promotion test booklet 17june12 final

Study Material Promotion Test 2012

~:Based On:~

� Internal Circulars of Bank

� Bank's Policies

� Bank's IT & Other Products / Finacle

� Financial Awareness

Updated Till - 01/06/2012

CENTRAL ZONE COMMITTEE - AIOBOA

BHOPAL

CENTRAL ZONE COMMITTEE

ALL INDIA ORIENTAL BANK OFFICERS' ASSOCIATION (AFFILIATED TO AIBOA)

C/O REGIONAL OFFICE, BHOPAL

PHONE : 0755-2575331

---------------------------------------------------------------------------------- Bhopal/2012/ 07-06-2012

Dear Comrades,

Bank’s promotion process is going to start and Examination is knocking at the door. The new aspirants are preparing hard to come out successful. Central Zone Committee is aware about the heart throbbing preparation of the candidates; hence wish to assist them in their preparation through this booklet containing numerous possible questions for the ensuing Promotion Test. This booklet is prepared in accordance with the changed pattern of examination encompassing General banking, IT, various existing and latest products of Bank, latest amendment/changes made available through circulars relating to advances, recovery and other products. The personal efforts of experts by incorporating questions and answers collected from various sources, enrich the booklet, while may go a long way in brining success to the candidates. We hope by going through the booklet, which is prepared scientifically, methodically and exclusively based on internal circulars & policies for examination, success is bound to come. Hope lies in human heart and if you are hoping for the real success, this booklet shall serve your purpose. Hard work, dedication and relentless efforts are the key to success. Hence put your best foot forward while preparing for the test. With all good wishes to the participating aspirants for their sure success.

Yours comradely,

Balbir Singh B.C. Paunikar Secretary President

9926642545 9425393868

OBC OFFICERS’S WELFARE FUND,CENTRAL ZONE COMMITTEE -AIOBOA BHOPAL

Promotion Test 17 JUNE 2012 (UPDATED TILL 01-06-2012) 1

Important Banking Indicators

Base Rate 10.50% (w.e.f 14/05/2012) P L R 14.75 %(w.e.f 14/05/2012)

Bank Rate 9.00% (w.e.f. 17/04/2012) Repo Rate 8.00% (w.e.f. 17/04/2012)

Reverse Repo Rate 7.00% (w.e.f. 17/04/2012) C R R 4.75% (w.e.f. 10/03/2012) S L R 24.00%(w.e.f. 18/12/2010)

Financial Results of the Bank Figures in ` Crores

Parameters 31/03/2009 31/03/2010 31/03/2011 31/03/2012

Deposits 98369 120258 139054 155965

Advances 69065 83489 95908 113050

Total Business 167434 204442 235893 269015

Operating Profit 1684.98 2421.5 3245 3141.00

Net Profit 905.42 1134.68 1503.00 1142.00

Profit per Employee (`̀̀̀ In Lacs)

6.18 7.39

Business Per Employee 11.42 13.31 14.18 14.62

Business per Branch 119.51 135.57 145.61 151.81

Capital Adequacy Ratio (%)

12.98% 12.54% 14.23 12.69%

Cost of Deposits (%) 7.52% 6.57% 6.03% 7.69%

Yield on Advances (%) 10.82% 10.20% 10.32% 12.16%

Gross NPA (%) 1.53% 1.74% 1.98% 3.17%

Net NPA (%) 0.65% 0.87% 0.98% 2.21% HIGHLIGHTS FOR 2011-12

� The Bank was awarded the ‘Most Cost Efficient Operator’ at FIBAC-2011 organized by Indian Banks Association (IBA) & Federation of Indian Chamber of Commerce & Industry (FICCI) (Ist Half).

� 100% system driven classification and provisioning of NPAs. � CASA Deposit stood at Rs. 34,628 crore growth of 10.19 % (YoY). � CASA Deposits to Total Deposits at 24.13 %. � Credit Deposit Ratio at 72.68%. IMPORTANT RATIOS

� Provision Coverage Ratio at 61.52%. � Net Interest Margin (NIM) at 2.68%. � Return on Assets (RoA) at 0.67%. � Cost to income ratio is at 42.44%. � Book Value Per Share at Rs. 361.20. � CRAR of the Bank is at 12.69 % under BASEL-II (Tier-I Capital: 10.12%; Tier –II Capital: 2.57%). DELIVERY CHANNELS

� Bank’s branch network stood at 1772 Branches with 19 extension counters. � 152 Branches have been opened during Year. � Card Base as on 31/03/2012 was 32.71 lac (card holders).6.88 lac cards issued during year. � The total number of ATMs as on 31-03-12 stood at 1270 (including 7 Mobile ATMs, 331 offsite

ATMs and 6 Biometric ATMs). � 4.46 lac internet banking users and 24.81 lac customers availing SMS facility. � 81.40% of eligible cash transactions are happening through ATMs. � Bank is offering RTGS, NEFT, E-Tax, Ibanking through all Service Outlets.



NEW INITIATIVES

� The Bank has launched Oriental Reverse Mortgage Scheme. � The Bank has operationalised a Mobile Branch for Palwal District of Haryana. � This Mobile Branch is providing Banking Services to the residents of 9 (Nine) adjoining villages

at their doorsteps. Mobile branch envisages extension of Banking facilities through a well equipped van for providing Banking Services such as account opening, transaction facilities, remittance facilities, accepting loan applications, etc.

� The Bank has launched “ORIENTAL BANK MEDICLAIM POLICY” in collaboration with the Oriental Insurance Company Ltd. for its customers. It is a Family floater Scheme covering 4 family members in the age group of 3 months to 79 years with Insurance cover ranging from Rs. 1 Lac to Rs. 5 Lacs.

� The Bank has launched a co-branded Credit Card in the name of SBI-Oriental Bank of Commerce Credit Card which is in collaboration with SBI Cards. The card is available in two variants - Platinum and Gold for customers as well as staff of the Bank.

IT INITIATIVES

� Implementation of 256-bit VeriSign Extended Validation (EV) SSL for Bank's website. � Implementation of E-payment of VAT for Maharashtra State. � NREGA Seamless integration of transfer of NREGA file having accounts maintained by branches

of RO Jaipur & Srigangaganar (Rajasthan State) through SFTP Server and SBBJ Server on daily basis around 9.00 AM

� The Bank has launched its First E-Lobby at Nehru Place, New Delhi. This State of Art unmanned E-Lobby provides wide ranging 24x7 Banking facilities to its customers on a self-service basis which include: All ATM Services including Cash Withdrawal, Balance Inquiry, Mini Statement, Pin Change, Funds Transfer, Income Tax Payment, Cheque Status Inquiry, SMS Registration, Stop Payment request etc through ATM by the Bank’s own customers as well as other Bank Customers. Deposit of Cheques and Drafts through the Cheque Deposit Machine through which acknowledgement for deposit and copy of cheque will be available to the customer. Internet Banking Kiosk for undertaking Internet Banking transactions in the E-Lobby.

� Implemented e-tendering and reverse auction process. � Implemented Intra Bank Mobile Payment Service with NPCI which facilitates instant Funds

Transfer across other Banks. � Implemented SMS alerts, in compliance of RBI guidelines with respect to putting the system of

online alerts for all types of transactions irrespective of the amount, involving usage of Debit cards at various channels.

CSR INITIATIVES

� As a part of its Corporate Social Responsibility, the Bank has set up a Trust in the name of ‘OBC Rural Development Trust’ on 09.12.2005 for setting up of Rural Self Employment Training Institutes (RSETIs). The Trust has set up Institutes in five Districts, viz., Jaipur, Sriganganagar, Ferozepur ,Dehradun & Palwal. Since inception, a total of 753 training programmes have been conducted benefiting 25848 candidates.

� The Bank has opened 4 Financial Literacy & Credit Counselling (FLCC) Centres in Karnal and

Palwal districts of Haryana, Sriganganagar in Rajasthan & Ferozpur in Punjab. A total of 13418 persons were counselled in these FLCCs, out of which 91 cases were referred for debt restructuring.

� A Project for extending social welfare schemes such as NREGA, Pension, etc. has been

launched in 6 Districts viz. Sriganganagar & Hanumangarh in Rajasthan, Amritsar, Gurdaspur and Muktsar in Punjab and Jind in Haryana. A total number of 2,75,766 smart cards have been issued to the beneficiaries in these 6 districts.



FINANCIAL INCLUSION

� Total number of NO FRILLS Accounts 21,35,299 as on 31-03-2012 with an outstanding balance of Rs. 427.29 crore .

� 569 villages have been allotted to the Bank with population of more than 2000, all of them (492 Villages through BC Model & 23 Villages through Branch model and 54 through Mobile Branch Model) have been covered.

� 3,35,038 Households have been enrolled. 1,59,207 Biometric Cards have been activated till 31-03-2012 and 3,02,289 transactions made.

PRIORITY SECTOR

� PS Advances grew by 13.68% to Rs.40,527 Crore. Agri Adv. Rs.15,411/- crore. Total No. of KCCs 4,22,611 as on 31-3-12 with an amt. of Rs.8756 Crore.

MEDIUM TERM BUSINESS PLAN FOR 2010-13

� Attaining business mix of ` 4,00,000 crores by 2013. � Opening 500 new branches in the next three years � Increase CASA level to 30% of total deposits � Increasing Customer base to 29.40 million by 2013 � Increasing lending to direct agriculture to 13.50% of ANBC by 2013 � Stepping up Provision Coverage Ratio to 90%.

IMPORTANT POINTS FROM BANK'S CIRCULARS (Last 12 Months) 1. RTGS/ NEFT Charges (cir CS&P/10/12-13/118 dt 25-5-12)

Particular Value Band Charges per txn Rs. 2 Lac to 5 Lac Rs.25/-

RTGS Above Rs.5 lac Rs.50/- upto Rs.1 lac Free (NIL) Above Rs.1.00 Lac to Rs.2.00 Lac Rs.10/- NEFT

Above Rs.2.00 Lac Rs.25

2. Anywhere Branch Banking (ABB) Charges) (cir no. HO/CS&P/10/12-13/118 dt. 25-5-12)

Facility Amount Charges

For savings Bank A/cs Free

For C/A, OD and CC A/cs up to Rs Rs.50000/-

Free

(For Cash Withdrawal per day only)

(Max ceilling limit amt. 1.00 lac/ day/ customer)

Note - withdrawal beyond Rs.1 lac at non parent branch is allowed with prior approval of competent authority)

For C/A, OD and CC A/Cs above Rs.50000 to 100000/-

Rs.1.00 per thousand (minimum Rs.50/- per txn & maximum Rs.10000)

cash withdrawal by chq to 3rd paty at non base bo in SB and CA ACs only

Maximum Amt. Rs.25000/- only (the 3rd person should give ID and

Address proof & Contact No.)

Free

For savings Bank A/cs Free

For C/A, OD and CC A/cs Free

(for Cash Deposits per day only) (Max. Permissible Amt.- No limit. A customer can deposit any amt in his/her ac at any other branch of the bank)

For other ACs (PD/Loan/NPA/PB etc) Free

Branches located within local clearing area

Free

Transfer of Funds (Non-cash txns. only)

Outside local clearing area Upto to Rs. 2 lakhs above Rs. 2 lakhs to Rs. 5 lakhs above Rs.5.00 lakhs

Rs. 5/- per Txn Rs. 25/- per Txn. Rs. 50/- per Txn.

# In case total transaction amount exceeds Rs 50000/- charges will be levied on full amount as per the above



3. It has been decided that prior approval of the Government (FIPB) would be required only for FDI component and Government approval would not be required for investment by registered FIIs in commodity exchanges. Further, under the extant FDI policy, `leasing and finance’ is one of the 18 NBFC activities wherein FDI up to 100 per cent is permitted under automatic route, subject to minimum capitalisation norms. It is hereby clarified that FDI is permitted only in `financial leases’ (financial leasing activity) and not in `operating leases’ (operating leasing activity) (cir no. IBD/28/12-13/102 dt 12-05-12)

4. With a view to further liberalizing the documentation requirements, the limit for foreign exchange remittance for miscellaneous purposes without documentation formalities, has been raised from USD 5000 to USD 25000 with immediate effect. (cir IBD/ 24 /12-13/ 89 dt. 7-5-12)

5. In view of the difficulties faced in complying Government guidelines, Credit Risk Management Committee in its 67th meeting held on 16.3.2012 reconsidered the policy and has approved that bank may continue to finance against the warehouse receipts issued by the warehouses of Central / State warehouse / Warehouses of collateral Managers and Private warehouses approved by the Bank, without insisting WDRA registration and obtaining negotiable warehouse receipt (cir RD&PS: 2: 2012-13: 24 dt 9-4-12)

6. For various Forms (DA1, DA2, and DA3 for bank deposits, Forms SC1, SC2, and SC3 for Articles left in safe Custody, Forms SL1, SL2, and SL3, for Safety Lockers) prescribed under Banking Companies Nomination Rules, 1985 only thumb-impression(s) shall be attested by two witnesses. Signatures of the account holders need not be attested by witnesses. (cir CSP/71/11-12/912 31-3-12)

7. Service tax on forex transactions (IBD/126 /11-12/905 dt 28-03-12) SN Value Of Foreign exchange (In

INR per transaction)

Revised service Tax Rate w.e.f. 01/04/12

1. Up to Rs. 1,00,000/- 0.12% of the amount of currency, subject to minimum of

Rs 30/-

2. From Rs 1,00,001/- to Rs.

10,00,000/-

Rs. 120+ 0.06% of the amount of currency exceeding Rs

1,00,000/-

3. Above Rs. 10,00,000/- Rs. 600+ 0.012% of the amount of currency exceeding Rs

10,00,000/-, subject to maximum of Rs 6,000/-

8. The effective service tax rate including of education cess and secondary highereducation cess rate will be revised from 10.30% to 12.36% w.e.f. 01.04.2012. (cir ACT/36/11-12/902 26-3-12)

9. Considering the requirement of the customers who approach the branches for combined statement due to above mentioned reasons and in order, to ensure prompt and fast customer service by the branches, the combined statement menu option (CPSPAC) has been enabled for all Finacle users. The said menu has been enabled w.e.f. 23.02.2012 onwards in DRS Finacle. (cir DIT 26/11-12/878/ dt 20-3-12)

10. Valuation policy of bank (cir no. REC 21/11-12/865 13-03-2012) Particulars Latest Guidelines for Valuation

Frequency

of

valuation

Property mortgaged to the Bank shall be revalued once in two years in respect of

the loan amount sanctioned as under: Up to Rs 10.00 Lacs by the Branch

Incumbentb) Over Rs 10 Lacs by the valuer(s) on empanelment

Valuation

by two

valuers

For loans/ limits beyond Rs.10.00 Lac, where the value of the mortgaged property

is anticipated at Rs 25.00 Crore and above at all centers i.e. rural / semi-urban/

Urban /Metro, the Bank should obtain minimum two Independent Valuation Reports

for properties valued at Rs.25 Crore and above.

11. No penalty to be charged for premature withdrawal of new fresh Term Deposits of maturity upto 180 days irrespective of the size of Deposits (cir no.C&SP/67-11-12/859 12-03-2012)

12. It has been decided to accept Non Resident Term Deposit (Both NRE-INR and NRO) in line with domestic term deposits for a period in number of days (Instead of quarter) provided the deposit remains with the bank for the minimum/ maximum period prescribed by the RBI/Bank. (cir No.IBD/ 112/11-12/847 dt 5-3-12)



13. “the requirement of Form 15 CA and 15 CB is in respect of any sum chargeable to tax in India. The purpose is to collect taxes at the stage when the remittances are made. In the case of pure imports there is no tax collection involved. In view of this, the requirement of 15 CA and 15 CB in respect of remittance for pure imports i.e. material/ goods (physical) is not required at the time of remittance.” (cir no.IBD/111/2011-12/841 dt 28-2-12)

14. Oriental Bank Tax Saving Scheme, which is for a period of 5 Years will carry interest rate applicable on Term deposits for 5 years plus 0.50% i.e. (For General Public 9.25%+0.50%= 9.75%, For Senior Citizen 9.25%+0.50%+0.50%= 10.25% & For Staff & Ex-staff 9.25%+0.50%+1.00%=10.75%Including all benefits of higher rate) (cir CS&P/65/2011-12/832 dt 02/03/2012)

15. All loan applications for MSME up to a credit limit of ` 25,000/- should be disposed of within 2 weeks and those up to ` 5 lakh within 4 weeks provided the loan applications are complete in all respects and accompanied by a 'check list'. (cir no. RD &PS:71:2011-12: 790 31.01.2012)

16. The name of the office of KVIC has been changed from Commissioner for KVI to Khadi and Village Industries Commission. (cir RD &PS: 70 :2011-12:786 31.01.2012)

17. Ensuring meticulous compliance of LTV ratio, we modified the permissible component of finance as under: Hence forth stamp duty, registration expenses & Insurance premium should not be included in the cost of housing property to be financed. (cir Mktg. & Retail:58:2011-12:782 Date:07.02.2012)

18. RBI vide its circular no. RPCD.CO.Plan.BC.43/04.09.01/2011-12 dated 19.12.2011 has clarified that “ as credit under the dairy segment (including procurement, storage, processing, collection, transportation, etc.) primarily benefits small/marginal farmers and tiny units , credit for all activities which contribute to the development of dairy business would be treated as indirect finance to agriculture under priority sector. (cir RD&PS: 60 : 2011-12 :696 24.12.2011)

19. Implementation of the Damodaran Committee Report on Customer Services -(A) SHG members should not be forced to take insurance products of the Bank (B) Multiplicity of loans to the same borrower through MFIs be avoided as the same results in poor recovery from SHGs. (C) Loans to SHGs should be provided in branches, keeping in view the business requirement of the SHG rather than depending solely on the repayment made by the SHGs. (cir RD&PS/ 57 /2011-12/666 Dt 17.12.2011)

20. Banks may consider collecting account payee cheques drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are co-operative credit societies, if the payees of such cheques are the constituents of such co-operative credit societies. Attention is drawn to our Circular No. HO/CS&P/16/2011-12/239 dated 20.06.2011 containing these guidelines which are the same. (cir no. CS&P/ 50 /2011-12/588 dt 21-11-11)

21. With effect from April 1, 2012, banks should not make payment of cheques /drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument. (cir CS&P/51/2011-12/589 dt 17.11.2011)

22. In the light of RBI’s communication, Branches are advised/instructed to invite at least one MSME Customer in the monthly meeting of the Customer Service Committee.(cir CS&P/48/2011-12/ 582 dt 15-11-2011)

23. In order to address the regulatory concerns that have arisen in this context, RBI has instructed banks to ensure that demand drafts of Rs. 20,000/- and above are issued invariably with account payee crossing. Besides our guidelines in vogue, in the light of RBI’s communication, all Branches must ensure that all demand drafts of Rs.20,000/- and above are issued invariably with account payee crossing (cir Circular No. HO/CS&P/47/2011-12/576 Dated 14.11.2011)

24. The branches should ensure that declaration in Form 15G & 15H received from the customers is filed with the respective Commissioner of Income Tax on or before 7th of the following month in which declaration is received from the customer. (Cir ACT/21/2011-12/490 12th October, 2011)

25. The mandated norms applicable to various categories of borrowers under different Govt. Sponsored Schemes are as under: (Cir No. 41 /2011-12/488 Date: 08.10.2011)



26. ECGC Ltd. has renewed our ECIB WTPC (Policy No.5027) and ECIB WT-PS (Policy No.128) for

the period 01.07.2011 to 30.06.2012. Some of the salient features of the renewed polices are given : A. ECIB (WT-Packing Credit) premium is payable on a monthly basis at the rate of 6 paisa per Rs.100/- per month on the average daily product which is borne by the customer. B. ECIB (WT-Post Shipment) premium is payable by the bank on a monthly basis at the rate of 6.5 paisa per Rs.100/- per month on the average daily product. (cir IBD/ 64 /11-12/ 483 Date: 04.10.2011)

27. Details of the charges to be levied from customers w.e.f 01.10.2010 Card Type Charges from customers

Ist Year 2nd year onwards ATM Card Free of cost Rs.100/- + Service Tax ATM cum Debit Card Free of cost Rs.100/- + Service Tax

28. As per the Bank’s Loan Policy, stock audit is to be got conducted once in a year in case of

borrowers enjoying fund based working capital (including DA LC limit) facilities of Rs.2.00 crore and above. In case of restructured / NPA accounts, the prescribed amount of limit is Rs.1.00 crore and above. Further, Stock Audit of restructured accounts be conducted once in every six months. (cir CAD/ 67/2011-12/477 October 11, 2011)

29. When banks undertake outright purchase of loan assets from banks/ financial institutions to be classified under priority sector, they must report the amount actually disbursed to end priority sector borrowers and not the premium embedded amount paid to the sellers. These type of account should be opened in finacle under Scheme Code TL710 (Non EI Type) maximum Loan amt. 1000 Crore and Maximum Period 120 Months (cir HO/RD&PS/ 37/2011-12/ 464 Date: 28.09.2011).

30. In all credit proposals relating to Construction Contractors, compliance with Accounting Standard (AS) – 10 regarding valuation of stock/ receivables must be incorporated in the Note. (cir no. CAD/59/2011-12/461 September 23, 2011)

31. E Tax - “Tax Transaction Limits” for both Direct Taxes and Indirect Taxes for Retail Internet Banking customer is Rs.10 lacs. Per day (cir no. HO/DIT/ 21 /2010-2011/ 656 dt. 04.01.2011)

32. Banks must disclose 'all in cost' inclusive of all such charges involved in processing / sanction of loan application in a transparent manner to enable the customer to compare the rates / charges with other sources of finance (cir no. HO / RMD/ 35 /2010-11/ 659 dt 06.01.2011)

33. Advances granted to retail traders dealing in essential commodities (fair price shops), consumer co-operative stores; and advances granted to private retail traders with credit limits not exceeding Rs. 20 lakh) would be part of the Small (Service) Enterprises. (Cir.No.HO:RD&PS:108:2010-11:679 dt.15.01.2011.

34. All the accounts whether Retail traders or Wholesale traders shall be conclusively classified as service sector & shall come under Micro and Small Enterprises sector within the priority sector provided they satisfy the definition of Micro and Small (Service) Enterprises in respect of investment in equipment. However, traders engaged in providing services where amount of investment in equipment is more than Rs. 2.00 crores & upto Rs. 5.00 crores shall be classified as Medium Enterprises under Non Priority Sector. . (Cir.No.HO:RD&PS:108:2010-11:679 dt.15.01.2011.

35. CONTINUATION OF OPERATIONS IN ACCOUNT(S) WHICH HAVE SLIPPED INTO NPA - (a) The

current / cash credit account or any account wherein the borrower is allowed cheque book facility should continue to be operational, even after the account is classified as NPA. (b) The exposure to the borrower be restricted to the amount outstanding on the date of



classification as NPA and an undertaking must be obtained from the borrower wherein, amongst others, it should be agreed upon specifically that the Bank shall retain a minimum of 5-10% or more of every credit into the account for appropriation towards regularization of the account. The borrower should thereafter be permitted to operate the account in respect of the balance amount credited. This arrangement would continue till the account is upgraded or restructuring exercise in full is considered. (cir no.REC:11 /2010-11/705 dt January 19, 2011)

36. In no case , the counterfeit note detected should be returned to the tenderer or destroyed by the branches (Circular No.HO/SER/4:2010-11:717 dated 29.01.2011)

37. In all eligible cases, the external credit rating be got done within 90 days from the date of sanction failing which penal interest of 1% should be stipulated.(HO/CAD/104/2010-11/742 2-2-11)

38. Charges for cheque leaves for MICR/ Multicity cheques (wef 01-04-2011) [ For other than individuals - Rs. 3.00 per leaf for all branches] [For individuals - Rs. 2.00 per leaf for all branches] 39. Charges for Outstation Cheque Collection not covered by Speed Clearing (wef 01-04-11)

(cir no. HO/CS&P/70/2010-11/777 dated 21-02- 2011 ) Value

Charge from SB a/c

customers

Charge from other than SB

customers

Upto and including Rs. 5,000/- 25 25 Above Rs. 5,000/- and upto and including Rs.

10,000/- 50 50

Above Rs. 10,000/- and upto and including Rs. 1,00,000/-

100 125

Above Rs. 1,00,000/- 150 200 40. Charges for Cheque Collection under Speed Clearing (by collecting banks from customers)

(wef 01-04-11) (cir no. HO/CS&P/70/2010-11/777 dt

21-02- 2011 ) Value

charge from Savings a/c customers

charge from other than SB customers

Upto and including Rs. 1,00,000/- Nil 50

Above Rs.1,00,000/- 100 150 41. From April 1,2008 onwards, all companies and persons (other than a company) who are

required to get their accounts audited are required to pay tax electronically. (HO/GBC/90/2010-11/842 Date 16-03-2011)

42. For fresh/ enhanced credit limits up to Rs.100.00 lacs sanctioned to Micro & Small Enterprises, no collateral security be insisted upon, provided the project is viable and all such accounts are compulsorily covered under CGTSME Scheme that the entrepreneurs who are not in a position to offer collateral security are not deprived of Bank finance. (Cir.No.HO:RD&PS:128:2010-11:828 dt 14-03-2011)

43. Government of India has decided to call in from circulation the coins of 25 paise & below in circulation , issued from time to time, with effect from June 30,2011. (Circular No.HO/SER/5 :2010-11:810 dt 07-03-11)

44. 'Small Account (No frill or Basic Banking AC)' means a savings account in a banking company where- (i) the aggregate of all credits in a financial year does not exceed rupees one lakh; (ii) the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and (iii) the balance at any point of time does not exceed rupees fifty thousand. (Circular No.HO/CS&P/ 73 /2010-11/755 04-02-2011)

45. The revised cut-off limits for identification of the Large Borrowal Accounts which have to be subjected to Loan Review Mechanism with effect from 01.04.2011 will now be as follows.

a) All ‘fresh’ sanctions of Rs.3.00 Cr. and above.



b) Accounts with ‘existing’ exposures of Rs.3.00 Cr & above in case where Internal Credit Risk Rating is:

i) LC-6 & below ii)SME-6 & below iii) NBFC-6 & below iv)SBS-6 & below. c) In all other cases accounts with ‘existing’ exposures of Rs.5.00 Cr. & above (Circular No.

HO/CMC/LRM/1/2011-12/004) 46. The Speed Clearing was initially enabled for cheques issued by account holders with

transaction codes 10 (savings bank), 11 (current account) and 13 (cash credit). RBI vide Notification No. DPSS.CO.CHD.No. 1514/ 03.01.03 / 2010-2011 dt. 4.01.2011 conveyed its decision to extend the scope of Speed Clearing to cover all transaction codes, other than those relating to government cheques w.e.f. 01.02.2011.

47. Valuation Policy of the Banl - [Frequency of valuation - Property mortgaged to the Bank shall be revalued once in two years in respect of the loan amount sanctioned as under - (a) Up to Rs 10.00 Lacs by the Branch Incumbent (b) Over Rs 10 Lacs by the valuer(s) on empanelment For loans/ limits beyond Rs.10.00 Lac and the value of the property is anticipated at Rs25.00 Crore and above at all centers i.e. rural / semi-urban/ Urban /Metro , the Bank should obtain minimum two Independent Valuation Reports for properties valued at Rs.25 crore and above

48. The RBI vide its Notification No. DBOD. Dir. BC. 89 / 13.03.00 /2010-11 Dated 3.5.2011 has directed that , the rate of interest on domestic and ordinary Non-Resident savings deposits as well as savings deposits under Non-Resident (External) Accounts Scheme shall be 4.0 per cent per annum with immediate effect. [Circular No.HO/CS&P/ 7 /2011-12/ 91 dt 04-05-2011]

49. The Reserve Bank of India vide their circular letter no. RBI/2010-11/517/RPCD.Co. Plan. BC. 69/ 04.09.01/2010-11 dated 09.05.2011 has communicated that with effect from 01st April 2011. Home Loans upto Rs. 25.00 lacs irrespective of location, to individuals for purchase/construction of dwelling unit per family, excluding the loans granted to staff members of our bank, are eligible for classification under Priority Sector [Circular No. HO:Marketing & Retail/04 /2011-12/112 dt 16.05.2011]

50. CLASSIFICATION CRITERIA OF BRANCHES

Sl. No.

Category of branch

Business Criteria Incumbency

a Small Branches Average aggregate deposits & advances below Rs. 5.00 crore during the last 2 years Scale - I

b Medium Branches

Average aggregate deposit & advances of Rs.5.00 crore and above but below Rs.25.00 crore during the last 2 years Scale - II

c Large Branches Average aggregate deposit & advances of Rs.25.00 crore and above but below Rs.75.00 crore during the last 2 years. Scale – III

d Very Large Branches

Average aggregate deposits & advances of Rs.75.00 crore and above but below Rs.225.00 crore during the last 2 years with minimum average advances of Rs.15.00 crores in the last year.

Scale – IV

e Exceptionally Large Branches

Average aggregate deposits & advances of Rs.225.00 crore and above but below Rs.2,000.00 crore during the last 2 years with minimum average advances of Rs.50.00 crores in the last year.

Scale – V

f Exceptionally Very Large Branches

Average aggregate deposits & advances of Rs.2,000.00 crore and above during the last 2 years with minimum average advances of Rs.100.00 crores in the last year.

Scale – VI



CURRENT TRENDS IN FINANCIAL SECTOR / GEN. AWARENESS 1. Invisible export means export of— (A) Services (Answer)

(B) Prohibited goods (C) Unrecorded goods (D) Goods through smuggling 2. In the law of demand, the statement ‘other things remain constant’ means— (A) Income of consumer should not change (B) Prices of other goods should not change (C) Taste of consumer should not change (D) All of the above (Only demand varies with respect to variation in price) (Answer) 3. A firm is in equilibrium when its— (A) Marginal cost equals the marginal revenue (Answer) (B) Total cost is minimum (C) Total revenue is maximum (D) Average revenue and marginal revenue are equal 4. The World Trade Organisation (WTO) was earlier known as— (A) GATT (Answer) (B) UNICEF (C) UNCTAD (D) FAO 5. The difference between visible exports and visible imports is defined as— (A) Balance of trade (Answer)

(B) Balance of payment (C) Balanced terms of trade (D) Coins from trade 6. The outcome of devaluation of currency is— (A) Increased export and improvement in balance of payment (Answer)

(B) Increased export and foreign reserve deficiency (C) Increased import and improvement in balance of payment (D) Increased export and import 7. In India, ‘Yellow Revolution’ is associated with— (A) Production of paddy (B) Production of oilseeds (Answer) (C) Production of tea (D) Production of flower 8. The common currency which has been introduced among members of European Economic Community (EEC) is known as— (A) Euro pound (B) Euro (Answer)

(C) Euro Dollar (D) None of these 9. Which of the following organization / agencies recently issued guidelines for fair practices code for non-bankingfinance companies ? (A) SEBI (B) NABARD (C) Central Board of Direct Taxes (D) Reserve Bank of India (Answer)

10. As per the new guidelines issued by the SEBI, mutual

funds are now allowed to invest in which of the following

sectors ?

(A) Service sector

(B) Real estate (Answer)

(C) Manufacturing sector

(D) IT sector

(E) None of these

11. When decimal method was introduced in the Indian

monetary system ?

(A) 1950

(B) 1954

(C) 1957(Answer)

(D) 1960

12. Which authority decides about the states’ share in cen

taxes ?

