1

(For Internal Circulation Only)

BRANCH MANAGERS KIT
Compiled by
K.V. NANDKISHORE, AGM & FACULTY (Mktg.) &
I.S.RAO, AGM & FACULTY (HR)
STATE BANK STAFF COLLEGE
HYDERABAD
JULY 2010
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Preface to Branch Managers Kit
It has been widely acknowledged, not only in the State Bank of India, but in the entire
Banking Sector in India, that the Branch Manger or Branch Head plays the most critical
and challenging role in sustaining and developing business. He/ She is also the key
motivator and leader who channelizes all the resources available to towards rendering
excellent customer service, promoting business development and profit growth. The task
of the Branch Manager is multifarious, demanding knowledge, skills and requisite
attitudinal orientation. He/ She must be updated on knowledge of instructions regarding
systems, procedures, rules, regulations, risk mitigation, environment, marketing, etc.
Today, thanks to technology, knowledge is available very easily, at the click of the
mouse, but the Branch Manager may not find time to access different sources to meet
the multiple requirements of his role. A need has been felt for a compendium of
important information/ instructions, in the area of general management, useful
specifically to the Branch Manager. State Bank Staff College has endeavored to bring
out a compendium of such useful instructions/ information in the form of a Branch
Managers Kit. I am glad that the College has been successful in bringing out this kit,
which I am sure will help the Branch Managers in performing their roles more effectively.
I place on record my appreciation of the Sr. Faculty and Faculty of State Bank Staff
College, Hyderabad who have contributed to the Branch Managers Kit. I also appreciate
the co-operation rendered by the Faculty of State Bank Institute of Information and
Communication Management (SBIICM), Hyderabad to the College in this endeavor.
Strategic Training Unit, Mrs. Mahpara Ali
Corporate Centre, Chief General Manager
Hyderabad (Learning and Development)
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FOREWORD
State Bank of India is today the largest financial conglomerate in the country offering a wide
range of financial services and products. Despite competition from Foreign and Private Banks, it
remains the market leader and has in recent times forayed into new areas of business in
response to the changing paradigm. Employees are required to continuously adapt to the
changing environment. With over 12000 branches spread over the length and breadth of the
country, the Branch Manager in such a large organization is expected to be an effective leader,
whether it is on the heights of Himalayas or on the sea shores of Kanyakumari or in the thick
jungles of Nagaland or in the hot deserts of Rajasthan. The role of the Branch Manager is
complete in itself, and calls for multi-dimensional skills and competencies.
To the customer, and the general public, the Branch Manager represents the face of the Bank.
Public opinion about a Bank depends to a very great extent on their experiences with the
Branch Manager. For his team of staff members, he is the leader, who has to have a vision for
his small unit, set goals and objectives to realise the vision, and gently but firmly guide his team
into the valley of achievement. He is, as well, a dependable extended arm of the Regional
Manager, through whom, the controller is able to translate into reality his expectations from the
Branch. To the peer level groups of Banks and financial institutions in his area, B.M. represents
his Bank. The role of the Branch Manager is thus a multifaceted role, requiring varying
approaches to the different segments of society with whom he has to interact, calling for a high
degree of versatility.
The demands of the job on him are many. Not only is he the Business Manager, he is also the
Administrator, Planner, HR, IR and PR man for the Bank at the field. He is responsible for
business development and marketing, maintaining high order of customer service, efficiency in
accounting, compliances vis-a-vis the regulatory authorities and the Banks own instructions,
while at the same time ensuring good quality of assets.
A first-time Branch Manager may well be daunted by the prospect. We, at the State Bank Staff
College, Hyderabad, have attempted to collate some of the essential reading material that a
Branch Manager must know, in the form of this book, which we have named the Branch
Managers Kit. The focus has been on operational risk, with inputs in soft skills, marketing and
Core Banking Solution. Suggestions for improvement are welcome from one and all.
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I appreciate the efforts of Sarvashri R. Ganesh, DGM & Sr. Faculty (MD); K.V. Nandkishore,
AGM & Faculty; and I.S. Rao, AGM & Faculty in compiling and updating this book. I also
appreciate the efforts of 20 Branch Managers and two Asst. General Managers from Hyderabad
Circle and 33 Branch Managers from all over India who participated in two pilot programmes
conducted at Staff College in the months of May and June 2010, for their valuable feed-back/
suggestions and their value addition to the contents. We are thankful to the Director, Joint
Director and the faculty of SBIICM, Hyderabad for actively cooperating with us and for their
valuable contributions.
State Bank Staff College USHA R. NAIR
Hyderabad PRINCIPAL
July, 2010
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CONTENTS
S.No. Topic Page
No.
1 TAKING OVER OF ASSIGNMENT 6
2 BRANCH MANAGER DRILL 10
3 INDICATIVE CHECK LIST FOR BRANCH MANAGERS 12
4 BRANCH MANAGERS DAILY DRILL ON CBS 16
5 BRANCH MANAGER : POINTS TO PONDER 18
6 KNOW YOUR CUSTOMER 32
7 BANKING OMBUDSMAN SCHEME 36
8 CITIZENS CHARTER BANKING CODES & STANDARDS BOARD OF INDIA 40
9 EFFECTIVE FUND MANAGEMENT 43
10 PERFORMANCE BUDGETING 45
11 PREVENTIVE VIGILANCE 49
12 PREVENTIVE VIGILANCE : CHECK LIST 53
13 DOS AND DONTS ISSUED BY RESERVE BANK OF INDIA 61
14 AN OVERVIEW OF RFIA AND TIPS TO INCREASE YOUR SCORE 64
15 AREAS IN CBS, ATM ,INB & ADVANCES TO BE LOOKED INTO WHILE
ASSUMING CHARGE AS BRANCH MANAGER
67
16 IMPORTANT EOD REPORTS RELATING TO GENERAL BANKING OPERATIONS 72
17 IMPORTANT EOD REPORTS RELATING TO ADVANCES & NPA 80
18 NPA MANAGEMENT TIPS 85
19 LEGAL TIPS ON NPA MANAGEMENT 90
20 EXECUTION OF DECREES : ORDER 21 CPC 92
21 CUSTOMER FOCUS 98
22 THE DIFFERENTIATORS 102
23 HANDLING ANGRY CUSTOMERS - A FEW TIPS 104
24 RETAIL BANKING AN OVERVIEW & MARKETING TIPS 105
25 EIGHTEEN SKILLS FOR MANAGERS 114
26 TIME MANAGEMENT 116
27 BUSINESS ETIQUETTE 122
28 EMOTIONAL INTELLIGENCE (El) 128
29 TEN HABITS OF PEOPLE WITH HIGH EQ 132
30 TRAINING INTERVENTIONS AT BRANCHES 133
31 ANNEXURE I : FORMAT OF DISATSTER RECOVERY & BUSINESS
CONTINUITY PLAN
136
32 ANNEXURE II: BRANCH MANAGERS MONTHLY CERTIFICATE 154
33 ANNEXURE III: HANDING OVER/ TAKING OVER LETTER COS 330 166
34 ANNEXURE IV: RELIEVING BRANCH MANAGERS CERTIFICATE COS 331 167
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1. TAKING OVER OF ASSIGNMENT
The Branch Manager being overall in-charge of the branch, the responsibility of business
development, staff development, proper housekeeping and image building rests with him. The
following procedure may be adopted for taking over charge of a Branch Manager.
1) Go through the Inspection Report, Verification Audit Report, Statutory Audit Report, RBI
Inspection Report and other audit reports, if any. A perusal of all audit reports will give
you a feel of the total branch. Note down the irregularities and ascertain their present
position by discussing with the outgoing Branch Manager, wherever possible in person
or over phone and if necessary with the branch staff.
Carefully go through the observations made in GHSI (Group Heading of Serious
Irregularities) of last Inspection Report and cross check them with relevant records.
Examine the ratings awarded to various core-parameters/ sub-parameters in the last
Inspection and Audit Report. This will help you in identifying the deficiencies in the
functioning of the branch.
2) Pursue the items to be scrutinised in Relieving Branch Managers Certificate
(Reproduced in this booklet) and ask the outgoing Branch Manager to facilitate
verification of items relevant in the branch.
3) For taking over of branch advances, ask for balancing of outstandings in various
accounts with Loan Balance file. Check the maintenance of advances data, such as
inspections, drawing power, stock statements and despatch of control returns. Where
applicable, for knowing the correctness and safety of advances, the following checklist
may be adopted:
a) Are all limits sanctioned under proper authority?
- Verify the sanction letter and/or proposal regarding the sanction of limits
by the appropriate authority.
b) Where sanctioned under discretionary powers, have they been duly reported to
the next higher authority?
- Verify the control returns register and office copies of control returns.
c) Are the outstandings within the permissible drawing power? Verify the stock
statements and Drawing Power Register.
d) Are all the loan accounts classified properly? Verify that all loan accounts bear
periodic asset classification under authentication, and backup registers/returns
containing approval of appropriate authority are being maintained at the branch.
