On Board Induction Training Program For Directly Recruited Officers

On Boarding Induction
Training Programme
for
Directly Recruited Officers

Name : _______________E.C. No.:__________

Period : From:__________To:_____________

Training Centre : _______________________________
Baroda Academy Inventing Methods for Igniting Minds


PREFACE

Congratulations on your appointment in Bank of Baroda, one of the Premier Banking Institute
of India. We are eagerly awaiting your joining Bank of Baroda Family.

While you will undergo a very comprehensive On boarding Induction Programme to make you
professional Banker, we have prepared this reference material to give you an Overview of
Banking which you may go through during this intervening period.

The reference material is divided into following segments:

Section A- Banking General - Overview of Banking

Section B HR Policy & Service Conditions

Each section is further divided into various Chapters and each Chapter is followed by a few
Objective Questions to Test Your Understanding.

While going through reference material, in case, you have any doubt, please note down and
the same will be clarified to you during your Class-Room training.

It is expected that you will go through this reference material before joining the Bank and the
Bank will conduct one Objective Test on the first day to Test Your Understanding of the
reference material. Various other technical and functional aspects will be dealt in the Class-
Room Training.

Wishing you a very successful learning experience and we are eagerly awaiting your joining in
the Bank of Baroda Family.

Kamlesh Patel
DGM & I/C Principal
Staff College
Bank of Baroda

15/3/2013

INDEX

Section/Group Topics Page
No.
1. What do you need to become a Successful Professional Banker 1
2. Bank of Barodas Core Values 3
A. Banking General
1. Overview of Banking 5

2.
- Know Your Bank
- New Initiatives Taken by Bank
- Awards and Accolades
18
30
33
3. Various Laws Relating To Bankers 36
4. Banker Customer Relationship 49
5. Know Your Customer and Anti Money Laundering Guidelines 59
B. HR Policies and Service Conditions
1. HR Policies and Service Conditions of Officers 73
2. HRNes, Payroll, Knowledge Management Portal 107

Baroda Academy Inventing Methods for Igniting Mind
1
WHAT DO YOU NEED TO BECOME A SUCCESSFUL PROFESSIONAL BANKER?

Role of Bank

Banks serve an essential role in the economic life of the country. The economys health is
closely related to the reliability of its banking system. Banks ensure money and valuables
are safe and provide borrowing and lending services, a variety of accounts, and a lot more.
What does a Banker do?

Bankers are essential professionals that are vital to the function of the bank. Bankers
provide their customers with a variety of services. They help with initial banking requests
such as opening a checking or saving account and other money handling options. They
offer a variety of services such as, deposits, Money transfer, safe deposit locker lending to
Corporate, SMEs, Priority Sector and much more. They are trained to answer any
questions that customers have about their banking needs and help customers effectively
manage their accounts and fund. Bankers strive to provide excellent customer service and
establish good relationships with their customers.

What are the prospects for a career in banking?

Career as a banker is an excellent choice for individuals who feel comfortable handling
other peoples money and giving advice on how to manage it. Career advancements and
opportunities are excellent and usually depend on the merits of the individual. Details are
given in separate Chapter on career progression in Bank ofBaroda.

What Competencies are required for becoming successful Banker

Bankers must have excellent communication and customer service skills and have a
genuine interest in working with people. Confidence, motivation, and sales ability are also
essential qualities in the banking field.

Successful bankers are usually performance-driven, passionate about their work, keen to
learn and eager to accept challenges.

In terms of Knowledge, Skills and Attitude, requirement is as under:

Knowledge:

Knowledge of Banks Products & Services
Knowledge of Rules / Regulations
Knowledge of Banks Policies / Vision
Knowledge of Technology (particularly Finacle andother IT applications of Bank)

Skill
Marketing Skills
Communication Skills / Soft Skills
Managerial Skills
Public Relations / Networking Skills
Time Management Skills
Decision making Skills

Attitude

Business Savvy
Techno Savvy

2
Customer Savvy
Financial acumen
Result oriented
Process oriented
Willingness to assume responsibility

Summary

Basically, as a Bank Officer you should:

Business Savvy
Present yourself in smart manner
Keep yourself updated with the latest trend and happening in the area of Banking,
Market & Economy (National & International)
Display courteous behaviour towards customers, peers, superiors, subordinates
Render best customer service during / after business hours with full devotion,
dedication, honesty & integrity

3
BANK OF BARODAS CORE VALUES

Our values determine our thoughts and actions. Values acts as internal compass and
therefore provides direction. When common values are chosen and owned by an Individual
or a team, it creates a powerful emotional connect. Individuals/teams following core values
are dynamics and can accomplish miraculous results.
As we grow, our processes and strategies may change, but our values should always
remain the same. Our core values should always be the framework from which we make all
of our decisions.

Bank of Baroda is practicing following core values:

Customer centricity-Taking Ownership of Customer Service

The ownership of excellent customer service lies with each and every employee
irrespective of role assigned to him/her. We have developed culture of quick
responsiveness as far as customer needs are concerned. Bank of Baroda wants to create
a new benchmark in the dissemination of customer service, demonstrating care and
concern that can catapult the standard of our service to create better value for our
customers. Inculcating the culture of sales/cross sales and providing personal service has
made us a great differentiator in the market.

Trust, Transparency and Togetherness
Bank of Baroda strongly believes in these -3- values and all our dealings with our stake
holders i.e. Customers, Employees and Regulators are in tune with these values. We are
transparent in all our dealings. We adopt collaborative approach. We encourage and
Complement each other. We believe in Team spirit. We want to create an environment that
is friendly, warm and exciting. We encourage diversity in ideas, opinions, and points of
view.
We believe that in general, the best ideas and decisions are made from the bottom up,
meaning by those on the front lines that are closest to the issues and/or the customers. The
role of a Manager is to remove obstacles and enable his/her direct report to succeed.

Many of the Banks best ideas have been the direct result of informal interactions outside of
the office.
We are more than just a team, though we are a family. We watch out for each other, care
for each other, and go above and beyond for each other because we believe in each other
and we trust each other. We work together but we also play together. Our bonds go far
beyond the typical co-workers relationship found at most other organisations.

DEW
Dream Big, Enjoy life and Work hard. These are -3- values followed by all 43000 Barodians.
We stretch our goals trusting our potential, we work hard to achieve it and in the process,
we enjoy life also.

Commitment to Excellence

Going Extra mile in whatever we do. In whatever role, Barodians do something thats
above and beyond whats expected. We are not an average Bank, our service is not
average, and we dont want our people to be average.

4
Every One is treated equally/Respecting each Role

Our belief is every role in organization is important and, therefore, every person performing
such role deserves dignity. It is expected that seniors in Organisation will play role of
mentor in grooming young ones and young ones will exhibit due respect to seniority and
age. We believe that every person want opportunity to speak their minds and have their
ideas, opinions and feelings heard regardless of their gender, age or hierarchy level.

Humility

While we celebrate our individual and team successes, we are not arrogant nor do we treat
others differently from how we would want to be treated. Instead, we carry ourselves with a
quiet confidence, because we believe that in the long run our character will speak for itself.

Observing Integrity and Honesty i.e. Walking the Talk and Talking the Walk

We believe in observing integrity at all times . Every Barodian is expected to honor his/her
words/promises. Every Barodian is expected to be trustworthy and honest in words and
actions.

Pursue growth and learning

At Bank of Baroda, we think its important for employees to grow both personally and
professionally. All Barodians endevour to acquire new skill sets, develop leadership traits
and making learning a part of life style to remain more agile in the work space.

We believe that every employee is endowed with immense potential than what the
employee himself/herself realizes. Our goal is to help employees unlock this potential. But it
has to be a joint effort: You have to be ready to face, want to challenge and stretch yourself
in order to make it happen.
We strongly believe that our key human resources need to develop leadership qualities to
build capacity to outperform the competition.

Embrace and drive change
We are ever evolving. Part of being in a growing organization is that change is constant.
We Barodians embrace it enthusiastically and, perhaps even more important, encourage
and drive it.
Although change can and will come from all directions, its important that most of the
changes in the Bank are driven from the bottom up from the people who are on the front
lines, closer to the customers and/or issues.
Never accept or be too comfortable with the status quo, because the organisations that get
into trouble are historically the ones that arent able to adapt to change and respond quickly
enough.
Creative and Open-Minded
We approach situations and challenges with an open mind .We never want to become
complacent and accept the status quo just because thats the way things have always been
done. We are always seeking adventure and having fun exploring new possibilities. By
having the freedom to be creative in our solutions, we end up making our own luck.
Passion, Commitment, Competence and determination of Barodians will surely take the
Bank to greater heights.

5
OVERVIEW OF BANKING

Quick Bites

Indian Banking system comprises Public Sector Banks, Private Sector Banks, Foreign
Banks, Cooperative Banks
In India earliest bank started in 1770 named as Bank of Hindostan
Reserve Bank of India established in 1935 with paid up capital of INR 5 crore
State Bank of India Act passed in 1955.
14 commercial banks were nationalised on July 19,1969 and other six banks onApril
15,1980
Financial sector reforms started in 1991.
Narsimhan Committee submitted its first report in 1992.
KYC/AML Act passed in2002.
RBI issued draft guidelines on BASEL II in2005
To be acquainted with the Emerging trends in Banking

Evolution of banking:

The word bank relates to the German word banck, which means heap or mound or joint
stock fund. From this the Italian word banco , meaning heap of money was coined.
Another school of thought says that the word bank is derived from the word bancus or
banque which means bench. Initially the bankers, viz. the Jews in Lombardy transacted
their business on benches in the marketplace and bench resembled the bank counters to a
certain extent. If a banker failed, his banque/bench was broken up by the public. Hence the
work bankrupt evolved. In other words, bankrupt means a person who has lost all his
money, wealth, financial resources etc.

In India, the earliest bank was started in 1770 named as Bank of Hindostan byM/s.
Alexander and Company of Calcutta (Kolkata). But it was closed down in the year 1832.
However, subsequently three presidency banks were set up, viz. Bank of Bengal in 1809,
Bank of Bombay (Mumbai) in 1840 and Bank of Madras (Chennai) in 1843. These were
quasi-government institutions incorporated under the charter from local government which
also contributed to the share capital. They were initially entrusted with the cash balances of
government and management of public debt. In the year 1921, all these banks were
amalgamated into Imperial Bank of India with the deposit and advances figures of INR 73
crores and INR 54 crores respectively, spread over nearly 80 branches.

According to Section 5(b) of the Banking Regulation Act, 1949, banking is accepting, for the
purpose of lending or investment, of deposits of money from the public repayable on
demand or otherwise and withdraw by cash, cheque, draft or otherwise. Banking is nothing
but efficiently mobilizing low cost deposits from savers, who otherwise have low return
options and then efficiently allocating funds to creditworthy borrowers who have very few
capital funds to be deployed on any viable project/business proposal/opportunities Section
49(A) prohibits any institution, other than banking company, from accepting deposit money
from public for withdrawal by cheque. The overall banking business in the year of
Independence ie 1947, nationalization in 1969 and the present one, as revealed in Table 1,
throw a birds eye view of the growth in the banking sector during the 60 years period.

6
TABLE 1 (INR in Crs.)
Parameters 1947 1969 April 2010 June,2012
(Approx)
Deposits 1,019 4,640 45,06,747 54,34,225
Advances 424 3,572 32,14,742 39,96,976
Total Business 1,443 8,212 77,21,489 94,31,201

With increase in the number of bank branches significantly from about less than 100
branches in 1947 to around 72,000 in 2009, the total business of the banks has also
leapfrogged, with Compound Annual Growth Rate (CAGR) of nearly 15 percent for 60 long
years, a creditable achievement by any standard. During the last couple of years, while
many global; financial institutions failed, in India on account of the stringent regulatory
measures, we have been able to neutralize the effect of global meltdown in the financial
sector.

Reserve Bank of India Established

As recommended by the Indian Central Banking Enquiry Committee, the Reserve Bank of
India Act was passed in 1934 and the Reserve Bank of India (RBI) was established in the
year 1935 with fully paid share capital of INR 5.00 crores, in the private sector to regulate
issue of bank notes, securities, monetary stability in India and to operate the currency and
credit system of the country for its economic development.Later, after independence in
1947, the entire share capital was acquired by the Government of India and the RBI was
nationalized in 1949.

State Bank of India gets its name

In 1955, the State Bank of India (SBI) Act was passed by nationalizing the Imperial Bank of
India and SBI was born with the objectives of providing banking facilitated on a large scale
in rural and semi-urban areas for various public purposes. Nationalization of Imperial Bank
of India heralded the entry of public sector culture into commercial banking in 1959, SBI
(subsidiary banks) Act was passed and the following eight banks were formed, viz State
Bank of Bikaner, State Bank of Jaipur, State Bank of Indore, State Bank of Mysore, State
Bank of Patiala, State Bank of Hyderabad, State Bank of Saurashtra and State Bank of
Travancore.

Bank nationalization

Apart from the SBI, 14 commercial banks having deposits of INR 50 crores and above were
nationalized on July 19, 1969 and again on April 15, 1980 ,6 banks having deposits of INR
200 crores and above were nationalised. Justifying nationalization, the former prime
minister, late Indira Gandhi, in a broadcast to the nation, had stated:

At the time of nationalization of banks in the year 1969, the data pertaining to commercial
banks were as shown in Table 2.

Table 2 (INR in crores)
Type of Commercial Banks Branches Deposits Advances
State Bank of India 1,569 948 966
SBI Associates 893 291 219
14 Nationalised Banks 4,134 2,627 1,813

7
Total Public Sector Banks 6,596 3,866 2,998
Private Banks 1,666 774 574
All Commercial Banks 8,262 4,640 3,572
Share of PSBs 80% 83% 84%

Current Composition of banking services

The bulk of India's banking system is made up of the "Scheduled Commercial Banks"
(SCBs) which includes both the Public Sector banks (PSBs), in which the government must
retain a stake of more than 51% and the Private Sector banks. The latter include the "Old
Private sector" banks that have been around for decades and the "New Private sector
banks that came into existence in the past twenty years during India's financial reforms and
include newly established banks such as Yes Bank, Axis bank and existing institutions that
were converted into commercial banks, such as the former development institution ICICI
and specialized lenders such as HDFC.

Public Sector Banks hold 74% of Total Assets
Privare Sector -19 %
Foreign Banks-7 %

BANKS ROLE IN INDIAN ECONOMY

In the economic development of India, banks have played significant role in the following
areas, sectors and fields:

Payment and settlement system through cheque.
Capital formation
Creation of money/credit
Bridging the organized and unorganized sectors.
Impetus to rural and semi-urban development.
Entrepreneur and small enterprise development.
Helping agriculture, small scale industries (SSIs), weaker section, etc.
Regulation of national savings.
Development of infrastructure through project financing.
Maintenance of balance of trade
Promotion of export trade.
Sectoral development through prioritization of credit deployment/delivery.
Catalyst in the social change and rural development.
Taking banking system to rural and remote areas and significantly redeeming the
rural populace from the clutches of the private money lenders.
Speedy funds transfer.
Direct and indirect job opportunities.
Minimisation or avoidance of diversion of funds for unlawful activities such as
speculation, hoarding terrorism etc.
Removal of regional disparities in the economic development.
Helped in implementation of various welfare measures initiated by the government.
Reducing the concentration of wealth in the hands of few industrialists.

It was noticed that commercial banks were directing their advances to large and medium
scale industries, ignoring the priority sector such as agriculture, SSI, exports etc. Hence
social control was brought in with the aim to regulate social and economic life so as to

8
obtain the optimum growth rate for our economy and to prevent at the same time,
monopolistic trend, concentration of economic power and misdirection of resources.

Private sector banks indirectly motivate the PSBs by offering a healthy competitive
environment through:

a. Professional management
b. Healthy competition
c. Encouragement of foreign investment
d. Access to foreign capital markets
e. Innovation and expertise

As per the present governor of RBI, all villages having population of over 2,000 have
already been linked to banking/financial services by 2012. Financial inclusion provides
tremendous challenges and opportunities at the bottom of the pyramid of population and it
all depends on the penetrating capacity of the institutions.

Technology adoption
PSBs have fully computerized their branches through core banking solution or centralized
banking solution. Also banks have introduced Electronic Funds Transfer (EFT), Real Time
Cross Settlement (RTGS), cheque truncation, mobile banking, Internet banking, etc. for
effecting and ensuring quick as well as efficient transfer of funds between banks. Innovative
banking through ATMs, phone banking, virtual banking, e-banking, Internet banking, Mobile
banking etc. has come a long way in satisfying the ever increasing needs of the younger
generation.

Mobile banking is likely to revolutionise the banking practices in India, for the reason that
there are more mobile subscribers than the combined strength of bank account holders and
credit/debit card users. Therefore, mobile banking has good potential for improving the
financial inclusion proposition initiated in India. Quite a bit of money would flow wireless on
mobile networks, from different strata of populace. Mobile banking is an effective tool to
manage funds at any point of time, wherever one is placed. By simply owning a mobile,
anyone can become a bank customer. Banks tap the opportunity to access a whole set of
customers who otherwise could not have entered a bank by themselves, without the bank
opening a new branch nearby. Mobile banking is actually a graduation from ATM, both of
which with adequate security measures are going to revolutionise the banking concept.

In terms of the recent guidelines of RBI, banks which have implemented core banking
solution may put in place daily/monthly transaction limit depending on banks own risk
perception for mobile banking so as to facilitate small ticket transaction. Putting in place a
stable Unique Identification Number for the growing Indian populace would enable reaching
and streamlining of banking through financial inclusion.

Reforms and the way forward
Sound banking system, playing a crucial role in the financial system, stimulated economic
growth by mobilization of mass savings and allocate efficiently the resources for productive
and consumption purposes. During the last -2- decades in banking, quite a good number of
reforms have been initiated and few more are expected in days to come.

9
CONCLUSION

In the past 60 years, Indian banking scenario has dramatically changed benefiting the elite
class through technology leverage and the mass populace below the poverty line (BPL)
through financial inclusion.

Nationalization of banks, opening up the sector for private banks during the last decade,
thrust given on priority sector lending, export credit, financial inclusion, universal banking,
consolidation, takeover, core banking mechanism through technology leverage, etc have
paved way for enlarging the customer base and reach. Population per branch has
significantly come down during the last 60 years.

Banking services are now oriented to anyhow, anywhere, anytime and any type of banking
as change is the only certainly that would govern banking. Nevertheless, following financial
liberalization for the past nearly 2 decades, the deposit pattern has undergone change as
the household sector share in the deposits has been on the declining trend from more than
69 percent to less than 59 percent, as revealed in the RBI Report on Currency and Finance.
Consequent to the nations commitment to the World trade Organization, sea change is
expected in the way banks function in the country, as it would be customer friendly and
tailor made to suit the needs of various clients. PSBs may lose their market share in the
business as one cannot have the cake and eat it too.

The challenges before the banking leaders are to successively drive the socioeconomic
agenda of the government and yet at the same time retain the commercial competitiveness.
After a period of full in branch expansion on account of click and mouse banking of new
generation banks, the PSBs as well as the new generation private sector banks have
turned their attention to brick and mortar banking, either through the organic or inorganic
growth/expansion. Branch expansion in the remove corners of the country,
operationalisation of various developmental and rescue schemes for the common man and
ensuring their success while improving the overall efficiency are the challenges ahead of
the banking leaders.

Banks in India can ill-afford to play fast and lose by throwing risk management away
through the window. They need to stick to core competencies rather than venture into
financially engineered derivative products which have resulted in economic downturn in the
western countries. A banker can only be a banker and if he has to be someone else in the
complex financial products, he may have to face the same crisis as we see in the US or
Europe. Banking system in India is surviving the onslaught of financial turnmoil, witnessed
in US and Europe, mainly because of conservative policies, close monitoring by regulator
and periodical guidance from the RBI and finance ministry.
In the next couple of years or so, nearly 50 percent of the banking populace would retire as
most of them were recruited during the nationalization and large scale branch opening
periods. With technology advancement, higher business coverage through core banking
platform, tendency for outsourcing, the banking personnel strength is expected to slim down
drastically from the present level of nearly 8 lacs and get rationalized.

The growth achieved on account of the spread of banking culture through the length and
breadth of the country during the last 40 years since nationalization and also 63 years since
independence is quite unparalleled in the international banking scenario.

Annexure:

10
Significant Developments in Indian Banking

Year Development
1955 Imperial Bank of India nationalized and renamed as State Bank of India to pave
way for social banking
1962 Deposit Insurance Scheme to protect the interest of depositors was introduced
with an amount of INR 1,500/-.
1968 Scheme of Social Control over Banks was introduced. National Credit Council
was set up to set lending targets for commercial banks.
1969 14 major banks with deposit base of INR 50 crores and above were
nationalized so as to platform for branch expansion. Since then, population per
branch came down drastically from 65,000 in 1969 to around 15,000 in 2009.
1970 Focus was shifted from trade and business to agricultural farm credit and small
industries.
1972 Lead Bank Scheme was launched to provide impetus to rural and backward
areas.
Differential Rate of Interest with low interest rate on the loans to poor borrowers
DRI scheme was introduced with a direction of 1 percent of credit to be under
DRI scheme, 40 percent of which to go to SC/ST sectors, resulting in significant
contribution for business entity towards margin money.
1975 Five Regional Rural Banks (RRBs) set up and formulated.
Though Tandon and Chore Committee, scientific lending norms were
introduced so as to deploy the funds that were scare when credit squeeze was
prevailing and also to ensure that borrowers stake is crystallized.
1976 Regional Rural Bank was set up with the central government, sponsoring bank
and the state government contributing 50:35:15 ratio in capital formation.
1978 Deposit Insurance and Credit Guarantee Corporation (DICGC) was established.
1979 Integrated Rural Development Programme (IRDP) was launched to benefit the
rural populance.
1980 Six more banks were nationalized and class banking changed into mass
banking.
20 Point Programme was introduced to ensure efficient production and
distribution of essential goods and services to the community and to raise
income and standard of living of weaker section.
1982 NABARD and EXIM bank came into existance
1983 Scheme for Self Employment for Educated Unemployed Youth was introduced.
1985 Nomination facility introduced
1988 Introduction of capital adequacy requirements as part of Basel Committee
norms.
1989 Service area approach
1991 Financial sector reforms, akin to what is practiced in western countries, were
introduced.
1992 Securities scam surfaced and shocked the banking sector with the undesirable
link with the capital market.

11
1992-
1993Rs.
Narasinhman Committee First Report on Financial Sector reform
Income Recognition & Asset Classification (IRAC) norms introduced. Standard
assets, non-performing assets (NPAs)- substandard, doubtful and loss assets,
capital adequacy, phasing out directed credit programme, deregulation of
interest rate, slowly waning out the health code system, etc. resulted in banks
reporting net loss, depending on certain norms.
1994 Photograph in deposit a/c
1993 Deposit insurance amount raised to INR 1 lac per depositor.
1994 Introduced Board for Financial Supervision so as to focus on regulation.
1995 Put in place Off-Site Monitoring and Online Supervision (OSMOS) mechanism.
1995 Banking Ombudsman
1996 New Private sector banks were allowed entry with certain stipulated minimum
capital funds.
1998 Narsimham Committee: Second Report. PSBs allowed total capital market
through public issue of shares.
1999 Asset Liability Management (ALM) concepts were introduced as risk
management
2001 Term lending institutions turned into universal banks to share the cake with
PSBs.
2002 The Know Your Customer (KYC) norms strengthened to check money
launching.
Securitisation & Reconstruction of Financials Assets and Enforcement of
Security Interest (Sarfaesi) Act was passed to strengthen the hands of banks in
the recovery of impaired loan assets, without going through the lengthy legal
process.
2003 The first financial asset reconstruction company, viz. Asset Reconstruction
Company (India) Ltd. (ARCIL) was formed.
2005 RBI issued draft guidelines on Basel II norms released by Bank for International
Settlements (BIS) in June 2004.
2007 Final RBI guidelines were issued on Basel II norms for compliance.
2008 Banks with international presence complied with the Basel II norms in March
2008
RBI set up Financial Literacy and Credit Counseling (FLCC), as a step to
encourage financial inclusion concept.
2009 Banks without international presence were also required to comply with Basel II
norms by March 2009.
With effect from April 2009, the foreign investors can have stake in banks, up to
a maximum of 74 percent, up from, 25 percent.
As part of rationalization of capital market public issue collection, concept of
Application Supported Blocked Amount (ASBA) is introduced.

12
EMERGING TRENDS IN BANKING

Regulatory Ratio at a Glance:
CRR (Sec 42, RBI Act): 4%, of net demand and time liabilities, to ensure liquidity and
solvency to be kept with RBI.
SLR (Sec 24 , B. R. Act): 23%, Cash in hand, Gold owned by bank, Balance with
RBI/SBI and Investment in unencumbered approved government securities.
Bank Rate: 8.75 %, Rate at which RBI lends to Banks/FIs.
Repo Rate: 7.75 %, Injection of liquidity by RBI.
Reverse Repo Rate: 6.75 %, Absorption of liquidity by RBI.

Provisioning requirements for restructured loans

RBI is going to increase the banks provisioning requirements for restructured loans,
classified as standard assets and has proposed a five per cent provisioning for all new
standard restructured loans of banks with effect from April 1 in its draft guidelines issued. It
also has proposed a phased increase in provisioning on existing restructured loans to five
per cent by March 2015.

