Interview May June 2015

ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION (AFFILIATED TO AIBOA)

C/O CORPORATE OFFICE, GURGAON

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BHOPAL/2015/ 12-05-2015

Dear Comrades,

It is indeed a splendid team work exhibited by members of Central Zone Committee, Bhopal,

in the preparation of this miniature presentation in the shape of booklet, for promotion to

higher grade. We have found that the contents included in the booklet finds a wide

coverage of latest/ current as well as basic banking know how. This finest presentation in

booklet form is going to help the candidates in updating their knowledge as well as for

facing the written exam/interview for promotions with confidence.

While we congratulate the Central Zone Team for their relentless efforts, we wish the

aspiring candidates all the success.

With best wishes,

Yours comradely,

(D.K. Pauddar) ( S. S. Shishodia)

President General Secretary

All India Oriental Bank Officers Association___ .

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Study Material for Promotion Interview May-June -2015 (updated till 12-05-2015) 3

I N D E X

Sl. No.

T O P I C Page No.

1 Interview Skills 4

2 OBC at a Glance 5

3 Important Banking Indicators 6

4 Important point from Banks Circulars 6

4 Priority Sector 29

5 Banking & Financial Updates 35

6 Commonly Asked Interview Questions 44

7 Legal Aspects (SARFAESI/Lok Adalat/ TDS etc) 65

8 Recovery &NPA Norms 74

9 Deposit Products 77

10 IT Products 89

11 Retail Credit Products 107

12 Other Important Points 132


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Interview Skills There are some easy steps that you can take that will increase your chances of success at interviews. The keys to a successful interview are preparation and practice. The following suggestions will help you prepare for an interview:

Consider the following topics

1. Complete knowledge of your present assigned work. 2. Knowledge about the performance of your branch where you are posted 3. Updated data of your region as well as our bank 4. Vision and mission of the Bank 5. Your achievement/support during the period 6. Knowledge about yourself like your hobby and also your academic knowledge. 7. Your shortcomings and achievement 8. Present changes in banking sector 9. Read news paper on the day and a day before of interview

Some Tips for Interview.

Before the Interview:

Dress Professionally - In today's environment, wearing a suit isn't always necessary. Arrival - Try to arrive at the interview location a little early.

During the Interview:

First impressions - First impressions take only thirty seconds hence establishing a warm smile, good posture, and introducing yourself in a confident manner after wishing all the interviewer are important ingredients. Smile - A smile denotes confidence in a candidate. Try to smile often. Also, don't be afraid to use some hand animation while answering questions. This suggests enthusiasm in a candidate. Body Language - Use good posture, and look the interviewer right in the eye. Sit up straight. Never slouch. Speak Clearly - Don't mumble. It portrays a lack of confidence. Speak with assurance. This indicates confidence Listen Before Answering - Make sure you understand the question. If not, ask the interviewer to clarify it. Don't be afraid to take some time to think before answering. Interviewers are impressed with someone who thinks out an answer before speaking. Give Brief Answers - Make your answer concise and to the point. Be Truthful - Don't lie when asked about something you haven't done. . Dont use word perhaps/possibly ,may be. If you do not know answer, speak clearly I dont know sir Some common Interview Questions

1. What are your Strengths and Weaknesses ?


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o This is again a very commonly asked question. The Interviewer here wants to analyze how much you know of

yourself.

o How to Answer -

You should mention your strengths that are beneficial for them. For example, It should not be like "I am a very

good cricket Player", Rather you should focus on strengths that are related to that job. For example, "I have

good communication skills" Or "I Like Interacting with people" Or "I am good at a analyzing

Problems and working in a team to find out appropriate solutions".

Weaknesses :- You should not say that you do not have any Weakness. It shows that either you are

Overconfident or have not assessed yourself and don't want to talk about it.

Similarly do not say phrases like "I am short tempered" Or "I get angry very soon and can do anything

in anger". Rather you should genuinely mention the areas that are related to your professional life and you are

trying to get better at them. For exampl, "I Would want to get better at managing time and increasing

my productivity"

n a move aimed at helping transgender persons open bank accounts and avail related services, the Reserve Bank today directed banks to include a separate column 'third gender' in all their forms and applications.

After the Interview:

Thank the Interviewer - Verbally thank the interviewer for taking the time to interview you, before leaving.

OBC AT A GLANCE Our Bank's

1. VISION STATEMENT

TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO ENHANCING STAKEHOLDER VALUE

2. MISSION STATEMENT

Provide quality, innovative services with state-of-the-art technology in line with customer expectations.

Enhance employees professional skills and strengthen cohesiveness. Create wealth for customers and other stakeholders.

Chairman & Managing Director Shri Animesh Chauhan

Executive Director Shri Bhupinder Nayyar

Executive Director Shri Suresh N.Patel

Officer Director Shri Narendra Kotiawala


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Workman Director Shri Kingshuk Bhattacharya

Foundation Day 19th February

No. of Region 34

No. of Branches 2251 as on 31-03-2015

No. of ATM 2495 as on 31-03-2015

Nationalised 15 April 1980

Share holding (Central Govt.) as on

31.12.13

59.13%

Merger of Global Trust Bank 14.08.2004

Important Banking Indicators

Our Base Rate 10.00% (w.e.f 15/0/2015)

Our P L R 14.75 % (w.e.f. 14/05/2012)

Bank Rate 08.50% (w.e.f. 04.03.2015)

Repo Rate 07.50% (w.e.f. 04.03.2015)

Reverse Repo Rate 06.50% (w.e.f. 04.03.2015)

C R R 04.00% (w.e.f. 09/02/2013)

S L R 21.50% (w.e.f. 07/02/2015)

MSF (marginal standing facility) 08.50% (w.e.f. 04.03.2015)

IMPORTANT POINTS FROM BANK'S CIRCULARS (LAST ONE YEAR)

ATAL PENSION YOJANA (APY) CIR NO. GBC/5/2015-16/111 Dt. 08-05-2015 Eligibility of APY: APY is open to all Bank account holders who are not members of any statutory social security scheme.

Age of joining and contribution period: The minimum age of joining the scheme is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.

Enrolment and Subscriber Payment: All bank account holders under the eligible category may join APY with auto-debit facility to accounts.

Enrolment Agencies: All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enroll subscribers through architecture of National Pension System.

Benefit of APY: Fixed pension for the subscribers ranging between Rs.1000/- to Rs.5000/-, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late.

Operational framework of APY: It is Government of India scheme, which is administered by the PFRDA. The Institutional Architecture of NPS would be utilized to enroll subscribers under APY.


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Funding of APY: Government would provide (i) fixed pension guarantee for the subscribers; (ii) would contribute 50% of the subscriber contribution or Rs.1000/- per annum, whichever is lower, to eligible subscriber; and (iii) would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.

Age of entry, years and monthly contribution for fixed monthly pension: An indicative table describing the monthly contribution required as per the age of entry and years of monthly contribution. For example, to get a fixed monthly pension between Rs.1000/- per month and Rs.5000/- per month, the subscriber has to contribute on monthly basis between Rs.42/- and Rs.210/- if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs.291/- and Rs.1454/-, if the subscriber joins at the age of 40 years.

ORIENTAL PERSONAL LOAN SCHEME FOR HOME LOAN BORROWERS (cir

Retail:06:2015-16:65 dt 21-04-2015) (a) Staff members availing housing loan only under Staff Housing Loan scheme will not be eligible for personal loan (b) However, the staff members availing Home Loan under both Staff Housing Loan scheme (SHL) & General Public Scheme (GPS) can avail personal loan as per their eligibility based on Housing Loan sanctioned under General Public Scheme (GPS) subject to compliance of other terms. (c) Irrespective of the fact that home loan has been sanctioned under Regional Office or Head Office powers, the branch incumbents as per their vested discretionary powers under the scheme can consider personal loan

REVISION IN BASE RATE OF THE BANK FROM 10.25% PER ANNUM TO 10.00% PER ANNUM WITH EFFECT FROM 15th MAY 2015 (Cir RMD/09/2015-16/108 dt.08-05-2015)

4. RISK BASED PRICING BASED ON RAROC METHODOLOGY (cir HO/RMD/08/2015-

16/106 dt 08-05-2015) - Risk Adjusted Return on Capital (RAROC) can best be described as under. Its numerator is a measure of adjusted income over either a future period or a past period and the denominator is a measure of the unexpected loss or economic capital at risk.

