1st issue e-gyan, july-2013

8/19/2019 1st Issue E-gyan, July-2013

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e-gyan by SBLC, Masulipatnam, Dt. 20.07.2013 Page 2

DISCLAIMER

“We h av e m ad e e very ef fo rt to pr ov ide bes t sol ut ion s f or th e qu eri es ra ised by th e op er at ingstaff in KHL. However, the readers of this magazine are advised to go through the Bank’sCirculars, publications and seek advice from the Controllers or experts before taking any

action or decision based on the information, material contained in this e-magazine.SBI/SBLC do not accept any liability for any damage or loss of any kind, howsoever causedor of any nature whatsoever as a result (direct or indirect) of the use of the information,material contained in this e-m agazine.”

We solicit suggestions/ feedback to [email protected] for improvement of this magazine, e-gyan.

01.What is the process of ATL Loan Documentation & Review ?

Prescribed formats for loan documentation and Review under specific schemes are

readily available in branches and the procedure is available on SBI TImes - Manuals- Codified Cir - Book of Instructions. Kindly go through it. AGRICULTURAL ADVANCES- DOCUMENTATION The documents to be obtained at the time of freshsanction of advances or renewal of credit facilities are given below: D.P.Note (COS229) & D.P. Note Take Delivery Letter For Crop Loans / Term Loans up to Rs.1,000/-(where movable assets are created), and For Term Loans upto Rs.10,000/- (wheremovable assets are not created) Form III Revival letter for D.P Note AB 1


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Hypothecation Agreement to be used for all loans where hypothecation charge overthe securities financed by the Bank is created. AB-1 (Sim) Hypothecation Agreementto be used for all loans up to Rs.1.00 Lac where hypothecation charge over thesecurities financed by the Bank is created. Arrangement Letter Arrangement LetterFormat AB 2 Deed of Guarantee to be executed by the guarantor to a loan,wherever such guarantees are obtained. AB 3 Deed of mortgage to be obtainedwherever it is considered necessary. ($) AB 4 Revival letter for AB - 1 AB 5 Revivalletter for AB 2 AB 6 Letter to the borrower demanding repayment of crop loan. AB-7 Letter to be addressed to the Bank by the borrower and the guarantor forconversion of Crop Loan to Term Loan or re-scheduling repayment of existing TermLoans. AB 1 A Supplemental Hypothecation Agreement to be used for extension ofthe hypothecation charge over all the securities (existing as well as new) to coveraggregate limits sanctioned by the Bank. AB-2-A Supplemental Deed of Guaranteeto be obtained from the guarantors, if any, to cover the aggregate limits, i.e. theexisting as well as new credit limits granted by the Bank. AB 3 A Deed of Extensionof Mortgage for extension of the mortgage to cover the aggregate limits ($) AB 4 ARevival letter for AB-1 and AB 1 A. (to be used only in cases where supplementarydocuments have been obtained). AB 5 A Revival letter for AB-2 and AB 2 A. (to beused only in cases where supplementary documents have been obtained). MortgageDeed (Guarantors) To be executed by guarantors whose land is to be mortgaged asa collateral security for agri. loans ($) As regards creation of mortgage, the practicesprevailing vary from State to State depending upon the farm legislation in force in aparticular State. In most of the States legislation has been enacted as per TalwarCommittee recommendations, which has simplified the creation of charge over landwithout execution of any mortgage deed. However, as some States have still notenacted the said legislation, no uniform format can be devised for adoption by banksthroughout the country. It is, therefore, suggested that banks operating in differentstates conform to the prevalent laws of the respective States. The 'Deed ofMortgage' (AB-3 / AB-3A) may be used by the branches wherever applicable. Ref:CHAPTER II; GENERAL GUIDELINES FOR AGRICULTURAL ADVANCES ***** ReviewRenewals: KCC limits are normally valid for 3 years but will be subject to annualreview. The review may result in continuation of the facility, enhancement/reduction of their limit or withdrawal of the facility depending upon the performance

/ conduct of the account by the borrower. When a crop loan is to be renewed, thefarmer borrower should furnish the necessary particulars in respect of agriculturaloperations in the prescribed Application Form for Renewal and enclosure thereto.The branch field officer should submit verification report at the bottom of theRenewal Application form. If borrowers and guarantors liabilities continue to subsistby virtue of documents executed by them, no additional document is called for atthe time of renewal of crop loan limits. All renewal should be reported to thecontrolling authority in the same manner as new sanction.


