Core Banking Solution

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Core Banking Solution > What is Core Banking Solution ? Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking. How shall CBS help Customers? All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services* are: To make enquiries about the balance; debit or credit entries in the account. To obtain cash payment out of his account by tendering a cheque. To deposit a cheque for credit into his account. To deposit cash into the account. To deposit cheques / cash into account of some other person who has account in a CBS branch. To get statement of account. To transfer funds from his account to some other account – his own or of third party, provided both accounts are in CBS branches. To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to his account. Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc. shall also continue to be available. Bank is in the process of launching Internet-banking facility shortly. All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards. What are other benefits to the Customers ? A CBS branch is like a Sales & Service Delivery Center. Back office processes/activities are handled through technology at some other site, called Data Center. Branch, therefore, has more time for serving customers. This improves the quality and efficiency of the services rendered and the customer is directly benefited by way of satisfying and happy banking experience. Since a CBS branch is essentially designed to focus on customer-interface and customer service, the special lay-out and ambience of the branch is made to provide a convenient and delightful banking experience. The Customer Service Representatives / Executives at the branch are specially trained to understand, facilitate and deliver banking services efficiently and effectively. We wish our customers happy banking. (*To safeguard the interest of customers, Bank has placed certain restrictions on the amount of transactions, which are handled through other branches under CBS. The details can be obtained from the branch). The first Automated Teller Machine (ATM) was introduced in the year 1967 by Barclays Bank in Enfield Town in North London. At that time a few would have anticipated excess in ATMs. Then for many years after, the aim was to shift people off the teller lines thus lowering a bank‘s distribution costs and increase

Transcript of Core Banking Solution

Page 1: Core Banking Solution

Core Banking Solution >

What is Core Banking Solution ?

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking.

How shall CBS help Customers?

All CBS branches are inter-connected with each other. Therefore, Customers of CBS branches can avail various banking facilities from any other CBS branch located any where in the world. These services* are:

To make enquiries about the balance; debit or credit entries in the account.

To obtain cash payment out of his account by tendering a cheque.

To deposit a cheque for credit into his account.

To deposit cash into the account.

To deposit cheques / cash into account of some other person who has account in a CBS branch.

To get statement of account.

To transfer funds from his account to some other account – his own or of third party, provided both accounts are in CBS branches.

To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to his account.

Customers can continue to use ATMs and other Delivery Channels, which are also interfaced with CBS platform. Similarly, facilities like Bill Payment, I-Bob, M-bob etc. shall also continue to be available. Bank is in the process of launching Internet-banking facility shortly.

All these aim to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards.

What are other benefits to the Customers ?

A CBS branch is like a Sales & Service Delivery Center. Back office processes/activities are handled through technology at some other site, called Data Center. Branch, therefore, has more time for serving customers. This improves the quality and efficiency of the services rendered and the customer is directly benefited by way of satisfying and happy banking experience.

Since a CBS branch is essentially designed to focus on customer-interface and customer service, the special lay-out and ambience of the branch is made to provide a convenient and delightful banking experience. The Customer Service Representatives / Executives at the branch are specially trained to understand, facilitate and deliver banking services efficiently and effectively.We wish our customers happy banking.

(*To safeguard the interest of customers, Bank has placed certain restrictions on the amount of transactions, which are handled through other branches under CBS. The details can be obtained from the branch).

The first Automated Teller Machine (ATM) was introduced in the year 1967 by Barclays Bank in Enfield Town in North London. At that time a few would have anticipated excess in ATMs. Then for many years after, the aim was to shift people off the teller lines thus lowering a bank‘s distribution costs and increase efficiency. But in the 1980s, it was noticed that people continued to visit branches, though not as frequently, so that with the added costs of ATMs, overall distribution costs were actually rising.

Then, in the mid-1990s, came surcharges, which fuelled the proliferation of off-premises ATMs, which led in turn to the current overcapacity. There was a slowdown in ATM transactions, partially because of the consumer’s reaction to the imposition of surcharges. Also by the advent of surcharging there was a massive growth in the number of ATMs as it offered ATM owner’s revenues making it economical to install ATMs where they might not have been placed otherwise.

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National Financial Switch

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Any bank can now join National Financial Switch:-Press release July 26,2011

Any bank with Core Banking Solution with 24 X 7 transaction banking capabilities with ATM or no ATM can now join the National Financial Switch (NFS) through a sponsor bank. This would facilitate even the non- scheduled Urban Co-op Banks and Regional Rural Banks to have access to the National Network of 78,000 + ATMs in the country. So far, access was limited to only scheduled banks with RTGS membership. Two Sub-members, The Pandharpur Urban Co. Op. Bank Ltd.(PUC) with their three ATMs in Pandharpur, Maharashtra (through their Sponsor ICICI Bank Ltd) and Dr. Annasaheb Chowgule Bank (DAC) with their Four ATMs in Solapur, Maharashtra (through their Sponsor HDFC Bank Ltd) have gone live on NFS Network. This is a step forward to inclusive growth of financial services in the Country and serving to the Customers of the smaller Banks, UCBs and RRBs. By this Sponsor Bank Scheme on NFS, connectivity of ATMs across the Country would be increased and Customers would be able to access the ATMs in the remotest areas of the Country.

Background

The Institute of Development and Research in Banking Technology (IDRBT), Hyderabad had been providing ATM switching service to banks in India through National Financial Switch . IDRBT decided to hive off its operational role on ATM switching to have focus on research and development and was looking for a suitable arrangement for shifting this business to some national level payment system organization. National Payments Corporation of India (NPCI) considered this as an opportunity and started discussions with IDRBT on the feasibility of taking over.

The Board for Regulation and Supervision of Payment and Settlement systems (BPSS) at its meeting held on September 24, 2009 has approved in-principle to issue authorisation to NPCI for operating various retail payment systems in the country. Reserve Bank of India has granted authorisation to NPCI to take over the operations of National Financial Switch (NFS) from the Institute of Development and Research in Banking Technology (IDRBT) on a ‘as is where is basis’ on October 15, 2009.NPCI has deputed its officials to IDRBT Hyderabad and NPCI has taken over NFS operations from December 14, 2009.

While the primary site is located in the IDRBT Campus at Hyderabad, the back up site is being developed at Mumbai.

[edit] Member banks

The NFS Network connects 83,648 ATMs of 59 member banks and 2 sub-member banks, which is the largest number of ATMs under a single network in India.

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NFS Member Banks ATMs

Sr No Bank Name No of ATMs

1 Abhyudaya Cooperative Bank 96

2 Allahabad Bank 316

3 Andhra Bank 1025

4 Axis Bank 7591

5 Bank of Bahrain and Kuwait 2

6 Bank of Baroda 1800

7 Bank of India 1602

8 Bank of Maharashtra 500

9 Barclays Bank 39

10 Bassein catholic Co-op Bank 23

11 Canara Bank 2623

12 Catholic Syrian Bank 164

13 Central Bank of India 1217

14 Citi Bank N.A. 701

15 City Union Bank 315

16 Corporation Bank 1256

17 Cosmos Cooperative Bank 116

18 Dena Bank 520

19 Development Credit Bank 140

20 Dhanalakshmi Bank 425

21 Dombivli Nagari Sahakari Bank 22

22 Deutsche Bank 63

23 Federal Bank 832

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24 Gopinath Patil Parsik Janata Sahakari Bank 18

25 HDFC Bank 6522

26 ICICI Bank 6913

27 IDBI Bank 1496

28 Indian Bank 1209

29 Indian Overseas Bank 1245

30 IndusInd Bank 665

31 ING Vysya Bank 422

32 Jammu and Kashmir Bank 436

33 Janakalyan Sahakari Bank Ltd 13

34 Janata Sahakari Bank 20

35 Kalyan Janata Sahakari Bank 19

36 Karnataka Bank 295

37 Karur Vysya Bank 605

38 Kotak Mahindra Bank 755

39 Lakshmi Vilas Bank 327

40 Mahanagar Cooperative Bank Ltd 8

41 NKGSB Co-operative Bank 41

42 Oriental Bank of Commerce 1242

43 Punjab and Maharashtra Cooperative Bank 42

44 Punjab and Sind Bank 109

45 Punjab National Bank 5619

46 Ratnakar Bank 42

47 Saraswat Cooperative Bank Ltd 135

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48 Shamrao Vithal Cooperative Bank 115

49 South Indian Bank 568

50 Standard Chartered Bank 315

51 State Bank of India (*) 26644

52 Syndicate Bank 1235

53 Tamilnad Mercantile Bank 223

54 Thane Janata Sahakari Bank Ltd. 60

55 UCO Bank 721

56 Union Bank of India 2759

57 United Bank of India 584

58 Vijaya Bank 562

59 Yes Bank Limited 280

Total 83640

Sr No Sub-member Bank name No of ATMs

1 Pandharpur Urban Co-op Bank 4

2 Dr Annasaheb Chougule Urban Co-op Bank 4

Total 8

No of Banks No of ATMs

Member Bank 59 83640

Sub-member Bank Name 2 8

Total 61 83648

CashTree

From Wikipedia, the free encyclopedia

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CashTree is an interbank network in India that has been in operation since March 2004. Bank of India is the settlement bank for this network, which started with just 6 public sector banks but later expanded to admit private sector banks.

