E-GYAN

SBLC, MASULIPATNAM

E-GYAN, PART-2
OCTOBER-2013
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

EDITORIAL
Life is simple is the most quoted proverb by many philosophers and people
of wisdom from times immemorial. Life is not such an easy thing. It is more
complex beyond ones imagination is also quoted by equally well versed and
eminent people on equally good number of occasions. Why such
contradictory statements is the million dollar question which may give rise to
another assumption Wise men can state anything to their own comfort.
However, the reality is that the contradiction is not pertaining to the above
statements but to the awareness levels of the individuals and piquant
situations in which those individuals are placed as well as to the context of
the situation.
The finer point of the above analysis is that awareness makes complex
situations simpler and ignorance makes simple situations more complex.
Being aware and not being aware is the state of individual.
Our small contribution to the SBI community in the direction of creating
awareness and enriching knowledge is the current release of e-GYAN for
October, 2013 which is a token offer of our faculty to the large SBI
community.
Hope you may like it!
We deeply acknowledge the inspiration derived from our Deputy General
Manager & Cir Dev Officer Sri. Prabhakar HemantKumar Pammi, Asst General
Manager (HR) Sri. R.S.N. Murthy and Chief Manager (L&D) Shri. G. Vasudev
Prasad which resulted in coming out with the e-editions.
D.SYAM PRASAD
ASSISTANT GENERAL MANAGER (TRAINING)
STATE BANK LEARNING CENTER
MASULIPATNAM

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

ACCOUNT STATEMENT ON SINGLE PAGE

Compiled By Sri. P.Brahmananda Rao, Manager (Training)
Many of the customers request branches for statement of account periodically. When
we try to print account statement on laser printers (any make), statement of one page
will be printed on two pages and column alignment will be in such a way that it will be
very difficult to comprehend. However, our customers accustomed to this type of
account statement. But look at the paper being wasted at our 15000+ branches (may
be with a few exceptions).
SETTINGS TO BE CARRIED OUT IN SERVER FOR GETTING PRINT ON A
SINGLE PAGE:
BROTHER PRINTER: Go to Start -- Setting -- Click on Printer and Fax -- Right Click on
the Printer connected with Server --Click on Printing preference -- Click on Basic Tab -Select Paper size JIS B4

1. Click on Advance Tab -- Select Fit to Page Size -- Select Letter -- OK

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

HP LASTER PRINTER
Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connected
with Server --Click on Printing preference -- Click on Effects -- Select Print Document
onSelect Paper Size-Letter----Uncheck-Scale to FitEnter 91%--Apply -- ok

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

CANNON PRINTER:
Go to Start -- Setting -- Click on Printer and Fax -- Right Click on the Printer connected
with Server --Click on Printing preference -- Select Page Size B4Check Manual
Scaling ----Enter 80 %--Apply -- ok

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

GO GREEN
TREES

SAVE PAPER

SAVE

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

KNOW YOUR CHEQUE (KYC OF CHEQUE)

Contributed by Sri.V.Venkata Narayana, Manager (Training)
As you may be aware, adherence to CTS-2010 standards has inherent advantages as
the security features in these Cheque forms help the presenting banks to identify the
genuineness of the drawee banks instruments while handling them in the image based
scenario. The homogeneity in security features acts as deterrent against frauds and the
fixed field placement specifications facilitate straight-through-processing at drawee
banks end through the use of optical/ image character recognition technology.
As per RBIs directives, following mandatory security features have been incorporated in
the CTS-2010 Cheque standard:
Paper:
All security forms of the bank are now printed on MICR grade cheque paper. Difference
between MICR grade cheque paper and other security paper are on technical
parameters. Bleaches are not mixed with pulp during the manufacturing process of the
security paper. Security papers are not totally white & have creamish tinge.

(CTS-2010 Standard paper should not glow under Ultra-Violet (UV) light i.e., it should
be UV dull)
Watermark, with the word CTS-INDIA:
All cheques shall carry a standardised watermark, with the words CTS-INDIA which
can be seen when held against any light source. This would make it difficult for any
fraudster to photocopy or print an instrument since this paper would be available only
to security printers handling cheque printing.