= e . () Once calculated, the RAROC of a loan is meant to be compared with hurdle rate reflecting the Banks cost of funds or the opportunity cost of stockholders in holding equity in the Bank. If, RAROC > Hurdle rate, then the loan is viewed as value adding, and scarce Bank capital should be allocated to the activity. RAROC ratio has two components: (1) the numerator which is the Adjusted Income and (2) the denominator is the Economic Capital. The numerator i.e. Adjusted income can be explained as expected one-year income on a loan.

=[++ + ] The Denominator i.e. Economic Capital can be explained as Unexpected Loss on the loan. __________________________________

= _/ ( )

Hurdle rate reflects the Banks cost of funds or the opportunity cost of stockholders in holding equity in the Bank. For Base Rate calculation, the Bank has taken expected return on Net worth


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as 15%. Also, as per the ICAAP policy of the Bank, the targeted Return on Equity of the Bank is kept at 15%. Therefore, we have taken hurdle rate at 15%. Comparing the RAROC with hurdle rate will enable the Bank to take correct pricing decision based on the risk profile of the borrower.

Oriental Loan against gold ornaments scheme for agriculture purpose (cir NO.

RD&PS/4/15-16/59 dt 17-04-2015) Loans against Gold ornaments for Agriculture purpose are to be sanctioned strictly as per scale of finance for agricultural loans. It sanction is not as per scale of finance, the agricultural gold loans be classified as NPS loans and Non Agriculture Purposes.

RETAIL CREDIT SCHEMES: OPERATIVE ACCOUNT OF APPLICANTS (cir NoRetail: 45: 2014- 15: 924 dt. 21.02.2015. - Prior to sanctioning and disbursal of any credit facility under Retail Scheme, the borrower must be having an operative account (SB/CA/ CC/ OD) with the bank or should open one. In existing accounts, field functionaries are advised to open operative accounts, wherever not available, within three months of issuance of circular

Pradhan Mantri Jan-Dhan Yojna (PMJDY)-Overdraft (OD) facility of upto Rs.5,000/- - (Cir No. RD & PS:78:2014-15/909 dt. 13-02-2015) -

Purpose General purpose loan to provide hassle free credit to low income group / underprivileged

customers to meet their exigencies without insistence on security, purpose or end use of

the credit.

Eligibility (Individuals

only)

a) Basic Savings Bank Deposit (BSBD) accounts, which are operated satisfactorily for at least six months. This facility will also be extended to the accounts opened prior to PMJDY

and that have been tagged under the Yojana. b) Overdraft (OD) to be granted to the earning member of family,

preferably women of the house.

c) There should be regular credits under Direct Benefits Transfer (DBT)/ Direct Benefits Transfer for LPG(DBTL) scheme/other verifiable sources

d) Account should be seeded with Aadhaar for avoiding duplicate benefit e) BSBD account holder should not be maintaining any other Saving Bank (SB) account

with any Bank/branch to ensure compliance with RBI directives.

f) Age of applicant between 18 years to 60 years. (Not eligible: Minors, Kisan Credit Card (KCC)/General Credit Card (GCC) borrowers,

more than one member of the same family)

Nature of facility Running OD facility in Saving Bank (SB) account

Period of Sanction

36 Months subject to annual review of account

Loan amount a) 4 times of Average monthly balance

b) or, 50% of credit summations in account during the preceding 6 months c) or, Rs 5000/- whichever is lower

(System will be enabled to provide report on eligible amount)

Security Nil


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Interest rate Base Rate +2.

Processing Fee Nil

Sanctioning

authority

Branch

Disbursement Withdrawals through branch / Business Correspondent (BC)/ Automated Teller Machine

(ATM)/ Point of Sale (POS)

Documents Loan application-cum-undertaking Arrangement letter duly accepted by the Account Holder

Inspection &

follow up

Inspection waived for all standard assets. All irregular accounts to be followed up closely.

Other features Mobile Number of the borrower/family members to be kept on record Aadhaar number will remain seeded with National Payments Corporation of India (NPCI) during the period of loan. Move-out of Aadhaar for such accounts will be restricted by NPCI.

Saving Bank Overdraft (SBOD) account will become primary account to receive all subsidies/benefits. DBT should also be frozen to such accounts till the currency of loan. NPCI will provide repository of Aadhaar Seeding for SBOD to the Banks to verify any earlier seeding. Loan accounts will be subject to Income Recognition, Asset Classification (IRAC) norms of RBI.

Credit Guarantee Cover

Guarantee cover upto 60% of default amount in PMJDY Banks will pay guarantee fee @ 1% on loan outstanding at the end of each year. (PMJDY document provides creation of a corpus of Rs 1000 crore for default in PMJDY OD

scheme. DFS guidelines are awaited on this account and also the entity managing such fund and claim process).

The Scheme of Ministry of New and Renewable Energy, GOI for promoting Solar Photovoltaic (SPV) Water Pumping Systems for Irrigation Purpose (cir no. RD & PS / 76 /2014-15/901 dt.10.02.2015) - GOI, has launched a new Scheme of Ministry of New and Renewable Energy, GOI for promoting Solar Photovoltaic (SPV) Water Pumping Systems for Irrigation Purpose to support 30,000 solar pumping units per year. The earlier scheme is merged with this new scheme. Rate of Interest:- Base Rate Security:- The security norms shall be as under:-

Amount of Loan Security Norms

Up to Rs1.00 Lakh Only primary security i.e. hypothecation of crops/assets created by Bank Finance.

Above Rs1.00 Lakh and up to Rs 2.00 Lakh

Hypothecation of crops/assets created by Bank Finance. Mortgage of land/property minimum equal to the amount of loan or 3rd party guarantee of adequate net worth acceptable to the Bank.

Above Rs2.00 Lakh Hypothecation of crops/assets created by Bank Finance Mortgage of land/property minimum equal to the amount of loan.

Dispensing with No Dues Certificate for lending in rural and semi urban areas (Cir

RD &PS :74: 2014-15:895 dt.05.02.2015) - RBI, vide their Circular no. RBI/2014- 15/430/FIDD.CO.LBS.BC.No.49/02.01.001/2014-15 dated 28.01.2015 has advised banks to


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dispense with obtaining No Due Certificate from the individual borrowers (including SHGs & JLGs) in rural and semi-urban areas for all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved.

The revised spread over Base Rate based on the combination of Internal and External

Rating Grade of the borrower (For Other Conventional Loans Not Specified Elsewhere) is as follows: (cir no. RMD/82/2014-15/1023 DATE: 30.03.2015)

Modification in OBC Aadhar Scheme (cir no.CS&P/98/2014-15/1021 dt. 30-03-15)

sr. No.

Existing Guidelines Modified Guidelines

1. The minimum installment is fixed at Rs 10/ and in multiples thereof with a maximum of Rs50,000/- p.m. Monthly installments paid during the tenure of the deposit account shall not exceed in any month, ten times of the core amount or Rs50,000/-, whichever is less.

The minimum installment is fixed at Rs 10/ and in multiples thereof with a maximum of Rs50,000/- p.m. Monthly installments paid during the tenure of the deposit account shall not exceed in any month, FIVE times of the core amount or Rs50,000/-, whichever is less.