The network has 13 member banks:[1]

Bank of India Bank of Rajasthan City Union Bank Dena Bank Dhanalakshmi Bank Indian Bank Indian Overseas Bank Karnataka Bank Lakshmi Vilas Bank Syndicate Bank Union Bank of India United Bank of India Yes Bank

The Bank of Maharashtra left the network in April 2007. City Union Bank joined the network in June 2007.

[edit] See also

Cashnet MITR ATM Sharing Network

Cashnet

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Cashnet is an interbank network in India managed by Euronet Services India Pvt. Ltd. which is a subsidiary of Euronet Worldwide.

Banks are invited to join the Cashnet shared ATM network whereby each member banks’ cardholders can perform transactions at other member banks’ ATMs. Member banks will allow their customers to perform transactions at other member banks ATMs (“Issuing Bank”) and allow other member banks’ cardholders to perform transactions at their ATMs (“Acquiring Bank”). All member banks are expected to be both Issuing Banks and Acquiring Banks.

Euronet India provides the central switching and processing centre for the shared ATM network by establishing a host-to-host connection to each member bank, facilitating daily settlement between each participant and providing settlement reports. Switching and gateway services to

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international card organisations such as Visa, MasterCard, Amex and Diners Club will be provided.

Through CashnetTM a bank can drive new fee income from acquiring transaction fees on its ATMs that will contribute to reducing the cost structure of its ATM network and at the same time extend the reach of ATM services to its customers without having to invest in costly infrastructure all across the country.

The network has 14 member banks with an approximate network strength of 10,700+ ATMs. The member banks of Cashnet are:

Axis Bank Barclays Bank Citibank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank HDFC Bank HSBC IDBI Bank ING Vysya Bank Standard Chartered Bank Kotak Mahindra Bank

Cashnet is India’s largest private shared ATM network with IDBI Bank acting as the Settlement Bank. The Reserve Bank of India (RBI) has granted the following approval on the 8 April 2003. Cashnet was officially launched in Mumbai on 21 May 2003, and is the first Independent nationwide-shared ATM network in India.

[edit] See also

CashTree MITR ATM Sharing Network National Financial Switch (NFS)

MITR ATM Sharing Network

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MITR is a Multi lateral ATM Network Sharing arrangement of 6 member Banks in India. It came into existence on 8 October 2003 with 5 member Banks.

Presently, the MITR network is having six member Banks:[1]

1. Punjab National Bank (PNB)2. Oriental Bank of Commerce (OBC)3. Indian Bank4. Karur Vysya Bank5. IndusInd Bank6. UCO Bank

PNB acts as Settlement Bank for MITR Network. State of art ATM transaction switching technology has been provided by Chennai-based Financial Software Solutions (P) Ltd.

National Payments Corporation of India

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National Payments Corporation of India

Type Public Company

Industry Finance

Founded 2008

Headquarters Mumbai, Maharashtra, India[1]

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Key people AP Hota, Managing Director & CEO[2]

Products

National Financial Switch (NFS), Interbank

Mobile Payment Service (IMPS), RuPay,

Cheque Truncation System (CTS), Aadhaar

Enabled Payment System (AEPS), ACH

Website Official site

Reserve Bank of India, after setting up of the Board for Payment and Settlement Systems in 2005, released a vision document incorporating a proposal to set up an umbrella institution for all the RETAIL PAYMENT SYSTEMS in the country. The core objective was to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.

IBA's untiring efforts during the last three years helped turning this vision a reality. National Payments Corporation of India (NPCI) was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009. It has been incorporated as a Section 25 company under Companies Act and is aimed to operate for the benefit of all the member banks and their customers. The authorized capital has been pegged at 300 crore (US$57 million) and paid up capital is 60 crore (US$11.4 million) so that the company can create infrastructure of large dimension and operate on high volume resulting payment services at fraction of the present cost structure.

NPCI would function as a hub in all electronic retail payment systems which is ever growing in terms of varieties of products, delivery channels, number of service providers and diverse Technology solutions.

NPCI has a mandate to create a domestic card scheme.The Brand name finalised for the same is RuPay. This scheme would be similar to domestic card schemes one of which is China UnionPay in China. China UnionPay (CUP) was a national agenda for a few years by mandating all domestic transactions to be routed through the national card system. Now China UnionPay cards are accepted in 26 countries. The card base is 1.8 billion. Bulk of the payments are made in China by CUP cards. Although it may not be possible to mandate such transaction flow in India, a domestic card is not a distant dream if all banks work in a co-operative framework. NPCI can reach the scale of China UnionPay by excelling in service quality and by placing the next generation products and services.

Vocalink in UK provides another benchmark for NPCI. Vocalink facilitates money transfer from any bank account to any other bank account in UK on a real time 24 x 7 basis. This implies that the experience of RTGS has been extended to retail payment segment. Now that more than

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60,000 bank branches in the country are covered under Core Banking Solution, this is very much a feasible proposition in India and would be known as India MoneyLine.

NPCI would also benchmark against Bankserv in South Africa and KFTC in South Korea in terms of operational efficiency, reach across the country and range of products and services.

[edit] Organisation

Presently, there are ten core promoter banks (State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC). The Board consists of Shri N. R. Narayana Murthy, Chairman, Infosys Technologies Ltd as the Chairman, Nominee from Reserve Bank of India, Nominees from ten core promoter banks and Shri A.P.Hota, Managing Director and Chief Executive Officer, NPCI. The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) at its meeting held on September 24, 2009 has approved in principle to issue authorisation to NPCI for operating various retail payment systems in the country and granted Certificate of Authorisation for operation of National Financial Switch (NFS) ATM Network with effect from 15 October 2009. NPCI has deputed its officials to IDRBT Hyderabad and NPCI has taken over NFS operations from 14 December 2009. Membership regulations and rules are being framed for enrolling all banks in the country as members so that when the nation-wide payment systems are launched, all would get included on a standardised platform.

A Technical Advisory Committee has also been constituted with two professors of IIT, Mumbai. Prof. N.L.Sarda is the Chairman and Prof. G.Sivakumar is the Co-Chairman of the Technical Advisory Committee. Members in this committees are drawn from banks at the level of Deputy General Manager/ Asst. General Manager.

[edit] Services

The corporation service portfolio now and in the future include:

National Financial Switch(NFS)) which connects 83,648 ATMs of 61 banks (59 member+ 2 sub-member banks) Interbank Mobile Payment Service (IMPS) provided to 28 member banks which have registered more than 14

million customers Aadhaar-Enabled Payment System (AEPS) - A payment system for UID based transactions. RuPay - Domestic Card Scheme Cheque Truncation System (CTS) National ACH Service

Provision coverage ratio refers to the percentage of the loan amount that the bank has set aside as provisions to meet an eventuality where the loan might have to be written off it becomes irrecoverable.

In simple terms it can be explained as bad debts which becomes a loss to the bank. It is a measure that indicates the extent to which the bank has provided (set aside money

to bear the loss) against the troubled part of its loan portfolio. Provision coverage ratio = Cumulative provisions / Gross NPAs Here NPA means Non –Performing Asset.

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Interbank Mobile Payment Service

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Interbank Mobile Payment Service or IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put high interbank fund transfers in a secured manner with immediate confirmation features. It belongs to National Payments Corporation of India, an umbrella organisation for all retail payment systems in India.This facility is provided by NPCI through its existing NFS switch. [1]

Currently majority of interbank mobile fund transfer transactions are channelised through NEFT mechanism. Under NEFT, the transactions are processed and settled in batches, hence are not real time. Also, the transactions can be done only during the working hours of the RTGS system.

In the above context, NPCI has carried out a pilot on mobile payment system initially with 4 member banks viz State Bank of India, Bank of India, Union Bank of India and ICICI Bank in August 2010. Yes Bank, Axis Bank and HDFC Bank have joined this pilot in month of September, October and November 2010 respectively. Interbank Mobile Payment Service (IMPS) public launch happened on 22nd November 2010 by Smt. Shyamala Gopinath, DG RBI at Mumbai and this service is now available to the Indian public.