(A) Finance commission(Answer)

(B) Planning commission

(C) Election commission

(D) Finance ministry

13. A larger part of the fiscal deficit in the union budgets is filled by— (A) Tax revenue (B) Domestic borrowing(Answer)

(C) Foreign borrowing (D) Printing paper currency 14. ‘BSE Sensex’ is an index to measure ups and downs inthe share market. The number of companies covered undethe index are— (A) 30(Answer)

(B) 50 (C) 100 (D) 150

15. ‘Gresham’s law’ in economics relates to— (A) Supply and demand (B) Circulation of currency(Answer) (C) Consumption of supply (D) Distribution of goods and services 16. Which one of the following sets of sources of revenue belongs to the union government alone ? (A) Gift tax, Holding tax (B) Sales tax, Income tax (C) Custom duties, Corporation tax(Answer)

(D) Wealth tax, Land revenue 17. Under the National Rural Employment Guarantee Scheme, number of days for which employment guaranteeduring one year has been given is— (A) 90 days (B) 100 days (Answer)

(C) 120 days (D) 180 da



18. A mixed economy works primarily through the— (A) Market mechanism (B) Central allocative machinery (C) Market mechanism regulated by government policy

(D) Market mechanism guided by government participationand planning

19. Free trade policy refers to a policy where there is—(A) Absence of tariff(Answer) (B) Restriction on the movement of goods (C) Existence of anti-dumping policy (D) Encouragement for balanced growth 20. When a large number of investors in a country transfertheir investments elsewhere because of disturbed economconditions, it is called— (A) Transfer of capital (B) Escape of capital (C) Outflow of capital (D) Flight of capital(Answer) 21. Golden Handshake Scheme is associated with— (A) Inviting foreign companies (B) Private investment in public enterprises (C) Establishing joint-enterprises (D) Voluntary retirement(Answer) 22. According to the S.K. Sharma panel, which of the following documents should be revalidated after a certain period so that it cannot be misused by the people— (A) PAN Card(Answer) (B) Credit Card (C) Driving Licence (D) ID Cards issued by the election commission (E) None of these 23. Inflation occurs when aggregate supply is— (A) More than aggregate demand (B) Less than aggregate demand(Answer) (C) Equal to aggregate demand (D) None of the above 24. The mid-day meal scheme is launched by the Union Ministry of— (A) Home Affairs (B) Social Welfare (C) Human Resource Development(Answer) (D) Rural Development (E) None of these 25. The subject matter of the recently published report of Kelkar Committee is— (A) Agricultural debt (B) Share market scam (C) Tax system of India(Answer) (D) Foreign trade 26.‘CAPART’ is engaged primarily with which one of the following in India ? (A) e-governance (B) Share-market (C) Rural development(Answer) (D) Pollution control 27. At present the National commission on population is under— (A) Planning Commission (B) Ministry of Human Resource Development (C) Cabinet Secretariat (D) Ministry of Health(Answer)

28. Decline in the price of goods and services is technicallknown as— (A) Deflation(Answer) (B) Inflation (C) Negative growth (D) Discount yield 29. ‘Blue Revolution’ is related to— (A) Space Research (B) Fisheries(Answer)

(C) Drinking Water (D) Poultry 30. Index “Residex” is associated with— (A) Share Prices (B) Mutual Fund Prices (C) Price Inflation Index (D) Land Prices(Answer)

31. Ethanol mixed petrol is being sold in various states w.eJanuary 1, 2003. The percentage of ethanol in petrol is—(A) 10% (B) 7% (C) 6% (D) 5·5% (E) 5%(Answer)

32. Which one of the following is the correct sequence in thdecreasing order of contribution of different sectors to the Gross Domestic Product of India ? (A) Services–Industry–Agriculture(Answer)

(B) Services–Agriculture–Industry (C) Industry–Services–Agriculture (D) Industry–Agriculture–Services 33. How many models of ‘Nano’ car are being made availainitially ? (A) 04 (B) 03(Answer)

(C) 02 (D) 01 34. Which of the following countries has the largest stock oforeign exchange reserves in the world ? (A) USA (B) China(Answer) (C) Japan (D) India (E) None of these 35. Which one of the following is not an objective of fiscal policy of Indian government ? (A) Full employment (B) Price stability (C) Regulation of inter-state trade(Answer) (D) Equitable distribution of wealth and income 36. Who formulates the monetary policy in India ? (A) SEBI (B) RBI(Answer) (C) Finance Ministry (D) Planning Commission



The highlights of the new trade policy are as follows: The Union Government of India on 5 June 2012 announced a new trade policyaimed at achieving 20 per cent increase in exports to 360 billion dollar in the fiscal year 2012-13. India's exports rew by 21 per cent and touched 303.7 billion dollar in 2011-12, while the trade deficit during the same period expanded to 185 billion dollar. • Government set the export target for 2012-13 at 20 per cent • 2 per cent interest subsidy scheme extended till March 2013 • Government to announce new guidelines to promote SEZs • Incentives for exports from north-eastern states • Shipments from Delhi, Mumbai through post, courier or e-commerce to get export benefits • Foreign Trade Policy document to be more user friendly • 13 shows abroad to promote Brand India • Single revolving bank guarantee for different export deals • Seven new markets added to Focus Market Scheme • Market linked focus product scheme extended till March'13 for apparel export to USA and EU __________________________________________________________________________________

According to the data released by the Reserve Bank of India (RBI) on 2 June 2012, India’s foreign exchange reserve plummeted by 1.74 billion dollar to 290 billion dollar for the week ended 25 May 2012. The RBI data displayed a sharp decline in the country’s forex reserves for the fourth consecutive week. The forex reserves had dropped by 1.80 billion dollar, 1.37 billion dollar and 2.18 billion dollar, respectively, in the previous three weeks.

The drop in forex reserve is largely due to sale of dollar by the central bank to defend consistently falling rupee. The Indian rupee plunged to a record low in recent weeks and stood 55.54 against a dollar on 1 June 2012. The rupee fall for the nine consecutive weeks is the longest losing streak since the 2008 economic crisis. RBI had reportedly sold dollars to arrest the further fall of Indian rupee.

The value of gold reserves of the country for the week ended 25 May 2012 remained unmoved at 26.61 billion dollar. ____________________________________________________________________________________

According to data released by Ministry of Statistics of India on 1 June 2012, Bihar emerged as the state with highest economic growth rate in the country. The state which until recently was synonymous with poverty, recorded an impressive 13.1 per cent growth in 2011-12. Bihar topped the list for second consecutive year. The state’s economy even surpassed the Punjab on the back of four years of double-digit growth.

The state was closely followed by Delhi and Puducherry. Chhattisgadh and Goa were the other two states in the list of top five states. Tamil Nadu and Gujarat, the two highly industrialized states registered the growth of 9.4 per cent and 9.1 per cent respectively in the fiscal year 2011-12.

Punjab, leading food grain producing state of India, Andhra Pradesh and Karnataka, both the heart of the IT sector of the country, and Uttar Pradesh, the country's most populous state, registered growth of 6.5% in 2011-12, lower than India's GDP growth.

According to data released by the Commerce Ministry in New Delhi on 1 June 2012 India's exports registered a growth of 3.2 per cent on year-on-year basis to 24.4 billion dollar in April 2012. Exports figure in April 2011 stood at 23.6 billion dollar. The slumping export figures are largely attributed to the slowing global demand of goods.

Imports during the same period witnessed a growth of 3.8 per cent to 37.9 billion dollar, creating a trade deficit of 13.4 billion dollar. In April 2012, the country's oil imports grew about 7 per cent to 13.9 billion dollar compared to the same period in 2011. Non-oil imports expanded 2 per cent on year-on-year basis to 24 billion dollar during April the first month of fiscal year 2012-13.



On an annual basis Indian exports expanded 21 per cent to 303.7 billion dollar in the fiscal year 2011-12. The imports during the same period grew 32.2 per cent to 488.6 billion dollar. The trade deficit for the full fiscal year was 184.9 billion dollar.

A higher trade deficit will have an adverse impact over already ailing Indian economy. The broadening trade deficit could worsen the current account balance of the country and further weaken the rupee.

The gross domestic product (GDP) data released by the Central Statistical Organisation (CSO), had capped the GDP growth rate of India in 2011-12 at 6.5 per cent, as against the earlier estimate of 6.9 per cent.

According to the recent data released by the Central Statistical Organisation India’s economic growth rate plunged to 5.3 per cent in the January-March quarter of 2011-12. The figure is lowest in the past 9 years. The Gross domestic product (GDP) growth during the corresponding period of 2010-11 was 9.2 per cent. The depressing figure of economic growth is largely attributed to poor performance of the manufacturing and agriculture sectors.

The overall GDP in 2011-12 also came down to 6.5 per cent from 8.4 per cent in the 2010-11.

The manufacturing sector showed a sharply contracted growth during the quarter ending 31 March 2012 as the growth figure came down to 0.3 per cent from 7.3 per cent during the same period of 2010-11.

Agriculture sector also grew in similar fashion and witnessed a growth of just 1.7 per cent during the last quarter, compared to 7.5 per cent during the same period of 2010-11.

The services sector registered highest growth rate, and remained unchanged at 10 per cent in the fourth quarter ended March 2012.

Goa topped the list of the states with highest per capita income in the country with a total per capita income of 192652 rupees.

Delhi with a total per capita income of 1.75 lakh rupees in 2011-12 secured second spot in the list, followed by Haryana with per capita income of 109227 rupees.

The national average was estimated at 38005 rupees in 2011-12 against 35993 rupees in 2010-11. The estimates WERE prepared as per methodology prescribed by the Central Statistical Organisation on the basis of provisional data provided by it and other government sources.

The Reserve Bank of India on 2 May 2012 published guidelines for implementation of the new global capital adequacy norms, called Basel III, by March 2018. Indian banks will have to maintain Tier I capital, or core capital, of at least 7 per cent of their risk weighted assets on an ongoing basis. The objective is to strengthen risk management mechanism. As per the guidelines specified by the central bank, commercial banks will have to maintain their total capital adequacy ratio at 9 percent, higher than the minimum recommended requirement of 8 percent under the Basel III norms.

It was decided that scheduled commercial banks (excluding LABs and RRBs) operating in India will have to maintain a minimum total capital (MTC) of 9 percent of total risk weighted assets (RWAs) as against a MTC of 8 percent of RWAs as prescribed in Basel III rules text of the BCBS (Basel Committee on Banking Supervision).

Also, banks were directed to keep a capital conservation buffer of 2.50 percent. It essentially means that banks will have to set aside more capital as buffer to avoid a 2008-like crisis again. On failing to set aside the mentioned capital, the banks will not be able to pay dividend and bonus. The RBI tightened the norms to monitor banks’ investments, inter-connectedness and cross-holdings in the financial sector services which are beyond the active regulatory purview of the central bank.



Basel III requires banks to have a higher share of core capital – which is equity and reserves. Banks will thus require additional Rs 1-1.5 lakh crore over the next six years for doing the same level of business.

The implementation of the capital adequacy guidelines based on the Basel III capital regulations will begin on 1 January 2013. Banks are to attain a minimum Tier I capital ratio of 4.5 per cent by January 2013, 5.5 per cent by January 2014, and 6 per cent by January 2015. The new capital regulations will be fully implemented by 31 March 2018.

Under the existing Basel II framework, banks are required to maintain Tier I capital of at least 6 per cent of their risk weighted assets. Under Basel III, Tier I capital will predominantly consist of common equity, defined as paid-up equity capital, share premium, surpluses arising from sale of assets, other disclosed free reserves, and balance in the profit and loss account at the end of the financial year.

According to the figures released by Controller General of Accounts (CGA) on 31 May 2012, India’s fiscal deficit eased to 5.7 per cent of GDP, lower than 5.9 per cent projected in the revised estimates in the Budget.

Fiscal deficit, the difference between the government's total receipts and expenditure, capped at 5.09 trillion rupees in 2011-12. While the tax revenue receipts curbed to 6.31 trillion rupees against the projected figure of 6.42 trillion rupees, government’s expenditure both non-plan expenditure and plan expenditure also went down at 8.84 trillion rupees and 4.13 trillion rupees respectively. The revenue deficit was at 4.3% of GDP.

The government is working hard to curtail the broadening fiscal deficit and aiming to bring it down to 5.1 per cent in the fiscal year 2012-13. In order to meet its fiscal deficit target the finance ministry is eyeing to cut the subsidy bill to below 2 per cent of GDP in the fiscal year 2012-13and 1.75 per cent in the subsequent years. The slowing economy is making it difficult for the government to achieve its fiscal deficit target.

The gross domestic product (GDP) data released by the Central Statistical Organisation (CSO), had capped the GDP growth rate of India in 2011-12 at 6.5 per cent, as against the earlier estimate of 6.9 per cent. ___________________________________________________________________________

According to the recent data released by the Central Statistical Organisation India’s economic growth rate plunged to 5.3 per cent in the January-March quarter of 2011-12. The figure is lowest in the past 9 years. The Gross domestic product (GDP) growth during the corresponding period of 2010-11 was 9.2 per cent. The depressing figure of economic growth is largely attributed to poor performance of the manufacturing and agriculture sectors.

The overall GDP in 2011-12 also came down to 6.5 per cent from 8.4 per cent in the 2010-11.

The manufacturing sector showed a sharply contracted growth during the quarter ending 31 March 2012 as the growth figure came down to 0.3 per cent from 7.3 per cent during the same period of 2010-11.

Agriculture sector also grew in similar fashion and witnessed a growth of just 1.7 per cent during the last quarter, compared to 7.5 per cent during the same period of 2010-11.

The services sector registered highest growth rate, and remained unchanged at 10 per cent in the fourth quarter ended March 2012.

___________________________________________________________________________________

The International Monetary Fund (IMF) on 27 April 2012 lowered India’s growth projection to 6.9 per cent for 2012. The multilateral agency in January projected Indian economy to grow to by 7



per cent for 2012. The slashed growth projection is broadly attributed to the country’s poor performance on the front of economic reforms and slowing investment.

The IMF, however, maintained India’s growth estimate for 2013 at 7.3 per cent. As per the IMF, the national economy grew by 7.1 per cent last year.

The IMF’s growth projection is an indication for the government to expedite the process of economic reforms which has long been victim of the country’s internal political clutter. Many of the important reforms are still in the pipeline which needed to be approved as soon as possible. Government should make sure that it is taking adequate majors to boost up the sentiment of investors, who are increasingly getting disenchanted of the future prospects of Indian Economy.

___________________________________________________________________________________

Standard & Poor's downgraded credit rating outlook for India to negative from stable on 25 April 2012. The cut in credit rating is the reflection of India's widening fiscal and current account deficits.

The negative outlook jeopardises India's long-term rating of BBB-, the lowest investment grade rating, and sent Indian bonds, stocks and the rupee lower.

India has no sovereign global bond issues, but a downgrade would increase borrowing costs for local companies and make it harder to refinance debt, and may have a further chilling effect on foreign investor confidence in the country in general.

The Union government on 11 April 2012 made it mandatory for individuals with income above Rs 10 lakh to file their tax returns 2011-12 onwards electronically. E-filing was made compulsory for the person who is an individual, or a Hindu Undivided Family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds Rs 10 lakh for assessment year 2012-13 onwards. E-filing for such individuals was optional till 2010-11. Currently business houses with receipts of Rs 60 lakh and professionals with income of Rs 15 lakh are mandatorily required to e-file their return with digital signature. ____________________________________________________________________________________Reserve Bank of India (RBI) on 17 April 2012 instructed commercial banks to reduce their exposure to gold loan companies to 7.5% of their capital funds from the existing 10%. The directive will impact the gold loan companies such as Muthoot Finance and Manappuram Finance as they will receive less funding.

The Union Cabinet on 12 April 2012 approved a proposal to set up a Special Purpose Vehicle (SPV) for Goods and Services Tax Network (GSTN) to help facilitate the smooth introduction of the new indirect tax regime.

GSTN SPV is to be incorporated as Section 25 not-for-profit private limited company in which strategic control would be held by the Centre. It will provide IT infrastructure and services to various stakeholders including the Centre and states.

The SPV will have an equity capital of Rs 10 crore, with both the Centre and states having stakes of 24.5 per cent each. Non government institutions would hold 51 per cent equity.

Given below are the highlights of the budget 2012-13: In a bid to enhance tax collection and keeping track of high-value property transactions, the Union Budget for 2012-13 has proposed 1% tax deducted at source on any deal of property other than agriculture land. The tax is mandated to be paid if the property consideration is over Rs 50 lakh in specified urban areas and Rs 20 lakh in any other area. The transaction will be registered only after the buyer provides proof of deduction and payment of TDS. The proposal will be effective from October 1, 2012.

� Income tax exemption limit raised to Rs.2 lakh from Rs.1.80 lacs to provide relief of Rs.2,000 for all assessees; 20 per cent tax on income over Rs.10 lakh, up from Rs.8 lakh.

� Deduction of up to Rs.10,000 from interest from savings bank accounts. � Defence to get Rs.1.93 lakh crore during 2012-13.



� Service tax rate raised from 10 per cent to 12 per cent to bring in Rs.18,660 crore. � No change in corporate taxes but measures to enable them better access funds. � Withholding tax on external commercial borrowings reduced from 20 per cent to five per cent

for power, airlines, roads, bridges, affordable houses and fertiliser sectors. � National Skill Development Fund allocated Rs.1,000 crore. � Four thousand residential quarters to be constructed for paramilitary forces with an

allocation ofRs.1,185 crore. � National Population Register to be completed in two years. � Excise duty raised from 10 to 12 per cent. � Cinema industry exempted from service tax. � Branded silver jewellery fully exempt from excise duty. � Customs duty on warning systems/track upgrade equipment for railways reduced from 10 per

cent to 7.5 per cent. � Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 per cent. � Allocation of Rs.200 crore for research on climate change. � Irrigation and water resource company to be operationalised. � National mission on food processing to be started in cooperation with state governments. � Integrated Child Development Scheme to be strengthened and restructured with allocation

ofRs.15,850 crore. � Allocation of Rs.14,000 crore for rural water supply and sanitation. � Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-

13. � Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector. � Completion of highway projects 44 per cent higher than in previous fiscal. � External commercial borrowing of up to $1 billion permitted for airline sector. � External commercial borrowings permitted to low-cost housing sector. � From 2012-13, full subsidies for providing food security; in other sectors to the extent the

economy can bear this. � Hope to raise Rs.30,000 crore from disinvestments. � New equity savings scheme to provide for income tax deduction of 50 per cent for those who

invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh. � Corporate market reforms to be initiated. � Bills on micro-finance institutions, national land bank and public debt management among

those to be introduced in 2012-13. � India's inflation structural, driven largely by agricultural constraints. � Current account deficit 3.6 per cent in 2011-12; this put pressure on exchange rate. � Growth in 2012-13 estimated at 7.6 per cent; expect inflation to be lower. � Better monitoring of expenditure on government schemes. � Fiscal 2011-12 year of recovery interrupted; reality turned out to be different. � GDP growth in 2011-12 estimated at 6.9 per cent; had to battle double digit inflation for two

years. � Good news: agriculture and services continued to perform well; economy is now turning

around; recovery in core sectors. � Proposes to levy tax on all services except 17 items in the negative list from 2012-13 � Proposes to raise agricultural credit target in 2012-13 to 5.75 trillion rupees � Income Tax on income of Rs. 5 lakh to Rs10 lakh will be 20%: FM � Income Tax slabs for individuals: Rs. 2 lakh-5 lakh: 10%; Rs. 5-10 lakh: 20%; and above Rs. 10

lakh 30% � I-T deduction of 50% on investments of up to Rs.50000 in savings schemes named after Rajiv

GandhiGovt will continue to hold 51% stake in state owned companies: FMTo introduce Rajiv Gandhi equity scheme for retail investors: FM

� Exports grew by 23%, imports grew by 29% : FM



Money Market Mutual Fund (MMMFs) : In order to provide additional short-term investment revenue, the RBI encouraged and established the Money Market Mutual Funds (MMMFs) in April 1992. MMMFs are allowed to sell units to corporate and individuals. The upper limit of 50 crore investments has also been lifted. Financial institutions such as the IDBI and the UTI have set up such funds. Establishment of the DFI : The Discount and Finance House of India (DFHI) was set up in April 1988 to impart liquidity in the money market. It was set up jointly by the RBI, Public sector Banks and Financial Institutions. DFHI has played an important role in stabilizing the Indian money market.

Establishment of the CCIL : The Clearing Corporation of India limited (CCIL) was set up in April 2001. The CCIL clears all transactions in government securities, and repose reported on the Negotiated Dealing System. � MONEY MARKET It includes Call/ Notice Treasury Bills Term Money Certificate Of Deposit

Repo Commercial Bill Icd Commercial Papers

� Debt Market It includes Government Securities and Bonds. Government Security includes • Central Govt. Securities • State Govt. Securities Bonds includes • Foreign Investment Bonds • PSU Bonds • Corporate Securities

� Certificate Of Deposit (June,1989) Short term borrowings in the form of Usance Promissory Notes having a maturity of not less than 15 days upto a maximum of 1 year. Subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act) They are like bank term deposit accounts, freely negotiable instruments often referred to as Negotiable CD.

� Features Of CD Can be issued by all scheduled commercial banks except RRB’s Minimum period 15 days, Maximum period 1 year NRIs can subscribe to CDs on non-repatriable basis. Minimum amount Rs.1 lac & in multiples of Rs.1 lac Transferable by endorsement & delivery. CRR & SLR are to be maintained. CDs are to be stamped.

� Call Money Market Integral part of Indian Money Mkt., where the day-to-day surplus funds (mostly of banks) are traded. The loans are of short term duration varying from 1 to 14 days. The money that is lent for 1 day in this mkt. is known as “ Call Money ”, & if it exceeds 1 day (but less than 15 days), it is referred to as “ Notice Money ”.

� Call Money Market Features Deals in loans at call and short notices. Deals with extreme form of short term loans; 24 hours, 7-15 days maturity. Recalled on demand or shortest possible notice. Normally, collaterals are not insisted upon. In India, CMM provides facilities for inter-bank tending. Surplus suppliers of funds: UTI, SBI, LIC

� Call Money Market Banks borrow in this market for the following purpose: • To fill the gaps in funds. • To meet CRR & SLR mandatory requirements. • To meet sudden demand for funds

� Treasury Bills T-Bills are issued by Govt. of India against their short term borrowing requirements with maturities ranging between 14 to 364 days. All these are issued at a discount-to-face value. For eg: a T-Bill of Rs.100 face value issued for Rs.91.50 gets redeemed at the end of its tenure at Rs.100.

� Gilt Edged Securities The term Government securities encompass all bonds & treasury bills

issued by the Central and the State govt. These securities are normally referred to, as “gilt-edged” as repayments of principal as well as interest are totally secured by sovereign guarantee. Features These securities have a fixed coupon that is paid on specific dates on half-yearly basis. Maturity dates, from short dated (less than one year) to long dated (upto twenty years). Available in primary and secondary market. High liquidity-securities can be sold in the secondary market at prevailing rates.



Highlights of RBI credit policy 17 Apr 2012

RBI CUTS REPO RATES

RBI cuts repo rate by 50bp to 8%. Banks should pass on his cut to borrowers. This means home

loans, personal loans and corporate loans could get cheaper.

Reverse repo rate adjusts to 7%

Cash Reserve Ratio unchanged at 4.75%

RBI ON BANKING SECTOR

Banks not permitted to charge pre-payment penalty on home loans. This should allow refinancing

of existing home loans at competitive interest rates.

RBI will assess the feasibility of introducing more long term fixed rate loan products. RBI

concerned about differential in retail and bulk deposit rates

RBI asks banks to have board approved policy on liabilities

RBI ON GOLD LOAN NBFCs

Bank exposure to single gold loan NBFC capped at 7.5%.

For NBFCs also lending to the infrastructure space, additional 5 per cent exposure permitted

* Short term lending rate (repo) lowered by 0.50% to 8%

* Cash reserve ratio (CRR) retained at 4.75%

* GDP growth for 2012-13 projected at 7.3%

* March-end, 2012-13 inflation expected at 6.5%

* Bank rate cut by 0.50% to 9%

* Deposit growth pegged at 16%, credit growth at 17%

* Upside risk to fiscal deficit target of 5.1%

* Govt borrowing may decrease credit flow to pvt sector

* Liquidity conditions moving towards comfort zone

* To issue final guidelines on Basel III by May 2012

* Tightens norms for lending against gold by NBFCs

* Next mid-quarterly monetary review on June 18.

1. OBC is using Finale Version 7.0.19



SOME IMPORTANT MENUS - FINACLE

1. ACS / ACSP - Account Selection / Account Selection Print

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3. LAAPSP - Term Loan Account Statement Print

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10.INQACHQ - Inquiry of AC based on Chq No.

From DR Site - A. MISREP -CREDIT -

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opened between two dates and for a particular type of scheme (use F6 and put scheme type

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CAA, TDA, LAA etc.)

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21. USEDINVENT - Used Inventory Report

22. DRCRSUM -Debit Credit summation including cash withdrawal frm ATM

23. SUNDRYREP - Summary of all Sundry Scheme Type Account in a report



C .MISREP - IMPLREP -

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2. ATOR - Account Turnover (Schedule - II)

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E. INT-RET (MAIN MENUE)

E. MAIN MENU -

1. CLL - Look up for Security in an account (all securities attached with particular account may

be inquired viz. stock statement, book debt etc.)

2. LCDMR - Cheque dicounted between two dates report

3. TODRP - TOD Register Print

4. GI - Guarantee Enquiry with different criteria

5. BI - Inquiry on Bills on different parameters

6. INTREP - Report on Rate of Interest



DEPOSIT SCHEMES

SAVINGS BANK DEPOSIT SCHEMES – UPDATED UPTO 01/01/2012

# SCHEME SALIENT FEATURES SCHEME CODE

1. OBC Unnati Deposit Scheme

Minimum Balance Rural / Semi-Urban/Urban Metro

Without Cheque Book ` 500/- ` 1000/- With Cheque Book ` 500/- ` 1000/-

NEFT/RTGS at 50% concessional Charges No cheque book charges (Including multicity cheques) Free accidental insurance up to `50,000/- (For 1st year only) after that premium for insurance coverage will be charged @`̀̀̀5/5/5/5/----+Service Tax =Rs.6/- Prescribed monthly charges are levied on non-maintenance of Minimum Balance. Locker Rent Free for Ist Year (for new customers only) subject to availability & depositing of 3years rent in advance. ECS Dr/ Cr Free, I Banking Facility Free, Mobile & SMS Banking Facility Free

SB 219

2. Saving Bank General

Minimum Balance Rural / Semi-Urban Urban / Metro

Without Cheque Book `50/- ` 100/- With Cheque Book `100/- ` 200/-

No. of withdrawals limited to 50 per half year. 50 local cheque leaves are free in a calendar year for individuals. Prescribed monthly charges are levied on non-maintenance of Minimum Balance.

SB 201

3. Savings Bank Staff

Only for Bank’s Staff members. No Minimum Balance required to be maintained. All facilities free and no charge to be levied.

SB 202

4.

SB Pranaam Savings Bank Senior Citizen

For Senior Citizens. Minimum Balance Rural / Semi-Urban Urban / Metro

Without Cheque Book ` 20/- ` 20/- With Cheque Book ` 250/- ` 250/-

No charges for non-maintenance of minimum balance 2 Remittances aggregating to `10000/- p.m. free of charge

SB 203

5. SB Pension Account (Govt)

Only for Government Pensioners Minimum Balance Rural / Semi-Urban Urban / Metro Without Cheque Book `20/- ` 20/- With Cheque Book `250/- ` 250/-

No charges for non-maintenance of minimum balance No Service Charges for Collection / Discount of Pension Cheques 2 Remittances aggregating to `10000/- p.m. free of charge

SB 220

6. Smart Pay Salary Accounts

For salaried persons whose salary is credited in this account. Zero Balance Account. No charges for non-maintenance of minimum balance.

SB 204

7.

Oriental Salary Plus (wef 12-12-2011)

Average Quarterly Balance(minimum) `̀̀̀5000/- . For salaried persons whose salary is credited in this account. NEFT/RTGS at 50% concessional Charges No cheque book charges (Including multicity cheques) Free accidental insurance up to `50,000/- (For 1st year only) after that premium for insurance coverage will be charged @`̀̀̀4.50+Service Tax Prescribed minimum balance charges are (at present`̀̀̀ 250/- quarterly) levied on non-maintenance of Minimum Balance. ECS Dr/ Cr Free, I Banking Facility Free, Mobile & SMS Banking Facility Free, CMS at concessional rate, Demat Account Charges waived for Ist year.

SB221

8. SB Vidyarthi

Zero Balance account for School/college students. ‘CASHMATE’ Debit card will be issued to student with a maximum OD limit facility of ` 1500/- @ clean OD interest at any point of time. Cheque book only to major student. ATM to all students above 14 years of age.

SB 217

9.

OBC Jeevan Sarthi Yojna (Scheme for physically challenged

Zero balance Account. No minimum balance charges. CMO of any Govt. Hospital is Competent Authority for Certifying Disability. Collection of instruments at par. Issuance of DDs/POs at par (Except against cash). No Standing Instruction Charges. Free ABB Cash Transactions up to ` 50000/

SB 214



SAVINGS BANK DEPOSIT SCHEMES – UPDATED UPTO 01/01/2012


persons) No Stop Payment Charges. Free Accidental Insurance of ` One Lac(Withdrawn wef 31-01-2011).

10.

SB Basic No Frill A/C (For financial inclusion)

Initial deposit of `10/-. Balance not to exceed `50000/- in all accounts taken together at any point of time. Total credits in a/c not to exceed `1 lac in preceding 12 months. Simplified KYC procedure. Maximum 6 withdrawals per month permitted free of any charges. For additional withdrawals ` 5 per withdrawal to be levied. ATM Card & Cheque Book facility allowed.

SB 212

11.

Saving Smart Save Gold Flexi Fixed Deposit

Average Quarterly Credit Balance ` 50,000/- Balance above ` 50000/- will automatically be converted into Term Deposit. No Charges for Cheque Books. Free NEFT/RTGS facility. Speed Clearing Charges – Free. Free ECS debit and credit. Instant credit of O/s cheque upto ` 50000/- At par collection of Govt. Cheques. Accident Insurance coverage upto ` 2,00,000/-(Withdrawn wef 31-01-2011).

SB 209

12.

Saving Smart Save Flexi Fixed Deposit

Average Quarterly Credit Balance ` 25,000/- Balance above ` 25000/- will automatically be converted into Term Deposit. 50% concession in NEFT/RTGS Charges. Speed Clearing Charges – Free. Free ECS debit and credit Instant credit of O/s cheque upto ` 25000/- No Charges for Cheque Books. Accident Insurance coverage upto ` 1,00,000/- (Withdrawn wef 31-01-2011). At par collection of Govt. Cheques.

SB 211

13.

NRO Saving Bank A/Cs (CA/PDS/TD also allowed)

In Indian Rupees. Local Funds/Funds from abroad. A/C can be opened by NRI / PIO. Any resident going abroad for gainful employment, his domestic account will be converted into NRO a/c. If he/she does not have any domestic a/c, he/she can open a NRO a/c. Joint a/c with Residents/Non-Residents permitted. Non-repatriable except to the extent of USD one million per financial year including sale proceeds of immovable property.

SB 205

14.

NRE Saving Bank A/Cs (CA/PDS/TD also allowed)

In Indian Rupees. Funds from abroad. A/C can be opened by NRI / PIO. Any resident going abroad for gainful employment can open NRE account. Joint a/c with Residents not permitted. Joint a/c with Non-Residents permitted. P.A. Holder can operate the account. Freely Repatriable.

SB 206

15.

RFC Saving Bank A/Cs (CA/PDS/TD also allowed)

In Foreign Currency. USD, GBP and Euro Any returning NRI who has stayed abroad can open RFC a/c. Joint a/c permitted Freely Repatriable.

SB 207

16.

Saving Bank Capital Gains Scheme 1988 (Tax Saver) Account ‘A’ for SB/CA Account ‘B’ for TD

Tax Saver Scheme Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G of Income Tax Act, 1961 allowed. Option to open Account ‘A’ or ‘B’. Interest or withdrawal from Account ‘B’ can be made through Account ‘A’ only. Introduction of the depositor need not be insisted upon. Joint account not permitted. Cheque Book facility not allowed. Withdrawl of Interest does not require permission from IT authority like the withdrawl of Principal amount. Special Account Opening Form to be obtained in duplicate. The forms as obtained during the course of operation of account / withdrawals /closure of accounts to be submitted to the IT authority within 7 days of the close of the month.

SB 208



CURRENT ACCOUNTS DEPOSIT SCHEMES – UPDATED UPTO 01/01/2012


1. Pragati CA Scheme


With Cheque Book `1000/- ` 2500/- Free Personal Accident (Death) Insurance Cover of `1 Lac (1st year) after that premium for insurance coverage will be charged @`̀̀̀9/-+Service Tax Waiver of 100% ABB Charges during the 1st year. Waiver of Demat A/C maintenance charges for one year. Additional Benefits : (For A/Cs maintaining average daily CA balance of ` 5 Lac or more) Free Draft Issuance Facility, Free RTGS Facility up to ` 5 Lacs. (However, mandatory RBI charges plus applicable service tax shall be recoverable).

