irrevocable letter of credit for the full value of the export has been
opened in favour of the exporter and has been advised through the AD
Category I banks concerned or
The full value of the shipment has been received in advance by the
exporter through an AD Category I banks or
The AD Category I bank is satisfied, on the basis of the standing and
track record of the exporter and the arrangements made for
realisation of the export proceeds, that he could do so.
ACU Mechanism
Participants in the Asian Clearing Union will have the option to settle
their transactions either in ACU Dollar or in ACU Euro
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Extension of Time
Reserve Bank of India has permitted the AD Category I banks to extend
the period of realisation of export proceeds beyond 12 months from the
date of export, up to a period of six months, at a time if the AD Category
I bank is satisfied that the exporter has not been able to realise export
proceeds for reasons beyond his control.
In cases where the exporter has filed suits abroad against the buyer,
extension may be granted irrespective of the amount involved /
outstanding.
Interest rate on export credit in foreign currency has been de-regulated with
effect from May 5, 2012.
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i.
Export of Currency
Any export of Indian currency of value exceeding Rs.7500/- will require
prior permission of Reserve Bank.
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Submission of statements:
XOS Statement giving details of export bills outstanding beyond 6
months from the date of export as at the end of June and December every
year.
EBW Statement A half yearly return to report the details of write offs of
export bills
BEF Statement - furnishing details of import transactions exceeding
USD 100,000 in respect of which importers have defaulted in submission
of appropriate document evidencing import within 6 months from the
date of remittance.
In case of all imports, where value of foreign exchange remitted/paid for
import into India exceeds USD 100000 or its equivalent, it is obligatory
on the part of the AD branches through whom the relative remittance
was made, to ensure that the importer submits;
a. The exchange control copy of the bill of entry for home consumption
or
b. The exchange control copy of the bill of entry for warehousing, in case
of 100% EOU units or
c. Custom Assessment Certificate or Postal Appraisal form as evidence
that the goods for which the payment was made have actually been
imported to India.
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Direct Export
Deemed Export
srn/20.05.2013
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Import of Goods and Services into India is being allowed in terms of Section
5 of the Foreign Exchange Management Act 1999
AD Category I banks should ensure that the imports into India are in
conformity with the Foreign Trade Policy in force and Foreign Exchange
Management (Current Account Transactions) Rules, 2000.
Except for goods included in the negative list which require license under the
Foreign Trade Policy in force, AD Category - I banks may freely open letters
of credit and allow remittances for import.
Where foreign exchange acquired has been utilised for import of goods into
India, the AD Category I bank should ensure that the importer furnishes
evidence of import viz., Exchange Control copy of the Bill of Entry, Postal
Appraisal Form or Customs Assessment Certificate, etc., and satisfy himself
that goods equivalent to the value of remittance have been imported
Remittances against imports should be completed not later than six months
from the date of shipment, except in cases where amounts are withheld
towards guarantee of performance, etc.
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AD Category I bank should not make remittances where import bills have
been received directly by the importers from the overseas supplier where the
value of import bill exceeds USD 300,000.
srn/04.04.2013
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INCOTERMS
Define responsibilities for carriage, customs clearance and risk, including who
pays for loading onto and from transport, and the production of documents.
Define delivery. Such delivery may be a useful start point for any credit given to
the customer.
Shorten the contract of sale: simply refer to the term of delivery and the
INCOTERMS edition (e.g. FOB Incoterms 2000).
The risks of the various legs of transport are assigned to the customer or seller in
Incoterms. It follows that the party taking the risk will buy insurance for the risk of
loss or damage in transit.
INCOTERMS OUTLINED:
There are 11 different INCOTERMS and they have been grouped into 4 different
categories.
Group 1 - The E Term (Departure)
EXW - Ex Works
Under this shipping term the seller provides the goods for collection by the
buyer at the seller's own premises.
This term requires the least effort by the seller, but should not be used where
the buyer cannot carry out export formalities.
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_____________________________________
The seller must deliver the goods to a carrier appointed by the buyer and
located in the seller's country.
In this group the seller assumes the responsibility for the main contract of
carriage.
These terms provide for the seller contracting for carriage on usual terms at his
own expense.
In the terms CIF and CIP the seller arranges and pays for insurance against
damage to the goods in transit.
In this group the seller has to bear all costs and risks of bringing the goods to
the country of destination.
The seller arranges and pays for insurance against damage to the goods in
transit.
1. Ex-Works (Ex-Factory.EX-Godown):
When such a price is quoted, it is stipulated that the foreign buyer should take
delivery of the goods at the exporter's premises and all the risks and expenses
thereafter should be borne by him ie. the exporter is responsible for the delivery
of the goods at his works or factory. The other cost and risk involved in bringing
the goods from the place of the exporter to the desired destination will be on the
buyer's account. This term represents the minimum responsibility and
obligation.
2. FCA (Free Carrier-named point):
This term is used particularly in case of "multimodal" transport. The seller's
responsibility is fulfilled when he delivers the goods into the custody of the
carrier at the named point.
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10.
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_____________________________________
Letter of Credit
_____________________________________
_____________________________________
_____________________________________
i. Paying Bank or Nominated Bank : The Bank nominated and authorised by the
issuing Bank to make payment under the LC.
e. Reimbursing bank: The Bank authorised to honour the reimbursement claim
in settlement of negotiation/ acceptance/payment. It is normally the Bank with
which issuing Bank maintains an account, from where payment will be made.
B. Different types of LC
On the basis of availability of documents, there are two types of LC s
1.Documentary
Credit :It is made available to the beneficiary against
submission of documents as stipulated in the LC by him.
2.Clean LC ; When a letter of credit does not require to have documents of
title to bills drawn under it.
1. Irrevocable credit
2. Irrevocable confirmed credit
3. Revolving credit
4. Transferable LC
5. Back-to-back credit
6. Anticipatory Credit
a. Red clause LC
b. Green clause LC
7. Stand by LC
8. Payment Credit
9. Acceptance Credit
10. Deferred Payment LC
1. Irrevocable credit: The issuing Bank commits itself irrevocably to
honour its obligation under the credit, provided the beneficiary complies
with all conditions. As per UCPDC 600, LC means only irrevocable LC.
2. Irrevocable confirmed credit: The confirming bank undertakes to
honour its commitment regardless of whether or not the issuing Bank is
in a position to reimburse the amount specified in the LC.
3. Revolving credit: It is a commitment on the part of the Issuing Bank to
restore the credit to the original amount after it has been utilised. It is
either cumulative or non-cumulative. The revolving is restricted to
certain number of times.
4. Transferable LC : The beneficiary specified in the transferable LC has
the option of requesting the transferring bank/advising bank to transfer
the credit fully or in part to another beneficiary/many beneficiaries.
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OUTWARD REMITTANCES
1. General
Outward remittances refer to flow of foreign exchange out of India. Thus all
sales of foreign exchange result in outward remittances.
For release of foreign exchange to persons resident in India for travel abroad,
authorized dealers are to be guided by the Rules made by the Govt. of India
under Section 5 of Foreign Exchange Management Act, 1999 which are detailed
in terms of Foreign Exchange Management (Current Account Transactions)
Rules, 2000 notified by the Government of India.
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_____________________________________
5.
Authorised dealers can release foreign exchange upto the respective prescribed
limit as given below without RBIs prior permission.
Purpose
ADs discretion
USD 100,000
2. For emigration
USD 100,000
USD 100,000
USD 10000
5. Business travel
USD 25000
USD 25000
USD 25000
USD 100,000
USD 100,000
Foreign exchange
journey date
6. Liberalised
individuals
remittance
upto
USD
2,00,000/-
for
resident
In February 2004, the RBI introduced the scheme permitting the resident
individual to remit upto USD 25,000 in a calendar year for any current or
capital account transaction. The amount was further enhanced on different
dates and the latest during September 2007 to USD 2,00,000 per financial year.
Only resident Indians are permitted to avail remittance facility under
Liberalised Scheme. Individual who are minors are also eligible under the
scheme. But Corporates, partnership firms, HUFs , Trusts are not
eligible
Under Liberalized remittance scheme, residents are permitted to remit up to
USD2,00,000 per financial year for current/capital account transactions.
Any resident individual intending to avail this remittance facility has to
designate a branch of an AD through which he has to make all remittances
under this scheme.
Remittance for Gifts and donations can be included under Liberalised
remittance scheme.
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The remittances under the scheme are over and above all other remittances
allowed to resident individuals as described in Schedule III of FEMA.
The remittance can be used for investment in mutual funds, venture funds,
unrated debt securities, promissory notes, bank accounts, for closure of loan
taken abroad etc.
Remittance under Liberalised scheme should not be made to:
a) Nepal, Bhutan, Mauritius or Pakistan or any country declared by FATF
(Financial Action Task Force) as non-cooperative countries.
b) Any purpose prohibited under FEMA
c) Remittance to individuals committing acts of terrorism.
7. Gift in Rupees by Resident Individuals to NRI close relatives
A resident individual to make a rupee gift to a NRI/PIO who is a close
relative of the resident individual [close relative as defined in Section 6 of the
Companies Act, 1956] by way of crossed cheque /electronic transfer.
The gift amount would be within the overall limit of USD 200,000 per
financial year as permitted under the Liberalised Remittance Scheme (LRS)
for a resident individual.
It would be the responsibility of the resident donor to ensure that the gift
amount being remitted is under the LRS and all the remittances under the
LRS during the financial year including the gift amount have not exceeded
the limit prescribed under the LRS.
8. A Non-resident can be issued foreign exchange by way of TC/DD/currency note
without limit to the debit of their NRE/FCNR accounts. Resident can be
issued /foreign exchange by way of TC/DD/currency note without any limit to
the debit of their RFC/EEFC a/cs.
9.
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10.
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_____________________________________
Payment in Rupees
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srn/18.05.2013
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1. SWIFT
SWIFT No. - 11 characters. Of which first 4 indicates name of the Bank. The
next 2 the code of the country, the next two the code of the city and the last
three Branch code.
MT
MT
MT
MT
MT
MT
MT
MT
- 103
- 110
- 111
112
- 450
- 700
- 701
- 950
Charges
in Rs.
150
200
1000
500
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_____________________________________
9.
10.
11.
12.
Under Money Transfer Service Scheme (MTSS) the remitters and the
beneficiaries are individuals only
Any single remittance under the scheme shall not exceed US$2500/- or its
equivalent.
3. MONEY HOME
A lock box facility enables the remitter in the US to effect quick remittance
to India. This product ensures hassle free remittance from U.S. to reach the
beneficiary within five working days.
Our Treasury (foreign) dept. at Central Office, after sighting the respective
credit in our nostro account will remit the proceeds to the branch concerned
with whom the beneficiary maintains his/her account by way of an IBSA for
the net amount.
4. e- CASH HOME
e-CASH HOME facilitates on line credit to accounts.
The facility is also extended for credit to accounts not only with our Bank
but also to accounts with any Bank in India.
The unique feature of this product is that the remitter and beneficiary need
not be a customer of IOB.
The remitter has to log on to our Banks web site www.iob.in and register
himself/herself, upon which an individual login-id unique to that particular
remitter will be generated by the system.
Thereafter the remittance particulars are keyed in after which the remitter
authorises debit of the amount to his bank account.
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The debit is carried out through Automated Clearing House (ACH) platform
in vogue in USA and our nostro account is credited.
5. Xpress Money
The beneficiary has to submit Receive Now (RN) form to the designated
branch for claiming the amount and shall prove his identity by producing
valid photo identity.
The branch will make the payment after verification of transactions, identity
etc.
Payment Procedure:
On receipt of claim in RN form from the beneficiary. Branch should call for
and verify any one of the photo identity of the beneficiary such as passport,
driving license, ration card, voters ID, PAN card, etc.
Branches debits their TTPR a/c. (TT Paid Reimbursable account code
2567) while making payment to the beneficiary and eliminates the Debit
Entry on receipt of IBSA from Rupee Section, treasury (foreign) dept.
No charges should be collected from the receiver at the time of payment even
if the same is paid by way of DD. DD should be issued in favor of receiver
only.
These remittances are not treated as foreign inward remittances and hence
they should not be credited to NRE accounts and are not available for
repatriation.
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_____________________________________
6. MoneyGram
Our Bank has entered into an arrangement with M/s UAE Exchange &
Financial Services Ltd, Bangalore for introduction of a web based remittance
product named MoneyGram. 8 digit reference number is given.
These remittances are not treated as foreign inward remittances and hence
they should not be credited to NRE accounts and are not available for
repatriation.
7. EZ REMIT
Our Bank has entered into an arrangement with M/s BFC Forex & Financial
Services Pvt Ltd, Mumbai promoted by Bahrain Finance Company, Bahrain
for introduction of a web based remittance product named EZ REMIT.
Branches should then take up with Treasury (Foreign) Dept. with the basic
details like amount of remittance, reference number (12 digit PIN number,
etc.), name of remitter, name and address of beneficiary, country of origin,
etc. and Agent Code (supplied by the service provider) through CHAT
facility.
Make payment to the customer as per the procedure, we follow for Xpress
money service.
These remittances are not treated as foreign inward remittances and hence
they should not be credited to NRE accounts
Salient features:
The remitter abroad shall use WUFS agent in his country to remit the
amount along with the applicable charges in the necessary application
form.
The remitter is provided with a 10 digits Money Transfer Control
Number and he has to inform the number and remittance details to the
receiver/beneficiary.
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The transaction is then entered by them into the central system of WUFS
which will be accessible to any WUFS sub agent including IOB
The beneficiary has the option of drawing the amount in any of the
branches of IOB
The branch will make the payment after verification of transaction,
identity etc.
No charges shall be collected from the beneficiary at the time of payment
9. Draft drawing arrangements with various Exchange Houses and Banks.
A/c
No.
110
107
109
97
113
77
112
114
86
111
A/c No.
240
510
525
Treasury (Foreign) loads the DD-ISSUE DATA files that are being received
from PEH into the core server on a daily basis.
The branches should use the program Payment of DDs- Private Exchange
Cos & Banks only, available in CBS menu (Module:fets Prog-name : exch).
Only the branches in the drawing arrangements should use this option and
only for payment of Rupee drafts issued by PEH and the three banks.
_____________________________________
_____________________________________
_____________________________________
The branches with drawing arrangements while matching the details of the
draft in CBS menu, the system will generate a corresponding credit, which
will be posted automatically.
However, in case of drafts issued by the three Banks listed above, even if the
data is not available, the system would permit the users to pay the draft and
the users should ensure that they enter the details in full in the relevant
columns for prompt reconciliation.
In order to comply with AML requirements and for a better follow up, our
Bank advised all the Exchange Companies to restrict issuance of rupee
drafts upto Rs.5.00 lacs.
srn/07.04.2013
Back to index
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_____________________________________
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General Advances
1. Loans sanctioned to NBFCs for on-lending to individuals or other entities
against gold jewellery, are not eligible for classification under agriculture
sector.
2. Recommendations towards improvement of agricultural advances was given
by R.V.Gupta Committee
3. Ceiling for single Borrower Limit (Other than Infrastructure Projects)
Category of borrower
Individual /Proprietary
Concerns/ Trust/Society*
Maximum
Limit
Rs.100 Crores
Partnership firms
Ship Breaking Industry*
Film Industry*
Aviation Industry*
Rs.400 Crores
Rs.400 Crores
Rs.100 Crores
Rs.500 Crores
NBFCS*
RBI.
Rs.300 Crores
registered
with
20% of capital
Funds
10%/15% of
Capital Fund for
single NBFC/NBFC
AFC Asset Financing
Company)
7.5% of Banks
Capital Funds.
_____________________________________
_____________________________________
_____________________________________
Maximum
Limit
Rs.100 Crore
Rs.400 Crore
Rs.300 Crore
20% of Capital
Funds
@ 25% of capital
Funds
Maximum Limit
Maximum limit
with approval
45% of capital
Funds
For Infrastructure
projects
55% of capital
Funds
In the case of NBFCs, the Bank will restrict its aggregate exposure to
10% of gross domestic advances subject to single borrower exposure not
exceeding Rs.300 Cr. The exposure will include FB, NFB advances and
investments.
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Sub-ceiling
Commercial Real Estate excluding liquirent CRE :Lendings secured by mortgages on commercial real estates
(office buildings, retail space, multipurpose commercial
premises, multifamily residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, land
7%
acquisition, development and construction etc.) (excluding
liquirent CRE).
Liquirent CRE
Commercial Real Estate (Total)
Liquirent Non-CRE
Hotels, Hospitals and investment in Mortgaged Backed
Securities (MBS)
and other securitised exposures
Housing direct (includes total of residential mortgagesexcept indirect housing loans)
Housing Indirect
Non-Commercial Real Estate (Total)
Real Estate CRE & Non CRE (Total)
3%
10%
3%
3%
10%
4%
20%
30%
11.
Single/group Prudential exposure limits do not apply if the credit
facilities proposed fall under the following categories:
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_____________________________________
_____________________________________
ii.
In such cases (mentioned under i & ii above), the exposure can be upto
single borrower limit under prudential norms
13. Loans granted with repayment period (including holiday period) of 12
months and below are classified as Short Term Loans.
14. Loans granted with repayment period (including holiday period) of more
than 12 months are classified as Term Loans.
15. The maximum period for repayment of term loans other than Housing loan
shall not generally exceed 120 months including the holiday period. This
may however be increased upto 180 months for large projects involving
longer gestation period.
16. Financing MBA & Engineering Colleges
New accounts where the aggregate of the proposed credit facilities
(FB+NFB) is Rs.5 crore or above: grading has to be obtained from
ICRA Ltd.
17. Loans to Hotels and Hospitals
Loans to Hotels and Hospitals are not classified under Commercial Real
Estate sector if the ventures are run by the borrower themselves.
_____________________________________
_____________________________________
_____________________________________
20.
22.
In respect of MCC against immovable properties, sanctioning
authorities can prescribe lower margin at 40% subject to RBI guidelines
and subject to 2 out of 3 parameters mentioned below being complied with.
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_____________________________________
_____________________________________
25.
A cap of 10% on Bank's Tier 1 capital is fixed for the bank as a whole for
issuing such guarantees.
26.
Bank will sanction bridge loans to companies for a period not exceeding
one year against expected equity flows/issues.
Bank will also extend bridge loans against the expected proceeds of NonConvertible Debentures, External Commercial Borrowings, Global
Depository Receipts and/or funds in the nature of Foreign Direct
Investments, provided the borrowing company has already made firm
arrangements for raising the aforesaid resources/funds
27.
All the Branches are provided with User Ids and password for drawing
the reports in Consumer segment from CIBIL.
After obtaining CIBIL report, branch should also ensure that the
borrower(s) / guarantor(s) names do not appear in the CIBIL DETECT
list which is available with Regional Offices.
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_____________________________________
_____________________________________
Approval grid :
It should be ensured that the Chairman of the Grid is not the credit
sanctioning/processing authority.
At Central Office all new credit proposals falling beyond the powers of
HLCC(GM) and Overseas credit proposals are referred to an Approval
Grid before being recommended to sanctioning authorities.
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Entry Level Rating for new proposals: For considering sanction of new
proposals of Rs.1 crore and above by Branches and RLCC, the credit
rating should be equivalent to IOB-5 and above (internal RAM rating) or
BBB and above (external rating by RBI approved rating agency).
Minutes of the meetings of RLCC, HLCC (GM) and HLCC (ED) shall be
reported to next higher committee respectively.
CSSD
HLCC (GM)
CSSD
RLCC
Frequency Of Meeting:
The committees shall meet on a weekly basis and as and when
required.
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_____________________________________
_____________________________________
32. Powers to grant excess are vested with Regional Head, GM, ED and CMD.
33. Since adhoc limits involve appraisal and documentation, such limits shall
be sanctioned by the respective Credit Approval Committees
34. Proposals with limits above Rs.1 crore (irrespective of Corporates or
Others) shall be routed through Approval Grid at Branch / Regional Office
before sanction by RLCC
35. Delegation of powers
The sanctioning authority shall exercise his/her delegated powers only
after regular loan proposals are prepared, needs assessed, compliance of
KYC norms and duly recommended at least by one officer of the bank
other than the sanctioning authority.
In single man branches, advances sanctioned by Branch Head under
Special Credit Schemes, Industrial and trade sectors require pre release
clearance by the Regional Head.
Rejected/declined proposals by higher authorities should not be
entertained at lower levels even if such sanctions fall within lower
functionaries delegated powers.
Proposals declined by one Branch or RO should not be entertained by
another Branch or RO without prior clearance of the Branch or RO which
has declined the proposal earlier.
The powers delegated to Branch Heads to sanction credit limits are
with reference to the scale of the sanctioning authorities only and not
in relation to the size of the Branch.
36. Discretionary power II line functionaries in branches
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_____________________________________
_____________________________________
Pensioners loan.
Kissan Credit Card scheme.
37. The project launched in Tiruvallur and Nagapattinam Districts of
Tamilnadu to achieve Total Inclusive Growth for integrated Rural
development covering all aspects of social and economic life of people. : IOB
-Sampoorna'
38. With a view to simplify access to Bank Credit by exporters, especially small
and medium exporters, RBI has drawn up a scheme, in consultation with
select Banks and exporters.: Gold Card Scheme
39.
