Quick Success Series

Quick Success Series Deposit General

QUICK SUCCESS SERIES was envisioned by Sri Shailesh Kumar, who was then a Faculty at SBLC Deoghar and he along with Sri Rajeev Shankar (who is still in our team) converted their dream into reality, they did not really knew that time that QSS will become so popular and SBLC Deoghar will receive overwhelming demand for its updated version year after year from various parts of the country. A special thanks to both of them for conceiving QSS. One of the hall marks of excellence is that any product remains constantly in demand and over years, the demand grows. Team Deoghar is humbled by the response and recognition; it has received from various users of QSS. Our sincere thanks to our readers. Your expectations will keep us live and kicking. I take pride in representing a Team comprising of Sri Akhil Kumar Mishra, Chief Manager (Training), Sri Shiv Prakash Jha, Chief Manager (Training), Sri Rajeev Shankar, Chief Manager (Training), Sri Champak Das, Manager (Training) & Sri Rakesh Roshan, Manager (Training), who have owned up QSS like their own baby and are constantly contributing towards value addition and keeping it relevant and up to date for the users. We hope that this edition will be equally useful for various promotional exams. We request our readers to point out any lapses at the earliest, though we have taken adequate care to be as correct as possible. This book is however not a substitute for circular instructions issued by the Bank from time to time. Our Team wishes you grand success in all your endeavours.

S K Rana Assistant General Manager, State Bank Learning Centre, Deoghar- 814112 Phone- 06432-232895 Fax - 06432-231810 E-mail: agmstc.deoghar@sbi.co.in

Updated upto 28th Feb, 2013 Updated By: Rakesh Roshan Manager Training, SBLC Deoghar Mobile- 9162370185 Email- r.roshan@sbi.co.in
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Quick Success Series Deposit:General Feb 28, 2013 Various Types of Depositor Minor (ii) Married Woman (iii) Pardanashin Woman (iv) Lunatics (v) Drunken Person (vi) Deaf/Dumb & also illiterate (vii)Visually impaired/blind persons (vii) Insolvents (viii) Official Liquidator (ix) Agents & Attorneys (x) Executors & Administrators (xi) Trust (xii) Joint Hindu family (xii) Partnership (xiii) Joint Stock Companies. Relationship between Banker & Customer in case of Deposit Account Debtor & Creditor Minor Minors who can adhere to uniform signature and are not less than ten years old can open accounts in their single name and maintain therein a maximum balance of Rs.200,000/- (Rs. Two lac only) A person below 18 years of age is Minor as per Sec 3 of The Majority Act (also applicable in case guardian of minor is appointed by court) Any contract with minor is void ab initio As per S-11 of Indian Contract Act Even if a minor misrepresents his age, he is not liable for his contracts A minor cannot ratify the contracts on his attaining majority A minor cannot be sued for recovery of any monies lent Any guarantee obtained will also not be valid as the original contract is void but if the third party indemnifies the overdraft, he will be liable Any contract entered into by a Minor for meeting the necessaries of his/her life is not void and such contract is called QuasiContract (As per Section 11 of Indian Contract Act) A minor can be appointed as an agent. Therefore a minor can be authorized to operate on the account of a person. However, a minor cannot appoint an agent. Guardians of Minor: As per Hindu Minority & Guardianship Act, Father is Natural Guardian. Mother becomes natural guardian only after death of Father of Minor. Supreme Court has held that Mother will be the natural Guardian where father is not available for some reason or other to perform his duties as regards the minor Natural Guardian varies from religion to religion Guardian of Hindu married minor girl Husband (if Major); Girls father, if Husband is Minor Guardian of Illegitimate minor child Mother Guardian appointed by Court is called Legal Guardian Guardian appointed by a will is called Testamentary Guardian. Becomes effective after death of father and mother Married Woman Married Woman is competent to enter into a valid contract and the contract is legally void and is enforceable Personal assets of a married woman are liable for any loan availed from the Bank Husband is not liable for the loans availed by his wife However, when loans are taken by married woman with the express consent/authority from husband or loans are availed for the necessaries of her, then Husband is also liable Married woman may extend guarantee on behalf of third parties A woman cannot be arrested or imprisoned for non-payment of judgement debt A married woman dependent on husband cannot be adjudged as insolvent Pardanashin Woman