CA 113

2. Current Account (General)


With Cheque Book ` 250/- ` 500/- Normal Current A/C

CA 101

3.

Current Account Premium Gold - FFD

Flexi Fixed Deposit Average Quarterly Credit Balance ` 2,00,000/- Balance above ` 200000/- will automatically be converted into FDR/CDR. No Charges for Cheque Books 50% concession in NEFT/RTGS charges.

CA 109

4.

Current Account Vyapar Silver - FFD

Flexi Fixed Deposit Average Quarterly Credit Balance ` 50,000/- Balance above ` 50000/- will automatically be converted into FDR/CDR. 100 Aggregate Free Cheque Leaves (Local or Multi city)

CA 110

5.

Current Account Capital Gains Scheme 1988 (Tax Saver) Account ‘A’ for SB/CA Account ‘B’ for TD

Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G of Income Tax Act, 1961 allowed. Option to open Account ‘A’ or ‘B’. Interest or withdrawal from Account ‘B’ can be made through Account ‘A’ only. Introduction of the depositor need not be insisted upon. Joint account not permitted. Cheque Book facility not allowed. Withdrawal of Interest does not require permission from IT authority like the withdrawal of Principal amount. Special Account Opening Form to be obtained in duplicate. The forms as obtained during the course of operation of account / withdrawals /closure of accounts to be submitted to the IT authority within 7 days of the close of the month.

CA 111

6.

NRE Current Account (SB/PDS/TD also allowed)

In Indian Rupees. Minimum Balance `1000/- Funds from abroad. A/C can be opened by NRI / PIO. Any resident going abroad for gainful employment can open NRE account. Joint a/c with Residents / Non-Residents permitted. P.A. Holder can operate the account. Freely Repatriable.

CA 102

7.

NRO Current Account (SB/PDS/TD also allowed)

In Indian Rupees. Minimum Balance `1000/- Local Funds/Funds from abroad. A/C can be opened by NRI / PIO. Any resident going abroad for gainful employment, his domestic account will be converted into NRO a/c. If he/she does not have any domestic a/c, he/she can open a NRO a/c. Joint a/c with Residents/Non-Residents permitted. Non-repatriable except to the extent of USD one million per financial year including sale proceeds of immovable property.

CA 103

8. EEFC CA

In Foreign Currency. USD, GBP, Euro, Canadian $ and Australian $. Funds from abroad. Any type of remittances coming from abroad can be kept in EEFC A/C. Freely Repatriable.

CA 104

9. Imprest Account

Branches maintaining Current A/Cs of Extension Counters, Lead Bank Offices, STCs, Spl. Collection Centres, Stationery Godowns, Central Cash Centres, Currency Chests, Satellite Offices, Assets Recovery Cells, Inspectorates, Service Branches,

CA 105



CURRENT ACCOUNTS DEPOSIT SCHEMES – UPDATED UPTO 01/01/2012


MICR Centre.

10. Banker’s CA Current A/Cs of Banks maintained with the Branches. CA 106

11. CA Margin Money

Margin Money kept in C/As against issue of L/Cs, Guarantees, etc. CA 107

12. Domestic RFC Scheme

In Foreign Currency. Residents can open this A/C. Freely Repatriable.

CA 108

13. Dividend Warrant CA

A/Cs opened by the Companies to pay Dividend. CA 112

14. E-TAX AC A/C opened by our Branches/Offices for online remittance of TDS Deducted CA 117

TERM DEPOSITS SCHEMES – UPDATED UPTO 01/01/2012

# SCHEME AMOUNT PERIOD SPECIAL FEATURES SCHEME CODE

1.

Fixed Deposit (Timely Appreciation)

Minimum `100/- 07 days to 120 months

Interest Payable Quarterly

TD 301 (Qty. Liq.) TD 302 (Without Liq.) TD 308 Diff.Intt.Rate TD 311 FDR-Banks TD 312 Govt Spon Subsidy

2.

Cumulative Deposit (Money Multiplier)

Multiples of `100/-

6 months to 120 months In multiples of 3 months

Quarterly Compounding Lump Sum payment on maturity

TD 303 TD 309 Diff.Intt.Rate TD 310 Court Claim

3. Call Deposit At Call Issued in favor of beneficiaries on account of applicants Zero Interest

TD 304

4.

Monthly Income Deposit (Income Plus)

Amount is accepted so that Monthly Income is in multiples of `10/-

12 months to 120 months

Interest is paid on Monthly basis. Principal paid on maturity.

TD 305

5. Suvidha Deposit (Flexibility)

Minimum ` 2000/- In Multiples of `1000/-


Quarterly Compounding Partial withdrawal in multiples of units of `1000/- allowed. Remaining units continue to earn interest at Contracted Rate.

TD 306

6.

Capital Gains Scheme 1988 (Tax Saver) Account ‘A’ for SB/CA Account ‘B’ for TD

Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G of Income Tax Act, 1961 allowed. Interest or withdrawal from Account ‘B’ can be made through Account ‘A’ only. Introduction of the depositor need not be insisted upon. Joint account not permitted. Withdrawal of Interest does not require permission from IT authority like the withdrawal of Principal amount. Special Account Opening Form to be obtained in duplicate. The forms as obtained during the course of operation of account / withdrawals /closure of accounts to be submitted to the IT authority within 7 days of the close of the month.

TD 313-FDR TD 314-CDR




# SCHEME AMOUNT PERIOD SPECIAL FEATURES SCHEME CODE

7.

NRE FDR / CDR (SB/CA/PDS also allowed)

In Indian Rupees. (`) Funds from abroad.

1 to 3 years

A/C can be opened by NRI/ PIO. Any resident going abroad for gainful employment can open NRE account. Joint a/c with Residents not permitted. Joint a/c with Non-Residents permitted. Freely Repatriable. Exempted from all taxes.

TD 321-FDR Qty.Liq. TD 325-CDR

8.

NRO FDR / CDR (SB/CA/PDS also allowed)

In Indian Rupees. (`) Local Funds/Funds from abroad.

As applicable to domestic TD

A/C can be opened by NRI/ PIO. Any resident going abroad for gainful employment, his domestic account will be converted into NRO a/c. If he/she does not have any domestic a/c, he/she can elect to open a NRO a/c. Joint a/c with Residents/Non-Residents permitted. Non-repatriable except to the extent of USD one million per financial year including sale proceeds of immovable property. No Tax exemptions.

TD 322-FDR Qty. Liq. TD 323-FDR Non Liq. TD 324-CDR

9.

FCNR (B) FDR / CDR (Only TD allowed)

Funds from abroad. In Foreign Currency USD, GBP, Euro, Canadian $ and Australian $.

Minimum 12 months Maximum 5 years

A/C can be opened by NRI/ PIO. Any resident going abroad for gainful employment can open FCNR (B) account. Joint a/c with Residents not permitted. Joint a/c with Non-Residents permitted. Freely Repatriable. Exempted from all taxes.


10.

RFC FDR / CDR (SB/CA/PDS also allowed)

Funds from abroad. In Foreign Currency. USD, GBP, Euro, Canadian $ and Australian $.

Minimum 12 months Maximum 5 rears

Any returning NRI who has stayed abroad can open RFC a/c. Joint a/c permitted Freely Repatriable.


11.

EEFC Deposit Scheme (Only CA Allowed. After 31/10/2008, TD not allowed.)

Minimum USD/GBP/ EURO 10000 & in multiples of 1000 units. Max. to the extent of USD 1 mn or its equivalent in other currencies per exporter

Minimum 1 month. Max. 1 year maturing on or before 31.10.2008

Any foreign exchange earned by exporters can be kept in EEFC A/C. In Foreign Currency. (USD, GBP & Euro.) Freely Repatriable. Premature payment & overdue renewal as per guidelines for FCNR(B). Premature renewal not allowed.

TD 335-FDR

12.

Tax Saving CDR/FDR/MIDR (Tax saving u/s 80 C)

Minimum `100/- & Maximum `100,000/-

Period shall not be less than 5 yrs

PAN Required, No Loan, No Lien, No Premature Payment

TD 341-CDR TD 342-FDR-Liq. TD-343 MIDR

13.

Progressive Deposit General (Drop by drop makes an ocean)

Multiples of `10/-

6 months to 120 months (In multiples of 3 mths)

Quarterly Compounding Amount is deposited in monthly Installments. Lump Sum Payment on maturity.

PD 315

14.

OBC Adhaar Variable

Core monthly installment in Multiples of `10/-


Quarterly Compounding Amount of monthly Installment may vary up to 10 times of the Core Amount or `50,000/- whichever is less.

PD 316




# SCHEME AMOUNT PERIOD SPECIAL FEATURES SCHEME CODE Progressive Deposit (Tailor made)

Maximum `50,000/-

Lump Sum Payment on maturity. Loan facility – 95% of Accrued value

15.

Flexi Fixed Deposit (Liquidity of SB/CA & higher returns of Fixed Deposits)

Operative Accounts

Min. avg. quarterly balance

`

Auto Sweep Unit

`

Reverse Sweep Unit

`

Penalty / qtr for min.bal.

`

Period of FFD

SB Smart Save

25,000/- 5000/- 2000/- 150/-

Saving Smart Save Gold

50,000/- 5000/- 2000/- 450/-

90 days to 5 years

CA Premium Gold

200,000/- 25,000/- 25,000/- 1000/- 15 to 45 days

FOR SB 211:- TD376 - FDR (II) TD382 – FDR (IO) TD383 – CDR FOR SB 209 :- TD378 - FDR (II) TD386 – FDR (IO) TD387 – CDR FOR CA 109:- TD 379 - FDR

16.

Oriental Grameen Jama Yojana (Progressive Deposit – Financial Inclusion)

Minimum instalment of `5/ and in multiples thereof not exceeding `500 during the month.

12 months to 10 Yrs

Quarterly Compounding. Loan to the depositor upto a maximum of 75% of the accrued amount of deposit with a minimum of `200/- available with Interest @1% p.a. over and above the deposit rate applicable.

LEGAL ASPECTS • As per which provision of Securitization Act 2002, application can be filed before collector/ DM

for getting physical possession of the Secured Asset - Section 14 of the Act • As per which provision in Securitization Act 2002, Appeal/Application can be filed before DRT

by the Borrower - Section 17 of the Act (within 45 days) • As per which provision in Securitization Act 2002, Second appeal can be filed by the Borrower/

Guarantor to DRAT - Section 18 of the Act (within 30 days) • Limitation for filing execution Petition after obtaining Decree - 12 years • Maximum & Minimum members in a Pvt. Ltd. Company - 50 & 2 • Minimum members in a Public Ltd. Company - 7 • Maximum number of members in a partnership firm if it is a Banking company - 10 • Maximum number of members in a partnership firm if it is not a Banking company - 20 • Minimum directors in a Pvt. Ltd. Company - 2 • Minimum directors in a Public Ltd. Company - 3 • Time limit for having the first statutory meeting of a company after the incorporation of a

company - within 6 months • Pecuniary jurisdiction of DRT - 10 lac & above • Maximum court fee to be paid in DRT - 1.50 lac • Minimum court fee to be paid in DRT - 12,000/- up to `10 lacs, exceed every 1 lac `1000/- • As per which Act DRT is constituted - Recovery of Debts due to Banks and financial Institutions

Act 1993 • Which is the provision for filing appeal to DRAT against the order of the presiding officer in DRT

- Section 20 (within 45 days) • Which is the provision for filing appeal to the presiding officer in DRT against the order of the

Recovery Officer in DRT - Section 30 (within 30 days) • Within How many days, appeal should be filed before presiding officer in DRT against the order

of the Registrar of DRT - within 15 days • How many days time should be given in the demand notice sent to the Borrower as per Section

13 (2) of Securitization Act 2002 - 60 days • Banking ombudsman scheme is introduced in the year - 1995



• Consumer Protection Act introduced in the year - 1986 • How much time will be the maximum gap between two Annual General Meeting of a Company -

15 months • Within How many days, application for creating charges to be filed before Registrar of

Companies - 30 days (Section 125 of Companies Act 1956) • As per which provision in Indian Limitation Act 1963, Limitation is extended for further 3 years

by the obtention of Balance Confirmation Letter - Section 18 • As per which decision of Supreme Court, it is made clear that simultaneous action under

securitization act along with DRT/ Suit Filed with any other court can be taken - Transcore v/s Union of India

• Pecuniary Limit for Filing RRC - below 10 lac • Limitation for filing mortgage suit before Court- 12 years • Limitation for filing money suit before Court - 3 years • Pecuniary Jurisdiction of Banking Ombudsman - 10 lacs • What is the prescribed time limit within which consumer Forum should dispose the Compliant -

3 months • What is the prescribed time limit within which DRT should dispose the Original Application - 6

months • What is the prescribed time limit within which Banking Ombudsman should dispose the

Compliant - 6 months • Limitation for filing compliant with Banking Ombudsman - 1 year • Limitation for filing compliant with Consumer Forum - 2 years • Pecuniary Jurisdiction of District Consumer Forum - 20 lacs • Pecuniary Jurisdiction of State Commission (Consumer) - Between 20 lacs and One Crore • Pecuniary Jurisdiction of National Commission (Consumer) - above 1 Crore • Maximum period of imprisonment can be given by a Court under section 138 of NI Act 1881 - 2

Years • Maximum period of civil imprisonment can be given by a Civil Court in the execution of a

decree - 3 months • Action under section 138 of NI Act – Send 15 days legal notice within 30 days of the date of

dishonor of cheque. Documentation, Stamp Duty and Limitation

Who is to Sign the documents or create mortgage

Borrower Who is to Sign Individual Himself / His agent Joint Borrowers All / their agent Proprietorship firm Proprietor / Agent Partnership firm All partners HUF Karta. If coparceners are to be made liable, they are also to sign Joint Stocks Company Person authorized by the resolution from the Board of directors Trust/Club/Society Trustee/person authorized by their governing documents/resolution

Stamp Duty Rates Instrument Rate (`̀̀̀)

Receipts for any money or property the amount or value which exceeds ` 5000 1.00 Proxy letter 0.15 Letter of credit 1.00 Transfer of shares (` 100 or part) 0.25 Demand bill of exchange / cheque NIL Demand promissory note: Value not more than ` 250 Value more than ` 250 less than `1000 Value of more than `1000

0.05 0.10 0.15

Loan account wise limitation period Demand Loans 3 years from the date of loan Demand promissory note 3 years from the date of DPN



T O D 3 years from the date of loan Term loan 3 years from the date of each installment C C Hypothecation 3 years from the date of document C C Pledge N A Bills discouting 3 years from the due date of the respective bill Bills purchasing 3 years from the date of bill Loan secured by mortgage Instead of 3 years, the period would be 12 years Recovery of loss caused by fraud 3 years from the date of fraud detection Suit by state/Central government 30 years from the period when limitation begins Right of foreclosure and right of redemption in case of mortgage

30 years when money becomes due and when right to recover occurs respectively

Deposit accounts like SB, CA or matured FDRs

3 years from the date of demand

Appeal to high court against lower court 90 days from date of decree Appeal to other court on the decree at lower court

30 days from date of decree

Execution of decree 12 years from the date of decree SARFEASI ACT

• The act has two parts, first part stands for securitisation and reconstruction of financial assets and other part is enforcement of security interest.

• Eligible assets under the act may be enforced without intervention of court or tribunal with the laid down procedure under the act.

• If party failed to deposit the amount, possession of charged/ secured assets is obtained from the bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is mandatory.

• No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the secured creditors representing not less than 3/4th in value of the amount outstanding.

• If borrower restricts the bank to take physical possession of secured assets, petition is filed under section 14 of the act to the CMM/DM praying to get the physical possession of the assets.

• No action is taken before 45 days of taking possession, as 45 days time is given under the act to appeal against the action of the bank.

• Appeal with DRT can be filed by the party only after taking possession of the assets under section 17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil court does not jurisdiction to entertain any suit under provision of the act.

• Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed by 30 days publication of sale through auction/ tender notice of these assets in the vernacular newspaper and national daily.

• 60 days notice is served under 13(2) of SARFEASI • Action is taken for the dues exceed `1 lac • Agriculture Land and lease hold property can not be enforced • Appeal is made within 45 days of possession of secured asset • 30 days notice is served indicating there in the sale of asset • 30 days publication is made for auction of secured assets • Possession of property is obtained under 13(4) SARFEASI Act • Publication of possession of property - within 7 days from the date of possession. • SERFEASI ACT 2002 does not apply to the following assets –

A - lien on any goods, money or security. B - A pledge of moveable. C – Creation of any security in any aircraft or vessel. D – Any property that can not be attached under any other law. E – Any security interest for securing repayment any financial asset not exceeding `1 lac. F – Any case in which the amount due is less than 20% of the principal amt. G – Any interest created in agriculture land.



LOKADALAT

• Lokadalat has been constituted under Legal Services Act, 1987. No legal fee is charged for approaching Lokadalat.

• All NPA a/cs including suit filed and decreed having outstanding balance upto ` 20.00 lacs can be referred to the Lokadalat. All legal disputes pending in civil, criminal, revenue courts or a tribunal can be taken to lokadalat for amicable settlement except criminal cases which are non- compoundable.

• Accounts can be settled by the bank as per the mutual consent of the parties. • Award passed by the Lokadalat is a deemed decree of the court, which can be executed in case

of default by the borrowers / judgement debtor through court of competent jurisdication. Existing Powers of Functionaries for settlement of Deceased Claims Presently the following functionaries have been vested with the powers for settling such claims as approved and communicated vide Recovery & Law Dept., Head Office Circular

Further, the under-noted clarifications have also been given in the aforementioned Circular : • In respect of claims on the basis of court orders viz. Probate/ Succession Certificate, the same

can be settled by branch Incumbents irrespective of the amount involved. • Claims by nominees in respect of the accounts where a valid nomination is registered as per

Branch records, shall be disposed of at Branch level, in accordance with nomination; irrespective of the amount involved.

• The powers of Branch are restricted to claims by Legal heirs of Class-I in respect of Hindus &

Sikhs only, whereas the different functionaries at Regional Offices / Head Office are empowered to deal with all type of claims. The claims relating to Muslim & other communities and claims by guardian other than natural guardian shall be dealt at Regional office level even when the claim amount falls within Branch powers. Further claims in respect of ‘Either or Survivor’ & ‘Former or Survivor’ accounts shall be disposed of at branch level as per instruction.

• The limit for settlement of case – 15 days subject to production of proof of death and proper

identification of the claimant's to the bank's satisfaction.

SERVICE TAX • Our bank has centralized payment system of Service tax. Payment of the tax is made by the

head office. • Last date (Due date) for payment of Service Tax to the A/c of Government

For Company: - Monthly liability. Deposit tax so collected by 5th of next month. For month of March deposit by 31st March. For other than Company: - Quarterly liability.

Functionaries Powers

Branch Incumbents/Incumbent- Incharge,

Extension Counter of Scale-I,II &III

Upto Rs 2.00 lacs

Branch Incumbents in Scale IV Upto Rs. 5.00 lacs

Branch Incumbents in Scale V & above Up to Rs. 7.50 lacs

Regional Head Upto Rs. 20.00 lacs

2nd

Man in Regional Offices Upto Rs. 10.00 lacs

(irrespective of scale)

AGM at Head Office Upto Rs. 30.00 lacs

DGM at Head Office Upto Rs. 50.00 lacs

General Manager

(at Head Office/Field)

Upto Rs. 1.00 crore

Executive Director/CMD Full Power



NOTE: - If the duty is deposited electronically through Internet banking, due date of Payment is 6th of month.

• Rate of service tax collection is 12% of the charges collected by the party + Education Cess @2%

of Service Tax Amount (i.e. 2% of 12%) + Sec & Higher Education Cess @1% of Service Tax Amount (i.e. 1% of 12%). Hence effective rate of Service Tax is 12.36%.

• Service tax collected by a branch is kept under the PL head Service tax payable. Actual amount of Service tax collected by the branch remains in this head and not remitted to Head office.

• Bank has permitted for payment of services tax on premised rent to eligible landlord. (after obtaining certain documents)

Service tax paid by the bank must be debited to Service tax paid account and input register (CENVAT credit register) containing above details must be kept on record at the branch.

TAX DEDUCTED AT SOURCE (T.D.S) 1. Floor limit of TDS on Term Deposit `10000/- (wef 01-06-2007) 2. Form 15 G - To be obtained from Persons (other than Senior Citizen) 3. Form 15 H - To be obtained from Senior Citizen 4. Form 60 - for Non Agriculture 5. Form 61 - for Agriculture Tax Deduction at Source (TDS) at a Higher Rate (20%) on Transactions on not quoting of PAN As per the amended provisions, w.e.f. 1.04.2010, TDS at higher of the prescribed rate or 20% will be deducted on all the transactions liable to TDS, where Permanent Account Number (PAN) of the deductee i.e., the party is not available. The law will also apply to all non-residents in respect of payments/remittances liable to TDS. Further, Certificate of deduction of tax at lower rate or no deduction (under section 197 of the Income Tax Act,1961) shall not be issued by the concerned Income Tax Authority to the party i.e., to whom eligible payment is made by the bank, unless the application of the party bears PAN. In addition, declaration by the depositor in "Form 15 G/Form 15H"(under section 197A of the Income Tax Act, 1961) shall not be valid unless it bears the PAN of the depositor. Keeping in view the above amendments, the offices are advised, as under: (i) Where the payment to the party is liable to TDS and the party has not quoted PAN, to

deduct TDS at higher of the prescribed rate or 20%. The basic exemption limit and the prescribed TDS rates in force are reproduced below for ready reference.

PAYMENT TO RESIDENTS IN INDIA S.No. Nature of Payment Prescribed

TDS rate (Surcharge-Nil &Cess-Nil)

TDS liable to be deducted

1 Interest on Term Deposits (Domestic Company as well as other than Domestic Company)

10% If the interest credited or paid (likely to be credited or paid) during the financial year exceeds `10,000/-.

P.S: TDS ON INTEREST ON TERM DEPOSITS NOT LIABLE TO BE DEDUCTED (a) Interest is credited/paid to any banking company, co-operative society engaged in banking

business, public financial institutions, the Life Insurance Corporation, the Unit Trust of India or notified Institutions (only on receipt of exemption certificate from the tax authorities)

(b) Interest other than on time deposits. (c) Interest is credited or paid on compensation awarded by the Motor Accident Claims Tribunal

if the amount of payment or the aggregate amount of such payment does-not exceed `50,000/-

2. Commission or brokerage

10% If the interest credited or paid during the financial year exceeds `5000/-

3a. Rent of plant and 2% If the interest credited or paid during the



machinery (with effect from October 1,2009)

financial year exceeds `1,80,000/-

3b. Rent of land or building or furniture or fitting ( with effect from October 1,2009)

10% If the interest credited or paid during the financial year exceeds `1,80,000/-

4. Fees for professional or technical services

10% If the amount credited or paid (likely to be credited or paid) during the financial year exceeds `30,000/-

5. Payment to Contractors/Sub-contractors

The amount of any (single) sum credited or paid (likely to be credited or paid) exceeds `30,000/- and the aggregate of the amounts of such sums credited or paid (likely to be credited or paid) during the financial year does-not exceed `75,000/-

(a) Payment/credit to an individual or a HUF contractor/sub-contractor (w.e.f 01/10/2009)

1%

(b) Payment/credit to any person other than an individual or a HUF contractor/sub-contractor (w.e.f 01/10/2009)

2%

INTEREST PAYMENTS TO PERSONS NOT RESIDENTS IN INDIA

Nature of Payment Income Tax (%) Surcharge (%) Cess (%) Total (%)

A. In case where the person (other than company) which is not resident in India

30% - 0.90% 30.90%

B. (i) In case of a company which is not a domestic company (where the total income does-not exceed ` one crore)

40% - 1.2% 41.20%

(i) In case of a company which is not a domestic company (where the total income exceeds ` one crore)

40% 0.1% 1.224% 42.023%

It is reiterated that under the existing provisions of the Income Tax Act, 1961 and circulars issued there under, no tax is required to be deducted at source on payment of interest to the holders of Non –Resident (External) Account and FCNR deposits as per extant rules.

It is clarified that in the case of payments to persons resident outside India which are liable for TDS i.e., other than Non –Resident (External) Account and FCNR deposits, if PAN is not quoted by the party, TDS at the afore-said rates is to be deducted as these rates are higher than 20%.

(ii) Not to accept "Form 15 G/Form 15H" from any of the depositors unless PAN of the

depositor is quoted on the respective forms.



TAX DEDUCTION AT SOURCE (TDS) The Central Board of Direct Taxes (CBDT) have since issued notification dated 31st May 2010 w.e.f 01/04/2010 modifying the time limit for deposit of TDS, issue of TDS certificates and e-filing of TDS Returns and in the light of the same the offices are advised as under: I. TIME LIMIT FOR DEPOSIT OF TDS & ISSUE OF TDS CERTIFICATES

(a) SALARY TIME LIMIT FOR DEPOSIT OF TAX BY THE BANK

TIME LIMIT FOR ISSUE OF TDS CERTIFICATE TO THE EMPLOYEE

TDS CERTIFICATE IN

For Salary credited/Paid in the month of March - On or before 30th April For salary credited/ paid other than the month of March Within 7 days from the end of the month in which tax is deducted

By 31st May of the financial year immediately following the

financial year in which the salary was paid and tax

deducted.

Revised FORM No. 16 to be issued Annually.

(b) PAYMENTS OTHER THAN SALARY

TIME LIMIT FOR DEPOSIT OF TAX BY THE BANK

TIME LIMIT FOR ISSUE OF TDS CERTIFICATE

TDS CERTIFICATE IN

Amount credited/Paid in the month of March - On or before 30th April

Other cases i.e., Amount credited/paid other than in the month of March Within 7 days from the end of the month in which tax is deducted

Within 15 days from the due date for furnishing statement of deduction of tax i.e., TDS Return (Refer Item 2 for Due date) .

Revised FORM No. 16A to be issued Quarterly.

II. DUE DATE FOR FILING TDS RETURNS The due date for furnishing TDS return for the quarter ending March has been modified to 15 th May (from earlier June). Accordingly, the revised due dates for e-filing the TDS returns are:

S.No. Date of ending of the quarter of the financial year

Due date

1. 30th June 15th July of the financial year 2. 30th September 15th October of the financial year 3. 31st December 15th January of the financial year 4. 31st March 15th May of the financial year immediately

following the financial year in which deduction is made

(III) The offices shall continue to deposit TDS in on-line mode.



Payment of Interest for delayed remittance to IT authority

RECOVERY MANAGEMENT

SPECIAL ONE TIME SETTLEMENT SCHEME (OTS) FOR SETTLEMENT IN ELIGIBLE NPA

ACCOUNTS WITH O/S UPTO Rs. 10.00 Lac

1. Eligibility:- The Approved Scheme shall cover all NPA accounts in doubtful or loss category (whether

non-suit filed, suit filed or decreed accounts) with Principal outstanding upto Rs. 10.00 Lac

(including amount technically written off, ECGC/ DICGC/CGFT claim received) as on

30.09.2011 except those cases where the settlement had been approved and the same was

being honoured.

2. Validity of the Scheme: The Scheme shall be valid upto 30.06.2012

3. Settlement Formula- Minimum Settlement Amount Doubtful and Loss Assets (Including Decreed Accounts)

NPAs with Outstanding

Upto Rs. 1.00 Lac

More than Rs. 1.00 Lac

upto Rs. 3.00 Lac


upto Rs. 5.00 Lac


upto Rs. 10.00 Lac

S. No.

Particulars of security

Minimum Settlement Amount

1 Where Net Present Value of Realisable Value (NPVRV) of security (Primary and/or Collateral security) charged in the account is more than or equal to the recoverable dues (calculated as per amended modular approach)

The Settlement formula for the minimum settlement amount will be as per the prevalent settlement policy.



Where Net Present Value of Realisable Value (NPVRV) of security (Primary and/or Collateral security) charged in the account is less than the recoverable dues (calculated as per amended modular approach) but more than or equal to the Principal Outstanding

2 Where Net Present Value of Realisable Value (NPVRV) of security (Primary and/or Collateral security) charged in the account is less than the Principal Outstanding but more than or equal to 50% of the Principal Outstanding

NPVRV of the security(ies) charged in the account




3 Where Net Present Value of Realisable Value (NPVRV) of security (Primary and/or Collateral security) charged in the account is less than 50% of the Principal Outstanding (including cases where no security is available).

NPVRV of the security charged in

the account or 25 % of the Principal Outstanding whichever is higher







Powers designated to field functionaries for settlement of NPA Accounts under the Scheme are as given below:

Designation Powers to settle accounts under the Scheme

Branch Incumbent (in the Scale of JMGS-I to MMGS-III)

NPA accounts with principal outstanding upto Rs. 3.00 Lac

Branch Incumbent (in the Scale of SMGS-IV and above)

NPA accounts with principal outstanding upto Rs. 5.00 Lac

IInd Man at Regional Offices NPA accounts with principal outstanding more than Rs. 3.00 Lac and upto Rs. 5.00 Lac

Regional Head NPA accounts with principal outstanding more than Rs. 5.00 Lac and upto Rs. 10.00 Lac

The details of features mentioned at point no. 1 to 4 above are given as under:

Criteria for Settling eligible NPA accounts: d) NPA accounts secured by personal guarantee of existing staff member, will not be

eligible under the approved scheme. e) The NPA accounts of the staff and relatives of the staff members will not be covered

under the approved scheme. g) The cases of fraud, malfeasance and other cases where criminal actions have been

initiated, shall be forwarded to Head Office as per the system in vogue. h) Settlement proposals in NPA accounts, in all cases, sanctioned by the same person (by

name) will be forwarded to the next higher authority. i) The OTS Scheme for settlement of NPA accounts with outstanding upto Rs. 5.00 Lac has

already expired on 30.09.2011.



Policy for engagement / empanelment of recovery agents/ outside agencies for recovery

• All NPA accounts in doubtful or loss category including suit filed and decreed accounts with the principal o/s. not exceeding `10.00 lac ( including TWO, ECGC/ DICGC shall be eligible for allotment to Recovery Agents for recovery of banks dues except ongoing settlement accounts.

• Committee headed by Regional Head is empowered to empanel the list of recovery agent. Empanelment will be initially for a maximum period of 2 years.

• 100 hours certificate course for Direct Recovery Agent introduced by IIBF / ARCIL/ Bank of India has to be undertaken from agent.

• Security bank deposit / bank guarantee for `1.00 lac has to be produced to the bank by the firm as a pre-condition.

• Commission payable to recovery agent is minimum 6% to 10% for accounts having o/s. upto `1.00 lacs and 4% to 10% for accounts having o/s. above `1.00 lacs depending upon the age of NPA. This amount is paid by debit of charges general (law).

Corporate Debt Restructuring (CDR)

• There are two categories of debt restructuring under the CDR system. one category related to accounts classified as 'standard' and 'substandard' in the books of the creditors ( category 1) while category 2 related to accounts classified as 'doubtful' and 'loss'.

• The CDR will not apply to accounts involving only one financial institution or one bank. It covers only multiple banking a/cs, syndication/ consortium a/cs having outstanding both fund based and non-fund based exposure of `20.00 crore and above by the banks and institutions.

• Corporate indulging in fraud and malfeasance even in single bank continue to remain ineligible for restructuring under CDR mechanism.

• CDR is for the help of viable entities facing problems outside the purview of BIFR, DRT and other legal proceedings. However, suit file cases can be considered eligible provided, initiative to resolve the case under this system is taken by at lease 75% of the creditors ( by value ) and 60% of creditors (by numbers). Likewise large value BIFR cases may be eligible under the system if specifically recommended by the CDR core group.

• CDR has 03 tier structure i.e. CDR standing forum and its core group, CDR empowered group and CDR cell.

• CDR standing forum evolve policies and guidelines for working out debt restructuring plans. It comprises of CMD, IDBI, SBI MD & CEO ICICI Bank, Chairman IBA and CMDs of all bank and financial institutions. RBI joined the forum only for providing broad guidelines. The forum will elect its chairman for one year.

• CDR core group is a part of forum consists of Chief Executives of IDBI, SBI, ICICI BANK, BOB, PNB and IBA and representatives of foreign banks in India. It examines the individual cases submitted by CDR cell of its viability and rehabilitation potential of the company and approve the restructuring package within 90 days or at best within 180 days of reference to the empowered group.

