CHAPTER 13 TECHNOLOGY INITIATIVES OF THE BANK Alternate Delivery Channel Products including various types of Cards New Age

payment and settlement mechanisms e.g. RTGS, NEFT,ECS, CTS etc. Other initiatives e.g. ASBA. Xpress money transfer, CMS, CRM. BCP Guidelines

1. Alternate Delivery Channel Products: The alternate delivery channel products are those products using which we can offer the banking services to our customers outside the brick and mortar bank premises, i.e. the customer need not visit the branch for banking needs. Our bank has launched many such IT enabled products. Various Types of Cards: The IT enabled cards include ATM Cards, Debit cards, Credit Cards and Smart Cards. ATM Cards ATM cards are the magnetic strip based cards which can be used to withdraw money from ATMs. These cannot be used to make purchases at Point of Sale (POS) i.e. at merchant establishment. Debit Cards Debit cards are also magnetic strip based cards and in addition to performing the function of withdrawing cash from the ATMs, these can also be used to make purchases at Point of Sale i.e. at merchant establishment. Credit Cards Credit cards are also magnetic strip based cards. In contrast with debit cards, these are the cards with preset credit limits. These can be used to make purchases at Point of Sale i.e. at merchant establishment, as These can also be well as to withdraw known as buy now cash from ATMs. pay now cards These can also be known as buy now pay later cards Smart Cards These cards are chip based cards. The chips in these cards are capable of many kinds of transactions. For example, you could make purchases from your credit account, debit account or from a stored account value that's reloadable. The enhanced memory and processing capacity of the smart card is many times that of traditional magnetic-stripe cards and can accommodate several different applications on a single card.

PNB MITRA ATM Cards

1. ATM Cards In all No Frills accounts opened under PNB MITRA scheme, Bank has launched a new type of ATM card known as PNB MITRA ATM Card. The salient features of these cards are as under: All MITRA account holders of all the branches are eligible for issuance of these ATM cards. Withdrawal limit from ATMs is `. 5000/- per day. These cards are not valid for POS/E-commerce transactions. These will non-personalized ATM cards. Only one account can be linked. No add on card facility is there. No annual fee, No charges for duplicate Card/PIN. Entry and verification will be done through menu option DCARD using option M in type of card.

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Makes it possible for illiterate or barely literate population to become part of the banking user community. The salient features of these cards are as under: Under this category cash withdrawal limit on ATM is `. 10000/-. Card is not enabled for POS / e-commerce transactions. Biometric cards can be used at PNB ATMs only. Application supports transaction authorization mechanism with Biometric finger scans of the cardholder. The cardholder has to register four fingers on the scanner and shall be able to use any of the four registered fingers for doing an ATM transaction. The Biometric ATM will support dual mode of card-based transaction Authorization mechanism: The regular PIN based transaction authorization and In addition to PIN based transaction, ATM will support transaction authorization based on the finger scan of the customer being uniquely identified against a card. 2. Debit Cards 1. Non personalized cards (Cards without name and / or photo) Types of Debit cards: The debit 2. Personalized cards (Cards with name and / or photo) cards in general have a validity of 7 years Under both the above broad categories we can have following two sub and are broadly categories: classified under 2 1. PIN Based Cards: In order to make transactions at POS using these categories cards the cardholder has to punch PIN 2. Signature Based Cards: In these cards the POS transactions can be done by signing the charge slips and punching of PIN is not required. However, in order to withdraw from ATMs the functionality is same for both types of cards. Another difference between PIN based and signature based cards is that the latter can be used for making e Banking transactions over Internet whereas the former cannot be used for the same. There are 2 types of signature based cards: i. General/ Normal Signature Based Debit Card ii. Platinum Debit Cards Eligibility for Classic Debit Cards: All the Customers, who maintain Current / Saving Fund / Overdraft issuance of Debit account with our Bank. The designated account can be in joint names with cards 'either or Survivor, 'Former or Survivor' mandate and to all the account holders in such accounts having operation mandate as 'Any one'. In case of 'Former or Survivor' account card can be issued to Former only. Only overdraft accounts against security of Banks Deposits and Govt. liquid securities are covered under the scheme. The card will not be issued to firms, HUFs and Corporate bodies. Platinum Debit Cards: Customers who maintain minimum average quarterly balance during last quarter of `. 1.00 lac in case of a Current Account (sole proprietorship) and `. 50,000/- in case of a Saving Fund Account are eligible for issuance. In case of Current (Overdraft), the customers who are enjoying limit of `. 1.00 lac and above are eligible for Platinum card. Only overdraft accounts against security of Banks Deposits and Govt. liquid securities are covered under the scheme. All the staff members (including retired employees) of our Bank. Any other customer, who in th0065 opinion of Incumbent is a valued customer for the Bank. The discretion is to be exercised judiciously and not arbitrarily. Biometric ATM Cards
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Add On cards and Add On accounts

Cash Withdrawal limit & purchase limit from POS

Customer can avail facility of 2 additional cards for his/her family members. All cards work on main account of primary card holder. Maximum of 3 accounts (one primary + 2 other accounts) can be added to a single card. Transactions are allowed on any account. The accounts can be of any CBS branch but these should be of the same name and held in same capacity. Type of Card Cash withdrawal - Point of Sales (POS) ATM Classic Debit Card ` 25000/- per day `. 25000/- per day (Max `. 15000/- per transaction) Platinum Card 40000/- per day (Max `. 60000/- per day `. 15000/- per transaction) Issue Charges NIL Annual fee `. 100/Add on Card `. 50/- per card Duplicate PIN `. 25/Duplicate Card `. 100/Card with `. 25/photograph Staff Free for all i. Annual fee will be charged at central level by Data Center. While all other charges will be recovered at branch level. ii. Annual fees on PNB ATM card to student under PNB Vidyarthi scheme stand waived w.e.f. 1.2.2009. Transfer of funds to 3rd party accounts through ATM is permitted subject to a maximum amount of 25000/- per transaction However, there is no limit of number of transactions in a day. PNB Card Holders can receive funds from any Master Card Holder of participating bank situated abroad. The salient features of this scheme are as under: Eligibility: All PNB Debit Card Holders (Maestro and Master Card) Txn. Limit: Minimum `. 500 (approx USD 10) and Maximum `. 125000 (approx. USD 2500). No daily/monthly limit. Charges: NIL Under this scheme, w.e.f. 20.10.2010, Reward Points would automatically accrue to PNB Debit Card users, in proportion to the amount spent through their PNB Debit Cards at POS (Point of Sale swipe machines) Terminals and for E-Commerce transactions (that is for transactions where the debit card is used over the internet for shopping, booking of tickets etc) This scheme would be valid for a period of three years, that is upto 19.10.2013. During the periodicity of the scheme, the Reward Points which accrue to a card holder may be redeemed as per the choice of the card holder against the free goods and services available. The host of such goods and services on offer may be viewed at the program web portal http://www.pnbrewardz.com/. The Reward Program toll-free number is 1800-209-3335. Bank has decided to provide Free Group Accidental Death Insurance Cover to all its Debit Card holders, subject to the usage of a Card. Bank has obtained an insurance policy from M/s National Insurance Co. Ltd. for this purpose. The policy has come into effect from 19.10.2010 and would be in force upto 18.10.2011. Under this scheme, the insurance cover would be extended

Banks Charges structure in respect of Debit Cards

3rd Party Transfer Of Funds through ATMs Master Card Money send Programme Cross Border Remittance

