INDEX [peehar.com]peehar.com/OPM_Final_LAST.pdfindex ‘sandipani’ one page manager sr. no. name...

2

INDEX

‘Sandipani’ One Page Manager

SR.

NO.

NAME OF THE TOPIC

PAGE NO.

FROM TO

1. ADVANCES - AGRICULTURE 3 29

2. ADVANCES - GOVT. SPONSORED SCHEMES 30 34

3. ADVANCES - RETAIL CREDIT 35 54

4. ADVANCES - SME & OPS 55 85

5. DEPOSITS 86 102

6. OTHERS - 1. CARD PRODUCTS

103 109

- 2. BTM/NEFT/RTGS/INTERNET

110 114

- 3. KYC NORMS

115 118

- 4. PREVENTIVE VIGILANCE

- 5. DOCUMENTATION

- 6. SETTLEMENT OF CLAIMS

IN DECEASED A/Cs

- 7. SUDLIFE PRODUCTS

- 8. SDV/DEMAT/CAPITAL GAIN

- 9. CIBIL/CERSAL

- 10. NON FUND BASED

(LC/GUARANTEE )

- 11. FORIEGN EXCHANGE

- 12. DELEGATION OF POWERS

- 13. SERVICE CHARGES

119

121

133

134

140

148

150

155

169

174

120

132

133

139

147

149

154

168

173

182

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Year 2006-07 to 2012-13 19 Prints - 24000 copies

Year 2013-14 20th

Print - 3000 copies

******************************************************************************

NOTE: We have made all our efforts to give you the updated material on the topics covered in the

Handbooks, users are requested to refer to the various circulars/guidelines/ instructions issued by HO on the

subject before sanctioning / recommending.

1. Readers are requested to inform us in case any discrepancy is observed in any of the topics

covered in the Handbook.

******************************************************** (Updated upto 30.11.2013)

COMPILED AND UPDATED BY ‘TEAM SANDIPANI’

3

SANDIPANI ONE PAGE MANAGER SERIES -AFD/01 30.11.2013

FARM MECHANISATION Purpose

Purchase of new or second hand tractor, power tiller, power thresher, power sprayers, power dusters etc.

pickup van, Jeep to transport agricultural inputs & farm products. Loan is also available for repair or

renovation of vehicles.

Eligibility

Individual farmers having 8 acres of perennially irrigated land for tractor and 5 acres of perennially

irrigated land for power tillers.

Depending upon the scope of custom hiring and cropping pattern, land holding criteria may be considered

at 5 acres and 3 acres for tractors and power tillers respectively with prior permission of Zonal Managers.

Quantum of Finance

As per cost of the vehicle (It is to be ensured that the Tractor/ Power Tiller has necessary commercial test

report as per BIS Code issued by the Central Farm Machinery Training and Testing Institute (CFMTTI),

Budni, Madhya Pradesh. The Power Tillers meeting the Minimum Performance Standards (MPS) alone will

be considered eligible for refinance from NABARD).

Margin

(a) New Vehicle - Loan upto Rs.1,00,000/- - Nil Margin

Loan above Rs.1,00,000/-- 15% to 25%

(b) Second hand tractor - 33.33%

(c) Repair / renovation - 25%

Rate of Interest: Please refer to the H.O. Br. Circular issued from time to time

Repayment

Type of Machine Maximum Repayment Period

New Tractor 9 years

New power tiller 7 years

Second hand tractor 4 years

Other Machinery 3 to 5 years

Repair, Renovation 3 to 5 years

Security

Loan upto Rs. 100,000/- -Hypothecation of machinery& Bank charge to be Registered with RTA.

Loan above Rs. 100,000/-- (i) Hypothecation of Machinery & Bank charge to be Registered

with RTA and

(ii) Mortgage of land or Declaration as per Agril. Credit Act or collateral

security of adequate worth.

Document to be obtained from the Borrower:

(i) Photograph

(ii) Proof of identification

(iii) Land Record

(iv) Quotation of approved tractor/implements/ vehicle

Security Documents to be obtained by the Branch:_-

(1)Composite Hypothecation Agreement(CHA-2) (CHA-2 should contain clauses on non-diversion of funds

and securitisation, otherwise annexure as per Br Cir No 97/186 dated 8.3.2004 is to be obtained)

(2)L-515

(3)Equitable /Legal Mortgage or deed of declaration

(4) Third Party Guarantee (OD-194) where stipulated

(5)Comprehensive insurance policy

(6)Blank transfer deeds

(7)Registration of charges with RTA

(8)In case of second hand tractor valuation report from an approved valuer to be obtained.

NABARD guidelines for selection of make, minimum performance standards/ commercial test

report you may refer B.C No 101/104 dt 31.08.07

4


MINOR IRRIGATION

Purpose :-

Lift irrigation , well irrigation , electric motor & pump set ,diesel engine , construction of pump

house , construction of water delivering channel , payment of deposits to state electricity board,

sprinkler irrigation , drip irrigation

Eligibility :

Individual farmers, Group of farmers, cooperative societies of farmers .

Quantum :

As per unit cost approved by NABARD.

Margin :

Loans up to Rs.1,00,000 /- NIL

Loans above Rs. 1,00,000 - 15% to 25%


Repayment :

Activity Repayment Period Moratorium

Dugwell with Pump set 11-15 Years 23 Months

Deepening of Well 5 Years 11 Months

Pumpset / Oil Engine 9 Years 11 Months

Bore Well 11-15 Years 11 Months

Sprinkler / Drip Irrigation 10-15 Years 11 Months

( Repayment in Yearly Installment as per cropping Pattern)

Security : TERM LOAN AGREEMENT and/or

Loan up to Rs. 1,00,000/- Hypothecations of assets purchased out of banks finance

Loan above Rs. 1,00,000/- i) Hypothecation of assets purchased out of bank finance

ii) Mortgage of land or declaration as per Agri. credit act.or

Collateral security of adequate worth .

Document to be obtained from the Borrowers :-

1. Photograph

2. Project Report

3. Land records

4. Proof of Identification

For financing pump set under minor irrigation, it may not be necessary for submission of project

report by the proponent as under schematic lending; branches to follow the scheme approved by

the NABARD for that region.

Security Documents to be obtained by the Branch:-

(1) Composite Hypothecation Agreement(CHA-1) (CHA-1 should contain clauses on non- diversion of

funds and securitisation, otherwise annexure as per Br Cir No 97/186 dated 8.3.2004 is to be obtained)

(2) L-515

(3) Equitable or Legal Mortgage or Deed of Declaration of charge on Land wherever

stipulated.

(4) Third Party Guarantee (OD-194), where stipulated

5

SANDIPANI ONE PAGE MANAGER SERIES AFD/03 30.11.2013

DAIRY DEVELOPMENT

Purpose:

(1) To establish small dairy unit with 2 to 4 milch cattle.

(2) To establish new medium /large unit.

(3) Collection, processing, distribution of milk & manufacturing of milk products.

(4) Purchase of improved/crossbred milch cattle.

(5) Construction of cattle shed.

Eligibility

Farmer, Agriculture labours, registered partnership firm, limited companies, dairy co-operative

societies.

Type of facility

Term Loan/ Working Capital

Security

Loan upto Rs. 100,000/- = Hypothecation of live stocks etc.

Loan above Rs. 100,000/- = (i) Hypothecation of live stocks

(ii) Mortgage of land or declaration as per agril.

Credit act or collateral security of adequate

worth.

Margin

Loan upto Rs. 1, 00,000/- = NIL

Loan above Rs.1, 00,000/- = 15% to 25%


Repayment

To be repaid within 5 to 6 years with 2 to 3 months moratorium period.

Documents to be obtained from the Borrower:-

(a) Photograph

(b) Project report

(c) Land records

(d) Proof of identity

For financing to establish a small dairy unit with 2 or 4 milch cattle, it may not be necessary for

submission of project report by the proponent as under schematic lending, branches to follow the

scheme approved by the NABARD for that region. For commercial dairy, submission of project

report is necessary.


(1) Composite Hypothecation Agreement(CHA-1) (CHA-1 should contain clauses on non-diversion of


(2) L-515

(3) Equitable or Legal Mortgage or Deed Of Declaration of charge on Land wherever

stipulated.


6


POULTRY DEVELOPMENT

Purpose

Establishment of small poultry farm (layer / broiler) Establishment / expansion of Layer farm /

Broiler farm / hatchery / Processing units.

Eligibility

Individual farmers with formal training or experience Registered firms, Limited companies and

co-operative societies having necessary technical and management personnel.

Quantum

Amount of finance depends upon the type and size of the poultry farm.

Margin

Loan upto Rs. 1, 00,000/- - Nil

Loan above Rs.1, 00,000/- - 15% to 25%

Type of Loan

Term Loan & working capital

Security

Loan upto Rs. 1, 00,000/- - Hypothecation of live stocks & others

Loan above Rs. 1, 00,000/- - (i) Hypothecation of live stock & others

(ii) Mortgage of land

or

Declaration as per Ag. Credit Act.

or

collateral security of adequate worth


Repayment

Repayment Moratorium Installment

Layer Unit 6 to 7 years 6 to 7 months Monthly

Broiler Unit 6 to 7 years 3 months Monthly/ Quarterly

Hatchery Unit 6 to 7 years 7 to 8 months Monthly

Document to be obtained from the Borrower:-

(1) Photograph

(2) Project report

(3) Land records

(4) Proof of identity


(1) Composite Hypothecation Agreement(CHA-1) (CHA-1 should contain clauses on non-diversion of


(2) L-515

(3) Equitable or Legal Mortgage or Deed of Declaration of charge on land wherever stipulated.


7


SCHEME FOR FINANCING COMMODITIES HELD IN THE FORM OF

WARE HOUSE RECEIPTS.

Objective To provide farmers an opportunity to realize a fair price on seasonal crops by

providing sufficient cash for their farm/off farm needs during storage of farm produce

until better market price is available with in a period of one year. Sector: Direct

Agriculture Scheme Code : 116

Eligibility Individual farmers (owner/tenant farmer, share cropper, etc), group of farmers (JLGs)

not exceeding four, engaged in prodn. Of crops suitable for storage in

warehouse/godown/cold storage/regulated market yards/farm house etc., Farmers

enjoying KCC facility as well as non borrower farmers are eligible . ZO to decide the

branches authorized to finance under the scheme.

Facility Demand Loan/cash credit to be repaid within 12 months from the date of

disbursement generally against Warehouse receipts issued by WDRA. But now the

scheme is applicable even for ware house receipt issued by Non approved ware

houses. (Please see Br. Cir. 106/136 dated 05.12.2012

Quantum of

finance

30% of the market value of the commodity Max. Rs.25.00 lac. The value to be worked

out on the basis of cropped area, average yield in the district and prevailing market

rates at the time of sanction.

Rate of

interest

Pl refer tor Br. Cir. Issued from time to time . Please note that small and marginal

farmers availing the facility against Negotiable Warehouse Receipts issued by WDRA

(Warehousing Development & Regulatory Authority) may get interest subvention for

max.6months in that case, ROI will be as per crop finance.

Disbursement Upon execution of security documents and deposit of ware house/cold storage receipts

and after Bank’s Lien /charge, registration with authorized ware house and cold

storage

Security A. Against Pledge of warehouse receipt:DP.Note, AG 15, L516, Pledge of WHR

duly discharged by the borrower with Bank’s Charge/lien, OD 159 (letter of Pledge)

or Where Pledge attracts advalorem stamp duty undertakings/agreement devised by

HO., Legal Dept. (copies available with Br.Cir.106/136 dated 05.12.2012, Letter from

borrower authorizing Bank to engage services of Collateral Management

agencies (expenses in this regard to be borne by the borrower), Undertaking from the

borrower to maintain stipulated margin at all times and deposit necessary amount in

case of shortfall in the value of security stored in the warehouse.

B. Against hypothecation of farm produce stored in the premises of the farmer (only

in the case of existing borrowers enjoying Crop Loan facility): DP Note, AG 15,

CHA1, Third party Guarantee(OD 194), Extension of EQM (value of security (RVS)

should be 200 % of the total loan given to the borrower.

Risk

Mitigation

Business to be undertaken by branches authorized by Zonal Manager. The authorised

branches have to obtain the signatures of authorised officials of the ware houses in

their area of operations to verify the authenticity of the ware house receipt/ noting of

our charge on the commodities covered.

B. Similarly the branches have to send the signatures of authorised officials of the

bank who would be signing the letters authorisng release/ sale of the commodities

stored to facilitate prompt action.

Please go through Br. Cir. 106/136 dated 05.12.2012 for other instructions in this

regard.

There can be instances where the Warehouse Receipts are in non-physical form, generally when the

lodger of commodities desires to trade through the Commodity Exchange. Such receipts are also

acceptable and lent against subject of course to the condition that Bank’s pledge rights are recorded with

the issuer of such receipt (generally akin to D.Ps) (Ref: H.O. Br. Cir. No. 99/169 of H.O. C&IC Deptt dated 13.02.06,100/160 of 10.01.07 and 101/206 of 08.03.2008)

8

SANDIPANI ONE PAGE MANAGER SERIES -AFD/06 30.112013

KISAN CREDIT CARD (Revised as per Br. Cir. No.106/52 dated 25.06.2012

ELIGIBILITY:-All farmers –Individuals/Jt. Borrowers who are owner cultivator, tenant farmers, Oral Lessees, Share croppers,

SHG/JLG of farmers, tenant farmers, oral lessees, share croppers from the operational area

PURPOSE:- a.)Short Term Credit for crop production, b) Post harvest activities, c) Produce Marketing Loan, d)

Consumption Credit Requirement, e) working capital requirement for repairs and maintenance of farm

equipments and for allied activities and also for f) investment credit requirement for agriculture and allied

activities. For activities “a to e “ will form short term credit and the activity “f” will form long term credit

requirement

QUANTUM OF FINANCE:

For All farmers other than Marginal farmers

A. Short Term Credit Needs: First year: Scale of finance X (multiplied by) Extent of Cultivated area + 10 % for post harvest

+ 20 % for repairs and maintenance of farm assets, insurance, etc. Please note the first year limit is the base for next 4 years.

Hence care should be taken to work out the first year limit for all crops and for all seasons ie., amount as per scale finance

multiplied by acres plus another 30 % on it for post harvest and repairs of farm assets.

For Second and next 3 subsequent years (upto 5 years): The amount arrived in earlier year + 10 % for cost escalation

for every year. The 5th year limit will be cumulative limit arrived by adding step wise every year limit. (See the illustrations

annexed to Br. Cir. 106/52 dated 25.06.2012)

B. Long term for capital Assets: The farmer needs to Plan next 5 years investment (for land development, minor irrigation,

purchase of farm equipments and allied agricultural activities). The total for the current year plus all the subsequent 4 years for

investment in capital assets will be taken as funds needed under Long Term Credit Needs.

Where loan is sanctioned for Produce Marketing, it will go to reduce the production credit in “A” above and hence we may

add the limit for produce marketing loan (short term to be repayable within 12 months) as a sublimit within the over all limit

arrived under “A” above.

Maximum Permissible Limit: The short term loan limit arrived for the 5th year (cumulative for all the five years) plus the estimated

long term loan requirement for all the five years (minus repayment of TL installments every year) will be the Maximum

Permissible Limit (MPL) and treated as KISAN CREDIT CARD LIMIT.

Fixation of Sub-limits: 1. Short Term Cash Credit Limit (with another sub-limit within the said sub-limit for Produce Marketing

Loan) and 2. Long Term Loan Limit (reduceable every year on account of repayment in TL).

Please note while entering the limit in Finacle, year wise limit under short term credit needs and long term needs is to be fed

properly.

For Marginal Farmers:

A flexible limit of Rs.10000/- to Rs.50000/- be provided based on the land holding and crops grown including post harvest

warehouse related needs and other farm expenses, consumption needs, etc., plus small term loan investments like purchase of farm

equipments, establishing mini diary/backyard poultry as per assessment of Br. Manager without relating to the value of land. The

composite KCC limit is to be fixed for a period of 5 yrs on the basis of calculation enumerated above for farmers other than

marginal farmers. (see also illustration in Br. Cir. 106/52 dated 25.06.2012).

Disbursement and Repayment: The short term component of the KCC limit is in the nature of revolving cash credit. There should

be no restriction in number of debits and credits. However each installment of the drawable limit drawn in a particular year will

have to be repaid within 12 months without the need to bring the debit balance in the account to zero. The long term loan will be

disbursed on the basis of already specified plan as per the need of the borrower with half yearly or annual repayment schedule

(maximum repayment period of 9 yrs depending upon the activity and investment as per the existing guidelines.

MARGIN: For crop loan, there is no separate margin as margin is inbuilt in scale of finance. However for other term loan – upto

Rs.1.00 lac margin is Nil. Over 1 lakh -15 % to 25% on the merit of each case

SECURITY: As per RBI guidelines. Upto Rs.1.00 lac (where tie-up is not available) and Upto Rs.3.00 lakh (where tie-up

arrangement is available) No security. In all other cases, collateral security by way of mortgage /charge over agricultural land to

be obtained for aggregate loan amount.

Rate of Interest: Please refer to the H.O. Br. Circular issued on ROI the latest being Br. Cir. 106/46 dated 18.06.2012.

Insurance:

Available in notified areas for notified crops (BC 101/179 of 31.12.2007)

Personal accident insurance policy:- Available in case of death/permanent disablement upto Rs 5,00,000/-(FIVE

LACS) AS PER BR CIR NO-99/193 DT 09-03-2006

Documents:

DP Note CHA-1 AG – 15

Charge/Mortgage (overland) if applicable

Third Party Guarantee (OD-194), where stipulated

Documents to be submitted by applicant:

Land Ownership /Possession certificate from Govt. Deptt.

Latest Land Revenue Receipt

Photograph of the applicant

Please refer to Br. Cir. 106/52 dated 25.06.2012 for other details

9

SANDIPANI ONE PAGE MANAGER SERIES AFD/07- 30.11.2013

KISAN SAMADHAN CARD ELIGIBILITY:- All farmers eligible for production as well as investment credit and applying for both

PURPOSE:- Short Term Credit for

1. Production and related ancillary requirements

2. Allied activities

3. Short term credit for consumption/domestic needs (Max. Rs. 50,000/-)

4. Finance against storage receipt/produce marketing (Max. Rs. 5 Lacs)

Investment Line of Credit

1. Farm development

2. Allied activities

3. Off farm activities/needs of farmer - Personal loan (Max. Rs. 1 Lac)

- Consumption purpose (Max. Rs.50,000/-)

This scheme enables the farmer to avail credit for a period of 5 years continuously with a roll over arrangements for

his total needs.

TYPE OF FACILITIES:

Production line of credit as composite cash credit .

Investment credit max. through 3 accounts.

QUANTUM OF FINANCE:

No max. ceiling, subject to

10 times of anticipated net annual farm income (average of next five years)

OR – 100% of value of land mortgaged as collateral securities and other liquid securities

including gold ornaments (where movable assets are created out of bank finance)

OR – 70% of value of land mortgaged plus 100 % of value liquid securities including gold

ornaments (where movable assets are not created out of bank finance)

For sanction of limit over Rs. 15 Lacs, ZO administrative clearance required

Rate of Interest: Please refer to the H.O. Br. Circular issued from time to time. (*) Concessional rate of interest with subvention from Government of India is applicable to principal amount which

is not overdue. After due date of respective season/crop, (Kharif/Rabi) regular rate of interest as per ii above would be

applicable. Branches should obtain security document as per Bank’s normal rate of interest.

SECURITY AND MARGIN:

LOAN AMOUNT SECURITY MARGIN Upto Rs.1,00,000/- Hypothecation of assets/stock Nil

Over Rs. 1,00,000/- 1. Hypothecation of assets/stock

2. Mortgage or Charge over land 15 to 25%

3. Collateral Security of Adequate worth

Insurance:

Available in notified areas for notified crops (BC 101/179 of 31.12.2007)

Personal accident insurance policy:- Available in case of death/permanent disablement upto Rs 5,00,000/-(FIVE

LACS) AS PER BR CIR NO-99/193 DT 09-03-2006

Special features:

Provision of 10% increase every year in short term credit limit

General provision of emergency loan under investment credit to the extent of 20 % of the original limit to be repaid in

2 annual installments

Facility of crop insurance and personal accident insurance scheme is available

Repayments: Production line of credit – Aggregate credit in the account during 12 months period should be at least equal to

max. outstanding at any date during the period

Term line of credit – Total repayment period – 5 to 7 years, including moratorium period, if any.

Emergency loan to be repaid in 2 annual installments

Security Documents:

DP Note CHA –2 AG – 15 Charge/Mortgage (over land) if applicable

Third Party Guarantee (OD-194), where stipulated

Documents to be submitted by applicant:

Land ownership/ Possession certificate from Govt. Deptt. Latest Land Revenue Receipt Photograph

of the applicant Details of credit requirements

Ref BC 101/206 of 8.3.08, 101/215 dt 24.3.08, 102/67 dt14.07.2008.

10


National crop insurance scheme (India) Objectives: The objectives of the scheme are as under: -

1. To provide insurance coverage and financial support to the farmers in the event of natural calamities, pests & diseases.

2. To encourage the farmers to adopt progressive farming practices high value in-puts and higher technology in Agriculture.

3. To help stabilize farm incomes, particularly in disaster years.

Salient features of the scheme: -

1. Crops covered:- The crops in the following broad groups in respect of which i) the past yield data based on Crop Cutting

Experiments (CCEs) is available for adequate number of years, and ii) requisite number of CCEs are conducted for estimating the

yield during the proposed season: a. Food crops (Cereals, Millets & Pulses)

b. Oilseeds c. Sugarcane, Cotton & Potato (Annual Commercial/annual Horticultural crops)

Other annual Commercial/annual Horticultural crops subject to availability of past Yield data will be covered in a period of three years.

However, the crops which will be covered next year will have to be spelt before the close of preceding year.

2. States and areas to be covered: The Scheme extends to all States and Union Territories. The States/UTs opting for the Scheme

would be required to take up all the crops identified for coverage in a given year.

Exit clause: The States/Union Territories once opting for the Scheme, will have to continue for a minimum period of three years.

3. Farmers to be covered: All farmers including sharecroppers, tenant farmers growing the notified crops in the notified areas are

eligible for coverage.

The Scheme covers following groups of farmers:

a. On a compulsory basis: All farmers growing notified crops and availing Seasonal Agricultural Operations (SAO) loans from

Financial Institutions i.e. Loanee Farmers.

b. On a voluntary basis: All other farmers growing notified crops (i.e., Non-Loanee farmers) who opt for the Scheme.

4. Risks covered & exclusions: Comprehensive risk insurance will be provided to cover yield losses due to non-preventable risks,

viz.:

i) Natural Fire and Lightning ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.

iii) Flood, Inundation and Landslide iv) Drought, Dry spells v) Pests/Diseases etc.

Losses arising out of war & nuclear risks, malicious damage & other preventable risks shall be excluded.

5. Sum insured /limit of coverage: The Sum Insured (SI) may extend to the value of the threshold yield of the insured crop at the

option of the insured farmers. However, a farmer may also insure his crop beyond value of threshold yield level upto 150% of

average yield of notified area on payment of premium at commercial rates.

In case of Loanee farmers the Sum Insured would be at least equal to the amount of crop loan advanced.

Further, in case of Loanee farmers, the Insurance Charges shall be an additionality to the Scale of Finance for the purpose of

obtaining loan.

In matters of Crop Loan disbursement procedures, guidelines of RBI/NABARD shall be binding.

6. Premium Rates

S N. Season Crops Premium rate

1. Kharif Bajra & Oilseeds 3.5% of SI or Actuarial rate, which ever is less

Other crops (cereals, other millets & pulses) 2.5% of SI or Actuarial rate, which ever is less

2. Rabi Wheat 1.5% of SI or Actuarial rate, which ever is less

Other crops (other cereals, millets, pulses & oilseeds) 2.0% of SI or Actuarial rate, which ever is less

3. Kharif & Rabi Annual Commercial annual Horticultural crops Actuarial rates

Transition to the actuarial regime in case of cereals, millets, pulses & oilseeds would be made in a period of five years. The

actuarial rates shall be applied at District/Region/State level at the option of the State Govt./UT.

7. Premium subsidy to Small & Marginal Farmers: Premium Subsidy will be 10%. The nodal bank will remit 90% premium to

the Agriculture Insurance Company of India Ltd. (AICL).

Vidarbha Package – Under Vidarbha Relief Package, Small & Marginal Farmers of Akola, Amravati, Buldhana, Yavatmal,

Washim & Wardha Districts of Maharashtra will be eligible for 50% subsidy in premium for all notified crops.

The definition of Small and Marginal farmer would be as follows:

Small Farmer: A Cultivator with a land holding of 2 hectares (5 acres) or less, as defined in the land ceiling legislation of the

concerned State/UT.

Marginal Farmer: A Cultivator with a land holding of 1 hectare or less (2.5 acres).

Kisan Credit Cards : Branches will cover all crop loans disbursed through Kisan Credit Card (KCC) and shall establish necessary

controls and maintain back up registers for smooth and effective coverage of loan. In cases where total amount of loan for particular

crop withdrawn through KCC during the season exceeds the sub-limit fixed for the crop (grown during the season), the sum insured

shall be limited to the sub-limit fixed for such crop (and season) in the KCC. The KCC sub limits for consumption, medium term

loans, consumption loan and loan disbursed for non-notified crops or in non-notified areas are not eligible for coverage.

The bank branches shall ensure the following while giving loans through KCC :

i) The “Credit Appraisal Form” received from the farmer by the branch for insurance of KCC, contains detailed information

with regard to the extent of land holding, crops grown, etc., the banks should have no problem in specifying the credit limits

for each crop separately. The limits shall also be furnished separately for Kharif & Rabi seasons as also crop wise in the

KCC.

ii) The farmers while withdrawing money on KCC, shall mention the crop wise quantum of amount availed (on payslip) in

order that the Branch shall note down crop wise particulars vis-à-vis credit limit approved. The details given by the farmers

at the time of withdrawal shall form the basis for coverage under NAIS.

iii) As the KCC provides for revolving credit, a farmer can withdraw and repay any number of times during the year. This

revolving credit may therefore tempt a farmer to go for cyclical withdrawal and repayment during adverse crop season and

thus insure his crop for a high sum insured. However, if a farmer is going for higher sum insured (beyond the value of T.Y),

as provided in the scheme, then he will have to do so at the beginning of the season and the cut-off date will be the one

applicable for non-loanee farmers.

iv) It is requested to submit separate Declarations for Loanee farmers covered under KCC.

11

8. Sharing of risk: Risk will be shared by Implementing Agency and the Govt. in the following proportion.

Food crops & Oilseeds: Till, complete transition to Actuarial regime in a period of five years takes place, claims beyond 100% of

premium will be borne by the Govt. Therefore, all normal claims, i.e. claims upto 150% of premium will be met by Implementing

Agency and claims beyond 150% shall be paid out of Corpus Fund for a period of three years. After this period of three years

claims upto 200% will be met by Implementing Agency and above this ceiling out of the Corpus Fund.

Annual Commercial crops/annual Horticultural crops: Implementing Agency shall bear all normal losses, i.e. claims upto150% of

premium in the first three years and 200% of premium thereafter subject to satisfactory claims experience. The claims beyond

150% of premium in the first three years and 200% of premium thereafter shall be paid out of Corpus Fund. However, the period of

three years stipulated for this purpose will be reviewed on the basis of financial results after the first year of implementation and the

period will be extended to five years if considered necessary.

9. Area approach and unit of insurance: The Scheme would operate on the basis of ‘Area Approach’ i.e., Defined Areas for each

notified crop for widespread calamities and on an individual basis for localised calamities such as hailstorm, landslide, cyclone and

flood. The Defined Area (i.e., unit area of insurance) may be a Gram Panchayat, Mandal, Hobli, Circle, Phirka, Block, Taluka etc.

to be decided by the State/UT Govt. However, each participating State/UT Govt. will be required to reach the level of Gram

Panchayat as the unit in a maximum period of three years.

Individual based assessment in case of localised calamities would be implemented in limited areas on experimental basis, initially

and shall be extended in the light of operational experience gained. The District Revenue administration will assist Implementing

Agency in assessing the extent of loss.

10. Seasonality discipline The broad seasonality discipline followed for Loanee farmers will be as under:

Activity Kharif Rabi

Loaning period April to September October to March

Cut-off date for receipt of declarations November May

Cut-off date for receipt of yield data January/March July/September

The broad cut-off dates for receipt of proposals in respect of Non-loanee farmers will be as under:

a. Kharif season: 31st July

b. Rabi season: 31st December

However, seasonality discipline may be modified, if and where necessary in consultation with State/UT and the Govt. of

India.

11. Estimation of crop yield: The State /UT Govt. will plan and conduct the requisite number of Crop Cutting Experiments

(CCEs) for all notified crops in the notified insurance units in order to assess the crop yield.

12. Levels of Indemnity & Threshold Yield:

Three levels of Indemnity, viz., 90%, 80% & 60% as corresponding to Low Risk. Medium Risk & High Risk areas shall be

available for all crops (cereals, millets, pulses & oilseeds and annual commercial/ annual horticultural crops) based on Coefficient

of Variation (C.V.) in yield of past 10 years’ data. However, the insured farmers of unit area may opt for higher level of indemnity

on payment of additional premium based on actuarial rates.

The Threshold yield (TY) or Guaranteed yield for a crop in an Insurance Unit shall be the moving average based on past three years

average yield in case of Rice & Wheat and five years average yield in case of Other crops, multiplied by the level of indemnity.

13. Nature of Coverage and Indemnity:

If the ‘Actual Yield’ (AY) per hectare of the insured crop for the defined area [on the basis of requisite number of Crop Cutting

Experiments (CCEs)] in the insured season, falls short of the specified ‘Threshold Yield’ (TY), all the insured farmers growing that

crop in the defined area are deemed to have suffered shortfall in their yield. The Scheme seeks to provide coverage against such

contingency.

‘Indemnity’ shall be calculated as per the following formula:

Shortfall in Yield

---------------------- x Sum Insured for the farmer

Threshold yield

{Shortfall = "Threshold Yield – Actual Yield’ for the Defined Area}

The claims shall be settled solely on the basis of yield data furnished by the Commissionerate of Agriculture arrived at through

Crop Cutting Experiments (CCEs) conducted by the State Government and not on any other basis such as Anewari/ Parsewari

declaration of famine/ drought/ flood by any Government Agency.

13A. Indemnity in case of localised risks: Loss assessment and modified indemnity procedures in case of occurrence

of localised perils, such as hailstorm, landslide, cyclone and flood where settlement of claims will be on individual

basis, shall be formulated by Implementing Agency (IA) in coordination with State/UT Govt.

The loss assessment of localised risks on individual basis will be experimented in limited areas, initially and shall be

extended in the light of operational experience gained. The District Revenue administration will assist Implementing

Agency in assessing the extent of loss.

14. Procedure for approval & settlement of claims: Once the yield data is received from the State/UT Govt. as per

the prescribed cut-off dates, claims will be worked out and settled by Implementing Agency.

The claim cheques along with claim particulars will be released to the individual Nodal Banks. The Bank at the grass

root level, in turn, shall credit the accounts of the individual farmers and display the particulars of beneficiaries on

their notice board.

In the context of localised phenomenon, viz., hailstorm, landslide, cyclone and flood, the IA shall evolve a procedure

to estimate such losses at individual farmer level in consultation with DAC/State/UT. Settlement of such claims will

be on individual basis between IA and insured.

15. Corpus fund: To meet Catastrophic losses, a Corpus Fund shall be created with contributions from the Govt. of

India and State/UT on 50:50 basis. A portion of Calamity Relief Fund (CRF) shall be used for contribution to the

Corpus Fund. The Corpus Fund shall be managed by Implementing Agency (IA).

12


LAND DEVELOPMENT

Purpose:- Land leveling, Reclamation of soil and Bonding of soil.

Eligibility:- Farmers owning land and farmers cultivating registered leased land.

Quantum:- Based on estimated cost of the project.

Margin:- Loan upto Rs.1,00, 000/- - Nil

Loan above Rs.1,00,000/- - 15% to 25%

Security:- Loan upto Rs. 1,00,000/- - Agreement of Term Loan

Loan above Rs.1,00,000/- - (i) Agreement of Term Loan

(ii) Mortgage of land or Declaration as per Agrl. Credit Act or Collateral security of adequate

worth.

Rate of Interest: Please refer to the H.O. Br. Circular issued from time to time.

Repayment: -

The loan is to be repaid within 9 to 15 years in half yearly /yearly installments based on cropping

pattern. Moratorium up to 23 months may be allowed.

Documents to be submitted by borrower:-

(1) Photograph

(2) Land records

(3) Project report

(4) Proof of identity

(5) Application Form


(1) Term Loan Agreement AG-57.

(2) L-515 (3) L-516 (4) AG-15

(5) Equitable or Legal Mortgage or charge on Land , wherever stipulated.


(7) Declaration to inform the change in proposition to the Bank.

13


BOI SHATABDI KRISHI VIKAS CARD

Purpose:- To provide farmers the benefit of latest technology in our Bank to enjoy the benefit of

“Anywhere Anytime Banking”. Hon. Finance Minister launched the Card on 10.9.2005

in inaugural function of Bank’s Centenary Celebration. The Card is issued under tie up

arrangement with VISA.

Eligibility:- Farmers having satisfactorily conducted agricultural loan account With crop loan

facility / CC facility of Rs.50, 000/- and above and land is mortgaged to the Bank for

Crop loan / other investment loan account.

Mortgage of land is not insisted where the borrowers are enjoying the credit limit under area based

schematic lending / tie up arrangement or with alternative security like pledge of deposits or gold

ornaments.

Spending Limit : 50% of Crop Cash Credit /CC limit sanctioned to the farmer- Max.

Rs.50, 000/- and Min. Rs.25, 000/-

Cash Withdrawal Limit : 30% of spending limit with cash withdrawals Max Rs.10, 000/-per day

Charge Account : Charge account shall be crop loan Cash Credit / CC account with card

Issuing Branch.

Cash Withdrawals : Cash drawls from our own branches, ATMs of our bank and under

“BANCS” as well as “CASH TREE”, VISA ATMs permitted with

on-line authorization.

Other Conditions:-

● The card cannot be used on stand alone ATMs.

● The card will be a photo identity card

● The Credit Card Department will send the charge slips to the respective card issuing Branches

on monthly basis and reinstate the spending/cash withdrawal limit to the card holder. In case the

Branch is not satisfied with the operations of the card and timely repayment thereof, shall write to

the Card Department for cancellation or hot listing of the same.

●Penal / Service charges will be in case of default @ 1.70% per month.

All other facilities as applicable to VISA credit card scheme of the bank.

● No card issuance charges to be recovered. However, appropriate charges to be recovered for

issuance of fresh card in case of cancellation, lost card etc. as per extant guidelines.

● The Card Product Department will deal with the applications received from Branches and issue

the Credit Cards to farmers as per the pattern followed in case of other Credit Card Scheme.

Application Form:-

Existing Credit Card application form can be presently used by affixing BOI SHATABDI

KRISHI VIKAS CARD by rubber stamp or hand Written on top.

14


STAR BHOOMIHEEN KISAN CARD (STAR-BKC) 01. OBJECTIVE: To provide easy access to short term production and consumption credit to meet genuine

requirements of tenant farmers, share croppers and oral lessees to help increase their income from agriculture

production activities.

02. ELIGIBILITY:

a) Tenant farmers, share croppers and oral lessees who are otherwise eligible for sanction of short term credit

for crop production.

b) The applicant should come from the operational area of the Branch sponsored by an SHG or a Farmers’ Club

or a reputed NGO who is on the approved list of NABARD.

c) Branch Manager to ascertain eligibility by calling meeting of SHG / Farmers’ Club / NGO in the village itself

and the same should be incorporated in the pre-sanction inspection report.

d) Migratory tillers are not eligible under the scheme.

03. IDENTIFICATION: For establishing the identity of the borrower the Branch should take an affidavit

declaring the resident of the village and giving details of the land tilled/crops grown by such person.

04. PURPOSE: Purchase of improved seeds, manures and fertilizers, plant protection materials, payment of hire

charges for tractors, irrigation charges, electricity charges etc. and also meeting part of consumption needs.

05. QUANTUM OF FINANCE / LIMIT:

a) Based on land area taken on tenancy, for share cropping or on oral lease and scale of finance, maximum

Rs.50,000-

b) Out of the total limit of Rs.50,000-, up to 10% i.e. Rs.5000- be earmarked for consumption purpose.

c) Upon satisfactory conduct of the account for three years, the limit may be enhanced, if requested by the card

holder.

06. ISSUE OF CARDS:

a) The farmers under the scheme will be issued a credit card-cum-pass-book incorporating the name, address,

borrowing limit/sub-limits, validity period, etc. to facilitate recording of the transactions on an on-going

basis. The pass book, among others, would provide for a passport size photograph of the beneficiary.

b) The beneficiary farmer should produce the passbook while operating the account.

c) The card-cum-pass book in use for KCC is to be used for Star BKC. However, a seal inscribing ‘Star BKC’

is to be put on the face of the pass-book.

07. SANCTIONING AUTHORITY: As per delegation of powers.

08. TYPE OF FACILITY:

a) Revolving Cash Credit – Annual Review. The farmer should be allowed for any number of drawals and

repayment within the limit.

b) The review may result in continuation of the facility, enhancement of the limit or cancellation of the limit /

withdrawal of the facility, depending upon the performance of the borrower.

c) The aggregate credits into the account during the 12 months period should at least be equal to the maximum

outstanding in the account.

d) No drawal in the account should remain outstanding for more than 12 months in case of normal crops and 18

months in case of sugarcane and banana crops.

e) In case of reschedulement of the period of repayment on account of natural calamities affecting the farmer,

the period for reckoning the status of operations as satisfactory or otherwise would get extended together with

the extended amount of limit. When the proposed extension is beyond one crop season, the aggregate of

debits for which extension is granted should be transferred to a separate term loan account with stipulation

for repayment in installments as per existing guidelines.

f) As a measure of incentive for card holders with good performance, the Branches may at the time of review,

enhance the credit limit suitably to take care of increase in cost of inputs / labour, change in cropping pattern,

etc. but upto the maximum limit of Rs.50,000/=.

g) On credit balance in the Cash Credit account, interest at the rate applicable to SB deposits and as per rule/s of

Savings Bank deposits is to be paid, to encourage the borrower to deposit the surplus funds at the time of

harvest and marketing of produce.

09. MARGIN: Nil

10. SECURITY:

a) D. P. Note

b) CHA – 1 and

c) OD-194 (Group guarantee of other two such borrowers )

15

11. DISBURSEMENT / OPERATION IN THE ACCOUNT:

a) The issuing Branch would maintain the ledger account in respect of each Star BKC account and all the

operations in the account will be through issuing Branch.

b) The card holders should be allowed to draw cash of the total sanctioned limit as per their requirement.

c) Withdrawal in the Star BKC account will be through withdrawal slip specially printed for the purpose (green

colour already in use for KCC).

d) At the time of withdrawal and deposit, the beneficiary should present the passbook for recording the

transaction.

e) Though drawals in the account are expected as per seasonality of the crops / sub-limits, yet, some flexibility

may be allowed to enable the farmer to purchase inputs at convenient time when availability / prices are

favourable.

f) Submission of invoices / quotations should not be insisted upon as limit / sub-limits are expected to be used

on the basis of scale of finance.

12. CROP INSURANCE:

a) Crops financed should be insured as required by law or as covered under various schemes.

b) Crop Loan portion of the finance should be covered under the Rashtriya Krishi Bima Yojana (RKBY) of the

Agriculture Insurance Company of India Ltd. (AIC).

c) Insurance premium should be debited to the relative loan account and claims if any be credited to the

beneficiary’s account promptly.

13. PERSONAL ACCIDENT INSURANCE:

a) Star Bhoomiheen Kisan Card holders should be covered under Personal Accident Insurance scheme as

applicable to KCC / Kisan Samadhan Card.

b) The entire cost of insurance including that of farmer’s share to be borne by the Branch.

14. SUPERVISION AND FOLLOW-UP:

a) Pre-sanction inspections should be carried out in all cases. In cases of schematic lending, where finance is

granted through tie-up recovery arrangement with a sugar factory or a processing unit, inspection at random

basis in 10 percent cases should be carried out.

b) Similarly, post disbursement inspections should also be carried out to ascertain end use of funds. In case of

schematic lending also, post disbursement in at least 10 percent accounts should be carried out.

15. REPAYMENT: The sale proceeds should be routed through the cash credit account. Market linkages,

wherever possible, should be ensured.

16. OTHER OPERATIONAL GUIDELINES:

a) If a farmer has obtained short term finance from other Bank / Co-operative society, such farmer should not be

issued Star BKC.

b) Wherever crop insurance is available, coverage needs to be obtained.

c) In case of default, the special facilities under the scheme should be immediately withdrawn and the limit

should be treated as normal crop finance which would broadly mean -

i) Withdrawal of cheque book facility (if issued).

ii) Future disbursement on regularisation of account against bills / receipts.

iii) Withdrawal of card (those who have been issued plastic cards).

17. APPLICATION OF PRUDENTIAL NORMS: a) The Star BKC facility being in the nature of cash credit accommodation for agricultural purposes, the

prudential norms as applicable to such facilities would apply to the BKC accounts.

b) In other words, the credit card account would be deemed to be NPA if loan amount remains overdue for a

period of two crop seasons / one crop season (as the case may be, depending on the duration of the crops).

c) The crop seasons after the due date should refer to only those two consecutive crop seasons in which the

farmer usually undertakes crop production.

d) An account will be treated as out of order in the following circumstances:

i) There are no credits in the account continuously for two crop seasons as on the date of balance sheet, or

ii) The credits in the account are not sufficient even to cover the interest debited in respect of the account for

two crop seasons, or

iii) The outstanding remains continuously in excess of the limit for two crop seasons as on the date of balance

sheet.

HOBC 102/121 dt 29.09.2008

16

SANDIPANI ONE PAGE MANAGER SERIES AFD/12 30.11.2013 Scheme of Financial Assistance for setting up Kisan Seva Kendras

1.0 In order to reach diesel and other petroleum products at Agriculturist’s doorsteps, Indian Oil Corporation (IOC)

has decided to set up Kisan Seva Kendras (KSKs).Site should be in rural area and not on National or State

Highway. It should be situated at minimum distance of 5 KM from NH / SH.

2.0 Objectives/Products: Making available Diesel as well as the facilities/ items required by the Agriculturist under

one roof at his doorstep at the least cost.

Providing gainful employment opportunity to rural people

3.0 Non-Oil facilities: For convenience of agricultural customers, following non-oil facilities can be sold at the

KSKs:

3.1 Sale of Agro Inputs like fertilizers, seeds, pesticides etc.

3.2 Agricultural equipments, Nutan Stove, Hurricane lamp etc,

3.3 Items of daily needs like General Provisions, Toiletry, etc.

3.4 Sale of Agro products like vegetables etc.

3.5 Provision of non-agro facilities like Banking, Internet Kiosk, and communication facilities etc.

3.6 Sale of stationery items like note book, pencil etc. as well as newspaper (if possible), revenue

stamp (if possible), water mark paper (if possible) etc.

4.0 Eligibility for Dealership:

Age: Minimum 21 years as on date of application.

Residency: Should be the resident of the concerned village/Block.

Educational criteria: Minimum matriculate or recognized equivalent, waived in case of SC / ST & Women

candidates. However, candidates should be able to read, write and count in any recognized

language.

Multiple dealership: Self or close relatives should not have dealership / distributorship of any oil company

Health: Should have sound physical and mental health.

Conduct: Candidates convicted for any criminal offence are not eligible.

Others; Signatories of dealership / distributorship agreement which were terminated by any oil

company are not eligible.

5.0 Reservation/ Reservation criteria and norms for dealer selection will be applicable for KSKs.

33% KSKs in all the categories will be reserved for women belonging to the respective

categories.

Selection: A notice will be pasted on the Notice Board of the concerned Village Panchayat, Block

Development Office & Tehsil Office. Copy of the Notice will be sent to Village Panchayat

& BDO through Registered Post. Minimum 15 days notice period will be given before

Interview.

Advertisements will be released in two leading newspapers, which are in circulation in the

area Notice to be pasted on the Notice Board of the village panchayat block development

office / tehsil office.

6.0 Facilities to be provided by IOC:

S.N. Equipment

1 Underground Storage Tank (including installation thereof) – 10/15/20 kl

as per the requirement.

2 Dispensing Pump (Electro-Mechanical Dual Mode)

3 5 kv Gen set (Need based)

4 Air compressor

5 Emblem Pole

6 Cable / Pipeline / Pump Installation

Minimum facilities to be provided by dealer

S.N. Facility

1 Driveway

2 Sales room

3 Fencing

4 Electrification including deposit

5 Fire Extinguishers

6 Other items/ facilities required for operation of Outlet

17

Cost of Investment by dealer: Rs. 6 Lakhs towards the sales building, driveway, fencing, and other items such

as – fire extinguishers etc. besides the plot of minimum size 20 mtr x 20 mtr. Including the cost of the , land,

total investment is likely to be around Rs.8 lacs (Max) inclusive of Security Deposit of Rs.25,000/- with IOC.

In respect of - a. Scheduled Castes, b. scheduled Tribes, c. Unmarried Women above 40 years of age without earning

parents, d. Widows,

KSK will be provided by IOC including ALL the facilities except Fire Extinguishers.

In addition, IOC will also provide adequate working capital loan for a full operational cycle for the

dealership. The working capital loan together with interest thereon will be recovered in 100 equal

monthly installments commencing from the 13th month of commissioning of the dealership. For the

above category candidates, the required facilities will be developed by IOC at the site owned/ taken

on lease by IOC itself.

No security deposit need to be kept with IOC

7.0 Manpower requirement

In addition to the Dealer himself, one/two Helpers can be recruited.

8.0 Expected Sales volumes and Commissions

Sales Volume Margin to Dealer

Diesel - 25 to 50 KL per month. Rs.425/- per KL

Petrol - Facility to be provided only when Rs.707/- per KL

min. potential of 10 KL per month exists

Scheme of Financing for Kisan Seva Kendras The following common terms/concessions are prescribed for our exposure to Kisan Seva Kendras sponsored

by the Indian Oil Corporation.

Item Remarks

a. Investment Fixed Assets Rs. 8.00 lacs

Stocks Rs. 12.00 lacs

b. Margin 15% for both

c. Quantum of Finance

(Based on 10KL each of Diesel & Petrol

as well as stocking other Oil/Non-Oil

Products)

Term Loan : Rs. 6.50 lacs (Max)

W/ Capital: Rs. 10.00 lacs (Max)

(Cash Credit)

d. Repayment Term Loan: 60 Equated Monthly Installments commencing

from 7th

month of commissioning.

C/C: Annual Review. Interest to be serviced as per extant

guidelines.

e. Rate of Interest

f. Processing Charges

Proposal Charges Rs.145/- per lac pa

Documentation Charges Rs.1150 for

S/L above Rs.2 lacs upto Rs.5 lacs

Inspection Charges Rs.180 per occasion

for S/L above Rs.2 lacs. We are

stipulating Monthly inspections.

50% of Proposal Charges

Waiver of Documentation Charges

(Stamp duty as applicable to be borne by the borrower)

Rs.500/- per annum

g. Security Primary Security – Assets created out of Bank’s Finance.

Equitable/legal Mortgage of outlet land if owned/leased by

the borrower

Collateral Security 20% of SL or Third party Guarantee of

persons whose worth is at least 20% of SL

Ref: Head Office Branch Circular No. 100/110 of 16.10.2006, 100/160 of 10.01.07

18


BOI – SAMANYA CREDIT CARD -(SCC) 1. OBJECTIVES BOI- SCC- A credit facility including consumption credit to meet genuine requirements of tenant

farmers, share croppers, oral lessees and landless laborers including women to assist them to

increase their income from agriculture and allied activities as well as to carry on activities under

Non-farm Sector, based on the cash flow. Without insistence on security, purpose or end use of credit, in the form of overdraft/ cash credit

Beneficiaries should be from the operational area of the branch duly identified/ sponsored by SHG or a

Farmers’ Club or a Joint Liability Group (JLG) or a reputed NGO from the approved list of NABARD or

by Panchayat President or by Post Master or Business facilitator engaged by the Bank.

2. ELIGIBILITY:- i. To be ascertained by calling recommendations from SHG/Farmers’ club/NGO/JLG/ Panchayat Raj Institute

in the village itself or Business facilitator engaged by the Bank ii.. Migratory tillers/ laborers are not eligible under the scheme .Preference should be given to women

member of the family, preferably those who are members of SHGs / JLGs.

3. IDENTITY :

To be verified through one or more of the following sources :

i. Documents related to house, ii Ration Card, and iii Voter’s list/Identity card.

4. PURPOSE:- End use of funds at the discretion of borrower , for the purpose of carrying on productive

activities including non-farm sector activities or for consumption needs.

5. LIMIT – Maximum Rs.25000/- Based on income from all resources and repaying capacity, for an

individual. Upon satisfactory conduct of the account for three years, the limit may be

enhanced at the time of review WITHIN THE OVERALL MAX LIMIT OF Rs 25,000/-

6. TYPE OF FACILITY;

Revolving cash credit /Overdrafts– Annual Review. Any number of drawals and repayment within

the limit allowed.

The review may result in continuation of the facility, enhancement of the limit or cancellation of

the limit/withdrawal of the facility, depending upon the performance of the account.

The aggregate credits into the account during the 12 months period should at least be equal to the

maximum outstanding in the account,

No drawals in the account should remain outstanding for more than 12 months.

On credit balance in the Cash Credit/ overdraft account, interest at the rate applicable to Savings

Bank norms is to be paid.

7. ISSUE OF CARDS:- A credit card-cum-pass-book incorporating the name, address, photograph,

borrowing limit/sub-limits, validity period, etc. will be issued, which is to produced for recording

of the transactions while operating the account.

8. Margin:- Nil

9. SECURITY – Clean I. CHA – 1 II -.Bearer letter

10. DISBURSEMENT / OPERATION IN THE ACCOUNT The issuing branch to maintain the ledger account for each BOI-SCC account and all the operations in the

account will be through issuing branch,

The card holders can draw cash of the total sanctioned limit as per their requirement.

Withdrawal will be through Green withdrawal slip specially printed for the purpose (green colour already in

use for KCC to be used for BOI-SCC also)..

All drawals are allowed at convenience of the borrower without assigning any reason/purpose or end-use.

Submission of invoices/quotations should not be insisted upon

11. PERSONAL ACCIDENTAL INSURANCE COVER:-

The borrower should be covered under Personal Accidental Insurance Scheme as applicable to KCC

borrowers. The entire cost of insurance including that of borrower’s share shall be borne by the Branch

12. SUPERVISION AND FOLLOW-UP:

Pre-sanction inspections/verifications shall be carried out in all cases to assess various family income

sources and activities, etc.

13. REPAYMENT:- At convenience of the borrower at least once in a year.

If an applicant has availed any credit facilities from other bank/co-operative society, he/she shall

not be eligible for BOI-SCC limit.

Ref: Head Office Branch Circular No. 100/140 of 28.11.2006

19

SANDIPANI ONE PAGE MANAGER SERIES AFD/14 30.11.2013 Loan/Overdraft/Cash Credit facility against pledge of gold coins/ornaments

Scope of the Scheme: The scheme would be implemented by all rural, semi-urban, urban and metropolitan

branches. For operational and security reasons, Zonal Managers are authorized to exclude identified

branches from the purview of the scheme.

Eligibility: Individuals (except goldsmith, jewel appraisers and their close associates) are eligible.

Proprietorship concerns, Partnership firms and Companies are not eligible under the scheme. Branches

should ensure that the proponents should have capacity to service the loan.

Purpose: To meet the credit needs of farmers, traders, entrepreneurs and professionals relating to their

business activities as also for their other bonafide purposes. To meet expenses on marriage, medical

treatment or education of family members including near relatives. Type of Loan Demand Loan/Term Loan/Overdraft/Cash Credit

Card Limit : a)Card Limit for 22 carat gold ornaments :Rs.20,000/- per 10 grams with reduction of

Rs.550/- for every drop of one carat in purity/fineness of gold and b) Card Limit for gold coins:

Rs,22,000/- per 10 grams as gold coins posses 99.99% purity and 24 carat Insurance: Gold ornaments/articles/coins pledged with the Bank under the scheme are covered under the General

indemnity Insurance Policy. As such, there is no need for obtaining an insurance cover for these items.

Max repayment period – Overdraft/CC- Interest is to serviced.

Term Loan/Demand Loan: Max. repayment period -36 months.

Accounts which are overdue for payment should be followed up vigorously for recovery. In case the pledged

articles are not redeemed within a reasonable time, branches should sell them. Branches should follow

guidelines given in H.O. Br. Cir. 106/64 dated 16.07.2012.

Rate of Interest: Please refer to the H.O. Br. Circular issued on ROI the latest being Br. Cir. 106/46 dated

18.06.2012. Please also read Br. 106/64 dated 16.07.2012

Security: i) Pledge of gold ornaments; ii)Pledge of tamper proof gold coins issued by our Bank/ other banks.

Documentation Charges : Nil ; Inspection Charges : Nil ; Commitment Charges: Nil ; Handling

charges : Nil

Valuation charges : Rs.3/- per Rs.1000/- Min. Rs.50/- and Max. Rs.300/- per valuation.

Selection of Valuer/Goldsmith

Branches should follow instructions contained Br. Cir. 106/64 dated 16.07.2012 on selection and

appointment of Goldsmith/Valuer.

Valuation Certificate

The approved valuer/Goldsmith will test the ornaments for their gold contents and certify the value in terms

of weight and purity. Based on the certificate, the loan limit against gold ornaments is fixed. The certificate

should contain the following particulars :

Name and address of the borrower; Detailed piece-wise description of the articles; Weight of each piece,

gross and net; Fineness of gold in each piece in terms of carat. In case of finance against tamper proof gold

coins, certificate need not be obtained from the goldsmith/valuer. Valuation Certificate for

our existing Gold Loan

Scheme

Sanctioning Authority:

The Valuer’s/Goldsmith Certificate should contain the following particulars:

a)The name & address of the borrower; b)Detailed piece-wise description of the articles;

C)Weight of each piece, gross & net; d)Fineness of gold in each piece in terms of carat.

I II III IV & above

4 Lakhs 10 Lakhs 20 Lakhs Full Powers *Upto Rs.10lakh at Br/ZO Level. .For limits over Rs.10 lakh admin. clearance from H/O required.

Documentation: Demand Loan/ Term Loan –

A) Where the limit is upto Rs.1 lakh : D P Note, Unstamped Agreement of Pledge of gold ornaments (Form AG-35)

Bearer Letter (L-435), Installment letter.

B) Where the limit is above Rs. 1 lakh: D P Note, Stamped Agreement of Pledge of gold ornaments/ articles (Form

AG-35) Bearer Letter (L-435), Installment letter.

Overdraft/Cash Credit Facility – A) Where the limit is upto Rs.1 lakh :D P Note, L 516, Unstamped Agreement of

Pledge of gold ornaments (Form AG-35), Bearer Letter (L-435)

B) Where the limit is above Rs. 1 lakh: D P Note, L 516, Stamped Agreement of Pledge of gold ornaments (Form AG-

35), Bearer Letter (L-435)

Common Documents : Loan application; Declaration from the borrower that the ornaments are not stridhan except in

case where wife is the borrower; Valuation Certificate from the approved valuer/ gold smith where applicable

BC No:106/64 dated 16.07.2012

20


JANASHREE BIMA YOJANA (JBY) Hon. Union Finance Minister in his budget speech 2008-09 announced a new insurance scheme

“Janashree Bima Yojana” (JBY), a Death-cum-Disability Insurance Scheme for the members of all

women self help groups, credit linked to the banks. The scheme is to be implemented by the banks, in

association with the Life Insurance Corporation of India (LIC).

I. OBJECTIVE: The objective of the scheme is to provide life insurance cover to the rural and urban

poor living below poverty line and marginally above poverty line.

II. ELIGIBILITY: i. Persons between age 18 years and 59 years.

ii. In addition to persons under BPL, even persons marginally above poverty line may be covered

provided they belong to identified vocational groups.

III. BENEFITS: i. The insurance coverage benefit under the scheme to the insurer is as under:

Insurance claim amount.

A. Natural Death: Rs.30,000/-

B. Accident Death:

i) Death due to accident: Rs.75, 000/-

ii) Permanent total disability due to accident Rs.75, 000/-

iii) Loss of 2 eyes or 2 limbs or

One eye and one limb in an accident Rs.75,000/-

iv) Loss of one eye or one limb in an accident Rs.37, 500/-

ii. Additionally, a Scholarship Allowance (under Shiksha Sahayog Yojana) is also available to the

children of the members of SHGs as under:

a. Students studying in 9th to 12

th standards (including ITI courses), whose parents are covered

under Janashree Bima Yojana are eligible. If a student fails and is detained in the same

standard, he/she will not be eligible for scholarship for the next year in the same standard.

b. Scholarship of Rs.600/- per half year per child will be paid for a maximum period of 4 years.

The benefit is restricted to 2 children per member (family) only.

IV. PREMIUM: Rs.200/- per member per annum to be shared as under:

Rs.100/- (50%) premium to be paid by member at the time of application and subsequently on

each annual renewal date,

The balance 50% premium will be borne by the Govt. of India out of Social Security Fund.

V. CLAIM PROCEDURE:

i. The beneficiary of the deceased member will be required to furnish the original death

certificate to the Nodal Agency who will arrange to forward the same along with the claim

papers to LIC i.e. the P & G S (units) of LIC.

ii. LIC would arrange to settle the claim by sending `A/c. Payee cheque directly to the bank. In case

of accident claim, police inquiry report is also required to be submitted.

VI. NODAL AGENCY: In case of members of Women Self Help Groups credit linked to our

branches, the Bank will act as Nodal Agency.

Ref; HOBC 102/118 dt 19.09.2008

21


GRAMIN BHANDARAN YOJANA( Effective from 26.06.2008) OBJECTIVES: Creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of

farmers for storing farm produce, processed farm produce and agricultural inputs; promotion of grading,

standardization and quality control of agricultural produce to improve their marketability; prevention of distress sale

immediately after harvest by providing the facility of pledge financing and marketing credit; strengthen agricultural

marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse

receipts in respect of agricultural commodities stored in such godowns and to reverse the declining trend of investment

in agriculture sector by encouraging private and cooperative sectors to invest in the creation of storage infrastructure

in the country.

Eligible Organizations - Individuals, farmers, Group of farmers/growers, Partnership/ Proprietary firms, NGO’s,

SHGs, Companies, Corporations, Co-operatives, Local Bodies other than Municipal Corporations, Federations,

Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire

country. Assistance for renovation of rural go downs will, however, be restricted to godowns constructed by

cooperatives only.

Location- Any place except for the restriction that it would be outside the limits of Municipal Corporation area.

Size- Capacity of a go down shall be decided by an entrepreneur. However, subsidy under the scheme shall be

restricted to a minimum capacity of 100 tonnes and maximum capacity of 10,000 tonnes. No maximum ceiling on

subsidy in the case of projects of rural godowns of Co-operatives assisted by NCDC. One promoter is now

eligible for subsidy claim for more than one godowns in different locations . Rural godowns of smaller size up to 50 tonnes capacity will also be eligible for subsidy under the scheme as a special

case based on viability analysis depending on the topography/special requirement of the State/Region. In hilly areas

(where the project site is located at a height of more than 1000 meters above mean sea level), rural godowns of smaller

size upto 25 tonnes capacity will also be eligible for subsidy.

Credit Linked Assistance-

Subsidy under the scheme is linked to institutional credit and will be available to only such projects as are

financed by Commercial Banks, Regional Rural Banks, State Cooperative Banks (SCBs) etc. Loan to the

entrepreneurs from banks for the construction of godowns would carry an adequate long-term repayment period.

Assistance under the scheme shall be available on capital cost of construction of godown including the cost of allied

facilities like boundary wall, internal road, platform, internal drainage system, weighing, grading, packaging, quality

certification, warehousing facilities which are functionally required to operate the godown.

Pledge Loan Facility- The farmers keeping their produce in the godowns shall be eligible to avail pledge loan on

hypothecation of their produce. The terms and conditions governing pledge loans viz. margin, rate of interest, period

of pledge, amount etc. will be as per the guidelines issued by RBI/NABARD and as per normal banking practices

followed by the financial institutions.

Implementation Period- The modified scheme will be applicable to all new projects for construction / renovation of

rural godowns in respect of which loans are sanctioned on or after

26/06/2008 upto 31/3/2012.

Insurance- It will be the responsibility of the owner of the godown to have the insurance for the godown.

Subsidy- Rate of subsidy shall be (a) 33.33% of the capital cost of the project in case of projects located in North – Eastern States, Sikkim

, hilly areas and those belonging to Women Farmers/ their self help groups / co-operatives and

SC/ST entrepreneurs & their self-help groups/ Co-operatives subject to a maximum ceiling on

subsidy of Rs.3.333 Crores and Rs. 3.00 Crores to such projects located in areas other than north east

etc.

(b) 25% of the capital cost of the project to all categories of farmers (Other than Women Farmers),

agriculture graduates, cooperatives and State/ Central Warehousing Corporations subject to a maximum

ceiling on subsidy of Rs.2.25 Crores.

(c) 15% of the capital cost of the project to all other categories of individuals, companies & corporations

etc., subject to a maximum ceiling on subsidy of Rs.1.35 Crores; and

(d) 25% of the capital cost of the project for renovation of godowns of cooperatives with assistance from

NCDC.

Capital cost of the project for the purpose of subsidy under the scheme shall be calculated as follows:

a) For godowns up to 1000 tonnes capacity – Project cost as appraised by financing Bank or actual cost

or Rs.3500/- per tonne of storage capacity, whichever is lower;

b) For godowns exceeding 1000 tonnes capacity – Project cost as appraised by Bank or actual cost or

Rs.3000/- per tonne of storage capacity, whichever is lower.For Ne / Hilly areas this would be Rs.

4,000/- instead of Rs. 3,000/- irrespective of godown capacity . However, for godowns exceeding

30,000 tonnes capacity, the subsidy would be restricted to that admissible for capacity of 30,000 tonnes

only, subject to the relaxations made under para 3 (xviii) above for projects of the co-operatives;

22

For renovation of godowns by cooperatives with assistance from NCDC - project cost as appraised by Bank /

NCDC or actual cost or Rs.750/- per tonne of storage capacity, whichever is lower.

No beneficiary shall draw subsidy for the godown project or any of its components from more than one source.

The capacity of godown shall be calculated @ 0.4 M.T. per cu. mtr.

Release of Subsidy- Subsidy for the projects under the scheme shall be released through NABARD for projects

financed by Commercial, Cooperative and Regional Rural Banks etc.

Adjustment of subsidy in Borrower's Account - The subsidy release for an individual project will be kept in

separate borrower-wise account. The adjustment of subsidy will be back ended. Accordingly, the full project cost

including the subsidy amount, but excluding the margin money contribution from the beneficiary, would be disbursed

as loan by the banks. The repayment schedule will be drawn on the loan amount in such a way that the total subsidy

amount is adjusted after full bank loan component net of subsidy with interest is liquidated but not before 5 years from

the date of disbursement of first installment of loan.

No interest chargeable on subsidy portion - The subsidy admissible to the promoter under the scheme will be kept

in the Subsidy Reserve Fund Account (Borrower-wise) in the books of the financing banks. No interest would be

charged on this by the Bank. In view of this, for purposes of charging interest on the loan component, the subsidy

amount should be excluded. The balance lying to the credit of the subsidy reserve fund account will not form part of

demand and time liabilities for the purpose of SLR/CRR.

Term Loan - i) Minimum 50% of the project cost (46.67% in case of NE States, hilly areas, Women Farmers/ their self help

groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives ) is to be raised as

term loan from the financing banks. As the subsidy is back-ended, eligible amount of subsidy would be initially

allowed as term loan to the beneficiary. The repayment schedule will be drawn on the total loan amount

(including subsidy). The subsidy amount will be adjusted after liquidation of bank loan (net of subsidy) but not

before 5 years from the date of disbursement of first installment of term loan.

ii) Depending upon the cash flow, the term loan would carry an adequate long term repayment period, not less than 5

years including a grace period of one year.

iii) Rate of interest to borrowers on term loan shall be as per RBI guidelines. Interest will be chargeable from the date

of the first disbursement of loan.

iv) The financial institution may also provide working capital separately for undertaking business by

entrepreneurs.

Pattern of Funding;

Projects located in States/ areas other than NE States/ hilly areas, and projects not belonging to women farmers/ SC/

ST entrepreneurs & their self-help groups/

cooperatives

Projects located in NE States/hilly areas**/

& projects belonging to Women

Farmers***/ SC/ST entrepreneurs &

their self help groups/ Co-operatives****

Source of finance Farmers@, Agriculture

Graduates, Cooperatives &

State/Central Ware-housing Corporations.

Individuals, Companies

&Corporations etc.

Owner's minimum

contribution*

25% 25%

20%

Subsidy 25% 15% 33.33%

Term loan (Mini.) 50% 50% 46.67%

@ Farmer is a person whose main source of income is from Agriculture.

* Cost of land not exceeding 10% of the project cost can form part of the owner's contribution.

** Where the project site is located at a height of more than 1000 meters above mean sea level.

*** In case of partnership/ co-ownership, the ownership of women partners/ members shall be to the extent of

50% or more in the project to consider an application under the category of women farmer.

**** SC/ST Cooperative to be certified by the concerned officer of the State Government.

Mode of release - a) Advance subsidy: 50% of the subsidy amount will be released to NABARD by Deptt of Agriculture and

Cooperation in advance. Accordingly NABARD would release subsidy to participating banks in advance for

keeping the same in the Subsidy Reserve Fund Account of the concerned borrower. This amount of 50%

advance subsidy would be released by NABARD to the participating banks on submission of a project profile-

cum-claim form (Annexure-I).

b) Final subsidy: The remaining 50% of the subsidy amount would be disbursed to the participating bank(s)

by NABARD after conduct of an inspection by a Joint Inspection Committee comprising of officers from

NABARD, participating bank and Directorate of Marketing & Inspection (DMI) in the concerned State.

For further details please refer HOBC 106/170 dt 22.01.2013

23


Scheme for financing installation of Solar Energy Home Lighting System i) Objective –To provide renewable source of energy to rural/ semi-urban people by using solar

energy

ii) Purpose – To consider finance for installation of Solar Energy Home Lighting System with

necessary accessories from reputed manufacturers/ suppliers/ authorized dealers.

iii) Eligibility-

1. Households in rural/ semi-urban/ urban centres, small business establishments, hotels,

hospitals, restaurants, etc. which have an assured source of income.

2. Focused attention to be made to make available Solar Energy Home Lighting System to

our established Kisan Credit Card/ Kisan Samadhan Card holders from each Branch.

The Bank has a customer base of more than 10 lakh KCC holders.

iv) Type of Loan – Medium Term Loan repayable in installments.

v) Project Cost – As per the specific standards and costs prescribed for the system, since there are

various types of indoor lighting systems devised by the various companies. On the basis of the

product specifications and requirement of the customer, the system should be selected and

project cost should be arrived as per the module.

vi) Quantum of loan – 75% to 85% of the project cost which includes costs of the system,

accessories, transportation, installation and commissioning.

vii) Margin – 15% to 25% of the project cost.

viii) Security –

Upto a limit of Rs.50, 000/- - Hypothecation of Solar Energy Home Lighting System.

Limit above Rs.50, 000/- - i) Hypothecation of Solar Energy Home Lighting System;

ii) Mortgage of land or collateral security in the form of LIC policy/ NSC/ Term Deposits, etc

iii)Suitable third party guarantee wherever necessary.

ix) Security Documents –

a) Composite Hypothecation Agreement CHA-1;

b) Demand Promissory Note;

c) Equitable/ Legal Mortgage of the land where mortgage of property is stipulated as

security documents;

d) Guarantee Letter OD-194 where 3rd

party guarantee is proposed in the account;

e) Stamped receipts, bills, invoices

x) Service Charges – As prescribed by Head Office.

xi) Repayment –

a) Finance extended to farmers : 5 to 7 yearly installments along with interest.

b) Finance made to others: Advance to be repaid in monthly installments in 5 – 7

years. Interest should be serviced as and when applied.

xii) Disbursement – Disbursement should be made directly to the suppliers of solar lighting system

after installation of the unit against original invoices, stamped receipts, delivery note duly

acknowledged by the borrower. The borrower should confirm to the Bank that he has received

the system in good condition and it is working satisfactorily.

xiii) Rate of interest – As prescribed by Head Office for agricultural advances, from time to time.

xiv) Classification –

a) Advance considered for Solar Energy Home Lighting System should be

classified as priority sector advance.

b) The limits considered to the farmers as part of KCC/ KSC should be classified as

Direct Finance to Agriculture.

(BC 103/03 of 08.04.2009)

24

SANDIPANI ONE PAGE MANAGER SERIES AFD / 18 30.11.2013

Scheme for purchase of Solar Water Heaters

Purpose: To purchase brand new solar water heating systems with necessary accessories for usage in Agro

processing units of the farmers, integral part of farm activity.

Eligibility: Small and Marginal farmers, share croppers/tenant farmers, agri-entrepreneurs.

Solar Water Heater: Model I: Flat Plate Collector (FPC) based system:

Project Cost: Rs.22000/- to Rs.88000/- depending upon capacity (litres per day).

(Details are available in the annexure to Br. Cir.106/117 dated 01.11.2012

Model II : Evacuated Tubular Collector (ETC)

Project Cost Rs. 18000/- to Rs.65000/- depending upon capacity (litres per day)

(Details as per Br. Cir. 106/117 dated 01.11.2012

Please note only MNRE (Ministry of New and Renewable Energy) approved products to be considered

including solar P.V. Panel, connecting pipelines, water tank, etc.,

Quantum of Loan: 75% to 85 % of the project cost including the cost of accessories, installation charges,

etc.,

Margin: 15- 25 % of the cost of equipments including the cost of accessories. If subsidy is available, the

same can be considered as margin.

Subsidy as per NABARD guidelines (At present NABARD Cir. No. 245/ICD/45/2011 dated 01.12.2011)

Security: Hypothecation of equipments and accessories purchased out of the loan

ROI: Linked to Base Rate

Repayment: 3 – 5 yrs in HY/yearly installments.

Classification: Priority – Indirect Agriculture.

Documents: CHA 1, D.P. Note, OD 194, extension of collateral security in the form of mortgage of

agricultural land already available (where the total credit limit (including other loan ) enjoyed by the farmer

exceeds Rs.1.00 lacs)

(For technical details on water heater please go through the Br. Cir. 106/117 dated 1.11.2012)

SCHEME FOR PURCHASE OF SOLAR ENERGY BASED PUMPSET -- AFD / 19

Purpose: Under this scheme, loan will be granted for installation of solar water pumping system. The

proposed scheme will help in harnessing the solar energy for pumping water.