[edit] Objectives of IMPS

1. To enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds

2. Making payment simpler just with the mobile number of the beneficiary3. To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail payments4. To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile

Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner

5. To build the foundation for a full range of mobile based Banking services.

[edit] Member Banks

1. Andhra Bank2. Axis Bank3. Bank of Baroda4. Bank of India5. Canara Bank6. Catholic Syrian Bank7. Citibank8. Corporation Bank9. Dhanlaxmi Bank10. Development Credit Bank11. Dombivli Nagari Sahakari Bank12. Federal bank

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13. HDFC Bank14. ICICI Bank15. IDBI Bank16. Indian Bank17. Indian Overseas Bank18. IndusInd Bank19. Karur Vysya Bank20. Kotak Mahindra Bank21. Lakshmi Vilas Bank22. Oriental Bank of Commerce23. Punjab National Bank24. State Bank of India25. State Bank of Bikaner and Jaipur26. South Indian Bank27. Syndicate Bank28. Tamilnad Mercantile Bank29. The Greater Bombay Co-operative Bank LTD30. UCO Bank31. Union Bank of India32. Vijaya Bank33. YES Bank

[edit] Pre-Requisites for Mobile Banking through IMPS

Registration for Remitter:

* Register yourself for mobile banking service with bank * Get Mobile Money Identifier (MMID) and MPIN from the bank * Download Software (Application) for mobile banking (ensure the compatibility of mobile with the application) or use the SMS facility in your mobile if your bank provides IMPS on SMS

Registration for Beneficiary:

* Link your mobile number to the account in the respective bank. No need to register for mobile banking service. * Get Mobile Money Identifier (MMID) from the bank

For Remitter (To send money):

* Login to the application and select the IMPS menu from the IMPS or use the SMS facility in your mobile if your bank provides IMPS on SMS * Get Beneficiary Mobile number and MMID * Enter Beneficiary Mobile number, beneficiary MMID, Amount and your MPIN to send * Await confirmation SMS for the debit in your account and credit in beneficiary account * Note the transaction reference number for any future query

For Beneficiary (To receive money):

* Share your Mobile number and MMID with the remitter

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* Ask the remitter to send money using your Mobile number and MMID * Check the confirmation SMS for credit to your account from the remitter * Note the transaction reference number for any future query

Aadhar-enabled payment system

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Aadhaar Enabled Payment System or AEPS is an Indian payment system developed by National Payments Corporation of India based on unique identification number, the AADHAAR.[1] The system allows a person holding an Aadhaar number to carry out financial transaction on a Micro-ATM provided by the Banking correspondent.

[edit] History

AEPS was launched in March 2011. The pilot project is being run in districts of Jharkhand (where the first unique identity, or UID, numbers have been issued) in association with three banks, ICICI Bank , Union Bank of India and Bank of India (TCS Solution).

[edit] The service

AEPS project is to make banking easier for poor people by involving business correspondents in rural and remote areas in India.

The four basic types of banking transactions that AEPS allows are balance enquiry, cash withdrawal, cash deposit and Aadhaar to Aadhaar funds transfer. All that a customer needs for availing of the AEPS services is an AADHAAR number. Currently, the NREGA wages are disbursed through AEPS. These transactions are biometric based transactions in which routing of authentication request to UIDAI is done by NPCI. It is a real time payment system, the account gets debited/credited upon successful authentication within seconds. All the banks participating in AEPS comply to interface specification published by NPCI.

RuPay

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Click [show] on right for more details.[show]

RuPay

Operating area India

Members Indian Banks Association (IBA)

ATMs ??

Founded 2011

RuPay[1] is the Indian domestic card payment network being set up by National Payments Corporation of India (NPCI) at the behest of banks in India. This project had been conceived by Indian Banks Association and had the approval of Reserve Bank of India. The objectives to be fulfilled are :

1. Reduce overall transaction cost for the banks in India by introducing competition to international card schemes.

2. Develop products appropriate for the country particularly for financial inclusion.3. Provide card payment service option to many banks who are currently not eligible for card issuance under

the eligibility criteria of international card schemes.4. Build environment whereby payment information of the country remains within the country5. Shift Personal Consumption Expenditure (PCE) from cash to electronic payments in a growing economy

with a population of 1.2 billion

NPCI will soon provide a full range of card payment services including the RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards which will be accepted in India and abroad, across various channels like POS, internet, IVR and mobile etc. Initial focus of NPCI would be to approach those banks who have not been issuing any payment card at all. Regional Rural Banks and urban co-operative banks are ideal. In due course, it would approach other banks and enter the mature segments in competition with international card schemes who have already got a good presence.

Reserve Bank approval has already been received for NPCI to approach banks for issuance of RuPay cards for acceptance at ATMs and micro-ATMs.

Once POS acceptance and e-commerce infrastructure is ready, NPCI would approach for final approval for rolling out RuPay cards that would be accepted on all channels

[edit] RuPay Trademark and logo design

RuPay Logo RuPay is a coinage which indicates coming together of ‘Rupee’ and ‘Payment’ to announce the launch of a new world-class retail payment system in India. The new system is

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simple to use, affordable, state-of-the –art and easily accessible even in the remotest corner of India round-the-clock.

The RuPay Visual Identity is a modern and dynamic unit. The orange and green arrows indicate a nation on the move and a service that matches its pace. The Indian colors connote that it’s deeply rooted in India. The color blue stands for tranquility and peace which is precisely the sense that people must get from the brand ‘RuPay’. The bold and unique typeface grants solidity to the whole unit and symbolizes a stable entity.

The Unique Identification Authority of India (UIDAI) (Hindi: भारतीय वि�शिष्ट पहचान प्राधि�करण), is an agency of the Government of India responsible for implementing the AADHAAR scheme, a unique identification project. It was established in February 2009, and will own and operate the Unique Identification Number database.[1] The authority aims to provide a unique id number to all Indians, but not smart cards.[2] The authority will maintain a database of residents containing biometric and other data.[3]

The agency is headed by a chairman, who holds a cabinet rank. The UIDAI is part of the Planning Commission of India.[1][4] Nandan Nilekani, former co-chairman of Infosys Technologies, was appointed as the first Chairman of the authority in June 2009.[5] Ram Sewak Sharma, an IAS Officer of Jharkhand Government is the Director General and Mission Director of the Authority.[6]

Cheque Truncation System (CTS) or Image-based Clearing System (ICS) is a project undertaken by Central banks of many countries

such as India (Reserve Bank of India – RBI), UAE (Central bank), Saudi Arabia (Saudi Arabia Monitoring Agency – SAMA), etc. for

faster clearing of cheques.

CTS / ICS promises to bring multiple benefits to customers by substantially reducing the time taken to clear the cheques as well as

to the banks by enabling them to offer better customer services and increasing operational efficiency by cutting down on overheads

in physical clearing. In addition, CTS / ICS also offers better reconciliation and fraud prevention. CTS / ICS uses the cheque image,

instead of the physical cheque itself, for clearing of the cheque. The cheque image is truncated at the presenting bank.

Subsequently, the cheque image moves through various steps in the cheque-clearing process and transactions are settled on the

basis of images and electronic data.

Newgen's Solution Suite for Image-based Clearing System (ICS) consists of following components:

Software Component Description Architecture

ChequeFlow For handling Head Office/high volume branches Outward and inward Clearing

Client/Server-based multi-user system, with rights-based access management, built on Newgen’s BPM Platform. Suited for large volume branches as well as central branch.

ChequeFlow Lite For handling branch Outward and Inward processing Workstation-based system suited for low-

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volume branches

Cheque Exchange For Image Sorting and settlement at the Central bank Client/Server-based multi-user system. This is a rule-based sorting and settlement switch, built on Newgen’s BPM platform

OmniTransport Upload/Download interfaces for the branches and head office. This is required when the branches want to communicate with the head office on a secure network

The transmission is performed on a secure network over SSL, with industry-standard encryption

OmniDocs Cheque archival and retrieval system for storage of images and data at a central location, with capability to deploy remote image servers at multiple locations for faster image access

Client/Server-based multi-user system. Comes with out-of-box integration with ChequeFlow and ChequeExchange

Records Management System

Available as an add-on component to OmniDocs for managing complete lifecycle of physical and electronic documents as per the Records Management policies laid down by the organization and those required by law

 

The solution suite has been developed on the strong platform of Newgen Imaging and Workflow solutions, i.e.

OmniFlow – A versatile, rule-based workflow engine

OmniDocs – A strong and robust document management system

Batch Scan – A batch mode scanning application with MICR data display and Image quality analysis

Imaging Libraries – For image-quality analysis and verification

Representative List of Newgen Customers using CTS:

HSBC, India

ABN AMRO, India

Bank of America, India

ING Vysya, India

Kotak Mahindra Bank, India

Bank of Baroda, India

Andhra Bank, India

Indian Bank, India

United Bank of India, India

Karnataka Bank, India

Abu Dhabi Commercial Bank, UAE

RAKBANK, UAE

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A Glorious Past - A Brighter Future

Union Bank of India was established on 11th November 1919 with its headquarters in the city of Bombay now known as Mumbai.