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Quick Success Series Deposit:General Feb 28, 2013 These woman does not have any contact outside the family circles Extreme precaution is required to be exercised in dealing with them particularly the illiterates pardanashin woman Any contract with illiterate pardanashin woman may not be free from undue influence and she may not understand the nature of transaction Hence, no account should be opened in the name of illiterate Pardanashin woman Lunatics A person of unsound mind is not competent to enter into any valid contract No account should be opened in the name of a lunatic person When a person of sound mind becomes insane, operations in the account may be stopped forthwith (Such action should not be based on hearsay report) Near relative of such person should be advised to approach any court for appointment as Receiver under the Mental Health Act Balance in the account is to be paid to the Receiver Drunken Person Contract will be valid if the person is able to understand the nature of transaction during the state of drunkenness.

Insolvents Insolvency of a person is civil death A person who cannot pay his debts of Rs 500/- or more may be declared insolvent by the Court Application for declaring a person insolvent can be made either by the person himself or his creditors Operation in the account should be stopped from the date of notice that an insolvency petition has been filed by or against the customer Once an order of adjudication is issued, the account should be closed and paid to the Official Receiver through bankers cheque An insolvent person cannot act as a Director of a company He cannot be a partner in a partnership firm but he can act as an agent of another person He can operate his PPF A/c and a Trust A/c as trustee Official Liquidator Liquidator is appointed as per Courts order when a company goes into liquidation All monies received by him by disposal of companys assets will be deposited in the account Only order cheques will be issued to facilitate verification of disposal of the estate through endorsement of payee Customers Agents & Attorneys A customer may appoint an attorney or agent to operate his account Power of Attorney is a general notice and authority for this purpose Person giving power to another person is called donor or grantor or principal and the other person is called grantee or PA holder or Agent A PA holder or Agent must indicate that he is signing on behalf of the donor/principal by writing per pro (Per Procuration meaning by arrangement)

Deaf/Dumb & also illiterate

The Bank can in such cases preferably open joint accounts to be operated jointly by the deaf dumb illiterate along with his close blood relations. Where this is not possible, accounts may be opened in the name of such a person as per the procedure laid down in the preceding paragraphs.

Visually impaired/blind persons

A visually impaired / blind person may at her / his own risk, open ordinary or cheque operated deposit account in her/his sole name or jointly with other person(s).

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Quick Success Series Deposit:General Feb 28, 2013 Agency is terminated on death and insanity of Principal or Agent and also by insolvency of Principal Insolvency of the agent does not terminate the agency A cheque signed by an agent can be paid even after his death as principal is alive PA should be duly stamped and registered with Registrar of documents or Attested by a Notary Public If a PA is executed abroad, it has to be stamped within 3 months of its receipt in India Specific powers entrusted to the attorney viz. power to open A/c, to draw & endorse cheque, to overdraw the A/c should be verified and recorded in Power of Attorney Register PA should not contain any condition on the occurrence of which it will be enforceable Executors & Administrators Executors and Administrators are appointed to conduct the affairs of a person after his death. Former are appointed by a testator through a will & Later are appointed by Court in absence of a will or if the executor dies or refuses to act through Letter of Administration Both perform the same duties i.e. to realize the assets of the deceased and distribute them as per will or letter of administration Account in the name of Executor/Administrator is opened in style ABC executors (or administrators) to the Estate of XYZ Deceased and balance in the account of deceased is transferred to it Before opening the Account Probate of will obtained by Executor & LA secured by Administered should be examined carefully On death of one of the executors/administrators his powers are vested in surviving executors and administrators Trust Trusts are usually created by the settler (also referred to as creator or donor) for the benefit of a third party (beneficiary) through a Trust Deed Trustee is the person entrusted with the responsibility to manage the Trust Trust deed is required to be registered with the Registrar of Assurances Trustees powers and obligations should be thoroughly examined through Trust Deed Account should be operated as per provisions of Trust Deed otherwise bank may be held liable for being a party to breach of trust All trust accounts should be examined by Branch Manager once at the time of taking his charge & thereafter annually Insolvency of a Trustee does affect his functions as trustee Cheque favouring Trust shall not be credited to personal A/c of Trustee A trustee cannot delegate his powers to other trustees except as provided for in the Trust Joint Hindu Family (JHF) A JHF possesses ancestral property and carries on ancestral business It is a legal entity with perpetual succession like companies without requiring any registration It is governed by two schools of Hindu law Dayabhaga & Mitakshara Dayabhaga School is applicable to West Bengal only & Mitakshara School is applicable to the rest of India Under Mitakshara School, every son/daughter of a coparcener acquire a right in JHF by birth whereas in case of Dayabhaga School he/she acquires the right in JHF only after fathers death Head of JHF is Karta eldest coparcener. All other male/female members of the family are called coparceners except mother and daughter-in-law