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

The present water mark containing our Banks logo and name (both English & Hindi
version) as supplementary watermark.
VOID pantograph:
Pantograph with hidden / embedded VOID feature included in the cheques. This
feature will not be visible on the scanned image at the resolution specified in CTS but
will be clearly visible in photocopies and scanned colour images as resolution used in
such cases would be above the prescribed CTS standards. This would act as a deterrent
against colour photocopy or scanned colour images of a cheque.

(CTS 2010cheque having most important feature VOID pantograph Can be checked
by photocopy of the cheque)
Banks logo in Ultra Violet ink:
Banks logo printed in ultra-violet (UV) ink. The logo will be captured by / visible in UVenabled scanners / lamps. It will establish genuineness of a cheque.

(Standard banks logo in CTS cheque visible through UV lamp)

Standardized fields placement:
All Cheques are subject to Standardized Field Placement such as Date, Payee Name,
Amount in Words and Figures, Drawee Account No., Drawee Signature space etc have
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

been standardised and the new cheque forms should adhere to these standards and all
Cheques are printed in light pastel colours.

(Copy of Sample Cheque indicating field placement)

Cheque printing Colours and Background:
All cheques are required to be printed in light pastel colours. SBI Cheques are printed in
light blue colour (Multi City Cheques) and in light pink colour (Bearer/Order cheques
other than Multi City Cheques).

Pre-printed account number field:

All cheques should, as far as possible, be issued with the account number field preprinted. This should be considered must for current account holders and corporate
customers.
Micro Lettering in place of line:
All Cheques will have micro lettering in place of line for payees name and amount in
words. Micro lettering of cheque can be verified through magnifying glass.

(Micro Lettering under magnifying glass)

New rupee symbol:
Banks using new rupee symbol ` instead of using bilingual format at CAR (Courtesy
Amount Recognition) amount in figure field.

e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

(Standard CTS cheque with new Rupee Symbol)

Printers name along with printing CTS-2010 establishing CTS-2010
compliance:

(Printers Name along with printing CTS 2010)

Fugitive ink:
Background design shall be printed in fugitive ink which gets smudged on contact
with water. If the ink does not smear, the cheque treated as fake and payment
should not be made. In case, any fake cheque for Rs.25,000/- and above is detected
which does not contain any mark of smear, it would be assumed that no testing had
been carried out.

(Fugitive Ink test by water droplet)

The testing of fugitive ink must be carried out by the branch officials for payment of
cheques for value Rs. 25000/- and above as per instructions contained in e-circular
No.NBG/S&P-SP/21/2009-10 dated 19.12.2009.
Secondary fluorescent ink:

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

The portion where we dropped water on cheque for testing for fugitive ink and got
smashed and also glow in UV light (the smashed area only).
Some other important features of our cheques:
Non Multicity Cheques are issued either as BEARER or ORDER CHEQUES
Multicity Cheques are always ORDER CHEQUES
Prohibiting alterations / corrections on cheques:
No changes / corrections should be carried out on the cheques (other than for date
validation purposes, if required). For any change in the payees name, courtesy amount
(amount in figures) or legal amount (amount in words), etc., fresh cheque forms should
be used by customers. This would help banks to identify and control fraudulent
alterations.
Benefit of the CTS 2010 standard cheque:

The stronger security features in the CTS 2010 cheque makes it easy for the
presenting banks to confirm the genuineness of the drawee banks instruments.
The standardization of security features would act as a deterrent against fraud
and enhance customer safety.
The fixed field placement would enable easy processing at the drawee banks
end.

FACSIMILE OF FORGED CHEQUES:

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

Water Droplet Test should be done on two places on the Cheque to see:
i) Back ground Print is smudging with water application,
ii) Bold Prints of the cheque remain intact & do not smudge in water.

Method to be adopted.
a) Put water droplet just below the Pantograph (VOID) or below the drawing limit
clause to see that Background Printing is smudging with application of water droplet.
Cheque is deemed to have passed the test if it does so.
b) Also put water droplet on BOLD PRINTING areas like on the top,
where Bank
Logo and Bank Name is printed ,these are supposed to be printed with permanent ink
and should not smudge with application of water droplets. If it smudges in water, the
cheque should be suspected as fake cheque and Drawer / Home Branch should be
contacted immediately.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