Eligibility and Repaying Capacity: The farmers’ land should have adequate source of water. In case any

public/Govt. source is being used, water right certificate from the concerned authority should be produced.

In case of wells, the wells should have sufficient recouping capacity to irrigate area proposed to be brought

under cultivation. The land holding should be economical. The viability should be ensured and projected

DSCR is not less than 1.60. The farmer should be able to repay the proposed installments within 5-7 yrs.

Components :

Solar PV Panel

One of the following motor pump sets compatible with the photovoltaic array:

Surface mounted centrifugal pumpset

Submersible pumpset

Any other type of motor pumpset, approved by MNRE.(Ministry of New and Renewable Energy)

Project Cost: Cost in the range of Rs.3 lakh to Rs.5 lakh, depending upon the capacity of solar pumpset

can be considered provided the project is, as a whole, technically feasible and economically viable.

Quantum of Loan: 75% of the cost of the equipment

Margin: 25 %. If subsidy is available, the same can be considered as margin.

Security: Hypn.of equipments and mortgage of agricultural land as per extant guidelines for agri.

Advances.

Repayment: Minimum of 5-7 years (HY/Yearly as per Cash Flow after harvest of the crops)

(For other details, please go through the Br. Cir. 106/117 dated 1.11.2012)

25

SANDIPANI ONE PAGE MANAGER SERIES AFD / 19 30.11.2013

STAR KRISHI VAHAN

Objective: For purchase of any type of vehicle which is to be used for the transportation of

agriculture inputs & farm products. The proponent should come from the operational area of the

branch.

Eligibility:

Sr.

No.

Type of Borrower Type of vehicle ( New Only ) Max. Finance Margin

1. Farmers Jeeps , SUVs or any other

four/ two wheeler / Bullock

Cart including animals

Depending upon

repaying capacity

Max. Rs. 1 lakh for

2 wheelers, Max.

Rs. 15 lakhs for

others

5% - 10% on

the on road

cost

2. Individuals, SHGs,

Cooperatives in

rural areas (

engaged in

transportation

activity )

Trucks , Mini Trucks , Pick

up vans , refrigerated vans ,

Tractor along with trolley ,

trailers , semi Trailer, Bullock

cart along with animals, for

transportation of agriculture

inputs / farm outputs

Depending upon

surplus generated to

meet installment&

interest

Max. Rs. 25 lakhs

10 % - 15 %

on the on road

cost

3. Corporate

,Partnership firms,

Institutions

Trucks , Mini Trucks , Pick

up vans , refrigerated vans ,

trailers , semi Trailers

Depending upon

surplus generated to

meet installment&

interest

Max. Rs. 1 crore

25 % on the

on road cost

Minimum DSCR SHOULD BE 1 : 1.25

Technical feasibility / Economic viability should be taken care of.

Term loan: Max. 5 Yrs - for 2 wheelers; 7 Years for others

Repayment: I) Farmers: H/Y installments + intt. (if Rabi & Kharif both crops are taken )

Yearly + intt. ( if mango crop is taken ) ii ) Others : H/Y installments + intt.

Sanctioning Authority: As per delegation; Service Charges: As per extant guidelines

Interest : i) Upto Rs. 10 lakhs : 1.50 % OBR , ii) Above Rs.10 lakhs : 2 % OBR ,

The advance would be treated under agriculture category.

Security: Hyp. Of vehicle, Comprehensive insurance, Collateral of equal or more than 125 % ( 75

% if TDR, LIP , NSC etc. ) of loan amount for loans to non farmers ( even in case of farmers if

considered under eligibility norms of Sr. 2 ) for limit > Rs. 3 lakhs. In case of existing customer,

conduct of a/c should be satisfactory. Loan to be disbursed directly to the authorized dealer only.

Third party guarantee : Not mandatory except: i) while financing to farmers of age exceeding 65

yrs their legal heirs should stand as guarantor/s . ii) if KCC limit ( not exceeding Rs. 1 lakh) is

disbursed within a period of 6 months & the a/c is not a canvassed one .

Documents : Application cum proposal , CHA -2 revised , AG-15 , OD -194 , Comprehensive

insurance with bank clause , letter addressed to insurance co. , Blank Transfer form in duplicate ,

Charge with RTA / ROC, L -515 , Debit authority letter

Supervision / follow up as per extant guidelines. ( BC 105 / 182 DT. 14.02.2012 )

26

SANDIPANI ONE PAGE MANAGER SERIES AFD /20 30.11.2013

Estate Purchase Loans

Purpose: To purchase estates (for rejuvenation) growing traditional plantation crops viz. coffee, tea, rubber

and cardamom, cashew, pepper, coconut, etc and for any other perennial orchard crop with the approval

from H.O. AFD

Eligibility: The loan applicant should be an existing estate owner having sufficient income from the estate.

He should be in a position to rejuvenate the estate proposed to be purchased. He should have satisfactory

past dealings with the bank at least for the last 3 yrs. For loans of Rs.10 lakh and above the rating exercise

is to be done and minimum entry level rating of SBS 5 should be achieved. The purchaser should have

enough experience in the line and financially sound and should be in a position to bring in margin and

service the debt. The purchaser should qualify for the respective State Govt. Norms (relating to land

holding as per land ceiling act, income criteria, restrictions on purchase and sale of Agri. Land, if any, etc.,)

The estate should preferably be a neglected one but have the potential for realizing the higher yields upon

rejuvenation.

Quantum of Loan: Min. Rs. 1.00 lakh and Max. Rs.25.00 lakh. The total cost of the estate ( being lowest

of i. Market value ii) Guidance value/circle rate fixed by the State/Dist.Authority) less appropriate margin.

Stamp duty and registration charges may also be considered for finance. Valuation report has to be cross

checked with the last 5 yrs. average registration value and reasonability is to be ascertained.

Margin: Normally 50 % i.e., the value of the property should be 200 % and above of the loan amount. ( in

deserving cases, the margin may be relaxed to 25% (Authority ZLCC).

Security: Mortgage of Property to be purchased. Also, collateral security of mortgage of existing landed

property (including preferably residential property) so as to make the total value of the security 200 % and

more of the loan amount.

ROI: Linked to Base Rate

Repayment Period: within 7-9 yrs. In case of specific circumstances, depending on the status of the estate

and rejuvenation period required, it may be extended upto 20 yrs.

Loan Application: AG 100 with suitable Annexure for Plantation Crops.

Documents to be produced by the applicant:

Copies of land records regarding land owned and to be purchased, certified by the concerned Revenue

Authorities

No Due Certificate from Co-operative Credit Society/Commodity Boards/Financial institutions.

Documents of title and other relevant documents to establish the right over presently held landed

property as well as lands to be purchased (Due Diligence for verification of title deeds as per extant

guidelines to be meticulously followed.

Copy of sale agreement

Crop history of the estates (both existing and proposed to be purchased) techno-economic suitability

to be established.

Valuation Report from the panel valuer. (Location, suitability, inspection etc., by branch official,

second valuation, if need be, as per the extant guidelines to be done.

Project report establishing techno-economic viability and also for credit limit exceeding

Rs.10 lakh, the balance sheets, cash flow, profitability statement.

Method of Disbursement and other details: Please carefully go through Br. Cir. 106/117 dated 1.11.2012

and also subsequent clarification in Br. Cir. 106/129 dated 29.11.2012

27

SANDIPANI ONE PAGE MANAGER SERIES– AFD /21 30.11.2013

KISAN ALL PURPOSE TERM LOAN

Objective: To create a hassle free single term loan limit to farmers for all term loan requirements like Farm

Mechanisation, Land Development, Minor Irrigation, Water Conservation, Horticulture, Allied activities

and other agri related activities, etc., excluding orchards/plantation crops.

Eligibility: Individual, JLG/SHG of Farmers-Owner cultivators,

Type of Loan : Term loan repayable within 9 yrs. The purposes for which the limit is granted shall not be

a part of the Kisan Credit Card limit. (The farmer can have either Kisan Credit Card route or the loan under

this scheme)

Quantum of Loan: To be based on the investment plan given by the farmer to be undertaken in the next 2-

3 yrs. Subject to 5 times of annual income (current pre development stage) of the farmer including allied

activities or 50 % of the value of land mortgaged whichever is lower –MAX. RS.20 LAKH

(Please note under New KCC, the farmer can draw a plan of investment upto 5 yrs)

Margin: Upto Rs.1 lakh—NIL

Over Rs. 1 lakh—Small and Marginal Farmers: 5 % and for others 15 %

(Margin may be brought in at the time of asset creation)

Security: Upto Rs.1 lakh – Hypo. Of assets created out of the loans

Above Rs. 1 lakh – Mortgage of land ( it shall be at least 200 % of the limit sanctioned)

ROI: As per extant guidelines for agricultural loan

Disbursement: The farmer may be allowed to draw the amount at his convenience with a simple letter of

undertaking linked to the loan application/loan document executed. The drawal to be permitted on the

indicated limit for each of the purposes specified at the time of sanction. The farmer should undertake to

create the asset/complete the project within 15/30 days of availing the disbursement.

Loan Application: AG 100 with suitable annexures.

Documentation: As per extant guidelines for investment credit (Principal document being CHA 1 or CHA

2(in case of tractor/combined harvester which needs to be registered with RTO along with other particulars

i.e., Engine No., Chassis No., etc.

Other details: Please carefully go through Br. Cir. 106/117 dated 1.11.2012 and also subsequent

clarification in Br. Cir. 106/129 dated 29.11.2012

KISAN TATKAL LOAN SCHEME SERIES AFD/22 30.11.2013

PURPOSE: An instant Credit for farming community to meet the emergency requirements for Agriculture

and Domestic purposes for tiding over temporary difficulties.

Eg., Repairs to farm equipments (tractor, pump set, trolleys, etc.,) Repairs/construction of cattle shed, farm

produce store room, house, etc., . (Also for both pre harvest as well as post harvest for emergency needs)

Loan to be classified as Direct Agricultural Advance.

Eligibility: Individual farmers/JLG (members not exceeding 4 farmers)

Type of Loan: Composite Term Loan repayable within 3 yrs.

Quantum of Loan 50 % of KCC limit /25% of annual income which is ever is lower. (Subject to Minimum Rs.1000/- Max.

Rs.50000/-)

Security: Only extension of existing security. No additional security even if the combined limit i.e.,

existing KCC and proposed Kisan Tatkal Scheme exceeds Rs.1 lakh.

Repayment: 3 to 5 yrs (HY/Annual). The loan is to be cleared in full if a fresh/enhanced limit is sought in

the subsequent year based on revised KCC Limit. in suitable installments coinciding with overall income

generation of the farmer.

Rate of Interest: To be decided as applicable to Agricultural Credit after combining all limits enjoyed by

the borrower

Application: AG 100 along with applicable annexures.

Documentation: D.P. Note, L 515, L 516, copy of land records with expected income if not already held

on records.

Other details: Please carefully go through Br. Cir. 106/117 dated 1.11.2012 and also subsequent

clarification in Br. Cir. 106/129 dated 29.11.2012

28

SANDIPANI ONE PAGE MANAGER SERIES - AFD -23 30.11.2013 AGRI-CLINICS AND AGRI BUSINESS CENTRES (ACABC) SCHEME 2010

(The Scheme is designed by Dept. of Agriculture and Co-operation, Ministry of Agriculture, GOI)

(Communicated to the branches vide H.O.Br. Cir.106/130 dated 29.11.2012)

Objectives: To Supplement efforts in providing extension services to the farmers as per Business

Model (Project) of Agri-Entrepreneur and as per the local needs and affordability of target

group of farmers.

To support agricultural development

To create gainful self employment opportunities to unemployed agricultural graduates,

agricultural diploma holders, intermediate in agriculture and biological science graduates

with PG in agri-related courses.

Eligibility: Graduates /Post Graduates/Diploma (with at least 50% marks) in agriculture and allied subjects

from State Agricultural Universities/Universities recognized by ICAR/UGC., Biological Science Graduates

with Post Graduation in Agriculture and allied subjects, Other Degree courses recognized by UGC

/Diploma /PG Diploma courses having more than 60% of the course content in Agriculture and allied

subjects, after B.Sc. Biological Sciences from recognized colleges and universities, Agricultural Related

courses at Intermediate (i.e., Plus Two ) level with at least 55 % marks. The candidates should have

undergone a training for setting up of Agri-clinics and Agri-business centres at Nodal Training

Institutes(NTI) under the auspices of National Institute of Agricultural Extension Management

(MANAGE) and the certificate from NTI should be attached with the loan application. The loan

application format and the details of enclosures to the application are available as annexures to Br. Cir. No.

106/130 dated 29.11.2012.

Project Cost: Rs.20.00 lakh for individual project. Rs.100 lacs for group project (taken up by a group

comprising of 5 trained persons). The bank may nevertheless finance a group of 2 or more trained persons

with TFO (total financial outlay) ceiling of Rs.20 lakh per person and over all ceiling of Rs.100 lacs

Type of Facility: A composite term loan which would include term loan for fixed asset creation plus

working capital for one operating cycle. The repayment schedule will be on total loan including subsidy as

the subsidy is back ended to be adjusted at last.

Repayment: 5 to 10 yrs with a moratorium period of maximum 2 yrs. The installment to be fixed as per

the cash flow to be generated on commencement of operation and stabilization of income.

Rate of Interest: As per extant guidelines.

Margin: Upto Rs.5.00 lacs no Margin. For loan above Rs.5.00 lacs, margin has to be stipulated according

to RBI guidelines for agricultural advance i.e., 15 to 25 %. In the case of projects of SC/ST, women

entrepreneurs and projects in North Eastern states and Hill areas, 50 % of the margin money stipulated by

Bank will be provided by NABARD. Loan amount to be sanctioned will be Total Project Cost minus

Margin. Subsidy is back ended and to be adjusted at the end towards last installments.

Security: As most of the eligible activities pertain to agricultural input supply and services and as the cost

of investments will be less than 25 lacs, the security norms applicable to tiny industries prescribed by RBI

will be applicable. Upto Rs. 5 lakh, no collateral security should be insisted for.

Time Limit for completion of the Project: within 6 months from the date of initial disbursement of the

loan by the bank, which may be extended for reasons of delay considered justifiable upto another 6

months. If the project is not completed within the stipulated time, the subsidy will not be available and the

advance subsidy, placed with the bank, is to be refunded forthwith to NABARD.

Subsidy: BACK END COMPOSITE SUBSIDY (to be kept under Subsidy Reserve Fund (non interest

bearing) and adjusted after lock in period of minimum 3 yrs at the end of the loan period) -- at 44 % of the

Project cost in respect of projects started by SC/ST, women, projects at NE states and Hill areas and at 36

% of project cost for others. AN INTERESTED AGRI-ENTREPRENEUR WILL SUBMIT THE PROJECT PROPOSAL FOR TERM LOAN AND SUBSIDY TO THE BANK ON AN APPLICATION FORM PRESCRIBED BY OUR BANK IN BR. CIR. 106/130 DATED 29.11.2012 ALONG WITH ALL RELEVENT

PAPERS AND PROJECT REPORT. AFTER SANCTION, THE BANK WILL FURNISH THE DETAILS OF SANCTION TO THE REGIONAL

OFFICE OF NABARD FOR RELEASE OF SUBSIDY.

To ensure that the borrowers do take up extension services to the farmers, periodic surprise inspection

at least on a quarterly basis will be made by the specified officers (as per the scheme). The financing bank

will peruse the periodic surprise visit reports. Any adverse feature will result in refund of subsidy to

NABARD. The financing bank under the scheme is to send the copy of the report to NABARD and

ATMA( Agriculture Technology Management Agency) for information and remedial action, if need be.

The report may highlight nature of enterprise initiated by agri-preneur, its coverage/reach, impact on

income of agri-preneur, impact on farmers and agricultural development in the area.

(Full details of the scheme are available in Br.Cir. 106/130 dt.29.11.2012).

29

SANDIPANI ONE PAGE MANAGER SERIES ADV/24 30. 11.2013

STAR MORTGAGE LOAN (FOR FARMER ARTHIAS & DEALERS OF AGRICULTURAL INPUTS)

ELIGIBILITY:

Individual Farmers, Arathias & Agricultural Input Dealers.

PURPOSE: -

To meet Credit Needs of Farmers and Arathias – On-farm OR Off-farm & Other Bonafide requirements

To meet Marriage / Medical / Educational Expenses of Family Members including near relatives of farmers & for

Purchase of Consumer Durables

To undertake Land Development activity / Other Investment Needs on Lands

To Dealers of Inputs & Arathias to meet their trade / Credit Requirement

TYPE OF ADVANCE: -Can be sanctioned as Demand Loan/ Term Loan/ OD (Reducible or Non Reducible)

QUANTUM: - (Branch Manager is competent to assess the income up to Rs. 1.00 Lakhs)

FOR AGRICULTURISTS –

Up to Rs.5.00 Lakhs (Can be extended up to Rs. 10.00 lakhs with prior approval of Zonal Manager) subject to 10

times of anticipated net annual income based on Land-Holding/ Cropping Pattern

FOR OTHERS

Up to Rs. 10.00 lakhs subject to 4 times of net annual income based on Income Tax Returns

MARGIN :

Up to 40% on the Value of Property for Loans up to Rs. 5.00 lakhs.

Up to 50% on Value of Property For Loans over Rs. 5.00 lakhs.

In case of Rural Properties Valuation will be based on assessment of Revenue Authorities/ Br. Manager

GUARANTEE:

Normally No Third party Guarantee is required.

If Property Stands in Third Party Name, then Owner of Property should be taken as co-borrower.

INTEREST:

As applicable to Agricultural Loan / Kisan Samadhan Card

REPAYMENT:

7 Years in Equated Monthly Installments – To be Linked with Cropping Pattern / Farm Income / Cash Flow of the

Borrower by Monthly / half-yearly / Yearly Installments

SECURITY:

Equitable/ Legal Mortgage of Property (Residential /Commercial)in the name of applicant or his/ her spouse or

parents

Agriculture Land can also be accepted as security subject to State Laws)

Property can be self-occupied or Leased-out to acceptable individuals.

Obtention of Third Party Guarantee is left to the discretion of Sanctioning Authority

In case of Property already mortgaged to us advance can be considered subject to availability of Security / facilities

already availed against such property

Search should be obtained from Approved Lawyer for 13 Years.

Valuation Report should be obtained from the Bank’s Approved Architect / Valuer.

PROCESSING FEES:-

A/Cs repayable in Installments(incl. Reducible O/D limit) –@ 1% of Loan Minimum Rs.1,500/- Maximum

Rs.30,000/-(One Time)

On OD (Non Reducible)–@ 0.25% Minimum 750/- Maximum 7000/- (On Annual Basis)

DOCUMENT CHARGES, ADVOCATE’S FEES, ARCHITECT’S FEES - On Actual Basis

DOCUMENTS REQUIRED FROM CUSTOMER: -

Photo; Original Title Deeds, Valuation Report; I.T. Return; Details of Guarantor if stipulated.

DOCUMENTS: -

1. 1. Application form as per Br. Cir 96/ 109 of 28.10.2002

2. 2. D.P. Note (Demand Loan and Overdraft) L-434 OR IFD-1 (Term Loan)

3. 3. L-516 as per Br. Cir. No. 97/114 dated 13.11.2003

4. 4. L-515 as per Br. Cir. No. 94/186 dated 25.1.2001

5. 5. Bearer letter L – 435

6. 6. Installment Letter L-440 (In Case of Demand Loan)

7. 7. Guarantee Letter OD168/ OD174/ CHA – 3, wherever applicable

8. 8. Mortgage of Property/ Extension of Mortgage as the case may be.

9. 9. Undertaking as per Br. Cir. 96/75 of 05.08.2002 & as per Br. Cir. 96/ 133 of 27.12.2002

In case of need please refer to Br. Cir. 99/142 of 20.12.2005. 100/02 of 07.04.06; 100/20 of 06.05.06

30

SANDIPANI ONE PAGE MANAGER SERIES ADV-GOVT SPON. SCHEMES /01 30.11.2013

SWARNJAYANTI GRAM SWAROZGAR YOJNA (SGSY)

Now National Rural Livelihood Mission BC 107/10 16/04/13 Introduced for rural area w.e.f. 1.4.99 replacing IRDP/DWCRA/GKY etc. with objective to bring assisted family

above poverty line in 3 years by providing income generating assets through Bank Credit and Subsidy. The assisted

families are known as SWAROZGARIES.

TARGET GROUP: The person to be assisted should be selected from BPL list duly approved by Gram Sabha. Loan

may be given to individual or to groups in the form of Swarozgaries.Group activity is preferred. Representation of

SC/ST, Women & Disabled should be 50%, 40% and 3% respectively.Separate family on the basis of separate

kichen.One member from one family will get benefit.

FINANCING INDIVIDUAL SWAROZGARI

a. Loan is to be sanctioned from among 4-5 key activities identified for each block based on available

resources.Rs.2000/ may be sanctioned as consumption loan.

b. Wherever minimum skill requirement/training is needed DRDA will organise training of not more than 2 days

before disbursement of loan.

c. For farm sector – unit cost as fixed by Regional Committees of NABARD and for other sectors – it would be fixed

by DISTT. SGSY Committee.

FINANCING IN GROUP (Self Help Group – SHG)

a) 10 to 20 persons belonging to BPL should come together to form SHG. In case of minor irrigation project, hilly

and other sparsely populated areas and disabled persons group may be of 5 persons. However if necessary, a

maximum of 20% and in exceptional cases where essentially required upto a maximum of 30% of member in a

group may be taken from families marginally above poverty line living contiguously with BPL families if

acceptable to BPL members of the group.

APL member will not be eligible for subsidy and shall not become office bearer of the group.

b) One person should not be a member of more than one group. The group should not comprise more than one person

from same family.

c) A SHG which has demonstrated the potential of a viable group and is in existence for atleast 6 months will receive

revolving fund which will be in the ratio of 1:4 (maximum) of corpus fund of the group.

DRDA will provide subsidy which is equal to group corpus with minimum of Rs.5000/- and maximum of Rs.10,000/-

linked with Bank credit. Additional dose of subsidy of Rs.10,000/- total being maximum Rs.20,000/- may be released

by DRDA (to be adjusted against the loan at the end of cash credit period) to those group which has not been able to

reach micro enterprise stage.

QUANTUM OF FINANCE : No investment ceiling other than unit cost. Cash disbursement upto Rs.10,000/- may

be permitted under ISB Sector.

SUBSIDY : (i) For individual (General) : 30% of Project cost Max.Rs.7500/-

----Do----- - SC/ST): 50% of Project cost Max. Rs.10,000/-

(ii) In case of SHG: 50% of Project cost subject to max. Of Rs.1.25-lacs Or Rs.10,000/- per member

whichever is less.

(iii) No monetary ceiling in case of minor irrigation project.

(iv) Subsidy will be back ended to be kept in G/L Subsidy Reserve A/c.

MARGIN Individuals SHG Margin For loan upto Rs.50,000/ For loan upto Rs 3-lacs Nil

For loan above Rs.50,000/- For loan over Rs 3-lacs 15 to 25%

SECURITY :

i. No Collateral required for loans upto Rs.1,00,000/- to individuals and Rs.10 lacs to SHG, assets created out of

bank finance to be hypothecated to the bank.

ii. Mortgage of land or third party guarantee may be obtained where movable assets are not created.

iii. For loans above Rs.1,00,000/- to individuals and Rs.10 lacs to SHG mortgage of land or third party guarantee

required. [Ref. HO: IOM:PSCD:LBD:MAT:667 dt. 18.09.2009]

Insurance of the assets created to be made. GROUP INSURANCE OF SWAROZGARIS

Swarozgaris are covered under group insurance scheme for which the maximum age of swarozgaris at the time of

sanction has to be kept at 60 years. The insurance coverage however would be for five years or till the loan is repaid

whichever is earlier, irrespective of the age of swarozgaris at the time of sanction of loan (under group insurance

swarozgaris will be paid Rs.6,000/- in case of natural death and Rs.12,000/- in case of accidental death). REPAYMENT OF LOAN

i. To be repaid as Medium Term Loan with minimum repayment period of 5 years. Instalment should not

be more than 50% of net incremental income.

ii. Swarozgaris will not be entitled for subsidy if loan is repaid within lock in period.Subsidy may be

adjusted after 5 yrs. Rate of Interest: please refer RBI Master Cir.RBI/2012-13/88 dated 02.07.2012

DOCUMENTS : Sponsorship letter ii)SHG-01 to SHG 06 (For details please see our ‘Chapter on Documentation’ in

this Handbook). Disposal of Application: Within 15 days of receipt of application. (Cir letter2013-14/167 28.11.13 for FY 2013-14 intt subvention scheme extended for woman SHG in selected 150 districts

:Woman SHG may get credit up to Rs.3.0 lacs@7% pa ,SHG which has availed capital subsidy under SGSY in existing

scheme is not eligible .Bank will be subvented to the extent of difference between average interest charged (WAIC) and 7%

subject to maximum 5.5%. SHG may also get additional 3% subvention on prompt repayment of loan, reducing the

effective rate of interest to 4%.).

31

SANDIPANI ONE PAGE MANAGER SERIES ADV-GOVT SPON. SCHEMES /02 30. 11.2013

SWARNA JAYANTI SHAHARI ROZGAR YOJNA (SJSRY)

OBJECT Poverty alleviation Scheme providing gainful employment to urban poor, launched w.e.f. 1.12.97after

subsuming earlier 3 schemes NRY/UBSP/PMIUPEP. The scheme has been revised w.e.f.

01.04.2009.Funding by centre and state in 75:25. For backward states 90:10

SCOPE

The scheme is applicable to all urban town for urban poor living below Urban Poverty Line based on

criteria of Per Capita Monthly Income. Separate Kitchen is basis of family income.

RESERVATION It is to be ensured that : Women beneficiaries : 30%

Physically disabled : 3%

SC/ST to the extent of proportion of their strength in local population.

SCHEME : Loan may be sanctioned to

A) Individual beneficiary as well as to Partnership

B) Group of Women known as Development of Women & Children in Urban Area (DWCUA)

Activities under micro mfg/services /reatailing/ allied agriculture can be considered.

A. Loans to Individuals & Partnership :

i. Resident in town for last 3 years.

ii. Should live below poverty line.

iii. Should not be defaulter of any financial institution

iv. Project cost should not exceed Rs.2.00 lac.

If two or more persons join together the project with higher cost would also be covered

provided share of each person in the project cost is Rs.2.00lac or less.

MARGIN :5% of the project cost in cash

SUBSIDY :25% of the project cost with ceiling of Rs.50000/- per beneficiary.

In a partnership project subsidy will be calculated for each partner

Subsidy to be appropriated only for closure of loans.

COLLATERAL SECURITY : No collateral Security is required.

REPAYMENT : To be repaid in 3 to 7 years after initial moratorium of 6 to 18 months

as Term Loan.

TRAINING : It is essential to be provided to selected candidates – except

when they are trained.

. Components of SJSRY:1.Urban women self help programme(UWSP) i. Scheme is for Urban poor (women) who has decided to set up

self-employment ventures in group.

ii. Atleast 5 urban poor women come together to form a group. Each of them shall fulfill

urban poverty norms on monthly per capita income.

iii. Subsidy @ 35% subject to maximum of Rs.3.0 lacs. Rs.60,000/ per head. No maximum ceiling

for project cost.

iv. The Group is entitled for revolving fund after 1 year of its formation for a maximum

upto Rs.25,000/- @ Rs.2,000/- per member for infrastructural support for income

generation and other group activities.

2.USEP:Urban self employment programme):Individual loan for any productive purpose

3.UWEP:Urban wage employment programme by construction of community centre/Water

dams/Roads/night shelter,prks etc

4.UCDN:Providing wage employment through urban community development network)

5.STEPUP:skill training for employment promotion amongst urban poor)

6.UPPS:Reservation for SC/ST should be provided in all above programmes

Documentation :HYP agreement, L516, L515, L435/AG15

32

SANDIPANI ONE PAGE MANAGER SERIES ADV- GOVT SPON. SCHEMES /03 30.11.2013

SCHEME FOR LIBERATION AND REHABILITATION OF SCAVENGERS (SLRS)

1. Introduction

1. The Ministry of Social Justice and Empowerment (MSJ&E) has considered the introduction of a

new Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) for rehabilitation

of all the remaining scavengers and their dependents by March 2009.

1.1 Objective of the Scheme

a) Objective of the scheme is to assist the remaining scavengers for rehabilitation, which are yet to

be assisted, in a time bound manner by March 2009.

Eligibility:

Scavengers and their dependents, irrespective of their income, who are yet to be provided

assistance for rehabilitation, under any scheme of Government of India/State Governments will be

eligible for assistance.

Definition of scavenger:

A "Scavenger" means one who is partially or wholly engaged in the obnoxious and inhuman

occupation of manually removing night soil and filth. The dependent of Scavengers is one who is a

member of their family or is dependent on them irrespective of the fact whether they are partially

or wholly engaged in the said occupation. Each individual scavenger and his/her children who are

of 18 years of age and above, who are not employed (other than scavengers) will be identified and

rehabilitated".

2. Salient features:

2.1 The Self Employment Scheme for rehabilitation of Manual Scavengers is applicable to all

branches of the Bank.

2.2. The scheme is being implemented through the apex corporations of the Ministry of Social

Justice and Empowerment. The eligible beneficiaries will be sponsored by the State Channelising

Agencies for availing loans. Self Help Groups ( SHGs) may be involved in implementation of the

scheme, within the overall parameters of the scheme. Since it is a time bound scheme, norms

applicable to SHGs under other schemes will not apply.

2.3 The identified scavengers will be provided training, loan, and subsidy. Branches will provide

loans to candidates sponsored by State Channelising agencies only. After sanction of the loan,

branches will claim amount of capital subsidy from the State Channelising Agencies who in turn

will provide admissible capital subsidy, which will be disbursed to the beneficiary alongwith the

loan amount. After disbursement of loan to the beneficiaries, the concerned branch will claim

interest subsidy from the State Channelising Agency on a quarterly basis.

2.4 On the credit provided under the scheme, branches will charge interest from the beneficiaries

at the rates prescribed under the scheme. National Safai Karmacharis Finance and Development

Corporation (NSKFDC) or any other identified agency at the apex level, will provide interest

subsidy to the branches through its State Chanelising Agencies (SCAs) or any other identified

agency at the State level, for the difference between the interest chargeable by bank and the

interest to be charged from the beneficiaries under the scheme. However, the procedures indicated

for claiming interest and capital subsidy are suggestive in nature. The concerned State

Governments and SLBC have the option of evolving any alternative procedure in the interest of

smoother implementation of the scheme with mutual consent.

33

3. Funding

3.1 The scheme provides for projects costing up to Rs.5.00 lakh. The loan amount will be the

remaining portion of the project cost, after deducting the admissible capital subsidy. No margin

money/ promoter’s contribution is required to be provided under the scheme.

3.2 Both, term loan (upto a maximum cost of Rs.5 lakh) and micro financing (upto a maximum of

Rs.25,000/-) will be admissible under the scheme. Micro financing will also be done through self

help groups (SHGs) and reputed Non Governmental Organisations (NGOs).

3.3 The rate of interest chargeable from the beneficiaries will be as follows:-

(a)For projects upto Rs.25,000/- 5% per annum

(4%perannum for women beneficiaries)

(b)For projects above Rs.25,000/ 6% per annum

3.4 Where the rate of interest chargeable by the bank on loans will be higher than the rates

prescribed in the scheme, interest subsidy to the extent of the difference will be given to the bank

and this will be administered by NSKFDC/ other agencies identified by the Ministry.

4. Repayment:

The period of repayment loan will be three years for projects upto Rs.25,000/- and 5 years for

projects above Rs.25,000/-. The moratorium period to start the repayment of loan will be six

months. The State Channelising Agencies (SCAs) would distribute the funds within a period of

three months to the beneficiaries.

5. Subsidy:

5.1 Credit linked capital subsidy will be provided upfront to the beneficiaries in a scaled manner:

(a)For projects costing upto Rs.25,000 @ 50% of the project cost.

(b)For projects costing more than Rs.25,000/-, @ 25% of the project cost,

with a minimum of Rs.12,500/- and maximum of Rs.20,000/-

5.2 Beneficiaries will be allowed to avail second and subsequent loan from bank if required,

without capital subsidy and interest subsidy and other grants under the scheme.

6. Type of projects:

6.1 The beneficiaries are free to select any viable income generating self employment project.

7 Training:

7.1 Since the scavengers will be rehabilitated in non-traditional professions, they will require

training to acquire new skills and entrepreneurship capabilities. . The average training cost has

been taken as Rs.14,000 per beneficiary, which includes provision for training fee, kits and stipend

to trainees.

FOR DETAILS B.C NO-102/33, 102/120 DATED 26/.05/08 & 22/09/2008

34

SANDIPANI ONE PAGE MANAGER SERIES ADV. - GOVT SPON. SCHEMES /04 30.112013

Prime Minister’s Employment Generation Programme (PMEGP) The Ministry of Micro, Small and Medium Enterprises ,Govt. of India, has launched a new credit linked subsidy

programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in

operation till 31.03.2008 viz., Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for

generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas .PMEGP is a

central sector scheme and administered by the Ministry of MSME. The scheme is being implemented through Khadi and Village

Industries Commission (KVIC). Salient features of the scheme are as under;

Eligibility Conditions

(i) Any individual, above 18 years of age

(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.

(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the

business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

Other Features

a) Assistance under the Scheme is available only for new projects sanctioned specifically under the. PMEGP Existing / old

units are not eligible.

b) The maximum project cost has been fixed up at Rs. 25 lakhs under the manufacturing sector and Rs 10 lakhs in the in the

business/service sector.

c) Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are

not eligible for financing under the Scheme. However business/trading activities in the form of sales outlet permitted

only in NER,LWE affected districts , A&N islands ,provided products sold should not come under negative list Ref

BC 106/92 dt 05.12.2012

d) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated

in the negative list of Village Industries.

e) Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP.

The ‘family’ includes self and spouse.

f) Banks will take their own credit decision based on the viability of each project. No collateral security shall be insisted

upon in line with the guidelines of the RBI for projects involving loan up to Rs 5 lakhs and in respect of projects cleared

by the Task Force. The facility can be extended to loans upto Rs.100 lacs where CGTMSE cover is available.

g) Quantum and Nature of Financial Assistance Levels of funding under PMEGP

Categories of beneficiaries under PMEGP Beneficiary’s Contribution

(of Project Cost)

Rate of Subsidy

Area Urban Rural

General Category 10% 15% 25%

Special(SC/ST/Minority/woman/Ex-service

men/Phy.Handicapped, Hill &Border area

5% 25% 35%

h) The Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of

special category of the beneficiary/institution, and disburse full amount suitably for setting up of the project.

i) The amount of Bank Credit will be ranging between 60-75% of the total project cost after deducting 15-35% of margin

money (subsidy) and owner’s contribution of 10% from beneficiaries belonging to general category and 5% from

beneficiaries belonging to special categories.

j) First installment of the loan will be released to the beneficiary only after completion of EDP training of at least 2 weeks.

k) The Margin Money (subsidy) released will be kept in the name of the Borrower in Term Deposit Receipt three years. No

interest will be paid on the TDR and no interest will be charged on the loan corresponding to the amount of TDR.

Though the margin money (subsidy) will be released by the designated Nodal Branch of the Bank, KVIC/State

DIC is the final authority to either accept the project / claim or reject, based on the parameters of the Scheme.

l) Margin Money (subsidy) will be ‘one time assistance’, from Government. For any enhancement of credit limit or for

expansion/modernization of the project, margin money (subsidy) assistance is not available.

m) Margin Money (subsidy) assistance is available only for new projects sanctioned specifically under the PMEGP.

Existing units are not eligible under the Scheme

n) 100% physical verification of the actual establishment and working status of each of the units, set up under

PMEGP, including those set up through KVIBs and DICs, will be done by KVIC.

PMEGP Online Application Tracking System

The Directorate of Information Technology, Khadi & Village Industries Commission, Mumbai has designed and

developed the web based PMEGP online application tracking to monitor the scheme and also tracking the status of application at

beneficiary level. The system will facilitate to view the application status at any point of time through internet and generate various

reports from time to time by implementing agencies, KVIC central office and Ministry of MSME. The system can track the status

of application right from submission and till adjustment of Govt .Subsidy.Any action of sanction/rejection/return etc is to be entered

in the prtal.

Mandated coverage of social security:As per GOI norms social security targets for SC 15%,STs 8.2% to be achieved under

PMEGP.As per BC 107/116 ,One para will be added under sceme guidelines: (Items/activities banned by GOI or competent

Govt. authority will be treatedunder negative list of PMEGP

35

SANDIPANI ONE PAGE MANAGER SERIES ADV-RETAIL/01 30.11.2013

STAR VEHICLE LOAN SCHEME ELIGIBILITY:

Individuals/Pensioners - 24 times of Monthly Gross emoluments OR 2 times of Gross avg. Annual Income as per last 3 yrs.

ITRs

Others - Two times of avg. annual cash accruals as per last 3 audited B/S & P&L A/c of firm/co.

Farmers - Depending upon his Repayment capacity as is applicable in agricultural loans

Note: Advance can be granted jointly to two individuals combining their entitlement provided they are close relatives and vehicle

is registered in the name of one of the co-borrowers.

Age: Not to exceed 65 years at the time of availing loan (Entry age)

Net Take Home Income: Individuals- 40% of gross income. Others: DSCR min. 1.5

PURPOSE: For purchase of Two / Four Wheeler (incl.jeeps & vans); NEW / SECOND HAND

(Upto 3 Years Old). In case of electronic/battery operated vehicles these must be registered with RTO. Where registration with

RTO is not required, collateral security to be obtained

LIMIT: Max. limits for finance: Individuals (Resident in India):-

For Indian make vehicle: Rs. 25 lakhs, For imported vehicles: Rs. 75 lakhs.

For companies & corporate entities Rs. 100 lakhs (can be a fleet of vehicles)

For non- resident Indians Rs. 25 lakhs

For vehicles run on non conventional energy not requiring registration with RTO – Rs.50,000 for 2 wheelers & Rs.4.00

lakh for 4 wheeler

Note: more than one vehicle can be considered Within the above limits, provided the 1st a/c is in order, charge registered with RTO

& repayments are regular.

Type of Advance: D/L- T/L. Only D/L for 2nd hand vehicles

INTEREST: Rate of Interest as per extant H.O. guidelines from time to time

MARGIN: New Vehicles: Upto Rs.10 lakhs:- No margin on Ex-showroom price excluding comprehensive

insurance/taxes/registration charges (Refer BC No. 107/34 dated 22.05.2013)

>10 lakhs upto Rs. 25 lakhs:- 15% On Road price including comprehensive insurance/taxes/registration charges

>25 lakhs: 25% On Road price including comprehensive insurance/taxes/registration charges

For corporate/firms etc.:25%

2nd hand vehicles - 30% of depreciated Value/ value assessed by Valuer / sale consideration- whichever is lower.

PROCESSING CHARGES:For Individuals: Rs.1000/- One Time for loans upto Rs.25000/-

>25000/- to 25 lakhs one time 1.00% Min. Rs.2,000/- Max. Rs. 10,000/-

>25 lakhs one time flat 15000/-

Waived for: senior citizens, staff members, retired staff, pensioners drawing pension from Bank.

75% of the normal charges for individuals of rural areas availing loans from rural branches only.

For Partnership Firms &Corp. Borrowers: P.P.Charges will be double that of applicable to individuals.

In the case of car financing under Tie-up with Manufactures of Car (presently Honda,

GM Chevrolet,Volkswagan, Nissan, Skoda, Toyota, Mahindra, Mercedes, Ford, Fiat), Maruti Suzuki India Ltd., Hyundai Motors

India Ltd., Tata Motors Ltd. Sharing of applicable processing charges with the authorized dealers (including staff of authorized

dealers) is to be done as per guidelines vide HO Br. Cir. 106/146 dated 24.12.2012

REPAYMENT: New vehicles: Individuals- 4 wheelers- Max. 7 yrs. 2 wheelers-Max.5 yrs.

Corporate / firms- Max. 5 years. For second hand vehicles- Max. 3 years.

SECURITY: (i) Hypothecation of the Vehicle, Charge to be registered with R.T.O., (ii)Comprehensive insurance of the vehicle

with bank clause. (iii)Collateral Sec. is desirable for loans to individuals >25 lacs. Collateral security in respect of loans for vehicles

run on non-conventional energy & not requiring registration with RTO for limits > Rs.1.00 lakh

GUARANTEE: Required for loans > Rs.25 lakh & in respect of loans for vehicles not registered with RTO. Guarantee of Resident

Indian in respect of loans to NRIs

In other cases tangible collateral security of acceptable value can be obtained in lieu of guarantee.

DOCUMENTS REQUIRED FROM CUSTOMERS: -

Photograph; Proof of Income; Proof of Address; Third Party Guarantee; Performa Invoice

DOCUMENTS: -

1. Application-cum-proposal. 2. OD-194 (Guarantee Deed) 3.L-512, 4 .L-516 & L-515

5. Comprehensive Insurance Policy with bank clause

6. Letter addressed to Insurance Company for remitting claim directly to Bank in case of damages

7. Blank Transfer Forms in Blank in duplicate (Form No. 29 & 30)

8. Registration of Bank’s Charge on the vehicle with Regional Transport Authority.

9. Valuation Certificate for second hand vehicle from approved valuer.

10. Registration of charge with ROC in case of finance to companies.

11. A letter of authority by the borrower to debit the loan/ SB a/c with Intt./ Ser. Ch./ Ins. Prem.

12. Where guarantor’s vehicle is taken as collateral security, obtain another CHA-2 with modification

13. Employers undertaking for recovery of installment, OR post-dated cheques towards EMIs.

Care : In terms of BC No. 107/97 dated 28.08.2013, ‘on line’ verification of Rgistration in States where it is available, should

be taken to avoid Frauds etc.

In terms of BC 106/5 dt. 03.04.2012, processing charges can be shared with the dealers for car finance as below:

Other than Rural Branches Rural Branches

1% of loan amount max. Rs.10,000/- per vehicle 0.75 % of loan amount Max. Rs. 7,500/pm per vehicle

If wherever processing charge is to be shared with the dealer as above, concession in processing charge under tie up or under any

special offer is to be proportionately adjusted downwards.

Reference:- BC 106/5 Dt. 03.04.2012 (Master Cir.), BC 106/57 Dt. 30.06.2012, BC 106/79 Dt. 31.08.2012

BC 106/89 Dt. 12.09.2012, BC 106/146 Dt. 24.12.2012

Festival Bonanza vide BC No. 107/28 dated 07.10.2012 for two wheelers

Festival Officer vide BC No. 107/134 dated 15.10.2013 allowing concession in ROI and PP charges.

36

SANDIPANI ONE PAGE MANAGER SERIES ADV-RETAIL /02 30.11.2013

STAR EDUCATIONAL LOAN SCHEME 1.Eligible Courses : (indicative list)

a) Studies in India :

Graduation courses : BA, B.Com., B.Sc., etc. (Degrees awarded by Universities)

Post Graduation courses: Masters & Ph.D. (awarded by Universities)

Professional courses : (approved by AICTE/AIBMS/ICMR/IMC and/or affiliated to any University approved by

UGC/State Govt., Ministry of HRD, Govt. of India) : Engineering, Medical, Agriculture, Veterinary, Law, Dental,

Management, Computer, etc.

Computer certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to

university.

Courses like ICWA, CA, CFA, etc. (only exam fees to the respective Institutes, in absence of regular course

curriculum).

Courses conducted by National Institutes, like IIMs, IITs, IISc, XLRI, NIFT, NID, and other Institutes set up by

Central/State Govt.

Courses offered in India by reputed foreign universities with prior approval of Head Office.

Evening/Part-time courses of approved institutes.

Other courses leading to diploma/degree, etc. conducted by colleges/universities approved by

UGC/Govt./AICTE/AIBMS/ ICMR, IMC, etc.

Courses offered by National Institutes and other reputed private institutions with prior approval of Head Office.

(Authority for approval: GM (NBG)/HO

Regular Degree/Diploma courses like Aeronautical, Pilot training, shipping etc. approved by Director General of

Civil Aviation/Shipping, if the course in pursued in India.

Additional list of specific Institute approval as per annexure – I(A) of BC No. __________.

Matter of ‘Deemed Universities’ is subjudice with Supreme Court. Hon’ble court has directed to maintain status quo.

Hence, presently there are no restrictions on financing courses of reputed Deemed universities.

Vocational/Skill development study off campus courses (Distance Education) & On site partnership programmes are

not eligible. Diploma/Certificate/Vocational courses – both in India & abroad are outside the purview of Education

loan scheme

b)Studies abroad: (Institutes/Universities upto world ranking of 3000 provided in website

www.webometrics.into/about.html only to be covered)

Graduation : For job oriented professional/technical courses offered by reputed/State funded universities.

Post Graduation : MCA, MBA, MS, etc. from State funded Universities.

Courses conducted by CIMA – London, CPA in USA, etc.

Degree/Diploma courses like Aeronautical, Pilot training, shipping etc. provided they are recognized by competent

regulatory bodies in India/abroad for the purpose of employment.

1. Student’s Eligibility:

Should be an Indian National and the student/Parents should be KYC compliant.

Should have secured admission for higher education courses in recognized institutions in India or Abroad after

completion of HSC (10+2 OR equivalent).

The student should not have outstanding education loan from any other Institution.

No Dues Certificate need not be insisted upon as a pre-condition for considering educational loan. However,

branches may obtain a declaration/an affidavit confirming that no loans are availed from other banks/financial

institutions.

Submission of PAN Card should not be made a pre-condition for sanction/disbursement of Education Loan to

student(BC No.107/5 dated 04.04.2013)

Cut of marks in qualifying examination : For General category – 60% & For SC/ST/OBC – 50%

Sanctioning authority to satisfy about employment generation after course & consequent ability to repay.

Management quota/seats are per se outside the purview of Education loan scheme. However, it may be considered

subject to:- i) Cut off marks for General category – 60% & for SC/ST/OBC – 50% ii) Min. margin of 25% iii)

Quantum of loan – Fee structure a approved by State Govt. or Regulatory body iv) Collateral of min. 50% of loan

amount. Sanctioning authority to satisfy that student has financial resources to meet the funding gap, if any.

NRI students – Student should hold Indian passport & meet eligibility requirement. Tangible Collateral security of

100% enforceable in India.

Employment oriented courses after 10th std. offered by approved/recognized college/institution:-

Course Cut of marks Max. loan amount

Teachers training 60% Rs.2.00 lakh

3 yrs. Diploma course in polytechnic 50% Rs.2.00 lakh

Nursing 50% Rs.2.00 lakh

http://www.webometrics.into/about.html

37

2. Parties to the Loan: Who can be joint borrowers

Parents/Guardians of the student. In case of married student, spouse or parents/parents in law. However, in case of

adverse credit history of the above mentioned Jt. Borrowers, Other person acceptable to the bank can be taken as Jt.

Borrower (after taking precaution) & such person should be relative of student & genuinely concerned about his well

being/education.

The loan documents should be executed by both the student (if major) and the parent/guardian as joint-borrowers. In

case of minor student, security documents are to be executed by parent/guardian and upon student attaining majority,

fresh set of documents to be executed by both - parent/guardian and student jointly. An undertaking to be taken from

the parent/guardian to that effect.

3. Expenses considered for loan :

Fee payable to college/school/hostel. *

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments/uniforms. $

Caution deposit/building fund/refundable deposit supported by Institution bills/receipts. @

Travel expenses/passage money for studies abroad.

Purchase of computers/Laptops – essential for completion of the course. $

Any other exp. required to complete the course, like study tours, project work, thesis, etc. $

Life Insurance Premium for life cover of student/co-borrower for total tenure of loan.

* Whenever hostel accommodation of the institution/college is not available, branches may consider need based loan

for expenses on lodging/boarding arrangement made by the student.

* Fee payable to the College/Institute shall be as per the brochure/demand letter from the Institutions. Upward

revision of the College fees/Tuition fees, etc. needs to be considered, from time to time, with review of the account,

subject to compliance of other terms under items max. Quantum of loan, top up loan & margin.

@ Total not to exceed 10% of total tuition fees for the entire course.

$ Total not to exceed 20% of total tuition fees for the entire course. Reimbursement of fee is permissible if

sanctioning authority is satisfied about it after verifying bills/receipts.

5. Quantum of finance : Need-based finance subject to earning potential of the student after completion of course and

loan to be considered on the basis of individual student and not on family as a unit for all purposes.

Studies in India – Maximum Rs.10.00 lacs. Studies abroad - Maximum Rs.20.00 lacs.

6. Margin: Loan Upto Rs.4 lakh : Nil for both study in India & abroad

Above Rs.4 lakh : Studies in India : 5%

Studies Abroad : 15%

Scholarship/assistantship to be included in margin & margin needs to be brought-in on each disbursement.

7. Security:

Upto Rs. 4 lacs : No security. Parent (s)/ or Co-borrower as Jt. Borrower

Above Rs.4 lacs & upto Rs.7.50 lacs : Security in the form of a suitable 3rd party guarantee

Above Rs.7.50 lacs : Tangible Collateral security of suitable value in addition

to assignment of future income of the student for payment

of installments and co-obligation of parents/guardian as

co-borrowers.

Notes :

(i) The security can be in the form of land/building/Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP,

and LIC Policy, gold, shares/debentures, bank deposit in the name of student/parent / guardian or any other third party

with suitable margin.

(ii) Wherever the land/building is already mortgaged, the unencumbered portion can be taken as security on 2nd

charge basis provided it covers the required loan amount.

(iii) In case the loan is given for purchase of computer, the same to be hypothecated to the Bank.

(iv) In case of Educational Loans to the kin of staff members, no collateral security is required irrespective of limit for

loans within the scheme norms. The parent/staff member should join as co-borrower. His/her P.F. Nominee should

also guarantee the advance for loans above Rs.4.00 lacs and appropriate documents obtained from employees/P.F.

Nominee for recovery of dues from Terminal Benefits.(HOBC 99/203 Dt. 20.03.2006).

At the time of retirement of staff members who have taken education loan for their wards, the account should be

reviewed at appropriate level without insisting for closure of the a/c. and continued on terms as applicable to Public.

1. Rate of Interest: As per extant HO guidelines from time to time.

Concession: 0.5% for engineering/medical/management studies and for girl students additionally 0.50 % upto

Rs.50000/- and 1 % for loan above Rs.50000/-, however maximum ROI concession for girl student is restricted to 1%

subject to min. Base Rate (BR).

In addition to above 1% interest concession may be provided for loanees, if the interest is serviced during the study

/moratorium period. The interest concession for servicing of interest during moratorium is available during

study/moratorium period. In any case total ROI concession not to exceed 2% subject to min. BR. This interest refund

on account concession to be effected on quarterly basis. (Normal interest applicable from the date of commencement

of repayment).

38

Simple interest to be charged during the repayment holiday/ moratorium period.

The accrued interest during the repayment holiday period to be added to the principal and repayment in equated

monthly installments (EMIs) be fixed at the end of moratorium period.

Penal interest @ 2% to be charged for loans above Rs. 4 lakhs for the overdue amount and Overdue period.

Time Limit for disposal of Educational Loan Application:-

Studies in India Period within which to be disposed of

Upto Rs. 4.00 lakh One week

Above Rs. 4.00 lakh upto Rs. 7.50 lakh Two weeks

Above Rs.7.50 lakh Four weeks

Studies abroad Four Weeks

Interest Subsidy Scheme: Students belonging to Economically Weaker Sections (EWS) with family annual income is

less than Rs.4.50 lacs from Scheduled Banks under the IBA formulated education loan scheme.

Family Income: From all sources being less than Rs.4.50 lacs annually. List of Authorities who can issue Income

Certificate in various states and Union Territories is given in Cir. Letter No. 2011-12-156 dated 01.12.2011.

This scheme is applicable only for Technical education and Professional streams from recognized Institutions in India

(any course financed as a deviation from the scheme is not eligible for the subsidy). See List vide Cir. Letter No:

2010-11/109 dated 29.07.2010

Implementation: Academic year 2009.10, starting w.e.f 01.04.2009. Interest payable for the period of moratorium

only. Implemented only where the state government has communicated the Certification authority for issuing Income

Certificate under the scheme. Claims can be made only after the student submits the Income Certificate and enters into

an agreement by proper documentation duly signed by the student and the Parents/Guardian. Branches to calculate the

interest for academic year 2009-10 i.e. disbursement year 2009-10, at the applicable rate less 1% interest concession

only for the amount disbursed during the year 2009-10. Canara Bank is the Nodal Bank.

Detailed Procedure/Claim format/Other Instructions are available in Cir. Letter No.2010-11/210 dt.08.12.2010

9. Appraisal/Sanction/Disbursement:

No application for educational loan received should be rejected without the concurrence of the next higher authority -

minimum AGM at Z.O. The loan to be disbursed in stages as per the requirement/demand directly to the

Institutions/Vendors of books/equipments/ instruments to the extent possible.

To facilitate proper monitoring of educational loan, the students should be requested to approach the nearest branch

of a bank from their residence for seeking educational loan.

10. Repayment:

Repayment holiday/Moratorium: Course period + 1 year or 6 months after getting job, whichever is earlier.

Max. Upto 7 years for loan amount upto Rs.7.50 lakh & upto 10 years for loan amount > Rs.7.50 lakh. If the student is

not able to complete the course within the scheduled time, extension of time for completion of course may be

permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his

control,sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete

the course.In cases where the student continues further higher studies with or without Bank loan, repayment of

existing loan may be appropriately rescheduled, after due verification.

12. Processing charges: No processing for loans study in India. For study abroad – Rs.1,000/- to be refunded once the

actual loan is availed. One time charges for any deviation from the scheme norms including approval of course outside

scheme: Upto Rs. 4 lac- Rs. 500/-, > Rs.4.00 lakh & upto Rs. 7.5 lac- Rs.1,500/-, > Rs.7.50 lakh & upto Rs. 20 lac-

Rs. 3,000/- . No charges for staff members.

14. Existing ‘SHIKSHA SURAKSHA’ has been withdrawn w.e.f. 31.07.2013 with new plan called ‘SHIKSHA

SURAKSHA 2’ w.e.f. 05.08.2013 – main feature (premium reduced from 25% to 40% over the old Plan) in tie-up

with SUD Life Insurance Co. (Refer Circular Letter No. 2013-14/123 dated 29.08.2013).

(Guidelines for loan disbursement please refer to BC No. 107/34 dated 22.05.2013.)

39

BOI STAR VIDYA LOAN SCHEME

Target group of students Financing education loans to bright students of premier educational institutions in India –

Engineering/Medical/Law/Management.Indian nationals securing admission through

entrance test/selection process

Quantum of loan For institutions in list A – max. Rs.20.00 lacs for 8 IIMs and ISB, Hyderabad

For institutions in list B - max. Rs.10.00 lacs

For institutions in list C- max. Rs. 7.50 lacs

Course Covered Regular full time Degree/Diploma courses, Full time Executive management courses.

(Certificate/Part time courses are not permitted)

Security No collateral security. Suitable Third Party Guarantee for loans above Rs.4.00 lacs and

Co-obligation of parents/guaradians as co-borrower in addition to assignment of future

income

Margin Upto Rs.4.00 lakh – Nil. >Rs.4.00 lakh – 5%

Repayment Loan upto Rs.7.50 lacs – 10 years

Loan over Rs.7.50 lacs – 15 years

Other term/conditions All other terms of Star Education Loan Scheme shall be applicable

Reference: Br. Cir. No. 105/63 dated 02.07.2011

STAR EDUCATIONAL LOAN FOR VOCATIONAL STUDIES SCHEME

Purpose/Objective of

the scheme

To extend education loan for vocational courses offered by ITIs/ITCs/Polytechnics

& such other technical institutions/bodies in tune with GOI initiative in skill

development & consequent need to provide institutional funding to students

undergoing such skill development courses in recognized institutions

Eligible/Target

customers Indian national having secured admission for recognized course run by

Govt./Organization supported by Skill Development Corpn. & leading to

Certificate/Degree/Diploma issued by Govt. organization or recognized by Govt.

Eligible courses Courses of duration 2 months to 3 years run or supported by Govt or run by

organization supported by Govt.

Eligible max.

quantum of loan Need based finance with max. limits as under:-

Course duration upto 3 months – Rs. 20,000

Course duration of 3 to 6 months – Rs. 50,000

Course duration of 6 to 1 year – Rs. 75,000

Course duration > 1 year – Rs.1,50,000

In case of courses above 1 year, higher limit by 50% of above may be considered on

merit by ED & above

Eligible expenses

considered for

financing

Tuition/Course fees

Examination/Library/Laboratory fees

Caution Deposits

Purchase of Books/Equipments/Instruments

Any other reasonable expense found necessary for completion of course

Being localized courses, expenses for lodging & boarding may not be necessary.

However, such expenses may be considered on merit, wherever found necessary

Margin Nil

Rate of Interest (ROI) Same as that is applicable under Normal Educational Loan Scheme for loans upto

Rs.7.50 lakh

Present Processing

Charges Nil

Moratorium period &

Repayment Moratorium period:-

For courses of duration upto 1 year – Course period + 6 months

For courses of duration > 1 year – Course period + 12 months

Repayment:- (After initial moratorium period)

Loans upto Rs.50,000 - upto 2 years

Loans of Rs.50,000/- to Rs.1.00 lakh – 2 to 5 years

Loans > Rs.1.00 lakh – 3 to 7 years

Security No Collateral security or Third party guarantee. However, Parent to execute security

documents along with student as joint borrower

Other terms &

conditions All other terms & conditions as applicable to Bank’s Normal Educational Loan

Scheme.

Reference: BC 106/60 Dt. 07.07.2012, BC 106/91 Dt. 13.09.2012

40

SANDIPANI ONE PAGE MANAGER SERIES ADV-RETAIL /03 30.11.2013

STAR VIDYA CARD SCHEME

The Card is exclusively meant for students of age15 years and above .This is essentially a debit card which can be

used through Banks ATM and also through ATM of other Banks. Issuance of Star Vidya Card will require entering

into an arrangement with Educational Institutions, assessing their needs vis-à-vis the number of students to whom the

card is to be issued, their complete details and the locations, within the educational premises, where the institutions are

desirous of installing EDC terminals. The card will be PIN based for usage on ATMs and signature based for usage on

EDC Terminals

ELIGIBILITY-The card can be issued to students of eligible institutions (who have entered into an agreement with

the Bank) and having an account with any of our networked branches .The card so issued will be customized for

individual educational institution and in addition to students name, admission /roll number, telephone number,

photograph, the card will also bear the logo, name ,telephone number of the institution

VALIDITY-The card will have a validity of 6 years from the date of issuance ,so that the student can use the card

throughout his/her studies in that particular institution.

CHARGES.

Transactions on our own ATMs are free of charges. Charges for usage on ATMs of other Banks as per RBI / Bank’s

guidelines from time to time.

FACILITIES- Students can draw cash upto Rs.1,000/- per day from the ATMs and transact upto Rs.10,000/- per day

on EDC terminals installed in campus of the educational institution, subject to availability of sufficient balance in their

account

BENEFITS TO THE EDUCATIONAL INSTITUTION I) Physical handling of cash with attendant risks like

pilferage, loss, etc. avoided. II) Daily accounting of cash physically, done away with as a statement of amount

collected under each EDC Terminal is available at the end of the day with individual entry details III) Customized

MIS to the institution viz. Usage at different EDC Terminals in a day / month by a student, daily information of

amounts collected at various EDC Terminals at the end of the day etc. are available

BENEFITS TO STUDENTS

I) The card will serve as an Institutional Identity Card. II) Need not carry cash and wait in long queues for

remitting fees etc. in educational institution campus. III) Details / record of spending in the campus is readily

reflected in their account with the bank.

II) THE COST OF THE PROJECT TO BE CHARGED TO THE EDUCATIONAL INSTITUTION--I)-

cost of card @ Rs.25/- each .ii)Rent of each EDC Terminal Rs.550/- per month and commission @ 1% on the

volume of business captured by the terminal. iii) Program and Data Management cost, payable to Service

Provider, Rs.15/- per card per month. The above charges have to be recovered by the concerned branch, while

cost of card and EDC commission shall accrue to the Bank, EDC rent and Programme management cost is to

be paid to Service Provider.

BENEFITS TO OUR BANK ON ISSUANCE OF STAR VIDYA CARDS ---

i) Card issuance and other charges are recovered.

ii) Since the educational institution and the students have necessarily to open their accounts with our networked

branches it will boost our low cost deposits.

iii) Our association with educational institutions will open new vistas amidst management, faculty, staff and

students of the educational institutions and the parents of these students for cross selling our various products.

The student data and their account data with our branch, along with the physical photograph and signature of the

student should be forwarded to the Service Provider M/s YCS, Chennai for issuing of Star Vidya Card.

For further details refer HOBC No 100/3 dated 08.04.2006

41

STAR MONEY CARD

Star Money Card is a photo Identity Credit Card issued to students availing Educational Loan with limit above

Rs.4.00 lacs to meet their short term requirements such as purchase of books, note books, stationery, booking of train

tickets, hostel expenses, etc., Borrowers of both existing and new education loan are eligible. In the case of existing

education Loan borrowers, the loan account should be a standard asset. Main card is to be issued to the co-borrower

and add-on card to the student (whether minor or major). In case the co-borrower does not need the card, the card can

be issued to the student in his name but the charge account should be of co-borrower. All KYC norms are to be

followed. Pan card or Form No. 61 ( for Agri. Co-borrower ) of co-borrower and not of student to be obtained.

Validity : The card is initially valid for 3 yrs. and can be renewed thereafter subject to satisfactory conduct of the

charge account. Cash Withdrawal : 50 % of spending limit – Max. Rs.5000/- per card. At the time of processing of

education loan application the matter regarding requirement of Star Money Card is to be discussed with the co-

borrower and the student. Sanction of credit card shall be automatic built in facility with Education Loan. Sanction

Limit shall also include the spending limit proposed to the co-borrower and the student. Document shall be obtained

fully for the overall sanction limit. A copy of India Card application forwarded to HO/Card Products Dept for issue of

STAR Money Card shall be kept with educational loan documents. In case debit to charge account is not cleared

within 30 days, the debit balance on account card is to be cleared by way of transfer of amount equivalent to credit

card debit plus actual interest for normal TOD (not SB Credit card TOD) from education loan account of the borrower.

Card has to be hot listed if the debit in education loan is not cleared within 45 days.

Spending Limit for the Card:

Educational Loan

Limit Student/coborrower Max. Spending Limit

Above Rs. 4 lacs and

upto Rs. 7.50 lacs

Co borrower Rs. 5000

Rs. 5000 Total Rs. 10,000 Student (Add on Card)

Above Rs. 4 lacs and

upto Rs. 7.50 lacs

Coborrower not requiring card, student

to be issued main card

Rs. 5000

Above Rs. 7.50 lacs Coborrower Rs. 15,000

Rs. 10,000 Total Rs. 25,000 Student (Add on Card)

Above Rs. 7.50 lacs Coborrower not requiring card, student

to be issued main card

Rs. 10,000

Above Rs. 10 lacs (for Co borrower Gold card*

studies abroad) Student Borrower Gold card – International*

*Automatic sanction is not envisaged (HO. Cir. 103/158 dated 02.01.2010).

42

SANDIPANI ONE PAGE MANAGER - SERIES ADV-RETAIL/04 30. 11.2013

STAR HOME LOAN SCHEME ELIGIBILITY:

Customers who are in permanent salaried employment / Professionals/ Self Employed with Regular Income/Group of

individuals/ Prop. & Partnership firms/Corporates/HUF/NRI-PIO/Staff Members.

Credit Rating to be arrived at as per extant guidelines. Presently we have sheet with min. 20 marks criterion.

Ordinarily for salaried persons – upto the age of retirement & for others – 65 years. The maximum age mentioned

above is not the entry age but the age by which entire loan is to be repaid. In case of joint account cases, age of

senior proponent is to be reckoned for deciding outer age limit for repayment. Deviations by SZLCC & Above.

PURPOSE: (i) To Purchase/Construct House/Flat on ownership basis.

(ii) To Repair / Renovate / Extend existing house/flat.

(iv) Composite loan for purchase of plot and construction of house thereon within a max. period 18 months (in

exceptional cases 24 months to be permitted by ZM). No loan only for the purchase of plot of land.

For 2nd or subsequent sale, the flat/house should have future life of at least 1.5 times of stipulated repayment

period. Future life to be certified by Bank’s panel valuer

LIMIT / QUANTUM: - (Finance up to Rs. 25.00 lakhs to be covered under PRIORITY SECTOR)

For construction / Purchase of House/ Flat (Amt.in Rs. Lakh) Maximum

At Mumbai, Delhi, Kolkata, Chennai. 500.00

At other places 300.00

For Repairs/ Renovation/ Extension/addition of house/flat 50.00

For Purchase of Plot under Composite loan 100.00

For furnishing of house/flat (15% of loan amount) Max. 5.00 (This is to be sanctioned as a

separate personal loan with ROI as applicable to Home loan with max. repayment period of 10 years with security of

extension of EQM/Mortgage).

For payment of insurance premium on the life of the borrower without any ceiling and to be considered over and above

the normal project cost and normal eligible quantum of finance.

Salaried individuals -72 times of Gross Monthly Salary OR 6 times of gross annual income based on ITRs.

Self employed/professionals/individuals engaged in trade/commerce/business* -6 times of Gross Annual Income based on ITRs.

Prop. / Partner firms/ Corporates/ HUF* - 6 times of Cash Accruals (PAT + Depreciation) as per BS & P&L A/cs

*Adding back the depreciation to net income, please refer BC No. 107/105 dated 12.09.2013 for details.

Farmers/Agriculturists – Where ITR is not filed/not required to be filed, assessment of income based on net income from farm,

other agricultural & allied activities & depending upon repayment capacity of the proponent can be assessed by the branch.

Net take home Pay/income:- (Net of EMI of the proposed loan)

For Gross monthly income upto Rs.1.00 lakh – 40% of Gross monthly income

For gross monthly income > Rs.1 lakh & upto Rs.5 lakh – 30% of gross salary/income

For gross monthly income > Rs.5 lakh – 25% of gross salary/income

In case of firms/ corporate- DSCR min. 1.5

Deviations by SZLCC & Above

Loan for 2nd House:-2nd Home loan can be considered at the level of Zonal Manager of all zones provided (i) second house to be

located at a different place from that of the existing house and/or (ii) to meet the growing needs of the family to accommodate aged

parents / educating children or (iii) first housing loan is repaid before availing the second home loan.

MARGIN:

RATE OF INTEREST: As per extant HO guidelines from time to time. ROI is linked to Base Rate (BR) on floating basis. Our

Bank does not offer Home loans on fixed rate interest basis. Penal Interest: On the overdue amount /defaulted installments @

2% per annum.(HOBC 101/149 of 5.11.07)

Interest subvention:-

In terms of Br. Cir. Letter No. 2011-12/106 dated 22.09.2011, interest subvention @ 1% is available on eligible Home loans upto

Rs.10 lakh (with unit cost not exceeding Rs.20 lakh) for loans sanctioned and disbursed during the period 1.10.2009 to 31.03.2011.

The criterion has since revised to Home loan amount upto Rs.15.00 lakh (with unit cost not exceeding Rs. 25 lakh) & the scheme

has been extended for the F.Y. 2012-13

REPAYMENT: Max. Repayment period as under:-

For New construction/New purchase from builder 30 years including moratorium period

2nd purchase of house/flat Max. 25 years with no marotorium

Repairs/Renovation/Addition/Alteration 10 years including moratorium of 6 months

Repayment period for service persons as well as others upto the age of 70 years. In any case of salaried person, sanctioning

authority to be satisfied about the post-retirement repayment capacity of the applicant and should be adequately brought out in

the proposal (Authority for deviation in age is SZLCC and above).

DELEGATION: As per extant HO guidelines from time to time.

REIMBURSEMENT : Wherever reimbursement is considered, the borrowers’ margin should not be less than 25% of pure cost of

the house/flat.

CARE : Guidelines for loan disbursement refer to BC No. 107/34 dated 22.05.2013.

PROCESSING FEES: For Individuals:- (ONE TIME)

All Loans - 0.25% of loan Min.1, 000/- & max. 20,000/- (inclusive of Service Tax –S.T.) For individual borrowers from rural areas from rural branches- 75% of normal charges

For Partnership Firms & Corporate Borrowers:- PPC will be double of that applicable to individuals.

Irrespective of quantum of

loan

Margin for 1st house Margin for 2nd/ subsequent house

Upto Rs.20 lacs 15%

>20 upto 75 lacs 20%

>75 lacs 25%

25%

Margin to be calculated on the pure cost price of the flat/house excluding stamp duty, registration

charges etc.

43

Documentation charges: One time Rs.1,000/-

Charges for deviations from scheme norms: Rs.5,000 per deviation

PREPAYMENT CHARGES – No prepayment charges if the a/c is closed prematurely out of borrower’s own sources. No

prepayment charges including take over by other Bank/F.I. for home loans under floating rate option. However, for loans under

fixed rate option, for take over by other Bank/F.I., prepayment charges @ 0.65% p.a. on outstanding loan amount for

remaining maturity of loan subject to max. 2.25% of outstanding loan amount are applicable. Conversion charges: Conversion of fixed loan to floating or vice-versa is allowed subject to payment of certain charges – Fixed to

Floating 0.25% p.a. on O/S; Floating to Fixed 0.40% p.a. on O/S balance, Max. 2.10%

No charges for issuing in principle sanction letter.

SECURITY: EQM or Legal mortgage of the house/flat financed. Third Party Guarantee not to be insisted upon where valid &

enforceable Mortgage is available immediately before or at the time of disbursement. Also Third party guarantee is not required

where property to be financed is funded & mortgaged with our Bank under project finance to the Builder & financing Branch’s

charge is duly noted with the branch which has financed the project.

DOCUMENTS REQUIRED FROM CUSTOMER: - Loan Application along with CBD-23 of Borrowers & Guarantors, Photo

of Borower/Guarantor, Title Deeds of Plot/Flat/House, Estimate of construction cost, Sale Agreement with Builders/Seller,

Approved Map, Location Map, Status Report along with Statement of operative bank a/c for last 6 months duly authenticated by

the bank (in case of new customer-borrower), Income Tax Returns, Salary Slips, FORM 16.

Accident Insurance cover for Home loan borrowers:-

In terms of HO. Cir.letter No. 2011-12/231 dt.13.3.2012, Bank has taken a Group policy No. 261500/42/11/8200002371 dated

01.03.2012 to cover the risk under Personal Accident (Death & permanent disability) for all our home loan borrowers at bank’s

cost. The free cover is available to all eligible home loan borrowers except the loan accounts opened under scheme code LA 752

for whom separate life insurance cover is available. Branches to submit claims directly to National Insurance Co. Ltd. (NICL) at

Mumbai office. This is USP of the scheme which saves family of the home loan borrower in case of his death or permanent

disability due to accident.