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02.Customers complain of deduction of tax even after submitting 15 G & 15 Hform. Why does this happen ?

1. Please verify whether pan number was available in the "income tax pan" fieldof the CIF availability of income tax pan at cif is mandatory for form 15G&H to beoperationalized.

2. If the above position is free of problem, then enquire (TDS details menu in CBS)whether form 15g/h was created for all STDRs/TDRs under the same CIF. Normally15g/h will be created in CBS for one STDR only as the same will be mapped at CIFlevel and applicable for remaining STDRs. but in some cases it is not gettingmapped. For such cases choosing the amend option, you can create 15g/h for allthe STDRs under the CIF using the reference no for 15G/H.

3. If the aggregate interest earned from all deposits under the CIF exceeds theincome tax threshold limit (rs.200,000/ for male/female citizen or the respectiveexemption limits set for senior/very senior citizens), then creation of 15g/h will beoverlooked by the system and TDS will be deducted. Kindly verify your position.

03.Please explain in detail about the credit risks and capitals Tier I & II & III andDifferences between them.

Tier I capital: For Indian banks, Tier I capital would include the following elements:

i) Paid-up equity capital, statutory reserves, and other disclosed free reserves, ifany; ii) Capital reserves representing surplus arising out of sale proceeds of assets;iii) Innovative perpetual debt instruments eligible for inclusion in Tier I capital, whichcomply with the regulatory requirements iv) Perpetual Non-Cumulative PreferenceShares (PNCPS), which comply with the regulatory requirements and v) Any othertype of instrument generally notified by the Reserve Bank from time to time forinclusion in Tier I capital. For foreign banks in India, Tier I capital would include thefollowing elements: (i) Interest-free funds from Head Office kept in a separate

account in Indian, Total Tier I capital funds, subject to prudential limits forInnovative Perpetual Debt Instruments minus deductions from Tier I capital. Total ofeligible Tier I capital funds and eligible Tier II capital funds, subject to prudentiallimits for Innovative Tier I instruments, Upper Tier II instruments and subordinateddebt instruments minus deductions from Tier I and Tier II capital. Notes: (i) Foreignbanks are required to furnish to Reserve Bank, an undertaking to the effect that the


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bank will not remit abroad the 'capital reserve' and `remittable surplus retained inIndia as long as they function in India to be eligible for including this item under TierI capital. (ii) These funds may be retained in a separate account titled as 'AmountRetained in India for Meeting Capital to Risk-weighted Asset Ratio (CRAR)Requirements' under 'Capital Funds'. (iii) An auditor's certificate to the effect thatthese funds represent surplus remittable to Head Office once tax assessments arecompleted or tax appeals are decided and do not include funds in the nature ofprovisions towards tax or for any other contingency may also be furnished toReserve Bank. (iv) The net credit balance, if any, in the inter-office account withHead Office / overseas branches will not be reckoned as capital funds. However, anydebit balance in the Head Office account will have to be set-off against capital. (v)Banks may include quarterly/half yearly profits for computation of Tier I capital only

if the quarterly/half yearly results are audited by statutory auditors and not whenthe results are subjected to limited review. Limits on eligible Tier I Capital: (i) TheInnovative Perpetual Debt Instruments, eligible to be reckoned as Tier I capital, willbe limited to 15 per cent of total Tier I capital as on March 31 of the previousfinancial year. The above limit will be based on the amount of Tier I capital as onMarch 31 of the previous financial year, after deduction of goodwill, DTA and otherintangible assets but before the deduction of investments. (ii) The outstandingamount of Tier I preference shares i.e. Perpetual Non- Cumulative Preference