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e) Are drawing powers adequately backed by assets?
- Carry out the Inspection of the securities pledged/hypothecated to the
Bank as primary security. ( on a random basis internally)
- Take the set of terms and conditions of relative sanction for verification.
- Verify the stocks hypothecated to the bank with the latest stock statement.
- Check whether Banks name boards (with emblem) indicating the charge
are prominently displayed.
- Meet all important borrowers and discuss their units affairs/problems.
f) Is the collateral security properly secured, i.e., properly charged to the Bank?
- Verify the original title deed (sale deed/lease deed with approved map in
case of house property) with the particulars recorded in title deed register
and connected papers, i.e.
i) Lawyers opinion report in regard to clear and marketable title,
ii) Non-encumbrance certificate,
iii) Urban Land Ceiling Certificate.
iv) Necessary permissions from appropriate authority like permission from
the government agencies for mortgaging the leasehold property.
v) Standard letters from customers confirming deposit of title deed, at the
notified centre.
vi) Affidavit of the depositor of title deed (mortgagor) that he/they is/are the
bona fide owner(s) of the property, and that no other claimant is there,
and all the taxes have been fully paid. In this connection verify the latest
tax receipt, i.e. wealth, property, municipal tax, etc.
- Verify the implementation of Circular instructions relating to equitable
mortgage, (formalities relating to creating of equitable mortgage vary
from one state to another state).
- Verify the ledger accounts and the transactions being put through it.
4) Verify the security documents relating to advances/loans and verify whether they are
appropriate, current and enforceable. Each account should be checked with the
documents execution register, term loan ledger, relative file and daily list. See that all
documents are adequately/ properly stamped. Alterations must be duly authenticated by
the executants.
5) Position regarding follow-up of items outstanding in Recalled Asset accounts should be
ascertained. Verify suits filed or decreed, and also ascertain the position of periodical
review/renewal of accounts. There is need to prepare a suitable action plan to clear the
relative arrears, if any, within a reasonable time after taking over.
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6) Verify the Demand, Collection and Balance Register and Inspection Cards for the
agricultural loans. Understand the cropping pattern of the area(s).
7) Arrange for balancing of the outstanding bills with the respective bills accounts in the
General Ledger of the system. Verify the documents held under BBRs, LBCs and DBRR
with the related registers. See that the documents are lodged properly and kept after due
acceptance by the drawee. Verify whether the due dates are properly diarised in the
daily list, and that the branch is following the procedure of advising nonpayment and
recovery of unpaid bills with interest on due date. The details of returned bills should
also be advised to the Controlling Authority.
8) Ascertain that a register with appropriate particulars of receipt and disposal is being
maintained at the branch for all lOA/DRC/Agency Clearing enquiry memos (including
caution memos).
9) Check the check signal apparatus and code books. The duplicate check signal
apparatus should be opened and resealed after checking, and returned to the strong
room if it is not already surrendered to the LHO. Check signal apparatus and code books
should be kept under lock and key during the day but in the fireproof safe over night.
10) Check the Branch Documents entered in the Branch Document Register and
Miscellaneous Securities Register (which secure the Banks interests), including the
insurance of Banks and customers properties and valuables. The fixed assets register
should also be checked.
11) Check the securities held at the Branch pending disposal. Check the balance of stamps
held in the stamp account. Obsolete, unusable forms should be sent to appropriate
authority for refund, under advice to Controlling Authority.
12) Arrange for withdrawal of duplicate keys for verification from the neighbouring branch.
After verification it should be released and re-deposited. The fact of withdrawal should
be duly recorded in the branch key register and advised to the Controlling Authority.
13) Read the approved memorandum of protective and security arrangements. Verify
whether the relative instructions are translated into the local language and read,
understood and signed by all members of the staff. Here, there is a need to minutely
examine the security arrangements prevailing at the branch. Ensure that the security
arrangements prescribed by the Controlling Authority and the suggestions made by the
Security Officer during his visit to the Branch are being meticulously implemented.
14) Check and note the emergency arrangements to be followed in the event of sudden
incapacitation of the Branch Manager. Protective and security arrangements, including
fire protective systems notices, locking up arrangements, Police patrolling, emergency
alarm bells and lights should also be adequate.
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15) Refer to the relative books and ensure that the Branch Managers monthly certificate
(Annexure II) depicts the true picture of positions obtaining at the branch. This will help
you in getting a feel of the branch.
16) Study the P form, Branch Dossier (which provides the data for Branch Budget and
budget assumptions) and Disaster Recovery/ Business Continuity Plan (Annexure I).
Make realistic plans for achieving the budgeted goals; discuss the problems and
potential with the outgoing Branch Manager and staff members.
17) Verify whether the records are properly kept at the branch. Issues from records should
be noted systematically and access to record-room should be regulated.
18) Ensure that deposit accounts kept are efficiently maintained and the balancing is up-to-
date and periodicity is regular. Check whether the interest provisions for various deposit
accounts are being made at the branch regularly/accurately.
19) Verify the availability of various Acts (Central/State) and Circulars for reference.
20) Verify whether the Customer Service Committee Meetings and Customer Relation
Programmes are being held at stipulated intervals under advice to the controlling
authority.
21) Verify the customer call cards. Prepare an ABC analysis of customers, classifying them
into different categories, based on their business dealings with the Bank and value of
connections. Also note down the names of the important Govt. and Public Officials in the
area (with a view to meet them at the earliest).
22) Verify the documents relating to branch and its premises, viz., approved maps/ lease
deed/ title deeds/ licenses and their validity. If the premises are taken on lease/ license,
check the rent receipts etc.
23) Verify insurance of cash, cash in transit, fixed assets, gun licenses, ammunition, fire
extinguishers, anti termite treatment, time lock on strong room, security alarms,
communication system with nearest police station, etc.
24) Visit local police station, senior police authorities and other important government
officials in the town.
25) Once taking-over is complete send the following three certificates to Controlling
Authority:
a) the handling-over and taking-over letter on form COS-330 (Annexure-III)
b) the Relieving Branch Managers certificate on form COS-331 (Annexure IV) and
c) the Cash Verification Report on form COS-45.
--(0)--
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2. BRANCH MANAGERS DRILL
DAILY
In the morning:
Please ensure that:-
BOD is done well before the start of business hours
Visit customer area to see whether all the customer amenities like water, water filters,
water coolers, lights, fans, air coolers, air conditioners, wash rooms, broachers,
vouchers, signboards, furniture, drop-box etc are in order and adequate.
Check the complaints/ suggestion box.
Check all the security systems/ electrical wirings/ fire extinguishers, etc. are in order.
Check whether the security guards are on duty with gun, if applicable. Check whether
the guns are loaded and sufficient ammunition is available with them.
Get all the vouchers of previous day, scrutinize and do second crossing.
Scrutinise all checked reports and at random check at least one of the checked VVRs.
Read the e-Mails received at the branch and initiate suitable steps. If the e-mail is
received from an outsider, acknowledge receipt immediately pending final disposal.
Physical Cash in ATM is agreed with Cash Balance figures of ATM switch Centre,
Belapur.
Follow-up pending items, if any, against request/instructions received for internet
Banking
Reports/ VVRs are ready for delivery
Verify the Roster Register to ensure that all the reports have been delivered and
acknowledged for checking.
The VVRs and other reports are checked properly and vouchers are cancelled by
checking officials properly
Check and scrutinize:
Exception and Control Reports
Irregular Excess Drawings Daily Report
Before EOD:
Online Checking no Queue / Batches should be pending
Referral no item should be pending
Verification of System Suspense Accounts
Verify that Branch Cash Balance as per the BGL and CGL account agrees with Physical
Cash
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MONTH END:
Verify and Ensure:
BMs Monthly Certificate with Annexure for CBS has been sent
Outstanding entries in Sundry, Suspense, IBIT, B.Chq, and other BGL accounts for
prompt reversal
Verify the following: P Form Report, Staff Accounts
Service Tax is paid before the due date
TDS is remitted before the due date
AT PERIODIC INTERVALS:
Ensure that
Officials & employees are adhering to the security norms meticulously
The staff members are aware of the IS Security instructions.
Reports are filed properly and preserved as per the Banks Instructions
Adequate stock of paper, toners, CDs etc. are available at a short notice
Employees and officials are trained
Scanning of all Customers Signature is done at the branch/ LCPC
--(0)--
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3. INDICATIVE CHECKLIST FOR BRANCH MANAGERS
Hardware:
Details of machines with location and number to be maintained in a Register
AMC to be done before the expiry date
Insurance to be renewed before expiry date
Preventive Maintenance of computer/UPS/AC/ generator
Cleaning arrangement once in a fortnight
Software:
Only Banks authorised software
Symantic Endpoint Protection antivirus software is loaded and up to date in the Server
and all PCs
Keep watch against Un-licensed/Pirated software
All software licenses & media in safe place
Input forms for users right are authorised by you and these forms are given a numerical
sequence
User IDs of transferred/retired employees should be transferred/ deleted, as the case
may be, immediately.