• CDR cell is the primary body of CDR mechanism and assist the CDR standing forum and CDR empowered group to make the initial scrutiny of the proposal received from borrowers/ creditors.

• Stand still agreement is an important agreement of debtor-creditor agreement binding for 90 days or 180 days by both sides. Under this clause, parties commit themselves not to take recourse of any other civil action during the standstill period. However, this commitment will not cover any criminal action. This will ensure the CDR system to undertake the necessary debt restructuring exercise without any outside intervention, judicial or otherwise.

• Additional finance under restructure will be categorized as standard upto a period of one year after the first interest / principal payment, whichever is earlier, fall due under the restructuring package.

• CDR in case of doubtful and loss accounts, restructuring of corporate debts under CDR system could take place in stages; (a) before commencement of commercial production (b)after commercial production and the asset has been classified as substandard or doubtful (c) after start of commercial production and the asset has been classified as substandard or doubtful. In case of (a) or (b) standard asset will become standard after restructuring in case of first restructuring. Second time restructuring is possible after classification of account as NPA. In



case of (c) asset will remain NPA for 12 months i.e. till satisfactory performance as per the terms of CDR.

• Willful defaulter – Information in regard to willful defaulter is required to be submitted to RBI for accounts having outstanding `25.00 lacs and above on quarterly basis.

• Decision to classify the account as willful default rests with the committee headed by Executive Director.

• There are three definitions of Sick industrial unit i.e. Non-SSI (BIFR), Non-SSI- Non-BIFR units and Sick SSI units. One is applied to BIFR cases and other one for SSI units.

• Sick Non SSI unit ( BIFR cases) - An industrial undertaking is defined as Sick Industrial Company if it has been in existence for at least 5 years and has incurred losses and the accumulated losses are more than its net worth.

Sick/Weak Non-SSI, Non-BIFR Units If the accumulated losses of an industrial company as at the end of any financial year have resulted in erosion of fifty percent or more of its peak net worth during the immediately preceding four financial years the company is termed as potentially sick industrial company or weak industrial unit. The above definition of weak unit will also apply to all forms of organizations including limited companies, partnership firms and proprietary concerns. It will include other units not covered by the definition of sick/weak units given in the SICA, 1985. SICK SSI UNITS A SSI unit may be classified as sick when- An SSI unit should be considered 'Sick' if a) any of the borrowal accounts of the unit remains substandard for more than six months i.e. principal or interest, in respect of any of its borrowal accounts has remained overdue for a period exceeding one year. The requirement of overdue period exceeding one year will remain unchanged even if the present period for classification of an account as sub-standard, is reduced in due course. • After the judgement of Hon’ble Supreme Court of India in the case of M/S Unique Butyle Tube

Industries Pvt. Ltd. vs U .P. Financial Corporation and others, RRC is filed for amount above `10.00 lacs and above `10.00 lac the claim is filed before the competent DRT instead of filing RRC.

NPA NORMS

• Interest and or installments of principal remain overdue for a period of more than 90 days in respect of a term loan.

• The account remains ‘out of order’ for a period of more than 90 days in respect of overdraft/cash credit

• The bill remains overdue for a period of more than 90 days in case of bill purchased and discounted

• Interest and /or installment of principal remains overdue for two harvest seasons but for a period not exceeding two half year in the case of an advance granted for agriculture purpose, and w.e.f.30.09.04 following further amendments issued by the Apex Bank a. A loan granted for short duration crops will be treated as NPA, if the installment of

principal or interest thereon remains overdue for two crops seasons. b. The loan granted for long duration crops will be treated as NPA, if the installment of

principal or interest thereon remains overdue for one crop season. (Crop season for each crop would be determined by the State Level Bankers’ Committee in each state)

• Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.

• RBI to move over to charging of interest at monthly rest , w.e.f. 01.04.02 NPA CATEGORY REVISED NORMS w.e.f. 31.03.05 Sub – standard assets A sub standard asset would be one, which has remained

NPA for a period less than or equal to 12 months Doubtful assets If it exceeds a sub standard category for more than 12

months Loss assets No security in the account and as identified by bank/

internal/ external auditors or RBI as loss assets



• If realizable value of the security is less than 50% of what valued at the time of sanction or last inspection, such NPA may be straightaway classified under doubtful category

• If realizable value of the security is less than 10% of present o/s, such NPA may be straightaway classified under loss category

• Our bank has fixed `50 lakhs and above accounts as high value accounts • All the facilities granted by a bank to a borrower will have to be treated as NPA and not the

particular facility or part thereof which has become irregular. • The account which are running regular and are classified as standard shall not be categorized

NPA category even if any of the directors/partners are common in other accounts which have been classified as NPA

• Restructured/Reschedule accounts – upgraded after one year subject to satisfactory performance during the period.

• NPA accounts shall be immediately upgraded on payment of irregular portion. PROVISIONING NORMS:

Rates of Provisioning for Non-Performing Assets and Restructured Advances Category of Advances

Existing Rate

(%)

Revised Rate

(%)

Sub- standard Advances:

• Secured Exposures

• Unsecured Exposures

Unsecured Exposures in respect of Infrastructure loan accounts where certain safeguards such as escrow accounts are available.

10

20

15

15

25

20

Doubtful Advances – Unsecured Portion: 100 100

Doubtful Advances – Secured Portion:

• For Doubtful upto 1 year

• For Doubtful > 1 year and upto 3 years

• For Doubtful > 3 years

20

30

100

25

40

100

Loss Advances: 100 100 Restructured accounts classified as standard advances:

• in the first two years from the date of restructuring ; and

• in cases of moratorium on payment of interest/principal after restructuring – period covering moratorium and two years thereafter.

0.25 to 1.00 (depending upon the

category of advance)

2

Restructured accounts earlier classified as NPA and later upgraded to standard category

• in the first year from the date of upgradation

0.25 to 1.00 (depending upon the

category of advance)

2

1. Standard Assets –

a. Direct adv. to Agriculture and SME sector 0.25% b. All other advances at 0.40%



(The provision on standard assets should not be reckoned for arriving at net NPAs) (The provisions towards standard assets need not be netted from gross advances but shown separately as “Contingent provision against standard assets” under “Other liability & provisions Others” in Schedule-V of the Balance Sheet) COMPROMISE SETTLEMENT POLICY OF OUR BANK: 1. Calculating interest on simple basis from the date of NPA 2. The rate of intt. i.e. at PLR or rate of intt. charged on the loan account whichever is lower on

simple basis from the date of NPA or date or reversal of interest whichever is earlier in case of doubtful and loss account. In respect of sub-standard assets, the amount of relief shall be calculated applying contracted rate of interest on simple basis

3. The accounts where prevailing rate of interest charged as per scheme e.g. housing loan, education loan etc. is below PLR. Recorded interest shall be calculated as per prevailing rate of interest instead of PLR for calculating settlement amount.

4. It should be ensured that at least 10% to 25% of offer amount shall be obtained as upfront amount.

5. In case of decreed account, total recoverable dues shall be calculated as per terms of the decree.

6. The calculation of settlement amount shall be based on net present value of realizable value of security in case of doubtful and loss NPA accounts.

Policy on Compromise & Negotiated Settlements In NPA Accounts 1. Doubtful & Loss Assets other than Decreed Accounts

For ascertaining the Total Recoverable Dues, Bank shall continue to adopt the system of Module Interest Approach, i.e. calculation of interest on simple basis instead of compounding basis from the date of NPA on principal amount on reducing balances and the rate of interest shall be realistic i.e. at present PLR or rate of interest presently charged on the loan account, whichever is lower.

2. Decreed Accounts Total liability of the borrower shall be calculated, as per terms of the decree, i.e. rate of interest awarded in the decree with cumulative effect or simple shall be as per Decree.

3. Sub-Standard Assets In respect of sub-standard assets, the amount of Recoverable Dues shall be calculated applying contracted rate of interest or presently charged rate of interest on the loan account, whichever is lower, on simple basis from the date of NPA. The amount of unrealized interest reversed at the time of declaring the account NPA for the first time shall be added.

The salient features of the approved amendments are as under:- � Net present value of realizable value of primary / collateral securities shall be calculated

as per detailed formula given under. � The calculation of settlement amount shall be based on net present value of realizable

value of securities in case of doubtful and loss NPA accounts, � In case of all those borrowal accounts, wherein award staff has guaranteed / availed the

loan and has retired or is not alive, the settlement proposal shall be considered / allowed by the Chairman & Managing Director.

� In case of all those borrowal accounts, wherein Officer has guaranteed / availed the loan and has retired or is not alive, the settlement proposal shall be considered / allowed by the Management Committee of the Board.

� Secondman of RO does not have power to settlement the account under the policy Calculation of Net Present Value Of Realizable Value Of Charged Primary / Collateral Securities

(a) Distress Value of charged primary/ collateral securities [1 + r / 100] n

r = Prevailing PLR of the Bank n = No. of years for realization of securities based on the complicity of the case.

(b) From the amount calculated as (a) above, as expenses towards cost/ expenses/ Fee payable to Enforcement Agent etc. for realization of securities be deducted.

(c) Net Present Value of Realizable Value of Charged Securities = (a) – (b)



TAMASUK DEED – To be obtained on stamp paper by borrower/guarantors. It contains the terms of sanction of settlement and in case of default in repayment of settlement, the borrower (obligant) shall liable to pay the whole amount due on the date of default alongwith complete interest liability on entire dues of the bank and litigation expenses incurred/to be incurred by the bank. The Management Committee of the Board will be the competent authority to consider and sanction the credit facilities to Ex-clients of our bank /clients of other banks who had adjusted their account under compromise/negotiated settlement. Important list of Empanelled supporting agents of our bank: • Assets Reconstruction Company (I) LTD.(ARCIL)- Head office at Mumbai – First ARC in the

country, licensed by RBI under the SARFAESI Act. 2002 which has been promoted by SBI,ICICI Bank, IDBI & other Private Sector Bank/institutions – Functioning – Purchase of NPA of the commercial banks Financial institutions.

Some important Guidelines on purchase/sale of Non performing Financial Assets:

1. A non performing financial asset should be held by the purchasing bank in its books at least for a period of 15 months before it is sold to other banks. Banks should not sell such assets back to the bank, which had sold the NPFA

2. The non performing financial asset purchased, may be classified as Standard in the books of the purchasing bank for a period of 90 days from the date of purchase.

3. If the sale price below the net book value (NBV) (i.e. book value less provisions held) the shortfall should be debited to the profit and loss account of that year.

4. If the sale is for a value higher than the NBV, the excess provisions shall not be reversed but will be utilized to meet the shortfall/loss on account of sale of other non performing financial assets.

5. For the purpose of capital adequacy, banks should assign 100% risk weights to the non performing financial purchased from other bank.

The term "Quick Mortality" means and includes the loan accounts that became NPA within a period of 12 months from the date of first disbursement. EAS/SMA

1. EAS – 001A (Early Alert System) where the irregularity is persisting greater than 1 day to 30 days for interest / instalment payment in CC/OD/ LOANS/Bills Purchased etc. and upto 90 days in case of non submission of stock statement and renewal of sanction limit and upto 180 days in case of agriculture harvest related loans and advances.

2. SMA- 002(Special Mention Accounts) where the irregularity is persisting greater than 30

days to 90 days for interest / instalment payment in CC/OD/ LOANS /Bills Purchased etc. and upto 180 days in case of non submission of stock statement and renewal of sanction limit and upto one year in case of agriculture harvest related loans and advances.



LOAN AND ADVANCES • Disposal of Loan applications upto ` 5.00 lacs

Category of borrower and size of limit Time norms for disposal Loan upto 25000/-for small borrower Within two weeks of receipt of loan

application provided it is complete in all respect

All other cases for loans upto ` 5 lacs Within 4 weeks – do - • Rejection of loan proposal – SC/ST, SSI, EXPORT application can be rejected only next higher

authority System of assessment of credit limits

• Upto ` 5 crores (Nayak Committee) – The working capital limit of the borrowers with working limits upt o ` 5 crores in case of SME units/other units is computed on the basis of 20% of their realistic projected turnover subject to the condition that a minimum margin of 5% of turnover shall be brought in by the promoters/borrowers as their own contribution. Current ratio should be minimum 1.17

• Above ` 5 crores (Tandon Committee) – The MPBF system is proposed to be continued and

uniformly followed for all borrowers with working capital limit above ` 5 crores. Apply IInd method of lending, current ratio should be minimum1.33.

• Consortium financing – The RBI guidelines for mandatory formation of consortium in respect of working capital limits of ` 50 crores and above for the banking system stands withdrawn.

• Public sector undertakings (owned by the state / central govt) raising corporate loan / term loan etc. may not be subjected to any pre-sanction/ post sanction visit.

• No penal interest be charged for PS Advances - up to ` 25000 • No Penal Interest be charged after the date of NPA • No penal interest be charged in Education Loan A/c - up to ` 4 lac • The maximum period of bridge loan shall not exceed 1 year. • The sanction of bridge loan shall be accommodated within the ceiling of 40% of Net Worth to

capital market and can be sanctioned by HO only. • All fresh credit proposals (both fund based and non fund based) exceeding Rs.25 crore shall be

referred NBG (New Business Group) headed by CMD. • GM (Large Corporate Credit) will be the Convener of the NBG. • In terms of Section 19 (2) of the Banking Regulation Act, 1949, the banks should not hold shares

in any company except as provided in sub-section (1) whether as pledgee, mortgagee or absolute owner, of an amount exceeding 30 percent of the paid up share capital of that company or 30% of its own paid up shares capital and reserves, whichever is less.

• No loans to be granted against partly paid shares. • No loans to be granted to partnership/ proprietorship concerns against the primary security of

shares and debentures. • All the guidelines issued by the RBI on Money Market Mutual Fund (MMMF) have been withdrawn

and the banks are to be guided by the SEBI Regulations in this regard. • Bank can not grant loan against CDs (certificate of deposit)

• Benchmark Ratio Debt equity ratio (DE ratio) – 2:1[However for SME, Capital intensive industries/ infrastructure projects same may be considered up to 3:1] Leverage Ratio – 4 [for SME, capital intensive industries/ infrastructure projects & trading concerns (where creditor are generally very high) upto 6:1 may be considered on case to case basis] Current Ratio - 1.17 for limit up to 5 crore 1.33 for limit above 5 crore (for sugar industry 1:1 during peak season)

• Loan application forms: 1. Loan Form No.1 (LF-1) – For loan other than retail credit



2. Loan Form No.2 (LF-2) – For retail credit 3. Loan Form No.3 (LF-3) – For Agriculture loan

• Doc-38 – Common Agreement on Fair Practices/Lender’s Liability and disclosure of information to CIBIL – To be obtained from each and every borrower except staff loan

• Advance against Existing Immovable Proprety: Scheme replaced with OTLS Base Rate Concept: The Reserve bank of India constituted a working group on benchmark Prime Lending Rate (PLR) to suggest changes to make credit pricing more transparent. Based on the recommendations of the group and the suggestions from various stake holders System of Base Rate 1) The Base Rate has replaced the BPLR system with effect from July 1, 2010. 2) The Bank will not lend below Base Rate except to the following categories:-

a. DRI advances b. Loans to the Bank’s own employees c. Loans to the Bank’s depositors against their own deposits. d. In case of crop loan up to Rs3.00lakh, for which subvention is available, the Bank

would charge farmers the interest rates as stipulated by the Government. If the yield to the Bank (after including subvention) is lower than the Base Rate, such lending will not be construed to be violative of Base Rate guidelines.

e. In case of export credit, if as a consequence of interest rate subvention (to specified categories), the interest rate charged to the exporters goes below the base rate, such lending will not be construed to be violative of Base rate guidelines. However, this rate will be subject to a floor rate of 7%.

f. In case of restructured loans if some of the WCTL, FITL, etc need to be granted below the base rate, such lending will not be construed to be violative of Base rate guidelines.

3) COMPONENTS OF BASE RATE:- The Base rate system replaces the existing BPLR system w.e.f. 01.07.2010 and takes into account the following factors/ components for arriving at Base rate:-

Base Rate = a + b + c + d Where a - Cost of Deposits / Funds (or any other benchmark) b - Negative Carry on CRR and SLR c - Unallocatable Overhead Cost d - Average Return on Net Worth

4) The ceiling rate i.e. PLR for loans up to Rs 2 lac stands withdrawn. 5) Applicable lending rate will be arrived at by adding customer specific costs to Base Rate such

as product, tenor and credit risk premiums. IMPLEMENTATION OF BASE RATE BY OUR BANK W.E.F. 01.07.2010 In pursuance of RBI directives to switch over to Base Rate system w.e.f. 01.07.2010. Accordingly, all branches and Regional Offices should take note of the changes in rate of interest consequent upon introduction of Base Rate system w.e.f. 01.07.2010

1. Documentation Aspect:-

• As regards legal aspect of documentation in the light of Base Rate system, the Law Department has advised to change ‘PLR’ to ‘Base Rate’ by hand in the documents and get it authenticated by borrower.

• At the time of renewal the renewal sanction should mention rate of interest linked to Base Rate and acceptance of the borrower to the said sanction be obtained.

• The supplementary agreement at the time of renewal may also indicate the rate of interest linked to Base Rate.



Following catetories of loan could be priced without reference of BR (a) DRI advances (b) Loans to Bank own employees (c) Loan against Bank's own deposit (d) Intt. on subvention on crop loans (e) Intt. on subvention of export credit. (f) Restructured Loans. Stipulation of BPLR as the ceiling rate for loans up to 2 lacs stands withdrawn. Bank is required to review the BR at least once in quarter with the approval of the Board or ALCOs. CHARGES FOR ACCESSING CIBIL DATABASE AND GENERATING CIBIL REPORTS FOR LOANS START DATE: 1st November 2009 GUIDELINES: MANDATORY. COVERAGE: ALL NEW LOANS AND ON RENEWAL OF EXISTING LOANS

(EXCEPTION: ALL LOANS TO STAFF MEMBERS AND FULLY SECURED LOANS AGAINST DEPOSITS / LIQUID SECURITIES)

SCHEDULE OF CHARGES: No SEGMENT Credit Information Report

(CIR) Generated Charges Per CIR +

Service Tax

1 CIR with Combo Scores ` 62.00 + Ser. Tax 2

CONSUMER SEGMENT i.e. Individuals No Match Found Status ` 33.00 + ` Ser. Tax

3 CIR ` 700.00 + Ser. Tax 4

COMMERCIAL SEGMENT i.e. Other than Individuals No Match Found Status NO CHARGES

1. Charges are UPFRONT to be deposited alongwith the formal Loan Application 2. Charges are PER CIR CHARGES for Consumer (with Combo Score) and Commercial Segments,

respectively. 3. Charges waived for Priority Sector Loans upto ` 25000/-

SUMMARY - LOAN POLICY GUIDING PRINCIPLES FOR ENSURING COMPLIANCE OF LOAN POLICY 1. SMALL & MEDIUM ENTERPRISES (SME)

With a view to paradigm shift from small scale industry to small & medium enterprises, the Government of India has enacted the Micro, Small & Medium Enterprises Development Act (MSMED), which was notified on October 02, 2006. The definition of Micro, Small & Medium Enterprises as advised by RBI is as under:-

1.1 Definition of Micro, Small & Medium Enterprises Revised definition is in two parts, separately for manufacturing & service sector. Accordingly, the sub sectors of SME are as under:

1.2 Manufacturing Enterprises (engaged in the manufacture/production, processing or preservation of goods) (a) Medium (manufacturing) Enterprises: Whose investment in plant and machinery

[original cost excluding land and building] is more than Rs. 5 crore but does not exceed Rs. 10 crore.

(b) Small (manufacturing) Enterprises: Whose investment in plant and machinery [original cost excluding land and building] does not exceed Rs. 5 crore.

(c) Micro (manufacturing) Enterprises: whose investment in plant and machinery [original cost excluding land and building] does not exceed Rs. 25 lacs irrespective of the location of the unit.

1.3 Service Enterprises (engaged in providing/rendering of services)

(a) Medium (service) Enterprises: whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered) is more than Rs. 2 crore but does not exceed Rs. 5 crore.

(b) Small (service) Enterprises: whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered) does not exceed Rs. 2 crore.



(c) Micro (service) Enterprises: whose investment in equipment [original cost excluding land and building and furniture, fittings] does not exceed Rs. 10 lacs.

The small and micro (service) enterprises shall include small road & water transport operators, small business, professional & self-employed persons, and all other service enterprises. Bank’s lending to medium enterprises will not be included for the purpose of reckoning of advances under the priority sector. However, advances to Small & Medium Enterprises shall be under thrust area for lending

1.4 Khadi and Village Industries Sector (KVI)

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 form part of small enterprises. Such advances will be eligible for consideration under the sub-target (60 per cent) of the small enterprises segment within the priority sector.

Entry Level For New Borrowers Under Thrust, Restricted, General Industries/Sector

Particular Name of industries/Sector Entry Level for new A/Cs

Infrastructure As defined by RBI IMaCS 1 to 6 Thrust area Drug & Pharmaceuticals, Food

Processing, Electronics & Electrical Equipment, Retail Trade, SME(Mfg & Service) Agro based industry(Other than those in restricted area), Automobile ancillery, logistics, packaging, pharma & chemicals

IMaCS 1 to 6

Restricted area NBFCs(Other than Systemic Important NBFCs) ,Film Industry including dubbing, Tea/Coffee, Jute, Asbestos sheet manufacturing, and Rubber Plantations, Jems & Jwellery

IMaCS 1to 4

General NBFCs (covered under systemic important NBFCs), Software, BPO/Call Centres/ Other Industries/sectors not classified under thrust area or Restricted area of lending

IMaCS 1 to 6

Education Loan upto 7.50 Lac

May be sanctioned on merit irrespective of rating grade

IMaCs 1 to 10

Takeover account 1. Industries falling under general and thrust area

2. Industries falling under restricted area

IMaCs 1 to 5 IMaCs 1 to 3

Permitted Deviation And Authority For Entry Level Ratings:

Nature of industry Entry level Rating

Relaxation Permitted upto

Authority to permit relaxation

Industries/sectors specified under restricted area of financing

IMaCS 1 to 4 IMaCS 5 & 6

All other industries/sectors

IMaCS 1 to 6 IMaC 7

a) Next Higher Authority in respect of proposals falling upto the powers of General Manager. b) ED/CMD/MCB may consider proposals falling within their respective powers.



Group Definition of the Bank

The following shall be the criteria for determining the group concept based upon RBI guidelines:

a) The group to which a particular borrowing unit belongs, may, be decided by bank on

the basis of the relevant information available, the guiding principle being commonality of management and effective control. In so far as public sector undertakings are concerned, only single borrower exposure limit would be applicable.

b) In the case of a split in the group, if the split is formalised the splinter groups will be regarded as separate groups. If bank has doubt about the bona fides of the split, a reference may be made to RBI for its final view in the matter to preclude the possibility of a split being engineered in order to prevent coverage under the Group Approach.

Besides the above the Group/Allied/Sister Concern shall include the following: Two concerns having one or more common proprietors/partner(s); or The proprietor/partner of a firm being director in a Private / Public ltd. company and vice-versa shall be taken as one for the purpose of group concept. Any of the directors of the Private Limited Company is the director of another private limited company; or A Limited Company is subsidiary of another limited Company within the meaning of the companies Act , 1956; or A limited Company is closely held company with substantial interest i.e. more than 20% of the equity share capital of the company is owned by the other concern(s); or Professional Directors of the Board shall be excluded for the purpose of the concept of the Group. The member of an HUF is a proprietor/partner of a concern or director of a private limited company. The facilities sanctioned to the guarantor(s) shall be taken into account for the purpose of exposure per group. However the two concerns shall not be termed as allied/associate/sister concerns merely because of having a common guarantor if the guarantor is not enjoying any credit facilities as individual or as a proprietor/partners/directors of a firm/company. In case the Managing Member of a Samiti / Society or Trustee of a Trust or Managing person of a Club is a proprietor/ partner/ director / Karta of HUF/ Managing Member or Managing Person in any other constituent body of similar nature or in the firm/ company / Society/ Trust etc.

� In determining the Group Concept the definition of group as advised by Reserve Bank of India shall be followed and the guiding principle

Centralised Processing Cell (CPC) Central Processing cells have been established at select Regional Offices for processing of Loan proposals with an aggregate exposure of Rs 50.00 lacs and above. The CPCs cover all fresh cases of Rs 50.00 lacs and above covering all sectors including Corporates, traders, SME etc.However branches headed by Scale-IV and above shall not fall under the purview of CPCs. The basic objective of CPC is to help expediting credit decision on new cases only. CPC shall function under the charge of the second man at the Regional office. Presently 4 CPCs are under operation. Large Corporate Branch With an objective to expedite the decision making process and meet the expectations & needs of corporate clients by cutting down one of hierarchal layers, the Bank has identified 11 large corporate branches. At present proposals involving exposures of Rs 50.00 Crores and above are to be entertained by the Large Corporate branch. All existing borrowal accounts shall continue to be serviced at the LCBs. However, the branch shall concentrate in marketing fresh accounts with credit limits of Rs. 50.00 crores and above. There is no bar in accepting other accounts as well.



Proposals with credit limits below Rs.50.00 crores shall continue to be dealt with as per existing system. Fresh proposals of Rs. 50.00 crores and above be sent by branch directly to Head Office with a copy to Regional Office. Mid Corporate Branches The bank has adopted a strategy for marketing, appraisal, credit delivery and ensuring credit quality in the MID Corporate portfolio of the bank. Mid Corporate accounts have been defined by our bank as accounts with limits of Rs. 5.00 crores and upto and inclusive of Rs.50.00 crores. At present our bank has identified 38 Mid Corporate Branches spread over 24 Regions to market sound borrowal accounts under this segment. To give a focused attention, there is a separate wing in the Credit Department at Head Office headed with separate General Manager (SME & Mid Corporate) as the Head. In case of housing loans valuation shall be done as under: � In case, constructed house/flat is purchased, the consideration mentioned in the sale deed shall continue to be the value of the house for one year for the purpose of security. However it shall be got revalued after one year from the approved valuer on the panel of the Bank. The value as assessed by the valuer shall be treated as value of the property for security point of view. � In case, the house is constructed on the plot or semi-built house is fully constructed, the valuation as per guidelines mentioned in the circular under reference shall be got done from the approved valuer on the panel of the Bank after completion of the house and value assessed by the valuer shall be treated as value of the property for security point of view. � Thereafter, the above securities shall be reviewed thereafter once in three years in accordance with circular No-HO/Risk Mgmt/42/2006-07/587 dated 20.03.2007 till the LTV (loan to value) comes down to 75% or less. � An undertaking shall be obtained, at the time of documentation, from the borrowers who are availing housing loan at margin of less than 25% authorizing the Bank for getting the property revalued at their (borrowers') cost from the approved valuer of the Bank. The cost of such valuation shall be debited to the account of the borrower. The Structured Mezannine Credit Facility (SMCF) The Structured Mezannine Credit facility (SMCF) has been allocated funds of Rs. 250.00 crores by MCB vide MCR no.C-40 dated 17.03.07. SMCF has been established primarily to provide mezzanine funding to Indian Companies to enable them to scale up size of their operations by exploring opportunities during the current phase of growth in the Indian economy.

Salient features of the facility are as under: The facility is sponsored by our Bank, Bank of India , Canara Bank, Indian Bank and IL&FS with a commitment of Rs. 250.00 crores from each.

� L&FS would act as Facility manager for the facility. � Our share with regard to exposure to the borrower shall be 9.43% of the total Mezannine

credit requirement. � The designated branch to administer the facility shall be E-Block, Connaught Place, New

Delhi. � CMD shall be empowered to nominate any other branch to administer the facility as and

when required. � The sanction of the loan to the borrowers shall be as per operative guidelines/policy of

bank issued from to time. Pooled Municipal Debt Obligation Facility (PMDO) The Pooled Municipal Debt Obligation Facility (PMDO) has been allocated funds of Rs.150.00 crore by the MCB vide MCR No.C-31 dated 29.09.2006. This facility intends to create an environment where Urban Local Bodies, State Governments and other stakeholders would embark on a series of reforms to improve credit worthiness and bank-ability of urban infrastructure projects. PMDO would provide funds by way of term lending to Municipal Corporations, Urban



Local Bodies, Local Authorities, etc. for developing Urban Infrastructure projects across cities in India on an integrated basis

Salient features of the facility are as under:-

� Sponsors comprise of IDBI Bank, India Infrastructure Finance Company Limited (IIFCL), Canara Bank and Infrastructure Leasing & Financial Services Ltd. (IL&FS).

� The facility would be managed by IL&FS Urban Infrastructure Asset Managers Limited (IUIAML).

� Our pro-rata share in this facility works out to 5.45%. � The designated branch to administer this facility is M-Block, Connaught Place, New Delhi � CMD shall be empowered to nominate any other branch to administer the facility as and

when required. � The sanction of the loan to the borrowers shall be as per operative guidelines/policy of

bank issu Loan Applications for lending to MSE Sector The disposal of loan applications relating to MSE Sector shall be as follows:

Category of Borrower and Size of Limit

Time norms for disposal

Loans upto Rs. 25,000/- Within two weeks of receipt of loan application provided it is complete in all respects and duly accompanied by a check list

Loans upto Rs. 5.00 Lac Within four weeks of receipt of duly completed loan application provided it is complete in all respects and duly accompanied by a check list

All such Loan applications that are complete in all respects and accompanied by a checklist should also be acknowledged by the bank branches on the same day i.e. on the day the application is received by the branch. However, it should be ensured that loan applications provided to the prospective borrowers should also include check-list of papers /documents required for appraisal of the proposal. Loan Applications above Rs.5.00 Lac

Proposal for Export Credit Non-Export

Credit

Sanction of fresh/enhancements 30 days 45 days

Renewal of existing credit limits 21 days 30 days

(*)Sanction of adhoc credit facilities 7 days 15 days

(*) Sanction of adhoc credit facilities shall be subject to guidelines issued from time to time The time frame indicates the maximum number of working days from the date of receipt of loan application within which the decision has to be conveyed to the customer.

Rejection Of Loan Proposals The loan applications pertaining to SC/ST, SME and Exports cannot be rejected by the sanctioning authority under whose powers the same falls. Only the next higher sanctioning authority can reject the same. Branch Managers may reject applications in such cases provided these are verified subsequently by the Regional Heads. Debt Service Coverage Ratio

� In case of term loans, net debt service coverage ratio, i.e. exclusive of interest payable, which shall normally not go below 2. Minimum Average Gross DSCR of 1.5:1 will be considered as reasonable requirement for new as well as existing connection.

� In case of highly capital intensive projects/ infrastructure projects, DSCR up to 1.2:1 may be considered on case to case basis. This is In view of the long gestation period and time



required in generation of cash flows in case of capital intensive units and infrastructure projects, the relaxation shall take care of specific cases where the same is warranted.

� Similarly, risk factor is relatively lower where repayments are assured by way of annuity payments from the Government Department / lease rentals. In such cases, DSCR upto 1.3:1 may be considered.

� Besides, in many large construction contracts/ real estate projects repayment is projected through other avenues such as advance/lease payments. In such cases cash flows from such sources may also be taken into consideration while calculating DSCR.

8.2.3 Relaxation in Benchmark Ratios (other than takeover accounts) Financial Ratio Relaxed Benchmarks by respective Sanctioning Authority

Current Ratio

Upto 1.17:1 (Working Capital limits beyond Rs.5.00 crores) Upto 1.10:1 (Working Capital limits upto Rs.5.00 crores) The sanctioning authority may take a view and satisfy himself / herself while accepting a lower current ratio and the reasons may be suitably recorded. While taking a final view on the current ratio and/or projected level of current ratio, the sanctioning authority may examine various options to improve the ratio such as exploring possibility of injection of additional funds and / or ploughing back of profits, stipulations for not declaring dividend / non withdrawal of profits, reduction in the level of non-current assets and liquidation of investments outside business, if any, within a reasonable time.

Debt Equity Ratio 3:1(other than SME, capital intensive industries ,infrastructure projects) 4:1 (in respect of SME, capital intensive industries ,infrastructure projects)

Leverage Ratio 5:1(other than SME, capital intensive industries ,infrastructure projects and trading concerns) 6:1 (in respect of SME, capital intensive industries ,infrastructure projects and trading concerns)

DSCR Only Regional Heads are permitted for relaxation in DSCR for Branch/RO cases . For Head Office -respective sanctioning authority.