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Quick Success Series Deposit:General Feb 28, 2013 On the death of Karta, the eldest surviving coparcener becomes Karta JHF cannot become a partner in a Partnership Firm JHF letter (COS 38) is obtained while opening account of a JHF It is signed by all adult coparceners including Karta. Minor coparceners do not sign this letter. (Advantages (i) The JHF letter presumes that the business is ancestral one. Thus it binds the Karta & Coparceners even if the business turns out to be not an ancestral one. (ii) To advise the bank of any change in the membership of the family is also undertaken) Partnership Firm It is not a legal entity. It is an association of persons to run a business Minimum Number of Partners 2 Maximum Number of Partners (Banking Firm) 10 (As per Sec 11 of Companies Act) Maximum Number of Partners (Non Banking Firm) 20 (As per Sec 11 of Companies Act) Registration of a Partnership firm is not mandatory (Disadvantage- Creditors of firm can sue an unregistered firm but the unregistered firm cannot sue its debtors or partners) A minor cannot become partner in a firm but he can be admitted to the benefits of partnership While opening an account of a Partnership firm, Partnership letter (COS 37) is obtained duly signed by all the partners (Rationale: Through this Letter, the Partners undertake to notify the Bank of any change in their constitution & It gives the firm an implied authority to open an account) Partnership deed is also obtained Every Partner is an agent of other partners A partner has the following implied powers: o To sell/pledge movable goods on account of partnership o To borrow money, contract debts etc for the business of the partnership o To draw, make or accept negotiable instruments A partner has no implied power to mortgage partnership property He has no implied power to extend guarantees on behalf of the partnership unless the partnership business is in nature of extending guarantees Death/insolvency of partner dissolves the partnership A partnership firm may be dissolved compulsorily in the following circumstances When all the partners are declared insolvent When the business of the firm becomes unlawful When a competent court passes an order for the dissolution of the firm Joint Stock Companies A Company is a legal entity created by Law, having perpetual succession, limited liability and common seal Public Ltd. Co. Pvt. Ltd. Co. Min Share Cap: Rs 1 lakh Rs 5 Lakh Min Members: 2 7 Max Members: 50 No Maximum Min no of Directors: 2 3 Max No of Directors: No Max No Max Can commence business immediately on getting Certificate to commence business issued Certificate of incorporation by Registrar of Companies essential Documents to be obtained for opening Account of a Public/Pvt. Ltd. Company i) Memorandum of Association (MOA) Contains Companys name, objects and purpose, authorized capital, liability of the members, address of registered office etc. Borrowing