Reward Point Scheme on PNB Debit Cards

Free Group Accidental Death Insurance Scheme on Active PNB Debit Cards
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to all existing card holders, as well as cardholders who would be added during the periodicity of the scheme. As per the terms of the policy, the cover would be applicable only if a card holder has used his Debit Card for a financial transaction within the previous 90 days from the date of incidence (accident). The extent of cover would be as under: Classic / Maestro Debit Card ` 50,000/= Platinum / Gold Debit Card ` 200,000/= Customers must be reimbursed the amount wrongfully debited on account RBIs guidelines on of failed ATM transaction within a maximum period of 12 working days resolution of ATM from the date of receipt of customers complaint. Complaints Failure to re-credit the customers accounts within 12 working days from the date of receipt of complaint, bank shall pay compensation of `100/per day to the aggrieved customer, without any claim from the customer, on the same day when the bank affords the credit for the failed ATM transaction. In case of Inter bank ATM sharing transactions, the issuer bank is entitled to claim such compensation from the acquirer bank, if the delay is attributed to the later. Banks shall extend the scope of concurrent audit to cover cases of delay in reimbursing the customers for failed ATM transactions. Cash Retention Cash in ATM after Cash-replenishment shall not exceed 3 times of peak withdrawals in a day during last one month subject to maximum cash Limit in ATMs retention limit of : ` 25 lacs where average transactions per day is less than or equal to 300 ` 40 lacs where average transactions per day is more than 300 3. PNB UPHAAR CARD : A GIFT CARD (TBD Cir. 13/11 dated 22.02.2011) Eligibility Type of Card to be issued Documents required for issuance of card (As per Banks existing guidelines for KYC compliance) Customers and Non Customers. Non-Customers may purchase PNB Uphaar through payment from their account or by cheque from any PNB Branch. Non-Personalized Cards. For Existing PNB Customers: Application form for issuance of Card. The A/c should be KYC complaint. For Non-Customers: Application form for issuance of Card Identity Proof: - PAN card, Passport, Driving License, Voter ID card or any other proof as per Banks guidelines for KYC compliance Address Proof: - Telephone Bill, Electricity Bill, Ration card or any other proof as per Banks guidelines for KYC compliance The Mobile Number of the cardholder is mandatory. Pan India Minimum: ` 500/Maximum: ` 50000/Minimum 6 months maximum upto 12 months from date of issue Replacement of a card before the minimum validity period would attract card replacement fee No minimum limit Maximum `. 50000/- (Subject to balance available on the Card); up to `.25000/- per day.

Applicability of Card Amount to be loaded in PNB Uphaar Card Validity of the Card

Transactions at POS (Cash withdrawal is not allowed through the card.) Stock of Card and
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Stock of PNB Uphaar Cards and respective PINs would be maintained at

PIN

Issuance of duplicate PIN

Reporting loss of Card Re-loading of Card Card Accepted at

Facilities to be provided to card holders Process at CBS

Bulk Issuance

Type of account required to support the Card Mode for purchase of Card Purchase Transferability Schedule Of Charges

branches. The stock of Suvidha Cards and their PINs held at branches would be treated as security forms and their records shall be maintained accordingly. The original purchaser of the Card may lodge a request with a branch for issuance of Duplicate PIN. The duplicate PIN will be sent to the branch from where such a request has been generated. To be immediately reported to Banks Call Center by the card holder for hot listing of Card. PNB Uphaar is not a reloadable card. PNB Uphaar card would be accepted at: All the POS / Merchant establishment having Maestro / Master Card logo. Over Internet for Ecommerce Transactions. Purchase at POS machines and over Internet for up to `. 25000/- per day Other E-commerce transactions such as payment of Utility Bills / booking of tickets/ making purchases etc. over the Internet Each Uphaar Card will have a separate current account. Separate Menu will be customized for the issuance of the card in CBS. The issuing branch will issue the card using the customized CBS menu options. PNB Uphaar may be issued in Bulk only to existing customers. A utility would be provided in CBS to facilitate bulk purchase of these Cards, especially by Corporates. There is no restriction on number of cards that may be issued to corporate entities. However, in case of individuals, up to 20 cards may be purchased during a month. Current Account.

Through Transfer from a PNB account or by Cheque PNB Uphaar cards shall be transferable by delivery. Joining Fee: Free of cost Card replacement fee (if card is lost): ` 25/Duplicate PIN Fee :- `. 25/-

4. PNB SUVIDHA CARD (TBD Cir. 13/11 dated 22.02.2011) Customers and Non Customers. Payments to be accepted either as transfer Eligibility from a PNB account or by way of a Cheque from any PNB Branch. Non-Personalized Cards. Type of Card to be May also be issued in the form of a Co-branded Card in case of our issued Corporates. Documents required As defined under the PNB UPHAAR Cards above for issuance of card (As per Banks existing guidelines for KYC compliance) Applicability of Card Pan India Amount that can be Minimum: ` 500/loaded on the PNB Maximum: ` 50000/IT-P-S 13 -Page 5 of 27

Suvidha Card Validity of Card

Transactions under PNB Suvidha

Facility at PNBATMs Facility at ATMs of Other Bank Stock of Suvidha Cards and PIN

Minimum 6 months, maximum 36 months from date of issue Replacement of a card before the minimum validity period would attract card replacement fee Cash withdrawals (At PNB ATMs) Maximum ` 25000/- per day Cash withdrawals (At ATMs of Other Banks) Maximum:- ` 25000/- per day (Charges will be applicable as per RBI guidelines) Transactions at POS No minimum Maximum `. 50000/- (Subject to the available balance on the Card); up to `.25000/- per day. Payment of Utility Bills at ATMs and payment / purchase over the Internet Balance enquiry, cash withdrawals & PIN Change. Balance enquiry, cash withdrawals. (Transactions to be guided as per RBI guidelines issued from time to time) Stock of Suvidha Cards and respective PINs would be maintained at branches. The stock of Suvidha Cards and their PINs held at branches would be treated as security forms and their records shall be maintained accordingly. Only the purchaser of a Card may request for a duplicate PIN. The duplicate PIN will be sent to the branch from where the request has been generated. To be immediately reported to Banks Call Center by the card holder for hot listing of Card. PNB Suvidha may be reloaded by the purchaser through transfer from a PNB account or by payment by cheque at any branch of the Bank However, re-loading through cheques would be subject to realization. PNB Pre paid cards would be accepted at: All PNB ATMs, ATMs of other Banks accepting Master / Maestro logo or those covered under the Sharing arrangement. At POS / Merchant establishments with logo of Maestro / Master Card. Over the Internet for E-commerce Transactions. Before surrendering the PNB Suvidha Card, the Card holder would be required to withdraw the balance amount available from an ATM. Any residual amount less than `100/- remaining on the card that cannot be withdrawn through an ATM, can be refunded to the purchaser of the Card through an account payee Demand Draft, after due verification of his identity. After surrender of the card, the same should be destroyed by cutting it into at least 4 pieces. PNB Suvidha would be supported by Current Accounts

Application for duplicate PIN Reporting loss of Card Re-loading of Card

Acceptability of the Card

Surrender of Card

Type of Account to support PNB Suvidha Process at CBS Facility of Bulk Issuance

Each Suvidha Card will have a separate current account. A Separate Menu will be customized for the issuance of the card in CBS. PNB Suvidha would have the facility of Bulk issuance. However, this facility would be made available to our existing Corporates only.

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Documents required for re-loading of Card Mode for Issuance/ Reloading of PNB Suvidha Schedule Of Charges

Card holders would be required to fill up the application form for reloading of the Card. Reloading would be allowed only through the PNB account of the Card Holder, or by cheque. Through Transfer / Cheque only. Issuance or re-loading of Card through cash will not be permitted. Joining Fee: Free of cost Cash Reloading: Free Card replacement fee (if card is lost): ` 25/= Duplicate PIN Fee :- `. 25/=

The comparative features of the two separate types of Prepaid Card (TBD Cir. 13/11 dated 22.02.2011), proposed would be as under: Sl. No. 1. PNB Suvidha Meant to be used by the purchaser, or to be given out by Corporates to their employees / small service providers. Persons who can KYC compliant KYC compliant Customers through purchase the Card Customers through transfer from their account & Nontransfer from their Customers through cheques only account & NonCustomers through cheques only Minimum Value `. 500/`. 500/Maximum Value `. 50000/`. 50000/Validity of the Card Maximum one year Maximum three year Cash withdrawal Not allowed Allowed at ATMs with Maestro / MasterCard logo or at ATMs under sharing arrangement. POS transaction Allowed Allowed E-commerce Allowed Allowed transaction Per day Cash Not allowed `. 25000/- per day withdrawal Limit at ATMs Per day Cash `. 25000/- per day `. 25000/- per day withdrawal Limit for POS + e-commerce transactions Validity of the Card Maximum one year Maximum three year Reload ability Reloading not permitted Reloadable by purchaser through debit to PNB account / by cheque Type of Account for Current Account : Current Account : Separate Current supporting the Card Separate Current Accounts would be opened in CBS for Accounts would be each card opened in CBS for each card Whether facility of Yes. Through cheque / Yes. Only by our existing Corporate bulk purchase would transfer from account clients, to be purchased & re-loaded to be made available only. the debit of their account. Feature Usage of Card PNB Uphaar To be given as a gift by the purchaser

2.