The relaxation in Benchmark Ratios as approved in the Loan Policy shall be subject to the following conditions:

CREDIT RISK MANAGEMENT Introduction: Credit Risk Management Department is being headed by General Manager. The various committees viz. Asset-Liability Management Committee, Credit Risk Management Committee and Operational Risk Management Committee have been set up as per RBI guidelines and these are operational. The various policies viz. Loan Policy, Credit Risk Management Policy, ALCO Policy, Operational Risk Management Policy etc. have been prepared and approved by the Board of Directors. These policies are reviewed from time to time looking to the need of the bank , RBI/Govt. guidelines on the subject. The bank has become Basel II compliant as on 31.03.09 in terms of the new capital adequacy framework guidelines issued by the Reserve Bank of India. The bank is presently following standardized approach for credit risk and is gearing itself to adopt the advanced approach in due course. Credit Risk Rating Models developed by IMaCS: Credit Risk Rating Models developed by IMaCS model has been implemented exclusively w.e.f 01/08/2009 .The credit rating of borrowers shall be done on the 10 different models provided by M/s IMaCS. There are eight models (1 to 8) for the corporate and two are for the retail and agriculture sector (9 & 10 respectively) which caters the requirement of different fields/proposals of our credit portfolio as mentioned below:

S.NO Rating model Criteria Financial Data Requirement 1 Large Corporate (LC) Turnover >=100 cr

Three years audited financial statement

2 Small & Medium Enterprises (SME)

Turnover < 100 cr (manufacturing)




3 Small Business & Service

(SBS) Turnover < 100 cr (trading & services sector)


4 NBFC Activity based Three years audited financial statement

5 Banks Activity based Three years audited financial statement

6 Green field infrastructure project (Infra)

New project (infrastructure only)

One year projected financial statement

7 Green field real estate project (RE)

New project (real estate only)


8 Green field project (GF) New project (other than infra & real estate only)


9 Retail 1.Home Loan 2.Education Loan 3.Personal Loan

(Loan To Individuals) Housing loan Education loans Any retail other than home/education

Income & net worth Income & net worth Income & net worth

10 Agriculture

1.Agri Loan(Term Loan) 2.Agri Loan Working Capital) 3.Allied Loan (Term Loan) 4.Allied Loan (Working Capital)

(Loan To Individuals) Agriculture Loan Depending On The Type Of The Facility/ Purpose Of Loan

Income & net worth

Apart from the above IMaCs models, a separate in house model has been created for rating of accounts under the Oriental Traders Loan Scheme.

Grading Pattern Used In The IMaCS Credit Risk Rating System The credit rating under IMaCS models is based on rating grade of 1 to 10.The risk level and its description is given in the following table

Rating grade Risk level Description 1 Minimal risk Highest quality, with minimal risk. 2 Modest risk Highest quality and are subject to very low credit risk 3 Average risk Upper medium grade and subject to low credit risk

4 Acceptable risk Adequate credit quality and subject to Average credit risk.

5 Acceptable with care

Moderate credit quality and may posses speculative characteristics.

6 Management attention

Speculative elements and are subject to high credit risk.

7 Special care Speculative and are subject to high credit risk 8 Substandard Poor standing and are subject to very high credit risk 9 Doubtful Highly Speculative and are likely to become default in the

near future. 10 Loss Lowest and are typically in default or close to default

As per the final Credit Rating Model document, the investment grade quality of debt ceases to exist when the risk score of a Borrower crosses over to eight and above. Therefore, the bank would henceforth consider investment grade from “1 to 7”. The grades 8,9 and 10 will be non-investment grades.



EXTERNAL RATING OF BORROWAL ACCOUNTS WITH EXPOSURE (FB+NFB) EXCEEDING RS.10 CR FROM OUR BANK. As per the existing guidelines of Reserve Bank of India on implementation of the New Capital Adequacy Framework dated July 1, 2008, all the corporateborrowal accounts with aggregate exposure (fund based + non fund based) exceeding Rs.50 crore are to be assigned risk weights as per their external rating by approved credit risk rating agencies (ICRA, CARE, CRISIL & FITCH) for the financial year 2008-09. In case these Corporate borrowal remains unrated, it will attract risk weight of 150%. With effect from 01.04.2009, all fresh sanctions or renewals with exposure (FB+NFB) exceeding Rs.10 Cr have to be externally rated. As a temporary measure, the risk weight on unrated claims has been reduced from 150% to 100% by RBI vide their circular dated 15.11.08 due to recession and slowdown in the economy but it may be increased to 150% later on. Accordingly the exposure will have to be priced for factoring in the higher risk weight as well as higher capital requirement. All the eligible borrowers with total exposure (fund based + non fund based) exceeding Rs.10 crore from our bank are to be rated so that the bank can get the benefit of lower risk weight for capital calculation. Penal Rate of Interest / Prepayment Penalties Penal interest over and above the normal interest is applicable in following cases:

Default in repayment of loan installments and / or servicing of monthly interest or as stipulated in the sanction.

2%on irregular portion

Overdrawing / excess drawings in CC I ODaccount beyond the available drawing power or sanctioned limit including ad hoc/ temporary sanctions.

2% on irregular portion

Overdue Bills (Demand / Usance). 2% for the overdue period.

Non-compliance of terms of sanction 2% till compliance of terms of sanction. Minimum for one month.

Non-submission of Stock / Book Debt Statements, QIS Statements within the stipulated time period.

1% from due date till submission of the such statement, subject to minimum one month

Adhoc Limits (Except Exporters finance & limits up to and inclusive of Rs.2.00 Lac.)

1% on the adhoc portion for the stipulated period of facility.

Non-submission of requisite data for renew/review after the validity period of last sanction / review.

1% till submission of complete renewal proposal on entire outstanding.

Devolvement of LC / BG 2% on the irregular portion / or amount not reimbursed to the bank.

Irregularity in case of Advances against Bank Deposits / other Paper securities like NSC/ LIPs

2% on the irregular portion is to be charged if the outstanding amount is within the value of security (including accrued interest). In case the outstanding exceeds the value of security, interest as applicable to clean advances shall be charged.

Prepayment of Term Loans( Taken over by other banks) 1% on the outstanding balance-One time. In case of Housing Loans no penalty.

a) Wherever, the limits of Clean Overdraft has been set up, the rate of interest shall be charged @Base Rate + maximum Spread on monthly rest. However in case the account is overdrawn because of any irregularity for which penal interest is to be charged, and the nature of overdrawing is clean in nature, the maximum rate of interest shall be Base Rate + Maximum Spread + Penal Interest. b) In cases where the penal rates are applicable for more than one type of default, the aggregate of such penal rates shall not exceed 2%p.a subject to the condition that the



overall rate of interest including penal charge shall not exceed Base Rate plus Maximum spread plus 2% .. c) No penal charge should be charged for loans under priority sectors up to Rs.25, 000/-. While communicating the sanction of limit to the borrower it must be ensured that 'penal interest clause' is stipulated under the terms of sanction. d) No penal interest is to be charged after the date of classification of an account as NPA. Branch Certificate of Compliance of Terms & Conditions of Sanction (BCC) As regards the cases upto Rs.1.00 crore, the Branches shall compile BCC without being vetted by the Local Legal Counsel/ Legal Retainer for verification of the Inspecting officials. The branches shall prepare BCC in all cases, even where limits have been sanctioned under branch powers for verification of the same by inspecting officials.

All the branches shall submit the BCC of the documents executed by the borrower to the respective authority as mentioned below within 15 days of the release of the facilities. The branch should further ensure that discrepancies pointed out by Regional Office are rectified within a period of 30 days.

Staff loans shall be exempted from legal vetting of documents. However, fresh/enhancement of all advances under commercial real estate including hotels, &, lease rentals, trusts / societies shall be vetted by Legal Retainer at RO before release of facility, irrespective of the amount sanctioned. System Of Visit / Inspection Of Unit Of Borrower By Branch/Regional Office / Head Office For Inspection Of Securities Charged To The Bank System of unit visit / Inspection as regards post-sanction visits, as reviewed and devised in consultation with Inspection & Control Department shall be as under:

Purpose of the visit Monitoring and control to ensure safety of Bank’s advance, check depletion or deterioration of securities charged to the Bank.

Type of accounts Standard A/Cs & Special Mentioned A/Cs & NPA Accounts. Types of borrowers All categories of borrowers including Trading, Industrial,

Service Sector etc. (except retail schemes where the procedure prescribed for the particular scheme should be followed).

Types of facilities Term Loan and working capital facilities where fixed assets / current assets are charged as prime security.

Limits under the discretionary powers of

Documents to be vetted by (before disbursement)

BCC to be cleared by

Local Legal counsel for limits above Rs.1.00 crores and upto Rs.5.00 crores

Branch Incumbent Branch Incumbent

Legal Retainer for limits above Rs.5.00 crores in consultation with R.O.

Branch Incumbent

Local Legal counsel for limits above Rs.1.00 crores and upto Rs.5.00 crores

Regional Head Regional Head

Legal Retainer for limits above Rs.5.00 crores in consultation with R.O.

Regional Head

Head Office Legal Retainer at R.O. Regional Head



Purpose of the visit Monitoring and control to ensure safety of Bank’s advance, check depletion or deterioration of securities charged to the Bank.

Banking arrangements Sole Multiple (in case the multiple financing, banks have an agreed arrangement for visits, the same shall be followed) Consortium (as decided by the consortium members).

Who shall conduct the visit

Sl.No. Limit(FB+NFB) Official who should verify details of property /conduct unit visit.

1. Upto Rs. 5 lac Any officer of the branch.

2. Over Rs. 5 lac and upto Rs. 25 lac

An officer of Scale III or above. In case Scale III officer is not posted in the branch – by loan officer or branch incumbent.

3. Over Rs. 25 lac Branch Incumbent himself and/or Loans Officer .

In order to avoid multiplicity of visits, the above-mentioned Officials shall conduct such visits along with the Inspecting Officials/ Stock Auditors/ Concurrent Auditors RO/HO Officials may also conduct unit visit wherever considered necessary.

Periodicity of the visit For all borrowal accounts having Fund Based limits and Non-Fund Based limits (where fixed assets/ current assets are charged as prime security – at least once in three months for Standard A/c and at least once in a month for Special Mention Accounts. In respect of NPA A/Cs the periodicity will be decided by the sanctioning authority keeping in view availability of security and other related aspects.

Maintenance of unit visit register

Visits shall be recorded in unit visit register to be maintained at the Branch for all visits conducted by Branch / Inspecting officials.

Scrutiny of report and follow-up action

Main observations during the visit shall be recorded in the register and a special report of the irregularities of serious nature be prepared and put up to the Branch Incumbent and respective Regional Office for further follow-up and monitoring. Immediate steps for rectification/ removal of discrepancies shall also be given.

Guidelines For Submission Of Stock Statements The prescribed Stock Statement incorporates the details of book debts, sales and purchases, creditors during the month as such the purpose of MSOD is served through verification of stock statement by the visiting official/branch incumbent. Hence, the stock statement is an effective tool for monitoring the working capital facilities. It shall be ensured that the stock is verified and the stock statement is checked by visiting official(s)/ branch incumbent at the prescribed periodicity. The periodicity as approved by the Board of Directors for submission of Stock / Book Debts Statements is Monthly irrespective of the size of the limit unless otherwise permitted by any specific approved loan schemes of the bank. The statement of stocks and book debts is to be submitted in the prescribed performa every month by the end of third week. e.g. statement pertaining to September shall have to be submitted by the borrower by 21st of the succeeding month.



In cases where DP has been advised by the Lead Bank the stock statement in the performa of the Lead Bank may be accepted without insisting on the performa of our Bank. Once a year and as on date of Balance sheet of the company following should be on record: Stock Statement Agewise Debtors list (<3M,3-6M and >6 months) Appraising officer should scrutinize the detailed stock statement as on date of Balance sheet of Company alongwith Balance sheet . 26.4.1 Guidelines for calculation of Drawing Power:

a)The method for calculation of DP against stocks and receivables etc. has been given in stocks statement / statement of book debts devised by the Head Office for fund based working capital limits up to Rs.10.00 Lac (STM-42A) and above Rs.10.00 Lac (STM-42B along with annexure) circulated vide HO circular No HO/ADV/25/2005-06/303 dated 11.10.2005.

b) Advances made/ given to suppliers are to be added to the value of stocks. Similarly, the advances received from buyers, if any, are to be reduced for the purpose of calculation of drawing power. c) Stocks sent by the borrower for processing / job work etc. to other units shall be added in the value of stocks and stocks received for processing/ job work from other units shall not to be included, provided that the borrower maintains proper record of the same and produces evidence to this effect to the full satisfaction of the bank officials. d) Further, the facility against stocks and receivables should be sanctioned in a combined manner for all practical purposes viz. secured by way of hypothecation of stocks and receivables. The said system is to be followed whenever the facilities are renewed. e) The monitoring of stock should be done carefully through MOR, personal visits,

QIS, stock audit by the independent Chartered accountant etc. f) Branches shall apply a uniform margin of 25% on stocks and book debts within

their powers. However, discretion for further reduction in the prescribed margins shall continue to be vested with the Regional Heads as specified in the discretionary power booklet.

g) The sanctioning authority must clearly spell out the age of book debts to be taken into consideration for calculation of DP, which should normally be restricted to 90 days and should in no case exceed 180 days. The age should be appraised keeping in view of the nature of business/activity of the borrower vis-à-vis realization of book debts. Statement of book debts shall be verified by a Chartered Accountant at half-yearly intervals for working capital limits exceeding Rs. 1.00 crore and at quarterly intervals for limits above Rs. 5.00 crore.

. 26.5 Monitoring Officer’s Report (MOR) Submission of Monitoring Officer’s Report by the bank’s nominated Independent Monitoring Officer is another tool for periodic monitoring of the borrower’s operations. The Monitoring officer will monitor all type of facilities for working capital, term Loan and non-fund based limits so as to inter-alia monitor: a) Limits are being reviewed / renewed in time. b) End use of funds by the borrower. c) BGs are reversed well in time as per procedure d) Operation of LCs is as per terms of sanction. e) Commission on LCs/BGs etc is being charged as per terms of sanction. f) Other observations as regard to operation of account, pending inspection irregularity, verification of stock and submission of report shall continue to be reported as per system in vogue.



g) Regional Offices shall appoint monitoring officers for borrowers enjoying limits under Head Office and Regional Office powers and the Branch Incumbent shall appoint the monitoring officers falling under branch powers. h) The monitoring officer shall also work as Relationship Manager with the borrower and look after the affairs of the borrower with regard to financial needs and service related matters.. While issuing letters appointing Monitoring officers, Regional offices/Branches shall also specify the same. i) The eligible accounts and the periodicity for submission of Monitoring Officer Reports shall be as under:

Nature of account Sanctioned limits

(Fund & Non Fund) Periodicity for Submitting MOR

Standard Above Rs.5.00 crores Quarterly SMA/Restructured/Accounts With Credit Rating 6 and below/And any other account showing signs of weakness

Above Rs.50.00 lacs Monthly

j) The report in the prescribed format covers review of the operations in the account during the quarter/month under reference, documentation infirmities, pending inspection/audit irregularities, submission of financial data by borrowers etc. k) In case of project finance, MOR should include status of implementation of project, the amount released, whether there is any time and/or cost overrun, promoter’s contribution bought, other terms and conditions incident to project complied e.g. environmental, pollution, Ministry(Govt. ) clearances cleared and are uptodate, whether COD completed etc. l) The monitoring officer appointed shall also have to confirm that the unit visit has been made to verify stocks/other assets and submit his observations in the report. The unit visit shall also be conducted invariably in case assets have been charged to the Bank. m) The monitoring officer shall submit his report with his observations to the Branch Incumbent . n) The report containing the monitoring officer’s observation as well as the views of the Branch Incumbent shall be submitted as per the following schedule who will follow up with the branch for rectification of all shortcomings observed.

Sanctioning Authority Authority to whom the MOR is to be

submitted Branch Incumbent Branch Incumbent Regional Office Regional Office Head Office Regional Office and Head Office

simultaneously

o) The copies of reports for all eligible accounts submitted by the monitoring officer shall be kept on record and to be placed before the inspecting officials as and when required.

p) Since the reference of unit visit is also to be mentioned in the MOR, unit visit done by MO/any other official of the bank solely or alongwith concurrent auditor/stock auditor/any other inspecting officials may be mentioned in the MOR to avoid multiplicity of visits. It may however be noted that such visit report should not be more than 3 months old.

Quarterly Information System (QIS) The QIS provides for the quarterly review of borrower’s operations vis-à-vis the projections along with half-yearly review of Balance Sheet/Funds Flow. The prescribed forms to be submitted by the borrower are as follows: -



Form No.

Periodicity & particulars of the form

Purpose To be submitted by

Applicable to

I. Quarterly estimates of the turnover, current assets and current liabilities for the ensuing quarter

Fixing of quarterly operating limits for the ensuing quarter

One week before the start of the quarter

Borrowers enjoying Fund Based working capital limits of Rs. 5.00 Crore and above from banking system.

II. Actual quarterly performance for the previous quarter vis-à-vis the estimates given in Form – I

Review of quarterly performance

Six weeks from the date of closure of the quarter

Borrowers enjoying Fund Based working capital limits of Rs.5.00Crore and above from banking system

III. Half yearly Balance Sheet and Fund Flow Statement

Review of Fund Flow and Half Yearly Balance Sheet

Two months from the date of half year

Borrowers enjoying Fund Based working capital limits of Rs.5.00Crore and above frombanking system

System Of Stock Verification (Stock Audit) By Independent Chartered Accountants (CA) The stock audit should be done for all those accounts as per the following eligibility and periodicity:

Category Periodicity Fund based working capital limits Rs. 2 crores and above * Once in a year Restructured/NPA accounts having Fund based working capital limits Rs. 1 crores and above*

Once in a year

* Fund based working capital (including DA/LC Limit facilities are to be considered) Delegated powers for Restructuring(except CDR): SL.NO PARTICULARS DELEGATED AUTHORITY 1 Restructuring of cases sanctioned by

A Branch Incumbent Next Higher Authority at Regional Office B Second Man at Regional Office Regional Head C Regional Head Competent next Higher Authority at Head

Office D Head Office Respective delegated authority at Head Office

2 Renewal /Review of restructured accounts

By the respective sanctioning authorities within their normal delegated powers irrespective of restructuring authority

3 Granting of fresh/enhancement/additional /adhoc facilities in restructured accounts WITHIN ONE YEAR of restructuring

DELEGATED AUTHORITY*



3.1 Accounts falling under the normal delegated powers of

A Branch Incumbent Next Higher Authority at Regional Office B Second Man at Regional Office Regional Head C Regional Head Competent next Higher Authority at Head

Office D Head Office Respective delegated authority at Head Office E *However, while exercising powers at 3.1 above, the following be ensured :

Restructured account is performing The restructured terms and conditions have been complied . Sales are showing satisfactory growth vis a vis estimates. The borrower is making operating profits Financials and Conduct of account are satisfactory

3.2 Granting of fresh/enhancement/additional /adhoc facilities in restructured accounts AFTER ONE YEAR of restructuring

As per the normal delegated authorities of Branch Incumbents/Regional Offices/Head Office provided the borrower has fulfilled the restructured terms and conditions for a minimum period of one year from the date of restructuring and the terms and conditions as mentioned in clause 3.1E are complied with. In case conditions are not fulfilled –next higher authority. However, a copy of the appraisal note granting the facilities shall be forwarded to Regional Office/Head Office alongwith the control returns (STM41/STRO-16) for review .

4 GROUP ACCOUNTS: Sanction related to accounts which have not been restructured but whose Group Accounts have been restructured and/or fresh/additional facilities have been sanctioned by the Restructuring Authority at RO/HO

Within The Normal Delegated Powers Irrespective Of Restructuring Authority

As Bank has a scheme namely Oriental Trade Loan Scheme, the existing paragraph on Oriental Business Loan Scheme (OBLS) is

deleted from the Loan Policy.

Revised Guideline

The Exposure Ceilings for Single Borrower and Group Borrowers based on the capital funds of the Bank as on 31.03.2011 is revised

as under:- (Figure in Rs. Crore)

Revised Guideline The revised Exposure Ceilings for Unsecured Exposures based on the gross advances of the Bank as on 31.03.2011 is as below:-

(Figure in Rs.

Crore)

Unsecured Exposure Exposure Ceiling Limit as % of

Gross Advances

2010-11

(Existing)

2011-12

(Revised)

Unsecured Guarantees

Unsecured Advances

Total Unsecured Exposure

Unsecured Guarantees + Unsecured

Advances shall not exceed 35% total

o/s adv.

29465 33894



CENTRAL ELECTRONIC REGISTRY UNDER THE SECURITISATION AND RECONSTRUCTION OF

FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 2002

Background Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12, Government of India, Ministry

of Finance notified the establishment of the Central Registry. The objective of setting up of Central Registry is to prevent frauds

in loan cases involving multiple lending from different banks on the same immovable property. This Registry has become

operational on March 31, 2011. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India

(CERSAI), a Government Company licensed under section 25 of the Companies Act 1956 has been incorporated for the

purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

The records maintained by the Central Registry will be available for search by any lender or any other person desirous of

dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of

same property as well as fraudulent sale of property without disclosing the security interest over such property. It may be noted

that under the provisions of Section 23 of the SARFAESI Act, particulars of any charge creating security interest over property

is required to be filed with the Registry within 30 days from the date of creation.

Revised Guideline Branches are advised that transactions relating to securitization and reconstruction of financial assets and those relating to

mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under

the SARFAESI Act, are to be registered in the Central Registry within 30 days from the date of creation. Specific Compliance

of the same shall be sent along with the BCC.

For detailed guidelines on Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets And

Enforcement of Security Interest Act 2002, refer to Bank circular no. HO/RMD/ 25 /2011-12/ dated 17.06.2011.

RISK WEIGHT IN CASE OF HOUSING LOANS

Revised Guideline

Existing Guideline Revised Guideline

In terms of circular DBOD.No.BP.BC.83/ 21.06.001/ 2007-08

dated May 14, 2008

• the risk weights on residential housing loans with LTV ratio

up to 75 per cent are

� 50 per cent for loans up to Rs. 30 lakh and

� 75 per cent for loans above that amount.

• In case the LTV ratio is more than 75 per cent, the risk weight

of all housing loans, irrespective of the amount of loan, is 100

per cent.

As per RBI Circular No. 2010-11/324 DBOD.No.BP. BC.

69 /08.12.001/2010-11 dated December 23, 2010

• The risk weights on residential housing loans with LTV ratio

up to 75 per cent are

� 50 per cent for loans up to Rs. 30 lakh and

� 75 per cent for loans above that amount.

• The risk weight of all housing loans, in case the LTV ratio is

more than 75 per cent, irrespective of the amount of loan is

100 per cent.

• The risk weight for residential housing loans of Rs. 75 lakh

and above, irrespective of the LTV ratio, will be 125 per cent

to prevent excessive speculation in the high value housing

segment.

Cut off limit for LRM

The revised cut-off limits for identification of the Large Borrowal Accounts which have to be subjected to Loan Review Mechanism

with effect from 01.04.2011 will now be as follows.

All ‘fresh’ sanctions of Rs.3.00 Cr. and above.

• Accounts with ‘existing’ exposures of Rs.3.00 Cr & above in case where Internal Credit Risk Rating is:

� LC-6 & below

� SME-6 & below

� NBFC-6 & below

� SBS-6 & below.

In all other cases accounts with ‘existing’ exposures of Rs.5.00 Cr. & above.

2. GOLD CARD SCHEME FOR EXPORTERS

The Government (Ministry of Commerce and Industry), in consultation with RBI had indicated in the Exim Policy 2003-04 that a Gold Card Scheme would be worked out by RBI. The salient features of the Scheme as already circulated to the branches are as under: • All creditworthy exporters, including those in small and medium sectors with good

track record would be eligible for issue of Gold Card by individual banks as per the criteria to be laid down by the latter;

• Requests from card holders would be processed quickly by banks within 25 days / 15 days and 7 days for fresh applications / renewal of limits and adhoc limits, respectively;



• In-principle limits would be set for a period of 3 years with a provision for stand-by limit of 20 per cent to meet urgent credit needs. However an annual review of such accounts shall be done.

• Card holders would be given preference in the matter of granting of packing credit in foreign currency;

• HO/ RO may consider waiver of collaterals and exemption from ECGC guarantee on the basis of card holder's creditworthiness and track record.

• Concessional ROI on post shipment rupee export credit may be extended from 90 days to 180 days.

3. INFRASTRUCTURE FINANCING Definition: Any credit facility in whatever form extended by lenders (i.e. Banks, Fls or NBFCs) to an infrastructure facility as specified below falls within the definition of "Infrastructure lending" i. A road, including toll road, a bridge or a rail system; ii. A highway project including other activities being an integral part of the highway

Project; iii. A port, airport, inland waterway or inland port; iv. A water supply project, irrigation project, water treatment system, sanitation

and sewerage system or solid waste management system; v. Telecommunication services whether basic or cellular, including radio paging,

domestic satellite service (i.e. a satellite owned and operated by an Indian company for providing telecommunication service), network of trucking, broadband network and Internet services.

vi. An industrial park or special economic zone. vii. Generation or generation and distribution of power. viii. Transmission or distribution of power by laying a network of new transmission or

distribution lines. ix. projects involving agro-processing and supply of inputs to agriculture. x. Projects for preservation and storage of processed agro-products, perishable

goods such as fruits, vegetables and flowers including testing facilities for quality; and

xi. Educational institutions and hospitals. xii. Laying down and/or maintenance of gas, crude oil and petroleum minerals

including city gas distribution network. xiii. Any other infrastructure facility of similar nature

4. Processing / Appraisal of Loan Proposals: Proper analysis of balance sheet should be made and the balance sheet itself should not be more than six months old. In case the audited balance sheet is more than six months old, provisional results for latest available date should be obtained and analyzed. As per the system, Tax Audit is compulsory where the turnover in a financial year is above Rs. 60.00 lacs (Receipts above Rs. 15.00 Lacs in case of professionals). As such, it is necessary to obtain audited financial statements of non- Corporates also in following cases: 1. Enjoying working capital limits above Rs. 10.00 Lac 2. Turnover of more than Rs. 60.00 Lac in case on non- professionals and receipts

above Rs. 15.00 Lac in case of professionals. 5. Turnover Method (Up to Rs. 5.00Crore):

The working capital limits of the borrowers with working capital limits up to Rs.5.00 Crores in case of SME units/other units is computed on the basis of 20% of their realistic projected turnover subject to the condition that a minimum margin of 5% of turnover shall be brought in by the promoters/borrowers as their own contribution. The MPBF system shall continued to be followed for all borrowers with working capital limit above rs.5 crore.

6. Guidelines for Review of Term Loan Accounts a) Working Capital facilities sanctioned along with Term Loans (irrespective of the outstanding

in the Term Loan)



In case of Term Loans sanctioned along with Working Capital facilities, the review of Term Loan should be undertaken along with the Working Capital facilities at the time of annual review.

b) Term Loans (standalone) with outstanding of Rs.50.00 Lacs and above. In cases where Term Loans have been sanctioned on standalone basis and the outstanding at the time of review is Rs. 50.00 lacs and above, the sanctioning authority shall ensure that the review of such Term Loans is undertaken annually without fail.

c) Term Loans (standalone) with outstanding of less than Rs. 50.00Lacs. The review of all Term Loans sanctioned on a standalone basis with outstanding of less than Rs. 50.00 lacs at the time of review shall be undertaken by the respective sanctioning authority on a consolidated basis i.e. all such term loans taken together in a statement form as per the prescribed format.

Term Loans sanctioned by HO (Standalone TL) be also reviewed by Regional Head. Term Loans running irregular Wherever any of the Term Loans are running irregular, the matter should be reported to the sanctioning authority and prompt corrective action should be initiated immediately followed by continuous monitoring till such time the account becomes regular.

IMPORTANT POINTS OF LOAN POLICY ARE SUMMARIZED AS UNDER: Infrastructure Financing: The following activities have been added to the definition of infrastructure � An industrial park or Special Economic Zone � laying down and /or maintenance of gas, crude oil and petroleum pipelines � And any other infrastructure facility of similar nature. Lending Principles for Infrastructure Financing:

1. Average DSCR not below 1.2:1 during tenure of loan. 2. DER shall not exceed 3:1. 3. Leverage Ratio shall not exceed 6:1 4. International credit rating - minimum acceptable entry level rating IMaC 6 5. Exposure in A/Cs with credit rating below 7 shall not be taken without the approval of

MCB. 6. All proposal of infrastructure finance shall be submitted at HO except – (a) Construction

relating to project involving Agro Processing & Supply of inputs to Agriculture (b) Construction for preservation of storage of processed agro products, perishable foods, fruits, flowers, vegetables including testing facility for quality.

7. BM shall have no powers 8. RH may consider Educational Institutions, Hospitals, total FB & NFB exposure per borrower

shall not exceed 6 times of its own net worth. Project Financing In case of large size projects of above Rs. 50.00 Crores, the funding requirements would necessitate joint financing by other banks / financing under consortium or syndication arrangements. Willful Defaulters In addition, the entrepreneurs / promoters of companies where bank have identified siphoning/ diversion of funds, misrepresentation, falsification of accounts and fraudulent transactions shall be debarred from institutional finance from the Bank for floating new ventures for a period of 5 years from the date, the name of the willful defaulter is published in the list of willful defaulters by RBI Authority for Renewal/ Review Of Cases � All fresh proposals from borrowers whose group concerns have been classified as NPAs

with other Banks/ Financial Institutions shall be placed before the Management Committee of the Board for consideration and sanction.



� However, the renewal / review/ enhancement or additional type of limits to such clients shall be considered by the functionary in whose delegated powers, the proposal falls

In case of HUF the exposure limit shall be as applicable to individual i.e. 30 crore Maturity Profile for Project Term Loan/Infrastructure Term Loan a. Term Loans are essentially long-term exposures compared to working capital facility.

These would be governed by Asset Liability Management (ALM) guidelines of RBI. The term loan maturity profile (excluding Retail Schemes / Housing Loans) should not generally exceed 7 years However, Regional Heads and functionaries at Head Office may permit term loans having repayment period up to 10 years (Including gestation period) on case to case basis, where cash flow justifies such longer repayment period.

b. In the cases of financing for infrastructure, the term loan maturity period may go up to 15 years or more. But In case the repayment period is over 15 years it may be considered by the sanctioning authority on case to case basis.

c. However, the cases where repayment of Term Loan is beyond 7 years, the information of such cases shall be submitted by respective Regional Offices to Credit Administration Department at HO which shall place the consolidated information (RO+HO) of all such cases to ALCO for information.

Treatment of Unsecured Loans as Quasi Capital While calculating debt equity ratio / leverage ratio of proprietorship / partnership concerns, unsecured loans from family members may be taken as quasi-capital. In case of ‘Private limited company’ unsecured loans from Directors / family members of Directors may also be taken as quasi-capital. However, these relaxations will be subject to obtention of undertaking from the proprietors/partners/ directors, as the case may be, that the level of such unsecured loans/ shall remain at the projected level during the currency of bank finance. Subordinated debt/ mezzanine debt may also be considered as part of quasi capital keeping in view their nature. These types of debts should be subordinated to all other creditors. Treatment of Margin under BG/ L/C Deposit kept for the purpose of margin towards BG/LC, may be treated as current assets for the purpose of Current Ratio only. However, the same may be excluded from the built of current assets while arriving at MPBF. Treatment of TL Instalment: Treatment of TL instalment falling due within 12 months shall not be included in current liabilities for MPBF in case sufficient cash generation is available to take care of the aforesaid commitment. Stock Audit The stock audit need not to be conducted by the Chartered accountant where:

i) The borrower is availing no other fund based or non fund based facilities except Bank Guarantees

ii) The borrower is availing demand loan or overdraft against immovable property. iii) The borrower is availing the credit facility against future rentals only. iv) The loan against property sanctioned to Bank's Land lords/ land ladies, the

premises of which has been taken on lease by the Bank v) Stand alone term loan vi) Fund based working capital limit is less than 2 crore in case of standard AC &

restructured / NPA A/Cs having WC limit Rs. less than 1 crore. Issues relating to "Conflict Diamonds" Keeping in view the resolution passed by United Nations General Assembly on 01.12.2000 relating to conflict diamond, the Bank needs to be careful while dealing with export of Diamonds. As such an undertaking is to be obtained from the exporter about the area of origin of the Diamond certifying that:



a. The diamonds exported/ being exported are not originated from areas/countries falling within the perview of the term "Conflict Diamonds".

b. They have complied with all the guidelines /legislations issued in this regard from time to time by Govt of India, Reserve Bank of India / Diamond Trading Corporation or any authorized agency in this regard.