Trade Credit
o
Limit to traders upto which Balance sheet need not be insisted :Rs 1
lakh
40. A scheme for easy credit to High net worth Corporates will be continued to
be given thrust. : " Insta Fund ". Margin 10%
41. Term loan/project financing
The maximum period for repayment of term loans shall not generally
exceed 120 months including the holiday period. This may however be
increased upto 180 months for large projects involving longer gestation
period
Gestation/Holiday period for various project loans will vary from 3
months to 36 months.
However on any account the gestation
period should not go above 36 months.
Debt Service Coverage Ratio: While the desirable ratio would be
above 2:1, average DSCR of 1.5: 1 with minimum DSCR of 1.2: 1 can
be accepted on merits.
Solvency ratios: In general, debt equity ratio of less than 2:1 and
Total outside Liabilities to Tangible Net Worth (TOL/TNW) ratio of less
than 4:1 will be considered as reasonable requirements for any credit
proposal. These bench marks will generally be observed for new
connections.
42. Appraisal Of Infrastructure Projects
The desirable debt equity ratio is 3.5 to 4:1 and relaxation can be
given on case-to-case basis.
Likewise while the desirable and ideal DSCR ratio would be above 2:1,
an average DSCR of 2.0 with a minimum of 1.50 in any year can be
accepted.
Back to index
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_____________________________________
For Term Loans (for standalone Term Loan as well as Term Loan
sanctioned with other facilities) upfront fee @1.02% should be collected
in lieu of processing charges.
Commitment charges
Commitment charges @0.50% p.a will be levied uniformly for all the
working capital Fund Based, Non Fund Based limits and Term loan of
Rs.50 lakhs and above from the Banking System.
Such levy will be on the unutilised portion of the working capital FB and
NFB limits subject to tolerance level of 20% of each limit.
With regard to Term Loans, wherever the drawal is not made as per the
draw down schedule by the borrowers, commitment charges will be
levied on the undrawn amount if the undrawn amount is more than
20% of the amount committed for drawal
44. Lending Banks to ensure that the borrowing firms are making payments
of their statutory dues in time, strictly in compliance
of
the
provisions of the relevant statutes.
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_____________________________________
_____________________________________
45.
Construction Industry:
In case of construction industries the extant RBI guidelines based on
Accounting Standard (AS.7) issued by Institute of Chartered
Accountants of India (ICAI) is followed to arrive at the permissible bank
finance for borrowers with fund based working capital limits beyond Rs 2
crore.
Current Ratio: While it is desirable for a current ratio of 1.33:1 (1.25:1 for
MSE) as a benchmark, lower current ratio can be considered acceptable
on a case-to-case basis depending upon the components and quality of
current assets and current liabilities.
48.
For sanctioning CC against book debts the age of which are not more
than 120 days, the minimum margin should be : 25%
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_____________________________________
_____________________________________
51.
Bills Financing
Bills financing facilities will be treated as a part of working capital
finance and accordingly, the bills limit shall be assessed and appraised
within the overall working capital limits sanctioned to the borrower
The Bills purchased/ discounted in respect of 'services'' will be treated
as unsecured advances for the purpose of exercise of discretionary
powers.
However, wherever such facilities are supported by collateral
securities, they will be construed as secured advances only for
balance -sheet /audit purposes
52.
The pricing of loan facilities above a prescribed cut-off are linked to the
rating of the borrowal account.
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_____________________________________
_____________________________________
In our bank, it has been put in place to rate all eligible performing
borrowal accounts with credit limits (Fund based and / or Non Fund
based) of Rs. 1 Crore and above (Rs. 2 crore and above in case of Micro
and Small Entrepreneurs accounts)
TOP ratings of SMERA, CRISIL, CARE, ICRA & BRICK WORK enjoy
interest concession of 0.25% on the applicable rate.
NSIC with a view to encourage rating provides 75% subsidy in the fee
charged by top rating agencies for the first year
53.
_____________________________________
_____________________________________
_____________________________________
56. Banks and notified All India Financial institutions are required furnish
details on wilful defaulters to RBI. The cut off limit for reporting willful
defaulters is Rs.25 lacs and above.
57. The exposure to hotels, hospitals etc. where the repayment primarily
depends on the operating profit from the business operations, quality of
goods and services; need not be treated as Commercial Real Estate (CRE).
58. Whenever the limits in the nature of loan for acquisition of capital assets
(other than working capital limits) sanctioned to a public limited company
or to a private limited company which is its subsidiary, together with its
other term loan borrowings exceed its paid up capital and free reserves, the
approval of such company in General Body Meeting is to be obtained for
such excess borrowings. Every such general body resolution delegating
power to borrow must specify the total amount outstanding at one time up
to which moneys may be borrowed by the company.
59. Definition Of Group:
a. As per RBI guidelines, the concept of Group and the task of
identification of the borrowers belonging to specific industrial groups is
left to the perception of banks / financial institutions. The guiding
principle in this regard being commonality of management and effective
control.
b. A group is defined by invoking associate/sister concern concept.
c. Where a proprietor or partner of a firm/director of one company is
proprietor or partner of another firm/director of another company, they
are called as associates falling within the purview of group concept.
d. Where a proprietor or partner of a firm /a director of one company/ a
company
is the guarantor of
another partnership firm/another
company where the guarantor has no financial stake (or has no
commonality of management and effective control ), then they are not
to be treated as associates falling within the purview of group concept.
e. Where common director /partners are employees/ institutional
nominees/ or have no financial stake, the group concept will not apply.
f. In case of common guarantors if they have substantial interest i.e 51%
or more stakes in one or any of the common concerns, then the account
should be treated as associate concern.
60. Advance against gold coins
All the coins offered for loan should be appraised properly as done in
case of other jewel loans. Branch should take an undertaking from the
borrower that he / she has no objection to the gold coins being taken
_____________________________________
_____________________________________
_____________________________________
out of the sealed packets for the purpose of appraisal and is fully aware
that the coins cannot be repacked.
61. Advance against bullion: Gold loan in the form of Bullion can be extended
to domestic jewellery manufacturers /traders for 3 months to 6 months for
working capital purposes.
62. No advances should be granted by the Bank for purchase of gold in any
form, including primary gold, gold bullion, gold jewellery, gold coins, units
of gold Exchange Traded Funds (ETF)
63. Charging/Compounding Of Interest On Loans And Advances
As per RBI guidelines, interest for all the loans and advances are to be
charged at monthly rests except agricultural advances and DRI Small
loans.
Fresh sanction/enhancement
45 days
Renewal
30 days
Adhoc limits
16 days
srn/10.05.2013
Sanctioning
authority
Br/RO
4 weeks
Br/RO
30 days
45 days
90 days
BR
RO
CO
Back to index
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RATIO ANALYSIS
Ratios should be computed only for those relationships that are significant from a
bankers point of view.
Ratios are only financial indicators. These indicators point the necessity for
investigation.
Types of Ratios
The financial position of a firm can be described by studying its long term and short term
liquidity position, profitability and its operational activity.
Therefore the ratios can be generally classified into the following five broad categories:
A.
B.
C.
D.
E.
Liquidity Ratio
Solvency Ratio
Profitability Ratio
Activity ratios or Turnover Ratios
Leverage ratio
A. Liquidity Ratios
Liquidity Ratio indicates the ability of the business to pay its short term liability.
Traditionally two ratios are used to highlight the business liquidity. They are
Current Ratio and Quick Ratio.
a. Current Ratio
Current Ratio =
Current Assets
Current Liabilities
Current Liabilities include Creditors for goods and services, Short Term
Loans, Book overdrafts, outstanding expenses etc. These liabilities mature
for payment within next 12 months.
The objective of finding of this ratio is to know as to whether the business
unit does have enough current assets to meet the payment schedule of its
current debts with a margin for possible losses.
Bench mark of this ratio is
1.33 : 1
Generally, Solvency Ratio is determined to find out Long Term solvency of a firm.
_____________________________________
_____________________________________
_____________________________________
b. Proprietary Ratio
Proprietary Ratio =
C. PROFITABILITY RATIOS
Gross Profit
Net Sales
X 100
X 100
Operating Profit
Net Sales
X 100
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_____________________________________
_____________________________________
PBIT
Capital Employed
X 100
Average total assets are calculated by dividing the sum of total assets at the
beginning and at the end of the financial year by 2.
Total assets at the beginning and at the end of the year can be obtained from
year ending balance sheets of two consecutive financial years.
Thus higher values of return on assets show that business is more profitable.
This ratio should be used only to compare companies in the same industry.
When a firm proposes to acquire expensive plant and equipment analysis is
made on its profitability using this ratio.
D. TURNOVER RATIOS
These are also known as performance ratios. This indicates how effectively the
facilities available to the firm are being utilized.
These ratios are usually calculated on the basis of sales or cost of sales.
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_____________________________________
_____________________________________
b. Debtors velocity
Debtors velocity =
c. Creditors Velocity
Shows relation between net credit purchases and average payables (trade
creditors & bills payable)
Net credit purchases
Creditors velocity =
Average Payables
Debt Payment period =
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_____________________________________
_____________________________________
Net sales
Capital employed
E. LEVERAGE RATIOS:
A company is said to be highly geared when its fixed charge bearing funds are
disproportionately higher compared to shareholders funds.
A high ratio increases yield on equity. At the same time, if the firm is not able to
earn adequate profit, the debt may not be serviced and push the firm to debt
crisis.
_____________________________________
_____________________________________
_____________________________________
_____________________________________
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_____________________________________
For the purpose of priority sector loans small and marginal farmers
include landless agricultural labourers, tenant farmers, oral lessees and
share-croppers, whose share of landholding is within above limits
prescribed for Small and Marginal Farmer.
Agriculture
Education
Housing
Export Credit
Others
Targets:
Categories
Total Priority
Sector
Total
agriculture
Enterprises
(MSE) Micro &
Small
_____________________________________
_____________________________________
_____________________________________
The outstanding Bank Credit in India minus bills rediscounted with RBI
and other approved Financial Institutions plus
permitted non-SLR
bonds/debentures in Held to Maturity (HTM) category plus investments in
other categories, which are eligible to be treated as part of priority sector
lending (eg. investments in securitised assets).
For foreign banks with 20 and above branches, priority sector targets and
sub-targets have to be achieved within a maximum period of five years
starting from April 1, 2013 and ending on March 31, 2018
The targets for Micro Enterprises within the Micro and Small Enterprises
segment (MSE) will be computed with reference to the outstanding credit
to MSE as on preceding March 31st.
_____________________________________
_____________________________________
_____________________________________
This
will
include
traditional/non-traditional
horticulture and allied activities.
plantations,
plantations,
b. Medium & long-term loans for agriculture and allied activities (e.g.
purchase of agricultural implements and machinery, loans for
irrigation and other developmental activities undertaken in the farm,
and development loans for allied activities).
_____________________________________
_____________________________________
_____________________________________
ii.
iii.
iv.
v.
vi.
ii.
iii.
iv.
_____________________________________
_____________________________________
_____________________________________
v.
vi.
vii.
viii.
ix.
ii.
iii.
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_____________________________________
_____________________________________
Education
Housing
i.
ii.
iii.
iv.
The loans sanctioned by banks for housing projects exclusively for the
purpose of construction of houses only to economically weaker
sections and low income groups, the total cost of which do not exceed
10 lakh per dwelling unit.
For the purpose of identifying the economically weaker sections
and low income groups, the family income limit of 1,20,000 per
annum, irrespective of the location, is prescribed.
Bank loans to Housing Finance Companies (HFCs), approved by
NHB for their refinance, for on-lending for the purpose of
purchase/ construction/ reconstruction of individual dwelling
units or for slum clearance and rehabilitation of slum dwellers,
subject to an aggregate loan limit of 10 lakh per borrower,
provided the all inclusive interest rate charged to the ultimate
borrower is not exceeding lowest lending rate of the lending bank
for housing loans plus two percent per annum.
The eligibility under priority sector loans to HFCs is restricted to
5% of the individual banks total priority sector lending, on an
ongoing basis. The maturity of bank loans should be co-terminus
with average maturity of loans extended by HFCs. Banks should
maintain necessary borrower-wise details of the underlying
portfolio.
Export Credit
Export Credit extended by foreign banks with less than 20 branches will
be reckoned for priority sector target achievement.
Back to index
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_____________________________________
As regards the domestic banks and foreign banks with 20 and above
branches, export credit is not a separate category under priority sector.
Others
i.
ii.
iii.
iv.
v.
vi.
Weaker Sections
Priority sector loans to the following borrowers will be considered under
Weaker Sections category: Small and marginal farmers;
Artisans, village and cottage industries where individual credit limits
do not exceed 50,000;
Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now
National Rural Livelihood Mission (NRLM);
Scheduled Castes and Scheduled Tribes;
Beneficiaries of Differential Rate of Interest (DRI) scheme;
Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY);
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_____________________________________
_____________________________________
Beneficiaries under
Scavengers (SRMS);
the
Scheme
for
Rehabilitation
of
Manual
Bank credit to MFIs extended on, or after, April 1, 2011 for on-lending to
individuals and also to members of SHGs / JLGs are priority sector
advance under respective categories viz., agriculture, micro and small
enterprise, and 'others', as indirect finance, provided;
not less than 85% of total assets of MFI (other than cash, balances
with banks and financial institutions, government securities and
money market instruments) are in the nature of qualifying assets.
In addition, aggregate amount of loan, extended for income
generating activity, is not less than 75% of the total loans given by
MFIs.
ii.
iii.
iv.
v.
_____________________________________
_____________________________________
_____________________________________
vi.
The foreign banks with less than 20 branches, which fail to achieve the
priority sector targets are required to contribute to funds with SIDBI or
with other Financial Institutions, for such other purpose as may be
stipulated by RBI.
_____________________________________
_____________________________________
_____________________________________
No. Category
(a)
Type of
Assets
Equipment
and current
assets
(b)
Fire
Fire
Fire
Equipment
and current
assets
Equipment
Current
Assets
srn/08.05.2013
**************
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_____________________________________
MSME advances
All advances granted to units in the KVI sector, irrespective of their size
of operations, location and amount of original investment in plant and
machinery will be brought under Small enterprises segment within the
priority sector
Target:
a. 40% of total advances to small enterprises sector should go to micro
(manufacturing) enterprises having investment in plant and machinery
upto Rs. 10 lac and micro (service) enterprises having investment in
equipment upto Rs. 4 lac
b. 20% of total advances to small enterprises sector should go to micro
(Manufacturing) enterprises with investment in plant and machinery
above Rs. 10 lac and upto Rs. 25 lac and micro (service) enterprises
with investment in equipment above Rs. 4 lac and upto Rs. 10 lacs.
_____________________________________
_____________________________________
_____________________________________
IOB SME Policy covers only the MSE (Micro and Small Enterprises)
_____________________________________
_____________________________________
_____________________________________
5:1
5:1
3:1
Internal Scoring Model to be used for credit limits upto Rs.2 crore and
Risk Assessment Model for limits of Rs.2 crore and above.
Margin: No margin for loans upto Rs.50,000/Loan above Rs.50,000/- TERM LOANS (margin)
a.
b.
Branch Managers upto the level of scale IV can sanction secured credit
facilities to MSE units by taking collateral securities to a minimum extent
of 60% of the limits sanction.
25 lacs
All Branch Managers can sanction collateral free loans to MSE sector
with CGTMSE cover, upto their per borrower limits.
_____________________________________
_____________________________________
_____________________________________
IOB SME Advance Term Loan Sanction Scheme to fulfill the felt
needs of SME borrowers and is designed to facilitate our SME borrowers
to procure the new/additional machinery without delay or hassle. Max
amount. Rs.25 lacs
Branches may seek "Due Diligence" report for SMEs with turnover of Rs.1
core lakhs to Rs. 25 crores from CRISIL or Dun & Bradstreet
Online application facility is available in the website in MSME module
under Corporate Banking.
This application can be filled in and submitted ONLINE by a MSME
borrower to the branch of his choice and location.
As per IBA guidelines, receipt of MSME applications has to be
compulsorily ONLINE and branches have to not only acknowledge
receipt of applications online but also update the status of MSME
applications received and processed to enable the applicant to track
the status of the application.
On submission, a unique application ID number will be generated and
this number has to be noted for tracking the application status and
for all future correspondence.
The applicant should submit hard copy of the application along with
all requisite documents within 7 days from the days from the date of
uploading his application to the branch chosen in the online
application.
Credit Ratings And Interest Concession:
Our Bank extends interest rate concessions to MSME borrowers rated by
the following 5 external rating agencies only:
1.CARE
2. CRISIL
Top ratings of all the above rating agencies enjoy interest concession of
0.25% on the applicable rate
The interest concession for top three ratings of SMERA is as follows;
Under NSIC - D & B - SMERA Ratings
Rating Indicator
Interest
concession on
the applicable
rate
SE 1A
0.25 %
SE 1B, SE 2A
0.25 %
SE 2B, SE 3A
0.25 %
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_____________________________________
_____________________________________
SMERA Ratings:
Rating Indicator
Interest
concession on
the applicable
rate
MSME 1
0.25 %
MSME 2
0.25 %
MSME 3
0.25 %
NSIC with a view to encourage rating provides 75% subsidy in the fee
charged by top rating agencies for the first year.
Time frame for Disposal of loan application:
For limits upto Rs.2 lacs within 2 weeks
For limits above Rs.2 lacs and upto Rs.5 lacs within 4 weeks
For limits above Rs.5 lacs within a reasonable frame of time
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_____________________________________
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Back to index
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_____________________________________
Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
In terms of the recommendations made by the High Level Committee on Credit to
SSI(1998) headed by Shri.S.L.Kapoor, Government of India and SIDBI had jointly
set up a new Guarantee Corporation- " Credit Guarantee Fund Trust for small
Industries (CGTSI) with effect from 1.8.2000 to cover advances to SSI units.
Subsequent to the enactment of MSMED Act 2006 the Trust has been renamed as
the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and
the Scheme is known as the Credit Guarantee Fund Scheme for Micro and Small
Enterprises
The credit guarantee Scheme offers a better alternative to collateral based lending
as major portion of credit risk is shared by CGTMSE. Further CGTMSE guaranteed
portion of the advance carries Zero risk weight and attracts no provision in case the
advances become NPAs
1.
2.
3.
_____________________________________
_____________________________________
_____________________________________
For loans of Rs.50 lacs and above, the account should be internally rated
and should be of investment grade.
4.
5.
Guarantee Fee
In respect of SSI borrowers who are enjoying credit limits upto Rs.10 lakhs
and covered under the CGTMSE, the onetime guarantee fee (Presently
1.5%) should be initially borne by the borrower. On good conduct of the
account the one time guarantee fee remitted by the borrower will be
reimbursed to them after a period of five years from the date of remittance
or at the closure of loan/ facility whichever is earlier. In case if the original
limits are less than Rs.10 lakhs and subsequently due to enhancements if
the limits are above Rs.10 lakhs then the reimbursement is restricted only
for limits upto Rs.10 lakhs .
6.
Women, Micro
Enterprises and units
in North East Region
(incl. Sikkim)
Others
0.75%
1.00%
0.85%
1.00%
_____________________________________
_____________________________________
_____________________________________
If the Trust agrees to continue the guarantee, the MLI has to pay penal
interest on the fee due and unpaid, with effect from the due date, at 4%
over Bank Rate, per annum, or at such rates specified by the Trust from
time to time, for the period of delay.
7.
Annual Guarantee Fee of all new borrowal accounts under MSE sector
upto a credit limit of Rs 1 crore is borne by our Bank w.e.f 25.02.2013.
Payment of Fees
_____________________________________
_____________________________________
_____________________________________
9.
CLAIMS
Invocation of guarantee
The Banks may invoke the guarantee in respect of eligible credit facility if the
following conditions are satisfied.
a.
b.
The lock in period of 18 months from either the date of last disbursement
of the loan to the borrowers or the date of payment of guarantee fee
whichever is later.
c.
The amount due and payable to the bank in respect of the credit facility
has not been paid and the dues have been classified by the lending
institution as NPA
d.
The loan facility has been recalled and the usual recovery proceedings
have been initiated.
e.
f.
As per modified CGS If the account has become NPA after lock- in period,
claim should be made within one year (2 years in case of loans sanctioned
on or after 01.01.2013) from the date of NPA. If the account has become
NPA within the lock-in period, the claim should be made within one year
(2 years in case of loans sanctioned on or after 01.01.2013) from the date
of expiry of lock-in period
g.
_____________________________________
_____________________________________
_____________________________________
h. The trust shall pay 75% of the guaranteed amount within 30 days. The
trust will pay interest on the eligible claim amount at the prevailing Bank
rate for the period of delay beyond 30 days. The Balance 25%of the
guaranteed amount will be paid on conclusion of recovery proceedings by
the Bank, i.e.as soon as the decree in respect of the civil suit is awarded.
i.
j.