DOCUMENTS: -

1. Term Loan Agreement L-513(revised). 2. L-515 3. Bearer letter(s)

4. Affidavit cum Undertaking L-517 (H.O. Br. Cir. 100/159 of 08.01.2007)

5. Letter of guarantee duly signed by the guarantor/s( OD-194 ).

6. Original Title Deed / Share Certificate. 7. Search / Title Investigation report from an approved advocate for 30 years.

8. Extract of record of rights and plan specification of property as approved by local authority (Copy of Approved Plan).

9. Estimate of Construction / Valuation Report from approved Architect / Valuer

10. For salaried persons, authority letter to employer, for deduction of install. from his/her salary. or post dated cheques.

11. In case of self-employed persons, an undertaking to deposit with the bank 24 post dated cheques every two years,

12.A letter from the builder/promoter/vendor that all advances and dues of similar nature on the property have been paid, necessary

permission from the concerned authorities for developing the property have been obtained.

13. Insurance policy for the cost of house/ flat above plinth level duly endorsed in favour of the bank.

14. Equitable Mortgage of the property by deposit of title deeds and recording of oral assent / Legal Mortgage.

15. Lette4r of authority from borrower authorizing bank to pay insurance premium on Life policy & asset policy as also recovery of

installment & interest to the debit of borrower’s a/c.

16. Copy of Sanction conveying letter duly acknowledged by the borrowers/guarantors.

Delinked from Group concept:- Home loans upto Rs.500 lakh are delinked from group concept.

Compliance with guidelines about due diligence/Title opinion cum non-encumbrance report/valuation report of the

property etc. to be ensured as enumerated in master BC.

CIBIL Report: - Master BC guidelines to be adhered to.

Home loan for 2nd House can be considered even when existing Home loan account is continuing if the proponent is eligible for

proposed Home loan, the existing Home loan account is of standard category & the proponent has adequate repayment capacity to

meet repayment obligations for both the loans. Delegation: RBC. Delegation of SZLCC & Above for proposals beyond delegation

of RBC & proposals of branches not attached to RBCs. Home loan for 2nd house can be considered by normal delegated

authority provided no Home loan is existing on the date of sanction of loan for 2nd house.

Home loan for 3rd & subsequent house/flat:- Can be considered to eligible applicants, singly or jointly by ZLCC & Above.

However, applicants should not have more than 2 Home loan accounts (singly or jointly) at the time of sanction & both the

accounts should be of standard category. The above condition is not applicable where the name of a person is added as joint

borrower for family reasons but his income is not reckoned for calculation of eligible quantum of loan or repayment is not paid out

of his income.

RESTRUCTURING of Star Home Loan Accounts

Bank may provide maximum period for repayment of Restructured Home loan as under :-

Original repayment period Total repayment period for restructured accounts

Upto 5 years Upto 10 years

5 to 10 years Upto 17 years



Maximum repayment period upon restructuring of the loans needs to be revised keeping in view repayment capacity of the

borrower so as to ensure that total Repayment period on restructuring (including expired portion of the repayment) does not exceed

above limits & in any case 25 years (including the moratorium, if any). In any case repayment not to extend beyond the period of

retirement of the borrower or on his reaching 65 years of age, whichever is earlier as provided under the scheme norms.

Rate of Interest on Restructured Home Loans for total repayment period exceeding 20 years (i.e. 240 EMIs) shall be minimum 25

bps higher than the rate applicable for 15 to 20 years.

The appropriate higher bucket ROI will be applicable for the further repayment period of restructured loan. Needless to add that

bank’s usual guidelines of obtaining specific request letter from borrowers & necessary documentation including obtention of

Renewal documents (L 444C/L444D) for higher ROI duly consented by all Borrowers & Guarantors should be complied with.(

HOBC 102/194 Dt. 06.02.2009 ) Reference: Master BC 106/6 Dt. 03.04.2012, BC 106/145 Dt. 24.12.2012

For Festival Offer – concession in ROI and applicable charges refer BC No.107/134 dated 15.10.2013.

44

STAR DIAMOND HOME LOAN SCHEME

(For Home loans > Rs.5.00 crore in specified major cities)

Objective of the

scheme

Star Diamond Home Loan Scheme is an extension of Star Home Loan Scheme

Scheme ceiling of Rs.5.00 crore in metros & Rs.3.00 crore in other places of Star

Home Loan Scheme was restricting financing higher limits to HNIs

Phenomenal growth of HNIs consequent upon economic liberalization

Cost of houses/flats touched astronomical level in metros & major cities

To prevent the business from going to private banks

Opportunity to enter life of rich, influential HNIs & can be partner in their growth

Target customers HNIs, Firms/ Corporates for their Partners/Directors with average annual gross

income of Rs.1.00 crore & above based on audited Balance sheet/ITRs during last

3 years

Quantum of loan: > Rs.5.00 crore (Home loans upto Rs.5.00 crore to be covered

under Bank’s normal Star Home Loan Scheme. This scheme is for loan amount

exceeding Rs.5.00 crore)

Location of House/flat: Metros & major cities – Mumbai/New Delhi & Delhi

NCR/Chennai/Kolkata/Bangalore/Ahmedabad/Hyderabad & Pune

Entry level norms For individuals: As per Home Loan model (Rating sheet with min. 20 marks)

For firms/ corporates: As per applicable SBS/MC/LC model

Net Take Home

Pay/Income Net Take Home pay/Income (Net of EMI) for individuals: min. 25% of Gross

salary/income

For firms/corporates: min. DSCR of 1.5

Margin 20% on the pure value of property, i.e. cost of

construction/acquisition/extension/renovation without stamp duty, registration charges, taxes, service charges etc.

Rate of Interest (ROI) As per Star Home Loan Scheme – Extant ROI in terms of HO guidelines from time

to time

Present Processing

Charges One time Rs.50,000/- (all inclusive) or maximum as per Star Home Loan Scheme

whichever is higher

Delegation As per Individual/group exposure

G.M. (H.O./RBD) & above

Authority for approval of deviations in any of the above major norms – E.D.

Other terms &

conditions All other norms – As per Star Home Loan Scheme


45

SPECIAL STAR HOME LOAN SCHEME

(Scheme code LA-755) ,Where immediate mortgage is not Available) Objective of the

scheme &

coverage

Except Mumbai & Maharashtra, in other parts of India, Agreement for Sale is normally not

registered by payment of full ad-valorem stamp duty. Instead Sale Deed is registered on

completion of the flat. Under existing Star Home Loan Scheme, our branches could not finance

Home loans for want of mortgage at the time of financing. Other Banks were financing resulting in

loss of business to us. Hence, special scheme introduced. This scheme is applicable to the states

(except Maharashtra) where undivided share in the property is not registered.

Separate Scheme code LA-755

Target borrowers All existing customers with satisfactory track record for 3 years

All existing Diamond customers

Term Deposit customers with average deposit of Rs.5.00 lakh during last 3 years

New customers with established source of regular income such as confirmed employees of Central

Govt./State Govt./PSUs, professionals like Doctors, C.A.s with average annual gross income of not

less than Rs.5.00 lakh during last 3 years & after due compliance with KYC norms

All permanent employees of Public/Private sector maintaining their salary accounts with branch.

All BOI Credit card holders with satisfactory track record during last 3 years

HNIs with immovable assets of Rs.20.00 lakh & after due compliance with KYC norms & due

diligence from outside agencies

Only for approved

projects of reputed

builders

Financing in only those projects of reputed builders which are duly approved for financing by

G.M. (NBG). Individual proposals can be sanctioned as per extant delegation guidelines

Projects of only established/reputed builders with undisputed repute & proven track record &

having successfully completed at least 3 projects in the past

Project should be approved by some other Public sector Bank OR reputed Pvt. Sector

Bank/H.D.F.C.

Max. quantum of

loan

For small cities & towns (Tier II & Tier III cities)

Individual flat with min. project cost of Rs.12.00 lakh & min. loan of Rs.8.00 lakh

For metros & major cities

Individual flat with min. project cost of Rs.30.00 lakh & min. loan of over Rs.20.00 lakh

Security

Documentation

Creation of EQM is deferred for 36 months from first disbursement or till completion of the

project/flat OR registration of Sale Deed, whichever is earlier. Till that time following documents

to be obtained

Allotment letter in fovour of borrower from the builder

Unregistered Tripartite Agreement among Builder, Borrower (flat purchaser) & Bank. This is to be

duly vetted by Zone’s Legal Dept.

Unregistered Sale Agreement between Builder & Borrower along with Power of Attorney from

Borrower authorizing bank to pay stamp duty/registration charges to the debit of borrower’s

account & to create mortgage on his behalf. This should also be vetted by Zone’s Legal Dept.

Confirmation from Builder confirming Bank’s charge over the flat financed

Undertaking from builder about non- encumbrance & undertaking not to create charge over the flat

in future without prior approval of the Bank

Suitable undertaking from borrower to create EQM immediately after completion of flat

NOC from other bank in case the project has already been financed by them under project finance

(NOC for partial release of their charge over the flats financed by us)

Status Reports on Builders from their existing bankers

All necessary approvals from Govt. & Municipal authorities should be in place

Margin Min. 25% on the pure value of property, i.e. cost of

construction/acquisition/extension/renovation without stamp duty, registration charges, taxes,

service charges etc.

Other important

conditions

i) Only cases where immediate mortgage is not available to be covered. Such cases not to be

covered under any other special scheme offering special concessions

ii) Search Report from two independent panel Advocates & Valuation Report from two

independent valuers

iii) Strict adherence to Due diligence

iv) Separate record at Z.O. for tracking purpose

v) Compliance with all other guidelines of Star Home Loan scheme

vi) Regular monitoring: Projects under the scheme to be monitored regularly on quarterly basis by

the zone under whose geographical jurisdiction the projects come & should also advise to other

nearby zones who are likely to finance in those projects due to geographical proximity

Rate of Interest

(ROI)

Normal ROI as per normal Star Home Loan Scheme (As per HO guidelines from time to time).

However, ROI @ 1.00% higher than normal rate to be charged from inception of account in case

of borrower’s failure to created mortgage within 36 months of first disbursement. Suitable

undertaking to be obtained from borrower in this regard & to be kept on record

Secured exposure To be treated as secured exposure for delegation, asset classification & other related issues

Delegation As per Individual/group exposure

G.M. (H.O./RBD) & above

Authority for approval of deviations in any of the above major norms – E.D.

Other terms &

conditions

All other norms – As per Star Home Loan Scheme


46

SANDIPANI ONE PAGE MANAGERSERIES ADV-RETAIL/ 05 30.11.2013

STAR LOAN AGAINST PROPERTY Objective To meet the credit needs of trade, commercial activity, other general business/ profession, as also for

their bona fide requirements; educational expenses of family members including near relatives;

repairs/renovation/extension to the residential/commercial property; @ purchase / construct

residential house / flat, purchase of a Plot of land for construction of house/premises for

business/commercial use; Repayment of existing loans availed from other Banks / FI’s conforming to

the extant guidelines regarding “takeover” of account.

Suitable declaration should be obtained from the applicant regarding the purpose; The facility should not be extended for speculative purposes including investing in equities & to the builders / developers / promoters / real estate agents for real estate activities such as purchase of land / construction with an intent to sell or holding real estate stock for sale / re-sale purposes;

@ Advance to be based on mortgage of another property already owned by the proponent.

Other eligible purposes which were part of erstwhile Star Mortgage Loan with specific permission of

the Zonal Manager and above.

Target

customers People engaged in trade, commerce and business, professionals, self-employed, individuals with high

net worth, salaried people, Agriculturists, proprietary firms, Partnership firms, Companies (Pvt. /Public

Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs,

subject to compliance of Bank’s/RBI guidelines. NBFC, Trusts, Partnership firm where HUF is a partner is not eligible for advances under the scheme.

Max age of

proponent For salaried persons – max. 60 years

For non-salaried/self employed – sanctioning authority may relax by 10 years till 70 years

In case of loan/reducible overdraft, age limit is the maximum age at the end of the repayment Period; It

means the entire loan is to be liquidated by the above age.

Deviation in age – beyond limits as above may be permitted by ZLCC and above. Age Limit also apply to properietory concerns. It is not an entry age.

Type of

Advance

DL/TL/OD (Reducible)/OD (Non-Reducible)

Individual – Salaried/Self-employed/professionals/Doctors are not eligible for OD(Non-Reducible).

Max. Quantum

of loan /limit

Quantum of loan based on value of security & repayment capacity of proponent. For salaried

individuals & self employed –professionals – max. Rs.500 lakh (DL/TL) and Rs.200 lac as

Overdraft(Reducible). For Doctor/s (in case of joint accounts all joint accountholders to be doctors)

Max. Overdraft (Reducible) is Rs.500 lac. For others i.e. Proprietorship, partnership firm and

companies – Max. Rs.500 lakh [DL/TL/OD (Reducible & Non-Reducible). For farmers, agriculturists and

dealers in agricultural inputs – max. Rs.10 lakh [DL/TL/OD (Reducible & Non-Reducible)] and can be

extended upto Rs.25 lacs with prior clearance from GM, NBG. (Ref. BC No.107/140 dated 22.10.2013 and

107/155 dated 07.11.2013). Eligible

Amount Salaried persons - 48 times of average net emoluments (take home salary) based on salary slip/Form

16/Income Tax Return OR 4 times of net annual income with other rental income from property etc.

based on last 2/3 F.Y.’s Income Tax returns.

Self employed/Professionals - 4 times of average net annual income of last 2/3 years based on IT

Returns for last 2/3 F.Y.’s.

Traders/Businessmen - 4 times of average cash accruals (Profit after Tax + Depreciation) for last 2/3

years, as per their Balance sheet / P&L Account for last 2/3 F.Y’s.

Farmers - 10 times of anticipated net annual income based on land holdings and cropping pattern. The

income levels may be guided by the Technical Committee for the District deciding on the scale of

finance for crops. Margin on

value of

property

The loan limit will be based on valuation of property i.e. 100% of circle rate/registration value of same or

similar property as on date of valuation/40% of market value/50% of distress value, whichever is lower

(margin will be uniform for salaried persons and others) – Bank’s approved valuer to provide aforesaid

values alongwith purchase date and price of the property under valuation.

*Above is the minimum margin and endeavor should be made to maximize the margin keeping in mind

marketability of the property, occupancy etc.

ADVANCE NOT TO EXCEED CIRCLE RATE OF THE PROPERTY.

Where the advance is based on distress sale value of property (margin to be 50% of distress value and need

for 2nd valuation), the delegated authority under whose powers the limits falls may permit financing based on

distress value of the property (instead of lowest among the above three values, subject to advance not to

exceed circle rate of the property) on case to case basis with an additional valuation report of the property to

be obtained from another panel valuer and the lower distress value between the two valuation report to be

taken as the base.

Authority to permit relaxation in margin – where margin is stipulated at 50% and above :

(a) ZLCC may relax margin upto 10% (i.e. available margin should not be less than 40%)

(b) NBGLCC and HLCC-II can consider additional relaxation of 15% in margin (subject to available

margin should not be less than 25% of distress value)

(c) HLCC-I and above have full powers.

Rating

Exercise

New Web based credit rating model is being introduced for BOI Star Loan against property scheme. In the

meantime, branches to continue with existing instruction on credit rating as under :

Individuals such as salaried people/agriculturist/

persons engaged in trading and business,

professionals, self-employed etc.

The rating exercise to be done as per Annexure II

BC No. 107/121 dated 01.10.2013. The branches

should scrupulously follow the rating exercise and

applicants getting less than 20 marks as per the

rating criteria should not be granted any facility

under the scheme.

Properietorship firm/partnership firms/companies

etc for limits above Rs.10 lac

Credit rating as per SBS Model/MC/LC model

with entry level norms stipulated under respective

ratings. No deviation permitted in this regard.

47

Repayment For Loans - Max. 12 years by way of EMIs (excluding the moratorium period, if any) from the month

subsequent to the month in which final disbursement is made or 6 months from the date of first

disbursement, whichever is earlier. In respect of agriculturists, the repayment should be related to the

generation of income including cropping pattern and other subsidiary activities. However, the total

repayment should be within the period of 144 months. The moratorium is not applicable in case of

agriculturists. In case of agriculturists the repayment should be co-terminus with their income stream.

OD (Reducible) - Interest to be serviced on monthly basis. Drawing Limit to be reduced as per sanction

terms to bring down the balance to zero at the end of repayment period. Total Repayment period of

max. 12 years.

OD (Non-Reducible) - Interest to be serviced on monthly basis, as per sanction terms.

Present Rate of

Interest (ROI) ROI is subject to extant HO guidelines from time to time

0.25% concession in ROI for women beneficiaries

Security EQM/Legal mortgage charge over the property. Mortgage charge to be registered in states where it is

applicable & also registration of charge with CERSAI before disbursement.

Agricultural land should not be accepted as security for loans/advances under this scheme.

Guarantee No specific stipulation under the scheme. May be obtain to strengthen the proposal. Guarantee of the

person (Third party) in whose name property stands is must.

Insurance Property charged to be insured for full value

Present

Processing

Charges

Loan repayable by instalments - One time @ 1% of sanctioned loan amount Min. Rs.10,000/- and

Max. Rs.50,000/-.

OD (Non-Reduciible) - 0.50% of the Sanctioned/Reviewed limit min.Rs.10,000/- and max. Rs.30,

000/- on annual basis.

OD (Reducible) - 0.50% of the Sanctioned limit min.Rs.5,000/- and max. Rs.30, 000/- for 1st year at

the time of original sanction.

0.25% of the Reviewed limit min.Rs.2,500/- and max. Rs.15,000/- for subsequent years.

For Rural Areas –

Processing charges will be 75% that of normal applicable charges in respect of loans availed by

borrowers from rural areas from the Rural branches

EQM Fees Limit upto Rs.10 lakh – Rs.5,000

> Rs.10 lakh & upto Rs.1 crore – Rs.10,000

> Rs.1 crore & upto Rs.2 crore – Rs.20,000

Delegation • For new advances – Scale I/II/III - No Delegation

• Scale IV(at branches/RBC headed by SMS-IV - Rs.50 lac as DL/TL/OD-Reducible

Scale V at Branches & RBC (Scale V) - Rs.75lac as DL/TL/OD-Reducible

Rs.50lac as OD-Non-reducible

SZLCC - Rs.100lac

ZLCC - Rs.200 lac

NBGLCC - Rs.500 lac

With introduction of this scheme, old Star Mortgage Loan Scheme stands discontinued. No fresh financing to be

done under old Star Mortgage Loan Scheme.Existing accounts shall continue.(Reference: BC 106/28 Dt.

07.05.2012, BC 106/147 Dt. 24.12.2012)

OTHER IMPORTANT POINTS :

1. Creation of enforceable mortgage of property before disbursement of loan

2. Registration under CERSAI before disbursement

3. Entry level norms fo Credit Rating to be adhered to and no deviation from entry level norm to

be permitted

4. CPA-1 and CPA-II to be carried out for proposals with limits of Rs.50 lac and above

5. Legal vetting of the documents to be done for proposals with limit of Rs.50 lac and above

before disbursement

6. The quantum of advance to be related to the value of property and repayment capacity of the

proponent

7. Overdraft limit under turnover method include all Working Capital facility/ies presently

enjoyed by the borrower under turnover method.

8. As a norm more than 2 accounts (Borrowers and owner of property to be close relatives as per

Section 6 of Companies Act 1956) should not be considered against same property and

maximum limit not to exceed Rs.500 lac.

9. Authority ofr consideration of deviations (other than Entry level norm) is NBGLCC within

overall ceiling of Rs.500 lac.

Details regarding the Scheme for Loan against property for farmers and dealers of agricultural inputs refer BC

No. 107/13 dated 16.04.2013, 107/140 dated 22.10.2013 and 107/155 dated 07.11.2013.

48


STAR PERSONAL LOAN ELIGIBILITY: -

Salaried Employees, Professionals, Individuals with High Net Worth

Staff Members including Retired Employees of our Bank

Type of advance: D/L, T/L, OD (Reducible), OD (Non-Reducible) [OD (Non-Reducible) max. upto Rs.1.00 lakh to confirmed

permanent employees of Central/State Govts./Reputed corporate/PSUs subject to stipulated conditions]

PURPOSE: - Advance can be by way of D/L; T/L; O/D – Reducible; O/D – Not Reducible up to Rs. 1.00 lakh.

Clean/UnsecuredLoan For Marriage/ Medical/ Educational Expenses/ Any Expenses of Bonafide nature as approved by Bank. Secured Loan - For Repairs/Renovation of House Property/Repayment of Existing Housing Loan For Education of

Self/Spouse/Children for Purchase of Consumer Durables/ Computers/ Professional Equipments

Age: Salaried employees – Not to exceed retirement age (at the end of repayment period)

Professionals & Others – Not to exceed 65 years ((at the end of repayment period)

QUANTUM: -

Unsecured/Clean– For salaried employees -10 times of monthly net emoluments, i.e. Take Home Salary (Max. Rs. 2,00,000/-)

For Professionals/HNIs – 50% of gross annual income as per latest ITR (Max. Rs. 2,00,000/-

(Min. Rs.10,000/- in Metro/Urban)

Secured Loans – For salaried employees -20 times of monthly gross emoluments (Max. Rs. 10,00,000/-)

For Professionals/HNIs – 100% of gross average annual income as per last 3 ITRs (Max. Rs. 10,00,000/-

Net take home income: should not be less than 40% of gross income

MARGIN :

Secured Loans– Suitable Margin

Unsecured Loans – No Specific Margin. However, loan amount not to exceed proposed expenditure/requirement

GUARANTEE

Depending upon the merits of Case.

In Case of Staff Guarantee by PF/Gratuity Nominee is mandatory.

Loans on special terms to group of permanent/confirmed PSU/PSE/Central/State Govt. employees refer to BC 107/123 dated

01.10.2013.

INTEREST - As per extant H.O. guidelines from time to time

Any loan considered for staff members shall be treated as secured loan and the interest to be applied accordingly provided there

is sufficient unencumbered balance in Terminal Benefit payable to the staff. HO. Cir. 103/159 dated 07.01.2010.

Notes: (a) Interest concession in respect of advances to woman beneficiary under: 0.50% p.a. (Ref.Br.Cir.No.99/56 dt. 02.07.05)

continues.

REPAYMENT: - Clean/Unsecured Loans–36 EMI one month after first disbursement. However, sanctioning authority may

consider longer repayment period upto 60 months at it’s discretion

Secured Loans – 60 EMI one month after first disbursement

Overdraft – Limit should be reduced Monthly as per repayment schedule.

OD (Non-Reducible) – Interest to be serviced regularly

In any case, A/c should be closed before retirement of employee/cessation from service

SECURITY:- For secured advances

(i) Hypothecation where available;

(ii) Pledge of Gold/ NSCs/KVPs/IVPs/LIC Policies with adequate surrender value (VOS should be at least equal to loan amount).

In case of Pledge of Demat shares/Units etc., VOS should not be less than 200% of loan amount)

(iii) Equitable / Legal Mortgage of House Property (VOS should not be less than 150% of loan amount). Registration of

mortgage charge in states where it is possible.

PROCESSING CHARGES: - One time 2.00% of loan amt.-Min.1,000/-Maximum Rs. 10,000/- (No Processing charges for

senior citizens, i.e. 60 years & above)

DOCUMENTS REQUIRED FROM CUSTOMER:

In addition to KYC documents, photo, Salary Certificate; I.T. Returns, Guarantors(all documents) if stipulated, Performa

Invoice/estimate in case of secured loans.

DOCUMENTS:

1. Application-cum- Proposal Form & CBD-23 - ( for Guarantors)

2. CHA-1/D.P.Note (additionally in case of D/ L)

3. Bearer Letter

4. Instalment Letter (L–440,in case of Demand Loan) as per nature of advance

5. Deed of Guarantee (OD 194) for Singular/ Joint & several Guarantee, if stipulated.

6. L-516 as per Br. Cir. 97/114

7. L-515

8A. Irrevocable auth.letter addressed to Employer for deduction of install./interest from the salary OR

8B. ECS mandate duly authorized by borrower’s bank in case borrower doesn't have a/c with us.

9. Letter from customer authorizing bank to debit the account with admissible service charges/interest etc.

10. Equitable/Legal Mortgage of the property, wherever stipulated. For Legal Mortgage CHA – 4. Recording the EQM Recital in

Bank’s Books as per draft given in Manual of Instns Vol. – 3 Part-II.

11. Charge on collateral security such as pledge of TDR / NSC etc. (No.10 & 11 Applicable for secured loans only)

NOTE: Borrower may avail two loans, i.e .one for secured & another for clean/unsecured under star personal loan scheme subject

to merit of the case, his repayment capacity & compliance with the scheme norms/terms of sanction.

Reference: BC 106/3 Dt. 03.04.2012 (Master cir.)

For Special Scheme of Personal Loan to a group of permanent/confirmed employee of PSU/PSE/Central/State

Governments refer to BC No. 107/123 dated 01.10.2013

49


STAR PENSIONER LOAN Target customers(Eligibility):

1. Regular Pensioner

2. Family Pensioners drawing regular monthly pension through the branch

3. Retired employees (other than dismissed/compulsorily retired) of our Bank drawing pension from

the Bank.

4. Pensioners who are getting pension through treasury/Defence Pension Disbursing Office (DPDO)

directly to the credit of their Savings Bank Account with our branches are also eligible subject to

conditions :

a. The Pensioners copy of Original PPO to be lodged with the Branch.

b. Duplicate/Triplicate of the stamped undertaking as per Annexure II of the Master Circular on

Pensioner Loan Scheme furnished to the Bank to be submitted to the Treasury/DPDO and

acknowledged copy to be kept on records. TYPE OF ADVANCE: - Advance can be by way of D/L; T/L; O/D (Reducible)

PURPOSE:

Clean/Unsecured Loan –

For Marriage Expenses of son /daughter or near relatives dependent on the applicant.

For Medical Expenses of son /daughter or near relatives dependent on the applicant

For Education of Self/ Spouse/ Children/near relatives

Repairs/renovation/extension of existing house/ flat (where EQ. Mortgage can not be created of same

property and no finance against this property from any Bank/F.I./NBFC etc.).

Any other personal expenses of bonafide nature as approved by the Bank.

Secured Loan-

For Repayment of existing housing loan from other Banks/FIs etc.

For Purchase of Consumer Durables/ Computers/ Professional Equipments

QUANTUM: -

Unsecured/Clean/Secured –

15 Months net Pension (Gross Income Less Income Tax and EMI of other loans, if any) subject to

Maximum as under : Regular Pensioner/Family Pensioner where PPO is held at the Branch Rs.5,00,000.00

Pensioners who are getting pension through Treasury/Defence Pension Disbursing Office (DPDO) directly

to the credit of their Savings Bank Account with our Branch Rs.3, 00,000.00

Family Pensioners who are getting Pension through Treasury/Defence Pension Disbursing Office (DPDO)

Rs.1,50,000.00.

(In case of family pensioners the loan tenure should not exceed the age of ceasing/stopping of pension as

per PPO)

AGE:

For Loan over Rs.1 lac age at the end of repayment period not to exceed 75 years.

(Deviation in age as well as deviation in quantum of loan to the extent of 100% may be permitted by

SZLCC and above in case of availability of liquid collateral security equivalent to 100% of the loan amount

OR mortgage of property equivalent to 150% of the loan amount, subject to repayment capacity and take

home pay norms (For example : Loan upto Rs.10 lac can be sanctioned to a regular pensioner, where PPO

is held by the Branch providd he offers 100% liquid collateral security or mortgage property having market

value equivalent to 150% of the loan amount).

MARGIN : Secured Loans– Suitable Margin; Clean/Unsecured Loans – No Specific Margin

norms

Overdraft Facility :

Overdraft facility upto 3 months ‘Net Pension’ Maximum Rs.50,000.00 can be granted (Net Pension means

amount being credit to Pension Account less EMI for any loans granted at the Branch/other

Branches/Banks). Pensioner who avails Overdraft facility could also avail loan under Star Pensioner

Scheme subject to combined limit prescribed under Star Pensioner Loan Scheme.

This facility is available to all pensioners maintaining Pension Payment Account with the Branch (i.e.

Pensioner should be drawing pension from the branch i.e. branch should be holding PPO).

CO-BORROWER:- In case of regular pensioners, nominee/legal heir entitled to family pension

AND in case Of loan to family pensioner, legal heir will be co-borrower.

50

GUARANTEE: Third Party Guarantee including that of other Pensioner drawing regular pension from branch/

OR

Collateral security in lieu of personal guarantee for the amount of loan can be accepted.

Rate of interest: As per extant H.O. guidelines from time to time

Net Take Home Pension: should not be less than 40% of the pension amount.

REPAYMENT: -

Clean Loans–36 EMI one month after first disbursement (Sanc. Auth. May consider repayment

period upto 60 months at it’s discretion)

Secured Loans – 60 EMI one month after first disbursement

In case of O/D limits, reducible as per payment schedule.

SECURITY–

Hyp. charge over assets financed, wherever applicable;

Pledge of Gold/ NSCs/KVPs/LIC policies with adequate surrender value – VOS of at least

equal to loan amount.

Equitable/Legal Mortgage of House/comm. Property valued by approved valuer not less than

150% of quantum of loan.

Pledge of demat shares, units etc. of market value not less than 200% of loan amount.

PROCESSING CHARGES: -NIL-for senior citizens (60 years & above); for others-2.00% of Loan

Min. Rs.500/- Max. 2,000/-

DOCUMENTS:

1. 1. Application-cum- Proposal Form (simplified) 2. D.P. Note, Instalment Letter etc.(as per nature of

advance) 3. Bearer Letter 4. An undertaking from the pensioner that he/she will not shift pension

a/c to any other bank/branch during the currency of the loan without NOC from bank. This letter

should be obtained in duplicate and original forwarded to the concerned treasury office/ employer for

reg./noting 5. A NOC from legal heirs entitled for family pension for recovery of loan

instalment/amount from their a/c in which family pension amount is credited, if necessary. ) 6.L-516

&.L-515. 7. Letter from customer authorizing bank to debit the account with loan instalment /amount.

8. Deed of Guarantee (OD-194) with statement of asset and liabilities of guarantor(s) 9. Equitable/

Legal Mortgage of the property, wherever stipulated.. 10. Charge on Principal/collateral security

proposed.

Post sanction inspection:-For housing purpose—Yearly For others – waived.

Discretionary Powers:- (Rs. In lakh)

scale I II III IV V to VII ZLCC HLCC &

above

Clean 0.25 0.50 0.75 1.00 1.00 - Full powers

Secured 0.75 1.50 2.50 5.00 5.00 10.00 Full powers

Ref: BC 106/4 dated 03.04.2012 (MasterCir.)BC No. 107/122 dated 01.10.2013 For Disbursement,

please refer BC No. 107/34 dated 22.05.2013.

51

SANDIPANI ONE PAGE MANAGER SERIES ADV-RETAIL/ 08 30.11.2013 BOI -PENSIONERS’ CREDIT CARD

1. Eligibility:

All Principal pensioners other than family pensioners drawing pension through the branch, below the age of

seventy years are eligible for issue of the Card. Pensioners holding our normal Credit Cards are also

eligible for the Pensioners’ Credit Card. Eligible pensioners interested to obtain Pensioner’s credit card for

the same charge account must surrender their earlier Credit Cards. If the charge account is not the pension

account for the normal credit card, the same can be continued. Pensioners include State, Central,

Military/Defence, Banks and Railway pensioners without exclusion of any govt. backed pension scheme.

Pensioners’ Credit Card will be issued with photograph of the pensioner. There is no add-on card facility.

2.Spending Limits:-Three times the amount of net pension drawn with a maximum of Rs.50,000/-

3.Cash Limit: One month net pension rounded off to the nearest hundred maximum Rs. 10,000/- per

month, within the overall spending limit. They can withdraw cash from all branches of the Bank against the

Pensioners’ Credit Card like any other credit card of our Bank in multiples of Rs. 500/- subject to minimum

of Rs. 1000/-.

4.Billing Date:- Billing cycle of the Card would be 16th

to 15th

of the month with billing date being 15th

of

every month. Cardholder’s account will be debited on 5th

of the subsequent month. This will provide a

maximum of 51 days and minimum of 21 days credit for the usage in member establishments. There shall

be no direct billing pensioner’s credit card. In case of insufficient balance in the charge account on 05th

of

the month, temporary overdraft is created in the account when the bill amount is debited to the account.

Interest/ service charges would be levied on such overdrawn amount at Interest/ Service Charges:-All

cardholders are expected to maintain adequate balance in his account to honour the bills on 05th

of the

month. In case of insufficient balance in the charge the rate of 14% p.a compounded monthly, with the

exception of senior citizens of 60 years and above which shall be @BPLR, minimum 12% p.a

(compounded monthly) i.e. 1% per month (instead of the normal rate of 2.5% per month charged in all

other Cards). This shall be the Unique Selling Proposition of pensioner’s credit card.

5.Cash withdrawal Commission:-Cash advance granted by a branch to the cardholder will be subject to a

cash withdrawal commission at the rate of 2% subject to a minimum of Rs.20/- which is a built in interest

component till the amount is debited to the cardholder’s account. Cash advance commission is not to be

recovered at the time of payment of cash since commission will be recovered through monthly billing by

the Card Products Department, Head Office.

6 Other benefits:- Accident insurance-Death due to accident by air travel : Rs.4, 00,000/- and by any other means : Rs

2,00,000/-respectively. Discounted Mediclaim premium (Max. up to the age of 65 years).

7. LifeCertificate:_ must be taken from the pensioners as is normally being done. In case of default, H.O.

Card products deptt. to be advised positively for blocking the Card till Life Cert. is submitted.

8. EMI facility, Revolving Credit:- Not available, Reward points not available.

9. Application Forms:-existing card application Form marked ‘REQUEST FOR PENSIONER CREDIT

CARD. 10. Sanctioning Authority:-Branch Managers - as per eligibility of spending limit to the card

holders.The details of the pension to be mentioned in the application form. PAN number or Form 60, as the

case may be is to be mentioned in the application. A certificate to the effect that all documents including

P.P. Os are in Branch’s possession and have been verified. KYC norms should be complied meticulously.

11.Staff Incentive: No incentive is proposed for sale of these cards.

Ref. : HOBC 100/141 DATED:29.11.06 .

52

SANDIPANI ONE PAGE MANAGER SERIES ADV-RETAIL/9 30.11.2013 STAR HOLIDAY LOAN

CLEAN LOAN OR SECURED LOAN –

Target customers: Salaried employees/P&SE persons/Businessmen/HNIs/Agriculturists/Pensioners/Staff

members

For Tours/Pilgrimage/Excursions Expenses likeTravel fare, Expenses for Accommodation, Sight Seeing

Obtain Declaration from the borrower stating the purpose and an undertaking regarding utilization of

advance

Age: Max. age of Pensioner not to exceed 65 years while considering the loan (Entry age)

QUANTUM: -Min. Amount Rs. 10,000/- at Metro/Urban Centers only. No Minimum amount clause for

Rural/ SU Centers. Facility is by way of D/L (Repayable as per repayment schedule) & maximum

Amount at any center is subject to

Clean – Max. Rs. 2,00,000/-

Secured Loans – Max. Rs. 5,00,000/- (If Liquid Collateral Security is offered up to at least 50% of

Loan Amt.)

Secured Loans – Max. Rs.10,00,000/-(If Liquid Collateral Security is offered up to a least 100 % of

Loan Amt.)

Salaried Employees – 10 times of Monthly Net Emoluments (Take Home Salary)

All Others – 50% of Gross Annual Income as per last I. Tax Return

Pensioners – 10 Times of Monthly pension Max Rs. 1.00 lakh.

Branch manager is competent to assess the Income up to Rs. 1.00 Lakhs, where salary certificate / I.T.

Return is not available. In case of joint borrowers, their income can be clubbed for assessing eligible

quantum of loan & repayment capacity.

REPAYMENT: 24 EMIs one month after first disbursement. In Exceptional Cases it can be extended up

to 36 EMIs

Net Take Home Salary/Pension/Income: Should not be less than 40% of Gross Salary/Pension/Income

SECURITY– (i) Pledge of NSCs/ KVPs/ IVPs/ TDRs / Assignment of LIC Policy if secured

PROCESSING CHARGES (One time)

All Accounts (except Pensioners) – @ 2.00% of loan amount- Minimum 1,000/- Maximum 10,000/-

Pensioners – @ 2.00 % of Loan Minimum Rs.500/-- Maximum Rs.2,000/-

No processing charges for senior citizens (60 years & above)

Margin: No specific margin. However, loan amount not to exceed proposed expenditure/requirement

Co-borrower/Guarantee: For pensioners, Nominee/Legal heir to be made Co-borrower. In other cases,

Guarantee to be obtained depending upon merit of each case.

Rate of interest: As per extant H.O. guidelines from time to time

DOCUMENTS REQUIRED FROM CUSTOMER Photo; Salary Certificate; I.T. Return; Guarantor if stipulated,

DOCUMENTS:

1. Demand Promissory Note (For Demand Loan)

2. Bearer Letter (L-435)

3. Instalment Letter (L-440)

4. Guarantee Letter, wherever applicable O/D-194

5. L-515 as per Br. Cir. No. 94/186.

6. L-516 as per Br. Cir. No. 97/114 13.11.2003

7. Irrevocable authority letter addressed to Employer for deduction of installment/interest from the salary

and remitting the same to Bank (wherever applicable)

8. Post dated cheques wherever possible

9. Charge on collateral security as proposed / stipulated (pledge/lien etc.)

10. Letter from customer authorizing bank to debit admissible service charges/interest etc.

Proper selection of borrowers (KYC compliant) & adequacy of their income/repayment capacity/source

of income to be ensured

Reference: BC 106/11 Dt. 17.04.2012 (Master Cir.)

53

SANDIPANI ONE PAGE MANAGERSERIES ADV-RETAIL/ 10 30.11.2013

STAR MITRA PERSONAL LOAN

Objective To help Physically Challenged persons to function independently.

Purpose To purchase durable and sophisticated aids / appliances that promote their

physical and social rehabilitation

Eligibility All Physically Challenged Individuals – both salaried and self-employed,

All Physically Challenged Minors through their Parents/Legal Guardians.

(No advances to middle-men and NGOs).

Type of Advance Demand / Term Loan - Secured

Amount Max.Rs. 1 lac (No minimum stipulation)

Eligible Amount 10 times of net salary for salaried persons and 50% of net annual income as

per latest Income Tax Return for Self-employed/Professionals. Net take

home income should not be less than 40% after availing this loan. (In case

of Minors, the income of the Parents/Legal Guardians would be the

deciding criteria for eligibility).

Margin 10% (May be waived in deserving cases, as also in DRI cases. Discretion

with the Sanctioning Authority).

Repayment 12 to 60 months, commencing one month after full disbursement/ three

months after first disbursement, whichever is earlier.

Present Rate of

Interest (ROI)

ROI is subject to HO guidelines from time to time

Present ROI for new loans 1.00% above Base Rate, 11.50% p.a. (fixed) in terms of BC

106/46 Dt. 18.06.2012

Security Hypothecation of the Equipment purchased out of Bank Finance

Insurance Waived. However, Borrower may be advised to obtain insurance at his own

cost.

Processing Charges Waived

Delegation As per powers for sanctioning secured Star Personal Loan

Other Terms and

Conditions i. Doctor’s Certificate to be obtained from the borrower regarding the extent

of handicap and the need for the equipment. ii. Quotation/Invoice in respect

of the equipment to be purchased. iii. Stamped receipt to be submitted after

purchase of the equipment. iv. Staff members also permitted (other than

those who are under suspension) from those branches where the salary

account of the employee is maintained. Loan to be repaid before

retirement/ recovered from terminal dues in case of cessation from service.

ALL OTHER TERMS & CONDITIONS INCLUDING DOCUMENTATION OF STAR PERSONAL

LOAN SCHEME WILL APPLY

Reference: BC 100/207 Dt. 30.03.2007

54


STAR IPO

Eligibility 1. Individual investor customers including staff members who have a PAN. 2. In case of

general public who are not our customers, identity to be established either through Passport, Driving Licence, etc in addition to PAN. 3. KYC norms to be meticulously complied with.

4. Should have a separate D-Mat account with us for IPOs if already not having.

Purpose 1. To subscribe to IPO including through Book building route. 2. Issues to be financed would

be approved and announced by Bank. Issues approved for finance would be communicated to

Zonal Offices periodically for dissemination to branches. The identification of future IPO

issues for finance would be recommended by a Committee of four GMs (Credit-I, Treasury,

Marketing and Zonal Manager of MSZ) for approval by Executive Director. 3. Share

applications for allotment in D-mat form only to be considered.

Type of Demand Loan –Demand annual review. Since an investor can subscribe to more than one IPO, facility separate loans for each IPO are to be monitored under a single Master Loan. This master loan

account number is to be given in the application for allotment by the borrower. The limit for

this master loan will be reviewed annually.(This master loan account mechanism is similar to our

EPC mechanism) Quantum For Public: Maximum of Rs.10 lacs per borrower. For Staff: Maximum amounts are as

under:- of Loan STAFF Officers : Rs.2 lacs | Clerical Staff : Rs.1.00 lac | Sub-ordinate staff : Rs.0.50 lac

Margin Margin requirement will vary as per RBI directives for Capital Market Exposure. Presently 40% of bid Price. Period of Max. Of 60 days from the date of opening of issue for subscription for each loan.

Disbursements Loan Would be proportional in case of issues with calls. The individual disbursements are required

to be repaid within 60 days from respective disbursement

Rate of As per extant H.O. guidelines from time to time. interest

Repayment To be repaid in full latest by 60th day of the issue. In case of refund orders it may be earlier

also. In case of default, Bank would exercise its rights as Pledgee.

However, if the borrower so desires an advance can be considered against share under our

usual

Stockcash Scheme as per the normal terms and conditions and proceeds utilised for

liquidating the

dues in the Star IPO facility.

Security 1. Lien to be marked with our Bank’s Depository on shares applied for. 2. DP Note, Letter of

Pledge; L516; Letter of authority addressed to Registrar of individual issues to appropriate

refund orders to loan account. 3. The address on share application should be “Care Bank of

India, financing branch” and form to be delivered to the branch for onward submission to

collecting Bank along with the cheque for amount payable from the loan account. 4.

Customer’s Loan Account No. with financing branch to be mentioned in the application form

so that refund orders where applicable can be received directly by the Bank. 5. Bank account

details given in DP Account opening form should be amended after sanction of the loan to

reflect number of loan account.

This delegation does not extend to other schemes.

Note The existing documents which are standard for opening a D-mat account together with letters addressed to the company, depository participant etc to be used.

Processing 1% of limit sanctioned min. Rs. 1000/- and max. Rs.5000/- per a/c to be recovered at the time

of Charges sanction of limit and at annual review. No processing charges for staff. Stamp duty to be

recovered as applicable.

Branches All branches authorized / identified to handle financing of shares and securities.

Reference: BC 97/182 Dt. 04.03.2004, BC 98/83 Dt. 04.08.2004, BC 99/50 Dt. 20.06.2005, BC 106/79

Dt. 31.08.2012

55

SANDIPANI ONE PAGE MANAGER SERIES SME/01 30.11.2013 SMALL AND MEDIUM ENTERPRISES (SME)

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED)

Act, 2006 on June 16, 2006 which was notified on October 2, 2006. With the enactment of MSMED Act

2006, the paradigm shift that has taken place is the inclusion of the services sector in the definition of

Micro, Small & Medium enterprises, apart from extending the scope to medium enterprises. The MSMED

Act, 2006 has modified the definition of micro, small and medium enterprises engaged in manufacturing or

production and providing or rendering of services as under.

1. Definition of Micro, Small and Medium Enterprises

(a)Enterprises engaged in the manufacture or production, processing or preservation of goods as

specified below:

i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs.

25 lakh; ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs.

25 lakh but does not exceed Rs. 5 crore; and

iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than

Rs.5 crore but does not exceed Rs.10 crore. In case of the above enterprises, investment in plant and machinery is the original cost (irrespective of

whether the plant and machinery are new or second handed) excluding land and building and the items

specified** by the Ministry of Small Scale Industries.

(b) Enterprises engaged in providing or rendering of services and whose investment in equipment

(original cost excluding land and building and furniture, fittings and other items not directly related to the

service rendered are specified below.

(i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10

lakh;

(ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh

but does not exceed Rs. 2 crore; and

(iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2

crore but does not exceed Rs. 5 crore.

These will include retail trade, small road & water transport operators, small business, professional & self-

employed persons and all other service enterprises. (Ref BC 103/115 dt 26.09.2009& 106/127

dt:17.11.2012)]

**

1. Cost of the following items shall be excluded while calculating the investment in plant and machinery

in the case of the enterprises mentioned in (1)(a) above, namely:

i. Equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of

consumables stores;

ii. Installation of plant and machinery;

iii. Research and development equipment and pollution controlled equipment

iv. Power generation set and extra transformer installed by the enterprise as per regulations of the

State Electricity Board;

v. Bank charges and service charges paid to the National/ State Small Industries Corporation

vi. Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounded on

individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be

used for providing electrical power to the plant and machinery or for safety measures;

vii Gas producers plants;

viii. Transportation charges (excluding sales-tax or value added tax and excise duty) for indigenous

machinery from the place of the manufacture to the site of the enterprise;

ix. Charges paid for technical know-how for erection of plant and machinery;

x. Such storage tanks which store raw material and finished produces and are not linked with the

manufacturing process;

xi. Fire fighting equipment.

2. In the case of imported machinery, the following shall be included in calculating the value of plant and

machinery namely;

i. Import duty (excluding miscellaneous expenses such as transportation from the port to the site of

the factory, demurrage paid at the port);

ii. Shipping charges; iii.Customs clearance charges; and iv.Sales tax or value added tax.

56

Target for Micro & Small Enterprises Credit:

The RBI has prescribed the following overall target for the Bank as a whole for Micro & Small Enterprises credit :

Special takeover of norms for Micro and Small Enterprise accounts uptoRs. 100 lakhs & which are eligible for cover

under CGTMSE (BC No: 106/176 dt:30.01.2013).

Central Registration of Loan Application - Web based system put in place for implementation

In terms of RBI directives, all banks are mandatorily required to maintain Centralised Loan Application Register in

respect of MSME borrowers with online tracking facility. In this connection, a web based system of Centralised Loan

Application Register has been put in place by our HO-IT, which is accessible through link

http://ola.bankofindia.com/Loans/SitesAssets/Mselead.aspx w.e.f 1st April 2013. The system will generate running

serial number for the bank as a whole and necessary acknowledgement slip with details of application. The application

received need to be disposed of within the RBI prescribed time frame. Upon sanction, the date of Sanction should be

entered in the register.

Limits Time Limit Not Exceeding

Upto Rs. 25,000/- 4 Business Days

25,000/- and Upto Rs. 10 lakhs 8 Business Days

10 lakhs and Upto Rs. 5 Crores 12 Business Days

5 Crores 20 Business Days

HO – It is working on upgrading the system so as to include further movement of applications and provision will be

made to facilitate applicants for online tracking his application status with the Bank. (BC No: 107/06 dt: 08.04.2013)

In case of rejections, approval shall have to be obtained from the next higher authority, not below the level of Zonal

Manager.

Different Facilities available to SME: All types of credit facilities (Fund Based and Non Fund Based) can be provided

to the MSMEs. In case of term loans:

Margin ranges from 15% to 50%. Normally stipulated 25%.

Repayment period may be between 7 to 10 years.

For working capital:

Limits are to be worked out normally by using Turn Over Method For limits up to Rs. 5.00 Crore.

No need to obtain elaborate CMA data as prescribed under existing credit policy for all W.C. advances

upto Rs.5.0 crores

Collateral Security: Collateral security is waived for credit limits upto Rs.10 lakhs (RBI Master circular

No:RBI/2010-11/79 dated 01.07.2010) and Limits up to Rs.100 Lakhs, provided CGTMSE cover is available.

Different application forms

MSE-1- For all Micro and Small Enterprises (Manufacturing and Services for limits up to Rs.25 Lakhs)

MSE-2 For all Micro and Small Enterprises (Manufacturing and Services for limits above Rs.25 Lakhs and upto

Rs.200 lakhs) [For format Ref BC 103/157 dated 01.01.2010]

Different Formats of proposals(For proposal format please refer Br. Cir. No. 103/125 dated 26.10.2009)

MSME-1 For Small Road Transport Operators irrespective of the Limit

MSME-2 For all Micro and Small Enterprises (Manufacturing and Services for limits up to Rs.25 Lakhs)

MSME-3 For all activities under Micro and Small Enterprises (Manufacturing and Services) for limits above Rs.25

lakhs uptoRs.200 lakhs.

Debt Restructuring Mechanism & Rehabilitation Policy for Micro, Small & Medium Enterprises (MSMEs) –

Review/Revision (BC No: 107/27 dt: 11.05.2013)

Micro

&Small Ent

Advances

Advances to Micro (Mfg) and Small (Mfg) irrespective of Limit and Micro (Service)/Small (Service)

Credit Limit up to Rs. 5Crore (RBI Credit Policy Dt: 03.05.2013) will be classified as Priority Sector

Advance. Medium Enterprises will not be included under the priority sector target of 40 per cent of

ANBC (Adjusted Net Bank Credit) or credit equivalent amount of Off-Balance Sheet Exposure,

whichever is higher.

Micro

enterprises

Advances

within

Small

Enterprises

Sector

(i) 40 per cent of MSE advances should go to Micro (Mfg) enterprises having investment in plant and

machinery up to Rs10lakh and Micro (service) enterprises having investment in equipment up to

Rs.4 Lakhs.

ii) 20 per cent of MSE advances should go to micro (manufacturing) enterprises with investment in

plant and machinery above Rs10 lakh and up to Rs. 25 lakh, and micro (service) enterprises with

investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh. (Thus, 60 per cent of Micro &small

enterprises advances should go to the micro enterprises). (BC No: 106/165 dt: 11.01.2013)

iii) By corollary, the rest 40% should go to Small Enterprises(Manufacturing) with investment in plant

and Machinery more than Rs.25 lakhs and up to Rs.5 Crores as well as to Small Enterprises

(Services) with investment in equipment more than Rs.10 lakhs and up to Rs.2 Crores

Export

Credit

Export credit to eligible activities under agriculture and MSE will be reckoned for priority sector lending

under respective catogories

57

SANDIPANI ONE PAGE MANAGER SERIES SME/02 30.11.2013 STAR LAGHU UDYAMI SAMEKIT LOAN

(Special Scheme for Micro & Small Units at Rural/Semi/Urban/Metro Centers) The salient features of the scheme are given below;

Target Group Micro & Small Enterprises in rural, semi urban and urban and metro branches

Type of loan Composite Loan in the form of Demand /Term Loan

Purpose Investment and Working Capital Requirements. This product will be offered to those Micro &

Small Enterprises who require both working capital and term/demand loan

Quantum of

Loan

For Units located in Maximum Amount of Loan

Rural Areas Rs. 5,00,000/-

Semi-Urban Areas Rs. 10,00,000/-

Urban Areas Rs. 50,00,000/-

Metro Areas Rs.1,00,00,000/-

Margin 15%

Rate of

Interest.

As per HOBC 104/155 dt. 08.03.2011 and subsequent circulars issued from time to time

a)Term loan under the scheme will not attract term Premium as approved by ED/26.07.2010. b)ROI is

linked to Base Rate (Floating)

c)Concession of 0.50% in ROI on account of CGTMSE guarantee cover has already factored.

d) No other concession including meant for Priyadarshini, SME rating etc. will be extended under the

scheme. e)No further account specific concession to be considered. Repayment Demand Loan is repayable in 60 months with a moratorium of 3-6 months.

Security Hypothecation of Assets created out of bank finance as well as existing unencumbered assets

of the MSE unit.

Equitable Mortgage of the Land and building which is part of the business activity such

business premises.

Guarantee Cover under CGTMSE Guarantee Scheme.

No collateral security/third party guarantee to be obtained

Credit Rating As per extent guidelines credit rating for loans upto Rs.10 lakhs is exempt.

For limits exceeding Rs.10 lacs and upto Rs.100 lacs, Risk Management Department, will devise a

scoring model. Till such time the existing SBS model of credit rating will be used for rating the

accounts.

Processing Charges Limit Processing Charges

Upto Rs.1,00,000/- Rs. 500/-

Above Rs.1,00,000/- Upto Rs.5,00,000/- Rs.1,000/-



Documentation Demand Promissory Note.

MSME (Services) -Deed of Hypothecation CHA 1/CHA 2 with Limits upto Rs.25 lacs for

Hypothecation Charges

MSME (Services) - Hypothecation Charge – IFD –X for limits above Rs. 25 lacs.

MSME (Manufacturing) - Hypothecation Charge – IFD –X for all limits.

Installment Letter.

Documents for fulfilling KYC norms

Other connected documents applicable for Demand/Term Loans as per extent guidelines.

Equitable Mortgage as Primary Security wherever applicable.

Processing Simplified Application cum Proposal Forms as Annexed with the Br.Cir. No. 104/58 to be

used.

Turnaround time for sanction of Limits up to Rs.5 lacs will be 5 working days and for Limits

above Rs. 5 lacs 7 working days after all relevant information is obtained.

Implementing

Agency

The scheme will be implemented directly by the bank. No outside agency whether Govt. or

otherwise will be involved in the implementation.

Classification Advances under this scheme will be classified MSME advances with Sector Code 32,

Scheme code 209 and Special Category Code from 150 to 173 depending upon the original

cost of investment in plant & machinery/ Equipment. BSE Code will depend upon the

activity.

TEV(Techno-

economic Viability)

TEV charges are applicable to credit limits of Rs.30 lacs and above sanctioned to manufacturing units

irrespective whether TEV study is done or not. Levy of TEV fee is waived for the above schemes.

BC No 103/174 dated 10.03.2010; BC No 104/58 dated 10.08.2010; BC No 104/63 dated 23.08.2010.

58

SANDIPANI ONE PAGE MANAGER SERIES SME/03 30.11.2013

STAR LAGHU UDYOG SUVIDHA SCHEME (SLUSS) It is a revamped scheme of our erstwhile “Star - SSI Suprime" (SSS) scheme which has since been

discontinued.

Type of facility: Short Term Loan (up to 180 days) by way of Demand Loan/ Bill Discount Limit

No roll-over is permitted

Extension beyond due date would incur ROI at normal rate plus penal interest.

Amount: 50% of regular Sanctioned Limits subject to a maximum Rs.50 lakhs

Eligibility criteria:-

AAA and AA rated SME borrowers having a sound track record.

The unit is earning net profits at least during the last 3 years and annual turnover in excess of Rs.50 lakhs.

The unit should be enjoying limits in excess of Rs.10 lacs.

All terms of sanction have been complied with.

Account is not overdue for review

Purpose:

To meet/ supplement Temporary Liquidity Requirements such as Bunched Despatch of Goods / Execution

of Special Orders with short delivery schedule / Seasonal Build up of inventories awaiting dispatch for

which orders from reputed companies are on hand etc.

Facility:

Loans upto and inclusive of 180 days

Discount of Inland Bills of tenor upto and inclusive of 180 days drawn by Suppliers and accepted by our

borrowers (Channel Credit)

Discount of Inland Bills of tenor upto and inclusive of 180 days drawn by our borrower and accepted by

Dealers of Goods manufactured by our borrower/ Beneficiaries of Services rendered by our borrowers such

as Govt. Depts./Undertakings including SEBs with whom Power of Attorney has been registered.

Discount of Bills drawn under DA LCs of Prime Banks with usance not exceeding 180 days.

Payment:

Source of repayment needs to be identified at the time of consideration of the facility. Cash Flows to be

examined in this regard.

Security:

Charge already created on assets held in the account should be extended to cover the proposed facility.

Interest rate : As per HOBC 104/155 dt. 08.03.2011 and subsequent circulars issued from time to

time

Processing Charges: As per HOBC 102/167 of 23.12.2008

Authority: As per existing Delegation of Powers for the total exposure on a borrower inclusive of the

proposed facility

In case of need please refer to Br. Cir. No. 96/184 of 20.02.2007, 101/206 of 08.03.2008,103/12 of 17.04.09

59

SANDIPANI ONE PAGE MANAGER SERIES SME/04 30.11.2013 CREDIT GUARANTEE FUND TRUST SCHEME FOR MICRO AND SMALL ENTERPRISES

Credit Guarantee Fund Scheme for Small Industries (CGFSI) has since been changed to Credit Guarantee Fund

Scheme for Micro & Small Enterprises (CGTMSE) with effect from 2nd

July 2007. The salient features of the scheme

are as under;

i). Eligible Borrowers:

a). New or existing Micro and Small Enterprises (both Manufacturing and Services) to which credit facility has been

provided without any collateral security and/or third party guarantees.

Primary Security shall mean assets created out of the credit facility and / or assets which are directly associated

with the project or business for which the credit facility has been extended. The charge on unencumbered assets

appearing in the Balance Sheet of the unit is treated as primary security. 102/195 dt 09.02.2009

b). Credit facilities extended to a unit already assisted by State/National Level Institutions are eligible for Guarantee

Cover under the scheme. Joint financing by two commercial Banks to a single borrower also eligible for

guarantee cover.Joint Financing with SIDBI eligible for guarantee cover.

c). All types of firms / companies or other legally constituted bodies, individual borrowers, small businesses.

d) No death claim benefit available to the beneficiaries of CGTMSE scheme wef29.07.2008 ( BC No: 106/184 Dt: 15.02.2013)

ii). Not Eligible Borrowers :

Retail Trade and Educational Institutions are not covered under CGTMSE (BC No: 105/84 dt: 18.08.2011).

Group lending through SHGs not eligible

Case specific action, if any, for obtaining Collateral security/third party guarantee in lieu of CGTMSE cover, may

be taken up only with prior approval of GM-NBG.

iii). Eligible Accounts

a). Both Term Loan and Working Capital (both fund based and non-fund based) can be covered.

b). In case an account which had been sanctioned Credit earlier had been omitted to be covered under the scheme,

only Working Capital accounts of such borrower can be covered at the time of review/renewal.

c). Where the borrower is enjoying several distinct credit facilities, one or more out of the same can be covered upto

the Eligible Amount (presently Rs.100 lacs) provided no collateral security and 3rd

party guarantee has been

obtained.

d) For credit facilities above Rs.50 lacs and upto Rs.100 lacs, internal rating should be of investment grade.

Investment grade refers to the acceptable grade. In our bank internal rating for extending credit facilities to Micro

and Small Enterprises for fund based and non fund based limit between Rs.10 lacs and Rs. 100 lacs, the SBS

model of credit rating shall be followed. The following risk grades are to be treated as minimum grades for

considering sanction of advance to a borrower.

1. Micro and Small Enterprises – Manufacturing an entry grade of SBS 5.0 (total score 180)

2. Micro and Small Enterprises – Services an entry grade of SBS 5.5 (total score 196)

iv). Credit GuaranteeCover: The Trust shall provide guarantee as under; (102/195 dt 09.02.2009)

Category Maximum extent of Guarantee where credit facility is

Upto Rs.5 lacs Above Rs.5

lacsupto 50 lacs

Above Rs.50 lacsupto 100 lacs

Micro enterprises 85% of amount

in default

maximum

Rs.4.25 lacs

75% of amount

in default

maximum of

Rs.37.50 lacs

Rs.37.50 lacs + 50% of amount in

default above Rs.50 lacs maximum

Rs.62.50 lacs

Women entrepreneurs/ units

located in NE regions( other

than credit facilities upto Rs.5

lacs to micro enterprises)

80% of amount in default

maximum Rs.40 lacs

Rs.40 lacs + 50% of amount in default

above Rs.50 lacs maximum Rs.65 lacs

All other category of borrowers 75% of amount in default

maximum Rs.37.50 lacs

Rs.37.50 lacs + 50% of amount in

default above Rs.50 lacs maximum

Rs.62.50 lacs

The Guarantee Cover will commence from the date of payment of guarantee fee.

The Guarantee Cover shall run through the entire tenure of the Term Credit / Composite Credit.

Where working capital alone is financed, the tenure of guarantee cover is fixed at 5 years. Guarantee Fee has

to be paid afresh for renewed guarantee cover thereafter for the next block of 5 years for S/L upto31.12.12.

Term loan sanctioned or WC limit sanctioned / renewed in a particular calendar quarter should be covered

latest by the end of next calendar quarter.

v). Additional credit facilities in respect of accounts guaranteed under CGTMSE Additional credit facilities

sanctioned to units covered under CGTMSE will also be eligible for cover under the Scheme, if the unit is

otherwise eligible for cover after sanction of additional limits.

In such cases, fresh applications have to be submitted for the additional loan/limit.

While submitting such applications, the CGPAN already allotted by CGTMSE to that particular borrower at

the time of initial guarantee cover should be mentioned in the field Bank Reference Number after the

reference number of the branch.

60

vi). Rehabilitation assistance: For the unit covered under CGTMSE and becoming sick due to factors beyond the

control of management, assistance for rehabilitation extended by the Bank could also be covered under the scheme

provided the overall assistance is within the credit cap of Rs.100 lakhs.

vii). Non-Eligibility: Any facility given on the basis of collateral security and/or third party guarantee shall be

disqualified for coverage under the scheme. The CGTMSE also reserves the right to reject any application for the

guarantee cover, if it deems necessary

viii). Guarantee Fee and Annual Service Fee

A. (For Sanctioned Limit upto 31.12.2012)

1. One time Guarantee fee at the specified rate on the Sanctioned limit shall be paid upfront to CGTMSE. In case of

Cash Credit Guarantee Fee is payable every 5 years.

2. The Annual Service Fee payable as on 31st March shall be on the sanctioned limit .

3. The rate of Guarantee fee and Annual service Fee is as given below.

Upfront Guarantee Fee Annual Service Fee

Credit Facility North East Region (Inc. Sikkim) Others

Upto Rs.5 lakh 0.75% 1% 0.50%

Above Rs.5 lakh to Rs.50 lakh 0.75% 1.50% 0.75%

Above Rs.50 lakh to Rs.100 lakh 1.50% 1.50% 0.75%

4. Annual Service Fee paid on the sanctioned limits as on 31st March will cover the guarantee cover extended by

CGTMSE, for the previous year. As per latest guidelines of CGTMSE, ASF will be payable upfront wef 2013-14. So,

during the current period we have to pay ASF for the two years, i.e. 2012-13 and 2013-14 for the loan sanctioned up to

31.12.2012.

5. The Annual Service Fee for the first year shall be for the broken period from the date of sanction of the facility till

31st March.

6. The ASF shall be paid latest by 31st May each year.

It is to be noted that;

Our Bank has taken a decision to bear Joining Fee (Guarantee Fee) in respect of all accounts covered under

CGTMSE Scheme as mentioned :-100% of GF in all accounts (Mfg Units with investment in P& M up to Rs. 5 lakhs

and Service Sector Units with investments in equipment up to Rs. 2 lakhs). 75% of GF in all accounts (Mfg Units

with investment in P&M > Rs. 5 lakhs to 25 lakhs and Service Sector Units with investments in equipment > Rs. 2

lakhs to 10 lakhs)). 50% of GF in all other cases [Ref BC No:106/121 dated 08.11.2012].

a. The Office of the Development Commissioner (Handicrafts) reimburses the Guarantee Fee and Annual

Service Fee in case of loans sanctioned to Artisans in Handicraft Sector where CGTMSE cover is obtained.

Dev. Comm. Handicraft has placed funds in advance with CGTMSE and branch need not to pay GF/ASF in

such cases. [Ref. Br. Cir. No. 103/61 dt. 07.07.2009]

b. For PMEGP borrowers 100% of Guarantee Fee and Annual Service fee shall fully be absorbed by the

Bank . [Ref B C No:106/185dated 15.02.2013].

c. Hence forth Bank will bear ASF for the borrowers of category of : SC/ST, Women beneficiaries,

Minority, Units in NR area including Sikkim and J&K

B. (For Sanctioned Limit on or after 01.01.2013)

1. Composite Annual Guarantee Fee at the specified rate on the Sanctioned limit shall be paid upfront to CGTMSE.

Upfront, we have to make AGF for the one year and in the next year we have to make payment for the fraction of year

to provide cover up to 31.03 of the subsequent year. After that payment will be made for full year and in the last year

again AGF will be payable for the fraction period. In this case we have to tell tenor of the guarantee cover and cover

will expire after that tenor. We have to exercise the option for extension of the coverage before expiry of the cover

carefully. (Ref CGTMSE Circular No: 63 dt:04.04.2013)

2. The rate of Annual Guarantee Fee is as given below.

Upfront AnnualGuarantee Fee

Credit Facility Women, Micro Enterprises, units in North

East Region (Inc. Sikkim)

Others

Upto Rs.5 lakh 0.75% 1%

Above Rs.5 lakh to Rs.100 lakh 0.85% 1%

Our Bank has taken a decision to bear AGF as details given below :-

Sharing pattern Limit uptoRs. 50 lacs Limit > 50 lacs to Rs.100 lacs

General 100% of First year AGF in

Micro & Small segment

50% of First year AGF

The borrowers to bear the AGF from 2nd

year onwards

PMEGP 100% of AGF for entire tenure

SC/ST, Women beneficiaries, Minority, Units in

(NE area including Sikkim and J&K)

61

Now we can obtain Guarantee from :-

Sole Proprietary Concern Sole Proprietor Partnership/Limited

Liability Partnership

Partners

Trust Trustee HUF Karta & Coparceners

Pvt/Public Ltd Co Promoter Directors

ix) Interest Rate payable by Borrower :Interest rate shall not exceed 3 per cent over and above the Prime Lending

Rate of the BANK, excluding the annual service fee.

x). Application for Cover Applications for Guarantee Cover under the scheme are to be lodged online with the

Corporation. The Zonal Offices are designated as Nodal Offices for such lodgement. All the branches shall submit

hard copies of the relevant information to Zonal Offices, who in turn will scrutinize the applications for their

correctness and transmit data online to the Corporation through Internet. Zonal Offices have been provided with User

IDs for this purpose.

In case of NPA of facility, Corporation should be informed by subsequent quarter. In case such account is regularized,

Corporation should be informed the present status,otherwise, it will not accept the claim subsequently after lapse of

12/24 months as applicable.

xi). Invocation of guarantee :

Guarantee in respect of accounts covered under CGTMSE may be invoked if the following conditions are satisfied-

The guarantee in respect of the concerned credit facility is in force.

The lock-in-period of 18 months from either the date of last disbursement of the loan or the date of payment of

the guarantee fee in respect of the credit facility, whichever is later, has elapsed.

Claim should be filled with in 1 year from date of NPA, (S/L upto 31.12.2012) and 2 years from date of NPA

(S/L on or after 01.01.2013)

The amount due and payable in respect of the credit facility has not been paid and the dues have been classified

as Non-Performing Assets.

It may be noted that claim cannot be made on CGTMSE in respect of a credit facility if the loss has occurred

owing to actions/decisions taken contrary to or in contravention of the guidelines issued by CGTMSE.

The credit facility has been recalled and recovery proceedings have been initiated under the due process of law

(Civil Courts / DRT / Revenue Recovery / Lok Adalats, SARFAESI Act 2002)

Initiation of legal proceedings as a pre condition for invoking of guarantee shall be waived for credit facilities

upto Rs.50,000/- , approved by an Executive Committee headed by an Officer not below the rank of GM

xii). Claim Settlement (a) CGTMSE shall pay 75% of the guaranteed amount on preferring of eligible claim, within 30 days, subject to claim

being otherwise found in order and complete in all respects. If 75% of the guaranteed amount is not paid within

30 days, CGTMSE shall pay interest on the eligible claim amount at the prevailing Bank Rate for the period of

delay beyond 30 days.

(b) The balance 25% of the guaranteed amount will be paid by CGTMSE on conclusion of recovery proceedings or

after three years of obtention decree of recovery, whichever is earlier.

(c) In the event of default, the branches shall exercise the rights, if any, to take over the assets of the borrowers and

the amount/s realized, if any, from the sale of such assets or otherwise shall first be remitted in full to CGTMSE

after adjusting the cost incurred by the Bank for recovery of the amount. CGTMSE shall appropriate the same

towards the pending service fee, penal interest and other charges due to CGTMSE, if any, in respect of the

concerned credit facility. Only thereafter claim for the remaining 25% of the guaranteed amount may be made.

(d). On a claim being paid, CGTMSE shall be deemed to have been discharged from all its liabilities on account of the

guarantee in force in respect of the concerned credit.

xiii)Claim received from CGTMSE : Such amount should be kept in Sundry Credit “ SOL-ID SUNCR801” especially

created for this purpose and not to credit in Loan Account. At the same time the claim received has to be entered

in database in CCIS, Option A – Guarantee Claim Settled amount to avoid wrong provision. After the recovery

efforts are exhausted and claim finally settled, the amount may be appropriated to the borrowal account. (BC No:

107/117 dt: 27.09.2013)

Before closure of the accounts covered under CGTMSE scheme, ASF has to be collected pro-rata from 1st April till

date of closure. The request for closure shall be made on line with CGTMSE in the “Closure Module” In case of

classification of A/c as NPA, Corporation Data should be updated by subsequent quarter.

Ref.2009-10/74 of 18.07.2009] Master Cir 101/129 of 08.10.07, 101/202 of 27.02.08, 102/195 of 09.02.09, 103/61 dt.

07.07.2009Cir Letter No 2008-09/17 of 02.05.08, 2008-09/56 of 19.07.08 and 2008-09/117 of 18.03.2009, 2009-10/74 of

18.07.2009, BC 106/164 dt:08.01.2013, 106/121 dt: 08.11.2012, 106/164 dt: 08.01.2013, 106/176 dt:30.01.2013, 106/184 &

185 dt: 15.02.2013, 107/117 dt: 27.09.2013)

62

SANDIPANI ONE PAGE MANAGER SERIES SME/05 30.11.2013 BOI –SWAROJGAR CREDIT CARD (BOI-SCC)

Purpose & Eligibility:- To provide adequate and timely credit (including reasonable component for

consumption ) to small artisans, handloom weavers, service sector, fishermen, self employed persons,

rickshaw owners,& other micro entrepreneurs, in a flexible, hassle free and cost effective manner through

composite loan including term loan/revolving cash credit. Implemented through all branches (excluding

specialized branches)

Nature of financial accommodation:- The term loan for investment requirements repayable in instalments

within 5 years. The revolving cash credit will be fixed taking into account the operating cycle/nature of

investment and shall be fixed based on available balance after sanction of term loan

Quantum of limit:- Rs.25,000/- per borrower as composite loan. which may go upto Rs.50,000/- in

deserving cases. Initial investment in fixed assets and/or working capital requirement/recurring expenditure

of the borrower are to be taken as the base for fixing the limit. The working capital/recurring expenditure

limit may be in the form of a revolving cash credit and fixed as a percentage of the turnover divided by the

number of operating cycles per annum. A component for consumption credit could be built in keeping in

view the value of the family labour in the productive activity. The total limit would have a relationship

with the projected net earning and the repayment capacity of the borrower.