THE PROBLEM WITH SMS ALERTS

Contributed by Sri.G.V.Rao, Chief Manager (Training)
Many a time our customers are told- Sir, from here on you will start receiving SMS
alerts on your mobile. But the customer gets annoyed very soon as he never gets the
SMS. The visibility which he expects about his transactions gets affected along with the
trust and confidence on the banks product.
The problem is very simple. Troubleshooting the problem is even simpler. Many of us
believe that setting SMS Required to YES under Miscellaneous of Deposit Tabbed
Screen at the time of Account creation will enable the customer for SMS alerts. But not
so!
Along with the above step, the SMS parameters are to be set up at account level by
choosing the option Deposit /CC/OD Accounts & Services--- Amend-Deposit/CC/OD
Account-SMS Details and setting the 7 parameters for messages on different
occasions. All of them may appear YES. Even then, transmit the screen and
get it authorized. Your customer will be a happy SMS customer.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

If the customer fails to receive SMS Alerts despite doing all this, please contact at the
following e-mail addresses and contact numbers.
E-MAIL ADDRESSES:-

1) fssots.asc@sbi.co.in
2) sms.asc@sbi.co.in

CONTACT NUMBERS:-

1) 022-27583717
2) 022-27561655

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

STATE BANK SECURE SOFTWARE TOKEN

(SECOND FACTOR AUTHENTICATION)
Contributed by Sri. P.Brahmananda Rao, Manager (Training)
State Bank Secure is a mobile resident application which generates the one time
password (OTP) in lieu of SMS OTP, for authenticating transactions in OnlineSBI. It
generates OTP instantaneously and eliminates the need for SMS OTP. The State Bank
Secure functions independent of the mobile network, hence change of your mobile
number/service provider will not affect your online transactions. The mobile resident
application State Bank Secure is PIN protected on your hand set / device to prevent
its misuse by unauthorized person.
PROCEDURE TO OBTAIN STATE BANK SECURE:
After logging on to OnlineSBI, in the Profile section under State Bank Secure, you will
find a link Apply for State Bank Secure.

Click on that link which will generate a

reference number and a form which needs to be submitted to your branch. Branch will
approve your request if in order and will provide you a Pre-printed kit or you will receive
the password kit through post.
STATE BANK SECURE SOFTWARE:
The software can be downloaded from Google Play store/ Android market.
PROCEDURE TO ACTIVATE:
Once you receive the Pre-printed kit, you will have to enter the kit credentials on Sate
Bank Secure link under Profile section of OnlineSBI. You will have to enter pre-printed
kit number and the password provided on the kit (Please ignore the username
mentioned in pre-printed kit). After validation by the system, you will be shown serial
number and activation code for activating your software token.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

It is advisable to download and install State Bank Secure on your hand set / device
before hand for immediate activation by inputting the serial number and activation
code in the application.
DEVICE CODE:
When you activate the State Bank Secure by inputting serial number and activation
code, you will immediately get the screen in your hand set / device showing device
code, which needs to be entered in OnlineSBI during first time activation process. By
this registration process will be completed.
ADVANTAGES TO THE USER:
User can authenticate online transactions / operations in OnlineSBI by generating OTP
from State Bank Secure instantaneously.
The facility is going to be launched for public shortly.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

DIGESTING SUCCESS AND HANDLING POWER

Success is more a function of consistent common sense than it is of genius.
(An Wang)
Contributed by Sri. P.Padma Babu Goud, Manager(Training)
Plenitude and prosperity make us lazy and inactive. When our power is secure we dont
feel the need to act. This becomes a serious danger, especially for those who achieve
success and power at an early age. Playwright Tennesse Williams, for instance, found
himself skyrocketed from obscurity to fame by the success of his play, The Glass
Menagerie. The play was a smash-hit in Chicago, burst its way to Broadway, and won
the New York Drama Critics Circle Award for best play of the season.
The sort of life which I had previous to this popular success, he later wrote, Was
one that required endurance, a life of clawing and scratching, but it was a good life
because it was that sort of life for which the human organism is created. I was not
aware of how much vital energy had gone into this struggle until the struggle was
removed. I sat down and looked about me and was suddenly very depressed.
With no fresh challenges in sight, with no more mountains to scale, Williams
eventually had a nervous breakdown. This, in fact, proved good for him. He was in the
valley once again. He could see new mountain slopes, which beckoned and challenged
him to climb again. He started his journey again and produced his most famous work,
a Streetcar Named Desire.
Russian novelist, journalist and short-story writer Fyodor Dostoyevskys
psychological penetration into the human soul profoundly influenced the 20th-century
novels. He presented characters with contrasting views about freedom of choice,
socialism, atheism, good and evil. Interestingly, whenever he wrote a successful novel,
Fyodor would feel the financial security he had gained which made the act of creation
unnecessary. He would then go to the casino and gamble away his entire wealth so he
could be reduced to poverty once more and be able to write again.
Not just monetary success, but even power has a curious way of climbing. It goes
to the head,makes those around you restless and unhappy and leaves you delusory.
A journalist was once visiting a town to meet the Mayor, but before the meeting, he
went to a few people and enquired from them about him. The following were some of
the responses he received.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