No user is having any rights on CBS, which are not approved by you
Password:
Passwords are kept secret by all users and never shared with others
Ensure that the passwords of official / generic IDs pertaining to INB / ATM, etc., kept in
sealed covers is preserved in Branch Documents.
Security:
Post EOD Signal Dat backup to be obtained and preserved as per extant instructions.
Verify all the system room registers periodically
Disaster Recovery Plan and Business Continuity Plan approved by the controller are on
record and circulated to all the staff members concerned. All committees as per the BCP
are functional and also meeting at the stipulated intervals.
Data Input Procedure:
An operator makes entry in the system only on the strength of Vouchers or Input Forms
Vouchers/ Input-Forms are stamped with Partition Number and initialed by operators
after posting
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On Line Checking, Verification and referral batches are done by officers immediately
after data entry by operators
Introduce the Missing Voucher Register and Error Rectification Register
Checking of VVRs and other Reports:
Roster Register is maintained by Manager (Services) /Manager (Accounts)
Reports are distributed through Report Distribution Register
Voucher packets of the day are prepared properly, and kept ready for checking officials
All VVRs and other reports are checked promptly and regularly
All mistakes detected during checking of VVRs / Reports are rectified before next EOD
INDICATIVE CHECKLIST FOR MANAGER OF DIVISIONS
Input Forms are prepared by operators and used for all Non-Financial transactions in
your division.
Cheque Referred and Returned Register is used for payments resulting Limit Excess
and payments in Dormant/Inoperative Accounts.
All Stock Statements received are entered in the system or sent to CPC.
All errors/mistakes found out in VVR checking are entered into the error register and
corrected entries made immediately.
There is No Missing Voucher. If any, enter immediately into missing vouchers register
and ensure preparation of dupl. voucher immediately
VVR Checking Official cross the vouchers himself and ensures rectification of any wrong
entry found at the time of checking.
All Computer Operators & Supervisors are following good security Practices necessary
for the computerized system.
Monitor checking of all other Reports generated by the system. After checking of
Reports & VVRs scrutinize them regularly.
Authorisation is done promptly just after the entry is made and no entry remains
unauthorized at day end.
The supervisors clear referral batches promptly.
There are no pending queues of any transactions.
There is no outstanding in System Suspense Accounts at day end.
INDICATIVE CHECKLIST FOR PASSING OFFICIALS:
All vouchers are passed after due scrutiny.
All Vouchers should have Partition Stamp, Queue / Batch & Journal Number with the
initials of Operators / passing officer
Input Forms are prepared and signed by the authorized official for all Non-Financial
Transactions
Cheque-Book Issue, if any, should be done by the operators and delivered to the
customer. Input forms will be prepared by operator and after duly authenticated by the
concerned official.
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Vouchers are available for all the financial transactions entered in the system.
Protect your password. Change your password frequently.
All Queues and batches are to be authorized after verification with the respective
vouchers as early as possible.
Verify that there is no unchecked item and there is no pending batch before the EOD.
While checking please ensure that mandatory fields (displayed in aqua marine colour)
are verified carefully (Account Number, Amount, Cheque Number etc.)
Any deviation calling for Supervisory override to be checked with care.
CHECK POINTS FOR VVR CHECKING
VVRs are checked and error rectification entry, if any is made before EOD.
Rectification of wrong entry, if any, is the responsibility of VVR checking official.
Error Rectification Register is in use in the Branch.
In case of any missing voucher, enter in Missing Voucher Register.
All value-dated transactions are to be dealt with additional care and caution.
On receipt of the VVR from Manager (Services), verify the VVR with the vouchers.
If there is no voucher found for an entry, missing voucher to be traced. Enter the same in
Missing Voucher Register and if necessary obtain the duplicate voucher. Any transaction
without any supporting voucher should be a suspected entry and must be dealt with
accordingly.
User ID & Checked ID to be perused. Transactions with unusual IDs are to be examined
with extra care.
VVRs after checking should be signed on each page.
Please check carefully:
All advances have Correct Interest Rates. .
There is no Credit Interest Rate in C/A, CC, and ACC accounts.
All accounts with debit balances have Debit Interest Rates.
Verify whether correct Transaction Type was used for Cheque Transaction.
*****
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4. BRANCH MANAGERS DAILY DRILL ON CBS
SL
NO
AREA ASPECTS TO BE LOOKED INTO
1 BOD PROCESS
Ensure that the BOD Process is completed well before commencement of
the days working hours and shadow files are successfully uploaded
2
SERVICE DESK
Log into the Service Desk to check for any announcement made by CBD,
Belapur. Any relevant information/announcement to be printed and
circulated amongst all the operating functionaries of the branch. Also to
verify, from the relative register and screen-prints for all the Users in the
branch, if there is any outstanding Service Desk Request.
3
REPORTS
Verify/ensure that all the reports for the previous day have been received. If
any report has not been received, ITS department at L.H.O. may be
contacted for obtaining the same. All reports are to be printed and checked
as per allotment made through suitable office order. The Branch Manager
has to ensure that the reports are checked on day-to-day basis and
corrective action, if any, has been initiated.
The Branch Manager should scrutinise the checked reports, particularly the
following:
Voucher Verification Report
Credit Balance in Expense A/c
GL DAYBOOK
Daily Report on Accounts Opened & Closed
GLCNTR
Report of High-Value Transactions
GLCOMP
TDS Daily Report
Failed Standing Instructions Report
Monthly TDS deducted
Audit BGL Accounts Age wise Report
Exception Reports
List of Non-zero Intermediary Accounts
ATM Suspense Postings Report
List of Segment wise INCA
List of User Report
Delayed Stock Statement
CC/OD and Loans Balance File
Irregularity Reports in respect of advances
Probable NPA Report & List of NPA Accounts
DDP Outstanding & DDP Control Purchase
List of Accounts due for revival
Pending Collection
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4
CASH
To ensure that the physical cash balance agrees with the BGL and CGL
cash balance before the EOD signal is sent for the day. Differences, if any,
to be followed up with the Cash Officer/Accountant for
rectification/reconciliation
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EOD
Ensure that all EOD checks are complied with, before sending the EOD
Signal. Call for the EOD signal screen print to confirm that the EOD signal
has been sent properly, with the message Host EOD flag successfully
updated appearing at the bottom of the screen. Register meant for
recording EOD/BOD timings to be checked
6
USER
MANAGEMENT
(a) Ensure that a suitable officer is designated for User Management.
(b) Users to be created on written instructions from the BM and screen print
of the Service Desk request to be scrutinised for correctness.
(C) Register(s) maintained for User Management User Id Register; Sign
on Reset Register; Forced Closure Register; etc., to be scrutinised.
(d) To ensure that IDs of Users Transferred from the Branch are transferred
and those of retired employees are deleted.
(e) Reiterate the importance of maintenance of Password Secrecy by all
Users at the branch.
7 OTHER AREAS
(a) Verify or seek confirmation from the official concerned that the position
of Customers Signature Scanning is up-to-date or specimen signature
cards are sent to LCPC concerned.
(b) Verify the Calendar for the next month and ensure that
Holidays/Sundays are declared correctly as Non-Working days.
(c) Ensure that the rectification carried out in CIS data are invariably
incorporated in the CBS also.
(d) Reports for all the days to be preserved by copying to a separate
file/folder on a separate PC.
(e) Monitor for Host Data Synchronisation to be run at regular intervals to
ensure that changes made, if any, in the CBS are updated in the Branch
server.
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5. BRANCH MANAGER: POINTS TO PONDER
CAPSULES
I) CUSTOMER SERVICE
Customer is the most important visitor on our premises. He is not dependent on us. We
are dependent on him. He is not an interruption on our work. He is the purpose of it. He
is not an outsider on our business. He is a part of it. We are not doing him a favour by
serving him. He is doing us a favour by giving us an opportunity to do so.
- Mahatma Gandhi
To reflect our commitment to provide excellent customer service, we have introduced a
code of fair banking practice called Towards Excellence to be followed by the branches
in our relations with personal banking customers. The code has been written to promote
fair banking practice and improve the service standards at the branches. It is subjected
to regular review to ensure that it has continuing relevance to customers needs, which
evolve with time.
Areas of Concern
However, the customer service at our branches still not at the desired level. In spite of all
the efforts taken by the Bank to improve the customer service, we are faced with
declining market share and poor quality business. The areas of concern are:
Extremely conscious of his rights
Demands service of a very high standard
Prepared to switch loyalties
Expects best products & service
Quality of Service
Manner of delivery
Price competitiveness
Fluctuating Market Share
Over the years we have seen our market share fluctuate in almost all categories of
business. Our competitors have, at times, been able to grow faster than us, and perhaps
taken away the business, which would have otherwise come to us. The reasons for this
could be:
Poor service
Delayed response
Inflexibility
Rude behaviour
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Customer Expectations
Ours is a service industry. A natural question to ask is - What does a customer expect
from us? Our customer expectations transcend beyond products. It is therefore,
imperative for us to adapt our systems and procedures as well as our thinking to
manage the customers expectations. His expectations are broadly as follows:
He is well received and listened to properly
He is properly guided and doubts cleared
Bank personnel are present at their desks/counters well in time
The premises are clean and well organized
There is warmth and understanding
His letters/queries are promptly attended to and communicated
Fulfilling Customer Expectations:
Customers satisfaction will normally be influenced by the interactions with our Front Line
staff. It is necessary that the customer is fully satisfied with the prompt service and
courteous behaviour of our Front Line Staff. To achieve this we have to ensure that the
Front Line Staff:
Have up to date knowledge of systems/procedures/schemes
Show basic courtesies
Listen carefully to what the customer has to say
Customer Service in the Bank
The bank has over the years institutionalized a certain set of guidelines, systems, and
procedures to be followed, to show that we care for the customer. The following
structured fora are put in place towards this end.