Validity: BOI SCC is normally valid for 3 years subject to satisfactory operation of the account and

renewed on a yearly basis through simple review process. The operations in the account should be regular.

Issue of cards;-The beneficiaries under the scheme will be issued with a laminated credit card and a pass

book with photograph to facilitate recording of the transactions on an ongoing basis. The pass book

would contain the repayment schedule of the term loan also. Self Help Groups (SHGs) can also be issued

cards in their name and they will be liable jointly and severally for repayment. As far as possible cluster

approach to be followed in implementing the scheme No processing fees be charged.

Renewal of Working capital limits;- Limits will be renewed annually based on the amount credited to the

Cash Credit account and the repayment performance in the term loan account. In deserving cases the term

loan and /or working capital can be enhanced within the overall limit. The Revolving Cash Credit to the

extent of working capital repaid, may be renewed within the overall ceiling of Rs.25,000/-or the sanctioned

limit and it should normally be repaid within 12 months from the date of drawal.

NO drawal will be permitted if revolving cash credit remains outstanding for more than 12 months.

The aggregate credits in the account during the 12 months period should normally be equal to the maximum

outstanding in the working capital component plus the instalment of the term loan availed of, if any.

Operation of the scheme:- The Branch will have absolute freedom to select the clients for the card. There will be no subsidy from the

Government under this Scheme The borrower can avail the credit facility as per his/her requirements i.e.

either term loan or working capital loan or a combination of. The term loan component and working

capital component will be accounted for separately. The operations in the account will be generally

through the card issuing branch. However, the banks may at their discretion permit operations through the

designated branches, taking into account the convenience of the clientele. Withdrawal from the account will

be through withdrawal slips/cheques. The BOI SCC and Passbook should be produced each time cash

withdrawal is made. Opening of SB A/c. should not be a pre-condition for issue of BOI SCC. However, in

case BOI SCC holder desires on his/her own to open S/B A/c, he/she may be allowed to do so.

Security : Hypothecation of assets purchased

Rate of Interest : As per prevailing rate of interest structure in terms of HOBC No:104/155 dated

08.03.2011 and subsequent circular issued from time to time..

Margin: Nil

Other norms as applicable to Priority Sector lending

HOBC NO. 100/139 of 24.11.06

63

SANDIPANI ONE PAGE MANAGER SERIES SME/06 30.11.2013 BOI STAR CHANNEL CREDIT

To take care of the fund requirement of an industrial unit both for their purchases and sales to dealers on credit terms,

in addition to their production requirements, in a straight through manner or financing a channel of productive activity,

a product called "Star Channel Credit” was introduced by the Bank. The salient points of the scheme are as under:-

Facilty: - A. Drawee Bill Finance (DBF) for Suppliers B .Drawee Bill Finance or Overdraft facility for Dealers

We shall not insist upon drawal of a formal Bill of Exchange both in the case of Supplier Credit and Dealer credit.

We shall accept the duly acknowledged Invoices for discount.. Eligibility criteria:- Sponsoring Corporate can be a Manufacturing Unit, Wholesale Dealer of goods, Distributor of

goods, or a Provider of Services. They should be rated SBS 1-3 and SBS 4-6 (previous rating ‘AA’ and above)

Facilities to Suppliers and Dealers would be extended based on the referral of the Sponsoring Corporate. Exposure to

each Dealer to be based on the referral of the Sponsoring Corporate. Though due weightage shall be given to the

recommendation, Bank shall take a decision based on merits in each case.

Financial criteria:- Sponsoring Corporate’s referral letter to state that their past dealings with the Supplier/Dealer

are satisfactory.

Margin:-: Nil

Maximum exposure:- Within the existing norms, for the purpose of financing under these liberalized terms, a cap of

Rs.25 lacs is prescribed in respect of each Supplier and each Dealer. Above these limits, Bank’s normal lending

norms/procedures to be made applicable.

Finance to Supplier to be outside MPBF of the Sponsoring Corporate and the stocks procured from Suppliers by this

facility would be treated as “unpaid” stocks till the liability under the Bills is extinguished.

Tenor of the facility:- Maximum 90 days exclusive of Free Period offered, if any.

Grace period: 3 days to Dealers only in cases where Post Dated Cheques are not obtained.

Rate of interest : ( As per HOBC 104/155 dt. 08.03.2011 and subsequent circulars issued from time to time

a. Supplier Credit:

Sponsoring Corporates

Credit rating

Tenor of Credit

Upto and inclusive of 90

days

> 90 days and upto

180 days

> 180 days and upto

270 days

Beyond 270

days

AAA 13.50 % p.a. 14.00% p.a. 14.50%p.a 15.00 % p.a.

AA 14.25% p.a. 14.75% p.a. 15.25% p.a. 15.75% p.a.

Dealer Finance: Normal Rates of interest based on credit limits /rating are to be levied.

Concessions: Wherever Guarantee of the Sponsoring Corporate is obtained in respect of repayment of dues of the

Dealers to the Bank:

Rating of Sponsoring

Corporate

Applicable Rate Minimum Floor

Rate

AAA 0.50% below the rate for which the Sponsoring Corporate is

eligible for W/C Finance against Book Debts.

11.75%

AA 0.25% below the rate for which the Sponsoring Corporate is

eligible for W/C Finance against Book Debts

12.00%

Notes:- I-The above two concessions in pricing are available for credit by way Drawee Bill Finance with the tenor of

bills not exceeding 180 days only.

II-General Managers heading /overseeing Zones would approve the above two concessions in respect of proposals

emanating from the respective zones headed/controlled by them.

III-The General Manager, SME SBU would approve similar concessions in respect of other zones.

Penal rate: -2% over the contracted rate.

Processing charges:-NIL for the suppliers. 1% of limit fixed for each dealer payable up front at the time of sanction

of limit to dealer.

Assessment mechanism:-:Sponsoring Corporate is to make good all the funds, inclusive of all charges, lent to

Suppliers. Recoveries of such amounts would be from account as per procedure of DBF Scheme.

In respect of Dealer Finance:-

I Papers to be obtained from Dealer:

Application Form

Copy of Articles of Association, Partnership Deed, Firm’s Registration (as applicable)

Bank’s KYC Forms,. CBD-23 Forms

Copy of ST Registration Certificate

Copies of Sales Tax Returns (evidencing turnover) for the past three years (max)

Copy of latest available Income Tax Returns/Assessment

Status Report from Bankers or Copy of Statement of account for the past 3 yrs.

64

II. Papers to be obtained from the Sponsoring Corporate

Application form

Opinion Report on the Dealer

Letter of Comfort

Possibility of obtaining Corporate Guarantee to be explored.

Copy of Agreement with the Dealer, if any

Drawal mechanism In the case of Supplier Finance, obtention of Post Dated Cheques can be dispensed with by taking a letter of

authority to debit the Working Capital Cash Credit Account.

In the case of Dealer Finance, wherever separate limits are not sanctioned to Dealers, obtention of Post Dated

Cheques (for Principal & Interest) or ECS Debit Mandate – wherever such facility is available - is to be prescribed.

Wherever separate limits are sanctioned, the amounts in respect of accepted invoices is to be debited to such CC/OD

accounts.

Payment mechanism:-

Payment as per agreed upon terms inclusive of charges to be made to the Supplier by fastest means of remittance -

through MBB/CBS Network or RTGS system.

In case of dealers, any one of the following three procedures can be implemented:

i. Payment would be made to the corporate to the debit of an OD account in the name of the particular dealer

maintained at the location where the Sponsoring Corporate’s account is maintained. Post Dated Cheques obtained

from the dealer would be put through the CMS on due date and proceeds credited to this OD Account.

ii. Where post Dated Cheques are not obtained an ECS Debit Mandate can be obtained from the Dealer wherever such

facility is available

iii. Where PDCs are not obtained and ECS Debit facility is not available, an OD account of the Dealer is to be opened

with limit as recommended by the Sponsoring Corporate. By debiting this OD account the Bill Purchase Liability

existing in the books of the Sponsoring Corporate’s Branch would be extinguished. In case of default, recourse to

the Sponsoring Corporate as per terms of agreement.

Default event and consequences & Corporate’s responsibility

When a default takes place in the case of a dealer, the bank would intimate the default to the corporate who would be

duty bound to stop further supplies to the particular dealer and assist the bank in recovering its dues. Bank reserves its

right to exclude the defaulter from the scheme even after realizing its complete dues.

Documents to be executed by the corporate:-

Acceptance of the terms and conditions of the sanction letter.

Comfort letter favouring the bank in the case of financing dealers

Corporate opinion report on each of the dealer to be included in the scheme

An undertaking stating the responsibilities of the Corporates under the scheme as included in the Comfort Letter

Application-cum-Opinion Letter,

Documents from individual dealer::-

DP Note, Continuing Security letter, Personal Guarantee of the proponents.

Other conditions:

1.In the event of any change in trade terms with the supplier and/or the dealer the same should be intimated by the

corporate.

2. The CC/OD account would be frozen by the bank in case of default as mentioned above by the dealer till the over

dues/ default is regularized.

3.The bank would have the right to discontinue this facility to a dealer who is a frequent defaulter even if the amounts

are regularized subsequently.

4.Requirements of the Dealers to change their present banking arrangements need not be insisted upon view of

availability Right of Recourse under Section-138 of N.I Act

5. Zonal Managers to be authorized to approve deviations in the operational aspects of the scheme other than pricing.

Concessions in Pricing to be approved by an authority one level higher than the Sanctioning Authority – not below

the rank of Z .M. For Delegation purpose exposure on account of Supplier Credit shall be treated as a Secured Facility, In respect of

Dealer Finance – wherever dedicated working capital facilities are sanctioned the exposure will be treated as a

Secured Facility, wherever reliance is placed on Post dated Cheques / ECS Debit Mandate, The exposure shall be

treated as unsecured facility.

6.All branches authorized to finance under this scheme.

7.Additionally in cases where the Suppliers themselves are manufacturing/services units, the facilities granted are to

be covered under CGFTSI Guarantee Scheme - as these are collateral free advances - to the extent eligible.

H.O. Br. Circulars 98/49 of23.06.04, 100/89 of 01.09.06, 100/130 of 16.11.06, 100/148 of 15.12.06, 102/34 of

29.05.08, 102/67 of 14.07.08,102/185 of 12.01.2009 & 103/12 of 17.04.09 Cir. Letter 2006-07/106 of 27.12.06.

65

SANDIPANI ONE PAGE MANAGER SERIES SME/07 30.11.2013 Loan for Tax Return Preparers (TRP).

Eligibility Unemployed/Partially Employed Graduates all over the Country- who would

possess the Completion Certificate of NIIT and also an ID Card bearing a

unique ID Number issued by the Govt. upon completion of the 9 days

training programme at NIIT.

Max. Finance Rs.0.75 Lakhs.

Purpose To enable the TRP to possess their own laptop computer, heavy duty printer,

and other peripherals, appropriate software, broadband internet connection,

furniture, mobile phone and tax books/technical literature etc. while

providing assistance to self-employed and small businessmen, salaried

employees senior citizens, women and HUFs in filing their tax returns.

Within this overall Rs.75,000/=, the TRP can also print pamphlettes on tax

saving instruments such as NSCs Kisan Vikas Patras etc

Rate of Interest As per prevailing rate of interest structure in terms of HOBC No:104/155

dated 08.03.2011 and subsequent circular issued from time to time

Margin 5% of the overall cost of assets to be acquired.

Repayment 3 years with initial moratorium of 6 months. The EMI for first 6 months

would be 50% of the normal EMI, which would be equally loaded upon the

remaining months’ EMI.

Source of

Repayment

Possibility of tying up with NIIT local center to be explored, if the TRPs’

remuneration, based on tax recoveries, is to be made to local NIIT by the

MOF. The TRPs would get additionally Rs.250/= per return per assessment

year from the tax-payer for the services rendered

Security

Documents

The usual security documents such as DP Note (for demand loans) Hypo.

Document Bearer and Instalment Letters may alone be obtained.

CGTMSE

Cover

Being to a self-employed person under Professional & Self-Employed

category, the loan would be eligible to be covered under the CGTMSE

Guarantee Scheme. 50% of the joining fee would be borne by the Bank to the

debit of P & L. The annual servicing fee would be borne by the TRP. Administration of

the Govt. Scheme The specially set-up Resource Centre in the Directorate of Income Tax under

the Central Board of Direct Taxes.

Miscellaneous The Government has also suggested apart from utilizing the TRPs for tax matters,

the services of the newly recruited and certified TRPs may also be utilized for

popularizing tax saving instruments to the tax payers, especially to small and

marginal tax payers with whom public sector banks normally interact during the

course of their banking and other business.

Application

Form

A simplified application-cum-proposal form is specially designed for the

scheme.( As per Annexure II of HOBC No. 101/196 of 7.2.08)

66

SANDIPANI ONE PAGE MANAGER SERIES SME/08 30.11.2013 Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

With a view to making the traditional industries more productive and competitive and facilitating their sustainable development, the

Central Government announced the setting up of a fund for regeneration of traditional industries

The objectives of the Scheme are:

(i) to develop clusters of traditional industries in various parts of the country over a period of five years commencing 2005-06;

(ii) to make traditional industries more competitive with more market-driven, productive, profitable and sustained employment

for traditional industry artisans and rural entrepreneurs;

(iii) to strengthen the local governance systems of industry clusters, with the active participation of the local stakeholders, so that

they are enabled to undertake development initiatives by themselves; and

(iv) to build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models

of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.

DEFINITIONS

Traditional industry means “an activity which produces marketable products, using locally available raw material and

skills and indigenous technology”.

Traditional industry cluster, in the context of this Scheme, refers to a geographical concentration of around 500

beneficiary families of artisans/micro enterprises, suppliers of raw materials, traders, service providers, etc., located

within one or two revenue sub-divisions in one or more contiguous District(s).

TARGET SECTORS and Potential Beneficiaries will include:

(i) Artisans, workers, machinery makers, raw material providers, entrepreneurs, institutional and private Business Development

Service (BDS) providers engaged in traditional industries and working in selected clusters of Khadi, Coir and Village

Industries, including leather and pottery.

(ii) Artisan guilds, cooperatives, consortiums, networks of enterprises, self-help groups (SHGs), enterprise associations, etc.

(iii) Implementing agencies, field functionaries of Government institutions/organisations and policy makers, directly engaged in

traditional industries.

Under the SFURTI Scheme, more than 500 artisan families will be covered and they will be empowered to earn reasonable

wages and sustainable employment.

CRITERIA for SELECTION of Clusters. The Selection of clusters is based on their geographical concentration of families of artisans/micro enterprises, suppliers

of raw materials, traders, service providers, etc, located within one or two revenue sub-divisions in a District (or in

contiguous Districts).

The potential for growth in production and generation of employment opportunities was considered in selecting clusters

under SFURTI.

The geographical distribution of the clusters throughout the country, with at least 10 per cent located in the North Eastern

region, was kept in view while selecting clusters.

INTERVENTION / SUPPORT MEASURES. These would consist of the following :

(i) Replacement of charkas and looms in Khadi sector

(ii) Setting up of Common Facility Centres .

(iii) Development of new products, new designs for various khadi and village industry products, new / improved packaging

etc.

(iv) Market Promotion activities.

(v) Capacity building activities, such as exposure visits to other clusters and institutions, need based training, support for

establishment of cluster level networks (industry associations) and other need based support.

(vi) Other activities identified by the Implementing Agencies as necessary for the development of the cluster as part of the

diagnostic study and included in the Annual Action Plan for the cluster.

APPROACH As the SFURTI takes a holistic approach for cluster development, the Nodal/Implementing Agencies concerned would

see to it that similar ongoing schemes/ efforts are dovetailed with SFURTI. To supplement and synergize it would be

ensured that the units in the clusters covered under SFURTI avail of benefits under Government programs like the

REGP, PMRY etc., so long as they satisfy the guidelines of those programs.

RELEASE OF FUNDS Funds would be released directly to the Nodal Agencies (KVIC/Coir Board) on receipt of utilization certificates

depending upon actual physical progress. In respect of capital expenditure, Government support by way of Grants to

the extent of 75% of the cost of equipment is available and financial institutions would support the borrowers in

meeting the remaining 25%. Funds for development of clusters will be kept in a separate account by the Nodal Agencies

for audit purposes.

67

SANDIPANI ONE PAGE MANAGER SERIES SME/09 30.11.2013 MNRE Scheme on Development & Deployment of Solar Water Heater Systems

Our Bank has joined the captioned scheme formulated by the Ministry of New & Renewable Energy (MNRE) -

formerly known as Ministry of Non-conventional Energy Sources - to popularize usage of Solar Water Heating

Systems (SWHS) in domestic, industrial and commercial sectors. The said scheme is administered through the Indian

Renewable Energy Development Agency Limited (IREDA). The scheme is operative during 2009-10 also upto

31.03.2011. The salient features of the scheme are:

a. Eligible systems: Solar Water Heaters with both Flat Plate or Evacuated Tubular Collectors (of any size)

b. Borrowers : Any end user such as Individuals, institutions, non- commercial organizations/commercial

organizations (hotels, hospitals, etc.)

c. Loan amount : Upto 85% of the cost of the project. No separate ceilings stipulated.

In order to be eligible for claiming the Interest Subsidy, the equipment has to be purchased from manufacturers/

suppliers approved by the MNES.

The borrowers are free to select vendors of their choice taking into consideration competitive pricing, after sales

service etc.

d. Duration of loan : Repayment starts 3 months after the release of funds to the borrowers. Maximum repayment

period Five years inclusive of this 3 months moratorium period. Repayment would be in Equated Monthly

Installments.

e. Rate of interest : 2% p.a to domestic users,

3% p.a to institutional users not availing accelerated depreciation and

5% p.a to industrial/commercial users availing depreciation.

Bank may charge penal interest as applicable in case of default.

(For ROI please refer B.C. No:104/155 of 08.03.2011 and subsequent circular/s issued from time to time.)

f. Security : The Solar Water Heaters are to be considered as components eligible for financing under our various

lending schemes and therefore shall form part of the concerned scheme (Star Home Loan, Star Mortgage Loan, Term

Loans for Hotels and Term Loans for Industries etc.). In view of this, the security obtained in such Schematic

Lending Accounts would be extended to cover the exposure for acquisition of Solar Water Heaters also. In case

financial assistance is to be extended to persons/organizations for acquiring these units only, then credit appraisal has

to be done by treating such exposure as unsecured.

g. Interest Subsidy : Interest subsidy paid by the MNRE would be the difference between the Bank’s lending rate

(max 10.75% where priority sector lending is not applicable) and the MNES prescribed interest rate calculated on

upfront basis for the entire loan period maximum upto 5 years, discounted at 6.5%. This would be claimed from the

IREDA by the Nodal Branch and remitted to concerned branches. The claim period for subsidy should be within 180

days from the date of installation.

With effect from 01.04.2008, the ceiling of lending rates for easy calculation of MNRE interest subsidy is increased

from 10.75% to 12.50%. This interest subsidy, 12.50% minus prescribed rates (rate of interest as stated above) is paid

upfront to the Bank, discounted at 6.50%. In case where the normal lending rate applicable for such financial

assistance is less than 12.50% then the subsidy would be reduced pro rata.

Service Charges/ Incentives to banks: @ Rs. 200/- per loan account - where subsidy is disbursed – reimbursed to

Banks towards Service/Processing Charges

MNRE has also a scheme for Provision of Capital Subsidy to registered institutions and commercial

establishments that do not avail soft loans for installation of Solar Water Heating Systems.

Capital subsidy equivalent to upfront interest subsidy @Rs.1100/- per sq.m of collector area will be

available to registered institutions and Rs.825/- per sq.m. of collector area to registered commercial

establishments that do not avail soft loans from banks/ FIs under the Interest Subsidy scheme of the

MNRE. BC 101/42 of 19.06.07, 100/36 of 25.05.06, 100/126 of 7.11.06, 100/134 of 20.11.06, 100/135 of 20.11.06 and

102/156 of 04.12.08 Cir.Letter No. 2009-10/44 of 1.06.2009.

68

SANDIPANI ONE PAGE MANAGER SERIES SME 10 30.11.2013 Special Schemes for Financing SRTOs/Equipment Hirers under MOU with

Original Equipment Manufactures (OEM)

Our bank had entered in to tie up arrangement with several OEMs manufacturing commercial vehicles and

Earth Moving Equipments and had signed MOUs with them for being the preferred financier of their

brands. We present below the revamped scheme which will be applicable to all the OEMs with whom we

have tie up arrangement.

i) Each Dealer of Tata Motors and Ashok Leyland will be provided with unique ID and password.

ii) Query from prospective customer, Dealer will upload required details in template/excel sheet.

iii) System will auto generate Application No. and forward the same to prospective customer e-mail

id/mobile alongwith notification will be sent to concerned Branch on its Corporate E-mail ID.

i) Each Dealer of Tata motors and Asdhok Leyland will be provided with unique ID and password.

ii) Queery from prospective customer, Dealer will upload required details in template/ excel

Name of OEM 1. Piaggio Vehicles Pvt Ltd 2. Tata Motors Ltd 3. Asia Motor Works Ltd

4 JCB India Ltd 5. Mahindra Trucks and Buses 6. Ashok Leyland Ltd

7. Bajaj Auto Ltd 8.TVS Motor co. ltd, 9.VE Commercial vehicles ltd.

10.Mahindra & Mahindra Ltd. 11. Force Motor Ltd. 12. Atul Auto Ltd. 13.

Maruti Suzuki India Ltd. Eligibility/Entry

Level Norms For limits upto Rs.100 lacs for SRTO borrowers, scoring sheet is applicable and entry

level is 20 marks (HOBC No:103/05 dt:09/04/2009). For SRTO with limit above Rs.

100 lacs and Equipment Hirers irrespective of limit, appropriate Rating Model to be

used and entry level as per extant guidelines applicable Items to be

Financed Cost of equipment/”on the road” cost of vehicle (to include cost of chassis, body,

tools, insurance for the loan tenure, registration cost, road tax, accessories and AMC Type of Facility Term Loan Appraisal of

Loan The economic viability should be worked out as per prescribed proforma. No detailed

project report is to be obtained for commercial use vehicles.

In case of captive use, there should be adequate cash flow from the existing activity to

service the term loan installments and interests. DSCR Min 1.25 Margin 15% of project cost. Lower margin can be allowed by GM-NBG, GM-HO and above ROI (linked to

Base Rate

(Floating))

Up to Rs. 2 lacs BR Above 2 lacs and upto 20 lacs BR+1.50%

Above 20 lacs and upto 50 lacs BR+2.00% Above 50 lacs and upto 100 lacs BR+3.00%

Fleet owners Limits above 100 lacs BR+2.50%

Tenor Premium Applicable for limits above 10.00 lacs and will be added to above rates (BC

No:105/107 dt:26/09/2011)

For tenor premium, pl. be guided by the interest rate circular Repayment 5-7 years including 3 months moratorium. Repayment holiday of 3 months in a year

during monsoon may be considered within the original tenor of the Term Loan.

Processing and

other charges 0.20% all inclusive (PPC, documentation, Inspection and Mortgage Charges), subject

to minimum Rs.2,000/-. Service Tax to be levied separately. Security Primary: Hypothecation of Vehicle/Equipment.

Registration of Bank’s charge with RTO and in the RC book in case of vehicles

Collateral:

1. Wherever the accounts is covered by CGTMSE guarantee, no third party

guarantee/collateral security to be obtained.

2. Where CGTMSE cover is not available, suitable third party guarantee and/or

collateral security may be obtained. Insurance Assets charged to the Bank to be comprehensively insured with SRCC clause and

Bank’s charge to be mentioned in the insurance policy.

Disbursement Direct to the dealer/supplier by means of DD/Pay Order/RTGS San Authority As per extant delegation of power

Authorized

branches All branches of the Bank.

Turnaround

Time 8 Banking days after receipt of complete information sheet.

69

iii) System will auto generate application no. and forward the same to prospective customer e-mail id/

mobile along with notification will be sent to concerned branch on it’s corporate e-mail ID. iv) Branch should print the same and keep it for record.

v) Branch should carry out CIBIL enquiry/other due diligence and convey “In Principal” approval or

“Reject”.

vi) Alert message will be forwarded to Applicant and Dealer about acceptance or rejection.

vii) In case of acceptance, Branch should immediately contact Applicant for further processing his

request.

viii) No action at Branch within 48 hours, matter will be escalated to Zonal Office.

Action at Branch Level :-

i) Log in regulary to see email received.

ii) Prompt disposal of on-line applications after carrying out CIBIL verification/other due diligence.

iii) Get all formalities completed for accepted application i.e Loan Application, KYC and other

documentation.

iv) Guidelines in respect of financing to SRTOs need to be adhered to.

v) Regular interaction with the Dealers.

Incentive to Dealers

It has been decided to pay incentive to dealers of OEMs with whom Bank has entered in to tie-up

arrangement under MOU. Initially payment of incentive is being offered as festive offer for a limited period

of four months i.e. from 01.09.2013 to 31.12.2013 on experimental basis. Decision on continuation of the

offer will be taken on review of the scheme at the end of implementation period i.e in January 2014.

The detals of the incentive schemes are as under :

Other than Rural

Branches

1% of loan amount Max Rs. 10,000/- (per vehicle – after disbursement of

loan)

Rural Branches 0.75% of loan amount Max Rs. 7,500/- (per vehicle – after disbursement of

loan)

Strictly complied with while making payment of the incentive :

i) To become eligible for payment of incentive, a dealer should perform the following:

a. Procure application and submit the same to Branch. Help the branch in complying various pre

sanction formalities.

b. In case of dealers of Ashok Leyland Ltd and Tata Motors Ltd there is web based auto

application module in which dealers can escalate loan applications of the customers to the

desired branch. They should comply with other pre sanction conditions stipulated by the

branch even after submitting the online applications.

ii) Payment of incentive to the authorized dealer of the vehicle/equipment is to be made only on

completion of documents, disbursement and submission of all necessary documents like

registration, insurance etc to the branch.

iii) Payment of incentive is to be made directly to the authorized dealer by means of Pay Order/Draft

and not to any other agent.

iv) Payment of incentive is to be approved by Branch head only.

v) Payment of incentive is to be made by debiting Branch P/L A/c – “Miscellaneous Charges”.

vi) Cases of walk in business (i.e. without any support/efforts from the dealers as narrated above) are

not eligible for the incentive.

Rating Model :-

Financing under

SRTOs

Branch

Circular/Date

CGTMSE cover

Upto Rs. 100 lacs 103/05 dated

09.04.2009

Micro and Small Enterprises upto limit Rs.100 lacs.

Not willing – usual norms for principal/collateral

security

Above Rs. 100 lacs Normal Rating Model Not Applicable

(Reference : BC No:105/64 dt: 04.07.11, 105/95 dt: 06.09.11, 106/24 dt: 26.04.12, 107/90 dt: 19.08.13 and

107/95 dt: 26.08.13/ 105/106 of 26.09.11 and 106/2 dated 03.04.12)

70

SANDIPANI ONE PAGE MANAGER SERIES SME/ 11 30.11.2013

Web Based Auto Dealers Application Module

Access through our Web site for financing SRTOs/Equipment Hirers under MOU with

Original Equipment Manufacturers (OEMs). At present we have tied up with Tata Motors

and Ashok Leyland for generation of a good number of leads and quick credit dispensation.

Web based having a link with a user friendly template on the home page of our website.

Success of the scheme lies in branches getting adequate number of leads, promptly

attending the on-line applications and proposal sanctioned Zonal/Head Office will monitor

action taken by branch on regular basis.

i) Each Dealer of Tata Motors and Ashok Leyland will be provided with unique ID and password.

ii) Query from prospective customer, Dealer will upload required details in template/excel sheet.

iii) System will auto generate Application No. and forward the same to prospective customer e-mail

id/mobile alongwith notification will be sent to concerned Branch on its Corporate E-mail ID.

iv) Branch should print the same and keep it for record.

v) Branch should carry out CIBIL enquiry/other due diligence and convey “In Principal” approval or

“Reject”.

vi) Alert message will be forwarded to Applicant and Dealer about acceptance or rejection.

vii) In case of acceptance, Branch should immediately contact Applicant for further processing his

request.

viii) No action at Branch within 48 hours, matter will be escalated to Zonal Office.

Action at Branch Level :- i) Log in regulary to see email received.

ii) Prompt disposal of on-line applications after carrying out CIBIL verification/other due diligence.

iii) Get all formalities completed for accepted application i.e Loan Application, KYC and other

documentation.

iv) Guidelines in respect of financing to SRTOs need to be adhered to.

v) Regular interaction with the Dealers.

Rate of Interest : as per BC No:105/95 dated 06.09.2011 and subsequent Head office

guidelines issued from time to time. Tenor premium is waived for Micro and Small enterprises

up to Rs.100 lacs.

Rating Model :-

Financing under

SRTOs

Branch

Circular/Date

CGTMSE cover

Upto Rs. 100 lacs 103/05 dated

09.04.2009

Micro and Small Enterprises upto limit Rs.100 lacs.

Not willing – usual norms for principal/collateral

security

Above Rs. 100 lacs Normal Rating Model Not Applicable

Branch Cir 105/106 of 26.09.2011 and 106/2 dated 03.04.2012

71


STAR SME EDUCATION PLUS

Educational institutions require funds for a host of activities viz Construction / Renovation work of

building & for purchase of computer, lab equipments etc. Through this product their needs may be

catered to suitably.

Target group Educational Institutions viz., Universities , Colleges , Schools

Eligibility The institutions must have got necessary approval from Government / Government

agencies for running the educational institution. Submit 3 years audited financial

statements. Profit making for continuous 2 years. New and upcoming educational

institutions can also be considered in which projections, both financial and non-financial,

must be reasonable and justifiable. Entry level credit rating is SBS 5. No deviation.

Purpose 1. Construction/ Renovation / Repair of building. Approval from all the concerned

authorities must be in place for considering the credit facility. 2. Purchase of Computer,

lab equipment, Furniture & Fixtures, books etc.

Nature of

facility

Term Loan

Quantum of

Loan

Minimum Rs.10 lacs and Maximum Rs.500 lacs

Repayment Maximum 8 years inclusive of initial moratorium of 12 to 18 months. Periodicity of

instalment on the basis of cash flow.

Appraisal of

loan

The proponent should have sufficient cash flow to service both instalment and interest.

DSCR should be minimum 1.25.

Margin Minimum 20%

Rate of

Interest

As per prevailing rate of interest structure in terms of HOBC:104/155 dt. 08.03.2011 and

subsequent circular issued from time to time

Processing

Fee,

Documentation

charges etc

For accounts falling within regulatory

definition of MSME :

In terms of HOBC : 102/218 dt. 20-03-

2009.

For accounts not falling within regulatory

definition of MSME but within the new

definition of SME :

In terms of HOBC: 102/119 dt.19-09-

2008.

Security Primary: Hypothecation of assets, if loan is considered for machineries / equipments.

Mortgage of land & building over which construction is proposed

Collateral: Suitable collateral to be obtained so that minimum Asset Cover of 1.50 is

available. Guarantee of key person/promoter/trustee must be taken.

Insurance Assets charged to the Bank to be comprehensively insured covering various risks

including civil commotions and riots. Separate insurance policy to be obtained for the

mortgaged property.

Due Diligence The bank will conduct its own due diligence (including pre-sanction visit).

San Authority As per extant delegation of power

Documentation IFD 10 where fixed assets are charged to the Bank

IFD 1 where only mortgage is available

L-516

OD-194 where guarantee is proposed

All other supportive documents as per extant guidelines

Authorized

branches

All branches of the Bank.

BC No: 104/129 dated 13.01.2011

72


STAR SME LIQUID PLUS It is a general purpose term loan product , devised to provide necessary liquidity to SME

constituents against their unencumbered immovable property for such purposes also which are

necessary for their sustainable growth viz R& D activity ,marketing and advertisement expenses

etc . Properties already mortgaged to our bank may also be considered upto the extent of their

residual value.

Target group Proprietorship / Partnership firms, Limited Companies falling within the new definition of SME,

engaged in the business for the past 3 years with audited financial statement of accounts

Eligibility The borrower should have known source of funds to pay for the margin and initial

recurring expenses.

Should be profit making for the last 2 years. Entry level credit rating SBS 5. No deviation to be

permitted.

Purpose SME constituents Viz., for R & D activity, marketing and advertisement expenses Purchase of

machineries / equipments, Preliminary expenses etc.

Nature of facility Term Loan.The safety of this advance will substantially depend on cash flow arising out of activity

being financed. Profits generated / anticipated to be generated turns into liquid cash to service the

loan.

Repayment To be repaid in 84 installments within a period of 7 years inclusive of moratorium period of up to

12 months. Interest to be serviced as and when debited.

Appraisal of

loan 50% of unencumbered value of the property under offer or 75% of actual requirement for the

stated purpose which ever is less Minimum : Rs.10 lacs Maximum : Rs.500 lacs Note : Extant

guidelines with regard to valuation of property, title clearance and inspection by two different

officials etc., must be strictly adhered to.

Average DSCR should be minimum 1.25.

Margin As stated above

Rate of interest As per prevailing rate of interest structure in terms of HOBC No:104/155 dated 08.03.2011

and subsequent circular issued from time to time

Processing Fee,

Documentation

charges etc


definition of MSME :In terms of

HOBC : 102/218 dt. 20-03-2009.

For accounts not falling within regulatory definition of

MSME but within the new definition of SME : In terms

of HOBC: 102/119 dt.19-09-2008.

Security i.) Primary: Hypothecation of assets or mortgage of land , if loan is considered for that purpose.

If no assets are created then it should be treated as clean

ii) Collateral: EQM or Registered Mortgage of Residential / commercial property (1st charge)

either of borrower or of guarantor. However following conditions with regard to property under

offer should be fulfilled .1It should not be an agricultural property 2.It should not be a vacant land

Insurance Assets charged to the Bank to be comprehensively insured covering various risks including civil

commotions and riots. Separate insurance policy to be obtained for the mortgaged property



Documentation IFD – 1(where only mortgage is available)

Term Loan Agreement cum Hypothecation Agreement No. IFD -10 (where movable/ fixed asset is

charged) L-516

Deed of Guarantee No.OD-194 where applicable

( Besides, documents required to be obtained as per respective state laws)

Other supporting documents as applicable i.e.

- Identity/Residence proof

- Photograph of borrower/co – borrower and guarantor with their

signatures attested by the their Bankers.

- Balance sheet and profit loss statement of last three years in case of

firms/companies.

- Partnership letter in case of partnership firms.

- Copy of Memorandum and Articles of Association, certificates of

Incorporation and Commencement of business duly attested and copy

of board resolution for a availing the loan in case of limited companies.

BC No:104/129 dated 13.01.2011

73


STAR SME AUTO EXPRESS

It is meant for those existing SME units which need vehicle for delivering their own products /

services to their clientele. Surplus generated out of existing business operation would form the

basis for appraisal of loan.

Target group All existing SME units, as per new definition, run by Individuals, Proprietorship / Partnership firms, Limited

Company, Trust, Society

Eligibility The unit / borrower should have sufficient net worth/source of funds to pay for the margin and initial

recurring expenses. Conduct of the existing account must have been satisfactory. Entry level credit rating

should be SBS 5.

Purpose To purchase transport vehicles for delivering their products / Services. Educational institutions also eligible for

transport vehicles for providing transportation services to students / faculty / staff. Only new vehicles will be

considered. Second hand vehicles not permitted under the scheme.

Items Chassis + Body building costs + registration , insurance , road tax, accessories AMC etc.

facility Term Loan

Repayment To be repaid in 84 equated monthly installments inclusive of moratorium of maximum 3 months.

Appraisal of

loan

The economic viability should be worked out as per the overall income generated and surplus for loan

installment / interest payment from the existing business operation of the unit. Average DSCR should be

minimum 1.25.

Marg. and

ACR

Margin will be 20% of the cost of vehicle on road (chassis, body building and initial insurance,

registration ,Road Tax & AMC).

Rate of

Interest

The rate of interest shall be applicable to existing credit rating of the account as well as aggregate credit

limit arrived at after clubbing proposed finance for vehicle .As per prevailing rate of interest structure in

terms of HOBC:104/155 dt. 08.03.2011 and subsequent circular issued from time to time

Processing

Fee, Docu.

charges

For accounts falling within regulatory definition of

MSME :In terms of HOBC : 102/218 dt. 20-03-2009.

For accounts not falling within regulatory definition

of MSME but within the new definition of SME :In

terms of HOBC: 102/119 dt.19-09-2008.

Security i.) Primary: Hypothecation of the vehicle purchased out of the proceeds of the loan. Bank’s name as charge

holder to be got entered in the books of the RTO and also the Registration certificate.

ii) Collateral: Micro and Small (Services Enterprises), can be sanctioned collateral free term loan up to Rs. 100

lakhs, subject to coverage under guarantee provided by Credit Guarantee Fund Trust for Micro & Small

Enterprises.(CGTMSE) For loans above Rs 100 lakhs , suitable collateral security to be obtained depending

upon the merits of individual cases.

Insurance Comprehensive insurance policy covering various risks including civil commotions and riots should be

arranged. Vehicles to be insured in the name of the borrower only but bank’s interest to be got noted in the

insurance policy.

Due Diligen. The bank will conduct its own due diligence (including pre-sanction visit).

San Authority As per the bank’s scheme of delegation

Documentatio

n

Hypothecation Agreement no. CHA2/CBD 13

Deed of Guarantee No.OD-194 ( If applicable )

Blank Transfer forms duly signed by the borrower to be kept on record.- Form 29 and 30.

Undertaking to inform Engine No. Chassis No.

Letter addressed to Insurance Co. duly signed by the borrower authorizing them to pay claims directly to the

Bank.

Stamped letter signed by Body Builder. (where applicable) that the vehicle is in his custody for Body Building.



- Photograph of borrower/co borrower and guarantor with their signatures attested by their Bankers.

- Balance sheet and profit loss statement of last two years in case of firms/companies.




of board resolution for a availing the loan in case of limited companies.

- For borrowers already having vehicles, copy of Registration Certificate and

- PDCs to be obtained and kept on record.

Disbursement Disbursement to be made direct to the suppliers by means of an account payee draft/pay order and

acknowledgement to be obtained.

Remarks BC No:104/129 dated 13.01.2011

74


STAR SME CONTRACTOR CREDIT LINE

This product is tailor made for all types of contractors who maintain Audited Financial Statements.

Appraisal part has been simplified. A Line Of Credit may be given to contractors on the basis of

last two years average turnover; there will be a commitment charge on the unutilized portion of the

line of credit.

Target group Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc

established as Proprietorship / Partnership firms, Limited Co

Eligibility Engaged in the business line at least for the last 3 years. Audited Financial Statements. Entry

level credit rating should be SBS 5. No deviation .

Purpose For meeting working capital needs

Nature of facility Line of Credit by way of fund/non fund based working capital limit, Bank Guarantee/ letters

of credit

Quantum of Limit Minimum Rs.10 lacs and Maximum Rs.500 lacs

Appraisal of loan 30% of last two years average turnover. 2/3rd

for Fund Based facility and 1/3rd

for Non-fund

based facility.

Margin Minimum 20% for fund based facility. Though the limit will be treated as unsecured,

contractors will have receivables which should be charged to the Bank and a margin of 20%

maintained thereagainst.

Minimum 15% cash margin for non-fund based facility

Rate of Interest As per prevailing rate of interest structure in terms of HOBC:104/155 dt. 08.03.2011 and

subsequent circular issued from time to time

Processing Fee,

Documentation

charges,

Commitment charges

etc


definition of MSME :In terms of HOBC :

102/218 dt. 20-03-2009. (MSME accounts

within regulatory definition are exempt from

commitment charges)

For accounts not falling within regulatory

definition of MSME but within the new

definition of SME :

In terms of HOBC: 102/119 dt.19-09-2008.

Security Primary: First charge on the unencumbered assets both current and fixed assets.Margin on

non fund based limits.

Collateral: Suitable collateral to be obtained so that asset cover of 1.50 is maintained.



Documentation To be obtained according to the release of fund covering specific facility

For Fund based For BG - For LC

IFD -10, D.P Note LG-12 Application for Documentary Credit

Bearer letter LG-13

L-516 LG -15 Counter Guarantee

OD – 194

( Besides, documents required to be obtained as per respective state laws)



- Photograph of borrower/co – borrower and guarantor with their signatures

attested by the their Bankers.

- Balance sheet and profit loss statement of last three years in case of

firms/companies.




of board resolution for availing the loan in case of limited companies.

BC No:104/129 dated 13.01.2011

75


Empanelment of External Rating Agency M/s Brickwork Ratings for existing

/potential MSME customers

On behest of MSME ministry NSIC has recognized Brickwork Ratings as an

agency for undertaking the rating of MSMEs .Earlier our Bank have already entered

MOU with SMERA, ONICRA, D&B etc. Now we have entered into tie up with M/s

Brickwork Rating Agency to do the rating exercise for MSME customers. Ref BC:

105/116 Dt 08.10.2011

BC 105/120 Dt 13.10.2011

Rectification of Data Input in CBS Branches , Supervisory Concern in RBI AFI

– 2011 RBI pointed out wrong data entry in MSME A/cs .On a sample basis RBI has given list of A/cs

with outstanding of Rs.3600.0 crore. Branches are required to rectify data input as per MSME Act

2006/RBI guidelines.

BC 105/121 Dt 12.10.2011

Adherence to the time limit for disposal of loan applications under MSEs

Branches are required for disposal of loan applications as per guidelines framed by Bankers code

of commitment to MSEs formulated by BCSBI and adopted by our Bank. As per citizen’s charter

following time limits may be observed .

a.Approvals to be granted by BMs within 30days of receipt of application.

b.Approval to be granted by the Regional/ Zonal Manager within 45 days of receipt of application.

BCSBI official may undertake visit to branches.

Ref HO BC 101/70 dt 23.07.2007

BC 105/122 dt 13.10.2011

Adjustment of Margin Money Subsidy in PMEGP

As per para 11(II)m of PMEGP guidelines the margin money subsidy is credited to the borrower

loan a/cs after 3 yrs from the date of Ist disbursement .Also para 13 provides for 100% physical

verification of each of the unit set up under PMEGP as regard s their actual establishment and

working status to be done by KVIC. Adjustment of TDRs would be allowed by KVIC only in case

of PMEGP units where physical verification has confirmed that the units have been found to be

actually established and are working. No intt. is to be charged on the loan portion for the

corresponding amt. of TDR .Para 8.4 of the guidelines provides that working capital limit should

be utilized in such a way that at one point of time within three yrs of lock in period of margin

money , the cash credit availment touches 100%of limit of the sanctioned cash credit and never

falls 75% of the said limit .If it does not touch 100% limit , proportionate amount of subsidy is to

be recovered by bank and refunded to KVIC at the end of 3rd

yr .The cash credit has to be

determined on the basis of the average level of daily cash credit availment by the beneficiary

during the lock in period of three yrs.

HO Cir Letter 2011-12/189 dt 25.01.2012 Ref Master Cir BC 102/10 10.04.2008 Credit Linked Capital Subsidy. Inclusion of Clause in Sanction Letter

76


SCHEME FOR FINANCING SERVICE SECTOR – BOI STAR VYAPAR

Eligibility All Enterprises engaged in traiding with original investment in equipment as

defined under MSMED Act,2006.Satisfactory experience of business ,

having financial statements of at least two precedings years.

1) Proprietorship concern,

2) partnership Firms,

3) Private Ltd. Co.

4) Society

Max. Finance Minimum Rs. 10.00lakh, Maximum Rs. 200.00 lakh

Purpose Financing of stock and book debts.

Rate of Interest ROI is to be linked with market value of collateral OF AGGREGATE

LIMIT security as under;-

MARKET VALUE OF SECURITY PROPOSED RATE OF INTEREST

110% to 149% BR +2.50% ie 13.00%

150% to 175% BR + 2.25% ie 12.75%

More than 175% BR + 2.00% ie 12.50%

Margin 25% Against Stock & Book Debt

Nature of

Facility

Cash Credit

Method of

Assessment

Need based combined limit ( stock & book debts) for working capital

requirement be fixed as per Nayak Committee recommendations ie 20% of

sales turn over.

Security 1) Primary Security- Hypothecation of stock & book debts ( not older than

4 months)

2) Collaterall – Minimum 110% of the loan amount.

Due Deligence Due diligence as per extant guidelines to be undertaken, CIBIL/ RBI

defaulters’ list/ ECGC SAL to be verified.

Insurance All assets charged to Bank Principal/ Collaterall security to be adequately

insured.

Miscellaneous 1) Independent inspection of business/ factory premises should be carried out

periodically. Bank’s name displaying the business and security charged to the bank

should be prominently displayed.

2) Statement of stock/bookdebt/MSOD should be obtained and scrutinized.

3) No TOL/ TOD to be considered during the six months period from the date of

first disbursement.

Application

Form

Application MSE 1 to be obtained.

Reference –BC No. 106/127 Dt. 17.11.2012 and 2012-13/223 Dt 6.12.2012

77


STAR WEAVER CREDIT CARD (STAR WCC) SCHEME

Eligibility 1)All weavers and ancillary workers involved in weaving activities.

2)Preferance would be given to weavers identified under the Thired Cencus

of Handloom weavers conducted by Development Commissioner (

Handloom) Ministry of Textile as well as to weavers identified by the State

Govt.

3)Thurst in financing would be on clusters of weavers and ancillary workers.

4)All existing weaver borrowers of the bank enjoying credit facility and

having satisfactory dealing.

Max. Finance Need based, Maximum Rs. 2.00 lakh

Purpose Financing of stock and to purchase of equipments, machinery, tools etc.

Rate of Interest Sanctioned Limit PROPOSED RATE OF INTEREST

Limit Up to Rs. 50000.00 BR +0.0% ie 10.50%

Above Rs.500000 to Rs.2.00 lakh BR +1.00% ie 11.50%

Margin Upto Rs.25000.00 NIL

Above Rs. 25000 upto Rs.2.00 lakh 20%

Nature of

Facility

Cash Credit and Term Loan

Method of

Assessment

Need based combined limit for working capital requirement and Term Loan

be fixed as per Nayak Committee recommendations ie 20% of sales turn

over.

Security 1) Primary Security- Hypothecation of stock & Equipments , Machinery ,

Tools.

2) Collaterall –No collateral security, to be covered under CGTMSE.

Due Deligence Due diligence as per extant guidelines to be undertaken, CIBIL/ RBI

defaulters’ list to be verified.

Insurance All assets charged to Bank to be adequately insured.

Miscellaneous 1) Independent inspection of business/ factory premises should be carried out

periodically. Bank’s name displaying the business and security charged to the bank

should be prominently displayed.

2) Statement of stock should be obtained and scrutinized.

3) No TOL/ TOD to be considered during the six months period from the date of

first disbursement.

4)SWCC would normally be valid for a period of 3 years subject to annual review.

Classification of

Advance

Limit sanctioned under the scheme shall be classified as Micro Enterprises under

MSE advances and following codes will be filled in the system

Occupation Code 17105(Handloom Weavers)

Scheme Code 361(Weavers Credit Card)

Referance No .BC No. 106/128 Dt 20.11.2012

78

SANDIPANI ONE PAGE MANAGER SERIES SME/19 30.11.2013. SCHEME FOR FINANCING VARIOUS FINANCIAL REQUIREMENTS OF DOCTORS

(STAR DOCTORs PLUS)

Objective: To meet the financial requirements of doctors.

Eligibility Individuals/ Firms/ companies/ Trusts engaged in providing medical/ pathological

/ diagnostic services where minimum 51% of shareholding/ stake is held by

qualified doctors.

Proponents should be professionally qualified in the age group of 25 to 60 years

with minimum 3 years experience in any branch of medicine with min.

qualifications of degree from a recognized university:

1) MBBS

2) BHMS

3) BDS

Max. Finance WC(clean) Rs.50.00 lacs, Vehicle loan: Rs.100.00 lacs

1. Business premises/ Equipment Loan: Equipment financing by import of

machinery through LC to be permitted.

2. Vehicle Loan: For purchase of Ambulance, van and other utility vehicle as per

requirement of project subject to a cap of Rs.100 lac.

3. WC (clean): To be assessed as per project subject to cap of Rs50.00 lac

Purpose 1.For acquiring premises on ownership basis required for running clinics/ nursing

home/ pathological labs

2.Expansion/ Renovation/modernization of existing premises/ clinic/ nursing

home

3.For purchase of Furniture & fixture, furnishing, renovating existing clinics

4. For purchase of medical equipments for clinics/ hospitals

5. For purchase of Ambulance/ Utility vehicles

6. Working Capital Requirements for meeting recurring expenses, stock of

medicines/ consummables

Rate of Interest Term Loan upto 5 years: 1.50% above base rate(including tenor premium)

Term Loan above 5 years: 1.75 % above base rate(including tenor premium)

For Vehicle Loan 1.50% over Base Rate (including tenor premium)

For WC (clean) 1.75% Over Base Rate, presently 12.00 %

Margin 25% for acquisition of premises and/ or expansion/renovation/ modernization of

existing premises

15% for purchase of equipment/ machinery

15% on cost of vehicle/ ambulance

NIL in case of WC (clean)

Nature of Facility For business premises/equipment loan: Term loan repayable in 5-10 years

depending on purpose and viability

Vehicle Loan; Term loan repayable in 5-7 years with moratorium of 1-2 months.

WC (clean): CC/ OD on clean basis.

Processing fees

and Documentation

charges

Processing Charges: 50% of applicable charges plus service tax for all facilities

Valuation/ Title search/ Stamp duty/ CERSAI/ Registration charges as per actual

Security 1) Primary Security- Hypothecation of Assets acquired out of Bank finance.

Equitable Mortgage of Property in case of construction/ acquisition/ renovation of

Land & Building

2) Collaterall – Loans upto Rs100.00 lac to be covered under CGTMSE

guarantee scheme.

Loans above Rs.1.00 crore upto Rs.10.00 crore – no collateral security to be

obtained.

For loans above Rs 10.00 crore: Minimum 20 % collaterals to be obtained.

3) Guarantee; Personal Guarantee of Promoters/ directors/ Trustees etc.

a) The CGTMSE coverage for loans uipto Rs100 lakh is mandatory

b)Premium of CGTMSE Guarantee and Annual fee to be borne as per present

guidelines.The CGTMSE coverage should be for the entire tenure of the loan

c) The Guarantee coverage under CGTMSE will be available as per the terms,

eligibility criteria and premium defined under the scheme.

79

Due Deligence Due diligence as per extant guidelines to be undertaken, CIBIL/ RBI defaulters’

list/ ECGC SAL to be verified.

Insurance All assets charged to Bank Principal/ Collaterall security to be adequately insured.

Sanctioning

Powers:

As per existing delegation of Powers based on credit rating (HOBC 106/141 dated

18.12.2012 and circular issued from time to time)

Devations: To be permitted by the next higher authority

Concessions: As various concessions are already factored in ROI, no further

concessions to be permitted.

Other Benefita 1.No Processing fee for Retail loans to spouse

2. Free Debit Card

3. Free Internet Banking

4. 50% discount on maintenance charge of D- Mat account

5. There is no prepayment penalty if the loan is adjusted by the borrower from his

own verifiable legitimate sources.

DOCUMENTATI

ON

Prescribed security documents to be obtained and charge to be registered with

appropriate statutory authority as the case amy be. In case of immovable

properties, mortgage charge to be created and charge registered with CERSAI.

Monitoring &

Follow up

Independent inspection of business premises should be carried out periodically.

Bank’s name displaying the business is financed by the branch and securities

charged to the bank should be prominently displayed.

General

Guidelines

1. Credit Proposal to mandatorily indicate original investment in “equipment”

and sector code, Activity code and Special Category code

2. Codes should be entered in the Finacle system while opening the account

after sanction of the proposal

3. Credit rating as per extant guidelines.

4. Takeover of accounts to be considered without any deviation i.e., all

parameters to be complied.

For further references on sanction of Personal loans and Vehicle Loans under BOI Star Doctor-

Plus Scheme: Please refer to Annexure –II enclosed with the Branch Circular No.107/154 dated

06.11.2013 issued by SBU department of Head Office.

80

SANDIPANI ONE PAGE MANAGER SERIES OPS/01 30-11-2013 LENDING TO PRIORITY SECTOR

Targets/Sub-targets for Priority sector

Categories Domestic Commercial banks/ Foreign banks with

20 and above branches

Foreign banks

with <20 Total Priority Sector

Advances 40% # 32% #

Total Agricultural

Advances

18% # (Indirect lending in excess of 4.5% will not

be reckoned for computing performance under 18%.

However in excess of 4.5% will be reckoned under

overall priority sector.

No

Specific

Target.

Forms

Part

of

total

Priority

Sector

Target

Micro enterprises

within MSE

(i)40% of total advances to MSE should goto Micro

(Mfg) having investment in P&M up to Rs. 10 lacs

and Micro (Service) having investment in equipment

up to Rs. 4 lacs

(ii) 20% of total advances to MSE should go to

Micro (Mfg) having investment in P&M Rs. 10-25

lacs and Micro (Service) having investment in

equipment Rs. 4-10 lacs

Export credit Export credit to eligible activities under agriculture

and MSE will be reckoned for priority sector lending

under respective categories.

Adv to Weaker sections 10% #

# ANBC or Credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher

For foreign banks with 20 and above branches, priority sector targets and sub targets have to be

achieved within a maximum period of five years starting from April 1, 2013 and ending on March

31, 2018 as per action plans submitted by them and as approved by RBI.

The current year’s targets for priority sectors and sub-targets will be computed based on Adjusted

Net Bank Credit (ANBC) or Credit equivalent to Off-Balance Sheet Exposures of preceding

March 31st. The outstanding priority sector loans as on March 31

st of the current year will be

reckoned for achievement of priority sector targets and sub targets. For the purpose of priority

sector lending, ANBC denotes the outstanding Bank Credit in India[(As prescribed in item No. VI

of form ‘A’ (Special Return as on March 31st) u/s 42(2) of the RBI Act, 1934] minus bills

rediscounted with RBI and other approved Financial Institutions plus permitted non SLR

bonds/debentures in Held to Maturity category plus other investments eligible to be treated as part

of priority sector lending ( eg. Investments in securitized assets). Deposits placed by banks with

NABARD/SIDBI/NHB, 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 reckoned for ANBC computation.

AGRICULTURE - Direct Finance

Finance to individual farmers {including Self Help Groups (SHGs) or joint liability Groups (JLGs), i.e.

groups of individual farmers, provided by banks maintain disaggregated data on such loans, directly

engaged in Agriculture and Allied Activities, viz dairy, fishery, animal husbandry, poultry, bee-keeping

and sericulture (up to cocoon stage)}

- (a) Short-term loans for raising crops i.e. crop loans

- (b) Medium & Long Term loans to farmers for agricultural and allied activities

- (c) Loans to farmers for pre and post harvest activities,

- (d) Loans to farmers up to Rs. 50 lakh against pledge/hypothecation of agricultural produce (including

warehouse receipts) for a period not exceeding 12 months, irrespective of whether the farmers were

given crop loans for raising the produce or not

- (e)Loans to small and marginal farmers for purchase of land for agricultural purposes.

- (f) Loans to distressed farmers indebted to non-institutional lenders,

- (g)Bank loans to PACS, FSS and LAMPS managed and controlled by such banks for on lending to

farmers for agricultural and allied activities.

- (h) Loans to farmers under Kisan Credit Card Scheme.

- (i) Export credit to farmers for exporting their own farm produce.

- Loans to corporate including farmers’ producer companies of individual farmers, partnership firms and co-

operatives of farmers directly engaged in Agriculture and Allied Activities, viz dairy, fishery, animal

husbandry, poultry, bee-keeping and sericulture (up to cocoon stage) uo to an aggregate limit of Rs. 2

Crore per borrower for specified activities.

81

- AGRICULTRE - Indirect Finance Loans to corporate including farmers’ producer companies of individual farmers, partnership firms and co-

operatives of farmers directly engaged in Agriculture and Allied Activities, viz dairy, fishery, animal

husbandry, poultry, bee-keeping and sericulture (up to cocoon stage) Limit per borrower is more than Rs. 2

Crore .

Other Indirect Agricultural Loans

- Loans up to Rs. 5 crore per borrower to dealers/ sellers of fertilizers, pesticides, seeds, cattle feed, poultry

feed, agricultural implements and other inputs.

- Loans for setting up of Agriclinics and Agribusiness Centers

- Loans up to Rs. 5 crore to cooperative societies of farmers for disposing of the produce of members.

- Loans to Custom Service Units managed by individuals, institutions or organizations who maintain a fleet

of tractors, bulldozers, well-boring equipment, threshers, combines, etc and undertake farm work for

farmers on contract basis (if the storage unit is a micro or small enterprises, such loans will be

classified under loans to Micro and Small Enterprises sector)

- Loans to MFIs for on-lending to farmers for agricultural and allied activities as per specified conditions

- Loans sanctioned to NGOs, which are SHG Promoting Institutions, for on lending to members of SHGs

under SHG-Bank Linkage Programme for agriculture and allied activities. The all inclusive interest

charged by the NGO/SHG promoting entity should not exceed the Base Rate of the lending bank plus

eight p.a.

- Loans sanctioned to RRBs for on lending to agriculture and allied activities.

Micro and small Enterprises /Indirect Finance

Manufacturing Sector

Enterprises Investment in plant & machinery

Micro Up to Twenty Five Lakh Rupees

Small More than Rupees Twenty Five Lakh and up to Ruees Five

Crores

Services Sector Investment in equipment

Micro Up to Rupees Ten Lakh

Small More than Rupees Ten Lakh and up to Rupees Two Crores

Direct Finance

- Manufacturing Enterprises

- Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the

units satisfy investments criteria

- Banks loans up to Rs. 5 Crore per unit to Micro and Small Enterprises engaged in providing or rendering

of services and defined in terms of investment in equipment under MSMED Act, 2006

- Export credit to MSE units for exporting of goods/services produced/rendered by them

- Khadi and Village Industries Sector – irrespective of their size of operations, location and amount of

original investment in plant and machinery. Such loans will be eligible for classification under the sub-

target of 60% prescribed for micro enterprises segment under priority sector.

Indirect Finance

- Loans to persons involved in assisting the decentralized sector in the supply of inputs and marketing of

outputs of artisans, village and cottage industries.

- Loans to cooperatives of producers in the decentralized sector viz artisians village and cottage industries.

- Loans sanctioned by banks to MFI for on lending to MSE sector as per specified conditions.

Education

- Individual – Studies in India – Rs.10 lakh; Abroad – Rs.20 lakh

Housing

- Loans to individuals up to Rs. 25 lakh in metropolitan centers with populations above ten lakh and Rs. 15

lakh in other centers for purchase/construction of a dwelling unit per family excluding loans sanctioned

to bank’s own employees.

- Repairs – Rural and Semi urban – Up to Rs.2 lakh/ Urban and Metro – upto Rs.5 lakhs

- Assistance given to any Govt agency for construction of dwelling units or for slum clearance and

rehabilitation of slum dwellers subject to ceiling of Rs. 10 lakh per dwelling units.

- For projects exclusively for the purpose of construction of houses only to economically weaker sections

and low income goups, the total cost of which do not exceed Rs. 10 lakh per dwelling unit.

82

For the purpose of identifying the economically weaker sections and low income groups, the

family income limit of Rs. 1.2 lakh per annum irrespective of the location. - Housing Finance Companies approved by NHB for the purpose of refinance, for on-lending for the

purpose of purchase/construction/reconstruction of individual dwelling units or for slum clearance and

rehabilitation of slum dwellers or for slum clearance and rehabilitation of slum dwellers, subject to an

aggregate loan limit of Rs. 10 lakh per borrower

Export Credit

- Export credit extended by foreign banks with less than 20 branches will be reckoned for priority sector

target achievement.

Others

- Loans up to Rs. 50,000/- per borrower provided directly by banks to individuals and their SHG/JLG

provided the borrower’s household annual income in rural areas not exceeding Rs. 60,000/- and for

non-rural areas not exceeding Rs.1,20,000/-.

- Loans to distressed persons – Rs. 50,000/- per borrower to repay their debt to non-institutional lenders.

- Loans outstanding under loans for general purposes under General Credit Cards (GCC). If the loans under

GCC are sanctioned to Micro and Small Enterprises, such loans should be classified under respective

categories of Micro and Small Enterprises.

- Overdrafts, up to Rs. 50,000 /- per a/c, granted against basic banking/savings accounts provided the

borrowers household annual income in rural areas does not exceed Rs. 60,000 and for non rural areas it

should not exceed Rs. 1,20,000/-.

- Loans sanctioned to State Sponsored Organizations for Scheduled Casts/Scheduled Tribes for the specific

purpose of purchase and supply of inputs to and/or the marketing of the outputs of the beneficiaries of

these organizations.

- Loans sanctioned by banks directly to individuals for setting up off-grid solar and other off grid renewable

energy solutions for households.

Weaker Sections

(a) Small and marginal farmers;

(b) Artisans, village and cottage industries where individual credit limits do not exceed Rs. 50,000/-

(c) Beneficiaries of SGSY (now NRLM)

(d) SC/ST

(e) Differential Rate of Interest (DRI)

(f) SJSRY

(g) Beneficiaries under the scheme for Rehabilitation of Manual Scavengers (SRMS)

(h) SHG

(i) Loans to distressed farmers indebted to non institutional lenders

(j) Loans to distressed persons other than farmers not exceeding Rs. 50,000/- per borrower to prepay their

debt to non institutional lenders

(k) Loans to individual women beneficiaries up to Rs. 50,000 /- per borrower

(l) Loans sanctioned under (a) to (k) above to persons from minority communities as may be notified by

Government of India from time to time. In States, where one of the minority communities notified is, in

fact, in majority, item (l) will cover only the other notified minorities. These States/UT are J&K,

Punjab, Meghalaya, Nagaland and Lakshadweep

Bank loans to MFIs for on-lending

Bank credit to MFIs extended on, or after, April 1, 2011 for on-lending to individuals and also to

members of SHGs / JLGs will be eligible for categorization as priority sector advance under

respective categories viz., agriculture, micro and small enterprise, and ‘others’, as indirect finance,

provided not less than 85% of total assets of MFI (other than cash, balances with banks and financial

institutions, government securities and money market instruments) are in the nature of “qualifying

assets”. In addition, aggregate amount of loan, extended for income generating activity, is not less

than 70% of total loans given by MFIs.

“Qualifying Assets” means a loan disbursed by MFI, which satisfy the following criteria :-

(i) Household income (a) Rural – Rs. 60,000/- (b) Non-rural – Rs. 1,20,000/-

(ii) Loan amount (a) First cycle – Rs. 35,000/- (b) Subsequent cycles – Rs. 50,000/-

(iii) Total indebtedness of the borrower does not exceed Rs. 50,000/-

(iv) Tenure of loan is not less than 24 months when loan amount exceeds Rs. 15,000/- with right to

borrower of prepayment without penalty.

(v) Collateral - No

(vi) Loan repayable – weekly/fortnightly/monthly installments as per choice of the borrower.

83

Penalties for Non Achievement of Priority Sector Lending Targets/Sub-targets - All scheduled commercial banks having shortfall in lending to priority sector target/sub target shall be

allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) established

with NABARD and other funds with NABARD/NHB/SIDBI/other financial institutions, as may be

decided by RBI from time to time.

- Achievement levels of priority sector lending as on the March 31st will be taken into account.

- The interest rates on banks’ contribution shall be fixed by RBI every year

Common guidelines for Priority Sector Advances

Processing of

Application

RBI Guidelines

Rate of Interest As per DBOD directives issued from time to time

Service Charges No loan related and adhoc service charges/inspection charges

should be levied on priority sector loans up to Rs. 25,000/-

Receipt, Sanction/

Rejection/

Disbursement Register

A register/electronic record, wherein the date of receipt,

sanction/reject/disbursement with reasons thereof, etc., should be

recorded. The register/electronic record should be made available to

all inspecting agencies.

Acknowledgement of

Loan Applications

Loan applications received under priority sector loans.

Communication of its decision in writing to the applicants within a

time limit prescribed by Bank Board.

Definitions :

On-lending : Loans sanctioned by banks to eligible intermediaries for onward lending only for creation of

priority sector assets. The average maturity of priority sector assets thus created should be co-terminus with

maturity of the bank loan.

Small and Marginal Farmers : Farmers with landholding of up to 1 hectare is considered as Marginal

farmers. Farmers with a landholding of more than 1 hectare but less than 2 hectares are considered as Small

farmers. For the purpose of priority sector loans ‘small and marginal farmers’ include landless agricultural

labourers, tenant farmers, oral lessees and share croppers, whose share of landholding is within above limits

prescribed for “Small and Marginal Farmer”.

Clarifications :

(i) Contingent liabilities /off balance sheet items do not form part of priority sector achievement.

(ii) Off balance sheet interbank exposure are excluded for computing Credit Equivalent of Off Balance

Sheet Exposures for the priority sector targets.

(iii) The term “all inclusive interest” includes interest (effective annual interest), processing fees and

service charges.

(iv) Banks should ensure that loans extended under priority sector are for approved purposes and the

end use is continuously monitored. The banks should put in place proper internal controls and

systems in this regard.

(Branch Circular No:107/76 dated 22/07/2013)

84

SANDIPANI ONE PAGE MANAGER SERIES OPS/02 30-11-2013 BOI - ARTISANS CREDIT CARD (ACC)

i) Purpose: To provide adequate and timely assistance to artisans to meet their credit requirements – both

investment needs as well as working capital. The scheme would be applicable both in rural and urban areas.

ii) Eligibility:

All existing artisan borrowers of the bank enjoying credit facilities upto Rs.2lac and having

satisfactory dealings with the bank will be eligible.

All artisans involved in production/manufacturing process would also be eligible. Preference would

be given to artisans registered with Development Commissioner (Handicraft).

Thrust in financing should be on cluster of artisans and artisans who have joined to form Self –Help

Groups (SHGs)

Beneficiaries of other Govt. Sponsored Schemes will not be eligible for coverage under ACC

Scheme.

iii) Issue of Cards: The artisans under the Scheme will be issued with a photo card indicating sanctioned

limit and validity period of credit facility. They will also be issued a pass book incorporating name, address,

borrowing limit, validity period etc. and for recording transactions on an on-going basis.

iv) Assessment of Credit Limit:

The credit limit would be fixed based on assessment of working capital requirements as well as cost

of tools and equipments required for carrying out manufacturing process.

While evaluating working capital requirements, the norms adopted as per Nayak Committee

recommendations (20% of anticipated turnover) will be kept in view.

v) Maximum Limit: Maximum up to Rs.2 lakh per borrower.

vi) Security: Primary Security – Assets financed by the bank would be taken under hypothecation

Collateral Security – Nil.

vii) Margin: No margin for limit up to Rs.25,000/-For limits above Rs.25,000/- margin may be stipulated

at 20-25%.

viii) Validity: Limit sanctioned under ACC will be valid for 3 years. However, yearly review should be

done.

ix) Insurance: Insurance cover may not be insisted for limits up to Rs.25,000/-

x) Operations: - Accounts under ACC be maintained in a separate ledger.

- Cheque books be issued and marked as ‘ACC Account’

xi) Rate of Interest: :

Please refer Branch Circular No:104/155 of 08.03.2011 and subsequent circular/s issued from time to

time.

xii) Documentation:

Necessary security documents to be obtained depending upon the primary security available in the account.

xiii) Monitoring: No stock statements to be submitted by ACC account holders. Monitoring in the account

is to be ensured through quarterly/half yearly inspection. No financial statement is required to be submitted

by ACC account holders at the time of annual review.

xiv) Other Procedural Aspects: 1. All existing customers who meet the eligibility criteria may be brought under the ACC Scheme.

2. Cost of photo for issuance of ACC be borne by branches.

Depending upon nature of operations of artisans, drawings in cash may be permitted through withdrawal

slips/cheques accompanied by pass book.

For units newly set up, disbursement may be made in phases based on progress in implementation of the

project/activity.

For investment loans, branches should give sufficient gestation period and appropriately stagger the

repayment.

3. Branches should maintain a register for issuance of cards under the scheme.Achievement under BOI-Artisans

Credit Card Scheme should be reported along with KCC/LUCC etc. return to Zonal Office/Head Office.

xv) Insurance cover: Artisan borrowers who are registered with Development Commissioner (Handicrafts), would

be eligible for coverage under group insurance scheme and the premium paid by the Government and the

artisan borrowers in the ratio of 60:40 respectively or as mutually agreed between Office of Development

Commissioner (Handicrafts) and Insurance Company.

Ref.:- HOBC No.100/162 Dated 15.01.2007

85

SANDIPANI ONE PAGE MANAGER SERIES ADV-OPS/03 30-11-2013

DHANVANTARI SUVIDHA SCHEME

Eligibility Qualified Medical Practitioners of all Disciplines

1. Having either Degree or Diploma recognized by Govt.

2. Registered with respective Medical council and

3. Who conduct professional practice on their own with or without full/part time employment.

Eligibility would be determined based on the scoring model of Star Personal Loans appended below as

Annexure B for ready reference (Min 20 marks to be scored for consideration)

Purpose of

loan

1. To extend financial support for setting-up new clinics

2. Purchase of equipments or for Expansion Modernization, Up-gradation of existing clinics

(This scheme is formulated only for purchase of equipment. Facilities for investment in buildings for

setting up of hospital and/or expansion of existing hospital building requires to be evaluated on case to

case basis as per extant guidelines/ policies applicable to Bank’s exposure to Real Estate sector.

(101/65 of 21.07.2007.)

3. Purchase of one new/second hand (not more than 3years old from the date of first registration) vehicle.

4. Purchase of Ambulance/Mobile Clinic in the case of Private Medical Veterans Clinics, hospitals or

Maternity Home owned or personally ran by Medical Practitioners.

5. Cost of acquisition of vehicle as above shall be within the overall ceiling prescribed for this scheme. [Medi Mobile Scheme has now been merged with this scheme]

Type of

Facility

Term Loan repayable by EMIs within a maximum of 7 years. (excluding moratorium period of

Maximum 3 months)

Quantum of

TL

Maximum of Rs.50 lacs

Rate of Int. Please refer BC No:104/155 of 08.03.2011 and subsequent circular/s issued from time to time.

Margin Upto Rs.5 lakhs - Nil. Rs.5 lakhs to Rs.10 lakhs : 10%

Rs.10 lakhs to Rs.25 lakhs : 15% Rs.25 lakhs to Rs.50 lakhs : 20%

Processing

Charges

On Lumpsum Basis as under

Limits Rural & Semi Urban Urban & Metro

Upto Rs. 2 Lakhs Nil Nil

Above Rs.2 Lac Upto Rs. 10 Lakhs Rs. 500 Rs. 600



Documentation & Inspection charges will be levied as applicable.

Documents

required as

income proof

IT Returns and/or Service Tax Returns.

Copy of Bank Passbook/Statements

No financial statements required.