The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the Father of the nation in the year 1921, and he said on the occasion:

"We should have the ability to carry on a big bank, to manage efficiently crores of rupees in the course of our national activities. Though we have not many banks amongst us, it does not follow that we are not capable of efficiently managing crores and tens of crores of rupees."

His prescient words anticipated the growth of the bank that has taken place in the decades that followed. The Bank now operates through over 2800 branches across the country. The Bank's core values of prudent management without ignoring opportunities is reflected in the fact that the Bank has shown uninterrupted profit during all 90 years of its operations.

Union Bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy. Industries, exports, trading, agriculture, infrastructure and the individual segments are sectors in which the bank has deployed credit to spur economic growth and to earn from a well diversified portfolio of assets.

Resources are mobilised through Current, Savings and Term Deposits and through refinance and borrowings from abroad. The Bank has a large clientele base of over 24 million.

On the technology front the Bank has taken early initiatives and 100% of its branches are computerised. The Bank has also introduced Core Banking Solution with connectivity between branches. 100% of the business of the Bank is under Core Banking Solution making it a leader among its peers in infusion of technology. Many innovative products are developed using the technology platform to offer an array of choices to customers, adding speed and convenience to transactions. Technology will also enable the Bank to derive substantial cost reduction while creating the requisite capacity to handle the ever increasing volume of business in a competitive environment that offers immense opportunities.

At the end of September 2011 the Bank achieved total business level of Rs.3,42,856 crore (Rupees Three Lakh Forty two thousand Eight hundred fifty six crore)

Behind all these achievements is a dedicated team of staff, which is truly cosmopolitan in its composition. Many generations of members of staff have contributed in building up the strong edifice of the Bank. The present team of over 29000 members of staff distinguishes itself with its customer centricity, willingness to learn and adherence to values enabling us to be recognised as a caring organisation where people enjoy their work and relationship with customers.

Financial Inclusion Introduction

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Definition :-

The literary meaning of Financial Inclusion (FI) can be simply stated as, 'Everybody having access to financial services'. It can be explained as every eligible citizen of the country who have been till date were left aloof of formal financial institutions being tagged as un-bankable, having a bank account in his/her name wherein he/she can avail of all the possible financial services as per the need and availability of such services in order to help every citizen being better off from the financial side.

Bank's FI Vision :-

With a commitment to reach the un-reached and with a firm corporate belief that even the poor is bankable, financial services to be extended at affordable cost in an on-going basis to improve quality of life of all those who have been hitherto deprived of financial services from formal financial institutions.

Bank's FI Mission :-

To cover 120000 villages across India by enrolling 30 million customers through Bio-Metric Smart Card technology under one of the coveted projects 'Financial Inclusion' by the year 2015.

Scope :-

The scope of FI is as deep as the Indian Ocean, and has two forms of measurement. First is 'the business' and the second is 'the necessity for making the growth of the country real and inclusive' both of which can be justified by this staggering fact : about 41% of the 1.2 billion Indian population which is spread in every nooke and corner of the country, not only in the six lacs plus villages but also in the slums of metro-cities and towns, are still unreached/unbanked i.e. they do not have access to financial services from formal financial institutions. The task seems to be a daunting one but the remarkable success Union Bank of India have made in terms of covering 2.1 million customers under the Bio-Metric Smart Card technology just within 2 years of the start of its FI drive signifies that the FI vision of the bank can be turned into a reality and it will surely achieve its mission overcoming all obstacles in its path of just not growing the bank but making 'growth inclusive' and development of the 'Common Man of India'.

Models of FI

Branch Banking :- The bank has earmarked 1000 rural and semi-urban branches each of which will cover at least 10 villages and make these villages '100% Banking Habit Villages. Out of these, some branches work as 'Base Branch' for monitoring the operations of the Business Correspondents who carries the entire Bio-Metric Card process for the bank.

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On reviewing the situation and the fast expanding nature of Bio-Metric Smart Card technology, the bank has decided to open 200 dedicated FI branches across India, whose only work will be to carry out the FI initiatives of the bank and monitor the working of the Business Correspondents.Branchless Banking inFI :- Branch Banking though being the most contemporary and traditional form of banking and practiced all across the globe is probably not the form of banking which will be the way forward to reach the millions of unreached spread across the vast geography of the Indian sub-continent. The lacunas of this form of banking more so in the context of FI target group are numerous, like setting up of infrastructure at difficult locations, huge cost implications and the biggest of all is driving the un-educated and ill-informed masses towards bank branches. Having brainstorming over all these problems, Union Bank of India has come out with the pioneering idea of branchless banking under Biometric Smart Card technology by appointing BC-BF (Business Correspondents / Business facilitators) to reach the unreached and taking banking services at the doorstep of the unreached.

At present the bank has appointed three BCs who provide end to end solution to carry out banking operations through branchless banking mode. The bank appointed BC along with its technology team with the help of enrollment stations comprising of a laptop, web camera and finger print capturing machine enrolls the beneficiary. The data recorded in computer includes Name, address, father's/husband's name, occupation, annual income, category etc. Thereafter, impressions of all the ten fingers are captured and stored in the computer.

On the basis of the data captured following simplified KYC norms the bank opens a No Frill S.B a/c. The data thus captured is stored in the Chip embedded in the card and the card thus produced for a particular beneficiary is handed over to him/her. The advantage of the card is that instead of pin number it recognizes and authenticates transaction based on the fingerprints of the account holder stored in the chip embedded in the card. The Biometric technology eliminates the probability of impersonation and embezzlement. It is safe, as it allows only the account holder on matching his fingerprints to carry out any transaction. This card has 15 slots, meaning thereby that the bank can offer 15 different financial products to the cardholder like savings, term deposit, recurring deposit, Loan product, Insurance etc.

Once the card is issued to the customer, it is ready for operations. The representative of the BC will move to the customer with the hand held device (Point of sale machine (POS) which is also works as storage device. The POS is activated only after the representative identifies himself with the agent card provided to him. Once the POS machine is ready for operation, the account holder can start transacting after completing his identification process - inserting his card, matching the fingerprints etc.

Depending on the nature of the transaction, the agent either receives the cash from or pays cash to the accountholder. After completion of the transaction; the POS generates a receipt to that effect in duplicate of which one copy is given to the account holder duly signed by the agent.

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At the end of the day, the agent goes to a nearest telephone landline point and uploads the data to the CBS which is a shared server maintained by the BC with viewing rights to the bank. Once all the active POS machines are sunk, the technology provider will come to know about all the transactions carried out on POS machines. It can also track the missing POS if any.

After netting the debit-credit transactions BC will arrive at the exact amount to be deposited or withdrawn in/from the BCs account opened in our Nodal Branch/Base Branches. The authorized branch official of the Nodal Branch, who has the password protected authority of viewing the details of each transaction stored on the shared server will, after reconciling with the TID, either debits or credits the BC's account and credits or debits to the subsidiary head 'SB Smart Card' opened for a particular project. Thus, the deposits /withdrawals get integrated with the Bank's SB portfolio.

Products for FI

Remittance Product under FI :- Purpose :- It's a facility made keeping in mind the urban laborers and hawkers. Especially, to help these people to send money to their homes through this facility. Eligibility :- Currently this service is only available to workers in Mumbai belt to send their money to Bihar & Uttar Pradesh. The sender should have Union Bank of India's card while the receiver should have an A/C with Union Bank of India. Current Number of Beneficiary:- Currently over 10,000 migrant workers are benefited by this scheme.NO FRILLS Savings AccountOpen a "No Frills savings account" with UNION BANK OF INDIA and avail necessary banking facilities while maintaining a nominal minimum balance.

Salient Features of NO FRILLS SAVING ACCOUNT

All resident individuals eligible to open a "No frills saving account" except NRIs,trusts, societies, etc. Any number of accounts in a family can be opened under this scheme. In north eastern states account can be maintained with zero balance. No cheque book facility will be available. One ATM / International debit card will be issued to the account holder. Withdrawal of cash will be available only through ATM wherever online ATM facility is available. At other

branches, withdrawals will be through withdrawal slip. Number of free customer induced debit entries will be restricted to 30 per half year including debit entries

through ECS/ATM. Entries above 30 will be charged @ Rs.5/- per entry. Total credits in the account should not exceed Rs.1,00,000/- in a year. There is no restriction on entries for deposit of Cash/Cheques in the account.

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Nomination facility is available. The balance in all the accounts of the accountholders taken together in the bank should not exceed

Rs.50,000/-.

Special facilities under "No Frills Account" for residents of North-eastern states i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland & Tripura:-Clean overdraft upto Rs.500/-once in a year (Conditions apply).