Agriculture Lending: The loans shall be –

1. In terms of Govt. of India guidelines, sincere efforts shall be made to achieve at least 30% increase in agri. adv. over the last year's disbursement.

2. Each rural and semi urban branch shall add at least 100 new former borrowers during 2010-11.

3. Each rural & semi urban branch shall direct at least 40% agri credit for investment purpose for 2-3 new investment projects in the area of plantation & horticulture, fisheries, organic farming, agro processing, live stock, micro irrigation, sprinkler irrigation and other agri. activities.

4. Minimum of 40% of fresh agriculture advance to small and marginal farmers. For CGTMSE fees by debiting Charges General – Commission Paid account

i. One time Up front Guarantee Fee for a block of 5 years @ 1 % of the credit facility (Fund based & Non Fund Based) sanctioned up to Rs 5 Lakh for new cases.

ii. Annual Service Fee @ 0.50 % of the credit facilities sanctioned up to Rs 5.00 lakh (FB + NFB) for existing as well as new cases

2. Maturity profile of Term Loan (inclusive of gestation period) Sr No Nature of Term Loan Maturity Profile 1 Short Term Loan Below 3 years 2 Medium Term Loan 3 years and above but

below 5years 3 Long Term Loan 5 years and above but upto

7years 4 Term Loan for Infrastructure Over 7 years

Delegation Of Discretionary Powers For Advances (Rs. In Crores) Authority Single

Borrower Group Exposure

Chairman & Managing Director 60.00* 120.00 Executive Director 45.00* 90.00 General Manager (Functional Head) at Head office & General Manager (Regional Head)

25.00* 40.00

DGM (Regional Head) DGM(Credit) at Head Office DGM – Branch Incumbent

10.00

15.00

AGM(Regional Head) AGM- Branch Incumbent

7.50 10.00

Branch Incumbents in Scale IV 1.50 3.00 Branch Incumbents in Scale III 0.75 0.75 Branch Incumbents in Scale II 0.25 0.25 Branch Incumbents in Scale I 0.15 0.15

Note - In respect of borrower whose rating in the IMaCs model is below 5 (i.e. 6 to 10) the

power shall be reduced to 80% of normal power) Delegated Powers For Granting Additional /Enhancement In Existing Accounts

Internal credit Rating Authority to consider additional /enhancement in existing accounts

IMaCS 1 To 6 Respective sanctioning authority in whose powers aggregate



exposure falls as per Discretionary lending powers approved IMaCS 7 Branch Heads will not have any powers .

HO/RO will consider additional exposure enhancement upto their powers in accounts with rating IMaCS 7

IMaCS 8,9,10 Authority to consider additional /enhancement in existing accounts with IMaCS rating 8,9,10 rests with MCB only.

Exposure Exposure shall include Credit exposure (funded and non-funded credit limits), credit equivalent of Forward contract limit to the extent of 5% of Forward Contract Limit and Investment exposure (including underwriting and similar commitments) . The sanctioned limits or outstanding, whichever are higher, shall be reckoned for arriving at the exposure limits. However, in the case of fully drawn term loans, where there is no scope for re-drawal of any portion of the sanctioned limit; bank may reckon the outstanding as the exposure. Unsecured Exposure Unsecured exposure’ has been defined as an exposure where the realizable value of thesecurity, as assessed by the Bank / Approved valuers / Reserve Bank Inspecting Officers, is not more than 10% ab-initio (i.e. at the time of sanction) of the outstanding exposure.‘Security’ will mean tangible security properly charged to the bank and will not includeintangible securities like guarantees, comfort letters etc.However bank may treat annuities under build-operate transfer (BOT) model in respect of road/highway projects and toll collection rights, where there are provisions to compensate the project sponsor if a certain level of traffic is not achieved, as tangible securities subject to the condition that banks’ right to receive annuities and toll collection rights is legally enforceable and irrevocable. Real Estate is generally defined as an immovable asset - land (earth space) and the permanently attached improvements to it. Income-producing real estate (IPRE) refers to a method of providing funding to real estate (such as, office buildings to let, retail space, multifamily residential buildings, industrial or warehouse space, and hotels) where the prospects for repayment and recovery on the exposure depend primarily on the cash flows generated by the asset. The primary source of these cash flows would generally be lease or rental payments or the sale of the asset. Capital Market Banks' capital market exposures would include both their direct exposures and indirect exposures. Also includes advances against shares/bonds/debentures etc and Bridge loans to companies against expected equity flows/issues etc. Short notes : A. In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans and advances on the security of its own shares B. Loans to companies for buy-back of shares/securities are not permitted. C. Branches should not extend finance for setting up of new units consuming/producing the Ozone Depleting Substances (ODS) specified by RBI. Bank shall not grant any loan/advance for subscription to IDRs (Indian Depository Receipts). Further, Bank shall not grant any loan/advance against security/collateral of IDRs issued in India. Bank cannot grant loans against CDs (Certificate of Deposits) and also not-permitted to buy-back their own CDs before maturity except CDs held by mutual funds. PRIORITY SECTOR Main thrust of the Bank shall be on retaining existing customers, acquisition of new customers, providing quality and need based credit to various sectors of the economy. Following sectors have been identified for flow of credit on priority basis: a) Agriculture b) MSME Sector



c) Retail loans upto Rs 20 lakh and Housing Finance upto Rs. 25.00 lacs d) Other Priority sector lending e) Exports Besides due emphasis will be given to augment Non-Fund based business Micro and Small Enterprises (Direct and Indirect Finance) Direct finance to micro and small enterprises shall include all loans given to micro and small (manufacturing) enterprises engaged in manufacture/ production, processing or preservation of goods, and micro and small (service) enterprises engaged in providing or rendering of services, and whose investment in plant and machinery and equipment (original cost excluding land and building and such items as mentioned therein) respectively, does not exceed the amounts specified by RBI. The micro and small (service) enterprises shall include small road & water transport operators, small business, professional & self-employed persons, retail trade i.e. advances granted to retail traders dealing in essential commodities (fair price shops), consumer operative stores and advances granted to private retail traders with credit limits not exceeding Rs. 20 lakh and all other service enterprises, as specified by RBI/ Ministry of MSME, Govt. of India. Micro Credit Direct Micro Credit Provision of credit and other financial services and products of very small amounts not exceeding Rs. 50,000 per borrower directly or indirectly through a SHG/JLG mechanism for on-lending up to Rs. 50,000 per borrower will constitute micro credit. Housing – Classification under Priority sector I. Loans up to Rs. 25 lakh, irrespective of locations, to individuals for purchase/construction of a dwelling unit per family and loan given for repairs to the damaged dwelling units of families up to Rs. 1 lakh in rural and semi-urban areas and up to Rs. 2 lakh in urban and metropolitan areas. II. Assistance given 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 of loan amount per dwelling unit. III. Assistance given to a non-governmental agency approved by the NHB for the purpose of refinance for construction/reconstruction of dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of loan component of Rs. 5 lakh per dwelling unit. IV. Loans granted to Housing Finance Companies (HFCs), approved by National Housing Bank for the purpose of refinance, for on-lending to individuals for purchase/construction of dwelling units, provided the housing loans granted by HFCs do not exceed Rs.20 lakh per dwelling unit per family. The above special dispensation shall apply to loans granted by bank to HFCs up to March 31, 2010. Such loans granted till March 31, 2010 will continue to be classified under priority sector till they are repaid. The end use of the funds shall be ensured as per the RBI guidelines on lending to priority sector. However all staff loans granted to the employees of the bank including loans granted under consumer banking and home loan are not to be classified as priority sector. Education – Classification under PS Education loans include loans and advances granted to only individuals for educational purposes up to Rs. 10 lakh for studies in India and Rs. 20 lakh for studies abroad, and do not include those granted to institutions. However, Loans granted to educational institutions will be eligible to be classified as priority sector advances under micro and small (service) enterprises, provided they satisfy the provisions of MSMED Act 2006. Under the revised RBI guidelines on lending to priority sector, advances granted for retail trade i.e. advances granted to retail traders dealing in essential commodities (fair price shops), consumer co-operative stores and advances granted to private retail traders with credit limits not exceeding Rs. 20 lakh fall under priority sector



Term Loans – Important points a) Promoter's contribution of at least 20% in the total equity is normally expected. e) The other basic parameters would be the net debt service coverage ratio, i.e. exclusive of interest payable, which shall normally not go below 2. On a gross basis average DSCR shall not be below 1.5. In case of highly capital intensive/infrastructure projects, DSCR of less than 1.5:1(up to 1.2:1) may be considered on case to case basis. f) As regards margin and/or security, this will depend on Debt Equity ratio which should not normally be above 2:1 i.e. debt should not be more than 2 times the equity contribution. However, in case of capital intensive industries, the same may be considered up to the level of 3:1. k) In case a term loan is prepaid by the borrower for shifting to other Bank/FI, onetime pre-payment charges of 1% of the total outstanding balance shall be levied. However, in case of Housing Loans, one-time pre-payment penalty of 2% on the outstanding balance shall be payable in case a customer transfer the loan account to other bank / FI directly or indirectly. As per the new housing loan scheme the pre payment penalty has been discontinued in all the cases. No term loan is to be sanctioned by the field functionaries in isolation where the implementation period is less than one year. p) The overall Term Loan component of the Bank’s Credit Portfolio (Excepting Term Loans covered under Agriculture, SME & Exports) shall be controlled so as not to normally exceed 60 % of the Bank’s total advances) q) Chartered Accountants certificate for end use of funds shall be obtained in all cases of Bank’s exposure of Rs.5.00 crore and above. r) Certificate from lender's independent engineer confirming that progress of civil work and installation of plant and machineries is in accordance with the project report shall be obtained. This certificate should be obtained for verification of creation of assets invariably in all projects involving technical expertise where bank is having exposure of Rs 50.00 crore and above. Big ticket loan for bidding shall be permitted for high net worth borrowers. Net worth of such borrowers shall not be less than 100 crore OR Public Sector Undertaking. Techno-Economic Viability (TEV) Studies Considering the increasing demand for Term Loan, it was decided that TEV Study shall be carried out for all proposals seeking fresh term loans exceeding ` 5.00 crore from our bank. Consortium financing – The RBI guidelines for mandatory formation of consortium in respect of working capital limits of Rs. 50 crores and above for the banking system stands withdrawn. Bank will prefer to have, subject to prudential norm, at least 5% share as a member of consortium for a meaningful participation in the consortium. The loan applications pertaining to SC/ST, SME and Exports cannot be rejected by the sanctioning authority under whose powers the same falls. Only the next higher sanctioning authority can reject the same. The Bank has entered into MOU with EQUIFAX Credit Information Services Pvt. Ltd (ECIS) which is a RBI Registered Credit Information Company like CIBIL. EQUIFAX is presently providing Consumer Services only and is expected to start Commercial Services after some time. Revolving Letter Of Credit Reinstatement clause in revolving LCs be suitably worded and in no case it should be automatic. No revolving LC be issued without re-instatement clause. The reinstatement should only be permitted after a written confirmation from LC opening branch is received and liability against bills already negotiated is cleared by the opener. Credit Flow to MSME Sector As per Government guidelines, bank should achieve a 20% year-on-year growth in credit to micro and small enterprises to ensure enhanced credit flow. All the branches should achieve a 10% annual growth in the number of micro enterprise accounts. The allocation of 60% of the MSE advances to the Micro Enterprises is to be achieved in stages viz. 50% in the year 2010-11, 55% in the year 2011-12 and 60% in the year 2012-13. Out of total advances to MSE sector 40 per cent should go to micro(manufacturing) enterprises having investment in plant and machinery up to Rs. 5lakh and micro (service) enterprises having investment in equipment up to Rs. 2lakh. Further, 20 percent advances to MSE sector should go



to micro (manufacturing) enterprises with investment in plant and machinery above Rs.5lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 2 lakh and up to Rs. 10 lakh. Claims on Corporates Claims on corporates shall include all FB and NFB exposure excluding those which are included under sovereign, bank, regulatory retail, residential mortgage, non performing assets and other specified categories. The applicable risk weight shall be in the range of 20% to 150% depending upon the ratings assigned by the external credit rating agencies as approved by the RBI. These rating agencies are CRISIL, ICRA, CARE and FITCH India. Long Term Claims on Corporates - Risk Weights

External Rating

AAA AA A BBB BB & below

Unrated

Risk weight

20% 30% 50% 100% 150% 100%

Short Term Claims on Corporates - Risk Weights

CARE CRISIL ICRA Risk Weights

FITCH ICRA Risk Weights

A1+ A1+ A1+ A1+ 20%

A1 A1 A1 A1 30%

A2 A2 A2 A2 50%

A3 A3 A3 A3 100%

A4/A5 A4/A5 A4/A5 A4/A5 150%

Unrated Unrated Unrated Unrated 100%

Risk Weights for unsecured portion of NPAs The unsecured portion of NPA net of specific provision and partial write offs shall be risk weighted as under: SN PARTICULARS RESIDENTIAL

MORTGAGE OTHER NPAs

01 Specific provisions are less than 20% of outstanding amount of NPA

100% 150%

02 Specific provisions are at least 20% and upto 50% of outstanding amount of NPA

75% 100%

03 Specific provisions are at least 50% of outstanding amount of NPA

50% 50%

Only eligible collateral recognized for credit risk mitigation purposes shall be included while estimating the secured portion of the NPA. If NPA is fully secured by the collateral that are not recognised for credit risk mitigation purposes, either independently or along with other eligible collateral a 100 per cent risk weight may apply, net of specific provisions, when provisions reach 15 per cent of the outstanding amount. Claims secured by residential property and classified as NPA are weighted at 100 % net of specific provisions. If the specific provisions are at least 20 % but less than 50 % of the outstanding amount, risk weight applicable to the loan net of specific provisions shall be 75 %. If the specific provisions are 50 % or more the applicable risk weight will be 50 % The threshold limit to individual borrowers has been fixed at the level of 5% of Capital funds of the Bank and substantial Exposure limits is decided at a level of 500% of the Capital funds of the Bank for the year 2011-12.The capital funds of the bank as on 31.03.11 was Rs. 13991.42 crores

The aggregate exposure of the Bank to the capital market in all forms (both fund based and non-fund based) should not exceed 40 per cent of its net worth as on March 31 of the previous year. Within this overall ceiling of 40 per cent, the Bank’s direct investment in shares, convertible bonds /debentures, units of equity-oriented mutual funds and all exposures to Venture Capital Funds (VCFs) [both registered and unregistered] should not exceed 20 per cent of net worth as on March 31 of the previous year. Bank’s indirectexposure (advances to capital market sector) shall not exceed 20 percent of net worth.The networth of the bank as on 31.03.11 was Rs. 9486.13 crores The Bank’s Exposure against shares either by way of Loans and Advances against shares or where the Bank is a pledgee of the shares 30% of Company’s Paid-up capital or 30% of Bank’s Paid-up capital + Reserves whichever is less. Loans against security of shares, convertible bonds, convertible debentures and units of equity oriented



mutual funds to individuals from the banking system should not exceed the limit of Rs.20 lacs per individual provided the securities are held in demat form Bank may grant advances to individuals for subscribing to IPOs. Loans/advances to any individual from the banking system against security of shares, convertible bonds, convertible debentures, units of equity oriented c and PSU bonds should not exceed the limit of Rs.10 lakh for subscribing to IPOs.

Bank shall obtain a uniform margin of 50% while granting financing of IPO’s. Issue of guarantees for capital market operation. A minimum cash margin of 25% (within the margin of 50%) shall be maintained in respect of guarantees for capital market operations Exposure under Real Estate (%of available gross advances of bank of previous quarter) Residential Mortgage (Direct & Indirect) 20% Commercial Real Estate – 10% Investment in Securitized Paper- 1% Aggregate Exposure to Real Estate 31.00%

Term Premium for Term Loan Taking into account the deployment of Bank’s fund for a long period which carries a relatively higher risk, a Term Premium of 50bps over and above the normal spread but within the maximum spread for all fresh term loan with repayment period exceeding 3 years have been introduced. Term premium will not be applicable on schematic lending unless specified. In respect of borrowal accounts availing limits over Rs. 2.00 lacs, interest rates have been linked with the credit risk rating.

Priority Sector (UPDATED TILL 31-12-2011)

1. SMERA - Bank has a tie-up arrangement with SME Rating Agency of India Ltd. (SMERA) on 13th

April 2006. SMERA is the first and only dedicated rating agency for the small & medium enterprises (SME) sector in India. Under the arrangement, SMERA provides comprehensive rating services to SMEs borrowers of the Bank at the subsidized rates and offer 20% discount for all SME accounts referred by our Bank to SMERA for rating. SMERA will also offer 75% discount on the renewal rating fees.

2. Eligibility Criteria for DRI - The Reserve Bank of India vide their letter dated 10th April 2008 has informed that as a part of Budget Speech for 2008-09, the borrower’s eligibility criteria for availing loan under the DRI scheme has been increased. The borrowers with annual family income of Rs.18000/- in the rural areas and Rs.24000/- in the urban areas will now be eligible to avail of the facility under DRI scheme as against the earlier annual income criteria of Rs.6400/- in rural and Rs.7200/- in urban areas. It has been clarified by the Ministry of Finance that the revised eligibility income criteria of Rs.24000/- for urban areas under the DRI scheme is applicable to semi-urban areas also.

3. Technology Upgradation Fund Scheme (TUFS)- (01.04.2007 to 31.03.2012) - The Technology Up gradation Fund Scheme (TUFS) was introduced by Govt. of India on 1.4.1999 to provide encouragement to Textile and Jute Industrial Units in SSI and Non-SSI sector for taking up technology upgradation and to modernize their production facilities by offering incentives in the form of partial reimbursement of interest. SIDBI is the nodal agency for SSI sector and IDBI is the nodal agency for non-SSI sector.

4. Amendments in Oriental Green Card( OGC ) & Oriental Kisan Gold Card(OKGC) Scheme

S. No

Parameters Existing guidelines Amendment proposed

1 Per Acre Scale of finance for crops proposed to be grown

As per recommendation of District Technical committee

As per recommendation of District Technical committee for current year

2 Repair & Maintenance of Agri. Equipments/machinery

10 % of crop production loan 25 % of crop production & other allied activities loan (Col. No-13 of process note). Format of Revised Process Note enclosed as Annexure-I



3 A. Milch Animals i)Cross Breed Exotic - ii) Local Breed -

B. Drought Animals Bullock/camel/He-buffalo -

C. Small Animals Goat/Sheep/pigs

@8000/-per Animal @ 6000 Per Animal @ 4000 per Animal @ 1000/-per animal

@12000/- per Animal @10000/- per Animal @ 5000/- per animal @ 2000/-per Animal

4 Non farm Activities such as artisans, small trading, micro-enterprises, vendors etc. working capital need, if any

25% of annual turnover (Maximum Rs 25000/-)

Same

5 Loan for family consumption /expenses during the period from sowing to stage of harvesting of crops standing in the field.

30 % of production loan(Maximum Rs. 100000/-)

Same

6 Loan amount up to maximum of Rs. 25000/-to SF/MF & Rs.50000/-to Other Farmers to repay their old debts from non institutional sources

Rs. 25000/-to SF/MF & Rs.50000/-to Other Farmers

Loan amount up to max Rs.100000 or actual whichever is lower to all farmers to repay their old debts

7 Land Development activities such as land Reclamation, Levelling, Fencing, Underground pipe lining etc, Repairing of cattle shed &farm house etc

Nil 25 % of crop production & other allied activities loan (Col. No-13 of process note) Format of Revised Process Note enclosed as Annexure-I

8 For post harvest activities like sorting, grading, packing, storing, transportation charges for agriculture & allied activities produce

Nil Maximum Rs.20,000 per acre

9 Maximum loan limit No ceiling , However ,limit shall not exceed expected annual income of farmers from all sources

No ceiling. Maximum Permissible limit under scheme shall be as under-

A) MPBF arrived as per process note.

B) 50% of value of agriculture land offered as security.

C) Total expected annual income from all sources as per application.

Maximum permissible limit shall be lowest of A, B, C. The valuation of land will be done on the basis of last 3 years average price to be obtained from accredited revenue official.



5. Farmers’ Club Programme- for extending support for Farmers' Club Programme-The new policy will cover all existing and new clubs and become operative from 01.07.2008. It will also supersede all previous instructions on the programme: � All institutional agencies ( Commercial Banks, Cooperative Banks and Regional Rural Banks

) and all grass-root level organisations ( NGOs, PRIs, State Agricultural Universities, KVKs, ATMA, Post Offices, etc.) are eligible to form Farmers' Clubs.

� NABARD assistance to all agencies will uniformly be @ Rs.10,000/- per club per annum for a period of 3 years irrespective of whether they are institutional or other agencies and also the region concerned. The assistance will be towards meeting the following minimum and mandatory expenses:

� Formation & maintenance expenses : Rs. 2,000/- � Awareness/ orientation meet at base level : Rs. 5,000/- � Meet with experts programme ( 2 Programmes in a year ) : Rs. 3,000/- � Total : Rs. 10,000/-

6. Agriculture Loan- Against the Security of Gold Jewellery -Board of Directors in its meeting dated 6.9.2008, approved a scheme to finance agricultural loan against the security of Gold Jewellery in the name of “Oriental Kisan Swarn Card” (OKSC). For issuance of OKSC the Oriental green card pass book shall be used. The short term production/working capital facility shall be allowed as cash credit similar to OGC and for investment credit separate term loan account shall be opened for each activity. 30% against value of gold jewellery offered as collateral security.

i) Crop Production Loan - Basis of arriving at the credit limit is scale of finance. ii) Term Loan : Margin

Upto Rs.50000/- Nil Above Rs.50000/- 10%.

The total credit limit will be divided in two parts i.e. working capital portion, shall be worked out similar to the OGC guidelines and term loan shall be worked out by deducting the working capital portion from total quantum of loan based on value of gold jewellery. To make the scheme more attractive and farmer friendly, it is decided to extend the loan against gold jewellery / ornaments in single name of the farmer. However No Objection Letter by the wife of the borrower, giving her no objection to the pledge of the gold ornaments / jewelleries pledged by her husband in favour of the bank and undertaking that she will not make any claim on the said gold items on the pretext of her interest in the gold jewellery / ornaments as her Istridhan or any other ground whatsoever along with the personal guarantee of the wife be obtained.

7. Modifcation In The Credit Guarantee Scheme -The CGTMSE vide their circular no CGTMSE/(44)/10953 dated 16th Januaray,2009 has informed the following changes in the scheme the eligible loan limit under the scheme will now be Rs 100 Lakh instead of Rs 50 Lakh.

10. Discretionary powers The incumbents of the branches have been vested with powers to sanction facility as under- Scale-I – Rs.10.00 Lacs Scale-II– Rs.15.00 Lacs Scale-III- Rs.30.00 Lacs Scale-IV- Rs.50.00 Lacs AGM/RH/IInd man in Region/Branch incumbent-Rs.250.00 Lacs DGM at HO/RH/IInd man in the Region/Branch incumbent- `300.00 Lacs GM at HO/RH- Rs.1000.00 Lacs ED - Rs.1500.00 Lac CMD – Rs. 2000.00 Lacs

At par with discretionary power for general loans



The Credit Guarantee Fund Trust for Micro & Small Enterprises shall provide the guarantee as under:

Category Maximum Extent of Guarantee where credit facility is

Up to Rs 5.00 Lakh Above Rs 5.00 Lakh up to Rs 50.00 Lakh

Above Rs 50.00 Lakh up to Rs 100 Lakh

Micro Enterprises 85% of the amount in default subject to a maximum of Rs 4.25 Lakh

75% of the amount in default subject to a maximum of Rs 37.50 Lakh

Rs 37.50 Lakh plus 50% of the amount in default above Rs 50.00 Lakh subject to maximum ceiling of Rs 62.50 Lakh.

Women Entrepreneurs/ Units located in North East Region (incl.Sikkim) (Other than credit facility up to Rs 5 Lakh to Micro Enterprises)

80% of the amount in default subject to a maximum of Rs 40 Lakh

Rs 40 Lakh plus 50% of amount in default above Rs 50 Lakh subject to overall ceiling of Rs 65.00 Lakh

All Other Category of borrowers

75% of the amount in default subject to a maximum of Rs 37.50 lakh

Rs 37.50 Lakh plus 50% of amount in default above Rs 50 Lakh subject to overall ceiling of Rs 62.50 Lakh

The proposals for sanction of guarantee approvals will have to be rated internally by the Bank. The proposals approved by the Bank on or after 8th December, 2008 will be eligible for the coverage up to Rs 100 lakh. In order to mitigate the burden and to encourage borrowers to take the guarantee cover, the Board of Directors vide Board Resolution No.PS-9 dated 23.06.2009 has approved changes in Guarantee fee structure and accordingly the Bank shall bear entire cost by debiting Charges General – Commission Paid account in respect of following category of borrowers: � One time Up front Guarantee Fee for a block of 5 years @ 1 % of the credit facility (Fund

based & Non Fund Based) sanctioned up to Rs 5 Lakh for new cases. � Annual Service Fee @ 0.50 % of the credit facilities sanctioned up to Rs 5.00 lakh (FB + NFB)

for existing as well as new cases.

PS Targets The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are furnished below: Domestic commercial banks Foreign banks

Total Priority Sector advances

40 per cent of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

32 per cent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.


Total agricultural advances Of this, indirect lending in excess of 4.5% of ANBC or credit

equivalent amount of Off-Balance Sheet Exposure, whichever is higher, will not be reckoned for computing performance under 18 per cent target. However, all agricultural advances under the categories 'direct' and 'indirect' will be reckoned in computing performance under the overall priority sector target of 40 per cent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

No target.

Small Enterprise advances

Advances to small enterprises sector will be reckoned in computing performance under the overall priority sector target of 40 per cent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.


Micro enterprises within Small Enterprises

(i) 40 per cent of total advances to small enterprises sector should go to micro (manufacturing) enterprises having investment in plant and machinery up to Rs 5 lakh and micro (service) enterprises having investment in equipment up to Rs. 2 lakh;

Same as for domestic banks.



Domestic commercial banks Foreign banks

sector (ii) 20 per cent of total advances to small enterprises sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs 5 lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 2 lakh and up to Rs. 10 lakh. (Thus, 60 per cent of small enterprises advances should go to the micro enterprises).

Export credit Export credit is not a part of priority sector for domestic commercial banks.


Advances to weaker sections


No target.

Differential Rate of Interest Scheme

1 per cent of total advances outstanding as at the end of the previous year. It should be ensured that not less than 40 per cent of the total advances granted under DRI scheme go to scheduled caste/scheduled tribes. At least two third of DRI advances should be granted through rural and semi-urban branches.

No target.

[ANBC or credit equivalent of Off-Balance Sheet Exposures (as defined by Department of Banking Operations and Development of Reserve Bank of India from time to time) will be computed with reference to the outstanding as on March 31 of the previous year. For this purpose, outstanding FCNR (B) and NRNR deposits balances will no longer be deducted for computation of ANBC for priority sector lending purposes. For the purpose of priority sector lending, ANBC denotes NBC plus investments made by banks in non-SLR bonds held in HTM category. Investments made by banks in the Recapitalization Bonds floated by Government of India will not be taken into account for the purpose of calculation of ANBC. Existing investments, as on the date of this circular, made by banks in non-SLR bonds held in HTM category will not be taken into account for calculation of ANBC, up to March 31, 2010. However, fresh investments by banks in non-SLR bonds held in HTM category will be taken into account for the purpose. Deposits placed by banks with NABARD/SIDBI, as the case may be, in lieu of non-achievement of priority sector lending targets/sub-targets, though shown under Schedule 8 – 'Investments' in the Balance Sheet at item I (vi) – 'Others', will not be treated as investment in non-SLR bonds held under HTM category. For the purpose of calculation of credit equivalent of off-balance sheet exposures, banks may use current exposure method. Inter-bank exposures will not be taken into account for the purpose of priority sector lending targets/sub-targets.]

Government Sponsored Schemes: 1. DRI

� Differential Rate of Interest (DRI Scheme) is launched on 12.06.1972 � To be implemented all over India by the Banks � To finance @4% simple ROI � Maximum loan being Rs15000/- for productive activities, higher education, � Without any subsidy, margin or collateral security, � Additional loan of Rs5000/- to physically handicapped, � Motive is to assist poorest of the poor and to bring them above the poverty line. � Loan (classified under Weaker section-PS with the condition that min 40% shall be

sanctioned to SC/ST and 2/3rd of total DRI should be to women) is required to be repaid within 5 years inclusive of moratorium period of max. 2 years.

� Can be granted to Individuals whose family income not to exceed Rs. 18000/- p.a. in Rural Areas and Rs. 24000/- p.a. in Urban & Semi Urban Areas

� To Individual whose land holding does not exceed 1 acre or irrigated and 2.5 acres of un-irrigated land (there is no such ceiling for SC/ ST engaged in agriculture & allied activities)

� Can also be sanctioned to People engaged in Cottage/ Rural industries, � To Physically Handicapped persons pursuing for gainful occupation, � To orphanage/ women’s home, cooperative societies inclusive of Large sized Adivasi

Multipurpose Co-Operative Societies for Tribal areas. � Rs. 20000 for housing to SC/ST and under Indira Awas Yojna is also included in DRI.



2. SRMS - SCHEME FOR REHABILITATION OF MANUAL SCAVANGERS � Effective from 15.04.2008 (classified under PS – Weaker Section), in place of erstwhile

SLRS to rehabilitate the remaining scavengers & their dependents by March 2009 by providing training, loan & subsidy at urban & rural areas to be implemented by the Banks.

� Unemployed persons of above 18 years who is partially or wholly engaged in the obnoxious and inhuman occupation of manually removing night soil and fifth who have not been provided any assistance for rehabilitation by Central / State govt. are eligible. Even SHGs are also eligible

� The scheme is to be implemented by national Safai Karamchari Finance & Development Corporation and State Channeling Agencies

� Maximum Loan of Rs5.00lacs is to be sanctioned without any margin from borrower; however subsidy of 50% for project cost of Rs25000.00 {ROI @5% - (4% to women)} and 25%(min 12500/- max 20000/-) for project cost of above 25000.00 {ROI @6%}.

� Loan of Rs25000.00 to be repaid within 3 years; Loan above Rs25000.00 to be repaid within 5 (Maximum moratorium being 6 months inclusive in both the cases)

3. SJSRY - SWARNA JAYANTI SHAHRI ROZGAR YOJANA (SJSRY) –(Classified under PS-Weaker

section) � Scheme applicable in urban areas under urban Local Body, irrespective of population size

to provide gainful employment to the urban poor below urban poverty line, unemployed or under-employed & development of women & children in Urban Areas (DWCUA) - Group of at least 10 women – with no min age/ educational qualification criteria is prescribed whereas training is necessary (Defaulters are not eligible).

� Loan is meant to a family on family of independent kitchen based on per capita income � Scheme is to be funded by Central & State in 75:25 Ratio and to be implemented by USEP

– Urban Local body / Municipal Committee � Loan is to sanctioned for setting-up of Self-employment ventures Two or more

beneficiaries can form partnership and would be eligible for loan � Maximum project cost of Rs50000/-. Max subsidy 15% (max 7500/-) lock in 2 years. Margin

5% of project cost. � No collateral or guarantee for loan to individual up to Rs. 50000 and to group up to Rs. 3

lac. Loan is to be repaid within 3 to 7 years with a inclusive of moratorium of 6 to 18 months.

� Target under the scheme is 30% to Women; 3% to disabled and on prorata basis of local population to SC/ST.

4. SGSY - SWARANJAYANTI GRAM SWAROJGAR YOJANA

� Scheme is to bring individuals / groups of rural poor above poverty line. Rural SHG with 50% of SHGs from Women are preferred.

� Scheme is to be funded by Central & State in 75:25 Ratio and to be implemented by Commercial Banks, RRBs/ Co-op Banks. Other FIs, Panchayat Raj Institutions, DRDAs, NGOs, Technical Institutions in Distt, involved in process of planning, implementation / monitoring.