MLIs, however, should undertake to refund any amount received from the
unit after payment of full guaranteed amount by CGTMSE.
RSF II facility will provide guarantee cover to MSE borrowers with a credit
limit of above Rs. 100 lacs and upto Rs.200 lacs through select MLIs. Our
bank has agreed to be a partner in the RSF II scheme and we have signed
a MOU with CGTMSE
_____________________________________
_____________________________________
_____________________________________
Total claim payable for overall credit limit of Rs.200 lacs will range from
Rs.100 lacs to Rs.120 lacs (amount in default)
All other terms are as applicable under the existing credit guarantee
scheme of CGTMSE
The scheme will be in operation upto 30th June ,2013 and shall be
extended as may be decided by CGTMSE.
***************************
srn/07.05.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
Letter of Guarantee
General
Guarantees shall be issued by the Bank on behalf of customers only.
No bank guarantee will normally have duration of more than 10 years
Bank Guarantees can be classified as under:
1. Specific guarantees: Bank Guarantees may be issued to cover a single
transaction only.
2. Continuing guarantees: A Guarantee which extends to a series of transactions
is called a Continuing Guarantee.
_____________________________________
_____________________________________
_____________________________________
Margin:
Minimum cash margin for Performance Guarantee is : 10%
Minimum cash margin for financial guarantee
: 25%
Discretionary Power:
Letter of Guarantee with 100% margin by way of Cash/Deposit as per terms of
sanction may be issued provided there is no onerous clause in the L.G;
Letters of Guarantee with less than 100% margin by way of deposits or cash
and /or any other immovable properties of any value or personal guarantee as
per terms of sanction may be issued provided there is no onerous clause in the
LG.
By Branch Manager if the validity period including claim period is upto and
inclusive of 3 years
By RLCC if the validity period including claim period is upto and inclusive of
5 years.
By HLCC (GM) if the validity period including claim period is more than 5
years.
In respect of Export Advances / Export Oriented Units, when term loans are
sanctioned for import of machinery under EPGC Scheme and LC limits are
sanctioned favouring DGFT, sanctioning authority will have the power to
sanction / issue LG with a validity period to cover the period within which the
export obligations is to be completed even though the same is more than the
period indicated above.
srn/11.05.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
In order to identify the sick viable units at an early stage and to implement
rehabilitation package to such viable units ,RBI vide their notification
01.11.2012 has advised fresh guidelines for rehabilitation of sick MSE units for
implementation by banks.
The MSE units which could not be revived after intervention by branch at the
`handholding stage` need to be classified as sick subject to complying with any
one of the two conditions as given below and based on a viability study the
viable/potentially viable units be provided rehabilitation package.
Definition of Sickness:
A Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to
have become Sick, if:
Any of the borrowal account of the enterprise remains NPA for 3
months or more
OR
There is erosion in the net worth due to accumulated losses to the extent
of 50% of its net worth during the previous accounting year.
The decision on viability of the unit should be taken at the earliest but not
later than 3 months of becoming sick under any circumstances.
Enterprises, having investment in plant and machinery upto Rs. 5 lacs and
Micro (Service) Enterprises having investment in equipment upto Rs. 2 lacs,
the Branch Manager may take a decision on viability and record the same,
along with the justification
_____________________________________
_____________________________________
_____________________________________
The capacity utilisation is less than 50% of the projected level in terms of
quantity or the sales are less than 50% of the projected level in terms of
value during a year.
1
2
Interest on existing
Term Loan
Financing for
purchase of Gensets
on soft terms, specialty
in power deficit states.
3
Interest on fresh
Rehabilitation Term Loan
(RTL). (For Small
manufacturing units f o r
start up expenses and
margin for working capital).
Interest on Contingency
Loan Assistance to meet
escalations in capital
expenditure under the
rehabilitation scheme.
_____________________________________
_____________________________________
_____________________________________
Interest on Working
Capital Term Loan
(WCTL).
Interest on Funded
Interest Term Loan
(FITL).
11
14
Waiver of Penal
Interest
Rephasement of
existing Term Loan
15 Approval
from
ECGC/CGTMSE
wherever applicable
extend
the
srn/17.03.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
242
_____________________________________
_____________________________________
Target Group
Purpose
Quantum
Rate of Interest
MAXIMUM LOAN
Rs.100 Lacs
As applicable to working capital facility for MSE
from time to time.
Prime: Assets created out of loan
Collateral : NIL
Security
Margin
Repayment
Holiday period
Priority status
Yes
Yes
Yes
Discretion
Remarks
_____________________________________
_____________________________________
_____________________________________
Name
Sanjeevini
Target Group
Purpose
Quantum
Rate of Interest
BR + 3.00%
Security
Margin
Repayment
Holiday period
Priority status
Discretion
Remarks
Hyp. of equipments
Upto 2 lacs nil : > 2 lacs Immovable
property/NSC/LIC to cover 100% of
advance
Equipments-15-25%
Construction-25-30%
BR + 0.75%
BR + 1.75%
IOB ENGINEER
Civil Engineers
(Individuals upto 65 yrs of age)
Proprietorship Concern.
Partnership Firm.
Partnership with Limited Liability.
To construct office premises
To purchase furniture & fixtures, fittings
and office equipments such as computers,
printers, plotters, books & Other accessories
etc.
To Purchase Centering sheets, Spans, props,
Column box etc.,
To purchase Constructional Machineries like
J.C.P Rollers, Vibrators, Mixer Machines,
drillers, earth Rammers, Other equipments,
etc.,
Yes
ADV/96/1.4.2002
_____________________________________
243
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of Interest
Security
Margin
Repayment
Holiday period
Priority status
Discretion
Remarks
_____________________________________
IOB SAGARLAKSHMI
_____________________________________
244
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
245
_____________________________________
_____________________________________
Purpose
Quantum
Rate of
Interest
Up to Rs 2 lakhs
BR + 0.75%
Rs 2 lakh to below Rs 25 lakhs
BR+ 1.75%
Above RS 25 Lakhs - below Rs 1 Cr BR+ 2.25%
Rs 1 Cr - below Rs 2 Cr
BR +2.75%
Security
Margin
Repayment
Holiday
period
Priority status
Discretion
Remarks
Up to Rs 2 lakhs
BR + 0.75%
Rs 2 lakh to below Rs 25 lakhs
BR+ 1.75%
Above RS 25 Lakhs - below Rs 1 Cr BR+ 2.25%
Rs 1 Cr - below Rs 2 Cr
BR +2.75%
3 months
3 months
Yes
Per borrower limit or maximum
specified in the scheme whichever is
lower.
No processing charge.
To be covered under CGTMSE
_____________________________________
Yes
Per borrower limit or maximum
specified in the scheme whichever is
lower.
Processing charge - applicable.
To be covered under CGTMSE
MOU
with
13.05.2014
ALL
is
valid
upto
_____________________________________
IOB - CA
Chartered Accountants & Practicing Cost and
works accountants individually / jointly or
Proprietorship concern or a Partnership
Firm/Partnership
with Limited
Liability
registered with ICAI, engaged in the profession
of Accounting/Audit etc.,
Purchase Car, construction of office premises,
acquire ready built office premises, cover cost
of land and construction, purchase furniture
& fixture, fittings and office equipments,
computers, Books and other accessories, etc.,
towards working capital and financing
receivables
Varies from Rs.10 Lacs to Rs 125 Lacs
depending on the category.
Up to Rs 2 lakhs
BR + 0.75%
Rs 2 lacs to below Rs 25 lakhs
BR+ 1.75%
Above RS 25 Lacs - below Rs 1Cr BR+ 2.25%
Rs 1 Cr - below Rs 2 Cr
BR +2.75%
No collateral security up to Rs.10 Lacs.
Collateral security may be taken for loans
above Rs.10 Lacs, if not covered under
CGTMSE guarantee scheme.
_____________________________________
Name
Target
Group
Purpose
Quantum
Rate of
Interest
Security
Margin
Repayment
Holiday
period
Priority
status
Discretion
Remarks
_____________________________________
<= 5yrs
> 5 yrs
Up to Rs 2 lakhs :
BR + 0.75% BR +1.00%
Rs 2 lacs to < Rs 25 lacs BR+ 1.75% BR+2.00%
Up to Rs 2 lakhs :
BR + 0.75%
Rs 2 lakhs to below Rs 25 lakhs BR+ 1.75%
246
_____________________________________
3 months
3 months
3 months
Yes
Yes
Yes
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of Interest
Security
Holiday period
Priority status
Discretion
Remarks
No Security
Nil
_____________________________________
up to Rs. 5 Crores
BR + 1.75%
Margin
Repayment
247
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of Interest
Security
_____________________________________
Priority status
Yes
Discretion
Margin
Repayment
Holiday period
Remarks
15% on road
3 to 5years
Upto 3months
248
_____________________________________
IOB Bounty
ATMs/Cash Dispenser Vendors/
Manufacturers/ Suppliers who are in operation
for more than 3 years in the field of installation
& maintenance of ATMS/Cash Dispensers
Term Loan for ATMs/Cash Dispensers
(installed & maintained by Vendors) under
transaction cost model
75% on the total cost of machine including
cost of preparation and erection of the site
subject to a maximum of Rs 4.50 Lacs per
machine
Base Rate + 3.00%.
The Loan will be secured by hypothecation of
ATM/Cash Dispenser
The receivables of the Vendor to be charged to the
Bank. In case, the amount is not directly
received from the Sponsor Bank through Escrow
Account, Collateral equivalent to the loan
amount to be obtained by the Branch in the
form of liquid/immovable properties.
Personal Guarantee of the Directors in their
individual capacity must be obtained.
25% on the total cost of machine including cost
of preparation and erection of the site
60 months
6 moths
Yes
Sanction of Loan can be considered only at the
Regional Office Level
Processing charge as applicable to fund based
advances
Loan amount upto Rs. 1crore can be covered
under CGTMSE
Processing charges : Non-rural branches: Amount Rs. 25,000 to Rs.2 lacs Rs.168/- & Rural branches Rs.134/Above Rs.2,00,000 - Rs.204/lac
&
Rs.153/lac
_____________________________________
Back to index
_____________________________________
_____________________________________
2.
RBI has issued directions to the bank on financial inclusion and is made
mandatory.
This is a new business model which will provide low cost banking
services to a vast population
financial
inclusion
through
_____________________________________
_____________________________________
_____________________________________
b.
c.
d.
Post Offices
e.
Companies registered under the Indian Companies Act, 1956 with large
and widespread retail outlets, excluding Non Banking Financial
Companies (NBFCs).
b.
c.
d.
e.
The tenure of agreement is for a period of one year initially and can be
renewed by the Regional Office concerned.
_____________________________________
_____________________________________
_____________________________________
c. In case a need is felt to relax the distance criterion, the matter can be
referred to the District Consultative Committee (DCC) of the district
concerned for approval. Where such relaxations cover adjoining districts,
the matter may be referred to the State Level Bankers' Committee (SLBC),
which shall also be the competent forum for metropolitan areas.
d. BC should function at a specific address, which can be shifted with the
prior consent of the Bank.
e. A Board should be displayed at the place of the Business Correspondent
with details of name of the Bank, Branch and the Business
Correspondent concerned.
f. A separate Cash Credit account under CC Smart scheme (under GL
Code 3007) will be opened by the branch in the name of approved BC for
routing all smart card based operations of customers.
g. This is only a transit account and no interest is charged.
h. No cheque book is issued under CC Smart Scheme.
i.
j.
k. BC should remit cash into his Transit account at the branch at the end
of every day or whenever the cash on hand exceeds the prescribed limit
l.
BC should not charge any fee to the customers for the services rendered
by them on behalf of the Bank.
m. Bank will remain responsible to the customer for the acts of omission
and commission of the BC/BF.
8.
_____________________________________
_____________________________________
_____________________________________
j.
_____________________________________
_____________________________________
_____________________________________
This is done through biometric Smart Cards and the POS machines
which get linked to the central server through mobile connectivity
M/s Tata Consultancy Services (TCS) Ltd is the service provider of our
Bank.
Account holders are issued Smart cards and BCs are issued master
smart card and POS by the service provider.
The maximum transaction per account per card per day is pegged at
Rs.2000 with a minimum of Rs.50 at present.
He can receive or pay cash anytime during day or night as per mutual
convenience of himself and the account holder
To see that the cost has a relationship to the growth in business and,
hence, the profitability of the Bank.
_____________________________________
_____________________________________
_____________________________________
Branch official visiting the village should be equipped with a laptop with
Virtual Private Network (VPN) connectivity to the CBS.
The connectivity between the laptop at Ultra small branch and banks
networks should be established through GPRS/2000 1X.
Under this scheme, an identified branch gives credit facilities and noncredit inputs in the village.
It is also with the objective that on getting training, youth will launch
profitable micro-enterprises and enhance their own standards of living
and thereby contribute to the overall national economy.
_____________________________________
_____________________________________
_____________________________________
to
provide
free
financial
Face-to-face interaction and also through other available media like email, fax, mobile, etc. as per convenience of the interested persons;
To educate the people in rural and urban areas with regard to various
financial products and services available from the formal financial
sector;
To make the people aware of the advantages of being connected with
the formal financial sector ;
To formulate debt restructuring plans for borrowers in distress and
recommend the same to formal financial institutions, etc.
Banks have set up FLCCs, particularly in those districts where they have
lead bank responsibility.
*********************
srn/23.04.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
NBFC-MFIs are required to maintain not less than 85 % of their net assets
as Qualifying Assets.
NBFC-MFIs were also required to ensure that the aggregate amount of loans
given for income generation is not less than 70 % of the total loans
extended. 30% of the total loan can be for other purposes such as housing
repairs, education, medical and other emergencies.
The maximum variance permitted for individual loans between the minimum
and maximum interest rate cannot exceed 4 %.
NBFC - MFIs are to ensure that;
85% of the total assets are in the nature of Qualifying Assets i.e,.
a. Loans are extended to borrowers whose household annual income does
not exceed Rs.60, 000/- in rural areas and Rs.1,20,000/- in non
rural areas.
b. Loan does not exceed Rs.35000/- in the first cycle and Rs.50000/in the subsequent cycles.
c. Total indebtedness of the borrower does not exceed Rs.50000/-.
d. When loan amount exceeds Rs.15000/-, tenure of loan is not less than
24 months with right of prepayment without penalty.
e. The loan is without collateral.
f. Loan is repayable by weekly, fortnightly or monthly installments at the
choice of the borrower.
srn/15.03.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
1. Objectives
2. Definition of JLG
The groups must be organised by the likeminded farmers and not imposed by
the bank or others.
The members should be residing in the same village / area and should know
and trust each other well enough to take up joint liability for Group / Individual
loans.
The group member should not be a defaulter to any other formal financial
institution.
JLG should not be formed with members of the same family and more than one
person from the same family should not be included in the JLG.
There is a need for a very active member of the group to ensure leadership role
and ensure the activities of the JLG. The selection of a good / able / active
leader for the JLG is an essential need which will ultimately benefit all the JLG
members.
4. Savings by JLGs
All the JLG members may be encouraged to open an individual "Basic savings
Bank" account.
_____________________________________
_____________________________________
_____________________________________
5. Credit Linkage
Branches can finance JLGs by adopting any of the following models:Model A: Financing Individuals in the Group:
The group would be eligible for accessing separate individual loans from the
financing Branch.
The JLG would prepare a credit plan for its individual members and an
aggregate of that is submitted to the Branch.
The individual members of JLG would be eligible for loan after the Branch
verifies the individual members credentials.
All members would jointly execute one inter-se document (making each one
jointly and severally liable for repayment of all loans taken by all individuals
in the group).
The group would be eligible for accessing one loan, which could be combined
credit requirement of all its members.
But if the members want to save through the group, Branches can open savings
account in the name of the JLG to be operated by two members of the group as
decided through a resolution by the JLG.
JLGs that undertake savings apart from credit are required to maintain books
of accounts.
The quantum of credit need not be linked to groups savings as in the case of
SHGs.
All members would jointly execute the document and own the debt liability
jointly and severally.
6. Purposes of loan
JLG members may be financed for crop production, consumption, marketing and
other agricultural productive purposes.
_____________________________________
_____________________________________
_____________________________________
7. Type of Loan
Branches may consider cash credit, short-term loan or term loan depending upon
the activity and Quantum of Loan.
8. Maximum amount of loan is restricted to Rs.50,000/- per individual, under both
the above models A & B.
9. Security
No collateral may be insisted upon. It may be ensured that the mutual guarantee
offered by the JLG members is obtained.
10. Personal Accident Insurance
All the farmers are to be covered under Personal Accident Insurance Scheme.
(PAIS).
NON -FARM SECTOR JOINT LIABILITY GROUPS (JLGs)
The JLG members are expected to engage in similar type of economic activities
like weaving, handicrafts making etc.
The members should be residing in the same village /area and should know
and trust each other well enough to take up joint liability for Group/Individual
loans
JLGs/ JLG Members can also be financed under Central /State Government
sponsored schemes with subsidy
Credit linkage, Type of loan, maximum amount of loan etc as like that of JLG
for agriculture purpose.
srn/04.04.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
SHGs create their own fund/corpus with the thrift received from members.
SHGs meet the smaller consumption and emergent needs of members from
the common fund generated from the savings of members.
SHG members with greater savings potential may be allowed to park their
surplus fund within the group in the form of voluntary savings over and
above the compulsory savings mandated in the group and a suitable
accounting system may be started in the SHG for this purpose. (ARID/ADV /
245 / 2012-13 dt.04.10.2012)
In case of (a), it will also be reckoned for assessing the quantum of loan to
the group from bank. However, it is desirable that the additional savings by
group members does not entitle the concerned members to seek
proportionately higher dosage of credit for themselves.
3. Characteristics of SHG
The membership of the group should preferably be between 10-20 and
should not exceed 20 at any time.
The members should preferably have a homogenous background and
interest.
_____________________________________
_____________________________________
_____________________________________
Cash credit
facility
I year
II year
III year
IV year
2
4 times of
savings/
corpus
subject
to a
maximum
of
Rs.2,25,000/-
10 times of
savings/
corpus
subject to a
maximum of
Rs.4,00,000/-
10 times of
savings/
corpus
subject to a
maximum of
Rs.5,00,000/-
5
10 times of
savings/
corpus
subject
to a
maximum
of
Rs.7,50,000/-
_____________________________________
_____________________________________
_____________________________________
The members inter-se will get a term loan from the group
ii.
Type of group
DGM
AGM
SM IV
MM III
MM II
JM I
25
25
10
Nil
Nil
Nil
6. JBY Janashree Bima Yojana is a low cost insurance available both for
beneficiaries and their spouse which shall take care of repayment in case of
unforeseen eventualities to the beneficiaries.
7. All women SHG members financed by our Bank shall be necessarily covered
under Janashree Bima Yojana (JBY).
8. IOB-SHG Family Insurance" - Life Insurance Cover to Members of Self Help
Groups (SHG) and Spouse
_____________________________________
_____________________________________
_____________________________________
This is a socially relevant scheme, which will enhance goodwill for the Bank
a. Type of cover: Group Term Insurance Cover
b. Eligibility:
Persons in the age group of 18 to 59 years are covered who are engaged
in specified occupation like milk produces, construction workers, farm
labourers etc.
They should be members of a Self Help Group and the SHG should have
account relationship with us. The SHG may or may not have availed loan
facility from us.
A member can take only one cover under the policy. Multiple covers
through different SHG is not allowed.
c. Documents required: The insured i.e., the SHG member has to sign a
simple proposal form which contains a self declaration of good health. No
other document is required from the insured.
d. Premium payable: Annual premium is Rs.200/- of which Rs.100 will be
paid by the individual member and the remaining Rs.100 will be subsidised
from the Social Security Fund of Government of India. The husband of SHG
member can also be covered for death benefit of Rs.10,000/- for additional
premium of Rs.40/e. Period of Cover: For a period of 1 year from the date of receipt of premium
by the branch.
f. Issue of Policy: Individual policies will not be issued but a Master Policy in
the name of the Bank will be issued.
g. Benefits to the Insured: The insured under the scheme will get the
following benefits:
Natural death of insured, the nominee will get Rs.30,000
Death due to accident, the nominee will get Rs.75,000
Total Permanent disability due to accident, the amount payable is
Rs.75,000
Partial permanent disability due to accident, the amount payable is
Rs.37,500
Members' children studying between 9th and 12th standard are eligible for
scholarship of Rs.300/- per quarter, provided the student passes the
final examination. This facility of Shiksha Sahayog Yojana is available for
a maximum of two children per family.
On death of husband of the member an amount of Rs.10,000/- is
payable for an additional premium of Rs.40/-.
h. Scholarship Claims: Apart from life cover the scheme also provides for
scholarship for children of the insured SHG member studying between class
9th and 12th provided the student passes the annual examination.
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Total limits of both the regular loan and additional loan as detailed above
are subject to maximum of Rs.5 lakh per SHG.
ii. New SHGS
Debt swap:50% of the eligible loan amount or to
whichever is lower, as additional term loan.
the extent of
debt
Total limits of both the regular loan and additional term loan as
detailed above are subject to maximum of Rs.2.5 lakh per SHG.