Note: If at any point of time the balance in the NO FRILL ACCOUNT exceeds Rs. 50,000/- or total credits in the account in a year exceed Rs.1,00,000/-, the account will be kept deactivated and can only be re-activated as a regular saving account after completion of KYC formalities.

For Useful Information please click the links below  :

Latest Interest Rate Benefits to Senior Citizen Operation of Accounts Nominations Service Charges

Domestic Rates of InterestDomestic Term Deposits : (% p.a.)

 Rates are in Percentage Per AnnumEffective from 04/08/2011  

Less than Rs. 15 Lakhs

Rs. 15 Lakhs to  less than 

Rs. 1 Crore

Tenor  Rs. 1 Crore  to less than Rs. 10  Crores

4.00 4.00 7 - 14 days

4.00

4.75 4.75 15 - 45 days

4.75

6.00 5.25 46 - 90 days

5.25

7.00 7.00 91 - 120 days

7.00

7.50 7.25 121 - 179 7.25

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days8.60 8.00 180 days 8.008.75 8.00 181 - 269

days8.00

8.75 8.15 270 days to < 1 yr

8.15

9.25 9.15 1 yr to < 5 yrs

9.00

9.40 9.00 5 yrs 8.759.40 8.50  > 5 yrs

to < 8 yrs8.50

8.50 8.50 8 yrs to 10 yrs

8.50

 * For deposits of Rs 5 Crores and above please contact our nearest branch.

SPECIAL RATE OF INTEREST TO SENIOR CITIZEN

The Bank offers an additional rate of 0.50% p.a. on deposits of one year and above to senior citizens, on our domestic term deposit schemes.

ELIGIBILITY: Any person who has completed the age of 60 years is treated as a senior citizen for obtaining the benefit of the additional interest. JOINT ACCOUNT Senior citizen may deposit jointly with other persons below the age of 60, under the special scheme for senior citizen. In such cases the name of the senior citizen is to be given as the first name in the application. NRI Senior Citizens are not eligible for the benefit of additional interest available to resident senior citizens.  DOCUMENTATION: At the time of opening of a new deposit account, the senior citizen may produce any of the following documents as proof of age. 

1. Senior School Leaving Certificate indicating date of birth.2. LIC policy3. Voters Identity Card4. Pension Payment Order

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5. Birth Certificate issued by the competent authority6. Passport7. Any other document acceptable to the bank

 VERIFICATION: Once the age of a senior citizen is verified for accepting deposit under the special scheme for senior citizens, no further proof of age is required while accepting subsequent deposits or for renewal of deposit of the senior citizen.. Deposit accounts opened in joint names of two or more individuals will have a mandate for disposal of the balance in the account on the date of maturity and/or on the death of one or more joint depositors. These mandates are as under :- Either or Survivor: If the account is in the name of two individuals say, A & B, the final balance alongwith interest, if applicable, will be paid to the either of the account holder i.e. A or B on the date of maturity or to the survivor on death of anyone of the account holders. Anyone or Survivor: If the account is in the name of two or more individuals say, A, B and C, the final balance alongwith interest, if applicable, will be paid to any of the account holders is A or B or C on the date of maturity On the date of any one of the account holder say A, the final balance alongwith interest if applicable will be paid to any two of the surviving account holders i.e. B or C. On the death of any two of account holders say A and B, the final balance alongwith interest, if applicable will be paid to surviving account holder i.e. C. Former or Survivor: If the account is in the name of two individuals say, A & B, the final balance alongwith interest, if applicable, will be paid to the former i.e. A on date of maturity and to the survivor on death of anyone of the account holders. Latter or Survivor: If the account is in the name of two individuals say, A & B, the final balance alongwith interest, if applicable, will be paid to the latter i.e. B on date of maturity and to the survivor on death of anyone of the account holders. 

UNION BANK OF INDIA  

Our Bench Prime Lending Rate [BPLR] w.e.f. 28/11/2011 15.50% 

Our Base Rate w.e.f.26/12/2011  10.65%.

Village Knowledge Centre (VKC) 

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What is VKC? Village Knowledge Centre (VKC) serves as information dissemination centre providing instant access to farmers to latest information/ knowledge available in the field of agriculture, starting from crop production to marketing. A “VKC In-charge” who looks after the operations of the VKC mans every VKC. It’s Importance:- Development in a country as large and diverse as India poses special challenges. As India embarks on a trajectory of high rates of economic growth, it is imperative to focus on the impact of such growth on society. Economic growth will translate to sustainable development only when it is inclusive, creating capacity for better lifestyle among those living at the bottom of the pyramid - majority of whom are residing in the 6 lacs plus villages. Our Bank has taken various initiatives to promote inclusive growth and to achieve sustainable development as our contribution towards nation building. VKC is one of the many pioneering initiatives taken by our Bank that aims at impacting rural livelihoods to build resourceful and progressive villages.

1st VKC of our Bank was set up in May, 2005. For this innovative initiative our Bank has been awarded the prestigious “Skoch Challenger Award” in March, 2007. Presently, we have more than 200 VKCs across the country. For all round socio economic development of villages, more than 100 villages across the country have been adopted through selected VKCs under "Union Adarsh Gram" project.

Our VISION:- Achieving inclusive growth by empowering rural community with information, knowledge, and access to better livelihood opportunities. Our MISSION:-

Improving Agriculture o Imparting knowledge on new developments, improved methods of cultivation

/technologies in the field of agriculture.o Dissemination of weather data and agro climatic conditions, latest information on

prices of agriculture produce to farmers.o Imparting knowledge on diversification of Agriculture and developing Farm-

based Enterprises. Community Development

o Formation of Self Help Groups and Farmers Clubs.o Disseminating information about various government sponsored schemes.o Coordinating with various Govt. departments for developmental activities.

Financial Inclusion o Financial counselling to the rural people for better management of their financial

needs.o Making command area villages as “100% Banking Habit Villages”.

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o Informing farmers about various schemes/products of our Bank suiting their specific needs.

Our GOALS:- Improving Agriculture

o Impart knowledge on new developments, improved methods of cultivation /technologies in the field of agriculture and dissemination of weather data and agro climatic conditions, latest information on prices of agriculture produce to farmers.

o Imparting knowledge on diversification of Agriculture and developing at least 2 Farm-based Enterprises in a village per year.

o Bring in positive change in the livelihood of at least 300 farmers in a year in the command area of a VKC by increased income levels and higher standards of living.

Community Development o Form at least 5 Self Help Groups per village in the command area of VKC.o Provide constant support to the SHGs to ensure that at least 75% sustain beyond 6

months to become eligible for bank linkage.o Enable the group to graduate economically for taking up income generating

activities and increasing their credit absorption capacity.o Form at least 1-2 Farmers Clubs per village in the command area of VKC.o Create awareness in the command area villages about various government

sponsored schemes to take benefit of subsidy/grants.o Coordinating with Govt. departments to ensure flow of allocated funds under

various developmental schemes to the villages.

Financial Inclusion o Ensure that every family in the command area villages has at least 1 active bank

account.o Provide financial counselling and inform about various schemes /products of our

Bank to at least 5 people in a day.o Special attention and counselling to the vulnerable people who are heavily

indebted to informal sources of finance and defaulter to Banks/FIs to come out of debt trap.

 Role of VKC In-charge:-

Impart knowledge on new developments, improved methods of cultivation /technologies in the field of agriculture.

Dissemination of weather data and agro climatic conditions, latest information on prices of agriculture produce to farmers.

Imparting knowledge on diversification of Agriculture and developing at least 2 Farm-based Enterprises in a village per year.

Bring in positive change in the livelihood of at least 300 farmers in a year in the command area of a VKC by increased income levels and higher standards of living.

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Form at least 5 Self Help Groups per village in the command area of VKC. Provide constant support to the SHGs to ensure that at least 75% sustain beyond 6

months to become eligible for bank linkage. Enable the groups to graduate economically for taking up income generating activities

and increasing their credit absorption capacity. Form at least 1-2 Farmers Clubs per village in the command area of VKC. Create awareness in the command area villages about various government sponsored

schemes to take benefit of subsidy/grants. Coordinate with Govt. departments to ensure flow of funds to the villages allocated under

various developmental schemes. Ensure that every family in the command area villages has at least one active bank

account. Provide financial counselling and inform about various schemes /products of our Bank to

at least 5 people in a day. Special attention and counselling for the vulnerable people who are heavily indebted to

informal sources of finance and defaulter to Banks/FIs to come out of debt trap.

Work as a relationship manager between the Bank and the farmers.

