Interview May June 2015

ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION
(AFFILIATED TO AIBOA)
C/O CORPORATE OFFICE, GURGAON
_____________________________________________________________
BHOPAL/2015/
12-05-2015
Dear Comrades,
It is indeed a splendid team work exhibited by members of Central Zone Committee, Bhopal,
in the preparation of this miniature presentation in the shape of booklet, for promotion to
higher grade. We have found that the contents included in the booklet finds a wide
coverage of latest/ current as well as basic banking know how. This finest presentation in
booklet form is going to help the candidates in updating their knowledge as well as for
facing the written exam/interview for promotions with confidence.
While we congratulate the Central Zone Team for their relentless efforts, we wish the
aspiring candidates all the success.
With best wishes,
Yours comradely,
(D.K. Pauddar)
President
( S. S. Shishodia)
General Secretary
All India Oriental Bank Officers Association___
INDEX
Sl.
No.
TOPIC
Page
No.
Interview Skills
OBC at a Glance
Important Banking Indicators
Important point from Banks Circulars
Priority Sector
29
Banking & Financial Updates
35
Commonly Asked Interview Questions
44
Legal Aspects (SARFAESI/Lok Adalat/ TDS etc)
65
Recovery &NPA Norms
74
Deposit Products
77
10
IT Products
89
11
Retail Credit Products
107
12
Other Important Points
132
___________________________________________________________________________________
Study Material for Promotion Interview May-June -2015
(updated till 12-05-2015)
3
Interview Skills
There are some easy steps that you can take that will increase your chances of success at interviews.
The keys to a successful interview are preparation and practice. The following suggestions will help
you prepare for an interview:
Consider the following topics

1.
2.
3.
4.
5.
6.
7.
8.
9.
Complete knowledge of your present assigned work.

Knowledge about the performance of your branch where you are posted
Updated data of your region as well as our bank
Vision and mission of the Bank
Your achievement/support during the period
Knowledge about yourself like your hobby and also your academic knowledge.
Your shortcomings and achievement
Present changes in banking sector
Read news paper on the day and a day before of interview
Some Tips for Interview.

Before the Interview:
Dress Professionally - In today's environment, wearing a suit isn't always necessary.
Arrival - Try to arrive at the interview location a little early.
During the Interview:
First impressions - First impressions take only thirty seconds hence establishing a warm smile,
good posture, and introducing yourself in a confident manner after wishing all the interviewer are
important ingredients.
Smile - A smile denotes confidence in a candidate. Try to smile often. Also, don't be afraid to use
some hand animation while answering questions. This suggests enthusiasm in a candidate.
Body Language - Use good posture, and look the interviewer right in the eye. Sit up straight. Never
slouch.
Speak Clearly - Don't mumble. It portrays a lack of confidence. Speak with assurance. This indicates
confidence
Listen Before Answering - Make sure you understand the question. If not, ask the interviewer to
clarify it. Don't be afraid to take some time to think before answering. Interviewers are impressed
with someone who thinks out an answer before speaking.
Give Brief Answers - Make your answer concise and to the point.
Be Truthful - Don't lie when asked about something you haven't done. . Dont use word
perhaps/possibly ,may be. If you do not know answer, speak clearly I dont know sir
Some common Interview Questions
1. What are your Strengths and Weaknesses ?
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4

o
This is again a very commonly asked question. The Interviewer here wants to analyze how much you know of
yourself.
How to Answer -
You should mention your strengths that are beneficial for them. For example, It should not be like "I am a very
good cricket Player", Rather you should focus on strengths that are related to that job. For example, "I have
good communication skills" Or "I Like Interacting with people" Or "I am good at a analyzing
Problems and working in a team to find out appropriate solutions".
Weaknesses :- You should not say that you do not have any Weakness. It shows that either you are
Overconfident or have not assessed yourself and don't want to talk about it.
Similarly do not say phrases like "I am short tempered" Or "I get angry very soon and can do anything
in anger". Rather you should genuinely mention the areas that are related to your professional life and you are
trying to get better at them. For exampl, "I Would want to get better at managing time and increasing
my productivity"
n a move aimed at helping transgender persons open bank accounts and avail related
services, the Reserve Bank today directed banks to include a separate column 'third gender'
in all their forms and applications.
After the Interview:
Thank the Interviewer - Verbally thank the interviewer for taking the time to interview you, before
leaving.
OBC AT A GLANCE
Our Bank's
1. VISION STATEMENT
TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO
ENHANCING STAKEHOLDER VALUE
2. MISSION STATEMENT
Provide quality, innovative services with state-of-the-art technology in line with

customer expectations.
Enhance employees professional skills and strengthen cohesiveness.
Create wealth for customers and other stakeholders.
Chairman & Managing Director

Shri Animesh Chauhan
Executive Director
Shri Bhupinder Nayyar
Executive Director
Shri Suresh N.Patel
Officer Director
Shri Narendra Kotiawala
___________________________________________________________________________________
5

Workman Director
Foundation Day
No. of Region
No. of Branches
No. of ATM
Nationalised
Share holding (Central Govt.) as on
31.12.13
Merger of Global Trust Bank
.
Shri Kingshuk Bhattacharya
19th February
34
2251 as on 31-03-2015
2495 as on 31-03-2015
15 April 1980
59.13%
14.08.2004
Important Banking Indicators

Our Base Rate
Our P L R
Bank Rate
Repo Rate
Reverse Repo Rate
CRR
SLR
MSF (marginal standing facility)
10.00% (w.e.f 15/0/2015)

14.75 % (w.e.f. 14/05/2012)
08.50% (w.e.f. 04.03.2015)
07.50% (w.e.f. 04.03.2015)
06.50% (w.e.f. 04.03.2015)
04.00% (w.e.f. 09/02/2013)
21.50% (w.e.f. 07/02/2015)
08.50% (w.e.f. 04.03.2015)
IMPORTANT POINTS FROM BANK'S CIRCULARS

(LAST ONE YEAR)
ATAL PENSION YOJANA (APY) CIR NO. GBC/5/2015-16/111 Dt. 08-05-2015

Eligibility of APY: APY is open to all Bank account holders who are not members of any statutory social
security scheme.
Age of joining and contribution period: The minimum age of joining the scheme is 18 years and
maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would
be 20 years or more.
Enrolment and Subscriber Payment: All bank account holders under the eligible category may join APY
with auto-debit facility to accounts.
Enrolment Agencies: All Points of Presence (Service Providers) and Aggregators under Swavalamban
Scheme would enroll subscribers through architecture of National Pension System.
Benefit of APY: Fixed pension for the subscribers ranging between Rs.1000/- to Rs.5000/-, if he joins
and contributes between the age of 18 years and 40 years. The contribution levels would vary and would
be low if subscriber joins early and increase if he joins late.
Operational framework of APY: It is Government of India scheme, which is administered by the
PFRDA. The Institutional Architecture of NPS would be utilized to enroll subscribers under APY.
___________________________________________________________________________________
6
Funding of APY: Government would provide (i) fixed pension guarantee for the subscribers; (ii) would
contribute 50% of the subscriber contribution or Rs.1000/- per annum, whichever is lower, to eligible
subscriber; and (iii) would also reimburse the promotional and development activities including incentive to
the contribution collection agencies to encourage people to join the APY.
Age of entry, years and monthly contribution for fixed monthly pension: An indicative table
describing the monthly contribution required as per the age of entry and years of monthly contribution. For
example, to get a fixed monthly pension between Rs.1000/- per month and Rs.5000/- per month, the
subscriber has to contribute on monthly basis between Rs.42/- and Rs.210/- if he joins at the age of 18
years. For the same fixed pension levels, the contribution would range between Rs.291/- and Rs.1454/-, if
the subscriber joins at the age of 40 years.
ORIENTAL PERSONAL LOAN SCHEME FOR HOME LOAN BORROWERS (cir

Retail:06:2015-16:65 dt 21-04-2015) (a) Staff members availing housing loan only under Staff
Housing Loan scheme will not be eligible for personal loan (b) However, the staff members
availing Home Loan under both Staff Housing Loan scheme (SHL) & General Public Scheme (GPS)
can avail personal loan as per their eligibility based on Housing Loan sanctioned under General
Public Scheme (GPS) subject to compliance of other terms. (c) Irrespective of the fact that home
loan has been sanctioned under Regional Office or Head Office powers, the branch incumbents as
per their vested discretionary powers under the scheme can consider personal loan
REVISION IN BASE RATE OF THE BANK FROM 10.25% PER ANNUM TO 10.00% PER
ANNUM WITH EFFECT FROM 15th MAY 2015 (Cir RMD/09/2015-16/108 dt.08-05-2015)
4. RISK BASED PRICING BASED ON RAROC METHODOLOGY (cir HO/RMD/08/201516/106 dt 08-05-2015)

Risk Adjusted Return on Capital (RAROC) can best be described as under.
Its numerator is a measure of adjusted income over either a future period or a past period and
the denominator is a measure of the unexpected loss or economic capital at risk.
= e
.
()
Once calculated, the RAROC of a loan is meant to be compared with hurdle rate reflecting the
Banks cost of funds or the opportunity cost of stockholders in holding equity in the Bank.
If, RAROC > Hurdle rate, then the loan is viewed as value adding, and scarce Bank capital
should be allocated to the activity.
RAROC ratio has two components: (1) the numerator which is the Adjusted Income and (2) the
denominator is the Economic Capital.
The numerator i.e. Adjusted income can be explained as expected one-year income on a loan.
=[++
+
]
The Denominator i.e. Economic Capital can be explained as Unexpected Loss on the loan.
__________________________________
=
_/ ( )
Hurdle rate reflects the Banks cost of funds or the opportunity cost of stockholders in holding
equity in the Bank. For Base Rate calculation, the Bank has taken expected return on Net worth
___________________________________________________________________________________
7

.
as 15%. Also, as per the ICAAP policy of the Bank, the targeted Return on Equity of the Bank is
kept at 15%. Therefore, we have taken hurdle rate at 15%.
Comparing the RAROC with hurdle rate will enable the Bank to take correct pricing decision
based on the risk profile of the borrower.
Oriental Loan against gold ornaments scheme for agriculture purpose (cir NO.
RD&PS/4/15-16/59 dt 17-04-2015) Loans against Gold ornaments for Agriculture
purpose are to be sanctioned strictly as per scale of finance for agricultural loans. It sanction
is not as per scale of finance, the agricultural gold loans be classified as NPS loans and Non
Agriculture Purposes.
RETAIL CREDIT SCHEMES: OPERATIVE ACCOUNT OF APPLICANTS (cir NoRetail: 45: 2014- 15:
924 dt. 21.02.2015. - Prior to sanctioning and disbursal of any credit facility under Retail
Scheme, the borrower must be having an operative account (SB/CA/ CC/ OD) with the bank or
should open one. In existing accounts, field functionaries are advised to open operative accounts,
wherever not available, within three months of issuance of circular
Pradhan Mantri Jan-Dhan Yojna (PMJDY)-Overdraft (OD) facility of upto Rs.5,000/- -
(Cir No. RD & PS:78:2014-15/909 dt. 13-02-2015) -
Purpose
Eligibility
(Individuals
only)
General purpose loan to provide hassle free credit to low income group / underprivileged
customers to meet their exigencies without insistence on security, purpose or end use of
the credit.
a) Basic Savings Bank Deposit (BSBD) accounts, which are operated satisfactorily for at
least six months. This facility will also be extended to the accounts opened prior to PMJDY
and that have been tagged under the Yojana.
b) Overdraft (OD) to be granted to the earning member of family,
preferably women of the house.
c) There should be regular credits under Direct Benefits Transfer (DBT)/ Direct Benefits
Transfer for LPG(DBTL) scheme/other verifiable sources
d) Account should be seeded with Aadhaar for avoiding duplicate benefit
e) BSBD account holder should not be maintaining any other Saving Bank (SB) account
with any Bank/branch to ensure compliance with RBI directives.
f) Age of applicant between 18 years to 60 years.
(Not eligible: Minors, Kisan Credit Card (KCC)/General Credit Card (GCC) borrowers,
more than one member of the same family)
Nature of facility
Running OD facility in Saving Bank (SB) account
Period of
Sanction
Loan amount
36 Months subject to annual review of account
Security
Nil
a) 4 times of Average monthly balance

b) or, 50% of credit summations in account during the preceding 6 months
c) or, Rs 5000/- whichever is lower
(System will be enabled to provide report on eligible amount)
___________________________________________________________________________________
8

Interest rate
Base Rate +2.
Processing Fee
Nil
Sanctioning
authority
Branch
Disbursement
Withdrawals through branch / Business Correspondent (BC)/ Automated Teller Machine

(ATM)/ Point of Sale (POS)
Documents
Loan application-cum-undertaking
Arrangement letter duly accepted by the Account Holder
Inspection waived for all standard assets. All irregular accounts to be followed up closely.
Inspection &
follow up
Other features
Mobile Number of the borrower/family members to be kept on record

Aadhaar number will remain seeded with National Payments Corporation of India (NPCI)
during the period of loan. Move-out of Aadhaar for such accounts will be restricted by
NPCI.
Saving Bank Overdraft (SBOD) account will become primary account to receive all
subsidies/benefits. DBT should also be frozen to such accounts till the currency of loan.
NPCI will provide repository of Aadhaar Seeding for SBOD to the Banks to verify any
earlier seeding.
Loan accounts will be subject to Income Recognition, Asset Classification (IRAC) norms
of RBI.
Credit
Guarantee Cover
Guarantee cover upto 60% of default amount in PMJDY

Banks will pay guarantee fee @ 1% on loan outstanding at the end of each year.
(PMJDY document provides creation of a corpus of Rs 1000 crore for default in PMJDY OD
scheme. DFS guidelines are awaited on this account and also the entity managing such
fund and claim process).
The Scheme of Ministry of New and Renewable Energy, GOI for promoting Solar
Photovoltaic (SPV) Water Pumping Systems for Irrigation Purpose (cir no. RD & PS / 76
/2014-15/901 dt.10.02.2015) GOI, has launched a new Scheme of Ministry of New and
Renewable Energy, GOI for promoting Solar Photovoltaic (SPV) Water Pumping
Systems for Irrigation Purpose to support 30,000 solar pumping units per year. The earlier
scheme is merged with this new scheme.
Rate of Interest:- Base Rate
Security:- The security norms shall be as under:Amount of Loan
Security Norms
Only primary security i.e. hypothecation of crops/assets created by
Up to Rs1.00 Lakh
Bank Finance.
Hypothecation of crops/assets created by Bank Finance.
Above Rs1.00 Lakh
Mortgage of land/property minimum equal to the amount of loan or
and up to Rs 2.00
3rd party guarantee of adequate net worth acceptable to the Bank.
Lakh
Hypothecation of crops/assets created by Bank Finance
Above Rs2.00 Lakh
Mortgage of land/property minimum equal to the amount of loan.
Dispensing with No Dues Certificate for lending in rural and semi urban areas (Cir
RD &PS :74: 2014-15:895 dt.05.02.2015) RBI, vide their Circular no. RBI/201415/430/FIDD.CO.LBS.BC.No.49/02.01.001/2014-15 dated 28.01.2015 has advised banks to
___________________________________________________________________________________
9

.
dispense with obtaining No Due Certificate from the individual borrowers (including SHGs &
JLGs) in rural and semi-urban areas for all types of loans including loans under Government
Sponsored Schemes, irrespective of the amount involved.
The revised spread over Base Rate based on the combination of Internal and External
Rating Grade of the borrower (For Other Conventional Loans Not Specified
Elsewhere) is as follows: (cir no. RMD/82/2014-15/1023 DATE: 30.03.2015)
REVISED SPREAD BASED ON OVER BASE RATE BASED ON THE COMBINATION OF INTERNAL AND EXTERNAL RATING
GRADE OF THE BORROWER W.E.F. 30.03.2015
External Credit Risk Rating
Internal
AAA
AA
A
BBB
BB
B
C
D
Unrated
Unrated
Credit Risk
Large
Mid Corp.
Rating
Corp.
OBC 1
0.50%
0.75%
1.25%
2.25%
3.00%
3.50%
4.00%
5.00%
2.00%
2.50%
OBC 2
0.75%
1.75%
2.50%
2.75%
3.25%
3.75%
4.00%
5.00%
2.50%
3.00%
OBC 3
1.25%
2.00%
2.75%
3.25%
3.75%
4.00%
4.25%
5.00%
3.00%
3.50%
OBC 4
1.50%
2.25%
3.00%
3.75%
4.00%
4.25%
4.50%
5.00%
3.50%
4.00%
OBC 5
2.25%
2.75%
3.25%
4.00%
4.25%
4.50%
4.75%
5.00%
3.75%
4.25%
OBC 6
3.00%
3.25%
3.50%
4.25%
4.50%
4.50%
4.75%
5.00%
3.75%
4.50%
OBC 7
3.50%
3.75%
3.75%
4.25%
4.50%
4.75%
4.75%
5.00%
4.00%
4.75%
OBC 8
4.00%
4.00%
4.00%
4.50%
4.75%
4.75%
4.75%
5.00%
4.50%
4.75%
OBC 9
4.50%
4.50%
4.50%
4.50%
4.75%
4.75%
4.75%
5.00%
4.75%
4.75%
OBC 10
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
Modification in OBC Aadhar Scheme (cir no.CS&P/98/2014-15/1021 dt. 30-03-15)
sr. Existing Guidelines

No
.
1.
The minimum installment is fixed at Rs
10/ and in multiples thereof with a
maximum of Rs50,000/- p.m. Monthly
installments paid during the tenure of
the deposit account shall not exceed in
any month, ten times of the core
amount or Rs50,000/-, whichever is
less.
2.
Standing Instructions(SI) Facility:
SI facility not available presently
Modified Guidelines
The minimum installment is fixed at Rs 10/

and in multiples thereof with a maximum of
Rs50,000/- p.m.
Monthly installments paid during the tenure
of the deposit account shall not exceed in
any month, FIVE times of the core amount
or Rs50,000/-, whichever is less.
Standing
Instructions(SI)
Facility:
Standing Instruction facility has been
provided to the customer in the scheme, to
offer convenience of depositing the (fixed)
amount without any break; with the
enablement of the facility that customer gets
a choice of depositing flexible amount not
exceeding FIVE times of the core amount,
one more time in addition to the SI every
month. i.e. maximum two deposits in a
month be allowed only in case the
customer opts for SI facility; subject to
the total amount in the month not exceeding
___________________________________________________________________________________
10
.
five times of the core amount or Rs 50,000/, whichever is less
3.
One transaction is allowed in a month in

OBC Adhaar account and the total
amount in the month not exceeding ten
times of the core amount or Rs 50,000/, whichever is less.
In case SI facility is not opted by the

customer; only one transaction is allowed in
a month in OBC Adhaar account and the total
amount in the month not exceeding five
times of the core amount or Rs 50,000/-,
whichever is less.
. a. Outward NEFT/RTGS from any branch other than the parent/base/home branch shall not be
allowed. In case of Merger of branch or business shift on account of banks requirement, special
arrangement shall be made by HO CBS Cell after getting approval from CS&P department on case
to case basis.
b. It has been approved by the Competent Authority to allow Outward NEFT from any branch
other than the parent/base/home branch also upto Rs. 1.00 lac, with immediate effect (cir
No.CS&P/97 /2014-15/1020 dt 30-03-2015)
The Respective sanctioning authority can consider loan against deposit to the Proprietorship Firm
where proprietor of the firm is HUF and the Deposit is in the name of HUF and vice-versa within
their Delegated Powers. The same shall be treated as SELF deposit for the purpose of Delegated
Powers, Rate of Interest and Margin. Cir no. RMD/79/ 14-15/992 dt 20-03-2015.
HO has approved total waiver of minimum balance charges in the Savings accounts schemes as
mentioned below w.e.f 01.04.2015 (cir no.CS&P/ 94 /2014-15/961 dt 10-03-2015)
SB-204 Smart Pay (Salary Plus)
SB-212 Basic Saving Bank Deposit
SB-216 Financial Inclusion
SB-218 SB Balika
SB-220 Pension Account (Govt.)
SB-222 Small Account
SB-224 SB Kiosk (FI)
SB-228 SB DBT Deposit
SB-201 General Saving Bank
Account
SB-203 for Senior Citizens-Pranam
SB-213 Smart save WIPRO Salary
SB-214
SB-217
SB-221
SB-205
SB-206
SB-207
SB-223
SB-229
SB-235
Jeevan Sarthi
SB Vidyarthi
Salary plus
NR Ordinary Savings
NRE Savings
RFC Savings
SB Foreign Students
FCRA Saving Bank
Capital Gain SB- NRO
SB-208 Capital Gain Savings
15. Overdrafts in PMJDY will be classified under priority sector advances(others category) as also
weaker sections, provided the borrowers household annual income does not exceed Rs.60,000/for rural areas and Rs.1,20,000/- for non- rural areas.(cir no. RD&PS /79/ 2014-15/ 934)
___________________________________________________________________________________
11

.
Pradhan Mantri Jeevanjyoti Bima Yojana (PMJBY) (cir No. MKTG/03/2015-16/77 dt.
29.04.2015)
Scheme Highlights:
Scope of Coverage : All savings bank account holders in the age 18 to 50 years will be entitled
to join. In case of multiple saving bank accounts held by an individual in one or different banks,
the person would be eligible to join the scheme through one savings bank account only. Aadhar
would be the primary KYC for the bank account.
Enrolment Period : Initially on launch for the cover period 1st June 2015 to 31st May 2016,
subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late
enrollment for prospective cover will be possible up to 31st August 2015, which may be extended
by Govt. of India for another three months, i.e. up to 30th of November, 2015. Those joining
subsequently may be able to do so with payment of full annual premium for prospective cover,
with submission of a self-certificate of good health in the prescribed proforma
Enrolment Modality : The cover shall be for the one year period stretching from 1st June to
31st May for which option to join / pay by auto-debit from the designated savings bank account
on the prescribed forms will be required to be given by 31st May of every year, with the exception
as above for the initial year. Delayed enrollment with payment of full annual premium for
prospective cover may be possible with submission of a self-certificate of good health. Individuals
who exit the scheme at any point may re-join the scheme in future years by submitting a
declaration of good health in the prescribed proforma. In future years, new entrants into the
eligible category or currently eligible individuals who did not join earlier or discontinued their
subscription shall be able to join while the scheme is continuing, subject to submission of selfcertificate of good health.
Benefits : Rs.2 lakhs is payable on members death due to any reason.
Premium : Rs. 330/- plus Service Tax, as applicable, per annum per member.
The premium will be deducted from the account holders savings bank account through auto
debit facility in one installment, as per the option given, on or before 31st May of each annual
coverage period under the scheme. Delayed enrollment for prospective cover after 31 st May will
be possible with full payment of annual premium and submission of a self-certificate of good
health. The premium would be reviewed based on annual claims experience. However, barring
unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is
no upward revision of premium in the first three years.
Eligibility Conditions:a) The savings bank account holders of the participating banks aged
between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join
/ enable auto-debit, as per the above modality, will be enrolled into the scheme.
b) Individuals who join after the initial enrollment period extending up to 31st August 2015 or 30th
November 2015, as the case may be, will be required to give a self-certification of good health
and that he / she does not suffer from any of the critical illnesses as mentioned in the applicable
Consent cum Declaration form as on date of enrollment or earlier.
Master Policyholder : Bank will be the Master policy holder.
Termination of assurance: The assurance on the life of the member shall terminate on any of
the following events and no benefit will become payable there under:
1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date
(entry, however, will not be possible beyond the age of 50 years).
2) Closure of account with the Bank or insufficiency of balance tokeep the insurance in force.
___________________________________________________________________________________
12

.
3) In case a member is covered under PMJBY with LIC of India / other company through more
than one account and premium is received by LIC of India / other company inadvertently,
insurance cover will be restricted to Rs. 2 Lakhs by admitting the claim on the first application
based on date of enrollment and the premium on subsequent enrollments shall be liable to be
forfeited.
4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on
due date or due to any administrative issues, the same can be reinstated on receipt of full annual
premium and a satisfactory statement of good health.
5) The Bank shall remit the premium to insurance company in case of regular enrolment on or
before 30th of June every year and in other cases in the same month when received
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Scheme Highlights:
Scope of Coverage : All savings bank account holders in the age 18 to 70 years will be entitled
to join. In case of multiple saving bank accounts held by an individual in one or different banks,
the person would be eligible to join the scheme through one savings bank account only. Aadhar
would be the primary KYC for the bank account.
Enrolment Modality / Period: The cover shall be for the one year period stretching from 1 st
June to 31st May for which option to join / pay by auto-debit from the designated savings bank
account on the prescribed forms will be required to be given by 31st May of every year,
extendable up to 31st August 2015 in the initial year. Initially on launch, the period for joining
may be extended by Govt. of India for another three months, i.e. up to 30 th of November, 2015.
Joining subsequently on payment of full annual premium may be possible on specified terms.
However, applicants may give an indefinite / longer option for enrolment / auto-debit, subject to
continuation of the scheme with terms as may be revised on the basis of past experience.
Individuals who exit the scheme at any point may re-join the scheme in future years through the
above modality. New entrants into the eligible category from year to year or currently eligible
individuals who did not join earlier shall be able to join in future years while the scheme is
continuing.
Benefits : As per the following table:
Table of Benefits
Sum
Insured
a. Death
Rs. 2 Lakh
b. Total and irrecoverable loss of both eyes or loss of use of both Rs. 2 Lakh
hands or feet or loss of sight of one eye and loss of use of hand or
foot
c. Total and irrecoverable loss of sight of one eye or loss of use of Rs. 1 Lakh
one hand or foot
Premium : Rs. 12/- plus Service Tax, as applicable, per annum per member.
The premium will be deducted from the account holders savings bank account through auto
debit facility in one installment on or before 1st June of each annual coverage period under the
scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence
from the first day of the month following the auto debit.
The premium would be reviewed based on annual claims experience. However, barring
unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is
no upward revision of premium in the first three years.
___________________________________________________________________________________
13

.
Eligibility Conditions: The savings bank account holders of the participating banks aged
between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join
/ enable auto-debit, as per the above modality, will be enrolled into the scheme.
Master Policyholder : Bank will be the Master policy holder.
Termination of Cover: The accident cover for the member shall terminate on any of the
following events and no benefit will be payable there under:
1) On attaining age 70 years (age nearest birth day). 2) Closure of account with the Bank or
insufficiency of balance to keep the insurance in force. 3) In case a member is covered with
OICL/ other insurance companies through more than one account and premium is received by
OICL / other Insurance Company inadvertently, insurance cover will be restricted to Rs. 2 lakhs
by admitting the claim on the first application based on date of enrollment and the premium on
subsequent enrollments shall be liable to be forfeited. 4) If the insurance cover is ceased due to
any technical reasons such as insufficient balance on due date or due to any administrative
issues, the same can be reinstated on receipt of full annual premium, subject to conditions that
may be laid down. During this period, the risk cover will be suspended. 5) The Bank will deduct
the premium amount in the same month when the auto debit option is given, preferably in May
of every year and remit the amount due to the Insurance Company in that month itself.
Bank has revised RTGS Timings wef from 28-01-2015(cir No.DIT/34/14-15/843 dt.
21-01-2015):for Customer Txn (R41) Monday to Friday 08:00 Hrs to 16:15 Hrs; Saturday 08:00 Hrs to 13:45 Hrs
for Inter Bank Txn(R42) Monday to Friday 08:00 Hrs to 19:30 Hrs; Saturday 08:00 Hrs to 14:45 Hrs
Withdrawal of old series of Banknotes -Pre 2005 Series of Banknotes- The process of phasing
out the pre 2005 series of banknotes has been initiated by the RBI for various denominations in a
phased manner since 2008. Now the Reserve Bank of India has decided that all old series of
banknotes issued prior to 2005 (Pre-2005 banknotes) would be completely withdrawn from
circulation after June 30, 2015. (Cir No. ACT/34/CCHCELL/14-15825 13-01-2015).
(a) Cheques bearing date prior to the opening of account should not be ordinarily be accepted for
collection (b) Any cheque received for cash, clearing, transfer should be verified through UV Lamp
and a stamp be affixed on the back of the cheque, with a signature of the verifying official
confirming verification of the cheque. (cir No.CS&P/ 84 /2014-15/824 dt. January 13,
2015)
Premium for Personal Accidental Insurance cover for account holder (Cir No.Mktg/16/201415/819 09.01.2015)
Unnati Saving (SB219) Sum Assured Rs.50000/Premium Rate 4.50+S.tax per year
Pragati Current (CA113) - Sum Assured Rs.100000/- Premium Rate 9.00+S.tax per year
The guidelines regarding Priority Sector Lending- (CirRetail:41:2014-15:792
dt.30.12.2014)
i) Loans to individuals up to 25.00 Lacs in metropolitan centres with population above 10.00 Lacs
and 15.00 Lacs in other centres for purchase/construction of a dwelling unit per family excluding
loans sanctioned to banks own employees. ii) Loans for repairs to the damaged dwelling units of
families up to 2.00 Lacs in rural and semi- urban areas and up to 5.00 Lacs in urban and
metropolitan areas.iii) Loans granted for construction of a toilet (including inter alia costs of
plumbing and fixtures, etc.) in the house qualify for classification as priority sector advances
within the above limits.
___________________________________________________________________________________
14
RETAIL LENDING- Compliance of Codes of Banks Commitment to Customers (cir No.

Retail:42:2014-15:793 dt.31.12.2014)
Para of
Provision in Brief
code
8.12.1.2.g Branches are required to provide to customers a sanction letter detailing particulars of
amount sanctioned, terms and conditions, etc.
3.3.1
Branches are advised to inform the borrower of changes in interest rates and changes
in reference rate.
8.18.d
In the case of securities lodged with the bank for loan availed by customers, branch
shall not insist on customers obtaining insurance cover from any particular Insurance
company.
8.12.1.2.j Branches are required to give authenticated copies of the loan documents executed
by customers at Banks cost along with all enclosures
8.12.1.2p Branches are advised to return to customers all the securities/documents within 15
days of repayment of all dues.
Staff Vehicle Loan (Cir No. HO/HRD/72/70/2014-15/804 dt 07-01-15) One time Reg.
Chg. RT & Insurance for 1st year incurred at the time of purchase of new vehicle be included in
the cost of vehicle for the purpose of calculation of MPBF.
OBCC Parivaar Saving Group Account-Competent Authority for allowing concessions in Retail
Loans, SME & Agriculture (Term Lending) [Cir NoCS&P/81/2014-15/810 07-01-2015]
Parameter
Concession in rate of interest for Retail Loans, SME &
Agriculture (Term Lending) subject to charging of
Minimum Lending rate i.e. Base Rate.
Feature
0.25% on the prevailing rate,
subject to minimum of Base Rate.
Processing Fee for Retail Loans, SME and Agriculture