Earlier, banks had to provide just two per cent for restructured loans but RBI raised the
provisioning by 75 basis points to 2.75 per cent in its second-quarter review of monetary
policy on October 30, pending issue of final norms on the issue.

According to the new draft norms released, banks and financial institutions will have to
achieve 3.75 per cent provisioning on existing standard restructured loans by March 31,
2014 and provide five per cent for all recast loans by March 31, 2015.

RBI said the new provisioning requirements might put pressure on banks, but the central
bank will take into consideration stakeholders views before finalising the guidelines. The
RBI has called for comments on the draft guidelines on or before February 28.

Separately, RBI Deputy Governor told that the central bank was in dialogue with market
participants over a possible move to align the held-to-maturity ratio with the statutory
liquidity ratio. Currently, the held-to-maturity ratio is 25 per cent and the statutory liquidity
ratio is 23 per cent.

Banking laws amendment bill, 2011

The government introduced a bill in the Lok Sabha that seeks to align voting rights in
private banks with shareholding, enhance the central bank's regulatory powers over banks
and give greater freedom to state-run banks to manage their capital.
The Banking Laws (Amendment) Bill 2011, proposes to raise the ceiling on voting rights of
shareholders of nationalised banks from 1% to 10%. The higher voting rights will help the
government attract capital in state-run banks. It also empowers state-run banks to issue
bonus shares and make rights issues to raise capital for expansion and meet regulatory
requirements. For private sector banks, it removes the voting right restriction of 10% and
aligns it with actual shareholding. The amendments will also enhance the regulatory
powers of the Reserve Bank of India (RBI) and enable nationalised banks to increase or
decrease their authorised capital with approval from the government and the RBI. These
banks have a capital ceiling of 3,000 crore. In addition, the Bill proposes to confer powers
upon the RBI to impose conditions it deems necessary while granting approval for
acquisition of 5% or more share capital of a banking company.

13
The amendment will also empower the banking regulator to seek information and
returns from associate enterprises of banking companies besides inspecting them.

Guidelines for Licensing of New Banks in the Private Sector

The Reserve Bank of India issued the final guidelines for new bank licences, allowing any
type of company to apply for a permit, paving the way for new banks after nine years. RBI
said it would allow applications till July 1. No specific industry was barred from applying,
although draft rules issued in August 2011 had barred real estate companies and
brokerages.

But the central bank has put stiff conditions. For example, the guidelines said a promoter
groups business model should not be misaligned with the banking model and its business
should not potentially put the bank and the banking system at risk on account of group
activities which are speculative or subject to high asset price volatility.

NEW LENDER GUIDELINES:

RBI said successful applicants have a year to set up a bank.
The new banks must make a stock market listing within three years.
It said the aspirants will have to set up non-operative financial-holding companies
(NOFHC), which should hold a minimum 40 per cent of the equity capital in the bank.
This has to be reduced to 20 per cent within 10 years and 15 per cent in 12 years
from the date of start of business. An NOFHC will be registered as a non-banking
financial company with RBI and will be governed separately.
At least half the directors at such holding companies shouldnt be connected to the
founder groups, RBI said. Entities, groups should have a record of sound
credentials and integrity, be financially sound with a successful track record of 10
years.
The minimum equity capital required for setting up a bank under the new rules is Rs
500 crore. Foreign shareholding shouldnt exceed 49 per cent in the first five years.
The new banks must open at least a fourth of its branches in rural areas a
condition, many experts said, almost impossible to achieve.

RBI said applicants meeting the eligibility criteria might not get a permit. Feedback on the
applicants will be sought from enforcement and investigative agencies, it said. Public sector
entities will be allowed to apply for a licence. The draft norms had talked about private
sector entities only. Companies that have expressed interest in setting up banks include
L&T Finance Holdings, Aditya Birla Financial Services, Shriram Transport Finance, Tata
Capital, Reliance Capital and Bajaj Finserv., Religare Enterprises and Mahindra Financial
Services.
Banks urging individual borrowers to buy covers

Banks in the country are urging individual borrowers to secure their loans by purchasing
insurance policies amid growing concerns that non-performing assets (NPAs) are likely
to increase in the country.
The country's banks have enjoyed lower levels of NPAs. However, there are growing
concerns that many borrowers might be unable to replay loans in the coming months.
According to banking officials, both public and private sector banks are convincing their
customers to buy policies to cover their personal loans and overdraft facilities

14
RBI scraps limit on mobile transactions

Reserve Bank of India (RBI) has announced its decision to do away with the limit of Rs
50,000 per customer per day imposed on mobile transactions. The limit on mobile
transactions was imposed in 2009 by the regulator. Under the new rules, the banks will
be allowed to fix their own limit on mobile transactions for customers in the country. The
RBI had issued guidelines on mobile banking transactions in India in 2008 and had
placed certain monetary restrictions on fund transactions.

Banks should have to reduce their bulk deposits

Recently, RBI has instructed the banks to shed off their bulging bulk deposit portfolio.
Some banks in the country have started including BOB for which even they may reduce
rates for bulk deposits. This move will help the banks to go for the race to increase
savings account interest rates in order to attract more customers. However, state-run
banks appear more cautious in increasing their rates.

Damodaran committee recommendations on Customer Service:

The Committee, headed by former SEBI chairman M Damodaran, was set up by the
central bank to look into the issues of customer services and evaluate the existing
system of grievance redressal mechanism prevalent in banks, its structure and efficacy
and recommend measures for expeditious resolution of complaints to strengthen the
Banking Code and Standard Board of India (BCSBI) further.
The Reserve Bank of India (RBI) has accepted 88 out of the 230 recommendations
made by the Damodaran committee on customer services. Sources say that the 88
recommendations, where bankers had consensus, include recommendations such as
banks should sell standalone financial products and not bundle it with any other
product, have been accepted by the RBI.

Tightening Shadow Banking activities:

The Reserve Bank of India (RBI) is looking at shadow banking activities closely and
has tightened the regulations accordingly. Next on the agenda is increasing the
surveillance on shadow banking.
According to RBI, the unprecedented increase in shadow banking was a reason for the
global financial crisis of 2008. Strengthening regulations on such businesses have been
addressed in the Basel-III norms, proposed to become applicable from 2017-18.
Lately, non-banking finance companies (NBFCs) have attracted the central banks
attention for various reasons. RBI said, We are pro-NBFC, but it being essentially a
part of the shadow banking system, it has to be tightened under Basel-III norms.
According to the draft, banks would get time up to March 2017 to meet capital
adequacy norms. Basel implementation has been made longer to ensure least
disruption, as banks earnings are likely to come under pressure due to the higher
capital requirements. Banks would need to raise productivity to protect return on equity.
RBI has set up a committee to look into ways of developing a fixed rate loans model in
the current interest rate environment.

Deregulation of Savings A/c interest rate

Recently, the RBI said banks are free to determine their savings bank deposit interest
rate, subject to the following two conditions:

15
First, each bank will have to offer a uniform interest rate on savings bank deposits up to
Rs 1 lakh, irrespective of the amount in the account within this limit. Second, for savings
bank deposits over Rs 1 lakh, a bank may provide differential rates of interest, if it so
chooses but should not be discriminated from customer to customer.

Till date barring few small banks, no any bank has changed the SB interest rate.
Banking by the year 2015:
The survey was conducted by IBM research unit on future banking scenario, which
revealed five key trends that will determine market success in 2015:
Customers take control- Customers will be smart, informed and savvy users of
financial services. They will only be interested in service providers that can meet
their very specific individual needs.
Specialized niche competitors- Market consolidation will continue, making the
mega banks even bigger. But they will face many competitors including
community banks, industry specialists and non-bank banks that specialize in
providing specific services. Partner-competitor relationships will arise.
A new workforce- The need for productivity and efficiency will create new
labour and work practices. But there will also be intense competition to attract
and retain talent.
Regulated transparency- The need to comply with globally enforced standards
of transparency and accountability will force the adoption by banks of integrated,
enterprise-wide systems and processes.
Sharply focused technology- The enabler of all this change will be technology
that supports rapid, accurate decision making and greater operational flexibility
and efficiency. The successful specialists will be those who can track and
analyze specific customer needs and speedily meet them with profitable, reliable
products.
Even, banks will source products and services from many specialized and best-
in-class service providers, including independents and other banks providing
white-label products and services. Innovation in products, processes,
relationships & business models will be the primary path to sustainable growth.

Installing Off-site ATM

As per the guidelines of RBI, the customer maintaining Saving Bank A/c may withdraw
the money from any Banks ATM, 5 times with ceiling of Rs.10000 per transaction
during any calendar month without any charge. Now, even balance enquiry also
considered as a transaction (towards max.5 free transaction). But for such transactions
certain charge has been prescribed by RBI which is to be paid by the Customers Bank
to the Bank whose ATM is being used. Also, this facility is available free of cost to only
Saving bank a/c holders and other a/c holders may enjoy this facility @Rs20 per
transaction.

So, now individual Bank has to formulate its strategy regarding installation of new
ATMs or sharing of other Banks ATM. This is emerged as a new area of commission
income and even banks are now focusing on other Banks ATM where queue is there,
so that an additional ATM can be installed, just to tap the commission income.

16
RBI tightens salary account opening rule:

The RBI has directed banks to ask for one more proof such as Passport, Driving
licence, PAN card, Voters identity card or utility bills, in addition to the certificate
issued by the employers while opening salaried bank accounts. RBI feels that
insistence on two documents will reduce the chances of misuse of account.

Foreign banks must be locally incorporated:

After the global financial crisis, regulators the world-over are insisting local
incorporation to ensure that local businesses are not hurt if there is another any such
unpleasant event. Incidentally, incase of banks present in India, such protection is
already present, as foreign bank branches are required to maintain capital locally and
meet prudential guidelines on capital adequacy & exposure limit. Even that, RBI now
wants to conversion of foreign bank branches into wholly-owned subsidiaries, to
exercise better control over the operations of foreign banks in India.

News having impact on banking:

Postal deptt. gets RBI nod for launch of prepaid debit cards (Rs.1000 to
Rs.50000) & to install ATMs.
RBI allows RRBs to open branches in Tier- II centre without prior approval.
Bank-wide portal for best services, where customer can enquire about the
return on deposit, cost of advances, etc.
RBI wants to do away with post-dated cheques in all fresh loans and also
debating to put the charge on cash deposits and withdrawals in current
accounts above certain limits by the banks
Setting of a Centralised KYC registry Cell for the entire financial sector through
implementation of UCIC (Unique Customer Identification Coce).

17
TEST YOUR UNDERSTANDING

1. RBI was established in
a) 1935
b) 1940
c) 1949
d) 1955
e) 1950

2. In India financial sector reforms started in
a) 1985
b) 1988
c) 1991
d) 1995
e) 2000

3. Composition of Indian Public Sector Banks, Pvt Sector Banks and foreign Banks in
terms of total assets are
a) 40%,30% &30%
b) 50%, 30% &20%
c) 60%,30% &10%
d) 69%,21% &10%
e) 74%,19% &7%

4. IRAC norms stand for
a) Income realisation and asset classification
b) Income recognition and asset classification
c) Income recognition and asset consolidation
d) Interest realisation and asset classification
e) Iiterest realisation and asset consolidation

5. BCSBI stands for
a) Banking company and standard Board of India
b) Banking codes and standard Board of India
c) Banking codes and strategy Board of India
d) Banking company and strategy Board of India
e) Banking codes and supervisory Board of India

Q 1 2 3 4 5
A A C E B B

18
Know Your Bank

Quick Bites

Bank of Baroda was established on 20
th
July, 1908 at Baroda by ruler of erstwhile Baroda
State, His Excellency Maharaja Sayajirao Gaekwad-III.
Ten banks have merged with BOB till date.
Our logo, the Baroda Sun reflects our corporate brand identity.
As on 28-02-2013, our Bank is having 4171 branches, 56 Regional offices and 13 Zonal
offices in India.
We also have one Life Insurance and one Mutual Fund joint venture.
We have -98 overseas branches and offices spread over -24- countries.
In our International presence, we have -8- subsidiaries and -2- joint venture.
Bank has kick started a comprehensive change programme called Project Navnirmaan
focusing on business process Reengineering . Banks Branches are redesigned as Baroda
Next branches with beautiful layouts and more effective roles.
As a part of said project, Bank has also established -51- SME Loan Factories ,and -40-
Retail Loan Factories for fast delivery of our products.
To facilitate Financial Inclusion, Bank has established -52- Baroda Grameen Pramarsh
Kendras (BGPK) and -47- Baroda Swarojgar Vikas Sansthan (BSVS)
Bank has also undertaken another important Project SPARSH for bringing excellence in HR.
In 201112 Banks total business grew by 25.9% to Rs 6,72,248 crores and net profit grew
by 18% to Rs 5,006.96 crores.
Total Business up 17.1% (y-o-y) to Rs 7,14,051 crore by end-Dec, 2012
Net NPAs (%) at 1.12% as on 31s Dec, 2012
Total Staff as on 1
st
March 201342118 in which officers composition 17035.

Our Mission:

Glorious Past:
Bank of Baroda made a humble beginning on 20
th
July 1908 as Bank of Baroda Limited and
was registered under the Baroda Companies Act of 1897, with a paid up capital of Rs. 10
lacs. Ruler of erstwhile Baroda State, His Excellancy Maharaja Sayajirao Gaekwad-III
founded the Bank.

19
Bank of Baroda has completed long,
eventful and glorious journey of more
than 104 years. Bank has record of
making uninterrupted profits during all
these years.
Soon after establishment, the Bank
extended its operations to three other
commercial centres of Gujarat namely,
Surat, Mehsana and Navsari.
In 1919, the Bank crossed the state
frontiers by setting up Mumbai Main
Office.

Recent Picture of Baroda Main
Office, our Banks Ist Branch

In the year 1935 Bank became a scheduled Bank. RBI included the Bank in the second
schedule of RBI. The first safe deposit lockers were provided at Baroda in 1939.
At the time of independence in 1947, Bank of Baroda was a regional bank with 48
branches. However, it found a place in Indias Fortune Five list of Banks. During 1953
1958, Bank opened 30 new offices and had become an all-India Bank. As many as ten
banks have merged with Bank of Baroda during its journey so far:
Hind Bank Ltd (1958)
New Citizen Bank of India Ltd (1961)
Surat Banking Corporation (1963)
Tamil Nadu Central Bank (1964)
Umbergaon People Bank (1964)
Traders Bank Limited (1988)
Bareilly Corporation Bank Ltd (1998)
Benares State Bank Ltd (2002)
South Gujarat Local Area Bank Ltd (2004)
Memon Cooperative Bank Limited (2011)

Vibrant Present
Our Logo

Our logo, the Baroda Sun is a unique representation of a universal symbol. It comprises
dual B letterforms that hold the rays of the rising sun. The sun is an excellent
representation of what our Bank stands for. It is the single most powerful source of light and
energy- its far reaching rays dispel darkness to illuminate everything they touch. The single-
colour, compelling vermilion palette stands for hope and energy. At Bank of Baroda, we
seek to be the source that will help all our stakeholders realise their goals. To our customer,
we seek to be one-stop, reliable partners who will help them address different financial

20
needs. To our employees, we offer rewarding careers and to our investors and business
partners, maximum return on their investment.

We also recognize that our bank is characterized by diversity. Our network of branches
spans geographical and cultural boundaries and rural-urban divide. Our customers come
from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for
our brand because it is a universal symbol of dynamism and optimism it is meaningful for
our many audiences and easily decoded by all.

Our corporate brand identity is a signal that we recognize and are prepared for new
business paradigms in a globalised world. At the same time, we will always stay in touch
with our heritage and enduring relationships on which our bank is founded. By adopting a
symbol as simple and powerful as the Baroda Sun, we hope to communicate both.

Board of Directors

The constitution of the Board of Directors is governed by the provisions of the Banking
Regulation Act, 1949, Banking Companies (Acquisition and Transfer of Undertakings Act,
1970, Nationalised Banks (Management & Miscellaneous Provisions) Scheme, 1970, which
satisfies the requirements of Corporate Governance as envisaged in the Listing Agreement.

Board of Directors

Sh S S Mundra
Chairman &Managing Director

Sh sudhir Kumar Jain Sh P. Srinivas Sh Ranjan Dhawan
Executive Director Executive Director Executive Director

Sh Alok Nigam Sh Sudershan Sen Sh Ajay Mathur
Govt Director RBI Nominee

21

Sh.V.B.Chavan Sh Vinil Kumar Saxena Sh Satya Dev Tripathi

Sh Maulin Vaishnav Sh Surendra Singh Bhandari Sh Rajib Sekhar Sahoo

22
I. Organizational Set Up

(a) Banks Administrative Set Up:
Banks administrative set up is depicted as under:

BARODA CORPORATE OFFICE & HEAD OFFICE, BARODA

EXECUTIVE
DIRECTOR

OVERSEAS
BRANCH
BANKING
DOMESTIC
OPERATIONS

INTERNATIONAL
OPERATIONS

B

DOMESTIC
FOREIGN
BUSINESS

OVERSEAS
SUBSIDIARIES

EXECUTIVE
DIRECTOR
EXECUTIVE
DIRECTOR

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

ASSOCIATES &
SUBSIDIARIES

ZONAL OFFICE
CORPORATE GENERAL MANAGERS
MUMBAI

REGIONAL OFFICE

A

H

BACK OFFICE SUPPORT- SMELF/RLF/RBO/CBO/CSO

KNOWLEDGE SUPPORT BARODA ACADEMY

R

N

C

23

(Baroda Corporate Centre, Mumbai)
Corporate Office

(Baroda House, Mandvi, Baroda)
Head Office

At the apex level, we have Head Office at Baroda and Corporate Office at Mumbai. Whole

India is divided into -13- Zones and -56- Regions as given below:

Sr.
No
Name of Zone Name of Regions
1. Greater Mumbai 1. Mumbai Metro North
2. Mumbai Metro South
3. Mumbai Metro East
2. Maharashtra & Goa 1. Aurangabad
2. Goa & Western Maharashtra
3. Nagpur
4. Pune
3. South Gujarat Zone 1. Baroda
2. Bharuch
3. Bulsar
4. Panchmahal
5. Surat
4. North Gujarat Zone 1. Ahmedabad
2. Anand
3. Jamnagar, Junagadh & Kutch
4. Mehsana
5. Rajkot
5. Rajasthan 1. Ajmer
2. Bharatpur
3. Jaipur
4. Jodhpur
5. Kota
6. Udaipur
6. Northern 1. Delhi Metro I
2. Delhi Metro II
3. Chandigarh

24
4. Indraprasth
5. Punjab, Jammu & Kashmir
7. Tamil Nadu & Kerala 1. Chennai Metro
2. Kerala
3. Tamilnadu
8. Karnataka & AP 1. Andhra Pradesh-I
2. Andhra Pradesh-II
3. Karnataka
9. Eastern 1. Kolkata Metro
2. North East
3. West Bengal & Sikkim
10. Eastern U.P. 1. Allahabad
2. Faizabad
3. Kanpur
4. Lucknow
5. Sultanpur
6. Raibareli
7. Varanasi
11. Western U.P. & Uttrakhand 1. Agra
2. Bareilly
3. Dehradun
4. Haldwani
5. Sahjahanpur
12. M.P. & Chhattisgarh 1. Bhopal
2. Indore
3. Raipur
13. Bihar, Jharkhand & Orissa 1. Bihar
2. Jharkhand
3. Muzaffarpur
4. Orissa

(b) Banks Network:
At present the Bank is having total network of 4171 branches in India (as on 28-02-2013).

2732
2853 2926
3100
3364
3909
4171
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY07 FY08 FY09 FY10 FY11 May/12 Feb-13
No. of Domesti c Branches

25
Regional Break-up of
Domestic Branches as on 28 Feb 2013
Metro Urban Semi-Urban Rural
889 758 1,132 1,392

We have one State of Art, Specialised Integrated Treasury Branch (SITB) in Mumbai,
which is looking after investments, liquidity and forex management for the bank in addition
to maintenance of SLR & CRR requirements.

Indian Subsidiaries & Joint Ventures
The Bank has following Indian Subsidiaries:
1. BOBCARDS Ltd.
2. BOB Capital Market Ltd.
3. The Nainital Bank Limited

The Bank has one Life Insurance joint venture, India First with Andhra Bank and Legal
& General of UK.
The Bank has one Mutual Fund joint venture called Baroda Pioneer Asset
Management with Pioneer Investments.
Our Bank has sponsored following Regional Rural Banks (RRBs):

(1) Baroda Uttar Pradesh Gramin Bank, Raebareli
(2) Baroda Rajasthan Gramin Bank, Ajmer
(3) Baroda Gujarat Gramin Bank, Bharuch
(4) Nainital Almora Kshetriya Gramin Bank, Haldwani
(5) Jhabua Dhar Kshetriya Gramin Bank, Jhabua

International Presence: Sun never Sets in Bank of Baroda

26
In the year 1953, taking a pioneering step, the Bank opened its first overseas branch at
Mombasa, Kenya on 14.12.1953 followed by two other branches at Kampala and Nairobi.

Subsequently, operations started in Dar-Es-Salaam in 1956 and in London in 1957. This
was a great new beginning in the development of foreign exchange business. Since then,
the Bank systematically opened branches/offices in various territories.

At present, the Bank has an overseas network 98 branches / offices in the following 24
countries:

* Australia * Bahamas * Bahrain * Belgium * Botswana * China * Fiji Island * Ghana *
Guyana * Hong Kong * Kenya * Mauritius * New Zealand * South Africa * Seychelles *
Sultanate of Oman * Singapore * Tanzania * Thailand * Trinidad & Tobago * Uganda *
UAE * UK * USA*
The following are Banks overseas subsidiaries:

1. Bank of Baroda (Kenya) Ltd.
2. Bank of Baroda (Uganda) Ltd.
3. Bank of Baroda (Guyana) Inc.
4. Bank of Baroda (Botswana) Ltd.
5. Bank of Baroda (Tanzania) Ltd.
6. Bank of Baroda (Trinidad & Tobago) Ltd.
7. Bank of Baroda (Ghana) Ltd.
8. Bank of Baroda (New Zealand) Ltd.

The Banks presence in Zambia and Malaysia is through a joint venture.

Project Navnirmaan:

Navnirmaan is a comprehensive change programme that seeks to rebuild the Bank for the
future. This change programme shall touch all aspects of the Banks processes, structures
and systems with an objective to simplify processes, improve branch productivity and
provide best-in-class service to our customers. This is a change programme which seeks to
create the Baroda Next, the brand promise that we are making to our customers at large.
Our Bank has partnered with well known consultants M/s Mckinsey & Company to take
this project forward.

27

Navnirmaan has two main components:

Business Process Re-engineering (BPR) and
Organisational Restructuring (OR).

Business Process Re-engineering

Business Process Re-engineering has following objectives:
Improvement in branch productivity.
Best-in-class service levels for customer delight.
Redesign of front and back office processes and roles to reduce turnaround time and
to simplify processes.
Reduction in operating costs.

Organizational Restructuring:Organizational Restructuring has following objectives:

Appropriate organization structure and systems to support BPR and in line with
future business plans.
Sustainability of change programme through capability building.

To accomplish above objectives, following five different types of Back Offices are proposed:

1. Account Opening and Maintenance Lean Service Factory- Regional Back Office

This will accomplish following activities:

Account opening and enrichment Savings and Current Account.

28
Generation of debit card request file & i-track number file for internet banking.
Personalised cheque book issuance.
Printing of customer statements and other intimations.
CRM data entry.
Changes in customer account details.
Account closure.
Account opening, renewal and printing of term deposits.

2. Payment Processing Centre -City Back Office

More automation is proposed to be carried out at the existing City Back Offices so that
productivity of processing of cheques can be enhanced by 60%.

3. Credit Processing Centres - SMELF /Urban Retail Loan Factory

As part of business segmentation and to expedite our delivery mechanism, Bank has
established -51- SME Loan Factories and -40- Retail Loan Factories which work on
assembly line principal.

4. Business Intelligence Unit -Data Warehouse

Business Intelligence Unit will undertake following activities:

Generation of all MIS from CBS and ASCROM.
Analysis of MIS.
Communication of MIS to Branches, Regions, Zones and Corporate office.

5. Contact Centre

Bank has set up two Contact Centres in Lucknow & Baroda to fast address the customer
queries & grievances.

Signature Tune

During the year FY12, your Bank introduced its Brand in Sonic Medium by launching a
Signature Tune on the occasion of its Banks Foundation Day on 20th July, 2011. The
prime purpose was to highlight the spirit of the Bank as a vibrant and energetic organization
complementing the Logo. Your Bank will draw its mileage in positioning it strongly in the
global market.

Baroda Academy

Implementation of BPR and OR will require
learning of new skill sets for the employees.
To train the employees on new desired
skills, Staff College, Ahmedabad will be
converted into Baroda Academy.