� Rural poor identified through BPL Censes approved by Gram Sabha and SHG of 10-20 members (difficult areas 5-20 members). Max. 30% of member can be of APL with the condition that no subsidy shall be available to them.

� Loans to be disbursed after a training of 2 days at the expense of DRDA. � Loan shall be sanctioned as prescribed by Distt. SGSY Committee and cash disbursement

upto Rs10000/- in cash. Consumption loan to the max of Rs2000/- per Swarojgari. � SHGs are also allowed revolving fund and DRDA allows second dose of subsidy of Rs10000

after successful utilization of subsidy. � Target under the scheme is 40% to Women; 3% to disabled and 50% to SC/ST � Subsidy @30% of project cost (max 7500/-; SC/ST max 10000/-, SHG @50@ max 1.25lac –

10000 per person max) AND the subsidy shall be treated as margin. � Loan to be repaid within 5, 7, 9 years. � Collateral Security / 3RD party guarantee for individual loan above Rs. 50,000 & group

loans above Rs. 5 lacs.



5. PMEGP - PRIME MINISTER’s EMPLOYMENT GENERATION PROGRAME – Credit linked subsidy scheme in place of PMRY and merged with KVIC-REGP Scheme -

� To generate employment opportunities in Rural & Urban areas by setting up only new

micro enterprises, for sustainable employment to artisans and unemployed youth of age of more than 18 years for manufacturing, service & business activities. The Scheme is Administered by Ministry of MSE, implemented by KVIC at National level and by KVIC-Board, DIC & Banks at State level.

� Scheme is applicable to (only one from family) Individuals, BPL SHGs, Charitable Trusts, Production Coop Societies, Institutions under Societies Registration ACT of rural and urban areas. There is no income ceiling. Minimum Ed Qualification is 8th pass only of manufacturing projects costing above Rs10.00lac and service/ business project above 5 lacs. Besides, an EDP training of 2-3 weeks is essential to the beneficiary identified by Distt. Level Task Force headed by SC/SM and represented by KVIC/DIC/Banks before release of loan, which is waived for those who have already undergone such training.

� Project cost (which includes expenditure and one cycle of working capital) for manufacturing sector is upto Rs. 25 lac, for business & service sector Rs. 10 lacs. Without capital expenditure, project should not be accepted. No collateral upto Rs5.00lacs.

� Loan Amount - Composite loans can be sanctioned to the extent of 90% of project cost including subsidy (95% in case of special category borrowers that include SC/ST, women, OBC, Physically handicapped, Ex-servicemen, minority, North East Region, Hill and border areas etc.) Selection of borrower shall be on the basis of score card prepared by SBI/RBI.

� Subsidy – for General borrowers in urban area is 15% and in rural areas it is 25%, whereas for special category (as above) it shall 25% and 35%, which is to be kept as interest free FDR and credited to loan account at the end of 3rd year from the date of 1st disbursement where in case of loan becoming NPA it can be utilized even prior to completion of 3 years. Use of working capital component should be such that it touches 100% at one point of time, within 3 years of lock in period of subsidy and not less than 75% of the sanctioned limit. If it is not touched, pro-rata subsidy will be returned at the end of 3rd year.

� Margin - 10% for general candidates and 5% of the project cost for special categories. Target for margin money is allocated by KVIC.

� Repayment - 3 to 7 years with moratorium as prescribed. Modifications in Agriculture Lending Norms Reserve Bank of India vide letter no RBI/2009-10/499/RPCD.PLFS. BC.No.85/05.04.02/2009-10 dated 18.06.2010 advised that Banks may waive margin/security requirements for agricultural loans from existing level of Rs 50,000/- to Rs 1,00,000/- with immediate effect. 1. Margin Money Norm

a) Crop Loans* and other short term loans Up to Rs.1,00,000/- Nil Over Rs.1,00,000/- 15% **

b) Term Loans Up to Rs.1,00,000/- Nil Over Rs.1,00,000/- 15% **

* Scale of finance is net of margin. **Regional Head is empowered to reduce margin to 10% in deserving cases.

2. Security Norms

a) Crop Loans and other short term loans Up to Rs 1,00,000/- Only Primary Security i.e. Hypo. Of Crops/assets. Over Rs.1,00,000/- Hypo. Of Crops/assets & Mortgage of Land OR 3rd party Guarantee I. Term Loans Up to Rs.1,00, 000/- Hypo. Of Assets Over Rs.1,00, 000/- Hypo. Of Assets & Mortgage of Land OR 3rd party Guarantee.



IMPROVEMENT IN TURN AROUND TIME (TAT) It has been desired that credit proposals pertaining to SME, Agriculture and Priority Sector be sanctioned within the following time frame:-

Credit Proposals under the Discretionary Powers of Branch

Sanctions within one week of receipt of the complete proposal

Credit Proposals under the Discretionary Powers of RO/HO

Recommendations by the branch to RO/HO within one week of receipt of the complete proposal

Credit Proposals under the Discretionary Powers of RO

Sanctions within one week of receipt of the complete proposal from branch

Credit Proposals under the Discretionary Powers of HO

Recommendations by the RO to HO within one week of receipt of the complete proposal from branch

WAIVER OF DOCUMENTATION CHARGES FOR LOANS UP TO RS 10.00 LAC UNDER AGRICULTURE ADVANCES.

EXISTING DOCUMENTATION CHARGES W.E.F 15.03.2009

REVISED DOCUMENTATION CHARGES W.E.F 19.01.2010 up to 19.01.2011

Documentation Charges including Priority Sector advances.

Limit Amount (in `) Up to Rs 2.00 Lacs Nil Over Rs 2 lacs to 25 lacs 2500 Over Rs 25 to Rs 100 Lacs 5000 Over Rs 100 Lacs 10000

Documentation Charges in Agriculture including Direct Agriculture, Indirect Agriculture and other Allied Activities in Agriculture Limit Amount

(in Rs) Up to Rs 10.00 Lacs Nil

Over Rs 10 lacs to 25 lacs 2500 Over Rs 25 to Rs 100 Lacs 5000 Over Rs 100 Lacs 10000

OVERDRAFT FACILITY IN NO-FRILL SAVINGS ACCOUNTS: Villages with population more than

2000 have already been allotted among the banks for extending IT enabled banking services

either through Business Correspondents or Branches. In these allotted villages all eligible

households are to be linked with the banking system. The objective behind the allowing small

value overdraft facility in No-Frill accounts is to meet small domestic/ business needs and to

develop habit of handling and managing the credit.

In view of the above field functionaries are advised to allow small value overdrafts at initial stage say Rs. 100/- or 200/- in No-Frill accounts with advice to account holder that this amount should be repaid in weekly installments say 3 or 4 or 5 weeks or within some days say 15 or 30 or 45 days etc. The beneficiaries should be assured that on timely repayment, the enhanced overdraft facility say double shall be allowed on request immediately. On consistently repaying enhanced overdraft limit, the limit may be gradually increased step by step maximum up to Rs. 2,500/- considering the requirement of beneficiary. On reaching at maximum level of Rs 2500/- successfully, higher loan limit may be sanctioned under any of Bank’s lending scheme. Salient features of the scheme as under:

i) Eligibility - No-Frill account holders ii) Purpose - To meet small domestic/ business needs iii) Maximum OD limit in No-Frill Accounts - Rs.2,500/- iv) Interest Rate- Base Rate + 4.50%

All field functionaries has been advised to allow overdraft facility in minimum 10 No-Frill accounts in each allotted villages during this financial year. Further, this facility may also be allowed to NREGA/ Pension beneficiaries considering their requirement and receivables on account of NREGA wages/ Pension amount.

CONTINUATION OF 1.5% INTEREST SUBVENTION SCHEME AND 2% ADDITIONAL INCENTIVE SUBVENTION FOR SHORT-TERM CROP LOANS IN 2010-11 (I) In pursuance of the announcement made by Union Finance Minister in his budget speech

for F.Y 2010-11, the Reserve Bank of India vide circular no RPCD. No.



PLSF.BC.18/05.04.02/2010-11 dated 06.09.2010 has issued instructions for continuation of the scheme for the Financial Year 2010-11 as under:

1) Government will provide interest subvention of 1.5% p.a. to Bank in respect of short-

term production credit upto Rs. 3 lacs provided to farmers. 2) This amount of subvention will be calculated on the crop loan amount from the date of

its disbursement/drawal up to the date of actual repayment of crop loan by the farmer or upto the due date of the loan fixed for the repayment of the loan, whichever is earlier, subject to a maximum period of one year.

3) This subvention will be available to Banks on condition that they make available short-term production credit up to ` 3 lakh at ground level at 7% p.a.

As such all the field functionaries are advised as under:

1) Short-term crop production credit with principal amount disbursed upto ` 3 lacs during the year 2010-11 will be charged interest @ 7% p.a. While 1.5% interest subvention will be claimed from RBI, rest of the difference will be borne by the Bank.

2) This amount of subvention will be calculated on the amount of the crop loan disbursed from the date of disbursement up to the actual date of repayment or up to the due date, maximum one year whichever is earlier.

3) The scheme is applicable for fresh loans and also for disbursals made for existing crop loans.

4) Even in those cases where sanctioned limit is more than ` 3 lacs, subvention shall be allowed on availment upto ` 3 lacs (principal amount) and availment over and above ` 3 lacs shall attract normal rate of interest and shall not be eligible for subvention.

5) 1.5 % interest subvention claims will be submitted on half-yearly basis as at September 30, 2010 and March 31, 2011 within 15 days of the respective dates. The format for the purpose is enclosed.

6) Any remaining claim pertaining to the disbursement made during the year 2010-11 and not included in the claim for March 31,2011, may be consolidated separately and marked as an “Additional Claim” and submitted latest by April 30, 2012, duly audited by statutory auditors certifying the correctness.

7) Branches will submit the claim to respective Regional Office in Format I (A) while Regional Offices will submit the consolidated claim to RD&PS, Head Office in Format I.

(II) Further, the Hon’ble Finance Minister, in his Budget Speech (paragraph 52) for 2010-2011 had announced as follows: ‘In the last budget, I had provided an additional one percent interest subvention as an incentive to those farmers who repay their short-term crop loans as per schedule. I propose to raise this subvention for timely repayment of crop loans from one percent to two percent for 2010-11. Thus the effective rate of interest for such farmers will now be five percent per annum.” In pursuance of this announcement, RBI has advised as under: 1) Government will provide additional interest subvention of 2% p.a. to Banks in respect of those

prompt paying farmers who repay their short-term production credit within one year of disbursement/drawal of such loans.

2) This subvention will be available to such farmers on short-term production credit availed by them during the year for a maximum amount of ` 3 lacs.

3) The amount of additional subvention will be calculated from the date of disbursement /drawal of the crop loan up to the actual date of repayment by farmer or up to the due date for repayment of crop loan subject to a maximum period of one year from the date of disbursement per farmer account.

4) This subvention will be available to Banks on the condition that the effective interest rate charged to the prompt paying farmers is 5% p.a. up to ` 3 lacs



I.T Products of our Bank ATM Services

� As on 30/04/2012 we have 1275 ATMs and as on 31/03/2012 we have 1270 ATMs � Onsite ATMs – 936, Offsite ATMs – 332, Mobile ATMs – 7. � We have entered into ATM Sharing agreements with VISA and NFS (National Financial

Switch) thereby enabling our customers to access any of the ATMs belonging to other Banks under these consortiums.

� Our Bank has also introduced Bio-metric three ATMs � Bio – Metric ATMs are enabled with card holder, allowing thumb print authentication.

Eliminate the need for PIN entry. � ATMs enable cash withdrawals, balance inquiry, mobile top-up, mini statement, Cheque

status enquiry, Stop Payment, Mobile Banking Registration facilities, Deposit of cash is also done at selected ATMs. PIN change, Online payment for tax, Limit enhancement(POS to ATM or ATM to POS) customer can register his/her request through ATM for Full limit.

� SMS Alert Services Activation & SMS Alert Mobile Number Modification

� IMPLEMENTATION OF FACILITY OF INCOME TAX PAYMENT THROUGH ATMs on 06 April 2011 - The Customers desirous of availing the facility will have to visit the branch, where they have the account, to complete onetime registration process by submitting prescribed application form and copy of PAN Card. The Registration Application form and copy of PAN card submitted by the customer are to be kept in Branch records for Audit purposes. The limit for maximum permissible amount is Rs. 1.00 lac per day. The Bank will earn fee income @ 45/- per successful transaction.

Our Bank is presently offering following types of ATM cards to our customers:

i. ATM Card – Cash only Card � This type of cards can only be used at ATMs for Cash withdrawal.

ii. ATM cum Debit Card – PROTON International Card � It can be used both at Point of Sale (POS) terminals and ATMs. � It is a global card and is accepted across the globe at ATMs or POS with ‘VISA’ logo. � All Savings Bank and Current Account holders in individual category are offered our

International debit Card. iii. ATM card for School/College Students – Cashmate Card

� This card is issued in the SB “Vidyarthi” Scheme (Code SB 217) � This Card also offers overdraft facility up to `1500/- to the Card holder students to meet

their emergency, unforeseen expenses like Books, Stationary etc. � This card is an ATM cum debit card. It is VISA international Card.

iv. ATM card for Farmers – Oriental Green Card � This card is an ATM cum debit card. � This is issued in the A/c’s under Green Credit Card (GCC) Scheme and Oriental Green

Card (OGC) Scheme i.e. OD511 and CC404.

Interbank ATM Usage Facility As of now, our Bank’s card holders can perform Cash Withdrawal and Balance Inquiry on the ATMs of member banks of ATM sharing consortiums viz. VISA and NFS. Similarly the cards of other member banks under these consortiums are accepted on all our ATMs and they can perform Cash Withdrawal and Balance Inquiry operations.

ATM Charges

S.No. Particulars Fee / Charges (in

Rupees) 01.07.2011

1 Annual Fees for Primary Card and Add-on cards for regular International Debit Card

Ist Year free of charge and 100/- + Service Tax from 2nd year onwards

2 Annual Fees for Primary Card and Add-on cards for regular International ATM Only Card

Ist Year free of charge and 100/- + Service Tax from 2nd year onwards

3 Replacement of Lost Card 150/-



4 Regeneration of PIN 50/-

Shared Networks 5 Transaction charges at ATMs OBC

ATMs VISA NFS

Cash withdrawal charges-INDIA

up to 5 transactions (financial + non financial) in a calendar month.

NIL NIL NIL

Financial NIL 20/- 20/- • 6th transaction onward in a

calendar month Non- Financial NIL 9/- 9/-

Cash withdrawal charges-USA N.A 80/- N.A.

Cash withdrawal charges--Other Countries N.A 120/- N.A.

5.1

5.2 Balance Enquiry Charges -INDIA NIL NIL NIL

5.3 Balance Enquiry Charges -Other Countries NA 15/- NA

5.4 Declined Transactions NIL 15/- NIL

5.4 Currency Conversion Charges for all international transactions N.A 1% N.A.

5.5 Transactions at Petrol Pumps and Railway Reservation Counters as per Shared Network Regulations

N.A Service Charges @

2.5% of transaction

value or 10/- whichever is

higher

N.A.

5.6 Charge Slip Retrieval charges NIL As per VISA As per NFS

Daily Transaction Limit:

i. Total daily cash withdrawal limit from an account - `25000/- ii. A customer can withdraw upto `25000/- in a day from our Bank ATM. iii. A customer can withdraw upto `10000/- in a day from other Bank’s ATM. iv. A customer can purchase upto `25000/- in a day at POS through our ATM cum Debit card.

Note: Point of Sales (POS) terminals are deployed/installed at Merchant Establishments (ME) i.e. shops, petrol pumps etc. For making any payment debit card is swiped on these terminals and the amount is entered, the transaction is processed and the customer’s primary account linked with the Proton card is debited online. Eligibility Criteria Any customer having a Savings Bank / Current Account / Over Draft A/c in his / her individual capacity and not in the representative capacity, Staff OD accounts. The request for ATM card is given through DCREQ option in Finacle. i. Card can be issued to a customer provided his/her age is 14 years or more and he/she is a

literate and not blind. Following customers are not eligible for issuance of ATM / Debit Card: a. Customers below 14 years of age b. Illiterate c. Insolvent d. Blind persons e. Persons operating accounts in representative capacity

ii. No minimum deposit/balance in SB account for the Cards is required for issuance of cards, though the minimum balance norms prescribed as per existing guidelines applicable to these account will continue to be in force.

iii. Issue of Cards in joint accounts of the individuals having operational clause as ‘Operation Jointly' is not permitted.

iv. Issue of Cards is permitted in joint accounts of individuals provided the applicant has an authority to operate the account singly (E or S). However, all the joint account holders should authorize the applicant to avail the facility by counter signing the application.



v. The Cards will also be issued to NRI customers in their NRE accounts. Cash deposited by NRI customers in the ATMs will be credited to their accounts as per RBI/ FEMA guidelines issued from time to time.

Maximum period of chargeback resolution: Within 7 Days.

� As per RBI notification DPSS.PD.No.2632 / 02.10.002 / 2010-2011 dated May 27, 2011 has informed 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 `100/-, per day, to the aggrieved customer. This compensation shall be credited to the customer’s account automatically without any claim from the customer, on the same day when the bank affords the credit for the failed ATM transaction.

� ATM-cum-Debit cards can also be used for conducting online transactions w.e.f 10/11/2010- VBV registration is require and OBC Debit Card should have CVV values. OBC

Debit Card is enabled for POS i.e. should be full limit in Ideas

Launch of SBI-Oriental Bank of Commerce Co-branded Credit Card - Bank has entered into an MOU with SBI Cards and Payments Services Private Limited (SBICPSL) on 14.09.2011 for issuing Co-branded Credit Cards to our employees and customers. There will be two types of Credit Cards to be issued (i) SBI-Oriental Bank of Commerce Gold & More – Saving Bank A/c balance for 6 month ≥ 20,000 and salary a/c balance for 3 month ≥ 20,000 (ii) SBI-Oriental Bank of Commerce Platinum --Saving Bank A/c balance for 6 month Rs. 1,00,000 and salary a/c balance for 3 month Rs. 30,000. The cards shall be issued in two variants as under 1.Secured 2.Unsecured Secured Cards shall be issued against the lien marked on the Term Deposit of the customer. Unsecured Cards shall be issued without any security. Note:

1. The Email Id [email protected] needs to be referred only by the Branch Managers &

Oriental Bank of Commerce officials.

2. The Email Id [email protected] for the SBI- Oriental Bank of Commerce customers to

resolve the query/ problems.

Internet Banking Services Internet Banking enables a customer to perform basic banking transactions through Internet from anywhere in the globe. Customers should use Internet Explorer version 5.0 or later version for accessing IBanking. Our Bank is offering two types of Internet Banking: � Retail Internet Banking (https://www.obconline.co.in): For individual customers. The

customer can opt for either Enquiry only facility or Transaction facility. It can be offered to any Saving/Current/CC/OD account holders. Only Query based facilities shall be provided to jointly operated accounts. Transaction facility shall not be provided for such accounts.

� Corporate Internet Banking (https://www.obconline.co.in/corp): For institutional Customers/ Big Corporates. This has features like Mass upload of Salary, Online RTGS & NEFT, Online trade finance requests – request for LC opening, BG issue, Bill lodgment etc, Feature of Maker/Checker, Feature of Role definition, Feature of adjusting/defining various limits by corporate administrator itself etc.

Some of the facilities in IBanking are: � Accounts Related Operations:

Online Balance Inquiry, View transactions, Statement of Account – For a given period, Cheque Status Inquiry, Clearing Instruments Inquiry, Stop Payment of Cheques etc.

� Fund Transfer Operations:



Funds Transfer to own accounts, Intra Bank Fund Transfer (to other accounts in our Bank), Inter Bank Fund Transfer (To accounts of other banks through NEFT).

� Payments: External Payments like LIC of India for Premium Payments, IRCTC for Railway Reservation, DB (Intt) Stock Brokers Ltd and Sharekhan for Funds Transfer Facility for Shares Purchases, Payment of Telephone / Mobile / Electricity bills etc.

� Payment of Direct Taxes (E-tax facility) and Indirect Taxes (Central Excise Tax and Service Tax)

� Online Share Trading in Collaboration with IDBI Bank.

� ASBA - is an application for subscribing to an issue (IPO/Right issue) and the new initiative of

SEBI for the welfare of Investors, containing an authorisation to block the application money in

a bank account maintained with Self Certified Syndicate Bank (SCSB). � 3rd Party Transfer limit – per transaction limit 50000/- and per day fund transfer limit is2.00

lakh. � As per the circular HO/DIT/ 12 /2010-2011/458 dt 01.10.2010 Implementation of

additional Security Feature for 3rd Party Fund Transfer (Tracker ID). � The customer can make can make online payment for VAT and Central Sales Tax for Govt. of

Maharashtra. � the NetBanking customers shall be able to make Loan EMI payment to their own

Account as well as to 3rd Party Loan Account using “Transfers >> Third Party Transfers within Bank” Option

Mobile Banking - OBC mPay The ever expanding network of Mobile Phone users, which has crossed the 600 million mark, has opened up new vistas for the Bank to expand the Banking Services through the channel of Mobile Phones. Our Bank have rolled out the latest IT enabled services named “OBCmPAY” for the customers of our Bank, which can be availed by them using their mobile phones. RBI Guidelines

RBI has come up with its guidelines on Dt. 20/10/2008 and further on 24/12/2009, some of the important guidelines are given below: � The services shall be restricted only to customers of banks � The guidelines issued by the Reserve Bank on "Know your Customers (KYC)", ”Anti Money

laundering (AML)" and combating the Financing of Terrorism (CFT) from time to time would be applicable to mobile based banking services also.

� Customer complaints/grievances arising out of mobile banking facility would be covered under the Banking ombudsman scheme 2006(as amended up to May 2007).

� Banks are permitted to offer this service to their customers subject to a daily cap of `50,000/- per customer for all types of transactions summed together.

� Features and Functions of IMPS Services - facility enables instant Inter Bank fund

transfer and credit to beneficiary’s account round the clock on all days. Immediate confirmation of receipt by the beneficiary through SMS and to Remitter through screen display on his Mobile and also through SMS.

Prerequisite: Any Customer of Bank having Java enabled Mobile phone irrespective of the Mobile Service Provider can avail this service. Services offered through Oriental Bank’s Mobile Banking Services

_ Account Balance Enquiry _ Mini Account Statement _ Intra Bank Fund Transfer (within OBC both Mobile to Mobile and Mobile tocustomers account) _ Inter Bank Fund Transfer through NEFT platform _ ATM Locator _ Branch Locator



Registration: The customers can avail OBCmPAY services by registering through ATM or by visiting the Branch. In case the customer submits the application at the branch, the request is to be entered using MOBNKRQ menu option in Finacle.

Tele Banking System: As per the cir –HO/DIT/19/2010-11/596 dt 09/12/10 has been decided to discontinue TeleBanking service with effect from 1st January 2011.The functionality in Finacle for accepting TeleBanking registration requests has been disabled. SMS Alerts: The Bank’s SMS Alert Services are capable of enabling customers and for those Alerts as selected by them. Any Customer of Bank having Mobile phone irrespective of the Mobile Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.

As per the HO, DIT circular no. HO/DIT/26/2009-2010/699 dated 25th January 2011 on ‘Revision of Minimum Transaction Limits for sending SMS Alerts’

Transaction type Credit/ Debit Minimum Amount for which SMS alert is sent

1 Transactions using ATM or Debit Card

Debit No minimum amount, alert to be sent for all transactions

2 Other transactions (Non-Card based)

Debit 2000/-

3 Other transactions Credit 5000/ Welcome Kits: With a view to improve the customer services at branches, Bank has implemented the process of providing Welcome Kit to the customers at the time of Account opening. These kits are duly linked with centrally pre-opened accounts. Ready Kits: New version of Welcome Kits which are ready to use for existing as well as new accounts. These kits do not require pre-opened accounts also and can be easily linked with the customers’ accounts through DCREQ. Real Time Gross Settlement (RTGS) RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. RTGS is a Systemically Important Payment (SIP).This is the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. RTGS is used for both customer transactions and Inter Bank Transactions. The Operating session for RTGS Transactions at Branches is given hereunder: Customer Transaction (R41) Monday to Friday – 09:00 hrs to 18:00 hrs

Saturday – 09.00 hrs to 12.00 noon Inter-Bank Transaction (R42) Monday to Friday – 09:00 hrs to 18:00 hrs Saturday – 09:00 hrs to 14:00 hrs This cut-off time is for the messages to reach at RBI end. If the transaction fails or gets rejected for any reason, the amount will be credited back to the account from which the transaction was made. All RTGS transactions are irrevocable once the account is debited and the Bank executes transaction. Any revocation, after the payment order is executed by the bank, shall not be binding on the Bank in the RTGS system. Transaction Amount: The minimum amount to be remitted through RTGS is `2 lakh. There is no upper ceiling for RTGS. There is no limit on the number of transactions per day per Customer. Charges: For Outgoing Transactions from `2 to 5 lacs, `25/- per transaction is levied and for transaction above `5 Lacs, `50/- per transaction is levied. Inward transactions are free.



National Electronic Fund Transfer (NEFT) National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. RBI intends that high value transactions should be routed through RTGS and small amount transactions should be routed through NEFT. NEFT is only for fund transfer on behalf of the customers. NEFT works on deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time.

� Banks are advised to facilitate cash remittance through NEFT upto ` 50,000/- for

persons who are not having account in the originating Bank No minimum ceiling for transaction amount. For Indo-Nepal remittance amount upto `50,000/- can be remitted (Cash/Transfer). A person can send fund maximum 12 times in a year. Batch Timings: Eleven hourly settlements are carried out during the day by RBI, starting from 9:00AM to 7:00PM on all week days and five hourly settlements from 9:00 AM to 1:00 PM on Saturdays. The messages sent before the above batch timings shall be included in the respective settlements otherwise they shall be included in the next batch/day. Charges: For Outgoing Transactions upto Rs.1 lac NIL, Rs 1 lac to 2 lac Rs-10/- per transaction and above Rs. 2 Lac, Rs.25/- per transaction is levied. Inward transactions are free. Note: � RTGS and NEFT is entered in Finacle using the Command HEPS. Detailed guidelines and

accounting Procedure is available on the Bank’s eCircular site http://172.16.200.10/obcweb/.

� Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify

the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.

� our circular No. HO/DIT/35/2008-2009/586 dated 09.02.2009 wherein it was informed that all

offices to ensure that all payments made by Bank to vendors, service providers and all external agencies viz. Tax authority / Utility Payments etc. are invariably made through electronic modes.

Electronic Clearing System (ECS): It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons. It eliminates delays due to postal / clearing as the amount gets directly credited to the respective customers account. There are two types of ECS called ECS (Credit) and ECS (Debit). ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment. ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution. Customers are required to fill up the prescribed form (No. E-1) indicating choices of periodicity of such payment and expected number of credit and aggregate amount. Detailed procedure is given in Clearing Operations Chapter. Any Branch Banking (ABB) ABB enables the customers to access his account from any of our Branches from any where in India. Customer can deposit cash / cheque across all the CBS branches and can operate his/ her



account from any of CBS branch. Multicity as well as Normal Cheque books can be used for conducting ABB transactions. Such cheques are payable at any of our branches. It is not only convenient for the customers but also saves on time and transaction cost. It has been approved by the bank that no ABB charges, no limit on deposit of cash (subject to compliance of all rules for deposit of cash) by customers at non base branch for credit to Progressive Deposit/ Variable Progressive Deposit (OBC Aadhar) and Loan accounts. ABB

transactions at third branch (other than the Drawee and Payee’s branch) for transfer entries are permitted only up to Rs 1.00 Lac. Issuance of Demand Draft/Pay Order under anywhere banking (other than drawee branch) is permitted only up to Rs 1.00 Lac per Demand Draft. Western Union Money Transfer Our Bank has a tie up with Western Union Money Transfer through M/s Weizmann Forex Ltd. (WFL). Western Union is a safe, reliable, legal and convenient way of transferring and receiving money world wide (in India we can only receive inward remittance, as RBI does not allow outward remittance). It is a legal method of receiving money in India as per RBI guidelines. The Western Union Money Transfer system is a Net-based system, which provides on line information about any money transfer affected from overseas location. The beneficiary can get payment of the remittance after establishing the identity and other formalities from any of the outlets of Western Union. Online Tax Accounting System (OLTAS): OLTAS is a service provided by the bank for acceptance of Income Tax and other direct taxes on behalf of Government. The customers including Corporates, Individuals, Proprietorship concerns, Partnership firms, Trusts, Club, Society, etc. can pay their tax liability through bank’s OLTAS window available through select branches across the country.

Cash Receipt Printers’ (CRP)( (HO:DIT:CRP:22:2011-2012:598) dt 28.11.2011) The bank has implemented a robust reliable and efficient IT infrastructure which is being utilized for providing better customer service, it has been decided to provide ‘Cash Receipt Printers’ for printing of system generated cash receipts as acknowledgement for depositing of Cash by the Customers at Cash Counters of the branches. Note: � IDRBT – Institute for Development and Research in Banking Technology was established by

the Reserve Bank of India in 1996 as an Autonomous Centre for Development and Research in Banking Technology. � INFINET – Indian Financial Network � SFMS – Structured Financial Messaging System

� Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.

� National Payments Corporation of India (NPCI) - It is the umbrella organization for Payment Systems. The IBA Core Group has incorporated the Umbrella Organization as a Section 25 Company. National Financial Switch (NFS) for ATM sharing is being maintained by NPCI.

� Electronic Accounting System in Excise and Service Tax (EASIEST) – System initiated by Central Board of Excise and Customs (CBEC) to receive information and maintain records of tax paid through banks through online upload of challan details.

I.T Security The purpose / objective of the Information Security Policy is to provide the bank with a standard information security framework to address and manage various security risks to information assets and quality maintenance.



The main objective of this exercise is to ensure that each and every user of the technology either from the branches / offices or delivery channels go through appropriate levels of authorization and authentication to ensure that they are categorized as secured and trusted users. Business goal of the Information Security Policy is to protect resources and assets from loss. Resources may include –

• information: including information in transmission such as transactions, circulars, e-mails, configuration data, etc.

• services: systems, applications • equipments: computers, networking components

Each resource has several assets that require protection: • confidentiality (secrecy or privacy): preventing disclosure of information to unauthorized

persons • integrity: preventing corruption, impairment, or modification of information, services, or

equipment • authenticity: proof that a person or other agent has been correctly identified, or that a

message is received as transmitted • availability: assurance that information, services, and equipment are working and

available for use • the state of the system; this includes changes to data and to software

Common Terminologies

a. Phishing: In the field of computer security, phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication.

b. Firewall: Firewalls are network devices that control access to organization’s network assets by monitoring and filtering network traffic or more precisely a device that separates a trusted network from un-trusted network. Firewalls can be implemented in both hardware and software, or a combination of both. Firewalls protect sites from exploitation of inherent vulnerabilities in the TCP/IP protocol suite.

c. VSAT - Very Small Aperture Terminal d. Hacker: Generally refers to individuals who gain unauthorized access to computer system

for the purpose of stealing & corrupting data. e. HTTP: The protocol for moving hypertext files across the Internet. Requires a HTTP client

program on one end, and an HTTP server program on the other end. HTTP is most important protocol used in World Wide Web (WWW)

f. Internet: The vast collection of inter-connected networks that are connected using the TCP/IP protocols and that evolved from the ARPANET of the late 60's and early 70's. The Internet connects tens of thousands of independent networks into a vast global internet and is probably the largest Wide Area Network in the world.

g. Intranet: A private network inside a company or organization that uses the same kinds of software that you would find on the public Internet, but that is only for internal use.

h. IP (Internet Protocol) Address: A unique number consisting of 4 parts separated by dots, e.g. 192.168.x.y. Every machine that is on a network has a unique IP address.

i. Network: A group of two or more computer systems linked together. j. LAN (Local Area Network): A computer network limited to the immediate area, usually the

same building or floor of a building. k. WAN (Wide Area Network): Any network that covers an area larger than a single building or

campus. l. Malware: Short for malicious software, software designed specifically to damage or disrupt

a system, such as a virus or a Trojan horse. m. Spam or Spamming : An inappropriate attempt to use a mailing list or other networked

communications facility as if it was a broadcast medium (which it is not) by sending the same message to a large number of people who didn't ask for it.

n. Spyware: Software that is secretly installed on a users’ computer and that monitors use of the computer in some way without the users' knowledge or consent.



o. SSL (Secure Socket Layer): A protocol to enable encrypted, authenticated communications across the Internet.

p. Virus: A chunk of computer programming code that makes copies of itself without any conscious human intervention. Some viruses do more than simply replicate themselves, they might display messages, install other software or files, delete software of files, etc. A virus requires the presence of some other program to replicate itself. Typically viruses spread by attaching themselves to programs and in some cases files, for example the file formats for Microsoft word processor and spreadsheet programs allow the inclusion of programs called "macros" which can in some cases be a breeding ground for viruses.

q. Worm A worm is a virus that does not infect other programs. It makes copies of itself, and infects additional computers (typically by making use of network connections) but does not attach itself to additional programs; however a worm might alter, install, or destroy files and programs.