Customer day - 15th of every month
Customer Relations programme - monthly/quarterly
Customer Service Committee meeting - monthly/quarterly
Branch Management Committee Meeting - at desired frequency
Customer service improvement plan
Customer Grievances Redressal mechanism at Branch/ZO
Customer service audit for compliance with Goiporia committee
recommendations
Complaint cum Suggestion Box
Upkeep of premises
Customer conveniences
Convenient layout for smooth work flow
Motivate frontline staff for providing excellent customer service
Update job cards and arrange for periodical briefing
Improve skill/knowledge and reorient attitude of staff through structured on-site
training
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Complaint Management
It is well documented that complaints are only a feedback for improvement. A customer
cares to complain because he wants to continue with the Bank. If not he would rather
quietly move over to some other bank. Every complaint is an opportunity to reinforce our
commitment to the customer, which results in greater customer loyalty. The major areas
under complaints are:
ATM transactions
Delay in collection is the single largest component
This is closely followed by opening/operation/transfer of accounts and delays in
remittances
Staff misbehaviour accounts for 4% of the complaints can be managed by
Identifying and following up complaint prone branches
Conducting survey of branches on complaint management and redressal system
Identifying and rewarding complaint free branches
Taking steps to achieve zero complaint status
Achieving Customer Delight
The ultimate objective of a service industry would have to be achieving customer delight
for its customers. It means offering more than what a customer normally expects. To
practice customer delight, we need to understand the customer and do that little extra
for him. We endear a customer by our concern for him, and expressing it in every little
thing we do for him.
Leverage technology to the fullest extent
Provide single window service
Provide ATMs at strategic places convenient to the customer
Have data base of the top customers of the branch and be in touch with them for
their banking needs
POINTS TO PONDER
The Customer pays our salary. We exist because of him.
Service delayed is service denied
A smile costs nothing and works wonders with customers.
Three sweetest words - Please, Thank you and Sorry will do wonders
All gossip and no work breeds inefficiency
Winners dont quit, quitters dont win
Winners keep, losers weep
Win an argument: Lose a customer
96% dissatisfied customers do not complain, they simply quit
21
Why customers quit
1%die
3% move away
5% form other associations
9% for competitive reasons
14% because of product dissatisfaction
68% of the customers quit because of our attitude of indifference towards them
Majority of the customer expectations are reasonable
Handle difficult customers with tact
Customer satisfaction is profit; Everything else is overhead
Customer complaints are like burning embers, extinguish them instantly
However insignificant the complaint may be, it may be occurring due to some systems
deficiency. Try to rectify them before it results in fraud or in any other major loss to the
Bank
Managing complaints is everybodys business
One satisfied customer will bring you 100 more
One dissatisfied customer will prevent 1000 prospects coming to you
If you are not meeting your customers regularly, you are creating dissatisfied customers
> Every customer is essential for the well being of the organization > Customer
complaints should not be taken as an unwanted nuisance
Listening to complaints helps to keep small complaints from turning into big ones
Handling complaints are opportunities for learning/improving
Major areas of concern (as per analysis of complaints received by the Bank for the half
year ended.
Main causes of complaints are :
Lack of job knowledge
Shortfall in delivery system vis-a-vis expectations of the customers
Deviation from/non-compliance of laid down system & procedures
ACTION POINTS
Do the staff members occupy their desks 15 minutes before the business hours?
Do all staff members wear their identity cards?
Is the branch premises kept clean with all customer amenities?
Is the layout convenient for smooth work flow?
Do you know the names of the top 10 customers?
Have you met them recently?
Are the top clients of the branch being invited to the Customer Relationship Programme?
Are your holding Customer Service Committee meeting regularly?
How many ideas emanated from the CSC meetings in the last 6 months and what
actions have been taken?
Are the Customer Help Line telephone numbers being prominently displayed?
As a Manager have you displayed your own email id to receive complaints?
Do you use emails for communication?
Do you maintain list of VIP customers?
Do you have list of VIP non customers?
Have you met the VIP non customers and tried to win them to our books?
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Is the Booklet on Code of Fair Banking Practices available to the customers at your
branch?
Are the staff aware of the contents of this booklet?
Are the staff being counseled to ensure that there is no case of misbehaviour?
Are the complaints redressed within the time limit of 14 days?
Do we express regret while settling a complaint?
Are the complaints promptly acknowledged?
Do you visit the complainant?
Are the statement of accounts and renewal notice of TDRs being sent in time?
Are outstanding items under collections followed up regularly?
Is the dispatch section working without disruption?
Are the pensioners getting their pension staggered over 3 to 4 days to avoid rush at the
counters?
Is a check list of the formalities relating to advances made available to applicants in one
go by you?
Is the register for recording applications for loans and advances received / disposed of
being maintained by you?
Are the ATMs being operationalised and kept in readiness during all hours?
Are Job Cards being used to equip the staff with knowledge about the products and
processes?
Is there a Grahak Mitra counter at the branch with a staff strength of more than 30?
Do you accept small denomination currency and exchange mutilated and soiled notes?
Have you given wide publicity to the facility of Nominations?
Are the dishonored instruments returned to the customer the same day?
Have you displayed the time norms?
Do you offer immediate credit of outstation cheques up to Rs. 25000/- in personal
accounts?
Do you credit the interest on account of delayed remittances and collections without a
request from the customer ( as per our cheque collection policy)?
Are the staff familiar with the provisions of the Consumer Protection Act 1986?
Are you aware that a complainant can approach the Banking Ombudsman only if his
complaint has not been redressed within 2 months?
What is the quality of customer service at each of your branch?
Can we move towards EXCELLENCE at all our counters?
Whose responsibility is it to move in this direction?
II) BUSINESS ORIENTATION
The Three ways to improve profits
i) BUSINESS GROWTH
ii) ELIMINATION / REDUCTION OF NPAs
iii) REDUCTION OF COSTS
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i) Business Growth
Action Points
Are you having information on the market share of the Branch in your Area, and
that of your competitors operating in the Area? If not, how do you propose to go
about it? For example, this data is available with the lead bank of the area.
Several business leads emerge daily from newspaper, magazines are other
sources. Do you provide your officers/staff with business leads and thereafter
follow-up their efforts?
Do you personally go with your Officers to visit prospective clients?
Have you identified thrust areas for your branch and prepared draft budget
accordingly?
Is your branch in touch with other branches of ours operating in the area for
exchange of information and cross selling of products? (For e.g. a RNW branch
can provide credit leads to a MCG branch or a CAG branch borrowers personal
banking needs can be met by the RNW branches.) In other words, is your Branch
doing cross selling? Is this being discussed at any meetings?
Captive branches offer tremendous scope for P Segment business. Has the
potential been exploited to the fullest by your captive branch?
Government Business gives excellent income by way of commission, without
deployment of funds by the Bank. Is excellent liaison being maintained with
Government Departments, Private / Public Sector Organisations, Institutions,
Trusts, Societies, etc. by you as well as Zonal Office functionaries ? Have your
branch conducted a Customer Relationship Program for this category of
customers?
Is the Branch dossier updated at your branch and is it being put to use for
business development? (Market mapping)
Are business levels and budget being communicated by you to all the staff? In
other words, have we moved from the Branch Managers Budget to the Branch
Budget?
Have one or two officials with sound product knowledge been identified at the
branch exclusively for marketing? Are they submitting reports for each of their
visits? Is there follow-up of such reports?
24
Are the frontline staff at your branch conversant with various products of the
Bank, especially those best suitable for the Branch environment? (They are the
people who can sell them effectively across the counter.)
Satisfied customers are our best selling agents. Is your Branch making use of
this valuable resource for marketing? Are we appealing to / encouraging our
customers to introduce new accounts?
ii) Elimination/Reduction of NPAs
It is the primary duty of the Branch Manager to initiate action for recovery in all NPA
accounts irrespective of whether they became NPA during their tenure or otherwise.
Effective credit management which includes timely renewal/review of facilities,
supervision, follow-up and documentation.
. Restructuring of facilities when signs of sickness are visible.
Timely rehabilitation where feasible.
Where rehabilitation is not possible, compromise to be encouraged.
Timely filing of suits and constant follow-up with advocates.