29
Training Structure

Staff College Ahmedabad
Bank of Baroda Institute of
Information Technology
Gandhinagar
Training
Centres

Bareilly
Baroda
Bhopal
Chennai
Gandhinagar
Jaipur
Kolkata
Lucknow
Mumbai
New Delhi
Jamshedpur
Pune
Bangalore

30
NEW INITIATIVES TAKEN BY BANK

Major technology Initiatives:

As on 31
st
Dec 2011, the Banks entire domestic, overseas and RRBs [i.e., five sponsored
RRBs] related operations were on the CBS platform.
Bank has developed IT facilities for online/offline account opening through Business
Correspondents under Financial Inclusion.
Banks retail & corporate customers enjoy several facilities under its Internet Banking
Delivery Channel. The SMS alerts of transactions are also implemented in the Internet
Banking Portal.
Bank has implemented Internet Banking in 13 of its overseas territories, notably Oman,
Tanzania, Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE, Fiji, UK,
Ghana &Australia
Bank has also implemented RapidFunds2India solution in all the major territories.
Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3 standard
& a Disaster Recovery Site in different seismic zones to ensure uninterrupted banking
services delivery to customers.
Banks Mobile Banking (Baroda M-Connect) provides various facilities to its customers.
Anti Money Laundering (AML) has been implemented in India and 23 of Banks overseas
territories.
Bank has developed an Integrated Global Treasury Solution in its major territories like U.K.,
UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to achieve reduced
cost of operations & better fund management.
Bank has a centralised SWIFT system for India & its 23 overseas territories.
Internet Payment Gateway has been implemented to facilitate e-commerce transactions in
multi currencies across the globe.
Bank has introduced the facility of Multiple Accounts being linked to a single Debit Card
(verified by Visa, CVV2) and also Mobile Number registration thru ATMs in CBS for SMS
Alerts.
E-tax payments thru ATMs are also facilitated and Mobile ATMs are introduced in several
cities.
To provide safe online banking services to its customers & protect them from phishing attacks,
Bank has implemented a Fraud Management Solution.
Bank has set up two Contact Centres in Lucknow & Baroda to fast addresse the customer
queries & grievances.
Back Office functions have been centralised in the Bank at City Back Offices & ten Regional
Back Offices ( at Baroda, Jaipur, Lucknow, Bhopal, Coimbtore, Kolkata, Mumbai,
Jamshedpur, New Delhi & Pune) to improve the delivery of services.
Cash Management Solution is implemented to provide operational support to customers
ALM.
Baroda e-trading has been launched for Retail and Corporate customers.
Roll out of HRMS and Payroll.
Baroda e- Pay - Electronic Utility Bill Payment
Online Loan Application Educational Loan, Home Loan, Car Loan
Launching of Baroda Gift Card
Introduced Visa Platinum Premium Debit Card
Travel Card in foreign currency is introduced.
CTS -Cheque Truncation System implemented in Delhi and Grid based

31
CTS was implemented in Chennai, Coimbatore and Bangalore. CTS will be shortly
implemented in Western Grid also.

Corporate Social Responsibility:

Bank of Baroda has been in the forefront for social commitment with its innovative
approaches and products viz.

1. Baroda Swarojgar Vikas Sansthan
2. Baroda Grameen Paramarsh Kendras
3. Financial Literacy and Credit Counseling Centres (FLCC)

1. Baroda Swarojgar Vikas Sansthan

There are -47- Baroda Swarojgar Vikas Sansthan, the Bank has set up in 6 States of
Bihar,Uttar Pradesh, Uttarakhand, Rajashthan, Gujarat & Maharashtra for the following
purpose:

1. To train youth and impart them the knowledge and skill for taking up self employment
ventures.
2. To train youth to develop the attitude for working in rural areas, in rural development
projects.
3. To assist trained youth, in self employment as far as possible, in obtaining credit
facilities from bank / other financial institution and to assist them in setting up their
venture successfully.
4. To conduct various training programmes (either independent or in-collaboration with
other organization connected with rural technology, rural development and
entrepreneurship development.
5. To provide counseling and consultancy guidance with all possible help to the youth
in the field of Self Employment and Rural Development.

2. Baroda Grameen Paramarsh Kendras

The bank has established -52- Baroda Grameen Paramarsh Kendras as on 31-05-2012
where following activities are carried out:

Financial Education and Financial Inclusion
Information sharing and problem solving on technical issues
Credit counseling
Synergy and liaison with other organisations and development activities

3. Financial Literacy and Credit Counseling Centres (FLCC):

Bank has opened Financial Literacy and Credit Counseling Centres as a CSR initiative. The
centre opened is christened as SAARTHEE amply indicating its basic objective of steering
those under financial distress and educating to others to avoid financial mess. Presently
Bank has set-up 45 FLCCs

Banks HR Initiatives..

Focused hiring efforts on a sustained basis year on year, to cater to superannuation,
sustained business growth and rapid Branch expansion

32
Massive skill up-gradation and several structured long induction programmes were carried out for
the new joinees during FY13 to develop various Banking skills, esp. in the specialised areas of
Credit, Forex, Treasury, Soft Skills, etc.

Project Udaan:

A Large scale, comprehensive Leadership Development training programmes conducted

Project Sparsh:

A focused HR transformation project SPARSH has been initiated by the Bank - to revamp its
existing HR processes, structures and policies. Various initiatives like Talent management,
Succession planning, Creating a Scientific Staffing Model & Manpower Planning,, Development
and Capability Building, Performance Management, etc. have been undertaken during FY12.

Baroda Manipal School of Banking:

A school is opened as an innovative and new channel of resourcing of trained manpower in the
Bank. Around 180 students are being inducted into this school every quarter for a focused
grooming and a one-year full-time PG course in Banking is tailored to the Banks specific
requirements.

Financial Figures as on Dec. 2012

Operating Profit up 4.7% (y-o-y) to Rs 6,892 crore
Net Profit dn 1.1% (y-o-y) to Rs 3,452 crore -
Net Interest Income up 13.1% (y-o-y) to Rs 8,501 crore
Total Business up 17.1% (y-o-y) to Rs 7,14,051 crore by end-Dec2012
Total Advances up 14.8% (y-o-y) to Rs 2,99,318 crore by end-Dec, 2012
Total Deposits up 18.8% (y-o-y) to Rs 4,14,733 crore by end-Dec, 2012
Net NPAs (%) at 1.12% as on 31st Dec, 2012

33
AWARDS AND ACCOLADES FOR THE BANK IN FY12

Best Public Sector Bank (PSB) by CNBC-TV18 & MCX
Golden Peacock Award for Excellence in Corporate Governance by Institute of Directors &
World Forum for Corporate Governance received in London
Dainik Bhaskar India Pride Award for 2011
Most Efficient Bank in Kenya
Best Initiatives in Inclusive Banking FIBC Banking Award
Dun & Bradstreets Leading PSB in Global Business Development Category
National Award for Performance under SME Business
Award for Best Utilisation of Intellectual Resources
Best Growing Large Bank by Business World-PWC
Business Leadership Award by NDTV- Best PSB in 2011
Award for Excellence in Financial Reporting by ICAI in PSB category
Fastest Growing Large Bank by Business World-PWC
UTV-Bloomberg Financial Leadership Award
FM Stars Industry Brand Leadership Award
BOBs Brand Ranking has increased by 47 notches in a years time in Top 500 Banking
Brands by The Banker, London
Best Bank Award-2012

Awards for the Banks CEO (CMD)

Outstanding Financial Professional-2010 by CNBC-TV18 & MCX
Best Banker Award (T. A. Pai Memorial Award) by Karnataka State Open University
Lifetime Achievement Award by Dainik Bhaskar India Pride Awards
Banker of the Year by Business World-PW

34

1. Bank of Baroda established on
a) 20 july 1910
b) 15 aug 1908
c) 20 july1908
d) 26 jan 1910
e) 10 aug 1912

2. How many banks have been merged in BoB till date
a) 7
b) 8
c) 9
d) 10
e) 11

3. No of Regional and Zonal offices are
a) 56 &10
b) 50 & 12
c) 60 & 12
d) 56 & 13
e) 60 & 15

4. No of SME and Retail Loan factories are
a) 40 & 30
b) 51 & 37
c) 46 & 37
d) 51 & 40
e) None of these

5. Business Process Re-engineering does not include
a) Improvement of Branch productivity
b) Best in class service
c) Redesign of Back and Front office
d) Reducing operating cost
e) Increasing no of branches

6. Which of the following is not Back Office
a) RBO
b) CSO
c) Contact Centre
d) Data centre
e) ATM

7. Contact Centres are situated at

35
a) Gandhinagar & Baroda
b) Baroda & Ahemdabad
c) Baroda & Lucknow
d) Lucknow & Jamshedpur
e) Mumbai & Banglore

8. Which of the following work is not performed by Contact Centre
a) Reply routine queries
b) activate password
c) Stop payment of cheque
d) Hotlist Debitcards
e) Printing of passbook

9. Where apex training institute Staff College situated
a) Bareilly
b) Mumbai
c) Gandhinagar
d) Kolkota
e) Ahemedabad

10. In Baroda Next Branches which of the following has maximum outbound sales activity
a) UT
b) Host
c) CSR
d) RLM
e) Branch Head

Answers:
Q 1 2 3 4 5 6 7 8 9 10
A C D D D E E C E E D

36
VARIOUS LAWS RELATING TO BANKERS

Quick Bites

The Banking Regulation Act.
The Reserve Bank of India Act.
The Negotiable Instrument Act.
The Indian Contract Act.
The Indian Partnership Act.
The Companies Act.
The SARFAESI Act

Background:

Bank regulations are a form of government regulation which subject banks to certain
requirements, restrictions and guidelines. This regulatory structure creates transparency
between banking institutions and the individuals and corporations with whom they conduct
business, among other things.

Given the interconnectedness of the banking industry and the reliance that the national
(and global) economy hold on banks, it is important for regulatory agencies to maintain
control over the standardized practices of these institutions. The common objectives of
Laws are:
1. Prudentialto reduce the level of risk to which bank creditors are exposed (i.e. to
protect depositors).
2. Systemic risk reductionto reduce the risk of disruption resulting from adverse
trading conditions for banks causing multiple or major bank failures.
3. Avoid misuse of banksto reduce the risk of banks being used for criminal
purposes, e.g. laundering the proceeds of crime.
4. To protect banking confidentiality.
5. Credit allocationto direct credit to favored sectors.
6. It may also include rules about treating customers fairly and having corporate social
responsibility.

The Banking Regulation Act, 1949

Banking in India is mainly governed by Banking Regulation Act, 1949. The Reserve Bank of
India and the Government of India exercise control over banks from the opening of the
Branches to their winding up by virtue of the powers conferred under this statute.

It was enacted to consolidate and amend the laws relating to banking and to provide for
suitable framework for regulating the Banking Companies and covers co-operative banks
as well. The Act does not apply to primary agriculture societies, and cooperative land
development banks. The provisions of the act are applicable to banking companies in
addition to other laws, which are applicable to such companies.
The Act regulates entry in to banking business by licensing as provided in section 22
thereof. It also put restrictions on share holding, directorship, voting powers and other
aspects of banking companies. There are several provisions in the act regulating the
business of banking such as restrictions on loans and advances, provisions relating to rate

37
of interest, requirements as to cash reserve ratio, provisions regarding audit and inspection
and submission of balance sheet and accounts. The act also provides for control over the
management of banking companies.

Statutory Liquidity Ratio

According to Section 24 (2-a) of the Banking Regulation Act, every banking company in
India whether scheduled or non scheduled, is required to maintain in India in Cash, Gold
or unencumbered, approved securities an amount of which is not less than 24% of the
total of its demand and time liabilities in India. This is known as Statutory Liquidity Ratio
(SLR).

The Reserve Bank is empowered to increase this ratio. For calculating the SLR, the
following liquid assets are taken into account.

Cash in hand in India.
Balances in current account with the State Bank of India and its associates.
Balance maintained with the RBI in excess of the minimum CRR requirements.
Investments in Government Securities, Treasury Bills and other approved securities
in India.

However, the approved securities must be valued at a price not exceeding the current
market price. At present SLR is 23%

Reserve Bank of India Act, 1934

The Act was enacted on 6
th
March, 1934 to constitute the Reserve Bank of India and has
been amended from time to time to meet the demands of changing times. It has the
following objectives:

To regulate the issue of Bank Notes.
For keeping reserves for securing monitory stability in India and,
To operate the currency and credit system of the country to its advantage.

The Act deals with the following:

Incorporation, capital, management and business of the bank.
Central banking functions like Issue of Bank Notes, monitory control, acting as
banker to the Government and Banks, lender of last resort etc.
Collection and furnishing credit information.
Acceptance of deposits by Non Banking Financial Institution (NBFI).
Handling Reserve Fund, Credit funds, publication of bank rate, audit and accounts
etc.
Penalties for violation of the provision of the act or direction issued there under.

Important Provisions

Scheduled Bank

According to Section 2(e), Scheduled Bank means a bank whose name is written in the 2
nd

schedule of RBI Act, 1934 and which satisfies the conditions laid down in Section 42(6), -
Paid up capital and reserves of not less than Rs. 5 lac, satisfaction of RBI that the affairs
will not be conducted by the bank in a way to jeopardize the interests of the depositor. It

38
may be a State Co-operative Bank, a company defined in Companies Act, 1956, an
institution notified by Central Government for the purpose and a corporation or a company
incorporated by or under any law in force, in any place outside India. Any bank that is not
included in the 2
nd
Schedule of RBI is called Non-Scheduled Bank.

Bank Rate Policy

Section 49 defines it as The Standard Rate at which it (the bank) is prepared to buy or
rediscount bills of exchange or other commercial paper eligible for purchase under this Act.

By varying the bank rate, the RBI can to a certain extent regulate the commercial bank
credit and the general credit situation of the country. The impact of this tool has not been
very great because of the fact that the RBI does not have a mechanism to control the
unorganized sector. Further the money market in our financial system is not fully
developed, so that the Bank rate policy will have if desired impact on the financial system.
The present bank rate is 8.75 %

Cash Reserve Ratio

Section 42 defines the Cash reserves of scheduled bank to be kept with RBI. Every
scheduled bank has to maintain with RBI an average daily balance the amount of which
shall not be less than 3% of the total demand and time liabilities and shall not exceed 15%.
Presently the CRR is 4.00%

Inspection of Banks:

The most significant supervisory function exercised by the RBI is the inspection of Banks.
The basic objectives of inspection of banks are to safeguard the interests of the depositors
and to build up and maintain a sound banking system in conformity with the banking laws
and regulations as well as the countrys socio-economic objectives. Accordingly,
inspections serve as a tool for overall appraisal of the financial and managerial systems and
performance of the banks, toning up of their procedures and methods of operation and
prevention of serious irregularities.

The RBIs powers to conduct inspections are contained in various provisions of the Banking
Regulation Act, the most important being Section 35. This apart, inspections may be
necessary under the provisions of Section 23, 37, 38, 44, 44A, 44B and 45 of the Act.

Audit of Annual Accounts of Banks:

Banks have to close their books of accounts every year as at March 31
st
and prepare a
Balance Sheet and Profit and Loss account as prescribed in the III schedule of the Banking
Regulation Act. These annual accounts are required to be audited by auditors appointed by
the Bank each year with the prior approval of the Reserve Bank of India, as per Section
30(1A) of the Banking Regulation Act, in respect of private sector banks.

Section 10(1) of the Banking Companies [Acquisition and Transfer of Undertakings] Act,
1970 / 1980 provides for audit of annual accounts of banks in the case of nationalized
banks.

Negotiable Instrument Act, 1881

The NI Act, 1881 lays down the laws relating to payment of the customers cheques by a

39
banker and also protection available to a banker. The relationship between banker and
customer being debtor creditor relationship, the bank is bound to pay the cheques drawn
by his customers. This duty on the part of Bank to honour its customers mandate is laid
down in section 31 of the NI Act. Section 10, 85, 89 and 128 of the NI Act grants protection
to a paying banker.

Important sections of the Act are as under:

Various Sections under Negotiable Instrument Act, 1881

SEC. TERM MEANING
3 Banker Banker includes any person acting as a Banker and any post office
savings bank.
4 Promissory
Note
A Promissory Note is an instrument in writing, containing an
unconditional undertaking signed by maker, to pay a certain sum of
money only to or to the order of a certain person or to the bearer of
the instrument.
5 Bill of
Exchange
A Bill of Exchange is an instrument in writing containing an
unconditional order, signed by the maker, directing a certain person
to pay certain sum of money only to or to the order of a certain
person or to the bearer of the instrument. Here, the promise to pay
is not conditional.
6 Cheque A cheque is a Bill of Exchange drawn on a specified banker and not
expressed to be payable otherwise then on demand and it includes
the electronic Image of a truncated cheque & a cheque in the
electronic form.
7 Drawee

Payee
The maker of a Bill of Exchange or Cheque is called the drawer, the
person thereby directed to pay is called the Drawee.
The person named in the instrument, to whom or to whose order the
money is, by the instrument directed to be paid, is called the payee.
8 Holder The Holder of a promissory note, bill of exchange or cheque means
any person entitled in his own name to the possession thereof and
to receive or recover the amount due thereon from the parties
thereto.
Where the bill of exchange or cheque is lost or destroyed, its holder
is the person so entitled at the time of such loss or destruction.
9 Holder In Due
course
Holder in due course means any person who for consideration
became the possessor of the promissory note, bill of exchange or
cheque ,if payable to bearer, or the payee or endorsee thereof, if,
before the amount mentioned in it became payable and without
having sufficient cause to believe that any defect existed in the title
of the person from whom he derived his title.
10 Payment in
Due course
Payment in due course, means payment in accordance with the
apparent tenor of the instrument in good faith and without
negligence to any person in possession thereof under
circumstances which do not afford a reasonable ground for

40
believing that he is not entitled to receive payment of the amount
therein mentioned.
11 Inland
Instrument
A Promissory Note, Bill of Exchange or Cheque drawn or made in,
and made payable in or drawn upon any person resident in (India)
shall be deemed to be an Inland Instrument.
13 Negotiable
Instrument
A NI means Promissory Note, Bill of Exchange or Cheque payable
either to order or to the bearer.
14 Negotiation When a Promissory note, bill of exchange or cheque is transferred
to any person, so as to constitute the person the holder thereof, the
instrument is said to be negotiated.
15 Endorsement When the maker or the holder of the negotiable instrument signs the
same, otherwise than as such maker, for the purpose of the
negotiation, on the back or the face thereof or on a slip of paper
annexed thereto or so signs for the same purpose a stamped paper
intended to be completed as a negotiable instrument, he is said to
endorse the same is called the Endorser.
16 Endorsement
in Blank and
Full
If the endorser signs his/her name only, the endorsement is said to
be in blank, and if he adds direction to pay, the amount mentioned
in the instrument, or to the order of a specified person the
endorsement is said to be in full and the person so specified is
called the endorsee of the instrument.
20 Inchoate
stamped
instrument
Where one person signs and delivers to another person a paper
stamped in accordance with the law relating to negotiable
instrument then in force in India and either ,wholly blank or having
written thereon an incomplete negotiable instrument, he thereby
gives prima facie authority to the holder thereof to make or
complete, as the case may be , upon it a negotiable instrument, for
any amount specified therein and not exceeding the amount
covered by the stamp. The person so signing shall be liable upon
such instrument, in the capacity in which he signed the same, to any
holder in due course for such amount.
21 At Sight /
On
presentment/
After Sight
In a promissory note or bill of exchange the expressions at sight
and on presentment means on demand. The expression after
sight means, in a promissory note, after presentment for sight and
in a bill of exchange after acceptance or noting for non acceptance,
or protest for non acceptance .
22 Maturity The maturity of a promissory note or bill of exchange is the due date
at which it falls due.
Every promissory note or bill of exchange which is not expressed to
be payable on demand, at sight or on presentment is at maturity on
the third day after the day on which it is expressed to be payable.
25 When
maturity is a
holiday
When the day on which a promissory note or bill of exchange is at
maturity, is a public holiday, the instrument shall be deemed to be
due on the next preceding business day.
26 Minor A minor may draw, endorse, deliver and negotiate such instruments
so as to bind all parties except himself.
30 Liability of The drawer of a bill of exchange or cheque is bound in case of

41
Drawer dishonor by the drawee or acceptor thereof, to compensate the
holder, provided due notice of dishonor has been given to or
received by the drawer as hereinafter provided.
46 Delivery The making, acceptance or endorsement of a promissory note, bill
of exchange or cheque is complete by delivery, actual or
constructive.
47 Negotiation
by delivery
A promissory note, bill of exchange, or cheque, payable to bearer is
negotiable by delivery thereof.
48 Negotiation
by
Endorsement
A promissory note, bill of exchange, or cheque, payable to order is
negotiable by the holder by endorsement and delivery thereof.
49 Conversion of
Endorsement
in Blank in to
full
The holder of a negotiable instrument, endorsed in blank may
without signing his own name by writing above the endorsers
signature a direction to any other person as endorsee, convert the
endorsement in blank into an endorsement in full.
77 Liability of
banker for
negligently
dealing with
bill presented
for payment.
When a bill of exchange, accepted payable at a specified bank, has
been duly presented there for payment and dishonored, if the
banker so negligently or improperly keeps, deals with or delivers
back such bill as to cause loss to the holder, he must compensate
the holder for such loss.
85 Cheque
payable to
order
Where a cheque is payable to order purports to be endorsed by or
on behalf of the payee, the Drawee is discharged by payment in due
course.
87 Effect of
Material
Alteration
Any material alteration of a negotiable instrument renders the same
void as against any one whom is a party thereto at the time of
making such alteration and does not consent thereto, unless it was
made in order to carry out the common intention of the original
parties.
115 Drawee in
case of need
Where a Drawee in case of need is named in a bill of exchange or
in any endorsement thereon, the bill is not dishonored until is has
been dishonored by such Drawee.
123 Cheque
crossed
generally
Where a cheque bears across its face an addition to the words and
company or any abbreviation thereof, between two parallel
transverse line, or of two parallel transverse lines simply, either with
or without the words not negotiable, that addition shall be deemed
a crossing , and the cheques shall be deemed to be crossed
generally.
124 Cheque
crossed
specially
Where a cheque bears across its face an addition of the name of a
banker either with or without the words not negotiable, that
addition shall be deemed a crossing, and the cheque shall be
deemed to be crossed specially and to be crossed to that banker.
128 Payment in
due course of
crossed
cheque
Where the banker on whom a crossed cheque is drawn has paid the
same in due course, the banker paying the cheque, and (in case
such cheque has come to the hands of the payee) the drawer
thereof, shall respectively be entitled to the same rights, and be
placed in the same position in all respects, as they would
respectively be entitled to and placed in if the amount of the cheque

42
had been paid to and received by the true owner thereof.
129

Payment of
crossed
cheque out of
due course
Any banker paying a cheque crossed generally otherwise than to a
banker, or a cheque crossed specially otherwise than to the banker
to whom the same is crossed, or his agent for collection, being a
banker, shall be liable to the true owner of the cheque for any loss
he may sustain owing to the cheque having been so paid.
130 Not
Negotiable
A person taking a cheque crossed generally or specially, bearing in
either case the words not negotiable, shall not have and shall not
be capable of giving, a better title to the cheque than that which the
person from whom he took it had.
131 Non liability
of banker
receiving
payment of
cheque
A banker who has in good faith and without negligence, received
payment for a customer of a cheque crossed generally or specially
to him-self shall not, in case the title to the cheque proves defective,
incur any liability to the true owner of the cheque by reason only of
having received such payment.
138 Dishonor of
Cheque for
insufficiency
etc. of funds
in the
account.
Where any cheque drawn by a person on account maintained by
him with a banker for payment of any amount of money to another
person from out of that account for the discharge, in whole or in
part, of any debt or other liability, is returned by the bank unpaid,
either because of the amount of money standing to the credit of that
account is insufficient to honor the cheque or that it exceeds the
amount arranged to be paid from that account by an agreement
made with that bank, such person shall be deemed to have
committed an offence and shall, without prejudice to any other
provision of this Act, be punished with imprisonment for a term
which may be extended up to two years, or with fine which may
extend up to twice the amount of the cheque, or with both.
Secti
on
139
to
147
Recent
amendments
in Negotiable
Instruments
(amendment
and Misc.
Provisions)
Act 2002.
Following are the recent amendments:-
1. Definition of a cheque widened to include electronic image of
a truncated cheque and a cheque in electronic forms.
2. Right of the banker who received payment on electronic image
of a truncated cheque to retain the truncated cheques.
3. Certificate of text of print out of electronic image of truncated
cheque by paying Banker as proof of payment.
4. Doubling of the imprisonment term from one year to two
years.
5. Doubling of penalty for the offence, i.e. up to twice the
amount of the instrument.
6. Doubling of the period of time to issue demand notice to
drawer from 15 to 30 days.
7. Immunity from prosecution for nominee directors, who are
nominated by virtue of holding any office or employment in
Central Government or State Government or a financial
corporation owned or controlled by the Central Government or
State Government.
8. Compounding of offence under the N.I.Act.
Empowering the magistrate to condone delay in filing

43
complaint.
Banks slip or Memo having Banks Official mark denoting that
the cheque has been dishonoured shall be presumed to be the
fact of dishonour.

CHEQUE TRUNCATION

WHAT IS CHEQUE TRUNCATION

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.

The images captured at the presenting bank level would be transmitted to the Clearing
House and then to the drawee branches with digital signatures of the presenting bank.
Thus each image would carry the digital signature, apart from the physical endorsement of
the presenting bank, in a prescribed manner.

Thus the benefits to customers of banks could be summarized as:

(a) Faster clearing cycle;
(b) Better reconciliation/verification process
(c) Better Customer Service - Enhanced Customer Window
(d) T+0 for Local Clearing and T + 1 for inter-city clearing.
(e) Elimination of Float - Incentive to shift to Credit Push payments.
(f) The jurisdiction of Clearing House can be extended to the entire country - No
Geographical Dependence
(g) Operational Efficiency will benefit the bottom lines of banks - Local
Clearing activity is a high cost no revenue activity.
(h) Minimises Transaction Costs.
(i) Reduces operational risk by securing the transmission route.