Disbursement Disbursement should be made directly to the supplier wherever possible. In all cases, stamped

receipts must be obtained and retained with the documents on record.

Other Terms A) Insurance : Machinery/equipment must be taken under hypothecation and insured with Bank's

hypothecation charge duly incorporated in the policy.

B) The borrower should complete application form SSID 22 and assets and liability statement in

form CBD 23 (Revised) which must be kept with security documents.

C) Inspection : In satisfactorily conducted accounts - yearly and other accounts half yearly.

D) Credit limits would be treated under Priority Sector or Non Priority Sector based on the RBI

guidelines in force.

E) All eligible accounts under the scheme( wherein obtention of collateral Security/3rd

party

Guarantee is waived), to be covered under CGTMSE Guarantee Scheme. [ Detail as per Br.

Cir 101/129 dt 08.10.2008]

F) Review- Annual

G) Vetting by Zonal CRECs and Post Sanction Pre Disbursement Review System applicable

for accounts with limits above Rs.50 lacs as per extent guidelines.

No processing fees on Retail loans for self/spouse;

Free ATM Debit card;

50% discount on annual maintenance charges for De-Mat accounts;

Free Internet Banking Being a special scheme where concessions are already built-in, Zonal Managers and Field Level General Managers in

charge of Zones are NOT delegated any authority to grant any further concessions under this Scheme. Ref. HOBC:101/16

Dt. 3.05.2007, 101/66 of 21.07.07 and 101/151 dt 07.11.2007

86

SANDIPANI ONE PAGE MANAGER SERIES-DEPOSITS /01 30.11.2013 “BOI CURRENT DEPOSIT PLUS & SUPER CURRENT DEPOSIT PLUS ACCOUNT” Certain modifications have been made by the Bank in the schèmes as per B.C. No. 104/77 dated 20.09.2010.

1. Removal of maximum cap of Rs. 10/- Cr. For FFD.

2. Applicability of card rates under Super Current Plus (Delinking of rate of interest with

deposit of Rs. 15 lakh and above). Name of the

Product

“BOI Current Deposit Plus Account”- now a mix of our Current Deposit Account and Short

Deposit Accounts.

Eligibility Current Deposit Account of Individuals, Corporates, Proprietorship and Partnership etc (other

than Banks) maintaining minimum average balance of Rs.2 Lakhs.

Features Maximised returns for the Customers on their short-term funds which otherwise would

not earn any interest in the Current Deposit Account.

Flexibility in liquidity is simultaneously achieved by linking Current Deposit Account

with Short Deposit Account.

For a minimum period of 15 days, and maximum period of 91 days. Automatic renewal

facility enables keeping track on various maturity dates.

No loss of interest on account of before maturity penalties on the SDR since .the

customer always gets the appli-cable rate of interest. for the period the receipt has run.

Minimum Balance

(C/D)

Rs.2 Lakhs. ON THE BASIS OF AVERGE QUARTERLY BALANCE (AQB) and Rs. 35

lacs in Super Current Deposit Plus.

Minimum Balance

(Short Deposits)

Any excess amount automatically transferred (Swept Out by the system itself) to Short Deposit

Account In lots of Rs75, 000/=.

Automatic

Renewals

On maturity, the Short Deposit (principal and accrued interest) will be renewed automatically for

the original tenure. All the automatic renewals of “BOI CURRENT DEPOSIT PLUS

ACCOUNT” would also be carried out at the “end of day operations”.

Payment Before

Maturity &

Sweep In

During the tenure of Short Deposit, if need arises, the deposit can be paid before maturity on last

in first out’ basis without any penalty so as to ensure that the customer does not bear higher

Interest loss. The latest Short Deposit amount would be Swept In (transferred) to the Current

Account (in multiples of Rs.75, 000/-) to meet cheques issued by the Customer if there is

insufficient balance in the CD Account proper. All the sweep-outs/sweep-ins would be carried

out at the “end of day operations” (EOD).

G/L A/C “BOI Current Deposit Plus-Short Deposit Account”

TDS As applicable from time to time. Our Software has provision for this.

Rate of Interest On Current Deposit account, no interest is payable as per existing practice. However, interest

will be payable on Short Deposit portion at the prevailing rate (subject to change without notice)

for the applicable maturity period.

Penalty Charges Rs.1000/- per quarter for not maintaining AQB of Rs.35 lac in Super Current Plus Deposit &

Rs.500/- per quarter for not maintaining AQB of Rs.2 lac in Current Plus Deposit.

A/C Opening Common Application Form as for all types of Accounts.

Lien on “BOI

CURRENT

DEPOSIT PLUS

ACCOUNT”

The customer must not assign, transfer, charge, pledge or otherwise encumber any “BOI

CURRENT DEPOSIT PLUS ACCOUNT” except in favour of our Bank, as a security for any

obligation of the customer to the Bank.

Other Incentives/Concessions (Automatically Applicable As for Star Diamond Accounts)

Free Remittances

(DD/PO)

6 Per Quarterupto rs.50,000/- per transaction.

CBS Max. Amount of Cash Transaction: Rs.50,000/=

Cash and Cheque Transactions up to Rs.25,000/= per day would be free of charges. Beyond

Rs.25,000/= service charges would be levied as under:

@ Re.2/= per Thousand for Cash Withdrawals & Deposits.

@Re.1/= per Thousand for Transfer of Funds from CBS to CBS.

Others Unlimited Free folios/Phone-SMS-Internet Banking Transactions/ NIL Stop Payment Charges/

“Pseudo balance”.

The system will always display the total funds at the disposal of a customer (i.e. free funds in

Current Deposit Account + Fixed Deposit Account i.e. Principal amount only). This would be

termed as “pseudo balance”.

The exceptional reports in Current Deposit Accounts having linkage with Current Deposit Plus

Account would be generated after considering the “pseudo balance”.

Calculation of

interest

Same as applicable to Interest calculation/ application/provisioning in respect of Short Term

Deposits.

TDS Applicable as usual.

Receipts The receipts in “BOI CURRENT DEPOSIT PLUS ACCOUNT” (in electronic form) would be

serially numbered and all the details of “BOI CURRENT DEPOSIT PLUS ACCOUNT” could

be viewed at any point of time.

(Revised as per Branch Circular No. 100/48 of 12.06.2006 and 100/176 of 29.01.07)

87

SANDIPANI ONE PAGE MANAGER

BOI SUPER CURRENT PLUS DEPOSITS ACCOUNTS

Scheme/parameters Super Current Plus Deposit Current Plus Deposit

Initial Deposit Rs. 50 lac

Rs.2 Lakh

Quarterly Average Balance (QAB) Rs.35 lakh Rs.2 lakh

Sweep in Daily Daily

Sweep out Daily On 1st & 16th

Multiple amount Rs.15 lakh Rs.75,000/=

Period of deposit 1 year 15 days to 91 Dys

Maximum cap for Term Deposit No ceiling. No ceiling.

Rate of interest Card rates as applicable to

deposits of above maturity

periods.

Card rates as applicable to

deposits of above maturity

periods.

Penalty Rs. 1000/- per quarter for not

maintaining AQB of Rs. 35 Lac

Rs.500/- per quarter for not

maintaining AQB of Rs.2

Lac

Revised as per Branch Circular No. 104/77 dated 20.09.2010.

Now, it has been decided to remove the ceiling of Rs10/- Cr kept for Term deposit for both the schemes. In

case of SUPER CURRENT PLUS DEPOSIT, the card rates as applicable to size of deposit will be applied.

The instruction comes with immediate effect.

All other features including terms and conditions will be the same as applicable to the Current Deposits

Plus Account

As per the Br. Cir. No. 103/70 Dt.23.07.2009:

Any individual Sweep out from Current Account to CD Plus/Super CD Plus of Rs.1 cr. and above

will attract ROI as applicable to deposits of Rs.1 cr. and above. However, aggregation of

individual receipts/entries will not be stipulated and each Sweep out entry is treated as a separate

receipt. To illustrate, a sweep-out of Rs 90 lacs today will earn interest as applicable and another

sweep-out of Rs 30 lacs the next day will not be added to the existing balance to arrive at the ROI.

(Revised as per Branch Circular No. 100/48 of 12.06.2006, 100/176 of 29.01.07 and Circular letter No.07-

08/34 of 18.06.2007, HOBC:103/70 Dt. 23.7.2009, 104/77 of 20.09.2010)

88

SANDIPANI ONE PAGE MANAGER SERIES -DEPOSITS /02 30.11.2013

BOI SAVINGS PLUS SCHEME

This is a combination of our Term Deposit Scheme and our Savings Bank Scheme with very attractive

features.

Technical Support

The package will take care of entire operations including the complex calculations, Sweep outs/ins, interest

calculations, applications & provision etc.

Accounting A separate G/L Head Styled as “BOI Savings Plus “would be opened and would appear under Term

Deposit Head in GLB.

The linked SB A/c will continue to remain in GL Head “Saving Bank”. A separate P/L head styled “Interest

on BOI Savings Plus” would be created to route interest amounts credited in BOI Saving Plus Accounts.

Eligible Accounts All Savings Bank Account subject to Minimum Balance Criteria of Rs.25,000/- in SB Portion and Rs.

5,000/- in Term Deposit Portion. There is no change in the account opening/approval procedures.

Basic Features of the scheme d) BOI Savings Plus is a mix of Savings Bank Account and Term Deposit Account.

e) Minimum balance in SB portion is Rs.25,000/- and minimum balance in Term Deposit Portion

is Rs.5,000/-.

f) Any amount in excess of Rs.25, 000/- in the SB portion will be auto swept out into the SDR or

DBD portion in multiples of Rs.5, 000/- on daily basis.

g) In the SDR portion, monies can be invested for any period from 15 days to 179 days, as per the

customer’s choice. In the DBD portion, monies can be invested from 6 months up to and

including 10 years, as per the customer’s choice.

h) Upon maturity, the principal in the SDR/DBD portion would be auto-renewed for an equal

period, while the interest would be credited to the SB portion on the concerned due date. The

same, if not withdrawn can be swept back again into SDR/DBD for a period of the customer’s

choice.

i) In case the balance in the SB portion is short of the required level to meet cheques presented in

the A/c., funds from SB Plus portion will be auto swept in, into the SB portion, in multiples of

Rs.1,000/- on daily basis. Although this would amount to Payment before Maturity, no penalty

would be charged. The latest SDR/DBD deposit would be closed before maturity (in multiples

of Rs.1,000/-) to ensure that the customer does not have to bear higher loss (i.e. LIFO principle

to apply).

j) Non-maintenance of minimum balance prescribed in the SB portion, will attract a penalty of

Rs.200/- per quarter.

k) Rate of Interest on the SB portion would be 4.00% p.a., while the Rate of Interest on the

SDR/DBD portion will depend on the tenure for which each deposit is placed, and at the ruling

Interest Rate as on the date the deposit is placed or renewed.

l) TDS norms would apply as per extant rules.

Lien on BOI Savings Plus Accounts

The customer may not assign, transfer, charge, pledge or otherwise encumber any BOI Savings

Plus Deposit except in favour of the Bank as security for any obligation of the customer of the

Bank.

HO B.C No. 95/88 of 16.10.01, 99/105 of 12.04.05 and 100/176 of 29.01.07

89

SANDIPANI ONE PAGE MANAGER SERIES-DEPOSITS /04 30.11.2013 BANK OF INDIA “BASIC SAVINGS BANK” ACCOUNT (No Frill account)

Sl.

No

Feature Terms and conditions

1. Opening

and operations

of accounts

1. An account shall be opened in the name of only one person.

2. No joint accounts

3. Accounts of associations / organizations /firms /clubs/societies/trusts

etc are not eligible.

4. Nomination compulsory.

2. Minors

accounts

Minor’s accounts not to be opened.

3. Opening of

accounts

Shall be by normal procedure for opening of accounts with passport size

photograph and required forms shall be filled up – following simplified KNOW

YOUR CUSTOMER norms. (as per Br. Cir 99/144 dt. 20.12.2005)

4. Illiterate

persons

Illiterate persons attending in person and in the presence of an approved

witness, who knows the depositor, affix thumb impression along with

lodging his passport size photograph. (Extant guidelines to be followed).

5. Minimum

balance:

Rs. 50/=.in rural & semi-urban branches. Rs. 100/= in Urban & Metro

branches. No penalty for balance below minimum stipulated balance.

6. Max. balance/

total credits in

the a/c

Rs. 50000/- Total credit in a financial year should not exceed Rs.

1,00,000/-. In case balance exceeds Rs. 50000 or turnover in a financial

year exceeds Rs. 100000, normal KYC documents to be obtained

7. Interest: Account will earn INTEREST @ 4.00% P.A as in normal SB accounts.

Minimum interest payable is Rs. 5/= per half year. Account can be converted

into normal Savings bank account with or without cheque book facility by

simple application and maintaining applicable min. balance.

8. Collection of

cheques,

warrants, etc

Instruments upto Rs. 5000/= drawn in favour of the person in whose name the

account stands, can be deposited into the account for collection. Account needs

to satisfy regular KYC norms for collection of instruments beyond Rs. 5000/=.

9. a. Passbook

b. Statement

of account

Pass book will be issued at Rural and semi-urban branches. In terms RBI

guidelines (B.C.NO. 100/200 of 12.03.07) Pass Book should be issued in Metro

& Urban Centres also. However if customer wants, at Metro & Urban Centres,

monthly statement may be sent to him by post free of any charges. An ATM

Debit card will be issued free of cost Additional statements for specific periods

for which charges @ Rs. 15/= per month or part thereof is to be prepaid with

request.

10. Duplicate

book/loss of

pass book

Loss of Pass book should be intimated to the bank immediately. Present

rules in normal Savings bank accounts will apply. Duplicate pass book at

the discretion of the bank with charges of Rs. 15/=.

11. Withdrawals Withdrawals through ATMs. At centres where ATMs are not set up account

holders are to use other’s Banks ATMs. In centres where no ATM s are set up

especially in rural and semi-urban centres, accounts holders can withdraw at the

branch where they have opened the account- maximum twice in a month ,

Withdrawals more than twice a month will be charged Rs. 15/= per withdrawal

–either through ATM or across branch counter. Withdrawal shall be allowed by

withdrawal slips with pass book to the account holder on the counter. ISSUE

OF WITHDRAWAL SLIPS for making third party payments is prohibited. No

stop payment instructions of any kind shall be accepted (on the ground of

having issued a withdrawal slip to third party / lost a withdrawal slip after duly

filled in & signed etc).

90

12. Transfer

transactions

Bank branch shall accept written instructions for transfer amounts from

Basic SB account to other deposit accounts / advance accounts free of

cost. Advice for such transactions will be available at the branch. ( not

sent to the address).

13. Nature of

transactions

Account not intended to be used as current account. Normally Basic SB

account is intended for such persons who have not filed Income tax

returns. In case, of suspicious transactions routed through the account,

bank reserves the right to close the account without notice, without

assigning any reason what so ever.

14. Business

Hours

Transactions in the account are open during the normal hours of the bank

15. Change of

address

Account holder should immediately inform change of address with proof

of changed address as per bank requirements.

16. Nomination

facility

Nomination is compulsory (to ensure least operational problems in the

account) and necessary forms are to be submitted duly completed in all

respects at the time of opening of the account. No account will opened

without nomination. Nomination can be changed by submitting a fresh

revised nomination during the currency of the account.

17. Closing of

accounts

Account holder can close the account at any time (by surrendering the

ATM Debit card issued to him in Urban & Metro branches) with a letter

for closure of account

HO BR. Cir. No. 99/150 of 02.01.2006,100/200 of 12.03.07

For KYC guidelines, please refer to Branch circular 99/144 dated 20.12.2005 with annexure

therein as applicable to individuals. .

While opening the accounts of persons of low income group, it should be ensured that:

a) The sum total of balances in the account put together will not exceed Rs.50000 at any point of

time.

b) The total credit in account put together should not exceed Rs.1.00 lakh in any financial year

c) If it exceeds Rs50000/Rs.1.00 lakh as described above, no further transactions will be permitted

in the account unless all KYC norms are fulfilled by the depositor.

d) The introducer should have complied with full KYC procedure and his account with the bank is

at least 6 months old.

e) His/her photograph and address is certified by the introducer.

Branches to open No frill accounts under 2 different types of account codes, i.e. SB 105- Low

income S/B & SB 177- S/B account under financial inclusion.

91

SANDIPANI ONE PAGE MANAGER SERIES-DEPOSITS /05 30.11.2013

STAR DIAMOND AND STAR DIAMOND PLUS CURRENT ACCOUNT

We have started ‘STAR DIAMOND BANKING AND STAR GOLD BANKING’ in order to

open doors to a whole new world of privileged banking with unparallel advantages. Star

Diamond & Star Gold Banking status is beneficial in the high powdered business world as it

makes transaction hassle free and trade simpler. The salient features are given below

FEATURES CD DIAMOND CD DIAMOND PLUS

Average quarterly

balance (Rs.)

2 lacs and above to less than

Rs. 5 lacs

5 lacs and above

Ledger Folio charges Waived Waived

SMS/Phone/ATM and

Internet banking

Free Free

Multi Branch Banking Yes Yes

Remittances (DD/PO) Free-6 per Quarter Free- 15 per quarter

Instant credit of

Outstation cheques

Up to Rs.1 lac per day Up to Rs.1 lac per day

ATM cum debit card Yes , No Annual Charges

for ATM

Yes , No Annual Charges

for ATM

Door-Step Banking excluding

cash pick-up (Not as full

fledged facility)

Yes, at a charge Free

Credit Card with free

Insurance cover

1 card free 1 Card free + 1 add on Card free

- no renewal charges

Relationship Manager Yes Yes

Inward clearing cheques

bouncing

Protection (Rs.)

Rs.50,000 Max

Rs.250000/

Account Statement

Other than monthly

Free- on demand Free- on demand

Stop payment instructions Free Free

Standing Instruction Free Free

Balance certificate Free Free

Cash Withdrawal (Other

Than Parent branch)

25000/- Max. Rs. 50,000 per transaction

From C B S To C B S Br

EFT/ECS/RTGS No Yes

Cheque Book Charges NO Charges for 2 Cheque

Books (100 Leaves each)

per calendar year

No Charges for 4 Cheque Books of

100 Leaves each per calendar year

Charges for IBC/OBC No concession 25% concession

Solvency Certificate NO 25% concession

The above facilities are available at all CBS branches in India.

Ref –Circular letter No- 2009-10/266 Dated 12/03/2010

92

SANDIPANI ONE PAGE MANAGER SERIES DEPOSITS /06 30.11.2013

STAR DIAMOND SAVINGS ACCOUNT

FEATURES

Average quarterly balance in Savings A/c Rs. 1 lac and above

Branch debit transactions per month FREE

SMS/Phone/ATM and Internet Banking FREE

Personalized cheque book Yes

Multi-city cheque book facility Yes

Home delivery of Demand Drafts (couriered) FREE

Statement of Account, on demand FREE

International Gold Credit Card FREE

International Debit Card FREE

Relationship Manager YES

Stop payment charges Waived

Processing charges on Personal/Retail Loans Waived

Demat Account Annual Maintenance charge Waived

Inward Cheque Return charges – local- Waived

Head office Br. Cir. No. 101/50/**143/144 of 02.07.07/29.10.2007/29.10.2007 and Circular Leter

No. 2007-08/122 of 26.12.2007 respectively.

93

SANDIPANI ONE PAGE MANAGER SERIES -DEPOSITS /07 30.11.2013

STAR POWER SALARY ACCOUNTS

Salient Features: A) No minimum balance / No Ledger Folio / Transactions charges.

B) Free ATM International Debit Card / Free India Card (Charge Card)-Annual Charges

applicable from next year

C) Free Internet Banking Facility / Unlimited ATM and Internet Transactions.

D) Free Access to non-BOI ATMs under Cash Tree.

E) Free Statement of Account - Quarterly - from the Branch

(No Pass Books to be delivered) Monthly - through e-mail.

F) Free Tele banking/ SMS Banking *

G) Free Personalized Cheque Books (50 leaves in a year)*

H) Free Demat Account (for the first year)*/Facility for Online Trading of Shares*

I) Free cheque pickups/deliveries – once a day

J) TOD Facility – equal to previous month’s net salary @ Personal Loan Rate.#

K) Free Personal Accident Insurance Cover (as per Debit Card & India Card privileges)

L) Free Utility Bills Payment through e-Pay Facility.

M) Waiver of processing charges and/or concession in R/Interest upto 25 basis points for group

processing of Retail Loans of the employees. – ZMs to use their discretion.

# Conditions apply.- For TOD Facility, the employee’s total deductions should not be more

than 65% of his total salary. Branch Managers to use their discretion based on the conduct of

the Salary A/c.

TERMS & CONDITIONS :

i. Salary Accounts may be opened for Firms/ Corporates/ Govt./ Semi-Govt. undertakings

having minimum 25 employees.

ii. The Institution should open its C/D A/c. with us, wherever possible.

iii. Minimum net salary of any employee not to be less than Rs.10,000/- p.m.

iv. Salary Accounts may be opened in CBS Branches, so that

a. centralized salary database is created and provided to the Salary paying Company/

Govt. Deptt., whenever required (at a cost).

b. Simultaneous credit of salary for all the employees in various branches of the

Company is possible through centralized salary payment scheme in the case of

companies having branches in more than one city.

Salary paying Company provides salary particulars in a floppy or soft copy, so that credit can be

given to the individual accounts with least work pressure. OTHER DETAILS

The Salary Accounts of the employees of the Corporate concerns would be part of the Savings

Bank Deposits. However, in order to track these Accounts and get the necessary MIS and also to

provide system -enabled facilities, the CBS branches would have to open the Salary Accounts

under Scheme ‘SB 101’. For this purpose, please note the following:

“The branches have to select Scheme ‘SB 101’ for opening Star Power Salary Accounts. The User

while opening the Account through OAAC/HOAACSB Menu options has to select ‘101’ in

Special Charge Code. In case the facility is to be extended to an existing account, the User may go

through ACM/ HACM Menu options and visit sub-options 0, and select ‘101’ in Special Charge

Code field.

For making the salary payments of the employees and extending certain privileges as per the

captioned Scheme, branches would have to obtain a Memorandum of Understanding (Agreement)

from the Employer as per Annexure B of the Br. Circular NO. 100 / 94 of 07.09.2006.

94


BOI SALARY PLUS ACCOUNT SCHEME(B.C. No. 104/149 dated 21.02.2011 SALIENT FEATURE:

1. Free Global Debit cum ATM Card to all and Platinum card for high salary earners ( new feature).

2. Free gold credit card to all and gold international credit card for higher salary earners(new feature).

3. Personal accident death insurance cover of Rs.2.00 lakh.

4. Free 100 cheque leaves in a calendar year( new feature).

5. Free Internet banking, mobile banking, Star Sandesh, RTGS/NEFT thru net banking.

6. Easy over draft equal to 4 times of net monthly salary max. 2 lac.

7. Star Share trade(No AMC charges for Demat for 1st F.Y.).

8. Free 24 DD/PSI of max. Rs.50,000 each in a calendar year(New feature).

9. 0.25% concession in ROI on Home Loan and Auto Loan sub. to min. Base Rate.

10. 1.50% concession in processing charges on Home Loan and Auto Loan.

Details of the scheme are as under:

Sl.

No

ELIGIBILITY MENU OPTION OAAC-Scheme code

will be 163 & special charge codes will

1. All employees on regular pay roll of

a. Para military forces viz.: CRPF,BSF,ITBP, Police, CISF,

NSG, Sashastra Sima Bal, Rashtriya Rifles, Special frontier

force, Assam Rifles

b. Employees of Central and State Govt/Universities/ Colleges

affiliated to Universities

c. Employees of Public Sector Undertakings

d. Employees of Pvt. Sector ( approved by the National

Banking- GM)

(Minimum Take home salary 10000/- p.m. for atleast 70% of

the employees whose salary accounts to be opened)

Deviation in eligibility will be approved by National Banking

General Manager.

201 for Para military forces such as CRPF,

BSF,ITBP, CISF,NSG, SSB, Rastriya

Rifles, SPF, Assam Rifles

202 for employees of Central and State

Govt./Universaties/Colleges affiliatedto

Universities.

203 For employees of PSUs.

204 for employees of Private Sector (to be

approved by GM NBG)

2. Minimum Balance Nil

3. ATM Cum DEBIT Card Free Global ATM Cum Debit Card to

all. Free Platinum Debit Card will be

given to those whose net take home salary

is minimum 25000/- p.m. or average

quarterly balance in SB a/c is Rs.1 lakh.

4. Personal Accident Death Insurance Cover RS.2 lac

5. Internet Banking/ Mobile Banking/Star Sandesh/RTGS/NEFT

payment through Internet Banking

Free

6. Cheque Leaves Free 100 leaves per calendar year

7. Easy Over draft to be approved by the Manager. Loan plus TOD

should not exceed the limit of Rs 2 lakh. Option of conversion

to personal loan on request payable in max. 60 EMIs.

4 times of net salary Maximum 2 lac.

ROI 4.50% OVER Base Rate.

8. Interest concession on Retail Loans such as Home Loan, Auto

Loan etc.

Concession in margin in auto loans

Processing charges on Personal Loan

0.25% less than usual rate subject to min.

of Base Rate

5% less than usual norms

50% waived.

9. Star Share Trade

Demat, SB, Online Share Trading

Available

Annual Maintenance Charges on Demat

waived(during first F.Y.)

10. Demand Drafts/pay orders: Number of free Draftd with max.

amount of 50000/- per draft (thru salary account)for genuine

purpose

24 per calendar year

11. Credit Card Free Gold Credit Card to all employee

Free Gold International Credit Card to

employees whose net salary is 25000/-

12. Deviation in Rate of Interest, Margin and processing Charges for

Retail loans and any other deviation in the scheme

GM Retail and above as per the delegated

authority for concessions in the ROI and

other matters.

Branches to obtain MoU from the employer and undertaking from the employees as per

Annexure 1 & 2 to HO BC 104/149 dated 21.02.2011.

95


STAR SUNIDHI TAX-SAVING DEPOSIT SCHEME (w.e.f. 28.07.2006)

Eligibility Individuals& HUF having PAN numbers. Individuals will include NRIs

also, subject to having PAN number in India

Min. deposit Rs.10000/-

Max. deposit Rs. 100000/- ( in a financial year)

Type of deposit FDR/ MIC/ QIC/ DBD, For NRIs the TDRs will be in NRO Category

only

Tenure Min. 5 years, Max. up to & including 10 years.

Rate of interest As applicable to Normal TDRs -0.5% extra for senior citizen, 1% extra

for staff members.

Premature

withdrawal

Not permitted up to 5 years.

Advance facility Not available for a period of 5 years from the date of deposit.

Applicability All branches in India.

Nomination Fac Available.

Other benefits Tax Exemption u/s 80 C of the Income Tax Act.

Other terms &

conditions

i. In the case of joint accounts, only the first name of depositor

will be eligible for deduction u/s 80c of Income Tax Act.

ii. No nomination shall be made in respect of a term deposit

applied for and held by or on behalf of a minor.

iii. The term deposit shall not be pledged to secure a loan or as

security to any other advance.

iv. TDS norms will apply as per rules. In the Accounts of NRIs

TDS norms will be as applicable to NRO Deposits

v. The TDR receipt shall bear the name address and PAN number

of the assessee with remarks” issued under Star Sunidhi Tax

Saving Deposit Scheme”.

vi. In case the depositor dies and a nomination is in force, the

nominee can encash the deposit at any time, before or after the

date of maturity, alongwith proof of death of the depositor.

vii. Under the scheme, amount can be deposited in instalments

subject to maximum Rs. 1 lakh during a financial year.

viii. The Scheme Codes for Star Sunidhi NRO Accounts in CBS

Branches are TD-560, TD- 539 and TD-529 for DBD-NRO,

QIC-NRO and MIC-NRO respectively

(Ref. HOBC 100/90 DATED 1.09.2006 and 100/175 of 27.01.07)

96


STAR FLEXI-RECURRING DEPOSIT SCHEME

Availability of the Scheme: At all Branches

Eligibility: Individuals & Joint Accounts (Including Minors).

Nomination Facility : Available

Minimum amount of Monthly Instalments: Rs.1000/- will be Minimum Core Monthly

Instalment. Core Instalment would be a fixed amount, to be decided at the time of opening the RD

A/c

Maximum amount of Monthly Instalments-- Rs.10,000/- will be the Maximum core Monthly

Instalment. Flexi Instalment

a. Any amount in multiples of Rs.1,000/-. (Only one core & one flexi instalment per

month).

b. Maximum flexi instalment can be 10 times of the core instalment.

c. Flexi and the core instalment need not be deposited together. They can be paid on

different dates in the same month.

d. No Flexi instalment should be accepted in the last month of the RD A/c.

e. Only one credit voucher (pay-in-slip) is to be used for depositing the core + flexi

instalments, in case they are being deposited simultaneously.

f. In case there are any core instalments in arrears, any extra amount deposited by the

customer, would first go to adjust the defaulted core instalments. Previously paid flexi

instalments cannot be adjusted towards future core instalments.

Period-- Minimum 12 months. Maximum 10 years. (In multiples of 3 months only). There would

be only one maturity date for both Core and Flexi portion.

INTEREST RATE:

Core Instalments (Fixed Rate) -- As applicable for the period for which the A/c is opened.

Flexible Instalments --Applicable rate at the time of deposit of the Flexible instalment for the

remaining maturity period of R/D Account.

Premature closure of Account:

Period Rate of Interest

>Three months No Interest

Three months and

above but before

maturity

Normal penalty rules i.e. compound interest at the reduced rate for the

completed quarters and simple interest at the reduced rate for the last

broken quarter, for the respective deposits.

Penalty: Present penalty rules are as under for the core instalments:

Rs.1.50 per Rs.100/- p.m. for deposits of 5 years and less;

Rs.2.00 per Rs.100/- p.m. for deposits of over 5 years.

Maturity Value: Will be calculated by the System, depending on the amount of flexi instalments;

no fixed Maturity Value. No auto-renewal of the maturity proceeds will be permitted. Instead the

proceeds may be credited to S/B Account if no instructions are received.

Loan, OD and Advances: Permitted as per existing rules

Tax treatment: No TDS (R/D Accounts are exempted from TDS as per present rules.)

No advance core instalments. Amount deposited above core instalments will be considered as

Flexi instalments for that month.

No Passbooks are to be issued for Flexi RD Accounts. Only system-generated statements are

to be issued to the customers

Standing Instructions will be accepted only for the core instalments.

All other rules, terms / conditions as per existing RD Scheme

(Head Office Branch Circular No. 100/116 of 31.10.2006.)

97


STAR SURAKSHA SB ACCOUNT

This new product is launched on 7th

September, 2010 in terms of Branch Circular No. 104/71

Dt.08.09.2010.

a. Minimum Balance Rs.500

b. 50 leaves per year cheque book (as applicable in SB) Free

c. One DD/PSI issuance upto Rs. 25,000/- per month Free

d. Accidental Death Insurance Cover upto Rs. 50,000/- Free

e. AMC Charge on DEMAT account (first financial year) Free

f. ATM-cum- Debit Card Free

For ‘’Star Suraksha SB Plus “ separate special charge code 103 is to be used for the accounts

opened under scheme code- SB 101 or 103 and 111( minors, Diamond SB accounts and NRI are

not covered under Star Suraksha SB Plus Account scheme).

Other facilities which are available for all savings bank customers will also be applicable to these

accounts like:

a. Transactions (on our own ATM and internet) Unlimited

b. Intersol charges (Remittances between CBS Branches

Applicable for all accounts between A/cs with different

Customer ID

Upto Rs. 1.00 lac Free.

If the transactions are more than one per day, each transactions of the transfer of fund upto Rs.

1.00 lac is charged @ Rs.5/- per transaction.

Above Rs. 1.00 lac Rs. 50 per transaction.

c. Cash withdrawal upto Rs.25,000/- from any other

branch of Bank of India by use of cheq. Book issued Free d. SMS/TELE/Internet Banking Free

e. NEFT/RTGS through Net Banking Free

f. Pay of utility bills at select centres Free

g. Star Sandesh Free

All the rules, regulation and guidelines applicable to Savings Bank Accounts will also be

applicable on this product like Rate of Interest, minimum balance charges etc. The scheme will

continue for a period of two years and shall be reviewed after expiry of the period. Only New SB

Accounts opened in the name of individual excluding accounts in the name of minor, NRI and

Diamond account holders will be covered under this scheme.

98


STAR BENEFIT CD PLUS ACCOUNT

This new product is launched on 07.09.2010 in terms of Branch Circular No. 104/72 Dt.08.09.2010.

The Features of Star Benefit CD Account shall be as under and will be applicable to all the NEW

ACCOUNTS opened on or after 07.09.2009. The Scheme may be modified, withdrawn at any time

at the discretion of the Bank after giving a general notice of one month:- a. Minimum Balance `. 5000/-

(Same as normal CD A/c)

b. Three FREE DD/PSI up to Rs.5.00 lacs each month: Free

c. Star Speed Cheque collection Free

Other Benefits: a. ATM (on our own) and internet transactions Unlimited

b. Debit Card for individual and Proprietorship concern accounts Free

c. Intersol charges (Remittances between CBS Branches applicable

for all accounts between A/cs with different customer ID

Upto Rs. 1.00 lac Free for 1 transaction of maximum

amount of Rs. 1.00 lac per day. If transactions are more than 1 per day,transaction for transfer of

fund upto Rs. 1.00 lac is charged @ Rs.5/- per transaction. Above 1.00 lac, -50/- per transaction.

d. SMS/TELE/Internet Banking Free e NEFT/RTGS through Net Banking Free

f. e-Pay of utility bills at select centres Free

g. Star Sandesh Free

h. Minimum Balance charge: ` 100/- per month.

All the rules, regulations and guidelines applicable to Current Deposit Accounts will also be

applicable on this product like, LF charges, cheque return charges, stop payment charges etc.

99

SANDIPANI ONE PAGE MANAGER SERIES DEPOSITS /13 30.11.2013 BOI STAR SENIOR CITIZEN SAVINGS BANK ACCOUNT-SCHEME CODE-SB 166

New Scheme launched by Head Office vide BC No. 107/106 dated 13.09.2013 to cater to the needs of

Senior Citizens who are at the age of 57 years and above.

Features of the Scheme Target Group Citizens who have completed 57 years of age and Senior Citizens who are drawing pension from

other Banks.

Eligibility Single or in joint names. The first account holder must belong to the target group.

AQB Criteria Average Quarterly Balance (AQB) of Rs.10000/- AQB shall be calculated for AMJ, JAS, OND

and JFM quarters.

(For example AMJ stands for April, May, June)

Opening of Account/

Minimum Daily Balance

No Daily Minimum Balance Requirement.

However customer has to maintain Average Quarterly Balance (AQB) of Rs.10000/- or above

therefore AQB Clause to apply.

Charges for Non-

Maintenance of

Minimum Balance /AQB

No Penalty for Non Maintaining Daily Minimum Balance. In case of Non Maintenance of AQB

of Rs.10000/- Penalty will be levied as under-

SB a/c with cheque book facility: Rs 50/- per Quarter at all centers.

SB Account without cheque book facility: Rs.25/- per Quarter at all centers.

Charges for excess debit

entries in Savings Bank

account

ATM/Internet

Transactions not to be

counted/reckoned

Up to 10 Customer induced debit entries in a month : FREE

Beyond 10 debit entries: FREE

(Presently Normal Savings Account is charged with Rs.10/- per entry for entries in excess of 10

debit entries.)

Personalized Cheque

Books per calendar year

50 Leaves (Free)

Issuance of DD/Pay Slips 6 DD/Pay Slips Per Quarter Free if AQB in the preceding quarter is maintained at Rs.10000/- and

above else DD charges would be applicable.

Global Debit cum ATM

Card

Free Global Debit cum ATM Card-NIL Annual Charges from next year.

Demat Account Annual

Maintenance charges

Waiver of AMC Charges on Demat A/Cs

(For First Financial Year only)

Group Personal

Accidental Death

Insurance Cover

Group Personal Accidental death insurance cover of Rs. 5 Lacs on the Debit Card, which shall be

activated by single POS Swipe. This Clause applies to every financial year.

. The facility of Group Personal Accidental death Insurance Cover of Rs.5 Lacs will be extended

by the Bank to the Account holders of this Scheme and the cost of premium will be borne by the

Bank.

Note: Bank holds the right to withdraw this facility at its discretion in the subsequent year.

Special Privileges Discount Health Checkup through Partnerships.

Above facility would be offered to all account holders and their family members under tie-up

arrangement with service provider Health India Medical Services Pvt. Ltd.

The service provider Health India Medical Services Pvt. Ltd. Managing a network of 6000

pathology labs/test centers across India. The customer can fix up an appointment with service

provider through designated toll free number-1800226062 to the nearest located pathology

lab/test centre and get medical check up/test at discounted rate for himself/herself or for his/her

family members. The approximate discount offered under the scheme will be up to 40% of the

prevalent market rates. The rates vary from lab to lab and city to city

Get attended on priority at all our Branches enabled with Queue Management System. Just

identify yourself as a Senior Citizen and you will be moved up the queue. In Branches where

QMS is not installed, customers can get in touch with Branch Head for availing priority services.

Relationship manager for AQB > Rs. 1.00 Lac

(Diamond Customers)

The customer will be privileged to avail exclusive services of Relationship Manger if AQB of

Rs.1.00 Lac and above is maintained.

Discount on Pilgrimage & Travel trips through Partners. (Under Negotiation) The above

facility is proposed to be added in the product at a later date upon finalization of the same with

various service providers.

Other Features &

Incentives

• No Ledger Folio Charges.

• Free Internet banking Facility.

• Free Funds Transfer through Internet Banking.

• Unlimited Internet and ATM Transactions at BOI ATMs.

• Free SMS and Telebanking.

• Free Utility Bill Payment facility through E-pay.

• Free NEFT/RTGS through Internet Banking for single transaction.

• Free Missed Call Alert Facility.

• BOI- National Swasthya Beema Policy, floater mediclaim policy of

NICL available at low premium.

(Ref: HO BC 107/106 dated 13.09.2013 )

100


BOI STAR MAHILA SAVINGS BANK ACCOUNT, Scheme Code-SB-167 Scheme launched on the occasion of 108

th Foundation day of the Bank vide Ho BC No. 107/107

dated 13.09.2013 to cater to the banking and financial needs of women especially working women. Target Group Women in the age group of 18 years and above

-including salaried employees (Govt./PSU/Private Sector/MNC etc.)

-Self Employed Professionals like Doctors, Entrepreneurs etc.

-Women with independent source of regular income like rentals etc. Eligibility Single or in joint names. The first account holder must belong to the

target group. AQB Criteria Average Quarterly Balance (AQB) of Rs.5000/-

AQB shall be calculated for AMJ, JAS, OND and JFM quarters.

(For example AMJ stands for April, May, June) Opening of Account/

Minimum Daily

Balance

No Daily Minimum Balance Requirement.

However customer has to maintain Average Quarterly Balance (AQB) of

Rs.5000/- or above therefore AQB Clause to apply. Charges for Non-

Maintenance of

Minimum Balance

/AQB

No Penalty for Non Maintaining Daily Minimum Balance. In case of Non

Maintenance of AQB of Rs.5000/- Penalty will be levied as under-

SB a/c with cheque book facility: Rs 50/- per Quarter at all centers.

SB Account without cheque book facility: Rs.25/- per Quarter at all

centers. Charges for excess

debit entries in Savings

Bank account

ATM/Internet

Transactions not to be

counted/reckoned

Up to 10 Customer induced debit entries in a month : FREE

Beyond 10 debit entries: FREE

(Presently Normal Savings Account is charged with Rs.10/- per entry for

entries in excess of 10 debit entries.)

Personalized Cheque

Books per calendar

year

50 Leaves (Free)

Issuance of DD/Pay

Slips 6 DD/Pay Slips Per Quarter Free if AQB in the preceding quarter is

maintained at Rs.10000/- and above else DD charges would be

applicable. Global Debit cum ATM

Card Free Global Debit cum ATM Card-NIL Annual Charges from next year.

Demat Account Annual

Maintenance charges Waiver of AMC Charges on Demat A/Cs

(For First Financial Year only) Easy Overdraft Facility Only for salary account holders of Government organizations /private

Organizations including Multinational Companies wherein our Bank is

engaged for salary disbursement and consent of the employer is extended

to the Bank:-

The account holder may be provided with an overdraft facility for

maximum amount equal to one month salary credited to the SB account

in the last month (Net credit to SB account in the last month).

The Rate of Interest on overdraft is proposed to be 3% over Base rate.

In addition to Application cum undertaking, Branch will obtain Clean

OD/loan documents for the amount of overdraft approved by the Branch

equal to one month salary amount. No Processing Charges will be

recovered for overdraft.

Terms & Conditions:-

(1) The above facility shall be extended only to permanent employees of

Govt. Organizations/Pvt. Organizations including Multinational

companies where our Bank is engaged for salary disbursement.

(2)Undertaking to be obtained from employer not to shift Salary Account

or pay Terminal Dues without NOC from the Bank.

(3)Cross Guarantee can be taken as additional Safety Measure.

(4)Net take Home Income should not be less than 40% of Gross Income.

101

Group Personal

Accidental Death

Insurance Cover

Group Personal Accidental death insurance cover of Rs. 5 Lacs on the

Debit Card, which shall be activated by single POS Swipe. This Clause

applies to every financial year.

The facility of Group Personal Accidental death Insurance Cover of Rs.5

Lacs will be extended by the Bank to the Account holders of this Scheme

and the cost of premium will be borne by the Bank.

Note: Bank holds the right to withdraw this facility at its discretion in

the subsequent year. Special Privileges Discount Health Checkup through Partnerships.

Above facility would be offered to all account holders and their family

members under tie-up arrangement with service provider Health India

Medical Services Pvt. Ltd.

The service provider Health India Medical Services Pvt. Ltd. Managing a

network of 6000 pathology labs/test centers across India. The customer

can fix up appointment with service provider through designated toll free

number-1800226062 to the nearest located pathology lab/test centre and

get medical checkup/test at discounted rate for himself/herself or for

his/her family members. The approximate discount offered under the

scheme will be up to 40% of the prevalent market rates. The rates vary

from lab to lab and city to city.

Please note that Customer must carry Passbook and it should be shown at

the patalogy lab/test centers for identification purpose.

Relationship manager for AQB > Rs. 1.00 Lac

(Diamond Customers)

The customer will be privileged to avail exclusive services of

Relationship Manger if AQB of Rs.1.00 Lac and above is maintained.

Discount on Pilgrimage & Travel trips through Partners. (Under

Negotiation) The above facility is proposed to be added in the product at

a later date upon finalization of the same with various service providers. Other Features &

Incentives • No Ledger Folio Charges.






• Free NEFT/RTGS through Internet Banking for single

transaction.


• BOI- National Swasthya Beema Policy, floater mediclaim

policy of

NICL available at low premium.

Ref; HO BC 107/107 dated 13.09.2013.

102

SANDIPANI ONE PAGE MANAGER SERIES DEPOSITS /15 30.11.2013 BOI STAR GURUKUL SAVINGS BANK ACCOUNT

Scheme Code-SB-163 & Special charge Code-GURU This is a new product launched by Head Office vide BC No. 107/108 dated 13.09.2013. This is another version of Salary

Account Scheme. Covering non-teaching staff also along with the teaching staff.

FEATURES OF THE SCHEME

Eligibility All permanent teaching and Non-Teaching staff of school/colleges/universities and all educational

institutions are eligible to open account under under the scheme provided minimum 10 employees of

the institution having minimum take home salary of Rs.5000/ p.m. a nd above join the scheme, and the

institutions agree to pay the salary through the Bank with an Agreement to sign Letter of Undertaking(to

be obtained from employer). Deviation in eligibility criteria to be approved by ZM only.

Note: For opening of accounts under the scheme, Menu option is OAAC and Scheme Code will be

163 and Special Charge Code will be “GURU”

Minimum daily Balance No minimum balance requirement/Zero Balance Account.

Charges for excess

debit entries in S/B

Account

Up to 10 Customer Induced debit entries in a month : FREE

Beyond 10 debit entries : Rs.10/ per entry

(ATM/Internet transactions not to be reckoned)

Personalised Cheque

books per calendar year

50 Leaves (Free)

Issuance of DD/Pay Slips Free 24 DD/PSI of Max. Rs.50000/ each in a calendar year.

Global Debit cum

ATM Card

Free global Debit cum ATM Card to all-NIL Annual Charges from next year.

Free Platinum Card for higher salary earners (Annual charges applicable from next year)

NEFT/RTGS Free.( through Net Banking).

Concession on Loans 0.25% concession in ROI on Home Loan and Auto Loan subject to minimum Base Rate.

Credit Card Free Gold Credit Card to employees whose net salary is Rs.10000/ and above for last 6 months. Free

Gold International Card to employees whose net salary is Rs.25000/ and above for last 6 months.

Star Share Trade

(3 in 1 account),Demat,

SB, Online Share Trading

Available

Waiver of AMC Charges on Demat ( For the first Financial Year only).

Easy Overdraft

Facility

O/D Facility in account available for maximum amount of Rs. 200000/ or net salary for last four

months, whichever is lower as per Terms & Conditions.

Branches will appraise the application cum undertaking received from applicant on a prescribed format

and limit will be marked in the system after approval of the limit.

Rate of Interest on O/D facility- 3% over the Base Rate.

Documentation- Application as per Annexure – I and Undertaking as per Annexure- II to HO

BC107/108 dated 13.09.2013 to be obtained from the account holder.

Branches to obtain security documents as applicable for Clean O/D Facility for an amount equal to Net

Salary for last four months.

Processing Charges-NIL.

Terms & Conditions:- (1) O/D facility to be extended to Permanent Employees of Govt. and Quasi-

Govt., Educational Institutes however the facility may be extended to permanent employees of Private

institutes as per the discretion of Zonal Manger.

(2) Undertaking to be obtained from the employer not to shift the salary account or pay Terminal Dues

without NOC from the Bank.

(3) Cross Guarantee can be taken as an additional safety measure.

(4) Net Take Home Pay/Income should not be less than 40% of Gross Income.

Group Personal

Accidental Death

Insurance Cover

Group Personal Accidental Death Insurance Cover of Rs.5 Lacs on the Debit Card, which shall be

activated by single POS Swipe. This Clause applies to every financial year.

The facility of Group Personal Accidental death Insurance Cover of Rs.5 Lacs will be extended by the

Bank to the Account holders of this Scheme and the cost of premium will be borne by the Bank.

Note: Bank holds the right to withdraw this facility at its discretion in the subsequent year.

Other Facilities and

Incentives

• No Ledger Folio Charges.






• Free NEFT/RTGS through Internet Banking for single transaction.


• BOI-NationalSwasthya Beema Policy, floater mediclaim policy of NICL available at low premium. Please note that correct scheme code and special charge code must be put while opening the account in respective category

for identification of accounts and their category and also for extension of benefits to the depositors.

(Ref: HO BC 107/108 dated 13.09.2013.)

103

SANDIPANI ONE PAGE MANAGER SERIES-OTHERS(Card Products) /01 30-11-2013

CREDIT CARDS

Branch Circular No.107/91 dated : 19.08.2013.

Issuance of

Credit Cards

Card business is a good source of non interest earnings. Our bank introduced credit cards on 1st January,

1988. We are issuing cards to the customers on branch billing basis where charge account is being

maintained with the issuing branch and Direct billing cards where the customer may not have an

operative account with us. .

Affiliation with 2

agencies

Master Card international INDIA CARD , TAJ PREMIUM CARD (Valid in

India & Nepal Only & staff is not eligible)

Visa International GOLD CARD (Valid in India & Nepal Only) ,

GOLD INTERNATIONAL CARD,VISA

Privilege Card (Valid in India , Nepal & Abroad ).

Privilege Card daily cash withdrawal limit –

Rs.50000/-

These cards can be used in any Merchant Establishment (POS terminals)/on ATMs and for e-commerce

transaction where VISA/MASTER cards are accepted. Now cards are PIN enabled to use on ATM.

Application Branch needs to obtain the application form from the customers alongwith KYC documents. In case

PAN is not available , Form 60 to be obtained.CIBIL report is to be generated for each and every

applicant.

Eligibility

Norms,

(Individuals)

a. Residents / NRI / persons of foreign origin residing in India on employment. b. Principal and all the

add on if any should complete KYC and have steady income which is to be verified from ITR / Salary

Certificates. In case of our customers who are depositors , even if ITR or Salary Certificate is not

available Card can be issued provided he is maintaining deposit account for more than 12 months and

minimum average demand deposit is Rs.30000/- . Minimum amount is TDR should be Rs.50000/-.

Eligibility

Norms, (Staff &

Ex-staff)

Income should be verified from ITR / Salary Certificate / Copy of bank statement for Pensioners. No

disciplinary action is initiated / pending / contemplated. No instance of cheque return due to financial

reason.Charge account should be salary/pension account aonly. Direct billing cards cannot be issued to

staff/ex-staff.

Eligibility for

Corporate Cards

It can be a Proprietorship/Partnership firm/Pvt. Ltd./Public Ltd. Company/Registered

Institutions/Societies earning profits for 2years of preceeding 3 years. Can be issued to

Prop/Partner/Executive/Director/Employee as per corporates request. Branch should obtain relevant

authorisation for issuance of card and debit the account of the corporate for card usages , If the corporate

happens to be Limited Co., Board Resolution along with Memorandum and Article of Association is alos

required. Satisfactory CIBIL report is required for the Corporate entity and also in the individual names

of the Promoters. In case of direct billing cards , undertaking to pay the bills on or before due dates

should be obtained.

Add on Cards 2 Add on Cards can be Issued to the close relatives (Parents, Spouse, Major Child, Brother, Sister)

completeing KYC in the same account at the request of the customer/staff / Ex-staff card holders. No

Add on card is allowed on Corporate Cards.

Complimentary

Cards

Top executives, ZMs , Chairman of Bank’s RRBs with waiver of annual membership fee. Diamond

Category customers of SB/CD , Gold Card holder exporters , all borrowers under new home loans and

existing standard borrowers of star personal /home/medi-mobile are eligible for free India Card.

Spending Limits Individuals / staff / ex-staff – 20% of Gross annual Income, may be extended to 40% on the merits of the

case. Combined spending of both principal and add on should not exceed this spending limit. For BOI

depositors the spending limit will be 50% of the average deposit. Cards can be issued against lien

marking over TDR with 20% margin. For Corporate Cards not more than 20% of net profit.

Cash

Withdrawal and

Limits /

Revolving credit

Cash Withdrawal can be done through ATM’s , at branch using POS terminal or after obtaining voice

authorisation from the credit card management system. Limits are –Principal and ADD ON Card-50%

of spending limit-MAX Rs.15000/-per day and MIN Rs.1000/- per day. No charge at branch level , it

will be billed by HO, CPD in the monthly bill. Revolving credit to Public /staff – Min payment of 10%

of total bill.

Delegation(Bran

ch billing cards

)Rs in Lacs

Upto Scale IV Scale V Scale VI/ZLCC Scale VII HLCC/NBGLCC

NIL 5.00 12.50 15.00 FULL POWERS

Delegation(Direc

t billing cards

)Rs in Lacs

AGM-(HOCPD) HLCC-II(Credit committee of GM’s at HO)

UPTO Rs. 5.00 LACS BEYOND Rs. 5.00 LACS

Annual Renewal Automatic , until cancellation advised to Bank 2 months prior to expiry of existing card.

104

Annual Fee No Annual fee is being charged in case of India Card (Principal/Add on /Replacement).ForTaj Premium

Card –Principal-Rs.800/-, Add – on Card- Rs.400/- , Replacement – Rs.200/-.

Gold International Card & Privilege Card(VISA) Gold Card (VISA)

PUBLIC STAFF PUBLIC STAFF

ANNUAL

FEE

1500 750 ANNUAL

FEE

600 NIL

ADD-ON

CARD

800 400 ADD-ON

CARD

350 250

REPLACEME

NT

50% of

Membership

Fee

50% of

Membership

Fee

REPLACEME

NT

50% of

Membership

Fee

50% of

Membership

Fee

Service Charges

on Cash Advance

At Branch 2.50%

MIN Rs.50/-

At

Bank’s

ATM

2.00%

MIN Rs.50/-

At other

Bank’s ATM

2.50%

MIN Rs. 75/-

Interest Charge 2.50% p.m. if minimum payment due

remains overdue in succeeding billing.

1.70% p.m. if minimum part due or higher amount paid by

succeeding billing.

Other Service

Charges (RS)

Pin

Replace

ment

Usage over

Spneding

limit

Dup Copy of

Bill (after 3

Months)

Issue of

Replacement Card

Retrieval of

Charge Slip

other than

VISA

Retrieval of

Charge Slip

VISA Customer Staff

50 per

time

10 per

transaction

50 per Quarter 200 100 100 or actual if

which erver is

higher

w.e.f. 19.04.2013

US$25 PER

TRAN

Charges for

Cash

Withdrawal/

Balance

Enquiry/ME

Transaction

Applicable In case of Gold International and Privilege cards (VISA) only.

Cash Withdrawal at Overseas

ATM

2.5% Amt Withdrawan Min-Rs.125/- per transaction + 2%

currency conversion charges.

Balance Enquiry at overseas ATM Rs.25/-

Merchant Transaction at overseas 2% currency conversion charges in addition to interest if any.

Billing Dates Billing date for India Card is 15th

of every month and payment due date is 5th

of next month. For all

other Master/VISA cards billing date is last date of the month and payment due date is 21st of the next

month.

Late payment fee

(Direct Billing

Cards)

Late payment fee is recovered in case payment received after due date but before next billing. Rs.100/-

for min. payment due is more than Rs.1000/-. Grace period of 3 days at Mumbai & 5 days elsewhere is

allowed from due date.

Charge Back for

POS transaction

failure.

The POSREV menu would not work for Credit Cards. Customers application for reversal of failed

transaction to be sent to [email protected] .

Card Type Time taken for settlement of claim

from date of lodgement of claim

Max period from date of transaction for

lodgement of claim

Master Card 45+30 Days 120 days from date of transaction

VISA Card 45+30 Days 120 days from date of transaction

Customer Care Toll Free 24x7 Helpline- 1800220088 Land Line: 022-40426006

mailto:[email protected]

105

SANDIPANI ONE PAGE MANAGER SERIES-OTHERS(Card Products) /01 30-11-2013

DEBIT CARDS

Branch Circular No.107/22 dated : 03.05.2013.

Salient/Genera

l Features

Debit cards are issued in two forms i.e. Personalized cards where cardholder’s name is embossed (Max 16

Characters) and Non-Personalized cards issued in two forms namely Ready kit and Welcome Kit and in

both cases cardholder’s name is not embossed.

Affiliation Our debit cards affiliated with “Master” , “VISA” and “RUPAY” logo. Master and VISA cards are valid

in INDIA and abroad where as RUPAY cards are valid in India only. It would be mandatory for the

cardholder to go to an ATM for the first transaction on the debit card for activation. Commercial

transaction on POS terminals before the first usage on ATM would be rejected.

Application Branch needs to obtain the application form from the customers alongwith KYC documents. The signature

in debit card application form should be same as in account.

Eligibility A. Card can be issued to Individual accounts holder/self operated of SB,CD & OD accounts. B. For joint accounts , with operating instructions as ‘E or S’ or ‘Any One Or Survivor’ the card can be

issued to any one or more or all the joint account holders. The number of cards issued to in an

A/c will not exceed the number of joint account holders who are authorised to operate the

account. In the accounts operated with “Former or Survivor’ card can be issued to Former only.

Not eligible

/Partially

eligible A/cs

A. Illiterate account holders /joint accounts with operating instructions as “Jointly by All” are not

eligible. However in the case where the Govt. benefits are being credited , a card can be issued

even to illiterates.

B. Account of a minor or an account in which a minor is a joint account holder shall not be eligible .

However minors having completed 15 years of age can be issued with ‘Student’ Cards with

limited facility. Validity /

Replacement/

Renewal of

debit cards

The debit cards are issued with a validity period of 5 years from the month of issue except Star Vidya

Card where validity is of 6 years. It can be used till the last day of the month in which it expires. In case

any card becomes unusable before the expiry date , it can be replaced with a new one upon the card holder

making a written application at any branch , but renewed card will be delivered at the parent branch only.

When a replacement card is issued , both existing and replaced cards will be functional for a limited period

. The existing card will be disabled automatically one day after new card is used for the first time. It is not

necessary to ask the customer to surrender the existing card when a new debit card is issued. As per the

present system the card falling due for renewal would be auto–renewed and dispatched to the branches

atleast 15 days in advance.

Attachment of

additional

Accounts

In addition to the Primary Account (the first account mentioned in the debit card application form), there

is an option to attach upto 5 additional accounts (known as Secondary accounts) on the same card. The

accounts may be at any branch of BOI under same Customer ID. When the card with multiple accounts

is used on the POS or other banks ATM, only Primary account gets debited.

Closure of the primary account will result in cancellation of the debit card.

Daily Limit for

Usage

Presently the limit is Rs.25000/- per day from BOI ATMs and Rs.10000/- other bank’s ATM in a day.

Rs.25000/- per day for POS usage, making an aggregate of Rs.50000/- per day. The limits are Card

specific and not account specific, therfore a customer having two debit cards of different brands will be

able to withdrwa Rs.25000/- from ATM and transact Rs.25000/- on POS from each of the debit cards . In

case of BINGO card POS (Shoping/overdraft) facility is available to those card holders whose age is 18

years and above. If any card holder is less than 18 years and wish to avail this shoping facility , then a

joint account of the minor along with his parent shold be opened with E or S mode of operation. The

maximum amount of overdraft facility will be Rs.2500/- and the same has to be sanctioned at the branch

level on request of the card holder. For Master/VISA Platinum Cards limit is Rs.50000/- per day for cash

withdrwal and Rs.100000/- per day for POS usage, making an aggregate of Rs.1,50000/- per day. For Star

Vidya Card Rs.1000/-per day from ATM Rs.10000/- per day only at EDC terminals installed in campus of

the educational institution.

Delivery

procedure

personalized

debit cards

Cards in inactive status are dispatched to the branch alongwith equal or more number of Insta Pins. More

number of insta pins will help the branches to create buffer at their level , thus reducing the dependency on

ZO. Any Insta Pin can be issued to any Card of the same varient only . There will be clear identification

on the cover of the Insta Pin with the logo of the brand. For VISA Cards there are two types of Insta Pins

, one for the first 6 digits of the card number as 405238 and other without any such number for all other

VISA Cards. Cards will be active only after uploaded in Finacle , linking with Insta Pins through

“ATMCRA” menu. If the Pin is issued for the cards issued by other branch , Identification of the card

holder is a must and uploading will be done through the SOL ID of the account maintaining branch only.

Pin uploading request wil be downloaded at DC 4 times a day, hence requests uploaded before 2PM will be

activated the same day and requests after 2PM will be activated next day.

106

Annual

maintenance

charges

Charges for first year of usage, for SB Account holders maintaining AQB of Rs.25000/- (In Metro and

Urban),AQB of Rs.10000/- (in Semi Urban and Rural) and Senior Citizens and Pensioners are NIL. There

are NIL charges for BINGO Card and Master/VISA Platinum Card. For all others Charges for subsequent

years under

Category of Branch Charges

Metro and Urban Rs.100/-

Semi Urban and Rural Rs. 50/-

Cash

Withdrawal

from ATM

BOI ATM NIL

Other Bank ATM

Other bank’s ATM (SB A/C

holders upto 5 transactions

inclusive of Financial and

non – financial both in a

month).

Beyond 5 transaction

NIL

Rs.20/- per transaction

CD/OD/CC No free

transaction

Transaction at

IRCTC(Railwa

y)

Rs.10 inclusive of service tax per transaction on IRCTC ticket booking. If ticket is booked at Railway

counter 2.5% of transaction amount , Min Rs.25/-.

AT Petrol

Pump

2.5% of transaction amount , Min Rs.10/-.

Re-issuance Rs.100/- for card re-issuance upon loss, spoilage etc.

Additional

Card

Rs.100/- per card.

Transaction

done abroad

Cash withdrawal Rs.125/-+2% Currency Conversion Charges

Balance Inquiry Rs.25/-

Merchant transaction at POS 2% Currency Conversion Charges

Status Inquiry Branches can view the status of uploaded card and dispatch in Finacle by using ‘ADCREQ’ menu under

option ‘I’. In case branches do not receive the debit card within reasonable time and want to know the

details of card number and AWL number , they can contact vendor on phone number 080-69999203 or E-

mail [email protected] or [email protected]. Branches can also inquire

status with the help of AWL number on the web site of India Post by using URL

http://www.indiapost.gov.in/tracking.aspx . Head office E-mail ids are [email protected]

or [email protected] or [email protected] and HO phone number

022-22682037/22682030.

Unblocking of

Cards due to

incorrect PIN

used 3 times

Debit cards are blocked when incorrect PIN no is used by the card holder , consecutively for 3 times. Any

card blocked due to this reason will automatically be unblocked the next day. However if the card holder

again enters a wrong PIN for 3 consecutive times , the card will be blocked and card holder will be

required to approach the branch for a new PIN/insta pin.

Charge Back

for ATM

/POS/IB

transaction

failure.

Use of Card At Narration in Finacle

appears as

Failed transactions claim to be lodged

with

Cash Withdrawls at ATMs CWDR//.. ATM CELL –FINACLE MENU -

ATMREV

e-Commerce transactions at POS MEDR//.. HO CPD - FINACLE MENU -POSREV

e-Commerce transaction using Internet

like IRCTC, Goods purchased through

web sites

TRTR//.. Internet Banking (IB) Cell

e-Commerce transaction using Bill

desk

BDIPG//.. Centralised operation cell of HO

Cases settled

by Banking

Ombudsman

All cases where the banking ombudsman has directed payment of charges/penalty of our customers both on

our bank ATMs as well as other bank ATMs will have to be handled by the respective ZO/Branch in

consultation with the Nodal Officers. The branch will pay the amount using Finacle menu ‘HATMOC’.

Compensation

for delay in

settlement of

Charge back

As per RBI guidelines Banks to credit the customers account within 7 working days, failing which Bank to

pay compensation of Rs.100/- per day to the aggrieved customer. The issuer bank is entitled to claim such

compensation paid from the acquirer bank, it the delay is attributed to the latter.In case of failed POS

transactions there is no such limitation and there is no penalty for delayed payment.

Time limits for

POS failures

CARD TYPE Time for settlement of claim from

date of lodgement

Max period from date of transaction for lodgement

of claim

MASTER/VI

SA

45 days 120 days

RUPAY 30 days 180 days

CARDSTAT

MENU

This menu is used for finding the card number, status of the card. It contains 3 options Inquiry, Update Del

flag, Verification.

HOTLISTING 18004251112(Toll Free 24*7),022-40429123 and 25711616 e-mail: [email protected]



http://www.indiapost.gov.in/tracking.aspx




107

Bingö Card (For youth with OD facility)/(ATM Card with shopping facilities –Master Card)

Eligibility Youth between the age of 15 years to 25 years (Age at the time of issuance of Card) for initial period of 5 years

in first instance and thereafter it will be renewed. If the age at the time of renewal exceeds 25 years then he/she

will be advised to avail other card available at that time.

Minimum

Balance

Rs.100/-

Facilities Transaction at ATM

Overdraft up

to Rs2500/-

for 30 days on

request

For Minors

the a/c will be

joint (E or

S)with parent

At ATM of BOI & ATM of other Banks

Withdrawal of Cash up to Rs.15, 000/- per day at BOI ATMs and Rs10,000/- from Other Bank’s ATMs

Balance enquiry.

At ATM of Bank of India (a and b as mentioned above plus)

Deposit of Cash & Cheques at ATM with depositories.

Transfer of balances among the accounts attached to the Card

Mini statement of last 5 transactions for any a/c. attached to the card.

Change PIN.

Transaction on Point of Sale (POS) Terminals. Up to Rs.25, 000/- per day.

Charges Transaction in INDIA (visit website for details)#

1. Annual fees NIL

2. Cash withdrawal at BOI ATM NIL

3. Cash withdrawal at other Bank’s

ATM

Up to 5 withdrawals per month from SB a/cs –NIL

charges(Additional transactions will be charged Rs 20/- per

transaction as per RBI instructions.

4. Balance enquiry (In India) FREE

5. Transaction at Railway counters 2.5% min Rs.25/-

6. Transaction at Petrol Pump 2.5% Min. Rs.10/-

7. Card re-issuance Rs.100/-

Loss of Cards

and generation

of Re-pin

Promptly report to the bank. Hot listing of the card Tel. No.022 4042 9123 e-mail IDs -

[email protected] [email protected]

[email protected]

Lodge Police Complaint and furnish copy to the Bank.

A replacement card would be issued to the customer on receipt of written application.

On written request, re-pin will be generated at the branch who has issued the card (The re-pin will

be activated after 48 hours

Internet Banking user can block their Card through the use of Internet Banking

For any other type of query you may refer to - [email protected]

Misuse of Lost

Card

Zero liability for cardholder from the time of reporting the loss of card hence report the loss of Card without delay –

Please Note down your CARD NUMBER SO THAT YOU MAY IMMEDIATELY TRACE NUMBER

Security

Card & PIN should be kept separately and register your mobile at your Branch for Alerts (SMS).

Card should be kept very safe otherwise it may be misused at POS terminal even without PIN.

Signature should be done on signature penal immediately on its receipt it may protect misuse of card at POS but

presence of Card will be taken as use of card by the card holder.

Card should be first used at ATM thereafter at any POS terminal.

PIN should be changed and should be kept secretly, so that it may not be known to any person who may misuse your

card. At POS it should be used in your presence.

PIN Mailer will be directly sent to the Applicant & Card will be given at the branch after proper identification.

Note down your Card No. and expiry date in your Diary or at any proper place so that in case of loss of card you may

be able to report loss of card easily. The Debit Card will also help you to unblock your internet Banking password. Registration For Additional Security Code ID As Per RBI Mandate is Effective

from 01/08/2009 for all online payments. This is available on bank’s website www.bankofindia.co.in under head-> cards In case, you receive lesser dispensation of Cash at ATM then lodge your charge back claim on Bank’s website or at the branch. After

verification of your claim, the claim will be settled within 12 working days.

Use of Card at

POS and

Booking

tickets

It is always better to use card at point of sale for shopping rather than carrying cash and then go for

shopping. Interest lying in the Savings Bank account earns interest for the period it is not used and interest

is calculated on daily product basis( means you earn interest even for a day) .Card may be used for

booking of Air ticket and Rail ticket. There is a nominal charge of Rs10/- for booking of rail ticket from

IRCTC site but there is no charge for air ticket booking.

Procedure for

issuance of

card

Same as for other Debit Cards. The type of Card will be B in place of D or V. For Overdraft undertaking as

per annexure (Separate for major and minor applicants) attached with BC 104/91 dated 3.11.10 should be

taken.

https://cas.bankofindia.co.in/owa/redir.aspx?C=49ed2d14126844328401a4adfdbb4df9&URL=mailto%3aecpss_boi_helpdesk%40fnis.com

https://cas.bankofindia.co.in/owa/redir.aspx?C=49ed2d14126844328401a4adfdbb4df9&URL=mailto%3aBoi.Debitcard%40bankofindia.co.in

https://cas.bankofindia.co.in/owa/redir.aspx?C=49ed2d14126844328401a4adfdbb4df9&URL=mailto%3aHeadoffice.CPD%40bankofindia.co.in

http://www.bankofindia.co.in/

108

PLATINUM CARD (MASTER CARD) Eligibility To SB or CD Diamond account customers and also under our product Jai jawan Salary Plus (for commissioned

officers).

The cards may be given to any one or to all the joint account holders provided

joint a/c is operated upon by either or survivor or any one or the survivor. In Former or survivor a/cs the card

will be given only to Former. No card will be given to Minors or joint a/cs with Minor, or to illiterate account

holders and also to a/c operated jointly.

Minimum

Balance

This card is for Diamond account customers hence AQB is Rs 1 lac for SB and Rs2 lakh for CD

Under Jai Jawan Salary Plus accounts ( for commissioned Rank officers) the minimum Balance is Zero

Facilities Transaction at ATM

At ATM of BOI & ATM of other Banks

a. Withdrawal of Cash up to Rs.50000/- per day at BOI ATMs and Rs10,000/- from Other Bank’s ATMs(Only

primary a/c will be debited at other Bank’s ATM) b. Balance enquiry.

At ATM of Bank of India (a and b as mentioned above plus)

a. Deposit of Cash & Cheques.

b. Transfer of balances among the accounts attached to the Card.

c. Mini statement of last 5 transactions for any a/c. attached to the card.

d. Change PIN.

Transaction on Point of Sale (POS) Terminals.

Up to Rs.1 Lakh- per day.

Upto 5 additional a/cs ( in the same capacity and same operational instructions)may be attached to one card. When the

Card linked with multiple accounts is used at POS or other Bank’s ATM , the primary account will be debited. Primary

account should be closed only after 7 days of surrendering the card.

Charges Transaction in INDIA

1. Annual fees NIL

2. Cash withdrawal at BOI

ATM

NIL

3. Cash withdrawal at

other Bank’s ATM

There will be no charge on ATMs having network with our Bank (NFS, Cash

Tree or Bancs)

5 transactions per month are free for cash withdrawal on any other non networked

ATM as per RBI guidelines. Additional transactions will be charged at Rs 20/- per

transaction for the usage of Card at non networked ATM i.e. other than NFS, Cash

Tree or Bancs

4. Balance enquiry (In India) FREE

5. Transaction at Railways 10/-( CPD has to advise about charges )

6. Transaction at Petrol Pump 2.5%Min. Rs.10/-( CPD has to advise about charges )

7. Card re-issuance NIL

8. Additional Card (per card) NIL

Transaction ABROAD ( CPD has to advise about charges )

Balance enquiry ( CPD has to advise about charges )

Merchant transaction at POS

and ATMs

Currency conversion charges( CPD has to advise about charges )

Loss of Cards

and

generation of

Re-pin

Promptly report . Hot listing of the card Tel. No.022 4042 9123 Toll Free 18004251112 e-mail IDs - [email protected] [email protected]

1. Lodge Police Complaint and furnish copy to the Bank.

2. A replacement card would be issued to the customer on receipt of written application.

3. On written request, re-pin will be generated at the branch who has issued the card (The re-pin will be activated after

48 hours)

For any type of query you may refer to - [email protected]

BOI help line 022- 40919191 (8 A.M. to 11 P.M.)

Misuse of Lost

Card

Zero liability for cardholder from the time of reporting the loss of card hence report the loss of Card without delay –

Please Note down your CARD NUMBER SO THAT YOU MAY IMMEDIATELY TRACE NUMBER

Security

1. Card & PIN should be kept separately and mobile number should be registered in CUMM at the Branch for

Alerts (SMS). 2. Card should be kept very safe otherwise it may be misused at POS terminal even without PIN.