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Quick Success Series Deposit:General Feb 28, 2013 powers of the company are also contained in it. ii) Articles of Association (AOA) - Contains rules and regulations regarding operations of the company. It deals with matters such as the rights and powers of directors, proceedings of the meetings, delegation of powers etc. iii) Certificate of Incorporation issued by Registrar of Companies iv) Board Resolution v) Certificate to commence business is required in case of public limited companies only. Registrar of companies issues this certificate as soon as the minimum capital (min 90% of subscription) is subscribed Nomination Facility of Nomination is available in Deposit Accounts (U/S Sec 45 ZA of BR Act), Safe Custody & Safe Deposit Articles (U/S Sec 45 ZC of BR Act) & Safe Deposit Lockers (U/S Sec 45 ZE of BR Act) Introduced in the Banks with effect from 29.03.1985 on recommendations of Talwar Committee Nominee has to be an Individual only. A firm, club, company truct etc. cannot act as nominee. RBI has permitted to allow Nomination in case of sole proprietorship A/c Available to both Residents and Non Residents Nominee cannot be more than one person except in case of locker in joint names without survivorship benefit where each person can appoint a nominee Nomination is not allowed in E or S Locker A/cs. In the case of joint locker holders without survivorship benefit nomination can be made by the hirers in favour of a single or different individuals. Nomination is also not permissible in accounts held in representative capacity Appropriate nomination form (DA1/SC1/SL1-1A*) is to be signed by Account holder for nominating a person in his/her account. Now, witness is not required to be obtained. In case of thumb impression on the Nomination, two witness is required to be obtained (e.cir 32/2012-13 dt:11.04.2012) but signature of the account holder need not be attested. In case of Joint A/c, all account holders should jointly nominate a person A minor can be a nominee. In such case, an appointee (major) is required to be named by the account holder who could provide discharge to bank in case the account holder dies during minority of the nominee Account holder may cancel or change nomination any time during the continuance of the account by submitting appropriate forms i.e. DA-2/SC-2/SL-2/2A* for cancellation and DA-3/SC-3/SL3-3A* for variation in nomination In joint accounts, all account holders should jointly sign these forms in case of Cancellation/ Variation in nomination If the person opening the account does not want to nominate, he should be asked to give a specific mandate/letter to the effect that he does not want to make a nomination. In case he declines to give such a letter, the fact should be recorded on the account opening form and the account should be opened if otherwise found eligible Legend "Nomination Registered" should mandatorily be recorded on the face of Passbooks/TDR/ STDR advices / Statement of account whenever the accountholder avails the facility of Nomination Name of Nominee shall also be recorded manually on the face of the passbooks/TDR/STDR Receipts /Statement of account in case the customer is agreeable to the same.

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Quick Success Series Deposit:General Feb 28, 2013

Retail Internet Banking (e-TDR/eSTDR)Nomination Facility : Nomination facility is available in respect of e-TDR/e-STDR, the nominee in the selected debited account from which the e-TDR/e-STDR is funded, will be retained as nominee in the e-TDR/eSTDR, if the customer opts for the same. In case the RINB user wants a nomination other than the nominee in the debit account, he/she is required to visit his/her home Branch. ( e-cir:665/201213 dt:05/10/2012) Settlement of claims in respect of deceased depositors o Accounts with survivorship clause (E or S, F or S, L or S, Any one or Survivor) In such case payment of balance in deposit account of the deceased can be made to the survivors after obtaining death certificate. This will constitute a valid discharge of the banks liability. Regarding premature payment of Term Deposits, if one of the depositors expires before maturity, with E or S or F or S mandate. In this connection, RBI has, vide their letter no.RBI/2012-13/168 DBOD No.eg.BC. 37/ 09.07.005 /2012-13 dated 16.08.2012 clarified that the joint deposit holders may be permitted to give the mandate either at the time of placing Term deposits or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained, banks can allow premature withdrawal of Term Deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder. It is also reiterated that such premature withdrawal would not attract any penal charge. (ecir:596/2012-13 dt:18/09/2012)

this, Nominee is required to submit a duly filled in and signed standard claim form. The claim form is required to be witnessed by Magistrate or Judicial Officer or (ii) An officer of the Central or State Govt or (iii) An officer of a Bank or (iv) Two persons of good standing and integrity and acceptable to the Bank This will constitute a valid discharge of the banks liability Request by Legal heir to stop payment to Nominee Payment to nominee after death of the depositor constitute a full & valid discharge of bank s liability except in case of any order, decree, certificate or other authority from a Court of competent jurisdiction restraining the bank from making the payment from the account of the deceased is produced. Where one of the legal heirs has obtained an injunction order the branch should advise the nominee to take up the matter, pending before the Court and the Bank is bound by the orders of the Court for payment of the deposit amount as the matter is subjudice. Moreover, nominee receives payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made Notice from advocate seeking time to initiate legal action and stop payment to the nominee Branch need not take cognizance of a notice from the advocate seeking time to initiate legal action and the deposit amounts may be paid to the nominee. This will constitute full & valid discharge of its liabilities under the Act

o Accounts with Nomination In such case payment of balance in the deposit account of the deceased can be made to nominee , Prematurely also, after obtaining death certificate of the depositor. Due care should be exercised in establishing the identity of the nominee. For