The physical instruments are required to be stored for a statutory period. It would be
obligatory for presenting bank to warehouse the physical instruments for that statutory
period. In case a customer desires to get a paper instrument back, the instrument can be
sourced from the presenting bank through the drawee bank.

Indian Contract Act, 1872

Banking involves interaction between a banker and customer. A customer of a bank may be
a depositor, borrower or any other person merely utilizing one of the various services
provided by the banker. The interaction of a bank with its customer creates certain
obligations and gives certain rights to both the bank and the customer.

All Agreements are contracts, if they are made by parties competent to contract, for a
lawful consideration and with a lawful object, and are not expressly declared to be void.

All Banking transactions are therefore, separate contracts and the knowledge of Indian
Contract Act is essential for each Banker.

44
Section124. "Contract of indemnity" defined-

A contract by which one party promises to save the other from loss caused to him by the
contract of the promisor himself, or by the conduct of any other person, is called a "contract
of indemnity".

Section 126. "Contract of guarantee", "surety", "principal debtor" and "creditor" -
A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a
third person in case of his default. The person who gives the guarantee is called the
"surety", the person in respect of whose default the guarantee is given is called the
"principal debtor", and the person to whom the guarantee is given is called the "creditor". A
guarantee may be either oral or written.

Section 148. Bailment, bailor and bailee defined.
A bailment is the delivery of goods by one person to another for some purpose, upon a
contract that they shall, when the purpose is accomplished, be returned or otherwise
disposed of according to the directions of the person delivering them. The person delivering
the goods is called the bailor. The person to whom they are delivered is called the bailee.

Section 172. "Pledge", "Pawnor", and "Pawnee" defined -
The bailment of goods as security for payment of a debt or performance of a promise is
called "pledge". The bailor is in this case called "pawnor". The bailee is called "pawnee".

Section 182. "Agent" and "principal" defined -
An "agent" is a person employed to do any act for another, or to represent another in
dealing with third persons. The person for whom such act is done, or who is so
represented, is called the "principal".

Indian Partnership Act, 1932

Partnership is the relationship between persons who have agreed to share the profit of a
business carried out by all or any of them, acting for all. The relationship between partners
is governed by Partnership Deed. The act provides for registration of partnership and it is
necessary that a banker dealing with partnership firm should verify as to whether the firm is
registered or not. This would help him to know all the names of the partners and their
relationship. The act of the partner shall be binding on the firm if done.
(a) In the usual business of the partnership.
(b) In the usual way of business.
(c) As a partner, i.e. on behalf of the firm and not solely on his own behalf.

Limited Liability Partnership Act, 2008
The Limited Liability Partnership (LLP) is viewed as an alternative corporate business
vehicle that provides the benefits of limited liability but allows its members the flexibility of
organizing their internal structure as a partnership based on a mutually arrived agreement.
The LLP form would enable entrepreneurs, professionals and enterprises providing
services of any kind or engaged in scientific and technical disciplines, to form
commercially efficient vehicles suited to their requirements. Owing to flexibility in its
structure and operation, the LLP would also be a suitable vehicle for small enterprises and
for investment by venture capital keeping in mind the need of the day, the Parliament
enacted the Limited Liability Partnership Act, 2008 which received the assent of the

45
President on 7th January,2009.

Indian Companies Act, 1956

In India, companies are governed by Companies Act, 1956. All the companies are required
to be registered under Companies Act, 1956. A company is a juristic person created by
law, having a perpetual succession and common seal distinct from its members. Section
11 of the Companies Act provides that an Association or Partnership consisting of more
than 10 in the case of Banking Business and more than 20 in the case of other business
shall be registered under the companies act. If not registered, the said association or
partnership will be illegal.

The business and the objects of a company and the rules and regulations governing its
management is known by two important documents called Memorandum of Association
and Article of Association.

Securitisation and Reconstruction of Financial Asset and Enforcement of Security
Interest Act, 2002.

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 is an effective tool in the hands of the bank to enforce the security interest and
recover the dues thereby reducing NPAs/PWOs.

The Act deals with three aspects:
1. Enforcement of Security Interest by secured creditor (Banks/FIs].
2. Transfer of non- performing assets to asset Reconstruction Company, which will
then dispose of those assets and realise the proceeds.
3. To provide a legal framework for securitization of assets.

Enforcement of Security Interest

Before enforcing security interest, branches should ensure that the borrowal accounts
comply with the following criteria
a) The contractual dues in the account should be more than Rs.1 lac.
b) The default must have occurred i.e. the account should have become NPA as per
RBI norms.
c) The security charged to the Bank must be specific, clear and available to the Bank. It
must be duly and effectively charged to the Bank and therefore, enforceable if the
borrower fails to pay in response to the Notice.
d) The security documents in the advance account should be in full force on the date of
serving the 60 days notice. As an abundant caution, it should be ensured that they
will be in force even at the time the action that will follow for enforcement of security
i.e. at least up to one year from the date of serving the notice.
e) The security documents should be duly filled in.
f) Either our Bank must be the sole banker to the borrower i.e. 100% lending is done
by us or in case of consortium lending consent of secured lenders representing
not less than 75% of the amount outstanding in value is obtained.
g) In case of multiple Banking, if the security is exclusively charged, the bank can
proceed as though it is the sole banker.
h) Even in B.I.F.R. referred cases and suit filed cases, action can be taken.
i) An action under SARFAESI Act also facilitates abatement of reference from BIFR.

46
j) Since limitation Act applies to action under SARFAESI, care should be taken that the
action is within limitation time.

Other Important Acts

Transfer of Property Act,
Information Technology Act, 2000
Code of Civil Procedure Act, 1908
Recovery of Debts due to Banks and Financial Institutions Act, 1993 (DRT)
Stamps Act
Right to Information Act
Foreign Exchange Management, Act, 1999
Bankers Book Evidence Act, 1891

47
Test your Understanding:

1. The Bank is mainly governed by .Act.
a) The Indian Contract Act.
b) The Banking Regulation Act
c) The Reserve Bank of India Act.
d) The Negotiable Instrument Act.
e) The Companies act

2. SARFAESI Act, 2002 is an effective tool in the hands of the bank to enforce the
security interest and recover the dues thereby reducing.
a) Potential NPA
b) Bad debts
c) Long overdue Bills
d) Overdue advances
e) NPAs/PWOs

3. A company is a juristic person created by law, having a .. succession
a) Regular
b) Continuous
c) Perpetual
d) Permanent
e) Pre-defined

4. A company must have a .seal distinct from its members
a) Common
b) Distinct
c) Specific
d) Approved
e) Rubber

5. The Limited Liability . is viewed as an alternative corporate business vehicle
that provides the benefits of limited liability.
a) Proprietorship
b) Partnership
c) Company
d) Firm
e) Properties

6. Which of the following is/are not an objectives of RBI
a) To regulate the issue of Bank Notes.
b) To Regulate NBFCs
c) For keeping reserves for securing monitory stability in India and,
d) To operate the currency and credit system of the country to its advantage.
e) Investments in Government Securities, Treasury Bills and other approved
securities in India

48
7. A is an instrument in writing, containing an unconditional undertaking
signed by maker, to pay a certain sum of money only to or to the order of a certain
person or to the bearer of the instrument
a) Promissory Note
b) Bills of Exchange
c) Cheque
d) Hundee
e) Bank drafts

8. A NI means Promissory Note, Bill of Exchange or Cheque payable either to order or
to the .
a) Holder
b) Holder in due course
c) Bearer
d) Owner
e) Agent

9. The making, acceptance or endorsement of a promissory note, bill of exchange or
cheque is complete by , actual or constructive.
a) Endorsement
b) Crossing
c) Material alteration
d) Delivery
e) Stamping

10. A contract by which one party promises to save the other from loss caused to him by
the contract of the promisor himself, or by the conduct of any other person, is called
a "contract of .
a) Guarantee
b) Bailment
c) Pledge
d) Indemnity
e) Agency

Answers:

Q 1 2 3 4 5 6 7 8 9 10
A B E C A B B&E A C D D

49
Banker Customer Relationship

Quick Bites

Definition of Banking, Banker & Customer.
Various type of relationship between banker & customer
Various rights available to the banker like, Lien, set-off and appropriation defined.
Difference between Garnishee order and Income Tax attachment order explained.
Various types of customers covered precisely.

Background:
The relationship between the banker and customer is very important. Both serve the society
to grow and the economy to expand. Before we discuss the relationship between the
banker and the customer, it seems necessary that the two terms banker and customer
are made clear.

The term Banking has been defined under the Banking Regulation Act, 1949. According to
section 5(b) of the Act, Banking means accepting for the purpose of lending or
investment of deposits of money received from the public, repayable on demand or
otherwise and withdrawable by cheque, draft, order or otherwise. The person who is
disposing the assignments of banking is called BANKER.

Thus the essential functions of the bank as mentioned in RBI Act, section 5(b) and Banking
Regulation Act, 1949 section 6, are as listed below:
Acceptance of deposit of money for the purpose of lending or investments.
Discounting of Bills
Collection of Cheque and Bills
Remittances
Safe Custody of articles
Hiring of Safe Deposit Lockers
Conducting foreign exchange transactions
Conducting Govt. Transactions.
Issuing Letters of Credit and Guarantees

But now, as new institutions have diversified their businesses and entered into banking, like
wise banks were diversified to other line of businesses directly or, otherwise, so, few more
functions have been added over the years like Selling of Gold Coins, Credit Card business,
third party products selling etc.

There is no statutory definition of Customer. A person/ company/entity who have an
account with a bank are a customer. There is no unanimity as regards to the time period of
the dealings. A casual transaction like encashment of a cheque does not entail a person to
be customer. The duration of association of the customer with the bank is of no essence. A
customer is one who has an account with the bank and to whom the banks undertakes to
extend business of banking.

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Duties and Rights of a Banker

Duty to maintain the secrecy about customers account But, under the following
circumstances Bank is under obligation to disclose the customer information
(a) Under compulsion of law
(b) To protect national Interest
(c) In the interest of the Bank
(d) With the implied consent of the customer
(e) As per banking practices
(f) Information demanded by the Guarantor

Duty to honor the cheque if the balance in the account, permit debit of the cheque and
cheque is properly drawn
Duty to issue pass-book, statement etc.
Duty to collect the cheques, Bills etc.

Followings are the primary rights of the banker:

Right of General Lien
Right of set-off
Right of appropriation
Right to act as per the mandate given by the customers.

Lien

It is a right of the creditor to retain the possession of the goods and securities owned by the
debtor until the debt due by the customer is paid. The bankers lien is an implied pledge. A
banker acquires the right to sell the goods, which came into possession in the ordinary
course of banking business. This means that any specific transactions other than as
defined under Banking are not subject to general lien. eg, safe custody transactions, Locker
transactions, money deposited for some specific purpose etc. Section 171 of the Indian
Contract Act, 1872 gives a right of general lien to the banker.

Set-off

Right of set-off is the right of a banker to adjust a debit balance in a customers account,
with any balance outstanding to his credit in the books of the banks. In other words, the
banker has a right to mutually adjust the two accounts of the same customer with certain
amount, one in debit and another in credit, which is called right of set-off. The set-off is
applicable to debts due and payable on the date of set-off. The account must be in the
same name and same capacity.

Appropriation

The customer, who deposits the amount, has a right to clarify the purpose and account
against which the credit is to be given by the banker. It means it is the duty of the customer
to specify the nature of the transactions. If he fails to mention the purpose, then banker has
a right to adjust the credit against the any debit/ dues. This is called the right of
appropriation.

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Banker customer relationship

The banker is rendering various types of services to the customers and non-customers
also. During the course of such banking transactions various relationships arise. Various
relationships are as under:

Transactions Relationship

Bank Customer
Deposit Account with bank Debtors Creditors
Loan from the Bank Creditors Debtors
Locker Lessor Lessee
Safe custody of Articles Bailee Bailor
Collection of Bills/ Cheques Agent Principal
Purchase of DD/ MT/ TT Debtors Creditors
Payment of Draft Trustee Beneficiery
Pledge of goods Pledgee Pledger
Mortgage Mortgagee Mortgager
Standing instruction Agent Principal
Article left by the bank Trustee Beneficiery
Hypothecation of goods Hypothecatee Hypothecator
Assignment of securities Assignee Assignor
Indemnity indemnifier indemnified

Relationship Creditor-Debtor: Relationship between the customer having a deposit
account, depositor is the creditor and the banker is the debtor.

Relationship Debtor-Creditor: When the customer avails a loan or an advance, then his
relationship with the banker undergoes a change to what it is, when he is a deposit holder.
Since the funds are lent to the customer, he becomes the borrower and the banker
becomes the lender. The relation is the debtor- creditor relation, the customer being a
debtor and the banker a creditor.

Relationship Beneficiary-Trustee: If a customer keeps certain valuables or securities with
the bank for safe-keeping or deposits a certain amount of money for a specific purpose, the
banker, besides becoming a bailee, is also a trustee. The money or the securities so kept
are not at the disposal of the bank. The banker cannot utilize those moneys or securities as
he desires since the money does not belong to him.

Relationship Principal-Agent: Banks provide ancillary services such as collection of
cheques, bills etc. They also undertake to pay regularly the electricity bills, phone bills etc.
The relationship arising out of these ancillary services is of principal-agent between the
customer and the bank. The proceeds of the cheques sent for collection,which are in
transit, not created to the customer account are not the moneys of the banker till such time
as they are credited into the customer account.

Relationship Lessee-Lessor: The banks provide safe deposit lockers to the customers
who hire them on lease basis. The relationship therefore, is that of lessee and lessor. In
certain banks, this relationship is termed as licensee and licensor. The bank leases out the

52
space for the use of clients. The bank is not responsible for any loss that arises to the
lessee in this form of transaction except due to negligence of that bank.

Relationship Indemnifier- Indemnified: The customer is indemnifier and the bank is
indemnified. A contract by which one party promises to save the other from loss caused to
him by the conduct of the promisor himself or the conduct of any other person is called a
contract of indemnity section 124 ( Indian Contract Act, 1872).

In the case of banking, this relationship happens in transactions of issue of duplicate
demand draft, fixed deposit receipt etc. The underlying point in these cases is that either
party will compensate the other of any loss arising from the wrong/excess payment.

Relationship Bailer and Bailment: A bailment is the delivery of goods in trust. A bank may
accept the valuables of his customer such as jewellary, documents, securities for safe
custody. In such a case the customer is the Bailer and the bank is bailee. As per section
148 of Indian Contract Act 1872, the delivery of goods from one person to the other for
some purpose upon the contract that the goods will be returned when the purpose is
accomplished.

Pledger and Pledgee: When a customer Pledge goods and documents as security for an
advance he then become Pledger and the bank becomes the pledgee. The pledged goods
are to be returned intact to the Pledger after the debt is repaid by him.

Mortgager and Mortgagee: Mortgage is the transfer of an interest in specific immovable
property for the purpose of securing the payment of money advanced or to be advanced by
way of loan. When a customer pledges a specific immovable property with the bank as
security for advance, the customer becomes mortgager and banker is the mortgage.

Garnishee order and Income Tax Attachment order

GARNISHEE ORDER I.T. ATTACHMENT ORDER
An order issued by a court at the request
of judgement creditor attaching the fund
belonging to the judgement debtor.
Order issued by competent authority to
attach the balance lying in the account
of customer/defaulter of the order
issuing authority.
The credit balance available at the time of
order is earmarked/attached. No
subsequent credit is attached
The credit balance in the account as
well as future credit in the account are
also attached.
Before remitting money, bank can exercise
their right of set-off.
Once the order is acted upon, bank can
not exercise right of set off.
The fund which is lying with the bank as a
debtor of the customer is to be attached
only.
It is attached to present fund and any
fund which are to be credited to the
customers account.
If the order in single name, no joint
account balance can be attached.
It is applicable proportionately to joint
account balance also.
Fund lying in the account of deceased
customer is not attachable
It can be attached.

53
Claytons Rule:

This rule is applicable mainly in case of overdraft & cash-credit account of other than sole
proprietor firm and as per this rule the credit entry will set-off the debit entry, in
chronological order.

Termination of Banker-Customer relationship:
The relationship seizes once
If customer closes the accounts
If customer dies,
If customer becomes insane or
If customer becomes insolvent.
Banker may close the a/c by serving notice to A/c holder

Types of Customers

A bank opens accounts for various types of its prospective/existing customers like
individuals, partnership firm, trusts, companies, etc. While opening the accounts, the banker
has to keep in mind the various legal aspects involved in opening and maintenance of these
accounts. Normally banks have to deal with the following types of customers:

Individuals:

1. The account should be opened with cash only and not with cheque, drafts. This is to
protect the banks interest under section 131 of the N. I. Act.
2. KYC Norms to be followed
3. The account can be opened in the single name or joint name. Followings are the various
types of operation instructions for the joint accounts of the individuals:
a. Jointly,
b. Either or Survivor,
c. Former or survivor,
d. All of them jointly or Survivors or Survivor,

Minor:

According to Section 3 of Indian Majority Act, a person attains majority at the age of 18,
except in case where a guardian is appointed by a court, where the age of majority is 21.
As per Indian Contract Act, a minor is not capable to enter into the contract and any
contract with the minor is void. Following points are to be kept in mind:
A minor of 10 years can open SB account and a minor of 14 years can open Current
account in his name. However, there is a specific ceiling to maintain a maximum
balance in the account/s.
Operations in the account by minor or by natural guardian
Legal guardian cannot open a joint account
No overdraft is created in the account
Date of majority to be recorded in the account
No joint account of two or more MINORS TO BE OPENED.

Illiterate Persons:
Illiterate persons are competent to enter into contract so that they can open and maintain

54
bank accounts. However, following precautions are to be taken while opening and
maintaining such accounts:
No cheque book should be issued
No current account should be opened
Joint account of two illiterates (close relatives can be opened) operational instructions
should be jointly or survivor and not either or survivor
Joint account of illiterate with literate close relative can be opened but no cheque
should be issued.

Blind Persons:

Blind persons are competent to enter into contract. They can open and maintain any type of
bank accounts. However, following precautions are to be taken while opening and
maintaining such accounts:
Various risks in operations of the account should be explained to the account holder
Joint account with close relative can be opened
Cash receipts and payments should be made in presence of witness preferably bank
customer
Account opening form etc. should be stamped blind person
For withdrawal of the amount he/ she should come personally
Proprietorship Firms:

A sole proprietorship is the oldest and the most common form of business. It is a one-man
organisation where a single individual owns, manages and controls the business. Its main
features are :-
Ease of formation is its most important feature because it is not required to go through
elaborate legal formalities. No agreement is to be made and registration of the firm is
also not essential. However, the owner may be required to obtain a license specific to
the line of business from the local administration.
The capital required by the organisation is supplied wholly by the owner himself and he
depends largely on his own savings and profits of his business.
Owner has a complete control over all the aspects of his business and it is he who takes
all the decisions though he may engage the services of a few others to carry out the
day-to-day activities.
Owner alone enjoys the benefits or profits of the business and he alone bears the
losses.
The firm has no legal existence separate from its owner.
The liability of the proprietor is unlimited i.e. it extends beyond the capital invested in the
firm.
Lack of continuity i.e. the existence of a sole proprietorship business is dependent on
the life of the proprietor and illness, death etc. of the owner brings an end to the
business. The continuity of business operation is therefore uncertain.

Partnership Firms:

The account should be opened in the name of the firm. The account opening form should
be signed by all the partners. A letter of partnership duly signed by all the partners should
be obtained. When a minor is admitted as partner in the firm, a letter of restrictive
operations should be obtained. Specific operational instructions duly signed by all the

55
partners to be obtained. Stop payment of the cheque by any partner : Even in case it is
signed by another partner the same can be stopped by any partner. Death / insolvency or
lunacy of any partner operations in the account should be stopped.

Limited Liability Partnership:

LLP is a body corporate having separate legal existence having mixed characteristics of
Partnership firm & Companies. It is separate from its partners, can own assets in the name,
sue and be sued. It has perpetual succession. Every partner is an agent of the LLP. It is to
be registered with ROC. The incorporation document shall contain the name of LLP,
proposed business, address of the registered office and name & address of each partner.
Name to contain 'Limited Liability Partnership' or 'LLP' as suffix. Incorporation Document is
not required to contain State in which incorporated. Thus, registered office can be changed
to any place in India just by informing ROC subject to prescribed conditions.

LLP Agreement is required to be filed later. In absence of LLP Agreement, mutual rights
and duties will be as specified in first schedule to LLP Act. Thus, practically, each LLP must
have LLP Agreement, though not mandatory. No restriction on remuneration to partner but
it should be provided in LLP agreement. No provision for registration of charges.

Limited Company:

Joint stock Companies are governed by the Companies Act, 1956. A Company is
incorporated under the Companies Act. The Company is a separate entity from its
members. There are four types of the companies:
(1) Public Limited Company (2) Private Limited Company (3) Government Company (4)
Limited Liability Partnership.
Certified true copy of the following documents are to be obtained at the time of opening of
the account.
1. Certificate of incorporation
2. Certificate of commencement of business in case of public limited Co.
3. Memorandum of Association(MOA)
4. Articles of Association
5. Board Resolution to open an account with the bank and operational instructions
6. List of the present directors.

Following care to be taken while maintaining such accounts:

1. The account opening form should be signed as per the resolution passed by the Board
2. Introduction is not necessary for opening of the account because certificate of
incorporation issued by registrar of the companies itself serves the purpose
3. Death of a director does not affect the operation in the account
4. A cheque payable to the company should never be deposited in the personal account of
director
5. While granting any credit facility, purpose clause of MOA of the company must be
verified
6. Provisions of section 293(1) (d) of the Companies Act regarding borrowing in excess of
Net worth to be observed.

Trust Accounts:
A trust is an obligation annexed to the ownership of property, arising out of confidence

56
reposed in a person/ group of persons and accepted by him/them for the benefit of another
or of another and the owner. The persons who, accepts the confidence are called trustees.
The instrument/ document by which the trust is created are called the Trust Deed.
While opening of the account of a trust following documents are required to be obtained:
1. Copy of the trust deed
2. Copy of the certificate issued by charity commissioner.
3. List of present trustees,
4. Resolution passed by the trust to open and maintain an account with the bank.
5. Operational instruction to operate the account.
Executor and Administrator:

A person to whom the execution of a will is entrusted by the deceased (testator) is called
the executor of the will. The executor is supposed to obtain a probate from the court.
For a person who dies without leaving a will (intestate), the court appoints a person to look
after the property is called the administrator.
Following precautions are to be taken while opening such accounts:
1. A copy of the probate or letter of administration should be obtained and verified with the
original
2. Account in the name of executor /administrator is opened in the style xyz
executor/administrator of the estate of .deceased
3. No credit meant for the account of the estate of the deceased is made to the accounts of
executor/administrator.

Joint Hindu Family:

The concept of HUF is recognized by law. As per the law where a Hindu dies, leaving a
business it passes on to the heirs and property becomes the Joint Hindu Family property.
The eldest member is called Karta and the members (male as well as female except
widow) of the family are called Coparceners. HUF cannot be admitted as a partner in the
partnership firm.

Following precautions to be taken while dealing with such accounts:
1. HUF letter should be signed by the Karta and all the major co-parceners
2. The account is to be operated by the Karta only
3. Names of the minor coparceners should be kept on record and on attaining the majority
a fresh letter of HUF duly signed by all to be obtained
4. Death, Lunacy, insolvency of the members does not effect the operations in the account

Clubs, Associations:

Clubs, Associations, Committees and Chit Funds etc are not a legal entity unless they are
incorporated under the Companies Act. As they have no contractual powers. Following
points must be kept in mind while dealing with such accounts:

Clubs can be registered or un-registered. While opening an account in the name of
registered club, following documents should be obtained:
1. Copy of Certificate of Registration,
2. Copy of bye laws, rules and regulations.

57
3. Copy of resolution of the managing committee/governing body etc.
4. A list of the members of the managing committee.
5. No advance including TOD should be permitted.

Co-Operative Societies:

The Society is registered under the Society Registration Act 1960. Documents to be
obtained for opening of the account:
1. Copy of Certificate of Registration,
2. Copy of bye laws, rules and regulations.
3. Copy of resolution of the managing committee/governing body etc.
4. A list of the members of the managing committee.
5. No advance including TOD should be permitted.