3. 4. 5. 6.

7. 8. 9.

10.

11 12. 13.

14.

IT-P-S 13 -Page 7 of 27

5. Credit Cards Types of Credit 1. Credit Card for Individuals: cards: The credit i. Classic cards cards are broadly ii. Gold Cards classified under 2 2. Credit Card for Corporates: The two variants are Corporate card with individual liability (CCIL) and corporate card with corporate liability categories (CCCL) and are further have following two varieties i. Classic cards ii. Gold Cards Eligibility for 1. The applicant should have banking relationship with us (PNB) with a satisfactory track record for minimum 6 months. In exceptional cases, the issuance of Credit cards may be issued to the non customers also on the recommendation cards for of Incumbent In Charge individuals 2. The application should be literate, i.e. 10th standard pass 3. The applicant should have independent financial means 4. The applicant should be between the age of 21 years and up to 65 years (@). For add-on cards minimum age will be 18 years. 5. The applicant should be residing/working within the city limits of identified centre 6. Minimum Annual Income (`. Per Annum) Profession Salaried applicant Business/Self Employed/ Professional For Classic 1,00,000 1,00,000 For Gold 2,50,000 2,00,000

@ In exceptional cases branches can forward the applications for customers above 65 years of age. Documents to be 1. The applicant should have PAN card or should submit the application with self attested copy of Form 60/61 (with Photo ID). submitted 2. Income Proof i.e. copy of Form 16/Income Tax Return or Salary Certificate. 3. Residence Proof: Telephone Bill*, Electricity Bill*, Bank Account Statement* *(Not more than three month old). Letter from recognized public , Authority (to satisfaction of Bank), Letter from the employer ( subject to the satisfaction of the bank) 4. Identity Proof: Passport, Voters Identity Card, PAN Card, Driving License, Identity Card (subject to the Banks satisfaction). Letter from recognized public authority or public servant verifying identity and residence of the customer ( to the satisfaction of the Bank). Exceptions to the For Customers: Eligibility Criterion If the Incumbent In-charge wants any specific card limit to any of his valuable clients, the Incumbent may forward a recommendation for specific card limit based on the Age & Value of the Relationship of the Applicant with the Bank. For issuance of credit card to our valued clients with specific card limit, a format has been devised for recommending such applications as per the prescribed format given with to circular No. 2/2008 dtd.23.09.2008. Such applications for card limit up to `.10.00 Lac should be sent to Credit Card Division, HO, New Delhi. For Non Customers: In case of applicants such as Senior Government Officials, Senior Executives of Corporates dealing with us, it has been decided to issue the card even if they are not maintaining their individual banking relationship with us. These applications will have to be recommended by IncumbentIT-P-S 13 -Page 8 of 27

Credit / Cash Withdrawal Limits in case of Credit Cards for individuals

in-Charge only after fulfilling the KYC norms and performing the Document, Income & Profile (DIP) check as per annexure I to CCD Cir. No. 10/2009 dated 24.06.2010. Credit Card can also be issued to Employees of Corporates/ institutions maintaining Deposits / Advances account with PNB but their employees are not maintaining their accounts with PNB and therefore not eligible as per guidelines for Credit Card Issuance(CCD Cir No. 19/2009 & Cir.2/2010). Category of credit Minimum Maximum Cash withdrawal limit card Limit Limit Classic Card Gold Card 10,000/50,000/1,00,000 5,00,000/30% of the card limit 40% of the card limit

Pre-approved Credit Card limits for Staff Members

It is to be noted that the cash withdrawal limit is within the overall credit limit assigned to the card holder. In case of valuable clients Incumbents may recommend for specific limit as an exceptional case. Cadre/ Designation Limit on Cash Limit Add-on the Card in `. cards in `.

Subordinate Staff 5000 NIL NIL Clerical 25000 5000 Two Officers JMG I 50,000 10,000 Two MMG II & III 75,000 15,000 Two SMG IV & V 1,50,000 30,000 Two TEG VI 2,00,000 40,000 Two TEG VII 3,00,000 60,000 Two CMD / ED 5,00,000 1,00,000 Two Now all staff members irrespective of place of posting / identified centre can apply for credit card. No Annual Fee, No Renewal Fee, No Joining Fee Major features of the credit cards No Fuel Surcharge for single purchase of fuel between `. 400/= to `.3000/= Low Finance Charges (w.e.f. 01/02/2010 2.45% p.m. 29.81% p.a.) 2 free add on cards. Free credit period of 20 to 50 days. In case of classic card the billing cycle is 6th of previous month to 5th of current month to be paid on 25th of the month. In case of gold card the billing cycle is 9th of previous month to 8th of current month to be paid on 25th of the month. Rewards Points are available for individual cards @ 1 reward point valuing `.0.50 (Fifty Paise) for every spend of `.100 through card that can be redeemed (provided minimum 500 points are redeemed) by requesting in writing or by logging on to Banks website. At the time of making payment of the credit card bills, the customer has the option of paying any amount between Minimum Amount Due (MAD) or Total Amount Due (TAD). MAD is 5% of TAD.

IT-P-S 13 -Page 9 of 27

Payment & In order to facilitate easy and convenient mode of payment of credit card dues, the cardholder may choose to make payment at any CBS branch, Collection Procedure for through any of the following modes:1. Cash Deposit at the Branches Credit Card Dues 2. Transfer Cheque Payment 3. Clearing Instruments like cheque, draft, cash order etc 4. Internet Banking 5. Bill Desk 6. NEFT 7. ECS 8. Standing Instructions 9. Visa money Transfer Facility It is INR denominated International Credit Card. The features of the scheme PNB Global Credit are as under: Card for NRIs Type of card Gold Credit Card All NRIs ( Existing and prospective customers) Eligibility a) that hold either an NRI/NRO/or FCNR Fixed deposit account with PNB in their own name. The balance should be equivalent to INR 100000(minimum) b) applicants should have an operative NRE or NRO saving account with PNB. Minimum 21 Maximum 65 years (can be relaxed in Age exceptional circumstances) Both photo cards and non-photo cards will be issued on Variants demand. Two Add on cards for family members can also be issued. Credit Card 90% of amount of deposit. Lien will be marked on deposits. Minimum limit will be 90000/- and maximum limit will be 500000/-. In compliance of RBI instructions all payments of credit Repayment of Credit card dues will be made through inward remittances or out of balances held in NRE/ NRO or FCNR deposit Card Dues account. The total amount of dues as per monthly statement will be debited to NRE or NRO -Saving Fund account maintained with PNB. Auto debit instructions will be obtained and all Others payments will be made through inward remittances or out of balance held in NRE/NRO/FCNR account. Credit card limit will be renewed automatically provided account is regular and conditions are complied with. At all branches of all Urban Centers. Credit Cards to Individuals Credit cards with Pre-assigned credit limit linked to net salary: `.6000/Drawing salary to `.40000/-p.m. The Salary Range wise Limit would be as under: from account Net Salary Credited to Card Credit Limit maintained with Account PNB `. 6000-8000 `.12000/Above `. 8000-12000 `. 18000/(CCD cir. No. Above `.12000-15000 `. 25000/7/2010 & 10/2010) Two months average of last three Above `.15000-40000 months net salary. The card limit will be fixed at the lower side of multiples of 5000/- i.e. in case the income is `.23000/- the card credit limit will be
IT-P-S 13 -Page 10 of 27

sanctioned for `.45000/-. Simplification in documentation process: No separate proof of address and income is required. Only copy of PAN card will be obtained from the applicant Applicant to submit copy of PAN Card or Form 60 along with ID proof. Credit Cards Housing Loan customers of the Bank (CCD cir. 14/2010) No. Existing and prospective housing loan customers who apply for the credit card based on the Housing Loan facility sanctioned to them. For existing housing loan customers: HL Customer who are regular in repayment of Housing Loan installments. Proof of residence not required. The Credit Cards to the Housing Loan customers will be offered in the variants of Classic and Gold Card and the Card Credit limit will be as below: Amount of Housing Loan Sanctioned `. 2,00,000 to 5,00,000 `5,00,001 to 20,00,000 Above `.20,00,000 Pre- approved Card limit Type card Classic of