2. Standing Instructions(SI) Facility: SI facility not available presently

Standing Instructions(SI) Facility: Standing Instruction facility has been provided to the customer in the scheme, to offer convenience of depositing the (fixed) amount without any break; with the enablement of the facility that customer gets a choice of depositing flexible amount not exceeding FIVE times of the core amount, one more time in addition to the SI every month. i.e. maximum two deposits in a month be allowed only in case the customer opts for SI facility; subject to the total amount in the month not exceeding

REVISED SPREAD BASED ON OVER BASE RATE BASED ON THE COMBINATION OF INTERNAL AND EXTERNAL RATING GRADE OF THE BORROWER W.E.F. 30.03.2015

External Credit Risk Rating

Internal Credit Risk Rating

AAA AA A BBB BB B C D Unrated Large Corp.

Unrated Mid Corp.

OBC 1 0.50% 0.75% 1.25% 2.25% 3.00% 3.50% 4.00% 5.00% 2.00% 2.50%

OBC 2 0.75% 1.75% 2.50% 2.75% 3.25% 3.75% 4.00% 5.00% 2.50% 3.00%

OBC 3 1.25% 2.00% 2.75% 3.25% 3.75% 4.00% 4.25% 5.00% 3.00% 3.50%

OBC 4 1.50% 2.25% 3.00% 3.75% 4.00% 4.25% 4.50% 5.00% 3.50% 4.00%

OBC 5 2.25% 2.75% 3.25% 4.00% 4.25% 4.50% 4.75% 5.00% 3.75% 4.25%

OBC 6 3.00% 3.25% 3.50% 4.25% 4.50% 4.50% 4.75% 5.00% 3.75% 4.50%

OBC 7 3.50% 3.75% 3.75% 4.25% 4.50% 4.75% 4.75% 5.00% 4.00% 4.75%

OBC 8 4.00% 4.00% 4.00% 4.50% 4.75% 4.75% 4.75% 5.00% 4.50% 4.75%

OBC 9 4.50% 4.50% 4.50% 4.50% 4.75% 4.75% 4.75% 5.00% 4.75% 4.75%

OBC 10 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%


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five times of the core amount or Rs 50,000/-, whichever is less

3. One transaction is allowed in a month in OBC Adhaar account and the total amount in the month not exceeding ten times of the core amount or Rs 50,000/-, whichever is less.

In case SI facility is not opted by the customer; only one transaction is allowed in a month in OBC Adhaar account and the total amount in the month not exceeding five times of the core amount or Rs 50,000/-, whichever is less.

. a. Outward NEFT/RTGS from any branch other than the parent/base/home branch shall not be allowed. In case of Merger of branch or business shift on account of banks requirement, special arrangement shall be made by HO CBS Cell after getting approval from CS&P department on case to case basis. b. It has been approved by the Competent Authority to allow Outward NEFT from any branch other than the parent/base/home branch also upto Rs. 1.00 lac, with immediate effect (cir No.CS&P/97 /2014-15/1020 dt 30-03-2015)

The Respective sanctioning authority can consider loan against deposit to the Proprietorship Firm where proprietor of the firm is HUF and the Deposit is in the name of HUF and vice-versa within their Delegated Powers. The same shall be treated as SELF deposit for the purpose of Delegated Powers, Rate of Interest and Margin. Cir no. RMD/79/ 14-15/992 dt 20-03-2015.

HO has approved total waiver of minimum balance charges in the Savings accounts schemes as mentioned below w.e.f 01.04.2015 (cir no.CS&P/ 94 /2014-15/961 dt 10-03-2015)

15. Overdrafts in PMJDY will be classified under priority sector advances(others category) as also weaker sections, provided the borrowers household annual income does not exceed Rs.60,000/- for rural areas and Rs.1,20,000/- for non- rural areas.(cir no. RD&PS /79/ 2014-15/ 934)

SB-204 Smart Pay (Salary Plus) SB-214 Jeevan Sarthi

SB-212 Basic Saving Bank Deposit SB-217 SB Vidyarthi

SB-216 Financial Inclusion SB-221 Salary plus

SB-218 SB Balika SB-205 NR Ordinary Savings

SB-220 Pension Account (Govt.) SB-206 NRE Savings

SB-222 Small Account SB-207 RFC Savings

SB-224 SB Kiosk (FI) SB-223 SB Foreign Students

SB-228 SB DBT Deposit SB-229 FCRA Saving Bank

SB-201 General Saving Bank Account

SB-235 Capital Gain SB- NRO

SB-203 for Senior Citizens-Pranam SB-208 Capital Gain Savings

SB-213 Smart save WIPRO Salary


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Pradhan Mantri Jeevanjyoti Bima Yojana (PMJBY) (cir No. MKTG/03/2015-16/77 dt. 29.04.2015) Scheme Highlights: Scope of Coverage : All savings bank account holders in the age 18 to 50 years will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account. Enrolment Period : Initially on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late enrollment for prospective cover will be possible up to 31st August 2015, which may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015. Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with submission of a self-certificate of good health in the prescribed proforma Enrolment Modality : The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, with the exception as above for the initial year. Delayed enrollment with payment of full annual premium for prospective cover may be possible with submission of a self-certificate of good health. Individuals who exit the scheme at any point may re-join the scheme in future years by submitting a declaration of good health in the prescribed proforma. In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discontinued their subscription shall be able to join while the scheme is continuing, subject to submission of self-certificate of good health. Benefits : Rs.2 lakhs is payable on members death due to any reason. Premium : Rs. 330/- plus Service Tax, as applicable, per annum per member. The premium will be deducted from the account holders savings bank account through auto debit facility in one installment, as per the option given, on or before 31st May of each annual coverage period under the scheme. Delayed enrollment for prospective cover after 31st May will be possible with full payment of annual premium and submission of a self-certificate of good health. The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years. Eligibility Conditions:a) The savings bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme. b) Individuals who join after the initial enrollment period extending up to 31st August 2015 or 30th November 2015, as the case may be, will be required to give a self-certification of good health and that he / she does not suffer from any of the critical illnesses as mentioned in the applicable Consent cum Declaration form as on date of enrollment or earlier. Master Policyholder : Bank will be the Master policy holder. Termination of assurance: The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under: 1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years). 2) Closure of account with the Bank or insufficiency of balance tokeep the insurance in force.


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3) In case a member is covered under PMJBY with LIC of India / other company through more than one account and premium is received by LIC of India / other company inadvertently, insurance cover will be restricted to Rs. 2 Lakhs by admitting the claim on the first application based on date of enrollment and the premium on subsequent enrollments shall be liable to be forfeited. 4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health. 5) The Bank shall remit the premium to insurance company in case of regular enrolment on or before 30th of June every year and in other cases in the same month when received Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme Highlights: Scope of Coverage : All savings bank account holders in the age 18 to 70 years will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account. Enrolment Modality / Period: The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, extendable up to 31st August 2015 in the initial year. Initially on launch, the period for joining may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015. Joining subsequently on payment of full annual premium may be possible on specified terms. However, applicants may give an indefinite / longer option for enrolment / auto-debit, subject to continuation of the scheme with terms as may be revised on the basis of past experience. Individuals who exit the scheme at any point may re-join the scheme in future years through the above modality. New entrants into the eligible category from year to year or currently eligible individuals who did not join earlier shall be able to join in future years while the scheme is continuing. Benefits : As per the following table:

Table of Benefits Sum Insured

a. Death Rs. 2 Lakh

b. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot

Rs. 2 Lakh

c. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot

Rs. 1 Lakh

Premium : Rs. 12/- plus Service Tax, as applicable, per annum per member. The premium will be deducted from the account holders savings bank account through auto debit facility in one installment on or before 1st June of each annual coverage period under the scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence from the first day of the month following the auto debit. The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years.


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Eligibility Conditions: The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme. Master Policyholder : Bank will be the Master policy holder. Termination of Cover: The accident cover for the member shall terminate on any of the following events and no benefit will be payable there under: 1) On attaining age 70 years (age nearest birth day). 2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force. 3) In case a member is covered with OICL/ other insurance companies through more than one account and premium is received by OICL / other Insurance Company inadvertently, insurance cover will be restricted to Rs. 2 lakhs by admitting the claim on the first application based on date of enrollment and the premium on subsequent enrollments shall be liable to be forfeited. 4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that may be laid down. During this period, the risk cover will be suspended. 5) The Bank will deduct the premium amount in the same month when the auto debit option is given, preferably in May of every year and remit the amount due to the Insurance Company in that month itself.