Local Authorities:

1. Examples are municipal corporations, Zilla boards etc.
2. Bank must obtain copy of such statute and find out the provisions as to who would
authorize opening of the account.
3. Generally these authorities have managing committees, with president, vice president
and treasurer and the treasurer is given powers to open and operate the account.
4. No Overdraft should be given in the account
Government Departments:

1. Copy of the govt. notification should be obtained authorizing the concerned person to
open and operate the account
2. Certified copy of rules and regulations framed by the department for opening and
operations of such accounts should be obtained

58
Test your Understanding:

1. In case of deposit accounts the relationship between the banker and customer is that
of :-
a) Creditor and Debtor
b) Debtor and Creditor
c) Lessor and Lessee
d) Agent and Principal
e) Bailer and Bailee

2. In case of safe custody of articles the relationship between banker and customer is
that of :-
a) Creditor and Debtor
b) Debtor and Creditor
c) Lessor and Lessee
d) Agent and Principal
e) Bailer and Bailee

3. LLP stands for :-
a) Local Liability Partnership
b) Limited Liability Partnership
c) Long Lease Partnership
d) Liberal Limits Partnership
e) None of the above

4. A cheque payable to the company may be deposited in the personal account of its
director if such director has majority shares in the company
a) TRUE
b) FALSE

5. If one of the Director of the company dies, the operations of the companys account
must be immediately stopped and the account be closed
a) TRUE
b) FALSE

Answers

Q 1 2 3 4 5
A B E B B B

59
Know Your Customer (KYC) and Anti Money laundering (AML)

Quick Bites

Key elements of KYC (know your customer)
Key elements of AML (anti money laundering standard) and CFT (combating foreign
terrorism)
PML (prevention of money laundering act)
Any cash deposit Rs 50000 and above requires PAN or form 60/61
In account opening if KYC is followed,introduction is not mandatory
CTR stands for cash transaction report and STR stands for suspicious transaction report

Background:

In a simple terms, the concept of KYC is to:

Know the Identity of the customer and his location
Know his nature of activity,
Know his source of income, ownership of funds and purpose of transaction
Verify / check his background (i.e. whether he is known criminal or Money Launder or on
the list of banned organization or on the list of terrorist individuals / organizations)
Monitor transactions against his recorded profile, history on his account and with peers
for detection and reporting of suspicious transaction pertaining to identity thefts, anti
money laundering activities and or financing of terrorism.

Know Your Customer and Anti Money Laundering Guidelines

In terms of guidelines issued by RBI, Model Policy on Know Your Customer (KYC)
Standards and Anti Money Laundering Measures has been issued.

Objectives

To prevent criminal elements from using the bank for their money laundering
activities.
To enable the bank to know / understand the customers and their financial dealings
better, which in turn would help the bank to manage and mitigate risks prudently.
To put in place appropriate controls for detection and reporting of suspicious
activities in accordance with applicable laws / laid down procedures.
To comply with applicable laws and regulatory guidelines.
To take necessary steps to ensure that the relevant staffs are adequately trained so
that smooth implementation of the policy is done.

Money Laundering

Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a
party or is actually involved in any process or activity connected with the proceeds of crime
and projecting it as untainted property shall be guilty of offence of money laundering.

Money launderers use the banking system for cleansing dirty money obtained from
criminal activities with the objective of hiding / disguising its source. The process of money
laundering involves creating a web of financial transactions so as to hide the origin and true
nature of these funds.

60

The term money laundering also covers financial transactions where the end use of funds
goes for financing terrorism irrespective of the source of the funds.
The Banks are exposed to the following risks which may arise out of Money Laundering
activities:

Reputational Risk

It is the policy of the Bank to have risk assessment of the business before establishing
business relationship. The Bank shall not accept and/or entertain any instructions or
undertake transactions; the source of funds relating to which cannot be ascertained or the
beneficial owner of the funds cannot be identified. The funds of the nature as above cannot
be accepted as it may result in Reputation Risk to the Bank.

Compliance Risk: The risk comprises of loss due to failure of compliance with key
regulations governing the banks operations.

Operational Risk: The risk comprises of loss resulting from inadequate or failure of internal
processes, people and systems, or from external events.

Concentration Risk: The Bank has set prudential limits to single borrower/group of related
borrowers to avoid concentration of risk at one place/segment.

Legal Risk: The risk comprises of loss due to any legal action, the bank or its staff may
face due to failure to comply with the law. The Bank shall carry out KYC and Due Diligence
exercises invariably in all relevant cases to mitigate legal risk.

Definition of a Customer

A customer for the purpose of this policy is defined as:
A person or an entity that maintains an account and / or has a business relationship
with the bank.
One on whose behalf the account is maintained (i.e. the beneficial owner)
Beneficiaries of transactions conducted by professional intermediaries, such as
Stock Brokers, Chartered Accountants, Solicitors etc., as permitted under the law.
Any person or entity connected with a financial transaction
A person that engages in a financial transaction or activity with a banking company,
or financial institution or intermediary and includes a person on whose behalf the
person that engages in the transaction or activity, is acting;

Key Elements of the Policy

a. Customer Acceptance Policy
b. Customer Identification Procedures
c. Monitoring of Transaction and
d. Risk Management.

Customer Acceptance Policy (CAP)

1. No account to be opened in anonymous or fictitious / benami name(s).

61
2. Not to open account or close an existing account where the Bank is unable to verify
the identity and/or obtain documents required due to non co-operation of the
customer.
3. Necessary checks before opening a new account so as to ensure that the identity of
the customer does not match with any person with banned list of individual terrorists
or terrorist organizations etc., circulated to the branches.
4. Circumstances, in which a customer is permitted to act on behalf of another
person/entity, should be clearly spelt out in conformity with the law and practice of
banking.
5. To treat the information collected from the customer for the purpose of opening of
account as confidential and not divulge any details thereof for cross selling or any
other purposes.

Customer Identification Procedure (CIP)

Having sufficient information about the customer and making use of that information is the
most effective tool used to counter the efforts of laundering the proceeds of crime. In
addition to minimizing the risk of being used for illicit activities, adequate KYC information
provides protection against fraud, enables suspicious activity to be recognised, and protects
the Bank from loss of reputation and financial risks.

The Customer Identification Procedures are to be carried out at the time of establishing
banking relationship i.e. opening of account and also any time thereafter when the Bank
feels it is necessary to obtain additional information from the existing customers based on
the conduct or behaviour of the account.

Information collected at the outset for customer identification purpose to include

The purpose and reason for opening the account or establishing the relationship
The anticipated level and nature of the activity that is to be undertaken
The expected origin of the funds to be used within the relationship
Details of occupation/employment to be sought for bank accounts and sources of
wealth or income will be required for banking relationships.

The branches shall have to ensure that the identification of the customer is established
within a reasonable time of opening the account. Once an on-going business relationship
has been established, any regular business undertaken for that customer shall be assessed
against the expected pattern of activity of the customer/type of that account.
Any unexplained activity can then be examined to determine whether there is a suspicion of
money laundering. The existing accounts are also subjected to KYC requirements using the
norms of materiality and risk.
When an existing customer closes one account and opens another at the same time, or
enters into a new agreement to purchase products or services, there is no need to re-verify
identity or address unless the name or the address provided do not match the Banks
records. However, branches should take care to guard against impersonation fraud.

The following types of accounts would require higher account opening documentation and
due diligence to be carried out at the time of opening new accounts
Trust accounts
Accounts of companies and firms
Accounts of Politically Exposed Persons (PEPs) resident outside India

62
(Politically exposed persons are individuals who are or have been entrusted with
prominent public functions in a foreign country, e.g., Heads of States/ Governments,
Senior politicians, Senior government/judicial/military officers, Senior executives of
state-owned corporations, important political party officials, etc. The Branches should
gather sufficient information on any person/customer of this category intending to
establish a relationship and check all the information available on the person in the
public domain. The Branches should verify the true identify of such person and seek
information about the sources of funds before accepting the PEP as a customer. The
decision to open an account for PEP should be taken after obtaining permission from
Regional Office)
Fiduciary Accounts e.g. guardians of estates, executors, administrators, assignees,
receivers etc.
Pooled accounts are essentially fiduciary accounts where investments of a number
of persons are pooled together.

KYC Documentation for different types of liability accounts

The new documentation guidelines below will be applicable to all new Customers opening
Current, Savings and Term deposit Accounts as well as existing customers opening new
Transaction accounts (except where existing documentation conforms to these revised
documentation standards). The nature and type of documents / information that may be
relied upon for customer identification is given below
1. Passport
2. PAN card
3. Voters Identity Card
4. Driving license and photograph
5. Identity card / confirmation from employer (subject to the banks satisfaction)
6. Letter from a recognized public authority or public servant verifying the identity
(Photo) and residence of the customer to the satisfaction of bank
7. Confirmation/Letter from employer/ other bank verifying therein photograph of the
person along with other things. (any one or more documents from above list
confirming customers identification subject to satisfaction of the Bank)

Address proof through:

Passport
Voters Identity Card
Driving license
Telephone bill
Bank account statement
Letter from any recognized public authority
Unique Identification Card
Electricity bill
Ration card
Letter from employer (subject to satisfaction of the bank).
For close relatives like wife, son, daughter and parents etc. who live with their
husband, father/mother and son, as the case may be, the branches can obtain an
identity document and a utility bill of the relative with whom the prospective customer
is living along with a declaration from the relative to the effect that the prospective
customer is staying with him / her.

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Recently, Govt. of India amended the norms & issued the guidelines to accept AADHAAR
card issued by UIDAI as customer identification & Address proof.

In modification of instructions quoted above, branches are advised that they may now
accept NREGA Job Card as an officially valid document for opening of bank accounts
without the limitations applicable to Small Accounts.

1. If the address on the document submitted for identity proof by the prospective customer
is same as that declared by him/her in the account opening form, the document may be
accepted as a valid proof of both identity and address
2. If the address indicated on the document submitted for identity proof differs from the
current address mentioned in the account opening form, a separate proof of address
should be obtained.

Clarification regarding introduction

Since introduction is not necessary for opening of accounts under PML Act and Rules or
Reserve Banks extant KYC instructions, branches should not insist on introduction for
opening bank accounts of customers. (Refer circular no ho_br_104_252)

For a/c opening of foreign students studying in India

To avoid inconvenience to the foreign students in opening of bank accounts, branches can
open an account in the name of foreign students studying in India provided submission of

1. Passport as the document for proof of identity
2. Valid Visa a visa with photograph in it can also serve as an identity proof
3. Proof of admission a letter from the university or college
4. Address proof a letter from the college or hostel, certificate from embassy of the
country of origin or any appropriate legal authority certified local address in India /
Certification of registration issued by Foreigner Registration Regional Office (FRRO)
/ Rent agreement (however, in such a case landlord may not be forced to visit the
branch for verification of documents and branch may depute an officer to visit the
landlord for the purpose)

Branches should ensure to offer zero-balance accounts with ATM facilities to foreign
students

For rural branches

In the absence of any of the above documents, ration card/ certificate from the local body/
NGO/MFI will suffice for establishing identity and address of the applicant.

In case of Proprietorships, the Proprietor would need to submit as below.

1. Proof of the name, address and activity of the concern, like registration
certificate (in the case of registered concern).
2. Certificate / license issued by the municipal authorities under Shop &
Establishment Act.
3. Certificate / registration document issued by Sales Tax / Service Tax /
Professional Tax authorities.
4. Utility bills such as electricity, water and landline telephone bills in the name of
proprietary concern.

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5. License issued by the Registering authority like certificate of Practice issued by
Indian Institute Chartered Accountants of India, Institute of Cost Accountants of
India, Institute of Company Secretaries of India, Indian Medical Council, Food
And Drug Control Authorities, etc.
6. The complete Income Tax return (not just the acknowledgment) in the name
of sole proprietor where the firms income is reflected duly authenticated/
acknowledged by the Income tax authorities.
7. Sales and Income tax returns.
8. CST / VAT certificate.
9. Registration/ Licensing documents issued in the name of the proprietary concern
by Central government or State Government authority/ department.
10.Importer Exporter Code (IEC) issued to the proprietary concern by the office of
DGFT as an Identity document for opening account.

Accounts of partnership firms

1. Legal name
2. Address
3. Names of all partners and their addresses
4. Telephone numbers of the firm and partners
5. Registration certificate, if registered
6. Letter of Partnership
7. Power of Attorney granted to a partner or an employee of the firm to transact business
on its behalf
8. Any document (as given above for individual accounts) Identifying the main partners and
the persons holding the Power of Attorney and their addresses
9. Photographs of partners
10. Telephone bill/utility bill in the name of firm/partners

A certified copy of the above duly verified with the original shall be obtained.

Accounts of companies:

1. Name of the company
2. Principal place of business and registered office
3. Mailing address of the company
4. Telephone/Fax Number
5. Certificate of Incorporation and Memorandum & Articles of Association
6. Resolution of the Board of Directors to open an account and list of officials authorized to
operate the account
7. Identification of authorized signatories should be based on photographs, and signature
cards duly attested by the company
8. Power of Attorney, if granted to its managers, officers or employees to transact business
on its behalf
9. Copy of PAN allotment letter in the name of the Company.


Accounts of trusts & foundations

1. Names and addresses of the founder, managers/directors and the beneficiaries
2. Telephone/fax numbers

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3. Certificate of Registration, if registered
4. Power of Attorney granted to transact business on its behalf
5. Any document listing out the names and addresses of trustees, settlers, beneficiaries
and those holding Power of Attorney, and other key officials involved in the day to day
management of the trust to the satisfaction of the respective bank.
6. Resolution of the managing body of the foundation/association
7. Photograph of operating trustees
8. Telephone bill/utility bill
9. Identification and address proof document of the person holding an attorney to transact
on its behalf


Individual NR Accounts

1. Accounts to be opened on the basis of the following documents-
2. Passport & Residence Visa - Copies of these documents sighted in original by the bank
official or duly attested by Banker/Notary Public/Indian Embassy/ Employer to the
satisfaction of the bank.
3. Mis-spelt Names in the Identification Proof documents If the name has been mis-spelt
on the document, the document can be accepted provided the document is a photo
document and the photograph resembles the photograph submitted with the Account
Opening Form (AOF) and the address on the document is the same as that on the AOF.
4. There should not be any ground of doubt while opening the account.

Minors Account

Often a family member or guardian would open an account for a minor. In cases where the
adult opening the account does not already have an account with the bank, the
identification proof for that adult or any other person who will operate the account should be
obtained. In case of self operated minor accounts in addition to the photograph and proof of
age, the documents required to establish the identity and address as applicable in the case
of Individual be obtained.

Joint Account

In case of joint accounts, applicants who are not closely related to each other (as can be
inferred from the Account opening form) would require to establish their identity and
address independently and submit separate documentary evidence towards identity and
address proof.

Society/Associations/Clubs

In the case of applications received on behalf of clubs or societies, branches shall satisfy
themselves as to the legitimate purpose of the organisation by going through the
constitution. The identity of the authorised signatories should be verified initially in line with
the requirements for personal customers. When signatories change, care shall be taken to
ensure that the identity of any new signatories has been verified.

The following documents to be obtained for opening accounts of Clubs, Societies and
Associations wherever applicable:
1. Resolution for opening of the account

66
2. A copy of Bye-laws
3. Copy of certificate of registration in the case of registered clubs, societies and
Associations.
4. Identification and address proof document, photographs of all signatories

Hindu Undivided Family [HUF]

HUF comes into being because of a particular concept under Hindu Law whereby all the
members of the family reside together jointly, carry on a business activity jointly and hold
the property jointly and therefore, it is termed as Hindu Undivided Family.

The following documents to be obtained for opening accounts of HUF:

Declaration from the Karta.
Proof of Identification and address of the Karta.
Prescribed Joint Hindu Family Letter signed by all the adult co-parceners.

Verification of documents

The identification documents obtained in course of CUSTOMER DUE DILIGENCE
measures should be verified from the originals/ and by other means to the satisfaction of
bank, and the official verifying the documents with the originals shall authenticate the
copies by affixing his signature with words

Verified with Original

Flexibility in KYC standards to ensure there is no financial exclusion of poor people. While
carrying out due diligence the bank will ensure that the procedure adopted will not result in
denial of banking services to the general public especially those who are financially or
socially disadvantaged. Wherever, the prospective customer is unable to produce proof of
address (e.g. Children, dependent relatives, domestic servants etc) to the Bank, in such
cases, the bank may at its discretion, based on materiality and risk, rely on suitable
declarations and supporting documents to establish the address and take reasonable care
in this respect. With a view to ensure that strict adherence to KYC Standards would not
result in basic banking services being denied to underprivileged segments of the society.

For persons who intend to keep balances not exceeding Rs.50,000/- and where total credits
are not expected to exceed Rs.1,00,000/- in a year. Such accounts are made to conform to
regular KYC standards as and when the turnovers in the accounts or average balances
exceed the above limits and no further transactions are to be allowed in the account unless
it conforms to usual KYC norms.

Persons who receive one time payments from government or other agencies on exceptional
circumstances (death claims, grant of relief etc.) in excess of the prescribed limit may be
allowed to open accounts as per the simplified norms.

Identification for non-account holders for one-off transaction

Customer Identification Procedures will also be carried out in respect of non-account
holders approaching bank for high value one-off transaction. Customer approaching for
one-off transaction shall have to submit an identification proof to the satisfaction of the
Bank.

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Monitoring of Cash Transactions

Besides recording and reporting of cash transactions of Rs.10/- lacs and above branches
are required to issue Demand Drafts/Bankers cheques Mail Transfer and Telegraphic
Transfer for Rs.50,000/- and above only by debit to customers account or against cheque
and not against cash.

Quoting of PAN/GIR number

PAN/GIR number is required to be quoted as under:
1. A time deposit exceeding Rs.50,000/- with a Banking Company.
2. Opening of an account with Banking Company, other than a time deposit account. In
case Pan / GIR No. is not made available then declaration in form No. 60 / 61 to be filled
by the customer.
3. Amount received in cash for purchase of Bank drafts and/or Pay orders and/ or Bankers
Cheques for an amount aggregating Rs. 50,000/- or more during any one day.
4. Payment in cash for purchase from Bank, foreign currency in connection with travel to
any foreign country of an amount exceeding Rs. 25,000/- at any one time.
5. Any cash deposit aggregating Rs. 50.000/- in any one-day.

The Pan No. is to be verified with the original PAN card.

The following cash transactions are to be reported

1. All cash transactions of the value of more than Rs.10/- lacs or its equivalent in foreign
currency;
2. All series of cash transactions integrally connected to each other which have been
Valued below Rs.10/- lacs or its equivalent in foreign currency where such series of
transactions have taken place within a month.
3. While filing CTR, individual transactions below rupees fifty thousand may not be
included.

Obligation of the Staff

1. The bank shall ensure that all employees are aware of their obligations and have an up-
to-date knowledge of statutory and regulatory requirements so that they effectively
practice these to combat money laundering and prevent usage of our Bank as conduit
for money laundering purposes by the criminal elements of the society.
2. It should be ensured that there is no undue delay in arriving at such a conclusion once a
suspicious transaction report is received from a branch or any other office. Any lapse
and intentional circumvention on prescribed procedure and guidelines of KYC and AML
will be viewed seriously and necessary action will be taken as deemed fit by
management.
3. The branch will regularly hold meetings of the staff and the minutes will be recorded at
branch level under the signature of the Branch Head confirming dissemination of the
contents of the circulars that are issued by the higher authorities on the subject of Anti-
Money Laundering from time to time.
4. It is an offence under Prevention of Money Laundering Act (PMLA) 2002 not to report
suspicious activity/transaction as indicated above and punishable with a fine of not less
than Rs 10,000/ and may extend up-to Rs 1 lac for each failure.

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Fictitious offers of cheap funds from abroad-adherence to KYC/AML guidelines in
Opening / monitoring of transactions in accounts.

1. Generally the fraudsters open and route transactions through salary/savings
accounts categorized as low risk, by way of small initial deposits to evade detection.
The branches should probe the abnormal patterns of transactions vis--vis profile of
the customers especially salary accounts, newly opened accounts in the initial 3-6
months of their opening.
2. The customers should be sensitized regarding such lottery winnings where they have
been advised to deposit money in specified accounts. The branches should also
publicize the same.
3. The branches may sensitize the front office/operations desks as soon as a CTR/STR
is filed in an account to alert dealing staff.

Branches are further advised to report such Suspicious Transactions if any as
Suspicious Transaction Reports (STRs) to the Principal Officer (PO) for onward
submission to FIU-IND

Customer Education

The bank recognizes the need to spread awareness on KYC, Anti Money Laundering
measures and the rationale behind them amongst the customers. The Bank shall prepare
literature/ pamphlets etc. so as to educate the customer of the objectives of the KYC
programme.

KYC for the existing accounts

While the KYC guidelines will apply to all new customers, the same will be applied to the
existing customers also. In this connection, all the branches have been advised to ensure
KYC compliance in all existing accounts including identity of the natural / legal person and
those of the beneficial owners. Similarly, the Bank has also ensured that term / recurring
deposit accounts are subject to KYC procedures at the time of renewal of the deposits.
Branches to undertake periodical updation of KYC data
(including photograph/s) after the account is opened. The periodicity of such
updation should not be less than once in five years in case of low risk category
customers and not less than once in two years in case of high and medium risk
categories.

At Branch level report through RPTRA menu should be taken out for ready reference
and for inspection purpose on every half year in January and July and efforts should
be made to control accounts of high risk and medium risk category.

Indicative List of Suspicious Activities
1. Exchanging an unusually large amount of small denomination notes for those of higher
denomination;
2. Purchasing or selling of foreign currencies in substantial amounts by cash settlement
despite the customer having an account with the bank;
3. Frequent withdrawal of large amounts by means of cheques, including travellers
cheques;
4. Frequent withdrawal of large cash amounts that do not appear to be justified by the
customers business activity;

69
5. Large cash withdrawals from a previously dormant/inactive account or from an account
which has just received an unexpected large credit from abroad;
6. Company transactions, both deposits and withdrawals, that are denominated by
unusually large amounts of cash, rather than by way of debits and credits normally
associated with the normal commercial operations of the company, e.g. cheques, letters
of credit, bills of exchange etc.;
7. Depositing cash by means of numerous credit slips by a customer such that the amount
of each deposit is not substantial, but the total of which is substantial.
Transactions that do not make Economic Sense

1. A customer having a large number of accounts with the same bank, with frequent
transfers between different accounts;
2. Transactions in which assets are withdrawn immediately after being deposited, unless
the customers business activities furnish a plausible reason for immediate withdrawal.

Activities not consistent with the Customers Business

1. Corporate accounts where deposits or withdrawals are primarily in cash rather than
cheques.
2. Corporate accounts where deposits & withdrawals by cheque/telegraphic
transfers/foreign inward remittances/any other means are received from/made to
sources apparently unconnected with the corporate business activity/dealings.
3. Unusual applications for DD/TT/PO against cash.
4. Accounts with large volume of credits through DD/TT/PO whereas the nature of
business does not justify such credits.
5. Retail deposit of many cheques but rare withdrawals for daily operations.

Attempts to avoid Reporting/Record-keeping Requirements

1. A customer who is reluctant to provide information needed for a mandatory report, to
have the report filed or to proceed with a transaction after being informed that the report
must be filed.
2. Any individual or group that coerces/induces or attempts to coerce/induce a bank
employee not to file any reports or any other forms.
3. An account where there are several cash deposits/withdrawals below a specified
threshold level to a avoid filing of reports that may be necessary in case of transactions
above the threshold level, as the customer intentionally splits the transaction into
smaller amounts for the purpose of avoiding the threshold limit.

Unusual Activities

1. An account of a customer who does not reside/have office near the branch even though
there are bank branches near his residence/office
2. A customer who often visits the safe deposit area immediately before making cash
deposits, especially deposits just under the threshold level. Funds coming from the list
of countries/centres, which are known for money laundering.

Customer who provides Insufficient or Suspicious Information

1. A customer/company who is reluctant to provide complete information regarding the
purpose of the business, prior banking relationships, officers or directors, or its locations

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2. A customer/company who is reluctant to reveal details about its activities or to provide
financial statements
3. A customer who has no record of past or present employment but makes frequent large
transactions.

Certain Suspicious Funds Transfer Activities

1. Sending or receiving frequent or large volumes of remittances to/from countries outside
India.
2. Receiving large TT/DD remittances from various centres and remitting the consolidated
amount to a different account/centre on the same day leaving minimum balance in the
account.
3. Maintaining multiple accounts, transferring money among the accounts and using one
account as a master account for wire/funds transfer.

Certain Bank Employees arousing Suspicion

1. An employee whose lavish lifestyle cannot be supported by his or her salary.
2. Negligence of employees/willful blindness is reported repeatedly.

In terms of PMLA rules, suspicious transactions include inter alia transactions which give
rise to a reasonable ground of suspicion that these may involve financing of the activities
relating to terrorism. The branches are also supposed to submit CCR (Counterfeit
Currency Report) to FIU, New Delhi. The KYC norms / AML standards / CFT (Combating
financing of Terrorism) measures have been prescribed to ensure that criminals do not
misuse the banking channels.

Amendments in the KYC-AML-CFT policy, opening of Small Account for details
refer to HO:BR:103.55 dated 19.03.2011.