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Quick Success Series Deposit:General Feb 28, 2013 o Accounts without nomination/ survivorship clause & without legal representation x (A) Claims for Aggregate Balances up to Rs 50,000/ Claim format signed by the claimants together with declaration from one independent person known to the family of the deceased and acceptable to bank A stamped Letter of Disclaimer to be signed by only those legal heirs who are leaving their claim A stamped Letter of Indemnity from all claimants (other than those who have furnished the stamped letter of disclaimer). (No sureties are required for claims up to Rs 50,000/-) (B)Claims for Aggregate Balances above Rs 50,000/- up to Rs. 1 Lakh Claim format signed by the claimants together with Declaration from one independent respectable person unconnected but well known to the deceased family and acceptable to bank. A stamped Letter of Disclaimer to be signed by only those legal heirs who are leaving their claim Stamped Letter of Indemnity from all claimants (other than those who have furnished the stamped letter of disclaimer) + One surety good for the amount or two sureties jointly good for the amount (C)Claims for Aggregate Balances above Rs 1 Lakh "Claim Form" to be signed by all claimants (other than those who have furnished the stamped Letter of Disclaimer) Affidavit (stamped) from one Independent respectable unconnected but well known to the deceased family and acceptable to bank A stamped Letter of Disclaimer to be signed by only those legal heirs who are leaving their claim Stamped Letter of Indemnity from all claimants (other than those who have furnished the stamped letter of disclaimer) + One surety good for the amount or two sureties jointly good for the amount Time limit for settlement of claims Within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claimant (s), to the bank's satisfaction

Settlement of Claims in respect of Missing Persons x Claim upto Rs 1 lakh & in respect of missing persons, reported missing for a minimum period of one year, shall be settled on production of the following documents. o FIR o Non-traceable report issued by the police authorities. o Indemnity from the claimant AGM (Admin) of the respective region will be the authorized authority to settle such claims x Claims in respect of missing person above Rs 100000/- Under section 108 of the Indian Evidence Act, Nominee /legal heirs will have to raise an express presumption of death of the subscriber after a lapse of seven years from the date of his /her being reported missing before a competent court. If the court presumes that he/she is dead, then a certificate to that effect is issued and the claim in respect of missing person can be settled as is done for any other deceased accounts.

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Quick Success Series Deposit:General Feb 28, 2013 Settlement of deceased accounts through legal representation Will/Probate: When a person dies testate i.e. by leaving a Will, it requires to be probated through a court. Probate is a formal approval by the court for implementation of the directions in the will A probate issued by a High Court is valid throughout India and is applicable to both movable & immovable assets A probate issued by the District court is valid within the State. It is valid for assets outside state if the value of such property does not exceed Rs 10000/(Codicil is an addition/alteration made in the Will by maker by an instrument. It is part of the will & witnessed) Letter of Administration It is issued by court when a person dies intestate or when the executor of Will is unwilling or incapable to act or dies before the testator. Balance in the A/c of the deceased person is transferred to the account of Administrator appointed by court Succession Certificate Legal heirs of the deceased (intestate) can get the Succession Certificate issued from a court. It is applicable to debts & securities only and not to other assets like gold, jewellery, stocks etc except in the states of UP & MP Original Succession Certificate must be verified and contents recorded in the Sundry Documents Register. Attested copy is kept on record Initially, order for freezing the operations on the account called Order Nisi is obtained On receipt of Final Order called Order Absolute, payment is made to the court In case specific amount is mentioned then excess balance is transferred to a new A/c and operations in the new A/c is continued Attaches credit balance in the accounts Attaches TDRs payable at a future date Future Credits not attached Collection items / Clearing Credits realized after the receipt of the order are not attached Order in single name then Joint deposit & Partnership deposit not attached Order in Joint names / name of Partnership then deposit in single name attached Does not attach balances in the accounts of deceased/insolvent Does not attach unutilised drawing power in a borrowing a/c Salary is attached subject to some restrictions Subject to Banks right of set-off against any debts owed by the debtor (Contingent debt cannot be set off) Does not attach Trustee/ Fiduciary accounts Revenue Attachment Orders Attaches the credit balances of the assessees in the hands of the banker Income Tax, Sales Tax and Wealth Tax authorities issue it Specific amount will be mentioned Attaches credit balance in the accounts Attaches TDRs payable at a future date Attaches future credit also Collection items / Clearing Credits realized after the receipt of the order are attached Joint deposits attached proportionately Partnership deposit not attached Order in Joint names / name of Partnership then deposit in single name attached Attaches balances in the accounts of deceased/insolvent also