 Village Knowledge Center Portal To support the activities of VKC our Bank has launched “Village Knowledge Center Portal” in our Bank’s Intranet. For accessing “VKC Portal” (http://172.31.14.205/vkc), go to UBINET (http://172.31.14.205/ubinet ) and click “VKC Portal” under Useful Links. VKC Portal would provide all the information related to VKC and links to different website addresses that VKC In-charge need to access to provide updated information to the farmers. VKC Portal can be accessed for the following information:-  Past 24 hrs Weather Report and Today’s Weather Forecast Weather Forecast for the Next 5 Days. Weekly Crop Advisory. Kisan Call Centre. Market Prices of Agri Commodities. Latest Technologies in the field of Agriculture. Animal Husbandry. Farm-based Enterprises. Model Bankable Projects. Govt. Schemes Related to Agriculture. Websites of State Agriculture Departments. Websites of Agricultural Institutes. Website of Ministry of Rural Development.

Partnership with Govt: Small Farmers Agri-Business Consortium [SFAC] 

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"The establishment of the Small Farmers Agri-Business Consortium (SFAC) in 1994 was a sequel to the Finance Minister's 1992-93 Budget Speech including Government of India's intention to set up an autonomous body for the promotion and development of small farmers' agri-business activities. Such a body would be funded by institutions such as the RBI, NABARD, IDBI and the like. It was much clear that the Consortium's membership would include inter-alia, various Development Banks, Public Sector Corporations, Private Sector Companies, Scientific Institutions, besides Farmers' Associations.

The SFAC was envisaged as a catalytic/facilitating agent to promote the type of activities enumerated on the principles of economic efficiency, environmental soundness and social equity, so that the country began a new chapter in its agricultural history, where farm enterprises would yield not only more quality products but also more productive jobs and higher income in rural areas.

Union Bank of India has entered into a Memorandum of Understanding [MOU] with SFAC. The status of projects financed by the Bank show a total project cost of more than 1400 crore rupees as on March 2010

The website of SFAC can be accessed at http://www.sfacindia.com/

Joint Venture – Union KBC Asset Management Company.

 

In order to enter the Mutual Fund Product space in a meaningful way, Union Bank of India has tied up with KBC, Belgium to setup a joint venture for Mutual Fund Products -- Union KBC Asset Management Company Ltd.

 

The Company has an authorized capital of Rs. 100.00 Crores, with Reserves of Rs 25 crores. Union Bank of India has a capital stake of 51%, and KBC has the remaining 49%.

 

The inherent strengths of Union Bank, coupled with KBC Belgium’s strong domain expertise, is expected to lead to Union KBC becoming a strong player in the Mutual Fund Products market in a short time.

Joint Venture – Star Union Dai-ichi Life Insurance Co. Ltd.

www.sudlife.in

 

Union Bank of India is distributing Life Insurance products under corporate agency tie-up with

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Star Union Dia-ichi (SUD) Life Insurance Co. Ltd. which is the Joint Venture of Union Bank of India, Bank of India (two leading Public Sector Banks in India) & Dia-ichi Life Insurance Co. Japan (a leading Japanese Company in the Life Insurance market).

 

The Company has an authorized capital of Rs. 250.00 Crores. Bank of India has a capital stake of 48%, Union Bank of India has 26%, and Dai-ichi Life has the remaining 26%.

 

Star Union Dai-ichi Life, with the strength of the domestic partners in the Indian financial sector coupled with Dai-ichi Life’s strong domain expertise, is expected to be a strong player in the Indian Life Insurance market in a short time. The Company offers various products to serve all strata of society and cater to the needs of different Customer Groups.

KYC

Who is a customer of the Bank? For the purpose of KYC Policy, a “Customer" is defined as:

A person or entity that maintains an account and/ or has a business relationship with the Bank;

One on whose behalf the account is maintained (i.e. the beneficial owner); Beneficiaries of transactions conducted by professional intermediaries, such as Stock

Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law, and Any person or entity connected with a financial transaction, which can pose significant

reputation or other risks to the Bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

The Bank before establishing any banking relationship will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by the Reserve Bank of India (RBI) and or such other norms or procedures adopted by the Bank.

What is Due Diligence? The due diligence process that the Bank follows, includes obtaining your recent photographs, verifying your identity, verifying your address, and other information on your occupation or business and source of funds. As part of the due diligence process the Bank may also require an introduction from a person acceptable to the Bank if they so deem necessary.

Proof of identity

List of documents to be obtained from different types of customersType of customers Documents to be obtainedIndividuals 1. Passport

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For Identification 2. PAN card 3. Voter’s identity Card4. Driving License with photograph5. Identity card/ letter from employer with photo

attested (subject to the satisfaction of branch official authorized to open account)

6. Letter from a recognized public authority verifying the identity (subject to the satisfaction of branch official authorized to open account).

For Address(Post Box Number will not be accepted)

1. Passport 2. Voter’s Identity Card3. Driving Licence4. Telephone bill5. bank account statement6. letter from any recognized public authority7. Electricity bill8. Ration Card9. Letter from employer, subject to the satisfaction of

the branch official authorized to open account).

(any one document, which provides identification and address to the satisfaction of the branch, will suffice. Where the current address given by the customer differs from the address given in the document, the branch may establish the address to its satisfaction).

Joint Individuals As mentioned above for individuals for each of the joint individuals.

Non Resident Indians-Individuals Copies of Passport and Residence Visa, a valid document indicating foreign residential address and passport size photographs of the applicant. The applicant is to be duly introduced by Banker/ Notary Public/ Indian Embassy/ Local customer who has been subjected to full KYC Procedure.

Proprietary concernFor Identity of the concern,its activities, address.

Prescribed Proprietary Declaration Letterand any two of the following:Shop and Establishment

1. Registration Certificate (in case of a registered concern)

2. Certificate/ licence issued by Municipal Authorities under Shop & Establishment Act or any other similar documents indicating the activities of the concern.

3. Sales and Income Tax Returns4. CST/VAT Certificate5. Certificate/ Registration document issued by Sale

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tax/ Service Tax/ Professional Tax authorities.6. License issued by Institute of Chartered

Accountants of India, 7. Institute of Cost Accountants of India, 8. Institute of Company Secretaries of India,9. Indian Medical Council, 10. Food and Drug Control Authorities, etc.

Any of the documents for identity of the proprietor (as given above for individuals) and his addresses, Telephone/Utility Bill in the name of the concern if any.

Recent passport size Photographs of the proprietor.

Hindu Undivided familyFor Identity of the HUF, its activities, address and authority for opening and operation of its account(s)For identity of the Karta and major co-parceners of the HUF who are authorized to operate the account(s) and their addresses.

Prescribed Joint Hindu Family Letter signed by all the major Co-parceners. Declaration form from the Karta.

1. Any of the documents for identity of each of the Karta and each of the major coparceners (as given above for individuals) and their addresses

2. Recent Passport size Photographs of all such persons.

Partnership FirmsFor Identity of the Firm, its activities, address and authority delegated for opening and operation of its account(s).For identity of the partners who are authorized to operate the accounts(s) and their addresses

1. Registration Certificate, if registered2. Partnership Declaration 3. Telephone/ Utility Bill in the name of the firm

Any of the documents for identity of each of the authorized partners (as given above for individuals) and their addresses

Recent passport size Photographs of all the partners.

Companies/ CorporationsFor identity of the Company/Corporation,its activities,address and authority delegated for opening and operation of its account(s).For identity of the directors/ officials of the company/ corporation who are authorized to operate the account and their addresses.

1. Certification of Incorporation 2. Memorandum and Articles of Association3. Current list of directors with their bio-data4. Telephone/ Utility Bill in the name of the

company/corporation5. Resolution of the Board of Directors or Power of

Attorney issued for opening of the account and delegating powers to operate the account(s) of the company/corporation

Any of the documents for identity of each the directors/ authorized officials (as given above for individuals) and their addresses

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Recent passport size Photographs of directors/authorized officials.

TrustsFor Identity of the Trust, its activities, address and authority delegated for opening and operation of its account(s).For identity of the trustees who are authorized to operated the accounts of the Trust and their addresses.

1. Certificate of Registration,2. Trust Deed/ Settlers Declaration3. Telephone/Utility Bill in the name of the Trust4. List of Trustees and their bio-data (v) Resolution of

the Managing committee of the Trust for opening of the account and delegating powers to operate the accounts of the Trust. Any of the documents for identity of each settler/ founder/ trustee/ manager/ director/ power of attorney holder/ beneficiary (as given above for individuals) and their addresses Recent passport size Photographs of all such persons.

Societies, Associations NGOs, Clubs, and other organizations

For Identity of the organization, its activities, address and authority delegated for opening and operation of its account(s).

For identity of the Managing Committee Members who are authorized to operate the accounts of the organization and their addresses.

1. Certificate of Registration, if registered,2. Bye laws3. Telephone/Utility Bill in the name of the

organization4. List of Managing Committee Members and their

bio-data5. Resolution of the Managing Committee of the

Organization for opening of the account and delegating powers to operate the accounts of the organization.