Verification of assets at periodical intervals even where suits are filed.
With the help of external agencies, identify undisclosed properties of the
borrower/guarantors and file for attachment before judgement.
Seize the assets hypothecated/pledged for eventual sale without allowing
deterioration in quality of assets after seizure.
Accounts parked in AUCA not to be forgotten and they should get same attention
as if they are in PB/RD accounts.
Write-off accounts where absolutely no recovery is possible.
Execution of recovery certificates/decrees expeditiously.
Reduction of NPAs is a priority area identified by the Chairman. Controller must
render all possible assistance throughout the Cell. Functionaries including joint
dialogue with the borrower for NPA recovery.
25
III) Reduction of Costs
In a falling real estate market scope exists for re-negotiating the rent of branch
premises at the time of renewal of lease. Alternatively, shifting of branch
premises can be thought of without compromising on poshness of locality,
surroundings, decor, etc. Recommending periodic increase in rent without taking
into account prevailing market rates should not be resorted to.
Thorough scrutiny of estimates for repairs, maintenance, provision of new
furniture and fittings must be done at the Zonal Office level. (L1 could be lower
still!)
Wastage / misuse of stationery, stocking of excess stationery is to be looked into,
A cost reduction of 1 0% across the board on travel, electricity, telephones/ fax,
etc. must be effected.
Have you thought of managing with optimal level of staff? This alone can result in
substantial cost savings. Have you seriously thought about staff reduction /
redeployment wherever warranted with a view to visibly improving Business per
Employee?
III) TECHNOLOGY
Has computerisation resulted in improving your customer service?
If not WHY?
Has computerisation helped in increasing business?
If yes, Can it be quantified?
Has the staff been redeployed following computerisation?
Computerisation entails large investment and there should be a commensurate
return. Return on IT investments should come from -
More customers
More business
Higher margins
New business
Reduced costs
Reduced frauds
Has Computerisation helped in facing the competition?
Is your ATM located at strategic and convenient location?
Can we not extend the full range of services provided by the ATMs?
26
With computerisation in place can we now move towards single window
approach to transactions?
ACTION POINTS
BUSINESS PROMOTION
Do you have note-counting machine?
Have specimen signatures being captured in the system and retrieved for on-line
verification?
Do you make use of the E-mail facility in communicating with the ZO/customer?
Are Pass Book Printer are in working condition?
Are the statements of accounts being dispatched to the customers regularly
without their having to ask for it?
TECHNOLOGY UPKEEP
Are all officers and clerical staff using the Computer System trained / being sent
for Computer training programmes regularly?
Are they being sent for special training programmes whenever necessary?
Is the capacity of the server adequate for the level of transactions?
Are non-financial input forms being used as prescribed?
Are the project officers resourceful in solving the problems at a short notice?
Has there been a system breakdown or failure recently?
Are you satisfied with the timeliness and quality of service provided by the
vendors?
Do you have all the approved software packages developed by the Bank from
time to time? Are these the latest versions / releases from C & L project?
Are there outstandings in Systems Suspense Accounts? Are they being followed
up?
Does the Branch Cash Balance in the system agree with the Actual Cash
Balance
Are audit trails generated normally, without being force updated? If force
updated, are the reasons looked into and rectified?
Are all reports being checked?
Are reports checked for correct flag values?
Are all the irregularity reports being followed-up for rectification?
Do you have the booklets issued on how to check reports and use them to train
new incumbents?
27
COMPUTER SECURITY
Are all the prescribed registers for the computerised system maintained properly
and being periodically scrutinised by you?
Are Pass Books kept in safe custody and their usage strictly controlled?
Are back- ups being taken regularly as laid down?
Judiciously and maintaining the appropriate registers in this regard.
Are users advised of their User ID by means of an Office Order in a register
against acknowledgement?
Is access to system room strictly controlled and Access Register maintained?
Have you documented and approved the Disaster Recovery Plan for your
branch? Does it include firm arrangements for offsite storage of backups?
Do you maintain the list including telephone numbers of service providers /
vendors who can attend to complaints at short notice?
Are the UPS and Power Supply Systems satisfactorily maintained?
Are fire extinguishers placed near the system room and in working order? Are
you supplied with smoke detectors?
TECHNOLOGY INITIATIVES IN THE BANK:
Migration of customers to alternative channels like ATM/ INB/ Mobile Banking,
etc.,
Swift connectivity
What is the quality of service being extended?
What is the impact on the customer service? What are the deficiencies
observed?
Any suggestions for improvement?
Are the ATM cards distributed to customers securely?
Is non-delivery of cards being followed?
Are ATM facilities spruced up and made attractive, so that customer
prefer ATM to customer service?
Are the addresses and other particulars in Branch Locator correct?
MICR cheque processing centres.
Has the MICR processing helped in the efficiency of Service Branch?
Internet banking
Is Internet banking helping in building customer relationship?
Is it being increasingly seen as preferred service channel?
Has CINB facility been given to all corporates?
Technology initiatives must result in improved customer services, optimum utilization of
staff and a quantum jump in business along with meticulous compliance of Banks
internal as well as statutory requirements. Technology is an investment. The Bank must
get a return on its investment.
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IV) PEOPLE
To convert your Branch as a Model Branch Action Points on the Five core areas of your
Operation
For a service industry, its People are the most important assets. A motivated and
disciplined workforce can achieve wonders in the market place. Simultaneously, an
organisation has also to think of the continuous - development & welfare of its people
and instill in them the necessary commitment for the goals of the organisation. A few
action points to impart in our people a sharp competitive edge are given below.
Action Points
I) Motivation
Every employee is an ambassador of the Bank. Has this message percolated to
the grassroots level? Are staff members so developed to fulfill this role?
Do you know the names of all your staff members and do you really know them
well?
Are you accessible not only to your officers, but to all members of the staff at the
branch whenever they seek such an access?
Do you communicate clearly to all the staff members through formal/ informal
meeting about goals, results etc to be achieved?
Do you encourage your officers to act as Leaders and provide them adequate
support?
Is the staff working in your branch aware of Multiple Rewards and Recognition
Scheme and Alertness Award?
Is good work done by the officers/staff recognised through felicitation
programmes?
How do you make staff members add value to the Customer Relations
Programme and other such official functions in the branch?
When the staff members come to you with problems, are you actively involved in
helping them reach solutions or do you put them on to the other officers in the
Branch for them to sort out the problems by themselves?
Do you ensure that good work is appreciated orally as well as in writing? (An
appreciation letter from you, or the AGM or the GM can work wonders in
motivating an employee)
29
Do you ensure that silver jubilee awards for having completed 25 years of service
are given on time? (Without the employee asking for it!)
Do you ensure that increments are sanctioned well on time so that the recipient
can draw the same on the month when it becomes due?
Do you think it necessary to empathise with staff members who are in distress?
What personality traits are required from your side to empathise with them?
II) Discipline/Control
Are all letters received are seen by you before being sent to the concerned
officer?
Do all your meetings end up in action planning?
Do you pull up erring staff?
Do your officers have your full support when they initiate action against erring
staff?
Do you ensure adequate discipline in the Branch?
Have you taken stock of all disciplinary cases/vigilance cases in you Branch and
evolved an action plan for speedy disposal? It may just be possible that a good
no. of cases can be cleared at AGM/DGMs level itself.
Ill) Development
Have you been encouraging formation of Quality Circles in your branch under
you control?
Do your Officers work as a team
What steps have you taken to ensure that your staff/officers in the branch keep
themselves updated with the latest schemes of the Bank and those of our
competitors? Do you encourage your officer/staff to be a resource person for
marketing
Do your branch is active In Branch Training Forums, which encourage
dissemination of knowledge by the staff among the staff? Is a complete set of all
circulars available and accessible in the branches?
Do you encourage your officers to take award staff members along with them
while making customer calls?
30
Are you ensuring that Need Assessment is done every year for the purpose of
training your staff? (This is not theoretical. It is possible of being achieved with
good results)
Do you have up to date information regarding the various trainings, which the
officers in the branch have attended? Is similar data available in respect of all the
staff members?
Do you ensure that job rotation of the staff is done on a regular basis? This can
be a good measure for prevention of frauds.
Do you keep your employees well informed of all the changes that are taking
place in the organization and in the market place?
Do you share your expectations with the staff in the Branch and also tell them
how well they are doing from time to time?
Are you ensuring proper placements based on the developmental needs of the
employee/officials, his past experience and the training attended?
Is the Visiting Faculty Scheme being made good use of by your branch?
Do you interact with all cadres of staff in the Branch or confine yourself to
supervising staff?
Do you take interest in the career progression of staff in the Branch by arranging
training, encouraging in-branch study group for promotion, CAIIB etc.?
As a Branch Manager, while writing AARs it is imperative that you know your
officers Well (you are reporting on them) and at least know by acquaintance the
officers whose reports you are reviewing.
The self-appraisal is an opportunity given to the official to write about what he
has done (or not done!) during the year. As far as possible you must try and
insist that every official submits his self-appraisal and on time.