The petrol pump attendant said the Mayor was a bum, a housewife remarked he
was lowlife, while the priest of the town thought the man was a scoundrel. Everyone,
the journalist spoke to, held a poor opinion of the Mayor. So, while chatting with the
Mayor, the journalist finally asked him, How much do they pay you here?
Oh, nothing. I took this job just for the honour of it, the Mayor replied. He had
no clue that contempt lurked behind the deferential exterior of people towards him.
So when power gets to ones head, one is greatly inclined to become insensitive and
vain, and it is very important to guard oneself against this vanity, lest we turn into
caricatures of ourselves.
Also, if the past successes are not quickly digested, the psyche begins to disfigure.
It is imperative, therefore, to quickly digest the power one achieves. There are several
ways of doing it. First every achievement should be viewed as a milestone, not as a
mountain peak. If past glories begin to weigh heavier than your future dreams, take it
as a warning that decay is setting in. Enjoy the adulation, respect and comfort that
success brings, but dont become complacent. Remember, what made these pleasures
possible and sustained the efforts that led you till this point, as the thrill of life lies in
the journey; destinations are mere parking spaces to stretch your limbs and refuel.
Action is life, lassitude is death. So when you reach one landmark, relax and relish the
experience, but do not abandon the effort required to travel further. Set the bar
higher.
Or look at people whose achievements are bigger than yours. Seeing your place in
the larger scheme of things also helps change ones perspective as this story illustrates.
Socrates was sitting in his school with several of his students, when an extremely
rich and famous man of Athens entered the hall to meet him. Socrates didnt notice his
arrival and continued his discussions with his students. The man felt affronted but still
decided to wait a while. But with every passing minute, his anger mounted. After
about half an hour of waiting, he suddenly shouted at Socrates, You dont know who I
am?
Socrates looked at his visitor and said, let us decide that too. He called for a world
map and asked this man to point out where was Athens in the map. After careful
scrutiny, the man pointed to a little speck. Socrates then asked him to point out on the
map where his estate was, where his palace was and so on. Realizing those possessions
that he was so proud of were specks within specks in the larger scheme of things, the
man was at a loss and came to terms with his own insignificance. The lesson was

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

completed. Socrates folded the map and handed it over to him as a reminder of his
humble status in the world.
Similarly to be conscious of our mortality grounds us.
Another tip for digesting power is to develop your feminine polarity. Man is
aggressive by nature; woman is compassionate. The Bible states, God completed the
creation of the world in six days, yet every subsequent day, he kept refining his
creations until he created man. Even then he was not satisfied. So he took a bone from
mans rib created a woman a more refined version of man. In fact, a man becomes
complete and capable of great achievements only when he recognizes his own feminine
polarity - his warm, giving and kind self.
Cultivating a sense of humour about oneself also helps handle success. Humour
grounds us and helps us connect with others thus proving a good antidote for the
isolation that power brings. The ability to laugh at ourselves insulates us from other ego
mistakes.
Understanding the principles of Tao, the hidden order that governs the universe, is
the key to handling power. The principle of cosmic justice is based on the maxim that a
person reaps what he sows. The doctrine of karma and belief in divine retribution are
different expressions of a common principle that the world is governed by the principle
of justice. Justice (balance) is inherent in the fabric of the cosmos.
Thus when giddy with power we lose touch with our inner rhythm, or the Tao, and
behave recklessly or cruelly, retribution does come. It perhaps does not come from
some God sitting in the heavens, but from within us when, due to our physical and
mental imbalance, we are no longer available to our possibilities.
The recognition of the role of luck in our achievements also helps keep humility alive
in us. It is indeed not just ones prowess, but also providence that leads him to a
position of power. This realization subdues the ego.
Lastly, we need to learn to love our people and be kind to them. Love is and
enzyme that digests power, and compassion is the best antidote against powers
corrupting influence.