Counterfeit notes case Treatment
The prevention of Money-Laundering (PML) Act, 2002 and the rules thereunder require
banks to submit to FIU-IND, all cash transactions where fake / forged or counterfeit
currency notes have been used as genuine.Apart from obligation under PML Act, 2002,
branches have to realize the threat by criminal elements in waging economic terrorism
through injection of fake currency notes.
Branches including currency chest branches are, therefore, advised that;
1. Fake / forged Notes detected in cash received are neither to be destroyed nor to be
handed over to the customer.
2. Fake/Forged Notes are to be impounded by following prescribed procedure. Receipt
in the prescribed format to be given to depositor / tenderer.
3. FIR to be lodged with the police authorities on the same day as per the prescribed
format.
(Except detection of counterfeit notes up to 4 pieces in a single transaction. In this case
consolidated report is to be submitted to police authorities at the end of month in prescribed
format as circular no.HO:BR:103:162 dated 02.08.2011)

New guidelines

1. In case of change of mobile no of customers branches need to enhance monitoring
by calling on such mobile no or seeking information through email

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2. Branches may transfer existing accounts at another branches without insisting on
proof of address on self declaration basis subject to submitting of proof of address
within six months

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1. KYC/AML act passed in
a) 2000
b) 2001
c) 2002
d) 2003
e) 2004

2. Which is not a key element of KYC
a) Customer acceptance
b) Customer identification
c) monitoring of transaction
d) risk management
e) none of these

3. Which is not necessary for opening a saving account
a) Identity proof
b) address proof
c) Introduction
d) Photograph
e) all are necessary

4. Cash transactions are mandatorily be reported
a) Above 2 lac
b) above 5 lac
c) above 10 lac
d) above 15 lac
e) above 20lac

5. When a customer is not in a position to submit PAN while depositing Rs 50000
or more , he/she is required to provide
a) Identity proof
b) address proof
c) form no 35(A)
d) form no 60/61

Answers

Q 1 2 3 4 5
A c e c c d

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HR Polices of Bank and Service Conditions of Officers

Quick Bites

Bank has Progressive HR Polices in areas of Recruitment, Career Progression,
Promotion, Transfer/deployment, Performance Management, Training, and Overseas
Deployment in line with best HR Practices.
Bank of Baroda provides excellent career development opportunities to officers. These
opportunities offers scope of developing personally and professionally.
Officers have opportunities to work in overseas branches and offices also.
Bank Provides comprehensive Trainings in functional, technological and behavioural
areas .
Employees are also deputed for external Training as also for overseas Training.
Eligible employees are reimbursed fees for pursuing professional and computer education
in addition to incentives.

HR Polices

Bank has Progressive HR Polices in areas of Recruitment, Career Progression, Promotion
Policy, Transfer/deployment, Performance Management, Training, and Overseas
Deployment in line with best HR Practices.

Bank of Baroda provides excellent career development opportunities to officers who joined
General stream as also to those officers who joined as Specialist officers. We make the
decision to hire based on your potential to succeed, and we help you achieve that potential.

Careers, here are challenging and offer you scope of developing personally and
professionally. You will be expected to contribute from your first day, and as your skills
grow, so will the level of your responsibilities.
There are various ways to learn. Bank partner with you to identify the areas you need to
grow professionally through, on the job training, on-the-job experiences, internal as well as
external training and exposure to various challenging assignments including assignments at
overseas branches of Bank.

Career development opportunities are available both vertically as also horizontally.
Your function may offer function-specific development opportunities as part of your
orientation and skill building. There are various roles at branch in different functional areas
such as credit, marketing, foreign exchange business, retail banking and branch operations.
The role of branch head is of course the most challenging role available to officers
beginning from heading small branch to medium, large, very large and exceptionally large
branches (classification depending on business.) To maximize your professional growth
and performance, exposure will be given in above areas to ensure imparting experiences,
knowledge and skills you need to improve to become an effective and confident leader. The
Bank helps you achieve future growth and eases your transition into roles with more
responsibility.

After completion of certain tenure in branch operations, officer is also exposed to roles in
Regional, Zonal and Corporate level involving policy framing and policy executing in above
functional areas i.e. credit, marketing, foreign exchange, retail banking ,HR,IT, Risk
Management, Treasury Operations, Rural and Agri Banking and branch operations.

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Vertical Career Progression:

Bank has Promotion Policy based on competencies and meritocracy details are as under:
(Ref: Circular no. BCC:BR:102:94 dated 15.03.2010)

Career path policy for Generalist and Specialist officers
(BCC/BR/104/445 dated 11.12.2012)
For Generalist Officers: The policy envisages that all generalist
officers need to have certain exposures in:

Exposure to cross functional roles
Credit Roles
Branch Head
Administrative Roles
Roles across geographies

For Specialist Officers:

Specialist officers can either opt for conversion path to operations after a minimum
period of 5 years in the specialization area and before promotion to scale-V or can
continue in specialist area. There will be a mandatory conversion to the generalist
scheme for Agriculture officers in scale IV.
Specialist officers career progression to higher scales will be in specialist stream
only and will depend on available vacancies in the respective specialist cadre.
Specialist officers in Agriculture, Finance, Credit, Forex, Risk management,
Treasury, Chartered accountant and Wealth management will be treated under
general stream for the purpose of career progression.

Mandatory operations stint for certain specialist officers :

This mandatory operations stint will be given to these specialists in scale-I and scale-II after
completion of at least 2 years in specialized cadre.

One year compulsory branch operation exposure for HR, IT, Planning Specialists
3-6 compulsory branch operations exposure for Law specialists

Banks Promotion Policy

Minimum length of service in each Grade/Scale
Merit & Performance based promotions
Promotions linked to vacancies
Provides career growth on basis of following factors:
Knowledge
Performance
Potential
Benchmarking at every stage in selection

PROMOTION AND CAREER GROWTH

(Cir.No.BCC/BR/102/92 dated 15.03.2010)

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The promotion policy of the Bank has been revised and the new policy has been framed
with the objective to make it responsive to the needs of the Bank as also the aspirations of
Officers. As per the policy there are -02- channels of promotion in Officers cadre upto
SMG/S-IV. The details of the same are as under :
PROMOTION FROM NORMAL TRACK FAST-TRACK
JMG/S-I to MMG/S-II -05- Years -03- Years
MMG/S-II to MMG/S-III -04- Years -03- Years
MG/S-III to SMG/S-IV -03- Years -02- Years
SMG/S-IV to SMG/S-V -02- Years --
SMG/S-V to TEG/S-VI -02- Years --
TEG/S-VI to TEG/S-VII -02- Years --

The eligibility for the Fast-Track channel shall be limited to the Performance factor for which
the criteria stipulated is a minimum of 75% performance score in each of the last -03- years
performance ratings.

GOVERNMENT GUIDLINES FOR PROMOTIONS
(Cir.no. BCC/BR/104/445 dated 11.12.2012)
Two years continuous rural service is required for promotion from Scale-I to II.
Total of three years rural/semi-urban service (including rural service in scale I) is
required for promotion from Scale-II to III.
For being eligible for promotion to Scale-V, candidate should have been a Branch
Head at least three years.
For promotion to scale-VII, the candidate should have worked as RH or have worked
in scale-III to V in RO for two years.
During interview for scales-V,VI and VII weightage should be given to the following :-
a) Whether the officer has worked in different specialized areas of the bank.
b) Whether officer has been posted to different parts of India or has been only
one/few Region/Circle.
c) Whether the officer has experience of working in the field as well as working
in administrative offices.
d) Whether the officer has professional qualifications and/or has the officer has
acquired any additional qualification after joining the bank.

JM-I to MM-II

Minimum Service Required in JM-I :

Normal Channel : -5- years of service
Fast-Track Channel : -3- years of service provided Minimum 75% performance
score in last 3- years performance ratings

MM-II to MM-III

Normal Channel-Minimum 4 years service in MM-II Mandatory 3 years Rural/ SU
service for Generalist officers

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Fast-Track Channel : -3- years of service provided Minimum 75% performance score
in last 3- years performance ratings . Mandatory 3 years Rural/ SU service for
Generalist officers

MM-III to SM-IV

Normal Channel- Minimum -3- years service in MM-III
Fast Fast-Track Channel : -2- years of service provided Minimum 75% performance
score in last 3- years performance ratings

SM-IV to SM-V

Minimum -2- years service in SM-IV provided Minimum 75% marks in APR/EPMS for each
of the years of service reckoned for eligibility for promotion.

SM-V to TEG-VI

Minimum 2 years service in SM-V provided Minimum 75% marks in APR/EPMS for each of
the years of service reckoned for eligibility for promotion.

TEG-VI to TEG-VII

Minimum 2 years service in TEG-VI provided Minimum 75% marks in APR/EPMS for each
of the years of service reckoned for eligibility for promotion.

Other aspects on Eligibility

Relaxation/ Exemption in Rural/ SU Service
Physically handicapped
Officers having mentally retarded children
Temporary exemption to Officers Posted abroad till they are abroad.
Sports persons (for games recognised by Banks Sports Board)
Banks Board can relax Minimum Qualifying Service

Periodicity : Every Year as far as possible

Vacancies: Vacancies to be determined before commencement of promotion exercise

Selection Area
All Officers in India and expatriates posted abroad
No. of officers to be considered restricted 3 to 4 times number of vacancies.

Written Test (upto SM-III)

For assessing knowledge
For assessing preparedness/ ability to take up higher responsibilities
Content/ Type of Written Test as per Banks needs
For Specialists : Test in respective Field (except Agri & Credit Officers)
Bank may engage external professional bodies

Interview: For assessing potential

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Benchmarks:

Written Test: Minimum qualifying marks: 40 %
Performance Ratings: Minimum average of last -3- years should be 60%
Potential/Interview: Minimum qualifying marks 50 % upto Scale IV and 70% for
promotion from Scale V onwards
Aggregate: Minimum qualifying marks 60% upto scale IV and 70% from Scale V
onwards.

Employee performance Management System ( EPMS)

Implementation of Annual performance Appraisal Reports ( APAR) w.e.f. 2011-12
(BCC/Br/104/129 dated 16.04.2012, BCC/BR/105/17 dated 16.01.2013)

Bank has implemented very comprehensive Employee Performance Management System.
There are 5 key components of Employee Performance Management System :

1. Performance Planning : This is the stage of mutual goal-setting for finalizing KRAs
and Business/ Strategic Initiatives in respect of officers posted at administrative
offices. The KRAs are mainly divided into 2 parts :

(i) Financial/ Business KRAs and
(ii) Customer/ Process KRAs

Business/ Strategic Initiatives are required to be finalized in respect of functional
area which should help in improving the officers performance in the broad KRA
areas and also help in attainment of units/ departmental objectives. Each of these
initiatives shall be strictly measurable/ verifiable and are to be set and assessed on a
quarterly basis.

2. Performance Observation : This involves :

(i) Mid-Term Review ;
(ii) Re-setting of Goals, as required ;
(iii) Setting and assessment of initiatives on a quarterly basis(for officers in Admn.
Offices)

3. Performance Analysis : This involves :

(i) Self-appraisal/ scoring ;
(ii) Appraisal by Reviewing Authority (RA) ; and
(iii) Appraisal by Final Reviewing Authority (FRA).

4. Performance Review Discussion :

This involves indicating the final ratings giving feed-back to the individual officer on
his performance during the year and goal setting for the next year.

5. Performance Development Plan : The plan should include further development of
the officers and planning how to improve their performance further. This plan then
forms the basis of further development action by HR Department at Regional Office.

78
Other salient features of Performance Management System :

Transparency

The system is an open transparent system from the very start to finish and allow the officers
to first score on each parameter except competency dimension which becomes the basis
of reviewing authorities for assessments.

Performance with Banks Goals

Another notable feature of this new system is that individual plans/ targets/ objectives are
now to be linked to the Units/ Branchs/ Departments/ objectives for the year and thereby
relationship between the organizational performance and individual performance is sought
to be established. Targets shall not rest at the level of the operating units head and have to
now percolate down to the level of the individual officer, thereby linking the individual
performance to the Units performance.

Financial/ Business KRAs

Another notable feature is that all officers in Branches below Branch head have to
mandatorily finalise some Financial/ Business KRAs by way of quantitative targets for
selling/ cross-selling, carrying a compulsory weightage of 30 marks. Similarly, initiatives
need to be mandatorily pre-finalised and assessed for officers in Administrative offices on a
quarterly basis.

KRA dictionary

To facilitate the process of finalizing on the Key Result Areas and Key Performance
Indicators (KPIs) for all officers, a comprehensive KRA dictionary has been prepared
containing a ready exhaustive list of both Financial/ Business KRAs and the Customer/
Process KRAs pertaining to functions/ activities/ Departments in a Branch/ Regional/ Zonal/
Corporate Office.

Performance Review Discussion:

The new system requires discussing the final scores to the individual officers. This
intervention alongwith the rigorous goal-setting mechanism being introduced will enable a
greater degree of objectivity in the entire performance assessment process and also induce
a greater level of transparency. Performance review discussion meeting is not just for the
ratings or analyzing the performance over the last year but also taking stock of the
problems encountered, finding solutions, offering support as required and planning/ goal-
setting for the next year. Reviewing Authorities will be required to undertake the
performance review discussion at the end of the year which is a 1-1 meeting between him
and individual officer and to provide elaborate feedback to the officer.

The Government has devised four types of formats for APAR which are now mandated to
be used for all officers.
APAR for officers in scale-I to Scale-VI ( Budgetary) This form shall be used for the
performance of Officers/Executives posted in the Budgetory positions. (Branch
Heads, Regional Heads, DRMs, Dy. Zonal Heads,Chairmen and regional Managers
of RRB sans Associate banks.
APAR for officers in scale-I to Scale-VI ( Non-Budgetary) this form shall be
applicable for the other officers,whether working at branches or at Administrative

79
office including Corporate DGMs,Officers and Heads of specialised branches/outfits
like TCs, ZICs, SMELFs, RLFs, CSOs, CBOs, ARMB, CFS,RBOs, Service
Branches, etc.
APAR for officers in scale-VII (General managers) This form shall be applicable for
all General managers including Zonal Heads in the rank of GM.
APAR for CMDs and EDs

New three tier system of Reporting, Reviewing and Accepting Authoritues
1. Reporting Authority
2. Reviewing Authority
3. Accepting authority

Communication of final scores

In APAR system final ratings will be uploaded in HRnes for all officers in Scale-I to scale-
IV, which individual officers will be able to view through Self service module.
[
Horizontal Career Progression:

Bank also has a highly objective and transparent selection process for identification and
selection of officers for posting abroad details of which is given in Annexure 1.

Employees having aptitude for teaching has option to choose role of faculty in Banks
Training system. Normally Scale III and Scale IV officers are selected for faculty Position. In
exceptional cases, Scale II officer is also selected as faculty. Selection for Faculty position
is done through group Discussion/Presentation/Interview. Normal tenure given in Training
system is -5- years. Officers selected as faculty is given additional incentive by way of
deputation allowance.

Building Competencies

For building competencies, Bank has Strong rooted Training System through Apex body
Staff College and 13 other Institutes including Special Institute for IT courses with all
modern facilities. The Governing Board on Training, which is the apex body in the Bank on
training matters, outlines the Training policy for the Bank as a whole.

New employees enroll in the "Induction Programme, an internal, introduction to banks
values, business indicators and functional areas that support our business goals. As each
career path comes with its own unique set of dynamics, we offer specialized training as
well, including comprehensive programme on Grooming officers in wholesale banking,
SME and forex. Apart from such specialized programmes, other programmes are also
conducted in Key areas viz marketing, HR, IT, Legal, Wealth Management, Security/Fire,
Vigilance, Inspection and Audit etc. to support employees at critical career transition points.

Grooming is done through

In House Training
On the Job Training
External Training
Job Rotation
E-Learning/Global Virtual Class

80
Bank also makes extensive use of external training resources of prestigious management
institutes and training institutions in India like National Institute of bank Management
(NIBM), College of Agriculture Banking, Pune, Banking Institure of Rural Development
(BIRD), Lucknow, Indian Institute of Management(IIMs) at Bangalore/ Ahmedabad, Indian
Institute of Banking & Finance, Mumbai ( IIBF) etc.

Pursuing Professional and Computer Education:

To empower (For details refer Circular no. BCC:BR:95:208 dated 1.06.2004)
Knowledge has become a key differentiator today and it can be safely said that this is a
knowledge era where knowledge is the real key to success and acquisition of knowledge, a
prime driver of development. Knowledge, unlike cost and technology cannot be copied but it
can be used to deliver value to our customers in a way that our competitors cannot
emulate. KNOWLEDGE IS POWER.

With this objective and also to empower our employees in their pursuit of more advanced
and specialized knowledge, a scheme is framed which seeks to tap the in-house talent by
encouraging the employees interested in pursuing Professional and Computer Education
offered by recognized institutes of repute. Bank reimburses eligible employees for the cost
of job-related courses from accredited institutions with monetary incentives on successful
completion of those courses. The loans are also available for employee education.

Course Coverage - Professional Courses & Information Technology Courses
Loan amount (Max)- Rs.1,00,000 & Rs.50,000
(however, in certain courses like BCA/ MCM/ MCA /BTech/MTech In Computers
Rs.1,00,000)
Incentives on successful completion of courses Ranging from Rs.5,000/- to Rs.10,000/-
depending on the nature of Course completed.

For further details, please refer to circulars:
BCC/BR/91/243 dated 11.08.99
BCC/BR/96/208 dated 01.06.04

E learning Initiatives of Training System

To broaden the reach of Training System and to have cost effective learning, that too at the
convenient time of staff members, we have initiated few major steps.

1.Quiz of the Month: (uploaded in Knowledge Management Portal)

The path to access the Quiz of the Month is as under:
Login to KM Portal Click More Click Baroda e-LearningClick Quiz.

2. Baroda e-Learning: (Uploaded in Knowledge Management Portal)

The path to access the Baroda e-Learning is as under:
Login to KM Portal Click More Click Baroda e-LearningClick Study Room.

Following e_Learning Modules are uploaded in Baroda e_Learning .

1 Pre Induction Course contains 5 modules.
2 E_Channel Products contains 3 modules.

81
3 KYC & AML
4 Micro Finance contains two modules.
5 Finacle Staff Housing Loan
6 Simulator Cheque Module

3.E-learning modules in Oracle Learning Management (Through HRnes HRMS)

Following e_Learning Modules are uploaded in OLM.

1 Pre Induction Course contains 5 modules.
2 E_Channel Products contains 3 modules.
3 KYC & AML
4 Financial Inclusion.
5 Finacle Staff Housing Loan

While E channel Products , KYC & AML and Financial Inclusion module is useful to all
employees, Pre Induction course is targeted for new recruits .However, even existing
employees can go through it to refresh their knowledge as it covers all areas of our Bank.
There is some time leg between new recruits joins the Bank and comes to classroom for
Induction programme on account of administrative reasons. This module will facilitate them
to know about Bank immediately after joining the Bank.

One can access these modules in HRnes HRMS by following steps:

Type url http://ebizapp.bankofbaroda.co.in:8004/ in CBS PC.
Enter your Username & Password of HRnes to logon.
Click BOB Learner Self Service in Navigator then click Learner Home
Select the Value as Class in Search and type e% or Pre Induction% ,then click go
Course Name e Channel Products or pre Induction Course will appear as per
search option. At Right most of the course , click Enroll and click Apply.
A confirmation message You have successfully enrolled in the class e Channel
Products or Pre Induction Course as per option selected will appear.
Course will appear with active Play Button.

Additional channel of learning through KM Portal and OLM will facilitate employees in
continuous learning and we are confident that learners of our Bank will enjoy this innovative
and technology driven learning methodology.

Other measures for building Competencies:

Sponsorship to Post Graduate certificate/diploma courses at National Institute
of Bank Management (NIBM), Pune and Institute for Development and Research in
Banking Technology (IDRBT), Hyderabad etc. and Xavier Institute of Management,
Bhubanshwar.
Star Performers and Officers with potentials are sent for overseas training, thereby
imparting knowledge, building competencies and enabling them to have a wider
international exposure.
Introduction of unique organization wide Talent identification and Development
Programme called KHOJ. and Talent Pool
holding various knowledge management events
setting up of the Learning Resource centre

82
Facilitating Organisation Culture

Tenets of sharing, openness, collaboration, confrontation, autonomy and high
business ethics.
Right developmental inputs go into the creation of a positive attitude and the right
mindset.
Open work systems, which encourage ideation, encouragement, nurturance and
leadership support, are the hallmark of the BOBs organizational framework.

SERVICE CONDITIONS

The service conditions of Officers are governed by the Bank of Baroda Officers Service
Regulations -1979 (BOBOSR-1979)

APPOINTMENTS

All appointments in the Officers cadre are made in terms of the Officers Service
Regulations by the Competent Authority and the Government guidelines issued from time to
time including guidelines on reservations for SC/ST/OBC/Ex-servicemen/physically
challenged, etc.

PROBATION

The period of probation for different category of Officer is as follows:

CATEGORY OF OFFICERS
PERIOD OF
PROBATION
Directly appointed as Officers (DRO) to the Junior Management
Grade / Scale (JMG/S-I) or Middle Management Grade/ Scale
(MMG/S-II)
One Year
An employee of the Bank promoted as on Officer in the JMG/S-I 6 Months
An Officer appointed to any Grade other than Junior
Management Grade
Such period may
be decided by the
Bank

Provided that the Competent Authority may, in the case of any Officer, reduce the period of
probation or dispense with the probation.

CONFIRMATION

In terms of the Officers Service Regulations, an Officer shall be confirmed in the services of
the Bank, if, in the opinion of the Competent Authority, the Officer has satisfactorily
completed his/her period of probation. The period of probation is extended if a DRO
remains on loss of pay or on unauthorized absence or his/her performance is not found to
be satisfactory.

TRANSFER FOR OFFICERS IN JMG/S-I TO MMG/S-III

83
Every Officer is liable for transfer to any Branch/ Office of the Bank in India. The Bank has a
transfer policy for the Generalist Officers upto MMG/S-III. The transfers can be at the
request of an Officer as well as at the Banks instances after taking into consideration the
business imperatives and administrative requirements.

AGE OF RETIREMENT

(Books of Instructions - Volume 13and HO/BR/92/290 dated 13.10.2000)
In terms of the present Regulations of the Bank, age of retirement of an Officer shall be 60
years. The date of retirement in case of Officers born on any day except 1
st
day of the
month is the last day of the birth day month when the Officer turns 60. In case an Officer is
born on the 1
st
day of any month then he/she shall retire on the close of the last day of the
preceding month in which he /she turns 60.

RESIGNATION

In terms of the Banks Officers Service Regulations, an Officer shall not leave or
discontinue his services in the Bank without giving a notice of 3 months in writing to the
competent authority of his/her intentions to leave or discontinue his services or resign.

GRADES

Officers in the nationalized Banks have been categorized into four grades and seven
scales. The four grades show the broad levels of responsibility in the Officers cadre.

GRADES / SCALES DESCRIPTION
Top Executive Grades
(TEG/S-VI and
TEG/S-VII)
The Officers in Top Executive Grade are entrusted
mainly with the responsibility of policy making, review
and control functions etc. some of them are posted as
Zonal and Regional Heads. These Officers also hold
the responsibility of functional areas in the Bank, e.g.
Credit, International Banking, Planning & Development,
HR etc.
Senior Management
Level
(SMG/S-IV and
SMG/S-V)
At Senior Management Level, the Officer may hold
charge of a very Large and Exceptionally Large Branch
or they may also hold the position of Regional Heads
or Deputy Regional Heads or give support to the Top
Management.
Middle Management
Level (MMG/S-II and
MMG/S-III)
Officers in the Middle Management level head medium
and large branches or give support to the Officers in
Top/ Senior Management Grades.
Junior Management
Level
(JMG/S-I)
The Officers in the Junior Management level may work
as Mangers of small branches or second line Officers
in branches and other offices of the Bank.

Depending upon the requirements, the Bank may also appoint Specialist Officers like IT
Officers, HRM Officers, Security Officers, Law Officers, Economists, Hindi Officers, etc.

SCALES OF PAY

84

GRADE/SCALE AMOUNT (RS)
JMG/S-I 14500 - 600/7 - 18700 - 700/2 20100 - 800/7 - 25700
MMG/S-II 19400 - 700/1 20100 - 800/10 - 28100
MMG/S-III 25700 - 800/5 29700 - 900/2 - 31500
SMG/S-IV 30600 - 900/4 34200 - 1000/2 - 36200
SMG/S-V 36200 - 1000/2 38200 - 1100/2 - 40400
TEG/S-VI 42000 - 1200/4 - 46800
TEG/S-VII 46800 - 1300/4 - 52000

Pay for the purpose of Provident Fund and Pension shall mean Basic Pay, including
Stagnation Increment, Professional Qualification Pay, Increment Component of Fixed
Personal Pay and Officiating Allowance.

INCREMENTS

The increments specified in the Scales of Pay as detailed above shall be subject to the
sanction of the Competent Authority, accrue on annual basis and shall be granted on the
first day of the month in which the same falls due. Officers in Scale I and II, 1 year after
reaching the maximum in their respective scales, shall be granted further increments
including stagnation increment(s) in the next higher scale.

FIXED PERSONAL PAY (FPP)
Fixed Personal Pay together with House Rent Allowance shall be at the following rates and
shall remain frozen for the entire period of service.

INCREMENT
COMPONENT(RS.)
D.A AS ON
01.11.2007 (RS.)
TOTAL F.P.P PAYABLE WHERE BANKS
ACCOMMODATION IS PROVIDED (RS.)
A B C
800 58 858
900 65 965
1000 72 1072
1100 79 1179
1200 86 1286
1300 94 1394
Note:
(1) F.P.P as indicated in C above shall be payable to those Officer employees who are
provided Banks accommodation.
(2) F.P.P for Officers eligible for House Rent Allowance shall be A+B plus House Rent
Allowance payable on the last increment of the relevant scale of pay.
(3) The increment component of F.P.P shall rank for superannuation benefits
INCREMENTS FOR JAIIB / CAIIB

An additional increment shall be granted in the scale of pay for passing each part of CAIIB
i.e. Part- I / Junior Associate of Indian Institute of Bankers (JAIIB) and Part- II / Certified
Associate of the Indian Institute of Bankers (CAIIB) Examination.

85
PROFESSIONAL QUALIFICATION PAY
PQP is payable to an Officer only if he/she has acquired Professional Qualification of JAIIB
(CAIIB part-I) or CAIIB (CAIIB Part-II) and has completed -01- year after reaching the top of
the Scale.