At an opportune moment e.g. meeting of officers would you like to address them
on How to write AAR and other allied issues?
Do you devote sufficient time and energy while writing annual appraisal reports of
your employees?
Are you ensuring timely submission of AARs?
In case of mid-year transfers, are you insisting on a feed back report from the
previous Branch?
31
IV) Welfare
Are Officers/staff members advised their leave balances every year?
Do you ensure that staffs in the branch are provided various facilities/ benefits to
which they are entitled? (non provision of simple things like furniture, brief case,
scholarship etc. are major irritants) Delay in matters relating to staff welfare like
payment of medical bills etc. should be strictly avoided
Have you ensured that your branch have good ambience, comfortable layout and
adequate furniture and amenities to provide good working conditions?
Are staff amenities adequate at your branch?
V) Commitment
Ownership and Commitment to the organisation, to the branch, to the task
cannot be extracted or demanded. It has to be built. How do we go about it?
Do you have a clear vision for your Branch? Have you shared it with your
officers/staff?
Have our Vision, Mission and Core Values been communicated to the officers/
employees?
Is every employee aware of the performance of his branch vis-a-vis other
branches in the region? There must be a competitive element involved.
As a BM, have you thought of rewarding your best performing officer/staff zero
complaint officer/staff etc.?
Do you give congratulatory messages to staff on their getting promotions?
How do you react while coming across disillusioned and alienated staff in the
Branch? Do you go beyond merely listening to him/her?
Do you make it a point to attend every retirement function in your lie branches?
Do you share the success stories of other officers with your officers/ staff members
Remember that it is not the effort of an individual but the endeavour of the team that
brings success. The team leader, while leading from the front, has to harness, co-
ordinate & channelise the skills, experience & potential of the people for that ultimate
goal called success.
--(0)--
32
6. KNOW YOUR CUSTOMER
(Crusade against Money-Laundering)
(Implementation of Obligations of Commercial Banks)
Guidelines on Know Your Customer norms and Cash transactions
Taking into account recent developments, both domestic and international, the following
guidelines reinforce earlier instructions on the subject with a view to safeguarding banks from
being unwittingly used for the transfer or deposit of funds derived from criminal activity (both in
respect of deposit and borrowal accounts), or for financing of terrorism. The guidelines are also
applicable to foreign currency accounts/transactions.
Know Your Customer (KYC) guidelines for New accounts
The following KYC guidelines will be applicable to all new accounts with immediate effect
1. KYC Policy
Know Your Customer (KYC) procedure should be the key principle for identification of
an individual/corporate opening an account. The customer identification should entail
verification through an introductory reference from an existing account holder/a person
known to the bank or on the basis of documents provided by the customer.
2. Customer identification
The objectives of the KYC framework should be two fold, (i) to ensure appropriate
customer identification and (ii) to monitor transactions of a suspicious nature. Banks
should obtain all information necessary to establish the identity/legal existence of each
new customer, based preferably on disclosures by customers themselves. Typically
easy means of establishing identity would be documents such as passport, driving
license etc. However where such documents are not available, verification by existing
account holders or introduction by a person known to the bank may suffice. It should be
ensured that the procedure adopted does not lead to denial of access to the general
public for banking services.
3. Know Your Customer procedures for existing customers
Banks are expected to have adopted due diligence and appropriate KYC norms at the
time of opening of accounts in respect of existing customers. However, in case of any
omission, the requisite KYC procedures for customer identification should be got
completed at the earliest.
33
4. Ceiling and monitoring of cash transactions
The extant RBI guidelines on the subject are as under:
(i) Banks are required to issue travellers cheques, demand drafts, mail transfers,
and telegraphic transfers for Rs.50,000 and above only by debit to customers
accounts or against cheques and not against cash. Further, the applicants
(whether customers or not) for the above transactions for amount exceeding Rs.
10,000/- should affix permanent (Income tax) account number on the
applications. Since KYC is now expected to establish the identity of the customer
and as the issue of demand draft etc. for Rs.50,000 and above is by debit to
account, the requirement for furnishing PAN stands increased uniformly to
Rs.50,000/-.
ii) The banks are required to keep a close watch of cash withdrawals and deposits
for Rs.10 lakhs and above in deposit, cash credit or overdraft accounts and keep
record of details of these large cash transactions in a separate register.
(iii) Branches of banks are required to report all cash deposits and withdrawals of
Rs.10 lakhs and above as well as transactions of suspicious nature with full
details in fortnightly statements to their controlling offices.
5. Risk management and monitoring procedures
In order to check possible abuse of banking channels for illegal and anti-national
activities, the Board should clearly lay down a policy for adherence to the above
requirements comprising the following:
a) Internal Control Systems
Duties and responsibilities should be explicitly allocated for ensuring that policies
and procedures are managed effectively and that there is full commitment and
compliance to an effective KYC programme in respect of both existing and
prospective deposit accounts.
b) Terrorism Finance
RBI has been circulating lists of terrorist entities notified by the Government of
India to banks so that banks may exercise caution if any transaction is detected
with such entities. There should be a system at the branch level to ensure that
such lists are consulted in order to determine whether a person/organization
involved in a prospective or existing business relationship appears on such a list.
34
c) Internal Audit/Inspection
(i) An independent evaluation of the controls for identifying high value
transactions should be carried out on a regular basis by the internal audit
function in the banks
(ii) Concurrent/internal auditors must specifically scrutinize and comment on
the effectiveness of the measures taken by branches in adoption of KYC
norms and steps towards prevention of money laundering. Such
compliance report should be placed before the Audit Committee of the
Board of banks at quarterly intervals.
d) Identification and Reporting of Suspicious Transactions
Banks should ensure that the branches and controlling offices report transactions
of suspicious nature to the appropriate law enforcement authorities designated
under the relevant laws governing such activities. There should be well laid down
systems for freezing of accounts as directed by such authority and reporting
thereof to the controlling office and head office. Being matters of sensitive nature,
there must be a quarterly reporting of such aspects to the audit committee of the
board or the board of directors.
e) Adherence to Foreign Contribution Regulation Act (FCRA), 1976
(i) Banks should also adhere to the instructions on the provisions of the
Foreign Contribution Regulation Act, 1976 cautioning them to open
accounts or collect cheques only in favour of association which are
registered under the Act ibid by Government of India. A certificate to the
effect that the association is registered with the Government of India
should be obtained from the concerned associations at the time of
opening of the account or collection of cheques.
(ii) Branches of the banks should be advised to exercise due care to ensure
compliance and desist from opening accounts in the name of banned
organizations and those without requisite registration.
f) Record Keeping
Financial intermediaries should prepare and maintain documentation on their
customer relationships and transactions to meet the requirements of relevant
laws and regulations, to enable any transaction effected through them to be
reconstructed. In the case of wire transfer transactions, the records of electronic
payments and messages must be treated in the same way as other records in
support of entries in the account. All financial transactions records should be
retained for at least five years after the transaction has taken place and should
35
be available for perusal and scrutiny of audit functionaries as well as regulators
as and when required.
g) Training of staff and management
All institutions must, therefore, have an ongoing training programme so that staff
are adequately trained for their roles and responsibilities as appropriate to their
hierarchical level in complying with anti-money laundering guidelines and for
implementing KYC policies consistently.
h) These guidelines are issued under Section 35 (A) of the Banking Regulation Act,
1949 and any contravention of the same will attract penalties under the relevant
provisions of the Act.
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36
7. BANKING OMBUDSMAN SCHEME
The Banking Ombudsman Scheme, 1995 was notified by RBI on June 14, 1995 in terms of the
powers conferred on the Bank by Section 35A of the Banking Regulation Act, 1949 (10 of 1949)
to provide for a system of redressal of grievances against banks. The Scheme sought to
establish a system of expeditious and inexpensive resolution of customer complaints. The
Scheme is in operation since 1995 and has been revised during the years 2002 and 2006. The
Scheme is being executed by Banking Ombudsmen appointed by Reserve Bank at 15 centres
covering the entire country.
2. GENERAL PARTICULARS ON THE SCHEME
2.1 The word Ombudsman in general means a grievance man, a public official who is
appointed to investigate complaints against the administration. He is to intervene for the
ordinary citizen in his dealings with the complex machinery of the establishment.
2.2 In India, any person whose grievance against a bank is not resolved to his satisfaction by
that bank within a period of one month can approach the Banking Ombudsman if his complaint
pertains to any of the matters specified in the Scheme. Banking Ombudsmen have been
authorized to look into complaints concerning (a) deficiency in banking service (b) sanction of
loans and advances in so far as they relate to non-observance of the Reserve Bank directives
on interest rates, delay in sanction or non-observance of prescribed time schedule for disposal
of loan applications or non-observance of any other directions or instructions of the Reserve
Bank as may be specified for this purpose, from time to time, and (c) such other matters as may
be specified by the Reserve Bank.
2.3 The Scheme envisages expeditious and satisfactory disposal of customer complaints in a
time bound manner. The Banking Ombudsman on receipt of any complaint endeavours to
promote a settlement of the complaint by agreement between the complainant and the bank
named in the complaint through conciliation or mediation.