3. Signature should be done on signature penal immediately on its receipt it may protect misuse of card at POS but

presence of Card will be taken as use of card by the card holder.

4. Card should be first used at ATM thereafter at any POS terminal.

5. PIN should be changed and should be kept secretly, so that it may not be known to any person who may misuse your

card. At POS it should be used in your presence.

6. PIN Mailer will be directly sent to the Applicant & Card will be given at the branch after proper identification.

7. Note down your Card No. and expiry date in your Diary or at any proper place so that in case of loss of card you may

be able to report loss of card easily. The Debit Card will also help you to unblock your internet Banking password.

8. Registration For Additional Security Code ID As Per RBI Mandate is Effective

from 01/08/2009 for all online payments. This is available on bank’s website www.bankofindia.co.in under head-> cards 9. In case, you receive lesser dispensation of Cash at ATM then lodge your charge back claim on Bank’s website or at the branch. After

verification of your claim, the claim will be settled within 12 working days.

Issue of

Platinum

Card

There is same procedure to issue Platinum Card as for other Debit Cards but in place of D you will have to fill

P in the system to identify that request is for Platinum Card. After activation of Platinum Card at ATM the

present card issued in the account will be deactivated from the next day.

https://cas.bankofindia.co.in/owa/redir.aspx?C=49ed2d14126844328401a4adfdbb4df9&URL=mailto%3aecpss_boi_helpdesk%40fnis.com


https://cas.bankofindia.co.in/owa/redir.aspx?C=49ed2d14126844328401a4adfdbb4df9&URL=mailto%3aHeadoffice.CPD%40bankofindia.co.in

http://www.bankofindia.co.in/

109

BOI GIFT CARD( MAGNETIC STRIP BASED PREPAID VISA CARD)

Features :

Gift Cards can be issued in Indian Rs for a min of Rs. 500/- and max Rs.50000/- in multiples of Rs.

1/-

BOI Gift Cards can be issued by any branch

Gift Card is acceptable at all Visa Merchant Establishments in India, Nepal and Bhutan and can be

used any number of times up to the amount loaded (Balance available in the Gift Card )

The card is valid for 1 year from the date of activation

FEE FOR ISSUANCE OF GIFT CARD: Free upto 31-03-2012 BC105/125dt21.10.2012.

0.90% of amount loaded on the card subject to min Rs.100/- per card whichever is higher. Amount

of fee will be in multiple of nearest Rs.1/-

WITHDRAWAL of Cash from ATM: NOT PERMITTED

PROCEDURE FOR ISSUING CARD: 1. Obtain application form duly filled in and duly signed by the purchaser of Gift Card( In case the

purchase is not our customer then additional documents as listed below)

2. Recover amount to be loaded and applicable FEE i.e.0.90% of the amount to be loaded on gift card

or Rs.100/- per card whichever is higher in multiple of nearest Rs.1/-

3. Credit the amount in following a/cs

010190200000006 – Gift Card Amount Remitted

010190200000007 – Gift Card Fees remitted 4. The transaction id generated will be noted on application form and will also be entered in Online

application form

5. Online application form for activation the gift card will be available on intranet

https://192.168.153.52/apply 6. Enter the application particulars online on the basis of maker / checker concept. Each branch would

be given two User ids for entering the application data and for verification of the same. A small

manual is sent along with the user ids .For any problem you may contact Card Product Department.

7. The amount to be entered in the online Application Form should be the total amount i.e. Amount of

Gift Card+ Amt of Fees.

8. The ref number mentioned on the envelope of the Gift Card is to be entered in the space provided for

Apply Id. This will generate the card no. in the application form.

9. After verification of the Online Application form, the gift card is processed by the Service Provider

and the card is activated. The beneficiary of the gift card can use the card from the next day.

10. Documents required

The branches, whilst issuing Gift Cards to applicants not maintaining an account with the branch

or maintaining a Non KYC compliant account, should ensure to collect the following documents

from the applicant:

i. Up to Rs. 1000/- any acceptable identity document of the applicant.

ii. Up to Rs. 5000/- any “officially valid document’ defined under Rule 2(d) of the Prevention

of Money Laundering Act as proof of identity.

iii. Above Rs. 5000/- and up to Rs. 50,000/- , KYC requirements of RBI, issued from time to

time is to be followed and documents obtained accordingly.

Inquiries regarding balance available, expiry date etc. can be made at our Service Provider’s 24x7

Helpdesk No. 022 40426006. Hot listing of gift card can be done 24x7 on All India Toll-free No.

1800 22 00 88 or 022-40426005.

https://192.168.153.52/apply

110

SANDIPANI ONE PAGE MANAGER SERIES

BOI BTM (Banking Through Mobile) for smart phones with Immediate Payment Service-

(IMPS) Branch Circular No.107/103 dated : 10.09.2013.

Objectives and

features

Introduced as an alternate delivery channel for fund transfer within accounts of Bank of India as well as

other IMPS registered member banks with National Payment Corporation of India through mobile smart

phones at any time and from anywhere i.e. 24x7x365 even on bank holidays. Even though the beneficiary

is not registered for IMPS , however fund transfer using IFSC code and account number can take place.

NPCI to act as central routing agency. Sender and beneficiary are communicated by means of SMS about

the fate of transaction. Real time and cost saving as NO Charges are being levied by the bank to

customers at present.

Compatibility Operating System Versions

ANDROID 2.2, 2.3 , 3.0 , 4.0

BLACKBERRY 4.6 , 5.0 , 6.0 , 7.0

Iphones 4.0 , 5.0

Downloading of

application

Customers will have to download the application from major app stores like Google’s PLAY STORE

Android , Blackberry App Word for Blackberry and App Store for iPhones. The application can be

serched by the name BOI-BTM in these app stores, No other modes of downloading of application

currently available.

Types of facility

available

MB is available with two options i.e. VIEW ONLY OPTION (V) or (T ) VIEW AND TRANSACTION

option. Appropriate daily limit will be applicable in case to fund transfer facility i.e. ‘T’ option.

Customer

Registration

Process (2

methods)

1. only Individual customers can apply to their Parent branch in prescribed application format . Branch

officials after verifying the KYC of the customer will add the request in finacle system executing

BOIBTM menu (Maker / Checker concept applies). If the customer is also having internet banking user

id on this custid , his IB userid will become MB user id otherwise the custid will become MB userid.

Option is available for inquiry /modification of existing MB request.

2. Individual customer having retail I B can register for MB using his/her IB login creditential by

clicking the link BTM MOBILE BANKING under Requests menu. Under this link 3 options are

availbble 1) Enroll for MB 2) Modify existing MB request 3) Enable transaction password for MB. On

successful validation of IB credentials , customer will be registered for mobile banking on next working

day and will be informed by SMS on his registered mobile number.

MB application –

Installation and

user guidelines

After downloading the application from relevant app store and installation customer needs to send an

SMS from his registered mobile NO. by typing the key words ‘starotp’ and send it to banks long code

9810558585. After accepting the ‘Terms and Conditions’ in the home page customer needs to activate by

selecting ‘Activate mobile banking ‘ option and should enter MB id and OTP received through starotp

when prompted. Upon authentication of MB id and OTP, customer can set MPIN which is 4 digit

numeric value. MPIN can be changed as and when required using change MPIN option. By default view

only facility will be activated. Customers opted for transaction facility can set their transaction password

at the time of registration. Transaction password is Alpha Numeric (min 6 to max 10 chars). For

activation of Transaction password one needs to place the request for enabling either through branch or

Internet banking portal.

Process to

transfer

funds(IMPS)

Immediate Mobile Payment Service (IMPS) is a service introduced by NPCI. The features of IMPS are

also available in the current version of BOIBTM. The 2 methods of IMPS are 1. IMPS Fund transfer to

Mobile Number (IMPS-P2P) and 2. IMPS Fund transfer to Account Number (IMPS-P2A). The

beneficiary details required for IMPS-P2P are a) Beneficiary MMIS b) Beneficiary Mobile number and in

case of (IMPS – P2A) required details are a) Beneficiary account Number and b) beneficiary IFSC code.

What is MMID? MMID is a 7 digit number can be generated by sending SMS with key words ‘MMID’ using registered

mobile number of customer to 9810558585. Otherwise after login into application ,under IMPS tab option

for generation of MMID is also available. Customer can retrieve or cancel MMID by sending SMS with

key words MMID for retrieval and ‘CANCEL MMID’ for cancellation to 9810558585.

Tracking of

mobile banking

status of a

customer

Branch official can inquire about the mobile banking status of a customer using the menu option

‘MBSTATUS’ provided in finacle.Branch can search the record by entering any of the three values i.e.

CustId , Mobile Number , MB User Id.

Customer

Grievances

Customers can send email to [email protected] or may contact on 1800220229 for any

further query / assistance.

MB-MOBILE BANKING , IB-INTERNET BANKING


111

SANDIPANI ONE PAGE MANAGER National Electronic Funds Transfer (NEFT)

RBI has introduced National Electronic Funds Transfer (NEFT) system for carrying out inter Bank funds transfers

within India among the participating banks. NEFT is basically designed for retail Customer Remittances. Under

NEFT minimum amount is `1/- and there is no upper limit for remittances amount.

Eligibility: - Any Customer of our Bank having SB/CD/OD/CC account can avail this facility.

Our Mumbai Service Branch hosts the NEFT server and acts both as sending as well as Receiving Service

Centre of our Bank.

Work Flow of Outward Remittance

i) Customer approaches any Branch of our Bank and fills the prescribed application form with Beneficiary detail

with IFSC Code of the Receiving Bank Branch.

ii) The sending Branch will use menu option in “HRTGS” and choose paysys ID option as NEFT for entering the

detail in FINACLE for remitting funds to other Bank Branches. At this time System will provide UTR No. for the

message generated and the status of the message will be “E“ (Entered).

iii) After verification through menu “HRTGS”, the status of the message will change to “R“ (Ready). After that

Finacle system will put this message in NEFT queue and the status of the message will change to “T”

(Transmitted). The A/C of the Customer will be debited and NEFT settlement A/C with Mumbai Service Branch

will be credited.

iv) Then NEFT system will process the message. If message processing is successful, the status of message will

change to “P” (Processed). But id processing is failed during validation then the Finacle system will reverse the

entries and Customer A/C will be credited back and the status of the message will change to “U” (Unsettled).

v) After passing through NEFT validation process, our Mumbai Service Branch NEFT team will authorize or reject

the message as the case may be using their Digital Signature provided on Smart Card.

vi) After authorization again NEFT message will be processed by NEFT system and after succesfull processing the

status of the message will be updated by FINACLE as “S” (Settled).

Work Flow of Inward Remittances

i) Inward message received from RBI will be parked in NEFT system designated queue after processing by NEFT

system. Then Finacle will process the Inward message after picking it from NEFT Server queue and will try to

credit the beneficiary account based on account number provided by sender bank.

ii) If system finds the account no. it will credit the beneficiary account and the status of the message in FINACLE

will be “P” (Processed). But if the system doesn’t find the beneficiary account no. then temp account at Mumbai

Service Branch “02000NEFTTMP001” will be credited and the status of the message will be “U” (Unprocessed)

in FINACLE.

iii) All failed messages will be handled by Mumbai Service Branch and they will generate return messages (N07)

with the help of menu option “PIRP” (This menu is only for Mumbai Service Branch). At this time

“02000NEFTTMP001” account will be debited and NEFT settlement account will be credited.

iv) Finacle system will validate all such failed messages for B+2 timing after that user will have to accept messages

and will have to credit the beneficiary account manually or return the message by generating fresh outward

message (N06).

Charges: Upto1Lac – NIL; Above`1 Lac to `2 Lac -`15/- + STpertransaction;Above`2 Lacs -`25/- + STper transaction. Please note that the charges are being applied by the system itself and necessary changes whenever required is being

made by the HO I.T.Department.

NEFT Report Generation -- Various type of Reports can be generated by using Menu “NEFTRPT” Various functions to generate report are: O – NEFT Outward report I – NEFT Inward report N – No. of Transactions per day A – Advice Print M – NEFT accepted due to B+ timings X – Inward reject report Branches may inquire status of both the messages from the menu “HRTGS”. Branches are required to ensure that all their ourward

messages are showing status as “S” (Settled). If in any case status is “U” (Unprocessed), system must have reversed the amount to

the credit of sender account. In case system has not reversed the entries then the branch will required to contact the Mumbai Service

branch and upon confirmation required to reverse the amount manually.

Branches are advised to generate reports on daily basis for both outward as well as inward messages and check their status.

Branches are alos advised to check the correctness of Credit affected by system i.e. based on account no. name etc. provided by

other Bank which appear in report. In case of differences in account no. and name, branches must return the message to sender bank

with appropriate reasons.

Branches may contact Finacle Help Desk IP Phone 1111 for any issue/clarification regarding “HRTGS” menu

option in FINACLE. For NEFT related queries / information you may contact Mumbai Service Branch on

phone 22886680, 22820749, 22830064, 22834063 and IP phone 12531, 12541.

(Ref. Branch Circular No. 100/32 dated 22.05.2006, No. 100/155 dated 27.12.2006, No. 101/94 dated 03.08.2007,

No. 105/181 dated 13.02.2012, and Circular Ref. No. 2012-13/75 dated 02.07.2012)

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Real Time Gross Settlement (RTGS)

Real Time Gross Settlement (RTGS) is an electronic payment and settlement system introduced by RBI in

March 2004. Our Bank has introduced the product Star Insta Remit using RTGS and NEFT. Inter Bank RTGS

settlement takes place on, real-time on-line basis. Funds are transferred using Straight Through Process (STP) which

enables transfer of funds to beneficiary account on-line.

Under RTGS the minimum amount that can be remitted is `2Lacs and above and there is no cap on

maximum amount in case Customer to Customer payment (message type “R41”). Also there is no cap on minimum

and maximum amount in case of Inter Bank Transaction (message type “R42”).

Eligibility: - Any Customer of any designated Branch having a cheque book facility in SB/CD/OD/CC account can

avail this facility.

Outward RTGS messages:

i). All CBS Branches use “HRTGS” menu for creating, verifying all RTGS outward messages.

ii). To know the status of the message released, the inquiry option in the HRTGS menu or the “RTGSRPT1”

reports may be used. The following are the different message status displayed:

T – Message has reached the Payment HUB

P – Message processed and forwarded to Bank’s Payment Gateway

U - Message unprocessed and returned due to error

S - Payment settled at RBI. (a Good Payment)

F - Payment failed at RBI (e g, Operating session over)

iii) In respect of unprocessed messages (message status ‘U’) CBS branches, will have to see the error code returned

by the HUB and know the reason thereof. Most of the time it is due to usage of special characters in the text of the

message that are not permitted in the RTGS system. Branches are therefore advised not to use any special characters

like! @, #, $, %, ^, & * {,}, [,]… etc in the text of message. If absolutely necessary, please circumvent by converting

it to a piece of text like, & into ‘and’, @ into ‘at’ etc.

iv) Accounting entries for RTGS payments sent using HRTGS will be system generated including reversal of the

entries in case of unprocessed and failed messages

All outward payment messages should be sent atleast 15 minutes before the respective RTGS session cut-off time.

Messages released by branches at the fag end of the operating sessions may fail and may not get settled.

Inward RTGS messages

Inward customer messages (R41) are expected to be credited to the beneficiary’s account straightaway without manual

intervention. If the beneficiary’s account number is given in the 15 digit format, the automatic processing will be

successful. Where the beneficiary account number is incorrect or inadequate, the remittance will be credited to a

Centralized Sundry account titled as “02000RTGSRTN001” at Mumbai Service Branch. An Automated Process in

FINACLE will look for Inward RTGS (R41) message with Unprocessed “U” satus. This process will construct fresh

Outward RTGS (R42) message corresponding to Inward RTGS unprocessed message with required details and

transmit to RTGS system for further process. While doing so the system will also change the status of Inward

unprocessed RTGS messages from Unprocessed “U” to Return “X”. The UTR of such Ourward return message can be

seen in third line of first page if inward message is inquired in HRTGS menu. Please note that this Automatic

return process is only for all Invalid/Failed Inward R41 RTGS messages.

i) All inward remittances to NRE Rupee accounts will be parked in the <sol-id>RTGSTMP001 account. Branches are

expected to follow the extant guidelines from our H.O. Foreign Business Department in this connection while

processing Inward RTGS remittance to such accounts.

ii) All inward interbank payment messages (R42) will be responded to by the system automatically and the funds

received will be parked in the aforesaid Sundry Credit Account. It will be the responsibility of the Branches concerned

to verify the details of the remittance and ensure that credit is passed on to the appropriate account. Inter-bank

payment is one where neither the remitter nor the beneficiary is a customer of a bank. For example, reimbursement of

TT discounted, remittance of proceeds of Bills/cheques sent for collection, are Inter bank remittances.

iii) The details of all inward remittances are available in the “RTGSRPT1” report. This report is available in two

parts i.e one for Normal messages (Option “R”) and the other for failed messages (Option “F”). Normal shows

those messages processed by Finacle and the failed shows those that could not be processed by Finacle.

Branches should generate the abovesaid two reports at regular intervals every day to ensure that all inward

remittances are properly responded to, the same day. Branches are also required to monitor the aforesaid sundry

account (at their Branch) at regular intervals to ensure that there is no balance in the account on account of any RTGS

inward remittance lying un-responded.

iv) It should be firmly noted that any inward RTGS payment not pertaining to a branch is returned within 2 hours from

the time of receipt of the message.

It is imperative that the “RTGSTMP001” account is monitored at regular time intervals to ensure a fast and

complaint-free customer service. Any manual reversal of RTGS related accounting entries at CBS branches should

happen only after taking abundant precaution. Also, all customers should be advised to provide their 15 digit

account number to all their business partners so that inward remittance to their accounts are processed

straight through successfully and the failure in STP is brought down completely.

(Ref. Branch Circular No. 99/55 dated 28.06.2005, No. 101/35 dated 12.06.2007, Circular Letter no.

2010-11/223 dated 11.01.2011, Circular Letter no. 2013-14/26 dated 04.05.2013)

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Star Connect Internet Banking

Internet Banking is a platform which allows customers to fulfill their Banking needs like Inqiry/Financial

transactions through a secure Website anytime, anyplace at their convenience. It also offers a convenient

way of carrying out Banking online without visiting the Branch. It saves the precious time and money of

customers. It also saves our per transaction cost. The Internet Banking channel alos helps us to acquire new

business. Internet Banking is a need in today’s competitive environment.

We have introduced CBS-Internet Banking from Oct2004, and the available functionalities in our Internet

Banking are at par with most of the private sector banks. Moreover our Internet Banking transactions are

secured by robust security infrastructure.

Classification of Customer (Retail/Corporate)

The determining factors for deciding whether the Customer should be extended our Retail Internet Banking

or Corporate Internet Banking is Customer Constitution and Trade Finance Facility. The matrix to decide

this is as under:

Retail Internet Banking Corporate Internet Banking

Constitution Individuals

Sole Proprietor

HUF

Non – Individuals

Partnership

Trust

Private Limited Companies

Public Limited Companies

Society

Body Corporate

Trade Finance Facility NO Yes

Procedure/Guidelines for Registring Customers for Internet Banking

The Branches shall receive the request form from Customer on prescribed format, which is already

available on the login page under link “New User” at our Bank’s Website. For Retail Internet

Banking it is Annexure – 1 and for Corporate Internet Banking it is Annexure – 2.

Then after verification of the contents of the Customer’s request with the available Branch records,

Branch has to use the mentioned below menus for entering Customer’s request in Finacle:

STCON --- For entering the Customer’s request in Finacle

STCONV --- For verifying the Customer’s request in Finacle

The above menus are also used for Acknowledgement/Unblock and Regeneration of Password

if customer requires.

(After issue of Internet Banking User id and Password, Acknowledgement/Unblock and

Regeneration of Password can also be done by Customer itself without visiting the Branch by

using Debit Card Credential. Customer will have to click Forgot Password link available on login

page of Bank of India Retail Internet Login page.)

After that the following Internet Banking credentials are being communicated directly to the

Customer through Pin Mailer at their Communication address:

Retail Internet Banking Customer Corporate Internet Banking Customer

User ID

Login Password

Transaction Password (ONLY IF

Transaction facility is requested)

Corporate ID

Corporate User ID

Login Password

Transaction Password (ONLY IF

Transaction facility is requested)

Facilities Available:

Accounts:

Customer can view all his accounts, which are linked to his Customer ID. You can also generate and print

statement of your account. You can view TDS deduction inquiry and your Tax Credit statement (26AS)

also. You can link your Aadhaar Number yourself without visiting the Branch. Customer can also avail

online Nomination facility but this can be only for addition of Nomination and not for any variation /

cancellation of Nomination.

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PPF (specific for Retail Internet Banking Customers): Customer can view account details, view statement of their PPF accounts. They can also transfer funds to

their PPF account at their convenience without visiting branch. For activation of this facility, Branch will

have to link the PPF account of the customer by using menu “PPFMNT” in Finacle.

Transfer:

Customer can transfer funds within his own accounts. He/She can also transfer funds under Third party

transfer i.e. other customer account in any branch of our Bank. They can also transfer funds through NEFT

/ RTGS. Customer can set new Standing Instructions and can also view / revoke standing instruction.

Tax Payment:

Under this facility, Customer can pay their Central Excise and Service Tax any time any where and their

account will be debited online. The Challan can also be generated and printed online.

Credit Card (Specific to Retail Internet Banking Customers):

Customers can view their linked credit card details like limits, billed and unbilled transactions and will

provide facility to have statement and also make payments. For activation of this facility, Branch will

have to link the Credit Card with the Customer ID by using menu “CCMNT”

Requests:

Customers can avail the mentioned below facilities online anytime anywhere without visiting the branch:

Reqest for BTM mobile banking, ASBA IPO request, Making TDR, Cheque book request, Cheque book

status enquiry, NSDL DP account access request. They are also able to change / reset their Debit Cum

ATM Card PIN, request for hotlisting of Debit Card, Unblocking of Debit Card.

Mails:

Customers can also save Cyber Receipts generated by the System for various requests like – Fund Transfer,

Cheque Book Request, etc. as a mail in your Inbox by clicking on the button “Send Mail” in the respective

screen.

Options

Change Internet Login Password, Change Transaction Password, Modify Contact Information,

Customization, Financial Activity Enquiry & Non Financial activity enquiry.

Utility Bill Payments:

In order to facilitate our Customers for Utility bill payment, Railway / Airline ticket booking, mobile

recharge, Insurance premium payment etc, we have tied up payment gateway aggregators (the agencies who

tied up various biller/merchants in order to facilitate customer for online payment).

The Customer needs to initiate the payment by visiting to the billers’ site.

Additional Facilities in Corporate Internet Banking :

Beyond the facility of our Retail Internet Banking, it meet the complex requirements of Corporate

Customers like Profile based access, account level restriction for their multiple users, imposing limits on

the Fund Transfer, Multi-level workflow for doing transaction in maker checker concept, file upload for

Bulk transaction posting, details of their Trade Finance accounts etc.

In Corporate Internet banking one Compay/Firm/Body corporate may have more than one users and all

these multiple users will have different Mobile numbers. Therefore in case of multiple users, for entering /

updating the Mobile numbers of the respective users so that they can able to receive SMS and OTP on their

own Mobiles, the Branch will have to enter and verify the record by using menu option “CORPMOB” (this

menu option does not update CUMM Mobile number details.) in Finacle.

Security features in Internet Banking -- Star Token

Star Token is the next generation Internet Banking security solution. Apart from providing a Two Factor

Authenticaton (2FA) solution, Star Token offers a set of additional security features. If you are using Star

Token you are assured that you are connecting to authentic Bank of India website and not a phishing

website. Star Token protects you from the loss of your money (while performing Internet Banking) due to

various known Internet Banking threats such as Man in the Middle, Man on the Machine and Man on the

Browser.

After activation and login into the Star Token on machine, the Customer should “Change Secret Question

/ Answer” from the “My Secrets” Tab. (Ref. Branch Circular No. 107/112 dated 20.09.2013)

115

SANDIPANI ONE PAGE MANAGER SERIES-OTHERS (KYC NORMS) /02 30.11.2013

KNOW YOUR CUSTOMER & ANTI MONEY LAUNDERING MEASURES The Indian Banks Association framed the model policy for “Know Your Customer’ & “Anti Money Laundering” as

per the instructions of R.B.I. The same is adopted by our Bank Board on 24th

May 2005.Policy revised BC106/123 dt

07.11.2012 & reviewed guidelines by RBI in revised BC107/9 dt 10.04.2013.

1. Offence of Money Laundering: Section 3 of Prevention of Money Laundering (PML) Act 2002 defines – “Whosoever directly or indirectly attempts

to indulge or knowingly assist or knowingly is a part or is actually involved in any process or actively connected with

the proceeds of crime & projecting it as untainted property shall be guilty of offence of Money Laundering”.

Money Launderers use the banking system for clearing ‘dirty money’ obtained from criminal activities with the

objective of hiding / disguising its source.

2. Obligation under PML Act – 2002: Section 12 of PML Act – 2002 places certain obligations on every bank / financial institutions as follows:

- Maintaining a record of prescribed transactions

- Furnishing information of prescribed transaction to specified authority.

- Counterfeit Currency Report(CCR) by branch to Z.O. within 3 days of transaction which in turn report to FIU-

IND(format ofCCR in B.C.102/124 of 30.9.08)

- Verifying & maintaining records of identity of its clients

- Preserving above records for 10 years from date of cessation of transaction.

3. Objective: - To prevent criminal elements from using the Bank for Money Laundering Activities.

- To enable the Bank to know the customers & their financial dealings better.

- To put in place appropriate control for detection & reporting of suspicious activities.

- To comply with applicable laws and regulatory guidelines.

- To take necessary steps to ensure that the relevant staff are adequately trained in KYC / AML Procedures.

4. Scope: The policy is applicable to all branches.

5. Customer: A customer for the purpose of policy is defined as –

- A person / an entity that maintains an account &/ or has a business relationship

- One on whose behalf the account is maintained

- Beneficiaries of transaction conducted by professional intermediateries

- Any person or entity connected with a financial transaction

6. Key Elements: Submission of CR-12- monthly by branches to Z.O. by 7th of next month (B.C.102/143 of 18.11.2008 )

Customer Acceptance Policy – Classify customers in to various risk categories, verify their identity, No Account of

Benami / Annonymous.

Customer Identification – This is to be verified while establishing the business relationship/ Bank feels necessary to

obtain additional information for existing/ new customers such as Address/ Date of Birth etc. If Photo ID is available

no introduction is necessary. In case of Joint A/Cs, Current A/Cs, Company’s or Trust A/C photo ID of Individual

person should be obtained & verified. In case of N.R.I. copy of Passport & Residence Visa duly verified to be

obtained. Customers are to be classified as High Risk / Medium Risk / Low Risk Customers.

Maintaining of Transactions – Special attention to be paid to all complex, unusually large transactions / unusual

patterns.

Risk Management – Bank’s internal Audit & Compliance functions will provide as independent evaluation of KYC /

AML policies and procedures.

7. Customer Eduation: Bank recognizes the need to spread awareness on KYC / AML measures & rationale behind these among the

customers.

8. Introduction of new Policy: Bank will take necessary steps to prevent misuse of technology, innovations for Money Laundering activities. The

PML Rules come in to effect from 1st July 2005.

9. Existing Customers: KYC will be applicable to the existing customers on the basis of materiality and risk.

The policy shall also apply to the branches, subsidiaries & majority owned joint ventures located abroad, to the extent

local laws permit. The policy will apply to Bank’s dealings with correspondent Banks.

Bank will designate a senior officer as “Principal Officer” who shall be responsible for implementation and

compliance of this policy. He has to ensure the reporting of transactions as required under the law. He will maintain

liaison with law enforcement agency and also ensure submission of periodical reports to Top Management / Board.

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10. Risk Perception: Bank is exposed to following risks:

a. Reputation Risk – Risk of loss due to severe impact on reputation.

b. Compliance Risk – Risk of loss due to failure of key-regulations

c. Operational Risk – Risk of loss due to inadequate or failed internal process, people and systems or

from external events.

d. Legal Risk – Risk of loss due to any legal action Bank or its staff may face due to failure to comply

with the law.

11. Low Income Group Customers: Bank can open the accounts of such persons (Without Photo ID) with introduction from another a/C-Holder, whose

a/c is 6 months old and conducted satisfactorily subject to: -

a. Balance in said Customer’s all account should not exceed Rs. 50,000/-

b. The total credit in all accounts should not exceed Rs. 1,00,000/- during the financial year.

c. If either of the above ceiling is exceeded, usual KYC guidelines to be fulfilled.

d. In case of non-compliance operations would be stopped.

e. His/her photograph and address is certified by the introducer.

f.

12.BC 106/33 dt 17.05.2012 Transferee branch should not insist for fresh kyc documents ,however fresh address

proof may be obtained in case a/cs transferred from another branch. In case a/cs transferred from another

bank ,Email ID of the branch concerned on the letter Head under their branch seal may be obtained. Acc to

RBI the responsibility of transferring the kyc certification will be on the transferor bank. RBI has allowed a/c

portability.

13.Cir letter 2012-13/54 dt 29.05.2012 Branches are advised to strengthen the KYC/AML norms specially i) risk

profiling/categorization ii) review of risk categorization iii) updation of customer identification documents at

requisite interval and iv) monitoring of transaction details

14.Cir letter 2012-13/107 dt 23.07.2012 Obtention of Introduction not required where complete KYC

documents are available .In case of certain documents the identity proof as well as address proof is available on

the same document eg passport, driving licence,election card etc .In such cases only the single document should

be obtained alongwith the recent photograph..In case address filled in on the account opening form is different

,separate address proof should be obtained.

Note: Detailed procedure for compliance of KYC norms in the existing accounts including freezing of default

accounts and re-activation on compliance is given in Branch Circular No.102/172 of 27.12.2008 & Cir. Letter

No. 2009-10/135 dated 16.10.2009.

In case of need please refer to Br. Cir. 99/44 of 10.06.05; 99/144 of 20.12.2005; 99/179 of

21.02.06;102/124 of 30.9.2008; 102/143 of 18.11.2008; 102/172 of 27.12.2008. BC 106/123 dt 07.11.2012;

106/140 dt.17.12.2012;107/9 dt10.04.2013;107/56 dt27.06.2013;107/86 dt.07.08.2013.

Monitoring Suspicious Transactions -installation of AML Software

Reporting to FIU – India- HO Br. Circular No.103/120 of 06.10.2009. Guidelines have been issued from time to time by HO regarding monitoring of transactions, identification of

suspicious transactions and submission of Suspicious Transaction Reports (STRs) to the Financial Intelligence Unit-

India (FIU-IND), Ministry of Finance, Government of India, New Delhi, under the provisions of Prevention of Money

Laundering Act, 2002 (PML Act) and the Rules there under.

2.Looking into the importance of the above reporting HO has installed a comprehensive Anti Money Laundering

software known as ‘AMLOCK’ centralized at HO for scrutinizing the transactions in the accounts and identifying

suspicious transactions. The system will work as under:-

i. After End of Day operation (EOD) in the Finacle system, the data is uploaded into the AMLOCK on daily basis.

The AMLOCK processes these data on the basis of the suspicious nature scenarios available in the package and

identifies the transactions, which have breached the financial parameters assigned for each scenario and generates

the necessary ‘alert’.

ii. These Alerts are scrutinized manually to ascertain whether the transactions are indeed of suspicious nature, being

not in tune with the business/activity of the relative customer.

iii. The transactions pertaining to the said Alerts generated from the Finacle system keeping in view the nature of the

account, activity /business, amount/ frequency of the transactions, etc. shall be referred to the respective Zonal

Offices.

iv. Zonal Offices will immediately take up with the concerned Branch/Branches and ascertain the genuineness of the

transactions maintaining full secrecy of the process. The guidelines regarding identification of the transactions as

suspicious are given in the HO Br. Circular No.103/120 of 06.10.2009.

v. Transactions confirmed as suspicious are reported as STRs in the format specified by the FIU-IND.

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3. Similarly the consolidated Cash Transaction Reports (CTRs) generated at HO level are also submitted to the FIU-

IND every month. Branches are advised to scan through their account master data and ensure that correct data is

provided especially In respect of BSR Code, Branches should ensure that the same comprises of seven digits with

prefix ‘0’.

4. As per the extant guidelines, Branches are required to submit the Counterfeit Currency Reports (CCRs) in the

specified format, regarding all cash transactions, where forged or counterfeit Indian currency notes have been used as

genuine. The instructions contained in HO BC No. 102/124 dated 30.09.2008 should be meticulously followed and

time schedule of submission of CCRs should be adhered to. HO has again advised that transactions involving

counterfeit currency notes should be invariably reported to them through the respective Zonal Offices and no cover-up

of such transactions should be attempted /done at the Branches. A specimen of the CCR format is enclosed with the

above said circular.

5. The reporting of CTRs, STRs and CCRs are statutory requirements under the PML Act, 2002 and any non

compliance of the provisions shall attract penalties under the Act, which shall be viewed seriously. Opening A/cs of

PEP or close relatives should be subject to close CDD & enhanced monitoring. In case transactions carried out by a

non account based customer exceeding Rs.50,000/ customer’s identity & address proof should be verified and in case

of doubt bank may consider filing STR to FIUIND. All international money transfer transaction of non account based

customer irrespective of value should be transacted only after verification of their identity & address and proof should

be obtained.

KYC Compliance in NGO Accounts: In the present scenario of growing menace of terrorism, in our country as well as globally, HO has directed the

branches to undertake immediate review of the positions of KYC Compliance in all the NGO accounts at their end,

both at the time of accounts and accepting various transactions in the accounts there after. (Ref: BC 103/129 dated

28.10.2009).

HO has advised the branches to undertake a review of the accounts of Multi Level Marketing (MLM) Agencies and

immediately report any unusual operations noticed during such review which should be reported to the higher

authorities. Issue of cheque books in bulk to such MLM customers should be discouraged. (Ref: Branch Circular

Letter no.146/103 dated 28.10.2009).

Circular Letter No. 09-10/259- Submission of CCR (Counterfeit Currency Report) to FIU-INDIA.

Branches to inform their Z.O. within three days from the date of all cash transactions where Forged/ counterfeit

currency notes have been used as genuine notes so as to enable H.O. to inform the same to FIU-IND.

Circular Letter no.09-10/210.- Submission of CTR (Cash Transaction Report) by branches.

In terms of BC No. 99/179 dated 21.02.2006 on KYC standards and AML measures in detail.

i) All cash transactions of value of more than Rs.10.00 lakh or it’s equivalent in Foreign currency.

ii) Individual transactions below Rs.50000/- may not be included.

iii) All cash transactions where involvement of Counterfeit currency notes

Letter no.09-10/210.- Submission of CTR (Cash Transaction Report) by branches

B.C.No.130 dated 04.11.2009-Obligation under Prevention of Money Laundering Act 2002 Modification.

All cash transactions of Rs.10.00 lakh and above, all cash transactions where forged/counterfeit currency notes have

been used as genuine and all suspicious Transactions-

All the transactions referred above both domestic and International, shall be maintained and preserved for a period of

atleast 10 years from the date of Transaction between the Bank and the client.

BC Letter no.106/200 dated-15.03.2013.- Submission of STR (Non financial indicators Report) by branches

separately- Non financial matters where AMLOCK (Anti money loundering software ) are not being capable to

captured or scrutinize the data.

BC Letter no.107/86 dated-07.08.2013- Simplifying norms for periodical updation of KYC in existing accounts

i) Full “KYC”exercise – Not less than once in two years in HIGH risk accounts.

ii) Full “KYC”exercise – Not less than once in eight years in MEDIUM risk accounts.

iii) Full “KYC”exercise – Not less than once in ten years in LOW risk accounts.

** positive confirmation (Obtaining KYC related updates through Emails/letters/telephonic

conversations/interview/visits) will be required to be completed at every TWO years for Medium risk

& every three years for Low risk category of individuals & entities. **

BC No. 103/164 dated 21.01.2010

Obligation of Bank under unlawful Activities (Prevention) Act, 1967 for combating financing of terrorism.

RBI has advised that Government since amended the UAPA vide which section 51 A has been inserted in

the act for Prevention of and for coping with terrorist activities and issued an order dated 27.08.2009.

Regarding freezing/ unfreezing of financial assets of such individuals/ entities- the detail procedures have

been elaborated in the Branch circular no. 103/164 dt .21.01.2010.Regarding freezing of the Financial Asset

of the erring person/company, the copy of the order dated 27.08.2009 issued by Govt. of India has also been

enclosed with the said circular.

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The importance of ensuring KYC compliance can be seen from the press reports detailed below:

Government imposed a penalty of more than Rs 275 crore on major telecom operators for not fully meeting

the KYC norms.The CMDs and CEOs of these telecom firms will face criminal action and will be treated as

co-accused in cases where the unverified SIMs are used in terror acts.

All are aware that our bank has been penalised heavily by Reserve Bank of India for violations in the areas

of KYC/AMLlCFT. The main areas of violations for which such a heavy penalty has been imposed are: ~ Instances of structuring deposits between Rs.40000 and Rs.49999 and

Rs. 990000 and Rs.999000 to escape PAN and reporting in CTR respectively;

~ PAN details mentioned as "Null" or as some dummy values like 0, 1, 123,999 etc.

~ Routing of huge transactions, especially by way of cash, through Sundry accounts;

~ KYC updation as per Risk categorisation not being done by the branches;

~ Non-utilisation of Customer Profile Sheet by the branches;

~ Large number of accounts opened and closed on the same day;

~ Accounts with high turnover but PAN field is blank;

~ Cash sale of gold coins for amount exceeding Rs.50000;

~ Reliance on the KYC of only the principal card holder for issuing add on card to

Spouse/parents/brother/son and daughter.

~ Issue of multiple DDs against cash amounting to just below RS.50000 but

aggregating to more than RS.50000, to the same purchaser on the same day;

~ Occupation codes filled with dummy entries in the Finacle system;

~ Trust / NRI accounts were not categorised as High risk;

In this regard, latest issued various guidelines on the above vide comprehensive

I0M No. HO/COMPLl2013-14/ 112 dated 10.06.2013.

(Source- Ref: HO/COMPLl2013-14/172 dated-29-07-2013). Other important circular:- 107/142- RECORD OF WALK,IN CUSTOMERS DATED-23.10.2013 107/166-KYC FOREIGN STUDENTS DATED:-28.11.2013

119

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS /03 HOUSING LOAN /MORTGAGE LOAN FRAUDS IN BANKS (CASE STUDY)

Some Tips/Observations as to how the Housing Frauds can possibly be minimized if not

completely avoided:-

Some simple questions which must be discussed/enquired with, the prospective Borrower while

considering/processing any advance secured by Mortgage of property whether as principal or

collateral? Ask the Borrower/guarantor:

1. Whether they have seen the complete Original Documents, and whether they have checked

the ownership of the Property to be purchased on their own?

2. Whether their verification included verification at DDA/State Housing Board, Municipal

Corporation and Tehsildar Office, if yes, with what results?

3. If the property has been transferred by means of POA whether it has been verified that the

POA holder has the Authority to sell the Property and that they have read the clauses of

POA carefully?

4. Whether they have checked the land use on their own i.e. whether it is

Agri/Residential/Commercial and also whether it is Freehold or Leasehold etc. etc.?

5. Have they made proper enquiries/verification regarding the property and the neighbouring

land by examining the site map properly? Also whether they are aware of any prior

charge/encumbrance/encroachment on the property? Are they aware of any Acquisition

Notice about the property?

6. Have they obtained a Certified Copy of “Every” document from the concerned Sub-

Registrar’s Office?

7. Have you seen/obtained the Form A (Map Approval), Form C (Water), Form D

(Electricity), Form E (Completion Certificate) issued by MCD in Delhi or similar

documents as applicable at other centers?

(This is only illustrative. Please note that as a Processing/Sanctioning Officer, your interaction

with the Owner of the Property is of Paramount importance. Incidentally answers to these and

other questions you should obtain on your own also as part of the Inspection/Site visit.)

Some Check Points:

Verification of Identification Data:

A telephone call/visit to the employer’s office of the prospective loanee to verify the salary

slip/nature and status of employment.

A visit to the website of CIBIL to verify Borrower’s Loan Payment Track Record.

A visit to GOI site incometaxindia.gov.in or tin.nsal.com for checking genuineness of the

PAN Cards.

Enquiry with the existing Bankers, if any.

Lawyer’s Report:

Must be obtained from Bank’s approved empanelled Advocate.

Must be obtained on the Basis of ORIGINAL documents for a Period of 30 years, except in

case of Agricultural Advances upto Rs. 1 crore, Search Report for 13 years is acceptable.

Documents of title to property must be handed over in original to the Lawyer by the

Branch only.

Must confirm/certify the genuineness of the Title Deeds documents

Must specify whether any permission is required to be obtained under any Act and or from

any Authority whatsoever.

The Advocate has to verify/make search for 30 years in the office of Sub-Registrar of

Assurances. During course of the search the lawyer is expected to verify and tally the

original Title Deeds with the Index Register, Title Deed copies in the Book Binder,

Attendance Register at the Office of the Sub-Registrar and Registration Receipt and

confirm signatures of the Seller, Sub Registrar, Photographs of Seller/Purchaser if

available etc. etc.

120

If the Transaction is done through a Power of Attorney holder following precautions will

help:

o Please check for appropriateness of Stamp Fee paid.

o POA lapses with death, insanity, insolvency of Donor.

o If POA is a registered document, please check for revocations by a registered

document in the relevant index at sub-Registrar.

o Agreement of Sale cum GPA shall be followed up by Sale Deeds.

o If POA is not registered, please insist upon confirmation about validity by Donor.

o Constitution of Donor & Donee shall be verified and necessary precautions

applicable to a Company or Partnership may be taken, if the situation so warrants.

o Please check up for liability clauses of Donor/Donee.

o If Developer is a GPA Holder, Owner shall execute Sale Deeds.

o In which case, please insist upon registered Development/construction Agreement

and allocation of Shares to Owner/Developer.

{Note: In case of any doubt/apprehension the Branch Official/s must independently visit the

Sub-Registrar’s Office and make their own assessment on the basis of comparison of the

original Title Deeds with the copies available in the Book Binder, Index Register, signatures of

Seller/Purchaser (their photographs if available) and signature of Sub Registrar etc. etc.}

Valuation Report:

Must be obtained from Bank’s approved Empanelled Valuer.

The Property details/description of Property must tally with the details/description in

Lawyer’s Report.

Must contain information on situation of the Property, tenure (leasehold/freehold) built up

area, class of construction, annual rental value, municipal taxes and other outgoings, self

occupied or tenant etc. etc.

Must show the valuation on the basis of (1) Cost Price (2) Market Price (3) Distress

Sale Value and (4) Registration Value for similar properties in the area available with

Sub-Registrar Office. Valuer should certify that he has examined the Approved Site Plan, the construction is in

line with the same and he has compared the Approved Site Plan with actual construction.

Valuer must bring out aberrations/violations in the construction as also breach of Local

Laws etc. etc.

In terms of HOBC NO. 102/177 dT. 30.12.2008:- IT IS NECESSARY THAT:-

“Whenever loans are granted under salary tie-up, undertaking should be obtained from

the employer that the salary account would not be shifted from our Bank. Moreover,

whenever loan is sanctioned to an employee of any organization with or without salary

tie-up, details of the loan should be sent to the employer under intimation to the employee

(Our Borrower).” FRAUDS IN RETAILS LOANS

Some more Check Points to avert occurrence of Frauds(preventive Measures)

Verification of Identification Data:

Bank & account number of builder/Vendor: - NOC obtained from the builder shall

necessarily contain the details of the bank account of the builder & during inspection of

property; the inspecting officer shall verify the genuineness of such NOC.

Verification of PAN/IT returns-On Line:-I.T. returns to be verified online.

Aiternatively, verification of IT returns could be entrusted to CA firm at nominal cost.

A visit to GOI site incometaxindia.gov.in or tin.nsal.com for checking genuineness of the

PAN Cards.

Receipt of ‘ITR’could be verified through https://incometaxindiaefilling.gov.in.

Not to handover demand draft/payorder to borrowers.

(Refer branch circular 107/71 dated 16.07.2013)

https://incometaxindiaefilling.gov.in/

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SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (Documentation) 04 30.11.13

DOCUMENTATION

I. The Salient features of CHA Series are given below:

a) Requires acknowledged copy of sanction letter duly signed by Borrower to be attached to

CHA 1 or CHA 2.

b) Suitable for all kinds of Priority Sector like R.T., S.B., P&SE and SRTO up to a limit of

Rs. 25 lacs including SME(services),not applicable for SME Mfg

c) Enables the Bank to take charge/dispose off securities charged to the Bank.

d) Suitable for loans to Farmers including Kissan Suvidha Card Scheme. It also facilitates

payment of Premia for Personal Accident Insurance Scheme (PAIS) under KCC.

e) Provision for charging interest on Monthly Basis.

f) Provision for appropriation of Back ended subsidy in Govt./Subsidy sponsored/Oriented

Schemes.

g) Clause covering events of Default including publication of Defaulters names in

Newspapers.

h) Clause facilitating Bank to notify charge in ROI thru Newspapers and or Display Notices

on Branch Notice Boards.

i) A reschedulement clause is inserted in the Hypo. Agreement.

j) Can be used in Star Suvidha Scheme for various purposes.

k) Provision for incorporating different Rates of Interest for different facilities. This new

provision now appears in CHA I and II with Printers Code JP 2,50,000 7-2003 and SMP

75000. In case of other CHAs please fill up Para 3 with necessary changes/requirements if

rates of interest are different for different facilities.

II. CHA Series will not be applicable to:

1. Indirect Finance to Agriculture 2. Advances to High Tech Agriculture

3. Co-operative Societies 4. Sugar Factories

5. Trawlers and Boats. 6. SME Mfg

III In limits up to Rs. 25 lacs in Agriculture, OPS and Star Personal A/cs only:

Following Documents to be obtained:

1. D.P.Note (Only in Demand Loan/Cash Credit/OD and not in Term Loan)

2. CHA 1 (Composite Hypothecation Agreement) excluding Vehicle (Annexure I)

with Annexure OR

CHA 2 (Composite Hypothecation Agreement) including for Vehicle (Annexure II) with

Annexure

CHA 2 Attracts DUAL STAMP DUTY i.e. FOR AGREEMENT AND POWER OF

ATTORNEY

3. Guarantee Deed ( OD-194)

4. CHA 4 Mortgage Deed with Annexure (Annexure IV)

5. CHA 5 Supplemental Hypothecation Agreement [to secure (Annexure V)

additional/enhanced Credit limits].

6. CHA 6 Deed of Further Charge on Mortgage Land (Annexure VI). In most cases (1) DP Note (2) CHA 1 or CHA 2 (3) Letter of Guarantee AS PER revised FormatBC 99/131

of 21.11.05 (4) Mortgage Deed CHA 4. Thus normally THREE stamped Documents are to be obtained if

legal mortgage is not stipulated/obtained.

CHA Series do not cover limits against Book Debts. In such cases normal documents(CC531).(only)

be obtained.

IFD – X is consolidated Document for Hypo. Of Stocks, Book Debts and Plant and Machinery. This

document can be used where ever Hypothecation Of Stocks, Book debts and Plant and Machineries

are stipulated for facilities irrespective of whether Facility is a mterm loan, Cash credit or Demand

loan. It should be stamped with consolidated stamp duty as per local law applicable to an Agreement

, hypothecation and Power of Attorney (B.C.No. 98/07 dated 07.04.2004.).

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Note: Where a term of sanction stipulates creation of EQM by Deposit of Title Deeds, Oral

Assent has to be recorded with due compliance of extant guidelines and CHA 4 or 6 will not be

used.

IV. Branch Circular 97/114 dated 13.11.2003 introducing L516 (replacing L514) and 2 undertakings

introduced vide Cir. 96/75 of 05.08.2002 & 96/133 of 27.12.2002 (annexure to the Circular) replaces

following Documents:-

1. L447 Letter of Continuing Security

2. L478 Letter of Lien & Set Off

3. Letter of Set Off and appropriation

4. Letter of Non-Borrowing

5. Declaration regarding Diversion of Funds

6. Undertaking vide B.C. 96/75 of 05.08.2002 (Wilful Default)

7. Undertakings vide B.C. 96/133 of 27.12.2002 for Disclosure of Information to CIBIL.

8. Borrower/Guarantor recognizes the right of the Bank for securitising/selling/assigning the

facilities/securities.

.

L 515 replaces i) Declaration regarding relationship with Directors of the Bank.

ii) Declaration regarding relationship with Senior Officers of the Bank.

Thus in Limits up to Rs.25 lacs in AFD & OPS following documents would suffice

1. DP Note or Term Loan Document

2. L-516 to be stamped as an agreement.

3. L-515

4. Charge document i.e. document creating Charge. (CHA1 or CHA2) and Guarantee Letter

as per 5 below, if needed.

5. Guarantee Letter( OD-194)

6. Mortgage Deed (CHA-4 and CHA-6 if Legal Mortgage is stipulated)

7. Installment Letter

8. Bearer Letter

CHA Series of document (CHA-I or CHA-II) has replaced Ag-1, Ag-3, Ag-23, Ag-30,

Ag-37, Ag-51, Ag-57, Ag-62, Ag-GSSI-1,CBD-9, CBD-13, CBD-22, CBD-25, CL-1.

Some important circulars on documentation

Br. Cir. 94/186 of 25.01.2001 Br. Cir. No. 96/103 of 17.10.2002

Br. Cir. letter No. 2002-03/87 of 22.11.2002 Br. Cir. letter No. 2003-04/75 of 12.09.2003

Br. Cir. 97/114 of 13.11.2003 Br. Cir. No. 97/186 of 08.03.2004

Br. Cir. No. 99/131 of 21.11.2005

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DOCUMENTATION IN ADVANCE ACCOUNTS

UNDER SOME SPECIFIC SCHEMES Star Personal Loan Scheme:

1. Consumer/Vehicle Loan Agreement or other relevant Term Loan Agreement for charge on assets

financed by the bank, as applicable {CHA-1 (excluding vehicle) or CHA-2 (including vehicle)}.

2. Demand promissory note (L-434).L512 for vehicle for personal use.

3. L-516 as per Br. Cir. 97/114 dated 13.11.2003 to be stamped for Stamp Duty of a Single

Agreement if Revised Guarantee Form is obtained.

4. Bearer letter L-435

5. Installment letter L-440

6. Deed of Guarantee ( OD-194).

7. In case of salaried persons, a letter addressed to the employer, authorizing them to deduct from

his/her salary the instalment and interest payable to the bank and remit the same to the bank.

8. In case of self-employed persons, and in cases where letter of deduction is not admitted by the

employer, 24 post dated cheques to be obtained and encashed. Cheques are to be replenished on

yearly basis and to keep sufficient balance in his/her account to honour the cheques whenever the

same is presented for payment

9. Charge on collateral security proposed (pledge/lien etc.)

10. Letter from customer authorizing the bank to debit the account with admissible service

charges/interest etc.

11. Equitable/Legal mortgage of the property, wherever applicable.

12. L-515 as per Br. Cir. No. 94/186 dated 25.01.2001

Star Housing Loan: 1. Term Loan Agreement L513– (REVISED 2006) (With this New Format Obtention of L-516 is also

discontinued in the Housing Loans)

2. Letter of guarantee duly signed by the guarantor/s in Revised Format as per Br. Cir. 99/131 dtd.

21.11.2005.

3. Search and Title Investigation Report for 30 years from Bank’s Approved Advocate

4. Extract of Record of Rights and Plan Specification of the property as approved by the local

authority (copy of approved plan)

5. Insurance policy for the cost of house/flat above plinth level duly endorsed in favour of the bank

6. A letter of authority by the borrower authorizing the bank to pay the insurance premium to the debit

of borrower’s loan/savings bank account both for Property/Life (if stipulated and obtained)

7. In case of salaried persons, a letter addressed to the employer, authorizing them to deduct from

his/her salary the instalment and interest payable to the bank and remit the same to the bank.

8. In case of self-employed persons, and in cases where letter of deduction is not admitted by the

employer, 24 post dated cheques to be obtained and encashed. Cheques are to be replenished on

yearly basis and to keep sufficient balance in his/her account to honour the cheques whenever the

same is presented for payment

9. A letter from the builder/promoter/vendor that all advances and dues of similar nature on the

property have been paid, necessary permission from the concerned authorities for developing the

property have been obtained.

10. Documents necessary to perfect collateral security, if any, as advised by the Lawyer in the Search

Report.

11. Equitable Mortgage of the property by Deposit of Original Title Deeds and recording of Oral

Assent.

12. Affadavit-cum-Undertaking (Format as per BC 100/159 of 08.01.2007). L-517 for having done no

unautorised Construction/Misuse of property, to be Stamped as an Affadavit.

13. Post Dated Cheques

14. L-515 as per Br. Cir. No. 94/186 dated 25.01.2001 (Note if the house/flat is to be purchased from a Co-operative Society or EQM is to be created on

the basis of Certified Copies, Please refer to B.C. 100/88 of 31.08.2006 for detailed

procedure/documents)

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Star Education Loan: 1. Stamped application cum agreement form (L-487). The original of the document obtained from

the father/guardian/student should be stamped as an agreement and will constitute one of the

security documents.

2. Demand Promissory Note (L-434)

3. L-516 as per Br. Cir. 97/114 dated 13.11.2003 to be stamped for Cost of Single Agreement if

Revised Guarantee Form is obtained.

4. Bearer letter L- 435.

5. Undertaking regarding assignment of future income.

6. Singular/Joint and Several Guarantee – in Revised Format as per Br. Cir. 99/131 dtd.

21.11.2005

7. Collateral Security, wherever applicable

8. In the case of mortgage of property, it should be supported with advocate’s satisfactory search

report for 30 years on title and valuation report from approved valuer.

9. Collateral Security may be in the form of Govt. Securities, shares, EQM etc. Following norms

to be observed for computation of securities:

i) Surrender Value - LIC Policy

ii) Market value of house - Landed property

iii) Card Limit for approved shares, units, etc.

iv) Face Value - NSC, TDR etc.

10. Under the scheme, if the student is major, he will be a principal borrower in the loan and

father/guardian may be taken as co-borrower. In such cases, branch should obtain documents,

signed by both the student and his father/guardian

11. Where for technical reasons the student’s father/guardian is not agreeable to sign in the

capacity of the co-borrower, but instead willing to guarantee the advance, branches should not

insist upon father/guardian to sign DP Note, etc. In such cases, Guarantee as per Revised

Format vide Branch Circular 99/131 of 21.11.2005 should be obtained

12. Where the student is a minor, the father/guardian should be the principal borrower and DP Note

etc. should be signed by the father/guardian wholly as the case may be. The student should join

as co-borrower only upon his attaining majority by executing fresh set of documents. The old

set of documents should also be preserved.


SRTO 1. CHA-02 for loan upto Rs.25.00 lakh and L-512 irrespective of loan amount.

2. SSID-14 – Undertaking that the vehicle will be driven by the owner

3. Comprehensive Insurance Policy duly endorsed in Bank’s favour (a copy to be kept in record)

4. Letter addressed to Insurance Company (Annexure-III)

5. Transfer Form in Blank in duplicate

6. Registration of charge with RTA ( a copy to be kept in record)

7. Valuation Certificate for second hand vehicle

8. Additional particulars of the vehicle (Annexure-IV)

9. Letter from Body Builder (Annexure V)

10. Guarantee Deed in Revised Format as per Br. Cir. 99/131 dtd. 21.11.2005

11. L-515 as per Br. Cir. 94/186 of 25.01.2001.

12. Undertaking to inform change in constitution/address

13. Debit Authority letter

14. Where guarantor’s vehicle is taken as collateral security, obtain hypothecation agreement as per

Annexure XXIV

15. L-516 as per Br. Cir. 97/114 dated 13.11.2003 to be stamped for Stamp Duty of Single

Agreement if New Guarantee Format has been used. (where CBD-13 is obtained)

(Note for Limits above Rs.25 lacs, Normal documents should be obtained)

125

Star Mortgage

1. D.P. Note (Demand Loan and Overdraft) L-434

OR

IFD –1 (Term Loan)

2. L-516 as per Br. Cir. 97/114 dated 13.11.2003 to be stamped for Stamped Duty of

Single Agreement if New Guarantee Format has been used.

3. L-515 as per Br. Cir. 94/186 of 25.01.2001.


5. Instalment Letter (Demand Loan) L440

6. Guarantee Letter in Revised Format as per Br. Cir. 99/131 dtd. 21.11.2005.

7. Mortgage of Property/Extension of Mortgage- as the case may be

8. L 517 Stamped as an Affadavit (Br. Cir. 100/159 of 08.01.2007)

Self Help Groups

1. SHG-1 Inter-se Agreement to be executed by members of the Self Help Groups –

where our bank is also made a party

2. SHG-2 Application to be submitted by SHG to the branch while applying for loan

assistance

3. SHG-3 Articles of Agreement for use by the bank while financing Self Help Groups

4. SHG-4 Sponsorship letter from Non-Government Organisation (NGO)/Self Help

Promotion Institution (SHPI)

5. SHG-5 Application to be submitted by Voluntary Agency (VA) /SHPI to branch while

applying for loan assistance for on lending to SHG

6. SHG-6 Articles of Agreement for use while financing SHG through Voluntary

Agency/SHPI/Society/Charitable Trust registered under the respective Acts

Check Points:

a) In the Inter-se Agreement to be executed by the members of the SHGs, our bank is also a

party. Besides, further covenants as to trust obligations of the authorized representatives

are also added. The Inter-se agreement contains covenants both, for Demand Loan and

Term Loan up to the respective sanctioned limit

b) The Inter-se agreement will have to be stamped as an agreement cum power of attorney

with applicable stamp duty

c) The articles of agreement to be entered into with authorized representatives has been duly

modified to suit bank’s needs

d) The articles of agreement will have to be stamped as a simple agreement with applicable

stamp duty

e) It should be ensured that the Inter-se agreement and articles of agreement are duly stamped

and executed by all the members of SHG and by the authorized representatives,

respectively

f) Appropriate acknowledgement of date and security should be obtained periodically with

due regularity

g) With the adoption of model set of security documents as above, joint Demand Promissory

Note and Continuing Security Letter need not be obtained

126

Financing against Gold Ornaments

1. D.P.Note

2. Simplified Application-cum-Declaration Form (Refer to Annexure I) of B.C. 100/67 OF

21.07.2006 for limits upto Rs. 1 lac

3. Agreement of Pledge

For Limits over Rs. 1 lac

1. D.P. Note

2. AG – 35 (modified) as per Annexure II of B.C. 100/67 of 21.07.2006 (to be stamped with

Stamp duty applicable to Pledge Document)

Branch Circulars:

1. Br. Cir. 91/120 of 07.10.1997 2. Br. Cir. 91/167 of 24.12.1997

3. Br. Cir. 94/186 of 25.01.2001 4. Br. Cir. 99/131 of 21.11.2005

5. Br. Cir. 100/67 of 21.07.2006 6. Br. Cir. 100/88 of 31.08.2006

7. Br. Cir. 100/159 of 08.01.2007

Note: Please be careful to incorporate changes as advised by Head office/Zonal Office from time

to time. In case of any difficulty/lack of Clarity, please note to contact your Zone’s Legal Cell or

Legal Department at Head Office.

LIST OF DOCUMENTS TO BE OBTAINED IN ADVANCE ACCOUNTS

(C& IC) OTHER THAN PRIORITY SECTOR

Term Loan Secured by immovable assets:

1. Term Loan agreement- CHA-1 for loan upto Rs.25.00 lakh and IFD-10 for Manufacturing

sector

2. Revised Guarantee Deed as per Format vide Br. Cir. No. 99/131 dt. 21.11.05

3. L-516 as per Br. Cir. 97/114 dated 13.11.2003 is to be taken stamped with Stamp Duty of One

Agreement and to be signed by Borrower only if Revised Guarantee Format is obtained.

4. Bearer Letter with suitable modifications

5. L-515 as per Br. Cir. No. 94/186 DATED 25.01.2001

6. Equitable/Legal Mortgage of immovable assets created out of Bank Finance

Demand Loan secured by immovable assets:




4. Instalment Letter- L440



6. Equitable/Legal Mortgage of immovable assets created out of Bank Finance


Term Loan secured by movable machinery:

1. Agreement of term loan and hypothecation of movable of assets/plant and machinery (IFD-10)


3. Letter of non-encumbrance L-466 (except in case of LTD. Co.)



5. Bearer letter with suitable modifications.


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OR

1. Term Loan agreement – CBD14

2. Agreement of Hypothecation of movable machinery (IFD-2) with additional clause 9A reading

as:

“The borrower hereby declares and assures the bank that the plant and machinery

constituting/being part of the hypothecated goods are movable and constitute movable

machinery”.



5. L-516 as per Br. Cir. 97/114 dated 13.11. 2003 is to be taken stamped with Stamp Duty of One


6. Bearer letter with suitable modifications.


Demand Loan/Cash Credit secured by hypothecation of stocks:

1. Demand Promissory Note(L-434)

2. Deed of hypothecation to secure demand loan/Cash Credit CBD-9

Or

Deed of Hypothecation L448/supplemental deed of hypothecation: L481, L482, L483


4. Bearer letter L-435 (not in case of C/C facility)

5. Instalment letter – L440 (not in case of C/C facility)

6. L-516 as per Br. Cir. 97/114 dated 13.11. 2003 is to be taken stamped with Stamp Duty of One



Cash Credit facility secured by Book Debts




4. Agreement of charge and hypothecation of Book Debts (CC-531) (to be stamped for an Agreement

and also for Power of Attorney)




Cash Credit facility secured by pledge of stocks



3. Memorandum of agreement of pledge (L-453)

4. Letter of access for pledge godown




Bill Purchase/Discount facility

1. Bill Form No. 1005


3. Stamped letter of indemnity regarding lorry receipt as per “Appendix IL of the Manual”

4. Stamped agreement indicating waiver of transit insurance in case of R/R as per appendix

XLVIII of the Manual.

5. Letter of undertaking to the effect that proceeds of the Bills received directly by the borrower

will be deposited in their advance account.

128




For individual transaction:

a) Bill of exchange/cheques

b) Railway receipt/lorry receipt of approved Transport Company

c) Covering Letter Bill-1039

d)

Demand Loan secured by hypothecation of tangible movable machinery




4. Instalment Letter – L440

5. Agreement of hypothecation of tangible movable machinery and plant L-448A

6. Stamped declaration regarding movability and removability of machinery




Clean Advance:



3. Bearer letter L-435 – (not to be obtained in C/C facility)

4. Instalment Letter L440 – (not to be obtained in C/C facility)




Export Packing Credit:




4. Deed of hypothecation to secure demand loan/Cash Credit CBD-9

Or

Deed of Hypothecation L448/supplemental deed of hypothecation 5. L-516 as per Br. Cir. 97/114 dated 13.11.2003 is to be taken stamped with Stamp Duty of One



For Individual Transaction:

a) Lodgment of confirmed order/LC

b) Export Trust Receipt L-461 (to be redeemed within the stipulated period from the

proceeds of export bill)

Star Share Trade Scheme in Select Zone/Branches:

1. Stamped Agreement –cum-Indemnity cum Power of Attorney (Stationery Code – DP-OTS-01)

2. Registration KIT (comprising of Account Opening Form for Trading A/c, Member-Client Agreement for

Trading on BSE/NSE and A Combined Risk Disclosure Document for Capital A/c.) For availing ON LINE TRADING OF SHARES, existing Borrowers to additionally furnish the following:

1. Stamped Agreement (Supplemental to the Original DP-OTS-01) format as per Annexure Ii of Br. Cir.

100/115 of 30.10.2006.

Document to be stamped as an Agreement.

129

Star Channel Credit Scheme (In respect of Dealer Finance): From the Dealers:

1. Application Form – Annexure II of BC 100/89 of 01.09.2006.

2. Copy of Articles of Association, Partnership Deed, Firm’s Registration (as applicable).

3. CBD-23 (Revised, KYC Forms

4. Copy of Sales-Tax Registration Certificate

5. Copies of Sales Tax Returns for last 3 years

6. Copy of latest Income Tax Return/Assesssint.

7. Status Report from Bankers OR Copy of Statement of Bank A/c for last 3 years.

Papers from the Sponsoring Corporate:

1. Application Form – Annexure III of BC 100/89 of 01.09.2006.

2. Opinion Report on the Dealer.

3. Letter of Comfort.

4. Copy of Agreement with the dealer if any.

Explore the possibility of obtaining Corporate Guarantee from the Sponsoring Corporate.

Stamped Documents:

1. DP Note

2. Continuing Security Letter

3. Personal Guarantee of the Proponents (In case of Ltd. Companies) supported by a proper Board

Resolution as per Guarantee Format vide Br. Cir. 99/131 of 21.11.2005.

4. Sanction letter as per Annexure IV of Br. Cir. 100/89 of 01.09.2006

(For Format/Annexure under Star Channel Credit Scheme please refer to Br. Cir. 100/89 of 01.09.2006

and Br. Cir. 98/49 of 23.06.2004)

NON-BORROWING FACILITIES:

Letter Of Credit: 1. L-516 as per Br. Cir. 97/114 dated 13.11.2003.

2. Letter of guarantee FE-1353 A/FE 1353 B

3. Deed of hypothecation L-448/L-448A and supplemental deed of hypothecation if needed

4. Bill Form 1005

For individual transaction:

a) Stamped LC application Form FE-1338

Inland Guarantee: In case of regular guarantee limit:

1. L-516 as per Br. Cir. 97/114 dated 13.11.2003.

2. General counter guarantee and indemnity (LG-12)

3. General counter guarantee and indemnity from third party LG-15

4. Letter of appropriation LG-13

5. Supplemental deed of hypothecation for earmarked guarantee limits in Cash Credit accounts –

L-500


In case of casual guarantee:

1. Counter guarantee LG-11

2. Counter guarantee from third party LG-14

3. Letter of appropriation LG-13


5. L-516 as per Br. Cir. 97/114 dated 13.11.2003.

Common documents:

1. Unstamped undertaking regarding change in business particulars/address etc.

2. Debit authority letter authorizing the bank to debit the account with insurance premium,

inspection charges, processing charges, documentation charges etc.

130

ADVANCE AGAINST PAPER SECURITIES

Advance against National Savings Certificate (NSC)

1. DP Note

2. Loan cum Pledge Document (Stamped as Pledge Document) as per Br. Cir. 100/106 of

06.10.2006

3. Pledge of NSC – Duly Discharged.

4. Charge with Post Office on the form prescribed by them.

Advance against Kisan Vikas Patra (K.V.P.)

1. DP Note.


06.10.2006

3. Pledge of KVP – Duly Discharged.

4. Charge with Post Office on the form prescribed by them

Advance against Indira Vikas Patra (I.V.P.)

1. DP Note.


06.10.2006

3. Pledge of IVP – UnDischarged.

4. Indemnity regarding ownership of I.V.P.

Check point: For staff, no charge is required to be registered with Post Office up to an advance of Rs.

50,000/-. However, format prescribed by Post Office should be obtained and kept in bank’s record.

Advance against Life Insurance Policy (LIC)

1. Demand promissory Note L-434

2. Loan cum Pledge Document (Stamped as Pledge Document) as per Br. Cir. 100/106 of 06.10.2006

3. Assignment of Policy in favour of the Bank

4. Assignment to be noted with LIC

Advance against units of UTI

1. Demand Promissory Note L-434. 2. Loan cum Pledge Document (Stamped as Pledge Document) as per Br. Cir. 100/106 of 06.10.2006

3. Pledge of units - MIS duly discharged with post-dated income warrants.

4. Charge with UTI before disbursement of loan

5. Letter to UTI by holder of Certificates to send the income warrants to bank

Advance against Bank’s Term Deposits

As per revised procedure (with Simplified Application Form) for advances against Term Deposits effective

1st October, 2005 following documents should be obtained.

1. Application-cum-Proposal form accompanied by the duly discharged TDR or RD Pass Book

accompanied by discharged RD withdrawal form.

2. Letter of Appropriation and Set Off. This will be unstamped for all loan accounts and stamped for

overdraft accounts. (There are separate versions for Depositor Borrowers and Third Party

Borrowers).

The above documents be used for enhanced advance amount(s) at the time of grant of

additional limits.

3. The need for discharge of TDR/RD withdrawal across revenue stamp of Rs.1 is also dispensed

with, instead depositors discharge without revenue stamp be obtained.

Third party advances should not be granted against Minor’s Receipts under any

circumstances. (Branch circular 99/78 of 22.08.2005)

131

ADDITIONAL DOCUMENTS TO BE OBTAINED AS PER CONSTITUTION OF BORROWER:

Limited Company:

1. Certificate of incorporation

2. Certificate of commencement of business (in case of Public Ltd. Company only)

3. Memorandum of Association

4. Article of Association

5. Board Resolution (True copy of the resolution duly certified by the Chairman of the meeting at

which resolution was passed)

Stage I: At the time of opening of account

Stage II: At the time of applying for advance facility

Stage III: At the time of documentation/disbursement: affixing of common seal where required

– for model resolution, please refer to Manual of Instructions Vol. III Part II Page No. 184 to

186.

6. Guarantee by the directors in their personal capacities (wherever being obtained)

7. Stamped undertaking signed by the directors of the company/guarantors not to receive any

charges/commission/fee etc. (L490)

8. Undertaking from the company not to pay any charge/commission/guarantee fee to the

directors

9. Stamped undertaking from the company to the effect that in the event of company turning sick,

bank will be authorized to nominate director.

In case of Limited Company Borrowers following additional precautions need be taken:- Branch must have on its records the address of the Registered Office of the Company, where all

documents and notices need to be served.

Branches should ensure that Corporate Borrowers deal exclusively with the Bank or Banks

where credit limits are granted to them under consortium. An undertaking to the effect that

Company will not open any account or approach any other Bank for facilities with prior

consent in writing from the Bank should be obtained.

Branches must pursue the Memorandum of Association of Ltd. Co. to ascertain that the

purpose and the amount of facility are authorized under it. It must be ascertained whether

there is any restriction on the Borrowing by the Company. If yes, that limit should never

be breached, since this excess borrowing will be ultra-vires and such borrowing cannot be

regularized by the General Meeting. Thus Bank cannot avail itself of any security held to

cover such borrowing. The Board of Directors of a Company, is required, under Section 292 of the Companies Act

1956 to exercise the powers specified therein on behalf of the company only by means of

Resolutions passed at duly convened meetings of the Board and such powers cannot be

exercised by means of a Circular Resolution passed without calling a meeting of the Board.

The Board of Directors cannot borrow in excess of Paid-up Capital and Free Reserves (apart

from temporary limits) of the Company without consent of the Company in General Meeting.

A

Certificate that total Borrowings of the Co. together with the advance limit fixed by the Bank

are not in excess of the limits prescribed under Section 293(1) should be incorporated in the

Board Resolution.