Any of the documents for identity of each the authorized Managing committee Members (as given above for individuals) and their addresses

Recent passport size Photographs of all such members.

Local Bodies/Government Departments etc.For Identity of the applicant, its activities, address and authority delegated for opening and operation of its account(s).

Notification/Resolution/Letter of Permission for opening and delegation of authority to operate the account

Where a customer is permitted to act on behalf of another person/entity in conformity with the established law and practice of banking as there could be occasions when an account is operated by a mandate holder or where an account is opened by an intermediary in fiduciary capacity, in such cases KYC checks shall be performed on the beneficial owners or mandate holder also, as the case may be.

In case of opening of account in the name of minor, KYC procedure on guardian shall be

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performed. Minor, on becoming major, shall be allowed to operate the account on completing KYC procedure.

Relaxation of KYC in Small Deposit (No Frills) Accounts:

Small Deposit Accounts

Customers who intend to maintain balances not exceeding Rs. 50,000/- (Rupees Fifty Thousand only) in all their accounts taken together and the total credit summation in all the accounts taken together is not expected to exceed Rs.1,00,000/- (Rupees One Lac only) in a year and are not in position to submit the above mentioned documents are provided relaxation.

Relaxation in KYC norms

No Frills accounts can be opened by taking introduction from another account holder who has been subjected to full KYC procedure. The introducer’s account with the bank should be KYC compliant, at least six months old and should show satisfactory transactions. Photograph of the customer who proposes to open the account and also his address needs to be certified by the introducer.

Any other evidence as to the identity and address of the customer to the satisfaction of the bank.

However, if at any point of time, the balances in the accounts of such customers with the Bank (taken together) and the total credit summation exceed the above threshold, no further transactions will be permitted until full KYC procedures are completed.

 MSME Banking

Worldwide, the Micro, Small & Medium Enterprises (MSMEs) have been accepted as a major engine of economic growth and for promoting equitable development. The major advantage of the sector for India is its high employment potential at low capital cost. The labor intensity of the MSME sector is much higher than that of the large enterprises.

Union Bank is committed to extend its best services to MSMEs and at a very competitive price. You can benefit immensely from cluster specific schemes formulated to suit the needs of your industry.

BOARD OF DIRECTORS union bank

 SHRI M.V.NAIR

CHAIRMAN & MANAGING

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DIRECTORSHRI S.S.MUNDRA

EXECUTIVE DIRECTORSHRI SURESH KUMAR JAIN

EXECUTIVE DIRECTOR 

SHRI RAJESH KHULLARGOVT. NOMINEE DIRECTOR

 SHRI CHANDAN SINHA

RBI NOMINEE DIRECTOR 

SHRI B.M.SHARMACHARTERED ACCOUNTANT

DIRECTORPROF. M.S.SRIRAM

SHAREHOLDER DIRECTORSHRI S.RAVI

SHAREHOLDER DIRECTORSHRI B N BHATTACHARJEE

OFFICER EMPLOYEE DIRECTOR

DR. GULFAM MULIBIPART TIME NON-OFFICIAL

DIRECTORDR. ATUL AGARWAL

PART TIME NON-OFFICIAL DIRECTOR

Union Bank of India has completed 91 glorious years on 11th November 2010. To celebrate this happy occasion, we have launched "Bankers' Beacon" - The story of Union Bank of India. This was released at a special function in Delhi on 11th November by Shri Pranab Mukherjee, Honorable Finance Minister - Government of India.

KISAN ATM

As technology is spreading its wings across the length and breadth of the country, a need was felt by Bank to provide its customers in rural areas with an ATM which is easy to operate, does not warrant high level of literacy, remembering PINS and can read out instructions on screen to get cash or services. As a solution to this Bank plans to deploy Kisan ATMs in rural areas to serve the customers of our remote rural branches. The first such ATM is installed at Sivagangai branch Tamilnadu and inaugurated by the Honorable Finance Minister Shri P. Chidambaram. 

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ATMs so easy and convenient that people with practically no exposure to technology can use it comfortably. Features & Benefits  

This is a user-friendly cash dispensing machines It is voice enabled and worsk on bio-metric authentication like finger print verification Communicates with the user in local language Touch screen monitor to make the operations easier The screen options glow as the instructions are read out to the customer and the customer

needs only to touch the option desired by him It has got dip-type card reader and hence ensure that the machine never captures the card

inserted by the customer , even when you are on the move.

Kisan ATM cards  Bank has issued a new series of cards for the Kisan ATMs. The cards have an attractive design. ATM Functions The ATM will support the following functions:

1. Cash Withdrawal2. Balance Enquiry

 ATM operation  Kisan ATMs are meant to bring in 24x7 banking facilities with state of art technology, which was so far available only to metro and urban population, within the reach of rural masses and thus provide an much needed fillip for Financial Inclusion.Basel II Disclosures As per RBI requirement, the following details will be displayed on Bank’s website.

(Rs. in crore)Tier 1 Capital 12179

Total Capital 17882

Total Capital Required 12832

Tier 1 Ratio 8.54

Total Capital Adequacy Ratio 12.54

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. The Bank has a proactive approach towards risk management; risk philosophy involves developing and maintaining a healthy portfolio within its risk appetite and regulatory framework. The Risk Management framework is specially designed to identify key risk areas, measure, monitor, and manage them efficiently in order to deliver enhanced shareholder value by achieving an appropriate trade off between risk and returns. The Bank constantly endeavors to ensure that business function partners with the Risk Management function to drive value and the capital is used most efficiently.

2. The Risk Management Architecture of the Bank comprises an independent Risk Management Organizational structure (both at the Corporate and Field level), Risk Management Policies, Risk Measurement Tools and Risk Monitoring and Management Systems. By posting Risk Officers at the field, Bank is a pioneer in inculcating a risk culture throughout the organization. Risk profiling of the Bank for various risk areas and for Regional Offices is being done on a quarterly basis.

3. The Board of Directors of the Bank is primarily responsible for laying down risk parameters and establishing an integrated risk management and control system. The Bank’s Board approves Risk Management policies and also sets out limits taking into account the risk appetite of the Bank and the skills available for managing the risks. The Board of Directors are supported by a Sub-Committee of the Board known as Supervisory Committee of the Board on Risk Management and Asset Liquidity Management (ALM), which in turn is supported by the Credit Risk Management Committee (CRMC), Asset Liability Committee (ALCO) and Operational Risk Management Committee (ORMC). These Committees are Committees of Executives headed by Chairman and Managing Director (CMD) and both Executive Directors (ED) of the Bank.

Credit risk

1. The credit risk mechanism consists of policies and practices that ensure credit risk is measured, and monitored at account level and portfolio level. The Credit Risk Management policy along with Real Estate Lending Policy and Collateral Management Policy address the Credit Risk related to lending. Credit Approving Authority, Prudential Exposure Limits, Risk Rating System, Risk Based Pricing, Portfolio Management are the various instruments for Management of Credit Risk.

2. The Bank has standardized and well defined approval processes for all credit proposals to minimize the credit risk associated with them. The Bank has set up Credit Approval Grids at Regional Offices/Field General Manager’s Offices and Central Office. The Bank has also developed credit rating models for exposure above Rs 2 lakh and scoring model for Retail lending schemes. Entire credit portfolio of the Bank is subject to internal credit rating. It has credit rating migration and default probability data for the last 8 years.

3. The Bank has implemented a LAS which seamlessly integrates the entire Credit Management Process and provides an assured turnaround time for disposal of loan applications on one hand and standardized processes on the other hand. It also covers Loan Monitoring and NPA Management.

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4. The Bank constantly strives to improve credit quality and maintain a risk profile that is diverse in terms of borrowers, products and industry types.

Operational risk

1. The credit risk mechanism consists of policies and practices that ensure credit risk is measured, and monitored at account level and portfolio level. The Credit Risk Management policy along with Real Estate Lending Policy and Collateral Management Policy address the Credit Risk related to lending. Credit Approving Authority, Prudential Exposure Limits, Risk Rating System, Risk Based Pricing, Portfolio Management are the various instruments for Management of Credit Risk.

2. The Bank has standardized and well defined approval processes for all credit proposals to minimize the credit risk associated with them. The Bank has set up Credit Approval Grids at Regional Offices/Field General Manager’s Offices and Central Office. The Bank has also developed credit rating models for exposure above Rs 2 lakh and scoring model for Retail lending schemes. Entire credit portfolio of the Bank is subject to internal credit rating. It has credit rating migration and default probability data for the last 8 years.

3. The Bank has implemented a LAS which seamlessly integrates the entire Credit Management Process and provides an assured turnaround time for disposal of loan applications on one hand and standardized processes on the other hand. It also covers Loan Monitoring and NPA Management.

4. The Bank constantly strives to improve credit quality and maintain a risk profile that is diverse in terms of borrowers, products and industry types.