The loan is given to SHGs only (Not to the individual members directly ).
c. Mode of payment/disbursement
SHGs should prepare a micro credit plan and submit the same along with
application & statement of debts obtained by individual members.
Based
on the MCP, and debt statement Branch Manager may take decision
regarding the quantum of loan.
Resolution from the Group declaring outside debts.
The sanctioned amount towards the debt should be directly paid to
the money lender.
Every member should be informed of the sanction particulars.
Branch Manager has to satisfy about the existence of outside debt.
After availing the loan, the group has to ensure that the repayment
of outside debts taken by its members is liquidated and further a declaration
to that effect to be furnished to the Branch. Wherever possible, the
documentary evidence for payment of outside debt to be handed over
to the Branch and payment will be made to the creditors.
e. Margin: No margin.
f. Security: Hypothecation of Book debts/assets created out of loan.
No collateral security upto Rs.5.00 lakhs per group. However if the SHG
member(s) have already given collateral security to the moneylender,
such underlying security will be taken while taking over of such
debts under the scheme.
Above Rs.5.00 lakhs as per usual norms.
Repayment:
Repayable in three to five years in monthly instalments with gestation period
of 6 months (Depending on the activity of the SHGs). Longer repayment
period for SHGs is proposed after considering the income generation of
SHGs.
h. Insurance coverage:
Individual Self Help Group members may be covered with Janashree Bima
Policies, which covers their life OR Individual Self Help Group members may
be covered with Swasthya Bima Policies, which covers their health.
_____________________________________
_____________________________________
_____________________________________
i. Other terms
KYC norms must be strictly adhered to.
SHGS to be evaluated periodically.
Applicable processing charge to be collected
10.
_____________________________________
_____________________________________
_____________________________________
The SGSY Scheme is operative from 1st April, 1999 in rural areas of the
country.
The scheme will be funded by the Centre and the States in the ratio of 75:25.
The objective of SGSY is to bring the assisted poor families (Swarozgaris) above
the poverty line by ensuring appreciable sustained income over a period of time.
Swarozgaris can be either individuals or groups and would be selected from BPL
families by a 3 member team consisting of Block Development Officer (BDO),
Banker and Sarpanch.
The list of Below Poverty Line (BPL) households identified through BPL census
duly approved by Gram Sabha will form the basis for identification of families
for assistance under SGSY.
Once the person or group of persons has been identified for assistance, their
training need also is to be ascertained with reference to Minimum Skill
Requirement (MSR).
Farm activities to be assisted would include minor irrigation such as open dug
well/bore/tube well/lift irrigation/check dam etc. Non-farm activities will
include those activities that result in the production of goods/services that have
ready market.
In regard to loans falling under Industry, Service and Business (ISB) Sector,
the responsibility of fixing the unit cost and other techno-economic parameters
rests with the District SGSY Committee.
BPL Family under the guidelines would be treated as a unit for the purpose of
giving income generating assets.
A household having two kitchens and two ration cards should not be treated as
a family and the existence of two kitchens or two ration cards in the same
house is an indication of two families.
2. Revolving Fund
Self Help Groups go through various stages of evolution viz. Group formation,
Group Stabilization, Micro Credit stage and Micro Enterprise Development
stage.
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_____________________________________
_____________________________________
SHGs that are in existence for about six months and have demonstrated the
potential of a viable group, enters the third stage, receives the Revolving Fund
from DRDA and banks as cash credit facility.
The DRDAs may release subsidy, which is equal to the group corpus with a
minimum of Rs. 5000/- and a maximum of Rs. 10000/- linked with bank
credit.
The group corpus would be defined as the total amount available with the
group inclusive of cash with the group, amount in Savings Bank account of the
group, loans outstanding against members of the group and interest earned on
the loans as well as deposits.
Subsequently, if it is found that the group has not been able to reach the micro
enterprise stage and requires further financial support to continue in the micro
finance stage for some more time, performance of such groups may be got
evaluated.
In the evaluation if it is observed that the group has been successfully utilising
the revolving fund, they could be considered for sanction of further doses of
subsidy fund up to a maximum of Rs. 20000/- inclusive of previous doses
linked with bank credit.
The subsidy of Rs. 20000/- released by DRDA will be adjusted against the
loan at the end of the cash credit period on the request of the group.
3. Lending Norms
The size of loan under the scheme would depend on the nature of project.
The loans under the scheme would be composite loan comprising of Term Loan
and working capital.
The loan component and the admissible subsidy together would be equal to
total project cost.
Swarozgaris will be given the full amount of loan and subsidy and they will have
the freedom to procure the assets themselves.
4. Group loans
The group is entitled to subsidy of 50% of the project cost subject to per capita
subsidy of Rs. 10000/- or Rs. 1.25 lakh, whichever is less.
All loans granted under the scheme are to be treated as advances under priority
sector.
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_____________________________________
6. Insurance Cover
Insurance cover is available for assets/live stock bought out of the loan.
Swarozgaris are covered under the Group Insurance Scheme as per SGSY
guidelines.
The General Insurance Corporation has agreed to provide this cover on the
terms and conditions as reflected in the specimen Master Policy and Long Term
Master Policy Agreement signed between the GIC and the State Government.
Sum Insured: The cost of the asset shall be treated as the sum insured for the
settlement of claims.
For permanent total disablement (PTD) claims 75% of the sum insured shall be
payable.
For availing the group insurance coverage by the SGSY Swarozgaris, the
maximum age of Swarozgaris at the time of sanction has to be kept at 60 years
of age.
The insurance coverage, however, would be for five years or till the loan is
repaid, whichever is earlier, irrespective of the age of Swarozgaris at the time of
sanction of loan.
This Scheme is operative from the date on which the asset is disbursed to the
Swarozgari.
8. Security norms
For individual loans upto Rs. One lakh and group loans upto Rs. 10 lakhs,
the assets created out of bank loan would be hypothecated to the bank as
primary security.
For all individual loans exceeding Rs. 1,00,000/- and group loans exceeding Rs.
10 lakhs, in addition to primary security such as hypothecation/mortgage of
land or other assets, suitable margin money/ other collateral security in the
form of insurance policy; marketable security/ deeds of other property etc. may
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_____________________________________
_____________________________________
While deciding the limit for collateral security, the total project cost (bank
loan plus Government subsidy) should be taken into consideration by
banks.
9. Subsidy
The group is entitled to subsidy of 50% of the project cost subject to per capita
subsidy of Rs. 10000/- or Rs. 1.25 lakhs, whichever is less.
All SGSY loans are to be treated as medium term loans with minimum
repayment period of five years.
Instalments for repayment of loan will be fixed as per the unit cost approved by
the NABARD/Dist. SGSY Committee.
Swarozgaris will not be entitled for any benefit of subsidy if the loan is fully
repaid before the prescribed lock-in period.
The repayment period for various activities under SGSY can broadly be
categorized into 5, 7 and 9 years depending on the project.
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The banks may engage the services of NGOs or individuals (other than
government servants) as monitor-cum-recovery facilitators, on a commission
basis.
Prompt repayment at the Swarozgaris level, will entitle him/her to waiver of the
0.5 % processing-cum-monitoring fee.
Banks are eligible for refinance from NABARD for the loans disbursed under
SGSY as per their guidelines.
srn/04.04.2013
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The target population under SJSRY is the urban poor - those living below the
poverty line, as defined by the Planning Commission from time to time.
Funding under SJSRY will be shared between the Central Government and the
State Governments in the ratio of 75:25.
Urban Self Employment Programme (USEP)
Urban Self Employment Programme (Loan & Subsidy): This programme will
be applicable to all cities and towns on a whole town basis.
Not less than 30% for women beneficiaries are to be assisted under the
scheme.
SCs and STs must be benefited at least to the extent of the proportion of
their strength in the city / town population below poverty line (BPL).
15% of the physical and financial targets under USEP at the national level
shall be earmarked for the minority communities.
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Identifiably, clusters should be taken for support under SJSRY and efforts
should be to ensure that all adults in the cluster are provided with benefits of
skill development, self-employment or wage employment so that no urban poor
household is left with an adult without means of earning income.
Eligibility:
Urban poor living below the poverty line, in any city/town.
Should be of minimum 18 years at the time of applying for Bank Loan.
Residing in the town for at least three years
Should not be a defaulter
institution/cooperative bank.
to
any
nationalized
bank/financial
Eligibility:
Membership of the Group : Minimum number of women in a group is 5.
Should not be a defaulter
institution/cooperative bank.
to
any
nationalized
bank/financial
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This scheme is developed by merging the two schemes that were in operation till
31.03.2008 namely Prime Ministers Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP).
Cost Project
a. The maximum cost of the project / unit admissible under manufacturing
sector is Rs. 25 lakh
b. The maximum cost of the project / unit admissible under business /
service sector is Rs. 10 lakh
Subsidy
The quantum of subsidy from the Government of India is based on the
categories of beneficiaries and the area of location of the project viz. rural or
urban. It ranges from 15% to 35% accordingly.
Categories of beneficiaries
under PMEGP
Area
(location
unit/project)
of
Beneficiarys
contribution
(of project cost)
the
General Categories
Special (including SC / ST /
OBC / Minorities / Women, Exservicemen, Physically
handicapped, NER, Hill and
Border areas etc.
Subsidy amount
(of project cost)
urban
Rural
10%
15%
25%
5%
25%
35%
There will be no income ceiling for assistance for setting up projects under
PMEGP.
For setting up of project costing above Rs.10 lakh in the manufacturing sector
and above Rs. 5 lakh in the business / service sector, the beneficiaries should
possess at least VIII standard pass educational qualification.
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_____________________________________
Self Help Groups (including those belonging to BPL provided that they have not
availed benefits under any other Scheme) are also eligible for assistance under
PMEGP.
Charitable Trusts
Units that have already availed Government subsidy under any scheme of Govt.
of India or State Government are not eligible.
Registered and Khadi Institutions who have availed government grant under
MDA, ISEC or any other scheme is not eligible.
Implementing Agencies
Khadi and Village Industries Commission (KVIC), Mumbai, which will be the
single nodal agency at the national level.
At the State level, the scheme will be implemented through State Directorates of
KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries
Centres in rural areas.
Identification of beneficiaries
District Magistrate
/Deputy
Working capital
Working Capital component should be utilized in such a way that at one point
of stage it touches 100% limit of Cash Credit within three years of lock in period
of Margin Money and not less than 75% utilization of the sanctioned limit.
If it does not touch aforesaid limit, proportionate amount of the Margin Money
(subsidy) is to be recovered by the Bank / Financial Institution and refunded to
the KVIC at the end of the third year.
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EDP training
Sanctioning authority need not wait for the completion of EDP training for
disbursement of the loan to the beneficiaries under PMEGP scheme, claiming as
well as settlement of subsidy by the Nodal branches.
However, if the bank authorities feel that EDP is necessary before disbursement
in some specific project, the same can be insisted upon.
The period of training for the projects upto Rs.2 lacs for service activities is only
3 days.
The financing branch must forward the Margin Money (subsidy) claims in the
prescribed format to the nodal branch within 15 days from the date of first
disbursement of loan.
The designated nodal branch has to clear and remit the amount of subsidy to
the financing branch within 15 days of receipt of the claim.
Once the Margin Money (subsidy) is released in favour of the loanee, it should
be kept in a Term Deposit of 3 years at branch level in the name of the
beneficiary / Institution.
No interest will be paid on the TD and no interest will be charged on loan to the
corresponding amount of TD.
But final adjustment of subsidy, kept in term deposit, should not be made till
EDP training is completed.
In case the Banks advance goes bad before the three year period due to
reasons beyond the control of the beneficiary, the Margin Money (subsidy) will
be adjusted by the Bank to liquidate the loan liability of the borrower either in
part or full.
In case any recovery is effected subsequently by the Bank from any source
whatsoever, such recovery will be utilized by the Bank for liquidating their
outstanding dues first. Any surplus will be remitted to KVIC.
Margin Money (subsidy) will be one time assistance, from Government. For any
enhancement of credit limit or for expansion / modernization of the project,
margin money (subsidy) assistance is not available.
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_____________________________________
Margin Money (subsidy) assistance is available only for new projects sanctioned
specifically under the PMEGP. Existing units are not eligible under the Scheme
Computation
of
admissible
margin
capital/sanctioned cash credit limit
money
subsidy
on
working
If the working capital availment touches 100% of the sanctioned cash credit
limit at least once, and the average working capital availment is at least 75%,
then the margin money subsidy would be calculated on 100% of the sanctioned
cash credit limit.
If the working capital availment does not touch 100% of the sanctioned cash
credit limit atleast once, or if the average working capital availment is below
75%, proportionate amount of margin money subsidy should be recovered by
the Bank and refunded to KVIC at the end of three years from the date of
disbursement of the loan (that is, term loan) or date of ending of lock-in period,
whatever is earlier.
The refund of the margin money subsidy (on working capital) on the difference
between subsidy on the sanctioned cash credit limit and the subsidy on the
admissible limit, should be undertaken at the end of the three year period from
the date of first disbursal of the loan or date of ending of lock-in period,
whichever is earlier
Adjustment of margin money subsidy on term loan, that is, refund of the
margin money subsidy on the difference between the sanctioned term loan
and the actually availed term loan (where the latter is less than the former)
should be undertaken immediately after the disbursement of the last
instalment of the loan.
Banks can charge interest only on that part of loan which exceeds the margin
money subsidy/TDR amount. The first instalment released by bankers should
be at least equal to or more than the margin money subsidy/ TDR amount.
If the first instalment is less than the margin money subsidy/TDR amount,
Banks have to pay interest to KVIC on the difference (till such time the loan
amount becomes equal to or exceeds the margin money subsidy/TDR amount).
The rate of interest should be the same at which the loans have been sanctioned
to the beneficiaries.
Bank has to obtain an undertaking from the beneficiary before the release of bank
finance that, in the event of objection (recorded and communicated in writing) by
KVIC / KVIB / State DIC, the beneficiary will refund the Margin Money (subsidy)
kept in the TDR or released to him after three years period.
srn/17.03.2013
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279
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PMEGP
Implementing Agency
Objective of the
scheme
Target Group
Purpose
Quantum
Amount of subsidy
Rate of Interest
Security
Margin
Repayment
Holiday period
Rural
25%
35%
Priority status
Discretion
Priority sector
As per SME finance
Remarks
_____________________________________
SGSY
District Rural Development Agencies (DRDAs),
Non-Government Organisations (NGOs),
Technical Institutions in the district
to bring the assisted poor families (Swarozgaris)
above the poverty line by ensuring appreciable
sustained income over period of time
Individual & SHGs (The list of (BPL) households
identified through BPL census duly approved by
Gram Sabha will form the basis for identification
of families for assistance under SGSY.)
On farm activities to be assisted would include
minor irrigation such as open dug
well/bore/tube well/lift irrigation/check dam,
etc. Non-farm activities will include those
activities that result in the production of
goods/services that have ready market
The size of loan under the Scheme would depend
on the nature of project. There is no investment
ceiling other than the unit cost
30 percent of the project cost, subject to a
maximum of Rs. 7,500/-. In respect of
SC/STs it will be 50 percent of the project
cost subject to a maximum of Rs. 10,000/-.
The group is entitled to subsidy of 50% of the
project cost subject to per capita subsidy of
Rs. 10000/- or Rs. 1.25 lakhs, whichever is
less
As applicable to small loans
For individual loans upto Rs.1 lakh and group
loans up to Rs. 10 lakh, the assets created out of
bank loan would be hypothecated to the bank as
primary collateral. Loan exceeding the above
addl. Collateral security
nil
to be treated as medium term loans with
minimum repayment period of five years
Moratorium on repayment of loans during the
gestation period as decide by bank
Priority Sector
Branch discretion subject to scheme norms &
activity wise discretion under Agri & Pri.credit
BDOs, Bankers and line departments will act
as resource persons for imparting the
training. The training expenditure will be met
by DRDAs from out of the SGSY Fund
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SJSRY
Urban local bodies.
Funding is shared between the Centre and the
States in the ratio of 75:25.
To provide gainful employment to the urban
unemployed or underemployed through the
setting up of self-employment ventures or
provision of wage employment.
Individuals & SHGs.
The urban poor - those living below the poverty
line. No minimum or maximum educational
qualification beneficiaries under USEP
To set up small enterprises relating to
manufacturing, servicing and petty business
for which there is a lot of potential in urban
areas
Maximum allowable unit project cost :
Rs.200000
25% of the Project Cost subject to a
maximum of Rs.50,000/ For setting up group enterprises, the UWSP
group shall be entitled to a subsidy of
Rs.300,000/- or 35% of the cost of project or
Rs.60,000/- per Member of the Group,
whichever is less
As applicable to small loans
No Collateral required
5% of the project cost as margin money
As per the decision of the financial institution
As decision of the financial institution
Priority Sector
Branch discretion subject to scheme norms &
activity wise discretion under Agri & Pri.credit
Urban Self Employment Program (USEP) &
Urban Women Self-help Program (UWSP) are
components of SJSRY
_____________________________________
Name
Implementing
Agency
Objective of the
scheme
Target Group
_____________________________________
Purpose
Quantum
Amount of subsidy
Rate of Interest
Security
Margin
Repayment
Holiday period
Priority status
Discretion
Remarks
280
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10%
.
Yes
Branch Managers irrespective of their grade can sanction loans
under this scheme
EWS: Household income per annum: Rs.1,00,000 LIG:
Household income per annum : Rs.1,00,000 to Rs.2,00,000
Subsidy will be available for loan amount upto Rs.1.00 lac.
Additional loans, if needed would be at ubsubsidized rates. The
scheme will close in March 2013
Present Base rate of our Bank is 10.25% w.e.f 18.02.2013. Interest rates are subject to change in Base Rate
srn/23.05.2013
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_____________________________________
For the purpose of identifying the economically weaker sections and low
income groups, the family income limit of Rs.1,20,000 per annum,
irrespective of the location, is prescribed.
Beneficiaries who own land in urban area but do not have any pucca house
in own name or in the name of spouse or any dependent child will also be
covered.
EWS: Households having an average monthly income upto Rs.5000/Maximum Loan Amount
Rs.1,00,000/Construction Area (Minimum House area) 25 Sq.mts
LIG: Low Income Group
Households having an average monthly income :Rs.5001 to 10000/Maximum Loan Amount
Rs.1,60,000/Construction Area (Minimum House area) 40 Sq.mts
Loan repayment:
Minimum Period: 15 years
Maximum Period: 20 years
(Construction to be completed in one year)
Margin: 10%
Rate of Interest:
i.
9% fixed for first 5 years. After 5 years till the date of liquidation of the loan
the rate of interest would be normal rate prevailing at that time, as
applicable to Subha Gruha scheme
Nil
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_____________________________________
_____________________________________
Security:
Prime Security:
Mortgage of the dwelling units
Collateral Security: No collateral security /third party guarantee for loans
up to and inclusive of Rs.1 lakh.
Subsidy will be 5% p.a. on interest charged for EWS and LIG, admissible for
a maximum loan amount of Rupees one lakh over the full period of the
loan.
Nodal Agency for implementing the scheme in our Bank and for releasing the
interest subsidy amount is HUDCO
Immediately on receipt of the subsidy at branch level; branch will credit the
same to the borrowers loan account.
srn/12.04.2013
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_____________________________________
Term loan for acquisition / construction of new flat or a house and for purchase of
old house/ flat.
Loans under the scheme may also be sanctioned for additional rooms/ first floor/
Second floor on the already owned houses.
Second/ additional loans may also be sanctioned to the existing borrowers under
the scheme for construction of additional rooms/ floors on the already built
houses.
Second loan for purchase / construction of second house also can be given under
the Scheme.
Loans shall be considered for purchase of plot also subject to the loan quantum for
such purpose does not go beyond 30% of the total loan amount sanctioned and
the house to be constructed within 2 years from the date of purchase of plot.
Eligibility:
The maximum age of the applicant at the time of availing loan may be considered
up to 60 years.
In case of applicants having crossed the age of 55 years, his/ her spouse or other
legal heir should be included as co-obligant. However the entire loan should be
liquidated before the first applicant attains the age of 70 years.
Borrower, who wants to let out the house he purchases, on rental basis on account
of his posting outside the headquarters or because he has been provided
accommodation by his employer, is also eligible to avail the loan under the
Scheme.
Quantum of finance:
However where the loan amount falls under Priority Sector Credit, loans can be
sanctioned up to 90% of the cost of the house / flat.
_____________________________________
_____________________________________
_____________________________________
50% norms is followed for arriving the eligible amount. Regional Managers are
empowered to sanction housing loan under 40% norms.
In case of Husband and wife, if both are employed, 40% norms should be seen only
in case of the Prime borrower and net income of the spouse shall be added to arrive
at the repayment capacity and to fix quantum of loan. However this norm cannot
be applied for any other relations.
Stamp duty, registration and other documentation charges should not be included
in the cost of the house property.