SOURCE:
PAVAN CHOUDARYS BOOK HOW A GOOD PERSON REALLY CAN WIN
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

TRANSFORMATIONAL LEADERSHIP A PANACEA FOR

ORGANIZATIONAL DITHERING
Contributed by Sri.G.V.Rao, Chief Manager (Training)
In the democracy which I have envisaged, a democracy established by
nonviolence, there will be equal freedom for all. Everybody will be his own
master. It is to join a struggle for such democracy that I invite you today.
Once you realize this you will forget the differences between the Hindus
and Muslims, and think of yourselves as Indians only, engaged in the
common struggle for independence Sri. MOHANDAS KARAMCHAND
GANDHI, the exemplary transformational leader standing tall above all
those leaders in that creed.

I have a dream that one day this nation will rise up and live out the true
meaning of its creed: We hold these truths self evident :that all men are
created equal. The vision of Martin Luther King of a future desired state
in his popular I have a dream speech. He may be cited as standing in the
frontline of transformational leaders.

Today many organizations in the world are struggling- to find a secured place in the
market thwarting intense competition, to cope up with the umpteen and unpredictable
changes, to fine tune themselves to the several complexities appearing like flash bulbs
on business landscape etc. Corporations are hunting for suitable business strategies.
They are in search of their core competencies. A constant worry for the future is taking
a heavy toll of their present stake.
No doubt, todays market realities are extremely complex and most of the time they are
fast changing. Technology has ushered in a new era- suddenly demarcation between
businesses vanished. Organizations engaged in one area of business started expanding
their horizons taking advantage of the technology and the phenomena perhaps
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

influenced services sector more than primary sector. New organizations emerged on the
global business turf with newer and superior technologies and globalization is fuelling
the germination and the growth of new economy organizations. In India, post-1990s
witnessed the mushrooming of new organizations across service sector taking
advantage of LPG (Liberalization, Privatization and Globalization). Old economy
organizations were grappling for growth and sustenance and some of them struggled
hard to stay back in the market.
Perhaps, it is the general slowdown caused by so called global meltdown, which
prevented the fall of many traditional, conservative old economy organizations in India,
which failed to change themselves.
In the above context, most of the time the unanswered question lurking in the dark is
the role leadership has to play across all

organizational layers-right from the top

management to a supervisor working at the gross root level. What model of leadership
is required in these turbulent times is attracting the academicians attention more
frequently.
In the above backdrop, the recent focus of much academic debate is on
transformational leadership, which is one of the four broadly accepted contemporary
leadership models. The other three contemporary leadership models are- transactional,
charismatic and authentic.
This recent obsession of management academicians with transformational leadership
model doesnt throw a surprise as the model confirms to the present day demands.
According to certain academicians like P.L.Cox, there are two fundamental categories of
leadership- transactional and transformational. Some contemporary experts in
management and human behavior like McGregor Burns described transactional model
as the simple exchange of tangible compensation and rewards for the work done and
loyalty exhibited by the followers. In this process, the leadership directs and motivates
the followers by appealing to their own self interest.
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

Transformational model was described as engaging the followers at much higher level
i.e.; at moral level or at higher order intrinsic needs above Abraham Maslows basic
hierarchical needs, thereby inspiring followers to embrace a new vision of possibilities
and developing followers into leaders and leaders into moral agents.
The congruency of various academicians postulates regarding transformational
leaders can be summarized as under:
Facilitates people in progressive redefinition of mission and vision.
They anticipate future trends and prepare to move the organization in that
direction in a proactive manner.
They are courageous, ethical and full of initiative.
They are assertive risk takers and do not hesitate to seize new opportunities.
They are thoughtful thinkers who can understand organization in the context of
environment and can formulate and implement strategies by inspiring followers
to embrace the path of new possibilities.
They make employees or followers to look beyond their self-interests for the
collective good.
They convert followers into leaders and leaders into better leaders.

Most authors proposed that transformational leadership includes four key components1.