50% discount at applicable rate.
Term Lending
The RLCC-RH to act as the Competent Authority for permitting the concession/ discount as stated
above in Table for all the three schemes namely OBC Parivaar Saving Group Account, OBC Platinum
and OBC Diamond Saving Deposit Schemes.
Scheme for Financing Allied Agri. Activities Common banking guidelines
Eligible
Activities
Poultry Farming Loan may be provided for rearing of layers, broilers, quail,
duck, turkey, goose, etc. for production of eggs, meat, feathers and hatchery for
chick production.
Dairy Farming - Loan may be provided for Milk production activity i.e. purchase
and maintenance of milch animals (lactating cows / buffaloes) for milk production,
Rearing of good quality female calves, Cattle Breeding through Artificial
Insemination, construction of milk houses (Dudhghar) by Village Milk Cooperative
Societies, Development of pasture, Milk processing facilities, etc.
Fisheries: Inland Fisheries & Marine fisheries
Sheep/Goat Rearing: Loan may be provided for the purchase of sheep / goat for
the purpose of breeding and / or rearing them for wool, meat and milk production;
construction of sheds; purchase of equipments/tools and also for purchase of
concentrate feed,
___________________________________________________________________________________
15
Eligibility
Nature of Loan
Quantum of loan
Margin
Mode of
Disbursement
Rate of Interest
Security
Application
of
interest
Gestation Period
and Repayment
Period
Frequency
repayment
of
Piggery: Loan may be provided for breeding and rearing of pigs viz. - purchase of
exotic boars and sows, purchase of weaned piglets, construction of pig-pens, etc.
Apiculture: Loan may be provided for construction of honey houses, purchase of
colonies, purchase of equipments, shifting cost of bee-boxes to suitable place in lean
floral period, for meeting recurring cost, etc.
Animal Drawn Carts: Loan may be provided for purchase of draft animals and
animal drawn carts.
Individuals, farmers, agricultural laborers, tenant farmers, landless agriculture
labour, group of farmers, Self Help Groups, Joint Liability Groups, firms, co-operative
societies, companies
Term Loan : For financing items of investment
Cash Credit : To meet out daily expanses necessary to run the farm including
payment of insurance premium, vaccination
Composite Loan :For both the purposes mentioned above.
Quantum of loan will depend on the unit cost with applicable margins subject to
economic viability
Working capital requirement during the gestation period should be capitalized and
included in the project cost
Up to Rs1,00,000/- Nil
Over Rs1,00,000/- 15%
Subsidy may be treated as margin money
Regional Head is empowered to reduce margin to 10% in deserving cases
Bank may disburse all loans for agriculture purposes in cash which will facilitate
dealer choice to borrowers. Bank may continue the practice of obtaining receipts
from borrowers
Base Rate.
Rate of Interest shall also be applicable for existing accounts w.e.f. 01.01.2015.
(i) Upto100,000/- Hypothecation of animals / birds / assets created out of Bank
loan. (ii) Above Rs100,000/- to Rs200,000/- (a) Hypothecation of animals /
birds / assets created out of Bank loan. (b) Mortgage of Land / Property* minimum
equal to the amount of loan. or 3rd party guarantee of adequate net worth
acceptable to the Bank. or Liquid securities viz. FDR / NSC / KVPs etc. which may
adequately cover the loan amount plus the prescribed margin (iii) Above
Rs200,000/- (a) Hypothecation of animals / birds / assets created out of Bank
loan.(b) Mortgage of Land / Property* minimum equal to the amount of loan. or
Liquid securities viz. FDR / NSC / KVPs etc. which may adequately cover the loan
amount plus the prescribed margin. * Land / Property may be Agriculture /
Residential / Commercial which are eligible for creation of bank charge and the
valuation of land shall be done as per current DLC rate
Interest on agricultural loans should be applied monthly / quarterly / half yearly /
yearly depending upon nature of activity / income generation.
These periods depend on nature of activity. Gestation period may vary from 3 12
months while Repayment period may vary from 12 84 months excluding Gestation
period. Gestation period and repayment period for each activity are prescribed in
respective annexure (1-6).
Frequency of repayment of agricultural loans should be fixed monthly / quarterly /
half yearly / yearly depending upon nature of activity / income generation.
___________________________________________________________________________________
16
Insurance
Insurance of animals / birds / carts / assets purchased with bank loan should be got
done as per bank's guidelines issued from time to time.
Classification of The finance made under the scheme may be classified under Agriculture / MSE as
Advance
per the guidelines of RBI circulated from time to time.
Exceptions of
the Scheme:-
(i) Where the scheme has been approved by NABARD, all the terms and
conditions stipulated by NABARD shall be followed. For the parameters which are
not discussed in the scheme of NABARD, the guidelines of this scheme shall be
applicable.(ii) The above, shall also be applicable in respect of Govt. sponsored
schemes
Implementation of Digital Life Certificate (Jeevan Pranam) Honble Prime Minister has
launched an Aadhaar based digital life certificate Jeevan Pramaan in lieu of annual life certificate
on 10th November, 2014 to realize the vision of Digital India. The purpose of Aadhaar based
biometric verification system for pensioners (Jeevan Pramaan) is to simplify processes and
facilitate accuracy and timeliness in disbursal of pension. This is an additional facility for
pensioners with existing submission of Life Certificate in physical form. (Cir No.GBC/44/201415/745 Date: 15-12-2014).
Timely acknowledgement/ disposal of Public Grievances - The Department of
Administrative Reforms & Public Grievances, Government of India has received feedback that
public grievances are not being acknowledged and replied to within a reasonable time. Accordingly
the Department of Financial Services, Ministry of Finance has desired that all public grievances be
acknowledged within 3 days of receipt of the complaint and final reply be sent within 30day (cir
Complaints /15 / 2014-15 /722 08.12.2014)
Podjfds Categorization of Activities under Manufacture or Service under the MSMED Act
2006 - A) Activities considered as Manufacturing - a) Cotton Ginning b) Power generation
by conventional as well as by non-conventional processes B) Activities considered as Service:
a) Retreading of tyre b) Infrastructure and Real Estate activities (Enterprises should indicate in
brackets the specific activities, it dealt with, concerning Infrastructure and Real Estate) c) Power
(Electrical) Distribution Service d) Warehouse, Godown and Cold Storage service
TIME NORMS FOR RETAIL CREDIT SCHEMES(cir No.Retail/36/2014-15/698 1-122014)
Scheme
Time Frame for sanctioning / disbursal of loans after receipt of
complete documents by branch as well as RO
Housing &
For Loans under Branch Manager Powers: 3 to 7 days after submission of
Mortgage
full set of documents by the borrower
Loan
For Loans under Regional Head Powers: Maximum upto 15 days after
submission of full set of documents by the borrower.
Education
Loan shall be disposed off within 15 days of receipt of duly completed
Loan
application with supporting documents
Vehicle Loan
Loan shall be disposed off at the earliest
Abolishing of Processing fee/ Service Charges in respect of credit facility to Self Help
Groups under NRLM -Credit Risk Management Committee in its 107th meeting held on 24th
November 2014, has approved the abolishment of processing fee/ service charges in respect of
credit facility to Self Help Group under NRLM. (Cir RD &PS:56 :2014-15:685 dt 26-11-2014)
Implementation of OTP services for VISA card based eCommerce transactios OBC has
implemented services of sending One-Time-Password (OTP) to registered Mobile numbers of
___________________________________________________________________________________
17
customers for undertaking their card-based eCommerce transactions, which has replaced the
practice of using static password for VBV transactions. The said OTP services have commenced
w.e.f. 12th Nov, 2014 (cir No.DIT/ATM/30/14-15/664)
OBC started to accept enhanced subscription of 1,50,000/- in ORIENTAL BANK TAX SAVING
TERM DEPOSIT AMENDMENT SCHEME, 2014 account (cir.CS&P/69/2014-15/663 1711-14)
In case of death of guarantor / partner, the operations in the account be stopped and the mater
be referred to the Sanctioning Authority within one month irrespective of fact whether review is
due or not with complete details. If the Sanctioning Authority permits the operations in the
account, the same be allowed after complying with the terms of permission. (cir CAD/75/1415/662 dt.11-11-14)
Ibankig OTP facility through Email all ibanking customers are allowed to receive the login OTP
through E-mail at their registered E-mail ID. (cir no.DIT/28/14-15/629 dt. 04-11-2014)
NACH - NCPI has implemented National Automated Clearing House (NACH) for banks, FIs,
Corporates and Govt. a web based solution to bacilitate interbank, high volume, electronic
transactions which are repetitive and periodic in nature. Nach systems can be used for making
bulk transactions towards distribution of subsidies, dividends, interest salary pernison etc and also
bulk txns towards collection of payments pertaining to telephone electricity ater, loans,
investments in mutual funds, insurance premium etc. (cir no.DIT/ps/27/14-15/628 04-1114)
Home Loan Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS LIH)
increased in the eligible Housing Loan Amt. form 5.00 lac to 8.00 lacs. (Cir Retail:33 :201415:619 dt. 01-11-2014)
ACCOUNTS (OTHER THAN CURRENT ACCOUNTS) OF ILLITERATE PERSONS:
CATEGORY OF
OPENING ISSUANCE ISSUANCE OF OPERATION OF
CUSTOMER
OF
OF
ATM TO
ACCOUNT (MODE OF
ACCOUNT CHEQUE
ILLITERATE
OPERATION)
BOOK
Illiterate
Individually No
Yes
Self
Illiterate joint with
Jointly
No
Yes
E or S, or Joint Operation
Illiterate
Illiterate Blind with
Jointly
No
Yes
E or S, or joint Operation
Illiterate
Illiterate with literate
Jointly
Yes
Yes
Illiterate Blind with
Jointly
Yes
Yes
literate
In case of Joint Operation (mode of operation), ATM/Debit card will not be issued
New TDS Regulations 194DA of Income Tax Act 1961 - A new section 194DA has been
introduced in the Income Tax Act, 1961 (The Act), which states that any person responsible for
paying to a resident any sum under a life insurance policy, including the sum allocated by way of
bonus on such policy, other than the amount not included in the total income under clause (10D)
of Section 10, shall, at the time of payment thereof, deduct income tax thereon at the rate of two
percent. No deduction shall be made where the amount of such payment of, as the case may be,
the aggregate amount of such payments to the payee during the Financial Year is less than one
hundred thousand rupees (cir Mkt/JV/10/14-15/560 dt 27-09-2014).
___________________________________________________________________________________
18
Rupay ATM cum Debit Card facility is permitted in the accounts of illiterate customers,
however it should be ensured that he/she is able to understand (i)the numerical as scripted on
the ATM machine and (ii) in the letter informing the PIN number and also (iii) to distinguish
his/her card from other cards. He/ She must be informed of the procedure of operating the ATM
machine as well as use of various buttons on ATM machine and elaborating the importance of the
PIN number and how to change them. (cir CS&P/54/14-15/489 dt 17-9-14)
The Govt. of India, has enhanced the individual subscription limit under Public Provident Fund
(PPF) Scheme, 1968, from existing Rs1,00,000 to Rs1,50,000 in a financial year. (Cir no. GBC
/21 / 2014-15 / 407 23-8-14)
PMJDY - LIFE INSURANCE COVER OF Rs.30,000/- FOR PMJDY ACCOUNT HOLDER
BENEFITS UNDER THE SCHEME - The scheme provides for life cover of Rs. 30,000/- payable on
death of the beneficiary due to any cause, subject to fulfillment of the eligibility conditions:
BASIC ELIGIBILITY CONDITIONS - i. Person opening Bank account for the first time, with RuPay
Card in addition, during the period from 15-08-14 to 26-01-15, or any additional period as may be
extended further by Government of India.
ii. The person should normally be head of the family or an earning member of the family and should
be in the age group of 18 to 59 ( i.e. person should be at least 18 years old, and should not have
completed 60 years of age). In case the head of family is 60 years or more of age, the second earning
person of the family in the above mentioned age group will be covered, subject to eligibility.
iii. Person must have a RuPay Card and Bio Metric Card linked to bank account or in process of
being linked to bank account if not already there.
iv. The account can be any bank account including a small account.
v. For the coverage to be effective the above RuPay Card should be valid and in force at the time of
the death of the member
vi. Only one person in the family will be covered in the Bima Scheme and in case of the person
having multiple cards / accounts the benefit will be allowed only under one card i.e. one person per
family will get a single cover of Rs.30,000/-, subject to the eligibility conditions.
vii. The life cover of Rs 30,000/- under the scheme will be initially for a period of 5 years, i.e. till the
close of financial year 2019-20. Thereafter, the scheme will be reviewed and terms and condition of
its continuation, including the issue of future payment of premium by the insured thereafter, would be
suitably determined.
viii. In case the PMJDY Account is held jointly, then the first account holder i.e. primary Account
holder will be eligible for cover subject to the eligibility conditions.
INELIGIBLE CATEGORIES - i. Central Government and State Government employees (in service or
retired) and their families.
ii. Employees (in service or retired) of Public Sector Undertakings, Public Sector Banks, any entity
owned by Central Government, any entity owned by a State Government or any entity jointly owned
by the Central Government and any State Government, and their families.
iii. Persons whose income is taxable under I.T. Act 1961 or are filing the yearly Income Tax return or
in whose case TDS is being deducted from the income, and their families.
iv. Persons who are included in the AamAadmiBimaYojana covering 48 occupations defined under the
Scheme, and their families.
v. Otherwise eligible account holders, who have life cover on account of any other scheme of the
Bank against the account, shall have to choose between the two schemes and derive benefit from
only one.
vi. All persons who do not fulfill the basic eligibility conditions of the scheme.
___________________________________________________________________________________
19
EXIT FROM SCHEME - The person will exit the scheme on completing of age 60, i.e. on the day the
person completes age 60 or closure of the Scheme, whichever is earlier.
Cash Withdrawal at Non Base Branch-The limit of cash withdrawal i.e. Rs.1.00 lac at Non
Base branch was fixed and withdrawal beyond Rs. 1.00 lac at Non Base Branch is allowed with
prior approval of competent authority.It is informed that Regional Head has been designated as
competent authority to allow cash withdrawal beyond Rs. 1.00 lac (maximum Rs. 5.00 lac) to
valuable customers at Non Base Branch. It is reiterated that cash payment at Non Base Branch
will be allowed when the customer visits such branch himself/herself.
Acceptance of Aadhaar e-KYC as a valid Process for KYC Verification while opening of new
Accounts - Reserve bank of India(RBI) has issued a Circular vide ref. DBOD.AML. BC. No.
44/14.01.001/2013-14 dated 02.09.2013 amending the master circulars prevailing on KYC
Norms/AML Standards/Combating Financing of Terrorism (CFT)/ Obligation of Banks under PMLA,
2002 - accepting Aadhaar e-KYC as a valid process for KYC verification under PMLA (Maintenance
of Records) Rules, 2005. With e-KYC service of the UIDAI our Bank shall now be able to receive
an electronic copy of identify proof and address of the Customer based on his Aadhaar Number.
The e-KYC shall provide instant and paperless verification of Customer identity and address
thereby allowing Branches to quickly open the new Accounts. To achieve e-KYC of the Customers,
the Banks e-KYC Application server will communicate with UIDAIs e-KYC server through NPCI
Interface
Commencement of Business: Public Provident Fund (PPF)- 1968 & Senior Citizens Savings
Scheme(SCSS)- 2004. The Bank has been authorized for handling business under Public Provident
Fund- 1968 and Senior Citizen Savings Scheme-2004 through 50 authorized Branches w.e.f
01.02.2014.
The Public Provident Fund (PPF) Scheme 1968 was introduced to mobilize small savings.
The Scheme offers an investment avenue with decent returns coupled with income tax benefits.
Salient features of the Scheme are as follows: Eligibility: Individuals in their own name as well as
on behalf of a minor can open the account at any Branch. A Public Provident Fund (PPF) account
can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however
the Mother and Father both cannot open Public Provident Fund (PPF) accounts on behalf of the
same minor.
NRI, & HUF are not permitted to open account under the said scheme.
Investment Limit: Minimum of Rs.500.00 subject to a maximum of Rs.1 lac per annum may be
deposited. The amount can be deposited in lump sum or in a maximum of 12 installments per
year.
In case the subscriber is not in a position to invest during a particular year(s), the account may be
revived on payment of penalty @ Rs.50.00 per year along with arrears of subscription.
Duration of the Scheme: Original duration is 15 years. Thereafter, on application by the
subscriber, it can be extended for 1 or more blocks of 5 years each.
Rate of Interest: 8.70% per annum (presently). Interest will be paid on 31st March every
year. Interest is calculated on the minimum balance between 5th day and end of the month.
Loans & Withdrawal: Loans and withdrawals are permitted depending upon the age of the
account and balances as on the specified dates.
Tax Benefit: Income Tax benefits are available under Sec 80C of IT Act. Interest income is
totally exempt from Income Tax.
___________________________________________________________________________________
20
Nomination: Nomination facility is available in the name of one or more persons. The shares of
nominees may also be defined by the subscriber.
Transfer of Accounts: The account can be transferred to other branches/ other banks or Post
Offices and vice versa upon request by the subscriber.
Senior Citizens Savings Scheme(SCSS)-2004:
Eligibility: Senior Citizens Savings Scheme has been introduced for persons with 60 years (55
years for those who have retired on superannuation or under a voluntary or special voluntary
scheme). The retired personnel of Defence Services (excluding Civilian Defence Employees) will be
eligible to invest irrespective of the age limits subject to the fulfillment of other specified
conditions.
NRI, PIO & HUF are not permitted to open account under the said scheme.
Investment limit: Investment to be in multiples of Rs1000/- Maximum investment limit 15 lakh
Duration of the scheme: 5 years, which can be extended by 3 years.
Rate of Interest: 9.2 per cent per annum (presently).
Nomination: Nomination facility is available.
Mode of Holding: Accounts can be held both in single and joint holding modes. Joint holding is
allowed only with spouse.
Investment: Both the spouses can open individual and / or joint accounts with each other with
the maximum deposits up to Rs15 lakh each, provided both are individually eligible to invest under
relevant provisions of the Rules governing the Scheme.
Transfer of Accounts: The account can be transferred to other branches/ other banks or Post
Offices and vice versa upon request by the subscriber.
Timely lodging of Claims in CGTMSE - Guideline for lodging of claims is as under:
i) Bank / Borrower has to pay Guarantee Fee / Annual Service Fee / Annual Guarantee Fee
regularly in time to keep guarantee in force.
ii) The date of classification of the account as NPA in a particular quarter is to be marked on online
CGTMSE portal by the end of subsequent quarter
iii) Lodgment of Claims:
For loan sanctioned on or before 31.12.2012 the claims are to be lodged within a maximum
period of one year from the date of NPA, if date of NPA is after the lock-in-period. In case date of
NPA is within lock-in-period, claim is to be lodged within one year from the expiry of lock-in
period.
For loan sanctioned on or after 01.01.2013 the claims are to be lodged within a maximum
period of two years from the date of NPA, if date of NPA is after the lock-in-period. In case date of
NPA is within lock-in-period claim is to be lodged within two years from the expiry of lock-in
period.
The lock-in-period is 18 months from either the date of last disbursement of the loan to the
borrower or the date of payment of guarantee fee in respect of the credit facility to the borrower,
whichever is, later.
iv) The borrower account is to be classified NPA as per norms.
v) The credit facility should have been recalled and the recovery proceedings initiated under due
process of law i.e. Bank should initiate the legal action in any of the Forums like Civil Court / DRT
/ Lok Adalat / RC File / RRA/SARFAESI etc. However, initiation of legal proceedings as a precondition for invoking of guarantee shall be waived for credit facilities upto Rs.50,000/- sanctioned
on or after 01.01.2013, subject to the condition that for all such cases, where the filing of legal
proceedings shall be waived by Regional Heads. Such cases are referred to Executive Committee
___________________________________________________________________________________
21
of the bank headed by GM (RD&PS) at Head office, for not initiating legal action and lodging claim
thereof. On approval from Head office, claims in these cases are to be lodged with CGTMSE.
vi) The Declaration & Undertaking duly signed by Asst. General Manager or officer of equivalent
rank of Regional office is to be enclosed with the Claim Application Form submitted to trust.
vii) The claims are lodged online at CGTMSE portal by Regional office.
Government of India has vide their notification dated 25.03.2014 notified that the maximum limit
for investment in Inflation Indexed National Savings Securities- Cumulative has been increased to
Rs. 10 lakh per annum for eligible individual investors and Rs. 25 lakh per annum for Institutions
such as HUFs, Charitable Trusts, Education Endowments and similar institutions which are not proprofit in nature. The subscription will close on March 31, 2014
SETTING UP OF CENTRAL REPOSITORY OF INFORMATION ON LARGE CREDITS
(CRILC)
The Reserve Bank of India will set up a Central Repository of Information on Large Credits
(CRILC) to collect, store, and disseminate credit data to lenders.
Banks will have to furnish credit information to CRILC on all their borrowers having aggregate
fund-based and non-fund based exposure of Rs5 Crore and above with them.
In addition, banks will have to furnish details of all current accounts of their customers with
outstanding balance (debit or credit) of Rs1 Crore and above.
Banks will be required to report, among others, the SMA status of the borrower to the CRILC.
Banks are required to put in place a proper Management Information and Reporting System so
that any account having principal or interest overdue for more than 60 days gets reported as SMA2 on the 61st day itself.
Individual banks will have to closely monitor the accounts reported as SMA-1 or SMA-0 and take
up the issue with the borrower with a view to rectifying the deficiencies at the earliest.
Reporting of an account as SMA-2 by one or more lending banks/notified NBFCs will trigger the
mandatory formation of a Joint Lenders Forum (JLF) and formulation of Corrective Action Plan
(CAP).
FORMATION OF JLF (JOINT LENDERS FORUM) and CAP (CORRECTIVE ACTION PLAN)
1. The JLF formation will be mandatory for distressed borrowers, engaged in any type of activity,
with aggregate (fund based and non-fund based) exposure (AE) of 100 Crore and above from
more than one lender.
2. Lenders, however, have the option of forming JLFs even when the aggregate fund-based and
non-fund based exposures in an account are less than 100 Crore and even when the account is
reported as SMA-0 or SMA-1.
3. A borrower may request the lender/s, with substantiated grounds, for formation of a JLF on
account of imminent stress. When such a request is received by a lender, the account should be
reported to CRILC as SMA-0. Further, the lenders should also form the JLF immediately if the AE is
100 Crore and above.
4. The CAP by JLF may explore various options to resolve the stress in the account including: (a)
Rectification (b) Restructuring (c) Recovery
5. The decisions agreed upon by a minimum of 75% of creditors by value and 60% of creditors by
number in the JLF would be considered as the basis for proceeding with the restructuring or
recovery action of the account, and will be binding on the lenders under the terms of the Inter
Creditor Agreement (ICA).
6. The JLF is required to arrive at an agreement on the option to be adopted for Corrective Action
Plan (CAP) within 30 days from (i) the date of an account being reported as SMA-2 by one or
___________________________________________________________________________________
22
more lender, or (ii) receipt of request from the borrower to form a JLF, with substantiated
grounds, if it senses imminent stress.
6. PENAL MEASURES
6.1. In case the bank fails to report SMA status of the accounts to CRILC or resort to methods
with the intent to conceal the actual status of the accounts or evergreen the account, bank will be
subjected to accelerated provisioning as prescribed below for these accounts and/or other
supervisory actions as deemed appropriate by RBI.
6.2. The current provisioning requirement and the revised accelerated provisioning in respect of
such non performing accounts are as under:
Classification
Substandard Up to 6 months
(secured)
6 months to 1 year
15
provisioning Revised
accelerated
provisioning (%)
No change
15
25
Sub-standard
Up to 6 months
(unsecured abinitio)
25
(other
than 25
infrastructure loans)
20 (infrastructure loans)
Doubtful I
Doubtful II
Doubtful III
Period as NPA
Current
(%)
6 months to 1 year
25
(other
than 40
infrastructure loans)
20 (infrastructure loans)
2nd year
25 (secured portion)
100 (unsecured portion)
100 (unsecured portion)
100
(unsecured
portion)
100
for
both
secured
and
unsecured portions
100
100
3rd & 4th year
5th year onwards
On a review of the Permitted Transactions under the Rupee Drawing Arrangements (RDAs), it has
been decided by RBI vide its A. P. (DIR Series) Circular No. 111 dated March 13, 2014 to increase
the limit of trade transactions from the existing Rs 2,00,000/- (Rupees Two Lakh only) per
transaction to Rs 5,00,000/- (Rupees Five Lakh only) per transaction.
Liberalised Remittance Scheme (LRS) for resident individuals-Increase in the limit
from USD 75,000 to USD 125,000
RBI vide its A.P. (DIR Series) Circular No.138 dated June 3, 2014 has decided to enhance the
existing limit of USD 75,000 per financial year (April-March) to USD 125,000 with immediate
effect. Accordingly, AD Branches may now allow remittances up to USD 125,000 per financial
year, under the Scheme, for any permitted current or capital account transaction or a combination
of both.
Online Saving Bank Account Application- Bank, is in the process of providing online
application facility for opening the saving account in different locations. Any resident Indian
desirous of opening a Savings Bank. Account with OBC (Branches located in Metro and Urban
centres) can apply for Saving Bank Account on line and get an Application Reference Number. The
___________________________________________________________________________________
23
Application reference number shall be displayed on the screen for communication to applicant to
visit the branch with required documents within 10 days
REVISED SCHEDULE AND AUTOMATIC RECOVERY OF CHARGES ON REGISTERATION OF
EQUITABLE MORTGAGE IN CENTRAL REGISTRY (CERSAI)
S.
No.
1
Nature of transaction to FORM

be Registered
No.
Particulars of Creation or FORM I
Modification
of
Security
Interest in favour of Secured
Creditors
Satisfaction of any existing FORM II

Security Interest
Particulars of securitisation or FORM
reconstruction of financial III
assets
Particulars of satisfaction of FORM IV
securitisation
or
reconstruction transactions
Any application for information recorded
/ maintained in the Register by any
person/ Search of the Property
Any
application
for --condonation of delay up to 30
days
3
4
5
6
Amount of fee payable

For creation and for any subsequent
modification of security interest in favour of a
secured creditor for a loan
1. Upto Rs. 5.00 lac - Rs. 250.00 + applicable
Service Tax.
2. Above Rs. 5.00 lac- Rs. 500.00+ applicable
Service Tax
Nil
Rs.1000.00 + applicable Service Tax
1. In case of creation of security interest for a
loan up to Rs.5.00 lac -- Not exceeding
2. In case of creation of security interest for a
loan above Rs.5.00 lac Not exceeding
In order to streamline the process, the recovery of charges on particulars of creation of Security
Interest with Central Registry through Finacle has now been automated through CBS system.
Revised Policy on Credit Information Reports of the Borrowers provided by the Credit
Information Companies (CICs). 1 CIBIL TRANSUNION SCORE 2. CIBIL PERSONAL LOAN
SCORE
1.1. Presently, there are four Credit Information Companies registered with RBI viz:
Credit Information Bureau of India Ltd. (CIBIL)
Equifax Credit Information Services Private Limited
Experian Credit Information Company of India Private Limited
High Mark Credit Information Services Private Limited
1.2. The revision in Banks Policy on Credit Information Reports of the borrowers provided by the
Credit Information Companies(CICs): (1) CIBIL TransUnion Score and (2) CIBIL Personal Loan Score
was approved by the Board of Directors in the meeting dated 31.01.2014 vide Agenda No. 6 and was
circulated to the field functionaries vide Circular No. HO/RMD/92/2013-14/1092 dated 15.02.2014.
___________________________________________________________________________________
24
1.3. The revised system of scrutinizing the Credit Information Report (CIR) of the borrowers provided
by the Credit Information Companies (CICs) was approved by the Credit Risk Management Committee
vide Agenda No.15 in the meeting dated 31.03.2014 with an aim to have:
Better quality of credit portfolio,
Objective and transparent scrutiny/processing of credit proposals and effective pricing,
Monitoring of the credit facilities.
1.4. The scrutiny summary report of Credit Information Reports(CIRs) of the borrowers provided by
the Credit Information Companies(CICs) to be made part of loan appraisal format was circulated to
the field functionaries vide Circular No. HO/ RMD/01/2014-15/24 dated 09.04.2014.
EXISTING GUIDELINES REGARDING CREDIT INFORMATION REPORTS(CIRs) PROVIDED
BY CREDIT INFORMATION COMPANIES (CICs)
CIBIL maintains separate Database for Consumer and Commercial Segments. The Consumer
Segment caters to the information regarding borrowers in the individual capacity and the
Commercial Segment caters to entities that are other than individuals (firms/companies).
In the Commercial Segment, CIBIL provides a detailed Credit Information Report(CIR) of the borrower
incorporating profile of the borrower, details regarding credit facilities sanctioned to the borrower,
inquires made by the lenders, default status, details regarding the Suit filed, if any, etc. CIBIL does
not provide any score for the borrowers under Commercial Segment.
In the Consumer Segment (Individuals), CIBIL provides two scores viz, CIBIL TransUnion Score
Version 2.0(TU) and CIBIL Personal Loan Score (PL).
CIBIL TransUnion Score Version 2.0(TU)
CIBIL TransUnion Score Version 2.0(TU) takes into account both Secured and Unsecured Exposures.
The Consumers/Borrowers having more than 6 months of credit history are given score in the range
of 300-900 and higher the score, lower is the risk.
The Consumers/Borrowers having less than 6 months of credit history are given score in the range of
1-5 and higher the score, lower is the risk.
CIBIL Personal Loan Score (PL)
CIBIL Personal Loan Score (PL) takes into account only Unsecured Exposures.
All individuals with at least 1 month of reporting of Unsecured Loans will get a score between 300
900.
Clarifications sought by the Field Functionaries
The field functionaries have sought clarifications regarding Score of -1 under CIBIL TransUnion Score
Version 2.0 and CIBIL Personal Loan Score.
INTERPRETATION OF CIBIL SCORE
The interpretation of Score of -1 under CIBIL TransUnion Score Version 2.0 as provided by
CIBIL is as follows:
Individual has no trade & is not reported on the bureau.
Individual has no trades & has only been enquired upon.
Individual has trades on bureau, but all have been closed 24 months prior to enquiry.
Individual has trades but none have been reported in the last 24 months.
The interpretation of Score of -1 under CIBIL Personal Loan Score is as follows:
Borrowers with no eligible trades in the Bureau, only enquired upon
___________________________________________________________________________________
25
Issuance of Demand Drafts against cash

1. In case of cash Transactions below Rs.50,000/-carried out by a non account based customer that is
walk in customer, full details of the customer, including complete address, telephone number etc.
should necessarily be obtained.
2. To curb the misuse of banking channels for violation of fiscal laws and evasion of taxes the RBI has
issued guidelines regarding issue and payment of Draft for Rs.50000/- and above. As per guidelines a
draft for Rs. 50,000/- and above should not be issued against deposit of cash. It is not permissible for
a customer to split amount ofRs.50,000/- and above and request for more than one demand draft on
the same day favoring the same beneficiary.
3. In case of transactions carried out by a non-account based customer, that is a walk- in customer,
where the amount of transaction is equal to or exceeds rupees fifty thousand, whether conducted as
a single transaction or several transactions that appear to be connected, the customer's identity and
address should be verified.
4. Such request for issuance of multiple drafts for belowRs.50,000/- each (by way of deposit of cash)
in the name of different beneficiaries on behalf of a single applicant though can be considered but
should be discouraged keeping in view the AML guidelines. However, if drafts have to be issued,
before accepting such requests, the branch must be put on caution and seek the following:
a) PAN of the applicant, b) Reasons for getting multiple drafts issue by way of deposit of cash. c)
Complete details of the existing banker of the applicant along with the details of credit facilities
sanctioned, if any. d) In case applicant is enjoying credit facilities from any bank/FI, advise the
applicant to get the drafts issued from its banker. e) In other cases, obtain complete identification
proof as per KYC norms. (Self attested copies of the identity and address proof be obtained, verified
from the original and attested by concerned bank officer). All such documents be attached with the
voucher for record and future reference.
ATM / Debit Card facility in the Minors account operated by Natural/Legal Guardian
As per Banks existing policy for issuing ATM/ Debit Cards, following types of customers are not
eligible for ATM/ Debit Cards:
1. Minors below 14 years 2. Illiterate 3. Insolvent. 4. Persons operating the accounts in
representative capacity
Presently the ATM cum Debit card is not issued in the Minors accounts opened/operated under/by
natural /legal guardian, as these accounts are held in representative capacity.
With a view to facilitate transactions in the accounts of Minors the Banks Policy of issuing ATM cum
Debit Card has been modified as under:
1. Self Operated accounts of Minor-An ATM/DEBIT Card is issued to a minor of the age of 14
years and above.
2. ATM cum debit cards may be issued to natural/legal guardian after taking the following
onetime undertaking at the time of issuing ATM cum Debit card at the branch
The amount withdrawn/spent through ATM/debit card shall be exclusively utilized for the
necessities and benefits of the minor
PAYMENT OF RUPEE TERM DEPOSITS (FDR/CDR AND PROGRESSIVE DEPOSITS) AT
NON-BASE BRANCHES
Existing System
Modification
___________________________________________________________________________________
26

Payment of TDR on maturity
(To the credit of account)
In case a depositor has not exercised the
option to automatically credit the amount
in his operative account on maturity, has
to present the TDR physically at the
issuing branch only. No other branch is
permitted to make
the payment
Cash Payment of TDR on maturityThe cash payment of TDR (the amount less
than Rs.20,000/- Including Intt. as per IT
rules) is made to the depositor after
observing all safeguards like signatures etc.permitted at base branch only.
Payment
of
Term
Deposits
on/before/after
maturity
to
the
depositors by way of remittance of
funds through Draft/RTGs/NEFTThe transaction is permitted at base branch
only.
Renewal of TDR on maturity
In case the customer has not exercised the
option of Auto Renewal at the time of
account opening, the customer can get it
renewed w.e.f the date of maturity in case
he approaches the base branch for renewal
on due date or within in 14 days after due
date.
On receiving such request, the base
branch, extends the validity/renews the
TDR in the system and mention the details
regarding ROI, tenure, due date in the
format provided at the reverse of TDR.
There is no need issuing new TDR.
The activity takes place at base branch.
Renewal of overdue term Deposit
The original TDR is presented at the base
branch and is renewed w.e.f the date of
request after allowing intt. for the overdue
period at applicable rates.
.
The depositor may present the original TDR
at any branch of the bank with the
instructions to credit the maturity proceeds in
his/her operating account by giving the
proper discharge on TDR according to the
mandate registered in the account (e.g. E or
S F or S joint Operation etc.)
No Change
No Change
Renewal of TDR on Maturity

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

The depositor may present the overdue TDR in
original, at any branch of the bank for renewal.
The Intt-Paid Account of the base branch shall
be debited and the TDS account (if deducted)
of the base branch shall be credited. It shall be
the responsibility of the base branch to dispatch
Form 16 at the depositors address.
(In case the customer has shifted the base, and
he approaches a non-base branch for
renewal of Term deposit he may be suggested
___________________________________________________________________________________
27

Encashment of Overdue Term Deposit
The original overdue TDR is presented at
base branch. The Overdue interest@ SB rate
is paid and the maturity amount is
paid/credited to the depositor/credited in the
depositors account. (As the case may be)
Payment of Progressive Deposits on
maturityPermitted at base branch only.
.
to transfer his account to that branch for his
own convenience).
Encashment of Overdue Term Deposit
The encashment of Overdue TDR if presented in
original at non-base branch may be paid as per
banks policy on encashment of overdue term
Deposits, through the depositors account.
The Interest Paid account of the base branch
shall be debited, and TDS activity shall happen
at the base branch only.
The payment of Progressive Deposit Account
which has completed its term may be paid at
non base branches by crediting the maturity
proceeds to the depositors operative account.
Premature Payment of all types of No Change

Term Deposits: Permitted at base branch
only
Other activities: Marking lien, lifting lien, No Change
issuing
TDS
certificate,
registration,
modification, cancellation of nomination etc
are permitted at base branch only.
INCOME TAX PROVISIONS IN RESPECT OF APPLICABILITY OF FORM 15G / 15H
(Circular No. HO/ACT/ 02/2013-14/56 20.04.2013)
Central Board of Direct Taxes vide notification dated 19.02.2013 has modified the guidelines
regarding applicability of Form 15G & 15H. Vide said notification, CBDT has also changed the format
of 15G & 15H. We are forwrding the revised guidelines for applicability of Form 15G / 15H :
A. Provision regarding Applicability of Form 15G/15H
While accepting form 15G/15H, following points should be kept in mind : Form 15G/15H should be accompanied with the PAN of the assessee, Otherwise TDS is to be
deducted at the rate of 20% or the applicable rate whichever is higher.
Form 15G can be accepted from any person other than company or firm if the amount of interest
paid/credited or likely to be paid or credited alongwith the estimated income declared by the
declarant during the financial year does not exceed the maximum amount not chargeable to tax
i.e. Presently Rs. 2.00 lakhs.
Form 15H can be accepted only from senior citizens / super senior citizens if the amount of
interest paid/credited or likely to be paid or credited alongwith the estimated income declared by
the declarant during the financial year does not exceed the maximum amount not chargeable to
tax i.e. presently Rs 2.50 Lakhs for Senior Citizen and Rs 5.00 Lakhs in case of Super Senior
Citizen. The said limit is after allowing deduction under Chapter VI A of the Income Tax Act.
Senior Citizen is a resident individual who is 60 years or more at any time during the financial
year but not more than 80 years on the last day of financial year.
Super senior citizen is a resident individual who is 80 years or more at any time during the
financial year.
___________________________________________________________________________________
28
The branches should ensure that declaration in Form 15G & 15H received from the parties is
filed with the respective Commissioner of Income Tax on or before 7th of the
following month in which declaration is received. Failure to do so entail levy of penalty by
the income tax authorities.
B. Penalty for non-furnishing / delay in furnishing form 15 G/ 15H :

If Form 15G/15H is not furnished with the concerned authorities on time then a penalty of Rs.100 can
be imposed for every day during which the default continues.
All other guidelines regarding applicability of provisions of TDS communicated vide circular No
HO/ACT/27/2012-13/565 dated 01.11.2012 will remain same.
FINANCIAL AND PERFORMANCE BANK GUARANTEES
Capital Calculation for Off Balance Sheet exposure under Basel II: For Capital calculation
under Basel II, the Off-Balance Sheet exposures are first converted into an On-Balance Sheet
exposure (Credit Equivalent Amount) by multiplying the Off-Balance Sheet exposures with a
percentage value known as Credit Conversion Factor (CCF). Thereafter the appropriate risk weights
are applied to the Credit Equivalent Amount to arrive at Risk Weighted Assets (RWA) and finally the
capital requirement for the same.
The Credit Conversion Factor (CCF) for various types of Off-Balance Sheet exposures varies based
on the risk associated, contractual obligation and potential liability arising out of respective OffBalance Sheet items viz. CCF for Letter of Credit 20%, Performance Bank Guarantee 50%,
Financial Bank Guarantee 100%, Letter of Comfort 100% etc.
Priority Sector Advances

(i) Agriculture (ii) Micro and Small Enterprises (iii) Education (iv) Housing (v) Export Credit (vi) Others
Targets /Sub-targets for Priority sector
(i)
The targets and sub-targets set under priority sector lending for domestic and foreign
banks operating in India are furnished below:
(ii)
Categories
Domestic commercial
banks / Foreign banks with less
Foreign banks with 20 and above than 20 branches
branches
Total
Priority 40 percent of Adjusted Net Bank Credit or 32 percent of ANBC or credit
Sector
credit equivalent amount of Off-Balance equivalent amount of OffSheet Exposure, whichever is higher.
Balance
Sheet
Exposure,
whichever is higher.
Total agriculture
18 percent of ANBC or credit equivalent No specific target. Forms part
amount of Off-Balance Sheet Exposure, of total priority sector target.
Micro & Small (i) Advances to micro and small No specific target. Forms part
Enterprises (MSE) enterprises sector will be reckoned in of total priority sector target.
computing achievement under the overall
priority sector target of 40 percent of
___________________________________________________________________________________
29
ANBC or credit equivalent amount of OffBalance Sheet Exposure, whichever is

higher.
(ii) 40 percent of total advances to micro
and small enterprises sector should go to
Micro (manufacturing) enterprises having
investment in plant and machinery up to
Rs. 5 lakh and micro (service) enterprises
having investment in equipment up to Rs
2 lakh;
(ii) 20 percent of total advances to micro
and small enterprises sector should go to
Micro (manufacturing) enterprises with
investment in plant and machinery
aboveRs.5 lakh and up toRs.25 lakh, and
micro
(service)
enterprises
with
investment in equipment aboveRs.2 lakh
and up toRs.10 lakh
Export Credit
Export credit is not a separate category. No specific target. Forms part
Export credit to eligible activities under of total priority sector target.
agriculture and MSE will be reckoned for
priority sector lending under respective
categories.
Advances
to 10 percent of ANBC or credit equivalent No specific target in the total
Weaker Sections
amount of Off-Balance Sheet Exposure, priority sector target.
For foreign banks with 20 and above branches, priority sector targets and sub-targets have to be
achieved within a maximum period of five years starting from April 1, 2013 and ending on March 31,
2018
Weaker Sections under priority Sector:
Small and marginal farmers;
Artisans, village and cottage industries where individual credit limits do not exceedRs.Rs.50,000;
Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now National Rural Livelihood Mission
(NRLM);
Scheduled Castes and Scheduled Tribes;
Beneficiaries of Differential Rate of Interest (DRI) scheme;
Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY);
Beneficiaries under the Scheme for Rehabilitation of Manual Scavengers (SRMS);
Loans to Self Help Groups;
Loans to distressed farmers indebted to non-institutional lenders;
Loans to distressed persons other than farmers not exceeding RsRs.50,000 per borrower to prepay
their debt to non-institutional lenders;
Loans to individual women beneficiaries upto Rs. 50,000 per borrower;
Loans sanctioned as above to persons from minority communities as may be notified by Government
of India from time to time.
Priority Sector Classification Norms:
___________________________________________________________________________________
30
Category
Norms
Agriculture
( Agriculture and allied activities
Direct & Indirect) Directly to individual farmers, SHG,JLG- No limit
To Partnership, Corporates- upto Rs.2 crore
Small Enterprises All loans granted to Micro & Small Enterprises
( Manufacturing & Service)
(Small & Micro service enterprises shall include small road and water
transport operator, small business, retail credit, professional & self employed
and other service enterprises)
Loans to Khadi & Village Industry Sector
Loans sanctioned by banks to MFIs for on-lending to MSE sector as per the
conditions specified.
Micro Credit
Education Loan
Housing Loan
Credit upto Rs.50,000/ per borrower, either directly or indirectly through

SHG/JLG or to NBFC/MFI for on-lending upto Rs.50,000/- per borrower
Upto Rs.10 lac for study in India
Upto Rs.20 lac for study abroad
*Loans upto Rs.25 lacs to individual for constructing/purchase of dwelling
unit per family in Metropolitan Centres with population above Rs.10 lac. and
Rs.15 lac in other centres.
*Upto Rs.5 lac in urban and metro and Rs.2 lac in rural and semi urban areas
for repair of dwelling unit.
*Upto Rs.5 lac per dwelling unit to any governmental agency for construction
or for slum clearance and rehabilitation of slum dwellers
*Upto Rs. 5 lac per dwelling unit for weaker section & low income group for
loans to housing projects.
*Bank loans to any governmental agency for construction of dwelling units or
for slum clearance and rehabilitation of slum dwellers subject to a ceiling of
10 lakh per dwelling unit.
Export Credit
Others
*The loans sanctioned by banks for housing projects exclusively for the
purpose of construction of houses only to economically weaker sections and
low income groups, the total cost of which do not exceed 10 lakh per
dwelling unit. For the purpose of identifying the economically weaker
sections and low income groups, the family income limit of 1,20,000 per
annum, irrespective of the location, is prescribed
*Bank loans to Housing Finance Companies (HFCs), approved by NHB for
their
refinance,
for
on-lending
for
the
purpose
of
purchase/construction/reconstruction of individual dwelling units or for slum
clearance and rehabilitation of slum dwellers, subject to an aggregate loan
limit of 10 lakh per borrower, provided the all inclusive interest rate charged
to the ultimate borrower is not exceeding lowest lending rate of the lending
bank for housing loans plus two percent per annum.
Export Credit extended by foreign banks with less than 20 branches
Upto Rs. 50,000 per borrower provided directly by banks to individuals and
their SHG/JLG, provided the borrowers household annual income in rural
areas does not exceed Rs.60,000/- and for non-rural areas it should not
exceed Rs. 1,20,000/-.
___________________________________________________________________________________
31
Loans to distressed persons (not included elsewhere) not exceeding

Rs.50,000 per borrower to prepay their debt to non-institutional lenders.
Loans outstanding under loans for general purposes under General Credit
Cards (GCC). If the loans under GCC are sanctioned to Micro and Small
Enterprises, such loans should be classified under respective categories of
Micro and Small Enterprises.
Overdrafts, up to Rs50,000 (per account), granted against 'no-frills' / basic
banking / savings accounts provided the borrowers household annual income
in rural areas does not exceed Rs.60,000/- and for non-rural areas it should
not exceed Rs.1,20,000/-.
Loans sanctioned to State Sponsored Organisations for Scheduled Castes/
Scheduled Tribes for the specific purpose of purchase and supply of inputs to
and/or the marketing of the outputs of the beneficiaries of these
organisations.
Loans sanctioned by banks directly to individuals for setting up off-grid solar
and other off-grid renewable energy solutions for households.
Small & Micro Enterprise:
Micro Enterprise( Enterprise engaged in manufacturing/production or preservation of
Manufacturing)
goods whose investment in plant and machinery ( original cost
excluding land & building) does not exceed Rs.25 lacs
Micro
Enterprise Enterprise engaged in providing/rendering services whose in
(Service)
equipment( original cost excluding land & building) does not exceed
Rs.10 lac
Small
Enterprise Enterprise engaged in manufacturing/production or preservation of
( Manufacturing)
goods whose investment in plant and machinery ( original cost
excluding land & building) does not exceed Rs.5 crores
Small
Enterprise Enterprise engaged in providing/rendering services whose in
( Service)
equipment( original cost excluding land & building) does not exceed Rs.
2 crore.
Small & Micro( Service) enterprise shall include small road & water transport operator, small
business, retail credit, professional & self employed and other service enterprises.
Credit Guarantee Scheme for Micro and Small Enterprises:
The Scheme framed by the Board of Trustees of Credit Guarantee Fund Trust is known as Credit
Guarantee Fund Scheme for Small Industries (CGFSI) which came into force from August 1,2000.
On enactment of MSMED Act-2006 the Trust was renamed as Credit Guarantee Fund Trust for Micro
and Small Enterprises and scheme as Credit Guarantee Scheme for Micro and Small Enterprises.
Eligible Credit facilities: Fund based and/or Non fund based) extended by Member Lending
Institution(s) to a single eligible borrower in the Micro and Small Enterprises sector for credit facility
(i) not exceeding Rs. 50 lakh (Regional Rural Banks/Financial Institutions) and
___________________________________________________________________________________
32
(ii) not exceeding Rs.100 lakh (Scheduled Commercial Banks and select Financial Institutions) by way
of term loan and/or working capital facilities on or after entering into an agreement with the Trust,
without any collateral security and\or third party guarantees
The lending institution has to apply for guarantee cover in respect of credit proposals sanctioned in a
quarter prior to expiry of the following quarter
Provided further that, as on the material date
(i) The dues to the lending institution have not become bad or doubtful of recovery; and / or
(ii) The business or activity of the borrower for which the credit facility was granted has not ceased;
and / or
(iii) The credit facility has not wholly or partly been utilized for adjustment of any debts deemed bad
or doubtful of recovery, without obtaining a prior consent in this regard from the Trust.
Any credit facility which has been sanctioned by the lending institution with interest rate
more than 3% over the Prime Lending Rate (PLR) of the lending institution will not be
eligible for the guarantee cover.
Guarantee Fee and Annual Service fee
One-time guarantee fee at specified rate ((a)currently 1.00% in the case of credit facility upto Rs. 5
Lakh and 1.5% in the case of credit facility above Rs. 5 Lakh (b) 0.75%, in case of credit facilities
upto Rs.50 lakh sanctioned to units in North Eastern Region including State of Sikkim) of the credit
facility sanctioned (comprising term loan and / or working capital facility) shall be paid upfront to the
Trust by the institution availing of the guarantee within 30 days from the date of first disbursement of
credit facility (not applicable for Working capital) or 30 days from the date of Demand Advice
(CGDAN) of guarantee fee whichever is later or such date as specified by the The annual service
fee at specified rate (currently 0.50% in the case of credit facility upto Rs. 5 Lakh and 0.75% in the
case of credit facility above Rs. 5 Lakh) on pro-rata basis for the first and last year and in full
for the intervening years on the credit facility sanctioned (comprising term loan and / or working
capital facility) shall be paid by the lending institution within 60 days ie. on or before May 31, of every
year
Guarntee Cover:
Category
Upto Rs.5 lakh
Micro Enterprises
Women
entrepreneurs/
Units located in North East
Region (incl. Sikkim) other
than credit facility upto
Rs.5 lakh to micro
Maximum extent of Guarantee where credit facility is

Above Rs.5 lakh upto Rs.50 lakh
Above Rs.50 lakh upto Rs.100
lakh
85% of the amount in default 75%
Rs.37.50 lakh plus
subject to a maximum of Rs.4.25 /Rs.37 50% of amount in
lakh
.50
default above Rs.50
lakh
lakh subject to overall
ceiling of Rs.62.50 lakh
80% of the amount in default Rs.40 lakh plus 50% of amount
subject to a maximum of Rs.40 in default above Rs.50 lakh
lakh
subject to overall ceiling of
Rs.65 lakh
___________________________________________________________________________________
33
enterprises
All
other
borrowers
category
of 75% /
Rs.37.50 lakh
Rs.37.50 lakh plus 50% of

amount in default above Rs.50
lakh subject to overall ceiling of
Rs.62.50 lakh
All proposals for sanction of guarantee approvals for credit facilities above Rs. 50 lakh and upto
Rs.100 lakh will have to be rated internally by the MLI and should be of investment grade.
Proposals approved by the MLIs on or after December 8, 2008 will be eligible for the coverage upto
Rs.100 lakh.
The guarantee cover will commence from the date of payment of guarantee fee and shall run through
the agreed tenure of the term credit in respect of term credit / composite credit.
Where working capital alone is extended to the eligible borrower, the guarantee cover shall be for a
period of 5 years or a block of 5 years, or for such period as may be specified by the trust in this
behalf.
Micro Credit:
It is provision of thrift,credit and other financial services and products of very small amount to the
poor in rural,semi-urban and urban areas to enable them to increase their income level and improve
their standard of living.
Self-help Groups(SHGs):
SHGs are registered or unregistered small economically homogeneous and affinity groups of rural
poor,voluntarily coming together for mutual benefits.
SHGs undergo the following stages;
a) Group formation
b) Group Stabilisation
c) Micro Credit Stage
d) Micro Enterprise development Stage
No.of members: 10-20.For irrigation projects:- no ceiling for handicapped persons: 5-20 members
Members should be the persons below poverty line.
Persons marginally above poverty line normally upto 20% can also be included.But they will not
be eligible for subsidy.
One person from from one family in one SHG
One person cannot be member of more than one SHG.
Regular weekly or fortnightly meetings are to be held.
Members have to save regularly out of their earnings.
Saved funds are meant for lending to members to be decided by all the members.
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34
Proper record/book-keeping is essential.