Repayment:
However in order to facilitate the borrowers who are close to their retirement years
and are currently earning good income, the branches may fix a higher EMI till their
retirement period and shall refix the EMI at the time of their retirement in such a
way that the 40% norms shall be maintained in the post retirement income also.
Similarly, in case of any lump sum payment made by the borrowers towards part
payment of the loan, the EMI shall be refixed on the outstanding of that date at the
request of the borrower. Form 378 to be obtained afresh at such times.
Holiday period:
For purchase of old house/old flat, holiday period of 3 months may be allowed.
Margin :
Uniform margin of 20% to be maintained for purchase of new and old house
(margin as a % of estimated cost inclusive of cost of land).
In case of loans falling under Priority Sector Credit , it is enough if the margin is
maintained at 10%.
The stamp duty, registration and other documentations charges are to be borne by
the borrower and cannot be included under Margin.
In case of loans for construction of house on already owned plot, cost of such plot
shall be reckoned as margin .The value of such plot to be reckoned as given in
_____________________________________
_____________________________________
_____________________________________
the Sale Deed of the land purchased or the ruling guideline value whichever is
less.
Rate of Interest:
Repayment period
Over 1 year to 5 years
Over 5 yrs upto 10 yrs
More than 10 years
Amount upto
30 lacs
Base Rate (BR)
Base Rate (BR)
Base Rate (BR)
Amount above
30 lacs 75 lacs
BR + 0.25%
BR + 0.25%
BR + 0.25%
Amount above
Rs.75 lacs
BR + 0.50%
BR + 0.75%
BR + 1.00%
50 bps concession in interest rate is allowed for loans above Rs.75 lacs where the
margin offered is 25% and more.
The above concession is also made available for loans above Rs.30 lacs upto Rs.75
lacs w.e.f 19.04.2013.
2% over the prescribed rate should invariably be charged for the amount of default
/ delay in payment of installments for the overdue period.
Processing Charges:
Security:
Immovable property to be financed must be mortgaged only with our Bank. The
land should be in the name of the applicant or jointly with his/ her spouse / close
relatives (Co-obligant).
Loans can also be considered even if the land is in the name of any close relatives.
However the loans should be granted jointly, where the earning member will be
the Prime borrower and the land owner will be the co borrower.
The mortgage details should be registered under CERSAI also as per the extant
guidelines.
Valuation of property:
In case of new house/flat allotted by DDA/ Housing Boards and other central/
State Government Agencies (original purchase/ first buyer), separate third party
valuation need not be insisted upon.
In other cases like Second hand house or flat / flats purchased from Private
builders/ construction on owners plot etc., estimate report at the time of sanction
_____________________________________
_____________________________________
_____________________________________
of loan and valuation report at the time completion / possession, from our
approved valuer should be obtained at borrowers cost.
Age of the house / flat should not generally exceed 25 years. Regional Managers
are given discretion in cases where the age of the building exceeds 25 years
provided our approved valuer has certified about the quality and soundness of
construction. The certificate should also indicate the probable left over life span of
the building, sufficiently covering the proposed repayment period.
Insurance:
The Property should be insured for the full value of its superstructure for the risk
of fire and other hazards including earthquake with bank clause during the
currency of loan and the original policy should be held with the bank.
Prepayment Charges:
Takeover of loans:
Branches are permitted to take over housing loans accounts from other banks as
well as reputed housing Finance institutions such as HUDCO, LIC housing
Finance Ltd and other reputed intermediaries in the housing finance market in the
public/ private sector, provided it satisfies the following
The accounts to be taken over are regular and are in the standard category and
performing assets
The repayment period to be fixed by us should not exceed the original
repayment period stipulated by the institution, which has sanctioned the
original loan.
The proposal for takeover of housing loan accounts should be sanctioned from
the level of Regional Managers and above within the discretionary powers
available to various layers of authority.
Proposals involving taking over of housing loan accounts from cooperative
housing societies will have to be referred to General Managers for prior
Housing Loans upto a limit of Rs. 20 lacs sanctioned prior to 01.04.2011 will
continue to be classified under priority sector till maturity / renewal of such loans.
_____________________________________
_____________________________________
_____________________________________
The revised guidelines for Housing Loans Limits to be eligible under Priority Sector
Advances with effect from 02.07.2012 are as given below:
Loans to individuals up to Rs. 25 lakh in metropolitan centres with population
above 10 lacs and Rs. 15 lakh in other centres for purchase/construction of a
dwelling unit per family excluding loans sanctioned to banks own employees.
Loans for repairs to the damaged dwelling units of families (Home Improvement
Scheme) up to Rs. 2 lakh in rural and semi- urban areas and up to Rs. 5 lakh
in urban and metropolitan areas.
Bank loans to any governmental agency for construction of dwelling units or for
slum clearance and rehabilitation of slum dwellers subject to a ceiling of Rs. 5
lakh per dwelling unit.
The loans sanctioned by banks for housing projects exclusively for the purpose
of construction of houses only to economically weaker sections and low income
groups, the total cost of which do not exceed Rs. 5 lakh per dwelling unit. For
the purpose of identifying the economically weaker sections and low income
groups, the family income limit of Rs. 1,20,000 per annum, irrespective of the
location, is prescribed.
Other conditions
Loans must be granted either by the branch nearer to the permanent residence of
the borrower or nearer to the location of the property proposed to be financed.
In case the borrower fails to construct a house within the stipulated time on the
plot purchased using the bank loan, the loan amount disbursed up to date must
be recovered at commercial rate of interest from the date/s of disbursements.
An Undertaking letter from the borrower accepting to repay the loan with
commercial rate of interest in case of failure to construct the house to be obtained
before disbursement of loan
In cases where the applicant owns a plot/land and approaches the bank for a
credit facility to construct a house, a copy of the sanctioned Plan approved by the
competent authority in the name of the person applying for such credit facility
must be obtained by the bank.
An affidavit cum undertaking letter must be obtained from the person applying
for such credit facility that;
He shall not violate the sanctioned plan and construction shall be done strictly
as per the sanctioned plan.
It will be the sole responsibility of the executants to obtain completion
certificate within 3 months of completion of construction failing which the bank
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_____________________________________
_____________________________________
shall have the power and the authority to recall the entire loan with interest
costs and other usual charges.
Also certify at a particular point of time that the completion certificate of the
building issued by the competent authority has been obtained.
When loan is granted for purchase of built up house/ flat it is mandatory for the
borrower/s to declare by way of an affidavit cum undertaking that the built up
property has been constructed as per the sanctioned plan and or building bye laws
and as far as possible has a completion certificate also.
An architect appointed by the bank must also certify before disbursement of loan
that the built up property is strictly as per the sanctioned plan and/ or building
bye laws.
No loan should be granted in respect of those properties which fall in the category
of unauthorized colonies unless and until they have been regularized and
development charges are paid.
If loan is granted in the names of more than one borrower, the asset creation must
be in the names of all the borrowers.
All the terms and conditions mentioned in the Scheme will be applicable to Staff
members also who avail the loan under the Subhagruha Scheme, provided their
Pension and other fixed income (like rent, income/pension of spouse, etc.,)are
sufficient to make good the loan instalment for which documentary evidences are
to be produced by them.
The loans granted to the staff members should be recovered in proportionate EMI
from their monthly salary. However the monthly installment under this loan need
not be reckoned for arriving members 40% net income for availing other staff loans
by them from the Bank.
_____________________________________
_____________________________________
_____________________________________
Loans under Subha Gruha scheme to the staff members, whether as prime
borrower or as co borrower, are to be sanctioned by RLCC only, even if the loan
amount falls within the discretionary powers of the branch.
However applications need not be routed through the Rapid Retail Centres and can
be sent to the ROs directly for sanction.
Loans under the Scheme are to be availed at the Salary Drawn branch only.
Branches/Regional Offices need not insist for prior clearance from Industrial
Relations department, Central Office for loan availment by staff members under
Subha gruha Housing loan scheme.
srn/19.05.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Vocational/skill development study courses, off-campus courses and onsite/partnership programmes are not eligible for loan under the IBA scheme.
II. Studies abroad:
Graduation: For job oriented professional/ technical courses from reputed
universities.
Courses offered by reputed universities.
Post graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA- London, CPA in USA etc.
Degree/Post graduate diploma courses like aeronautical, pilot training,
shipping etc provided these are recognized by competent regulatory bodies in
India/abroad for the purpose of employment in India/abroad.
PG diploma from reputed universities also eligible.
ii.
iii.
iv.
v.
vi.
_____________________________________
_____________________________________
_____________________________________
vii.
viii.
ix.
Any other expense required to complete the course - like study tours, project
work, thesis, etc. (subject to a max. of 20% of tuition fee)
D. Quantum of finance:
Need based finance is to be worked out as per expenses eligible above with
applicable margin and within the following ceilings.
Category
Studies in India
Studies abroad
Priority sector
Rs.10.00 Lakhs
Rs.20.00 Lakhs
Non-Priority Sector
Rs.30.00 Lakhs
Rs.40.00 Lakhs
Loans in excess of Rs.10 lakhs qualify for interest subsidy under Central
Sector Interest Subsidy Scheme for amount up to 10 lakhs only.
E. Margin:
Upto Rs 4.00 lacs
Above Rs. 4.00 lacs
: Nil
: Studies in India - 5%
Studies Abroad - 15%
Security
Co-obligation of parents or Guardian. No security
Co-obligation of parents / Guardian together with
collateral security in the form of suitable third
party guarantee.
Co-obligation of parents together with tangible
collateral security of suitable value, along with
the assignment of future income of the student
for payment of installments
Security offered for loans above ` 7.5 lakhs need not necessarily be belonging to
the joint borrower (co-obligator).
_____________________________________
_____________________________________
_____________________________________
In case the loan is given for purchase of computer, the computer has to be
hypothecated to the Bank.
G. Rate of Interest:
Category
Upto Rs4 lacs
Rs. 4 lacs to Rs. 7.5. lacs
Above Rs. 7.5 lacs
For wards of staff members
irrespective of the amount
Rate of Interest
Base Rate + 2.00%
Base Rate + 3.25%
Base Rate + 3.00%
Base Rate + 1.75%
The Interest concession of 0.5 % given to the Girl students at the time of
disbursement of loan to continue.
Servicing of interest during study period and the moratorium period i.e. till
commencement of repayment is optional for students.
Accrued interest to be added to the principal amount borrowed while fixing EMI
for repayment.
_____________________________________
_____________________________________
_____________________________________
In the normal course, while appraising the loan the future income prospects of
the student will be looked into. However, where required, the means of parent /
guardian could also be taken into account to evaluate re-payment capability.
I. Repayment
Holiday/
Moratorium period
Repayment of the
loan
If the student is not able to complete the course within the scheduled time,
extension of time for completion of course may be permitted for a maximum
period of 2 years.
If the student is not able to complete the course for reasons beyond his control,
sanctioning authority may at his discretion consider such extensions as may be
deemed necessary to complete the course.
The accrued interest during the repayment holiday period to be added to the
principal and repayment in Equated Monthly Instalments (EMI) fixed.
Repayment of the education loan is based on the future earning potential of the
student.
In case the student takes up higher studies immediately upon completion of the
course, the commencement of repayment would get shifted to 6 months from
employment or one year from completion of the course (higher studies)
whichever is earlier without treating the change as restructuring. This would be
so irrespective of whether the student had taken fresh/top up loan for higher
studies or not.
J. INSURANCE
Branches are advised to cover the lives of the students and the parents up to 50
years of age while granting Educational Loan by covering the loan under our
Vidya Jyothi Educational Scheme with Suraksha with their consent
The loan to be disbursed could include the insurance premium amount and the
insurance policy should be assigned in favour of the bank.
_____________________________________
_____________________________________
_____________________________________
K. FOLLOW UP/TRACKING
In respect of studies abroad, the branches are advised to insist on the student
borrower to provide the Unique Identification Number (UIN)/ Identity card and
note the same in the office records to enable the bank to track the students
studying abroad. The UID number issued by UIDIA is to be captured in Banks
system as and when available.
L. PROCESSING CHARGES
For Study abroad 0.57 % processing charges may be collected while considering
the loan. The fee would however, be refunded upon the student taking up the
course.
M. CAPABILITY CERTIFICATE
Branches are advised to issue the capability certificate for students going
abroad for higher studies.
For issuing the certificate, financial and other supporting documents may be
obtained from the applicant.
N. OTHER TERMS:
Going by the spirit of the scheme, limit of Rs 4.0 lakh (Rupees Four Lakhs)
collateral free loan is student specific and not family specific. There is no
restriction on giving a second or third collateral free loan to other siblings when
one of the siblings has already taken a collateral free loan.
O. Minimum Age
There is no specific restriction with regard to the age of the student to be eligible
for education loan.
P. Top up loans
Banks may consider top up loans to students pursuing further studies within
the overall eligibility limit, if such further studies are commenced during the
moratorium period of the first loan.
The repayment of the loan will commence after the completion of the second
course and further moratorium period, as provided under the scheme.
Q. No Due Certificate
Branches may obtain a declaration/ an affidavit confirming that no loans are
availed from other banks.
_____________________________________
_____________________________________
_____________________________________
In case of Married person, the co-obligor can be Spouse or the Parent /Parents
in law.
However, if the joint borrower has a loan account with the bank and the loan is
treated as non-performing asset the bank may, as a prudent measure insist on
a joint borrower acceptable to the bank, in case of adverse credit history of the
parent/guardian of the student.
The revised Model Educational Loan Scheme (2011) covers only merit channel
seats for these courses.
The student loan will not be affected by any change in asset classification of any
separate bank borrowing of the joint borrower.
U. Interest Subsidy
Central Scheme to provide Interest Subsidy Scheme on Education Loan for
Economically Weaker Section.
The benefits of the Scheme would be applicable to those students belonging
to Economically Weaker Sections (EWS), with an annual gross
parental/family income with an upper limit of Rs. 4.50 lacs per year
(from all sources).
_____________________________________
_____________________________________
_____________________________________
The subsidy is admissible even in respect of courses where the fee structure
is more than Rs 10.00 lakhs. However, for calculation of interest subsidy,
the same should be calculated for loans upto Rs 10 lakhs.
For pursuing any of the approved courses of studies in technical and
professional streams, from recognized institutions in India.
The interest subsidy under the Scheme shall be available to the eligible
students only once, either for the first undergraduate degree course or the
post graduate degrees/diplomas in India. Interest Subsidy shall, however, be
admissible for integrated courses (graduate + post graduate).
Only member banks of IBA are eligible for Interest Subsidy for Education
Loan.
********************************
srn/15.05.2013
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_____________________________________
_____________________________________
_____________________________________
_____________________________________
298
_____________________________________
Purpose
Quantum
Rate of
Interest
Clean loans
Employees of Govt.Corp, PSUs, Central/State Govt
and reputed PVt.sector undertakings which are
highly rated and are in existence for mini.10 yrsLIC agent 3 yrs average yearly commission
Rs.84000/- age not to exceed 55 yrs,mini.
experience 5 yrs,IT assessee
To meet out financial needs
Clean Loan to LIC Agents be extended for
professional purpose.
upto 10 times of salary or Rs. 15.00 lac whichever
is lower subject to undertaking from the employer
to deduct the instalment or to route the salary
through
the
branch
till
the
loan
adjusted.(repayment upto 60 months).
For LIC agents, 10 times of average commission
receipt per month with a maximum of Rs 10.00
lakhs.
BR+ 5.0%
BR + 4.00%
1% interest concession for ex-staff of our Bank
Repayment
Nil
Loans on 10 month salary -60 monthly
instalments & for others 36 months
Nil
Not more than 65 yrs-60 EMI,
More than 65 yrs EMI 30 months
Holiday period
Nil
Nil
Priority status
No
No
Maximum eligible amount as per Scheme
Discretion
Security
Margin
Remarks
_____________________________________
Adv/002/2011-12 dt 05.04.2011
_____________________________________
Sahayika
Confirmed salaried persons with
40% take home pay (including other
income), professional, self employed
and businessmen with 3 years
standing in the field and IT
assessee.
To meet any social and
financial commitments
BR + 3.75%
0.5% reduction for
prompt payment
EM on Immovable property,
additionally NSC,UTI,IVP etc .
NSC/KVP/Units : 25%
Life policies : 10%; Properties 50%
Max: 60 EMI
Nil
NO
JMI-1 lac ; II-2 lac ; III - Rs.5.00
lacs ;
SM IV & above : Full
_____________________________________
Name
Target Group
_____________________________________
IOB Gold
Purpose
Quantum
Rate of
Interest
Security
IOB-Akshay
Personal borrowers in their
individual capacity
Corporates/business concerns not
eligible.
Advance against LIC policies
Repayment
Holiday period
Nil
Nil
Priority status
No
No
Discretion
Margin
Remarks
_____________________________________
ADV/113/dt 21.5.2002
_____________________________________
299
_____________________________________
Subhagruha
Individuals/group of individuals/members of coop society having regular and independent
income-employed persons 2 years in the line of
employment. Age not to exceed 60 years.
Acquisition/construction of a new flat or a
house. Purchase of old house/flat age not
exceeding 25 years (deviation can be allowed by
RM). Additional floor/rooms construction also.
For purchase of plot 30% of loan amount.
Upto 90% of the cost of construction/purchase
value of the house for loans fall under priority
sector sector & 80% for others. Maxi,No
ceiling.50% norms (RMS can follow 40%
norms).Stamp duty, regn exp. Etc not to be
included.
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of Interest
Security
Margin
_____________________________________
Holiday period
Nil
Priority status
No
Discretion
JMI 2 lacs, MMII 3 lacs MMIII 5 lacs ; SMIV 10 lac ; AGM & DGM 15 lac
Repayment
Remarks
_____________________________________
_____________________________________
300
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of
Interest
Security
Margin
Repayment
Pushpaka
Within 3 years
Holiday
period
Nil
Priority
status
No
Discretion
Remarks
_____________________________________
301
_____________________________________
Hypothecation of vehicles
For NRIs, a suitable guarantee from
Resident Indian, acceptable to the
Bank
1. Hypothecation of vehicles
2. Lien on terminal benefits if the
loan terms extends after retirement
3. Recovery from salary monthly
instalments
Nil
_____________________________________
_____________________________________
Name
Target Group
IOB -Scholar
Students who got admission in approved
colleges and secured minimum of 65% marks
in the Plus 2 or equivalent exam.
Students who want to pursue Vocational
Training and skill development courses that
are kept outside the Model Scheme (VJEL).
Any other course pursued by students which
are having employability on completion.
Purpose
Quantum
Rate of Interest
Security
Margin
Repayment
Holiday period
Priority status
Discretion
Remarks
Up to Rs.4 lacs
: BR + 2.00%
Rs. 4 lacs to Rs.7.5 lacs : BR + 3.25%
Above Rs. 7.5 lacs
:BR + 3.00%
For wards of staff
:BR + 1.75%
Up to Rs.4 lacs : No security
Above Rs.4 lacs to Rs.7.50 lacs: guarantee
Above Rs.7.50 lacs : tangible security
Upto Rs.4.00 lacs : NIL
Above Rs. 4 lacs : studies in India : 5%
Studies abroad : 15%
For loans upto Rs. 7.5 lakhs - upto 10 years
For loans above Rs. 7.5 lakhs - upto 15 yrs
Course period + 1year or 6 months after getting
job, whichever is earlier.
Studies in India ; upto Rs.10 lacs & studies
abroad ; upto Rs.20 lacs priority sector
JM I 1 lac; MM II-3lac; MM III 4 lacs; SM-IV
(India) 10/(abroad)20 lacs; AGM & DGM (India)
15/(abroad)25 lac
CSIS eligible. Loans in excess of Rs.10 lakhs
qualify for interest subsidy under CSIS Scheme
for amount up to 10 lakhs only.
No processing charges for studies in India &
0.58% for studies abroad
Suraksha insurance for students & parents
upto 50 yrs with their consent
1% int. concession for holiday int. service
0.5% int. concession for girl students
_____________________________________
302
_____________________________________
_____________________________________
_____________________________________
BR + 2%
_____________________________________
_____________________________________
Name
IOB - Royal
Target Group
Purpose
Quantum
Rate of Interest
repay up to 4 years
Repay 4 years<
: BR + 4.25%
: BR + 5.00%.
Security
Margin
NIL
Repayment
From 12 to 84 months
Holiday period
Priority status
No holiday period
Discretion
Remarks
NO
AGM : Rs. 10.00 lakhs
DGM : Rs. 15.00 lakhs
In the form of Cash Credit with monthly
reducing DP balance and to be reviewed
once in a year or as Demand Loan with
EMI
obtaining Post dated cheques
Processing Charges of Rs. 200/- per Lakh
subject to a maximum of Rs. 1000/-.