Bank has revised RTGS Timings wef from 28-01-2015(cir No.DIT/34/14-15/843 dt.

21-01-2015):-

for Customer Txn (R41) Monday to Friday 08:00 Hrs to 16:15 Hrs; Saturday 08:00 Hrs to 13:45 Hrs

for Inter Bank Txn(R42) Monday to Friday 08:00 Hrs to 19:30 Hrs; Saturday 08:00 Hrs to 14:45 Hrs

Withdrawal of old series of Banknotes -Pre 2005 Series of Banknotes- The process of phasing

out the pre 2005 series of banknotes has been initiated by the RBI for various denominations in a

phased manner since 2008. Now the Reserve Bank of India has decided that all old series of

banknotes issued prior to 2005 (Pre-2005 banknotes) would be completely withdrawn from

circulation after June 30, 2015. (Cir No. ACT/34/CCHCELL/14-15825 13-01-2015).

(a) Cheques bearing date prior to the opening of account should not be ordinarily be accepted for collection (b) Any cheque received for cash, clearing, transfer should be verified through UV Lamp and a stamp be affixed on the back of the cheque, with a signature of the verifying official confirming verification of the cheque. (cir No.CS&P/ 84 /2014-15/824 dt. January 13, 2015)

Premium for Personal Accidental Insurance cover for account holder (Cir No.Mktg/16/2014-15/819 09.01.2015) Unnati Saving (SB219) Sum Assured Rs.50000/- Premium Rate 4.50+S.tax per year Pragati Current (CA113) - Sum Assured Rs.100000/- Premium Rate 9.00+S.tax per year

The guidelines regarding Priority Sector Lending- (CirRetail:41:2014-15:792 dt.30.12.2014) i) Loans to individuals up to 25.00 Lacs in metropolitan centres with population above 10.00 Lacs and 15.00 Lacs in other centres for purchase/construction of a dwelling unit per family excluding loans sanctioned to banks own employees. ii) Loans for repairs to the damaged dwelling units of families up to 2.00 Lacs in rural and semi- urban areas and up to 5.00 Lacs in urban and metropolitan areas.iii) Loans granted for construction of a toilet (including inter alia costs of plumbing and fixtures, etc.) in the house qualify for classification as priority sector advances within the above limits.


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RETAIL LENDING- Compliance of Codes of Banks Commitment to Customers (cir No. Retail:42:2014-15:793 dt.31.12.2014)

Para of code

Provision in Brief

8.12.1.2.g

Branches are required to provide to customers a sanction letter detailing particulars of amount sanctioned, terms and conditions, etc.

3.3.1

Branches are advised to inform the borrower of changes in interest rates and changes in reference rate.

8.18.d

In the case of securities lodged with the bank for loan availed by customers, branch shall not insist on customers obtaining insurance cover from any particular Insurance company.

8.12.1.2.j

Branches are required to give authenticated copies of the loan documents executed by customers at Banks cost along with all enclosures

8.12.1.2p

Branches are advised to return to customers all the securities/documents within 15 days of repayment of all dues.

Staff Vehicle Loan (Cir No. HO/HRD/72/70/2014-15/804 dt 07-01-15) One time Reg.

Chg. RT & Insurance for 1st year incurred at the time of purchase of new vehicle be included in the cost of vehicle for the purpose of calculation of MPBF.

OBCC Parivaar Saving Group Account-Competent Authority for allowing concessions in Retail

Loans, SME & Agriculture (Term Lending) [Cir NoCS&P/81/2014-15/810 07-01-2015]

Parameter

Feature

Concession in rate of interest for Retail Loans, SME & Agriculture (Term Lending) subject to charging of Minimum Lending rate i.e. Base Rate.

0.25% on the prevailing rate, subject to minimum of Base Rate.

Processing Fee for Retail Loans, SME and Agriculture Term Lending

50% discount at applicable rate.

The RLCC-RH to act as the Competent Authority for permitting the concession/ discount as stated above in Table for all the three schemes namely OBC Parivaar Saving Group Account, OBC Platinum and OBC Diamond Saving Deposit Schemes. Scheme for Financing Allied Agri. Activities Common banking guidelines

Eligible Activities

Poultry Farming Loan may be provided for rearing of layers, broilers, quail, duck, turkey, goose, etc. for production of eggs, meat, feathers and hatchery for chick production. Dairy Farming - Loan may be provided for Milk production activity i.e. purchase and maintenance of milch animals (lactating cows / buffaloes) for milk production, Rearing of good quality female calves, Cattle Breeding through Artificial Insemination, construction of milk houses (Dudhghar) by Village Milk Cooperative Societies, Development of pasture, Milk processing facilities, etc. Fisheries: Inland Fisheries & Marine fisheries Sheep/Goat Rearing: Loan may be provided for the purchase of sheep / goat for the purpose of breeding and / or rearing them for wool, meat and milk production; construction of sheds; purchase of equipments/tools and also for purchase of concentrate feed,


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Piggery: Loan may be provided for breeding and rearing of pigs viz. - purchase of exotic boars and sows, purchase of weaned piglets, construction of pig-pens, etc. Apiculture: Loan may be provided for construction of honey houses, purchase of colonies, purchase of equipments, shifting cost of bee-boxes to suitable place in lean floral period, for meeting recurring cost, etc. Animal Drawn Carts: Loan may be provided for purchase of draft animals and animal drawn carts.

Eligibility

Individuals, farmers, agricultural laborers, tenant farmers, landless agriculture labour, group of farmers, Self Help Groups, Joint Liability Groups, firms, co-operative societies, companies

Nature of Loan

Term Loan : For financing items of investment Cash Credit : To meet out daily expanses necessary to run the farm including payment of insurance premium, vaccination Composite Loan :For both the purposes mentioned above.

Quantum of loan

Quantum of loan will depend on the unit cost with applicable margins subject to economic viability Working capital requirement during the gestation period should be capitalized and included in the project cost

Margin

Up to Rs1,00,000/- Nil Over Rs1,00,000/- 15% Subsidy may be treated as margin money Regional Head is empowered to reduce margin to 10% in deserving cases

Mode of Disbursement

Bank may disburse all loans for agriculture purposes in cash which will facilitate dealer choice to borrowers. Bank may continue the practice of obtaining receipts from borrowers

Rate of Interest

Base Rate. Rate of Interest shall also be applicable for existing accounts w.e.f. 01.01.2015.

Security

(i) Upto100,000/- Hypothecation of animals / birds / assets created out of Bank loan. (ii) Above Rs100,000/- to Rs200,000/- (a) Hypothecation of animals / birds / assets created out of Bank loan. (b) Mortgage of Land / Property* minimum equal to the amount of loan. or 3rd party guarantee of adequate net worth acceptable to the Bank. or Liquid securities viz. FDR / NSC / KVPs etc. which may adequately cover the loan amount plus the prescribed margin (iii) Above Rs200,000/- (a) Hypothecation of animals / birds / assets created out of Bank loan.(b) Mortgage of Land / Property* minimum equal to the amount of loan. or Liquid securities viz. FDR / NSC / KVPs etc. which may adequately cover the loan amount plus the prescribed margin. * Land / Property may be Agriculture / Residential / Commercial which are eligible for creation of bank charge and the valuation of land shall be done as per current DLC rate

Application of interest

Interest on agricultural loans should be applied monthly / quarterly / half yearly / yearly depending upon nature of activity / income generation.

Gestation Period and Repayment Period

These periods depend on nature of activity. Gestation period may vary from 3 12 months while Repayment period may vary from 12 84 months excluding Gestation period. Gestation period and repayment period for each activity are prescribed in respective annexure (1-6).