Linkage to bank is established through Savings A/c.
Kalia Committee set up by RBI recommended financing of SHGs.
SHGs can be financed by way of Cash Credit or Overdraft.
Corpus to Loan Ratio may be 1:1 to 1:4
Min. subsidy Rs.5000 & Max. subsidy Rs.10000 being equal to the group corpus.
Additional subsidy of Rs.10000 as 2nd dose may be available to SHG showing promise.
No interest on subsidy.
Subsidy can be adjusted when activity is discontinued or group dissolved or loan becoming bad for
recovery.
Indirect finance to SHGs can be extended through registered NGOs with good track record and
financial management .
NGOs should collect savings of SHGs regularly.
NGOs prepare projections for lending for 1-3 years and provide 25% margin.
Term Loan component is 75% with 100% refinance from NABARD.
BANKING / FINANCIAL UPDATES

KV Kamath named first head of BRICS Bank
Veteran banker KV Kamath has been appointed head of the New Development Bank (earlier
referred to as the BRICS Bank). The Bank, headquartered in Shanghai, was set up by Brazil,
Russia, India, China and South Africa in July last year.
Bank of Baroda Q4 net down 50% on higher provisioning for bad loans
Higher provisions towards bad loans reduced Bank of Barodas net profit by close to half. Net
profit for the three-month period ended March, 2015 was at Rs. 598 crore as compared to
Rs. 1,157 crore in the corresponding quarter last year.
RBI tells banks to appoint internal ombudsman
To ensure undivided attention in resolving customer complaints and to further boost the
quality of customer service, the Reserve Bank of India has advised all public sector banks and
some private sector and foreign banks to appoint an internal ombudsman.
Post Bank to get professionals from pvt sector
The postal department has decided to rope in professionals from the private sector for top
positions at Post Bank of India (PBI), its proposed fully-owned payments bank.
HDFC in World's Top-10 list of Consumer Finance Cos
Mortgage lender HDFC has emerged as the only Indian company among the world's 10
biggest consumer financial services firms, after giants like American Express, Visa and
Mastercard. HDFC is ranked 7th on the list, compiled by business magazine Forbes.
Skipper Narendra Modi wants a cohesive Team India
PRIME MINISTER NARENDRA MODI ON SUNDAY EMPHASISED THAT HIS GOVERNMENT WOULD WORK TOGETHER WITH
STATES AS TEAM INDIA AND URGED CHIEF MINISTERS TO COORDINATE WITH THE CENTRE FOR FASTER ECONOMIC
GROWTH.
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35
PNB net down 62% in Q4

Aided by a huge write-back of tax provisions of Rs. 938 crore, Punjab National Bank (PNB) on
Friday reported a net profit of Rs. 307 crore for the fourth quarter ended March 31, 2015.
However, the public sector banks bottomline performance was down 62% over the net
profit of Rs. 806 crore recorded in the same quarter last year.
State Bank of Travancore net jumps four-fold in Q4
State Bank of Travancore reported a 295% increase in net profit to Rs. 191.96 crore in the
fourth quarter of 2014-15 (FY15) from Rs. 48.57 crore in the year-ago period on the back of
a pervasive drive to cut costs, grow non-interest income, and manage assets better.
Forex reserves cross $350-billion mark
Indias foreign exchange reserves grew $7.26 billion for the week ended May 1, the sharpest
rise since September 2007, according to the latest data released by the Reserve Bank of
India. Total reserves were at an all-time high of $352 billion for the week ended May 1, 2015.
Naveen for MUDRA Bank headquarters in Odisha
Chief Minister Naveen Patnaik has proposed the establishment of headquarters of MUDRA
(Micro Units Development and Refinance Agency) Bank in Bhubaneswar.
Banks' gross NPA ratio rises to 4.45% from 4.1% in 1 year: RBI
The banking sector's asset quality woes further worsened in the last one year, with gross
non-performing asset (GNPA) ratio inching to 4.45% as on March 15 this year, as compared
to 4.1% in March 2014, according to the latest data released by the Reserve Bank of India.
SBI Set to Auction Loot Outlets
SBI is set to auction the outlets of Loot (India), the retail store that gained a high profile a
few years ago for selling multi-branded apparel at a 25-50% discount. The company has
stopped paying dues to the country's largest bank.
Japan Identifies 11 Sites to Set Up Industrial Townships
Shinzo Abe's government is firming up its promise to help Prime Minister Narendra Modi build
India's infrastructure and promote domestic manufacturing as it doubles its investment in the
country. Japan has identified 11 sites to set up industrial townships in India, which would
serve as hubs for investments into the country . These include Tumkur in Karnataka, Ghilot in
Rajasthan, Mandal in Gujarat and Supa in Maharashtra.
Aditya Birla Group merges apparels business to form 5,290-cr company
Aditya Birla Group (ABG) has consolidated its fashion retail business under the listed entity,
Pantaloons Fashion and Retail Post, which has been rechristened as Aditya Birla Fashion and
Retail. As part of the reorganisation, Aditya Birla Nuvo will spin off its wholly-owned
subsidiary, Madura Garments Lifestyle Retail Company, to merge it with the new entity, which
will have a combined turnover of 5,290 crore.
HDFC BANK HIKES SERVICE FEES STEEPLY
INDIA'S SECOND LARGEST PRIVATE SECTOR LENDER HDFC BANK HAS INCREASED SERVICE CHARGES BY AS MUCH AS
43-50% ON SELECT PRODUCTS LIKE DEBIT CARDS, IMMEDIATE PAYMENT SERVICE (IMPS) -A REAL-TIME MONEY
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36
TRANSFER MECHANISM -AS THE BANK AIMS TO REALIGN ITS FEE STRUCTURE ON PAR WITH RIVALS. CUSTOMERS WILL
NOW HAVE TO PAY RS. 750 FOR AN HDFC BANK PLATINUM DEBIT CARD AGAINST THE CURRENT ANNUAL FEE.
UBI, TWO OTHER PSU LENDERS SEEK EXEMPTION FROM DIVIDEND PAYMENT
THREE PUBLIC SECTOR BANKS -BANK OF INDIA, UNION BANK OF INDIA AND ALLAHABAD BANK -HAVE SOUGHT
EXEMPTION FROM PAYMENT OF DIVIDEND CITING HIGHER PROVISIONING FOR NON-PERFORMING ASSETS (NPAS).
Credit growth fell to 8.6% in FY15
Reflecting an economic slowdown in the country, the pace of growth in bank credit slowed
sharply to 8.6 per cent in 2014-15 from 14.3 per cent in 2013-14.
Revised priority sector norms to make it easy for banks to meet targets, but may
dent their earnings
Commercial banks would be better positioned to achieve the mandated priority sector lending
targets with the Reserve Bank of India (RBI) including many more sector such as agriculturewarehousing, social infrastructure and renewable energy in the ambit, but it may dent their
earnings. On Thursday, the RBI revised the priority sector lending (PSL) norms - which
mandate banks to lend atleast 40% of the total loans to farmers, small businessmen,
students, exporters and small ticket home loan buyer
Prepare small banks for merger with large PSBs: Finance Ministry panel
Small public sector banks, with assets of less than Rs. 2-lakh crore, should be readied for
merger with five large PSBs, a Finance Ministry-appointed panel has recommended. PSBs
with less than Rs. 2 lakh crore assets (loans plus investments) include Andhra Bank, Bank of
Maharashtra, Dena Bank, Punjab & Sind Bank, Vijaya Bank, and United Bank of India
Kingfisher House battle: SBI asks Arun Jaitley to step in
When a consortium of lenders to Kingfisher Airlines led by State Bank of India took
possession of the Rs 100-crore Kingfisher House in Mumbais Vile Parle, it thought at least a
part of its dues could be recovered. Until the income-tax (I-T) department issued a notice
forbidding the auctioning of the building, claiming first lien. SBI has now written to the
finance ministry seeking its intervention, sources aware of the development told FE.
Add
'third
gender'
column
in
all
forms:
RBI
to
banks
In a move aimed at helping transgender persons open bank accounts and avail related services, the
Reserve Bank today directed banks to include a separate column 'third gender' in all their forms and
applications.
Govt retains interest rate for General Provident Fund at 8.7% for current fiscal
THE GOVERNMENT HAS RETAINED THE RATE OF INTEREST FOR GENERAL PROVIDENT FUND (GPF) AND OTHER
RELATED SCHEMES AT 8.7 PER CENT FOR THE CURRENT FISCAL.
THE 8.7 PER CENT INTEREST WILL APPLY ON PROVIDENT FUNDS OF CENTRAL GOVERNMENT EMPLOYEES, RAILWAYS
AND DEFENCE FORCES, ACCORDING TO THE NOTIFICATION ISSUED BY THE FINANCE MINISTRY.
THE RATE OF INTEREST WILL BE EFFECTIVE FROM APRIL 1, 2015, IT ADDED.
___________________________________________________________________________________
37

.
Wholesale inflation hits record low, triggers rate-cut demand
Contracting for the fifth straight month, wholesale price index (WPI)-based inflation hit a
record low of -2.33% in March, prompting industry to demand a policy rate cut by the
Reserve Bank of India to spur growth. WPI inflation for February was at -2.06%. Last March,
it was at 6%.
IndusInd Bank raises balance slab for 6% interest on savings account
Customers of IndusInd Bank would get different rates of interest on their deposits in savings
accounts from May 1. For daily balance up to Rs 1 lakh, the interest rate would be four per
cent annually. The interest would be five per cent per annum for balance more than Rs 1 lakh
and up to Rs 10 lakh. For balance above Rs 10 lakh, an interest rate of six per cent per
annum would be offered.
Moodys positive about India; Fitch reaffirms stable outlook
Narendra Modis Government got a booster from global rating agencies on Thursday. While
Moodys revised its outlook for India to positive from stable, Fitch reaffirmed its stable
outlook. A broad-based structural reforms agenda after a couple of years of limited progress
was cited as the key reason.
Moody's red flags banking sector; cites asset quality concerns
Although Moodys Investor Service changed Indias outlook to positive from stable on
Thursday, the rating agency also highlighted concerns regarding Indias banking sectors
asset quality.
Moodys upgrades outlook for 12 PSUs to positive
Global rating agency Moodys Investors Service on Thursday upgraded its outlook for 12
government-owned financial institutions to positive from stable in line with its revision of
Indias sovereign credit rating.
The outlook for Bank of Baroda, Bank of India, Canara Bank, Export Import Bank of India,
Oriental Bank of Commerce, Indian Railway Financial Corp. Ltd, Power Finance Corp,
Rural Electrification Corp. Ltd, Punjab National Bank, State Bank of India, Syndicate Bank and
Union Bank of India was revised to positive.
Mudra Bill to be in Parliament in a year
Prime Minister Narendra Modi on Wednesday launched the Micro Units Development and
Refinance Agency (Mudra) aimed at providing a collateral-free soft loans of up to Rs 10 lakh
to small businesses
Deposit growth at 51-year low
The growth of deposits with banks hit a 51-year low of 11.42% last year, according to data
from the Reserve Bank of India, report Saikat Neogi and Bhavik Nair. The last time deposits
grew at a pace below this was in 1962-63, when the increase was 6.5%.
Central Bank tops list with highest NPAs among PSU banks
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38

.
Central Bank of India has topped the list of public sector banks with the largest bad loans,
including restructured assets as a percentage of total advances. According to the data
provided by the Reserve Bank of India to the finance ministry, Central Bank of Indias 21.5%
assets are either bad or have been restructured to save these turning into non-performing
assets .
Sinha or Shourie? PM Narendra Modi to decide first president of BRICS bank
Prime Minister Narendra Modi will likely approve in a couple of weeks who, in a list topped by
former finance minister Yashwant Sinha and former disinvestment minister Arun Shourie,
would head the New Development Bank (NDB) being set up by the five BRICS nations to
channelise funds for infrastructure and sustainable development needs of emerging
economies.
FinMin promises simpler IT forms
The Finance Ministry will seek to simplify the latest income tax returns without compromising
on the effort to curb black money and tax avoidance. This was the message Finance Minister
Arun Jaitley and senior Revenue Department officials conveyed to industry representatives
and tax professionals at a meeting convened to review income tax forms, here, on Friday.
Government hunting non-executive chairmen for public sector banks
Government is in the process of finding non-executive chairmen for public sector banks and it has
already appointed managing directors and chief executive officers in five public sector banks.
Kingfisher House battle: SBI asks Arun Jaitley to step in

When a consortium of lenders to Kingfisher Airlines led by State Bank of India took
possession of the Rs 100-crore Kingfisher House in Mumbais Vile Parle, it thought at least a
part of its dues could be recovered. Until the income-tax (I-T) department issued a notice
forbidding the auctioning of the building, claiming first lien. SBI has now written to the
finance ministry seeking its intervention, sources aware of the development told FE.
RBI Clarifies Rules for Small Bank Applicants
The Reserve Bank of India on Thursday clarified that business houses with assets above Rs.
1,000 crore with finance companies will not be eligible to apply for a small bank license. The
regulator also said that existing non-banking finance companies have to fold their operations
into the small bank.
MODI WANTS STATE-RUN BANKS TO WORK ON A SINGLE CSR PROJECT
PRIME MINISTER NARENDRA MODI HAS PROPOSED TO THE CHIEFS OF PUBLIC SECTOR BANKS TO COLLECTIVELY
UNDERTAKE A SINGLE PROJECT UNDER A CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVE INSTEAD OF EACH
BANK SUPPORTING DIFFERENT PROJECTS ACROSS THE COUNTRY. THIS SUGGESTION COMES AT A TIME WHEN THE
COUNTRYS LARGEST BANK STATE BANK OF INDIA HAS PLANNED TO SET UP SBI FOUNDATION THAT AIMS TO POOL IN
RESOURCES OF ITS ASSOCIATES AND SUBSIDIARIES TO PROMOTE SOCIAL CAUSES.
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39
ICICI Bank customers can now transfer funds via Twitter

ICICI Bank, Indias largest private bank, has launched its banking services on Twitter,
enabling customers to transfer money through the micro-blogging website. Customers can
send up to Rs.5,000 per transaction with a limit of Rs. 10,000 a day. Online NEFT charges will
apply.
Kotak Mahindra Bank brings banking services on social media platforms
In an attempt to connect to the net-savvy and socially connected customers, the private
sector lender Kotak Mahindra Bank on Monday announced the launch of Jifi Saver, a savings
bank account which can be managed via social media platforms such as Twitter and
Facebook
Only 28% of Jan Dhan Yojana accounts active
THOUGH THE PRADHAN MANTRI JAN DHAN YOJANA HAS SUCCESSFULLY EXCEEDED ITS FINANCIAL INCLUSION TARGET
BY OPENING 115 MILLION BANK ACCOUNTS, MOST OF THESE ARE ZERO-BALANCE. ACCORDING TO DATA RELEASED
BY THE MINISTRY, ONLY 28 PER CENT OF THE ACCOUNTS OPENED UNDER THE SCHEME ARE ACTIVE, WITH ABOUT RS
9,000 CRORE DEPOSITED IN THESE.
3-year Bank FDs May Get Tax Exemption
Govt may consider banks' demand for bringing FDs with three-year maturity on a
level-playing field with MFs and tax-free bonds
The government may consider the demand of banks to make fixed deposits for three years
and more tax-free instead of the five-year lock-in period at present, providing these lenders a
level-playing field with mutual funds and tax-free bonds that have been weaning away a
large chunk of investors.
Govt Pushes Use of RuPay Cards With Cashback Offer
The government, which is striving to take banking to every household in the country and
reduce the number of cash transactions, is aggressively promoting the use of state-backed
RuPay cards by offering 1% cashback, in a direct challenge to card companies such as Visa
and MasterCard.
TELENOR, VODA TO SEEK PAYMENT BANKING PERMIT
NORWAYS TELENOR AND BRITISH TELECOM MAJOR VODAFONE ARE SET TO APPLY FOR PAYMENT BANKING PERMITS
IN INDIA, PEOPLE WITH KNOWLEDGE OF THE MATTER SAYING THAT THEY ARE IN DISCUSSIONS FOR ROPING IN A
LOCAL PARTNER EACH, SINCE CURRENT GUIDELINES DONT ALLOW FOREIGN ENTITIES TO FULLY OWN A PAYMENT
BANK.
Oriental Bank Q3 net slumps 91.28%

The Oriental Bank of Commerce (OBC) on Thursday reported a 91.28 per cent decline in net
profit for the quarter ended December 31, 2014 at Rs. 19.58 crore (against Rs. 224.30 crore
in the year-ago quarter). Total income for the quarter rose 7.8 per cent to Rs. 5,458.79 crore
( Rs. 5,063.98 crore). Briefing the media on the third quarter financial performance of the
bank, Animesh Chauhan, Managing Director and Chief Executive Officer, said a sharp
increase in provisions due to worsening asset quality weighed heavily on the banks
bottomline.
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40
A Gandhian way to recover bad loans

Each employee of Andhra Bank now has a new mission: to recover bad loans from at least 30
customers by using Gandhian methods of persuasion. The bank is undergoing challenging
times with its gross non-performing assets at 5.99%. It is making all-out efforts to stage a
comeback and employees are also going the extra mile to help in this regard.
Mahila Banks business should cross Rs. 1,000 cr this fiscal: CMD
Bhartiya Mahila Bank, the state-owned all-women bank, hopes to close the current financial
year with over Rs. 1,000 crore business. Our primary target is to expand our footprint across
the country, including tier-III towns and unbanked villages. We will close the year with 80
branches, said Usha Ananthasubramanian, CMD of the bank.
SEBI planning to relax FPO rules -Minimum free float market capitalization for public companies
could be lowered from Rs3000 cr to Rs2000 cr.
In September this year, United Bank of India declared the now-grounded Kingfisher Airlines and its
Chairman Vijay Mallya as wilful defaulters for non-payment of dues of Rs 400 crore.
ICICI Bank launches new credit card with American Express - ICICI Bank has introduced a
new credit card in association with American Express named ICICI Bank Coral American Express
Credit Card.
Central Bank employees union files PIL seeking direction to recover bad loans- Burgeoning
bad debts in public sector banks has prompted an employees union to file a public interest litigation
(PIL) seeking the Bombay High Courts interference and directions for effecting loan recoveries.
ARC gives India positive rating with stable outlook - Here is some good news for the NDA
Government. The Europe-based ARC Ratings SA (ARC) has assigned India BBB+ sovereign rating
which is a shade better than what has been assigned by the big three global credit ratings agencies.
NPCI links 10 cr Aadhaar cards to bank accounts - The National Payments Corporation of India
(NPCI)-managed National Financial Mapper has crossed the milestone of getting 10 crore bank
accounts seeded with Aadhaar numbers. This allows the Government department/agencies to reach
out to beneficiaries of direct benefit transfer schemes.
RBI extends 5:25 scheme to some existing infra projects - The RBI on Monday extended its
flexible refinancing and repayment option for long term infra projects to existing ones where the total
exposure of lenders is more than Rs.500 crore.
Banks hire environmental, social specialists to reduce NPA risks - Go green appears to be
the new mantra for banks, which are struggling to stem asset-quality risks amid an uncertain
macroeconomic environment.
In a first, SEBI orders imprisonment for not paying penalties - For the first time ever, capital
market regulator Securities and Exchange Board of India (SEBI) has imposed a term of civil
imprisonment for a violation. Vinod Hingorani, Non-Executive Chairman of Adam Comsof and Kolar
Biotech, was ordered to undergo six months civil imprisonment for failure to pay penalties of around
Rs. 1.64 crore (including interest) levied under three SEBI notices from last July demanding payment.
SpiceJet: loans will be given only if promoters step forward, say banks - The troubled lowcost airline SpiceJet will find the going tough as risk-averse banks are unlikely to provide loans.
Though the Government has urged banks to rescue the Chennai-based airline with Rs. 600 crore
working capital loans, banks have so far not shown willingness to provide any loans
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41
ICICI Bank out of Russia, trims foreign operations- ICICI Bank, one of the largest private
lenders in the country, is calibrating its global ambitions selling its subsidiary in Russia, repatriating
capital from its UK (United Kingdom) and Canada arms, and shrinking its international balance sheet.
Basmati exports set to decline - This year, earnings from the export of basmati rice are expected
to fall 15-20 per cent, owing to Iran banning the import of the commodity from India.
Paytm Set to Apply for a Payment Banking Permit; To Enter Singapore - Paytm, a fastgrowing mobile wallet company, is set to apply for a payment banking permit, becoming the first
entity to formally announce interest in launching a service that is part of the RBI's financial inclusion
initiative. The company also plans to expand services overseas, starting with Singapore
Mutual Funds Latch on to Make-in-India Theme - The Narendra Modi government's Make in
India' campaign has inspired domestic mutual funds to launch schemes that would benefit from the
proposed initiative. At least three mutual funds have launched or are coming out with schemes that
will invest in companies in the manufacturing sector, which will be the proxy for the theme.
EPFO to Support Housing Scheme, Invest in Equities - The Employees' Provident Fund
Organisation (EPFO) will on Friday consider a proposal to set aside a part of its corpus for investment
in housing finance companies to help with the government's affordable housing initiative.
PF trustees retain 8.75% interest rate for 2014-15 - The trustees of retirement funds
belonging to about eight crore depositors on Friday decided to retain the interest rate at 8.75 per cent
for 2014-15. In January this year, the trustees had raised the interest rate for 2013-14 to 8.75 per
cent, from 8.5 per cent in 2012-13.
EPFO eases norms on deposits in govt banks - The Employees Provident Fund Organisation's
trustees, on Friday, relaxed the norms for parking funds in bank deposits. And, referred the issue of
investing a portion of its funds into the equity market and housing sector to a committee.
Consumers Open to Payment Banks Idea - Payment banks, expected to promote financial
inclusion, could prove to be a big hit. A Nielsen survey shows an overwhelming majority of consumers
were willing to open such accounts. Payment banks don't give loans but accept retail deposits, utility
payments and funds transfer. RBI has allowed mobile firms and supermarket chains to set up
payment banks.
Lenders Likely to Rejig Corporate Power - In what could be a first, banks are preparing to
change the management structure of Corporate Power, an Abhijeet Group company, and issue a legal
notice to recover dues worth Rs. 3,100 crore. Bankers led by State Bank of India (SBI) have taken a
two pronged approach to recover their dues -while they plan to issue a legal notice to seize their
assets, they have also called for bids from corporates to take over the management control of the
company that operates 1,080MW power plant in Jharkhand, said two senior bankers who declined to
be named.
HDFC offers fixed-rate home loans for 10 years - Housing Development Finance Corporation
(HDFC) has launched fixed-rate home loans for 10 years, for loans sanctioned between December 22
and January 2015. The first disbursement should be on or before March 21, 2015.
RBI's upper age limit of 70 for private bank CEOs
Oriental Bank of Commerce - Suresh N Patel, ED, Oriental Bank of Commerce presented Floral
Bouquet to Padma Bhushan Dr.Yamini Krishnamurti, an eminient Indian Dancer of Bharatnatyam and
Kuchipudi, on the occasion of Delhi Economics Conclave 2014 organized in New Delhi by Department
of Economic Affairs, ministry of Finance, Govt. of India
Reforms push: Cabinet clears land acquisition ordinance - The Centre today recommended an
ordinance to make significant changes to the Land Acquisition Act so as to fast track projects in key
sectors such as power, roads, defense and housing.
Jan Dhan may be extended to insurance, pension sectors - Prime Ministers Jan Dhan Yojna
(PMJDY) is likely to be replicated in the insurance and pension sector to extend the financial services
___________________________________________________________________________________
42
to the hinterland. Given the low levels of penetration of insurance and pension, there is a case for
subsequently extending or replicating a project on the lines of PMJDY, to include the provision of
insurance and pension services for the common man, RBI said.
Now, a Gyan Sangam to Help Put Banking Back on Track -The top echelons of Indian banking will
converge early in the New Year in a Gyan Sangam or RsConfluence of Knowledge' at the National
Institute of Bank Management in Pune to hammer out a strategy to revive the ailing state-owned
banking sector, which is bogged down by a mountain of bad debt, political interference and lack of
consolidation.
Governance reform: Centre splits Chairman, MD post in state-run banks - In a bid to
improve governance, the Centre has separated the posts of Chairman and Managing Director in
nationalised banks. It has also appointed Managing Directors for four banks, and they will also be
designated as Chief Executive Officer. The four new MDs and CEOs are P Srinivas (United Bank of
India), Animesh Chauhan (Oriental Bank of Commerce), R Koteeswaran (Indian Overseas Bank) and
Kishore Kumar Sansi (Vijaya Bank).
Splitting of CMDs post in PSBs Rings in Management Reforms - The Centre has kick-started
management reforms of public sector banks, splitting the post of Chairman & managing Director-cumCEO in appointments in four banks and indicating that it will widen its search for heads of other banks
to possibly include candidates from the private sector.
RBI Clarifies Rules for Small Bank Applicants - The Reserve Bank of India on Thursday clarified
that business houses with assets above Rs. 1,000 crore with finance companies will not be eligible to
apply for a small bank license. The regulator also said that existing non-banking finance companies
have to fold their operations into the small bank.
CONSORTIUM OF 17 BANKS FILES CONTEMPT APPLICATION AGAINST MALLYA -A CONTEMPT APPLICATION
WAS FILED BY A CONSORTIUM OF 17 BANKS IN THE KARNATAKA HIGH COURT ON TUESDAY AGAINST LIQUOR BARON
VIJAY MALLYA AND OTHERS FOR ALLEGEDLY VIOLATING AN UNDERTAKING GIVEN TO THE DRT THAT THEY WOULD
NOT ALIENATE UNENCUMBERED ASSETS NOR DEAL WITH THEM.
Fiscal Burden from Pension Bill Could Rise to 4.1% of GDP by 2030 -The government's fiscal
burden in providing a safety net to the elderly could rise to as much as 4.1% of the GDP by 2030
from 2.2% at present, a report by global analytical company Crisil has said. Currently, the central
government spends 3-3.4% of GDP on education and just over 1% of GDP on medical and public
health, water supply and sanitation.
Now, tap and pay debit, credit cards from ICICI Bank -ICICI Bank has launched Indias first
contactless or tap and pay facility on debit and credit cards to enable electronic payments with a
mere tap. These cards will enable electronic payments by just tapping or waving the cards near the
merchant terminal in lieu of dipping or swiping them.
Shareholders approve ING Vysya, Kotak merger - Shareholders of private sector ING Vysya
Bank and Kotak Mahindra Bank Ltd have accorded sanction to the merger of the former with the latter
at their respective Extraordinary General Meetings (EGM) held on Wednesday, the banks said.
Jan Dhan Yojana to Get Some Cosmic Help, Via VSAT Tech - The government is eyeing satellite
connectivity to ensure the Pradhan Mantri Jan-Dhan Yojana (PMJDY) , aimed at widening financial
inclusion, moves to the next phase after reaching the critical 10 crore bank accounts milestone.
MODI TRANSFORMS VIBRANT GUJARAT INTO VIBRANT INDIA - PRIME MINISTER NARENDRA MODI SAID
INDIA IS GETTING READY TO TAKE A QUANTUM LEAP, ELEVATING THE VIBRANT GUJARAT SUMMIT HE FOUNDED AS
CHIEF MINISTER IN 2003 INTO A PLATFORM TO HARD SELL INDIA AS THE NEXT BIG OPPORTUNITY TO STATESMEN
SUCH AS US SECRETARY OF STATE JOHN KERRY AND UN SECRETARY-GENERAL BAN KI-MOON, AND INDUSTRY
BOSSES FROM ACROSS THE GLOBE.
OPENWORLD MONEY TO GET ON TO MOBILE PLATFORM IN MARCH -FINANCIAL SERVICES START-UP
OPENWORLD MONEY, WHICH IS ROLLING OUT ITS DIGITALLY INTEGRATED FINANCIAL MARKETPLACE IN THE NEXT
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43
FEW DAYS, WILL EXPAND ITS SERVICES TO THE MOBILE PLATFORM BY MARCH. THE COMPANY WILL INITIALLY OFFER
SOLUTIONS IN THE MUTUAL FUNDS SPACE, FOLLOWED BY INSURANCE AND BANKING.
PRIVATE LENDERS' CONTRIBUTION TO JAN DHAN ONLY 3% -THE CONTRIBUTION OF PRIVATE SECTOR BANKS
TO OPENING ACCOUNTS UNDER THE PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY) HAS BEEN DISMAL.
AMUL LAUNCHES 'MILK CARD' IN COLLABORATION WITH SBI - AMUL IN COLLABORATION WITH SBI
LAUNCHED AMUL MILK CARD, A PREPAID SMART CARD, AT MOTHER DAIRY IN GANDHINAGAR ON MONDAY. THE
CARD CAN BE USED TO PURCHASE PRODUCTS FROM AMUL PARLOURS.
MAHILA BANK LOOKS TO DOUBLE LOAN BOOK - BHARATIYA MAHILA BANK IS TARGETING A LOAN BOOK OF
RS.800 CRORE AND DEPOSITS WORTH RS.1,000 CRORE FOR FISCAL YEAR ENDING 2014-15. THE BANK, LAUNCHED
BY THE GOVERNMENT ABOUT A YEAR AGO TO SUPPORT WOMEN ENTREPRENEURS, IS ALSO PLANNING TO OPEN 40
MORE BRANCHES WITHIN THE NEXT THREE MONTHS.
RAJIV GANDHI EQUITY SAVINGS SCHEME

RGESS is a tax saving scheme (announced in the union budget 2012-13) is exclusively for the first
time retail individual investors in securities market.
Investors : The scheme is open for all New Retail Investors who have gross total income less than
or equal to Rs. 12 lakhs. A non-resident India is not eligible for investment in RGESS.
Procedure : The new retail investor will open demat account and eligible securities, brought theafter
will be automatically subject to lock-in upto a value of Rs.50000/Investment options : i) Listed equity shares a) The top 100 stocks at NSE and BSE
i.e.CNX100/BSE-100. b) Stocks of PSUs categorized by Govt. as Maharatna, Navaratna and Miniratna.
c) Combinations of stocks in (a) and /or (b) which are listed and traded on a stock exchange and
settled through a depository system. d) Follow-on Public Offers of (a) and (b). e) New Fund Offers
(NFOs) of (c) above.
ii) United equity shares : IPOs of PSUs which are scheduled to get listed in the relevant financial
year and where the govt. holding is at least 51% and whiose annual turnover is not less than Rs.4000
cr for each of the immediate past three years.
Tax Deduction : Tax deduction u/s 80CCG on 50% of the amount invested (for Rs.50000/-, the
amount eligible for tax deduction will be Rs.25000/-). This deduction is over and above Rs.1 lakh limit
specified under section 80C. Dividend is tax free
SOME IMPORTANT INTERVIEW QUESTIONS

ABCD Analysis, (Branch categorization in different parameter as per the following
performance)
A. Budget Achieved
B. 80% & above of the Budget Achieved
C+ 50% & above of the Budget Achieved
C. Above March figure (Last F.Y.)
D. Below March figure (Last F.Y.)
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44
Definition of 'Balance Sheet'

A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a
specific point in time. These three balance sheet segments give investors an idea as to what the
company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
DIFFERENCE BETWEEN PROFIT AND LOSS ACCOUNT AND BALANCE SHEET
P&L gives you the list of Income and Expenses during a particular period, Whereas Balance
sheet shows you the Financial position of an organization in a specific point of time (date).
What is the difference between current assets and current liability
In accounting, a current asset is an asset which can either be converted to cash or used to pay
current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term
investments, accounts receivable, inventory and the portion of prepaid liabilities which will be paid
within a year.[1]
The current ratio is calculated by dividing total current assets by total current liabilities. It is frequently
used as an indicator of a company's liquidity, its ability to meet short-term obligations.
In accounting, current liabilities are often understood as all liabilities of the business that are to be
settled in cash within the fiscal year or the operating cycle of a given firm
WHY CAPITAL IS LISTED UNDER LIABILITY OF BALANCE SHEET ?
The confusion regarding owners funds being shown as liability will be automatically vanish if
you treat a business as a en entity separate from its owners. A business requires fund for
fixed assets and working capital. These funds come from two sources, the owners funds and
borrowed funds. Both these are sources of funds that the business has received. Therefore
both these are therefore coming under liability side, which is also descried as sources of
funds.
What Are The Benefits Of Registering A Partnership Firm?
ACCORDING TO INDIAN PARTNERSHIP ACT 1932, REGISTRATION OF PARTNERSHIP IS NOT COMPULSORY AS IN THE
CASE OF COMPANY. HOWEVER, REGISTRATION BECOMES COMPULSORY AS UNREGISTERED PARTNERSHIP FIRM
ATTRACTS CERTAIN LIMITATIONS. REGISTRATION OF PARTNERSHIP FIRM CAN BE DONE AT ANY TIME.
___________________________________________________________________________________
45
EFFECTS OF NON-REGISTRATION:-
1. An unregistered firm cannot enforce its rights against the third parties.
2. The partners of an unregistered firm cannot sue its fellow partners or the firm for the
enforcement of their rights.
3. Partners of the unregistered firm cannot be sued by the firm for exercising its claims.
4. Un registration of a firm does not affect the rights of the third party to sue the firm for the
recovery
of
dues.
5. Adjustment regarding the amount receivable or payable cannot be made.
Non-Effects of Non-Registration:-An unregistered firm can file a suit for not exceeding
Rs.100.
What is paripassu charge?
paripassu charge gives lenders a right to the property on which a charge iscreated in proportion
to the amount lent to the debtor. Let us assume two banksX and Y have lent to a company with the
outstanding at Rs 70 lakh and Rs 30lakh respectively and have paripassu charge over the
assets hypothecated. Incase of liquidation of that company, the lenders X and Y will share the proceeds
from liquidation in proportion to the outstanding loan amount, that is, 70:30
COMPANY
INCORPORATING A COMPANY - APPROVAL OF NAME
The first step in the formation of a company is the approval of the name by the Registrar of
Companies (ROC) in the State/Union Territory in which the company will maintain its Registered
Office. This approval is provided subject to certain conditions: for instance, there should not be an
existing company by the same name. Further, the last words in the name are required to be "Private
Ltd." in the case of a private company and "Limited" in the case of a Public Company. The application
should mention at least four suitable names of the proposed company, in order of preference. In the
case of a private limited company, the name of the company should end with the words "Private
Limited" as the last words. In case of a public limited company, the name of the company should end
with the word "Limited" as the last word. The ROC generally informs the applicant within seven days
from the date of submission of the application, whether or not any of the names applied for is
available. Once a name is approved, it is valid for a period of six months, within which time
Memorandum of Association and Articles of Association together with miscellaneous documents
should be filed. If one is unable to do so, an application may be made for renewal of name by paying
additional fees. After obtaining the name approval, it normally takes approximately two to three
weeks to incorporate a company depending on where the company is registered
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46
MEMORANDUM AND ARTICLES

The Memorandum of Association and Articles of Association are the most important documents to be
submitted to the ROC for the purpose of incorporation of a company. The Memorandum of
Association is a document that sets out the constitution of the company. It contains, amongst others,
the objectives and the scope of activity of the company besides also defining the relationship of the
company with the outside world.
The Articles of Association contain the rules and regulations of the company for the management of
its internal affairs. While the Memorandum specifies the objectives and purposes for which the
Company has been formed, the Articles lay down the rules and regulations for achieving those
objectives and purposes.
The ROC will give the certificate of incorporation after the required documents are presented along
with the requisite registration fee, which is scaled according to the share capital of the company, as
stated in its Memorandum. A private company can commence business on receipt of its certificate of
incorporation.
A public company has the option of inviting the public for subscription to its share capital. Accordingly,
the company has to issue a prospectus, which provides information about the company to potential
investors. The Companies Act specifies the information to be contained in the prospectus.
The prospectus has to be filed with the ROC before it can be issued to the public. In case the
company decides not to approach the public for the necessary capital and obtains it privately, it can
file
a
"Statement
in
Lieu
of
Prospectus"
with
the
ROC.
On fulfillment of these requirements, the ROC issues a Certificate of Commencement of Business to
the public company. The company can commence business immediately after it receives this
certificate.
Certificate of Incorporation
After the duly stamped Memorandum of Association and Articles of Association, documents and forms
are filed and the filing fees are paid, the ROC scrutinizes the documents and, if necessary, instructs
the authorised person to make necessary corrections. Thereafter, a Certificate of Incorporation is
issued by the ROC, from which date the company comes in to existence. It takes one to two weeks
from the date of filing Memorandum of Association and Articles of Association to receive a Certificate
of Incorporation. Although a private company can commence business immediately after receiving the
certificate of incorporation, a public company cannot do so until it obtains a Certificate of
Commencement of Business from the ROC.
Distinction Between A Public Company And a Private Company

___________________________________________________________________________________
47

.
Following are the main points of difference between a Public Company and a Private
Company :1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must
have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a
minimum
paid-up
capital
of
Rs.
5,00,000.
2. Minimum number of members : Minimum number of members required to form a
private company is 2, whereas a Public Company requires at least 7 members.
3. Maximum number of members : Maximum number of members in a Private Company
is restricted to 50, there is no restriction of maximum number of members in a Public
Company.
4. Transferability of shares : There is complete restriction on the transferability of the
shares of a Private Company through its Articles of Association , whereas there is no
restriction
on
the
transferability
of
the
shares
of
a
Public
company
5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for
subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public
Company is free to invite public for subscription i.e., a Public Company can issue a
Prospectus.
6. Number of Directors : A Private Company may have 2 directors to manage the affairs of
the company, whereas a Public Company must have atleast 3 directors
7. Commencement of Business : A Private Company can commence its business
immediately after its incorporation, whereas a Private Company cannot start its business until
a Certificate to commencement of business is issued to it.
What is the SARFAESI Act?
The Securitization and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002, allows banks and financial institutions to auction properties (residential
and commercial) when borrowers fail to repay their loans. It enables banks to reduce their
non-performing assets ( NPAs) by adopting measures for recovery or reconstruction.
Relation between Inflation and Bank interest Rates
Now a days, you might have heard lot of these terms and usage on inflation and the bank interest
rates. We are trying to make it simple for you to understand the relation between inflation and bank
interest
rates
in
India.
Bank interest rate depends on many other factors, out of that the major one is inflation. Whenever
you see an increase on inflation, there will be an increase of interest rate also.
What is Inflation?
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48
Inflation is defined as an increase in the price of bunch of Goods and services that projects the Indian
economy. An increase in inflation figures occurs when there is an increase in the average level of
prices in Goods and services. Inflation happens when there are less Goods and more buyers, this will
result in increase in the price of Goods, since there is more demand and less supply of the goods.
What is a Repo Rate?