Ref: ADV/ 187 /2012-13 dt : 06.06.2012
_____________________________________
_____________________________________
303
_____________________________________
NIL
Similar to cash credit limits
NA
No
JM-2lacs, MM-II 3 lacs MM-III Rs.5 lacs,
SM-IV 10 lacs & AGM/DGM : Rs.10 lacs
Process. Charges Rs. 204/- per lac or
Part thereof with a max. of Rs.2040
For limits up to Rs.3 lakhs, net weight of
the jewels or Rs.3 lakhs whichever is
lower. For limits exceeding Rs. 3 lakhs,
20% of the projected turn over whichever
is lower
_____________________________________
_____________________________________
304
_____________________________________
Name
Liquirent
Target Group
Purpose
Solar Cookers
Solar Heaters
Quantum
Maxi.70% of rentals (net of service tax) for the unexpired lease period
less TDS @22.67% and rent advance taken if any OR discounted value
of @12.75% whichever is less subject to maxi.120 months rent including
renewal period
Rate of Interest
BR+5.00%
Security
Margin
Repayment
Holiday period
Priority status
Discretion
Remarks
Upto 2 lacs-Nil
> 2 lacs EM of the same property whose rent is charged to us or other
property valued 150% of loan amount. or Bank deposit,
NSC,KVP,IVP,LIC equal to loan amount or more
30%
Maxi.120 EMI
Nil
No
NON-CRE -For landlords/others-Scale I -5 lacs II-10 lacs-III-20 lacs,IV- 50
lacs, AGM Br-300 lacs/ DGM-600 lacsl
(Only floating rate is applicable for all fresh advances under retail credit schemes w.e.f 01.07.2011)
_____________________________________
_____________________________________
_____________________________________
Liquirent
Liquirent scheme was introduced during the year 2000 with a view to
provide loans against future rent receivables
The unexpired period of the current lease, as per the agreement, should not
be less than 36 months
The quantum of loan will be arrived at after reducing the advance rent and
TDS if any.
_____________________________________
_____________________________________
_____________________________________
There should not be any deviation in the norms for liquirent CRE exposure.
Advances under Liquirent Scheme should not be considered if the land lord
and the tenant are associates/subsidiaries/relatives.
srn/10.02.2013
Back to index
_____________________________________
_____________________________________
_____________________________________
Fund Based
Rs. 300 lakh
Rs. 300 lakh
Rs. 150 lakh
Rs. 30 lakh
RLCC can sanction Fund based limit upto Rs 3.00 Crore& NFB 1.50 Cr under
the above scheme irrespective of the category of branches on merits of the
case.
3. Security
4. Margin on Security
a. Liquid securities
i. Life policies - 10% of Surrender value
ii. KVP
iii. IVP
Margin in % terms
of Forced Sale Vale
of the properties
30
40
50
_____________________________________
_____________________________________
_____________________________________
5. Assessment of finance
a.
b.
a and b put together should not exceed the area specific limit subject to
Forced sale value of immovable property less margin and value less margin
in the case of liquid securities.
Other features/conditions:
If a client has more than one unit and he applies for the facility under this
scheme, the total liability need not be taken into account for determining
area specific limit provided different securities / properties are offered as
collateral for each unit.
6.
Advantages to customers:
Customers can avail finance for both working capital and term loan
requirement under one scheme.
Low interest rates
They are relieved of botheration of having to submit periodical stock
statement, financial statements and the insurance of stock is also not
insisted.
*****************
srn/08.05.2013
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_____________________________________
_____________________________________
_____________________________________
a. Eligibility criteria
DRI Scheme
a. The annual income ceiling for eligibility to borrow under DRI scheme is
Rs. 24000 per family in urban and semi-urban areas and Rs. 18000 in
rural areas.
b. He/she should not own any land or the size of the land holding should
not exceed 1 acre in the case of irrigated land and 2.5 acres in the case of
un-irrigated land.
c. Members of SC/STs are eligible for the loan irrespective of their land
holdings provided they satisfy the other criteria
The maximum loan amount per beneficiary under the scheme should not
exceed Rs. 15,000/- for working capital / term loan depending on the
nature and need of the activity and
Back to index
srn/30.07.2012
_____________________________________
_____________________________________
_____________________________________
These cards should be enabled for use at ATMs, Point of Sale(PoS) Terminals
at
Merchant
Establishments
and Micro
ATMs
with
Business
Correspondents.
ATM enabled Rupay Kisan Card are issued to all the new KCC accounts
A. Objectives/Purpose
Kisan Credit Card Scheme aims at providing adequate and timely credit
support from the banking system under a single window to the farmers for
their cultivation& other needs as indicated below:
I.
II.
B. Eligibility
a. All Farmers Individuals / Joint borrowers who are owner cultivators
b. Tenant Farmers, Oral Lessees & Share Croppers
c. SHGs or Joint Liability Groups of Farmers including tenant farmers, share
d. croppers etc
_____________________________________
_____________________________________
_____________________________________
Short term credit: The limit is to be fixed as above depending upon the
crops cultivated as per proposed cropping pattern for the first year and
an additional 10% of the limit towards cost escalation / increase in scale
of finance for every successive year (2nd, 3rd, 4th and 5th year). It is
assumed that the farmer adopts the same cropping pattern for the
remaining four years also. In case the cropping pattern adopted by the
farmer is changed in the subsequent year, the limit may be reworked.
The long term loan limit is based on the proposed investments during
the five year period and the banks perception on the repaying capacity of
the farmer
D. Maximum Permissible Limit: The short term loan limit arrived for the 5th
year plus the estimated long term loan requirement will be the Maximum
Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.
Fixation of Sub-limits for other than Marginal Farmers:
Short term loans and term loans are governed by different interest rates.
Besides, at present, short term crop loans are covered under Interest
Subvention Scheme/Prompt Repayment Incentive scheme. Further,
_____________________________________
_____________________________________
_____________________________________
repayment schedule and norms are different for short term and term loans.
Hence, in order to have operational and accounting convenience, the card
limit is to be bifurcated into separate sub limits for short term cash credit
limit cum savings account and term loans.
Drawing limit for short term cash credit should be fixed based on the
cropping pattern and the amounts for crop production, repairs and
maintenance of farm assets and consumption may be allowed to be drawn as
per the convenience of the farmer.
In case the revision of scale of finance for any year by the district level
committee exceeds the notional hike of 10% contemplated while fixing the
five year limit, a revised drawable limit may be fixed and the farmer be
advised about the same.
In case such revisions require the card limit itself to be enhanced (4th or
5th year), the same may be done and the farmer be so advised.
The short term component of the KCC limit is in the nature of revolving cash
credit facility. There should be no restriction in number of debits and
credits.
The drawing limit for the current season/year could be allowed to be drawn
using any of the following delivery channels.
a. Operations through branch
b. Operations using Cheque facility
c. Withdrawal through ATM / Debit cards
_____________________________________
_____________________________________
_____________________________________
The Kisan Credit Card should be valid for 5 years subject to an annual
review.
When the bank has granted extension and/or re-schedulement of the period
of repayment on account of natural calamities affecting the farmer, the
period for reckoning the status of operations as satisfactory or otherwise
would get extended together with the extended amount of limit.
When the proposed extension is beyond one crop season, the aggregate of
debits for which extension is granted is to be transferred to a separate term
loan account with stipulation for repayment in installments.
The scheme provides fixation of scale of finance for the first year and
subsequent increase for every successive year. Therefore documentation will
be done only for maximum limit so that there is no need for fresh
documentation during the validity of account.
Within the sanctioned limits the withdrawal limit may be fixed each year as
per the scale of finance. The maximum limit can be upscaled on the basis of
approximate future need but not above 125% of the present need.
The DPN and related documents should be taken for such higher amount
but actual disbursement will be as per current need
G. Repayment Period:
_____________________________________
_____________________________________
_____________________________________
H. Margin:
For crop loans, no separate margin need be insisted as the Margin is in-built
while fixing the Scales of Finance. For term loan component, our existing
margin norms will be followed.
I. Security:
Security will be applicable as under:
Hypothecation of crops up to card limit of Rs. 1.00 lakh as per the extant
RBI guidelines.
Collateral security may be obtained for loan limits above Rs.1.00 lakh in
case of non tie-up and above Rs.3.00 lakh in case of Sugar mill tie-up
advances.
J. Other features:
The KCC holder should have the option to take benefit of Assets Insurance,
Personal Accident Insurance Scheme (PAIS), and Health Insurance (wherever
product is available and have premium paid through his KCC account).
Necessary premium will have to be paid on the basis of agreed ratio between
bank and farmer to the insurance companies from KCC accounts.
One time documentation at the time of first availment and thereafter simple
declaration (about crops raised / proposed) by farmer from the second year
onwards.
No Processing fee should be charged up to a card limit of Rs.3.00 lakh.
The extant prudential norms for income recognition, asset classification and
provisioning will continue to apply for loans granted under revised KCC
Scheme.
_____________________________________
_____________________________________
_____________________________________
The premium burden will be shared between the KCC issuing branch and
the KCC holder in the ratio of 2:1.
This scheme will cover all the KCC holders against death due to accident or
permanent disability from accidents caused by external, violent and visible
means and occurring within the geographical jurisdiction of India.
This policy will cover the KCC holders up to the age of 70 years
Risk coverage:
a.
b.
c.
d.
Rs.50000
Rs.50000
Rs.50000
Rs.25000
_____________________________________
_____________________________________
_____________________________________
_____________________________________
316
_____________________________________
IOB ROSHINI
Target
Group
Purpose
Quantum
Rate of
Interest
Security
Margin
Repaymen
t
Holiday
period
Priority
status
Discretion
Remarks
BHOOMI SHAKTI
Women Farmers, comprising of the
following: (a) Women having farm
land in their own names (b) tenant
farmers, if the tenant is a woman
for all activities under Agriculture
Not fixed
Maxi. Rs.5000/-
Nil
AGRI-CLINIC
Agricultural graduates/graduates in
subjects related to agriculture like
horticulture, animal husbandry, fisheries
,dairy, veterinary, poultry, pisciculture
and other allied activities
To provide gainful employment to agrl.
graduates to set up Agri-clinics, AgriBusiness centres for input supply and
services to needy farmers.
Maxi. Project cost Rs.10 lacs for
individuals and Rs. 50 lacs for Group of 5
entrepreneurs.
Cash credit
Term loan
<=5yrs
5yrs<
Upto Rs.5 lac BR + 1.75% +1.25%
+1.50%
5lac25lacs
BR + 3.25% +2.25%
+2.50%
25lac-100lacs
BR+3.25%
+2.75% +3.00%
Rs.100 <
RAM rating +3.25% +3.50%
Upto Rs.5 lacs-Nil
> 5 lacs- Collateral/guarantee
Upto Rs. 5 lacs Nil > 5 lacs 15-25%
5-10 years depending upon the activity
Nil
Branch Manager
Yes
Direct Agri advances
Per Borrower limit or maximum specified
in the scheme whichever is lower
_____________________________________
_____________________________________
_____________________________________
Target
Group
Purpose
Quantum
Rate of
Interest
Security
Margin
Repayment
Holiday
period
Priority
status
Discretion
Remarks
No holiday period
Priority sector
1.
2.
Priority sector
No margin up to 1 lakh
_____________________________________
317
_____________________________________
_____________________________________
_____________________________________
Priority
Per Borrower limit or maximum specified in
the scheme whichever is lower
Mortgage of small patches of scattered land
should not be allowed
GL code 4114-22
_____________________________________
Name
Target Group
Purpose
Quantum
Rate of
Interest
Security
Margin
Repayment
Holiday
period
_____________________________________
BHUMILAKSHMI
Small and marginal farmers/Share croppers /
Tenant farmers/ Total land owned by the
borrowers including the land to be
purchased under the scheme should not be
more than 5 acres of un irrigated land or
2.50 acres irrigated land
to provide land to the Small and Marginal
Farmers / Share croppers / Tenant farmers to
possess and cultivate land.
BR + 1.25%
Nil
Nil
60 EMI
Maxi 60 EMI
Nil
Nil
Priority status
Yes
Discretion
Remarks
_____________________________________
318
_____________________________________
_____________________________________
_____________________________________
Name
Target Group
Purpose
Quantum
Solar Cookers
Solar Heaters
Security
Solar Cookers
Solar Heaters
Rate of
Interest
319
_____________________________________
_____________________________________
Margin
Repayment
Maximum up to 5 years
Maximum up to 5 years
No holiday period
No holiday period
..
No Non Agri
Holiday
period
Priority
status
Discretion
Remarks
The Present Base rate of our Bank is 10.25% w.e.f 18.02.2013 Interest rates are subject to change in Base Rate
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Whenever Bank takes over borrowal accounts from other Banks / Financial
Institutions / Agencies / NBFCs and the following guidelines will be adhered to:
1.
Only borrowal accounts which are standard and performing for the past one
year will be taken over.
2.
No borrowal accounts should be taken over from any Bank where any of our
ED or CMD have worked earlier.
3.
Take over accounts falling under the purview of CRISIL RAM rating should
have a minimum rating equivalent to IOB 5.
4.
5.
6.
7.
The project should not be in the implementation phase at the time of take
over of the loan.
8.
Treatment as takeover
Before taking over, credit report from transferor bank should be obtained.
No waiver.
While take over accounts, the remaining repayment period shall not be
extended, No waiver shall be permitted at any level for this.
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9.
Rating
i.
ii.
Internal Rating:
Accounts shall be with the rating equivalent IOB 1 to IOB 5.
External Rating:
Wherever external rating is available, the rating shall be not less than
investment grade (BBB and above).
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Normally Excess should not be granted during first 3 months from the date
of sanction.
headed
Excess can be allowed for 10 times subject to the total period of excess not
exceeding 50 days per year and subject to each excess not exceeding a
maximum period of 5 days
10% of the limit (i.e. the specific facility) sanctioned to a borrower by any
layer of authority or 10% of the discretionary powers of the Branch Head
under per borrower limit whichever is lower subject to availability of
adequate drawing power (DP).
If the above forced excess is not regularized within 15 days, such excess will
be treated as excess and the number of days the excess remained in the
account will be taken into account for calculation of aggregate period of 50
days that can be allowed per year for that account.
With regard to excess drawals in working capital limits other than cash
credit account, the excess allowed on any one occasion should be adjusted
within a maximum period of 30 days (as against 5 days allowed for CC
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account) and the maximum number of days for which excess can be allowed
in a year will be 50 as applicable to cash credit accounts.
Regional Heads and above can allow excess for a maximum period of 30
days (as against 5 days for Branch Heads). However, the total no. of days
permissible for allowing excess to a borrower in a financial year should not
exceed 90 days, including the 50 days permitted for Branch Heads. These
guidelines are applicable for Cash Credit as well as other than Cash Credit
accounts
Regional Heads and above are empowered to allow excess irrespective of the
ratings of the borrowal accounts as also for unrated accounts, on merits of
the case within the delegated powers vested with them for granting excess
D. Reporting
Any excess given under the Branch Managers delegated powers has to be
reported to the Regional Office in CAF-1 statement on a monthly basis.
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The decision on the excess report (i.e. to ratify or reject such excess) should
be taken by the appropriate authority within 15 days of the receipt of
the report.
In any event, it should be ensured that a decision either way is taken within
a period of one month of receipt of the original report. Otherwise, the
transaction in question shall be deemed to have been ratified by the
appropriate authority.
F. Unauthorised excess:
In case such excess drawings are declined by R.O. / C.O., efforts should be
taken by Branch/R.O./C.O., to ensure that the account is regularized
immediately.
25% of the limit (i.e specific facility) sanctioned to a borrower by any layer of
authority or 25% of the discretionary powers of the Branch Head under per
borrower limit whichever is less.
Adhoc limits can be granted only 2 times in a year for an account, subject
to each adhoc not exceeding 90 days on any one occasion.
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granted for bills purchasing / discounting limits which are of self liquidating
nature.
RLCCs and above are empowered to sanction adhoc limits irrespective of the
internal ratings of the borrowal accounts as also for unrated accounts, on
merits of the case, within the delegated powers vested with them for adhoc
limits.
Extension of adhoc facility can be permitted by RLCC (GM) / HLCC (GM) for
the adhoc facilities sanctioned upto their level for 30 days.
Extension upto 90 days can be permitted by HLCC (ED) for the adhoc
facilities sanctioned upto and including the level of HLCC (ED); CAC can
permit extension of adhoc facility sanctioned by CAC/ MCB.
srn/18.05.2013
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Appraisal of proposals
First Line Manager of the branch, Second Line Manager in charge of
advances and the officer who had prepared the proposal will be jointly
responsible for the appraisal content of the proposal.
All parties including the guarantors to a borrowal account should be
subjected to KYC procedure and due diligence. Failure to do so, will
attract joint responsibility of First Line Manager, Second Line Manager in
charge of Advances Department and the officer who had prepared the
proposal.
All the business proposals shall be prepared by an officer attached to
advances department and signed by him along with the Second Line
Manager in charge of advances department and the First Line Manager.
In a branch where no separate advances officer is functioning and the
portfolio is looked after by the Second Line Manager , that fact should be
recorded in the proposal itself.
For this purpose the First Line Manager should clearly mention in the
periodical office order, the portfolios of each Supervisory Staff in the
branch and get their acknowledgement thereon.
The office order book should be in the custody of the First Line Manager
of the branch. Failure to do so will attract sole responsibility of the
Branch Manager.
For AGM/DGM headed branches, the proposals beyond the discretionary
powers of Scale IV officer are to be routed through approval grid.
Compliance with
Endorsement
the
Terms
and
Conditions
of
the
Sanction
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Documentation
No loans or advances shall be released without obtaining proper
documents, complete in all respects.
The Second Line Manager of the branch in charge of the advances
department should give a certificate to the Branch Manager before
disbursement of loans/ advances that all the relevant documents for
releasing the facility have been obtained, duly filled in and completed and
signed by the Executants in the capacity intended.
This certificate should be obtained by First Line Branch Manager in
respect of each loan/ advances from the Second Line Manager of the
branch in charge of the advances department or in his absence from the
advances department officer who is authorised to release the facility.
If the branch is manned by only one Manager, the Manager should
himself send the certificate to Credit Department, Regional office keeping
the copy with the documents.
First Line Branch Manager should not disburse the loan /credit facility
without obtaining this certificate.
If such a certificate is not submitted by the Second Line Manager and the
First Line Manager authorises release of loan/ facility, then the First Line
Manager will be solely responsible for deficiencies in documentation.
In case of any non co-operation by the Second Line Manager or the
advances department officer as the case may be, the First Line Manager
should file a report with Regional Office that because of non co-operation
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If such a report had been filed, then the Second Line Manager will also be
jointly responsible for deficiency in documentation.
Reporting
Documentation Execution Register with perforated sheet should be
maintained by branch as per instructions in force. The perforated sheet
should be sent along with the appraisal note, sanction endorsement to
Credit Monitoring Department, Regional office along with CAF1 control
return.
Failure to do so, will attract joint responsibility of the First Line Manager,
Second Line Manager in charge of Advances Department and the officer
who had prepared the proposal / officer who had disbursed the loan /
facility.
Vetting of documents
For limits over Rs.1 Crore and upto Rs.10 Crores the documents have
to be vetted by Lawyers in Banks approved panel and certified by Second
line officers at branches before release of limits. A certificate to this effect
should be kept with the documents.
For limits above Rs.10 Crores and upto Rs.50 Crores the documents have
to be vetted by Lawyers in Banks approved panel and certified by Second
line officers at Branches. The certificate regarding vetting has to be sent
to Regional Office, based on which Regional Office will permit release of
limits. Only on receipt of confirmation from Regional Office the limits can
be released.
For limits above Rs.50 Crore, the documents have to be vetted by
Lawyers in Banks approved panel and certified by Second line officers of
the branch and the same is to be sent to concerned Credit Departments
at Central Office who will permit release of the limits. Only on receipt of
such confirmation from Central Office the limits can be released.
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Monitoring of Accounts
Monitoring should be done through verification of debits made in the
account, periodical inspection of stocks as per laid down procedure,
perusing the periodical stock statements, continuous surveillance
statements, prompt renewal of the account, adequate and live insurance
policies, Registration of charge with the Registrar of Companies,
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srn/04.04.2013
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4. The following types of advances are exempted from purview of Loan Review
Mechanism:
a.
b.
c.
d.
Standalone term loans where simple review has been done and where
outstanding has been allowed to run off
Branches shall submit LRM-1 form only to the respective Regional Office
LRM-1 should reach Regional Office within 90 days from the date of sanction
or renewal.
srn/15.05.2013
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Restructuring of advances
General Guidelines & Instructions of RBI
Restructuring
would
normally
involve
modification
of
terms
of
advances/securities, which would generally include, among others, alteration of
repayment period/repayable amount/amount of instalments/rate of interest
etc.
Customer should agree for the changes/alterations in the terms and conditions
on restructuring
Specified period means a period of one year from the date when the first
payment of interest or instalment of principal falls due, as per restructuring
package.
borrowal
accounts
with
- CC accounts: The account should not be out of order anytime during the
specified period for a duration of more than 90 days AND there should
not be any overdue at the end of the specified period
- TL accounts:
No payment of instalment should remain overdue for a
period of more than 90 days AND there should not be any overdue at the
end of the specified period
Agri Accounts:
period
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ii. Infrastructure projects with adequate cash flow for repayment and
appropriate mechanism to escrow cash flows with clear and legal first
claim on cash flows
iii. Dues of Micro Finance Institutions (MFIs) restructured up to March 31,
2011
BIFR cases are not eligible for restructuring without their express approval.