Garnishee Orders (Court Attachment Order) Creditor of a bank depositor (Judgement creditor) obtains the order attaching the funds in the hands of garnishee (debtor of the Judgement debtor viz. Bank) Issued U/S 60 of the Civil Procedure Code

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Quick Success Series Deposit:General Feb 28, 2013 Does not attach unutilised drawing power in a borrowing a/c Salary is attached Subject to Banks right of set-off against any debts owed by the debtor (Contingent debt cannot be set off) Does not attach Trustee/ Fiduciary accounts
Personal Accident Insurance (PAI)scheme(PAI) is now redesigned and is being re-launched on Monday, 10.09.2012 with the various new features. (e-cir.560/2012 13 dt: 07/09/2012(i) PAI will cover only death due to accident (ii) The revamped scheme will have a new Master Policy, bearing no. 137300-0000-00. This number is prepopulated in CBS Screen 8890 (iii) The entry into the scheme is open to SB Account holders between the ages of 18 and 65 years.(iv) The new application form will list out, on the reverse, all broad categories of customers that are excluded from the scheme. Occupations like army, paramilitary, police, etc. are excluded from the coverage and are mentioned in the application form{extended to Armed forces, Paramilitary, police personnel also, under certain caveat w.e.f.03/12/2012 ecir:890/2012-13 dt:04th Dec,2012 & again suspended vide e-cir:900/2012-13 dt:06th Dec2012} (v) The new application form will be blue coloured and of a single sheet. (Old application forms must not be used) (vi) The new application form will not have the renewal field, as renewal will be the responsibility of and arranged by the customer and SBI General. Branches should, therefore, NOT put any standing instruction in the system for renewal purpose (vii) The new application form has been designed to keep it very simple and only mandatory fields are given to be filled in. Branches should ensure that the following fields are duly filled in. (a) Account Number, (b). Name of the account holder (to be selected), (c). Gender of the account holder (d). Name of Nominee, (e).Relationship with nominee. (viii) Data entry for the PAI, will continue to be in CBS screen 8890, which will be reactivated as at the close of business / EOD on 08.09.2012 (ix) A new Power Jyoti account is being opened by Mumbai Main Branch for collecting proceeds under the scheme. (The old Power Jyoti accounts have been closed) (x) IT Belapur will send daily MIS to Mumbai Main Branch, who will in turn, after the necessary due diligence, send it to SBI General for issuance of Certificate of Insurance (COI) and to MCS Department for data collation. (xi) After a transaction has been put through, no branch will have the authority to reverse the entry. In case, however, it is observed that the customer was not eligible for the policy, the branch must make a reference to Mumbai Main Branch, on the enclosed format, who will, in turn, take up with SBI General and will refund the amount to the branch. Request may be sent to Mumbai Main Branch by Fax or Email RBI has now issued the instructions under section 18 of the Payment and Settlement Act 2007 (Act 51 of 2007) for complete migration to CTS-2010 standard cheques and following decision has been taken:(i) Issue only Multi City/ payable at par CTS-2010 Standard cheques. (ii) Arrange to withdraw the nonCTS-2010 Standard cheques in circulation before December 31, 2012 (iii) Arrange to ensure the replacement of non-CTS cheques held as post dated EMI cheques with CTS2010 Standard Cheques. non-CTS cheques will not be accepted in the CTS clearing system w.e.f. January 1, 2013.(E-CIR:662/2012-13 dt:05/10/2012) It has been decided in CENMAC meeting dated 13/07/2012 to increase default limit of Multi City cheques increased to Cash Credit and Current Account customers of all segments to Rs.50 lacs (e-cir:449/201213 dt:04/08/2012)