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is
the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help
banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI
becomes more expensive.
What is a Reverse Repo Rate? How will it affect the Bank Loan interest rates
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks
are always happy to lend money to RBI since their money are in safe hands with a good interest. An
increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive
interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate our
banks adjust their lending or investment rates for common man.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions. The bank rate
signals the central banks long-term outlook on interest rates. If the bank rate moves up, long-term
interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower rate
and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate , the interest
that a bank pays for borrowing money (banks borrow money either from each other or from the RBI)
increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund
requirement. Since banks need funds on a daily basis, they lend to and borrow from other
banks according to their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to
keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is
totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation
by tying their hands in lending money
SLR
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49
BESIDES THE CRR, BANKS ARE REQUIRED TO INVEST A PORTION OF THEIR DEPOSITS IN GOVERNMENT SECURITIES AS
A PART OF THEIR STATUTORY LIQUIDITY RATIO (SLR) REQUIREMENTS. WHAT SLR DOES IS AGAIN RESTRICT THE
BANKS LEVERAGE IN PUMPING MORE MONEY INTO THE ECONOMY.
If you are appointed as Branch Manager in the branch which is worst performing, what steps
would you initiate to turn around the Branch?
The Branch Manager shall adopt strategies depending on the specific problems pertaining to that
Branch and the environment. However, some general strategies could be:
Banks profitability basically depends on the spread between cost of deposits and yield on advances
CASA deposits should be improved to reduce cost of deposits
To increase high-value advances and improve yield on advances
To improve non-interest income through cross selling and others
To plug income leakage
Reducing overhead costs that can be cut
To concentrate on NPA/AUC recovery and collect un-debited interest and amounts from interest
not collected account
To speed up legal actions under SARFAESI Act and other means
What is cross selling?

Cross selling a popular concept in banks. Banks sell insurance and mutual products to their own
customers. By cross-selling, banks earn commission from insurance companies and mutual funds.
Banks enter into agreements with insurance companies and asset management companies for crossselling. Within their own products, banks can cross-sell by the following ways: 1. Selling loan
products to depositors, 2. offering SB/current accounts to borrowers, etc.
What is CIBIL?
CIBIL stands for Credit Information Bureau (India) Limited. CIBIL was incorporated in 2000 with an aim to
summarize and share credit reports among its members Its original promoters were State Bank of
India, HDFC, Dun & Bradstreet and Trans Union. Now, the shareholding is more diversified with
several more stakeholders, like ICICI Bank, BOB, IOB, UBI, PNB, Hong Kong Bank etc, included. CIBIL
provides credit information on commercial and individual borrowers to lenders, like, banks,
NBFCs and others. The information is provided for a fee. In credit markets, data sharing is very
important between lenders and borrowers.
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50
The members of CIBIL are mostly banks, non banking financial institutions and credit card companies.
The ultimate aim of this CIBIL is to help its members to evaluate the risk involved in a particular loan
through its credit score and CIR.
Whats a CIBIL credit score and CIR?
Through the information received from its constituent members, CIBIL compiles a report (CIR report)
containing the loan history of a particular person. For example, if a person had borrowed a gold loan
from PNB and a housing term loan from ICICI, these two entries will be present in his CIR. This will
be helpful for the next bank {to which he had applied for a loan}to assess whether the person will be
able to repay the loan as he already has two loans left to pay out.
The CIBIL score is a 3 digit numeric score that ranges from 300 to 900 {the higher the better} and it
is calculated based on the kind of loans the person has borrowed and the time he has taken to repay
the loan. For example a person takes very little time to repay the loan will be given a far better score
than the person who doesnt repay his loan at all.
What do you know about ASBA?

ASBA means Application Supported by Blocked Amount. It is a term used in capital markets.
ASBA is an application containing an authorization to block the application money in the bank account,
for subscribing to an issue an initial public offer or follow-on-offer. If an investor is applying
through ASBA, his/her application money shall be debited from the bank account only if
his/her application is selected for allotment after the basis of allotment is finalized. All
investors can apply through ASBA in all public issues.
How many public sector banks (PSBs) are there in India?
There are 26 public sectors banks in India. Nationalized Banks are 20including IDBI Bank. State
Bank Group companies are six after the merger of State Bank of Indore and State Bank of
Saurashtra with State Bank of India
Who will benefit the most when rupee is rising?
When rupee is appreciating against major currencies, like, US dollar, Euro and Pound,
importers in India will benefit because importers need to pay lesser rupees for goods and
services
Who are Business Correspondents (BCs)?
With a view to ensuring greater financial inclusion and increasing the penetration of banking
services to vast sections of the underprivileged sections of the society, RBI a few years back
allowed banks to use the services of well-established NGOs, SHGs, MFIs, Post Offices, and
___________________________________________________________________________________
51

.
others as intermediaries. With the help of the intermediaries, banks can extend their services
through the use of Banking Correspondent model.
In September 2010, RBI allowed banks to appoint companies as Business Correspondents
who can sell banking products to vast sections of rural and semi-urban population. With this
measure, companies like, HUL, ITC and Bharti Airtel, can be appointed as BCs by banks an in
turn these companies will provide banking services to the people.
What is financial inclusion?
Financial inclusion is a process whereby easy access to banking services is provided by banks to
weaker sections and low-income groups. As part of financial inclusion, commercial banks
have to offer, at affordable cost and in a fair manner, financial products and services to these
underprivileged sections. As per RBI guidelines, banks have to provide banking services through a
banking outlet in every village having a population of over 2,000. The banking services could
be provided through any of the various forms of models, such as, Business Correspondents
and not necessarily through a brick-and-mortar branch
What is Reverse Mortgage and how does it work?
A reverse mortgage is a loan extended to senior citizens against the security of a house
property owned by them. The loan is given in lump sum or in installments and it provides
important cash flow to the senior citizens who require money during their old age. They
continue to be the owners of the house and occupy it. The loan obligation is deferred till the
death of the homeowner. The legal heirs of senior citizens can repay the loan amount after
the death of the borrower and the bank will release the security on the house property.
What is Base Rate?
Base Rate is the minimum lending rate below which a bank can not lend to borrowers except in a few
cases. Base Rate was implemented in India with effect from July 1, 2010. From that date, the
existing Benchmark Prime Lending Rate(BPLR) was replaced by the new Base Rate System. Base Rate differs
from bank to bank depending on individual banks cost of deposits/funds and other criteria.
RBI has introduced a new system of loan pricing for Indian Banks. What is that
system called?
With effect from July 1, 2010, RBI introduced a new system of loan pricing called Base Rate
System. All commercial banks have adopted the new system.
___________________________________________________________________________________
52

How is RBI controlling inflation in India?
To control inflation, RBI has been raising CRR, repo and reverse repo rates gradually since February
2010. With such measures, money supply will be restricted and money will become costlier. In a rising
interest rate scenario ,companies will be reluctant to start new projects which may impact overall
growth. As a result, RBI always tries to maintain a balance between growth and price stability
Who has created Rupee Symbol?
The new symbol for Indian Rupee was designed by Dr Dharma lingam Udaya Kumar, a graduate from
IIT, Bombay. He is working as a faculty in IIT, Guwahati.
What is money laundering?
Money laundering is a process whereby criminals use banking/financial system to legitimize
their ill-gotten money. Many terrorists and drug traffickers have been using banking channels
as a conduit to transfer money for their terrorist/illegal activities.
What is the definition of a willful defaulter?
If any one of the following criteria is satisfied, such an occurrence can be termed as
willful default
1) The borrower has defaulted even though he/she has the capacity to honor the payments
2) The borrower has defaulted on the payments and has not utilized the funds for the
purpose they were sanctioned and diverted the funds
3) The borrower has defaulted on the payments and has siphoned off the funds and the
funds are not available in any other asset form
Sources: various websites, like, RBI, SEBI, newspapers, etc. Disclaimer: The above is for
information purpose. Though every care has beentaken to provide authentic information on
the above questions, readers have todo their own diligence and the author is not responsible
for any mistakes. However, if you find any mistakes, please bring it to my notice.
Q What is KYC ?
KYC is an Acronym for Know Your Customer, a term that is used to describe the process of
customer identification, verification of the social and financial credentials of the customers.
KYC enables the Bank to know and understand its customers and their financial dealings so
as to serve them better, setting up of Threshold Limit and prudently mitigate the risks of
Money Laundering and Financing of Terrorism.
___________________________________________________________________________________
53

.
KYC has two components- Identity and Address. While identity remains the same, the
address may change and hence the Bank is required to periodically update its records.
Bank need to obtain sufficient information, whether regular or occasional, necessary to
establish, to its satisfaction, the identity of each new customer, and the purpose and nature
of the intended Banking relationship.
Q
Why is KYC required?
The objective of the KYC guidelines is to prevent Bank from being used, intentionally or
unintentionally by criminal and anti social elements for money laundering.
KYC procedures enable Bank to know and understand the customers and their financial
dealings better which in turn help us to manage and circumvent the risks of Money
Laundering and Financing of Terrorism prudently.
Q
When will the Bank require KYC to be done?
The Bank will carry out KYC procedure for: Opening a new account
Opening a subsequent account where documents as per current KYC standards have
not been submitted while opening the initial account
Opening a Locker facility
Issue of ATM/ Debit/ Credit cards
Periodical updation
Non- account holders approaching the bank for high value one-off transactions.
Bank also seeks information/ additional information from existing customers based on
conduct of the account.
Q
What is First and foremost step under KYC ?
The First and foremost element is Customer Acceptance

These guidelines are the Basis of acceptance of individuals and entities as Customers of
Oriental Bank of Commerce i.e. the governing criteria for entering into and maintaining
customer relationships or terminating the same. At the first stage itself the Bank official has
to talk to the person and shall know/ understand the customer and their financial dealings,
which in turn shall help in managing risks more prudently.
Customer Due Diligence is the first step and this result in Risk Perception/ assessment about
the customer and accordingly customer categorization shall be done at the Branch level.
Q
Who is a Customer under KYC Policy?
___________________________________________________________________________________
54

.
A customer is defined as:
A person or entity that maintains an account and/or has a business relationship with
the bank
One on whose behalf account is maintained (the beneficial owner)
Beneficiary of transactions conducted by professional intermediaries
Any person or entity connected with a financial transaction which can pose significant
reputation or other risks to the Bank, a wire transfer or issue of a high value demand
draft as a single transaction.
Q
Why is classification of customer necessary under KYC Policy?
So that the KYC Policy and its implementation does not become too restrictive
resulting in denial of banking services to the general public, especially to those who
are financially or socially disadvantaged.
To avoid disproportionate cost to the bank and a burdensome regime for customers.
What is the process of Classification of Customers?
The risk categorization of customers is a two step process. Customers and prospective
customers are first grouped in one of the following categories:
Individuals
Private Organizations, Private Institutions, Public and Private Limited Companies,
Firms, Trusts, Charities, NGOs, HUFs etc.
All Government Departments, Government owned companies, Regulators and
Statutory bodies etc.
Non-face-to-face customers
After the initial grouping, the second level of categorization is done on the basis of the level
of Money Laundering (ML) risks that the Bank is exposed to by a Customer. This depends on:
Type of the customer (individual or an entity)
1. Social and economic status
2. Nature of business
3. Type of product / service availed by the
customer
4. Country where the Customer is domiciled.
Q
What are the risk categorization adopted by our Bank?
Risk categorization of Customers shall comprise of four types:___________________________________________________________________________________

55

1
Low
2
Medium
3
High
4
Very High
C1
C2
C3
C4
What about categorization of other Groups?
All Government Departments, Government owned companies, Regulators and

Statutory bodies etc. are to be categorized as Low risk
Non-face-to-face customers are to be categorized as very High risk
What is the usefulness of risk categorization?
Based on the risk assessment levels bank has to take extra precautions and additional
documentation to satisfy themselves regarding the identity of customers.
C-1 Customers: In such cases, only the basic requirements of verifying the identity and
location of the customer are to be established.
C-2 Customers: Besides, verifying the identity and location of the customer, a brief profile
of these customers should also be prepared (OF 5A or OF 1A)
C-3 Customers: Enhanced due diligence measures should be applied in establishing identity
and location of the prospective customer and detailed profile should be prepared.
C-4 Customers: Intensive due diligence measures should be applied and very detailed
profile should be prepared.
Q
What is Customer Profile?
Customer profile shall be prepared in case of all the new accounts and in case of existing
accounts depending on the risk perceived/category of the customer.
Customer Profile shall mainly contain information on the :
Customers Identity
Social & Financial Status of the customer,
Nature of Business Activity of the Customer,
Information about his clients Business,
Location(s) of the customers Clients etc
Q What is the most important step by which a customer becomes the customer
of OBC?
___________________________________________________________________________________
56

.
The risk category of the prospective customer should be identified BEFORE the interview so
that the interviewing officer should know
the type of profile (brief or detailed) required to be prepared
extent of due diligence required
financial information to be collected
No account should be opened without carrying out the interview.
Q
For what type of customers Bank shall not open account?
Accounts should not be opened:

In the name of persons with known criminal background or banned entities such as
individual terrorists or terrorist organizations
In anonymous or fictitious names
In the name of those with dubious reputation as per public information available
Where the bank is unable to verify the identity or obtain documents in line with the
Customer Acceptance Policy due to
non-cooperation of the customer
non reliability of data/information furnished to the bank
Politically Exposed Persons of foreign origin- Account can be opened after taking
approval of HO.
Q Can the bank close an account if the account holder does not provide the
necessary information/ documents to fulfil the banks norms?
If an account holder does not provide the bank with the information bank require bank may
consider closing the account or terminating the banking/ business relationship after due
notice, explaining the reasons for taking such a decision.
Case for termination of customer relationship shall be prepared only on account of
non-cooperation by the customer or non-reliability of the documents / information
furnished to the Bank.
The Branch shall prepare case on the prescribed format and send the same to the
concerned Regional Office alongwith recommendations for closure of the account duly
signed by the Branch Incumbent.
The Regional Head only shall decide about the termination of customer relationship i.e.
after going through the details of each case and his decision shall be guided by the
severity of each case, risk category and compliance of the KYC Policy.
The Regional Office shall convey its decision to the branch and in case of termination
of customer relationship the account shall be closed only after due notice of 15 to 30
days has been served by the Regional Office to the customer explaining therein the
reason of such decision.
___________________________________________________________________________________
57

.
In case the customer turns up within the notice period (i.e. before closure of his
account) and complies with the KYC Policy of the Bank, the decision to continue
customer relationship with that customer shall also be taken by the Regional Head
only.
Q
Is Introduction necessary for opening of accounts?
Since introduction is not necessary for opening of accounts under PMLA Rules of Reserve
Bank of Indias extant KYC instructions, the Branches should not insist on introduction.
Q What Documents are acceptable for establishing identity of a person under
KYC ?
Documents for establishing identity of a person may include:
Valid Passport
Valid PAN Card
Valid Driving License
Valid Voters ID Card
Letter issued by UIDAI containing details of name, address and Aadhaar number
Job card issued by NREGA duly signed by an officer of the State Government.
Q
Is the verification of the photo copies submitted by the customers necessary?
Yes, Correctness of the documents should also be verified with the Originals.
Q
Is PAN necessary for opening an account?
Quoting of PAN is mandatory for opening bank accounts, placing fixed deposits in excess of
Rs. 50000/- depositing Rs. 50000/- or more in Cash to a bank account on any day, issue of
demand drafts against payment of cash of Rs. 50000/- or more, issue of credit cards, etc
under Rule 114B of Income Tax Rules.
Banks are required to verify the PAN quoted by the customers. For verification of PAN,
Income Tax Dept. has started providing facility for organizational users to query their PAN
database in batch mode on their website http://incometaxindiaefiling.gov.in
Q Is the determination of Beneficial owner required for opening of account?
Yes, The term beneficial owner has been defined as the natural person who ultimately owns
or controls a client and /or the person on whose behalf the transaction is being conducted,
___________________________________________________________________________________
58

.
and includes a person who exercises ultimate effective control over a Juridical person i.e.
firm, companies, trusts, associations, etc. While opening the accounts of Legal
Persons/entities i.e firms/companies/trusts etc, the true identity of the beneficial owner/s in
terms of above mentioned circular should be established.
The customer profiles all the beneficial owners as well as of authorized signatories be
prepared on OF-5A or OF-1A as applicable
In Customer Identification Form (OF 5A OF-1A), add the words Beneficial Owner with
Authorized signatory so as to read as
Customer/Authorized signatory/Beneficial Owners Details.
Obtain KYC documents, photograph of all beneficial owners/authorized signatories.
Prepare Cust ID of all the beneficial owners as well as of authorized signatories.
While opening the account of a legal person/entity, in Finacle, the profiles of all
beneficial owners/authorized signatories should be attached as associated party
details. (A details)
Following three codes have been added in designation code in the system in field
Designation code i.e
Authorized signatory
Beneficial owner
Authorized signatory & beneficial owner
Ensure to assign appropriate designation code to each profile. Assigning a correct code
is mandatory.
Q
Who are Money Mules ?
Money Mules can be used to launder the proceeds of fraud schemes (e.g., phishing and
identity theft) by criminals who gain illegal access to deposit accounts by recruiting third
parties to act as money mules. In some cases these third parties may be innocent while in
others they may be having complicity with the criminals.
In a money mule transaction, an individual with a bank account is recruited to receive cheque
deposits or wire transfers and then transfer these funds to accounts held on behalf of
another person or to other individuals, minus a certain commission payment. Money mules
may be recruited by a variety of methods, including spam e-mails, advertisements on genuine
recruitment web sites, social networking sites, instant messaging and advertisements in
newspapers. When caught, these money mules often have their bank accounts suspended,
causing inconvenience and potential financial loss, apart from facing likely legal action for
being part of a fraud. Many a times the address and contact details of such mules are found
to be fake or not up to date, making it difficult for enforcement agencies to locate the
account holder.
Q
Who are Walk-in Customers ?
___________________________________________________________________________________
59
A walk-in customer is a non-account based customer, and in case of transactions carried out
for him, where the amount of transaction is equal to or exceeds rupees fifty thousand,
whether conducted as a single transaction or several transactions that appear to be
connected, the customer's identity and address should be verified.
However, if a bank has reason to believe that a customer is intentionally structuring a
transaction into a series of transactions below the threshold of Rs.50,000/- the bank should
verify identity and address of the customer and also consider filing a suspicious transaction
report (STR) to FIU-IND.
In case of cash transactions below Rs.50,000/- carried out by a non-account based customer
that is walk-in-customer, full details of the customer, including complete address, telephone
number etc, should necessarily be obtained .
NOTE: In terms of Clause (b) (ii) of sub-Rule (1) of Rule 9 of the PML Rules, 2005 banks and
financial institutions are required to verify the identity of the customers for all international
money transfer operations
What is Threshold limit and is Rs 10.00 lacs a default threshold limit ?
Threshold limit means the annual credits expected in a account which can be arrived at, from
the profile of the customer.
It should not be confused with turnover i.e. total of credits and debits in the account. For
fixing higher threshold limits, the officer interviewing the prospective customer must satisfy
himself about the higher limit. It should not be simply fixed on the mere request of the
customer.
Earlier the default threshold limit was Rs. 10 Lacs which has since been removed.
It is advised to all Branches to check all accounts at their level and rectify the threshold limit
as per profile of the customers
While there is no restriction on fixing higher limit, it should be backed with additional
information/proof.
Q
Is it Mandatory to send Letter of Thanks to the customer and the introducer?
Letter of thanks to the customer and the introducer be sent invariably on the date of opening
of the account itself by Speed Post / UPC and necessary remarks/date in this regard be
recorded on the Account Opening Form under signatures. The format of the Letter of Thanks
is already provided the system.
___________________________________________________________________________________
60

.
In case the letter returns undelivered then immediate caution be marked on the account and
necessary steps be taken to safeguard Bank's interest.
Cheque Book / loose cheque be issued to the customer only, where KYC norms are
complete, after obtaining request letter. Subsequent cheque books shall be issued after
obtaining request on the prescribed requisition slip as per instructions.
Q Once KYC requirement are complied with while opening the account, can the
Bank ask for KYC compliance from the account holder again?
Yes, To ensure that the latest details about the customer are available, branches are advised
to periodically update the customer identification (including photograph/s) after the account
is opened.
Full KYC exercise will be required to done at least every TWO years for high Risk Individuals
and entities. (C-3 and C-4)
Full KYC exercise will be required to done at least every TEN years for low Risk Individuals
and entities. (C-1)(Earlier 5 years). But Every three years Positive confirmation i.e. Obtaining
KYC related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits
etc) will be required
Full KYC exercise will be required to done at least every EIGHT years for Medium Risk
Individuals and entities.(C-2) (Earlier 2 years) But Every two years Positive confirmation i.e.
Obtaining KYC related updates through e-mail/ letter/ telephonic conversation/ forms/
interviews/ visits etc. will be required
Fresh Photographs will be required to be obtained from minor customers on becoming major.
Q
What is the relevance of Monitoring of Transactions ?
Ongoing monitoring is the essential element of effective KYC procedure. Without regular
monitoring of transactions, all KYC procedures and process will be useless. This is the most
important of the policy that helps banks combat money laundering.
By understanding the normal and reasonable activity of the customer, the banker can easily
identify the transactions falling outside the regular pattern. This can reduce the risk of money
laundering greatly. The extent of monitoring depends on the initial risk categorization of the
customer at the time of initial customer acceptance and preparation of the profile.
In case transactions are noticed in variance with the profile or do not match the customer
profile, the account holder should be contacted for further details to the satisfaction of the
branch.
If required, profile should be revised to reflect any change in the status.
Q Is collection of cheque a part of Monitoring?
___________________________________________________________________________________
61

.
Collection of cheques in clearing is one area requiring close monitoring. The branch should
not collect any cheques that
they cannot identify with the normal and reasonable activity of the customer, or
when the amount involved is not as per the profile of the customer prepared at the
time of opening of the account.
In all such cases branches must call the customer and ask him to explain the transaction.
Such cheques should not be collected and if collected, proceeds should not be released
unless the customer gives satisfactory evidence for it. Non-collection or non-release of
payment should be informed to the customer at the earliest.
Q
What type of transactions are termed suspicious activities/ transactions ?
Examples of suspicious activities/ transactions are activities not consistent with the
customers' business
Corporate accounts where deposits or withdrawals are primarily in cash rather than
cheques
Corporate accounts where deposits and withdrawal cheques/TTS/inward
remittances/any other means received from/made to sources apparently unconnected
with corporate business/dealings
Unusual applications for DD/TT/PO against cash
Accounts with large volume of credits through DD/TT/PO whereas the nature of
business does not justify the same
A single substantial cash deposit composed of many high denomination notes
Frequent exchange of small denomination notes for large denomination notes or vice
versa
Retail deposit of many cheques but rare withdrawal for daily operations
Examples of Unusual Activities
An account of a customer who does not reside/have office near the branch even
though there are bank branches near his residence/office
A customer who often visits the safe deposit area immediately before making deposits,
especially deposits just under the threshold level
An account that has frequent deposits of large amounts of currency bearing the label
of other banks
Funds coming from the list of countries/centres which are known for money laundering
Customer who provides insufficient or suspicious information
A customer/company who is reluctant to provide complete information regarding the
purpose of business, prior banking relationships, officers or directors, or its locations,
in this case the account need not be opened
___________________________________________________________________________________
62

.
A customer/company who is reluctant to reveal details about its activities or to provide
financial statements
A customer who has no record of past or present employment but makes frequent
large transactions
Certain suspicious fund transfer activities
Sending or receiving frequent or large volume of cross border remittances- whereas
regular customer transaction for Exporters and Importers are not to be included in this
list.
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
Certain employee arousing suspicion
An employee whose lavish lifestyle cannot be supported by his or her salary
An employee who is reluctant to take a vacation
An employee who is associated with mysterious disappearances or unexplained
shortages of significant amount of bank funds
Negligence of employees/wilful blindness is reported repeatedly
Q
What are the reports to be submitted under KYC AML Policy ?
Under the Prevention of Money Laundering Act (PMLA) every banking company has to submit
reports to the Financial Intelligence Unit of India (FIU-IND), whenever:
Any large cash transaction takes place
Any suspicious transaction takes place
Any transaction involving counterfeit currency takes place
The PMLA also requires banks to maintain records for a period of 10 years of the following:
1. Record of identity of clients
2. Record of all transactions reported to FIU-IND
Q
What is CTR?
CTR is Cash Transaction report. This report contains:

All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken
place within a month
___________________________________________________________________________________
63

Frequency: Monthly, on or before 15th of every month
Q
What is STR?
STR is Suspicious Transaction report. This report contains:

All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated.
All 61 alerts are to be implemented by March 2014 in Phases.
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions
under these 61 alerts to all ROs for their looking into the matter and confirmation, if
any transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any
transaction, whether cash or non-cash, or a series of transactions integrally connected are of
suspicious nature
Q
What is CCR?
CCR is Counterfeit Currency Reports. This report contains:

All cash transactions where forged or counterfeit currency notes or bank notes have
been used as genuine or where forgery of a valuable security or a document has taken
place facilitating the transactions.
Frequency: As and when detected.
What is the meaning of FDI ?
The Foreign Direct Investment means cross border investment made by a resident in one
economy in an enterprise in another economy, with the objective of establishing a lasting
interest in the investee economy.
India is the 3rd largest economy of the world in terms of purchasing power parity and thus
looks attractive to the world for FDI. Even Government of India, has been trying hard to do
away with the FDI caps for majority of the sectors, but there are still critical areas like
retailing and insurance where there is lot of opposition from local Indians / Indian companies.
ORIENTAL BANK MEDICLAIM POLICY

___________________________________________________________________________________
64

.
Oriental Bank of Commerce signed an agreement with The Oriental Insurance Company Ltd.
tolaunch "ORIENTAL BANK MEDICLAIM" Policy on 3rd Oct. 2011. The Product is
designed exclusively for the A/c Holders of OBC and is available in all OBC Branches across
the country.
SALIENT FETURES:
A family floater scheme covering 4 family members (Proposer + Spouse + 2 dependent
Children aged 3 months to 26 years).
Age group covered - 3 months to 79 years.
No Pre - medical examination required, only declaration.
Cash less facility available at network hospitals.
Cover available for Minimum Sum Insured of Rs.1 Lac, up to Rs. 5 Lac, in multiple of
Rs.1.00 Lac. The Premium Structure (Inclusive of Service Tax) is as under:
Sum-Insured Premium(Including S. Tax)
Rs. 1 Lac Rs 1749
Rs. 2 Lac Rs 3320
Rs. 3 Lac Rs 4620
Rs. 4 Lac Rs 5780
Rs. 5 Lac Rs 6830
Pre - Existing diseases are covered after 3rd completed years without break.
Income Tax benefit under 80D of the IT act.
LEGAL ASPECTS
As per which provision of Securitization Act 2002, application can be filed before collector/ DM for
getting physical possession of the Secured Asset - Section 14 of the Act
As per which provision in Securitization Act 2002, Appeal/Application can be filed before DRT by the
Borrower - Section 17 of the Act (within 45 days)
As per which provision in Securitization Act 2002, Second appeal can be filed by the Borrower/
Guarantor to DRAT - Section 18 of the Act (within 30 days)
Limitation for filing execution Petition after obtaining Decree - 12 years
Maximum & Minimum members in a Pvt. Ltd. Company - 50 & 2
Minimum members in a Public Ltd. Company - 7
Maximum number of members in a partnership firm if it is a Banking company - 10
Maximum number of members in a partnership firm if it is not a Banking company - 20
Minimum directors in a Pvt. Ltd. Company - 2
Minimum directors in a Public Ltd. Company - 3
Time limit for having the first statutory meeting of a company after the incorporation of a company within 6 months
Pecuniary jurisdiction of DRT - 10 lac & above
Maximum court fee to be paid in DRT - 1.50 lac
Minimum court fee to be paid in DRT - 12,000/- up to Rs10 lacs, exceed every 1 lac Rs1000/-
___________________________________________________________________________________
65
As per which Act DRT is constituted - Recovery of Debts due to Banks and financial Institutions Act
1993
Which is the provision for filing appeal to DRAT against the order of the presiding officer in DRT Section 20 (within 45 days)
Which is the provision for filing appeal to the presiding officer in DRT against the order of the
Recovery Officer in DRT - Section 30 (within 30 days)
Within How many days, appeal should be filed before presiding officer in DRT against the order of
the Registrar of DRT - within 15 days
How many days time should be given in the demand notice sent to the Borrower as per Section 13
(2) of Securitization Act 2002 - 60 days
Banking ombudsman scheme is introduced in the year - 1995
Consumer Protection Act introduced in the year - 1986
How much time will be the maximum gap between two Annual General Meeting of a Company - 15
months
Within How many days, application for creating charges to be filed before Registrar of Companies 30 days (Section 125 of Companies Act 1956)
As per which provision in Indian Limitation Act 1963, Limitation is extended for further 3 years by
the obtention of Balance Confirmation Letter - Section 18
As per which decision of Supreme Court, it is made clear that simultaneous action under
securitization act along with DRT/ Suit Filed with any other court can be taken - Transcore v/s Union
of India
Pecuniary Limit for Filing RRC - below 10 lac
Limitation for filing mortgage suit before Court- 12 years
Limitation for filing money suit before Court - 3 years
Pecuniary Jurisdiction of Banking Ombudsman - 10 lacs
What is the prescribed time limit within which consumer Forum should dispose the Compliant - 3
months
What is the prescribed time limit within which DRT should dispose the Original Application - 6
months
What is the prescribed time limit within which Banking Ombudsman should dispose the Compliant 6 months
Limitation for filing compliant with Banking Ombudsman - 1 year
Limitation for filing compliant with Consumer Forum - 2 years
Pecuniary Jurisdiction of District Consumer Forum - 20 lacs
Pecuniary Jurisdiction of State Commission (Consumer) - Between 20 lacs and One Crore
Pecuniary Jurisdiction of National Commission (Consumer) - above 1 Crore
Maximum period of imprisonment can be given by a Court under section 138 of NI Act 1881 - 2
Years
Maximum period of civil imprisonment can be given by a Civil Court in the execution of a decree - 3
months
Action under section 138 of NI Act Send 15 days legal notice within 30 days of the date of
dishonor of cheque.
Documentation, Stamp Duty and Limitation :
Borrower
Individual
Who is to Sign the documents or create mortgage

Who is to Sign
Himself / His agent
___________________________________________________________________________________
66

Joint Borrowers
Proprietorship firm
Partnership firm
HUF
Joint Stocks Company
Trust/Club/Society
All / their agent

Proprietor / Agent
All partners
Karta. If coparceners are to be made liable, they are also to sign
Person authorized by the resolution from the Board of directors
Trustee/person authorized by their governing documents/resolution
Stamp Duty Rates

Instrument
Rate (Rs)
Receipts for any money or property the amount or value which exceedsRs.5000 1.00
Proxy letter
0.15
Letter of credit
1.00
Transfer of shares (Rs 100 or part)
0.25
Demand bill of exchange / cheque
NIL
Demand promissory note:
Value not more thanRs.250
0.05
Value more thanRs.250 less than Rs1000
0.10
Value of more than Rs1000
0.15
Loan account wise limitation period
Demand Loans
Demand promissory note
TOD
Term loan
C C Hypothecation
C C Pledge
Bills discouting
Bills purchasing
Loan secured by mortgage
Recovery of loss caused by fraud
Suit by state/Central government
Right of foreclosure and right of
redemption in case of mortgage
Deposit accounts like SB, CA or matured
FDRs
Appeal to high court against lower court
Appeal to other court on the decree at
lower court
Execution of decree
3 years from the date of loan

3 years from the date of DPN
3 years from the date of loan
3 years from the date of each installment
3 years from the date of document
NA
3 years from the due date of the respective
bill
3 years from the date of bill
Instead of 3 years, the period would be 12
years
3 years from the date of fraud detection
30 years from the period when limitation
begins
30 years when money becomes due and
when right to recover occurs respectively
3 years from the date of demand
90 days from date of decree
30 days from date of decree
12 years from the date of decree
___________________________________________________________________________________
67
SARFEASI ACT
The act has two parts, first part stands for securitisation and reconstruction of financial assets and
other part is enforcement of security interest.
Eligible assets under the act may be enforced without intervention of court or tribunal with the laid
down procedure under the act.
If party failed to deposit the amount, possession of charged/ secured assets is obtained from the
bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is
mandatory.
No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the
secured creditors representing not less than 3/4th in value of the amount outstanding.
If borrower restricts the bank to take physical possession of secured assets, petition is filed under
section 14 of the act to the CMM/DM praying to get the physical possession of the assets.
No action is taken before 45 days of taking possession, as 45 days time is given under the act to
appeal against the action of the bank.
Appeal with DRT can be filed by the party only after taking possession of the assets under section
17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil court
does not jurisdiction to entertain any suit under provision of the act.
Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed by
30 days publication of sale through auction/ tender notice of these assets in the vernacular
newspaper and national daily.
60 days notice is served under 13(2) of SARFEASI
Action is taken for the dues exceed Rs1 lac
Agriculture Land and lease hold property can not be enforced
Appeal is made within 45 days of possession of secured asset
30 days notice is served indicating there in the sale of asset
30 days publication is made for auction of secured assets
Possession of property is obtained under 13(4) SARFEASI Act
Publication of possession of property - within 7 days from the date of possession.
SERFEASI ACT 2002 does not apply to the following assets
A - lien on any goods, money or security.
B - A pledge of moveable.
C Creation of any security in any aircraft or vessel.
D Any property that can not be attached under any other law.
E Any security interest for securing repayment any financial asset not exceeding Rs1 lac.
F Any case in which the amount due is less than 20% of the principal amt.
G Any interest created in agriculture land.
LOK ADALAT
Lokadalat has been constituted under Legal Services Act, 1987. No legal fee is charged for
approaching Lokadalat.
All NPA a/cs including suit filed and decreed having outstanding balance uptoRs.20.00 lacs can be
referred to the Lokadalat. All legal disputes pending in civil, criminal, revenue courts or a tribunal
can be taken to lokadalat for amicable settlement except criminal cases which are noncompoundable.
Accounts can be settled by the bank as per the mutual consent of the parties.
Award passed by the Lokadalat is a deemed decree of the court, which can be executed in case of
default by the borrowers / judgement debtor through court of competent jurisdication.
___________________________________________________________________________________
68
National Lok Adalat held on 13-12-14 & next national Lok Adalat will be held on 14-02-15.
Existing Powers of Functionaries for settlement of Deceased Claims :
Presently the following functionaries have been vested with the powers for settling such claims as
approved and communicated vide Recovery & Law Dept., Head Office Circular
Functionaries
Branch Incumbents in Scale-I,II
Branch Incumbents in Scale III & IV
Branch Incumbents in Scale V & above
RLCC-RH headed by DGM
RLCC-RH headed by GM
GM committee at Head Office
HLCC-ED at Head Office
CAC at Head Office
Thresh hold limit/Powers