10% of HL amount

10% of HL amount subject to maximum Gold of `.1.00 lac 5% of HL amount subject to maximum of Gold `.3.00 lacs. OR As per recommendation of the branch based on the value of relationship with the bank The scheme is applicable to all types of Term deposit scheme except the Credit Card To Term Deposit following cases: PNB Tax saver fixed deposit scheme Holders Capital Gains scheme Recurring Deposit scheme (CCD cir. No. Deposit held in name of Minor either singly or jointly. 9/2010) Credit Card Features: Credit card will be issued in the name of Applicant whose name should appear on the fixed deposit receipt either singly or jointly with a family member. Joint deposit with Minor is not eligible Card Credit limit will be 75% of the amount of deposit with PNB. Card Credit Limit will be set up in multiples of 1000/- on the lower side of 75% of Term Deposit amount. Branch will mark lien on the deposit held. No Income proof is required to be submitted by the cardholder. There is no upper Age limit for the credit card applicant, however, the minimum age limit would be 18 years. Credit Card Limit: Type of Credit Card Classic Gold Card Limit (Min.) ` 10000/` 50000/Card limit (Max.) ` 49000/` 500000/-

IT-P-S 13 -Page 11 of 27

Corporate Credit PNB Corporate Card has been launched for benefit of our Corporate clients. Card with It will be issued to the executives recommended by the corporate for meeting Individual liability expenses on behalf of the corporate. Card will have name of the executive as well as name of the company engraved on it. There is no joining or renewal (CCIL) fee. The executives in whose name card is issued will be liable personally to the bank for repayment. But in case of failure, the corporate will be responsible. The Card limits are as under: Min. limit Max. limit Cash limit Classic Card 10000 100000 30% of Card limit Gold Card 50000 500000 40% of Card limit Other features of the scheme are as under: Add on facility, Balance Transfer facility and EMI facilities are not applicable. The individuals in whose name card is issues, must be at least 10th pass and between 21-65 years. The income criteria is as per that defined for individuals KYC compliance must be conducted before issuance of card. The account of Corporate should have satisfactory conduct. CCVD, HO can sanction Pre-approved Specific Card limit. Branch can also recommend for relaxation in the age beyond 65 years. Corporate Credit Features: Single consolidated bill to the Corporate. Card with No MAD is available i.e. full payment on or before due date. Corporate liability No reward points are available. (CCCL) Fees: Joining Fees: Min Rs 500 & Max ` 750 per card. Renewal Fees: Same as agreed for joining. Annual Fees: Min ` 750 & Max ` 1000 per card. Eligibility: Corporate must be dealing with us since last 2 preceding years Overall credit limit will not exceed 20% of its net profit as per latest audited balance sheet Corporate will be given maximum limit of ` 50 Lacs within which sub limits will be given to its employees as per recommendation. Bank has recently also entered in the merchant acquiring business of Credit Card and the name of merchant acquiring product launched by our Bank is PNB Biz. In the acquiring business our Bank has started providing the POS machine i.e. the card swiping machine at merchant establishment. Bank has the advantage of getting commission on the transactions done at PNBs swipe machine. 6. PNB World Travel Card PNB World Travel Card (WTC) is a prepaid travel card just like our debit card denominated either in USD/EURO/GBP for visitors going abroad. It will be on Master Card platform. The card holders will be given facility of withdrawal through ATM/POS displaying Master card logo across the globe except India, Nepal and Bhutan. Indian Nationals desirous of visiting abroad (except Nepal and Bhutan) for Eligibility any purpose as permitted by RBI against rupee or to the debit of their EEFC/RFC account. Foreign Nationals while on visit to India against FOREX brought in India & or INR balance supported by encashment certificate. NRIs against surrender of FOREX / to the debit of their NRE / FCNR account.
IT-P-S 13 -Page 12 of 27

USD, GBP & EURO The Cards will be printed with expiry date in mm/yy format and the expiry will be 5 years from the month of printing. Application form Documents Copy of valid passport, required Latest photograph of the customer and Form A- 2 if currency sold exceeds USD5000 or equivalent. Amount Limits for There will be no minimum amount ceiling for Card to be issued. However the Maximum amount will be linked with the purpose of visit and the same will be issuance of WTC parameterized. At present the following limits are have been stipulated by RBI. Purpose Limit Currency of Issue and Expiry Of WTC BTQ or Basic Travel Quota - For holidays etc Business Travel Immigration - For people who settle abroad like Canada, New Zealand etc Employment Abroad - For a person who is going to work abroad Medical Treatments - For people who are traveling abroad for treatment USD 10,000 per Financial Year USD 25,000 per trip USD 100,000 per trip USD 100,000 per trip USD 100,000 per trip

Banks Charges structure in respect of WTC

Studies Abroad - For students going abroad for USD 100,000 per trip studies Maintenance of close relatives abroad USD 100,000 per trip Particulars Charges fixed (Including Service Tax) Issuance/Recharge `.111.00 Duplicate PIN `.111.00 Replacement of Card `.111.00 if delivered in India USD 22.26 for delivery abroad ATM withdrawal fee USD/GBP/EUR 1.66 as per the currency of the card. ATM balance enquiry USD/GBP/EUR 0.56 as per the currency of the card. Refund of Balance in branch/ for `.111.00 each withdrawal on PNB ATM in India. Mark up on conversion (cross 2.23% over and above the currency payment) charges of the Master Card.

In addition to various types of card, we have many other IT enabled alternate delivery channel products e.g. Internet Banking Services, Mobile banking Services etc. 1. Internet Banking Services Types of Internet Internet Banking service is available to the customers of CBS branches for Banking Services accessing their accounts through Internet without coming to the branches. Internet Banking Service is of two types: (IBS) 1. Retail IBS 2. Corporate IBS Retail IBS is to be provided with all such retail customers whose constitution is defined as individual or joint in CUMM is FINACLE. For all the other constitution types the customer is to be provided Corporate IBS. It is to be
IT-P-S 13 -Page 13 of 27

kept in mind that the Sole Proprietorship accounts are to be provided Corporate IBS only and not the Retail IBS. Creation of Internet Banking User Internet Banking Transaction facility for NRI customers The FINACLE menu options for the creation of IBS Users are: Retail IBS IBSRPOST Corporate IBS IBSCPOST NRI customers are now allowed to have transaction facility on Internet. They can transfer funds under permitted categories i.e. NRE to NRE, NRE to domestic, NRO to domestic and NRE to NRO accounts. The procedure is as under: Fund Transfer Limit is `. 5.00 lac per day. Customers having View Facility already They can forward request through IBS- Request Menu and it will be processed at HO. The Tr. Password will be dispatched directly to the customer. Customer will again forward request for activation and the same will be activated within 24 hours. Customers desiring to have View and Transaction Facility PNB-1063 (Appl. Form) can be downloaded by the customer from site. He will fax or E-mail the request for internet banking service. The branch will forward request through IBSRPOST as per the prevalent procedure. Transfer of Funds through Retail internet Banking can be classified under two heads: 1. Within your own accounts NO LIMIT 2. To 3rd party accounts `. 15 lacs per day (3rd Party accounts may be of following types ) Utility Bill payments. Intra Bank 3rd party transfer Inter Bank 3rd party transfer ( Two types) RTGS ` 2 lac as minimum amount limit per transaction within the overall per day funds transfer limit of `15 lac NEFT less than `. 2 lac per transaction With effect from 10.03.2011, Retail users of Internet Banking Services can undertake up to 5 transactions per day as per their choice. The funds can be transferred Inter Bank using the Internet Banking Services. The time limit is as under: RTGS (R41 transactions i.e. customer transactions) Monday to Friday 9 AM to 3.45 PM Saturday 9 AM to 12.45 PM (The outer time limit is 15 minutes prior to the last close time in branch) NEFT (N06 transactions i.e. customer transactions) Monday to Friday 6 AM to 6.45 PM Saturday 6 AM to 12.45 PM (The outer time limit is 15 minutes prior to the last close time in branch) 2. Mobile Banking Services Before the launch of full fledged mobile banking our Bank launched SMS alert facility for the customers, which can be availed by customers by registering their mobile no. through either of the following channels: ATMs Internet Banking Branches (Entered through ALERTS menu option in FINACLE) The SMS Alert facility is available to both Retail and Corporate customers Transaction Limits for getting SMS Alerts: Normal Customers:

Retail IBS Fund Transfer limits

Time Limits for remittance of Funds through RTGS/NEFT using IBS.