Shares along with Innovative Tier I instruments shall not exceed 40 per cent of totalTier I capital at any point of time. The above limit will be based on the amount ofTier I capital after deduction of goodwill and other intangible assets but before thededuction of investments. Tier I preference shares issued in excess of the overallceiling of 40 per cent, shall be eligible for inclusion under Upper Tier II capital,subject to limits prescribed for Tier II capital. However, investors' rights andobligations would remain unchanged. (iii) Innovative instruments / PNCPS, in excessof the limit shall be eligible for inclusion under Tier II, subject to limits prescribed for

Tier II capital. Elements of Tier II Capital Revaluation Reserves These reserves oftenserve as a cushion against unexpected losses, but they are less permanent in natureand cannot be considered as `Core Capital. Revaluation reserves arise fromrevaluation of assets that are undervalued on the banks books, typically bankpremises.


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04.When we try to issue Second ATM Card after blockage of First ATM card by using1. New, it shows “Record already exists” 2. Replace, it shows “such card has notbeen issued to the customer”. Kindly look in to the matter As early as possible andoblige.

Verify the status of ATM Card before going for ATM card issue request. Menunavigation: State Bank Time/useful links1/ABOSS/Card status/by account no or cardno. The status of the old card should be "BLOCKED" Please go for "New" only.

05.How can I resolve error: 943 in Mobile Banking. Customer A/c No.20054452739Name Shri Mukesh Kumar Choudhary?

Registration is complete in respect of the above account and it is ready to use. You

can enquire the status of registration in State Bank Times/Useful links2/Mobilebanking/search by account no or user id. 943 error description: Please completeregistration process before using any service. But MBS registration is complete inrespect of the above account and ready to use.

06.Regarding Draft exchange for amount Rs.5000/- below should we collect cashhandling charges i.e., Rs.25/-+Rs.10/- Total Rs.35/- or only Rs.25/-

In terms of e-Circular of Banking Operations Department Sl. No. : 995/2012 13,

Circular No. : NBG/BOD-GB/93/2012 - 13 dated the January 1,2013, Master Circularon Service Charges, Sl.No.33 under Issue of demand drafts (a) By transfer of fundsfrom any other account at home branch/ non home branch -Upto Rs.5,000/- Rs.25/-(b) By deposit of cash, in addition to above charges, cash handling charges or Rs.10/- per draft, whichever is higher to be recovered (i.e. Rs 35/-)

07.A Central Government employee (Multi Tasking Staff- Scale 5200-20200) wantsto take a two-wheeler loan. His total service period is 5 months still. His salaryaccount is in SBI. Is he eligible for the loan What are the documents required this?

Please refer to Manual on Loans and Advances Part-8 Para 4.7 Page no. 340 in SBITimes>Home » Credit Policy & Procedures Department » E-Manual on Loans and

Advances.


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08.Respected Sir, I have given the transaction rights to the OD account of acustomer for internet banking. In how many days would it be reflected in theinternational banking portal?

Normally it should get reflected the next day. If you however do not see thisreflected, please login in as INB Officer, go for Rectify Mapping Issues - Update

Account Details have to be invoked - give the account number and fill the otherdetails sought. It will then be available on the next day.

09.Is it sufficient to enter form 15 G / H in a single account when there are morethan one accounts under one common CIF If customer had already submitted theform 15 G/H and he then made a fixed deposit account, then does he again requiredto submit the form 15 G/H for that particular account Kindly guide me.

The Form 15G/H can be taken for any deposit account of the customer. This takescare of other accounts in the same branch under the same CIF. There is no need totake the form for each account in the branch.

10.A customer has submitted a Succession Certificate willingly for claiming the finalamount lying in a Deceased SB account. The amount involved in Rs.521400/-.Kindly inform me what more documents to be taken along with the SuccessionCertification i.e. what documents are required if a customer gives SuccessionCertificate and what extra formalities to be carried out in case of SuccessionCertificate (if any) ?