Upto Rs 5.00 lacs
Upto Rs. 10.00 lacs
Up to Rs. 25.00 lacs
Upto Rs. 50.00 lacs
Upto Rs. 1.00 Crore
Above 50.00 lacs and Upto Rs.1.00
crore
Above 1.00 crore and Upto Rs.4.00
crore
Above Rs. 4.00 crore
In order to further simplify the settlement of claims and to help the legal heirs of the deceased
account holders with credit balance ofRs.25000/- and below, the following sub-threshold limit has
been approved
Functionary
Sub- Threshold limit
Branch Incumbent/ Incumbent In charge (in all scales) 25000/- and below
Further, following clarifications are being given for settling the deceased depositors claim cases
In respect of claims on the basis of court orders viz. Probate/ Succession Certificate, the same can be
settled by branch Incumbents irrespective of the amount involved.
* Claims by nominees in respect of the accounts where a valid nomination is registered as per Branch
records, shall be disposed of at Branch level, in accordance with nomination; irrespective of the
amount involved.
* It is clarified that the branch incumbents are vested with the powers to settle the cases of class I
legal heirs of male deceased depositor as well as legal heirs as per Section 15 (a) in case of female
deceased depositors in accordance with Hindu Succession Act 1956, whether they are Hindu, Sikh,
Jain or Buddhist.. The claims other than above and other claims relating to Muslim & other
communities and claims by guardian other than natural guardian shall be dealt at Regional office level
even when the claim amount falls within Branch powers. Further claims in respect of Either or
Survivor & Former or Survivor accounts shall be disposed of at branch level as per instruction
* The indemnity bond is to be obtained from all the legal heirs of the deceased depositor with two
sureties
* Before processing the deceased claim case, all the claim papers submitted by claimants to the
branch, be got vetted by the legal retainer, if the concerned branch is situated in the city where
___________________________________________________________________________________
69
Regional office is situated and by the panel advocate if the concerned branch is situated in other cities
on a lump sum fee ofRs.500.00 only
TAX DEDUCTED AT SOURCE (T.D.S)

1. Floor limit of TDS on Term Deposit10000/- (wef 01-06-2007)
2. Form 15 G - To be obtained from Persons (other than Senior Citizen)
3. Form 15 H - To be obtained from Senior Citizen
4. Form 60 - for Non Agriculture
5. Form 61 - for Agriculture
Tax Deduction at Source (TDS) at a Higher Rate (20%) on Transactions on not quoting of
PAN
As per the amended provisions, w.e.f. 1.04.2010, TDS at higher of the prescribed rate or 20% will be
deducted on all the transactions liable to TDS, where Permanent Account Number (PAN) of the
deductee i.e., the party is not available.
The law will also apply to all non-residents in respect of payments/remittances liable to TDS. Further,
Certificate of deduction of tax at lower rate or no deduction (under section 197 of the Income Tax
Act,1961) shall not be issued by the concerned Income Tax Authority to the party i.e., to whom
eligible payment is made by the bank, unless the application of the party bears PAN. In addition,
declaration by the depositor in "Form 15 G/Form 15H"(under section 197A of the Income Tax Act,
1961) shall not be valid unless it bears the PAN of the depositor.
Keeping in view the above amendments, the offices are advised, as under:
(i)
Where the payment to the party is liable to TDS and the party has not quoted PAN, to deduct
TDS at higher of the prescribed rate or 20%. The basic exemption limit and the prescribed
TDS rates in force are reproduced below for ready reference.
PAYMENT TO RESIDENTS IN INDIA
S.No.
Nature of Payment
Prescribed
TDS liable to be deducted
TDS
rate
(SurchargeNil
&CessNil)
1
Interest
on
Term 10%
If the interest credited or paid (likely to be
Deposits
credited or paid) during the financial year
(Domestic Company as
exceeds Rs10,000/-.
well as other than
Domestic Company)
P.S: TDS ON INTEREST ON TERM DEPOSITS NOT LIABLE TO BE DEDUCTED
(a) Interest is credited/paid to any banking company, co-operative society engaged in banking
business, public financial institutions, the Life Insurance Corporation, the Unit Trust of India
or notified Institutions (only on receipt of exemption certificate from the tax authorities)
(b) Interest other than on time deposits.
(c) Interest is credited or paid on compensation awarded by the Motor Accident Claims Tribunal if
the amount of payment or the aggregate amount of such payment does-not exceed
Rs50,000/-
___________________________________________________________________________________
70

2.
Commission
or 10%
brokerage
Rent of plant and 2%
machinery (with effect
from October 1,2009)
Rent of land or building 10%
or furniture or fitting (
with
effect
from
October 1,2009)
If the interest credited or paid during the

financial year exceeds Rs5000/If the interest credited or paid during the
financial year exceeds Rs1,80,000/-
4.
Fees for professional 10%

or technical services
5.
Payment
Contractors/Subcontractors
If the amount credited or paid (likely to be

credited or paid) during the financial year
exceeds Rs30,000/The amount of any (single) sum credited or
paid (likely to be credited or paid) exceeds
Rs30,000/- and the aggregate of the
amounts of such sums credited or paid
(likely to be credited or paid) during the
financial year does-not exceed Rs75,000/-
3a.
3b.
to
If the interest credited or paid during the

financial year exceeds Rs1,80,000/-
(a) Payment/credit to an 1%
individual or a HUF
contractor/sub-contractor
(w.e.f 01/10/2009)
(b) Payment/credit to any 2%
person other than an
individual or a HUF
contractor/sub-contractor
(w.e.f 01/10/2009)
INTEREST PAYMENTS TO PERSONS NOT RESIDENTS IN INDIA
Nature of Payment
A. In case where the person (other
than company) which is not
resident in India
B.(i) In case of a company which is
not a domestic company (where
the total income does-not
exceedRs.one crore)
(i) In case of a company which is
not a domestic company (where
the total income exceedsRs.one
crore)
Income Tax
(%)
Surcharge
(%)
Cess (%)
Total (%)
30%
0.90%
30.90%
40%
1.2%
41.20%
40%
0.8%
1.224%
42.024%
___________________________________________________________________________________
71
It is reiterated that under the existing provisions of the Income Tax Act, 1961 and circulars
issued there under, no tax is required to be deducted at source on payment of interest to the
holders of Non Resident (External) Account and FCNR deposits as per extant rules.
It is clarified that in the case of payments to persons resident outside India which are liable for
TDS i.e., other than Non Resident (External) Account and FCNR deposits, if PAN is not quoted
by the party, TDS at the afore-said rates is to be deducted as these rates are higher than
20%.
(ii)
Not to accept "Form 15 G/Form 15H" from any of the depositors unless PAN of the
depositor is quoted on the respective forms.
TAX DEDUCTION AT SOURCE (TDS)

The Central Board of Direct Taxes (CBDT) have since issued notification dated 31st May 2010 w.e.f
01/04/2010 modifying the time limit for deposit of TDS, issue of TDS certificates and efiling of TDS Returns and in the light of the same the offices are advised as under:
I. TIME LIMIT FOR DEPOSIT OF TDS & ISSUE OF TDS CERTIFICATES
(a) SALARY
TIME
LIMIT
FOR TIME LIMIT FOR ISSUE OF TDS CERTIFICATE IN
DEPOSIT OF TAX BY THE TDS CERTIFICATE TO THE
BANK
EMPLOYEE
For Salary credited/Paid in
the month of March
- On or before 30th April
For salary credited/ paid
other than the month of
March
By 31st May of the financial

year immediately following the
financial year in which the salary
was paid and tax deducted.
Revised FORM No. 16

to be issued Annually.
Within 7 days from the

end of the month in which
tax is deducted
(b) PAYMENTS OTHER THAN SALARY
TIME LIMIT FOR DEPOSIT TIME LIMIT FOR ISSUE TDS CERTIFICATE IN
OF TAX BY THE BANK
OF TDS CERTIFICATE
Amount credited/Paid in the
month of March
- On or before 30th April
Within 15 days from the Revised FORM No. 16A

due date for furnishing to be issued Quarterly.
Other cases i.e.,
Amount statement of deduction of
credited/paid other than in the tax i.e., TDS Return (Refer
Item 2 for Due date) .
month of March
Within 7 days from the end of
___________________________________________________________________________________
72
the month in which tax is

deducted
II. DUE DATE FOR FILING TDS RETURNS
The due date for furnishing TDS return for the quarter ending March has been modified to 15 th May
(from earlier June).
Accordingly, the revised due dates for e-filing the TDS returns are:
S.No.
1.
2.
3.
4.
Date of ending of the Due date

quarter of the financial
year
30th June
15th July of the financial year
30th September
15th October of the financial year
31st December
15th January of the financial year
31st March
15th May of the financial year
immediately following the financial year
in which deduction is made
(III) The offices shall continue to deposit TDS in on-line mode.

Payment of Interest for delayed remittance to IT authority
___________________________________________________________________________________
73
RECOVERY / NPA NORMS

Interest and or installments of principal remain overdue for a period of more than 90 days in respect
of a term loan.
The account remains out of order for a period of more than 90 days in respect of overdraft/cash
credit
The bill remains overdue for a period of more than 90 days in case of bill purchased and discounted
Interest and /or installment of principal remains overdue for two harvest seasons but for a period
not exceeding two half year in the case of an advance granted for agriculture purpose, and
w.e.f.30.09.04 following further amendments issued by the Apex Bank
a. A loan granted for short duration crops will be treated as NPA, if the installment of principal or
interest thereon remains overdue for two crops seasons.
b. The loan granted for long duration crops will be treated as NPA, if the installment of principal or
interest thereon remains overdue for one crop season.
(Crop season for each crop would be determined by the State Level Bankers Committee in each
state)
Any amount to be received remains overdue for a period of more than 90 days in respect of other
accounts.
RBI to move over to charging of interest at monthly rest , w.e.f. 01.04.02
NPA CATEGORY
REVISED NORMS w.e.f. 31.03.05
Sub standard assets
A sub standard asset would be one, which has remained
NPA for a period less than or equal to 12 months
Doubtful assets
If it exceeds a sub standard category for more than 12
months
Loss assets
No security in the account and as identified by bank/
internal/ external auditors or RBI as loss assets
If realizable value of the security is less than 50% of what valued at the time of sanction or last
inspection, such NPA may be straightaway classified under doubtful category
If realizable value of the security is less than 10% of present o/s, such NPA may be straightaway
classified under loss category
Our bank has fixed Rs50 lakhs and above accounts as high value accounts
All the facilities granted by a bank to a borrower will have to be treated as NPA and not the
particular facility or part thereof which has become irregular.
The account which are running regular and are classified as standard shall not be categorized NPA
category even if any of the directors/partners are common in other accounts which have been
classified as NPA
Restructured/Reschedule accounts upgraded after one year subject to satisfactory performance
during the period.
NPA accounts shall be immediately upgraded on payment of irregular portion.
PROVISIONING NORMS:
Rates of Provisioning for Non-Performing Assets and
Restructured Advances Category of Advances
Existing
Rate
Revised
Rate
(%)
(%)
___________________________________________________________________________________
74
Sub- standard Advances:

Secured Exposures
10
15
Unsecured Exposures
20
25
Unsecured Exposures in respect of Infrastructure loan accounts

where certain safeguards such as escrow accounts are available.
Doubtful Advances Unsecured Portion:
Doubtful Advances Secured Portion:
15
20
100
100
For Doubtful upto 1 year
20
25
For Doubtful > 1 year and upto 3 years
30
40
100
100
0.25 to 1.00
(depending
upon the
category of
advance)
100
100
0.25 to 1.00
(depending
upon the
category of
advance)
For Doubtful > 3 years

Loss Advances:
Restructured accounts classified as standard advances:
in the first two years from the date of restructuring ; and
in cases of moratorium on payment of interest/principal after
restructuring period covering moratorium and two years
thereafter.
Restructured accounts earlier classified as NPA and later upgraded
to standard category
in the first year from the date of upgradation
EARLY RECOGNITION OF STRESSED ASSETS

In order to identify incipient stress in the borrowal account before it turns into Non Performing Asset
(NPA), Banks are henceforth required to have three sub-categories under the SMA category as given
in the table below:
SMA SUB-CATEGORIES BASIS FOR CLASSIFICATION
SMA-0
Principal or interest payment not overdue for more than 30
days but account showing signs of incipient stress
SMA-1
Principal or interest payment overdue between 31 -60 days
SMA-2
Principal or interest payment overdue between 61-90 days
In this aspect, Bank has laid down list of signals of financial distress/ weakening in borrowal accounts
that need to be monitored closely for recognition of Financial Distress in the borrowal accounts
Special Compromise settlement Schemes :
1. SPECIAL ONE TIME SETTLEMENT SCHEME (OTS) FOR SETTLEMENT IN ELIGIBLE NPA
ACCOUNTS WITH O/S UPTO Rs.10.00 Lac
Eligibility:-
___________________________________________________________________________________
75
The Approved Scheme shall cover all NPA accounts in doubtful or loss category (whether non-suit
filed, suit filed or decreed accounts) with Principal outstanding upto Rs. 10.00 Lac (including amount
technically written off, ECGC/ DICGC/CGFT claim received) as on 31.12.2014 except those cases
where the settlement had been approved and the same was being honoured. Scheme valid till
31.03.2016.
2. Settlement Scheme for Individual NPA Accounts under Direct Agriculture category :
Eligibility : All the NPA accounts where loan was given to individuals (other than Corporates,
Institutions, Partnership firms and trusts) which are under Direct Agriculture Category.
Minimum indicative settlement amount : amount of settlement will not be less than 85% of the
Principal amount.
Standard assets
The provisioning requirements for all types of standard assets stands as below. Banks should make
general provision for standard assets at the following rates for the funded outstanding on global loan
portfolio basis:
(a) direct advances to agricultural and Small and Micro Enterprises (SMEs) sectors at 0.25 per cent;
(b) advances to Commercial Real Estate (CRE) Sector at 1.00 per cent;
(c) advances to Commercial Real Estate Residential Housing Sector (CRE - RH) at 0.75 per cent
(d) all other loans and advances not included in (a) (b) and (c) above at 0.40 per cent.
(The provision on standard assets should not be reckoned for arriving at net NPAs)
(The provisions towards standard assets need not be netted from gross advances but shown
separately as Contingent provision against standard assets under Other liability & provisions
Others in Schedule-V of the Balance Sheet)
CENTRAL REGISTRY
Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12,
Government of India, Ministry of Finance notified the establishment of the Central Registry. The
objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple lending
from different banks on the same immovable property. This Registry has become operational on
March 31, 2011. The Central Registry of Securitisation Asset Reconstruction and Security Interest of
India (CERSAI), a Government Company licensed under section 25 of the Companies Act 1956 has
been incorporated for the purpose of operating and maintaining the Central Registry under the
provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI Act).
The records maintained by the Central Registry will be available for search by any lender or any other
person desirous of dealing with the property. Availability of such records would prevent frauds
involving multiple lending against the security of same property as well as fraudulent sale of property
without disclosing the security interest over such property. It may be noted that under the provisions
of Section 23 of the SARFAESI Act, particulars of any charge creating security interest over property is
required to be filed with the Registry within 30 days from the date of creation.
The Central Registry has been set up for the purpose of Registration of
(a) Security interest over Property (b) Transaction of securitization (c) Asset reconstruction
NOTE : In all the cases where equitable mortgage is created, the same has to be first registered in
CERSAI before any disbursement of loan w.e.f 01.12.2014
___________________________________________________________________________________
76
DEPOSIT SCHEMES
SAVINGS BANK DEPOSIT SCHEMES
#
1.
2.
3.
4.
5.
6.
SCHEME
SALIENT FEATURES
Only for Banks Staff members.

All facilities free and no charge to be levied.
SB-211(saving smart save-flexi fixed deposit)Facilities
also availableSavings Bank (Staff)
Threshold Limit Rs.25000/Minimum sweep in Rs.5000/Minimum sweep out-Rs.2000/No Minimum Balance required to be maintained.
For salaried persons whose salary is credited in this
account.
Smart Pay
Zero balance Account. No charges for non-maintenance of
Salary Accounts
minimum balance. Also available for Wipro salary
scheme(Previous SB 213)
A/C can be opened by NRI / PIO. In Indian Rupees. Local
Funds/Funds from abroad.
Any resident going abroad for gainful employment, his
domestic account will be converted into NRO a/c.
If he/she does not have any domestic a/c, he/she can
NRO Saving Bank A/Cs
open a NRO a/c.
Joint a/c with Residents/Non-Residents permitted.
Non-repatriable except to the extent of USD 125000 per
financial year including sale proceeds of immovable
property.
A/C can be opened by NRI / PIO. Funds from abroad. In
Indian Rupees. Any resident going abroad for gainful
NRE Saving Bank A/Cs
employment can open NRE account. Joint a/c with Non
Residents /Residents (with some conditions) permitted.
P.A. Holder can operate the account. Freely Repatriable.
Any returning NRI who has stayed abroad can open RFC
RFC Saving Bank A/C
a/c. In Foreign Currency- USD, GBP and Euro. Joint a/c
permitted. Freely Repatriable.
Tax Saver Scheme. Exemption from Capital Gains Tax u/s
54, 54B, 54D, 54F and 54G of Income Tax Act, 1961
allowed. Option to open Account A or B. Interest or
withdrawal from Account B can be made through Account
Saving Bank
A only. Introduction of the depositor need not be insisted
Capital Gains Scheme
upon. Joint account not permitted. Cheque Book facility
Account A for SB B
not allowed. Withdrawal of Interest does not require
for TD
permission from IT authority like the withdrawal of
Principal amount.
Special Account Opening Form to be obtained in duplicate.
The forms as obtained during the course of operation of
SCHEM
E CODE
SB 202
SB 204
SB 205
SB 206
SB 207
SB 208
___________________________________________________________________________________
77

#
7.
SCHEME
Saving Smart
Flexi Fixed
Deposit
SALIENT FEATURES
account / withdrawals /closure of accounts to be

submitted to the IT authority within 7 days of the close of
the month.
Average Quarterly Credit Balance Rs.25,000/Balance above Rs.25000/- will automatically be converted
into Term Deposit. Auto sweep Unit- Rs.5000/-. Reverse
Save
sweep unit- Rs.2000/-. 50% concession in NEFT/RTGS
SB 211
Charges. Speed Clearing Charges Free. Free ECS debit
and credit. Instant credit of O/s cheque upto Rs.25000/No Charges for Cheque Books .At par collection of Govt.
Cheques.
Initial deposit
Minimum Balance
Basic SB Deposit
HO/CS&P / 44
/2012-13/527
/19.10.2012-
Cheque Book Facility
Cheque Collection
8.
SCHEM
E CODE
The new name for

Basic Banking (No Frill)
Account Scheme (SB212) is Basic Savings
Bank Deposit Account
(Basic SB Deposit)
(HO/CS&P/56/2012
-13/661/21-122012)
ATM Card
Number of Credits
Withdrawals
A nominal amount of Rs.

10/- for opening of an
Account under the Scheme.
No Minimum Balance
prescribed and as such no
charges for non
maintenance of Minimum
Balance.
One Free of Cost Cheque
Book of 25 Leaves during a
Calendar Year
Cheques drawn in favour of
the account holder shall be
collected in such Accounts, if
any
Free ATM Card facility shall
also be provided.
No restriction on number of
credits in the account
A maximum of 6
withdrawals (including ATM
and Transfers) per month
are permitted, free of any
charges,. For additional
withdrawals during a month
(i.e. over and above the 6,
free of cost), Charges of Rs.
5/- per withdrawal should be
levied.
SB 212
___________________________________________________________________________________
78

#
SCHEME
SCHEM
E CODE
SALIENT FEATURES
Other free Services
Standing Instructions for

transfer of funds within the
same branch,
No Incidental Charges for
activating the inoperative
account.
Other Services
ECS, NEFT, Issuance of DD
etc, are available and
applicable service charges
are levied as per banks
schedule of the Charges.
( However Internet Banking
facility is not permitted
NOW NO RESTRICTIONS IN MAXIMUM BALANCE
AND TOTAL CREDITS IN THE ACCOUNTMinimum Balance
Without Cheque Book
With Cheque Book
9.
10.
OBC Unnati Deposit

Scheme
SB Pension Account
R/
SU/
U
Rs.
500/Rs.
500/-
Metro
Rs1000/
Rs.
1000/-
NEFT/RTGS at 50% concessional

Charges.No cheque book charges
(Including multicity cheques)Free
accidental
insurance
up
to
Rs.50,000/- (For 1st year only)
after
that
premium
for
insurance coverage will be
charged
@Rs.4.50+S.Tax.Prescribedmonthl
y charges are levied on nonmaintenance
of
Minimum
Balance.Locker Rent Free for Ist
Year (for new customers only)
subject
to
availability
&
depositing of 3years rent in
advance.ECS Dr/ Cr Free, I.
Banking Facility Free, Mobile & SMS
Free.
Only for Government Pensioners
Minimum
Rural / Semi- Urban
SB 219
___________________________________________________________________________________
79

#
SCHEME
(Govt)
11
.
SB Small Account
12
.
S B A/C for Foreign

Students studying in
India
HO/CS&P/65/201213/737/12.01.2013
13
.
OBC Sidhi
(Progressive Saving
Deposit Scheme)
HO/CS&P/42/201314/443/31.07.2013
14
OBC Diamond saving

deposit
HO/CS&P/55/2013-
SALIENT FEATURES
SCHEM
E CODE
Balance
Urban
Metro
Without
Cheque Rs. 20/Rs. 20/Book
SB 220
With Cheque Book Rs. 250/Rs.250/No charges for non-maintenance of minimum balance
No Service Charges for Collection / Discount of Pension
Cheques 2 Remittances aggregating to Rs.10000/- p.m.
free of charge
Account can be opened with relaxed KYC norms
The person who intends to open the account has to
produce a self-attested photograph and to affix a
signature or thumb print, as the case may be on the form
for opening the account in the presence of a designated
officer of the Bank. Balances should not exceed
Rs.50000/- in all their accounts taken together. Total
credits not exceeding Rs.1 lakh in a year and the
aggregate withdrawals and transfers in a month not SB 222
exceeding Rs.10,000/-.
Initial Deposit Amount: Rs.10/- ; Minimum Balance: NIL;
Maximum Balance in the account/s: Rs.50,000/- ;
Maximum amount per transaction- Rs. 10,000/- ; No
Cheque book facility is available. One ATM card free of
charge for the first year. Foreign Remittance not
permitted.
Foreign students on study/training in India upto study
period. Zero balance, jointly not allowed. 50 cheques per
year free, 50withdrawals per half year. ATM/debit
card/internet banking/SMS-all free.
KYC-Valid
Passport/visa/two
photos/proof
of SB 223
admission/fee-receipt/declaration under FEMA/address
proof/letter
from
college
&hostel/rent
agreement/declaration about sources of credit into
accountand local cash up to Rs.5000/- per transaction.
For Women 18 & above. Jointly permitted, if women
name is first. Average daily minimum balance Rs. 1000/.PD a/c 12 m to 120 m minimum Rs.500/- and in multiple
of Rs.100/- in name of any family member name.
SB 225
Insurance cover of Rs. 1 lac free for first year. ATM/debit
card free for first year.(Charges Rs. 100/- afterwards.)
More than one PD a/c can be linked and existing SB a/c
can be upgraded to this scheme.
-Average quarterly balance-Rs.1 lac
-ATM free
SB 226
-Personalized multicity cheques book-free
___________________________________________________________________________________
80

#
SCHEME
SALIENT FEATURES
14/604/26-09-2013
&
HO/CS&P/45/201415/445/02-09-2014
-Personal accident insurance cover-Rs. 5 lac free till

average quarterly balance is maintained
-Locker rent-25% discount
-Stop payment & standing instructions-free
Instant credit of local/outstation cheques after 6 months
of opening of account-upto Rs.25000/--Rate of interestpayable with quarterly rests
-Charges for non-maintaince of 80% of quarterly balanceRs 250/-A/c can be opened by individuals(singly or
jointly).Associations.Trusts,HUFs,Clubs,Societiesetc
subject to domestic deposit criteria of RBI, complying KYC
Guidelines, execution of AOF with Photo, Identity and
Address proof.
OBC Platinum
saving deposit
15
HO/CS&P/55/201314/604/26-09-2013
&
HO/CS&P/46/201415/446/02-09-2014
SCHEM
E CODE
Additional benefits wef 05.09.2014:

-0.25% discount in ROI in Retail Loan, SME &
Agricultural Term Lending subject to Min LendingRate(BR)
- 0.50% discount in Process Fee Retail Loan, SME &
Agricultural Term Lending
-50% discount in DD /RTGS/NEFT
-25% Locker rent concession or Free for 1st year if 3 yrs
rent paid in advance
- Free ABB/Speed Clearing
- Internet Banking/ Mobile Banking
- Free Trf of Fund/RTGS/NEFT through I-Banking .
- Daily Withdrawal limit through ATM increased from Rs.
25000/- to Rs. 50000/- Opening of Demat account at Select Branches-Free
- No charges for A/c Statement & Balance Certificate
- No charges for Signature Verification.
-Average quarterly balance-Rs.5 lac
-ATM free
-Personalized multicity cheques book-free
-Personal accident insurance cover-Rs. 10 lac free till
average quarterly balance is maintained
-Locker rent-50% discount
-Stop payment & standing instructions-free
SB 227
Instant credit of local/outstation cheques after 6 months
of opening of account-upto Rs.50000/-Rate of interest-payable with quarterly rests
-Charges for non-maintaince of 80% of quarterly balanceRs500/-A/c can be opened by individuals(singly or
jointly).Associations, Trusts, HUFs, Clubs, Societies etc
___________________________________________________________________________________
81

#
16
17
SCHEME
SB DBT Deposit
Scheme
Wef-18/12/2013
HO/CS&P/74/201314/834/14-12-2013
OBC Parivaar Saving

Group Scheme
HO/CS&P/49/201415/451 September 2,
2014
Scheme has been
temporarily freezed
vide
HO/CS&P/56/201415/501 dt 19.09.2014
SALIENT FEATURES
SCHEM
E CODE
subject to domestic deposit criteria of RBI, complying KYC

Guidelines, execution of AOF with Photo, Identity and
Address proof.
Additional benefits wef 05.09.2014:
- 0.25% discount in ROI in Retail Loan, SME & Agricultural
Term Lending subject to Min Lending Rate(BR)
- 0.50% discount Process Fee Retail Loan, SME &
Agricultural Term Lending
-Free DD /RTGS/NEFT
-25% Locker rent concession or Free for 1st year if 3 yrs
rent paid in advance
- Free ABB/Speed Clearing
- Free Internet Banking/ Mobile Banking
- Free Trf of Fund/RTGS/NEFT through I-Banking .
- Daily Withdrawal limit through ATM increased from Rs.
25000/- to Rs. 100000/- Opening of Demat account at Select Branches-Free
- No charges for A/c Statement & Balance Certificate
- No charges for Signature Verification.
All Indian citizens entitled for Subsidy /Benefit, on
compliance of KYC Guidelines
-No initial deposit / No minimum balance/ No charges for
non maintaince of minimum balance
-One free cheque book 25 leaves
-Free ATM
-No restrictions in number of credits
-Cheques collection in favour of account holder
SB 228
-Standing instructions free in same branch
-ECS/NEFT/DD issuance at normal charges
-Internet banking not permitted
-Existing SB accounts can be converted in this scheme
-Stipulation of inoperative/Dormant does not
apply, due to non-operation of the account for over
two years
-Those who can open individual OBC Savings Bank
Account can be grouped under OBC Parivaar Savings
Group Account.
- Existing account holders can also bring their family
members (Fresh Accounts) and get the accounts grouped.
- KYC compliance of all individuals is must.
SB 230
- A minimum of two accounts can be grouped under OBC
Parivaar Savings Group Account.
- The grouped family members will select the main person
of the Parivaar for Group Cust ID.
- Minor cannot be a main person for primary group ID.
___________________________________________________________________________________
82

#
SCHEME
and subsequently
defreezed vide
HO/CS&P/70/201415/669 dated
22.11.2014
SALIENT FEATURES
SCHEM
E CODE
Parivaar Minimum Combined Monthly Balance

(MAB):
Metro /Urban- Rs.100000/ Semi Urban /Rural - Rs. 50000/Minimum Monthly Balance in Individual Account:
Metro /Urban- Rs.10000/ Semi Urban /Rural - Rs. 5000/Charges for
not maintaining Minimum Combined Monthly
Balance:
Rs. 150/- p.m. + Service Tax irrespective of Area.
For not maintaining minimum Balance in Individual
A/C.
Rs. 100/- p.m. + Service Tax irrespective of Area.
Waiver in Minimum Balance Charges subject to an
FD of
Rs.5,00,000/- (combined) for Metro & Urban centre or
Rs. 2,50,000/- (combined) for Semi Urban & Rural
Centre.
-Personal accident Insurance free for 1st Year (Death &
Disability-Tie Up arrangement with United India
Insurance) -1.00 lakh per person.
- Interest Quarterly payable
- Personalized Cheque book -50 leaves free in a year
- 0.25 %Concession in ROI for Retail Loans, SME &
Agriculture (Term lending) on the prevailing rate (subject
to charging of Minimum Lending rate i.e. Base Rate )
- 50% discount in Processing Fee for Retail Loans, SME
and Agriculture Term lending
- 50% discount in Demand Draft facility / RTGS/ NEFT
commission
- Transfer of funds/RTGS/ NEFT through I-banking - Free
- ATM/Debit Card (Rupay) - Free (Issuance & Renewal)
- ABB Facility/ Speed Clearing Free
- Internet Banking & Mobile Banking - Free
- Standing Instructions & Stop Payment - Free
- Locker rent for new customer (subject to availability)
Discount of 25% in the locker rent. Or Free Locker for 1st
year in case of deposit of three years advance rent is
made
- Opening of Demat Account (at Selected Branches) -Free
for main person of the group and 50 % discount for
___________________________________________________________________________________
83

#
SCHEME
SCHEM
E CODE
SALIENT FEATURES
others
Current Account
1.
2.
3.
4.
5.
SCHEME
SALIENT FEATURES
Minimum
Rural / Semi- Urban
/
Balance
Urban
Metro
With
Cheque Rs.250/Rs. 500/Book
Normal Current A/C
A/C can be opened by NRI / PIO. In Indian Rupees. Minimum
Balance Rs.1000/NRE Current Funds from abroad. Any resident going abroad for gainful
Account
employment can open NRE account. Joint a/c with Residents /
Non-Residents permitted.
P.A. Holder can operate the account. Freely Repatriable
A/C can be opened by NRI / PIO. In Indian Rupees. Minimum
Balance Rs.1000/Local Funds/Funds from abroad. Any resident going abroad for
gainful employment, his domestic account will be converted
NRO Current
into NRO a/c.
Account
If he/she does not have any domestic a/c, he/she can open a
NRO a/c.
Joint a/c with Residents/Non-Residents permitted. Nonrepatriable except to the extent of USD 125000 per financial
year including sale proceeds of immovable property.
In Foreign Currency. USD, GBP, Euro, Canadian $ and
Australian $.
EEFC CA
Funds from abroad. Any type of remittances coming from
abroad can be kept in EEFC A/C. Freely Repatriable.
Branches maintaining Current A/Cs of Extension Counters,
Lead Bank Offices, STCs, Spl. Collection Centres, Stationery
Imprest
Godowns, Central Cash Centres, Currency Chests, Satellite
Account
Offices, Assets Recovery Cells, Inspectorates, Service
Branches, MICR Centre.
Current
Account
(General)
SCHEME
CODE
CA 101
CA 102
CA
103
CA 104
CA 105
6.
Bankers CA
7.
CA
Margin Margin Money kept in C/As against issue of L/Cs, Guarantees,
CA 107
Money
etc
Current A/Cs of Banks maintained with the Branches
CA 106
___________________________________________________________________________________
84
Current Account
#
SCHEME
8.
Domestic
RFC Scheme
9.
10.
11.
12.
13.
SALIENT FEATURES
Residents In Foreign Currency. Freely Repatriable
SCHEME
CODE
CA 108
Flexi Fixed Deposit Average Quarterly Credit Balance

Rs.2,00,000/Balance above Rs.200000/- will automatically be converted
CA 109
into FDR/CDR.
No Charges for Cheque Books. 50% concession in NEFT/RTGS
charges
Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and
54G of Income Tax Act, 1961 allowed. Option to open Account
A or B.
Current
Interest or withdrawal from Account B can be made through
Account
Account A only. Introduction of the depositor need not be
Capital Gains
insisted upon.
Scheme
Joint account not permitted. Cheque Book facility not allowed.
CA 111
Account A
Withdrawal of Interest does not require permission from IT
for SB/CA
authority like the withdrawal of Principal amount. Special
Account B
Account Opening Form to be obtained in duplicate. The forms
for TD
as obtained during the course of operation of account /
withdrawals /closure of accounts to be submitted to the IT
authority within 7 days of the close of the month.
Dividend
A/Cs opened by the Companies to pay Dividend.
CA 112
Warrant CA
Minimum
Rural
/
Semi- Urban
/
Balance
Urban
Metro
With Cheque Book Rs.1000/Rs. 2500/Free Personal Accident (Death) Insurance Cover of Rs.1 Lac
(1st year)after that premium for insurance coverage will
be charged @Rs.9/-+Service Tax
Pragati
CA Waiver of 100% ABB Charges during the 1st year.
CA 113
Scheme
Waiver of Demat A/C maintenance charges for one year.
Additional Benefits :(For A/Cs maintaining average daily CA
balance of Rs. 5 Lac or more)
Free Draft Issuance Facility, Free RTGS Facility up to Rs.5
Lacs.
(However, mandatory RBI charges plus applicable service tax
shall be recoverable).
A/C opened by our Branches/Offices for online remittance of
E-TAX AC
CA 117
TDS Deducted
Current
Account
Premium
Gold - FFD
TERM DEPOSITS
#
1.
SCHEME
AMOUNT
Minimum
PERIOD
07 days to
SPECIAL FEATURES
Interest Payable Quarterly
SCHEME
CODE
TD 301
___________________________________________________________________________________
85
TERM DEPOSITS
#
SCHEME
Fixed Deposit
Cumulative
2. Deposit
AMOUNT
5.
Suvidha
Deposit
Capital Gains
Scheme 1988
Account A for
6.
SB/CA
Account B for
TD
SPECIAL FEATURES
SCHEME
CODE
(Qty. Liq.)
TD 302
(Without
Liq.)
TD 308
Diff.Intt.Rate
TD 311
FDR-Banks
TD 312 Govt
Spon
Subsidy
TD 303
TD 309
Diff.Intt.Rate
TD 310
Court Claim
Rs.100/-
120 months
Multiples of
Rs.100/-
6 months to
120 months
In multiples
of 3 months
Quarterly Compounding
Lump Sum payment on maturity
At Call
Issued in favour of beneficiaries

on account of applicants
Zero Interest
TD 304
12 months
to 120
months
Interest is paid on Monthly

basis.
Principal paid on maturity.
TD 305
3. Call Deposit
Monthly
Income
4. Deposit
PERIOD
Amount is
accepted so
that Monthly
Income is in
multiples of
Rs.10/Minimum
Rs.2000/In Multiples
of Rs.1000/-
12 months
to 120
months
Partial withdrawal in multiples
of units of Rs.1000/- allowed.
Remaining units continue to
earn interest at Contracted
Rate.
Exemption from Capital Gains
Tax u/s 54, 54B, 54D, 54F and
54G of Income Tax Act, 1961
allowed.
Interest or withdrawal from
Account B can be made
through Account A only
Introduction of the depositor
need not be insisted upon.
Joint account not permitted.
Withdrawal of Interest does not
require permission from IT
uthority like the withdrawal of
TD 306
TD 313-FDR
TD 314-CDR
___________________________________________________________________________________
86
TERM DEPOSITS
#
7.
SCHEME
NRE
8. NRO
9.
FCNR (B)
AMOUNT
In Indian
Rupees.
Funds from
abroad.
PERIOD
SPECIAL FEATURES
SCHEME
CODE
Principal amount. Special

Account Opening Form to be
obtained in duplicate. The forms
as obtained during the course
of operation of account /
withdrawals /closure of
accounts to be submitted to the
IT authority within 7 days
A/C can be opened by NRI/
PIO.
Any resident going abroad for
gainful employment can open
NRE account. Joint a/c with
Residents not permitted
TD 321-FDR
1 to 10 years
(conditional). Joint a/c with
TD 325-CDR
Non-Residents /Residents (with
conditions) permitted.
Freely Repatriable. Exempted
from all taxes.
In Indian
Rupees.
Funds Local/
from abroad.
As applicable
to domestic
TD
Funds from
abroad.
In Foreign
Currency
USD, GBP,
Euro,
Canadian $
and
Minimum 12
months
Maximum 5
years
A/C can be opened by NRI/

PIO.
Any resident going abroad for
gainful
employment,
his
domestic account will be
converted into NRO a/c. If
he/she does not have any
domestic a/c, he/she can elect
to open a NRO a/c.
Joint a/c with Residents/NonResidents permitted.
Non-repatriable except to the
extent of USD 125000 per
financial year including sale
proceeds
of
immovable
property.
No Tax exemptions.
A/C can be opened in TD only
by NRI/ PIO. Any resident going
abroad for gainful employment
can open FCNR (B) account.
Joint a/c with Non Residents/
Residents
(close
relative)
permitted.
Freely Repatriable.
TD 322/323FDR
TD 324-CDR
TD 331-FDR
TD 332-CDR
___________________________________________________________________________________
87
TERM DEPOSITS
#
SCHEME
AMOUNT
PERIOD
Australian $
& Japanese
yen.
10.
RFC
Progressive
11. Deposit(PD)
12.
OBC Adhaar
(VPD)
Funds from
abroad.In
oreign
Currency.US
D, GBP,
Euro,
Canadian $
and
Australian $.
Multiples of
Rs.10/-
Core
monthly
installment
in Multiples
of Rs.10/Maximum
Rs.50,000/-
SPECIAL FEATURES
SCHEME
CODE
Exempted from all taxes.
Minimum 12
months
Maximum 5
rears
6 months to
120 months
(In multiples
of 3 M)
12 months
to 120
months
Any returning NRI who has

stayed abroad can open RFC
a/c.
Joint a/c permitted/Freely
Repatriable.
Amount is deposited in monthly
Installments.
Lump Sum Payment on
maturity.
TD 333-FDR
TD 334-CDR
PD 315
The minimum installment is
fixed at Rs 10/ and in
multiples thereof with a
maximum of Rs50,000/- p.m.
Monthly installments paid
during the tenure of the
deposit account shall not
PD 316
exceed in any month, FIVE
times of the core amount or
Rs50,000/-, whichever is less.(
SI facility - maximum two
deposits in a month be
allowed only in case the
customer opts for SI
facility)
___________________________________________________________________________________
88
TERM DEPOSITS
#
SCHEME
Flexi Fixed
13. Deposit
AMOUNT
PERIOD
SPECIAL FEATURES
Operative
Accounts
Min. avg.
quarterly
balance
Rs.
Auto
Sweep
Unit
Rs.
Reverse
Sweep
Unit
Rs.
SB Smart
Save-SB
211
CA
Premium
Gold/-CA
109
25,000/-
5000/-
2000/-
200,000/-
25,000/-
25,000/-
SCHEME
CODE
Penalt Period of
y/
FFD
qtr
for
min.b
TD376/382 al.
FDR
Rs.
150/- 90
days
TD 379 5 years
FDR
1000/ 45
day to 1
1Year
IT PRODUCTS OF OUR BANK