Market risk

1. Asset Liability Management Policy and Treasury Policy aid the management of Market Risk in Banking and Trading books. Overall responsibility of managing the market risk lies with the Asset Liability Committee (ALCO).

The Committee meets regularly and decides on the size, mix, tenor, pricing and composition of various assets and liabilities. It primarily does identification, measurement, monitoring and management of liquidity and interest rate risk. It uses tools such as Ratio analysis, Gap analysis reports- Structural liquidity, Dynamic Liquidity, Interest Rate Sensitivity etc, Value at Risk, Duration Gap Analysis etc for management of liquidity and interest rate risks. The fundamental focus is to add value both from the earnings perspective and from the economic value perspective.

The Bank has an independent mid office positioned in treasury and reporting to risk management. It ensures compliance in terms of exposure analysis, limits fixed and calculation of risk sensitive parameters like Value at Risk, PV01 (Present Value of 1 base point), Duration, Defeasance Period etc and their analysis.

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Implementation of Basel II

1. The Bank has implemented the New Capital Adequacy Framework as per the timelines prescribed by RBI. While the Bank, to start with, has adopted Standardized Approach for Credit Risk, Standardized Duration method for market risk and Basic Indicator approach for Operational risk, the initiatives so far undertaken/envisaged are geared towards enabling the Bank to comply with the standards set out for more advanced capital measurement approaches in the Basel II Accord.

2. The Bank has taken various steps for migrating to advanced approaches. Introduction of Asset Class wise credit rating models with two-dimensional Obligor and Facility Rating, developing a data management framework, initiating process for appointing a Consultant for Integrated Risk Management are few of the steps in that direction.

3. For enabling skills on risk management, the Bank conducts in-house training program on risk management. The Bank has an excellent training system in place and its own Union Bank School of Management vide which it attempts to develop the professional and managerial skills of the employees. Further, officers are also nominated for attending training programs on risk management in reputed external training institutes. The Bank has also recruited qualified professionals from reputed business schools who would help in refining the risk management practices, measurement and management tools.

4. The Bank has also developed a framework for qualifying the Pillar – II risks and has put in place a comprehensive Internal Capital Adequacy Assessment Process (ICAAP) framework in line with RBI guidelines. The Bank is also in the process of introducing a Risk Based Performance measurement system to assess the profitability of its business units, products and customers.

WHAT IS PoS (POINT of SALE) TERMINAL? PoS or Swipe Machine as it is popularly known is a technological instrument provided to a Merchant Establishment (ME) to carry out the sale of goods or services to customers in a cashless environment. All the customer has to do is swipe his/her Debit, Credit or Prepaid Card. Give your business a professional touch by installing a PoS (Point of Sale) terminal. Features & Benefits: 

Faster application processing and terminal installation. Superior connectivity. Settlements on T+1 basis. Helpdesk with assured TAT.

 

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ELIGIBILITY: 

The merchant should have a current account with a branch of the bank with a satisfactory account operation.

The merchant should be in retail/over the counter trade and shall not be in Visa/MasterCard negative list for malpractices.

The turnover of the merchant through cards should be over Rs.1 Lac/month. The merchant shall have a fixed landline connection.

COMMISSION:  

Commission depends on the turnover of the merchant through cards and this would be quoted after site inspection. However, higher the turnovers lower the commission and vice-versa.

 HOW TO APPLY: 

It’s a simple process where the merchant has to fill up an enrollment form and enter into an agreement with the bank. This application has to be processed through the bank branch where the merchant has the current account.

 You can contact your bank branch for further details. TERMS & CONDITIONS: 

As per the Merchant Agreement, Please contact your branch for further details.

 CONTACT NO.: If you want to know more about POS (Point of Sale) terminals, please contact our 24 x 7 Call Centreor the following numbers

022-22896682 / 22024137

OVERVIEW:

Corporate Social Responsibility (CSR) can be termed as a tribute that a corporate pays to 'virtue', the virtue of being a part and parcel of the community it exists in and grows. In this era of globalization there is an ever increasing emphasis on CSR from non-government organizations, charities, educational institutions and peers in the industry to give CSR a serious consideration alongside the core business. T

his new semblance of awakening has actually sent a lot of business leaders and

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academicians back to the basics of why at all the corporates evolved, what are their role and responsibility and thereby the impact they have on the society. One acclaimed instance that is shown around, as the proof of the new trend, is 'Business with Human Face' as now practiced and preached by many. Given all this, at the core of it, CSR is a voluntary act of compassion shown by a corporate entity to the society and the environment where in the corporate gives back to the society some part of what it has earned from being a part of such society.

OUR VIEW:

We, at Union Bank of India, feel that Corporate Social Responsibility (CSR) is directly linked to the core business of the bank. It encompasses as to how the bank adds social, environmental and economic value in all its activities to make a positive, sustainable impact on both the society and the business. CSR is usually misunderstood for charity, following the bandwagon of traditional corporate philanthropy many corporates undertakes it with an underlying motive of giving the company visibility and easy gains, but this thought process is not likely to provide long-term local benefits, as it is not possible to maintain continuity and consistency. Businesses, civil society, governments, and development agencies should work together to improve infrastructure and services whereby they can each use their core competencies to help overcome any obstacles.

1. BUILDING THE NATION

It is often said, "Today's children are Tomorrow's citizens". As a part of our Corporate Social Responsibility in creating responsible citizens of the future we realize that the children need to be groomed from a tender age to be responsible citizens and thus,

 

o a. The Bank provides infrastructure to the schools by providing them benches, chairs and other necessary materials. The students get school bags, uniforms and sandals for their well being. Other infrastructure like almirahs, computers, water coolers and other essentials are also provided with the active support of the Panchayat and local School Management.

o b. A Government of India survey reveals that drop out from the school is because of not having two square meals daily. Union Bank is indirectly helping for providing hot sumptuous meals to the students of various states by providing support to the charitable institutions

2. CARING FOR THE SICK

 

o a. The Bank has helped various Hospitals by providing Ambulances to transport patients in and out of the Hospital.

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o b. The bank not only understands the critical health issues but also propagates the same to the village folks by conducting regular health camps and blood donation camps in various centres across the country.

 

3. CARING FOR THE SOCIETY:

 

o a) We have introduced an insurance scheme 'Janashree Bima Yojana' with the co-operation of LIC to the women members of credit linked Self Help Groups. We have also introduced 'Aam Aadmi Bima Yojana' for the hawkers who have availed loans from us thorough our biometric card loan product.

o b) During various Natural Calamities that has affected the nation, Union Bank has always extended a helping arm to the affected areas by providing financial support.

4. EMPLOYEE PARTICIPATION:

Our Bank not only actively involves itself in CSR but also makes the employees enthusiastic about the work they are doing. We understand that the involvement of the employees is very important in running a successful CSR program. So, we motivate our employees by conducting various workshops, from time to time, to establish healthy linkages between all members of a multi-stakeholder and multi-sector society. All our employees play an important role in the economic growth of the country. In addition to driving economic growth, their active participation has a direct effect on poverty alleviation through the Bank's own policies and practices.

5. INCLUSIVE GROWTH INITIATIVE

Another instance where we are furthering CSR by the development of the people is through Financial Inclusion. Here we provide banking services through bio-metric smart card and business correspondents under the branchless banking mode to people hitherto excluded from formal banking channels like the hawkers and street children of Mumbai & other cities, the beneficiaries of Wages under NREGPS & SSP and the small milk-pourers with National Dairy Development Board. We have a wide range of products to suit their specific needs like Micro-Credit repayable in Equated Weekly Installment (a first of its kind in the industry) matching their flow of revenue, an inbuilt Micro-Insurance for all those who avail a loan with a nominal premium to cover their major risks and a Micro-Remittance product. We have enrolled more than 3.2 million customers up to Sep, 10 for a No-Frill Account based on Biometric Smart Card technology. Initially, we provide them only a No Frills SB account, but gradually we are introducing them to other products that are available in the formal banking channel like deposit products, loan products and remittance products, albeit in small size. Thus, the more these products are used the social and economic up-liftment of the beneficiaries is facilitated.

6. OTHER INITIATIVES:

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o The Bank has also established Chairs at Madras school of Economics, Chennai, Great lake institute of Management-Chennai, and IIM, Ahmedabad for centres of Banking Excellence with a total corpus amount of Rs.4.50 crores.

o The Bank has also provided financial assistance to various social causes through institutions like Raksha, Cochin - a school for disabled children, Ramakrishna Mission- Nagpur, Madhyagram Municipality- Kolkata, Satchidananda Institute of Medical Sciences- Kerala, Bhagwan Mahaveer Viklang Sahayata Samiti- Jaipur, and Cochin Child Foundation.

Farmers' Clubs Union Mitr Village Knowledge Centre Union Adarsh Gram