Frequency of repayment

Frequency of repayment of agricultural loans should be fixed monthly / quarterly / half yearly / yearly depending upon nature of activity / income generation.


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Insurance

Insurance of animals / birds / carts / assets purchased with bank loan should be got done as per bank's guidelines issued from time to time.

Classification of Advance

The finance made under the scheme may be classified under Agriculture / MSE as per the guidelines of RBI circulated from time to time.

Exceptions of the Scheme:-

(i) Where the scheme has been approved by NABARD, all the terms and conditions stipulated by NABARD shall be followed. For the parameters which are not discussed in the scheme of NABARD, the guidelines of this scheme shall be applicable.(ii) The above, shall also be applicable in respect of Govt. sponsored schemes

Implementation of Digital Life Certificate (Jeevan Pranam) Honble Prime Minister has

launched an Aadhaar based digital life certificate Jeevan Pramaan in lieu of annual life certificate on 10th November, 2014 to realize the vision of Digital India. The purpose of Aadhaar based biometric verification system for pensioners (Jeevan Pramaan) is to simplify processes and facilitate accuracy and timeliness in disbursal of pension. This is an additional facility for pensioners with existing submission of Life Certificate in physical form. (Cir No.GBC/44/2014-15/745 Date: 15-12-2014).

Timely acknowledgement/ disposal of Public Grievances - The Department of Administrative Reforms & Public Grievances, Government of India has received feedback that public grievances are not being acknowledged and replied to within a reasonable time. Accordingly the Department of Financial Services, Ministry of Finance has desired that all public grievances be acknowledged within 3 days of receipt of the complaint and final reply be sent within 30day (cir Complaints /15 / 2014-15 /722 08.12.2014)

Podjfds Categorization of Activities under Manufacture or Service under the MSMED Act 2006 - A) Activities considered as Manufacturing - a) Cotton Ginning b) Power generation by conventional as well as by non-conventional processes B) Activities considered as Service: a) Retreading of tyre b) Infrastructure and Real Estate activities (Enterprises should indicate in brackets the specific activities, it dealt with, concerning Infrastructure and Real Estate) c) Power (Electrical) Distribution Service d) Warehouse, Godown and Cold Storage service

TIME NORMS FOR RETAIL CREDIT SCHEMES(cir No.Retail/36/2014-15/698 1-12-2014)

Scheme

Time Frame for sanctioning / disbursal of loans after receipt of complete documents by branch as well as RO

Housing & Mortgage Loan

For Loans under Branch Manager Powers: 3 to 7 days after submission of full set of documents by the borrower For Loans under Regional Head Powers: Maximum upto 15 days after submission of full set of documents by the borrower.

Education Loan

Loan shall be disposed off within 15 days of receipt of duly completed application with supporting documents

Vehicle Loan Loan shall be disposed off at the earliest

Abolishing of Processing fee/ Service Charges in respect of credit facility to Self Help Groups under NRLM -Credit Risk Management Committee in its 107th meeting held on 24th November 2014, has approved the abolishment of processing fee/ service charges in respect of credit facility to Self Help Group under NRLM. (Cir RD &PS:56 :2014-15:685 dt 26-11-2014)

Implementation of OTP services for VISA card based eCommerce transactios OBC has implemented services of sending One-Time-Password (OTP) to registered Mobile numbers of


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customers for undertaking their card-based eCommerce transactions, which has replaced the practice of using static password for VBV transactions. The said OTP services have commenced w.e.f. 12th Nov, 2014 (cir No.DIT/ATM/30/14-15/664)

OBC started to accept enhanced subscription of 1,50,000/- in ORIENTAL BANK TAX SAVING TERM DEPOSIT AMENDMENT SCHEME, 2014 account (cir.CS&P/69/2014-15/663 17-11-14)

In case of death of guarantor / partner, the operations in the account be stopped and the mater be referred to the Sanctioning Authority within one month irrespective of fact whether review is due or not with complete details. If the Sanctioning Authority permits the operations in the account, the same be allowed after complying with the terms of permission. (cir CAD/75/14-15/662 dt.11-11-14)

Ibankig OTP facility through Email all ibanking customers are allowed to receive the login OTP through E-mail at their registered E-mail ID. (cir no.DIT/28/14-15/629 dt. 04-11-2014)

NACH - NCPI has implemented National Automated Clearing House (NACH) for banks, FIs, Corporates and Govt. a web based solution to bacilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. Nach systems can be used for making bulk transactions towards distribution of subsidies, dividends, interest salary pernison etc and also bulk txns towards collection of payments pertaining to telephone electricity ater, loans, investments in mutual funds, insurance premium etc. (cir no.DIT/ps/27/14-15/628 04-11-14)

Home Loan Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS LIH) increased in the eligible Housing Loan Amt. form 5.00 lac to 8.00 lacs. (Cir Retail:33 :2014-15:619 dt. 01-11-2014)

ACCOUNTS (OTHER THAN CURRENT ACCOUNTS) OF ILLITERATE PERSONS: CATEGORY OF CUSTOMER

OPENING OF ACCOUNT

ISSUANCE OF CHEQUE BOOK

ISSUANCE OF ATM TO ILLITERATE

OPERATION OF ACCOUNT (MODE OF OPERATION)

Illiterate Individually No Yes Self

Illiterate joint with Illiterate

Jointly No Yes E or S, or Joint Operation

Illiterate Blind with Illiterate

Jointly No Yes E or S, or joint Operation

Illiterate with literate Jointly Yes Yes E or S, or joint Operation

Illiterate Blind with literate

Jointly Yes Yes E or S, or joint Operation

In case of Joint Operation (mode of operation), ATM/Debit card will not be issued

New TDS Regulations 194DA of Income Tax Act 1961 - A new section 194DA has been introduced in the Income Tax Act, 1961 (The Act), which states that any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not included in the total income under clause (10D) of Section 10, shall, at the time of payment thereof, deduct income tax thereon at the rate of two percent. No deduction shall be made where the amount of such payment of, as the case may be, the aggregate amount of such payments to the payee during the Financial Year is less than one hundred thousand rupees (cir Mkt/JV/10/14-15/560 dt 27-09-2014).


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Rupay ATM cum Debit Card facility is permitted in the accounts of illiterate customers, however it should be ensured that he/she is able to understand (i)the numerical as scripted on the ATM machine and (ii) in the letter informing the PIN number and also (iii) to distinguish his/her card from other cards. He/ She must be informed of the procedure of operating the ATM machine as well as use of various buttons on ATM machine and elaborating the importance of the PIN number and how to change them. (cir CS&P/54/14-15/489 dt 17-9-14)

The Govt. of India, has enhanced the individual subscription limit under Public Provident Fund (PPF) Scheme, 1968, from existing Rs1,00,000 to Rs1,50,000 in a financial year. (Cir no. GBC /21 / 2014-15 / 407 23-8-14)