Inspirational

motivation

2.Intellectual

stimulation

3.Idealized

influence

4.Individualized consideration.
1. Inspirational motivation:
All transformational leaders can visualize future which may be significantly different
from the present and they guide the followers into future by providing them with a
sense of meaning and challenge as well as by creating a sense of commitment to the
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

vision of the future. They inspire by what they say and do, perhaps attributable to their
charisma or aura. They play on the intrinsic motivators of the followers like sense of
pride, self esteem etc.
2. Intellectual stimulation:
Think out of the box is the biggest slogan of transformational leadership. Their motto
is not to leave any questioning of us to our competitors and better to question
ourselves before that. Creating new ideas and exploring for innovative solutions is a
sought after thing for them and in this process they do afford high tolerance towards
failures, mistakes and do not resort to blame game. They positively subscribe to
abandoning of practices which are no longer useful and whose relevance is a question.
Followers become aware of their capacities and capabilities.
3. Idealized influence:
Followers of transformational leadership identify themselves with the leader. Followers
repose ultimate trust in such leaders and they admire him to the hilt. To earn this
idealized influence, transformational leaders often consider the needs and interests of
the followers over their own, sometimes involving sacrifice of their own interest.
Though transformational leaders may use little power to get their own interests served,
they use all their powers to benefit their followers, which further the idealized influence.
They are very often referred to by followers as makers or mentors of their careers.
4. Individualized consideration:
Transformational leaders perform all types of supportive roles to their followers like
mentor, coach, teacher, facilitator, counselor etc and bestow individual consideration
depending on their individual talent, capacity and resourcefulness. Followers are not
only empowered, but also guided in carrying out the task without any fault fingering.
According to many management experts, transformation leadership creates
synergy, that synergy which is needed to bring people together for exploring
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

new alternatives appearing dim on the horizon and better than the individual
alternatives put forward by each of them.
It is no wonder that transformational leadership creates competencies
required

for

strategic

change

into

future

enabling

organizational

improvement, effectiveness and positive shift in organizational culture.

Hence in these days of environmental turbulence where nothing is static or
even semi-static, it is the futuristic vision of transformational leadership that
can rescue organizations from falling into oblivion.
The inference may be truer for Public sector Undertakings of India which are
having lifetime employment practices and as such wherein the inertia
against

change

is

more

felt.

Transformational

leadership

can

yield

performance far beyond expectations.

References:
1. Bass, B.M. Bass & Stogills Handbook of Leadership.
2. Anderson T.D Transforming leadership: Equipping yourself and
challenging others to build the leadership organization.
3. Some articles from journal of leadership education.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

TIT-BITS FROM KHL (KNOWLEDGE HELP LINE)

01. How to review/renew KCC Limit. What are the necessary documents to
be obtained for review/renewal of KCC Limit. KCC Limit is reviewed annually
but after how many Years KCC Limit need to be renewed.
Answer: Dear Sir, As per the revised KCC scheme one time documentation ie.,
AB1,AB2 & AB3 where ever applicable need to be obtained for the Maximum
permissible limit as per the revised documents which contain the Maximum
drawl limit for every year. It is valid for 5 years. The KCC is
reviewed/renewed on the repayment of the amount before the due date, i.e.,
31 st Jan for Kharif and 31 st July for Rabi. Simple declaration (Details of
crops raised/proposed) by farmer from the second year onwards, as per our
renewal application is to be obtained.
02. Sir, In our SBI Realty Home Loan, 1. Within 2 years whether the
Borrower has to finish the construction or commencement of the
construction is enough? 2. If the commencement of construction is enough,
then what is the period to complete the construction? Can he take his own
time, say 5 years to complete the construction? 3. Can the new house can be
built for very low value? (Eg. Land cost Rs.15.00 lac, house built for only
Rs.2.00 lac)
Answer: Dear Sir, SBI Realty is introduced with a view to effectively tap the
home loan potential available in the market. As per this scheme the
maximum period stipulated for construction of house is 2 years from the date
of availment of loan. Accordingly, branches should obtain suitable
declaration from such borrowers, undertaking to construct a house on the
said plot of land within the aforesaid period and also authorizing the Bank to
charge higher rate of interest as deemed fit by the Bank or even recall the
loan, in the event of failure to construct the house within the above
stipulated periods. Penalty in case of delay in construction: Interest rate as
applicable to Personal Loan against Mortgage of Immovable Property or
5.25% above the Base Rate, whichever is higher, will be applied if:
Construction of house is not commenced within the maximum stipulated
period. The higher interest rate will be charged after the expiry of period
stipulated for commencement of construction. However once the
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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam

construction of the house is commenced on the plot financed by the Bank,

the interest rate spread vis--vis Base Rate/SBAR in the account contracted
at the time of original sanction of loan will be restored.