SETTLEMENT WITH LEGAL REPRESENTATION: A legal representation is one that isgranted by a Court of Law entitling the legal heirs of the deceased to collect thedebts/securities or assets of the deceased. Bank may opt for settling the matterthrough legal representation. The following documents represent different forms oflegal representation: Succession Certificate, Probated Will, Letter of Administration,

Order of the Administrative General attached to the High Court. Scope of aSuccession Certificate:- A Succession Certificate is a legal representation, which isgranted only in respect of debts and securities, and when the deceased has not leftany Will (INTESTATE). It does not cover gold loan ornaments, articles in safecustody and safe deposit lockers. It is valid throughout India even if granted by aDistrict Court. The Certificate specifies: Debts and Securities The person to whom


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it is granted. Any payment to the grantee/s on the strength of a SuccessionCertificate affords a valid discharge to the person making the payment. Where aSuccession Certificate is in favour of two or more persons, the payment of thedeposits should be made jointly in favour of all of them. In addition, DeathCertificate to be obtained and Succession Certificate (genuineness of successioncertificate to be verified) . we have to ensure KYC of claimants. Sanction should beobtained from the appropriate authority and control form must be sent. A receiptfrom the claimants to be obtained and kept on record. All documents must beentered in Branch Document Register.

11.Sir, Please guide me, navigation menu in service desk to unblock ATM Card.

On the home page of State Bank group Service Desk go to "CREATE A NEWREQUEST" under "REQUEST SUPPORT" menu. Then click on hyper link "CLICK HERETO SELECT REQUEST CATEGORY (REQUIRED)". You will get a screen containing listof "REQUEST AREAS" including ATM. Select ATM and go to desired operation.IMPORTANT: PLEASE MAKE SURE THAT THE ABOVE PROCESS IS DONE BY A USERWITH CAPABILITY LEVEL OF 9 OR USER TYPE OF 50.

12.When do we use the different Minor Heads of 100,102,200,300,400 in CBDTReceipts ?

When a customer approaches the CBS branch with a challan to deposit Direct Tax toCentral Government, the Single Window Operator (SWO) has to first of all ensurethat the following precautions are taken: Income Tax Challan (ITNS 280) should befilled up clearly with Assessment Year, Minor Head, PAN number, Name, address,Phone number, Penalty code. PAN number (has 5 alphabets + 4 numeric +1alphabet) Tax Deposit Date, Minor Head, Related Fin Year(FY) Assessment Year(AY)-------------------

18-04-12 100 (Advance Tax) 2012-13 2013-14

18-04-12 300(Self Assessment Tax) 2012-13 12-13 or 11-12 or 10-11(i.e.


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Tax Deducted at Source (TDS) is deducted on payment of salary, pension, rentcommission etc. and deposited into Govt Account through challan number ITNS 81.It should clearly indicate Assessment Year, TAN number, Minor head, Name,address, phone number and Nature/type of payment. TAN contains 4 alphabets+5digits+1 alphabet Normal TDS is deposited under minor head 200 and in case ofdemand raised by IT department, it is 400. Nature of payment is mandatory forTDS challan, e.g. 92A, 92B, 94C, and 94I etc, all valid codes are given at the back ofITNS 281. There are 32 codes for Nature of Payment. Nature of Payment indicatesthe type of payment for which TDS has been deducted. Therefore separate challanhas to be prepared for each nature of payment. Minor head 200 can be for current

AY as well as for previous AY, whereas 400 canbe used only for previous AYs.

13.Is Form 15 G/H need to be fed for all accounts of one CIF or only in one accountsufficient.

Form 15 (G)/(H)(whichever is applicable) which is fed in CBS, for any one STDRaccount shall take care of all other Fixed deposit accounts under the same CIF atthat particular Branch. However the same shall not take care of the depositsaccounts opened at Non Home Branches & Other Deposit accounts of the customerunder different CIF, if any. For example, a depositor has 5 STDR accounts, out ofwhich three are opened at Home Branch and 2 are of some other Branch. At Home

Branch, if we feed the Particulars of Form 15(G) or (H) for any one account, it willtake care of all three, but not all Five accounts.

14.What is the maximum loan amount under SBI Student Loan for studies in India.