For the purpose of promoting a settlement of the complaint, the Banking Ombudsman has been
allowed to follow such procedures as he may consider appropriate and he is not bound by any
legal rule of evidence. If a complaint is not settled by agreement within a period of one month
from the date of receipt of the complaint or such further period as the Banking Ombudsman may
consider necessary, he may pass an Award after affording the parties reasonable opportunity to
present their case. He shall be guided by the evidence placed before him by the parties, the
principles of banking law and practice, directions, instructions and guidelines issued by the
Reserve Bank from time to time and such other factors, which in his opinion are necessary in
the interest of justice.
The Banking Ombudsman Scheme, 2002
2.4. The Banking Ombudsman Scheme (BOS) 2002 came into effect on 14th June 2002. The
BOS 2002 additionally provided for the institution of a Review Authority to review the Banking
Ombudsmans Award, when warranted. A bank against whom an Award was passed, could with
the approval of its Chief Executive, file an application to the Review Authority (Deputy Governor,
Reserve Bank of India) to seek a review of the Award. The bank could request for such a review
37
only when the Award appeared to be patently in conflict with Reserve Banks instructions and/or
the law and practice relating to banking. The Banking Ombudsmen was also authorized to
function as an Arbitrator on reference to him of disputes either between banks and their
customers or between banks. The value of the subject matter of individual disputes under
arbitration should not exceed Rupees Ten Lakhs.
The Banking Ombudsman Scheme, 2006
2.5. The Banking Ombudsman Scheme, 2002 was reviewed during the year 2005-06 and was
modified to reflect the changing needs of the bank customers. The modified scheme, the
Banking Ombudsman Scheme, 2006, came into effect from January 1, 2006 with the following
major changes:
(i) New grounds of complaints such as credit card issues, failure in providing the promised
facilities, non-adherence to fair practices code and levying of excessive charges without prior
notice were included.
(ii) In order to facilitate complaint submission, the application format prescribed was made not
mandatory for filing the complaint. Further, complaints can be filed online as well as by sending
an email.
(iii) In order to have more control over the functioning of the Scheme, Reserve Bank would fully
fund and staff the Banking Ombudsman Scheme.
(iv) The banks are required to appoint Nodal Officers in their Zonal Offices/Regional Offices for
the Scheme.
(v) The complainants may also appeal against the Award of Banking Ombudsman. (vi) In order
to enable the Banking Ombudsmen concentrate on the complaints, rather than on arbitration of
inter-bank disputes, the arbitration option rested with the Banking Ombudsman was removed.
Amendment to the Banking Ombudsman Scheme, 2006
2.6. The revised Banking Ombudsman Scheme had witnessed a surge in the inflow of
complaints. Along with the complaints, there was increase in the complaint disposals by the
Banking Ombudsman Offices as well. However, many appeals against the decisions of the
Banking Ombudsman were also received from the complainants. The Banking Ombudsman
Scheme, 2006 had allowed appeals from complainants only in the complaints wherein Awards
had been issued. Observing the spate of appeals from complainants against decisions, rather
than against Awards, an amendment to the Scheme was notified on May 24, 2007 to facilitate
appeals from complaints that are relating to matters falling within the grounds of complaint
specified under the Scheme.
Amendment made in 2009 to the Banking Ombudsman Scheme:
2.7 The Banking Ombudsman may reject a complaint at any stage if it appears to him that the
complaint made is;
(a) not on the grounds of complaint referred to in clause 8 or
(b) beyond the pecuniary jurisdiction of Banking Ombudsman prescribed under
clause 12 (5) or
(c) frivolous, vexatious, malafide; or
(d) without any sufficient cause; or
(e) that it is not pursued by the complainant with reasonable diligence; or
38
(f) in the opinion of the Banking Ombudsman there is no loss or damage or inconvenience
caused to the complainant; or
(g) requiring consideration of elaborate documentary and oral evidence and the
proceedings before the Banking Ombudsman are not appropriate for adjudication
of such complaint.
3. SCOPE OF THE SCHEME
3.1 The Banking Ombudsman Scheme, 2002 covered all the Regional Rural Banks in addition
to all Commercial Banks and Scheduled Primary Co-operative Banks, which were already
covered by earlier Banking Ombudsman Scheme, 1995. There is no change in this regard in the
Banking Ombudsman Scheme, 2006.
3.2. As indicated in paragraph 2.5 above, various new grounds of complaints were added within
the scope of the Banking Ombudsman Scheme, 2006. The important new grounds of
complaints added include credit card issues, failure in providing the promised facilities, non-
adherence to fair practices code, levying of excessive charges without prior notice and issues
pertaining to accepting payment towards taxes and issuing/servicing of Government securities.
The grounds of complaints have been enumerated in Clause 8 of the Banking Ombudsman
Scheme, 2006.
4. OPERATIONALISATION
Reserve Bank of India operationalised the Banking Ombudsman Scheme by establishing
Banking Ombudsman Offices at 15 centres all over the country.
5. CREDIT CARD COMPLAINTS
The complaints relating to credit cards formed the major share of the complaints received at the
Banking Ombudsman Offices. The types of complaints received in this regard are enumerated
below:
Non-issue of credit cards.
Issue of unsolicited cards.
Non-despatch of account statements in time.
Levy of excessive service charges.
Unauthorised debits.
Late appropriation of payments made through cheques even though deposited in
time/at drop boxes outside bank premises and levy of late fee in such cases.
Excessive late fee and penal charges.
Sanction of loan against credit cards on the basis of offers over telephone without
written consent of customer.
Refusal to cancel credit card.
Refusal to settle insurance claims.
Not adhering to settlement terms for settling credit card dues.
Wrong reporting of status of cardholder's dues to credit information companies.
Failure to note caution / instructions in lost cards.
39
Freezing of cards without informing the cardholder.
Harassment by recovery officer.
6. REVIEW / APPEAL OF BANKING OMBUDSMAN'S AWARDS
The Banking Ombudsman Scheme, 2002 additionally provided for the institution of a Review
Authority to review the Banking Ombudsmans Award, when warranted. The "review' option
was to be exercised by the banks on grounds that the Award appears to be patently in conflict
with the Banks instructions and/or the law and practice relating to banking. The same was
changed into 'appeal' process in the Banking ombudsman Scheme, 2006.
7. NODAL OFFICERS IN BANKS FOR GRIEVANCE REDRESSAL
The Banking Ombudsman Scheme 2006 mandates that every bank nominate a Nodal Officer in
every region/zone for facilitating the functioning of the Banking Ombudsman Offices. Besides
taking up individual complaints, the Banking Ombudsman offices also periodically review the
outstanding complaints with the nodal officers. Many Banking Ombudsman Offices have
indicated that such a mechanism has yielded good results in resolving the complaints
expeditiously. It was also clarified during the year that the responsibility of a bank's nodal offices
includes the credit card operations of the bank's subsidiaries.
The Customer Service Department has started the exercise of inviting the officers in charge of
customer service departments (grievance redressal officers) of commercial banks for an
interaction and for briefing them about the expectations of Reserve Bank. During the meetings,
they are advised to play an effective role in handling customer complaints with care and
sensitivity in a timely manner. The requirement for publicizing their service charges and the
names and addresses of their nodal officers prominently in the website and notice boards is
also reiterated.
-------------------------------------------------------------------------------------------------------------------------------
'It starts with respect. If you respect the customer as a human being, and truly honour
their right to be treated fairly and honestly, everything else is much easier.'
- Doug Smith
40
8. CITIZENS CHARTER
BANKING CODES AND STANDARDS BOARD OF INDIA (BCSBI) AND
ITS CODE OF BANKS COMMITMENT TO CUSTOMERS
With a view to protecting the interest of customers in Banking Sector, the Reserve Bank of
India has been taking many initiatives, which include formation of committees and implementing
their recommendations. The following committees/ schemes played critical role.
R.K. Talwar Committee 1975
Goiporia Committee- 1991
Narsimham Committee 1991
Tarapore Committee - 2003
Setting up of Banking Codes and Standards Board of India February 2006
Revised Banking Ombudsman Scheme -2006
The Committee on Procedures and Performance Audit of Public Services, 2003 (Tarapore
Committee) advocated that there was a need for benchmarking of banking services to
continuously upgrade them. The Committee concluded that there was an institutional gap for
measuring the performance of banks against a benchmark reflecting the best practices (Codes
and Standards). The committee recommended setting up of the Banking Codes and Standards
Board of India (BCSBI), broadly on the lines of Banking Codes and Standards Board functioning
in the U.K.
Accordingly, BCSBI was formed in February, 2006 by registering as an autonomous and
separate society under the Societies Registration Act. It has been formed on the principle that
self regulation is more effective than enforced one. Under self regulation, banks are bound to
comply with their promises lest they lose their credibility. Self regulation increases competition
and consumer is benefited.