PMJDY - LIFE INSURANCE COVER OF Rs.30,000/- FOR PMJDY ACCOUNT HOLDER BENEFITS UNDER THE SCHEME - The scheme provides for life cover of Rs. 30,000/- payable on death of the beneficiary due to any cause, subject to fulfillment of the eligibility conditions: BASIC ELIGIBILITY CONDITIONS - i. Person opening Bank account for the first time, with RuPay Card in addition, during the period from 15-08-14 to 26-01-15, or any additional period as may be extended further by Government of India. ii. The person should normally be head of the family or an earning member of the family and should be in the age group of 18 to 59 ( i.e. person should be at least 18 years old, and should not have completed 60 years of age). In case the head of family is 60 years or more of age, the second earning person of the family in the above mentioned age group will be covered, subject to eligibility. iii. Person must have a RuPay Card and Bio Metric Card linked to bank account or in process of being linked to bank account if not already there. iv. The account can be any bank account including a small account. v. For the coverage to be effective the above RuPay Card should be valid and in force at the time of the death of the member vi. Only one person in the family will be covered in the Bima Scheme and in case of the person having multiple cards / accounts the benefit will be allowed only under one card i.e. one person per family will get a single cover of Rs.30,000/-, subject to the eligibility conditions. vii. The life cover of Rs 30,000/- under the scheme will be initially for a period of 5 years, i.e. till the close of financial year 2019-20. Thereafter, the scheme will be reviewed and terms and condition of its continuation, including the issue of future payment of premium by the insured thereafter, would be suitably determined. viii. In case the PMJDY Account is held jointly, then the first account holder i.e. primary Account holder will be eligible for cover subject to the eligibility conditions. INELIGIBLE CATEGORIES - i. Central Government and State Government employees (in service or retired) and their families. ii. Employees (in service or retired) of Public Sector Undertakings, Public Sector Banks, any entity owned by Central Government, any entity owned by a State Government or any entity jointly owned by the Central Government and any State Government, and their families. iii. Persons whose income is taxable under I.T. Act 1961 or are filing the yearly Income Tax return or in whose case TDS is being deducted from the income, and their families. iv. Persons who are included in the AamAadmiBimaYojana covering 48 occupations defined under the Scheme, and their families. v. Otherwise eligible account holders, who have life cover on account of any other scheme of the Bank against the account, shall have to choose between the two schemes and derive benefit from only one. vi. All persons who do not fulfill the basic eligibility conditions of the scheme.


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EXIT FROM SCHEME - The person will exit the scheme on completing of age 60, i.e. on the day the person completes age 60 or closure of the Scheme, whichever is earlier. Cash Withdrawal at Non Base Branch-The limit of cash withdrawal i.e. Rs.1.00 lac at Non

Base branch was fixed and withdrawal beyond Rs. 1.00 lac at Non Base Branch is allowed with prior approval of competent authority.It is informed that Regional Head has been designated as competent authority to allow cash withdrawal beyond Rs. 1.00 lac (maximum Rs. 5.00 lac) to valuable customers at Non Base Branch. It is reiterated that cash payment at Non Base Branch will be allowed when the customer visits such branch himself/herself.

Acceptance of Aadhaar e-KYC as a valid Process for KYC Verification while opening of new

Accounts - Reserve bank of India(RBI) has issued a Circular vide ref. DBOD.AML. BC. No. 44/14.01.001/2013-14 dated 02.09.2013 amending the master circulars prevailing on KYC Norms/AML Standards/Combating Financing of Terrorism (CFT)/ Obligation of Banks under PMLA, 2002 - accepting Aadhaar e-KYC as a valid process for KYC verification under PMLA (Maintenance of Records) Rules, 2005. With e-KYC service of the UIDAI our Bank shall now be able to receive an electronic copy of identify proof and address of the Customer based on his Aadhaar Number. The e-KYC shall provide instant and paperless verification of Customer identity and address thereby allowing Branches to quickly open the new Accounts. To achieve e-KYC of the Customers, the Banks e-KYC Application server will communicate with UIDAIs e-KYC server through NPCI Interface

Commencement of Business: Public Provident Fund (PPF)- 1968 & Senior Citizens Savings

Scheme(SCSS)- 2004. The Bank has been authorized for handling business under Public Provident Fund- 1968 and Senior Citizen Savings Scheme-2004 through 50 authorized Branches w.e.f 01.02.2014. The Public Provident Fund (PPF) Scheme 1968 was introduced to mobilize small savings. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. Salient features of the Scheme are as follows: Eligibility: Individuals in their own name as well as on behalf of a minor can open the account at any Branch. A Public Provident Fund (PPF) account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the same minor.

NRI, & HUF are not permitted to open account under the said scheme. Investment Limit: Minimum of Rs.500.00 subject to a maximum of Rs.1 lac per annum may be deposited. The amount can be deposited in lump sum or in a maximum of 12 installments per year. In case the subscriber is not in a position to invest during a particular year(s), the account may be revived on payment of penalty @ Rs.50.00 per year along with arrears of subscription. Duration of the Scheme: Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each. Rate of Interest: 8.70% per annum (presently). Interest will be paid on 31st March every year. Interest is calculated on the minimum balance between 5th day and end of the month. Loans & Withdrawal: Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates. Tax Benefit: Income Tax benefits are available under Sec 80C of IT Act. Interest income is totally exempt from Income Tax.


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Nomination: Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber. Transfer of Accounts: The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber.

Senior Citizens Savings Scheme(SCSS)-2004: Eligibility: Senior Citizens Savings Scheme has been introduced for persons with 60 years (55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme). The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to invest irrespective of the age limits subject to the fulfillment of other specified conditions. NRI, PIO & HUF are not permitted to open account under the said scheme. Investment limit: Investment to be in multiples of Rs1000/- Maximum investment limit 15 lakh Duration of the scheme: 5 years, which can be extended by 3 years. Rate of Interest: 9.2 per cent per annum (presently). Nomination: Nomination facility is available. Mode of Holding: Accounts can be held both in single and joint holding modes. Joint holding is allowed only with spouse. Investment: Both the spouses can open individual and / or joint accounts with each other with the maximum deposits up to Rs15 lakh each, provided both are individually eligible to invest under relevant provisions of the Rules governing the Scheme. Transfer of Accounts: The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber.

Timely lodging of Claims in CGTMSE - Guideline for lodging of claims is as under:

i) Bank / Borrower has to pay Guarantee Fee / Annual Service Fee / Annual Guarantee Fee regularly in time to keep guarantee in force. ii) The date of classification of the account as NPA in a particular quarter is to be marked on online CGTMSE portal by the end of subsequent quarter iii) Lodgment of Claims: For loan sanctioned on or before 31.12.2012 the claims are to be lodged within a maximum period of one year from the date of NPA, if date of NPA is after the lock-in-period. In case date of NPA is within lock-in-period, claim is to be lodged within one year from the expiry of lock-in period. For loan sanctioned on or after 01.01.2013 the claims are to be lodged within a maximum period of two years from the date of NPA, if date of NPA is after the lock-in-period. In case date of NPA is within lock-in-period claim is to be lodged within two years from the expiry of lock-in period. The lock-in-period is 18 months from either the date of last disbursement of the loan to the borrower or the date of payment of guarantee fee in respect of the credit facility to the borrower, whichever is, later. iv) The borrower account is to be classified NPA as per norms. v) The credit facility should have been recalled and the recovery proceedings initiated under due process of law i.e. Bank should initiate the legal action in any of the Forums like Civil Court / DRT / Lok Adalat / RC File / RRA/SARFAESI etc. However, initiation of legal proceedings as a pre-condition for invoking of guarantee shall be waived for credit facilities upto Rs.50,000/- sanctioned on or after 01.01.2013, subject to the condition that for all such cases, where the filing of legal proceedings shall be waived by Regional Heads. Such cases are referred to Executive Committee


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of the bank headed by GM (RD&PS) at Head office, for not initiating legal action and lodging claim thereof. On approval from Head office, claims in these cases are to be lodged with CGTMSE. vi) The Declaration & Undertaking duly signed by Asst. General Manager or officer of equivalent rank of Regional office is to be enclosed with the Claim Application Form submitted to trust. vii) The claims are lodged online at CGTMSE portal by Regional office.

Government of India has vide their notification dated 25.03.2014 notified that the maximum limit

for investment in Inflation Indexed National Savings Securities- Cumulative has been increased to Rs. 10 lakh per annum for eligible individual investors and Rs. 25 lakh per annum for Institutions such as HUFs, Charitable Trusts, Education Endowments and similar institutions which are not pro-profit in nature. The subscription will close on March 31, 2014

SETTING UP OF CENTRAL REPOSITORY OF INFORMATION ON LARGE CREDITS

(CRILC)

The Reserve Bank of India will set up a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate credit data to lenders.

Banks will have to furnish credit information to CRILC on all their borrowers having aggregate fund-based and non-fund based exposure of Rs5 Crore and above with them.