The Maximum cap for loan under SBI Student Loan Scheme for studies in India isRs.10.00 Lakhs. The maximum limit under SBI Student Loan Scheme for studiesabroad is Rs.30.00 Lakhs.

15.What are the role wise registered to be maintained by different officials of thebank.

Rationalisation of Registers maintained at Branches/CPCs, post migration to CBS hasbeen advised vide E-circular No. Circular No. : NBG/S&P-SP/8/2011 - 12 February29,2012. Please be guided accordingly.


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16.Customer already submitted Form 15G, inspite of this, TDS deducted fromcustomer’s account. Customer has more than one STDR in same CIF. Please give

me proper guidance about TDS deduction process and how to avoid it aftersubmitting form 15 G.

Please verify and ensure that the following details are properly entered in CIF: 1.PAN Number is recorded in CIF 2. CIS ORG CODE: MALE OR FEMALE (41 OR 42) 3.CUSTOMER CATEGORY: PERSONAL-INDIVIDUAL 4. DEPOSIT IS OPENED INCORRECT PRODUCT TYPE CATEGORY I.E., PER DOMESTIC INDIVIDUAL EnquireTDS details in the system and see that whether form 15 G is submitted and status is"y" or not. Verify that whether interest during financial year is crossed Rs.2.00 lacs.If crossed that amount, tds will be deducted. Form 15(G)/(H) if fed for any oneSTDR a/c shall take care of all other Home Branch STDR accounts in the same CIF.

17.Sir, Is there any restriction to finance against STDR in some cases viz., Ifcustomer opened STDR and wants to take loan against same STDR on the sameday. What are Bank’s extant instructions regarding this ? Will this lead to WindowDressing and ALM (Assets Liability) Mismatch ?

As per Bank's instructions, a demand loan to be entertained prefarably against aSTDR/TDR which completed 50% of the contracted period.If any depositorapproaches the Branch immediately after opening the deposit account can bepersuaded to withdraw the same. It forms part of window dressing.

18.Eligibility age for Car Loan is 21-65 years but in case of Housing Loans it is 18-65years. What is the Rationale for higher minimum age in car loans ?

The rationale for lower/higher age for Housing loan/Car loan respectively is notprovided in any circular including master circulars. The reason for lower age (i.e. 18years) to be eligible to avail housing loan may be to promote housing activity whichcontributes to Economy / national income and also Priority sector. Further it enablesthe borrowers to make thier major children co-borrowers in order to avail requiredloan to complete the project. The Age Limits are decided by the Bank.


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19.Respected Sir, one of our customer has savings bank account with anotherbranch, but he wants to open new saving bank account in our branch with same ID.I want to know that he is eligible to open account or not. Please guide in thisregard.

Savings Bank Master Circular issued by our organization didn't speak anything aboutopening of multiple SB Accounts for the same person. It has spoken only about thepossibility of avoiding opening of multiple CIFs for the same person. hence it can beineferred that Branches can open multiple SB Accounts, perhaps for differentpurposes of the customer, under the same CIF.The SB Rules, also contained in thesame circular, didn't bar the customer from having multiple SB Accounts. Butmultiple CIFs for the same customer to be avoided.

20.Are multicity cheques issued previously complied with CTS 2010 standards?

The following are the important features of CTS 2010 standards: 1. Printers namealongwith printing CTS 2010 compliance should be available on the cheque 2. VOIDpantograph 3. Standard bank's logo. If any MCC is not having any of the above,then it is not a CTS 2010 Compliant. please be guided accordingly.

21.Can a person have a different CIFs in a branch and different CIFs in differentbranches ?

One individual should have only one CIF in the Bank. We are not supposed to opentwo separate CIFs for an individual. However one can have sevaral deposit accountswith our different Branches (all opened with the unique and same CIF.)

22.Sir, Please help me to know that how much amount we can accept in a currentaccount o non-home customer. Is any circular available about the limit of non-homecustomer’s cash acceptance in current and saving account ?

As per the recent instructions of the bank, non-home Branch cash deposit inpersonal segment accounts is up to Rs.25,000/- per day. However non-home Branchcash deposit in SME segment is up to Rs.200,000/- per day with a charge of 0.20%,the minimum being Rs.25/-. Different Power series (SME) current accounts, havedifferent salient features with regard to Charges, Acceptance of Cash per day etc.The circular reference is given hereunder.