SMS Alert Facility

IT-P-S 13 -Page 14 of 27

`.1000 and above - for the transactions at ATM, and through IBS or
E-commerce.

`.5001 and above - for the transactions through CBS

Pensioners: ALL transactions for `.1000/- and above transacted in their accounts. Types of Mobile Presently the Mobile Banking Service is available only to Retail Customers. It Banking Services will be launched for the corporate customers later. This service will allow the customers to view their accounts and make transactions through use of Mobile (MBS) device. Based on different handsets available in the market, 3 flavors are available in the service: Manual SMS, Thin Client and Thick Client. Creation of Mobile The FINACLE menu options for the creation of Mobile Banking users is Banking User MBRPOST. RBI Guidelines on 1. Transaction Limit: Banks are permitted to offer this service to their Mobile Banking customers subject to a daily cap of `. 50,000/- per day per customer for Services both funds transfer and transactions involving purchase of goods / services. 2. Technology and Security Standard : Transactions up to ` 1000/- can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions may be addressed by the banks through adequate security measures. 3. Remittance of funds for disbursement in cash: In order to facilitate the use of mobile phones for remittance of cash, banks are permitted to provide fund transfer services which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients. The disbursal of funds to recipients of such services can be facilitated at ATMs or through any agent(s) appointed by the bank as business correspondents. Such fund transfer service shall be provided by banks subject to the following conditions:: i. The maximum value of such transfers shall be ` 5000/- per transaction. ii. Banks may place suitable cap on the velocity of such transactions, subject to a maximum value of ` 25,000/- per month, per customer. iii. The disbursal of funds at the agent/ATM shall be permitted only after identification of the recipient. In this connection, attention of banks is drawn to the provisions of the Notification dated November 12, 2009, issued by Government of India, under Prevention of Money Laundering Act, 2002, as amended from time to time. iv. Banks may carry out proper due diligence of the persons before appointing them as authorized agents for such services. v. Banks shall be responsible as principals for all the acts of omission or commission of their agents. 2. New Age Payment and Settlement mechanisms: With the increasing usage of technology, the traditional instruments of settlement of interbank funds i.e. Drafts, paper based Clearing are giving way to RTGS/NEFT,ECS, NECS, CTS. 1. Real Time Gross Settlement (RTGS) RTGS (Real Time Gross settlement) is on line system through which inter-bank fund transfers take place. The transfer mechanism is controlled, monitored and settled by Reserve Bank of India. Transactions are settled transaction by transaction throughout the day during stipulated timings. RTGS is fastest mode of inter-bank transfer of funds and customer receives the funds with certainty on the same day. In RTGS the fund transfer is done in structured message formats. Our Banks product of RTGS is known as PNB Insta Remit.
IT-P-S 13 -Page 15 of 27

Types of The outward messages sent by the branches are of following two types: messages sent 1. R41 messages i.e. the messages to be sent on behalf of the customers in which the debit A/c has to be a customer account. through RTGS 2. R42 messages i.e. the messages to be sent by the Bank for Inter Bank remittance purposes. In this type of message the debit account cannot be a customer account. It has to be an Office account. Both the messages can be sent using the menu option HRTGS. Amount Limit Minimum amount : `. 2.00 Lac Maximum amount: No Limit Service Charges Customer Induced Outward Transactions (R41) Value Band Customer Charges Charges (Incl, Service Tax) ` 2 lac to ` 5 Lac `.25/= per transaction `.27.50 per transaction Above `. 5 lac `.50/= per transaction `.55.00 per transaction Local RTGS outward FREE for individuals RTGS Inward FREE Inter Bank for clearing purposes (R42) : Same as above STAFF AND PNB SUBSIDIARIES- NIL (Both for NEFT & RTGS) In case of staff it is limited upto two remittances, for bonafide, i.e., for noncommercial purposes, in a month. Timings Remittance of Message Type R41 R42 Monday to Friday RBIs PNBs Timings Timings 9 AM to 9 AM to 4.30 PM 4.00 PM 9 AM to 9 AM to 6.00 PM 6.00 PM Saturday RBIs Timings 9 AM to 1.30 PM 9 AM to 1.00 PM PNBs Timings 9 AM to 1.00 PM 9 AM to 3.00 PM

Global Message Globally there are four types of message flow structures in RTGS (V,Y,L,T). In Structures India we use Y Structure. IFSC: It expands to Indian Financial System Code and it is uniformly 11 Concept of IFSC characters in length for the entire Indian Banking Industry. In case of our and UTR no. Bank it is in the form of PUNB+0+Four digit D.No.+00i.e. for a branch having distinctive no. 1874, the IFSC would be PUNB0187400. UTR No.: It expands to Unique Transaction No. Once a message is created the system generates one UTR No. which is unique to each and every message and it is uniformly 16 characters in length for the entire Banking industry. Bulk Upload of A new feature has been incorporated in the existing RTGS architecture RTGS / NEFT supported by our Bank which allows for Upload of Bulk RTGS transactions. The user can upload the RTGS/NEFT bulk transaction file using the PCUNIX Transactions and RTGSBULK menu options. 2. National Electronic Fund Transfer (NEFT) NEFT is an application by which customers can transfer funds from one bank account to another bank account in India in an efficient, secure, economical, reliable and expeditious system. This mode is used to transfer funds of smaller amount. The transfer mechanism is controlled, monitored and settled by Reserve Bank of India. Transactions are settled in batches on the basis of net settlement, throughout the day during stipulated timings. Types of The outward messages structure used by the branches is N06 messages i.e. messages sent the messages to be sent on behalf of the customers in which the debit A/c has to be a customer account. through NEFT The messages can be sent using the menu option HRTGS.
IT-P-S 13 -Page 16 of 27

Amount Limit Service Charges

Minimum amount : No Limit Maximum amount: No Limit OUTWARD NEFT - FOR CUSTOMER RELATED TRANSACTIONS: (Other than Local) & Local Value Band Customer Charges Upto ` 1 lac `.5/= per transaction Above `. 1 lac to ` 2 `.15/= per transaction lac Above `. 2 lac `.25/= per transaction INWARD NEFT : FREE Charges (Incl, Service Tax) `.5.00 per transaction `.16.50 per transaction `.27.50 per transaction