PQP-I (presently Rs.410/-) is payable to an Officer who has passed JAIIB/ CAIIB Part-I,
after reaching the top of the Scale.

PQP-II (presently Rs.1030/-) is payable to an Officer, who has passed CAIIB Part-II, after 2
years of reaching the top of the Scale.

SCHEME FOR ENCOURAGING EMPLOYEES TO PURSUE PROFESSIONAL AND
COMPUTER EDUCATION, THROUGH CORRESPONDENCE, PART-TIME AND
DISTANCE LEARNING (Books of Instructions HR)
To encourage employees to pursue Professional and Computer Education in order to
create a professionally cadre of manpower in different areas like Financial Analysis, Credit,
Merchant banking , Management, Information Technology etc the Bank has the above
mentioned scheme.

The Scheme seeks to tap the in-house talent by encouraging the employees interested in
pursuing Professional and Computer Education offered by recognized institutes of repute.
The Scheme is divided into three parts:

Part I : Grant of Educational Loan for financing the course to be
Pursued
Part- II : Reimbursement of Course Fees, on successful completion of the
course
Part- III : Awarding of cash incentives, on successful completion of the course

DEARNESS ALLOWANCE

The Dearness Allowance is based on the Index figures published in the Gazette of India /
Indian labour Journal circulated through the Indian Banks Association. The calculation and
revision of DA is done on quarterly basis for every rise or fall of 4 points over as per index
figure and the change in DA is made effective from May, August, November and February.
DA is payable on basic pay, Professional Qualification Pay, Officiating Pay if any.

Note:
On and from 01.11.2007, DA shall be payable for every rise or fall of four points over 2836
points in the quarterly average of the All India Average Working Class Consumer Price
Index (General) Base 1960=100 at 0.15% of Pay.
ACCOMMODATION & FURNITURE
(Cir.No.BCC/BR/99/335 dated 03.11.2007 and Cir.No. BCC/BR/102/147 dated
26.05.2010)

86

In terms of the Officers Service Regulation, no Officer shall claim residential
accommodation from the Bank as a matter of right. However, the Bank, at certain centers,
is having accommodations of its own either leased ones or otherwise, which are allotted to
Officers.
Whenever an Officer is provided with residential accommodation by the Bank, house rent
recovery shall be @ 1.20% of the first stage of the scale of pay in which the Officer is
placed or the standard rent for the accommodation, whichever is less. However, where
such residential accommodation is provided by the Bank, the charges of water, electricity,
gas etc are to be borne by the Officer.

Whenever the Bank is not able to provide residential accommodation, the officer is entitled
to acquire housing accommodation on personal lease on monthly tenancy for which rent
entitlement inclusive of taxes is as under:

TYPE OF AREA JMG/S-I MMG/S-II MMG/S-III
Mumbai / Delhi 12000 13000 13000
Other Major A
Class Cities
10000 11000 11000
TYPE OF AREA JMG/S-I MMG/S-II MMG/S-III
Area I 8000 8500 8500
Area II 4500 5000 5000
Others 3500 4000 4000

Note:
Brokerage equivalent to one month rent entitlement shall be reimbursed to Officer /
Executive at Major A Class cities and Area-I acquiring fresh accommodation on production
of receipt.

Brokerage charges equivalent to one months rent entitlement, at all Major A Class cities,
Area-I Centres, is reimbursable only once during the posting of an Officer in a particular
place/centre against submission of receipt.
[Ref :: BCC:HRM:104/H-5/9529 dated 11/09/2012]

HOUSE RENT ALLOWANCE
The Officers who do not stay in Banks accommodation or do not acquire accommodation
on lease, House rent allowance shall be paid at the following rates:

SR.
NO.
PLACE OF WORK RATES OF
HRA
1 Major A Class Cities and Project Area Centers in Group A
(Ahmedabad, Bangalore, Mumbai, Delhi, Chennai, Calcutta &
Hyderabad)
8.5% of Pay
2 Other places in Area I and Project Area Centers in Group B
(Place with population more than 12 lakhs)
7.5 % of Pay
3 Other Places (All other places which are not included in Major A 6.5 % of Pay

87
and Area I)

HOUSE MAINTENANCE EXPENSES
(Amount in Rs.)
PARTICULARS JM
G/S-
I
MM
G/S-
II
MM
G/S-
III
SMG
/S-IV
SMG
/S-V
SMG
/S-VI
SMG
/S-VII
Banks Accommodation
(BCC/BR/100/26 dated
31.01.2008)
500 600 700 1200 1200 1500 1500
Leased Accommodation
(BCC/BR/101/53 dated
13.02.2009)
300 400 400 500 500 600 600
Staying on Own
accommodation(BCC:BR:103/3
66dated30/12/11)wef01-01-12
200 300 300 400 500 500 600

ELGIBILITY FOR FURNITURE
(Amount in Rs.)
PARTICULARS JMG/S
-I
MMG/
S-II
MMG/
S-III
SMG/
S-IV
SMG/
S-V
SMG/
S-VI
SMG/
S-VII
Banks
Accommodation
70,000 90,000 2,50,0
00
3,00,0
00
Furnishing at Banks Instance
Other
Accommodation
40,000 60,000 80,000

Note:
Furniture rent recovery shall be @ 0.25% of the first stage of the scale of pay in which the
Officer is placed.

At the time of ceasing to be in service of the Bank on account of superannuation or on
promotion to Scale IV, officer will have to purchase furniture on written down book value.

(Ref: BCC:BR:103:365 dated 30
th
December,2011)

CITY COMPENSATORY ALLOWANCE (CCA)
The objective behind the payment of city compensatory allowance is to compensate the
employees for the high cost of living in the bigger cities. Rates of CCA are as under:-

SR
NO
PLACES RATES
1. Places in Area I and in the State of Goa 4% of Basic Pay subject to a
maximum of Rs. 540/- per
month
2. Places with population of five lakhs and
over and State Capitals and Chandigarh,
3% of Basic Pay subject to a
maximum of Rs. 375/- per

88
Pondicherry and Port Blair, not covered
by (a) above.
month.

MID ACADEMIC YEAR TRANFER ALLOWANCE
If an Officer is transferred from one place to another in the midst of an academic year and if
he has one or more children studying in school or college, in the former place, he is entitled
to Mid-Academic Year Transfer allowance of Rs. 700/- p.m. from the date he reports to the
latter place upto the end of the academic year in respect of all the children, provided that
such allowance shall cease if all the children cease studying at the former place.

DEPUTATION ALLOWANCE

If an officer is posted on deputation to another organization, deputation allowance is
payable at the following rates:
a) An Officer deputed to serve outside the bank, 7.5% of pay with a maximum of Rs.
2,300/- p.m.
b) An Officer deputed to an organization at the same place or to the training
establishment of the bank, 4% of pay with a maximum of 1,200/- p.m.

OFFICIATING ALLOWANCE

If an officer is required to officiate in higher grade/scale for continuous period of not less
than 7 days at a time or an aggravate of 7 days during a calendar month, he is entitled for
an officiating allowance equal to 6% of his pay for the period for which he officiates. Official
Allowance will rank as pay for the purpose of Provident Fund and not for other purposes.

HALTING ALLOWANCE/BOARDING EXPENSES

The Halting allowance is a payment made to an Officer in addition to other emoluments for
any day during which he is away from headquarters on duty to cover the ordinary daily
expenses incurred by him. Officers are paid halting allowances as per the details given
herein below:
(Amount in Rs.)
GRADES/SCALES OF OFFICERS MAJOR A
CLASS
CITIES
AREA
1
OTHER
PLACES
Officers in Scale IV and above 1000 800 700
Officers in Scale I,II and III 800 700 600
In the case of 4 Metro Centres, viz. Mumbai, Delhi, Kolkata & Chennai, Halting Allowance
to Officers in Scale IV and above shall be Rs.1200/- per diem and for Officers in Scale I, II
and III it shall be Rs.1000/-
An Officer is entitled to per diem Boarding Expenses at the following rates:

Note:-

For the purpose of computing Halting Allowance, per diem means each period of 24 hours
or any subsequent part thereof.

89

SR.NO. PARTICULARS HALTING
ALLOWANCE
1. Total absence is less than 04 hours NIL
2. Total absence is greater than 4 hrs but less than 8
hours
Halting Allowance
3. Absence is greater than 8 hours Full Halting Allowance
4. Lodging is provided as place of halting 3/4
th
Halting Allowance
5. Free boarding is provided at place of halt Halting Allowance
6. Free lodging & boarding is provided Halting Allowance

Note :
In the event of the Officer claiming boarding expenses on declaration basis without
production of bills for actual expenses incurred, he shall be paid boarding expenses upto
the limits stipulated for boarding charges and in such cases no Halting Allowance shall be
payable.

LODGING EXPENSES
(Cir.No. BCC/BR/100/248 dated 01.09.2008)
As per the Officers Service Regulations, Officer is reimbursed the actual hotel expenses,
restricting to single room accommodation charges in ITDC hotels of the corresponding star
category. The details of entitlement as per the scales are given herein below:

Grade of Officers
Eligibility in ITDC
Hotels
Max. Room Tariff Permissible
(excluding taxes)
Major A
Class Cities
Area I Other
Places
(Rs) (Rs) (Rs)
Top Executive Grade/
Scale VI & VII
4* Hotel 7800** 4400 4000
Senior Management
Grade/ Scale IV & V
3* Hotel 5000** 3400 3000
Middle Management
Grade/ Scale II&III
2* Hotel (Non-AC) 3400 2600 2200
Junior Management
Grade/ Scale I
1* Hotel (Non-AC) 2600 2200 1800
** In respect of New Delhi, Kolkatta, Mumbai, Chennai, Bangalore, Hyderabad, executives
may be reimbursed actual lodging expenses, maximum to the extent of 150% of the
applicable ceilings for major A classes cities.

Major A Class Cities : Mumbai, Kolkatta, Delhi, Chennai,
Ahmedabad, Bangalore and Hyderabad.
Area I Centres : Agra, Bhopal, Coimbatore, Indore, Jaipur,
Kanpur, Kochi, Lucknow, Nagpur, Patna, Pune,
Surat, Vadodara, Varanasi and Vishakapatnam.

(Area I: centres having population of above 12 lakhs as per Census 2001)

90
REIMBURSEMENT OF CONVEYANCE EXPENSES ON TRAINING
(Cir.No. BCC/BR/102/168 dated 22.06.2010)
Employee (workmen and non-workmen) deputed for non-residential training be reimbursed
conveyance charges at the rate of Rs. 125/- per working day at Mumbai, Delhi, Kolkata,
Chennai, Hyderabad, Ahmedabad, Bangalore and at the rate of Rs. 75/- per working day at
other centers. The aforesaid scheme also covers the officers who are deputed for non-
residential training organized by other institution/organizations, as well as those who attend
seminars and workshops as participants. Employees deputed for Residential Training
Centers are not entitled for this facility.

LEAVE

All kinds of leave are credited on 1
st
January every year. An officer is eligible for the
following kinds of leave which he can avail subject to sanction of competent authority.

Casual Leave (C/L)
An officer is eligible for 12 days C/L in a calendar year. During first calendar year of service,
an officer is eligible for Casual Leave on pro-rata basis even if he is confirmed in the first
calendar year itself, at the rate of one day for each month or part thereof.

Casual Leave not availed during a particular calendar year, will be treated as Unavailed
Casual Leave and the same can be accumulated to be availed in the following three years
otherwise the same shall lapse.

Privilege Leave(P/L)
One day for every 11 days of work can be accumulated upto 240 days. An officer is
required to submit the P/L application to the competent authority well in advance i.e at least
one month prior to his availing the same for considering sanction of the same.

Sick Leave
30 days of leave on half pay for each completed year of service can be accumulated
maximum upto 540 days in the entire service.

Additional Sick Leave

Available after completion of 24 years of service @ one month for each year of service in
excess of 24 years (Maximum 3 months)

Maternity Leave
Upto 6 months at a time. Not more than 12 months in the entire period of service.

Extra-ordinary Leave
An officer shall be eligible for extra-ordinary leave on loss of pay for not more than 360 days
during the entire period of service. Such leave may not be availed of except for sufficient
reasons on more than 90 days at a time.

Provided that in very special circumstances, the Board may grant extra-ordinary leave on
loss of pay to an officer up to a total period of 720 days.

COMPENSATORY OFF : [Cir.No.BCC:BR:97/352 dated 14-12-2005]

As the name suggests the facility of compensatory off to officers is granted with the
intention to compensate officers with an off day in lieu of their having to work on a weekly

91
off day/holiday on account of inevitable work exigencies. Off late, it has been observed that
at many places, compensatory off is being accumulated so that the same can be availed in
one lot or in conjunction with other types of leave.
This sort of accumulation and availment in one lot leads to prolonged absence of the
officers from work which has repercussions on smooth functioning and requires the
management to make alternate/substitute arrangements which disturbs the smooth work
processes. This is avoidable to a large extent if the compensatory off is availed at the
earliest possible opportunity instead of being accumulated.
Further, the intention behind the concept of compensatory off is to grant a day off in lieu of
working on a holiday. Hence, it is supposed to be availed on a single day availment basis
within the earliest possible opportunity so that workflow at the branch/office is not affected
and also does not result in other unnecessary adjustments.
It has therefore been decided that in supercession of the earlier guidelines, the following
revised guidelines need be observed for grant of/availment of compensatory off to officers
in Scale-I, Scale-II & Scale-III in lieu of their working on a weekly off day/holiday as under :-
1. Compensatory off should be availed by any officer [Scales-I, II & III] within a
maximum of one month after which the same shall stand lapsed.
2. It must be availed only on a stand-alone basis and is not to be availed in one lot or
in conjunction with any other type of leave/joining time.
3. Compensatory off will be granted only when full days work is put in by the Officer
and not for attending office/working for only a part of the day.
4. No compensatory off will be admissible for attending official meetings/
conferences/trainings/attending interviews or other selection procedures, etc.
5. Availment of compensatory off is subject to permission from the Competent Authority
depending upon work exigencies/ requirements.
6. As decided hitherto, sanctioning authority for compensatory off shall be an Executive
in Scale-IV or above only. [For officers in Small, Medium or Large branches
Regional Head; for officers in Very Large branches and above Branch Head; for
Officers in Administrative Offices Executive not below the rank of Chief Manager.]
7. Compensatory off to be granted by the sanctioning authority only after it is duly
recommended by the reporting authority giving details and the specific reasons for
calling the officer on the weekly off day/ holiday.

Sabbatical Leave women employee of our bank
(BCC/BR/104/132 dated 19.04.2012)
All full time women staff members working in India with minimum five years of service in the
bank are eligible for sabbatical leave for any purpose like medical grounds,care of family
members, higher studies etc maximum period for two years.The leave shall be taken for a
period of atleast three months at a time and shall not be taken more than once in a year,
subject to some term and conditions.

MANDATORY LEAVE POLICY
(BCC/BR/105/21 dated 18.01.2013)

Accumulation of P/L beyond 240days due to administrative exigencies may be
allowed to staff membersfor a maximum period of six months and not more than
three months at a time.

92
If employee is recalled on duty, the remaining days shall be allowed afterwards,
during the year.
Mandatory leave shall be taken within permissible three occasions during a calendar
year.
Employee who not availed leave shall be advised by HRM department to proceed on
Mandatory leave for minimum ten days continuously during the year.
Staff members should plan their leave well in advance with consultation with
Branch/Deptt. Head.

REIMBURSEMENT OF INCIDENTAL OUT OF POCKET EXPENSES TO OFFICERS
WHO REQUIRED TO ATTEND DUTY ON SUNDAYS AND HOLIDAYS. (BCC/BR/104/342
dated 22.10.2012)

Incidental out of pocket expenses will be reimbursed to officers and executives who
required to attend duty on Sundays or Holidays on declaration basis.
For Metro/urban branches Rs.250/- per day maximum 10 days in a calendar year.
For Rural/Semi-Urban branches rs.200/- per day maximum 20 days in a calendar
year.
The above ceiling will not applicable in case of Branch Heads.
It must be ensured that minimum period of work to be put on weekly off/holidays due
to unavoidable work exigencies would be minimum four hours.

TRAVELLING ALLOWANCE ON TRANSFER

In terms of the Officers Service Regulations, an Officer is eligible for the following facilities:

1. An Officer on transfer and the members of his family will be eligible to travel to the
place of posting by the same mode of travel and class of accommodation, as in the
case of travel on tour by the Officer.
2. An Officer on transfer is eligible for reimbursement of expenses for transporting the
household goods by goods train up to the following limits:

SCALE OF PAY RANGE WHERE THE OFFICER
HAS FAMILY
WHERE THE OFFICER
HAS NO FAMILY
Rs. 10,000/- per month to
Rs. 13,820/- per month
3000 Kgs. 1500 Kgs.
Rs. 13,821/- per month
and above
Full wagon
(6000 kgs)
2500 Kgs.

If an officer on transfer transports his household goods by approved transport operator, the
Officer will be paid at the following rates:

DISTANCE IN KMS RATES PER TONNE PER KM
Upto 2000 KMs Rs. 2.80
Beyond 2000 KMs Rs. 1.40

An Officer who owns a car and/or scooter, motor cycle or any other vehicle, will be eligible
to claim the cost of transportation. If the vehicle is driven by road, the Officer will be eligible
to claim at the following rates:

93
TYPE OF VEHICLES REIMBURSEMENT RATE
PER KM. (RS)
Four wheeler Engine capacity of 1000 cc or more 9.00
Four wheeler Engine capacity of less than 1000 cc 7.00
Motor Cycle and Scooter 4.50
Mopeds 3.00

An Officer on transfer will be eligible to claim a lumpsum amount as indicated below for
incidental expenses connected with packing, local transportation, insuring the
goods/baggage, etc:(Cir.No.BCC/BR/101/30 dated 29.04.2009)

GRADE REIMBURSEMENT LIMIT PER ANNUM
Top Executive and Senior Management Rs. 20,000/-
Middle Management and Junior Management Rs. 15000/-

Mode of Transport for Travel on Duty or Leave Travel Concession (LTC)

SCALE JMG/S-I MMG/S-II MMG/S-III SMG/S-
IV
SMG/S-V TEG/S-
VI
TEG/S-
VII
Travel
Expense
s
IInd AC IInd
AC/AIR*
IInd
AC/AIR*
Ist
AC/AIR
Ist
AC/AIR
Ist
AC/AIR
Ist
AC/AIR
Travel by Air is permissible to officers in MMG/S II & MMG/S-III only if the distance to
travel is more than 1000 Km. Officers in Senior Management and Top Executive Grade
may travel by car between places not covered by air or rail if the distance <500 KMs. If
major part can be covered by rail or air, the remaining distance only be covered by car.
All Air Travel is undertaken by economy class only.

New Initiatives under Project Sparsh

Launch of Baroda Academy
(BCC/BR/104/363 dated 19.10.2012)
The entire training and development initiative of the Bank is being positioned under the
umbrella Baroda Academy.
Some of the key initiatives under Baroda Academy are:
Publication of a comprehensive annual training calendar
Introduction of self nomination as an additional channel of training nominations
Introduction of minimum 50 training credits( 5 training days annually) for all officers
upto scale-VI
Introduction of tests at the end of every training programme
Enhancement of course content

Inauguration of HR Shared Services Pilot Back Office at Baroda and Launch of
Banks Career Portal
(BCC/BR/105/56 dated 14.02.2013)

94
HR Shared service back office: This back office will be a central processing cell for
all HR claims, reimbursements and staff loans processing.
Banks Career portal : Branded with the theme FIRST , which is an acronym that
stands for :-
F - Focused on employees
I - Indias International Bank
R - Range of opportunities
S State of the art
T Team that wins

Leave Travel Concession (LTC)

4 years Block Travel to place of Domicile once in each block of 2 years. Alternatively, one
Block of 2 years to place of domicile and another 2 years Block to any place in India by
shortest route.

Alternative Option for Encashment of LTC

Option to surrender and encash LTC of 4 years or 2 years block (other than to place of
domicile) shall be entitled to receive an amount equivalent to 75% of the eligible fare for
the class of travel by train up to a distance of 4500 KMs (one way) for JMG/S-I to MMG/S-III
officers and 5500 KMs (one way) for SMG/S-IV to TEG/S-VII Executives.

The mode and class by which an Officer may avail of Leave Travel Concession shall be the
same as the Officer is normally entitled to travel on transfer and other terms and conditions
subject to which the Leave Travel Concession may be availed of by an Officer, shall be as
decided by the Board from time-to-time. Provided that w.e.f. 01/05/2010 an Officer in
JMG/S-I while availing LTC will be entitled to travel by air in the lowest fare economy class
in which case the reimbursement will be the actual fare or the fare applicable to AC 1
st

Class fare by train for the distance travelled whichever is less. The same rules shall apply
when an Officer in MMG/S-II and MMG/S-III while availing LTC where the distance is less
than 1000 kms.
Family includes officers spouse, wholly dependent unmarried children (including
dependents step children and legally adopted children) and wholly dependent parents
residing with and wholly dependent on the officer. Wholly dependent child/parent shall
mean one whose monthly income does not exceed Rs. 3500/- p.m. If the income of one of
the parents exceeds Rs.3500/- pm or the aggregate income of both the parents exceeds
Rs.3500/- pm, both the parents shall not be considered as wholly dependent on the Officer.

MEDICAL FACILITES: HOSPITALIZATION EXPENSES

As per the Service Conditions, an Officer is eligible for reimbursement of medical expenses
actually incurred on hospitalization in respect of himself and his family on the following
basis:

For Self 100% of the expenditure or the specified limit for
particular item whichever is lower
For Family members 75% of the expenditure or the specified limit for
particular item whichever is lower

95
Walk-in Walk-out Medical Facility

For facilitating medical treatment, the Bank has entered into tie up arrangement with
hospitals, mainly at Zonal Head Quarters, under Walk-in Walk-out facility. Under this
facility, an Officer who goes to one of the designated hospital with an authority letter from
the Bank is not required to make any payment in the hospital till he/she is discharged. The
bills are subsequently settled by the bank.

Domiciliary Treatment
Limit of medical aid (Domiciliary) on the strength of the Officers own declaration of having
incurred such expenditure per year (Calendar Year):

GRADE REIMBURSEMENT LIMIT P.A.
Junior Management and Middle Management
Grade
Rs. 5100/-
Senior Management and Top Executive Grade Rs. 6320/-

An Officer may be allowed to accumulate unavailed medical aid so as not to exceed at any
time 3 times the maximum amount of annual entitlement as provided in the aforesaid chart.

REIMBURSEMENT OF FEES FOR ACQUIRING HIGHER QUALIFICATIONS

The Bank permits the officer for undertaking various courses for acquiring knowledge and
sharpening the skill and reimburses fees and gives incentives for the same.

SILVER SALVER & MEMENTO

ELIGIBILITY TYPE OF FELICITATION
Completion of 25 years of service Silver Salver
On superannuation Silver Memento

FACILITY OF NEWSPAPER BOOKS

SCALE JMG/S-
I
MMG/S-
II
MMG/S-
III
SMG/S-
IV
SMG/S-
V
TEG/S-
VI
TEG/S-
VII
Eligibility 1 Newspaper & Books 3 Newspaper, 3 Periodicals & Books
Reimbursement of
Books,
Newspapers,
Periodicals
2800 3300 3800 11500 11500 12000 14000
Claimed on annual (Financial Year) basis on self declaration

REIMBURSEMENT OF CONVEYANCE EXPENSES

Officers who do not own a vehicle, can claim at following rate on declaration basis:-

96
SCALES
ALL AREAS
LIMIT IN RS
SMG/S-IV 600
MMG/S-III 500
MMG/S-II 400
JMG/S-I 350

Officers who own a vehicle at place of posting can claim conveyance expenses on
declaration basis for the fuel at the following rates:-

FOUR WHEELER
AREA WHERE THE OFFICER IS POSTED
MAJOR A
CLASS CITIES
AREA-
I
AREA-
II
AREA-
III
SMG/S-IV 75 75 50 50
MMG/S-III 70 60 50 40
MMG/S-II 35 30 25 20
JMG/S-I 35 30 25 20
Two Wheeler
For all categories mentioned above 35 30 25 20

KIT ALLOWANCE

Kit allowance can be claimed on declaration basis by the Branch Head at the following
rates:

SCALE JMG/S-I MMG/S-II MMG/S-III SMG/S-IV SMG/S-V
Branch Heads at Metro
Centers
Rs.5000/- p.a
Branch Heads at Urban
Centers
Rs.3500/- p.a
Branch Heads at Rural /
Semi-urban Centers.
Rs.2000/- p.a
However officers in Top Executive Grade/ Scale VI & VII irrespective of their
posting are eligible to claim kit allowance on declaration basis at the following
rates:
TEG/S-VI Rs.15000/- p.a
TEG/S-VII Rs.20000/- p.a

Reimbursement of Personal Drivers Salary to
Executives.
[Cir.No.BCC:HRM:99/B-7/7/85 dt.02/08-08-2007]
[1] Revised limits effective from 20-07- 2007.
[2] Executives who are provided with Banks Car
and permitted by the Bank or eligible to
Mumbai
&
New Delhi
Rs.8000/-
A Class Cities /
Area-I Centers
& State Capitals
Rs.6700/-

97
engage personal Driver.
[3] For outstation duty/overnight stay/stay beyond
10.00 pm is warranted, reimbursement of
Rs.100/- per day with a cap of Rs.800/- p.m.
towards food to Personal Driver.
Other Centers Rs.6000/-

PROVISION FOR BRIEF CASE/ CROCKERY/ ATTACHE

* Brief Case
SCALE
JMG/S-
I
MMG/S-
II
MMG/S-
III
SMG/S-
IV
SMG/S-
V
TEG/S-
VI
TEG/S-
VII
Briefcase once in 2
years upto SMG/S-
V & every year to
TEG/S-VI &
TEG/S-VII
1500 1500 1500 2000 2000 3000 3500
* Executive attache once in 3 years 4000 4000 5000 5000
* Crockery once in 2 years for Scale-IV & every
year for other executives
2000 3000 4000 5000

ENTERTAINMENT EXPENSES (IN RS. PER ANNUM)
SCALE JMG/S-
I
MMG/S-
II
MMG/S-
III
SMG/S-
IV
SMG/S-
V
TEG/S-
VI
TEG/S-
VII
Branches
S/M/L
4600 5200 5800 7300 7300 16500 16500
Branches
VL/EL
4600 5200 6400 7300 7300 16500 16500
Branch
Head
5200 5800 6400 7300 7300 16500 16500
Admin
Office
4600 5200 5800 7300 7300 16500 16500

CANTEEN FACILITY (IN RS. PER DAY)

SCALE JMG/S-I MMG/S-II MM
G/S
-III
SMG/S-
IV
SMG/S-
V
TEG/S-
VI
TEG/S-
VII
Canteen
Facility
(Rs. Per
Day)
10 10 10 10 10 10 10

DEATH IN HARNESS & EX-GRATIA SCHEME

In an officer dies in harness his/her dependant is paid Rs.50,000/- by the Bank to meet with
immediate expenses connected with last rites etc. Subsequently, ex-gratia payment upto

98
Rs.8.00 lac is given if the monthly income of the family from all sources is less than 60% of
the last drawn salary.

LOAN AND ADVANCES

Festival Advances

All confirmed Officers in the Banks services are entitled to avail interest-free festival
advances of Rs.30,000/- or one month salary whichever is lower and the same is required
to be repaid in 10 equal monthly installments

Overdraft Facility / Demand Loans

An Officer who is confirmed in the Banks services is entitled to avail the facility of overdraft.
The maximum limit of it is Rs.5/- lacs which depends on the period of service of the Officer.
Those who want to avail purpose specific demand loans may avail the same instead of
overdraft facility.