CATEGORY
31.03.2012
31.03.2013
31.03.2014
31.03.2015
On site ATMs
932
1087
1754
2110
Offsite ATMs
331
365
361
372
Mobile ATMs
13
13
Total ATMs
1270
2128
2495
1452
Total Outlets
3042+19(EC)
3452
4254
2251 branch
+2495
ATMs=4746
POS Terminal
1201
1355
1659
1911
IT PRODUCTS & SERVICES
Fig in Lac
31.03.2015
74.77
Product
31.03.2012 31.03.2013
31.03.2014
ATM Card Base
32.71
39.09
49.71
Customer
Registered for SMS
24.81
36.77
46.64
58.86
Alert
I banking
4.46
5.57
6.67
8.17
customers
Mobile Banking
0.19
0.35
0.55
0.81
Customers
___________________________________________________________________________________
89
Circular no. HO/DIT/ATM/5/2014-15/88 8th May, 2014, it has been circulated to Use Standardized
font in official correspondence and documentation
All official documents should henceforth have the standardized Font viz. Arial with Font
size of 12 and Single Line Spacing.
ATM Based Services
Cash Withdrawal - The cardholder can withdraw cash from our Banks ATMs or the ATM of
other member banks of ATM consortium viz. VISA and NFS.
The maximum permissible amount of cash withdrawal per day is Rs.25,000/- .
The maximum limit per withdrawal is Rs.25,000/- on our Bank ATM and Rs.10,000/- on other
Bank ATMs. For International GOLD VISA Debit Card - Daily cash withdrawal and POS
Limit:Rs.50,000/- each.
Fast Cash - The cardholder can withdraw cash as per pre-defined amount. This option is
available for customer on our Bank ATM only where customer may select out of four option
for withdrawal of cash i.e Rs. 1000/- Rs. 2000/- Rs. 3000/- and Rs. 5000/- and the ATM
dispenses the cash accordingly. Through this option, customer need not enter amount, thus
makes the cash withdrawal faster, and is therefore called FAST CASH. The maximum
withdrawal limit is same as in point (i) above.
Balance Inquiry - The balance in the account can be viewed through the ATM.
Mini Statement - The cardholder can obtain the statement containing last 5 transactions in
the primary and secondary account alongwith details of available balance.
Change of PIN - 'Change PIN' option can be used by the cardholders at the OBC ATMs to
change the PIN of their Cards as and when desired by them.
Fund Transfer - Card holder can transfer fund between the accounts linked in the card. In
order to perform Fund Transfer, cardholder has to select from and to account number and
enter the amount he wants to transfer.
Cheque Status Inquiry - Cardholder can use the ATM to inquire the status of the Cheques
issued in his account.
Stop Cheque Payment - Cardholder can stop the cheque payment in his account using this
ATM.
TAX Payment through ATM's - Now Cardholders of Orienatl Bank of Commerce can
register themselves for Income Tax payment through ATM and can make the payment of
Income Tax through any of our Bank's ATM. The limit for maximum permissible amount is Rs.
1.00 lac per day.
MOBILE BANKING REGISTRATION & DEREGISTRATION - CARDHOLDER CAN REGISTER AND DEREGISTER THE
MOBILE BANKING FACILITY.
SMS ALERT SERVICE REGISTRATION/CHANGE IN MOBILE NUMBER FOR SMS ALERT
The customers can avail SMS Alert services by registering the mobile no through ATM.
ATM Cards - Our Bank is presently offering following types of ATM cards to our customers:
i. ATM cum Debit Card International debit Card
It can be used both at Point of Sale (POS) terminals and ATMs.
It is a global card and is accepted across the globe at ATMs or POS with VISA logo.
___________________________________________________________________________________
90

.
All Savings Bank and Current Account holders in individual category are offered our
Card.
On 14 Jan 2013 the bank has conversion of existing ATM card to ATM cum debit cards
and issuance of ATM cards with POS facility in future by default.
The customers who do not want additional POS facility on their ATM cards have been
requested to send their intimation to the Bank on card@obc.co.in or through Toll Free Nos.
1800-180-1235.
VISA International Gold Debit Card ( 10/12/2013)
Any ATM Card holder who have used their card at least once in foreign locations is eligible
for this gold Card .
1. Daily cash withdrawal and POS Limit:Rs.50,000/- each.
2. Add on Gold Debit Card where Primary Card is Gold Debit Card.
3.EMV( chip Based) cards also provides interoperability with the global payments infrastructure
consumers with EMV chip payment cards can use their card on any EMV-compatible payment
terminal.
4. One time Issuance charge ofRs.100/- and Annual Charges Rs.500/-.
ii. ATM card for School/College Students Cashmate Card

This card is issued in the SB Vidyarthi Scheme (Code SB 217 - now scheme closed)
This Card also offers overdraft facility up to Rs.1500/- to the Card holder students to
meet their emergency, unforeseen expenses like Books, Stationary etc.
This card is an ATM cum debit card. It is VISA international Card.
Mode of operation 14 is permitted for this scheme.
iii. ATM card for Farmers Oriental Green Card
This card is a ATM cum debit card.
This is issued in the A/cs under Green Credit Card (GCC) Scheme and Oriental Green
Card (OGC) Scheme i.e. OD511 and CC404.
IV Rupay ATM cum Debit cards and kisan Card
RuPay is the Indian domestic card payment network set up by National Payments
Corporation of India (NPCI) at the behest of banks in India.
Such arrangement would help Indian Banks to cut down on their highly paid
membership fee to International consortiums such as VISA, Master and American Express
which shall be issued to the customers of the Bank through Ready Kits as well as
Personalized Cards
The RuPay cards can be issued as Primary card as well as Add-on card in addition to
existing VISA Cards, through DCREQ
Eligibility criteria for Rupay ATM cum Debit card issuance and validity period of card
shall remain the same as is applicable for existing ATM-cum-Debit card
The annual charge on Rupay ATM cum debit card is nil
Interbank ATM Usage Facility
As of now, our Banks card holders can perform Cash Withdrawal and Balance Inquiry on the
ATMs of member banks of ATM sharing consortiums viz. VISA and NFS. Similarly the cards of
other member banks under these consortiums are accepted on all our ATMs and they can
perform Cash Withdrawal and Balance Inquiry operations. As per RBI directives the maximum
___________________________________________________________________________________
91

.
cash withdrawal from ATM by customer of other bank is limited to Rs10,000/- per
transaction.
Our customers who do financial and non financial transactions on other Banks ATM and other
Banks customers who do financial and non financial transactions on our Banks ATM shall be
charged Rs 20.00 on Financial Transaction and Rs 9.00 shall be charged for non financial
transaction viz balance inquiry, mini statement and PIN change from the 6 th transaction
onwards( 5 Transactions are Free*). These directives effective from July 01, 2011.
The number of mandatory free ATM transactions for savings bank account customers at
other banks ATMs is reduced from the present five to three transactions per month
(inclusive of both financial and non-financial transactions) for transactions done at the
ATMs located in the six Metro centres, viz. Mumbai, New Delhi, Chennai, Kolkata,
Bengaluru and Hyderabad.
Daily Transaction Limit: Visa Card and Repay card

i. Total daily cash withdrawal limit from an account - Rs25000/ii. A customer can withdraw upto Rs25000/- in a day from our Bank ATM.
iii. A customer can withdraw upto Rs10000/- in a day from other Banks ATM.
iv. A customer can purchase upto Rs25000/- in a day at POS through our ATM cum Debit
card. If it is a Gold Card then limit is Rs. 50000/- per day.
ENABLING PIN PROMPT FOR POINT OF SALE (POS) TRANSACTIONS.
As per the circular DIT dt 13.03.2013 the bank has made PIN as mandatory for doing
transaction through POS terminals through ATM cum Debit Cards. The PIN value would be
same as being used for undertaking ATM transactions.
RBI guidelines,
all banks need to comply with this guideline by June 30, 2013 the
customers may come across POS machines of other Banks wherein POS machines are not
compliant for accepting PIN value and at such terminals the transaction would be
approved as signature based transaction as is being done in current scenario.
1. Eligibility Criteria
Any customer having a Savings Bank / Current Account / Over Draft A/c in his / her
individual capacity and not in the representative capacity, Staff OD accounts. The request
for ATM card is given through DCREQ option in Finacle.
The following instructions /guidelines must be followed for issuance of cards:
i.
Card can be issued to a customer provided his/her age is 14 years or more and he/she
is a literate. Following customers are not eligible for issuance of ATM / Debit Card:
i) Customers below 14 years of age
ii) Illiterate
iii) Insolvent
iv) Persons operating accounts in representative capacity
ii.
iii.
The maintenance of primary account is compulsory for issuance of the cards. The
primary account refers to the customers account selected by the customer for debiting
the withdrawals in the normal course.
No minimum deposit/balance in SB account for the Cards is required for issuance of
cards, though the minimum balance norms prescribed as per existing guidelines
applicable to these account will continue to be in force.
___________________________________________________________________________________
92

.
iv. Issue of Cards in joint accounts of the individuals having operational clause as
Operation Jointly' is not permitted.
v. Issue of Cards is permitted in joint accounts of individuals provided the applicant has an
authority to operate the account singly. However, all the joint account holders should
authorize the applicant to avail the facility by counter signing the application.
vi. All the transactions arising out of the use of the Card/PIN allotted to the authorized
customer of the Joint Accounts, shall be binding on all the Joint Account Holders
concerned jointly and severally. In case the Bank subsequently receives instructions
contravening the accepted mandate of the Joint Account Holders, the Card will be
blocked immediately under advice to the concerned account/ card holders.
vii. The Cards will also be issued to NRI customers in their NRE accounts. At present Cash
Deposit facility is offered through our selected ATMs. Cash deposited by NRI customers
in the ATMs will be credited to their accounts as per RBI/ FEMA guidelines issued from
time to time.
viii. The persons with blindness, low vision, and other disabilities are offered all banking
facilities such as cheque book including third party cheques, ATM facility, Net banking
facility, locker facility, retail loans and Credit Cards etc. without any discrimination
ATM-cum-Debit cards can also be used for conducting online transactions w.e.f
10/11/2010- VBV registration (Requirements for availing Verified By VISA service)- OBC
Debit Card should have CVV values. OBC Debit Card is enabled for POS i.e. should be full limit
card. OBC Debit Card holders mobile no is enabled for SMS alert service.
2. Chargeback Procedure for resolution of cardholders complaints
The customers using their OBC Cards can perform transactions through Banks own ATM
network as well as ATMs of other banks having ATM sharing arrangement with MITR /
NFS / VISA thereby giving them access to a vast network of 10 lac ATMs globally for
operating their account. The Proton Card of our Bank is an International VISA Debit card
which can also be used at POS terminals to make payments through cards. In this case
the card holders primary account linked with the card is debited online.
Issuer or Card Issuing Branch: An issuer is a Bank (in case of other Bank card) or
branch (in case of Banks own card) who is issuing the card and with whom customer has
his / her account.
Acquire or Acquiring branch / ATM/ POS: An acquirer is a Bank (in case of other
Banks ATM/POS) or branch (in case of Banks own ATM/POS) on ATM / POS the
transaction is done. This is also further referred as Acquiring Bank, Acquiring Branch and
Acquiring ATM/POS.
What is Charge Back?
Some time the transaction carried out by the cardholder is not completed or partially
completed and may not get matured due to various reasons including power fluctuation,
delay in data signals, network speed or delay in response from the Banks host server etc.
Depending upon the status of the transactions system automatically rollback most of such
incomplete transactions. However status of some of the transactions if found in the
doubtful stage does not get rollback and through investigations the status of cash
___________________________________________________________________________________
93

.
dispensation is then ascertained from ATM where such disputed / doubtful transaction
was carried out.
Problems and customer complaints specially related to non-dispensing or short dispensing
of cash, wrong debit in account, dispensing of cash and wrong reversals to customer
account etc need to be appropriately raised on Card Operation Centre (COC),
Secunderabad by the card issuing branch of the customer with required details of such
transactions. It is the responsibility of the Card Operation Centre (COC), Secunderabad to
resolve such complaints and sent necessary advice to the branches. This mechanism is
called chargeback.
Types of Chargebacks
1. Inter Bank Chargeback
i) Chargeback raised by US:
Under the following circumstances the charge backs will be raised by us.
a. Dispute with regard to our customer a/c debited but cash not received.
b. Dispute with regard to cash dispensed by our ATM to other bank card holder
but not reimbursed through settlement.
c. Dispute with regard to our customer a/c debited in respect of merchant
transaction at POS terminal
ii) Chargeback raised on US:
Under the following circumstances the charge backs will be raised on us.
a. Cash received by our card holder for the transaction done at other Bank ATM
but not reimbursed to other bank through settlement due to the reason that our
cardholders account is not debited or transaction is reversed at our end.
b. Dispute of other bank cardholder about non-dispensation of cash at our ATM
c. Successful Merchant transaction of our cardholder at a POS terminal but not
reimbursed to other bank through settlement due to the reason that our
cardholders account is not debited or transaction is reversed at our end.
2. Intra Bank Chargeback
Disputed ATM withdrawal transaction done by the cardholder of our bank at our own
ATMs
Re-presentment: Some time the debit transaction pertaining to cash already withdrawn
by the card holder gets reversed by crediting the customers account either by the system
or as part of wrong settlement entry. In such cases the acquirer branch / bank may
represent such cases and may claim the amount and ask to correct such accounting
entries. This mechanism is called Re-presentment.
SBI-Oriental Bank of Commerce Co-branded Credit Card - Bank has entered into an
MOU with SBI Cards and Payments Services Private Limited (SBICPSL) on 22.09.2011 for
issuing Co-branded Credit Cards to our employees and customers.
The cards shall be issued in two variants as under 1.Secured 2.Unsecured
Secured Cards shall be issued against the lien marked on the Term Deposit of the customer.
Only Credit Card Cell at Head Office is authorized to mark/ lien for SBI-OBC Secured Credit
Card .Unsecured Cards shall be issued without any security.
Annual Charge :- Rs 500 for Gold card and Rs 3000 for Platinum card.
___________________________________________________________________________________
94

.
Note:
1. The Email Id OBC.SBICARD@GE.COM needs to be referred only by the Branch
Managers & Oriental Bank of Commerce officials .
2. The Email Id for the SBI- Oriental Bank of Commerce customers remains
feedback.gesbi@ge.com
Note -1. ATM Helpdesk no toll free no 1800345-242 merge with no 1800-1801235
2. It is observed that only 31.48% of total transactions are being carried out through
ADCs.
Internet Banking Services
Internet Banking enables a customer to perform basic banking transactions through Internet
from anywhere in the globe. It is available 24 hours a day, 365 days a year and account can
be operated anytime / anywhere as per customer convenience. Customers should use
Internet Explorer version 7.0 or later version for accessing IBanking.
Our Bank is offering two types of Internet Banking:
Retail Internet Banking (https://www.obconline.co.in): For individual customers.
The customer can opt for either Enquiry only facility or Transaction facility. It can be
offered to any Saving/ Current/ CC/ OD account holders. Only Query based facilities shall
be provided to jointly operated accounts. Transaction facility shall not be provided for
such accounts.
Corporate
Internet
Banking
(https://www.obconline.co.in/corp):
For
institutional Customers/ Big Corporates. This has features like Mass upload of Salary,
Online RTGS & NEFT, Online trade finance requests request for LC opening, BG issue,
Bill lodgment etc, Feature of Maker/Checker, Feature of Role definition, Feature of
adjusting/defining various limits by corporate administrator itself etc.
Bank has implemented Second Level of Authentication i.e. OTP ( One Time
Password) for Net Banking Transactions, which is sent to Registered Mobile &
Email Ids.
Some of the facilities offered are:
o Accounts Related Operations:
Online Balance Inquiry, View transactions, Statement of Account For a given period,
Cheque Status Inquiry, Clearing Instruments Inquiry, Stop Payment of Cheques etc.
o
Fund Transfer Operations:

Funds Transfer to own accounts, Intra Bank Fund Transfer (to other accounts of OBC), Inter
Bank Fund Transfer (To accounts of other banks through NEFT/RTGS).
the NetBanking customers shall be able to make Loan EMI payment to their own
Account as well as to 3rd Party Loan Account using Transfers >> Third Party Transfers
within Bank Option.
___________________________________________________________________________________
95

o
Payments:
External Payments like LIC of India for Premium Payments, IRCTC for Railway Reservation, DB
(Intt) Stock Brokers Ltd and Sharekhan for Funds Transfer Facility for Shares Purchases,
Payment of Direct Taxes, Payment of Telephone / Mobile / Electricity bills etc.
Functionality To Open Online FDR/CDR (e-FDR/e-CDR)
The NetBanking customers shall be able to open Online FDR/CDRs using Requests >>
e-FDR/e-CDR Option since October 2012
The facility to create online e-FDRs/ e-CDRs using Retail NetBanking facility has been
activated only for customers where mode of Operation of the Account is Self,Either
or Survivor or Former Or Survivor.
Customers are able to open online FDRs / CDRs with the following scheme codes
1. CDR(Cumulative) TD303
2. FDR Without Liquidation (Fixed Deposit) TD302
3. NRE CDR TD325
4. NRO TDR TD324
5. NRO FDR Non Liquidation TD323
o Functionality to open tax saving CDR
a new functionality has been implemented in NetBanking system using which Retail
NetBanking Customers shall be able to create Online Tax Saving CDRs belonging to
scheme TD-341. Entering PAN number is mandatory for this scheme and PAN number
must be pre-registered at branch office
Deposit amount is minimum 5000 to 100000 (multiple of 100) and period is 60 month
to 120.
o Online Share Trading in Collaboration with IDBI Bank
o Request for Issuance of Cheque Book, PO/DD
NetBanking Customers can also put in their request for issuance of Cheque Book, and
Demand Drafts, which are processed at backend by the Relationship Manager.
In addition to above, recently introduced following additions in features of Internet Banking:(i) Funds Transfer limits have been increased to Rs.3/- lacs per transaction and
Rs. 5 lacs per day.
(ii) Internet Sign on and Transaction Password expiry limit has been reduced from 365 days
to 90 days, to make it more secured.
NetBanking facility is based on the unique Customer-Id assigned to customers, while opening the
account(s) for the first time. The NetBanking facility uses Customer ID to automatically links all the
accounts of a customer and facilitate Account related operations viz. Inquiry for account balance,
transactional details and to perform various financial transactions. In case, the customer is
maintaining accounts with different Customer Ids, then the Branch may modify the Cust. Id (by using
Finacle CCA option) of additional accounts. The Cust.Id should be same as of the Main Operative
Account of the Customer. By doing this, all accounts linked with the common Customer Ids will be
reflected automatically in the Internet Banking Application.
Internet Banking facility can be availed by NRI customers also by filling the Internet Banking
application form and sending it to the branch where they are maintaining their account.
The request for retail Internet Banking facility also is registered using the DCREQ menu option in
Finacle. The detailed procedure is given later. Once the entry is made in the DCREQ menu, the
___________________________________________________________________________________
96
Internet Banking Cell at Secunderabad shall download the data of such customers and generate their
respective User-IDs and Passwords. User-Id letters will be printed by Internet Banking cell,
Secunderabad and shall be delivered to Customers address as mentioned in the Internet Application
Form. Sealed Passwords will be sent to concerned branches only. Customers will be instructed in
their letters to collect the same from branch only.
In case customer forgets Ibank password, the pin reissue should be register in Ideas software.
As per the DIT circular dt 02.08.13 Ibank has developed new functionality to deliver the NetBanking
passwords to customers mobile number instantly, which are registered with Bank for SMS Alerts
facility. This functionality is in addition to existing system of delivering the password via Courier.
Request for Add-on User.Id for Joint Accounts: After obtaining written request from the
Customer and verifying their credentials, Branch Head should give email request to the Internet
Banking cell, Secunderabad (ibank@obc.co.in) and provide full particulars of the Customer for
generation of additional User Id(s). They should provide details viz. existing User.Id, Account Type &
No., Account holder name and Mode of Operations, Delivery address etc.
ASBA - APPLICATION SUPPORTED BY BLOCKED AMOUNT:ASBA is an application for subscribing to an issue (IPO/Right issue) and the new initiative of
SEBI for the welfare of Investors, containing an authorization to block the application money
in a bank account maintained with Self Certified Syndicate Bank (SCSB). SCSB is a bank
which offers the facility of applying through the ASBA process. ASBA is gaining importance
day by day and the customers are demanding this facility. It is beneficial to both the
customers as well as the Bank because the amount remains in the bank account of the
customer till allotment is finalized and actual amount equal to allotted shares is only debited
instead of total application amount. It helps the Bank not only to retain existing customers
but also to attract new customers.
Under ASBA process, an ASBA investor shall submit an ASBA physically or electronically through the
internet banking facility, to the SCSB (designated branch) with whom the bank account to be blocked,
is maintained. The SCSB shall then block the application money in the bank account specified in the
ASBA, on the basis of an authorisation to this effect given by the account holder. The application
money shall remain blocked in the bank account till finalisation of the basis of allotment of the issue
or till withdrawal/ failure of the issue or till withdrawal/ rejection of the application, as the case may
be. The application data shall thereafter be uploaded by the SCSB (Controlling branch) in the
electronic bidding system through a web enabled interface provided by the Stock Exchanges.
NOTE : ALL THE BRANCHES ARE AUTHORISED FOR ASBA
Mobile Banking
Mobile phones as a medium for extending banking services have off-late been attaining
greater significance. The rapid growth in users and wider coverage of mobile phone networks
have made this medium an important platform for extending banking services to customers.
Bank has launched Mobile Banking facility using which customer will be able to make Fund
Transfer and also information based services such as SMS Alerts, Balance Inquiry etc.
OBCmPay Launched vide HO/ DIT / 40 /2009-10/ 822 dated 20.02.2010
The ever expanding network of Mobile Phone users, which has crossed the 600 million mark,
has opened up new vistas for the Bank to expand the Banking Services through the channel
of Mobile Phones. Our Bank have rolled out the latest IT enabled services named
___________________________________________________________________________________
97

.
OBCmPAY for the customers of our Bank, which can be availed by them using their mobile
phones.
RBI Guidelines
RBI has come up with its guidelines on Dt. 20.10.08 and further on 24.12.09, some of
the important guidelines are given below The services shall be restricted only to customers of banks
The guidelines issued by the Reserve Bank on "Know your Customers (KYC)", " Anti
Money laundering (AML)" and combating the Financing of Terrorism (CFT) from time
to time would be applicable to mobile based banking services also.
Customer complaints/grievances arising out of mobile banking facility would be
covered under the Banking ombudsman scheme 2006( as amended up to May 2007).
Banks are permitted to offer this service to their customers subject to a daily cap of Rs
50,000/- per customer for all types of transactions summed together.
Prerequisite: Any Customer of Bank having Java enabled Mobile phone irrespective of the
Mobile Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this
service.
Services offered through Oriental Banks Mobile Banking Services
Account Balance Enquiry
Mini Account Statement
Intra Bank Fund Transfer
Mobile to Mobile
Mobile to Account
Inter Bank Fund Transfer through NEFT
ATM Locator
Branch Locator
Chq Status Inquiry
Chq stop payment
customers can make payment to various types of merchants :Mobile top-up / DTH
top-up (Oxi Cash etc.) ,Insurance premium payment for selected companies,Online
shopping,Over-the-counter payments , Fees payments to schools / colleges / universities
,Payment of Electricity Bills and other Utility Bills payment,Travel & Ticketing for Railway
(IRCTC ) and Air
Registration: The customers can avail OBCmPAY services by registering either by visiting
the Branch and submitting the form or by registering through ATM. Command is MOBNKRQ.
Customers can alternatively visit any ATM of Oriental Bank of Commerce and register
themselves using their debit card.
InterBank Mobile Payment Services (IMPS): NPCI (National Payments Corporation of
India) has launched the facility of IMPS (Interbank Mobile Payment services) for integrating
Mobile Banking Services being offered by various Banks through National Financial
Switch(NFS) network.
This new facility enables instant Inter Bank fund transfer and credit to beneficiarys account
round the clock on all days
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98

.
Customers not registered for Mobile Banking services can receive fund to their account
through this service by registering for SMS Alert application and retrieving MMID (Mobile
Money Identifier)
by sending SMS MMID to the number 9223173923 Remitter.
LAUNCH OF NUUP BASED MOBILE BANKING
National unified USSD ( Unstructured Supplementary Service Data )platform basedf mobile
banking was launched .
In the earlier Mobile Banking, customer have to install Mobile Banking Application on their
Mobile Phones to avail the facility and is restricted to the customers having smart phones /
advanced phone instruments. This prevent users having basic phone instrument from availing
Mobile Banking Services.
NUP platform obviates the need for installing application on the mobile phone and enabled
users having basic mobile phones also to use mobile Banking .
The customer need not to have a GPRS or any other data connection on their mobiles. They
can use the services from any GSM mobile which has a calling capability . further NUUP does
not require any JAVA of software to be downloaded on the mobile . It can work on even the
basic GSM Mobile. CDMA mobiles are presently not supported.
SMS Alerts
SMS alerts are mandatorily for all card based / Net Banking transactions
The Banks SMS Alert Services are capable of enabling only interested customers and for
those Alerts as selected by them. Any Customer of Bank having Mobile phone irrespective of
the Mobile Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail
this service.
These services are of two types i.e. Push Based Alerts and Pull Based Alerts:
Push Based Services: These Services facilitate automatic transmission of SMS to the
customers chosen mobile number for various transactions in his account and cover
following: Credit/ Debit alerts for amounts specific to individual customers.
Cheque clearing intimation alerts
Weekly balance alerts to all/ specific accounts
Transactions happened through various delivery channels viz. Internet Banking, ATM
etc.
Pull Based Services: These services enable the customer to initiate request from his mobile to a
designated number for availing various facilities, which are as below:o Account Balance for one/multiple accounts, if any
o Mini Statements
For availing the above Pull Based services the customer has to send an SMS with the
following key words followed by the account number to Mobile number 09915622622.
Key Word
Service
ACBAL
Account Balance
STM
Mini Statements
i.
The Customer has to bear the normal outgoing SMS charges as per the tariff applicable to his
mobile connection. However, initially no Bank Charges are being levied for these Services. The
customers having valid ATM card can register their mobile numbers from any of the Banks
ATMs by using following menus:
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99

Other Requests Services for IT Products SMS Alert Registration.
Process flow for enabling the customers forOBC SMS Alert Services: The
command for enabling SMS Alert is SMSRQ.
1. For new customers, the customer should have opted for SMS by ticking in the SMS Alert
option column in the account opening form O.F.-1B. For old customers, separate SMS
Banking Application form should be obtained.
2. Branch must ensure that the customer is fully authorised to make query or conduct
transactions on the accounts mentioned in application form. For this Mode Of Operation
of the account must be checked carefully.
3. Use SMSRQ Menu option of the Finacle, and enter the Mobile Number, Account number,
threshold limit for receiving alerts and other details of the Customer.
4. While keying in the Mobile Number please do not prefix any thing before the Mobile
Number. The system automatically prefixes91 after commiting of the record.
5. Press Y in front of various Options for enabling Customer for particular type of Alert.
6. To Commit the input, type C and press F4 key.
After committing the SMSRQ operation in FINACLE, the SMS Alerts Application shall
automatically start generating SMS for the type of transactions opted by the customer.
Note : wef 01-02-2014 bank will charge Rs.15/- per quarter for SMS Alert Facility.
Name of Event
Card
Based
Transactions
(ATM)
Instrument based or cash
transactions)
Frequency
Real Time
Remarks
Irrespective of any amount
Real Time
Credit >=Rs. 10000.00 and Debit >=Rs.

5000.00
Fortnightly Balances
transactions
2nd & 4th Sunday

of tehmonth
4
5
6
7
8
Deposit Maturity
Loan EMI Notice
Minor to Major
Aadhar Seeding Activation
Internet Banking : Beneficiary
Addition/OTP
Internet Banking OTP (One
Time Password )
Mobile Banking
Cheque Book Request/Cheque
Presented/Returned
Welcome message on account
opening
CC/OD accounts becoming
SMA
Promotional Message
1
2
Other
Everyday
Monthly
Everyday
Real time
Real Time
Maintaining Balance of Rs. 25000.00 or

above for SB & CA
Staff A/c get the Balance confirmation
irrespective of balances.
All registered customers maintaining
Cash Credit / Overdraft accounts.
2 Days before maturity
2 days before the month end
Attaining 18 years of age
Real Time
Real Time
Real Time
Everyday
Everyday
On Demand
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100

On
every
Transaction
NEFT/RTGS
Real time
.
Outward for each transaction and inward
as peer limit set in Finacle for every
V\Credit/Debit entry
Real Time Gross Settlement (RTGS)

RTGS system is a funds transfer mechanism where transfer of money takes place from one
bank to another on a real time and on gross basis. This is the fastest possible money
transfer system through the banking channel. Settlement in real time means payment
transaction is not subjected to any waiting period. The transactions are settled as soon as
they are processed. Gross settlement means the transaction is settled on one to one basis
without bunching with any other transaction.
The customer has to just fill up the application form to take advantage of economical, instant
and secure transfer through RTGS available across all branches of the Bank. The remitting
customer has to furnish the following information to the bank for effecting a RTGS
remittance:
1. Amount to be remitted
2. His account number which is to be debited
3. Name of the beneficiary bank
4. The IFSC code of the receiving branch
5. Name of the beneficiary customer
6. Account number of the beneficiary customer
7. Sender to receiver information, if any
RTGS is used for both customer transactions and Inter Bank Transactions. The Operating
session for RTGS Transactions at Branches is given hereunder:
( HO DIT CIRCULAR HO/DIT/34/2014-2015/843 dated 21/01/2015 )
Customer Transaction (R41)
Monday to Friday (8.00 hrs to 16.15 hrs.)
Saturday (8.00 hrs to 13.45 Hrs)

Inter-Bank Transaction (R42)
Monday to Friday (8.00 hrs to 19.30 Hrs)
Saturday (8.00 hrs to 14.45 Hrs)
This cut-off time is for the messages to reach at RBI end. Therefore branches should
maintain a cushion of at least 20 to 30 minutes to avoid any rejections in message
transmission.
If the transaction fails for any reason, the amount will be credited back to the account
from which the transaction was made( Through Nodal Branch Fort Mumbai ). All RTGS
transactions are irrevocable once the account is debited and the Bank executes
transaction. Any revocation, after the payment order is executed by the bank, shall not be
binding on the Bank in the RTGS system.
Transaction Amount: The RTGS system is primarily for large value transactions. The
minimum amount to be remitted through RTGS is Rs.2 lakh. There is no upper ceiling for
RTGS transactions. There is no limit on the number of transactions per day per Customer.
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101

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Charges: For Outgoing Transactions from Rs.2 to 5 lacs, Rs.25/- per transaction is levied
and for transaction above Rs. 5 Lacs, Rs.50/- per transaction is levied. Inward transactions
are free.
National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to
facilitate transfer of funds from any bank branch to any other bank branch. RBI intends that
high value transactions should be routed through RTGS and small amount transactions should
be routed through NEFT. NEFT is only for fund transfer on behalf of the customers. NEFT
works on deferred net settlement (DNS) basis which settles transactions in batches. In DNS,
the settlement takes place at a particular point of time. All transactions are held up till that
time. For example, NEFT settlement takes place 6 times a day during the week days and 3
times during Saturdays. Any transaction initiated after a designated settlement time would
have to wait till the next designated settlement time.
The Customer should provide all the details as in the case of RTGS for conducting a NEFT
transaction. The beneficiary gets the credit on the same Day or the next Day depending on
the time of settlement. If the transaction fails for any reason, the account debited will be
credited back. The thresholed limit is 100000/- for NEFT. In case of any query, the branch
can contact the dedicated NEFT Centre set up at Service Branch, Mumbai through email
neft@obc.co.in.
Batch Timings: Eleven hourly settlements are carried out during the day by RBI, starting from
9:00AM to 7:00PM on all week days and five hourly settlements from 9:00 AM to 1:00 PM on
Saturdays. The messages sent before the above batch timings shall be included in the respective
settlements otherwise they shall be included in the next batch/day.
Note:
RTGS and NEFT is entered in Finacle using the Command HEPS. Detailed guidelines and
accounting Procedure is available on the Banks eCircular
Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely
identify the bank-branches in India. This is 11 digit code with first 4 characters
representing the banks code, the next character reserved as control character (Presently 0
appears in the fifth position) and remaining 6 characters to identify the branch.
our circular No. HO/DIT/35/2008-2009/586 dated 09.02.2009 wherein it was informed
that all offices to ensure that all payments made by Bank to vendors, service providers
and all external agencies viz. Tax authority / Utility Payments etc. are invariablymade
through electronic modes.
Electronic Clearing System (ECS)
It is a mode of electronic funds transfer from one bank account to another bank account
using the services of a Clearing House. This is normally for bulk transfers from one account to
many accounts or vice-versa. This can be used both for making payments like distribution of
dividend, interest, salary, pension, etc. by institutions or for collection of amounts for
purposes such as payments to utility companies like telephone, electricity, or charges such as
house tax, water tax, etc or for loan installments of financial institutions/banks or regular
___________________________________________________________________________________
102

.
investments of persons. It eliminates delays due to postal / clearing as the amount gets
directly credited to the respective customers account.
There are two types of ECS - ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single
debit to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account
holders for crediting a particular institution.
Customers are required to fill up the prescribed form (No. E-1) indicating choices of
periodicity of such payment and expected number of credit and aggregate amount. Detailed
procedure is given in Clearing Operations Chapter.
OBC eTaxes
The Bank is providing this facility through which all types of direct taxes can be deposited
by the customers online through the net banking services from the comfort of their office or
home. The challan will be generated online and the same should be preserved for future
reference and records.
Procedure for e-payment:
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS
281, ITNS 282 OR ITNS 283, as applicable.
2. Enter its PAN/TAN as applicable. There will be an online check on the validity of the
PAN/TAN entered.
3. If PAN/TAN is valid the taxpayer will be allowed to fill up other challan details like
accounting head under which payment is made, name & address of TAN and also
select the Bank through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer
confirms the data entered in the challan, it will be directed to the net banking site of
the bank.
5. The tax payer will login to the net-banking site with the user-id/password provided by
the bank for net-banking purpose and enter payment details at the Bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment
details and Bank name through which e-payment has been made.
Point of Sales Terminal (POS)
Point of Sales (POS) terminals are deployed/installed at Merchant Establishments (ME) i.e.
shops, petrol pumps etc. For making any payment debit card is swapped on these terminals
and the amount is entered, the transaction is processed and the customers primary account
linked with the Proton card is debited online.
Our Bank has a tie up with the vendor M/s Atos Worldline India Pvt. Ltd. We have
VISA authorization and YES Bank has Master Card authorisation. So VISA
transaction will be authorized through our server and MasterCard will be
authorised through YES Bank.
II. Types of charges levied on Merchant by Bank (Income)
a) MSF (Merchant Service Fee) - A fee as a percentage of transaction is collected
from the Merchant on per transaction basis. The MSF for debit card is mandated
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103

.
by RBI at 0.75% for transaction up to Rs2000/- and 1% for transaction
above Rs2000/-. Further, the MSF on credit card levied by our bank ranges from
1.40% to 1.75% as floor rate. (Note: In case of subvention the discounted MSF is
offered on Credit card transaction)
b) TPF (Transaction Processing Fee) The TPF is charges to the Merchants wherein
the monthly volume of the transaction is below Rs1.00 Lac.
c) GPRS Rental - The GPRS terminal rental is fixed at Rs1000/- per month apart from
any other fee or charges as applicable.
d) OTI (One Time Installation Fee) The OTI is levied at the time of installation of
the terminal. It is Rs1200/- per terminal for merchant with existing POS from other
banks while Rs2500/- for new merchants for fist time installation of machine.
e) Paper Roll charges: The paper rolls are proposed to be charged at Rs21/- per roll or
Rs0.65/- per transaction.
Revenue on POS Machine (Approx.)
1. Card Owner Bank
: 1.1 %
2. Authorizer Charges (VISA/MASTER) : 4-8 Basis Point (0.04 -0.08 %)
3. Intermediate Bank (OBC/YES)
: 4 Basis Point (0.04 %)
4. Service Provider (M/s Atos Worldline)
: 4-6 Basis Points
For VISA Authorisations
If our Banks card used then we will get 1.1 % + 0.04 % = 1.14 %
If other Banks card used then our Bank will get 0.04 %
For Master Card Authorizations
Our Bank Card wont have Master Authorization and authorization is done through YES Bank
Ltd. So our bank wont get any thing.
ADVANTAGE
1.
Cash handling is better with POS.
2.
Online transaction and direct Credit to the account.
3.
Customer willing to pay through Card and if the merchant dont have the facility
then its a discouragement for customer.
4.
Encouragement for customers to spend more as no physical cash is involved.
Western Union Money Transfer
Our Bank has a tie up with Western Union Money Transfer through M/s Weizmann Forex Ltd.
(WFL). Western Union is a safe, reliable, legal and convenient way of transferring and
receiving money world wide (in India we can only receive inward remittance, as RBI
___________________________________________________________________________________
104