(For detailed instructions on Temporary Limits please refer to Page 71 Para 4.11.16 of Manual

of Instructions Volume 3 Part I Revised 31.07.2004)

Other Legal formalities in case of a Ltd. Co.

1. Search report in the office of Registrar of Companies to the effect that there is no outstanding

charge on the security proposed.

2. Registration of charge u/s 125 of the Indian Companies Act 1956. Form required to be filed in

triplicate is 8 and 13.

3. Modification of charge u/s 135 of the Indian Companies Act 1956. Form required to be filed in

triplicate is 8 & 13.

4. Satisfaction of charge u/s 138 of the Indian Companies Act 1956. Form required to be filed is

17 & 13.

5. Charge with ROC must be registered immediately but maximum within 30 days of the date of

Creation of Charge i.e. date of Execution of Documents

Partnership Firm: 1. Partnership Letter L-438

2. Copy of registration with Registrar of firms.

132

Hindu Undivided Family:

1. HUF letter OD-115A [HUF letter for trading purposes (OD-115) at the time of opening

account]

2. Undertaking from major co-parceners of the family:

a) regarding business being their family business;

b) regarding liabilities on behalf of minor and new co-parceners

c) regarding their continuance to the liability to the bank in the capacity of co-parceners

and separately, both.

Trust:

1. Copy of trust deed, verified from the original trust deed only

2. Registration of trust with Charity Commissioner. Certificate of registration under the Local

Public Trust Act.

3. Copy of resolution passed in the board of trustees duly signed by all the trustees.

Checkpoints in Trust Accounts: Relevant extract from the instrument pertaining to the number of trustees, operation of bank account,

power of delegation etc. would be entered in the register OD-127A.

All the trustees should act together.

Trustees cannot delegate their authority.

Verify whether public or private trust.

What is the objective of the trust and who are beneficiaries.

Trust Deed should have a provision regarding availment of advance.

Advance to trust can be sanctioned by Zonal Manager and above.

Personal guarantee of trustees should be obtained.

Clubs, Schools, Societies etc.

1. Certified true copy of rules, regulations and byelaws.

2. Certificate of registration – certified true copy.

3. Certified true copy of the resolution, passed by the Managing Committee of the society.

4. List of members of Managing Committee with true copy of the resolution electing them as

committee members.

Checkpoints:

Club, School, Society is compulsorily registered. In the accounts of the unregistered body,

even overdraft should not be allowed.

Bye Laws must include purpose for which an advance can be made.

Ascertain borrowing powers.

As far as possible, personal guarantee of respectable members of means of the Managing

committee should be taken.

In case of need, advice from Law Department should be taken.

Mortgage ( Property in the name of Society} – Provisions of Societies Registration Act of

State to be observed and followed.

Accounts of Bodies/Authorities

1. Certified true copy of rules, regulations, if any.

2. Verify the statute under which the local body is created.

Check Points for Accounts of Clubs, Schools, Societies etc.:

a) Powers to borrow

b) Limitation of the powers

c) Whether sanction from Government or any other authority is required.

d) Whether any restriction on rate of interest and form of advance.

3. Certified true copy of resolution passed by local body in accordance with its constitution.

4. Seek legal advice from the law department before finalizing the proposal (It is to verify the

statute under which the local body is governed)

Note:

1) Please be careful to incorporate changes as advised by Head office/Zonal Office from time to

time. In case of any difficulty/lack of Clarity, please note to contact your Zone’s Legal Cell or

Legal Department at Head Office.

2) For creation of mortgage over Private Leasehold Premises please refer to BC 99/149 dated

28.12.2005

133

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS - 30.11.2013

(Deceased A/cs claims) 05 - 31.03.2012 SETTLEMENT OF CLAIM IN DECEASED ACCOUNTS

Claim by legal heirs/nominee could be in respect of deposits, safe custody of articles or contents of

lockers. In absence of nomination or clear mandate or a will left behind by deceased account

holder bank is required to pay the stock to all legal heirs. The guidelines for settlement of claims in

various types of facilities are as under

DEPOSITS ACCOUNTS

1. In case of single accounts with nomination facility the balance outstanding in the account will

be paid to nominee on verification of his identity and death certificate. In case of accounts without

nomination facility the balance outstanding will be paid to legal heirs after their verification.

2. A joint account opened as ‘Either or Survivor’ or ‘Anyone or Survivor’ or ‘Former or Survivor’

or ‘Jointly or Survivor’ will permit the surviving account holders to have access to the credit

balance in the accounts for withdrawal if one of the co account holders dies.

3. The nominee/all legal heirs will have right of premature closure of term deposit on verification

of identity and production of death certificate

4. Documents required to be submitted along with the claim form are as follows a) Death certificate

b) Proof of identification of nominee/legal heirs

5 In case of making payment to the nominee bank should not insist for production of succession

certificate, letter of administration, any bond of indemnity or surety from the nominee irrespective

of the amount.

6. Where the nomination has not been made branch should obtain letter of indemnity as per

following details

Amount of balance

upto Rs 1000/-

Unstamped indemnity letter signed by the claimants without any

Surety

Above Rs 1000/ to Rs

5000

Stamped Indemnity letter signed by the claimants with one Surety of

standing good for the claim amount involved

Above Rs 5000/ to Rs

25000

Stamped Indemnity letter signed by the claimants with one/two Surities

of good for twice the amount involved.

Above Rs 25000/ Stamped indemnity letter signed by the claimants with two sureties of

standing thrice the amount involved. IN CASE OF DISPUTE AMONG THE HEIRS SUCCESSION CERTIFICATE IS INSISTED UPON.

SAFE DEPOSIT LOCKER

a) Nomination facility is available in respect of lockers hired singly as well as jointly. In respect of

lockers in joint names nomination rules are applicable only if lockers are operated jointly. Where

lockers are hired jointly, on the death of any one of the joint hirers the contents of the lockers are

allowed to be removed jointly by the nominee and the survivor after an inventory is taken.

SAFE CUSTODY OF ARTICLES

Nomination facility is available only in case of individual account holder/sole proprietary concern

and not in respect of persons jointly depositing articles for safe custody.On the death of account

holder legal heirs/nominee should be given access to the contents. Inventory of articles left in safe

custody is to be prepared.

Ref- BC No-100/131 dated 17/11/2006, BC No-103/126 dated 27/10/2009

IN ADDITION ( Claim in Missing persons Deposit Account)

Br cir no-106/205 dt.18.03.2013- Bank’s policy on settlement of claims received by

Nominee/leagal heirs.

134

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (SUDLIFE)

STAR UNION DAI-ICHI Life Insurance Company LTD.

DHAN SURAKSHA _ 3 Sr.

No.

Product Features Dhan Suraksha 3

1. Type ULIP Endowment

2. Min. Entry age 8 years last Birthday

3. Max. Entry Age 60 years last Birthday

4. Max. age at maturity 80 years last Birthday

5. Premium Payment/Mode Minimum Policy Term Maximum Policy Term

Single 5years 40 years

Regular 5 years

LPPT5 10 Years

LPPT10 15Years

For Minor lives min term is equal to (18 years – age at entry) or as given above (which ever is

higher)

Premium Payment Mode Min Annualised

Premium

Maxi

Annualised

Premium

Top up

Annual 24,000/- No Limit Min Rs.5,000/-

Max – No Limit Half Yearly 36,000/-

Quarterly 36,000/-

Monthly 48,000/-

Single 75,000/-

7. Min. sum assured For Single Premium Policy.

Age at entry below 45 yrs: Single basic premium x1.25.

Age equal to & above 45 :single basic premium x1.10 For Regular Premium Policy

BELOW 45 : annualized BP xhigher of ( 10 or 0.5x policy term )

Equal to & above 45 : ABP X HIGHER OF ( 7 OR 0.25 X POLICY

TERM )

8. Max. sum assured Limited to 20 times of annualized &5 time in case single basic

premium

9. Min. Premium Rs.24000

10. Max. premium No limit

11. Fund name Equity,Balanced,Growth,Bond

12. Rider Benefit Available in case of death , accident & permanent disability

13. Maturity benefit Fund Value

14. Death Benefit-In force

policies

Higher of SA or FV+ Rider Benefit

15. Premium Redirection Redirection of funds is available

16. Fund Switch Switching is available at any point of time. Min. amount of

Switch is Rs.10000/- . Only first switch per policy year is free of

cost. For additional switch, Rs.100/- per switch will be charged

by cancelling appropriate number of units.

17. Partial Withdrawal Withdrawal is allowed from the 6th policy year onwards. Where

the life assured is a minor, partial withdrawal is allowed only after

he or she attains age of 18 or 6th policy year whichever is later.

Guaranteed additions will be done by the way of free allocation of unit subject to policy must be in full

force as on date of respective policy anniversary with all premiums due having being paid up to date.

135

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (SUDLIFE) 30.11.2013

STAR UNION DAI-ICHI Life Insurance Company LTD. DHAN SURAKSHA PREMIUM _ 3

Sr.

No.

Product Features Dhan Suraksha Premium 3

1. Type ULIP Endowment

2. Min. Entry age 8 years last Birthday

3. Max. Entry Age 60 years last Birthday

4. Max. age at maturity 80 years last Birthday

5. Premium Payment/Mode Minimum Policy Term Maximum Policy Term

Single 5years 40 years

Regular 5 years

LPPT5 10 Years

LPPT10 15Years

For Minor lives min term is equal to (18 years – age at entry) or as given above (which ever is

higher)

Premium Payment Mode Min Annualised

Premium

Maxi

Annualised

Premium

Top up

Annual 24,000/- No Limit Min Rs.5,000/-

Max – No Limit Half Yearly 36,000/-

Quarterly 36,000/-

Monthly 48,000/-

Single 75,000/-

7. Min. sum assured For Single Premium Policy.

Age at entry below 45 yrs: Single basic premium x1.25.

Age equal to & above 45 :single basic premium x1.10 For Regular Premium Policy

BELOW 45 : annualized BP xhigher of ( 10 or 0.5x policy term )

Equal to & above 45 : ABP X HIGHER OF ( 7 OR 0.25 X POLICY

TERM )

8. Max. sum assured Limited to 20 times of annualized&5 time in case single basic

premium

9. Min. Premium Rs.24000

10. Max. premium No limit

11. Fund name Equity,Balanced,Growth,Bond

12. Rider Benefit Available in case of death , accident & permanent disability

13. Maturity benefit Fund Value

14. Death Benefit-In force

policies

SA & also FV+ Rider Benefit

15. Premium Redirection Redirection of funds is available

16. Fund Switch Switching is available at any point of time. Min. amount of

Switch is Rs.10000/- . Only first switch per policy year is free of

cost. For additional switch, Rs.100/- per switch will be charged

by cancelling appropriate number of units.

17. Partial Withdrawal Withdrawal is allowed from the 6th policy year onwards .Where

the life assured is a minor, partial withdrawal is allowed only after

he or she attains age of 18 or 6th policy year whichever is later.

Guaranteed additions will be done by the way of free allocation of unit subject to policy must be full force

as on date of respective policy anniversary with all premiums due having being paid up to date.

136

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (SUDLIFE) 07 30.11.2013

STAR UNION DAI-ICHI Life Insurance Company LTD. SUD LIFE PRABHAT TARA 3

Features Child Parent

1 Min. Entry Age 0 19

2. Max. Entry Age 13 52

3. Max. age at maturity 25 65

4. Min. Policy Term 25yrs Minus age of child at the time of entry , Minimum 12 yrs

5. Max. Policy Term Not to exceed 25 years

6. Premium Payment

Term

18 minus Age of child at the time of entry

7. Periodicity of

Premium

Yearly, Half-yearly, quarterly, monthly( Monthly mode thru ECS only)

8. Limited Premium

Payment Term

5 / 7/ 10 years

9. Min. Basic annualised

Premium

Prem payment

option

Minimum Premium/Mode

Annual Half-yly Quarterly Monthly

Regular/limited

Premium

24,000/- 36,000/- 36,000/- 48,000/-

PPT(Premium Paying

Term)

18 minus Ageat last birthday of child at entry , Min PPT→5 Yrs , Max→8 Yrs

Premium

(age at entry of child)

upto 8 years

Rs.18000

9 to 10 years Rs.24000

11 & 12 years Rs.60000

10. Max. Premium No Limit

11. Top Ups i)Minimum Top Up-Rs.5000(in multiples of Rs.1000)

ii)Maximum Top Up- No Limit

12. Sum Assured Regular Premium Top Up Premium

Age at entry below 45 yrs Max(10,0.5*policy term) 125%

Age => 45 yrs Max(7,0.25*policy term) 110%

Minimum Sum

Assured

Basic Sum Assured = Annualised basic premium *SAMF( Sum Assured

Multiplicator Factor)

SAMF should be a multiple of 0.25. In addition to above, the condition that

minimum death benefit at any time during currency of policy will not be less than

105 % of the total premia ( including Top Ups ) paid is also applicable .

Maximum basic sum assured : Maximum SAMF = 12.5

13. Maturity Benefit Policy holder can take the amount (i.e. Fund value) in one lump sum at the time of

maturity or in installment( Settlement Options)

14. Partial Withdrawal Allowed from the 6th

policy year onwards, only if the policy in force.

15. Riders SUD Accidental death & Total & permanent disability rider and also Critical illness

rider are \available..

16. Death Benefit Basic Sum Assured + Rider Sum Assured ( if any ) + Top Up Sum Assured ( if any )

will be paid immediately after deduction of installment premia due but not paid for

the entire policy year in which death occurs & which were not recovered already is

payable to the nominee. Entire further basic premium is waived and borne by the

SUD company. Moreover monthly income benefit equal to 1 % of basic sum

assured will be paid monthly to the nominee till the end of policy term.

18. Nomination Nomination of a child is compulsory under this policy .The child is to be nominated

under the policy.In case of unfortunate death of beneficiary child, any other child of

the life assured or individual /legal heir who has an insurable interest can be

nominated.

137

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (SUDLIFE) 07 30.11.2013

STAR UNION DAI-ICHI Life Insurance Company LTD.

SUD LIFE JEEVAN SAFAR PLAN

Features Endowment assurance & whole life plan

1 Min.Entry Age 18 Years last birthday

2. Max.Entry Age 60 Years last birthday

3. Max.age at the end

of premium paying

term

70 Years last birthday

4. Min. premium

paying Term

5 Years

5. Max. Premium

paying Term

52 Years

6. Income Tax

Benefits

Available U/S 80 C & Section 10(D)of I.T. Act 1961

7. Periodicity of

Premium

Yearly, Half-yearly, quarterly, monthly (monthly mode thru ECS only)

8. Rebate for Women 2 % of tabular premium throughout the premium paying term

9. High Sum Assured Rebates Available Under the Plan Sum Assured Range

( Rs. Lacs)

Sum Assured Rebate

Less Than 5 Nil

5 to less than 10 Rs. 1.00 %

10& above Rs. 1.50 %

10 Benefit at the end of

premium paying

term

Sum Assured + accrued bonuses at the end of the stipulated premium paying

term ,and the risk cover on the life continues till death

11. Back Dating Available within the same financial year

12. Policy Loan Can be availed provided the policy has acquired surrender value

13. Sum Assured Minimum - Rs. 50,000 /-

Maximum - No Limit

14. Guaranteed

Surrender Value

Available if premium paid for at least 3 yrs. The minimum GSV is 30 % of

total amount of premium paid excluding premium paid for 1st year & the

entire extra premium paid, if any. Cash value of existing vested bonus will

also be paid

15. Free Look Period A period of 15 days is available.

16. Riders SUD Accidental death & Total & permanent disability rider and also Critical

illness rider are available..

17. Death Benefit Jeevan Safar provides for payment of sum assured along with the vested

bonuses on death of the assured during the premium paying term. If death

takes place after premium paying term, then only the sum assured is payable.

18. Nomination Nomination is compulsory under this policy. If nominee is a minor an

appointee is compulsory

19. Survival Benefit Sum assured along with the vested bonuses become payable on survival of the

assured to the end of the premium paying term.

138

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (BOI AXA)

BOI AXA Equity Fund 1 Fund Type An Open Ended Equity Growth Fund

2. Investment

Objective

To generate income and long-term capital appreciation through a diversified

portfolio of predominantly equity and equity-related securities including equity

derivatives ,across all market capitalizations.

3. Bench mark CNX Nifty Index

4. Plans/Options Plans:

• Regular Plan

• Direct Plan

Under each of the plans, the following options are available:

• Growth Option

• Bonus Option

• Regular Dividend Option and

(Quarterly Dividend Option - offering Dividend Re-investment and Dividend

Pay-out facilities )

5. Min Application

Amt/ Additional

Amt

• Regular Plan / Direct Plan - Rs. 5,000 and in multiples of Re.1

• Eco Plan (withdrawn for Subscription w.e.f. October 1, 2012)

• Institutional Plan (withdrawn for Subscription w.e.f. October 1, 2012)

• Additional Purchase Amount

• Regular Plan / Direct Plan - Rs. 1,000

and in multiples of Re.1

• Eco Plan (withdrawn for Subscription w.e.f. October 1, 2012)

• Institutional Plan (withdrawn for Subscription w.e.f. October 1, 2012)

6. Load Structure • Entry Load : Nil

• Exit Load : 1% if redeemed within 1

year from the date of allotment

7. Special Features • Micro SIP

• Daily SIP

• Quarterly Dividend

• SIP SHIELD Available

On May 7, 2012, Bank of India (BOI) acquired a 51% stake in Bharti AXA Investment

Managers Private Limited (BAIM) and Bharti AXA Trustee Services Private Limited

(BATS). Consequent tothis change in JV Partnership, BOI became a Co-Sponsor along with

existing Sponsor, AXA Investment Managers ("AXA IM") and the Fund was renamed as

BOI AXA Mutual Fund BOI AXA Tax Advantage Fund

1 Fund Type An Open Ended Equity Linked Savings Scheme

2. Investment

Objective

The Scheme seeks to generate long-term capital growth from a diversified portfolio of

predominantly equity and equity-related securities across all market capitalizations. The

Scheme is in the nature of diversified multi-cap fund.

3. Bench mark CNX Nifty Index

4. Plans/Options The Scheme offers following Plans:

• Regular Plan

• Direct Plan 5. Min Application

Amt/ Additional

Amt

• Rs. 500/- and in multiples of Rs. 500/- for Purchases including Purchases through

Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) and Additional

Purchases. STP from this Scheme to another scheme shall be permitted only after 3 year

lock-in period

6. Load Structure • Entry Load : Nil

• Exit Load : Nil

7. Lock –In Period 3 Years

8. Special Features Monthly SIP

• Monthly STP


139

BOI AXA Focused Infrastructure Fund

1 Fund Type An Open Ended Equity Scheme

2. Investment

Objective

The Scheme seeks to generate long term capital appreciation through a portfolio of

predominantly equity and equity related securities of companies engaged in

infrastructure and infrastructure related sectors.

3. Bench mark CNX Infrastructure Index

4. Plans/Options The Scheme offers following Options:

• Growth Option for capital appreciation

• Quarterly Dividend Option offering Dividend Re- investment and Dividend Pay-out

facilities

• Regular Dividend Option offering Dividend Re-investment and Dividend Pay-out

facilities

5. Min Application

Amt/ Additional

Amt

• Minimum Investment: Rs. 5,000/-

• Minimum Additional Investment : Rs. 1,000/-

6. Load Structure Entry Load: Nil

• Exit Load: 1% if redeemed within 1year from the date of allotment

7. Special Features • Micro SIP

• Daily SIP

• Daily STP

• Monthly SIP

• Monthly STP


140

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (SDV Lockers) Introduction

Safe deposit lockers facility is one of the ancillary services extended by bank at our branches. The

relationship between the banker and the customer of a locker is that of lessor and lessee. The locker units

will be leased out to customers who have been properly introduced to the bank.

Definitions

(i) Custodian: Custodian is the officer-in-charge of the safe deposit vault of the branch.

(ii) Renter: Renter is the person who has taken on hire a locker in a safe deposit vault of the branch.

(iii) Master Key (or Custodian Key): This key is held by the Custodian. Without first operating this key

in the lock, the renter cannot operate his key and open the locker.

(iv) Renter's Key: Key of the locker to be allotted to the renter.

(v) Key Cabinet: A cabinet in which the renters' keys of all unlet lockers and other vault keys, including

the custodian key, are kept.

(vi) Pass Word: This is a confidential word known only to the Bank and the renter which helps the Bank

to identify the renter and serves as an additional precaution in case of doubt. The pass word is

recorded on the specimen signature card. Allocation of Rentals: Lockers are generally let out for a period of one to three years. The rent for the

entire period for which the locker is rented is received in advance and should be credited to the

"General Ledger Account - Sundry Credits - Rent on Safe Deposit Lockers". The total amount of rent

received should be allocated to the respective half- years to which it relates.

Embossing of Bank Identification Code on the keys of Lockers

The keys of the safe deposit vault lockers up to 1990 contained only the key number for identifying the

key. Now the keys of the Safe Deposit Vault lockers should bear additional six digit code number

containing the Bank code (No 13 for our Bank) and Branch Reconciliation Code Number embossed on

them to identify-the Bank and the Branch to which the lockers belong.

In the case of joint renters, access to the locker can be -

(a) By either or survivor

(b) By former or survivor

(c) By the renter first named during his/ her life time and only after his/her death – by all the

survivors jointly or by any. (1/2/3) of the survivors jointly or by last survivor singly.

(d) By any one or any one of the survivors or the last survivor.

(e) Jointly by any of them or any of the survivors of them or by the survivors or by the last survivor

singly.

In case one of the joint renters is a minor, branches should not open accounts with operational

instructions indicated in (b) and (c) above.

Memorandum of Agreement A renter is required to sign the Memorandum of Agreement and complete

the card. The name of the renter should be written in the Memorandum of Agreement Book (Form SDV

1453 Revised). The signature(s) of the renter(s) should be taken in the space provided; initials should be

taken at the foot "conditions” on the reverse of the Memorandum of Agreement. If there are any alterations

in the "conditions", the initials of all the renters must be taken against such alterations. The key number of

the locker allotted should be noted. Only the stamped part of the Memorandum should be executed by the

Bank and the renter and it should be retained by the bank, the other part to be given to the renter should not

be executed but the word "copy" should be written there on and delivered to the renter after details about

execution are duly completed thereon.

Operation of Locker: When a renter desires to have access to his locker, he should come to the vault

with the key of his locker. He should enter the date, time and the number of the locker and sign the Daily

Register of Renters Attendance (Form SDV 1403). The Custodian should ask the renter the pass word (code

word) and verify the signature of the renter and, after satisfying himself, write the locker number under his

initials on an Access Slip (Form SDV 1464) and hand it over to the renter. A renter who cannot give

satisfactory proof of his identity will not be given access to the vault. The custodian will sign all entries in

the Register.

141

Renter Leaving Vault with Locker Left Open: Prominent notices may be exhibited in the vault at

various places reading "Renters are requested in their own interest to close their lockers securely

before leaving the vault”. It sometimes happens that the renter goes out of the vault without locking his locker. Although the Bank

has no knowledge of and takes no cognizance of the contents of the lockers, the following procedure has to

be adopted as a precautionary measure to safeguard the contents and without the Bank owing any duty to

the renters to carry it out. Renter should be contacted immediately and requested to come to the vault with

the key. He should then be informed of the position. (When calling the renter to the vault, no indication

should be given to him about his unlocked locker). The renter should be asked to check contents of the

locker and be satisfied about them. He should give a declaration in writing to that effect.

Transfer of Locker: Transfer of Locker from one Branch to another Branch of the Bank may be

permitted. Ordinarily, such requests for transfer of locker will be from one Branch to another in the same

town. Even if transfer of a locker is requested to a safe deposit vault in another town in the same country, it

should be permitted and refund of proportionate rent for the unexpired period may be given to the renter to

the debit of "General Ledger Account - Sundry Credits Rent on Safe Deposit Lockers" to which the rent

was previously credited. Corresponding deduction should be made in SDV Rent Register.

Recovery of Overdue Locker: Rental Branches should prepare a roadmap for recovery of overdue

locker rent, in such cases where the rent is overdue for more than one year. Wherever overdue rent recovery

is not possible in spite of concentrated efforts, action should be initiated to drill open the lockers giving

proper notice to the customers and by strictly following extant guidelines of the Bank in the matter.

Surrender of Locker: When a locker is to be surrendered by the renter, he should sign the Daily Register

of Renters' Attendance and take the Access Slip as usual. He should also sign the release portion on the

reverse of the specimen signature card. The renter after removing the contents of his locker should hand

over the renter's key to the custodian who should verify the key number from the record. The lock of the

surrendered locker should be changed before the locker is let out again.

Nomination Facilities for Renters: The Banking Regulation Act, 1949 has been amended by Section 37

of the Banking laws (Amendment) Act, 1983, by introducing new Sections 45 ZE and 45 ZF which provide

inter-alia, nomination facilities to the renters of Safe Deposit Lockers

Secrecy and Confidentiality Utmost secrecy must be maintained. No information about renting of

lockers, mode of operation or visits of renters must be divulged except with the clear consent of the renters

and/or when compelled by law.

Rental Charges: Please refer Annexure –II of Branch Circular No. 106/79 dated 31/08/2012.

142

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (DEMAT ACCOUNT)

BASIC SERVICE DEMAT ACCOUNT

Purpose :- The SEBI Board had taken decision to extend the reach of IPO for the benefit of retail investor. With a view to

achieve wider financial inclusion, encourage holding of demat accounts and to reduce the cost of maintaining

securities in demat form/account for individual investors, it has been decided that depository participants shall make

available a “Basic Services Demat Account (BSDA)” with limited services.

Eligibility : Individual investor shall be eligible to opt for BSDA subject to the following conditions:-

All the individuals who have or proposed to have one demat account where they are the sole or first holder.

Individuals having any other demat accounts where they are not the first holder shall be eligible for BSDA in respect

of the single demat account where they are sole or first holder.

The individual shall have only one BSDA in his/her name across all depositories.

Value of security held in the demat account shall not exceed Rs. Two lakhs at any point of time.

Option to open BSDA : The Depository shall give option :

a)To open BSDA to all eligible individuals who open a demat account after the date of applicability of this circular;

b) To all the existing eligible individuals to convert that demat account into BSDA on the date of the next billing cycle

based on value of holding of securities in the account as on the last day of previous billing cycle.

Charges :

1 The charge structure may be on a slab basis as indicated below :

a. No AMC shall be levied, if the value of holding is upto Rs. 50,000/-

b. For the value of holding from Rs. 50,001 to Rs. 2,00,000/- AMC Rs. 100/- may be charged.

c. Above Rs. 2,00,000/- AMC will be charged as regular/normal demat account and the Demat account will auto

converted into normal Demat account.

2 The value of holding shall be determined by the DPs on the basis of the daily closing price or NAV of the securities

or units of mutual funds, as the case may be. Where such price is not available the last traded price may be taken into

account and for unlisted securities other than units or mutual funds, face value may be taken into account.

3 If the value of holding in such BSDA exceeds the prescribed criteria at any date, the DPs may levy charges as

applicable to regular accounts (Non BSDA ) from that day onwards.

4 The DPs shall reassess the eligibility of the Beneficiary Owners (BO) at the end of every billing cycles and give

option to the BOs who are eligible to opt for BSDA.

Service for BSDA

1. Transaction statements:

a) Transaction statement shall be sent to BO at the end of each quarter. If there are no transactions in any quarter, no

transaction statement may be sent for that quarter.

b) If there are no transactions and no security balance in an account, then no further transaction statement needs to be

provided.

c) Transaction statement shall be required to be provided for the quarter in which the account become a zero balance

account.

2. Holding Statement

a) One annual physical statement of holding shall be sent to the stated address of the BO in respect of accounts with no

transaction and nil balance.

b) One annual statement of holding shall be sent in respect of remaining accounts in physical or electronic form as

opted for by the BO.

3.Charges for statements : Electronic statements shall be provided free of cost. In case of physical statements, the DP

shall provide at least two statements free of cost during the billing cycle. Additional physical statements may be

charged at a fee not exceeding Rs. 25/- per statement.

4. All BOs opting for the facility of BSDA, shall register their mobile number for availing the SMS alert facility for

debit transactions.

5. At least two delivery Instruction Slips (DIS) shall be issued at the time of account opening.

6. All other conditions as applicable to regular demat accounts.

Rationalization of Services with respect of regular A/cs.

a. Accounts with zero balance and nil transaction during the year: DP shall send one physical statement of holding

annually to such BOs and shall resume sending the transaction statement as and when there is a transaction in the

account.

b. Accounts which become zero balance during the year : for such accounts, no transaction statement may be sent for

the duration when the balance remains nil. However, an annual statement of holding shall be sent to the BO.

c. Accounts with credit balance: For accounts with credit balance, but no transactions during the year, one annual

statement of holding for the year shall be sent to the BO.

(Ref: BC No:107/75 dt:18.07.2013)

143

Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent

number of securities in electronic form and credited into the BO’s account with his DP. All Branches can entertain DP

business and canvass for Demat accounts. However, Special Collection Centre (SCC) Branches will have access to DP

Secure software for entering DP transactions.

The benefits of Dematarilised Security are enumerated below:-

a) A safe and convenient way to hold securities; b) Immediate transfer of securities c) No stamp duty on transfer of

securities d) Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays,

thefts etc. e) Reduction in paperwork involved in transfer of securities f) Reduction in transaction cost g) No odd lot

problem, even one share can be traded h) Nomination facility i) Change in address recorded with DP gets registered

with all companies in which investor holds securities electronically eliminating the need to correspond with each of

them separately j) Transmission of securities is done by DP eliminating correspondence with companies

k) Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc. l) Holding

investments in equity and debt instruments in a single account.

Eligibility :- 1. Individuals – single or joint account 2. Trusts 3. Body corporates 4. Partnership 5. HUF 6.

Banks/Institutional Investors 7. Foreign Institutional Investors (FII) 8. Army/Govt Bodies 9. Registered Society

New Uniform Know Your Client (KYC) guidelines for all Capital Market related products

Know Your Client (KYC) Application Form :- 1.For Individuals 2.For Non-Individual(see Note 1 for required

documents) ACCOUNT OPENING

The staff members/customers desirous of opening of DEMAT Account, may complete the KYC Application, Demat

Account opening form(AOF) and forward the same to one of two DPs along with supporting documents and

declarations.DPO/branches opening demat accounts should adhere to KYC norms. Though demat accounts are

opened only of our existing customers (having their SB/CD/OD account), the account opening forms should be

accompanied with photocopies of proof of identity (pass-port, PAN card, credit card with photograph, voter’s identity

card/driving licence etc.) and proof of residence (ration card, latest telephone bill, electricity bill, bank account pass

book/statement of account etc.) Photographs of accountholder/s are pasted (not stapled) at appropriate place in the

Account Opening Form (AOF) with signature/s of account holder/s across them. Proofs of identity and residence

should be verified with original with noting ‘verified with original’ under full signature, sign code number, name of

official and date.PAN CARD IS COMPULSORY FOR OPENING DEMAT ACCOUNT. PAN Card details (along

with PAN Card photocopies) of all joint accountholders should be obtained. Other enclosures such as photocopies of

Board Resolution, Articles /Memorandum of Association, Trust Deed, HUF letter, proof of change of address, birth

certificate (minor’s account), power of attorney etc. should be verified with original as above. Name/s address/es in

AOF should tally with proofs of identity and residence. DPO should validate PAN details from Income Tax

Website.AOF should also accompany cancelled cheque leaf of sole/first holder. DP-client Agreement should be filled

up/completed, signed by all account holders and witnessed. Nomination form is obtained duly completed/signed and

with photograph of Nominee in case of Individual. AOF should have remark ‘Signature/s and Photographs verified

with record’ under full signature and signature code number of official and rubber stamp of branch. AOF should be

forwarded to DPO under covering letter promptly. ISSUANCE AND PROCESSING OF DELIVERY INSTRUCTION SLIPS (DIS)

DPO should maintain proper record of blank DIS booklets (similar care & precaution should be exercised as taken

while handling cheque/Pay order /DD books).Affix BO ID (Account number) on each DIS leaf and Requisition slip

before issuing to client. New DIS book should be issued only against in-built Requisition slip signed by all

accountholders. Acknowledgement of accountholder should be obtained of having received DIS booklet

Enter DIS serial number in client’s account in back office system. Affix Receipt Date and Time stamp on DIS

received from clients for execution under the initials of receiving official/staff. Verify that DIS submitted by client is

complete in all respect and signed by account holder/s; blank spaces, are scored-off. In joint accounts, all account

holders should sign DIS and alterations in DIS.DIS received beyond the cut off time should be stamped with

‘Received at client’s risk’ with date and time stamp affixed. DIS are promptly entered in the system with correct

details and execution date. Staff entering the DIS in computer system and officer/s verifying and releasing the

instructions should initial on the DIS. Wherever dual authorization is required (for DIS of value of Rs.5 lakh and

above) should be verified/authorized by two officers. Before executing DIS, signatures of account holder/s should be

verified/cancelled by branch/DPO official/s. Failed DIS should be probed and informed promptly to client/s. DEMATERIALISATION REQUESTS

Demat Request Form (DRF) submitted by the clients should be complete in all respect and signed by the account

holder/s. Ensure that share certificates tally with the name of company, distinctive, certificate and folio numbers

mentioned in the DRF. Affix receipt stamp with date on Demat Request Form with share certificates received from

clients. Share certificates submitted for dematerialisation should be stamped ‘ Surrendered for Dematerialisation’ and

two holes are punched across the company’s name on the certificate.

Before accepting DRF, branches/DPOs should verify from NSDL DPO or NSDL website/ system that the companies

are existing and are not black listed. Shares of black listed /defunct companies should not be accepted for

dematerialisation. DRF should be forwarded to Registrar and Transfer Agent or Issuer company by DPO within 7 days

of receipt of the DRF. Share certificates received for dematerialisation should be kept securely in safe custody under

dual control till the same are forwarded to the NSDL DPO /RTA /Issuer company. Regular follow-up should be done

for pending DRFs.

View of Holding : Customer/Staff can view their holdings if they have availed Bank Of India Internet Banking facility. In

addition to this, they can also view their holdings (with latest valuation of securities) by availing IDeAS of NSDL or Easi of

CDSL. Existing customers can avail this facility by making One time online Registration by visiting their websites. For the

new customers, this product is offered by default.

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Nomination : Nomination can be made only by individuals holding beneficial accounts either singly or jointly. Non-

individuals including society, trust, body corporate, karta of Hindu Undivided Family, holder of power of attorney

cannot nominate. Only an individual can be a nominee. Nomination is helpful in smooth transmission of shares upon

the death of the BO/s. The nomination once made can be changed at a later date as desired by the BO/s.

Service Charges : Type of Service Charges

Staff/Retired Staff Customers

Account Opening Charges Nil Nil Account Closure Charges Nil Nil Account Maintenance Charges Nil

Custody Charges No Custody Fee

DEMAT Charges (per request per

ISIN)

Rs. 20/- per transaction

REMAT Charges (per request per

ISIN)

Rs. 15/- per transaction

Purchase (Equity/Debt Instruments) Nil Nil Sale (Equity/Debt Instruments) Rs. 20/- per transaction

Pledge Pledge Creation – Rs.25/-

Pledge Closure - Rs. 25/-

Pledge Invocation – Rs. 50/-

Statement of Account Free

Tele – Depository (IVRS) Free

Note: a) The above charges are exclusive of service tax. b) AMC non refundable c) Billing will be on quarterly

basis d) Charges are subject to revision at the Bank,s sole discretion with 30 days notice.

Checklist for scrutinizing DEMAT account opening forms (as per Circular Letter No: 2010-11/224

dt:11.01.2011

Demat Account for NRIs: NRI/PIO Customers of any of the Bank of India Branches can open a Demat Account and avail the Portfolio

Investment Scheme (PIS) Services. NRI Customers can make Investments in Stock Market only through the PIS SB

Account opened for the purpose. Customers who do not have a SB/Demat Account with Bank of India can open the

account and avail the above facility. All the secondary market transactions are routed through this account and no

other transactions are allowed in this PIS Account. For charges and other transactions NRIs may use their existing

account. In case the customers do not have any account with Bank of India then two NRE Accounts have to be opened

for this purpose.

All NRIs have to obtain approval for Portfolio Investment Scheme from the Designated Branch of Bank of India. The

approval is valid for a period of five years and has to be renewed further.

All Branches of Bank of India facilitate opening of NRI PIS Account. However, only 3 Designated Branches (i.e.

Mumbai NRI Branch, Ahmedabad NRI Branch and New Delhi NRI Branch)are authorized to obtain necessary

approvals. Other Branches would forward the documents to these 3 branches for opening of PIS Account, Demat

Account and a Trading Account.

NRIs who wish to open a Demat / Trading Account may contact any of the BOI domestic / overseas Branches

and submit the Account Opening Form (AOF) and other KYC documents for onward submission. Documents

required for opening a NRI Demat Account :- a)Demat Account opening Form b)DP Agreement (Applicable

Stamp duty is Rs. 100/-) c) KYC documents duly certified by Banker or Authorised officials as ‘ verified with

the original”. d) Passport copy e) In case of Foreign Passport, copy of passport showing place of birth as India or

copy of PIO/OCI card f)Valid Visa Copy g) Copy of Overseas residence address proof (not more than 3 months old).

In case Indian Address is mentioned, then address proof of Indian Residence is to be furnished. h)PAN card copy i)In

case of existing account holder, copy of the PB or statement j)2 photographs

NRE SB Account (PIS Account)

a)1 set of NRE Account opening form duly filled in, signed across the photograph b) Copy of existing BOI NRE

Account passbook/Statement or 1 more Additional Account Form

For On line Share Trading Account (Additional documents) :- i)Trading Account Opening form of any one of the four

tie-up brokers. ii)Agreement cum Indemnity cum POA of BOI (Applicable stamp duty Rs. 400/-) iii)PIS Account

declarations

Commodity DEMAT Account Facility: Bank has joined the National Commodity Derivatives Exchange of India Ltd. (NCDEX) as a Depository Participant

offering commodity DEMAT account facility through our NSDL as well as CDSL DPOs.

While our Stock Exchange Branch is one of the Clearing Banks for settlement of trades in commodities of NCDEX,

Bullion Exchange Branch is a Clearing Bank of the Multi-Commodity Exchange of India Ltd. (MCX), another

premier commodity exchange. Traders/members of NCDEX and MCX may join our Stock Exchange branch/Bullion

Exchange branch and avail clearing bank facility. With our all branches on core banking platform, traders/members of

NCDEX and MCX and their clients can avail the internet banking , anywhere, anytime and multi-branch banking, easy

payment and remittance solutions across our branches and branches of other banks. Commodity DEMAT’s account

facility available with both our NSDL and CDSL DPOs to the member traders and their clients of the National

Commodity Derivatives Exchange of India Ltd. (NCDEX)

145

Star Share Trade [Online Share Trading Facility/Online Share Trading Account(OLST)]

All the Branches of BOI would facilitate opening of Trading Account/Demat Account. Bank and DEMAT accounts with BOI are

automatically debited and credited. Trading is very simple. Either log on to BOI website or Brokers website or place order over

phone by contacting their Trading Ph Nos. Clients can trade as many times in as much scrip they wish to on both NSE and BSE.

Registration or Documentation : For OLTS, client has to register with one of the Stock Broker, in terms of SEBI Regulations by

filling up and signing the Registration Kit. The duly completed/executed/executed and verified Forms and Agreements,

Registration Kit and DP-OTS-1 alongwith the cheque for Registration fee shall be received by the Branch and forward under

covering letter to our DPO.

Login ID and Password : Sharebroking firm will register the client and send the login ID and password to enable access to the

website for trading, directly to the client.

Star Share Trade (Online Share Trading) offers the following facilities:

Delivery based Trading: You can take /give delivery of shares based on adequate funds /stocks in your accounts.

Intra Day Trading: Reverse/square off your buy/sell trade in the same settlement without having to block additional fund or share

for meeting delivery obligation.

Trade Multiple: Leverage your bank balance by trading upto four times the balance available in your bank account on NSE and

BSE.

Buy Today and Sell on T1/T2 day

Online IPO Subscription: Our client registered for Star Share Trade can select an Initial Public Offer which is open for

subscription by putting their request though our online system to stock broking company with whom customer have tied up for Star

Share Trade.

Brokers :

1. Asit C. Mehta Investment Intermediates Ltd (ACMIIL)

2. Ajcon Global Services Ltd (AGSL)

3. GEPL Capital Pvt Ltd (GCPL)

4. Karvy Stock Broking Ltd (KSBL)

In case of Staff obtain request letter from staff for availing Star Share Trade. And extend facility also for buying and selling of

shares on delivery basis only, backed up by full balance available in their bank account and demat account. (Circular Letter No:

2010-11/224 dated 11.01.2011)

Note 1

A. Proof of Identity (POI): - List of documents admissible as Proof of Identity:

1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license.

2. PAN card with photograph.

3. Identity card/ document with applicant’s Photo, issued by any of the following: Central/State Government and its

Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public

Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar

Council etc., to their Members; and Credit cards/Debit cards issued by Banks.

B. Proof of Address (POA): - List of documents admissible as Proof of Address:

(*Documents having an expiry date should be valid on the date of submission.)

1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/

Flat Maintenance bill/ Insurance Copy.

2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old.

3. Bank Account Statement/Passbook -- Not more than 3 months old.

4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts.

5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-

Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public/Elected representatives to the

Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority.

6. Identity card/document with address, issued by any of the following: Central/State Government and its

Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public

Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar

Council etc., to their Members.

7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized

and/or apostiled or consularised) that gives the registered address should be taken.

8. The proof of address in the name of the spouse may be accepted.

C. Exemptions/clarifications to PAN

(*Sufficient documentary evidence in support of such claims to be collected.)

1. In case of transactions undertaken on behalf of Central Government and/or State Government and by officials

appointed by Courts e.g. Official liquidator, Court receiver etc.

2. Investors residing in the state of Sikkim.

3. UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India.

4. SIP of Mutual Funds upto Rs 50,000/- p.a.

146

5. In case of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral and

Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance Companies

registered with IRDA and Public Financial Institution as defined under section 4A of the Companies Act, 1956,

Custodians shall verify the PAN card details with the original PAN card and provide duly certified copies of such

verified PAN details to the intermediary.

D. List of people authorized to attest the documents:

1. Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or Multinational Foreign

Banks (Name, Designation & Seal should be affixed on the copy).

2. In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India,

Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country where the client resides are

permitted to attest the documents.

E. In case of Non-Individuals, additional documents to be obtained from non-individuals, over & above the POI

& POA, as mentioned below:

Types of entity Documentary requirements

Corporate Copy of the balance sheets for the last 2 financial years (to be submitted every year).

Copy of latest share holding pattern including list of all those holding control, either directly or

indirectly, in the company in terms of SEBI takeover Regulations, duly certified by the company

secretary/Whole time director/MD (to be submitted every year). Photograph, POI, POA, PAN and

DIN numbers of whole time directors/two directors in charge of day to day operations.

Photograph, POI, POA, PAN of individual promoters holding control - either directly or

indirectly.

Copies of the Memorandum and Articles of Association and certificate of incorporation.

Copy of the Board Resolution for investment in securities market. Authorised signatories list with

specimen signatures.

Partnership firm Copy of the balance sheets for the last 2 financial years (to be submitted every year). Certificate of

registration (for registered partnership firms only). Copy of partnership deed.

Authorised signatories list with specimen signatures.Photograph, POI, POA, PAN of Partners.

Trust Copy of the balance sheets for the last 2 financial years (to be submitted every year). Certificate of

registration (for registered trust only). Copy of Trust deed. List of trustees certified by managing

trustees/CA. Photograph, POI, POA, PAN of Trustees.

HUF PAN of HUF. Deed of declaration of HUF/ List of coparceners. Bank pass-book/bank statement

in the name of HUF. Photograph, POI, POA, PAN of Karta.

Unincorporated

association or a

body of

individuals

Proof of Existence/Constitution document. Resolution of the managing body & Power of Attorney

granted to transact business on its behalf. Authorized signatories list with specimen signatures

Banks/Institution

al Investors

Copy of the constitution/registration or annual report/balance sheet for the last 2 financial years.

Authorized signatories list with specimen signatures.

Foreign

Institutional

Investors (FII)

Copy of SEBI registration certificate.


Army/ Govt

Bodies

Self-certification on letterhead.


Registered

Society

Copy of Registration Certificate under Societies Registration Act. List of Managing Committee

members. Committee resolution for persons authorised to act as authorised signatories with

specimen signatures. True copy of Society Rules and Bye Laws certified by the Chairman/

Secretary.

(Ref :BC No: 100/95 dt:8.09.2006; 101/17 dt: 03.05.2007; 105/151 dt: 12.12.2011. Circular Letter No: 2010-11/224

dt: 11.01.2011; 2011-12/186 dt:17.01.2012; 2011-12/220 dt: 02.03.2012; 2012-13/01 dt:02.04.2012)(

147

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (CAPITAL GAINS ACCOUNT)

CAPITAL GAINS ACCOUNT SCHEME, 1988

Purpose :- An individual and HUF assessee upon sale of their residential property are in a position to avail certain exemptions for

Capital Gain provided other residential property is purchased / constructed within stipulated period as envisaged under

Sec. 54 of Income Tax Act, 1961 and till such time a new property is purchased / constructed, the capital gains arising from

the sale of the property can be deposited in Capital Gain Account Scheme, 1988.

Scheme Details :- Branches Authorized Non Rural Branches (i.e. All Semi Urban/Urban/Metro Branches

Types of Accounts Account ‘A’ (Savings Bank) Account ‘B’ (Term Deposit cumulative/ non-cumulative)

(Savings Plus Scheme not permitted)

Account Opening Form( KYC

compliance)

Form – A (in duplicate) + Proof of Address + Copy of PAN Card + Photograph +

unstamped HUF Letter in case of account is for HUF (non-trading)

Rate of Interest Account ‘A’ – Applicable to SB Accounts

Account ‘B’ – As per Bank’s TDR Rates.

Withdrawal## Amount can be withdrawn from deposit “A” (Savings Bank Account) by furnishing an

application in form ‘C’ alongwith Pass Book.( No cheque book will be issued.)

## Premature withdrawal from Deposit ‘B’ (TDR) is permitted by converting account from ‘B’ to ‘A’ and by levying 1% penal

interest for premature payment as in case of TDRs. Form B will be used for conversion of Account ‘B’ to ‘A’.

Further withdrawal

For subsequent withdrawal form ‘D’ (in duplicate) by giving the details showing the

manner/ purpose for which the previous withdrawal has been utilized Banks are

not obliged to allow further withdrawal if above referred particulars are not

furnished

Mode of payment Any withdrawal over Rs.25,000/- should be affected by Bank, only by crossed DD.

Utilization of Amount

withdrawn

Amount drawn from Account ‘A’ has to be utilized within 60 days from the date of such

withdrawal for the purpose mentioned in the relevant sections. Unutilized amount

should be re-deposited in Account ‘A’ immediately. Non-compliance of this rule

will render the depositor to lose exemptions under relevant section.

No Lien Amount cannot be placed or offered as Security for any loan or guarantee and cannot be

charged or alienated.

Transfer of Account Account can be transferred to another Branch of the same Bank.

Interest Exemption under I. T.

Act 1961

Interest is not exempted under Income Tax Act, 1961.TDS will be deducted at applicable

rates on TDRs.

Transfer from Account ‘B’ to

‘A’ or ‘A’ to ‘B’

This is permitted – Depositor will apply for this transfer in form ‘B’. If account ‘A’ is not

opened a new ‘A’ will be opened on obtention of form ‘A’.

Nomination by a Individual Form ‘E’ (Max. 3 Nominees)

1st nominee shall alone have the right to recover the amount, after death of 1st nominee,

2nd has the right and after death of 1st & 2nd, the 3rd will get right.

Variation/ Cancellation of

Nomination by Individual

Form ‘F’ for variation/ cancellation.

Nomination will be entered in Pass-Book/ Deposit Receipt. No nomination will be made

for other type of accounts (like HUF, minors)

Issue of Duplicate Pass Book or

Receipt

In the event of loss or destruction of pass book or receipt, the branch may issue, on

application made to it, a duplicate thereof.

Closure of Account

1. Application in Form ‘G’ with the approval of Assessing Officer who has jurisdiction to

the depositor.

2. If depositor dies, the nominee will make application in Form ‘H’ with the approval of

Assessing Officer (having jurisdiction over deceased depositor)

3. If there is no nomination then legal heirs will apply in form ‘H’ with the approval of

Assessing Officer (having jurisdiction over deceased depositor).

Overdue Deposit Bank may renew an overdue Term Deposit under Capital Gains Account Scheme and

allow interest on such renewed TDR or a portion thereof from the date of maturity of

deposit

FORM NO. SUBJECT FORM - A Application for opening an account under the Capital Gains Accounts Scheme, 1988 FORM - B Application for conversion of accounts under the Capital Gains Accounts Scheme, 1988 FORM - C Application for withdrawal of amounts from account-A under the Capital Gains Accounts Scheme, 1998

FORM - D

Details regarding the manner and extent of utilisation of the amount withdrawn from account under the Capital Gains

Accounts Scheme, 1988

FORM - E Form of Nomination under the Capital Gains Accounts Scheme, 1988 FORM - F

Application for cancellation or change of nomination previously made in respect of account under the Capital Gains

Accounts Scheme, 1988

FORM - G Application for closing the account under the Capital Gains Accounts Scheme, 1988

FORM - H

Application for closing the account under the Capital Gains Accounts Scheme, 1988, by the nominee/legal heir of the

deceased depositor Ref. H.O. Branch Circular No.82/137 (Sub-Deposit) 23/06/1988 & 82/208 (Sub-Deposit) 26/09/1988

148

SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (CIBIL)

(Credit Information Bureau (India) Limited ) Credit Information Bureau (India) Limited or CIBIL is a Credit Information Company (CIC) founded in

August 2000. CIBIL collects and maintains records of an individual‘s payments pertaining to loans and

credit cards. These records are submitted to CIBIL by banks and other lenders, on a monthly basis. This

information is then used to create Credit Information Reports (CIR) and credit scores which are

provided to lenders in order to help evaluate and approve loan applications.

• It isIndia's first credit information bureau,Repository of information,Contains credit history of

Commercial & Consumer borrowers. Provides this information to its Members in the form of credit

information reports.

Its major stake holders are Trans Union International(27.5%), SBI910.00%), ICICI Bank ltd(10.00%) ,Bank

of India(5.00%) & 9 other Banks and financial Institutes, having 5.00% each.

Category Covered by CIBIL:-Individual/Consumers Corporates, partnership firms, proprietary concerns,

private and public limited companies, etc.

Who can access CIBIL Credit Reports-CIBIL Members, which include leading Banks and Financial

Institutions, can access information from CIBIL on the principle of reciprocity i.e. only those Members

who have provided all their data to CIBIL are permitted to access CIBIL Credit Reports. Individuals can

also request access to their Credit Reports directly from CIBIL.

What is the CIBIL Credit Report-CIBIL Credit Report is a factual record of credit payment history

compiled from information received from different credit grantors. Credit grantors are leading Banks,

Financial Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing Finance

Companies, Credit Card Companies, who are Members of CIBIL. The purpose is to help credit grantors

make informed lending decisions - quickly and objectively, and enable faster processing of credit

applications to provide speedier access to credit at better terms.

Different Terminology Used in CIBIL report

ACCOUNT:-This section of credit report contains existing and past credit facilities that the applicant has

availed from various loan providers.

ENQUIRY:-This section populated when a lender accesses credit report of an applicant from CIBIL in

order to evaluate the applicant. Enquiry section shows name of the lender applied to or enquired from, date

of enquiry, purpose & amount of the loan enquired for. All the enquiries made by the lenders in the past

are displayed here. If any enquiry which is not made by the applicant and it is there, immediately a dispute

should be raised by visiting ‘DISPUTE RESOLUTION” page on CIBIL site. This could be a case of

IDENTITY THEFT.S quick action should be taken.

DATE REPORTED:-It indicates the date on which that information was reported to CIBIL.

WRITTEN OFF or SETTLED:-It indicates that the applicant has not been able to paid off his dues in the

past to a lender. This is viewed negatively by the by the bankers.

DPD (Days Past Dues):-It indicates, by how many days a payment on that account is late. Anything other

than 000 is considered negative.

Credit Information Report (CIR) is called CIBIL Trans Union Report and it ranges from 300 to 900.

Contents of CIBIL TransUnion Report

Contains details of Credit History,Dues,Repayment style,Financial negligence,Contact address,CIBIL

Score, Credit Score provides a lender with an indication of the ”probability of default” by the individual

based on their credit history.

Value near 900 makes higly eligible for loans.

Anything around 300 puts a customer in defaulter’s list.

Negative or Zero CIR means either wrong parameter supplied or the Customer information not available

with CIBIL.

CIBIL TRANSUNION SCORE 2.0:-CIBIL transunion score 2.0 is a new updated version of the Credit

Score. It has introduced a risk index score range.The score range is 1-5 where 1 signify HIGH risk and 5

signify LOW risk.

Factors that affect the score:-1) Late payments or defaults in the recent past.2) High utilization of Credit

limits 3) Higher percentage of Credit cards 4) High Personal Loan5) Behaving credit hungry.

http://www.cibil.com/who-can-access-cibil-credit-reports

http://www.cibil.com/what-cibil-credit-report

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SANDIPANI ONE PAGE MANAGER SERIES -OTHERS (CERSAI)

(Central Registry of Securitizations Asset Reconstruction & Security Interest of India ) BC 105/17 dated 23.04.2011, 107/93 Dt.23.08.2013, 107/98 Dt.30.08.2013

Central Registry of Securitizations Asset Reconstruction & Security Interest of India (CERSAI)

has been created by the Central Government wef 31.03.2011 under the SARFAESI Act 2002.

The object of setting up is to create a public data base about encumbrances created on properties

to secure loans & advances given by the banks and financial institutions. All equitable mortgages

are required to be registered with the CERSAI, for every transaction ie Creation/ Modification/

Satisfaction of charge within 30 days of creation of EM and certain fee is payable thereon. In

case there is any delay, on an application stating the reason for delay, the registrar of CERSAI

may allow filing of the charge within further 30 days from the expiry of first 30 days, upon

payment of additional fee. However, for delay beyond 60 days, the new section 26A in the

SARFAESI Act provides that the secured Creditors shall approach the central Government to get

such delays Condoned. Registration with CERSAI is through online. Registration with CERSAI

is in addition to all other existing legal formalities. Following details are required to be filledin in

the Form I for creation and modification of charge:-

1(a) Whether creation or modification is being done.

(b) Charge created by

(c)Whether the charge holder is authorized to assign the charge

(d) Charge identification no. if the charge to be modified.

2 Details of the firm as the case may be:-

(a) Company’s detail

(b) Individual Borrower’s detail

(c) Proprietorship Firm’s detail

(d) LLP’s detail

(e) Partnership firm’s detail

(f) Trust

(g) HUF

3. Address of the Borrower

4. Third Party Mortgage

5. Type of charge

6. Whether consortium finance is involved.

7. Particulars of the charge holder(s)(Banks/Financial Institutions)

8. Description of the Property

9. Description of the Document by which the Borrower/Third party acquire the Title

10. Amount secured by the charge

11. Date of creating/modifying the charge

12. Brief particulars of the principal terms and conditions and extent and operation of the charge

13. Particulars of the present modification.

CERSAI website- www.cersai.org.in

150

SANDIPANI ONE PAGE MANAGER SERIES –OTHERS (NON FUND BASED) These do not involve investment of fund unless the principal debtor fails to pay. These are off balance-sheet items

and in our bank, usually, given by way of:

1) Letter of Credit (LC) ; 2)Bank Guarantee. Letter of Credit A Letter of Credit is a written instrument issued by a bank at the request of its customer who will be the Importer

(Buyer), whereby the bank promises to pay the Beneficiary (Exporter) for goods or services, provided that the

Exporter presents all documents called for, exactly as stipulated in the Letter of Credit, and meet all other terms and

conditions set out in the Letter of Credit. A Letter of Credit is also commonly referred to as a Documentary Credit. In

can be issued both for domestic and cross border trade/business/transaction

There are two types of Letters of Credit: revocable and irrevocable. A revocable Letter of Credit can be revoked

without the consent of the beneficiary, meaning that it may be cancelled or changed up to the time the documents are

presented. It is rarely used almost negligible. An irrevocable Letter of Credit cannot be cancelled or changed without

the consent of all parties, including the Exporter. As per UCP 600, unless otherwise stipulated, all Letters of Credit are

irrevocable.

Depending on the payment terms, LCs can be sight or Usance. If payment is to be made at the time documents are

presented, this is referred to as a sight Letter of Credit. Alternatively, if payment is to be made at a future fixed time

from presentation of documents (e.g. 90 days after sight of 60 days from BL date etc), this is referred to as a usance or

deferred payment Letter of Credit.

Rules governing issuance of LC: The International Chamber of Commerce (ICC) publishes internationally agreed-

upon rules, definitions and practices governing Letters of Credit, called “Uniform Customs and Practice for

Documentary Credits” (UCPDC or UCP in short). The UCP facilitates standardization of Letters of Credit among all

banks in the world that subscribe to it. These rules are updated from time to time. Presently, applicable version is UCP

600.of Ct?

The following is a step-by-step description of a typical Letter of Credit transaction:

1. An Importer (Buyer) and Exporter (Seller) agree on a purchase and sale of goods where payment is made by Letter

of Credit.

2. The Importer completes an application requesting its bank (Issuing Bank) to issue a Letter of Credit in favour of the

Exporter. Note that the Importer must have a line of credit with the Issuing Bank in order to request that a Letter of

Credit be issued.

3. The Issuing Bank issues the Letter of Credit and sends it to the Advising Bank by telecommunication (Presently

SWIFT) in accordance with the Importer’s instructions. A request may be included for the Advising Bank to add its

confirmation. The Advising Bank is typically located in the country where the Exporter carries on business.

4. The Advising Bank will verify the Letter of Credit for authenticity and send a copy to the Exporter.

5. The Beneficiary/Exporter examines the Letter of Credit to ensure:

a) It corresponds to the terms and conditions in the purchase and sale agreement;

b) Documents stipulated in the Letter of Credit can be produced

c) The terms and conditions of the Letter of Credit can be fulfilled.

6. If the Beneficiary/ Exporter is unable to comply with any term or condition of the Letter of Credit or if the Letter of

Credit differs from the purchase and sale agreement, the Beneficiary/Exporter should immediately notify the

Applicant/Importer and request an amendment to the Letter of Credit.

7. When all parties agree to the amendments, they are incorporated into the terms of the Letter of Credit and advised to

the Exporter through the Advising Bank. Usually, the Exporter does not make any shipments against the Letter of

Credit until the required amendments have been received.

8. The Exporter arranges for shipment of the goods, prepares and/or obtains the documents specified in the Letter of

Credit and makes demand under the Letter of Credit by presenting the documents within the stated period and before

the expiry date to the “available with” Bank. This may be the Advising/Confirming Bank. That bank checks the

documents against the Letter of Credit and forwards them to the Issuing Bank. The drawing is negotiated, paid or

accepted as the case may be.

9. The Issuing Bank examines the documents to ensure they comply with the Letter of Credit terms and conditions.

Payment is made on due date if the documents are as per terms of LC. Such documents are called as ‘Compliant

Presentation’. Issuing bank recovers the amount from the applicant/Importer.

Documents are delivered to the Importer to allow them to take possession of the goods from the transport company.

The trade cycle is complete as the Importer has received its goods and the Exporter has obtained payment.

A key principle underlying Letters of Credit is that banks deal only in documents and not in goods. The decision to

pay under a Letter of Credit is entirely on whether the documents presented to the bank appear on their face to be in

accordance with the terms and conditions of the Letter of Credit.

Assessment of LC Limits:

Total Purchase Requirements A

Out of which under LC B

Lead time from opening of LC to shipment L

Transit time;‘T’ to be nil if usance period is from date of shipment T

Usance Period U

Total Purchase Cycle (L+T+U) P

LC-Limit P*B/12

Margin: As per Sanctioned Terms.

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Opening of Import Letters of Credit

At the time of opening of Letter of credit following points should be checked:

i. Whether the goods are on the Restricted List or Canalised Category as per the Foreign Trade Policy currently in force.

If so, L/Cs should be opened only against production of Exchange Control Copy of Import Licence issued by the

Director General of Foreign Trade.

ii. Goods, which are not under restricted/ canalised / banned category, may be imported freely. The Import Trade

Control Handbook gives ITC HS numbers for such freely importable items and this identification number should be

quoted in the Contract of sale/L/C for customs clearance.

iii. Branch should be satisfied about the ability of the Importer to retire the bill when it is received under the L/C. In case

he requires financial assistance that may be considered at the appropriate level.

iv. Status Report on the seller, his standing, whether he is capable of executing the export order, should be obtained

/verified.

v. The importer should be a regular customer of the Bank with limit sanctioned to him for Import L/C facility either on

casual basis or on regular basis.

vi. Requisite documents should be obtained from the applicant. Stamped L/C application form (FE 1338) to be obtained

at the time of opening of L/C.

vii. The L/C application form forms the basis of opening the L/C. All the instructions given by the importer in the

application form will be incorporated in the L/C.

viii. Proper declaration, documentary evidence in support of the request like Sale Contract, or Purchase order duly

accepted by both the buyer and seller, Exchange Control Copy of Import Licence wherever applicable to be obtained

along with stipulated margin.

ix. Importer should be advised / persuaded to book Forward Sale Contract to hedge his exposure against exchange rate

fluctuations.

x. Payment for imports should be made in a currency appropriate to the country of shipment of goods except in cases

where imports are from Asian Clearing Union countries or Nepal or Bhutan.

xi. Payment for imports should be completed within 6 months from the date of shipment.

xii. L/C should not be opened in the name of the applicant or his nominee.

xiii. Following liability vouchers are required to be passed (Presently, being done through system in CBS)

xiv. L/C should be prepared on SWIFT format MT700 incorporating all the details. The L/C will be subject to UCPDC

Brochure No.600 and Uniform Rules for Bank-to-Bank reimbursement. (URR725)

xv. One copy of the L/C will be given to the opener.

xvi. One copy will be retained as office copy.

xvii. Reimbursement authorisation will be separately sent to the reimbursing Bank.

xviii. When the Bill under the L/C is received, the same should be immediately presented to the drawee either for payment

or for acceptance.

xix. The branch should decide immediately on the basis of documents alone whether to accept or reject the documents but

not later than five banking days and find out whether they are in compliance with the terms of the L/C or not as per

UCP 600. Else the documents will be deemed to be accepted and liability under LC would follow. Hence branch to

adhere this time period of 5 banking days religiously.

xx. Remittance of all import bills on collection basis requires approval of Chief Manger/Senior scale IV officer/AGM.

xxi. Status Reports on Overseas Seller obtained.

xxii. The original of the note sanctioned by the appropriate authority for payment of the import bill will be filed in

chronological order and made available for verification by Internal/RBI auditors.

xxiii. The above-mentioned procedure to be followed even if 115% margin is obtained.

xxiv. Form A1 should be obtained making the remittance.

xxv. The documents should be retired at Bills Selling Rate or the contracted rate where forward contract was booked.

xxvi. Appropriate commission and postage as well as interest for the period from the date of debit to Nostro account till the

date of payment also to be recovered.

xxvii. Liability vouchers should be reversed after the payment of import bill.

xxviii. Follow-up should be made for obtaining evidence of import (Bill of Entry).

Amendments: After issuance of a Letter of Credit, changes can be done through amendments subject to acceptance

by the beneficiary. Amendments to the Letter of Credit will be required when either the Importer/applicant or the

Exporter/beneficiary is unable to comply with the terms of the sale agreement or the agreement has been changed. For

example, value, last date of shipment, requirement of specific document, mode of transport etc

Amendment requests will be processed subject to credit approval by the Issuing Bank where necessary.

Any amendments to the Letter of Credit must be accepted by the Exporter and where more than one change is

included in an amendment, they must be accepted as a whole as opposed to accepting or rejecting. Amendment

not applicable if accepted partially. The beneficiary not bound to accept amendments

152

Adding confirmation to the Letters of Credit

Adding confirmation to another bank's Letter of Credit amounts to stepping into the shoes of opening Bank,

assuming its liability and taking an exposure on the Bank.

Hence utmost care should be taken in considering such requests.

Request for adding confirmation should come from the L/C opening Bank

Adding confirmation at the request of the beneficiary, when there is no such request from the L/C opening

Bank is fraught with risk.

Request for adding confirmation should be referred to Head Office Foreign Business Dept. for allocation of

exposure limit for the Bank/Country

CONFIRMATION SHOULD NOT BE ADDED TO REVOCABLE L/Cs OR L/C s OF UNKNOWN

BANKS.

Sanctioning Authority for confirmation of L/C, should have the delegated powers and also verify

availability of exposure limit.

For adding the confirmation, the following clause will be typed on the original L/C itself and will be signed

by the Manager and Deputy Manager: (For manual LC’s.Presently it is being done through swift).

BANK OF INDIA HEREBY CONFIRMS THE CREDIT AND ENGAGES WITH THE DRAWERS,

ENDORSERS AND BONAFIDE HOLDERS THAT DRAFTS DRAWN UNDER THIS CREDIT SHALL

BE DULY HONOURED ON PRESENTATION, PROVIDED SUCH DRAFTS ARE DRAWN AND

PRESENTED IN ACCORDANCE WITH THE TERMS OF THIS CREDIT"

The commission for adding confirmation should be recovered from the L/C opening Bank at the rate

prescribed by HO.

In case it is not clear as to who will bear the Confirmation Commission, whether the L/C opening Bank or

the beneficiary of the L/C, matter should be taken up with the beneficiary and confirmation should be added

only after ascertaining as to who will pay the commission. The Confirming Bank is bound to negotiate the

documents under the L/C when they are presented.

On presentation of documents, the liability should be reversed.

153

SANDIPANI ONE PAGE MANAGER SERIES –OTHERS (NON FUND BASED)

NON FUND BASED FACILITIES

BANK GUARANTEES

What is Guarantee:

Section 126 of Indian contract Act defines guarantee as –a contract to perform the promise or discharge

liability of a third person in case of his default.

Parties to guarantee-

The principal debtor

The guarantor

The beneficiary

It does not involve investment of fund unless it is invoked and the principal debtor fails to pay.

It is an off balance-sheet item.

Issue of bank guarantee is generally governed by Uniform Rules for Issue of Demand Guarantees (URDG-

458) especially Foreign BGs.

Types of Guarantees: based on purpose A) Performance Guarantee: Issued in respect of performance of a contract or obligation by the

Bank’s customer. It involves a contractual obligation.

B) Other than Performance Guarantee: To guarantee for or in lieu of financial obligation

((Financial Guarantee)

i. Deferred Payment Guarantee

ii. Bid Bond Guarantee

iii. Shipping Guarantee

iv. Retention Money Guarantee

v. Co-acceptances

vi. Advanced Payment Guarantee

vii. Stand by letter or credit

viii. Guarantees on behalf of stock/share brokers favouring Stock Exchanges

Appraisal Of Bank Guarantee: Factors to be considered:

1) Purpose:

2) Frequency

3) Amount of Bank Guarantee

4) Past Record of Applicant:

i) With regard to invocation of guarantee

ii) With regard to Managerial/Technical competency of customer.

iii) Amount of Margin

iv) Amount of Collateral Security

Guarantee may be (based on location of beneficiary, Purpose and Currency):

Inland-Issued with in India in favour of beneficiary located in India for any contract or purpose originating

within India.

Foreign: Issued in India in favour of beneficiary located in any other country in Foreign Currency.

Guarantee issued must be unconditional and for

Definite period

Definite amount

Definite purpose

Delegation provides full powers at all levels to sanction issue of guarantees for periods up to 10 years in

case of guarantees fully secured by cash margin or term deposits or counter guarantee of other Bank’s /

FIs.

Restrictive powers for issue of guarantee not fully secured for periods up to 3 years provided there is no

onerous clause (which has the potential of increasing the guarantee amount in future or which is not

defined such as payment of interest on guaranteed amount etc) in the guarantee.

154

ASSESSMENT OF BANK GAUARANTEE:

Illustration: ABC &Co. manufactures aluminium shots for its supply to steel plant. Steel Plant during

invites tenders for its periodical requirement of aluminium shots from suppliers. ABC & Co usually submit

20 tenders to steel plant during a year and at any time 10 tenders deposits are outstanding. Value of Tenders

work is Rs.50 lakhs

Tender deposits - 10%

Security Deposits - 8%

Retention Money - 2%

ASSESSMENT: No. of tenders to be submitted by the Co. = 20

At any time 10 tenders are outstanding = 10

So amount required for tender deposit = Rs.10*5*10% = Rs.5 lakhs

Tenders usually accepted during a year = 10

So security deposit blocked in allotted tenders = 10*5*8% = Rs.4 lakhs

Aggregate value of supplies made during the year = Rs.50 lakhs

So retention money be kept by the steel plant = 50*2% = Rs.1.00 lakh

So total B.G. limit required by the company = Rs.10 lakhs

Charges for issue of guarantee Commission is charged as per H.O. guidelines only. It is charged for minimum two quarters and for actual

months.

For financial Guarantees 075% per quarter or part thereof and for performance 050% per quarter or part

thereof. Please note that for charges HO circulars must be referred (Currently applicable is HOBC 106/79

dated 31.08.12) as these charges are subject to revision from time to time.

Relaxation in Guarantee charges (Branch Cir.No.96/33 dt.05.06.02 )

In view of the competition in market, HO has reduced charges due to cash margin being available & risk

less. Following relaxation in charges are allowed by HO:

Available cash margin- minimum comm.

100% 25%

80% to < 100% 40%

60% to < 80% 60%

40% to < 60% 75%

Less than 40% Applicable commission

Processing charges 50% of usual processing charges applicable to fund-based facilities.

The commission is recovered in advance for an entire period including claim period.

Refund of commission on cancellation of Guarantee before expiry- calculate commission half the rate for

an un-expired period less three months and refund it .

Where validity period extended due to restraints of court order, an additional commission for the extended

period at the applicable rate.

When a guarantee is invoked and if payment is not made in an exceptional case for valid reasons,

commission will be charged for a period till the guarantee is cancelled or paid.

Margin for issue of Guarantee Bank’s credit is involved when guarantee is issued. Bank should protect itself against the liability

undertaken. Depending upon risk perception, cash margin be stipulated for issue of guarantee.

The extent of margin depend on worth and status of borrower, guarantee amount, period of guarantee etc.

Only cash securities are considered as margin.

For NFB facilities, Secured/unsecured for the purpose of delegation is based on cash security only.

As per RBI directives, guarantee in favour of Customs/import duty and levy payable for import of essential

commodities, as may be specified from time to time, Branches to take margin of 50%.

Security Documents

LG11 or LG12– Counter Guarantee and Indemnity. Copy of original contract certified as true copy

and marked should be attached to the counter guarantee taken.

LG13—letter of appropriation.

LG14/15—counter guarantee from guarantor.

LG500—Supplemental agreement of hypothecation.

