State Bank of India (SBI) is the largest public sector bank in India.

Launched in the first decade of the

nineteenth century the bank has played a pivotal role in establishing the organised banking services
sector across India by way being repositories to savings and lenders to leading businesses across India.
State Bank of India has thus played a key role in the economic development of India.

State Bank of India along with its 5 associate banks (which are expected to be merged with SBI soon) has
a network of over 13000 branches located across the most remote parts of India and catering to people
from all works of life. State Bank of India provides services in both the personal banking and corporate
banking segments.

Open an account and start a Relationship with SBI

Know your client: The very first step when opening a savings bank account with State Bank of India
would involve completing the Know Your Client (KYC) guidelines. The KYC requirements are as follows:

For Individuals: They need to submit key identity and address proof documents accepted by the bank.

For Non-individuals: Proprietary or partnership organisations need to submit proof of name, address and
activity like registration certificate, sales tax or income tax returns, utility bills or rental agreements etc.

Once a relationship is established with State Bank of India, the bank is ready to cater to the needs of its
customers as per the individual requirements.

Personal Banking

State Bank of India provides personal banking services to meet the savings, investment and finance
needs of its customers.

Savings

State Bank of India enables opening of savings account to meet the needs of all categories of customers
ranging from general saving accounts to a premium/priority accounts. The key features of the savings
deposit schemes provided by SBI are as follows:
A Savings account can be opened with no minimum balance requirement under the No Frills Account
option or the account holder can opt for premium accounts under the State Bank of India MOD (Multi
option Deposit scheme). Under the MOD scheme operated by the bank, a minimum balance of Rs.
25,000 needs to be maintained in the account. Any amount in excess of this is Auto transferred in units
of Rs. 1,000 and deposited into a term deposit with minimum balance of Rs. 10,000, which enables the
account holder to earn a higher rate of interest on his/her deposit.

To teach the younger generation the importance of money and banking, the bank has introduced the
Pehla Kadam and Pehli Udaan accounts for children aged less than 18 years.

All the savings accounts have a Nomination facility.

The balance in the account earns you 4% interest on a daily balance basis. The interest earned is credited
to the account bi-annually.

Deposits

Investment in Term Deposit

The deployment of excess funds in the account can be channelised to generate further wealth by way of
various deposit schemes provided by the bank. Some of the features of the Term Deposit account that
can be opened with this public sector bank are:

Term deposit can be opened with a basic minimum amount of Rs.1, 000/-, with no limit on the maximum
amount.

Tenure of the deposit can range from 7 days to 10 years.

Payment of interest as per bank rules and type of account.

Senior citizens earn an additional interest of 0.25% on such term deposit.

Pre-mature Withdrawal: Retail term deposits can be pre-maturely withdrawn however, various penalties
may be applicable.

Tax Deducted at Source: If the interest earned on term deposit is above Rs.10, 000/- , then TDS payment
at the applicable tax slab of the account holder. However, Form 15H/15G needs to be submitted by
customers who do not qualify for payment of tax.

The customers can avail auto renewal facility on maturity of the term deposit.
Term Deposit can be opened under the Tax saving scheme. This deposit has a lock-in period of 5 years.
The amount deposited under the Tax saving scheme is allowed as a deduction under section 80C of the
Income Tax Act. The principal and maturity amount of this deposit is tax free, however, the interest
earned by such deposits is taxable as per applicable rules.

Investment in Public Provident Fund (PPF)

You can open a PPF account with SBI by complying with the necessary KYC norms. The account is opened
for 15 years with minimum annual deposit of Rs.500 and a maximum annual deposit of Rs.1.5 lakhs. The
tenure can be extended by a further block of 5 years each time after maturity. The amount deposited in
the account is eligible for deduction under section 80C of the Income Tax Act. The interest rate is revised
by the government periodically and the amount of interest is credited on March 31 every year. The
amount of interest paid is tax free. Limited withdrawal from the account is permissible after the end of
5th year for specified purposes. The account can be opened for a minor by a parent who acts as the
custodian of the account till the account holder reaches 18 years of age. The account features
nomination facility.

Investment in New Pension Scheme (NPS)

Unlike the previous generation which could depend on their pension to meet day to day expenses during
the post retirement, the new India is moving to a non-pensioner society. It has therefore become
important to encourage saving for post-retirement life. The New Pension Scheme is a welcome option to
people looking for retirement planning.

NPS introduced in May 2009, is a pension scheme which was introduced to provide a monthly pension to
the scheme holders post the retirement age of 60 years. The scheme is open for anyone above 18 years
of age till 60 years of age. The scheme requires the account holder to have a KYC is place. The subscriber
needs to get registered with the Central Record Keeping Agency (CRA) and a Permanent Retirement
Account Number (PRAN) is generated. PRAN is to be quoted in every transaction done under the
scheme.

The scheme is run under two options:

Tier I Tier II

Minimum Contribution for account opening Rs. 500 Minimum Contribution for account opening Rs.
1,000

Minimum contribution at a time Rs. 500 Minimum contribution at a time Rs. 250

Minimum Balance required at the end of the financial year is Rs. 6,000 Minimum Balance required at
the end of the financial year is Rs. 2,000

The account holder needs to deposit money at least once a year. The account holder needs to deposit
money at least once a year.

The amount deposited cannot be withdrawn till the age of 60 years. No restriction on the number of
withdrawals

Of the total amount accumulated at the end of 60 years of the account holder, 40% of the amount is
annuitized compulsorily and is used to pay pension to the account holder. The account holder has the
option to annuitize the entire balance in the account. Tier II option is used generally by employees for
whom NPS is mandatory.