.
does not allow outward remittance). It is a legal method of receiving money in India as
per RBI guidelines.
The Western Union Money Transfer system is a Net-based system, which provides on line
information about any money transfer affected from overseas location. The beneficiary can
get payment of the remittance after establishing the identity and other formalities from any
of the outlets of Western Union. Therefore, the transaction flow would depend upon the
service offered by the branch under the arrangement. The relevant stationery for handling
remittances transactions and other publicity material shall be provided at the designated
branches by WFL. Weizman - 10481100136020
Online Tax Accounting System (OLTAS): OLTAS is a service provided by the bank for
acceptance of Income Tax and other direct taxes on behalf of Government. The customers
including Corporate, Individuals, Proprietorship concerns, Partnership firms, Trusts, Club,
Society, etc. can pay their tax liability through banks OLTAS window available through 145
select branches across the country.
WHITE LABEL ATMs INTRODUCTION
What is white label ATMs?
White Label ATMs - or WLAs are ATMs which are set up and managed by private
operators, in support with Banks
The bank provides support only for cash management and settlement activities, in
addition to partnering for co-branding & promotions
Are WLAs different from Bank ATMs
No, customer experience at WLAs are exactly similar to Bank ATMs all rules applicable for
Bank ATMs are also applicable for WLAs everywhere
What are WLAs advantages?
WLAs are established and managed exclusively by private operators within the country
These operators make the necessary investments to set up the WLA ATMs and receive a
return based on transactions and other fees such as advertising
As a result, Banks and Financial institutions are freed from the capital investments required to
set up much needed ATM infrastructure across the country
WLA Operators authorized by RBI
1.Tata Communications Payments solutions Limited, Mumbai
2. Prizm Payments Services Pvt. Ltd., Mumbai
3. Muthoot Finance Limited, Kochi
4. Vakrangee Limited, Mumbai
5. BTI Payments Pvt. Ltd., Bangalore
6. Srei Infrastructure Finance Limited, Kolkatta
7. Riddisiddhi Bullions Limited, Mumbai
LAUNCH OF DBTL (DIRECT BENEFIT TRANSFER FOR LPG) SERVICES
Presently Direct Benefit Transfer for LPG consumers is implemented through Aadhar seeding in Bank
accounts and onward registration of Aadhar numbers with Consumer numbers at OMC portal.
___________________________________________________________________________________
105
Now, National Payments Corporation of India (NPCI) has implemented Direct Benefit transfer for
LPG for seeding of LPG consumer ID in Bank accounts directly.
A meeting was held in the Prime Ministers office on 22.10.2014 on issues relating to DBTL. It has
been decided as under:
Multiple approaches will be used for seeding LPG databases with bank accounts and Aadhaar
numbers. Oil Marketing Companies (OMCs) will collect Aadhaar numbers and Bank account details at
LPG distributors and through drop boxes at other locations. Bankers could also use the Pradhan
Mantri Jan Dhan Yojana methodology and data collected to assist in the seeding process.
Two modes of seeding of bank accounts in LPG database are available in this scheme:
(a) Bank accounts details captured by OMCs (Oil Marketing Companies) and bank account information
(account number + IFSC + name of account holder) will be sent to banks electronically via NPCI and
banks will confirm the veracity of the information as per their records. Thereafter OMCs can seed that
bank account information in the LPG database. (Option 1)
(b) LPG consumer can approach Bank directly. LPG consumer ID will be captured by bank at the
branches against the bank account and the pair of LPG consumer ID details and bank account
information will be then electronically sent back to OMCs by bank.(Option 2)
FINACLE MENU OPTION :
Enter menu DBTLE after login into finacle for entry & DBTLV for verification
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106
SALIENT FEATURES OF RETAIL CREDIT SCHEMES

Oriental Education Loan Scheme (studies in India & Abroad)
Eligibility
Loan Amt
Student who is an Indian national, meritorious student and has secured admission in an
institute recognized by a statutory body or by the Bank
Term Loan
India Rs.10.00 Lac
Abroad Rs.20.00 lacHigher loans can be sanctioned by HO/RO authorities
Considered under Priority

sector
Category A
Category B
Rs 25.00 Lacs Without

Collateral Security
Rs 10.00 Lacs Without

Collateral Security
Other institution
Actual as per fee structure
of Institution
In case higher loan limit is requested (from the above mentioned limit) for category A & B
institutions, 100% tangible security with value equivalent to loan amount is required.
Margin /
Process Fee
Category A
NIL
Category B
NIL
Other Institutions
Up to Rs 4.00 Lacs
NIL
Above Rs 4.00 Lacs
5% For studies
in India
15% For studies
Abroad
abroad Rs 1000.00 (fee would be refunded after taking course)

Rate of
Interest
Institutions
Rate of Interest
For Category A
Base Rate
For Category B
BR+0.50%
Others- General & working Up to Rs 4.00 Lacs
Professionals
Above Rs
Third Party Guarantee
4.00 Lacs &
Upto Rs 7.50 Immovable Property or
Lacs
Tangible Assets
Above Rs 7.50 Lacs
For Vocational Education
Security
P/FeeFor
study in
India
Nil
For
study
BR + 2.50%
BR +
3.00%
BR +
1.75%
BR +
1.75%
BR+2.50%
Simple interest till moratorium period. If the monthly interest is serviced during
moratorium period, concession of 1% in ROI is allowed. 0.50% concession on ROI for
women beneficiary. SC/ST & disabled students. However, the 0.50% concession will be
available for only one characteristic
Co-obligation of Parents / Guardian. In case of married person, co obligator can be
either spouse or parent or parent in law. Parental co-obligation can also be substituted
by a suitable third party guarantee, power vested with RLCC-RH. (Circular No.
___________________________________________________________________________________
107
HO:Retail:39:2014-15:764 dated 19.12.2014)
For category A & B institution:

Institutions
For Category A institutions
For Category B institutions
Loan Limit
Upto Rs 25.00 Lacs
Upto Rs 10.00 Lacs
Collateral Security
NIL
NIL
For other Institution:

Up to Rs. 4 lac Nil, > Rs.4 Lac to Rs.7.50-Lac:- One Guarantee.> Rs. 7.50 :Mortgage /
Extension of Charge or NSC/ UTI / LIC / FDR/Bonds along with assignment of all future
income ( For serving professionals/Executives & Defence Personnels: One personal
guarantee and post dated cheques from salary account)
Repayment
Discretionery
POwer
For loans upto Rs.7.50 Lacs-upto 10 years,

For loans above Rs.7.50 Lacs- upto 15 years
Loan is repayable in EMI (excluding moratorium period i.e. Study period + grace Period)
Category
For study India/ Abroad
(Rs. In lacs)
Scale I
7.50
Scale II
10.00
Scale III
15.00
Scale IV
20.00
AGM & RLCC AGM
25.00
DGM & RLCC DGM
30.00
GM & RLCC GM
40.00
HLCC ED & ABove
100.00
Points to remember:
Under component of finance, College bus fare in case of study in India is also covered.
(Circular No. HO:Retail:39:2014-15:764 dated 19.12.2014)
Interest switch over option fee 0.50% of outstanding loan amount as on date (Circular no.
HO:Retail:19:2014-15:442 dated 29.08.2014)
As payment of interest is optional during the moratorium period, education loan cannot be
classified as NPA during the moratorium period. (Circular No. HO:Retail:35:2014-15:650 dated
10.11.2014)
In case the education loan becomes NPA there shall not be any reversal of interest accrued
during the repayment holiday/moratorium period. (Circular no. HO:Retail:47:2013-14:1182 dated
28.03.2014)
Under follow up monitoring, branches need to contact college/University to obtain progress

report on the student. In case of foreign study loan Branches shall obtain SSN/Unique
identification number/ ID card and note the same in Banks record. PAN card is not mandatory
for availing student loan. UIDAI may also be captured in system. For recovery of dues
practices such as displaying names and photographs of defaulting students be stopped
herewith. (Circular no. HO:Retail:32:2013-14:841 dated 14.12.2013)
If the repayments in education loans are extended due to revision in the repayment period
under the new Model Education Loan Scheme the same may not be treated as restructuring.
However, this treatment would be available only to education loans which are standard in the
books of banks on the date of such extension of repayment period. Further, such extensions
should not be given by banks with a retrospective effect and any extension in repayment
period should be need based and take into account the repayment capability of the borrowers.
(Circular no. HO:Retail:20:2013-14:568 dated 13.09.2013).
Collateral free loan upto Rs. 20 lac to IITs/IIMs/XLRIs students and Rs. 25 Lac to students
of ISBs. The existing approval for considering Education Loans upto Rs 7.50 Lacs
___________________________________________________________________________________
108

.
irrespective of rating grade as applicable under Education Loan scheme shall remain
continue. (Circular no. HO:Retail:09:2013-14:181 dated 20.06.2013)
Financing to more than one member of the family will be considered as separate. Education
loan is not a loan for a family as a unit but it is individual wise.
Education loan to the students of study centers/ distance learning mode by some universities
such as Punjab Techincal University/ Manipal University etc is not permissible.
Medical courses offered by Institutions in Nepal, approved by Medical Council of India only
are eligible for granting education loan. Any Indian Citizens who intend to obtain primary
medical qualification from any foreign country on or after 15th May2013 are not required
to obtain Eligibility Certificate from Medical Council of India. (Circular no.
HO:Retail:42:2013-14:1035 dt: 07.02.2014)
Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts,
subject to the condition that the amount does not exceed 10% of the total tuition fees for
the entire course.
Purchase of computers-essential for completion of the course*. Purchase of books/
equipments/ instruments/ uniforms*. Any other expenses required to complete the
course-like study tours, project work, thesis, etc*. * A realistic assessment may be made
for the requirement under these heads, however the maximum amount under these heads
be capped at 20% of the total tuition fee payable for completion of course
Discretionary power to consider loan for Commercial Pilot Licenses and Air Hostess is
presently vested with Head Office.
Irrespective of rating grade, For category A Institute Rs. 25.00 Lac, For category B
institute Rs. 10.00 Lac and for other institutes Rs. 7.50 lac may be sanctioned
respectively.
Padho Pradesh Scheme (Circular HO: Retail:25:2014:417 dated 29.08.2014)

Objective
Income
ceiling
Interest
subsidy
The objective of scheme is to award interest subsidy to meritorious

students belonging to economically weaker section of minority
communities. Student should have secured admission for Masters, PHD,
M. Phil. Scheme is applicable for higher studied abroad.
From all sources Rs 6 Lac (to applicant and his /her parents)
Interest shall be borne by the Govt of India till the moratorium period
of edu loan (course period+1years or six month of getting job)
Oriental Car/Vehicle Loan Scheme for General Public

Eligibility
For two Wheelers - Rs 10,000/- per month gross

For Four Wheelers: Rs 20,000/- per month gross
For existing Large and Mid corporate borrower Rs 40000 per month
a) Salaried Individuals with confirmed / minimum 1 year of service. The length of
previous employer's service(s) may also be taken into consideration for the
criterion of 1 year service.
b) Professionals (including doctors)
___________________________________________________________________________________
109
c) Business entities Established business for not less than two years.
d) Agriculturist based on their land holding and repayment capacity.
e) Non-Resident Indians- Jointly with Resident Indians (close relative)

OPEN CAR LOAN: Existing Large & Mid Corporate Borrowers (Firm/Company)Exposure Limit Rs. 10.00 crores and above
Loan Amt
Two Wheelers Four Wheelers-
Rs 10.00 Lac &

Rs 100.00 Lac (For 2nd Hand car loan 25 Lac)
In case of salaried person 30 month gross salary/ pension subject to take

home criteria based upon gross monthly income as below
Upto Rs 50000/- pm
ROI
Tenure
Up to 3 years
Above 3 years
40%
Above Rs 50000/-pm
30%
NORMAL / CARD RATE

BR+0.50%
BR+0.75%
For 2nd hand car loan BR+3.00%

Reimbursement
of finance
Margin /
Process Fee
* Additional concession of 0.25% in rate of interest for captive/ loyal customers

1. Reimbursement of finance for new four wheelers purchased out of own funds from the
authorized Car dealer.
2. The reimbursement shall be within 3 months of purchase and shall be treated as new
vehicle loan
15% on on-road cost Old Car: True value(TVS): 20%, Others (Non TVS): 30%
Process Fee: 0.50% Max. Rs.7000
Prepayment Penalty / documentation charges/ upfront fee- NIL
Repayment
New Car 84 Months ;
For salaried
(pension)
For non
pensioner
salaried
Age of Vehicle
If car is older than 3 yrs & upto 4 yrs.
If car is older than 2 yrs & upto 3 yrs.
If car is upto 2 yrs old
60 Years
65 Years
For 2nd Hand car loan:
Security
Business/professional Agriculturist
Repayment Period
36 Months
48 Months
60 Months
No age bar
Duration of crop
Hyp. of New Two wheeler / Four wheeler purchased out of Bank Finance
For Two wheelers
If borrower gross monthly income is below
Rs30000.00 One personal guarantee
For Cars/MUVs
If borrower gross monthly income is below
Rs40000.00 One personal guarantee
Incase of 2nd hand car
One third party guarantee acceptable to Bank
Show room price + one time road tax + Registration Charges & First year's
___________________________________________________________________________________
110
insurance cost
OPEN CAR LOAN: Hyp. Of new CAR/ MUV, Collateral :NIL

Discretionery
Power
Scale
I
II
III
IV
V
VI
VII
For Two wheeler

Rs 1 Lac
Rs 2 Lac
Rs 2 Lac
Rs 2 Lac
Rs 2 Lac (As RH
10 Lac)
Rs 2 Lac (As RH
10 Lac)
Rs 2 Lac (As RH
10 Lac)
For New Car

2nd Hand Car Loan
Rs 6 Lac
Rs 2 Lac
Rs 10 Lac
Rs 5 Lac
Rs 20 Lac
Rs 5 Lac
Rs 30 Lac
Rs 10 Lac
Rs 50 Lac (As RH Rs Rs 15 Lac (As RH
100 Lac)
same power)
Rs 100 Lac (As RH Rs Rs 15 Lac (As RH Rs
100 Lac)
25 Lac)
Rs 100 Lac (As RH Rs Rs 15 Lac (As RH Rs
100 Lac)
25 Lac)
Points to remember for interview purpose:

1. The payment to car dealer will be made on case to case basis i.e. condition of sourcing 10 cars
is waived. (Circular no. HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Income of spouse,Father,Mother, Brother, Son, Daughter in law & Unmarried daughter can be
co-applicant in the account. (Circular no. HO:Retail:34:2014-15:649 dated 11.11.2014)
3. Close relative in case of NRI for considering Retail Loan are Spouse, Father, Mother (including
step mother), Son (including step son), Sons wife, Daughter (including step daughter),
Daughters husband, Brother (including step brother), Brothers wife, Sister (including step
sister), Sisters husband. HUFs are not eligible. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
In case the vehicle is financed in the name of company, there is no need to register the
charge with ROC as specify charges or vehicle is already registered with RTO for
hypothecation of charge. (Circular no. HO:Retail:14:2014-15:217 dated 19.06.2014)
5. In built sanction of four wheeler loan to borrowers availing regular loan credit facilities from
Bank for last one year. Validity of sanction upto one year/ date of renewal whichever is earlier.
Loan limit Income upto Rs. 50000 p.m. Rs. 5.00 Lac and And Above Rs. 50000 p.m. 10
Lac. Equivalent to 20 times of gross annual income. Process fee shall be charged at the time
of disbursement only. Clause of per car sub limit is removed for RLCC. (Circular no.
4.
HO:Retail:14:2014-15:217 dated 19.06.2014)
6. Classification of advance will be as per activity of borrower. Same chassis no. & Engine no. Be
mentioned on Vehicle; Invoice & RC Book.
Retail Credit Scheme: Housing Loan (Oriental Home)

Eligibility
Loan Amt
ROI
Salaried employees , Self Employed. Professionals, Businessmen, Farmers ,

HUF.(including Staff, NRIs & PIOs) having assured source of income.
For Business man- 40 times Gross monthly Income and for salaried person- 60 times
Gross monthly Income
Rs.15.00 lac(Furnishing) (restricted to 30% value of present realizable value of house /
flat)
Irrespective of loan
Base Rate
limit
rd
For 3 house onwards
BR + 0.50%
___________________________________________________________________________________
111

Margin /
Process Fee
Net Take home Criteria

Upto Rs 5 Lacs
Above Rs 5 Lacs & Upto Rs 10
Lacs
Above Rs 10 Lacs
50%
40%
30%
Margin:
Upto Rs20
Lac
15%
Above Rs 20 Lacs to
Rs 75 Lacs
20%
Rs 75 Lacs and
above
25%
Home
furnishing
25% of cost
of
renovation
Prepayment penalty is Nil.

0.50% of loan amount subject to maximum of Rs. 20000/- plus service tax,
if any. 100% concession under Festival Bonanza Offer (Circular no
HO:Retail:40:2014-15:771 dated 29.12.2014)
Age
Repayment
Security
Power chart
(Scale V to
VII as RH
or BI)
Minimum Age: 18 years as on date of application

Maximum Age:
For salaried (with pension) & other upto 70 years
Individuals
For Salaried (Non Pensionable)
upto 60 years or superannuation,
whichever is earlier
For Home Loan Upto 360 months, including the moratorium period of 18 months
subject to age of dwelling unit as under:
Age of Dwelling unit less than 10 Years
Maximum 30 Years
Age of dwelling Unit Older than 10 Years
Maximum 25 Years
Primary Equitable/ Registered Mortgage of financed property/property proposed to be
furnished; Collateral- Nil
w.e.f. 15.11.2014
Scale
Purchase/construction Repair/ and (Oriental Personal loan
home loan
borrower)
I
II
III
IV
V
VI
VII
Rs
Rs
Rs
Rs
Rs
scheme
for
existing
10 Lac
20 Lac
50 Lac
100 Lac
150 Lac
Rs 2 Lac
Rs 3 Lac
Rs 5 Lac
Rs 5 Lac
Rs 5 Lac (As RLCC RH Rs 15
Lac)
Rs 300 Lac
Rs 5 Lac (As RLCC RH Rs 15
Lac)
As RLCC RH Rs 500 Rs 5 Lac (As RLCC RH Rs 15
Lac
Lac)
Points to remember for interview purpose:
The criteria for assessing MPBF by Gross Income is removed. MPBF be assessed on the basis
of Margin & Net Take Home Criteria only, whichever is less. (Circular No. HO:Retail:48:201415:980 dt: 17.03.15
___________________________________________________________________________________
112
As per RBI guidelines, In cases where the cost of the house/dwelling unit does not exceed Rs
10.00 Lacs, stamp duty, registration and other documentation charges may be added to the
cost of the house/dwelling unit for the purpose of calculating LTV ratio. (Circular No. HO:Retail:
46:2014-15:952 dt: 07.03.15)
In case of professionals, Self Employed person and business man, two years average
income be considered for arriving MPBF under home loan scheme. However, it must be
ensured that two IT returns not to be filed together.
No loan shall be given in respect of properties meant for residential use but which the
applicant intends to use for commercial purposes.
Value to loan ratio should be kept at 150% (or Loan to Value Ration to be kept at 66.67%) in
case of extension of charge in other loan account. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
ROI for 3rd House onwards is BR+0.50%. Along with GLPP premium, Purchase price &
installation charges of rooftop Solar PVs and non solar lighting, wiring and other such
fittings shall also constitute component of finance. (Cir/HO: Retail:39/2014-15:764 dated
19.12.2014).
Power to Takeover of HL is delegated to BM provided account should be classified as

standard Regular by the other Bank. (Cir/HO: Retail:39/2014-15:764 dated 19.12.2014).
Loan amount for purchase of plot should not exceed 50% of the eligible loan amount.
Sanctioning of Home loan to borrower who defaults in CIBIL reports other than Credit card
account lies with HLCC-ED. (Circular no. HO:Retail:40:2013-14 dated 23.01.2014)
Banks charge of mortgage shall be noted in the Central Registry System within 30 days of
creation of such charge
The clause regarding first right to refusal by our Bank be invariably incorporated in the
sanction letter of housing projects financed by the Bank. (Circular no. HO:Retail: 06:2014-15:18 dated
09.04.2014)
Power of Concession in ROI to RH To captive/loyal customers who are having annual

average balance in their saving account Rs. 1.00 Lacs or in current account Rs.5.00
Lacs and above. As well as to Directors, Partners or Proprietor of all Cash Credit account
holders having Credit Rating upto 4 for last 24 months
The penal interest shall be charged at the rate of 2% over and above the normal rate
of interest on irregular amount of loan and for the period of irregularity
Classification of housing loan under priority sector (Circular no. HO:Retail:41:2014-15:792 dated
30.12.2014)
Type
Purchase/construction
Metropolitan
center
population above 10 lac)
Rs 25 Lac
Repairs
Rs 5 Lac
(with Other Center

Rs 15 Lac
Rs 2 Lac
Loans granted for construction of toilet in the house qualify for classification under priority
sector. The classification of advance under Priority sector will depend on location of the
property and not on the location of the branch.
Oriental Home Loan Point is launched at New Railway Road branch (0071) Gurgaon with the
objective of marketing of Retail Loans, expeditious sanctions and disbursement within 5
working days. (Circular no. HO:Retail:37:2014-15:705 dated 27.11.2014)
All home loan account to be reviewed annually. (Circular no. HO:Retail:31:2014-15:589 dated
17.10.2014)
___________________________________________________________________________________
113
Wherever Registered/Equitable mortgage cannot be created in case

DDA, HUDA etc.
Undertaking as per annx 14, security documents such as Annx 17 & 18, Power of attorney
as per annex. 6 and letters from borrowers to reinforce the right of the Bank to recover its
dues. (Circular HO:Retail:30:2014-15:588 dated 17.10.2014)
Maximum limit of eligible housing loans under CRGFS has been enhanced from the present
ceiling of Rs. 5 lac to Rs. 8 Lac. (Circular no. HO:Retail:33:2014-15:619 dated 01.11.2014)
No home loan to be considered for HUF entities or to partnership firms where HUF is a
partner. (circular no. Retail:22:2013-14:578 dated:17.09.2013)
Terms of Repayment
EMI; or servicing of interest during moratorium period (Max 18 months)
Payment of only interest for first five years and thereafter EMI
Request for preponement of repayment period can be considered once during currency
of loan Repayment of agriculturist may be by way of monthly/quarterly/half
yearly instalments.
If borrower makes bullet payment, EMI can be reset according to residual period.
Rajeev Rinn Yojna (RRY)
(Circular No. HO:Retail:27/2014-15:500 dated 19.09.2014)
Eligibility
Income
Certificate
Below Poverty Line(BPL): person holding BPL card issued by

State Government
Economically Weaker Section (EWS): Person having an average
annual income upto Rs 1 Lac
Low Income Group (LIG): Household average annual income
between Rs 1 Lac and uptp Rs 2 Lac
Loan limit
Interest
subsidy
Margin
Security
IT Return/Form16, if available
Income certificate issued by the competent authority as
notified by the respective State Govt. Notified competent
authority is available on
http://mhupa.gov.in/RRY/RRY_page.htm
Self declaration form along with income certificate
For EWS
For LIG
Rs 5.00 Lac
Rs 8.00 Lac
Interest subsidy is available for loan amount upto Rs 5 lac
Calculation of rate of interest for beneficiary would be net of subsidy
from GOI.
10%
Mortgage of unencumbered dwelling unit standing in the
name of borrower
Loans under the scheme are covered under Credit Risk
Guarantee Fund Trust for Low Income housing
BR
20 Years (maximum)
ROI
Repayment
period
Moratorium
24 months (maximum)
Period
Interest charged in the account need to be serviced and can not be
___________________________________________________________________________________
114

.
capitalized
Subsidy is provided by HoHUPA during the period of moratorium
Process Fee
Nil
Rs. 500.00 is provided by Ministry and same may be treated
as process fee
Size of
Size of dwelling
EWS
LIG
dwelling unit
unit
Minimum Size
21 sqm
28 sqm
Maximum Size
60 sqm
60 sqm
Points to remember:
In case of NPA accounts, subsidy will be suspended.

Cost of advocate, valuer, mortgage, insurance shall be borne by the applicant.
Location of land should be in urban areas where total population should not be less that 1 Lac
as per 2011 census.
Oriental Personal Loan Scheme for Existing Home Loan

Borrower
(Circular No. HO:Retail:21:2014-15:441 dated 29.08.2014) & (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
Purpose
Nature of facility
Eligibility
TL and OD
Existing standard regular housing loan borrower(s)
Loan Amount
Security
ROI
Process fee
Repayment
Purchase of consumer durables, kitchen equipments and furnishing items

such as TV, Fridge, AC, Collers, curtains including the insurance thereof
For purchase of GLPP
For any personal use, which is not speculative
Construction of house is completed and mortgaged
Min - Rs 1 Lac ; Max: Rs 5 Lac OR

10% of sanctioned limit under HL ; whichever is lower
Net take home will 30% of their gross annual income
Margin 25%
Extension of charge or declaration stating
The Bank can extend mortgage as and when required

The borrower will not create any other charge
Title deed will remain with the Bank till the currency of loan
Floating rate of interest with monthly rest

For Male Borrowers
BR + 1.50%
Term Loan
For female Borrowers
BR + 1.00%
For Male Borrowers
BR + 1.50%
Overdraft Limit
For female Borrowers
BR + 1.00%
In case loan is availed jointly by male & female borrower, BR+1.50% rate of interest
shall be charged.
0.50% of the loan amount of Rs.500 whichever is maximum

For Salaried (with pension)
70 years
For non- salaried (without
Upto 60 years
pension)
___________________________________________________________________________________
115
*Discretionery power as same as renovation/repair of Housing loan scheme.

Points to remember:
1.
Irrespective of the fact that home loan has been sanctioned under RO/HO power, BI can
consider the personal loan under the scheme as per vested power. (Circular No.
Ho:Retail:34:2014-15:649 dated 11.11.2014)
Oriental Mortgage Loan Scheme (OMLS)

Purpose
Types of
facility
Loan limit
The loan can be used to meet any legitimate need based Investments /
expenses except speculative & prohibited purposes as restricted by Law
A) For Business Entities
a. Term Loan
b. Overdraft limit
c. Term Loan + Overdraft Limit (COMBO OFFER)
B) For Salaried
a. Term Loan
b. Overdraft limit
Max Rs 5 Cr (under MPBF calculation)

Mortgage (Registered or Equitable) of self-occupied Residential / Commercial /
Industrial Land & Building standing in the name of individual / joint owners / close
relatives who will also stand as Guarantors
In case of let out properties, RLCC-RH & above is empowered to permit for accepting let
out property as security. Branches shall not have any power for accepting let out
properties.
(The Loan/Overdraft limit will be repayable upto maximum age of 75 years of
Guarantor.)
Loan against agricultural land / plot of land (plot in isolation) partially
constructed property shall not be granted.
Assessment
of loan limit
Properties let out to our bank for premises shall be considered as self occupied.
Loan against agricultural land / plot of land (plot in isolation) partially
constructed property shall not be granted.
50% of the realizable value of the property (overall maximum limit).
36 months of gross income in case of salaried persons.
4 times of average net annual income of last 2-3 years in case of persons other than
salaried ones.
Whichever is less.
Net Take Home: For individual : 30%;

ROI BR+2.25%; Process fee
Period of
Term Loan- 0.50% of Term Loan + Service Tax, if any (One Time Fee)
Overdraft- 0.10% of loan amount + Service Tax, if any (Recurring Fee).
Documentation charges
Up to Rs 2.00 lacs
Nil
Over Rs 2.00 lacs to Rs 10.00 lacs
Rs 1000/Over Rs 10.00 lacs to Rs 25.00 lacs
Rs 10000/Over Rs 100.00 lacs
Rs 15000/A) For Business Entities
___________________________________________________________________________________
116

a) Term Loan: Maximum upto 84 months repayable on EMI basis
loan
Discretionery
power
b) Overdraft limit: 84 months subject to annual review with progressively reducing

limit at 15% p.a. of the original sanctioned limit, so as to liquidate the facility
within the maximum period of 7 years.
(The loan shall be reduced in equated manner on yearly basis).
c) Term Loan + Overdraft Limit (COMBO OFFER): 60% of loan amount will be
in the shape of Term Loan repayable in 84 months & 40% in the shape of
Overdraft limit (Non-reducing) to be renewed annually.
B) For Salaried
a) Term Loan: Maximum upto 84 months repayable on EMI basis.
b) Overdraft limit: Overdraft facility will be renewed on yearly basis. The 15%
reduction shall commence 7 years prior to date of superannuation in case of Nonpensioner employees. In case of pensioners, the 15% reduction shall commence
once the employee reaches the age of 63 years.
HLCC-ED may consider to increase the tenure of the loan to a maximum of 10 years
Scale
Power of sanction
I
Nil
II
Rs 20 Lac (to use judiciously)
III
Rs 25 Lac
IV
Rs 50 lac
V
Rs 75 Lac (As RH 100 Lac)
VI
Rs 75 Lac (AS RH 500 Lac)
VII
Rs 75 Lac (As RH 1000 Lac)
HLCC ED
Ind Rs 7500 Lac Group Rs 15000
Lac
Points to remember:
1. Sanctioning of staff under OMLS scheme power vested with RLCC-RH (for the staff worked at
branches/STC (other than STC Noida) etc and staff posted at HO power vested with HLCC-ED.
(Circular HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
3. Criteria for net take home are not applicable for Firm/company. Income as declared in the
income tax returns / assessments and / or supported with financial statements and / or
certificate from a qualified CA shall be considered.
4. IMAC rating model will be utilised for loans to individual (where financial is not available) for
personal use. However, where loan is sanctioned for business model OTLS scheme be used.
(Circular no. HO:Retail:17:2013-14:508 dated 26.08.2013)
5. The property can be kept as security in the account of owner or close relatives (viz. spouse,
parents, brother, sister, son, daughter) or business concern 100% owned by the owner / such
close relatives. Property charged in OMLS account may be extended to cover other facility to
the extent of spill over available i.e. property value in excess of 200% of the limit (O/S in case
of term loan & sanctioned limit in case Overdraft- as per present valuation) can be extended
to cover other facility sanctioned to Owner. (Amended vide Circular no. HO:Retail:53:201415:988 dt: 20.03.2015)
Oriental Business Loan Scheme (OBLS)

___________________________________________________________________________________
117

To provide hassle free credit to meet working capital requirements / augment long-term
Purpose
Type of
facility
Elligibility
Security
margin /financing of fixed assets related to business activity or for expansion of business
to Traders, Micro, Small and Medium Enterprises (Manufacturing and
Service),Contractors /Commission agents, and Authorized service centre /Service
Sector viz. hotels, guest houses etc. Purpose not covered
- For speculative & prohibited by law
- Advance shall not be granted for real estate/capital market/investment in
or loan to associates/sister concern
- Loans
to
individual/Builders/Property
dealers/Real
Estate
agents/Doctors/ Professionals
a) Overdraft limit for working capital purpose.
b) Term Loan/Demand Loan to acquire fixed assets for general business purposes.
c) Non fund based limit for above a) & b) purposes.
1. Proprietorship, Partnership firms, Private / Public Ltd. Cos., engaged in business
activity Business for 1 year
2. Business units established by close relatives of existing customers even if these are
established for less than 1 year.
The cash generation and repaying capacity of above said business establishment shall be
the primary criteria for considering term loan under the scheme.
1. Mortgage (Registered or Equitable) of immoveable property(s)/ factory land and
building and / or any other
2. Property (Land & Building) standing in the name of individual/joint owners/
promoters, viz. Proprietor/ Partners/Directors/close relatives who will also stand as
Guarantors
3. The loan under the scheme shall be granted against self occupied property by its
owner. In case of let out properties, RLCC-RH & above is empowered to permit for
accepting of such property as security. Branches shall not have any power for
accepting let out properties.
Note: The loan against agriculture land/plot of land (plot only in isolation)/
partially constructed property shall not be granted.
Loan limit
Rs 500 Lac; ROI - BR+2.25%

1. Working Capital Finance--50% of the realizable value of the property Or 20% of
the estimated annual sales/income, Wherever the financial statement are available.
However, if the party is not maintaining proper financial statement, such as Commission
Agents etc. then 4 times of annual income (subject to cash flow/repaying capacity)
,Whichever is less
2. Term loan: 50% of the realizable value of the property Or 75% of the assets to be
created out of term loan. Whichever is less.
Process
Fee
EXCLUSIVE
DEALING
CLAUSE
Working capital finance and term loan together should not exceed 50% of the
realizable value of the property taken as collateral security.
1. Working capital- Rs 100.00 per lac plus service tax.
2. Term / Demand loan - Upfront fee of 0.50% of the loan amount plus service tax, if any
1. The party shall exclusively deal with our Bank for all intent and business purpose. An
undertaking to this effect shall be obtained and kept on record.
2. The OD account shall be monitored and ensured that minimum 60% of turnover is
being routed through the account. In case of non compliance, 1% penal interest shall
be charged over and above the normal rate of interest. The compliance of this clause
shall be ensured at the time of annual review/renewal of the account.
3. In case the loan is availed in shape of term loan, the concerned borrower shall also
maintain their operative account with us.
___________________________________________________________________________________
118

Points to remember:
1.
Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). The property can be kept as security in the account of owner
or close relatives (viz. spouse, parents, brother, sister, son, daughter) or business concern
100% owned by the owner / such close relatives. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
2.
Property or security already charged in OMLS/OBLS account may be extended to cover other
facility to the extent of spill over available i.e. property value in excess of 200% of the limit
(o/s in case of term loan & sanctioned limit in case of overdraft as per present valuation) can
be extended to cover other facility sanctioned to owner. (Circular no. HO:Retail:32:2014-15:610
dated 27.10.2014)
3.
In case of let out properties RLCC-RH & above shall be empowered to permit the accepting let
out property as security. Branches shall not have any power for accepting let out properties
under OBLS/OMLS Scheme. (Circular no. HO:Retail:32:2014-15:610 dated 27.10.2014) Properties
let out to our Bank for premises shall be considered as self occupied.
4. Loans to restricted sector such as SME & Others) upto Rs 10.00 Cr dealing in Gems &
Jewellery/Software/IT Enterprises/Call Centres is permitted under OBLS/OMLS Scheme.
(Circular no. HO:Retail:32:2014-15:610 dated 27.10.2014)
5. Condition for primary security as Hypothecation of stock and Book debt has been removed.
Stock statement is not insisted. However end use of fund need to be ensured when loan is
given for business purpose. (Circular no. HO:Retail:32:2014-15:610 dated 27.10.2014)
Oriental Personal Loan scheme (OPLS-Govt)- Customised

scheme for PSUs & Central/State Govt employees (Working &
Pensioner)
Purpose
Type
Facility
of
Eligibility
Amount
Loan
of
To meet personal/ family expenses like marriage/education/family functions / purchase

of consumer durables or any other legitimate purpose excluding for speculation
purpose.
For working :Term Loan : 60 EMIs (subject to remaining period of service)
For pensioners:Term Loan: 36 EMI, subject to repayment within maximum 70 years of age.
1. Permanent and confirmed employee of Public Sector Undertaking (PSU) and Centre
/ State Govt. Deptt. and other Government institutions like Universities/Colleges etc.
having their salary account with our bank.
2. The net monthly salary should not be less then Rs 10,000/-.
3. The net take home salary should not be less than 30% of gross salary after
deducting the EMI of the proposed loan.
4. Eligibility for Pensioners:
a) Maximum Age should not exceed 68 yrs.
b) Pensioners of our bank staff are also eligible provided disciplinary action are not
pending against them.
Net Take home pension should not be less than 50% of Gross Pension (including the
installment of proposed loan).
a) Up to 15 times net take home salary with a max of Rs 5.00 Lacs.
b) For pensioners: 12 month of pension with a maximum ceiling of Rs 2.00 Lacs.
___________________________________________________________________________________
119

Security
Margin
Rate of
interest
Penal
Interest
/Prepayment
Penalty
Process/
upfront fee
a) One personal guarantee preferably of fellow employee, subject to the condition that
one employee will not stand as guarantor in more than two accounts.
b) For Pensioners: Guarantee of the spouse eligible for family pension or in case of
non-availability of spouse any other family member or third party guarantee
acceptable to the bank.
NIL
BR + 2.25% p.a. with monthly rest
(Floating rate of interest)
2% penal interest over the normal lending interest rates on the overdue amount for
irregular period. No prepayment penalty to be charged.
0.50% of the loan amount with a minimum of Rs 500/ +Service tax, if any.
Points to remember:
1. The condition of obtention of employees undertaking has been waived off. However
undertaking from employee shall be undertaken for recovery of monthly dues, undertaking
addressed to employer for release of terminal benefit in case of eventuality in favour of our
Bank. Copy of the same to be forwarded to employer through registered AD. (Circular no.
2. Loan to staff members under OPLS Govt scheme is permitted for intervening period i.e. till
they get eligible for staff OD facility. Officer Rs 3 Lac, Non Subordinate Rs 2 Lac,
Subordinate Rs 0.75 Lac. (Circular no. HO:Retail:22:2014-15:443 dated 29.08.2014)
Oriental Personal Loan Scheme (OPLS - Corp)

Purpose
To meet personal/ family expenses like marriage/ education/family functions / purchase

of consumer durables or any other legitimate purpose excluding for speculation
purpose.
Type of
Facility
Term Loan : 60 EMIs (subject to remaining period of service)
Eligibility
Amount of
Loan
Security
Margin
Rate of
interest
Penal
Interest
Pre-payment
Penalty
1. Permanent employee of Corporate and other reputed non-government organizations

/ institutions including college / schools etc. having their salary account with our
bank.
2. Minimum 3 years of service, including service with the previous employer(s), if any.
3. The net monthly salary should not be less then Rs 10,000/-.
4. The net take home salary should not be less than 30% of gross salary after
deducting the EMI of the proposed loan
Up to 15 times net take home salary with a max of Rs 5.00 Lacs.
(For Existing Large & Mid corporate borrower Rs 15 Lac, upto 1.5 time of net annual
income)
One personal guarantee preferably of fellow employee, subject to the condition that one
employee will not stand as guarantor in more than two accounts.
NIL
BR + 3.25% p.a. with monthly rest (Floating rate of interest).
BR + 2.00% p.a. (For existing large and mid corporate scheme)
2% penal interest over the normal lending interest rates on the overdue amount for
irregular period.
No prepayment penalty to be charged.
___________________________________________________________________________________
120

Process/
upfront fee
0.50% of the loan amount with a minimum of Rs 500/ +Service tax, if any.
Oriental Loan against Gold Ornaments Scheme

Eligibility
Type of facility
Loan Limit
Purpose
Assessment of
Loan limit
Valuer /
Appraiser fee
Risk mitigation
measures
Security
Margin
Rate of
interest
All individual / proprietors borrowers

For Non-agriculture purpose
a)
Demand Loan
b) Overdraft
For Agriculture purpose
a)
Demand Loan
b)
CC/ OD
c)
Term Loan
For Non-Agriculture purpose : Maximum Rs 50.00 Lacs per borrower
For Agriculture purpose
: Maximum Rs 10.00 Lacs per borrower
All type of agriculture / allied activity, Business enterprises, Any other activity taken up
by the applicant for self employment, Personal consumption needs, non speculative
purpose.
70% of rate of 22 Carat gold jewellery or 70% of value appraised by Appraiser,
whichever is less.
Rate of 22 Carat gold will be updated on e circular site from time to time. Present loan
amount is Rs 1700 per gram. Amended vide Circular no. HO:Retail:52:201415:987 dated 20.03.2015
Upto Rs 25000/Rs 100/Above Rs 25000/0.25% of the loan amount
(The fee shall be borne by the borrower)
In the eventuality of steep fall in gold price and if margin goes even below 15%, the
bank shall issue a notice to the borrower to deposit the shortfall amount within 7 days
of issue of notice failing which the Bank shall take appropriate action to safeguard the
Banks interest. A pre-drafted undertaking to this effect be obtained from the borrower
while considering the proposal. This undertaking be got duly vetted by legal retainer.
Pledge of gold ornaments
Pledge of Gold coins specially minted & sold by the bank having per coin weight
upto 20 gms. The aggregate weight of Gold coins shall be restricted upto 50 gms
per customer
Gold loans can be considered against 18 carat & above purity of gold.
(The security is kept under joint custody of Branch Official & Cashier)
1. For Non-Agricultural Purposes - 30%
2. For Agricultural Purposes
a) For Demand Loan/ CC/ OD: 25% against value of gold ornaments offered as
security as assessed / appraised by the approved valuer.
b) For Term Loan: 50%
a) For Non - Agriculture purpose:
Nature of Facility
Demand Loan
Overdraft Facility
Rate of Interest (floating)