BASEL – II NORMS

The committee on Banking Regulations and Supervisory Practices ( Basel Committee) – 1988 guidelines on capital measures and capital standard in July, 1988 known as CAPITAL ACCORD – I, implemented w.e.f. 01.04.1992 as a part of Narsimhan Committee Recommendation. IN BASEL –I aims at to prepare banks towards the strengthening the soundness and stability of the banking system. Capital adequacy ration was fixed to 8% with effect from 01.04.1992 that raised to 9% with effect from 10% for new private sector banks and 15% for local area banks. BASEL –II aims at further strengthening the capital structure of banks and its requirement is calculated for credit, market and operation risk. There are 03 Pillars which include

• MINIMUM CAPITAL REQUIREMENT • SUPERVISORY REVIEW • MARKET DISCIPLINE

PILLAR ONE - Minimum capital requirement for credit risk, operational risk and market risk. Credit risk – stardardised approach for credit risk- Under this risk weight is prescribed by the RBI and would be adopted by the banks without any discretion to modify. Risk in a scale of 01 to 08 i.e. 0 to 150%- Statement of Sensitive sector DSB statement 4-I. OPERATIONAL RISK Operational risk means risk on account of operation of banks. It may be defined as risk of loss due to inadequate or failed internal processes, people and systems and external events. Some of the examples of operational risks are lack of competent management or lack of proper planning and controls, incompetent staff members, indiscipline, involvement of staff in frauds, outdated systems, non -compliance of system and procedures, failure of computer system etc. deficiency in loan documentation. Measuring of operational risk aims at strengthen the capital base to withstand such risks. RBI has asked the bank to measure the risk by way of Basic Indicator Approach. As per this, the bank will have to hold capital, equal to average of previous three years positive annual gross income as a fixed % i.e. 15% Capital requirement = annual positive gross income for three years X 15% / No. of years for which gross income is positive. SECOND PILLAR Supervisory review process is intended to ensure that banks have adequate capital to support all the risk in their business and encourage them to develop and use better risk management techniques in monitoring and managing their risk. This excercise is implemented by our Inspectorate Department to assess the risk.

1. Capital adequacy level should be adequate in relation to risk profile. 2. Supervisors should evaluate and review bank's internal capital adequacy assessment and

strategies and to maintain capital ratios.



3. Supervisors should expect banks to operate above the minimum regulatory capital ratio and should have ability to require bank to hold capital in excess of the minimum.

4. Supervisors should intervene at an early stage to prvent capital from falling below the minimum levels required to support the risk character.

THIRD PILLAR The objective of IIIrd pillar is to complement the minimum capital requirement and supervisory review through various kinds of disclosures required by the bank in the financial papers such as Capital structures - Tier I and Tier II component of capital on quarterly basis and its ratios Bank's approach to assess the capital adequacy to support its current and future activities i.e. capital required for credit risk, market risk or operational risk

Some Important Points

* Restructured Technology Upgradation Fund Scheme has been implemented by The Ministry of Textiles, Govt. of India with effect from 28.04.2011. Now, The Ministry of Textiles, Govt. of India, vide their circular No.50 (3) /2011-MS/ dated 01.06.2011 have informed the decisions taken by Technical Advisory-Cum-Monitoring Committee (TAMC) of restructured TUFS, in its 1st meeting held on 12.05.2011(copy enclosed) in regard to following:

i. Specifications of brand new shuttleless looms eligible for 10% capital subsidy and ceiling of Rs. 1 crore margin money subsidy under 20% MMS-TUFS for powerloom section.

ii. Value cap on imported second hand shuttleless looms iii. Review of the list of eligible machinery under TUFS for additions/deletions.

* Migration Towards “CTS 2010 Standards” With growing use of multi-city and payable at par cheques for handling of cheques at any branch of a bank, introduction of Cheque Truncation System (CTS) at New Delhi for image-based cheque processing, increasing popularity of Speed Clearing for local processing of outstation cheques etc., RBI prescribed certain minimum security features in cheques printed, issued and handled by banks and customers uniformly across the banking industry.

The benchmark prescriptions for cheque forms have been termed as “CTS-2010 standard” by RBI.

* CRAR : (a)Implementation of the New Capital Adequacy Framework issued by Reserve Bank of India, Bank is required to compute Capital Adequacy Ratio (CRAR) as per Basel II at the end of each quarter. (b) The ratio is one of the key indicators for the Banks performance and is computed as follows:-

CRAR = Capital (Tier I and Tier II) Risk Weighted Assets

• The CRAR improves with the increase in Capital and/or with the reduction in Risk Weighted Assets.

• Extension in moratorium period in Education Loans from 12 months to 24 months in genuine cases due to global meltdown.

• Payment of interest on Saving Bank Accounts should be made on a daily product basis with effect from April 1, 2010.

• From 05.10.2010 the option for fixed rate of interest stand abolished and fresh or renewal or

takeover of home loan will not be considered on FIXED rate. • RBI to issue Rs.10 denomination Banknotes with inset letter “R”: Reserve Bank of India will

shortly issue Rs.10 denomination Banknotes with inset letter “R” in both numbering panels in



Mahatma Gandhi Series - 2005 bearing the Signature of Dr. D.Subbarao, Governor. Except for the change in the inset letter, the design of these notes to be issued now is similar in all respect to the Banknotes issued earlier in Mahatma Gandhi Series - 2005 with additional/new security features issued on April.27, 2006.

• Prudential Norms On Unsecured Advances

• For determining the amount of unsecured advances for reflecting in schedule 9 of the published balance sheet, the rights, licenses, authorisations etc., charged to the banks as collateral in respect of projects (including infrastructure projects) financed by them, should not be reckoned as tangible security. Hence such advances shall be reckoned as unsecured advances.

• Banks should also disclose the total amount of advances for which intangible securities such as charge over the rights, licenses, authority, etc. has been taken as also the estimated value of such intangible collateral. The disclosure may be made under a separate head in “Notes to Accounts”. This would differentiate such loans from other entirely unsecured loans.

• Financial Inclusion Policy Of The Bank For Providing Banking Services Through Engaging Business Facilitators (BF) And Business Correspondents (BC): To enable the bank to reach out to the weaker sections and low income groups so as to provide access to financial services and timely and adequate credit where needed at an affordable cost, and in view of the limitation of branch network to reach out to the large section of society effectively, the Board of Directors of the Bank has approved policy for providing banking services through engaging Business Facilitators (BF)/Business Correspondents (BC)

• The Right To Information Act, 2005 (RTI Act,2005): RTI Act has come into effect w.e.f.

15.06.2005 and the Bank is also receiving number of requests for information from various parties which have to be dealt with by the APIO/PIO/CPIO designate within the period specified under the Act. As per the provisions of the act the Central Information Commission (CIC) can impose penalty of Rs.250/- per day for the delayed period beyond the time limit prescribed for giving the reply , with a maximum of Rs.25000/-. • All Branch incumbents are designated as Assistant Public Information officers (APIOs)

as per the provisions of Section 5(2) of the said Act • As APIO Branch Incumbents are required to accept applications under the RTI Act 05 along

with the fee of Rs.10/- as submitted by any citizen of India and shall forward such applications to PIOs in their Region within the stipulated time of 5 days along with the information if the request pertains to the information available in that branch. PIO shall reply to the Applicant as per the provisions of RTI Act. APIOs/PIOs shall also guide the applicants regarding procedure for submitting the application under the RTI act.

• As the application fee of Rs 10/- can also be deposited in cash, Branch Incumbents as APIOs shall accept cash of Rs 10/- per application and issue receipt for the same. Cash so received be credited to “Commission Received- Misc. Account”

• Branch Incumbents as APIOs shall also accept appeals by any citizen of India against the decision of the PIO of the Bank and forward the same to the Appellate Authority within 5 days. As per provisions of Section 19 (1) of the Act. Presently the General Manager (CS&P), Head Office, New Delhi is the Appellate Authority of the Bank.

• New Business Group (NBG) has primarily been constituted to convey expeditious decisions on

acceptance of credit proposals for new accounts on the basis of information on key points received from the branches. The approval by NBG was only for an “Expression of Interest” and detailed sanction was subject to appraisal and approval of the competent authority.

• Concurrent Audit Policy - The system of Concurrent Audit was introduced in the Banks

pursuant to Ghosh Committee recommendations on Frauds and Malpractices in Banks.



• RBI guidelines stipulate that 50% Advances, 50% of Deposits and 50% of Bank’s total business should be covered under concurrent audit. In line with the above, 74% of advances and 58% of deposit of the Bank (OBC) is covered under concurrent audit.

• Income and Expenditure Audit Policy - Revenue Audit is being conducted by firms of chartered accountants and the period covered is one calendar year i.e from 1st January to 31st December every year

• Information System Audit Policy - Every Installation i.e HO/RO/Branch shall be audited at least once in every two years. Each year at least 10% of branches (in Number) shall be covered under Information System Audit every year.

• Refund of Locker Rent: Minimum Period of Locker facility shall be One Year and in case of

Surrender of Locker, Refund of the Locker Rent, if any, shall be paid for the Complete Quarters left as on the Date of Surrender of Locker, for which Locker Rent has already been received in advance e.g. in case a Locker hirer has paid Locker Rent in advance say upto 31.03.2009 and Locker is surrendered before the end of the quarter 30.06.2008, the Locker Rent refundable shall be on pro rata basis for 3 Quarters i.e. for the Complete Quarters ending Sept’ 08, Dec’ 08 and March ‘09.

• Maintenance of Record: Vouchers: All the vouchers are to be sorted in two lots: • Cash Payment Vouchers and • Other Vouchers.

The cash payment vouchers will be stitched and sealed at the left hand corner. These are to be kept date-wise/month-wise in cloth bags and are required to be placed year wise in locked boxes. Vouchers other than cash payment will be sorted out and stitched datewise to facilitate reference in the following order:

1. Cash Receipts. 2. Clearing Slips. 3. Clearing Cheques. 4. Transfer Vouchers.

• Caution List: All settlements / compromises, involving settlement amount of Rs. 1.00 Lacs and above, approved by the Head Office / Regional Offices, as the case may be, shall be circulated to the Branches as a “Caution List” on half yearly basis. Such defaulting borrowers shall not be accommodated in future in any way what so ever. Proper record shall be prepared and maintained for such settlements/ compromises by all the branches.

Since the cases, involving the settlement amount of less than Rs. 1.00 Lac, fall under the schemes, which are sponsored by Government of India, it is decided to exclude such borrowers from listing in such “CAUTION LIST”.

Further, the particulars of each and every settlement (involving settlement amount of Rs. 1.00 Lac and above), approved by RO, shall be circulated by the concerned approving Regional Office in the form of “CAUTION LIST” to other Regional Offices / branches. Recovery & Law Deptt., Head Office, will continue to circulate the particulars of each settlement (involving settlement amount of Rs. 1.00 Lac and above), approved by Head Office in the form of CAUTION LIST to all Regional Offices / branches.

• The validity period of Cheques / DDs / POs shall be reduced from existing six months to three months w.e.f. 01st April, 2012.

• While the RBI had deregulated interest rates on fixed deposit schemes in 1997, it deregulated the interest rate on savings bank deposits w.e.f. 25th Oct 2011

• The introduction of daily product method, for calculation of the interest on savings deposit account started w.e.f. 01st April, 2010.

• RBI advises banks to do away with pre-payment penalty on loans, at their earliest.

OBC OFFICERS’S WELFARE FUND, BHOPAL REGION

Promotion Test 17-06-2012 (UPDATED TILL 01-06-2012) 85

Name of the Retail Credit Scheme

Purpose Eligibility Amount of Loan Maximum

Security Margin/Process Fee Repayment

Education Loan Higher Studies 1.An Indian National. 2.Meretorious student 3. Secured admission to higher educational course in any institute

India: 10.00 lacs Abroad: 20 lacs [ceiling for NIIT is rs.1.74 lacs] Maximum 50 las subject approval from HO.

Up to 4.00 lacs : Co-obligation of Parents , however No Collateral Security Above Rs.4.00 lac & upto 7.50 lacs : Co-obligation of parents/guardian and Collateral in the form of third party guarantee. Above Rs.7.50 lac : Co-obligation of parents/ guardian and equivalent tangible Security

Margin: Upto Rs.4.00 lacs - NIL Above 4 lacs : India : 5% Abroad: 15%. Scholarship can be treated as margin. Process : upto Rs.4.00 Lac-100.00 Loan above Rs.4.00 Lac: In India-500.00 For abroad-Rs.1000.00

max 10 years excluding moratorium loan upto 7.50 lacs &15 years above 7.50 lacs

Car/Vehicle Loan Scheme (Personal Use)

Two Wheeler/ Car / MUV

Two Wheelers Rs.15000/- p.m. (Gross) For Cars Rs.25000/- p.m. (Gross) (Loan amount equal to 30 months net take home salary/ income subject to Take Home income after all deductions should not be less than 40% of Gross Salary)Minimum of 12 months service. Only confirmed employees shall be eligible. However RH can waive the condition of confirmed employee

Maximum 1.00 lac two wheeler For car/muv-Max Rs.50.00 lac

Primary: Hyp. of vehicle. Collateral: one P.G. for all type of cases

Two Wheelers : 20% New Cars : upto 20.00lacs – 20%, above 20.00 lacs – 25% Second hand car: 20 %-Under TVS 30%-non TVS. Process Fee: 0.50% of loan amount mimimum of Rs.500.00.

84 equated monthly installments subjected to remaning period of service & maximum age upto 65 yers of borrower Scheme /Second Hand Car 36 EMI (maximum) for vehicle upto 60 months old. (repayment capcaity to be considered in case of employee)

Loan to Traders Working capital and/or term loan.

Traders for stock & purchase of assets stock statement : Upto 5 lac: Yearly. Above 5 lacs & upto 10 lacs: quarterly. Above 10 lacs: Monthly

Maximum 50.00 lacs Primary: Hyp. of stocks/assets created out of loan. Collateral: upto 2.00 lacs no collateral . However one P.G. of adequate net worth. Above 2-5 lacs: 25% of liquid security & one P.G. or 75% E.M. & one P.G. Above 5.00 lacs: 50% liquid security & one P.G. or 100% E.M. (P.G.

25% for purchase of shops/office premises/stocks (for W.C.). Process Fee: 0.50% of loan amount minimum Rs.500.00

Loan upto Rs.5.00 lacs to be sanctioned for 3 years & reviewed yearly. Above 5 Lac:Annual renew. Term loan 3 to 7 years






waived if E.M. is 100% However P.G. of owner must if third party property.)

Other Professionals (Except Doctors)

Premises, P&M, New Vehicle, Furniture & Fixtures, etc.

Professionals (other than doctors) Term Loan- 20 lacs Primary: Hyp. of assets purchased/E.M. of property purchased. Collateral: 50% security & one P.G. upto 5.00 lacs & 75% secuity & two P.G. above 5.00 lacs. one preferably of spouse

25% Process/upfront fee 0.50% of the total limit sanctioned subject to minimum of Rs. 500/-

84 Months(including moratorium of 06 Months)

Loans to Doctors Premises, New Vehicle, Furniture & Fixtures, medical equipments etc.

Qualified & registered Medical practitioners with min. qualification BIMS/BAMS/BUMS/DHMS/BHMS/BPT/ MBBS/BDS

Rural & Semi Urban: 50.00 lacUrban & Metro: 100.00 lacs

Primary: Hyp. of assets purchased Collateral: For loan upto Rs.5.00 lac: Two third part guarantees (one P.G. in case of MBBS/BDS or higher degree)For loan above Rs.5.00 lac to 10.00 lacs: Tangible collateral security atleast 50% of loan amount & one P.G.Above 10.00 lacs: Tangible Collateral security. of 75% & one P.G.

25%Process/upfront fee 0.50% of the total limit sanctioned subject to minimum of Rs. 500/-

7 years including max moratorium of 12 months

Personal Loan Personal expenses Consumer Durables,travel expenses of legitimate travellers etc.

Permanent & Regular Employees with 3 yrs. of completed service(including service with previous employer), net salary not less than Rs.6000/-Pensioners

15 times monthly net take home Max. 1.50 lac ** In case of Pensioner:-upto 12 months pension(max.Rs2.00 Lac **20 times Net take Home maximum Rs.3.00 Lac if salary account is for min. 6 months with branch & employer remits salary to this account

one personal guarantee preferably of fellow employee subject to condition that one employee will not stand as guarantor in more than two accounts

Margin-Nil Process Fee: 0.50% of loan amount minimum Rs.500.00

Maximum 5 years (subject to remaining period of service) In case of Pensioner-Max 36EMI within 70 years of age of borrower.






Financing Govt. Securities

To meet personal Expenses/ business expenditure

Indian National with 18 yrs. of age /Firms/Companies -satisfactort account with our bank

50.00 lacs Charge on Govt. Securities/PSU’s and NSC’s/LIC etc.

-10% on SV of LIC -In all other cases-25%

Overdraft to be reviewed every year & Demand Loan for 36M

Financing Autos/Taxis

Purchase of Autos/Taxis

Maximum of 10 Vehicles per entitity Max.Rs.10.00 Lac per vehicle maxim aggre. Loan 50 lacs

primary: hyp of Vehicle collateral:-Upto Rs.2.00 Lac-Two P.G of adeqate means loan above Rs.2.00 Lac-100% Collateral security

Margin-25% Process Fee-0.50of loanamount minimum Rs.500.00

48 EMIS Sanctioning authority may considered upto 60 months

Beauty Parlours/ Saloons/Tailoring

TL for purchase of equipments/furnitur & fixture,shop etc & WC

Business concerns of women Upto 10 lacs but a part of working capital may not exceed rs.5 lac

Primary-Hyp. of assets(moveable & Immoveable) created out of loan. collateral- upto 2.00 lacs – nil, above 2.00 lacs – tangible collateral security up to 100% of loan value.

Upto 25000 - NIL Above 25000 to 2 lacs - 15% Above 2 lacs - 25% Process fee of 0.50% of lloan min.Rs.500.00

5 to 7 years maximum moratorium 3 to 6 months

Housing Loan (ORIENTAL HOME)

For Construction/ purchase of Residential House/ Flat.

Salary Employed & Self Employed Person

60 times (General) /40 times (to Doctors & Govt Servant by BM& to select businessman by RH) Gross Monthly Income with a condition that the net take home after all deductions comes not less than

Gross Annual Income

Net Take Home

Upto Rs.10 Lacs

40%

Above Rs.10 Lacs to Rs. 15 lacs

30%

Above Rs.15 Lacs to Rs. 25 lacs

25%

Mortgage of Primary Security

Upto 20.00 lacs-15%, above 20.00 lacs – 20%. Process fess – 0.50% subjected to maximum of Rs12500/- plus service tax

Maximum within 25 years or till the borrower attains 60 years Whichever is earlier






Above Rs.25 lacs

20%

From 05.10.2010 the option for fixed rate of interest stand abolished and fresh or renewal or takeover of home loan will not be considered on FIXED rate.

Housing Loan for Furnishing

Alteration/ Furnishing

- do - Max. Rs. 10 Lacs or 30% realizable value of House/ Flat whichever is lower

- do - 25% Maximum within 10 years

Golden Jubilee Rural Housing Scheme

Construction/ Purchase/ Repair/ Up gradation of dwelling unit (Rural)

Village/ Town with population of less than 50,000 as per 1991 Census

Max Rs 5 Lacs (Construction of new house) Max Rs 1 Lacs (Upgradation/ major repairs)

- do - 20% Maximum within 15 years

Important point for Housing Loan:

Up to 60 years of age or date of superannuation, whichever is earlier, however in case of availability of joint / co borrower and one borrower is having comparatively younger age in consonance with repayment period, then it can be considered upto 65 years of age for elder co-borrower. S.No. Loan limit Switch over option

fee(payable one time) a) Upto Rs.25.00 Lacs 0.50% of outstanding as on

the date of switch over b) Above Rs.25.00 Lacs 0.75% of outstanding as on

the date of switch over A penalty of Rs 250/- + service tax will be charged for every bounced cheque/ECS or SI dishonors. The rate may vary from time to time

The prepayment penalty clause is completely waived. None of the occasion the pre payment penalty will be applied in the account, even the borrower opts to switch

his home loan account to other bank/financial

institution



RECOLLECTED QUESTIONS

ORIENTAL BANK OF COMMERCE MMG-II TO MMG-III 1. In SME/Mid Corporate open Term loan , ceiling for financing of No.of Vehicles & amount of

vehicles - 2. Loan to Professional & self employed(other than doctor),what is the repayment period &

moratorium period- 3. Loan to Pensioners:- 4. Ceiling for H/L in rural area & Urban/Semi-urban for repairing/renovation:- 5. As per Bank’s Loan Policy, what is under restricted area of advance- 6. Regional head is empowered to reduce margin in Factory ,land & Building in rice Shelling- 7. What is not correct regarding of Stock Inspection: 8. Under ECB borrowing for USD 500M,what is rate of interest for all costs over LIBOR for six

months for period of more than 5 years. 9. What is current Repo rate?- 10. In case of SARFAESI, if loan is under Consortium, then what percentage of Lender’s Value is

required- 11. under CDR-II, what is Lender’s Value & no. of lenders- 12. under CGTMSE what is annual service fees in normal case and MSE upto Rs. 5.00 lakh- 13. What is time for inter bank transaction in RTGS – 14. The branch having deposit of Rs.35 lakh and advance is Rs.40 lakh( in previous two years)

falls under category of which branch – 15. Question related innovative perpetual debt instrument 16. Working group headed by V.K Sharma related with 17. Export credit target of SCB under PS – 18. Overall PS lending of SCB – 19. Subsidy ceiling upto Rs25000.00under SRMS – 20. Under SJSY in case of SHG, minimum and maximum no of members can be taken from

category of APL- 21. As per Basel II risk weight of HL upto 30 lakh – 22. As per Basel II risk weight for staff HL under superannuation benefit – 23. Loan of Rs6 lakh is secured by security of value property of Rs3 lakh which is doubtful for

more than 3 years as on 31.03.2007 . What is provision amount as on 31.03.2008— 24. Provision in standard account for PL , Commercial Real Estate -% 25. Provision in substandard which is secured -% 26. Question related to nomination ****** 27. Mr Ramesh is POA of Sh Suresh . A Cheque signed by Sh Ramesh is presented in bank after

death of Sh Suresh . What will bank do?- 28. Question related to Krishak Sarthi Scheme --**** 29. Loan is granted to dealer of Drip Irrigation , Sprikler system under indirect Agri . What is the

amount of loan- Rs. 30. ----% of loan given to GCC and Rs---- OD under No Frills account in rural areas under indirect

agri advance – 31. What will the rate of interest for NRE FD, having maturity for 3 years – 32. In case of LC , date is written as beginning of month , what will be the date- 33. In case of pre shipment for how many days refinance is available from RBI – 34. In case over sold what is risk associated with bank – 35. AS-22 is associated with which standard 36. Under Tier –II , revaluation reserve is taken as ---% 37. How many times NEFT settled in Week Days & Saturday- 38. A/c payee cheque was presented by banker for cash payment what will bank do? 39. Liability of drawer before acceptance by drawee and liability of drawer after acceptance of

drawee- 40. As per Basel-II, Pillar-III indicates for:- 41. Which bucket of ALM has further segregated:- 42. Liqudity risk is high. What does it mean.



43. In case of Locker, the operation will _____Yrs will tantamount to higher risk & ____ yrs will tantamount to medium risk:-

44. In case of counterfeit note, the acknowledge of receipt is signed by the cashier but the tenderer doesn’t sign the same. In this case whether acknowledgement will be given to the tenderer or not?

45. In case of “C” region, what percentage is for issuing circulars in bilingual. 46. As per basel-II, which method to be adopted under Operational Risk:- 47. Investment in Inter-bank participation certificate(For P.S), what is the minimum time period- 48. what is the banker –customer relationship in the case article left by the customer with the

branch: 49. D.P.is allowed against the stock statement older than 3 months. When the account will be

NPA:- 50. Investment in P & M In case of Small manufacturing Unit: 51. When NPA is sold to other bank, what will be the risk weight : 52. Presently which planning commission is working in 11th. Five year plan 53. Ceiling on inter bank liability with reference to net worth as on 31 st. March: 54. What is Claused bill of lading:-

Mr. X & Mrs. Y (husband & wife)is having joint a/c with us under “E/S”. A judgment debtor gets the Garnishee Order against Mr.X . Whether this order will be effective in the joint a/c of Mr. X & Mr.Y:- Various answers was given with different reason RECALLED QUESTION OF O.B.C. SCALE I TO II 1. The documents of title to good is delivered with out making payments on submission of ---------:. 2. Advance to Weaker Section under Priority Sector-----------: 3. Dominique Straus Kahn -------: 4. Keeping Password in computerized system: Which is wrong( Min.5 Characters) 5. Recent guidelines of RBI What should follow when letting Locker to someone: Bank’s name to be

embossed on locker. 6. Under DRI how many advance should be done quarterly by our branches: 7. Out of which of the following Garnishee order is not applicable: Under clearing balance 8. Average Price fixing by SEBI on the basis of --------- pricing: 9. Which type of assistance is being given to Sugar Industry by the Govt.-------: Interest 10. Minimum & maximum amount of ECS----------: 11. Defect in documentation-------- risk : 12. SARFAESI is applicable for which A/c: NPA A/c. 13. Anti dated cheque like ch. Dated 15.12.07 and a/c opened dt.20.12.07 : 14. Accounting Standard AS-9 related to -----------: . 15. Which is underlying assets: Option, Swap, Future, Intt. rate, Forward. 16. QIS statement should be submitted for ---------: WC limit of Rs. 17. Amount differ in words & figure under sec.18 of NI Act: 18. Why India’s ranking slipped in Corruption Index to 85 from 72:-----Corruption in politics and

govt.services deptt. 19. As per Sebi liste Co. should announce Interim quarterly balance sheet within--------- end of the

quarter: 20. How much amount can be borrowed from foreign for equipment for hospital with out RBI

approval: 21. Collateral free advance to general--------- and woman---------upto amount under SSI: Up to 5

Lakhs & 10 Lakhs. 22. Medium service Enterprises: More than. 23. How much total advance of Small enterprises sector should go to Micro -----: 24. For issue No Dues certificate in Urban area----------: Charges Rs. 25. Photograph is obtained at the time of opening the a/c. 26. What is the purpose:to check benami accounts 27. KYC related question. If not complied: a) Lega risk, B) reputaitonal risk c)Compliance Risk etc. 28. Minium Notice Period under SARFAESI : 29. CDR is applicable on which a/c: Multiple lending/syndicate/ consortium for Corporate borrower. 30. Personal loan covers:Purchase of consumer durables,Bon Voyage,Expenses for medical treatment-



31. For scooter loan salary per month should be-----------: Rs. 32. For Open Car loan to existing SME/Mid Corporate borrowers enjoying credit limit of: Rs. 33. A company want to raise Rs.50 lac for genset which is more than its capital & reserve : 34. Which Company is No. 1 in Forbes 2000 list inrespect of profit,service etc. HSBC 35. BCTT is going to be discontinued-----------: 36. Basel II for foreign bank & those indian banks which has branch abroad ……….: 37. Bank can appeal against the reward of Ombudsman----------- : 38. Why star series notes were issued: 39. Overdraft allowed in No Frill A/c in Rural & Semi Urban area----------: 40. How much percentage of Independent Director should be in unlisted. Co.: 41. Nomination is not applied: . 42. A cheque issued by the Director of Co. , cheque signed by director presented for payment who

died in an accident: 43. Women SHG to be subsidized by which state Govt.: 44. which state government charge 30% pre profit tax PSU (Public sector units): 45. A contract is made on the basis of Agreed date & agreed rate is called----------: 46. Calculation of DSCR: 47. LAFAR is submitted by whom: 48. Official Language Committee meeting held in C Region: 49. Business correspondence in Urban area: 50. If more Branch are there in rural areas than the financial inclusion will be --------------: 51. Margin under SRMS (Scavangers) Scheme: 52. Housing Loan of Rs.30 lac Risk weighted is---------- : 53. Advance payment for import of services with out RBI approval--------: 54. If import document is directly sent to importer the payment can be made upto which amount-----

-------: 55. Compounding of interest in FCNR (B) A/c if deposit remain for more than one year: 56. STAT 5 & STAT 8 statement is for: 57. Turnover method of Nayak Committee upto the amount of Rs.-------Rs.5 crores. 58. Minimum balance in urban area without cheque book: Rs.. 59. If premature payment is made in the Oriental 333 days deposit of Rs.2 lac, the penalty is----------

--: . 60. Provisioning is made in which A/c: a) Standard B) Sub-Standard C) Doubtful D)Loss e) All of

these. 61. What is Bank rate: 62. PAN card is not mandatory of Demat A/c in which state: 63. Voting right to individual in Private Bank--------: 64. Risk Weight for Housing Loan upto Rs.30 lac is 50%. If a bank make advance of Rs.100 how much

amount the bank will have to keep for risk weight: Rs. 65. Capital Adequecy Ratio as per RBI-under Basel-II---: %. 66. On which A/c CDR FOR SME is not applicable---------: . 67. Reservation for SC/ST under SGSY------------: %. 68. Concessional rate of interest for Pre-shipment advance lapses if documents not submitted with in

time---------: Interest is not lapsed. 69. Primary education for all under Sarva Shiksha Abhiyan--------: 70. Why America banned some medicine of Ranbaxy : Manufacturing process not qualifying US FDA

norms 71. A bill (LC) is payable on or about 30th June shall be paid--------: 72. Indirect Agr.under P.S. for Cold Storage------------: 73. Fixed Deposit issued in NRE for the period-------: 74. Composite loan under Priority Sector-TO SE--------: 75. Period for Short Duraiton crop-----------:. 76. If value of assets falls less than 10% the a/c shall be directly classified to--------:. 77. How much foreign Exchange can be retained:. 78. If Indore word in written between two transverse line can be paid at Bombay: 79. Interest rate risk is what type of risk: 80. Purpose of financial Inclusion :



81. Bill receivable negotiable under LC will classified under---------: 82. What interest is paid on CRR------: Number of member for Branch Customer Service Comittee: 83. Acknowledgement of acceptance by borrower under OTS--------: with in 84. Rank of India in IMD Year Book Competitive Index------: 85. Chairman of Bio-Fuel Policy--------: 86. PM Advisory council forecast GDP growth—2008-09---------: 87. Why keeping foreign Currency Notes is not preferable than Traveller cheques------: 88. Deepak Parekh Committee by PFRDA is related with------------: 89. RBI is focusing on which sector------------: a) Commodity b) Sensitive etc. 90. Rural Tourism financing for Bread & Brakfast. Thew fees to be paid to Ministry for Gold and Silver

rooms: Rs.5000 & Rs.3000. 91. % of Urban Population access to Bank Credit: 92. What is the general reason for NPA: 93. Under Krishak Sathi scheme refinance from NABARD is upto ---------:

DISCLAIMER: The contents in this booklet are based on Information collected from various sources which we believe to be reliable. However, we do not hold ourselves responsible for any short comings or error therein.

You have to grow from Inside Out. None You have to grow from Inside Out. None You have to grow from Inside Out. None You have to grow from Inside Out. None can can can can teach you. None can make you teach you. None can make you teach you. None can make you teach you. None can make you Spiritual. There is no other teacher but Spiritual. There is no other teacher but Spiritual. There is no other teacher but Spiritual. There is no other teacher but your own Soul.your own Soul.your own Soul.your own Soul.

---- Swami Vivekananda Swami Vivekananda Swami Vivekananda Swami Vivekananda

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