In addition, banks will have to furnish details of all current accounts of their customers with outstanding balance (debit or credit) of Rs1 Crore and above.

Banks will be required to report, among others, the SMA status of the borrower to the CRILC. Banks are required to put in place a proper Management Information and Reporting System so

that any account having principal or interest overdue for more than 60 days gets reported as SMA-2 on the 61st day itself.

Individual banks will have to closely monitor the accounts reported as SMA-1 or SMA-0 and take up the issue with the borrower with a view to rectifying the deficiencies at the earliest.

Reporting of an account as SMA-2 by one or more lending banks/notified NBFCs will trigger the mandatory formation of a Joint Lenders Forum (JLF) and formulation of Corrective Action Plan (CAP).

FORMATION OF JLF (JOINT LENDERS FORUM) and CAP (CORRECTIVE ACTION PLAN)

1. The JLF formation will be mandatory for distressed borrowers, engaged in any type of activity, with aggregate (fund based and non-fund based) exposure (AE) of 100 Crore and above from more than one lender. 2. Lenders, however, have the option of forming JLFs even when the aggregate fund-based and non-fund based exposures in an account are less than 100 Crore and even when the account is reported as SMA-0 or SMA-1. 3. A borrower may request the lender/s, with substantiated grounds, for formation of a JLF on account of imminent stress. When such a request is received by a lender, the account should be reported to CRILC as SMA-0. Further, the lenders should also form the JLF immediately if the AE is 100 Crore and above. 4. The CAP by JLF may explore various options to resolve the stress in the account including: (a) Rectification (b) Restructuring (c) Recovery 5. The decisions agreed upon by a minimum of 75% of creditors by value and 60% of creditors by number in the JLF would be considered as the basis for proceeding with the restructuring or recovery action of the account, and will be binding on the lenders under the terms of the Inter Creditor Agreement (ICA). 6. The JLF is required to arrive at an agreement on the option to be adopted for Corrective Action Plan (CAP) within 30 days from (i) the date of an account being reported as SMA-2 by one or


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more lender, or (ii) receipt of request from the borrower to form a JLF, with substantiated grounds, if it senses imminent stress. 6. PENAL MEASURES 6.1. In case the bank fails to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts or evergreen the account, bank will be subjected to accelerated provisioning as prescribed below for these accounts and/or other supervisory actions as deemed appropriate by RBI. 6.2. The current provisioning requirement and the revised accelerated provisioning in respect of such non performing accounts are as under:

Classification Period as NPA Current provisioning (%)

Revised accelerated provisioning (%)

Sub- standard (secured)

Up to 6 months 15 No change

6 months to 1 year 15 25

Sub-standard (unsecured ab-initio)

Up to 6 months 25 (other than infrastructure loans)

25

20 (infrastructure loans)

6 months to 1 year 25 (other than infrastructure loans)

40

20 (infrastructure loans)

Doubtful I 2nd year 25 (secured portion) 40 (secured portion)

100 (unsecured portion) 100 (unsecured portion)

Doubtful II 3rd & 4th year 40 (secured portion) 100 for both secured and unsecured portions 100 (unsecured portion)

Doubtful III 5th year onwards 100 100

On a review of the Permitted Transactions under the Rupee Drawing Arrangements (RDAs), it has

been decided by RBI vide its A. P. (DIR Series) Circular No. 111 dated March 13, 2014 to increase the limit of trade transactions from the existing Rs 2,00,000/- (Rupees Two Lakh only) per transaction to Rs 5,00,000/- (Rupees Five Lakh only) per transaction.

Liberalised Remittance Scheme (LRS) for resident individuals-Increase in the limit from USD 75,000 to USD 125,000 RBI vide its A.P. (DIR Series) Circular No.138 dated June 3, 2014 has decided to enhance the existing limit of USD 75,000 per financial year (April-March) to USD 125,000 with immediate effect. Accordingly, AD Branches may now allow remittances up to USD 125,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.

Online Saving Bank Account Application- Bank, is in the process of providing online application facility for opening the saving account in different locations. Any resident Indian desirous of opening a Savings Bank. Account with OBC (Branches located in Metro and Urban centres) can apply for Saving Bank Account on line and get an Application Reference Number. The


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Application reference number shall be displayed on the screen for communication to applicant to visit the branch with required documents within 10 days

REVISED SCHEDULE AND AUTOMATIC RECOVERY OF CHARGES ON REGISTERATION OF EQUITABLE MORTGAGE IN CENTRAL REGISTRY (CERSAI)

S. No.

Nature of transaction to be Registered

FORM No.

Amount of fee payable

1 Particulars of Creation or Modification of Security Interest in favour of Secured Creditors

FORM I For creation and for any subsequent modification of security interest in favour of a secured creditor for a loan 1. Upto Rs. 5.00 lac - Rs. 250.00 + applicable Service Tax. 2. Above Rs. 5.00 lac- Rs. 500.00+ applicable Service Tax

2 Satisfaction of any existing Security Interest

FORM II Nil

3 Particulars of securitisation or reconstruction of financial assets

FORM III

Rs.1000.00 + applicable Service Tax

4 Particulars of satisfaction of securitisation or reconstruction transactions

FORM IV Rs.250.00 + applicable Service Tax

5 Any application for information recorded / maintained in the Register by any person/ Search of the Property

Rs.50.00 + applicable Service Tax

6 Any application for condonation of delay up to 30 days

--- 1. In case of creation of security interest for a loan up to Rs.5.00 lac -- Not exceeding Rs.2500.00 + applicable Service Tax 2. In case of creation of security interest for a loan above Rs.5.00 lac Not exceeding Rs.5000.00 + applicable Service Tax

In order to streamline the process, the recovery of charges on particulars of creation of Security Interest with Central Registry through Finacle has now been automated through CBS system.

Revised Policy on Credit Information Reports of the Borrowers provided by the Credit Information Companies (CICs). 1 CIBIL TRANSUNION SCORE 2. CIBIL PERSONAL LOAN SCORE 1.1. Presently, there are four Credit Information Companies registered with RBI viz:

Credit Information Bureau of India Ltd. (CIBIL) Equifax Credit Information Services Private Limited Experian Credit Information Company of India Private Limited High Mark Credit Information Services Private Limited 1.2. The revision in Banks Policy on Credit Information Reports of the borrowers provided by the Credit Information Companies(CICs): (1) CIBIL TransUnion Score and (2) CIBIL Personal Loan Score was approved by the Board of Directors in the meeting dated 31.01.2014 vide Agenda No. 6 and was circulated to the field functionaries vide Circular No. HO/RMD/92/2013-14/1092 dated 15.02.2014.


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1.3. The revised system of scrutinizing the Credit Information Report (CIR) of the borrowers provided by the Credit Information Companies (CICs) was approved by the Credit Risk Management Committee vide Agenda No.15 in the meeting dated 31.03.2014 with an aim to have:

Better quality of credit portfolio, Objective and transparent scrutiny/processing of credit proposals and effective pricing, Monitoring of the credit facilities.

1.4. The scrutiny summary report of Credit Information Reports(CIRs) of the borrowers provided by the Credit Information Companies(CICs) to be made part of loan appraisal format was circulated to the field functionaries vide Circular No. HO/ RMD/01/2014-15/24 dated 09.04.2014.