03. Sir we are maintaining fixed deposit of 2 rural co-operative banks. The
TDS is deducted from their respective accounts. what are the tax exemptions
certificates are to be obtained from the banks
Answer: Tax is NOT deductible at source from interest payable to the
following: 1. Any Banking company to which the Banking regulation Act,1949
applies. 2. Any Co-operative society engaged in carrying on the business of
banking. 3. Any financial institution/ corporation estabilished by or under a
Central, State or Provincial Act.
04. Sir, a non-IOI DD issued on 19/01/2010 in favour of "State Bank of
Hyderabad" payable at SBH Sathupalli for Rs.6840/-. This DD belongs to
MRO Tiruvuru and came for cancellation. While cancelling the DD system
replies as "no branch record found" the details of DD are DD no : 134396
date : 19/01/2010 prefix: 2701 serial no : 891423 key : nijbuq issuing
branch : tiruvur (0794) drawee branch : sbh sathupalli (0293) please guide
us on how to cancel it?
Answer: Payment and reversal of old drafts are normally blocked by DRD
(Draft Reconciliation Department), Corporate Center.The above draft
mentioned by you is sufficiently old and hence might have been blocked by
DRD for payment / reversal. Therefore you take up with DRD for releasing
the above entry so that reversal can happen at your end.
05. Sir, please explain what s RCSA?
Answer: It is a technical, systematic and extremely focussed process for
identifying significant and dominant risks that may crop up from the
products, processes and activities of organizations so that a technical and
professional framework for risk mapping can be created with the objective of
assessing the risk profiles and identifying risk ownerships. the end process of
RCSA is to chalkout risk mitigation plans and reporting the above 3 processes
of identification, assessment and mitigation plans in structured and
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implementable ways.
06. A institution like Ram Krishna mission wanting to purchase a ambulance
by opting a loan option. i just want to know if the credit proposal could be
processed or not. if yes than by which scheme and if no than why not?
Answer: Most of the Non-Profit organizations are organized in the form of
Trusts. If the Trust Deed and other related bye-laws permit borrowings for a
specific purpose, then the same can be financned by Banks. However the
same is subject to regular screening for Technical/financial feasibility,
Commercial/economic viability etc.
07. Is it necessary to be witnessed by an a/c holder for a payment of
withdrawal to an "LTI"?
Answer: Sir, We reproduce the Bank's guidelines as per the Master Circular
on Savings Bank Account in respect of LTI Account transactions. Ordinarily,
only personal withdrawals against production of the relative pass-book will
be allowed to an illiterate depositor. When he desires to effect a withdrawal
he should call at the Bank and present his pass-book to the operator. After
the depositor is identified on the basis of the photograph on the Banks
record and/ or the identification marks, if any, recorded on the account
opening form, the operator will fill in the withdrawal order form for the
required amount. The depositor will thereafter affix his left hand thumb
impression on the face of the withdrawal order form at the place provided for
the signature of the depositor and also on the back of the form. Before
passing the withdrawal for payment, the passing official will arrange to call
for the depositor and, by personally referring to the photograph and/ or the
identification marks, if any, ensure that the withdrawal is being infact made
by the depositor himself. He will also ascertain from the depositor the correct
amount of withdrawal and in token of having done so, affix his initials
against the amount mentioned in the withdrawal order form.
08. Many of our customers are complaining that they are not receiving SMS
alerts when withdrawing money from ATM and from CBS as well. But they
are getting SMS alerts when they are crediting the amount. We have checked
in the CIFs and confirmed the mobile number is correct and also checked at
account level whether there was yes at SMS option or not. How to resolve
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this?
Answer: Go to Deposit CC OD accounts> Amend >Drop Down option: SMS
Details, Enter particulars in the screen. Also in Deposit CC OD accounts >
Amend > Tabbed Screen, in core options, remove all zeros in lower part of
the screen including Extension counter.

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e-Gyan, A contribution by State Bank Learning Center, Masulipatnam