HOUSING LOAN


TYPE OF LOANS
AMOUNT OF
LOAN
For construction /Purchase of house Rs.20 lacs
For Repairs / Renovations / Enlargements of the existing
premises
Rs.4 lacs

VEHICLE LOAN

TYPE OF
LOANS
AMOUNT OF LOAN
Two wheeler loan 90 % of the cost of two wheeler subject to a maximum of
Rs.90,000/-
Four wheeler
loans
80 % of the cost of motor car subject to a maximum of
Rs.7,00,000/-

OTHER FACILITIES

1. Holiday Homes
The bank has made arrangements of holiday homes at major tourist centres viz.Shimla,
Manali, New Delhi, Katra, Dalhousie, Ooty, Kodaikanal, Kanyakumari, Tirupati, Chennai,
Bangalore, Darjeeling, gangtok, Kolkata, Lonavala, Mahabaleshwar, Nasik, Ganpatipule,
Shirdi, Aurangabad, Panaji, Mumbai, Diu, Saputara, Mount Abu, Nathdwara, Jaipur,
Udaipur, Agra, Haridwar, Varanasi, Bhubaneshwar, Puri, Nainital and Lucknow. The officer
has to make payment of Rs.20/- per day of the room.
2. Contributory Medical Assistance Scheme for Retired Employees

99
Staff members retiring from Banks service can be member of the Scheme by paying
subscription amount equivalent to 50 % of the last drawn basic pay. Subscription is to be
paid at the time of retirement and only once.

The reimbursement of expenses to the members is as under:

PARTICULARS FINANCIAL CEILINGS
Domiciliary Expenses Rs.1000/- p.a., Rs.1500/- p.a & Rs.2000/- p.a depending upon pay
at the time of retirement.
Hospitalization
Expenses
The limit of employees upto SMG/S-V is Rs.2 lacs and Rs.2.5 lacs
for DGM and above.

TERMINAL BENEFITS

Gratuity

Gratuity is payable to employees of Banks on cessation from Banks service by way of
retirement, voluntary retirement, resignation, etc, subject to other terms and conditions.
Gratuity entitlements are calculated under -03- different schemes and the amount that is
most beneficial is paid to the employees.

As per Payment of Gratuity Act

If an employee has rendered continuous service for not less than 5 years , he is eligible to
receive gratuity on :-

1. His superannuation
2. His voluntary retirement or
3. On resignation
4. on his death, disablement due to accident or disease.

Maximum amount payable is Rs.10,00,000/- when payment is made as per the provisions
of the Payment of Gratuity Act.

As per Gratuity Fund Rules and Regulations :-

a) On the death of an executive / officer while in service of the Bank or on his becoming
physically or mentally disabled to continue further in the service of the Bank.
b) On superannuation or on termination of his services by the Bank in any other way
except by way of punishment.
c) On voluntary retirement after 20 years of services / or resignation after 5 years of
continuous of services.

Officers / Executives One months pay for every completed year of services subject to 15
months pay. Any period in excess of six months is reckoned as one complete year of
services. If he has put in service of more than -30- years and he opts not to receive
Additional Retirement Benefits, additional amount at the rate of one-half of a months pay
for each completed year beyond -30- years.

When payment is made as per the provisions of Gratuity Fund Rules / BOBOSR 1979/
Awards- Bipartite Settlements, amount can be paid in excess of Rs.10 lacs but payment
beyond Rs.10 lacs is taxable in the hands of the beneficiary.

100
As per BOBOSR-1979 :-

a) Retirement
b) Death
c) Disablement rendering him unfit for further service as certified by a medical officer
approved by the Bank.
d) Resignation after completing ten years of continuous service
e) Termination of service in any other way except by way of punishment after -10-
years of services.

One months pay for every completed year of services subject to 15 months pay. For any
period in excess of six months, gratuity will be paid pro rata.

Pension

The terms of the Bank employees Pension Regulation, 1995 dated 29
th
September
1995/26
th
March 1996 shall not apply to the officers who joined the services of the Banks on
or after 1
st
April 2010 and they shall be covered by a Defined Contributory Pension
Scheme, which shall be governed by the provisions of the contributory Pension Scheme
introduced for Officers of Central Government w.e.f. 1
st
January 2004 and as modified from
time to time.

Provident Fund

As per the BOBOSR-1979, every Officer shall become a member of the Provident Fund
constituted by the Bank, which is managed by a Trust.

An Officer who is member of the Provident Fund is required to contribute 10% of his Basic
Pay per month towards the Provident Fund and matching contribution is made by the Bank.

There shall be no Provident Fund to Officers joining the services of banks on or after 1
st

April 2010. They shall be covered by a Defined Contributory Pension Scheme, where the
Officer will contribute 10 % pay plus Dearness Allowance and the Bank will make a
matching contribution. The Scheme shall be governed by the provisions of the Contributory
Pension Scheme as introduced for employees of Central Government w.e.f. 1
st
January
2004 and modified from time to time.

Additional Retirement Benefits

An Officer, who was in Banks services as on 01.07.1979, on retirement / voluntary
retirement, will get -06- months emoluments as additional / retirement benefit if he has
rendered at least -25- years of services.

OVERSEAS POSTING

Our Bank has one of the largest overseas presences amongst Indian Banks and the
network is being further expanded with every year. The Bank provides substantial

101
opportunities to our best officers to get an overseas posting and thereby reap the benefits
and experience of overseas exposure.

PROVIDING FACILITIES OF MOBILE PHONE SET & REIMBURSEMENT OF OUT OF
POCKET EXPENSES TO REGIONAL MARKETING / SALES OFFICERS
(Letter No. BCC/HRM/99/T-3/8575 dated 19.09.2007)
These facilities of Rs. 1500/- p.m are provided but these are not entitlement. These have
been extended to facilitate marketing / selling of Banks products. These facilities are
extended to Zonal / Regional Marketing Managers only in order to facilitate marketing
efforts. Marketing Officers recruited on contract may be also be provided the facilities.

TRAINING ESTABLISHMENTS

The Bank has -13- Regional Training Centers across India. Apart from that there is a Bank
of Baroda Institute for Information Technology (BOBIIT) at Gandhinagar for IT related
Training. All the training activities are governed by Staff College, Ahmedabad.

HRNES

Bank has implemented Human Resource Networking for Employees Service with the
objective of creating a central database of its employees to facilitate decision making,
promotion and selection exercise as also to automate other HR processes. HRnes-HRMS
can be accessed at http://ebizapp.bankofbaroda.co.in:8004/

PAYROLL
In Payroll, Salary module, e-TDS modules have been implemented for all Domestic offices.
Leave module has also been launched where employees are provided with the functionality
of self service. Payroll can be accessed at
http://hrnespay.bankofbaroda.co.in/powerapps/login.aspx

BANKS INTRANET ( Knowledge Management Portal)

The Banks Intranet serves as a platform for the employees to interact with the each other
as also get updated on the various new circulars, news, updates of the Bank, Book of
Instructions, Baroda e-Learning, and Discussion Forum.

Banks Intranet can be accessed at https://intranet.bankofbaroda.co.in

FINACLE
The software used by the Bank to enter various Financial & Non Financial transactions in
the Finacle is developed by Infosys.
The Finacle can be accessed at http://portal.bankofbaroda.co.in:8082/BOBIND/
Each user is given a separate User Id and this Finacle User Id becomes the default User Id
for HRnes-HRMS and Payroll system. To generate a Finacle Id the user should :
Download User Creation/ Modification Request Form (UCMR) available on the
Finacle Home Page.

102
Fill in the requisite details and get authenticated by the Branch Manager and Fax the
UCMR Form along with the appointment letter of the new user to FAX NO.022-
66983064
The Finacle ID is created within a couple of days and once it is generated the same
becomes the default Id for HRnes-HRMS and Payroll System.

IMPORTANT LINKS

To Give any suggestions/ feedbacks in HR issues :
hrmfeedback.bcc@bankofbaroda.com
To Give any general suggestions/ feedbacks :
barodasujhav@sbankofbaroda.com
To Give any creative/ innovative ideas :
ideaonline@bankofbaroda.com
To Give any idea related to Business Process Re-engineering activities:
bpr@bankofbaroda.com

103
Annexure 1

SALIENT FEATURES OF NEW POLICY FOR SELECTION OF OFFICERS FOR
OVERSEAS POSTING

(Ref:Circular no. BCC:BR:101:206 dated 16.07.2009 & BCC/BR/104/321 dated 14.09.2012)

Objective :To put in place a transparent, objective, pragmatic selection policy for identifying
India-based officers (IBOs) for placement in Overseas Branches/Offices, Subsidiaries and
Joint Ventures.

1. Eligibility Criteria (for officers in Scale-I to Scale-IV) :
(i) Age :

JMG/S-I : Max. 35 years
MMG/S-II : Max. 45 years
MMG/S-III : Max. 50 years
SMG/S-IV : Max. 53 years
SMG/S-V : Not more than 56 years
For Dealers : Max. 45 years
(ii) Minimum work experience :

JMG/S-I : 2 years
MMG/S-II : 3 years (in the respective
MMG/S-III : 4 years functional area)
SMG/S-IV : 5 years
SMG/S-V : 5 years

2. Processes for Identification (For Scales I-IV) : Determination of vacancies in June.
This will be done keeping in view the repatriation of IBOs in next 1 year upto June,
manpower requirements for International expansion plan and an additional 10% of the
existing strength in the major functional areas.

3. Creation of a Selection Pool : In this phase, identifying potential candidates who can
be groomed to take up challenging assignments in the International Arena of the banks
Operations. A ready pool of candidates shall be identified and kept ready at all times in
each of the selection areas specified in the ratio of 1:3.

A selection exercise will be conducted every year to identify fresh people in the pool so as
to maintain the ration of 1:3.

4. Procedure for identification to the pool: Eligible applicants at the Regional level
would be arranged based on EPRF score for the last 5 years. Only those officers who have
scored 80 and above would be considered for selection. The profiles of all the eligible
applicants would be subjected to further scrutiny of their experience/ exposure and
performance in the specific area by a committee/s of 3 General Managers for identification
for the pool.

5. Grooming and Testing: All officers in the selection pool will be required to undergo a
function/ area-specific written test. However, before such test, they would be groomed in a
particular functional area for 1 week. While undergoing this training, they shall also be put

104
through a series of tests, viz. Psychometric tests, Role-plays/ Group Discussions,
Presentations and an area-specific Written test.

6. Final Selection: Final selection will be done after taking Personal Interview.

7. Tenure of Posting: The tenure of posting of an Officer (IBO) in the Banks overseas
territories shall be for a period of 3 years and the tenure of posting for a Trainee Officer
(IBTO) shall be for a period upto 24 months.

8. Repeat Tenure : Officers posted in money centres like London, New York, Brussels,
Singapore, etc., who have proved their mettle and have been excellent performers during
their overseas tenure may be considered for a second tenure either in the same territory,
subject to the immigration rules of the host country or in any other money centre, as per
requirements of the Bank.

9. Cooling Period : Apart from such officers, all other officers will require 2 years cooling
period before considering for a 2
nd
/ subsequent tenure at overseas locations.

An officer can be recalled back at any time before completion of his normal tenure on
account of unsatisfactory performance/conduct or due to any vigilance/ non-vigilance
matters against him.

10. Execution of Bond: Candidates selected for overseas assignments will have to
execute a Bond, thereby undertaking to work for the bank for a minimum of 5 years after
their repatriation to India or pay the Bank Rs.10/- lacs in lieu thereof.

Trainee officers shall have to execute a Bond requiring them to serve the Bank for a
minimum of 3 years after their repatriation to India or pay the Bank Rs.5/- lacs in lieu
thereof.

11. Leased accommodation in India: An India-based officer, posted overseas, shall have
the option of leaving his family behind in view of academic or other reasons, in which case,
he/she shall be eligible for a studio/ bachelors apartment or shared accommodation in the
respective overseas centre where he/she is posted. He shall however be eligible for leased
accommodation for keeping his family at any place in India as per the limits applicable at
the last place of his/her posting in India, subject to rent recovery as per rules.

12. Resignation: Resignation submitted by an officer while he/she is posted abroad, shall
not be accepted. The officer shall have to come back to India and report to his place of
posting and thereafter submit his/her resignation.

105
Test Your Understanding:

1. Probation period for Direct appointed Officers in scale-I is
a) 6 Months
b) 2 years
c) Such period may be decided by the Bank
d) One year
e) 9 Months

2. Under fast track channel an officer is eligible for promotion to scale-II in.years.
a) 5 years
b) 2 years
c) 3 years
d) 6 Months
e) None of these

3. One officers date of birth is 01.03.1956 , he shall retire on
a) 31.03.2016
b) 01.04.2016
c) 29.02.2016
d) 31.03.2018
e) 29.02.2014

4. In Area I a JMG/S-I officer is entitled to acquire housing accommodation on personal
lease upto monthly limit
a) Rs.5000
b) Rs.4500
c) Rs.8000
d) Rs.8500
e) Rs.4000

5. An officer in scale III is deputed to attend training at Kolkata, he is entitled for.. per
day as halting allowance.
a) Rs.800
b) Rs.700
c) Rs.600
d) Rs.1000
e) Rs.1200

6. An officer is eligible for C/L in a calendar year.
a) 24 days
b) 15 days
c) 12 days
d) 09 days
e) None of these

106
7. An officer can accumulate 340 P/L.
True/False

8. An officer can avail compensatory leave within
a) 30 days
b) 2 Months
c) 1 week
d) 1 year
e) 6 Months

9. All full time women staff members are eligible for sabbatical leave, maximum period for
a) 12 months
b) 03 Months
c) 03 years
d) 02 years
e) 5 years

10. As per Mandatory Leave Policy an employee should avail minimum .days
continuously leaves in a calendar year.
a) 5
b) 10
c) 20
d) 4
e) 30

Q 1 2 3 4 5 6 7 8 9 10
A D C C C D C F E D b

107
HRNes, Payroll, Knowledge Management Portal

Quick Bites
HRNes Human Resources Network for Employee Service is the name coined for the HR
Portal of Bank of Baroda.
One of the unique salient features of the HRnes is the Employee Self Service Module,
Bank has Knowledge Management Portal which provides lot of reference and learning
contents.

HRNes Human Resources Network for Employee Service is the name coined for the HR
Portal of Bank of Baroda. HRnes covers the entire gamut of Human Resources
Management function in the Bank.

HRnes comprises of THREE broad systems encompassing different functions:

1 HRMS Covering all current HR processes in the Bank and also
employee self service
2 OLM Oracle Learning Management - which includes training
administration & e-learning;
3 POWERAPPS Covering payroll, payments of various benefits, perks, welfare
schemes, terminal benefits, etc. and employee self service

Functionalities of each of the above modules are detailed in circular no. BCC:BR:99/359
dated 26/11/2007.HRMS and OLM is a product of Oracle whereas Powerapps is a product
from Fluous.

One of the unique salient features of the HRnes is the Employee Self Service Module,
which would deliver quality HR services to employees & Managers as under:

HRMS Employee Self Service

View personal details, including assignments
Modify certain personal details like Address, Contacts ( incl Family and Dependent
details) Marital Status, PAN number, and Special Informations like Cultural Activities,
VISA etc
Submit application pointing out discrepancies in data, acquiring additional qualifications
using Intimation and Permissions
Seek permission required for various purposes like obtaining NOC for passport,
permission for undergoing professional courses, etc. ;
Submit application for Promotion, Selection for Faculty , Special Pay Position ( for
Clerical staff) whenever exercises are announced.
Submit application for request for transfer, Submit Assets& Liabilities Statement,
Appraisals

Learner Self Service:

View details of trainings attended.
Can enroll for e learning modules.

108
POWERAPPS Employee Self Service

View and print pay slip ;
View monthly pay details for the -3- financial years;
View and print computation of Income Tax for the current Financial year;
Submit Investment details online for calculation of Income Tax ;
Submit leave application.
Submit request for deduction of Voluntary Provident Fund

HRMS Manager Self Service:

Through HRnes- HRMS, MANAGER SELF SERVICE Functionality enables the Branch
Head to view the data of all the EMPLOYEES WORKING UNDER HIS/HER RESPECTIVE
BRANCH.

The following activities are available in HRnes-HRMS-Manager Self Service:

View Employees assignment details ,trainings , competencies enabling him/her for
proper utilization of employee.
Submit indent for manpower requirement;
Send online request for following purposes using Intimation/permission module:

1. Seek approval for Granting Powers to an employee for Operating
Accounts with Other Banks;
2. Seek Approval for officiating arrangements;
3. Seek Permissions for granting Specimen Signature Number etc,

A BRIEF explanation of how to use HRnes-HRMS

You can access the package through a PC connected to the DATA CENTER by double
clicking on the icon HRnes-HRMS on the desktop or alternatively by following the link
http://ebizapp.bankofbaroda.co.in:8004/

Login using the username and password provided to you. The userid will be first letter of
First name and first letter of Surname followed by zero following by ECNO and default
password will be Welcome1. The default password should be changed on First log in.
After logging in click on the link BOB HRMS Employee Self Service to see more
menus on the right hand side.
To view data use the menu under the section BOB HRMS Employee Self Service.
All Online applications which the employee needs to submit will come under the section
BOB HRMS Employee Self Service Applications.

Please read the Job card attached to different Responsibility.

A BRIEF explanation of how to use HRnes Payroll

You can access the HRnes-Payroll Package through any PC connected to the DATA
CENTER by double clicking on the icon HRnes-HRMS on the desktop or alternatively
by following the link

http://hrnespay.bankofbaroda.co.in/powerapps/login.aspx.

Login using the username and password provided to you
Read the USER Manuals provided in the Log in screen.

109
A BRIEF explanation of how to use HRnes-Learner Self Service

Same as explained in HRnes HRMS. Instead of selecting BOB HRMS Employee Self
Service select BOB Learner Self Service ->Learner Home ->Learning History

A BRIEF explanation of how to undergo e learning course

Login in HRNes application.
Select BOB Learner Self Service
Click on Learner Home
Select CLASS from LOV ( instead of default COURSE ) in the search option.
Give the first letter of Class e channel products as E
Click GO
Click on the blue coloured enrolment button and Apply
You will be successful enrolled for the course e channel products
Click on the Learner Home as above.
Click on the blue coloured PLAY button against the e channel products.

You can appear for test at the end of the module.

Importance of Using Self Service Module:

A central database is created with the basic employee details, qualifications, past
assignments/postings, contacts/ dependents, etc. Bank is relying on this data for HR
decisions including promotions and transfers etc.

Verification of these data is therefore important. All employees should invariably periodically
verify their details using Employee Self Service and point out discrepancy if any for
correction. Any discrepancy in the data should be pointed out using online application
provided through Intimations and Permissions in Self Service.

In respect of sub staff, Branch heads are requested to show them their data through
Manager Self Service and in case of any discrepancy, intimate to Regional HR for required
corrections.

While verifying records, following aspects should be specifically verified:

Check the Spelling of the name, date of joining and date of birth.
Check Assignment details properly.
a) First assignment should start from the date of joining
b) There should be a NEW assignment from the date of Promotion / Reversion. The
date of Change in the Grade of the employees would be calculated by the system
using this date and hence it is very important that the employee verifies his data
thoroughly.
c) Verify Job/position in assignment history as Bank will derive functional expertise
from these data.
PAN number should be filled if not filled so far as Payroll is using this for tax purpose.
Details of contacts/dependents will be used for entitlement under various benefits like
LFC and Hospitalisation.
Current address entered into system will be used for all future communications.

110
Help Desk:

Employees may take assistance of Global Help Desk (which is operational for CBS as also
for all other IT related applications) for any issues pertaining to navigation or hardware
problems. The procedure for seeking assistance from Global Help Desk is same which is
conveyed for CBS related issues. For other assistance, they may contact their Regional HR
Functionary.
For queries call HELPDESK VOIP-999999 option 2
Log call at IT Helpdesk by clicking on the icon available on the desktop
For password reset contact VOIP-999999 option 3 / land line 022-
6983076/66983075 or email hw.support.dc@bankofbaroda,com.

BANKS INTRANET ( Knowledge Management portal)

The Banks Knowledge Management (portal serves as a platform for the employees to
interact with the each other as also get updated on the various new circulars, news,
updates of the Bank. Banks Intranet can be accessed at
https://intranet.bankofbaroda.co.in Employee may log in intranet with HRnes id & password.

The important features of our knowledge management Portal are
1. All the circulars issued are available here for reference at any point of time with
added facility of search and linkage to earlier circulars issued on a particular subject.
2. In resources folder under Documents Menu Book of Instructions, Manuals, Forms &
Various Software are placed for quick reference of the employees.
3. In Publication folder under Documents Menu our various publications like Forex
Digest, Retail Panorama, Spandan, Financial Inclusion News Letter, Agri. Update etc
are placed.
4. The following information about our bank are also available in this portal i.e., Board
of Directors, Media Reports, Interest Rates (Deposits, Advances & Gold), CMD
Message, Bank Performance etc.
5. Discussion Forums, chat rooms are available.
6. Social networking within the organization is available.
7. Various types of polls and surveys can be conducted.
8. Quizzes can be organized on various topics.

Bank has implemented new Knowledge Management Portal- Oracle Web Center Suite 11g
on pilot basis which has following features:

1. Primarily the portal having 3 types of spaces viz., Global Space, Personal Space &
Other Space (For Zonal Offices, Overseas Territories & Different Business Verticals).
2. All the employees can access the Global Space and the following are the facilities
available at this Global Space.

a. Industry News can be accessed through RSS (Really Simple Syndication)
attached with this space. The RSS of the all important financial websites will be
linked here.
b. The employees are permitted to initiate / create the discussion topics under
discussion forum. So that any employee can participate in the discussion to share
their views.
c. Under Wiki, various reference materials related to Banking will be placed in the
portal which will be managed by a separate moderator.

111
d. Daily News Flash issued by Staff College is placed under Documents in this
portal.
e. Through this portal external linkage given to various Banks sites viz., HRMS,
Payroll, DEBOS, Outlook Access, CRISIL, Help Desk, Internet Banking & LAPS.

3. The employees can access their Personal Space and following are the facilities
available thro this Personal Space.

a. Social networking with other employees within our bank is possible.
b. Individual employees who wish to share their knowledge on different Banking
Domain Areas are allowed to sent their materials to moderator and the same will
be published in the portal after the approval of moderator.

Apart from the above two types of spaces Zonal offices, Overseas territories & Business
verticals can also create their own spaces in this portal through the moderator and the this
space can be designed by adding topics / issues related to the zone / territory.

112
TEST YOUR UNDERSTANDING:

1. Banks intranet is known by the name :-
a) News flash
b) Knowledge Management Portal
c) BOB Finacle
d) BOBMAITRI
e) Hello Barodians !

2. Salary and Leave modules can be found on :-
a) HRMS
b) HRnes Payroll
c) KM Portal
d) BOB Finacle
e) ASCROM

3. HRNes stands for :-
a) Human Resources Network of Employees System
b) Human Resources National Electronic System
c) Human Resource Networking for Employees Service
d) Human Relations Net Enabled Service
e) Human Resources Net Enabled System

Answers

Q 1 2 3
A b b a

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