Extension of equitable mortgage.

Request letter in case of regular/casual guarantee.

Onus of returning guarantee rest with customer

155

Some Important Points:

Stamp Duty to be paid as per local stamp act and not as per beneficiary’s advice or letter.

Branch not to issue or renew guarantee for inter company deposits or loans.

Partly secured guarantee involving excise or disputed tax payment should not be issued without prior

permission of Head Office.

Branches are not authorised to issue guarantees involving Foreign Exchange should obtain prior

approval from Head Office before issuing any guarantee where Foreign Exchange is involved

Onerous clause: Any provision in the guarantee which is likely to give rise to further pecuniary

liability like interest etc. is considered as an onerous clause

Guarantee not to have automatic extension clause or extension at request of beneficiary

Limitation Clause The following should be the last paragraph in all the guarantees issued :-

Notwithstanding anything contained herein above our liability under this guarantee is restricted to Rs. ------

- (Rs. ---------------) and this guarantee is valid up to ------------and we shall be released and discharged from

all liabilities hereunder unless a written claim for payment under this guarantee lodged on us within -------

months from the date of expiry of this guarantee i. e. on or before ------------- irrespective of whether or not

the original guarantee is returned to us.

For inland bank Guarantees(BG)-Following clause is to be incorporated additionally;

(Confirmation of this guarantee may be obtained from our Zonal office address of which is given below----)

Guarantee Form

The guarantee is normally issued in a format as per the specimen given by the beneficiary.

But before issue of guarantee, we must go through the text of the guarantee and find out whether the

format of guarantee is acceptable to us. There is no onerous clause.

Our standard limitation clause is to be added at the end of the guarantee.

All guarantees to contain legend regarding confirmation i.e. confirmation can be obtained from the Z.O. in

the covering letter forwarding the guarantee (Br.Cir.100/112 Dt.20.10.2006).

Cancellation of Guarantee

The guarantee should be received back after expiry of validity period

If not received, follow-up should be made to receive it back.

If the expired guarantee or advice of cancellation is not received within three months from the date of

the letter, the guarantee should be treated as cancelled and entries should be reversed

Invocation of Guarantee

When guarantee is invoked the claim should be settled without delay or demur.

Check whether invocation is made by the same authority in whose favour guarantee is issued.

Finacle: Menu in Finacle is GMM (Option ‘I’ for issue and option’M’ for modification. Options at the

bottom required to be filled up are G (General Details), C (charges) and K (margin).

When guarantee is cancelled the liability should be reversed (‘R’ option in Finacle-GMM followed by ‘Z’

for closure)

All guarantees issued should be serially numbered and reference to such number should be quoted in

correspondence. In Finacle, system generates the number automatically and the same is required to be

mentioned/entered on the BG and in Guarantee register which should, preferably, be maintained

manually for easy reference.

156

SANDIPANI ONE PAGE MANAGER SERIES FOREIGN EXCHANGE

NON RESIDENT DEPOSIT/01

Various schemes available to Non Resident Indians and procedures for opening Non

Resident Account

Definition of Non Resident Indians

Non Resident Indian means A. A person resident outside India who is a citizen of India i.e.

a. Indian citizen who proceed abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating indefinite period of stay outside India.

b. Indian citizen working abroad on assisgnment with Foreign Governments, United Nations Organisation, International Monetary Fund, World Bank etc.

c. Officials of Public Sector Undertakings, Central and State Government Agencies/ Organisation, Indian Embassy abroad.

B. Person of Indian Origin Person of Indian origin means citizen of any other country other than Bangladesh and Pakistan, if: a. He/she, at any time, held an Indian Passport or b. He/She either/or his/her parents or any of his grand parents was a citizen of India by virtue of

Constitution of India or citizenship Act, 1955. c. The person is a spouse of an Indian citizen or a person referred to in Sub-Clause (a) or (b) above.

C. Indian students studying abroad are treated as Non Resident Indians subject to : a. Their stay abroad for more than 182 days in the financial year. b. Their intention to stay outside India for an uncertain period when they go abroad for their

studies.

Various Deposit Schemes available to Non-Resident Indians

1. Non Resident (External) Rupee Account Scheme (popularly known as NRE Accounts) 2. Non Resident (Ordinary) Rupee Account Scheme(popularly known as NRO Accounts) 3. Foreign Currency (Non Resident) Accounts(Bank)(popularly known as FCNR(B) Accounts)

Documents required for opening the Account

1. Prescribed Application Form alongwith an undertaking from the accountholder to inform the Bank, the date of his/her arrival in India for permanent settlement/uncertain period.

2. Photocopy of Passport along with approved VISA, employment Certificate etc. to confirm Non Resident Status.

157

Non Resident (External) Rupee Account Scheme - Currency of Account Indian Rupee - Type of Accounts Savings Account

Current Account

Recurring Deposit Account

Term Deposit Account (minimum period 1 year) - Joint Accounts Permissible

Non Resident External Deposit can be held jointly with a resident close relative. Joint accounts can be in the name of two or more resident/Non Resident individuals who are persons of Indian Nationality or Indian Origin. Account will be opened with operational instructions as ‘Former or Survivor’ where former is Non Resident Indian. Resident close relative can operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of Non Resident/Person of Indian Origin accountholder. Addition or deletion of the names of joint account holders- At the request of all the joint account holders allow the addition or deletion of names of names of joint accountholders, if the circumstances so warranted or allow an individual depositor to add the name of another person as joint accountholder.

- Permitted Credits Proceeds of Inward Remittance in permitted currencies. Personal cheques drawn by the account holder on his foreign currency accounts. Travellers’ Cheque, Demand Drafts payable in permitted currencies, proceeds of Foreign Currency Notes deposited by the accountholders in person during his temporary visit to India. Transfer from Non Resident External account/Foreign Currency Non Resident (Bank) Account Interest on Government Securities and Dividend on units of Mutual Funds, Maturity proceeds of Government Securities, provided they were originally purchased by debit to the accountholders’ Non Resident External/Foreign Currency Non Resident Account or out of remittances received from abroad. Any other credit, if covered under general or special permission granted by Reserve Bank of India. Funds from Non Resident (Ordinary) Account within the overall ceiling of USD 1.00 Mn. Per financial year subject to payment of Tax as applicable from time to time. In terms of Paragraph 3(i) of Schedule 1 of Notification No. FEMA.5/2000 dated 3rd May, 2001.

- Permitted Debts Local disbursements

Remittances outside India Transfer to Non Resident External/Foreign Currency Non Resident accounts of the account tholder or any other person eligible to maintain such account. Investment in shares/securities/commercial papers of an Indian company or for purchase of immovable property in India provided such investment/purchase is covered by the regulation made or the general/special permission granted by Reserve Bank of India.

- Repatriation Allowed of principal along with interest. Rate of Interest As per directions/instructions issued by Reserve Bank of India

From time to time.

158

- Change of Status upon return to India by Non Resident Indian for an uncertain period , his Non Resident External Account should be re-designated as Resident Accounts or the funds held in the Foreign Currency account (FCNR) may be transferred to his Resident Foreign Currency Account.

- Nomination The facility of nomination is available in respect of individual Non Resident Indian accountholder. Nominee can be either a resident in India or a resident outside India.

- Operation by POA holder Operation by power of attorney holder is allowed in terms of Power of Attorney or other authority granted in favour of a resident by the Non Resident account tholder, provided such operations are restricted to withdrawals or local payments. If there is investment clause in Power of Attorney, the Power of attorney holder can make investments in India. Power of Attorney holder may remit funds out of balance in Non Resident External Account to the Non Resident accountholder abroad.

- Restriction on POA holder Resident Power of Attorney holder cannot remit the funds held in the account other than to the Non Resident individual account holders nor make payment by way of gift to a resident or another Non Resident External account holder on behalf of the Non Resident account holder.

- Pre-mature withdrawals Conversion of Non Resident External deposits into Foreign

Currency Non Resident(Bank) deposits and vice versa before maturity shall be subject to penal provisions relating to pre-mature withdrawal applicable from time to time.

In case of pre-mature withdrawal of Non Resident External

Term Deposits for conversion into Resident Foreign

Currency account, the bank shall not levy any penalty for

pre-mature withdrawal.

Pre-mature withdrawal of a term deposit before completion

of the period is allowed, however, Bank shall have the

freedom to determine its own penal interest rate. - Interest payable on the If it is in the name of a deceased individual

depositor or two or Deposit of a deceased more joint depositors when one of the depositor died, interest Shall be paid in the manner mentioned below :

i. At the contracted rate on the maturity of the deposit. ii. In case of death before payment before maturity, the Bank shall

pay interest without charging penal interest. iii. In case of death before maturity, payment of deposit after the

date of maturity, Bank shall pay interest at the contracted rate till the date of maturity and from the date of maturity to the date of payment, the bank shall pay simple interest at the applicable rate operative on the date of maturity for the period for which the deposit remained with the Bank beyond the date of maturity.

iv. In case of death of depositor after the date of maturity, the Bank shall pay interest at Savings Bank Rate operative on the date of maturity from the date of maturity to the date of payment.

NOTE: When the claimants are residents, on maturity, the

deposit shall be treated as domestic rupee deposit and

interest will be paid for the subsequent period at a

rate applicable to the domestic deposit of a similar

maturity.

159

FOREIGN CURRENCY NON RESIDENT (BANKS) SCHEME

Eligibility Non Resident Indians are permitted to open and maintain these

accounts.

Deisgnated Currencies Authorised Dealer Banks in India are now permitted to accept

FCNR(B) deposits in any permitted currency as per FEMA

Regulation. At present, the permitted currencies are US Dollars, GB

Pounds, Euro, Canadian Dollars, Austrailian Dollars, Japanese Yen

and

Type of accounts Only in the form of Term Deposit Receipts with a minimum period

of one year and maximum period of 5 years only.

Joint Accounts Depositor may open joint account with their resident close relative

with operational instructions as ‘Fomer or Survivor’ where former

being NRI (meaning of close relative is defined U/S 6 of

Companies’ Act, 1956. Resident close relative shall be eligible to

operate the accounts as Mandate or Power of Attorney holder in

accordance with extant instructions during the life time of the Non

Resident Indian/Person of Indian Origin account holders.

Addition or Deletion of Names Addition or deletion of names of joint accountholders is allowed

with the consent of all account holders but in no case the amount of

duration of the original deposit undergo a change in any manner.

Permitted Credits Proceeds of remittance in any permitted currency.

Same as in the case of Non Resident External accounts.

Permitted Debits Same as in the case of Non Resident External accounts.

Repatriation Same as in the case of Non Resident External accounts.

NOTE : Remittance of the maturity proceeds of FCNR(B) deposits

to third parties outside India are remitted provided the transaction is

specifically authorized by the accountholder and the Authorised

Dealer Bank is satisfied about the bonafides of the transaction.

Rate of Interest Rate of Interest on funds held in these deposit accounts will be in

accordance with the instructions from Reserve Bank of India.

Manner of payment of Interest on the deposits accepted under the scheme shall be paid on

Interest the basis of 360 days in a year.

Interest maybe credited to a new FCNR(B) account or an

existing/new NRE/NRO accounts in the name of the accountholder

at his option.

NOTE : In respect of FCNR(B) deposit maturing for payment on a

Saturday/Sunday or a holiday or a non-business working day, Banks

shall pay interest at the original contracted rate on the deposit

amount for such period (i.e. date of maturity and actual day of

payment).

Change of Status Upon return to India, NRI may opt to continue the existing deposit

till maturity at the contractual rate of interest. Such deposit shall

however, be treated as Resident Deposits after the date of return of

the account holder in India.

Bank may convert it into Resident Foreign currency (Domestic)

account or Resident Rupee deposit account on maturity.

Nomination Nomination facility is available to individual NRI accountholder and

nominee can either be resident in India or a resident outside India.

Power of Attorney Power of Attorney holders can remit through normal banking

channels, funds out of the balances in FCNR(B) account to the Non

Resident account holder provided specific power for the purpose

have been given to the Power of Attorney holder.

160

Pre-mature withdrawal is allowed and levy of penalty is at Bank’s discretion. No interest is paid

where premature withdrawal is before the completion of the minimum stipulated period.

NOTE : The penalty provision at the time of acceptance of deposits

should be informed to the depositor, then only Bank can levy such

penalty, if arises otherwise.

Conversion of FCNR (B) into Conversion of FCNR (B) deposits into NRE deposits or vice-versa

before

NRE Deposits maturity shall be subject to the penal provisions, relating to

premature withdrawal.

Interest payable on the If payment request is before maturity date, the Bank shall pay

interest

Deposit of deceased at an applicable rate prevailing on the date of placement of deposit

without charging the penalty.

If death is before maturity of the deposit and the amount of deposit

is claimed after the date of maturity, the bank shall pay interest at the

contracted rate till the date of maturity. From the date of maturity to

the date of payment, the Bank shall pay simple interest at the

applicable rate operative on the date of maturity for the period for

which the deposit remained with the Bank beyond the date of

maturity.

But in the case of death of depositor after the date of maturity of the

deposit, the Bank shall pay interest at a rate operative on the date of

maturity in respect of savings deposits held under Resident Foreign

Currency (Domestic) Scheme, for the date of maturity, till the date

of payment.

NOTE: In the case of claimant being residents, the maturity

proceeds may be converted into Indian Rupees on the date of

maturity and interest be paid for the subsequent period at a rate

applicable to the deposit of similar maturity under domestic deposit

scheme.

Restriction No Bank can accept or renew a deposit for a period over five years.

Payment of brokerage, commission or incentives on deposits

mobilized under FCNR (B) Scheme in any form to any individual,

firm, company, association, institution or any other person is

prohibited.

161

NON RESIDENT ORDINARY RUPEE (NRO) ACCOUNT

Eligibility Any person resident outside India (as per Section 2 of FEMA) may

open and maintain Non Resident Ordinary Rupee Account. A Non

Resident Indian is a person resident outside India who is a citizen of

India or is a Person of Indian Origin

Person of Indian Origin is defined in Regulation 2 of FEMA

Notification. Person of Indian Origin is a citizen of any country

other than Bangladesh and Pakistan,If at any point of time,he/she

held Indian Passport or he/she or either of his parents or any of his

grandparents were a citizen of India by virtue of the Constitution of

India or the Citizenship Act, 1955, the person’s spouse of an Indian

citizen.

Scheme Any person resident outside India may open and maintain Non

Resident Ordinary Rupee Account with an Authorised Dealer Bank

for the purpose of putting through bonafide transactions

denominated in Indian Rupees, not involving any violation of the

provisions of FEMA Rules and regulations made thereunder.

Opening of account by individuals/entities of Pakistan nationality

require approval from Reserve Bank of India.

Foreign Nationals of Non Resident Ordinary Savings Bank/Current Deposit accounts can

be

Non-Indian origin on a opened by a foreign nationals of Non-Indian origin visiting India

with

visit to Idnia. Funds remitted from outside India through banking channel or by

sale of foreign currency brought by him to India. At the time of

departure from India balance of these accounts are converted into

desired foreign currency, provided the account has been maintained

for a period not exceeding 6 months and the account has not been

credited with any local funds other than interest accruals thereon. If

the period of account exceeds six months, then for repatriation of

balance, he/she will have to make an application to Reserve Bank of

India for the same.

Currency Indian Rupees

Type of Accounts Savings, Current, Recurring Deposit and Term Deposit.

Joint Account Accounts may be held jointly with residents and or with non

residents.

Permissible Credits Proceeds of remittances from outside India through normal banking

channels received in foreign currency which is freely convertible.

Any Foreign Currency which is freely convertible tendered by the

account holder during his visit to India. Currency Notes above

USD5,000.00 should be supported by Currency Declaration Form

(CDF).

Transfer from Rupee account of Non Resident Indians.

Legitimate dues in India of the account tholder. This includes

current income like rent, dividend, pension, interest etc.

Sale proceeds of assets including immovable property acquired out

of rupee/foreign currency from or by way of legacy/inheritance.

Gift received by NRI/PIO from their close relatives (as per Section 6

of the Companies Act, 1956) by way of crossed cheques, electronic

transfer. It will be treated as eligible credits to NRO account.

162

Permissible Debits All local payments in rupees including payment for imports in India subject to

compliance with the relevant regulations made by Reserve Bank of India.

Remittances outside India of current income like rent, dividend,

pension, interest etc. in India of the account holder subject to

payment of tax as applicable.

Remittance upto USD one million per financial year (April to

March) for bonafide purposes subject to payment of tax as

applicable.

Transfer to NRE account of NRI with the overall ceiling of USD

One Million per financial year subject to payment of tax as

applicable.

Balances in NRO accounts other than debits indicated above are not

eligible for remittance outside India without the approval of RBI.

Remittance of Assets by A citizen of foreign country (except Nepal and Bhutan) or a person

of

Foreign Nationals of Indian origin, who has retired from an employment in India or has

inherited assets from a person or is a widow resident outside India

and has inherited assets of her deceased husband who was an Indian

citizen resident in India may remit an amount not exceeding USD

one million per financial year out of the balance in NRO account.

But for this, he will have to produce documentary evidence in

support of acquisition, inheritance or legacy of assets by the remitter

and a certificate by a Chartered Accountant alongwith print out of

on-line registration in formats prescribed by CBDT (15 CA and

15CB).

Assets acquired in India NRI/PIO may remit sale proceeds of immovable property purchased

by

Out of rupee funds them as a resident or out of rupee funds as NRI/PIO without any

lock in period, subject to the above limit of USD one million per

financial year.

Grant of Loan/overdraft Loan to NRI accountholders and to 3rd

parties maybe granted in

rupees by authorized dealer Bank against security of fixed deposits

subject to following terms and conditions : i. Loan shall be utilized only for meeting borrower’s personal

requirements and/or business purpose and not for carrying on agricultural/plantation activities or real estate business or for re-lending.

Restrictions The remittance facility in respect of sale proceeds of

immovable property is not available to citizen of Pakistan,

Bangladesh, Sri Lanka, China, Afganistan, Iran, Nepal and

Bhutan and

ii. The facility of remittance of sale proceeds of other financial assets

is not available to citizen of Pakistan, Bangladesh, Nepal and

Bhutan.

Change of Status When a person resident in India leaves India for a country (other than

Nepal and Bhutan) for an uncertain period for the reason stated

earlier, his existing account should be designed as Non-Resident

(Ordinary) account.

Foreign Nationals who come to India on employment and become

residents are eligible to open/hold a resident savings bank account

are permitted to re-designate their resident account maintained in

India as NRO account on leaving the country after their employment

to enable them to receive their legitimate dues subject to certain

conditions.

163

From Non Resident to Resident

NRO accounts may be re-designated as resident rupee accounts on

the return of the account holder to India for permanent stay or for

uncertain period except his temporary visit to India.

Nomination Nomination facility is available to individual NRI accountholder.

Nominee can either be a resident in India or a resident outside India.

Operation by POA Authority to allow operation of NRO accounts by POA holders is

delegated to Authorised Dealer. NRI can grant authority to any

resident/NRI to operate his/her NRO account. POA holder can

operate the accounts subject to following restrictions : i. All local payments in Rupee including payment for eligible investments

subject to compliance with relevant regulations made by the RBI. ii. Remittances outside India of current income in India of the NRI

individual accountholders net of applicable taxes. iii. The resident POA holder is not permitted to repatriate outside India

funds held in NRO account other than to the NRI individuals accountholder nor to make payment by way of gift to a resident on behalf of the non resident account holders or transfer funds from the account to another NRO account.

Facilities to a person going abroad for studies.

Persons going abroad for studies are treated as NRIs and are eligible for all the facilities available

toNRIs.

International Credit Cards

Authorised dealer Banks have been permitted to issue their cards to NRIs/PIOs without prior

approval of RBI. Such transaction may be settled by inward remittances or out of balances held in

cardholders FCNR (B)/NRE/NRO accounts.

164

SANDIPANI ONE PAGE MANAGER SERIES FOREIGN EXCHANGE

Remittances (Inward/Outward)/01

In case of Foreign Currency Remittances, it is divided into two parts: 1. INWARD REMITTANCES. 2. OUTWARD REMITTANCES.

As we are well aware that all forex transactions are permitted under the purview of FEMA.

INWARD REMITTANCES

These remittances are received from abroad either in Foreign Currency or Indian Rupee vide TT/

MT/Demand Drafts. Under FEMA, there is no restriction on receipt of foreign currency into India

for legitimate purpose.

Under the process, when any Inward remittance is received, AD Bank will apply TT Buying rate

for conversion of currency provided the cover has been provided to our NOSTRO Account.

If the beneficiary is not having account with the AD then after conversion into Indian Rupee, Pay

Order/Demand Draft/NEFT/RTGS will be issued/done for the beneficiary.

Before conversion in case of Inward remittance especially over USD5,000.00, we must contact

the beneficiary in this regard.

Encashment of Foreign Currency cheques deposited

Regarding this instructions are issued by the Head Office, Foreign Business Department (FBD)

from time to time.

Encashment of Foreign Currency Travellers Cheques

At present Branches are authorized to encash foreign travellers cheques issued by following

institution : 1. Thomas Cook (Master Card) 2. VISA\ 3. American Express 4. Citi Corp.

For foreign tourists, Head Office has put ceiling on encashment of Travellers Cheques

from tourists which is maximum USD500.00 per day per person or its equivalent with exception to

credit to NRI Customers’ accounts with lien marking till Travellers Cheques are realized and

credited to our NOSTRO account.

Procedure for eancashment of Travellers Cheques

i. Paying officer shall scrutinize the Travellers Cheques and the tenderer should be asked to put

his signature in the presence of officer at the appropriate place and after respective

signature should be tallied with original signed over the Travellers Cheques at the time

of issuance/purchase.

ii. Validity of the passport must be checked and it should be recorded on the back of the

payment voucher alongwith the photocopy of the same.

iii. Paying officer must ask for local address (Hotel address alongwith Room No.) and

permanent address and should match and compare with Passport as per Bank’s policy

while passing the payment because the vendors are now a days not provindg warning

bulletin.

Guidelines for encashment of Foreign Currency Notes

This facility is available at select branches only i.e. Authorised Dealer (AD). Currency

Declaration Form (CDF) should be endorsed upon encashment and no encashment should be

entertained without CDF beyond USD5,000.00.

165

OUTWARD REMITTANCES

Remittance of Current Income of Non Resident Indians

Remittances outside India of current income like rent, dividends, pension, interest etc.

earned in India of the accountholder is permissible debit to the Non Resident Ordinary

account. AD Banks may also allow repatriation of current account income as mentioned

above of NRIs who do not maintain an NRO account in India on submission of an

appropriate certificate from the Chartered Accountant that the amount proposed to be

remitted is eligible for remittance and that applicable taxes have been paid/provided for by

the remitter.

Remittance of amounts by a foreign national of Non-Indian origin

A foreign national of Non-Indian Origin who has retired/completion of contract from an

employment in India or who has inherited assets from a person resident in India or who is a

widow of an Indian citizen who was resident in India may remit an amount not exceeding

USD one million per financial year (April to March) subject to the satisfaction of AD Bank

or production of documentary evidence in support of acquisition/inheritance of assets and

undertaking by the remitter and a Certificate by a Chartered Accountant in prescribed

format (15 CA and 15 CB) by Central Board of Direct Taxes (CBDT).

Exception : Not available to citizen of Nepal and Bhutan

Remittance of Salary earned in India

Diplomatic mission, diplomatic personnel and Non-diplomatic staff of foreign embassies who are

the nationals of the concerned foreign countries and hold official passport are allowed to maintain

foreign currency deposit account with AD Banks in India.

A national of a foreign state, resident in India being an employee of a foreign company or a

citizen of India employed by a foreign company outside India in either cases on deputation to the

office/branches/subsidiary/joint venture in India of such foreign company is permitted to open

hold and maintain a foreign currency account with a Bank outside India.

He/she can remit the salary payable to him by credit to his account provided that income tax

chargeable under the Income Tax Act, 1961 is paid on the entire salary as accruals in India.

Repatriation of sale proceeds of residential property purchased by NRIs/PIOs out of foreign

exchange

Repatriation of sale proceeds of residential property purchased by NRIs/PIOs is permitted to the

extent of the amount paid for acquisition of immovable property in foreign exchange received

through banking channels. The facility is restricted to not more than two such properties. The

balance amount (premium/profit) can be remitted under USD one million facility as mentioned

earlier.

AD banks may permit repatriation of amounts representing the refusal of application/earnest

money/purchase consideration made by the home building agencies/seller on account of non-

allotment of flat/plot or cancellation of bookings/deals for purchase of residential/commercial

property together with interest if any (net of Income Tax payable thereon) provided the original

payment was made out of NRE/FCNRB/account of the accountholder or remittances from outside

iNida through normal banking channels and the AD Bank is satisfied about the genuineness of the

transaction. Such funds mayalso be credited to their NRE/FCNRB account of NRI/PIO, if they

desire.

166

AD banks may allow repatriation of sale proceeds of residential accommodation purchased by

NRIs/PIOs out of funds raised by them by way of loan from the AD Banks/housing finance

institutions to the extent of such loans repaid by them out of foreign inward remittances received

through normal banking channels by debit to their NRE/FCNRB accounts.

Foreign Facilities for Students

Students going abroad for studies are treated as NRIs and are eligible for all the facilities available

to NRIs under FEMA.

As NRIs they can receive remittances from India as:

i. Upto USD100,000.00 for studies from close relatives.

ii. Upto USD one million per financial year out of sale proceeds of assets/balances in their

NRO account maintained with an AD Bank.

iii. Amount as per Liberalised Remittance Scheme (LRS) upto USD75,000.00 (earlier it was

USD200,000.00)

Income Tax Clearance

The remittances will be allowed to be made by the AD Banks on production of an undertaking by

the remitter and a certificate from a Chartered Accountant in the formats prescribed by the CBDT.

International Credit Cards

AD Banks have been permitted to issue ICC to NRIs/PIOs without prior approval of RBI. Such

transactions may be settled by inward remittances or out of balance held in the cardholder’s

FCNRB/NRE/NRO accounts.

Release of Foreign Exchange by AD Banks

For various current account transactions, release of foreign exchange to be guided by the Rules

made by the Government of India under Section 5 of the FEMA.

Drawal of foreign exchange also includes use of ICC, International Debit Cards etc.

Sale of Foreign Exchange

AD Banks may release foreign exchange for travel purposes on the basis of declaration given by

the travellers/purchaser regarding the amount of foreign exchange availed of during the financial

year.

In case of Issue of TCs, the travellers should sign the cheques,in the presence of an authorized

officials and the purchasers acknowledgement for receipt of the TCs should be held on record.

Limit of Foreign Currency sale to residents going abroad for tourist purpose

i. Travellers proceeding to Iraq and Libya – USD5000.00 or if equivalent.

ii. Travellers proceedings to Islamic Republic of Iran, Russia Federation another Republics of

Commonwealth of Independent States full exchange may be released in Currency

Notes.

iii. For countries other than above USD3000.00 or its equivalent.

167

Limit of Foreign Exchange sale to residents for purposes other than tourist

i. Medical Treatment

USD100,000.00 or its equivalent and over and above this, the estimate from

doctors/hospital to be obtained.

ii. Cultural Tours

Tours should be sanctioned by HRD Ministry and such amount is to be released as per

sanction terms.

iii. Private Visits

Upto USD10,000.00 in one financial year (April to March) for one or more trips.

Foreign exchange upto USD10,000.00 for private visit can also be released to a person

who is availing foreign exchange for travel outside India for any other purpose like

employment/emigration/studies abroad.

Business/Conference/Training Visit

Upto USD25,000.00 per business visit irrespective of period of stay.

iv. Employment

Upto USD100,000.00 inclusive of processing/assessment fees for overseas job

application.

v. Emigration

Upto USD100,000.00 or amount prescribed by country of emigration.

The principal limit is only to meet the incidental expenses in the country of emigration.

No amount of foreign exchange can be remitted outside India to become eligible or for

earning points or credits for immigration.

vi. Medical Treatment/Maintenance expenses

Upto USD100,000.00 on self-declaration basis without insisting on any estimate from

hospital/doctor in India/abroad.

Foreign exchange exceeding USD100,000.00 can be released provided request is

supported by an estimate from hospital/doctor in India/abroad.

vii. A person who has fallen sick after proceeding abroad may also be released foreign

exchange for medical treatment as stated above.

viii. Foreign exchange upto USD25,000.00 can be released for maintenance expenses of a

patient going abroad for medical treatment/checkup.

ix. If an attendant accompanies the patient going abroad for medical treatment/checkup foreign

exchange upto USD25,000.00 can be released for maintenance expenses of the

attendant.

x. Education Abroad

Upto USD100,000.00 or the estimates from the institution abroad whichever is higher

per academic year.

Student going abroad for studies are treated as NRI and are also eligible for all the

facilities available to NRIs under FEMA. In addition, they can receive remittances

upto US100,000.00 from close relatives in India toward maintenance which may

include remittances towards their studies also.

xi. Remittances for maintenance of Close Relatives abroad

Upto USD100,000.00 per year/per recipient (close relatives are the relatives as defined

in Section 6 of Companies Act, 1956).

168

LIBERALISED REMITTANCE SCHEME

Under Liberalised Remittance Scheme any resident individual can remit upto

USD75,000.00 (earlier this limit was USD200,000) per financial year (April to March) in respect

of Permissible current or capital account transaction or a combination of both as below :

i. Acquiring or holding immovable property or share or debit instruments or any other

assets outside India.

ii. Opening, maintaining and holding foreign currency account with Banks outside India for

carrying out transactions permitted under LRS.

iii. Remittances towards gift to a person residing outside India.

iv. Remittances towards donation to a charitable/educational/religious cultural organization

outside India.

v. Giving Rupee gifts to NRI/PIO close relatives by way of crossed cheque/electronic

transfer to the credit of beneficiary’s NRO account.

vi. Lending money by way of crossed cheques/electronic transfer to NRI/PIO close relatives

to meet the borrower persons or business requirements in India. The loan should be

interest free, should have a maturity of minimum one year and cannot be remitted

outside India. Loan amount cannot be utilized for prohibited purposes. Purchasing

objects of amount subject to the provision of other applicable loans like foreign

trade policy.

vii. Investment in units of Mutual Funds, ventures funds, unrated debt securities,

Promissory Note etc. abroad.

viii. Repayment of a loan availed abroad by an individual while as a non-resident Indian or

return to India as a resident.

Prohibited Purposes

Outward remittance facility under LRS is not available for the following :

ix. Remittances for any purpose specifically prohibited under Schedule I of FEMA like

purchase of lottery tickets, Sweep stakes prescribed Magazines etc., Margin or

Margin calls to Overseas exchange/ overseas country party, trading in foreign

exchange abroad, setting up a company abroad, directly or indirectly to Bhutan,

Nepal, Mauritius and Pakistan.

x. It is mandatory to have PAN No. to make remittances under the Scheme.

xi. Banks are not permitted to extend any kind of credit facilities to individual residents for

facilitating outward remittances under this scheme.

xii. Resident individual is not permitted to open Foreign Currency account in India under

the Scheme. Off shore Banking unit in India is not treated as an overseas branch of

a Bank in India for the purpose of the scheme.

169

DELEGATION OF POWERS

IMPORTANT

**Please refer Br. Cir.106/141 Dated18.12.2012, 107/32 dated 21.05.2013 and 107/163 dated

22.11.2013 for Revision in delegation of powers for Domestic branches (Credit Matters).**

DELEGATION OF POWERS AMT. IN LACS Table II (C)

Facility Designated Authority under Different scales

I II III IV V VI VII ED CMD M COM

Advances againstTDR 5000 5000 5000 5000 10000 10000 10000 FP FP FP

Loan against lost TDR 0.25 1 5 5000 10000 10000 10000 FP FP FP

Loan against Minor TDR 0.25 1 3 5 10000 10000 10000 FP FP FP

Advances against gold /Silver

ornaments and articles

0.50 1 3 200 300 500 500 FP FP FP

Advances against postal cash

certificates, Govt. Securities & LIC

Policies

2.50 5 10 15 10000 10000 10000 FP FP FP

Loan against IVP/KVP/NSC 1 2 3 4 10000 10000 10000 FP FP FP

Loan against Shares/Debenture in

demat form subject to Capital Market

exposure

0.50 3 10 20 20 20 20 20 20 20

Loan to land lord for leasing premises,

Manager’s residence

- - 3 10 15 20 FP FP FP

Partly secured/unsecured TOD, drawing

against uncleared effects,

Purchase/encashment of cheques

(Foreign/Inland) for first class parties

0.25 0.50 4 6 10 25 100 FP FP FP

Fully Secud. BGs upto 10 Yrs. FP FP FP FP FP FP FP FP FP FP

Partially secud. BGs upto 3 Yrs. 2 10 25 50 100 300 500 2250 3000 FP

Educational Loan 1 2 3 5 FP FP FP FP FP FP

Personal Loan(Clean) 0.25 0.5 0.75 1.50 2.00 2.00 2.00 FP FP FP

Personal Loan (Secured) 0.75 1.5 2.50 10 10 10 10 FP FP FP

Mortgage Loan 3 12 25 50 80 100 100 100 100 FP

Housing Loan 3 10 20 35 75 150 300 FP FP FP

Star Auto Fin. 1 5 8 25 50 75 100 FP FP FP

Star Holiday(Clean) 0.25 0.5 1 2 2 2 2 2 2 FP

Star Holiday (par.Secured 0.50 1 2 4 5 5 5 5 5 FP

Star Holiday ( fully Secured) 2 4 6 10 10 10 10 10 10 FP

Staff Loans Amt. in lacs TABLE II ( D ) Salary Advance for Festival to Staff FP FP FP FP FP FP FP FP FP FP

Vehicle loan (2wheelers)/ consumer

loan

FP FP FP FP FP FP FP FP FP FP

Vehicle loan (4 wheeler)/ flood

loan/loan for deposit for booking 4

wheelers

-- -- -- --- -- FP FP FP FP FP

Housing Loan/Review of Housing loan -- --- FP FP FP FP FP

Loan against PF -- -- -- -- -- FP FP FP FP FP

Loan/overdraft against

shares/debentures singly or jointly in

the staff member’s name under “Stock

Cash”

5.00 5.00 5.00 5.00 5.00 5.00

Clean loan to the staff as per approved

scheme -- -- FP FP FP FP FP

Loan for repair of staff vehicle -- 0.25 0.25 0.25 0.25 0.25

Loan for purchasing

computer/printer/software programme

as approved by CSD

-- -- FP FP FP FP FP

(Secured is inclusive of delegated powers under unsecured/partly secured i.e Max per borrower)

The sanctions under TOL/Adhoc Limit (25% of Max working capital limits) by all delegates upto the level

of GM are excluded from per borrower/Group cap) BC 105/165 dated 18.01.2012)

SM V (AGM) posted in CPC will exercise addl delegated power (PSU/other listed 150% and others 200%

of the normal delegated powers)(The delegation is applicable only to borrower rated under MS model or

Mid Segment Model).

170

Relaxation in Financial Parameters :- Parameter Prescribed as per

credit policy

Maximum Relaxation (Revised)

Debt Equity Ratio/Debt Quasi Equity Ratio

(TOL/TNW)

4 (Maximum) 5 for all

Current Ratio 1 (Minimum) 0.7 for sugar and seasonal industries

0.8 for all others

DSCR 1.25 (Minimum) 1.1 for all cases

ISCR 1.50 (Minimum) 1.25 for all cases

Status Review of Account (BC 106/160 Dt.03.01.2013) Proposals to be eligible for “Status Review’ has to fulfill the following criteria:-

Proposals which are due for review but not exceeded 15 months from the date of earlier sanction;

Proposals need to be reviewed at the same level or reduction/same terms;

Asset code 11;

Compliance of all sanction terms including creation of security and CPA closure;

Satisfactory conduct of account with no overdues; and

Previous review was not a STATUS reviews;

Status review will have a maximum validity of 3 months from the date of sanction and can be

considered by-

Upto sanctions of ZLCC – Respective sanctioning authority under whom the sanction falls.

Sanction beyond ZLCC - By ZLCC

Proposals of LCBs - By chief Incumbent (Branch Head) of LCBs.

Discretionary Power in respect of Expenditure and Others: Amt. in lac

Facility Designated Authority under Different scale

I II III IV V VI VII ED CMD Mcom

A. Capital Expenditure: 1.Purchase/Acquisition/Major Alteration

of Immovable Assets owned by Bank

Nil Nil Nil Nil 10 20 50 200 500 FP

Construction of Safe Deposit

Valut/Currency Chest and Purchase of

Safe Deposit lockers/Currency chest

bins

Nil Nil Nil N il FP FP FP FP FP FP

Furniture and Fixture/Office machines and

other Moveable items

0.1 0.25 0.5 1.5 7.5 10 25 100 200 FP

Purchase and upgradation of computers

/communication Equipts. And related

items inclusive of post warranty AMC

upto 3 yrs.

Nil Nil Nil 8.0 15 30 100 200 300 FP

171

B. Revenue Expenditure Amt. in lac

Facility Designated Authority under Different scale

I II III IV V VI VII ED CMD Mcom

1. Approval of Leasing of

Office /residential premises

on monthly rent basis.

1 2 3 6 10 FP

2. Repairs /Minor Additions

/Annual Maintenance of Bank

Assets

0.05 0.10 0.25 1 2 5 10 25 FP FP

3. Annual Maintenance/ Service

Charges for Office

Equipments/Communication

equipments and related

items.

0.05 0.10 0.25 0.50 FP FP FP FP FP FP

4. Stationery and Printing

including Computer

Consumables

0.02 0.05 0.15 1.50 5.00 10.00 25.00 FP FP FP

5. Law Charges excluding Court

fees

0.05 0.10 0.25 0.50 1.00 3.00 5.00 25.00 FP FP

6. Architect”s Fees and

Consultant’s fees 0.25 0.50 1.00 5.00 15.00 FP FP

7. Books and Periodicals (per

annum)

0.10 0.20 0.50 1.50 FP FP FP FP FP FP

8. Halting Allowances Upto Upto Upto Upto Upto FP FP FP FP FP

30 30 30 90 180 days days days days days

9.Medical Expenses

1. of Hospitalisation expenses

of employees (workmen and

family members)

2. Officer Staff (Self and

Exgratia payment for family)

0.01

0.02

0.02

0.04

0.10

0.20

0.50

0.50

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

10.Advertisement

a) at HO level without reference

to Screening committe

-- -- --- -- --- ---

1.00 -- -- --

b)a Screening Committee of 5

GMs

5.00 10.00 FP FP

11. Donations 0.50 1.00 10.00 FP

12. Purchase of Ready Soft

ware/ Software

Development/AMC upto 1 yr.

0.25 1.00 3.00 15.00 100.00 FP FP

13. Any other item not specified

above in gen.

0.01 0.02 0.03 0.10 0.50 1.00 2.00 5.00 10.00 FP

Rev. Exp. Contd

Designated Authority under Different scale

Facility I II III IV V VI VII ED CMD Mcom

14. Write off of Exchange 0.20 0.50 1.00 2.00 5.00 10.00 FP

15. Write off /Waiver Other 2.50 3.00 5.00 10.00 15.00 FP

than credit matter 16. Gratuity Payment Award

Staff FP FP FP FP FP FP

Offi. Staff Upto Scale IV FP FP FP FP FP FP

Offi. of Scale V and above FP FP FP FP

17. To refund or issue duplicate DD or Pay slip in lieu of original lost agains indemnity a) with Security FP FP FP FP FP FP FP FP FP FP

B) without Security 0.50 1.00 4.00 10.0 FP FP FP FP FP FP

18.To revalidate DD/Pay 0.15 0.25 0.50 1.00 FP FP FP FP FP FP

Slip at the request of specified Type of Payees

172

19. To renew/repay/ issue

Duplicate TDR of lost receipts against indemnity before 0.50 1.00 3.00 10.0 25.00 FP FP FP FP FP

maturity 20. To reinvest/repay the

amount of Lost TDR

against indemnity after 1.00 2.00 5.00 10.0 FP FP FP FP FP FP

maturity 21. To repay the balance 0.25 1.00 2.00 5.00 10.00 20.00 FP FP FP FP

in the deceased a/c where legal representation has not been obtained 22. To repay TDR before FP FP FP FP FP FP FP FP[ FP FP

maturity for investment of entire amount in the Bank 23. To repay the balance 0.25 1.00 2.00 5.00 10.00 20.00 FP FP FP FP

in TD account of deceased cust. before maturity to the survivors in the case of jt. account or to the legal heirs in case of single account against indemnity 24. Solvency Certificate 2.00 10.00 25.00 FP FP FP FP FP FP FP

Br.Cir.99/02dated06.04.2005,Br.Cir.99/119dated25.10.2005,Br.Cir.99/162dated30.01.2006,

Br.Cir.101/187dated23.01.2008.Br.Cir.No.104/134dated25.01.2011,105/10 dt-11.04.2011;

Br cir 105/20dated29.04.2011;105/165dated18.01.2012.)

173

Retail Loan Delegation: Delinking of Retail loans from Group Concept. All Retail loans except

Star Mortgage Loans irrespective of the limit and Star Home Loan more than

Rs. 5.00 crore are delinked from the “Group Concept” for Delegation Purpose. Maximum

aggregate Retail Exposure to one Single Individual should not exceed the threshold limit of Rs.

5.00 crores.

Ref: Br. Cir. No. 105/36 dated 03.06.2011

Star Home Loan Max. Ceiling Limit Rs.500 lacs. Amt. in lacs Scale I II III IV V VI VII ED &

above

At Retail Business Centre which are

already revamped/New RBC

-- -- -- 100

Only for

RBC Head

150

Only for

RBC Head

At Retail Hubs which are not

revamped as RBCs

3 10 20 50 75 -- -- FP @

At Branches not covered under Retail

Hubs/RBCs

3 10 20 50 75 -- -- FP @

At Zonal Office/NBG NIL NIL NIL 50 200 300 500 FP @

@ for limit Exceeding Scheme ceiling.

Star Auto Fin : Amt in lacs Scale I II III IV V VI VII ED and

above

1.00 5.00 8.00 25.00 50.00 75.00 100.00 FP

Scheme Ceiling Rs. 100 lacs

Star IPO loan : Amt in lacs Scale I II III IV V VI VII ED and

above

NIL NIL NIL 10.00 10.00 10.00 10.00 10.00

Scheme Ceiling Rs. 10 lacs

Star Mortgage Loan (for New Sanction) : Amt in lacs Scale I II III IV V at Branch

IV & V at RBC

SZLCC ZLCC

BC 106/147 Dt.24.12.2012 NIL NIL NIL NIL 50

100

ZM

100-200

Star Mortgage Loan (For Review: Review on same terms in respect of well conducted accounts

only (All mortgage loans/Mortgage OD Reducible/OD Non reducible –under revised scheme and

under scheme prior to 14.03.2007 are brought on equal footing for review purpose : Amt in lacs Scale I II III IV V VI GM

NBG & above

10 20 40 50 100 100 FP @

@for limit exceeding scheme ceiling of Rs.100 lacs

Star Personal Loans Scale I II III IV V VI VII ED and above

Clean / Unsecured 0.25 0.50 0.75 1.50 2.00 2.00 2.00 FP

Secured 0.75 1.50 2.50 10.00 10.00 10.00 10.00 FP

Clean OD NIL NIL NIL 1.00 1.00 1.00 1.00 FP

Star Pensioner Loan Scheme; BC

107/122 Dated 01.10.2013

I II III IV V ZLCC HLCC

Clean/Secured 0.75 1.50 2.50 5.00 5.00 10.00 FP

Clean/Unsecured Scheme Ceiling : Rs.2.00 lac. Secured Scheme ceiling Rs.10.00 lacs

Clean/Unsecured Scheme for financing clean/unsecured loans to a group of permanent /Confirmed employees of

Govt./PSUs/PSEs/Reputed organization etc., where salary deduction of EMI is available or proper mechanism for

deduction of EMI from the employee borrower’s salary and direct remittance to the bank by the employer is in place :

Rs.5.00 lacs. Zonal Manager has delegated powers to sanction individual clean/unsecured loans upto Rs.5.00 lacs.

Star Education Loans Scale I II III IV V VI VII ED and

above

1.00 4.00 7.50 10.00 20.00 20.00 20.00 FP @

@ For limit exceeding Scheme ceiling

Scheme ceiling Rs. 10.00 lacs for studies in India and Rs.20.00 lacs for studies abroad.

174

SANDIPANI ONE PAGE MANAGER SERIES Service Charges/01 (30.11.2013)

SERVICE CHARGES

Applicable charges for Individual, Individual (Rural) and Non Individuals under many categories

and concession in service charges have been offered to these categories. Concessions in service

charges now being granted to special categories of customers like staff, ex-staff, defence

personnel, Gold and Diamond customers, etc as per various Deposit Schemes. There has been rise

in Service Tax from 10.30% to 12.36% w.e.f 01.04.2012. Bank’s INTER-SOL transactions have

been exempted from Service charges.

Remittances up to Rs. 1 lakh through NEFT have been made Free of charge to promote and

popularize electronic mode of payments/funds transfer amongst the customers and general public.

Concessions and facilities offered under various deposit schemes as described in Branch Circular

Nos. 103/100, 103/101, 104/69, 104/71, 104/72 & 104/149 dt. 03.09.2009,04.09.2009, 06.09.2010,

08.09.2010, 08.09.2010 & 21.02.2011 will continue. The revised charges effective from

05.08.2013 as per BC 107/63 Dated 04.07.2013 Issue of MICR Cheque – SB Rs. 3.00 per cheque leaf and 50 leaves free in a year Issue of MICR Cheque – CD/CC/ODA Rs. 3.00 per cheque leaf Issue of Pass Book/Balance certificate Issue of Pass Book - Free

Statement – Once in a month - Free Daily/Weekly/Fortnightly : One Statement Free Subsequent Statements – Rs.100/- for 40 entries or part

thereof Issue of Balance Certificate – Rs. 100/-

Duplicate Pass Book/Statement With latest balance – For Non individual – Rs. 75/- With latest balance – For Individual – Rs. 60/-

Stop Payment Instructions – per instrument For Non Individual – Rs. 150/- & Max Rs.500/- per

occasion For Individual – Rs. 100/- & Max Rs.300/- per occasion.

A/c closure before 12 months (A/c transfer not

included) Rs. 200/-

Cheque Return Charges – drawn on us Local Cheques Upto Rs.10000.00 Rs. 25/-

Rs.10000.00 to Rs.1.lac Rs. 100/-

Rs. 100001.00&above Rs.150/-

Outstations

Cheques 50% prescribed

collection charges Min Rs. 150/-

Cheques/Biils deposited – return unpaid Local &

Outstations Same as above

Signature verification Non Individuals Rs. 70/- Individuals – Non Rural Rs. 60/- Individuals – Rural Rs. 40/-

No Dues Certificate Agricultural Borrower FREE (as per RBI)

Others Rs. 150/- per

certificate

REMITTANCE FACILITY

Issue of Demand Drafts

For Students, Upto Rs.1000/- , FREE

Amount Non-

individual Individuals

Non Rural Rural DD PSI DD PSI DD PSI

UP TO

RS.10,000/- 50 50 40 40 30 30

175

>10,000/- to

50,000/- 200 150 175 140 150 125

>50,000 to 1

lakh DD Rs. 4/- per Rs. 1,000/- Min

Rs.225/- PSI Rs. 4/- per Rs. 1,000/- Min

Rs.200/- >1 Lakh DD Rs.3.50/- per Rs. 1,000/- Min

Rs.400/- Max Rs.30,000/- PSI Rs.3.50/- per Rs. 1,000/- Min

Rs.350/- Max Rs.10,000/-

Issue of Demand Drafts/PSI against CASH Amount Non-

individual Individuals

Non Rural Rural DD PSI DD PSI DD PSI

UP TO

RS.10,000/

-

75 75 60 60 45 45

>10,000/-

to 50,000/- 300 300 265 300 225 300

Revalidation/Cancellation of Drafts/Payslip Upto Rs.100/; Rs.20/-, Rs.100/- to 500/- ; Rs.40/- Above Rs. 500/- ; Rs.100/-

Issuance of Duplicate Drafts/Payslip Non Individuals Individuals Non Rural Rural

Drafts Rs. 100/- Rs. 100/- Rs. 100/- PSI Rs. 100/- Rs. 75/- Rs. 75/-

Collection of Cheques Rs.500/- to 5,000/- 25/- per inst >Rs.5,000/- to 10,000/- 50/- per inst >Rs.10,000/- to 1 Lakh 100/- per inst >Rs.1 Lakh 150/- per inst

Collection of Bills Up to Rs.10,000/ 200/- per inst Plus out

of

pocket

expenses

per bill

>Rs.10,000/- to 1 Lakh 15/- per ‘000 Min

200/- >Rs. 1 Lakh 12/- per ‘000 Min

1,500/- Max

40,000/- DD/Outstation Cheque Purchase Rs.500/- to 5,000/- 25/- per inst #

>Rs.5,000/- to 10,000/- 50/- per inst # >Rs.10,000/- to 1 Lakh 100/- per inst # >Rs.1 Lakh 150/- per inst # # Plus Interest as applicable for clean OD will be charged

for the days bank is out of funds Presentation of Usance Bills Rs. 200/- Postal Charges Ordinary Post ->. 15/- Registered/Courier (Inland) -> 35/- Inoperataive Account (BC 107/63 dt:07.07.13) Not Applicable Charges for excess debit entries in SB Up to 10 Customer induced debit entries a month : Free

Beyond 10 Debit entries : 10/- per entry (Excluding

ATM/Internet) Safe Custody Charges Account Opening Charges : Rs 400/-

a.Script (each) 50/- per script Min 200/- p.a. b. Sealed cover (each) 200/- p.a per cover c.Bank’s own Deposit Receipt FREE d. Certificate of Holding 200/- per sheet issued in duplicate/ additional 100/- per copy

Collection of interest/dividend 2.75% Min 50/- per warrant For warrant up to Rs. 50/- charges are discretionary

Charges for transfer of shares Rs. 100/- per transfer deed Purchase/sale of shares/securities other than

under POA executed in favour of the Bank 2.75% Min Rs.250/- per transaction

Handling charges for purchase/sale of

shares/securities under POA executed in favour

of Bank

2.75% Min Rs.250/- per transaction

176

Redemption of Securities 2.75% Min Rs.250/- per transaction Safe Deposit of Articles Smaller box

10X10X10cms 800/- p.a. per box

Smaller box

20X20X20cms 1,500/- p.a. per box

Smaller box

30X30X30cms 2,400/- p.a. per box

Bigger boxes @80 ps per cu cm Min

5,400/- p.a. Min 50% charges to be recovered if kept for quarter or

part thereof Solvency Certificate Individual Non-Individuals

Up to 1 Lakh Rs. 200/- 250/- per Lakh or part

thereof Min 500/- &

Max 5,000/- >1 Lakh to 5

Lakh Rs. 500/-

>5 Lakh Rs.1,000/- Payment of Deposit receipts to another bank Charges applicable for remittances (DD/PSI) + Postages Ledger Folio Charges Rs. 65/- per folio Free folio allotted per year for average balance Up to Rs. 25,000/- Nil >25,000/- to 50,000/- 3 >50,000/- to 1 lacs 5 >1 Lakh to 2 Lakh 10 >2 lakh All No folio charges for SB & RRB A/c INTER-SOL Charges Free (ref Cir Letter No:2012-12/75 dt:02.07.2012) Inter Sol Cash Deposit (HOBC No:105/193 dt:17.03.2012) No Charges

Inter Bank Cash Deposit (HOBC No:105/193 dt:17.03.2012) NEFT

Charges Issue of Demand Draft for Rs.20,000/- and above invariably with account payee crossing only (HOBC

105/144 dt:22.11.2011) Cash Handling Charges for CA/CC Deposit (Other

than Personal Banking Segment, TDR,RD and Loan

customers)

SB a/c Packet Nil

CC/ OD/ CD

Up to 10 Free per Day

>10

packets 10/- per pkt (Min 100/-

Max 10,000/- per occasion) Charges for deletion of deceased person’s name,

change in name, etc. in respect of corporate a/cs Rs. 200/- per Company

Photo Attestation Charges Rs. 100/- per occasion Record copy of the cheque Up to 3 months old entries Rs. 40/-

Older entries subject to availability of

the instrument 100/- per

copy Interest Certificate Once : Free; Additional copies : Rs. 100/- per copy Enquiries relating to more than 12 months old

records Rs. 200/- per item, subject to availability

Minimum Balance Charges CD

A/cs Non Individuals/Individuals Rs. 300/- per

quarter SB Cheque Book Rs.30/- p.m

Without cheque book Rs.15/- p.m Pens

ione

rs

Cheque Book Rs.10/- p.m Without cheque book Rs. 5/- p.m

Upcountry Branches for collection Share charges in ratio of 50:50, postage will be

actual RTGS/NEFT charges (Discretion to customers for selection

between RTGS and NEFT – Cir Letter No:2011-12/128 dt.

25.10.2011)

RTGS + Serv Tax NEFT +

Serv Tax*

Time Varying Tarrif (Time of RTGS at the

Branch) Upto

Rs.1,00,000/- N A Free

8.00 hrs 11.00hrs Nil Above Rs.

1,00,000/-

upto Rs.

2,00,000/-

NA Rs. 15/-*

177

After 11.00 hrs 14.30 hrs Rs.1/- Above Rs. 2

lacs & upto

Rs. 5 lacs

Rs. 25/-+ applicable

time varying tarrif sub

to Max Rs.30/-*

Rs. 25/-*

After 14.30 hrs 16.30 hrs Rs.5/- Above Rs. 5

lacs Rs. 50/-+ applicable

time varying tariff sub

to Max Rs.55/-*

Rs. 25/-*

After 16.30 hrs Rs.10/

-

ECS – Credit Clearing – per entry/item Sponsor Bank Rs. 5.50/-; Min

Rs.2,500/- ECS – Debit Clearing – per entry/item Sponsor Bank Rs. 4/-; Min

Rs.2,500/- ECS Returned 100/- per instrument

Service Charges related to BU – Rural/ revised Charges for Agriculture Advances Processing Charges Rural Branches Other Branches Upto Rs. 50,000/- Nil Nil Above Rs. 50,000/- upto Rs. 2 lakh Rs. 200/- Rs. 250/- Above Rs. 2 lakhs upto Rs. 10 lakh Rs. 150/- per lakh Rs. 200/- per

lakh Above Rs. 10 lakhs upto Rs. 1 Crore Rs. 175/- per lakh Rs. 250/- per

lakh Above Rs. 1 Crore Rs. 200/- per lakh

(Max Rs. 2 lakh) Rs. 250/- per

lakh (Max Rs. 3

lakh) Charges upon review of Term Loan Rural Other Centre Upto Rs. 50,000/- Nil Nil Above Rs. 50,000/- upto Rs. 2 lakh Rs. 300/- Rs. 300/- Above Rs. 2 lakhs upto Rs. 10 lakh Rs. 750/- Rs. 750/- Above Rs. 10 lakhs upto Rs. 1 Crore Rs. 75/- per lakh Rs. 75/- per

lakh Above Rs. 1 Crore Rs. 100/- per lakh

(Max Rs. 1 lakh) Rs. 100/- per

lakh (Max Rs. 1

lakh)

Documentation Charges Rural Others Upto Rs. 50,000/- Nil Nil Above Rs. 50,000/- upto Rs. 2 lakh Rs. 500/- Rs. 500/- Above Rs. 2 lakhs upto Rs. 10 lakh Rs. 2000/- Rs. 2000/- Above Rs. 10 lakhs upto Rs. 50lakhs Rs. 3750/- Rs. 3750/- Above Rs. 50 lakhs upto Rs. 1 Crores Rs. 5000/- Rs. 5000/- Above Rs. 1 Crore upto Rs. 5 Crores Rs. 7500/- Rs. 7500/- Above Rs. 5 Crores Rs. 20000/- Rs. 20000/-

Inspection Charges per year Rural Others Upto Rs. 50,000/- Nil Nil Above Rs. 50,000/- upto Rs. 2 lakh Rs. 200/- Rs. 200/- Above Rs. 2 lakhs upto Rs. 10 lakh Rs.500/- Rs.500/- Above Rs. 10 lakhs upto Rs. 1 Crore Rs.1000/- Rs.1000/- Above Rs. 1 Crore upto Rs. 5 Crores Rs.2000/- Rs.2000/- Above Rs. 5 Crores Rs. 3000/- Rs. 3000/- Note – For sanction limit above Rs. 10 lakh, actual expenses to be recovered if they are higher than the

amount mentioned for each slab as above

Mortgage Charges (Equitable Mortgage) Rural Others Upto Rs. 5 lakh Nil Nil Above Rs. 5 lakh upto Rs.10 lakh Rs. 5,000/- Rs. 5,000/- Above Rs. 10 lakhs less than Rs. 1 Crore Rs.10,000/- Rs.10,000/- Rs. 1 Crore and above Rs.15,000/- Rs.15,000/-

178

Service Charges related to SME Advances (Rs.)

Range of Limits Processing Charges (Including for New Term Loans)

Documentation

Charges Rural,SU,

Urban& Metro

Inspection

Charges per visit Rural & SU Urban & Metro

From To Chs

per

lakh

Max

Chs (Rs)

Chs per

lakh Max Chs

(Rs) Max Charges

(Rs) Rural

& SU Urban

&

Metro 0 50000 Nil 155/- Nil Nil 105/-

50000 2 lacs 130/- 155/- 310/- 105/- 155/-

2 lacs 10 lacs 130/- 815/- 155/- 920/- 1,530/- 155/- 310/- 10 lacs 25 lacs 155/- 2,750/- 205/- 4,075/- 2,250/- 310/- 510/- 25 lacs 100lac

s 155/- 7,640/- 205/- 9,170/- 3,670/- 410/- 615/-

100lac

s 500lac

s 205/- 75400/- 205/- 90,170/- 5,600/- 615/- 1,230/-

Above 500 lacs 205/- 91700/- 205/- 153,000/- 15,300/- 1,230/- 2,550/- Review of Term

Loans Rs.65/- per lac

Max

Rs.71,500/-

Rs.80/- per lac Max

Rs.71,500/-

TEVS Fee to be charged at the rates as circulated by Technical Appraisal Department, HO from

time to time. Latest Circular HOBC:102/119 dt:19/09/08 & 105/79 dt:27.07.2011 Mortgage Fee

>25 lakhs upto 50 lakhs 4,100/- >50 lakhs 8,200/- Charges for amendments/modification of sanction terms

Upto Rs. 1 Crore Nil Above Rs. 5 Crore upto Rs.50 Crores 30,600/- Above Rs. 1 Crore upto Rs.5

Crores 10,200/- Above Rs. 50 Crores 51,000/-

N.B. – Service Charges in respect of “Sankalp SME” charges as applicable to Mid Corporate

and Large Corporate a/cs will be applicable which is exclusive of Service Tax Service Charges on Retail Banking Advances

Scheme Charges Star Home Loan

Processing

Charges BC 106/145

Dated

24.12.2012

For Individuals- 0.25% of Loan amount Min. Rs.1000/- Max Rs.20000/-

Partnership Firms & Corporate

Borrowers Double that is applicable to Individualss

Rural Areas( loans availed

from Rural Br) 75% that applicable to individuals

Pre payment

Charges Since abolished w.e.f 16.12.2011 (Ref :HOBC :105/152 dt:19.12.2011) Floating

Rate -No Charges

Fixed Rate –Take over of A/c by other Bank/FI 0.65%

p.a Max 2.25% of the o/s loan amount

Conversion

Charges Switch over from o/s balance for the remainign

maturity of loan i Fixed to Floating ROI 0.25% p.a. I

i Floating to Fixed ROI 0.40% p.a.

For I & II above : Max Charge 2.10% of o/s balance

Star Mortgage

Loan Processing

Charges Loan One time @ 1% of loan Sanctioned amount Min

Rs. 5,000/- Max Rs.50,000/- OD ( Not

Reducible) 0.50% of the sanctioned Reviewed limit Min

Rs.5,000/- Max Rs.30,000/- on annual basis OD (Reducible/ ) a) 0.50% of the S/L min Rs. 5,000/- and Max

Rs. 30,000/- on annual basis

179

b) 0.25% of the Reviewed limit Min 2,500/- and

15,000/- for subsequent years

Rural Areas i.e loans availed from Rural branches- 75% of normal

applicable charges Mortgage

Fee General

Limits upto Rs. 10 lacs Rs. 5,000/- Limits exceeding Rs.10 lacs upto

Rs. 1 crore Rs. 10,000/-

No Mortgage Loans over Rs.100 lacs BOI Loan against

Property (BC

No:106/28)

Processing

Charges Loan (Repayable

by Installment) One time @ 1% of loan Sanctioned amount Min

Rs. 10,000/- Max Rs.50,000/- OD ( Not

Reducible) 0.50% of the sanctioned Reviewed limit Min

Rs.10,000/- Max Rs.30,000/- on annual basis OD (Reducible/ ) c) 0.50% of the S/L min Rs. 10,000/- and Max

Rs. 30,000/- on annual basis

d) 0.25% of the Reviewed limit Min 5,000/-

and 15,000/- for subsequent years

Mortgage

Fee General

Limits upto Rs. 10 lacs Rs. 5,000/- Limits exceeding Rs.10 lacs upto

Rs. 1 crore Rs. 10,000/-

Over 1 Crore and up to 2 Crore Rs. 20,000/- Star Personal

Loan (BC No:106/3)

Processing

Charges One time @ 2% of loan amount Min Rs.1,000/- Max Rs.10,000/-

Star Pensioner

Loan (BC No:106/4)

Processing

Charges Pensioners One time @ 2% of loan amount Min Rs.500/- Max

Rs.2,000/- No processing charges for Senior Citizens (60 years and above)

Star Holiday

Loan (BC No:106/11)

Processing

Charges One time @ 2% of loan amount Min Rs.1,000/- Max Rs.10,000/-

Pensioners One time @ 2% of loan amount Min Rs.500/- Max

Rs.2,000/- No processing charges for Senior Citizens (60 years and above)

Star IPO Processing

Charges 1% of limit sanctioned Min Rs.1,000/- Max Rs.5,000/- per account to

be recovered at the time of sanction of limit and annual review Star Vehicle

Loan (BC No:106/146

Dated

24.12.2012)

Processing

Charges For Individuals-

1.00% of Loan amount Max.Rs.10000/-

Partnership Firms & Corporate

Borrowers Double that is applicable to

Individuals Rural Areas i.e loans availed

from Rural branches 75% that applicable to

individuals Senior Citizens/Retired Employees of the Bank/Pensioners drawing

pension from our Bank – No processing Charges

Star Education

Loan (BC No:106/29)

Processing

Charges No processing Charges. However, if there is change of institution

wither in domestic studies or in foreign studies due to any reason, a

processing fee of Rs. 250/- (Domestic Studies) & Rs. 500/- (Studies

Abroad) is permitted to be leviable. In respect of loans for foreign

study, letter of sanctioning may be issued for obtaining VISA, up on

recovery of Processing charges of Rs.100/-. However, this can be

returned if the actual loan availed One time charges for any Deviations from the Scheme norms including

approval of courses outside scheme Upto Rs. 4 lacs Rs. 500/- Over Rs.4 lacs upto Rs.7.50 lacs Rs.1,500/- Over Rs.7.50 lacs upto Rs.20 lacs Rs.3,000/-

Special Note:- i) Waiver of 50% proposal processing charges on all retail loans to the account holders of Jai jawan

180

Salary Plus and BOI Salary Plus Schemes as per HOBC 105/28 dated 10.05.2011

ii) Processing charges waived for staff members as per HOBC 98/56 dated 29.06.2004

iii) No inspection charges on Retail Loans scheme. However, actual out of pocket expenses to be

recovered from the borrower.

Service Charges related to Large/Mid Advances Processing Charges – Working Capital (for New/review on Sanctioned Limit)

For WCFBL @Rs. 300/- per lac sub to Max of Rs. 10.00

lacs For NFBL @50% of above sub to a Max of Rs. 5.00 lacs Aggregate WC FBL/NFBL – overall Max cap of Rs.

15.00 lacs Processing Charges – Term Loan (For

New/Additional limits) 1.00% with a max cap of Rs. 100.00 lacs for project

related loans and Medium/Loang Term Loans

For Short Term and Demand Loans whose maturity is

not exceeding one year and Corporate Loans upto 3 years Loan up to Rs. 25 Cr @1.00% Max Rs. 6.00

lacs More than Rs. 25 Cr Rs 12.00 lacs

Annual Review of Term Loans including those

above Rs. 5 Cr Rs. 75/- per lakh or part thereof Max Rs.1,50,000/- (Chs

also applicable for Short term and Corporate Loan) Charges for Amendments/Modifications of

Sanction Terms Up to Rs. 50 Cr Rs. 75,000/- Above Rs. 50 Cr Rs.1,50,000/-

Lead Bank Charges ( to be charged on slab wise

basis on assessed WCFBL & NFBL for the

consortium

Upto Rs. 100 Crores @0.25% subject to a Min Rs. 5.00 lacs and Max Rs. 20.00 lacs

Above Rs. 100 Crores @0.25% subject to a Max Rs. 30.00 lacs

Note ! Lead Bank Charges will be recovered for Term

Loan also in addition to Processing Charges at flat rate as

under Up to Rs. 100 Crores Rs. 5.00 lacs Above Rs. 100 Crores Rs.10.00 lacs Lead bank Charges for Term Loan shall be recoverable at

the time of original assessment and not on subsequent

annual review pertaining to same Term Loan. In case of

appraisal of Term Loan for sanction of additional term

Loan/restructuring of Term Loan, Lead Bank Charges to

be recovered Documentation Charges Rs. 20,000/- flat rate Inspection Charges per visit Rs. 5,000/-(per visit) + actual expenses Charges for supplying copies of documents Nil Charges for pledge godowns for each block of

10 transactions (above 100) or part thereof Rs. 150/-

Prepayment Charges on Term Loan 0.50% p.a applicable on amount prepaid for the residual

period of the loan on simple interest basis Guarantees – Inland (for all Centres)- Commission Rates Exclusive of Service Tax

In lieu of Earnest Money Deposit/ Tender

Deposits/ Security Deposit/ 0.75% per quarter or part thereof

To obtain Advance payments (generally

Exports) 0.75% per quarter or part thereof

To obtain mobilization Advance ( generally Domestic)

0.75% per quarter or part thereof

Towards Direct and Indirect Taxes to Govt., in

respect of specific txn 0.75% per quarter or part thereof

For Direct and Indirect Taxes disputes with Tax

Authorities 0.75% per quarter or part thereof

For Payment for Supplies/Services

made/rendered 0.75% per quarter or part thereof

For Binding/Tendering for Project Contracts 0.50% per quarter or part thereof For Performance in terms of any agreed 0.50% per quarter or part thereof

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Contract For Securing Retention Amount 0.75% per quarter or part thereof In Favour of Customs/Excise/Tax Authorities

towards Tax/Duties Payment etc 0.75% per quarter or part thereof

Favouring “COURTS” for release of Amounts 0.75% per quarter or part thereof For Guaranteeing Loan repayments 0.75% per quarter or part thereof Guarantees on behalf of NSE/BSE/ NCDEX

Members ( Commission rate with 40% cash

margin)

Rs. 180/- + 1.00% p.a + S.Tax)

Letter of Credit (Inland) At the time of opening

Usance charges Usance upto 7 days 0.30% 7 days to 3 months 0.50% Beyond 3 months 0.50% plus 0.25% p.m. Commitment Charges – per quarter or part

thereof 0.30%

LC is enhanced/extended subsequently Same as opening subject to min Rs. 1,000/- Amendment other than above Rs. 500/- LC advising charges 0.10% per LC with a Min Rs. 500/- and Max Rs.1,500/-

and Rs. 500/- per amendment LC Confirmation charges 0.30% per every quarter or part thereof Min Rs. 500/- and

usance charges as applicable Advice of transfer in transferable LCs Rs. 500/- per advice of transfer and acceptance

commission at 0.30% Min Rs. 500/- Negotiation Charges for Bills under LC Upto Rs. 5.00 lacs 2,000/- + Out of pocket

expenses and Discount

as applicable Above Rs. 5.00 lacs 3,500/-

Clean payment received under LC Nil Charges for certifying invoices subsequent to

negotiation Rs. 100/- per invoice

Charges for accepting bills under LCs Nil Charges for retirement of bills under LCs Nil Charges for non payment and non acceptance of

bills on presentation/ on due date 0.20% of bill amount Min Rs. 500/-

Commitment Charges (Applicable to accounts with fund based limits

of Rs. 1 Crore and above in Large & Mid

Corporate verticals only (other verticals to be

exempted from this). Itg is levied on quarterly

basis with tolerance level of 30% of quarterly

operating limit/drawing limit

Less than 60% 0.40% p.a on unutilized

portion

60% and above No commitment charges

Commercial Papers Issuing Paying Bank Charges 0.50% p.a. of face value of CP issue Charges for allotment redemption and

sale/purchase transactions CSDL

NSDL

Account Maintenance 1,000/- p.a. 350/- p.a. Charges per transaction per security –

Sale/Purchase 275/- 350/-

Charges for Rematerialisation per request 30/- 30/- Charges for earmarking limits for CP – 100% 1.00% p.a. (in addition to applicable commitment

charges) Earmarking of Limits Rs. 10,000/- p.a. per Branch Equitable Mortgage Charge Charges to be levied both for Original and

extension of mortgages (Ref Cir Letter No:2011-

12/160 dt:08.12.2011)

Single/First Mortgage will have Mortgage charges of

Rs.20,000/- and subsequent Mortgage Charges in case of

creation/extension of multiple mortgages in the same

account to be recovered at Rs. 10,000/- each for Mid &

Large Corporate Branches

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Notes/Clarification : Commission on issuance of Guarantees with higher Cash Margin : Existing reduced commission rates based

on the extent of cash margin availability as per Branch Circulars No. 95/8 dated 14.05.2000 and No:96/33

dated 05.06.2002 would continue. Issuance of NOC : A flat charge of Rs.15,000/- is proposed to be levied at the time of issuing NOC for

ceding first/second charge/other purpose in respect of accounts having credit limit of Rs. 1 Crore and above. Discretionary Powers : Discretionary Powers for giving concessions in service charges related to credit as

advised in Branch Circulars No. 94/177 dated 19.01.2001 and 100/83 dated 22.08.2006 would continue. Delegation regarding waiver/concession of commitment charges : Authority to waive or reduce commitment

charges in deserving cases rests with the executive one level above the sanctioning authority with a

minimum level of General Manager. In case of limits falling within authority of Chairman and Managing

Director or M.Com, such authority rests with the Executive Director. Service Tax as applicable to be recovered separately in addition to the charges mentioned hereinabove. Ref: HOBC :106/79 dt:31.08.2012, 105/81 dt:09.08.2011/;105/193 dt:17.03.2012; 105/144 dt:22.11.2011;

Cir Letter : 2011-12/160 dt:08.12.2011 ; 2011-12/128 dt:25.10.2011)

183

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