Timings Remittance

of

Message Type N06

Monday to Friday RBIs PNBs Timings Timings 9 AM to 9 AM to 7.00 PM 6.45 PM

Saturday RBIs Timings 9 AM to 1.00 PM

PNBs Timings 9 AM to 12.45 PM

The recent changes proposed by RBI in the system of NEFT are: Daily 11 Hourly settlements from 9.00 to 7.00 (5 settlements on Saturday) The earlier system of T+1 (i.e. transaction plus one) settlement of messages has been modified to that of B+2 (Batch plus two) settlement process. In the revised system, the transactions initiated during one batch will get settled maximum within the 2 batches after that. NEFT outward message is being modified to contain 2 additional fields for Mobile No. and E-mail address. A message format is being introduced to relay to the originating bank, an acknowledgement containing date and time of credit. Remittance Remittance to Nepal can be facilitated through NEFT. A ceiling of ` 50000.00 between India and has been fixed per remittance with a maximum of 12 transactions per year. Nepal through Nepal SBI Ltd. Is the Nodal bank. NEFT Originating bank Maximum ` 5/- per transaction aligned with NEFT. State Bank of India ` 20/- per transaction. SBI would share this `.20/ with NSBL at `.10 each. NSBL would not charge any additional amount for crediting the beneficiary, if he maintains an account with it. In case the beneficiary does not maintain an account with NSBL then, an additional amount would be charged` 50/- for remittances up to ` 5,000/- and ` 75/- for remittance above 5,000/-. 3. Electronic Clearing Services (ECS) Mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. It is normally used for bulk transfers from one account to many accounts or viceversa. It is a mode of electronic funds transfer for transactions that are repetitive and periodic in nature. Primarily, there are two variants of ECS: Types of ECS 1. ECS Credit: It is used for affording credit to a large number of beneficiaries having accounts with bank branches at various locations within the jurisdiction of an ECS Centre by raising a single debit to an account of a bank (that maintains the account of the user institution). ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution. The ECS users intending to effect payments have to submit the data in a specified format to one of the approved clearing houses. 2. ECS Debit: It is used for raising debits to a large number of accounts maintained with bank branches at various locations within the jurisdiction of
IT-P-S 13 -Page 17 of 27

MICR Code

Limit Transactions ECS Product price / Charges in case of ECS:

a ECS Centre for single credit to an account of a bank (that maintains the account of the user institution). ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment repayments, periodic investments in mutual funds, etc., that are periodic or repetitive in nature and payable to the user institution. The ECS user has to collect an authorization which is called ECS mandate for raising such debits. MICR is an acronym for Magnetic Ink Character Recognition. The MICR Code is a numeric code that uniquely identifies a bank-branch participating in the ECS Credit scheme. This is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, the next 3 the bank and the last 3 the branch. The MICR Code allotted to a bank branch is printed on the MICR band of cheque leaves issued by bank branches. Of At present there is no value limit on the amount of transactions in ECS (Credit) in or ECS (Debit)

A) ECS: CREDIT CLEARING: Charges (per data entry/record) SPONSOR BANK: Minimum charges `.2000/- + charges payable to RBI and Destination Bank, if any. a) Upto 10000 records @`.5/- per record + charges payable to RBI and Destination Bank, if any. b) Above 10000 to 100000 records @`.3/- per record + charges payable to RBI and Destination Bank, if any. (Subject to a minimum of `.50,000/-). c) Above 100000 records @`.2/- per record + charges payable to RBI and Destination Bank, if any. (Subject to a minimum of `.3, 00,000/-. 2. Charges Payable to Destination Bank and/or RBI: On actual basis, i.e., as waived/ prescribed by RBI from time to time. B) ECS: Debit Clearing ( Inclusive of service Tax and Education Cess) ECS: Debit Clearing: `.3/- per transaction charges Minimum charges `.2000/- + charges payable to RBI and destination Bank, if any. SUBJECT TO RECOVERY OF ALL OUT OF POCKET EXPENSES INCLUDING PROCESSING CHARGES IN CASE THEY ARE EVER AGAIN LEVIED BY RESERVE BANK OF INDIA. C) A sum of `.100/- be levied as returning charges on return of ECS (Debit) on account of Insufficient Funds. D) Full waiver in respect of INCOME TAX REFUND ORDERS: Reserve Bank of India vide their circular No. RBI/2004/90- DBGA. GAD No. H-767/42.01.034/2003-04 dated 9.3.2004 on the subject has conveyed that Government has taken a decision to implement Electronic Clearing services (ECS) credit for direct tax refunds. Accordingly, no ECS charges be levied in respect of Income Tax Refund Orders 4. National Electronic Clearing Services (NECS) The service aims to centralize the Electronic Clearing Service (ECS) operation and bring in uniformity and efficiency to the system. Presently, ECS system functions in a decentralized manner requiring users to prepare separate set of ECS data centre-wise. NECS (Credit) would facilitate multiple credits to beneficiary accounts destination branch at participating centre against a single debit of the account of a user with the sponsor bank. NECS (Debit) would facilitate multiple debits to destination account holders against single credit to user account. At present, only NECS (Credit) is operational. The system has a pan-India characteristic leveraging on Core Banking Solutions (CBS) of member banks.
IT-P-S 13 -Page 18 of 27

This would facilitate all CBS bank branches to participate in the system, irrespective of their locations. In the new set-up, users have to prepare one consolidated NECS file and submit it centrally to the NCC, Nariman Point, Mumbai, through their sponsor banks. The sponsor banks would make use of the web-server provided for the purpose. The web-server also has the facility to get on-line data validation so that error free data could be uploaded for processing. 5. Cheque Truncation System (CTS) Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. Thus with the implementation of cheque truncation, the need to move the physical instruments across branches would not be required, except in exceptional circumstances. This would effectively reduce the time required for payment of cheques, the associated cost of transit and delay in processing, etc., thus speeding up the process of collection or realization of the cheques. Some facts about 1. At present on PILOT basis the CTS project is implemented in NCR, New Delhi CTS 2. Process Flow of CTS: The CTS project envisages a safe, secured, faster and effective system for clearing of the cheques. The presenting bank will capture the data & images of the cheques using their Capture System. The banks will send the captured images and data to the central clearing house for onward transmission to the payee/drawee banks. For that purpose RBI will be providing the banks software called the Clearing House Interface (CHI) that will enable them to connect and transmit data in a secure way and with non-repudiation to the Clearing House (CH). The Clearing House will process the data and arrive at the settlement figure for the banks and send the required data to payee/drawee banks for processing at their end. The drawee/payee banks will use the same CHI mentioned earlier for receiving the data and images from the Clearing House. It will be the responsibility of the drawee bank Capture System to process the inward data and images and generate the return file for unpaid instruments. 3. The image specification of the electronic images of the truncated cheque will be in grey scale technology. This has been decided to optimize on the bandwidth requirement for transmission of image. 4. In order to ensure the quality of image an Image Quality Audit (IQA) is performed before the transmission of the image. Further the drawee bank can still ask for the physical instrument if it is not satisfied that the image quality is not good enough for payment processing. 5. The security, integrity, non-repudiation and authenticity of the data and image transmitted from the paying bank to payee bank will be ensured using the Public Key Infrastructure (PKI). The CTS is compliant to the requirement of the IT Act, 2000. 6. The images of cheques to be preserved for 8 years. Type of Cheques All the local cheques can be presented in the CTS. Banks may also present to be presented in cheques on banks situated outside the NCR, but such banks have branches in the NCR region. The CTS also supports the intercity clearing and specialized CTS clearing like high value clearing etc. The on-us instruments where both presenting and drawee banks are same are not allowed in the CTS. Images of such instruments would be stopped at the Clearing House Interface itself.
IT-P-S 13 -Page 19 of 27

3. Other IT Initiatives: In addition to the alternate delivery channels of Banking and the new age payment and settlement instruments, there are a host of other IT initiatives some of which are as under: 1. ASBA ASBA (Additional Mode of Payment through applications supported by Blocked Amount) can be accessed from FINACLE main screen The link is used for applying public issues. It contains an authorization to block the application money in bank account by marking a lien on the same. Our bank is now registered with SEBI as Self Certified Syndicate Bank (SCSB). SCSB is a bank which offers facility of applying through ASBA process. ASBA is also available to the investors directly through a link on www.pnbindia.com or www.pnbindia.in . Capital Market Service branch at Mumbai shall act as controlling branch for Registrar to the issue, Stock exchange and Merchant bank. The following are the features: No Cheque is issued There is no clearing of instrument. The money remains in the account and earns interest. Lien is marked and the money is appropriated on allotment without involvement of physical refund. The procedure is that Application data will be captured in Off line tool and uploaded through Text File by using menu option UPLLIEN. An ASBA investor intending to subscribe to a book built public issue shall submit an ASBA application form physically to the Designated Branches (DB) The DB will proceed as under: The application must be on specified ASBA Form, authorizing the SCSB to lien mark his account with the application amount. The applicant is a Resident individual investor and applying at Cut Off price. The Investor must have an account with any of our CBS Branch or the investor is submitting an authorization of our CBS accountholder to block his account The total value of application not to exceed `. 1, 00,000. The application form is properly filled up particularly the PAN No. of the investor, Demat Account details and is duly signed. If the investor and the account holder are the different person then the application must have the signature of the investor and ASBA Lien Mark authority letter must have the signature of the CBS account holder of PNB No application will be accepted before the issue opens. Also no application will be accepted after the closing date and time as instructed by the CB. The signature on ASBA Lien Mark authority letter must be verified with the FINACLE data. This aspect be given as much attention as the branch gives while passing a cheque for payment The officer verifying the signatures must put his initials on the application form with the annotation Signatures Verified / SV establishing the fact the signatures have been verified by him.