10 years for
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Credit Monitoring
1. Standard Assets showing overdue for more than one month are classified as
Watch Category accounts
2. Loan Review Mechanism is an off-site audit procedure with the main
objective of ensuring compliance of terms and conditions of sanction and post
sanction processes laid down by the Bank from time to time.
3. Credit Audit is an on-site audit function Credit Risk mitigation tool to be
used by the Sanctioning Authorities to evaluate the quality of Loan asset and to
take appropriate decisions in the best interests of the Bank.
4. The inspection of godown should be carried out meticulously as per terms of
sanction. Normally for all advances unit inspection will be conducted on
monthly basis.
5. QIS forms: Submission of QIS forms I, II & III is discontinued.
6. CMA data: In all cases where working capital limits are Rs 2 crore and above
CMA data will be called for, along with audited balance sheets.
7. Auditors Certificate: Whenever the borrower is advised to produce auditors
certificate by the Bank, during the course of dealing with the borrower in
respect of finance made to them, such auditors certificates should be obtained
from the Auditor who has originally audited and certified the books of
accounts of the concern/firm/ company.
8. Review/Renewal of borrowal account:
All the credit limits are renewed / reviewed at least once in a year
Review/Renewal of borrowal accounts sanctioned will be ensured within 3
months from due date.
Secured term loans /Demand loans granted for approved purposes, against
various securities such as gold ornaments, NSC/LIC policies/Resurgent
India Bonds/IMDs etc are allowed to run off and once sanctioned by the
authority, they are not subject to renewal but only review.
Term loan accounts should be reviewed periodically at least once in a year.
All
mortgaged
property
review/renewal of limits
obtained once in 3 years.
shall
and
be
physically
inspected
encumbrance
certificate
before
to be
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_____________________________________
Credit Sanctions (including term loans) are valid for 6 months from the date
of sanction. Unless availed within this period, they require revalidation by
sanctioning authority.
Sanctions by MCB can be considered for revalidation by CAC and for others
by the respective authority who has sanctioned the loan.
11.
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13.
Quick mortality
The Bank will classify accounts that become NPA within a year of its
sanction as quick mortality. Annual review of such accounts will be done.
14.
Willful defaulters
Entrepreneurs/promoters of Companies where diversion of funds, siphoning
of funds, misrepresentation, falsification of accounts and fraudulent
transactions have been identified by Other Banks/FIs will be debarred from
financial assistance from us for a period of 5 years from the date the name
of Willful Defaulter is disseminated in the list of Willful Defaulters by RBI.
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srn/14.05.2013
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SARFAESI Act 2002 is one of the tools available with Bankers for recovery of
NPAs, without intervention of Court.
Fax Message
b. Speed Post
c.Courier
e. E-mail.
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If the service of notice cannot be made as aforesaid for the reason that
the borrower is avoiding the service or otherwise, then
2. One office copy of the notice together with proof of despatch and
acknowledgement, newspaper publication of notice and any undelivered
covers without being opened etc. must be kept by the branch/Authorised
officer as proof which may require on a later date.
3. If the borrower makes any objection or representation after the receipt of the
demand notice, Authorised Officer shall communicate his reply within 15
days of receipt of such objection u/s 13 (3A).
4. If the borrower does not pay the demanded amount in 60 days the
Authorised Officer can take possession on the secured asset (as detailed in
Sec 13 (4) of the Act, including the right to transfer by way of lease,
assignment or sale.
Taking possession should be in the presence of two witnesses (preferably
independent witnesses)
If secured assets are movable;
Simultaneously inventory should be prepared by the Authorised Officer
in the specified format and one copy should be delivered to the borrower
or the guarantor as the case may be.
The movable assets taken possession should be immediately transferred
to a nearby godown for storage and protection.
If insurance cover is available, the insurer should be informed.
Insurance cover, if not available, then insurance should be taken
immediately (Rule 4(3)).
If the property taken into possession is subject to natural decay or the
expenses of keeping such property in custody is likely to exceed its value,
the authorized officer may sell it.
5. Possession Notice shall also be published, as soon as possible but in any
case not later than seven days from the date of taking possession, in 2
leading newspapers, one in vernacular having sufficient circulation in that
locality by the authorised officer. Branches can consider publishing the
photos in the SARFAESI possession notices.
6. Authorised officer should obtain a valuation report from one of our approved
valuers. Approved valuer means a person registered as valuer under
section 34AB of the Wealth-Tax Act, 1957.
7. Thereafter, the Authorised Officer should fix the Reserve price, which
should not be less than the estimated value; in consultation with Regional
Office/SARFAESI committee.
8. Authorised Officer should issue 30 days notice for sale under section 13(4).
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10. The authorised officer may sell the secured assets taken on possession
through e_auction, as per the directives of Ministry of Finance.
For the purpose of e_auction, the services of any one of the following
service providers is to be used.
Sl.No
1.
2.
M/s.AbcProcure
B-704/705, Wall Street II
Nr.Gujarat college, Ellisbridge
Ahamedabad 3800006
Tel. +917640016843
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Aggrieved party can prefer an appeal before DRAT within 30 days from the
date of receipt of DRTs order.
The appeal will be entertained only if the borrower has remitted 50% of the
debt demanded by the Bank or determined by DRT whichever is less.
The DRAT has the discretion to reduce the deposit to 25% of the above
amount.
accountsRespective
GMs
handling
credit
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Which remains out of order for more than 90 days in respect of an OD/CC
account?
(An account is treated as out of order if;
The outstanding balance remains
limit/DP.
Account where the regular/ad hoc credit limits have not been
reviewed/renewed within 180 days from the due date/date of adhoc
sanction.
Submission of stock statements older than 3 months.
No credit in the account for a period of 90 days
Credit in the account not adequate for servicing interest.)
A bill remains overdue for a period of more than 90 days from the date of
purchase or in the case of bills purchased and 90 days from due date in the
case of bills discounted.
Agricultural advances :
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A loan granted for short duration crops will be treated as NPA, if the
instalment of principal or interest thereon remains overdue for two crop
seasons.
A loan granted for long duration crops will be treated as NPA, if the
instalment of principal or interest thereon remains overdue for one crop
season. For the purpose of these guidelines, long duration crops would
be crops with crop season longer than one year and crops, which are not
long duration crops would be treated as short duration crops. The
crop season for each crop, which means the period up to harvesting of the
crops rose, would be as determined by the State Level Bankers Committee
in each State.
Income Recognition policy
The policy of income recognition has to be objective and based on the record of
recovery
Reversal of Income
If any advance, including bills purchased and discounted, becomes NPA, the entire
interest accrued and credited to income account in the past periods, should be
reversed if the same is not realized. This will apply to Government guaranteed
accounts also.
B. Asset Classification:
categories
a. Standard assets
c. Doubtful Assets
d. Loss assets
i. Performing Asset:
Standard asset: An asset which is not an NPA.
ii. Nonperforming Assets:
Sub-standard Asset:
exceeding 12 months
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Doubtful asset: An asset which has remained NPA for a period of exceeding
12months
Loss Asset: An Asset where loss has been identified by the Bank or internal or
external auditors or RBI Inspectors
Borrower wise: Assets are classified on borrower wise and not on facility
wise. Therefore, all the facilities granted by a bank to a borrower will have to
be treated as NPA, even if one of the facilities becomes NPA and not the
particular facility.
If the erosion in the value of security is more than 50%, such NPAs may be
straightaway classified under doubtful category and provisioning should be
made as applicable to doubtful assets
If the realisable value of the security, due to erosion, as assessed by the bank/
approved valuers/ RBI is less than 10 per cent of the outstanding in the
borrowal accounts, the existence of security should be ignored and the asset
should be straightaway classified as loss asset
In cases of serious credit impairment the asset (due to fraud or so), such
accounts should be straightaway classified as doubtful or loss asset as
appropriate:
C. Provisioning Norms
The primary responsibility for making adequate provisions for any diminution in
the value of loan assets, investment or other assets is that of the Bank
Management and statutory auditors.
Loss Assets:
Doubtful assets: 100 % of the extent to which the advance is not covered by
realizable value of the security.
Plus
For secured portion, provision may be made depending upon the period for
which the asset has remained doubtful.
Period for which the
asset remained
doubtful
Provision
required
up to 1 year
25 %
One to 3 years
40 %
100 %
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Provision
required
0.25 %
1.00 %
Other advances
0.40 %
2.75%
2.75%
2.75%
srn/15.05.2013
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The Registry has come into operation from 31st March 2011.
Any person can also search and inspect the records maintained by the Registry
on payment of fees prescribed under the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest (Central Registry) Rules,
2011.
Following are the key Goals and Objectives of the Central Registry System:
To provide mechanism for registration of transaction of securitization and
reconstruction of financial Asset and security interest created under
SARFAESI.
To develop a web based system for financial institutions and general public
to access this information.
To enable lenders and other stake holders to get real time current
information regarding the securities being mortgaged by borrower.
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assets
with
information
about
any
Entity Registration can be done by Central Registry admin user through web
portal www.cersai.org.in. Link for registration will be provided to him once he
logs on to the system
As per sec-27 of the SARFAESI Act, non-registration within the time stipulated
will be treated as a default and is punishable with fine upto Rs.5000 per day.
This fine is not applicable for registration of cases where mortgage was created
prior to 31.03.2011.
S.
No
Nature of transaction to be
registered
Form No.
Particulars of creation or
modification of security
interest in favour of secured
creditors
FORM 1
FORM II
Particulars of securitization or
reconstruction of financial
FORM III
Rs.250
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assets
Rs.1000
Particulars of satisfaction or
securitization or
reconstruction transactions
FORM 1V
Rs.250
Rs.50
Not exceeding Rs. 2500 in case
of creation of security interest
for a loan upto Rs. 5 lakh and
not exceeding Rs. 5000 in all
other cases.
The fee as shown above is to be collected from the customer to the debit of his
account and credit the amount to Sundry creditors account. Then transfer the
amount to current account No.970749 with Cathedral branch (code No.109).
srn/04.04.2012
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Basel II accord has laid down the method of calculating the minimum capital
requirements. This covers credit risks, market risks and operational risk.
Capital to Risk weighted Assets ratio (CRAR) is calculated as follows;
Eligible total capital funds
CRAR
Banks are financial institutions subject to various risks both financial and
non-financial. Credit risk, interest rate risk, liquidity risks, legal risk operational
risks etc. These are highly interdependent events. However, they are broadly
classified in to Credit risk, Market risk and operational risk.
Credit risk is the possibility of losses sourced by default due to inability or
unwillingness of a customer or counterparty to meet commitments relating to
lending, trading, settlement and other financial transaction. Basel Committee
suggests the following approaches for calculating Capital adequacy ratio.
1. Standardised approach
2. Internal rating based (IRB) approaches
o
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(BCBS)
has
issued
Basel III: A global regulatory framework for more resilient banks and
banking systems and
Basel III: International framework for liquidity risk measurement,
standard and monitoring in December 2010.
The reform package addresses the lessons of the financial crisis and aims at
enhancing banking sectors ability to absorb shocks arising from financial
and economic stress.
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However, under Basel III, with a view to improving the quality of capital,
the Tier 1 capital will predominantly consist of Common Equity.
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Valuation of securities
Fair Market Value is the price that would be agreed to in an open and
unrestricted market between knowledgeable and willing parties dealing at
arms length who are fully informed and are not under any compulsion to
transact.
Gross Book Value of a Fixed Asset is its historical cost or other amount
substituted for historical cost in the books of account or financial
statements.
Net book value :When the fixed asset is shown as net of accumulated
depreciation.
The immovable property mortgaged as First Charge to the Bank for any
advance shall be revalued at least once in 3 years, by our panel valuer.
For our banks empanelment, the valuer has to register himself under the
Wealth Tax Act ( Sections 34 AA to 34 AE ).
Desk Top Valuation (DTV) is valuation done by the First Line Manager,
based on the property demarcation furnished in the legal opinion of the
Banks approved counsel, fair market value ascertained from the local
residents and visit to the site.
In cases of Standard Assets with limits of Rs. 25 Lakhs and below, DTV
by branch managers must be undertaken once in three years.
For all loans above the limit of Rs.50 lacs, 100 % physical verification of
assets has to be done.
Valuation Report should be obtained from one valuer for all properties
valued up to Rs. 5 Crores.
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If the variation in the two valuations is not more than 10%, the lower value
of the two, should only be accepted.
If the variation is more than 10%, a third valuer will be engaged at the cost
of borrower and of the three valuations, lowest would be taken as the fair
market value of the property.
The approved valuer should verify the legal opinion of the properties,
furnished by Banks legal counsel. It should form an integral part of the
valuation report.
In case of standard assets with limits exceeding Rs.25 lacs, the legal
opinion which would be a part of the valuation report should contain a
clause that the lawyer has personally visited the Registrar Office, searched
the records and ensured the correctness of the entries in the Registry and
there is no omission of any encumbrances in the E.C.
For all NPA accounts (irrespective of the limits) the valuation of property
is required to be done once in three years.
In the case of Agricultural Advances for more than Rs. 5 Lakhs, the
valuation should be done by a competent person approved by the Bank.
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Investments in India are classifed into Held for Trading, Available for
Sale and Held to Maturity categories in line with the guidelines of RBI.
Individual securities under Held for Trading and Available for Sale
categories are marked to market at quarterly intervals.
Held to Maturity
cost/amortised cost.
investments
Premises
: 2.50 %
Furniture
: 10 %
are
carried
at
acquisition
: 33 1/3 %
srn/04.04.2012
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Computation
11. The process for computation of credit risk capital under the Standardized
Approach (SA) starts with the segmentation of the balance sheet assets,
non-funded items and other off-balance sheet exposures.
12. The segregation of the exposures to any one of the above categories has to
be done counter-party / customer wise (ie. taking into account all the fund
and non-fund based exposures of a customer). The equivalent credit risk
exposure for the off-balance sheet items for the purpose of computation of
risk-weighted assets has to be arrived at by multiplying the face value of
each of the off-balance sheet item by a credit conversion factor (CCF).
: 50%
:100% &
for LC I
: 20%
: 20%
: 50%
Performance guarantees
Performance of Contract
Payment of Bills
Warranty Period
Retention Money
Drawing funds against part execution
Bid Bond
EPCG
Security Deposit
Earnest Money
Release of Goods
Disputed Liability
14. The exposures have to be multiplied by the risk weights assigned to the
relevant counter-party for arriving at Risk Weighted Asset (RWA).
15. The Reserve Bank of India has decided that banks may use the ratings of the
following international credit rating agencies for the purposes of risk
weighting their claims for capital adequacy purposes where specified:
a) Fitch;
b) Moodys; and
16. RBI has identified four domestic External Credit Rating Agencies (ECRAs)s
for the purpose of risk weighting for borrowers for capital adequacy purpose.
Based on term of exposure, the ratings given by ECRAs shall be either Long
Term or Short Term. The names of rating agencies are:
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Small business is one where the total annual turnover is less than Rs.50
crore.
The turnover criterion will be linked to the average of the last three years
in the case of existing entities;
Both actual and projected turnover for entities which are yet to complete
three years.
NPA under retail loans are to be excluded from the overall regulatory
retail portfolio when assessing this granularity criterion.
_____________________________________
_____________________________________
_____________________________________
For this purpose, the exposure would mean sanctioned limit or the actual
outstanding, which ever is higher for all fund based and non-fund based
facilities, including all forms of off-balance sheet exposures.
In the case of term loans and EMI based facilities where there is no scope
for redrawing any portion of the sanctioned amount, the exposure would
mean the actual outstanding.
If LTV ratio is above 75% and loan amount is below 75 lacs, risk
weight is 100%
If the loan amount is Rs.75 lacs or more, irrespective of the LTV ratio
risk weight is : 125%
20. Bank has to maintain capital for undrawn amounts (sanctioned and not
availed).
21. Risk weight for Specified categories
_____________________________________
_____________________________________
_____________________________________
Staff Loans: Loans and advances to banks own staff, which is fully
covered by superannuation benefits and/or mortgage of flat/house, will
attract a 20% risk weight.
Other loans and advances to banks own staff will be eligible for inclusion
under regulatory retail portfolio and will therefore attract a 75 per cent
risk weight.
22. Risk weight for Non Performing Assets (NPA) other than qualifying
residential mortgage loan:
If the specific provisions are 50% or more the applicable risk weights
will be 50%
Only Cash, Deposit, LIC surrender Value and Gold will be eligible for
Financial mitigants (Security).
_____________________________________
_____________________________________
_____________________________________
April 1,
2013
March
31,
2014
March
31,
2015
March
31,
2016
March
31,
2017
March
31,
2018
Minimum
Common
Equity Tier 1
(CET1)
4.5
5.5
5.5
5.5
5.5
Capital
conservation
buffer (CCB)
0.625
1.25
1.875
2.5
Minimum
CET1+ CCB
4.5
6.125
6.75
7.375
Minimum Tier
1 capital
6.5
Minimum Total
Capital*
Minimum Total
Capital
+CCB
9.625
10.25
10.875
11.5
Phase-in of all
deductions
from
CET1(in%)
20
40
60
80
100
100
_____________________________________
_____________________________________
_____________________________________
srn/16.05.2013
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_____________________________________
_____________________________________
_____________________________________
'Floating Provisions' held by the banks, which is general in nature and not
made against any identified assets, may be treated as a part of Tier II capital
within the overall ceiling of 1.25 percent of total risk weighted assets.
Excess provisions which arise on sale of NPAs would be eligible Tier II capital
subject to the overall ceiling of 1.25% of total Risk Weighted Assets
_____________________________________
_____________________________________
_____________________________________
Banks should not issue Tier 1 or Tier 2 capital instruments with step-up
option so that these instruments continue to remain eligible for inclusion in
the new definition of regulatory capital. However, such instruments can be
issued with only call option as per existing rules.
Market risk is defined as the risk of losses in on-balance sheet and off-balance
sheet positions arising from movements in market prices.
Capital for market risk would not be relevant for securities, which have
already matured and remain unpaid.
These securities will attract capital only for credit risk. On completion of 90
days delinquency, these will be treated on par with NPAs for deciding the
appropriate risk weights for credit risk.
Computation of capital charge for market risk: The Basel Committee has
suggested two broad methodologies for computation of capital charge for market
risks
1. the Standardised method and
2. the banks Internal Risk Management models (IRM) method.
Capital for market risk would not be relevant for securities, which have already
matured and remain unpaid. These securities will attract capital only for credit
risk.
Banks shall continue to apply the Standardised Duration Approach (SDA) for
computing capital requirement for market risks.
_____________________________________
_____________________________________
_____________________________________
All commercial banks in India shall adopt Standardised Approach (SA) for
credit risk & Basic Indicator Approach (BIA) for operational risk.
Basel III :
Implemented w.e.f 01.04.2013. The Basel III capital ratios will be fully
implemented as on March 31, 2018.
The capital requirements for the implementation of Basel III guidelines may
be lower during the initial periods and higher during the later years.
srn/04.05.2013
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_____________________________________
_____________________________________
_____________________________________
Domestic scheduled commercial banks (other than RRBs) are free to open
branches in Tier 3 to Tier 6 centres as identified in the Census 2001
(with population up to 49,999) under general permission.
New private sector banks are required to ensure that at least 25% of their
total branches are in semi-urban and rural centres on an ongoing basis.
Semi-urban centre
Urban centre
Metropolitan centre
Tier 1 -
Tier 2-
50,000 to 99,999
Tier 3-
20,000 to 49,999
Tier 4-
10,000 to 19,999
Tier 5-
5,000 to 9,999
Tier 6-
Further, new private sector banks are required to ensure that at least
25% of their total branches are in semi-urban and rural centres on an
ongoing basis.
Back to index
_____________________________________
_____________________________________
_____________________________________
Base Rate
The Base Rate system replaced the BPLR system with effect from July 1,
2010.
Base Rate shall include all those elements of the lending rates that are
common across all categories of borrowers.
All categories of loans (exempted categories are give below) should are priced
only with reference to the Base Rate.
DRI advances
b.
c.
Since the Base Rate is the minimum rate for all loans, banks are not
permitted to resort to any lending below the Base Rate.
Base rate will be arrived at taking the following factors into consideration.
o
Cost of deposits/funds
Cost of capital
Incidence of NPA
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Filing FIR separately then and there in case of detection of five or more
in a single transaction.
srn/17.03.2013
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_____________________________________
_____________________________________
_____________________________________
SEBI has introduced an alternative mode of payment for Initial Public Offer
called Application Supported by Blocked Amount
Under this process, the application amount will be blocked and will be
debited to applicants account only upon allotment.
In case of part allotment, part amount only will be debited and the block for
the remaining amount will be removed.
Similarly, in the case of non-allotment, block for the entire amount will be
removed.
In order to encourage ASBA facility, ASBA banks are now being offered a
marketing fee by the issuing companies.
Our Bank has been recognized as ASBA Bank (SCSB) by SEBI, included in
SCSB list w.e.f 15.11.2010 and permitted to accept the ASBA Applications
from 01.12.2010.