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Circular No.NBG/BOD-SC/42/2012-13 dated 19.07.2012. & Circular No. :NBG/SMEBU-POWER CA/33/2010 - 11

23.Sir, can I know how to issue a Duplicate Demand Draft in CBS if the customer

has lost his original DD.

A decision for issuance of duplicate IOI must be taken by a suitable officer in theBranch. The process of issuing IOI in CBS is as under: Issue of Duplicate IOI:Preconditions/ Notes: 1. All formalities like obtention of indemnity and/or non-payment advice whereever applicable etc., should be completed before issuing aduplicate. 2. Duplicate will be issued on continuous stationery only. 3. System willprint the duplicate IOI with original number and original date. 4. System will printlegend DUPLICATE. 5. Duplicate flag and Indemnity received flag should be changedto Yes before clicking on Print/Transmit button. Menu Navigation: 1. Click on: Inland(Rupee) Remittance Issue Remittance Issue: Prompt Screen 2. You will be taken toScreen No 021019 Remittance Prompt Screen. 3. In the Field Journal number, enterthe Journal Number that was generated while receiving the funds, which you havenoted on the voucher. 4. Select the IOI Flag as Y:Yes. 5. Select the instrument typeas 1. IOI- Bankers Cheque or 2. IOI - Demand Draft from the Drop Down Menu.This should be the same type for which funds have been received through earlierprocess viz., Receipt of Funds. 6. Click on Transmit button. 7. You will be taken to

Screen 021018 Remittance Issue : DD/BC 8. All relevant values will be picked up bythe system in the respective fields. 9. Verify the number in the Field OriginalInstrument No. should be the same as that of the old Instrument for which we aregoing to take a duplicate. 10.In the Field Instrument No. from, enter the 12 digitInstrument No. of the new Instrument used for printing the duplicate of oldInstrument. 11.Select the field Duplicate : as Y:Yes. 225 12.Select the fieldIndemnity Rec. as Y:Yes. 13.Click on Transmit. 14. After ensuring that the printer ison and the correct stationery forms have been loaded to the printer, click the

Print/Transmit button. The DD/BC will be printed in the selected Printer ascontinuous stationery, with the details of duplicate Instrument having the legend asDUPLICATE. 15.O.K. Issued Successfully. Document has been sent to printer, Pleaseverify. message is displayed in the message bar, if the transaction amount is withinthe passing powers of the User.


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24.How to Activate a ECS in CBS.

You have to receive the ECS debit mandate submitted by the customer to Axis Bank.On receiving the ECS debit mandate, you have to verify whether the customer'ssignature is tallying with the records available with you and then you go to CBSmenu as mentioned below. CC/OD/Depsoits ----> Create-----> ECS Mandate. Thereyou create the details of the ECS debit mandate and also fill in the User Nofurnished in the covering letter of the ECS Debit Mandate.After creation, you can aswell enquire the same in CBS towards confirmation of having created it usingenquiry menu.

25.What are all the documents required to open NRE Account and other formalitiesto be followed?

For the required documents you may also visit our Banks exclusive Website on NRIProducts --> https://www.onlinesbi.com/nri/ Extracts from the website isreproduced for quick reference. Fill up the account opening form and send it to thebranch of your choice with the following documents: Two passport size photographsattested by you. Passport & Residence Visa / ID Card Copies duly attested by Banker

/ Notary Public / Indian Embassy / A person known to the Bank. Initial remittance.Signature in the account opening form verified by any one of the following : IndianEmbassy / Consulate / High Commissione. Your bank abroad. A person known to theBank. Notary Public. Enclosures (any two of the following): Cheque drawn on bankaccount abroad. Latest Overseas Bank statement in original. Copy of Telephone /Electricity Bill. Cancelled paid cheque of your Overseas Bank A/c. Copy of Proof ofDrawing Income / Employee ID / Labour Card.

1st issue e-gyan, july-2013

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