EXISTING GUIDELINES REGARDING CREDIT INFORMATION REPORTS(CIRs) PROVIDED BY CREDIT INFORMATION COMPANIES (CICs) CIBIL maintains separate Database for Consumer and Commercial Segments. The Consumer Segment caters to the information regarding borrowers in the individual capacity and the Commercial Segment caters to entities that are other than individuals (firms/companies). In the Commercial Segment, CIBIL provides a detailed Credit Information Report(CIR) of the borrower incorporating profile of the borrower, details regarding credit facilities sanctioned to the borrower, inquires made by the lenders, default status, details regarding the Suit filed, if any, etc. CIBIL does not provide any score for the borrowers under Commercial Segment. In the Consumer Segment (Individuals), CIBIL provides two scores viz, CIBIL TransUnion Score Version 2.0(TU) and CIBIL Personal Loan Score (PL). CIBIL TransUnion Score Version 2.0(TU) CIBIL TransUnion Score Version 2.0(TU) takes into account both Secured and Unsecured Exposures. The Consumers/Borrowers having more than 6 months of credit history are given score in the range of 300-900 and higher the score, lower is the risk. The Consumers/Borrowers having less than 6 months of credit history are given score in the range of 1-5 and higher the score, lower is the risk. CIBIL Personal Loan Score (PL) CIBIL Personal Loan Score (PL) takes into account only Unsecured Exposures. All individuals with at least 1 month of reporting of Unsecured Loans will get a score between 300 900. Clarifications sought by the Field Functionaries The field functionaries have sought clarifications regarding Score of -1 under CIBIL TransUnion Score Version 2.0 and CIBIL Personal Loan Score. INTERPRETATION OF CIBIL SCORE The interpretation of Score of -1 under CIBIL TransUnion Score Version 2.0 as provided by CIBIL is as follows: Individual has no trade & is not reported on the bureau. Individual has no trades & has only been enquired upon. Individual has trades on bureau, but all have been closed 24 months prior to enquiry. Individual has trades but none have been reported in the last 24 months. The interpretation of Score of -1 under CIBIL Personal Loan Score is as follows: Borrowers with no eligible trades in the Bureau, only enquired upon


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Issuance of Demand Drafts against cash

1. In case of cash Transactions below Rs.50,000/-carried out by a non account based customer that is walk in customer, full details of the customer, including complete address, telephone number etc. should necessarily be obtained. 2. To curb the misuse of banking channels for violation of fiscal laws and evasion of taxes the RBI has issued guidelines regarding issue and payment of Draft for Rs.50000/- and above. As per guidelines a draft for Rs. 50,000/- and above should not be issued against deposit of cash. It is not permissible for a customer to split amount ofRs.50,000/- and above and request for more than one demand draft on the same day favoring the same beneficiary. 3. In case of transactions carried out by a non-account based customer, that is a walk- in customer, where the amount of transaction is equal to or exceeds rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, the customer's identity and address should be verified. 4. Such request for issuance of multiple drafts for belowRs.50,000/- each (by way of deposit of cash) in the name of different beneficiaries on behalf of a single applicant though can be considered but should be discouraged keeping in view the AML guidelines. However, if drafts have to be issued, before accepting such requests, the branch must be put on caution and seek the following: a) PAN of the applicant, b) Reasons for getting multiple drafts issue by way of deposit of cash. c) Complete details of the existing banker of the applicant along with the details of credit facilities sanctioned, if any. d) In case applicant is enjoying credit facilities from any bank/FI, advise the applicant to get the drafts issued from its banker. e) In other cases, obtain complete identification proof as per KYC norms. (Self attested copies of the identity and address proof be obtained, verified from the original and attested by concerned bank officer). All such documents be attached with the voucher for record and future reference. ATM / Debit Card facility in the Minors account operated by Natural/Legal Guardian

As per Banks existing policy for issuing ATM/ Debit Cards, following types of customers are not eligible for ATM/ Debit Cards: 1. Minors below 14 years 2. Illiterate 3. Insolvent. 4. Persons operating the accounts in representative capacity Presently the ATM cum Debit card is not issued in the Minors accounts opened/operated under/by natural /legal guardian, as these accounts are held in representative capacity. With a view to facilitate transactions in the accounts of Minors the Banks Policy of issuing ATM cum Debit Card has been modified as under:

1. Self Operated accounts of Minor-An ATM/DEBIT Card is issued to a minor of the age of 14 years and above.

2. ATM cum debit cards may be issued to natural/legal guardian after taking the following onetime undertaking at the time of issuing ATM cum Debit card at the branch

The amount withdrawn/spent through ATM/debit card shall be exclusively utilized for the necessities and benefits of the minor

PAYMENT OF RUPEE TERM DEPOSITS (FDR/CDR AND PROGRESSIVE DEPOSITS) AT

NON-BASE BRANCHES

Existing System Modification


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Payment of TDR on maturity (To the credit of account) In case a depositor has not exercised the option to automatically credit the amount in his operative account on maturity, has to present the TDR physically at the issuing branch only. No other branch is permitted to make the payment

The depositor may present the original TDR at any branch of the bank with the instructions to credit the maturity proceeds in his/her operating account by giving the proper discharge on TDR according to the mandate registered in the account (e.g. E or S F or S joint Operation etc.)

Cash Payment of TDR on maturity- The cash payment of TDR (the amount less than Rs.20,000/- Including Intt. as per IT rules) is made to the depositor after observing all safeguards like signatures etc.- permitted at base branch only.

No Change

Payment of Term Deposits on/before/after maturity to the depositors by way of remittance of funds through Draft/RTGs/NEFT- The transaction is permitted at base branch only.

No Change

Renewal of TDR on maturity In case the customer has not exercised the option of Auto Renewal at the time of account opening, the customer can get it renewed w.e.f the date of maturity in case he approaches the base branch for renewal on due date or within in 14 days after due date. On receiving such request, the base branch, extends the validity/renews the TDR in the system and mention the details regarding ROI, tenure, due date in the format provided at the reverse of TDR. There is no need issuing new TDR. The activity takes place at base branch.

Renewal of TDR on Maturity In case the Term Deposit Receipt is already auto renewed in the system, the depositor may present the TDR at any branch of the bank for updation of details. In case the TDR is not auto renewed in the system, The original TDR can be presented at any branch of the bank for renewal. The TDR shall be renewed as per existing banks policy of renewal of Term Deposits.

Renewal of overdue term Deposit The original TDR is presented at the base branch and is renewed w.e.f the date of request after allowing intt. for the overdue period at applicable rates.

Renewal of overdue term Deposit The depositor may present the overdue TDR in original, at any branch of the bank for renewal. The Intt-Paid Account of the base branch shall be debited and the TDS account (if deducted) of the base branch shall be credited. It shall be the responsibility of the base branch to dispatch Form 16 at the depositors address. (In case the customer has shifted the base, and he approaches a non-base branch for renewal of Term deposit he may be suggested


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to transfer his account to that branch for his own convenience).

Encashment of Overdue Term Deposit The original overdue TDR is presented at base branch. The Overdue interest@ SB rate is paid and the maturity amount is paid/credited to the depositor/credited in the depositors account. (As the case may be)

Encashment of Overdue Term Deposit The encashment of Overdue TDR if presented in original at non-base branch may be paid as per banks policy on encashment of overdue term Deposits, through the depositors account. The Interest Paid account of the base branch shall be debited, and TDS activity shall happen at the base branch only.

Payment of Progressive Deposits on maturity- Permitted at base branch only.

The payment of Progressive Deposit Account which has completed its term may be paid at non base branches by crediting the maturity proceeds to the depositors operative account.

Premature Payment of all types of Term Deposits: Permitted at base branch only

No Change

Other activities: Marking lien, lifting lien, issuing TDS certificate, registration, modification, cancellation of nomination etc are permitted at base branch only.

No Change

INCOME TAX PROVISIONS IN RESPECT OF APPLICABILITY OF FORM 15G / 15H

(Circular No. HO/ACT/ 02/2013-14/56 20.04.2013) Central Board of Direct Taxes vide notification dated 19.02.2013 has modified the guidelines regarding applicability of Form 15G & 15H. Vide said notification, CBDT has also changed the format of 15G & 15H. We are forwrding the revised guidelines for applicability of Form 15G / 15H : A. Provision regarding Applicability of Form 15G/15H While accepting form 15G/15H, following points should be kept in mind :-

Form 15G/15H should be accompanied with the PAN of the assessee, Otherwise TDS is to be deducted at the rate of 20% or the applicable rate whichever is higher.

Form 15G c

Interview May June 2015

Documents

Transcript of Interview May June 2015