After approval of the entries, the bank accounts (with any branch of our
Bank) except specialized branches) are blocked to the extent specified by
investors.
RTA finalises allotment and sends file to each ASBA Bank i.e. to the
Controlling Branch
The ASBA Application will be retained by the SCSB for a period of 6 months
and thereafter forwarded to the issuer.
As the Bank account and demat account of the customers are being opened
at Banks/DPs only after complying with all KYC norms including verification
of PAN, there is no responsibility for the branch receiving the ASBA
application form.
Even the account holder can be different from the applicant. Hence, ASBA
application has a provision for the signature of the applicant and of the
account holder.
_____________________________________
_____________________________________
_____________________________________
As the applicant can be different from the account holder ASBA is very
useful for contributing to CASA of the Bank. People who want to apply
through ASBA bring their deposit into our bank account.
Only for blocking the account, the branch has to verify the signature with
that available in the application or in the relevant box (if the applicant is
different from account holder).
After finalisation of the basis of allotment, when the data provided by the
Registrar is run at the controlling branch, amounts in the accounts held at
various branches are automatically debited/part-transferred/ unblocked
depending upon the status of allotment. The Escrow account opened at the
controlling branch is also credited automatically.
The funds collected in the account are transferred to the account of Bankers
to the Issue/Company as the case may be by means of RTGS.
No ASBA application completed in all respects and which is eligible for being
accepted can be rejected by any of the branches of the Bank for any reason.
Back to index
_____________________________________
_____________________________________
_____________________________________
Customer Service
Business hours
No particular banking hours have been prescribed by law.
Hence banks may fix, after due notice to its customers, whatever business
hours are convenient to it i.e., to work in double shifts, to observe weekly
holiday on a day other than Sunday or to function on Sundays in addition to
the normal working days, subject to observing normal working hours for
public transactions.
Banks should extend business hours for banking transactions other than
cash, up till one hour before close of the working hours.
Helping customers
All branches, except very small branches should have Enquiry or May I
Help You counters either exclusively or combined with other duties, located
near the entry point of the banking hall.
_____________________________________
_____________________________________
_____________________________________
Operation in old/sick account holders With a view to enabling the old / sick
account holders operate their bank accounts, banks may follow the
procedure as under;
o
Where the customer cannot even put his / her thumb impression and
also would not be able to be physically present in the bank, a mark can
be obtained on the cheque / withdrawal form which should be
identified by two independent witnesses, one of whom should be a
responsible bank official.
The customer may also be asked to indicate to the bank as to who
would withdraw the amount from the bank on the basis of cheque /
withdrawal form as obtained above and that person should be identified
by two independent witnesses. The person who would be actually
drawing the money from the bank should be asked to furnish his
signature to the bank
_____________________________________
_____________________________________
_____________________________________
Banks to implement the recommendation of the Goiporia Committee dishonoured instruments are to be returned / despatched to the customer
promptly without delay, in any case within 24 hours.
srn/12.05.2013
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_____________________________________
_____________________________________
_____________________________________
Compensation Policy
This policy is to establish a system whereby the bank compensates the customer
for any financial loss he/she might incur due to deficiency in service on the part of
the bank or any act of omission or commission directly attributable to the Bank
Policy covers only compensation for financial losses which customers might incur
due to deficiency in the services offered by the bank which can be measured
directly.
1. Unauthorised/Erroneous debit
Further, if the customer has suffered any financial loss incidental to return
of a cheque or failure of direct debit instructions due to insufficiency of
balance on account of the unauthorised/erroneous debit, the bank will
compensate the customer to the extent of such financial losses.
In case, the verification involves a third party, the bank shall complete the
verification process within a maximum period of one month from the date of
reporting of erroneous transaction by the customer.
The bank would compensate the customer forthwith without demur, where
the bank is at fault.
_____________________________________
_____________________________________
_____________________________________
Even when the bank or the customer is not at fault, and the fault lies
elsewhere in the system, then also bank would compensate the customer.
3. Where it is established that the bank had issued and activated a credit card
without written consent of the recipient, the bank would not only reverse the
charges immediately but also pay a penalty without demur to the recipient
amounting to twice the value of charges reversed as per regulatory guidelines
in this regard.
4. Payment of cheque after stop payment instructions:
Bank will compensate the customer for undue delays in affording credit once
proceeds are credited to the Nostro Account of the bank with its
correspondent.
Inward remittances will be credited within 7 days from the date of credit in
our nostro account, if the beneficiarys account particulars are available
correctly.
6. Violation of the Code by banks agent: In the event of receipt of any complaint
from the customer that the banks representative/courier or Direct Selling Agent
has engaged in any improper conduct or acted in violation of the Code of Banks
Commitment to Customers which the bank has adopted voluntarily, bank shall
take appropriate steps to investigate and to handle the complaint and to
compensate the customer for financial losses, if any.
7.
Duplicate draft will be issued within a fortnight from the receipt of such
request from the purchaser thereof.
_____________________________________
_____________________________________
_____________________________________
For delay beyond the above stipulated period, interest at the rate applicable
for Fixed Deposit of Corresponding period will be paid as compensation to
the customer for the delay.
The bank will compensate the borrower for monetary loss suffered, if any,
due to delay in return of the same.
In the event of death of owner of the property, the title deed would be
delivered as per banks policy for settlement of deceased customer asset.
In the event of loss of title deeds to mortgage property at the hands of the
bank the compensation will cover out of pocket expenses for obtaining
duplicate documents plus a lump sum amount of Rs.5000/-.
srn/12.05.2013
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_____________________________________
_____________________________________
_____________________________________
Staff Matters
1. Staff Clerical:
2. Cash Department:
For any shortage in cash balance held under the single custody of the
cashier, he / she is solely responsible. Hence the shortage must be
recovered on the same day from the concerned cashier.
For any shortage in vault balance, the joint custodians viz., the
supervising official and the cashier shall be jointly responsible.
_____________________________________
_____________________________________
_____________________________________
Amounts which have been lying unclaimed for more than six months
will be transferred to Central Office every half year by March and
September.
The cashier preparing the packets remains responsible for both the
quality and quantity of the notes in the packets prepared by him for
denominations from Rs.1/= to Rs.50/=.
The Officer/SA or any authorised official who recounted notes packet are
jointly responsible for quantity of notes in such packets
3. Checking of supplementary/reports
The Supervising staff checking the supplementary shall ensure that the
number of vouchers shown in the supplementary corresponds to the
number of vouchers available for verification.
_____________________________________
_____________________________________
_____________________________________
7. Staff Subordinate:
8. All Staff members should wear Identity Card while on duty. This is a
mandatory provision. Non-wearing of Identity Card while on duty is a
misconduct as per Bipartite Settlement.
srn/04.04.2012
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_____________________________________
_____________________________________
_____________________________________
Memorandum of association:
It is a public document of a company.
It sets out the constitution of the company, its objective etc.
It defines the scope of companys activities and its relation with the outside
world.
A bank or any other person lending to a company for purposes ultrvires the
memorandum of association cannot recover.
2.
Articles of Association:
It is a document of a company which sets out its by-laws or rules and
regulation that govern the management of its internal affairs and the conduct
of its business.
3.
Certificate of Incorporation:
It is a certificate issued by Registrar of companies (ROC).
It is a conclusive evidence that all the requirements of the Companies Act
have been complied with in respect of registration.
4.
5.
Co-parcener : The male members other than the Karta in a HUF. In some
states female members are also co-parcenors
Fixed Assets: Are the long term assets/capital assets employed by the
enterprise for production of goods or services. These items are not for sale in
the normal course of business.
Eg: Building, land, plant & machinery, vehicles, furniture & fixture etc.
7.
Gross block: Represents the original cost of fixed assets without adjustment
of depreciation.
8.
Current Assets: Are the short term assets of an enterprise which can be
converted to cash within a period of one year.
Eg: Inventories, Receivables (book debt), cash, bank deposits, investment in
banks, post offices and other Govt. securities
9.
_____________________________________
_____________________________________
_____________________________________
10. Authorised Capital: The maximum number of shares a company can issue in
terms of the documents of its incorporation. Authorised Capital is not forming
part of balance sheet.
11. Issued Capital: A part of the
company/subscribed by the investors
authorised
capital
issued
by
the
12. Paid up capital: This is the portion or full of the issued capital paid by the
investors.
In the context of balance sheet analysis, the term capital refers to subscribed
and paid up capital.
13. Reserves & Surplus : This consist of the portion of the earnings, receipts or
other surplus of an enterprise kept aside by the management for a general or
specific purpose.
14. Capital Reserve
This represent the premium on issue of shares, forfeited shares etc.
15. current liabilities
Money owed by the business that is generally due for payment within 12
months of balance sheet date.
Examples: creditors, bank overdraft, taxation, the portion of term loan due
during the year.
16. Gross Working Capital (GWC)
The funds required to finance the total current assets of a unit.
In other words gross working capital is nothing but total current assets.
The need for GWC arises from the operating or cash cycle of the unit.
The operating cycle refers to the length of time required to convert noncash current assets into cash.
Gross Working Capital (GWC) = Total Current Assets (TCA)
17. Net Working Capital (NWC)
The long term sources of funds which are available, for financing current
assets.
In other words, NWC is the excess of current assets over current liabilities
or
Excess of long term sources over the long term uses.
NWC = TCA TCL
_____________________________________
_____________________________________
_____________________________________
or
NWC + BB
srn/04.04.2013
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_____________________________________
_____________________________________
_____________________________________
Under notice money market; funds are transacted for a period between 2 days
and 14 days.
Deals in the call/notice money market can be done upto 5.00 pm on weekdays
and 2.30 pm on Saturdays or as specified by RBI from time to time.
2.
Demand Liabilities
Demand Liabilities of a bank are liabilities which are payable on demand.
These include current deposits, demand liabilities portion of savings bank
deposits, margins held against letters of credit/guarantees, balances in
overdue fixed deposits, cash certificates and cumulative/recurring
deposits, outstanding Telegraphic Transfers (TTs), Mail Transfer (MTs),
Demand Drafts (DDs), unclaimed deposits, credit balances in the Cash
Credit account and deposits held as security for advances which are
payable on demand.
3.
Time Liabilities
Time Liabilities of a bank are those which are payable otherwise than on
demand.
These include fixed deposits, cash certificates, cumulative and recurring
deposits, time liabilities portion of savings bank deposits, staff security
deposits, margin held against letters of credit, if not payable on demand,
deposits held as securities for advances which are not payable on demand
and Gold deposits.
4.
_____________________________________
_____________________________________
_____________________________________
6.
7.
In order to determine the rupee equivalent liability under FCNR (B) Scheme
for the purpose of Cash Reserve Ratio (CRR), RBI Reference rate
announced on the Reserve Banks web site at around 12:30 pm for the
purpose of converting foreign assets/deposits for reporting in Form A
Return is used w.e.f 13.07.2012.
_____________________________________
_____________________________________
_____________________________________
8.
9.
Bank Rate
The Standard rate at which RBI is prepared to buy or rediscount bills of
exchange or other commercial paper eligible for purchase under the RBI
Act.
The rate at which RBI advance money to banks, banking companies and
other financial institutions.
This is the most important tool in the hands of RBI through which it
controls the credit flow.
The Bank rate of the RBI is a pace settler to other market rates of interest,
both for short term and long term credit.
_____________________________________
_____________________________________
_____________________________________
The banks which borrow money from Reserve Bank to meet short term
needs have to sell securities, usually bonds to Reserve Bank with an
agreement to repurchase the same at a predetermined rate and date.
Reserve bank charges some interest rate on the cash borrowed by banks.
This interest rate is called repo rate.
11. Reverse Repo rate:
Reverse Repo rate is the rate at which the RBI borrows money from
commercial banks.
An increase in reverse repo rate can prompt banks to park more funds with
the RBI to earn higher returns on idle cash.
It is also a tool which can be used by the RBI to drain excess money out of
the banking system.
********************************
srn/30.06.2012
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_____________________________________
_____________________________________
_____________________________________
Miscellaneous Points
1.
2.
Aadhaar:
The UID number is stored in a centralised database and linked to the basic
demographics and biometric information photograph, ten fingerprints
and iris of each individual.
This has an additional four digits that will be hidden from the common
man. These four digits, which the authority terms a virtual number, will
change as and when the resident changes his pin number or residence
3.
4.
5.
INTEREST SUBVENTION SCHEME for Short Term Crop Loans had been
extended for the 2012-13.
6.
_____________________________________
_____________________________________
_____________________________________
For LIG Rs, 1, 00,001/- to 2, 00, 000/- as household income per annum
7.
National calendar:
Government of India has accepted Saka Samvat as National Calendar. All
Government statutory orders, notifications; Acts of Parliament, etc. bear both
the dates i.e., Saka Samvat as well as Gregorian calendar. instrument written
in Hindi having date as per Saka Samvat calendar is a valid instrument.
Cheques bearing date in Hindi as per the National Calendar (Saka Samvat)
should, therefore, be accepted by banks for payment.
8.
Payment of customs duty: Central Board of Excise & Customs have made
e_payment mandatory for all the importers registered under Accredited Clients
Programme and importers payment Customs Duty of Rs.1.00 lakh or more per
Bill of entry, w.e.f 17.09.2012.
9.
_____________________________________
_____________________________________
_____________________________________
If detection is 5 pieces and above, separate FIR should be filed then and
there.
All bank branches having average daily cash receipts between Rs 50 lakhs
and above shall use Note Sorting machines, conforming to Note
Authentication and Fitness Sorting parameters prescribed by RBI, before
issuing them over the counter or through ATMS.
The proposed new software for Risk Based Internal Audit is called eTHIC.
The audit plan for a branch will be fixed by mapping the Inherent Business
Risk and Control Risk in an Audit Risk Matrix (ARM).
Audit Periodicity: The overall risk category referred above in ARM will
determine the audit intervals of the branch concerned:
OVERALL RISK
CATEGORY
AUDIT INTERVALS
IN MONTHS
Low
15
Medium
12
EXTENSION OF TIME,
IF NECESSARY
PERMISSIBLE BY GM
INSPECTION.
Maximum by 3
months
Maximum by 2
months
_____________________________________
_____________________________________
_____________________________________
High/Very
High/
Newly
opened/
Upgraded/tak
09
Maximum by 1
month
09
Grading
Very Good
Good
Satisfactory
Moderate
Poor
Critical
Time schedule for submission
Risk
Low
Low
Medium
Medium
High
High
of reply by;
Rural and Semi Urban Branches: within 30 days from the closure
of audit.
URBAN, METRO BRANCHES: within 45 days from the date of
closure of audit.
12. Implementation of formation of Preventive Vigilance Committee:
_____________________________________
_____________________________________
_____________________________________
Constitution of committee :
Fraud reporting
The cases of negligence and cash shortages and irregularities in
foreign exchange transactions are to be reported as fraud irrespective
of the amount if the intention is to cheat / defraud is suspected
/proved.
_____________________________________
_____________________________________
_____________________________________
Cash Shortage cases upto Rs.5,000 will not be treated as a fraud if the
intention is not suspected/ proved.
All elements of market risks, viz. interest rate risk and liquidity risk etc
are for the fund centre (corporate office) through this TPM.
_____________________________________
_____________________________________
_____________________________________
The TP rates for CASA shall vary from time to time based on change in
retail term deposit rates in 91 days and 5 years period - Hence market
related.
Benchmark fixed
TD up to < 1 year
TD 1 year up to 3
years
TD > 3 years
Overdue Deposits
FCNR Deposits
Overdue FCNR
Deposits
Spread
Bulk Deposits= Single Rupee Term Deposit of Rs. l Crore & above
Retail Deposits = Single Rupee Term Deposits up to less than Rs.l crore
The Transfer Price for Term Deposit shall be fixed at the time of
origination of the deposit liability. This transfer price shall remain fixed
till maturity of the deposit. Subsequent changes in Transfer price shall
not affect the transfer price for existing deposits.
The transfer price for term deposits (TO) shall be account specific
_____________________________________
_____________________________________
_____________________________________
91 day
Retail
Bid Rate
= 91 day
domestic
deposit rate
(7.25% at
present) +
Retail
Spread
(0.50%) =
7.75% at
present
spread
Effective
rate
1.25 %
9.00%
1.25%
9.00%
1.50%
9.25%
1.75%
9.50%
1.50%
9.25%
1.50%
9.25%
1.75%
9.50%
2.00%
9.75%
1.50%
9.25%
2.00%
9.25%
The Transfer Price rates are linked to the internal rating / external rating of
borrowers in case of limits of Rs.1 Crore and above {(s. 2 Crore and above
in case of MSE)
The Transfer price for loan I advances linked to floating rate are
benchmarked to 91 days retail deposit bid rate
The transfer price for floating option loans would correspondingly vary
with revision in Base Rate
The Transfer Price rates for loans / advances under fixed rate option are
linked to corresponding period retail deposit Bid rate with spread. This TP
rate shall decided at the time of origination of loan and continue till
maturity.
Back to index
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_____________________________________
_____________________________________
The staff loans and loans/advances against deposits ore kept spread
neutral.
The periodicity of computing CO interest is monthly covering period 16th
of previous month 15th of the current month.
Benchmark
fixed
Advances
spread
Effective
rate as on
date
8.75%
0.25%
10.00%
0.25%
10.25%
0.50%
9.00%
1yr to 3 years
0.50%
10.25%
>3 years
0.50%
10.50%
5.00%
1yr to 3 years
>3 years
Compensation categories
Agriculture & allied advance
Export/Gold loans(FC)/Foreign
currency loans
Flat rate
Applicable rate
Restructured advances
91 day retail
bid rate
1.25%
9.00%
Applied rate
Applied rate
Applicable
deposit rate
Same as
deposit TPM
Staff Loans
Applicable rate
Applicable
rate
NPA balance
Flat rate
5.00%
Branches headed by AGM and above are permitted to issue High Value
drafts and there is no change in the existing procedure- for Rs.10 lacs and
above but less than Rs.10 crores (the maximum permissible in our bank).
_____________________________________
_____________________________________
_____________________________________
After forwarding the request to Regional Office, branch should create lot and
post the details in the High Value data entry menu in CBS to enable
Regional Office to authorise the transaction and enable the branch to post
and pass.
In order to offer the customers with much convenient and faster way to
access the bank, bank has introduced the SMS >< REDRESS facility.
The customer has to type REDRESS Space IOB Branch Code in his
mobile. SMS has to be sent to +919551099007.
City Back Offices are established in our bank as part of the CCO / Main
branch in some centres.
The CBO shall handle all inward clearing cheques related to the branches
in their centre and as well as other CBS branches ie., cheques that are
received under speed clearing system.
Insurance cover
(Rs.in lacs)
1.00
5.00
1.00
5.00
1.00
1.00
1.00
0.75
_____________________________________
_____________________________________
_____________________________________
The maximum coverage for SB-Silver, CD Classic and RD gold is Rs. 1.00
lac only per account.
This reference number has to be quoted in the data given by the user
organization for cross verification at the time of processing the data.
It will facilitate the incorporation of the said reference number in the ECS
debit data to correlate the transactions.
27. One Time Settlement Policy For Sick Non-Viable MSME Accounts
Our Banks policy covers all NPA accounts including those assets where
action is initiated under SARFAESI Act, Lok Adalats, DRTs, Decreed
accounts subject to obtaining consent decree from Court DRT/Lok Adalat.
_____________________________________
_____________________________________
_____________________________________
The use of "Pari Passu" when creating a charge means that when
company/firm goes into dissolution, the assets over which the charge has
been created will be distributed in proportion to the creditors' respective
holdings.
The interest rates on SCSS 2004 will be aligned with G-Sec rates with a
spread of 100 bps (1%).
The interest rates for every financial year will be notified before April 01st of
that year.
31. Hypothecation
The term hypothecation is defined in SARFAESI Act.
32. E-collection of Customs Duty EASeR-C
Our Bank is one of the 17 accredited agency banks for handling online
payment of Customs duty.
Our Bank has been enabled to receive Customs Duty on behalf of all
customs locations in India on Anytime Anywhere basis.
Every branch of our Bank can help their customer to make payments
through their own accounts.
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All the registered banks are liable to pay corporation insurance premium at
the rate of 10 paise per annum for every deposit of Rs.100 (ie. 0.10% p.a)
at half yearly intervals.
34. Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH)
Banks may assign zero risk weight for the guaranteed portion. The
balance outstanding in excess of the guaranteed portion would attract a
risk-weight as appropriate to the counter-party.
In case the advance covered by CRGFTLIH guarantee becomes nonperforming, no provision need be made towards the guaranteed portion
35. Held-to-Maturity
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Held to maturity,
Held for trading or
Available for sale.
: 8.25%
Repo Rate
: 7.25%
: 6.25%
: 4.00%
SLR
: 23.00%
Rs.3,66,501 Cr.
Rs.18,366.03 Cr
73.80
26.20
Sri.S.V.Raghavan
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srn/18.05.2013
unnisarjun@gmail.com
rajendrannair@iobnet.co.in
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