BR+1.50%
BR+2.00%
b) For Farmers (Agriculture Purpose)

Nature of Facility
CC/OD for crop
production
Demand Loan /
Loan Amount
Irrespective of amount
Rate of Interest
Base Rate
Upto Rs 0.50 Lacs
BR+1.00%
___________________________________________________________________________________
121
Term Loan
Penal Interest
Process fees
Repayment
Check points
Discretionary
Power
Above Rs 0.50 Lacs to Rs 2.00 Lacs

BR+1.50%
Above Rs 2.00 Lacs
BR+2.00%
a) Floating On monthly rest (in loan accounts other than Agriculture purpose).
b) For Agriculture purpose loan should be linked to harvesting of crops.
a) Upto Rs 0.25 lacs
NIL
b) Above Rs 0.25 lacs & Upto Rs 2.00 Lacs 1%
b) Above Rs 2.00 lacs
2%
c) No prepayment penalty
Note: The penal interest shall be charged on overdue amount and for the
period of irregularity.
For Non-Agriculture: 0.50% of the loan amount plus service tax, if any.
For Agriculture:
Upto Rs 25000/Nil
Above Rs 25000/- 0.50% of the loan amount plus service tax, if any.
No documentation charges
a) Demand loan is to be liquidated within a maximum period of 12 months.
b) Overdraft facility shall be reviewed / renewed every year.
c) The repayment period of term loan shall be as prescribed as per the
activity, coinciding the harvesting and marketing season / generation of
income from the activity.
Primary gold i.e. gold in any unfinished or semi finished form & includes ingots, bar
blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires shall not be
pledged
Gold Bricks / Biscuits/Sikh Bangles / Kada need not be taken as security for advance
Silver or Diamond jewellery have not to be accepted for advance
Gold ornaments with names inscribed of person other than borrower (s) are not to
be accepted
The valuation of the ornaments must be based on the weight and fineness of gold
contents only
No Objection Letter from wife of the borrower, stating no objection for the pledge
of the gold ornaments
1. For agriculture purpose
Category of Branch Discretionary
powers
Rural
5.00 Lac
Semi Urban
7.50 Lac
Urban/Metro
10.00 Lac
2. For Non Agriculture purpose:
Scale
Power of sanction
I
Rs 2.00 Lac
II
Rs 5 Lac
III
Rs 10 Lac
IV
Rs 20 lac
V & above
Rs 25 Lac
RLCC RH
Rs 50.00 Lac
Bank has obtained master insurance policy from Oriental Insurance Company for indemnifying
gold articles kept in the custody of Bank. The claim in respect of jewelry will be settled on the
basis of value of ornaments recorded in the ornaments register at the time of their pledging.
As such, It is to be ensured that 100% value is being recorded in the ornaments register at
the time of pledging jewelry or ornaments
___________________________________________________________________________________
122
Oriental Loan to Doctors
PURPOSE
ELIGIBILITY CRITERIA
CONSTITUTION OF THE BORROWER
1. FOR ACQUIRING PREMISES ON OWNERSHIP BASIS

REQUIRED FOR RUNNING CLINICS/NURSING HOMES,
2. FOR PURCHASE OF FURNITURE & FIXTURE/FURNISHING,
RENOVATING EXISTING CLINICS.
3. FOR PURCHASE OF STANDARD MAKE MEDICAL
EQUIPMENTS/PROFESSIONAL TOOLS, COMPUTERS/UPS/
SOFTWARE/ LIBRARY/BOOKS
QUALIFIED REGISTERED MEDICAL PRACTITIONERS WITH
MINIMUM
QUALIFICATION
BIMS/BAMS/
BUMS/DHMS/BHMS/ BPT/ MBBS/BDS & ABOVE.
INDIVIDUALS, JOINT BORROWERS, PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
(PVT./PUBLIC LTD.)
CONCERNS WHERE MAJORITY OF SHARE HOLDING IS BY
QUALIFIED MEDICAL PRACTITIONERS ONLY IN CASE OF
FIRMS/COMPANIES.
LOAN AMOUNT
TYPE OF FACILITY
MARGIN
LOCATION
RURAL AREA & SEMI-URBAN
URBAN & METROS
A) TERM LOAN
B)
COMPOSITE LOA
RS 50.00 LACS
RS100.00 LACS
CLEAN OVER DRAFT LIMIT - RS 5.00 LACS (SUBJECT TO
AVAILABILITY OF TANGIBLE
EQUIVALENT TO 200% OF THE
COLLATERAL
SECURITY
OD LOAN LIMIT, WITHIN

THE OVERALL COMPOSITE LOAN LIMIT CEILINGS).
25%
Normal ROI
Loan upto Rs 50000/Loan above Rs 50000/- & upto Rs
2.00 Lac
Above Rs 2 lac to Rs 25.00 Lacs
Above Rs 25 Lacs to Rs 1.00 Crore
(*CR- Credit Rating)
RATE OF INTEREST (FLOATING)
BR+1.75%
BR+2.00%
BR+2.25%
BR+2.50%, If
CR-1
BR+2.75%, If
CR-2
BR+3.00%, If
CR-3
BR+3.25%, If
CR-4
BR+3.50%, If
CR-5
BR+3.75%, If
CR-6
IN CASE OF DELAYED PAYMENT, PENALTY OF 2% ON

THE OVERDUE AMOUNT FOR THE OVERDUE PERIOD
SHALL BE CHARGED.
PROCESS FEE
0.50% OF THE TOTAL LIMIT SANCTIONED SUBJECT TO

MINIMUM OF RS 500/- +SERVICE TAX, IF ANY.
___________________________________________________________________________________
123

Purpose
Eligibility
Criteria
Loan
Amount
Type of
facility
Margin
Rate of
Interest
(floating)
Process fee
For investment in equipment (original cost excluding land & building and furniture,
fittings and other items not directly related to the services rendered) does not
exceed Rs 2 Crore.
Professionals holding a degree/diploma or who in the opinion of the Bank are
technically qualified or possesses skills in the respective field like registered
practicing lawyers, Architects, Chartered Accountants, Chartered Engineers,
PRIME Engineers
SECURITY: etc.
HYPOTHECATION
ASSETS TO BE
Journalists, Management Consultants, Software
Individuals, OFjoint
PURCHASED
/ACQUIRED WITH THE HELP OF BANK'S FINANCE
borrowers, proprietorship & partnership firms
and Companies
AND EQUITABLE MORTGAGE OF BUSINESS PREMISES IF
Maximum Term Loan: Rs 20.00 Lacs
FINANCED BY THE BANK.
OLLATERAL
SECURITY
a) Term loan and b) Clean Over Draft limit -CRs.
5.00 Lacs
(Subject: to availability of
F
OR
LOANS
UPTO
RS 5.00
ACS:- (A) DOCTORS
tangible collateral security equivalent to 200% of the OD loan limit,
withinLthe
HAVING
MBBS
/
BDS
OR
HIGHER
QUALIFICATION :overall composite loan limit ceilings).
ONE THIRD PARTY PERSONAL GUARANTEE OF PERSON
25% of the assets financed
HAVING ADEQUATE NET WORTH PREFERABLY OF SPOUSE
Loan upto Rs 50000
BR +1.75%
(B) OTHERS :- TWO PERSONAL GUARANTEES FOR
Loan above Rs 50000 & upto Rs 2.00 Lac
BR +2.00%
DOCTORS HAVING QUALIFICATIONS OTHER THAN ABOVE.
BR +2.25%
FOR LOANS ABOVE RS 5 LACS AND UPTO RS 10.00
Note:
LACS:-TANGIBLE & REALIZABLE COLLATERAL SECURITY
1. Interest rates on Housing/Car & Vehicle loans shall be charged as
EQUIVALENT TO 50% OF THE LOAN AMOUNT AND ONE
per the rates applicable in respective scheme.
PERSONAL GUARANTEE PREFERABLY OF SPOUSE.
2. 0.25% concession to women beneficiaries.
FOR LOANS ABOVE RS 10.00 LACS:- TANGIBLE &
REALIZABLE
SECURITY EQUIVALENT TO 75%
0.50% of the total limit sanctioned subject to
minimumCOLLATERAL
of Rs 500/-.
OF THE LOAN AMOUNT AND ONE PERSONAL GUARANTEE
Security
Hypothecation of assets purchased/Mortgage of premises, if purchased.

PREFERABLY OF SPOUSE.
Loans Upto 5 Lac: 50% of loan amount amount in the shape of
collateral security and one personal guarantee, preferably of spouse
LOAN CAN BE COVERED UNDER CGTMSE SCHEME
For Loans above 5 lac: 75% of loan amount both in the shape of
INCASE ABOVE COLLATERAL SECURITIES ARE NOT
collateral security and one personal guarantee, preferably of spouse.
AVAIALBLE
In case the loan is required only for acquiring premises, no additional
collateral security shall be insisted.
For purchase of car/vehicle security norms shall be as per car/vehicle loan
scheme.
Repayment
Maximum 84 months including moratorium period not exceeding 6 months.
SECURITY
TOTAL REPAYMENT PERIOD INCLUDING MORATORIUM
PERIOD SHALL NOT EXCEED 7 YEARS AND MAXIMUM
MORATORIUM PERIOD SHALL NOT EXCEED 1 YEAR BASED ON
REPAYMENT
MERITS
Oriental Scheme for Loans to Professionals

Oriental Loan to Traders
PURPOSE
FOR WORKING CAPITAL REQUIREMENTS: FORDAY TO DAY BUSINESS NEED

FOR TERM LOAN:
Acquiring premises/land & constructions on ownership basis required for running
the business /financing of charges pertaining to conversion from lease hold to free
hold of business premises.
For repair, furnishing, renovating existing business premises and/or purchase of
furniture & fixtures.
___________________________________________________________________________________
124
ELIGIBILITY
CRITERIA
LOAN LIMIT
For purchase of brand new equipments, business tools, computers, UPS, software
etc.
TRADERS WHO ARE INDIVIDUALS, FIRMS, COMPANIES, CO-OPERATIVE SOCIETIES, DEALING IN THOSE
GOODS, WHICH ARE NOT PROHIBITED BY RBI/GOVT SUCH AS SMALL BUSINESS CONCERNS/AGENCIES
PROVIDING SERVICES SUCH AS XEROXING, DRY CLEANING, LICENSEE TO DEAL IN PETROLEUM PRODUCTS /
LPG, DRUG LICENSEE FOR THE APPLICABLE BUSINESS, PETROL PUMP DEALERS, AUTO SERVICES CENTERS
ISD / STD / PCO BOOTHS AND OTHERS.
THE MAXIMUM COMPOSITE LOAN RS 50 LACS SUBJECT TO FOLLOWING CEILING.
1. THE WORKING CAPITAL FACILITY SHALL BE ALLOWED BASED ON 20% OF ACTUAL/REALISTIC
PROJECTED SALES.
2. IN CASE OF PETTY / SMALL BUSINESSMEN, BM MAY BE PERMITTED TO ALLOW COMPOSITE DEMAND
LOAN UPTO RS.2.00 LACS REPAYABLE IN 3 TO 5 YEARS ON THE BASIS OF HIS GENUINE BUSINESS
REQUIREMENT, WHERE THE BORROWER IS UNABLE TO FURNISH THE FINANCIAL PAPERS. FOR TERM
LOAN: 75% OF COST OF ASSETS ACQUIRED IN CASE OF TERM LOAN/ PREMISES TO BE ACQUIRED FOR
BUSINESS PURPOSE
MARGIN
RATE
OF
INTEREST
(FLOATING)
PROCESS FEE
SECURITY
REPAYMENT
25% ON STOCKS (WORKING CAPITAL) / ON PURCHASE OF SHOPS / OFFICE PREMISES

Loan upto Rs 50000
BR +1.75%
Loan above Rs 50000 & upto Rs BR +2.50%
2.00 Lac
Above Rs 2.00 Lacs to Rs 25.00 BR +2.75%
Lacs
Above Rs 25 Lacs to Rs 50 Lacs
BR+2.50% If Credit rating is A++ (1)
BR+3.00% If credit rating is A+ (2)
BR+4.00% If credit rating is A (3)
BR+5.00% If credit rating is below A
(4,5,6&7)
IN CASE OF DELAYED PAYMENT, PENALTY OF 2% ON THE OVERDUE AMOUNT FOR THE OVERDUE PERIOD
SHALL BE CHARGED.
0.50% OF THE LOAN AMOUNT WITH A MINIMUM OF RS 500/ +SERVICE TAX, IF ANY.
CASH CREDIT/ TERM LOAN UPTO RS 2 LAC: HYP. OF ASSETS PURCHASED OUT OF LOAN AMOUNT, 3RD
PARTY GUARANTEE OF ADEQUATE NET WORTH, STATEMENTS OF SALES, PURCHASES, GROSS PROFITS,
OVERHEADS AND NET PROFIT. COLLATERAL SECURITY EXEMPTED UPTO RS 2 LAC ONLY.
TERM LOAN/CASH CREDIT ABOVE RS 2 LAC AND UPTO RS 5 LAC- IN CASE OF CASH CREDIT LIMITS
HYP OF STOCKS, IN CASE OF TERM LOAN HYP. OF ASSETS PURCHASED OUT OF LOAN AMOUNT.
COLLATERAL SECURITY IN SHAPE OF NSCS, LIC (SV) OR ANY OTHER TANGIBLE SECURITY WITH
REALIZABLE VALUE, AT LEAST EQUIVALENT TO 25% OF THE TOTAL EXPOSURE ALONG WITH ONE THIRD
PARTY GUARANTEE OF ADEQUATE NET WORTH ACCEPTABLE TO THE BANK. OR MORTGAGE OF IMMOVABLE
PROPERTY HAVING REALIZABLE VALUE AT LEAST EQUIVALENT TO 75% OF THE TOTAL EXPOSURE ALONG
WITH ONE THIRD PARTY GUARANTEE.
FOR LIMIT OF CASH CREDIT / TERM LOAN ABOVE RS 5 LAC
COLLATERAL SECURITY IN SHAPE OF NSCS, LIC (SV) OR ANY OTHER TANGIBLE SECURITY WITH
REALIZABLE VALUE AT LEAST EQUIVALENT TO 50% OF TOTAL EXPOSURE ALONG WITH ONE PERSONAL
GUARANTEE OF ADEQUATE NET WORTH OR EQUITABLE MORTGAGE OF IMMOVABLE PROPERTY HAVING
REALIZABLE VALUE AT LEAST EQUIVALENT TO 100% OF THE TOTAL EXPOSURE.
Term Loan :- 3 - 7 years
Working Capital Limit up to Rs 5.00 Lacs shall be sanctioned for three years and
reviewed every year.
LIMIT ABOVE RS 5.00 LAC SHALL BE RENEWED EVERY YEAR.
Oriental Scheme for Financing Autos/Taxis/Small Cargo Vehicles

___________________________________________________________________________________
125

Purpose
Eligibility
To acquire Autos (3 wheeler), Taxis (4 wheeler) / Small Cargo Vehicles for commercial use
only.
For Individuals & purchase of one vehicle
Valid Driving License
For purchase of More than one vehicle
Valid Driving License with Minimum
experience of 3 years
Individual, partnership, sole proprietorship, private Ltd. / Public Ltd. companies are all
eligible.
Note: The borrower shall obtain valid permit to ply the vehicle as per applicable rules of
Regional Transport Officer (R.T.O).
Loan Amount
No. of
vehicles
Security
clause
Collateral
Security
Margin
Rate of
interest
(Current Base
rate is
10.25%)
Penal
Interest
Process Fee
Repayment
Check points
85% of On Road price (As per pro-forma invoice). Upto Rs 10.00 lacs per vehicle subject to
aggregate maximum limit of Rs 50 lacs.
Up to 10 (ten) vehicles per entity irrespective of it being an individual, partnership, sole
proprietorship, private Ltd./ Public Ltd. Companies.
Hypothecation of Auto/Taxi/ Small Cargo Vehicle to be purchased from Banks Finance.
(The hypothecation clause shall be registered with RTO)
Loan upto Rs 5.00 Lacs
No Collateral Security, Mandatory CGTMSE Guarantee
Coverage
Loan amount above Rs 5.00 50% Tangible Collateral security in the shape of
Lacs upto Rs 10.00 Lacs
Immovable / liquid security or CGTMSE Guarantee
coverage
Loan amount above Rs 10.00 100% tangible collateral Security in the shape of
Lacs
Immovable/liquid security or CGTMSE Guarantee
coverage
15% of the On-Road price of the vehicle(s).
Loan Limit
Normal ROI
If covered under
CGTMSE
Loan upto Rs 2.00 Lac
BR+2.00%
BR
BR+2.00%
BR+1.00%
Above Rs 25 Lacs to Rs 1.00 Crore
BR+2.50%, If
BR+0.50%, If CRCR-1
1
(*CR- Credit Rating)
BR+2.75%, If
BR+1.00%, If CRCR-2
2
BR+3.00%, If
BR+1.50%, If CRCR-3
3
BR+3.25%, If
BR+2.00%, If CRCR-4
4
BR+3.50%, If
BR+2.50%, If CRCR-5
5
BR+3.75%, If
BR+3.00%, If CRCR-6
6
In case of delayed payment, a penalty of 2% on the overdue amount for the overdue period
shall be charged.
0.50% of loan amount with a minimum of Rs 500/ + Service tax, if any.
60 months including moratorium period of 3 months. Servicing of interest during
moratorium period is compulsory.
Line of business, experience, driving history, invoice of dealer/vendor, inspection of vehicle.
___________________________________________________________________________________
126
Oriental Scheme for Financing Against Govt. Securities/LICs

etc
Eligibility
Purpose
Type of Facility
Amount of Loan
Security
Margin
Rate of interest
(floating)
1. Indian Nationals 18 years and above

2. Firms/companies provided the offered securities are in the name of those
firms/companies.
To meet personal expenses/business expenditure except speculative/prohibited
purposes.
1. Overdraft limit (renewable every year)
2. Demand Loan (repayable in 36 months)
Rs 50.00 Lacs (maximum)
Govt. securities, PSU Bonds, Securities/Relief Bonds issued by RBI/ICICI/IDBI, NSCs,
LIC Policies of LIC of India or any other such security transferable/assignable to the
Bank.
1. 10% surrender value of insurance Policy
2. 25% of the face/accrued value of the security in other cases.
BR + 2.00% p.a. with monthly rest
Process/
upfront fee
Penal interest @ 2% p.a. over and above the normal lending interest rate shall be
charged on irregular portion & for the period of irregularity.
Rs10/- per certificate with a minimum of Rs 50/ + Service tax, if any. However,
postal charges, if any, shall also be recovered from the borrower.
Disbursement
Through account of the borrower
Penal Interest
Oriental Scheme for Beauty

Parlours/Boutiques/Saloon/Tailoring by women
Propose
Nature
facility
of
Applicant's
Eligibility
Loan Amount
Margin
Rate
interest
(floating)
of
To develop entrepreneur-ship among women and also to ensure the easy, timely and
convenient access to women to institutional credit.
Term loan
For the purchase of tools/equipment/furniture & fixture, shop etc.
Working capital
For running day to day expenses of business
1.
Proprietary concerns of women
2.
Partnership firms, where majority partners are women
3.
Companies, where majority of promoters shares are held by women
Upto Rs 10.00 Lacs
Out of which WC not to exceed Rs 5.00 Lacs
Loan upto Rs 25,000/Nil
Above Rs 25,000/- & upto Rs 2.00 Lacs
15%
Above Rs 2.00 Lacs & up to Rs 10.00 Lacs
25%
In case of purchase of shop the margin will be 25% irrespective of loan limit.
Loan Limit
Normal ROI
If
covered
under CGTSME
Loan upto Rs 50000/BR +1.75%
BR
___________________________________________________________________________________
127
Penal
Interest
Process fee
Security
Repayment
Prepayment
Penalty
Loan above Rs 50000/- & upto Rs 2.00 Lacs

BR +2.00%
BR
Above Rs 2.00 Lacs & up to Rs 10.00 Lacs
BR +2.25%
BR+1.00%
Penal interest @ 2% p.a. over and above the normal lending interest rate shall be
charged on irregular portion & for the period of irregularity.
0.50% of the loan amount with a minimum of Rs 500/-.
Primary: Charge over the assets (movable & immovable) purchased out of Banks
finance.
Collateral
Up to Rs 2.00 Lacs NIL
Above Rs 2.00 Lacs- Tangible collateral security up to 100% of loan value.
For Term Loan- the repayment period is 5 to 7 years with maximum moratorium of 3 to
6 months.
NIL
Oriental Loan against Deposit

Purpose
Eligibility
Type of Facility
Amount of Loan
Security
Margin
To meet personal expenses / business

expenditure except speculative / prohibited
purposes.
1.
All Indian Nationals of 18 years and
above.
2. Firms/companies.
3.
Advance against deposits to Trust/Society
/HUF/Club/Associations of Persons etc.
1. Overdraft limit (renewable every year)
2. Demand Loan
Rs 500.00 Lac (maximum)
Note: RBI directions and circular issued by IBD
Deptt from time to time shall also be complied.
Pledge of duly discharged unencumbered
deposit receipt issued by our bank only (Only
parent branch).
S.No. Details of deposit
1.
Advance against Self Deposits less than 6 month
2.
Advance against Self Deposits 6 months & above
3.
Advance against Third Party Deposits
S.No.
1.
Purpose
Eligibility
Loan amount
Margin
Details of deposit
Advance against Self Deposits
less than 6 months
Rate of intere
1.50% over t
interest on depo
To finance Earnest Money Deposit for applicants

of purchasing
flatsDeposits
/ plots under
2. desirous
Advance
against Self
1.50% over t
scheme by State Housing Boards / Urban Development 6Authority
(SHB/UDA).
months & above
interest on depo
Any person or group of persons, singly or jointly having capacity at least to repay the
3.
Advance against Third Party 2.00% over t
Earnest Money Loan.
interest on dep
100% of Earnest Money Deposit subject to maximum ofDeposits
Rs 10.00 Lacs
Base Rate
Nil
___________________________________________________________________________________
128
Rate of
Interest
Upfront Fee /
Other charges
Base rate i.e. 10.25%

Upfront interest (fixed for scheme period) to be recovered for the period of scheme.
NIL
Security
a)
b)
Lien on Earnest Money Deposit with SHB/UDA.

The lien of our Bank shall be got noted with the authority. After the draw, Earnest
Money Refund order of unsuccessful applicants shall be sent by the authority directly
to the Bank instead of the applicant.
c)
Upfront Interest amount equivalent to period of draw (as declared at the time of
launch of scheme by the development authorities, normally 180 days) be deposited
by the borrower with the bank prior to release of loan and shall be kept under bank
lien.
Safeguards:
a)
Repayment
Disbursement
A rubber stamp shall be affixed on face of the application form showing that
application money has been financed by them.
b)
Get the Earnest Money Finance column ticked in the form and fill in the detail of bank
in the next column.
i)
In case of non-allotment: Earnest Money Loan shall be adjusted out of the
proceeds of refund from SHB / UDA along-with interest and other charges.
ii) In case of allotment: If borrower requests for servicing balance installments
payable for purchase of plot/ flat, it may be considered subject to repaying capacity
and eligibility criteria as per Housing loan policy.
iii) In case of non-liquidation of Earnest Money loan due to delay in draw by
authority: Matter to be suitably taken up with relevant / appropriate SHB/UDAs as
the case may be.
Entire Earnest Money Deposit (including margin) shall be paid directly to State Housing
Board/Urban Development Authority along-with application on behalf of borrower.
Loan application
Letter of undertaking from borrower (Annexure-A).
Application-cum-Authority Letter from the borrower (Annexure-B).
DP Note / Agreement to loan
Other documents to be obtained:
a. Photocopy of Application
b. Two crossed Post Dated Cheques favoring Oriental Bank of Commerce
c. Identity & Residence Proof (such as Ration Card / Pan No./ Passport / Voter
Card) to comply KYC norms
Rate of interest (floating)
Penal interest shall be charged equal to clean
overdraft rate of interest for the period of
Penal Interest
irregularity, in case the account is irregularly
overdrawn.
Process/ upfront fee
NIL
Disbursement
Through account of the respective borrower
Description of Deposit
The deposit stand either in the name(s) of the
borrower himself/borrowers themselves, or in
a. Self Term Deposit
the names of the borrower jointly with another
person
b. Third party Term Deposit
The deposits do not stand either in the
Documentation
i)
ii)
iii)
iv)
v)
___________________________________________________________________________________
129
.
name(s) of the borrower himself/borrowers
themselves, or in the names of the borrower
jointly with another person
No Loan shall be granted against the deposit of
Other Banks.
Scale
Rs
In
lacs
I
75.00
II
75.00
III
200.00
IV & Above
Fill
c. Other Bank Deposits
Discretionery power
Points to remember:
1. Loans upto Rs. 500 Lac shall be considered under Retail Loan.
2. Branches should not allow creating FDRs out of overdraft allowed. (Circular no.
HO:Retail:36:2013-14:908 dated)
Oriental Earnest Money Scheme

Oriental Reverse Mortgage Loan Scheme
Purpose
Eligibility
Loan quantum
Margin
Loan period/ nature

of payment
For receiving lifelong annuity (on monthly basis), to be used for sustenance or
to supplement the cash flow stream of senior citizens in order to address their
financial needs.
No. of borrowers
Single or jointly with spouse in case of a living spouse
Minimum age of first
60 Years
borrower
Age of spouse
60 years and above
The residence (house/ flat) should be self
acquired, self owned and self occupied.
Borrower(s) should have a clear and transferable
title to the property in their names.
Residence
Residual life of property should be at least 30
years.
In case loan is sanctioned in the joint name of
the borrower(s), they must stay together in the
mortgaged property.
Maximum Rs 100.00 Lacs. The loan amount will be released on monthly annuity
basis only.
AGE-GROUP
MARGINS
FOR AGE GROUP 60 TO 70
40%
FOR AGE GROUP 70 TO 80
30%
FOR AGE GROUP ABOVE 80
25%
The tenor of the loan shall be upto 20 years or survival of any of the spouse
whichever is earlier, thereafter periodic annuity payment will not be made.
THE LOAN SHALL BE EXTENDED AS REGULAR MONTHLY ANNUITY PAYMENTS DURING
THE LOAN PERIOD
RATE OF INTEREST
PREPAYMENT PENALTY/
12.75% with monthly rest on Fixed Rate basis
___________________________________________________________________________________
130

DOCUMENTATION &
INSPECTION CHARGES
PROCESS FEE & OTHER

EXPENSES
SECURITY
NIL
0.50% of total Loan amount or half of the first monthly annuity payable to
borrower, whichever is less, subject to maximum of Rs 12,500/- only
1. The legal fee/ charges stamp duty, registration charges, valuation charges,
document stamp charges, & insurance premium of property etc shall be
borne by the borrower(s).
2. In the eventuality of non-payment of above said expenses, bank will recover
these expenses on prorata basis on the monthly annuity payable to
borrower(s) within a period of upto 24 months.
Equitable or Registered mortgage of un-encumbered residential property, in
favour of the bank.
Other important points related with retail credit:
Time norm for Retail Credit Scheme: (Circular no. HO:Retail:36:2014-15:698 dated
01.12.2014)
Scheme
Housing and Mortgage
Loan
Education loan
Vehicle Loan
Time frame for sanctioning by Branch and

RO
For Loans under BM 3 to 7 days after
For Loans under RH Max. 15 days
Within 15 days
At the earliest.
Levy of foreclosure charges/prepayment penalty on floating rate term loans is waived off
except Loan facility other than term loans; Loans sanctioned on fixed ROI & Credit facilities
sanctioned to person other than individual. (Circular no HO:Retail:07:2014-15:101 dated 10.05.2014)
No fresh additional PDS shall be accepted provided branches should obtain 6 PDCs (in CTS
2010 Format) of the account from which ECS Debit Mandate has been given by borrower as
security. While recovery of the EMI will be done by ECS//SI in lieu of PDCs, these cheques
shouldnt be used for the purpose of recovery of regular EMIs as a matter of routine. Where
ECS/RECS facility is not available, branches may obtained PDCs complying with CTS2010
standard for recovery of EMIs. (Circular No HOP:Retail:35:2013-14:907 dated 08.01.2014.
No inspection charges shall be levied under any Retail Credit Scheme, if facility is availed for
personal purpose. However, in case credit facility is availed for business purpose under the
schemes OBLS, OMLS, Loan to Traders etc. inspection charges as per Loan policy or guided by
RMD Deptt. shall be levied. (Circular No. HO:Retail:47:2014-15:979 Date:17.03.2015)
Prior to sanctioning and disbursal of any credit facility under Retail Scheme, the borrower must
be having an operative account (SB/CA/ CC/ OD) with the bank or should open one. (Circular No.
HO:Retail:45:2014-15:924 Date: 21.02.2015)
___________________________________________________________________________________
131
SOME OTHER IMPORTAT POINTS

Basel-III (Some features)
Guidelines on the implementation of BASEL III Capital Regulations were released by the Reserve Bank
of India (RBI) on May 2, 2012. Implementation of these guidelines will begin April 1, 2013 and the
process will be completed by March 31, 2018.
Basel -II
Pillar-I
:
Minimum
Capital
Requirements
Pillar-II: Supervisory Review Process
Pillar-III:Disclosure & market Discipline
Basel-III
Pillar-I: Enhanced Minimum Capital &
Liquidity Requirements
Pillar-II:
Enhanced
Supervisory
Review Process for Firm-wise Risk
Management & Capital Planning
Pillar-III: Enhanced Risk Disclosure &
Market Discipline
Highlights
Banks required to maintain a minimum 5.5% in common equity (as against the current 3.6%)
by March 31, 2015
Banks to create a capital conservation buffer (consisting of common equity) of 2.5% by March
31, 2018
Banks to maintain a minimum overall capital adequacy of 11.5% (against the current 9%) by
March 31, 2018
Risk-based capital ratios to be supplemented with a leverage ratio of 4.5% during parallel run
A countercyclical buffer within a range of 0% - 2.5% of common equity or other fully loss
absorbing capital will be implemented according to national circumstances. The purpose
of the countercyclical buffer is to achieve the broader macro prudential goal of protecting
the banking sector from periods of excess aggregate credit growth
Bharatiya Mahila Bank:
The countrys first pan-India national womens bank launched in Mumbai. Bharatiya Mahila Bank has
been set up with an initial paid-up of Rs 1,000 crore. Led by Usha Ananthasubramanian, all the eight
on the board of directors of the bank are women. The bank aims to increase its branch count to 25 by
March 2014. All seven branches of the Bank are in urban centers- Kolkata, Mumbai, Lucknow,
Guwahati, Chennai, Bangalore and Ahmedabad. India's first ever state-owned women's bank
inaugurated in Mumbai and even though the bank will focus on lending predominantly to women,
there will be no restriction on account opening ( deposits) by men. "We welcome both men and
women to open accounts with us but for loans there will be a positive bias towards women, said Usha
Anantha subramanian the chairperson of the Bharatiya Mahila Bank in an interview with CNBC- TV18.
So basically, deposits will flow from everyone, but lending will be predominantly for women.
THE LOKPAL BILL, 2013
The Lokpal Bill, 2013, also referred to as The Lokpal and Lokayuktas Bill, 2013, is an anticorruption law in India which "seeks to provide for the establishment of the institution of Lokpal to
___________________________________________________________________________________
132
inquire into allegations of corruption against certain public functionaries and for matters connecting
them".
The bill was introduced in parliament following massive public protests led by anti-corruption
crusader Anna Hazare and his associates. The bill is one of the most widely discussed and debated
bills in India, both by the media and the People of India at large, in recent times. A recent survey
estimated that corruption in India had cost billions of dollars and threatened to derail growth.
Following are some important features of the Lokpal Bill :
** Lokpal at the Centre and Lokayukta at the level of the states.
** Lokpal will consist of a chairperson and a maximum of eight members, of which 50 per cent shall
be judicial members.
** 50 per cent of members of Lokpal shall be from SC/ST/OBCs, minorities and women.
** The selection of chairperson and members of Lokpal shall be through a selection committee
consisting of Prime Minister, Speaker of Lok Sabha, Leader of Opposition in the Lok Sabha, Chief
Justice of India or a sitting Supreme Court judge nominated by CJI, eminent jurist to be nominated by
the President of India on the basis of recommendations of the first four members of the selection
committee.
** Prime Minister has been brought under the purview of the Lokpal.
** Lokpals jurisdiction will cover all categories of public servants.
** All entities receiving donations from foreign source in the context of the Foreign Contribution
Regulation Act (FCRA) in excess of Rs 10 lakh per year are brought under the jurisdiction of Lokpal.
** Provides adequate protection for honest and upright public servants.
** Lokpal will have power of superintendence and direction over any investigation agency including
CBI for cases referred to them by Lokpal.
The Banking Laws (Amendment) Bill, 2012
The key amendment brought in under the Bill and its effect on the Indian banking sector as a whole.
AMENDMENTS
Powers Granted to RBI Under The Bill
New Bank Licenses and Greater Regulatory Oversight.

The Bill enables the Reserve Bank of India (RBI) to issue new bank licenses to corporate houses
which will give the RBI greater regulatory oversight over local banks & the ability to overrule
board of directors of a banking company for not more than 12 months and appoint an
administrator for managing the company during that period.
The Bill also seeks to increase the rates of existing monetary penalties that RBI can impose on a
bank if it disobeys RBI rules, directives or gives false information. These amendments shall be
conducive to the changing banking scenario because with the issue of new banking licenses the
need shall arise for greater regulatory control.
Acquisition of Shares and Voting Rights
Prior approval of RBI shall be needed for acquisition of 5% or more of shares or voting rights in a
___________________________________________________________________________________
133
banking company by any person. The RBI shall be empowered to impose such conditions as it
deems fit in this regard.
Amendment Related To Public/Private Sector Banks
Revised Voting right

Private Sector Banks: The Bill increases shareholders' voting rights from 10 per cent to 26 per
cent in private sector banks, making investment attractive for foreign players.
Public Sector Banks: This Bill also enables the government to raise voting rights in PSBs to 10
(ten) per cent from the current 1 (one) per cent, acceding partially to foreign investors' demands
to have more say in Indian banking.
In the shareholders meeting voting is done on many issues (for example election of Board of
Directors, Changing name of the Company etc.) but in case of public banks the shareholders have
only 1% voting right irrespective of number of shares held so they cannot heavily influence any
decision. So this amendment will make the voting rights proportional to the number of shares held
by shareholders and will attract foreign investors to invest in Indian banks.
Banking Merger
The Competition Commission of India will approve M&A (Mergers and acquisitions) in banks
except in the case of banks that are under trouble. In such cases, the RBI will have the final
authority,
Raising Investments
The Bill enables the nationalized banks to raise capital through "bonus" and "rights" issue and also
enable public sector banks to increase or decrease the authorized capital with approval from the
Government and RBI without being limited by the ceiling of a maximum of Rs. 3000 crore under
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980.
CTR is Cash Transaction report. This report contains:

All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
STR is Suspicious Transaction report. This report contains:
All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated. All 61
alerts are to be implemented by March 2014 in Phases.
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any transaction
is to be reported under STR.
___________________________________________________________________________________
134
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
UNIQUE ID TO CUSTOMERS
The Reserve Bank has extended the deadline for banks to complete the process of allotting a unique
customer
identification
code
to
their
customers
to
March
31,
2014.
Banks, however, will have to allot the Unique Customer Identification Code (UCIC) to all customers
while entering into new relationships.
The increasing complexity and volume of financial transactions necessitate that customers do not
have multiple identities within a bank, across the banking system and across the financial system, RBI
had said.
The objective of the UCIC is to help banks identify customers, track facilities availed, monitor financial
transactions in a holistic manner and to have a better approach to risk profiling of customers.
It also helps to smoothen banking operations for the customers.
DISCLAIMER: The contents in this booklet are based on Information collected from various
sources which we believe to be reliable. However, we do not hold ourselves responsible for
any short comings or error therein.
___________________________________________________________________________________
135

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ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION

C/O CORPORATE OFFICE, GURGAON

With best wishes,

All India Oriental Bank Officers Association___

Important Banking Indicators

Important point from Banks Circulars

Banking & Financial Updates

Commonly Asked Interview Questions

Legal Aspects (SARFAESI/Lok Adalat/ TDS etc)

Recovery &NPA Norms

Retail Credit Products

Other Important Points

All India Oriental Bank Officers Association___

Consider the following topics

Complete knowledge of your present assigned work.

Some Tips for Interview.

All India Oriental Bank Officers Association___

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

Chairman & Managing Director

All India Oriental Bank Officers Association___

Important Banking Indicators

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

IMPORTANT POINTS FROM BANK'S CIRCULARS

ATAL PENSION YOJANA (APY) CIR NO. GBC/5/2015-16/111 Dt. 08-05-2015

All India Oriental Bank Officers Association___

ORIENTAL PERSONAL LOAN SCHEME FOR HOME LOAN BORROWERS (cir

4. RISK BASED PRICING BASED ON RAROC METHODOLOGY (cir HO/RMD/08/201516/106 dt 08-05-2015)

All India Oriental Bank Officers Association___

Pradhan Mantri Jan-Dhan Yojna (PMJDY)-Overdraft (OD) facility of upto Rs.5,000/- -

(Cir No. RD & PS:78:2014-15/909 dt. 13-02-2015) -

Running OD facility in Saving Bank (SB) account

36 Months subject to annual review of account

a) 4 times of Average monthly balance

All India Oriental Bank Officers Association___

Base Rate +2.

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

Mobile Number of the borrower/family members to be kept on record

Guarantee cover upto 60% of default amount in PMJDY

All India Oriental Bank Officers Association___

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

sr. Existing Guidelines

The minimum installment is fixed at Rs 10/

All India Oriental Bank Officers Association___

One transaction is allowed in a month in

In case SI facility is not opted by the

SB-208 Capital Gain Savings

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

RETAIL LENDING- Compliance of Codes of Banks Commitment to Customers (cir No.

Processing Fee for Retail Loans, SME and Agriculture

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

100 (unsecured portion)

100 (unsecured portion)

3rd & 4th year

5th year onwards