What is ASBA ?

Role of Designated branch (DB) at the time of accepting the application forms

IT-P-S 13 -Page 20 of 27

ASBA Phase II

PNB Xpress Remit

Phase II of ASBA was launched by our Bank in February2010. 1. In view of the successful launch of Application Supported by Blocked Amount (ASBA) and a good market response for the same amongst the retail investors, SEBI has decided to extend this facility, under ASBA Phase II, to other investors in public issues. 2. Under ASBA Phase II, SCSBs (Self Certified Syndicate Banks) are allowed to accept application/bids from all categories of investors other than QIBs (Qualified Institutional Buyers). SCSBs are not required to obtain any document for validating the category of investors. They have to capture the details of investor-category from the details filled in by the Investor in the ASBA Bid Form. 3. Under ASBA Phase II, SCSBs will facilitate acceptance of bids from investors providing bids with multiple options. In addition to the existing cancellation facility, the investors will have the facility to revise or modify their bids. These facilities will be available to all categories of investors/bidders. SCSB is required to capture the bid details (price and quantity) for all the bid options as per the input file formats of NSE and BSE 4. The following changes form part of ASBA Phase II: i. An application can have up to three bid options. ii. The lien has to be marked on the highest value (Price X Number of shares) of the three bids. iii. In case of multiple bid options (i.e. more than one bid) by the investor, each of the bids will be uploaded in the stock exchange system as three different records, with the same application number. iv. For each of the bids, stock exchanges will generate a separate Order Number. v. In case the investor wishes to revise the bid(s), the investor would provide the SCSB with the Revision Form. The SCSBs should communicate to the investors the order number for each of the original bids (in case of multiple bid options) and the investor has to specify against which order number he/she desires to revise the bid. vi. Revision and cancellation of bids for Retail Individual Investors (investors applying up to `. 1 Lakh) are permitted till the issue closure date and time. However for NIIs (Non institutional Investors) and QIBs the revision is not permitted on the last day beyond 4 P.M. vii. In case of an upward revision of any of the bid options, SCSBs should mark additional lien on the incremental amount. However, in case of a downward revision of bids, the SCSBs need not revise the lien amount and in such cases, the excess amount blocked will be unblocked after the allotment process is completed. viii. SCSBs need to upload the revised bids in the system of BSE with appropriate flags or NSE with appropriate flags as the case may be. ix. SCSBs shall accept revision in bids only if the original bid was received and uploaded by the same SCSB. x. ASBA can be accessed by the customers on line by registering themselves on line through a link in Bank s official website www.pnbindia.in or www.pnbindia.com 2. Xpress Money Transfer Services The technology based platform has not only provided a runway to the bank in

IT-P-S 13 -Page 21 of 27

Amount Limits Limit on no. of remittances Remittances not allowed Concept

CMS Cycle

Modules Available in CMS

Service Charges For CMS

exchanging information in a secured mode, but has also helped in meeting the growing needs of the customers for faster/speedier remittances. The facility requires remitter to submit the details to Banks Overseas location of the beneficiary having account with the bank in India. The details are uploaded through the Internet Banking Channel and the same is credited in the accounts in India without any manual intervention. The beneficiary would get SMS Alert on credit to account and would be able to withdraw the money from any PNB branch. Any single remittance under this scheme should not exceed `. 50,000/=. Only 12 remittances can be received by a single individual during a year. It shall not apply to the foreign nationals. The beneficiary has to give declaration to this effect at the time of receiving payment. Trade related remittances towards the purchase of property, donations / contributions to charitable institutions/ trusts are not permitted. 3. Cash Management Services (CMS) CMS is a value added service for our corporate clients where we manage their receivables and payables with the help of technology and network infrastructure. It is a system by which the cycle of collection is reduced and the reconciliation is done with the use of technology. Through this solution the collection requirements across multiple locations can be handled very efficiently. This system provided very efficient MIS facility to the corporate, with the help of which they can reconcile their accounts very effectively. Customer/their agents deposit instruments at branches or Banks courier picks up from their premises Customer may upload information of cheques to CMS server through Internet. After verification by the branches, cheques are presented in clearing CMS software releases funds as per agreement to customers pooling account CMS-HUB sends MIS reports to customers through e-mail. Customer can also view MIS through Internet Local Cheque Collection (LCC) Uplcountry Cheque Collection (UCC) Post Dated Cheque Collection (PDC) Fee Collection Module (PAYFEE) {TBD Cir. 86/2009 dtd. 14/11/2009} Insurance Premium Collection Module (PAYPREM) {Corporate Marketing Divn. Cir. 02/2009 dtd. 16/03/2009 & 05/2009 dtd. 28/05/2009} DD drawing arrangements on our Branches with Foreign / Pvt. Banks {TBD Cir. 28/2010 dtd. 15/02/2010} Cash Collection Utility AVON Beauty Products through PAYFEE {TBD Cir. 119/2009 dtd. 19/12/2009} (Charges in paisa/per ` 1000) For LCC Module: Annual Turnover in ` Crores TYPE OF CENTRE >250 100-250 <100

Metro 06 15 25 Urban 20 30 50 Semi Urban 50 70 90 Rural 70 90 120 These will be based on D+1 or D+2 basis i.e. actual realization period basis. Minimum charges per instrument Rs. 2/= (Charges in paisa/per ` 1000) For UCC Module: Annual Turnover in ` Crores
IT-P-S 13 -Page 22 of 27

TYPE OF CENTRE

>250

100-250

<100

Metro 30 35 40 Urban 40 45 60 Semi Urban 60 80 100 Rural 90 120 150 Minimum charges per instrument ` 15/=. Above charges are credited on the following day. For PDC Module: In addition to UCC/LCC charges as applicable, ` 10/= per instrument per quarter is to be recovered. Instruments can be received with maximum period of one year. Minimum per instrument charges are ` 15/=. Further above charges are on credit on following days: Destination Centre Metro Urban Semi Urban Rural

Assured Credit On 5 day 6 day 7 day 10 day Charges if paid prior to above proposed days of credit: If party desires immediate credit or prior to the dates as proposed above, the interest @PLR + 3.5% will be added or if they are availing credit facility (working capital) with our Bank, then @ Rate of Intt. Being charged on the account plus 1.00% for the days for which the credit has been given in advance. Also in all other cases where we remain out of fund same rate of interest will be charged. Delegation of Powers for relaxation of Service Charges for CMS
Incumbents in Scale I, II, III VLB & CM other Offices (Scale IV)

Circle Head AGM

Circle Head DGM

Circle Head GM

CGM / GM Corp. Marketing

ED/ CMD

Concept

Functions of CRM

Full 100% of 100% of 100% of 50% of Power normal normal normal normal charges, charges, charges, charges, Max. upto Max. upto Max. upto Max. upto `.5 Lac `.1.5 Lac `.1 Lac `.50000 4. Customer Relationship Management (CRM) CRM is defined as the process of understanding, collecting and managing all the information relating to a customer in a business environment. The ultimate goal of CRM is to communicate with the customer more effectively and improve customer relationship. It is a business strategy that aims to understand, anticipate and manage the needs of the organizations current and potential customers. It is a shift from traditional marketing as it focuses on the retention of customers in addition to acquisition of new customers. Business Partner Management: Capturing customers basic information with an aim to sell different products of the Bank. Contact Management: Maintaining customer information and contact histories of the existing customers. Activity Management: Providing calendar and scheduling activities for individual sales people. Lead Management: Capturing potential leads from new / existing customers and converting leads into actual business. NIL NIL

IT-P-S 13 -Page 23 of 27

Concept of Cross selling and Up Selling

Cross Selling: Selling additional products to existing customers is called cross selling. If we sell asset side products to a liability side customer or even a related asset side product to an existing asset side customer e.g. house repair loan to housing loan customer, it is called cross selling. Up Selling: It is a sales technique, whereby customers are offered additional product, upgrades, or other add ons in the same product category. It involves marketing of more of profitable services and products. Up selling can also be done by simply exposing the customer to other options he or she may not have considered previously.