RBI has now issued the instructions under section 18 of the Payment and Settlement Act 2007 (Act 51 of 2007) for complete migration to CTS-2010 standard cheques As per RBIs directives, following mandatory security features have been Incorporated in the CTS-2010 Cheque standard:

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i) Watermark, with the word CTS-2010 ii) VOID Pantograph iii) Banks logo and Banks name in Ultra Violet ink iv) Standardized fields placement v) Pre-printed account number field vi) Micro Lettering in place of line vii) New rupee symbol viii) Printers name along with printing CTS2010 establishing CTS-2010 compliance. (Detailed features about CTS-2010 STD.ch e-cir: 761/2012-13 dt:19/10/2012) Non-CTS cheques will not be accepted in the CTS clearing system w.e.f. 1st April 2012 on priority basis in northern and southern grids respectively and across the country by 30th September 2012 through a time bound program.(ecir:761/2012-13 dt:19/10/2012) It has been decided to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS2010 Standard cheques. (e-cir: 958/2012-13 dt:22nd Dec12) The LCPCs are issuing only CTS-2010 standard cheques from the date of their migration to CTS-2010. As one time exercise, it has been decided to reduce the cheque leaves from 50 to 25 for Saving Bank A/c and 100 to 50 for Current A/c and CC A/c.Adherence to CTS-2010 standards has inherent advantages as the security features in these Cheque forms help the presenting banks to identify the genuineness of the drawee banks instruments while handling them in the image based scenario. The homogeneity in security features acts as deterrent against frauds and the fixed field placement specifications facilitate straight-through-processing at drawee banks end through the use of optical/ image character recognition technology.

SALIENT FEATURES (e-cir:802/2012-13 dt:03-11-2012) 1 Name of the product: SBI Tiny Special Term Deposit 2 Segment :Personal 3 Eligibility: Single Individual holding Savings Bank Tiny FI account 4 Mode of Operation :Single operation only 5 Available at: BC / CSP / KO outlets of the Bank 6 Minimum Deposit amount :Rs 1000/- thereafter in multiple of Rs 500/7 Maximum Deposit amount: Rs 10,000/8 Tenure of Deposit :6, 12, 24 & 36 months only 9 Rate of interest :As applicable to STDR accounts in CBS from time to time for normal as well as senior Citizen customers. 10Nomination:Nomination is available, as per RBI Guidelines In no case, Term Deposit receipt should be issued with effect from a back date.

Salary Package accounts should be converted to normal accounts on discontinuation of salary credits, a situation which could arise from either change of salary bankers, loss of job, retirement, etc. to stop loss of revenue to the Bank, especially on account of free unlimited Multicity Cheques, free Personal Accident Insurance Cover, free ATM Cards, etc. which are the features available to Salary Package accounts. ONLINE ACCOUNT APPLICATION FACILITY TO APPLY FOR SAVINGS BANK ACCOUNT ONLINE: The Bank has been offering eTDR/e-STDR/e-RD to its Savings Bank customers. A facility to open Savings Bank Account online from Retail clients has been developed. e-Circular no:895/201213 dt:04th Dec,2012, gives the detailed process-flow of the Online Savings Bank Account Application (OSBAA) facility with screen-shots of th e relevant screens. To make available an avenue for saving for old age to all sections of society, PFRDA has launched a separate model to provide NPS to the employees of corporate entities, including PSUs since Decem-

To enhance the customers convenience/ footfalls on the BC/ CSP outlets by offering new products & services and to add to channel viability/ sustainability, a new product SBI Tiny special Term Deposit has been introduced for financial inclusion customers in BC channel. SBI TINY SPECIAL TERM DEPOSIT A/C:

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ber 2011. This model is titled NPS Corporate Sector Model.(e-cir:899/2012-13 dt: 05th Dec2012)

Deposits of Rupees one crore and above are classified as Bulk Deposit. TDR/STDR Min.amt.1000/ in multiples of Rs100/-. Period:07 days to 10 Years. Deposit of more than 10 Year may be accepted under court orders.

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