Unlike PPF there is no fixed rate of interest earned on the amount deposited under NPS. The returns are
market linked. The subscriber has the option to opt for investing is the schemes either Equity High risk
High return, Medium risk or low risk- fixed Income instruments. The subscriber can also choose the
Pension Fund managers (SBI Pension Fund Private Limited is one of them). The amount invested under
NPS is allowed as a deduction under section 80C of the Income Tax Act. Further, additional Rs.50, 000/- is
allowed as a deduction under section 80CCD for the amount contributed towards NPS.

Personal Finance

The customers can benefit from the banking relationship with State Bank of India to meet their financial
needs be it buying a home, car or education. The bank also provides an EMI Calculator to enable the
customers to calculate the amount of their monthly repayments.

Home Loan: Home loan is provided under different categories depending upon the requirement and
eligibility of the borrower. The Interest on home loan for loan amount of Rs.30 lakhs and below can be
availed with a fixed or floating interest rate option. Floating interest rate is linked to MCLR.

Concessional interest rates are available for women, in case they are sole or co-applicants as long as they
are also sole or co-owners of the property for which home loan is availed. Concessional interest rate on
auto loans is also available for women.
Education Loans: State Bank of India provides educational loans for studying in India or abroad. These
loans come with a moratorium period and the repayment commences generally after one year of
completion of course. The interest rates are linked to MCLR (Marginal Costs of Funds based Lending rate)
and have a reset period of 1 year. In most schemes, girl students are given a concession of 0.50% on the
usual lending rate. A further concession of 1% for full tenure of the loan is provided if interest is serviced
promptly during the moratorium period.

Personal Loans: The amount of loan sanctioned is based on the Net Monthly Income (NMI) of the
borrower. The NMI/EMI ratio should not exceed 50. That is if the NMI is Rs. 10,000 then the EMI should
not be more than Rs. 200. The bank charges processing fee on personal loans in the range of 2-3% and
the same is deducted from the amount sanctioned. There are no pre-closure or pre-payment charges in
case interest is charged on floating rate basis. The maximum loan amount is capped at Rs.15 lakhs. The
loan tenure generally ranges from 24 months to 60 months i.e. 5 years.

Loan against Property: State bank of India also provides loan against mortgage residential or commercial
property. The amount of loan that can be availed under the scheme is a minimum of Rs. 10 lakhs to a
maximum of Rs. 7.5 crores. The amount of loan is determined based on the value of the property and
the net monthly income of the borrower. The loan tenure ranges from 5 years to 15 years.

Loan against Securities: State Bank of India provides loan or overdraft facility against debentures, shares
or government bonds for meeting personal or business contingencies. Loan against debentures and
shares can be availed up to a maximum Rs. 20 lakhs and is repayable within 30 months. The loan is
provided against pledge of shares or debentures.

Gold Loans: Gold loan is provided against pledge of gold ornament and ranges from Rs. 20,000 to Rs.20
lacs. A margin of 25% is maintained by SBI when granting a gold loan. The facility is provided in form of
loan or overdraft.

State Bank of India provides a streamline process for ensuring speedy loan approvals and disbursals. The
turnaround timeline for some of the common types of loans are as follows:

Metro and Urban centers

Type of Loan Indicative timelines for loan disbursal

Home Loan Ranging from 6 days to 16 days and additional 2 days for documentation and disbursal

Car Loan 2 days (1 day for HNIs)

Educational Loan 6 days

Personal loan 3 days

Loan against property or Rent 6 days

In semi- urban and rural centers these timelines may be slightly longer. The turnaround time or the TAT is
considered from the date of receipt of completed documents by the bank from the loan applicant.
However, the time taken by the applicant for submitting documents and/or for furnishing information
sought by the bank will not be taken into account when calculating the applicable TAT. The number of
days as mentioned above is based on the full working days.

Cards

State Bank of India encourages use of plastic money to facilitate all kinds of financial transactions. The
bank provides a range of debit cards that suit the unique requirements of each client group:

Debit Cards: State Bank of India provides debit cards starting from classic debit cards to enable account
holder to shop, book tickets or withdraw cash. The Bank provides International debit cards for the
convenience of individuals who travel outside the country often. The maximum amount of transaction
that can be done varies for Silver, Gold and Platinum International debit cards.

Contactless Debit Card: sbiINTOUCH Tap and Go debit card is based on Near Field Technology and uses
contactless technology to transmit purchase information to and from a contactless reader. The card is a
multi-purpose international debit card that can be used by the holder to make payments at any
merchant outlet which support contactless transactions.

SBI Mumbai Metro Combo Card: The card is designed especially for Mumbaiker commuting using the
Mumbai Metro. The card can be used at Mumbai Metro stations to pay for metro tickets as well as for
shopping at various merchant outlets.

SBI Business Debit Card: These cards are designed for non- individual business clients of the bank. The
card enables the holder to make online payments and travel cash free internationally. SBI Business Debit
Card ensures high level of security from card frauds as it uses the highly secure EVM chip.
SBI Prepaid Debit cards: State Bank of India offers various pre-paid card options. State Bank Gift Cards
need to be loaded with an amount of at least Rs. 500 to a maximum of Rs.50,000 and can be a great gift
to near and dear ones. The cards have a validity of 3 years. State Bank Foreign Travel Card is a pre-loaded
card which is available in 8 foreign currencies. As per RBI norms, the maximum amount that can be
loaded is currently capped is USD 250,000. The card is issued on validation of passport and other travel
documents