Operational Guidelines of IAD for Business Continuity for CBS Branches: Cash Receipt During the period branch is not having access to the server due to breakdown Accept cash from the customer in normal course of business. The cashier / designated official will receive cash and note down the same in his cashiers long book. The counter foil will be returned to the customer as normal in token of having received the cash. The branch shall request customer to come for passbook update on some later date. Upon availability of server at the branch Upon restoration of connectivity / availability of server, the branch shall enter the cash receipt transactions into the system and post & verify the same. When there is more than one CBS branch and the connectivity of branch is not restored after the breakdown Depute officials to the nearby branch along with cash receipt vouchers, who will then enter and post these receipts into the system. The concerned officer will sign the cashier long book in lieu of having received the same and will deliver these to official concerned conducting morning checking after coming back to parent branch. The incumbent of the branch will authorize the concerned officials being deputed in writing. The branch where transactions will be executed will keep record of the same in the daily arrangement register. In case of cash, system does not allow value-dating transaction. However in such exigency, the branches shall route all the transactions through sundry account and credit the accounts in transfer mode to give value dating effect for such deposits of cash during the period of breakdown. During the period branch is not having access to the server due to breakdown A. For payments amounting up to Rs.15000/Fall back upon Last Balance report to inquire latest balance in the customer a/c and allow payment up to a maximum of Rs.15000/- only till restoration of the access to server, without obtaining any letter of undertaking from the customer. B. For payments exceeding Rs.15000/IT-P-S 13 -Page 24 of 27

Cash Payment

Obtain letter of undertaking from the customer on the prescribed proforma before making payment. The payment in above case shall be made on case to case basis depending upon the merits of the case. Before making any payment, the authorized official/CTO shall physically verify signatures from the specimen signature slip available at the branch. The CTO will make payment within their existing vested financial powers after verifying the signatures and shall manually record the payments in his long book. The cashier shall make payments exceeding CTO limit and record all payments in his long book. In case of disruption of services at branch, it shall not make any intersol payments. Upon restoration of availability of server at the branch Upon restoration of connectivity, the branch shall enter the cash payment transactions into the system and post & verify the same. In case above payment results in overdraft in the customer account, the branch Manger shall report the matter to RO/ZO and take steps for getting the account When there is more than one CBS branch and the connectivity of branch is not restored after the breakdown Depute officials to the nearby branch along with cash payment vouchers, who will then enter and post these receipts into the system. The concerned officer will sign the cashier long book in lieu of having received the same and will deliver these to official concerned conducting morning checking after coming back to parent branch. The concerned long book should contain the details of the instruments being paid like cheque no., cheque date, a/c no payee name and amount etc. The incumbent of the branch will authorize the concerned officials being deputed in writing. The branch where transactions will be executed will keep record of the same in the daily arrangement register. Accept the instrument at the branch and lodge these instruments in the outward clearing tool (provided by ITD) provided at the branch. Tally the outward clearing physically and send the same to the clearinghouse along with the outward clearing schedule generated from the tool. Generate text file from the outward clearing tool. Open outward clearing zone as per requirement upon restoration of connectivity. Upload the text file using appropriate menu option in the appropriate clearing zone. If the connectivity is not restored in time, depute some official to the nearby branch and upload the text file from there in the outward clearing zone opened for the day. Thereafter, the checking official will verify the records uploaded in the system with the physical clearing vouchers. While taking the vouchers to nearby branch the officer will generate the report listing the various instruments/ vouchers and sign it for having received the instruments for checking the same in the system in nearby branch.
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Outward Clearing

Inward Clearing

If due to some reason connectivity could not be restored in time and upload could not be done from the nearby branch on the same day, the branch shall carry out the upload activity on the next day by opening separate zone with zero latency and shall release the zone to shadow balance. During the period branch is not having access to the server due to breakdown At centers where inward clearing is being centrally uploaded by the service branch, the branch having database access problem would inform the clearing house / zonal office. The Zonal Office, in consultation with HO Division, ITD will notify the RCC / main clearing branches for informing the local clearing houses of the zone for extending the time for returning of inward cheques received in the days clearing if sufficient time is not available to handle the Inward Clearing and sending the returning. Similarly, at other centers where clearing is not being centrally uploaded by the service branch/ RCC, the branch shall tally the inward clearing physically. The branch shall then capture the inward clearing in the inward clearing tool (provided by ITD) provided to the branch, which shall generate a text file. Upon availability of server at the branch The text file shall then be uploaded into the system upon restoration of access to database. When there is more than one CBS branch and the connectivity of branch is not restored after the breakdown The text file shall then be uploaded into the system from the nearby branch. Thereafter, the checking official will verify the records uploaded in the system with the physical vouchers/ instruments. While taking the vouchers to nearby branch the officer will generate the report listing the various instruments and sign it for having received the instruments for checking the same in the system in nearby branch. If the branch feels that it cannot send returning in time to the clearing house, it shall inform its local service branch meeting the clearing house for extending the time for returning of inward cheques received in the days clearing. The branch shall accept all renewal requests and acknowledge receipt of the same to the customer. The branch shall renew the FDR upon restoration of access to database. FDR may be collected by the customer on some later date or sent by registered post as per his choice. The branch shall follow the procedure for cash transaction if customer deposits cash or for transfer transaction if the new FDR is to be issued by debiting customers operative a/c as the case may be giving value date effect. In both above cases, FDR may be collected by the customer on some later date or sent by registered post as per his choice. The branch shall accept all requests for crediting the maturity proceeds of FDR to the operative account of the customer and carry out the closure process upon restoration of access to database. Branch may consider payment of the same on case-to-case basis and will enter the same into the system on restoration of services. If draft / PO issue transactions were lying in entered / posted status at the time of loss of branch connectivity, the branch shall depute official to the

Fixed Deposit Renewal

Fixed Deposit Fresh Receipt

Fixed Deposit Payment

Draft / PO Issue

IT-P-S 13 -Page 26 of 27

Draft / Payment

nearby branch, who would post / verify the transactions into the system and print the demand drafts / Pay order at the nearby branch, which will then be handed over to the customer. Before taking the security forms to nearby branch, officer will sign the inventory movement register in lieu of having received the same. To the extent possible, branch should avoid manual preparation of drafts / pay orders. However If drafts / pay order are prepared manually, the branch shall keep record of inventory number draft /PO number for which the inventory has been used for printing and shall use the same inventory number for printing the draft /PO into the system. If the connectivity is not there in nearby branch also and day end of the branch is to be conducted at Zonal Help Desk or Data Centre, the printing of draft into the system will be done at ZHD/ DATA CENTER by the officials at these centers after moving the inventory in the system in their names and intimating the same to the officials at branch who will make the drafts on the inventory so intimated in respect of drafts where entries are in posted/ verified status if the drafts are not printed. The officials at branch shall confirm the action taken at ZHD/ DATA CENTER in writing. PO The payment of demand drafts / pay order received in clearing will be handled as per guidelines meant for handling inward clearing operations as described above. The branch shall discontinue draft / PO payment seat till such time connectivity is restored. If during such time, customer insists for payment of draft / PO in cash or through transfer, the branch shall depute some official to the nearby branch, who would carry out the payment transactions from that branch. The branch shall discontinue all other front office services not specified above including pass book updation / issuance of pass sheet. The Branch should accept stop payment instructions, attachment orders from courts, garnishee order, intimation of death/lunacy/insolvency of the customer, loss of demand draft / pay order / loss of blank security form. The branch should display a notice informing the services to be available during the disruption of services.

Other Services

IT-P-S 13 -Page 27 of 27