The BCSBI is an independent banking industry watchdog to ensure that the consumers of
banking services get what they are promised by the banks. As on date, 69 Commercial Banks
are its members, which include all the major Private/ Foreign/ Public Sector Banks. Apart from
this, 5 Cubs and 9 Ribs are also its members. The membership is voluntary, but once a bank
becomes a member, the codes released by BCSBI are obligatory on it. Member banks should
also make available copies of the codes of the Board to the customers in all their branches.
The BCSBI evolved the Code of Bank's Commitment to Customers first in July, 2006 which was
revised in August, 2009. It also released a Code of Banks Commitment to Micro and Small
Enterprises on May 31, 2008. BCSBI has commenced its credit counseling services with effect
from 1st October 2009 for financial education of people by assisting them to organise their
financial commitments, control their finances and in drawing repayment plan in consultation with
the concerned bank.
In view of the above, all the bankers should know the commitments made to the customers
under various codes of BCSBI. Let us take a birds eye view of the revised code of Bank's
Commitment to Customers (Aug., 2009). Complete code is available on BCSBIs website
www.bcsbi.org.in and on customer care tab in the Banks website www.sbi.co.in. State
41
Bank of India has adopted the BCSBIs code of Banks Commitment to Customers, as it is, and
also named it Citizens Charter.
The Code does not replace or supersede regulatory or supervisory instructions of RBI and
member banks will comply with such instructions/directions issued by RBI from time to time.
Provisions of the Code may set higher standards than what is indicated in the regulatory
instructions and such higher standards will prevail as the Code represents best practices
voluntarily agreed to by the banks as their commitment to customers.
As hitherto, the revised code is applicable to:
a. All deposit accounts
b. Payment services such as pension, payment orders, demand drafts, electronic
transactions, etc.
c. Government transactions
d. Demat accounts, equity, Government bonds
e. Indian currency notes exchange facility
f. Collection of cheques, safe custody services, safe deposit locker facility
g. Loans, overdrafts and guarantees
h. Foreign exchange services including money changing
i. Third party insurance and investment products sold through bank branches
j. Card products e.g., credit cards (of banks subsidiaries/companies also), debit cards, ATM
cards, smart cards and services, etc.,
Some Key Commitments:
To act fairly and reasonably in all dealings by:
making sure the products and services meet relevant laws and regulations
ensuring the dealings rest on ethical principles of integrity and transparency
operating secure and reliable banking and payment systems.
To help customer to understand how financial products and services work by:
giving information about them in any one or more of the following languages Hindi,
English, appropriate local language
ensuring that advertising and promotional literature is clear and not misleading
ensuring that clear information is given to customers about banks products and
services, the terms and conditions and the interest rates/service charges, which apply to
them
giving information on the benefits available to the customer, how customers can avail of
the benefits, what are their financial implications and whom they can contact for
addressing their queries and how
To help customer use his/ her account or service by:
providing him/ her regular appropriate updates
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keeping customer informed about changes in the interest rates, charges or terms and
conditions
displaying in the branches (i) Services provided, (ii) Minimum balance for SB accounts
and No-frills accounts and charges for non-maintenance thereof, (iii). Name and address
of the official at the branch/ Zonal/ Regional Office/ Banking Ombudsman to redress
grievance
displaying on the bank website its policies on Cheque Collection, Grievance Redressal,
Compensation, Collection of Dues and Security Repossession
To deal quickly and sympathetically with things that go wrong by:
correcting mistakes promptly and cancelling any bank charges that were applied by
mistake
handling customer complaints promptly
telling customer how to take his complaint forward if he is not satisfied
providing alternatives to alleviate problems arising out of technological failures
To treat personal information of customers as private and confidential except in the case of legal
requirement, public interest etc.
To publicise the code, the bank will:
provide customers with a copy of the Code, on request
provide new customers with a copy of the Code when they open account
make available this Code at every branch and on the banks website
ensure that banks staff are trained to provide information about the code and to put the
Code into practice.
To adopt and practice a non-discrimination policy on the basis of age, race, gender, marital
status, religion or disability.
--(0)--
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9. EFFECTIVE FUND MANAGEMENT
In the present context of increasing profitability and plugging leakages o, you should
request/involve all members of staff to achieve excellence in U. Management.
Broadly speaking, a bank can be said to be managing its cash efficiently, only if it is able to
realise all the amounts due to it without delay, and is not laying out funds without remuneration,
unless warranted by statutory provisions governing the working of the Bank.
Remember, inefficient cash management adds to the problems of Treasury and Investment
Management Department, at Central Office, which undertakes to deploy the surplus resources
gainfully in the market to reap maximum revenue.
Dos and Donts relating to Cash Management
1. Currency Transfers: Report currency transfer transactions - both deposits and withdrawals
irrespective of the amounts involved - on the date of the transaction to the currency chest Link
Office to enable the bank to decide the exact quantum of cash reserves to be kept in our
Principal Account with RBI - no more or no less - to move towards the ideal of Zero Excess
Reserves. This also helps us in avoiding penal interest charged by RBI for delayed settlement
of funds.
2. Government Transactions: Data for different years has shown that, on account of deficit
financing of budgets of State Governments and Central Government, Government payments for
outweigh the government receipts handled by our offices. It is therefore, in the interest of the
Bank that Government transactions are settled expeditiously as it poses a potential threat to the
Bank from cash management point of view. In case of receipt transactions by expeditious
settlement of funds, we can avoid penal interest charged to branch for delayed settlement of
funds.
4. RBI Remittance Facilities Scheme: Besides government transactions, the Banks branches
also handle other transactions under the agency arrangements with the RBI. Drawings made by
the offices of RBI on the Banks branches maintaining currency chests, constitute the majority of
transactions under the RBI Remittance Facilities Scheme. It, therefore, follows that the Bank
remains out of funds for a length of time, in respect of such payments, and it is necessary to
ensure that Encashment Schedules together with paid instruments are despatched the same
day to IOA Department, Bombay.
5. Holding of Cash in Hand: Cash in hand is one of compulsions for carrying on the business
of banking, and the portfolio has moved up with the expansion of the branch network into far
flung areas, often without the facility of a Currency chest. Assuming that each one of the offices
not having a currency chest carries about Rs.2.00 lacs per branch as cash balance, then the
total non-earning asset at whole bank level will be around Rs. 280 crores. (14000 X 200000 =
280,00,00,000). Therefore:
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i) currency chest branches should hold minimum balance in Branch Cash Balance Account -
technically it should be at the most Rs.499.99.
ii) other branches/extension counters/sub-offices should strive to keep bare minimum hand
balances, the surpluses being remitted to link office periodically. Excess cash beyond retention
limit if retained at the branch for reasons beyond control should be advised to Controlling
Authority and their approval should be obtained.
6. Weekly Abstract: Weekly figures should be transmitted positively on Fridays. Delayed
submission, repetition or no submission means an aberration in compilation of whole bank DTL
data. This upsets our reserve management drill.
7. Clearing : At centres where the Reserve Bank of India conducts clearing houses, the Bank
maintains a Local Account with it. Any delay in presentation of cheques in local clearing may
lead to adverse clearing position acting as a drag on efficient cash management. The problem
gets compounded on Saturdays when the adverse clearing position goes on to multiply the
deficit twice over (i.e. for Saturday and Sunday) and retrieval of the position on the days
following, sometimes, becomes a tense exercise.
Therefore, all the cheques received for local clearing should be presented without delay.
8. Sundry Deposit Account : The balances in the Sundry Deposit Account form part of the
Banks DTL, and statutory reserves have to be maintained thereon. It is, therefore, in the
interest of the Bank to ensure that no amount other than those in respect of which the bank is
actually liable are credited to Sundry Deposit Account.
9. Outstandings in IBIT Account : Scrutinise the outstanding debit entries in the IBIT Account to
recover the amounts involved. It is possible that a long outstanding debit entry in the IBIT
Account may be the result of a double responding entry passed by you and unless you act fast,
it may not be possible to recover the monies paid out twice by you in error. A few outstanding
entries may be cross-checked with vouchers/telegrams to ascertain genuineness of the entries.
10. Outstandings in Suspense Account : Outstanding in this account represents funds outlay
by the Bank. Recoveries should be made promptly. For this purpose, scrutinise the Suspense
Account Register every week and endeavour to reverse as many entries as possible during the
week.
11. Interest Due on Borrowers Account/Commission Recoverable on Bank Guarantees, Letters
of Credit Issued etc. represents monies due to the Bank and should be calculated accurately
and recovered promptly. Inaccuracies or delays affect Banks profitability adversely.
Remember that the delayed application of interest means a loss of interest on interest.
--(0)--
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10. PERFORMANCE BUDGETING
SECTION I - PROCESS
With the keen competition among banks and from other agencies, the choice is between
growing faster than others or fading into oblivion. Business growth, market share, business-mix,
socio-economic priorities, productivity, stability, product design and review are some of the
dimensions of growth. Obviously, all these considerations need careful planning, for which
collection and use of environmental data is essential.
Goal setting or budgeting for performance is a two-way process. At the macro level, the goals
are set on the basis of macro data and the desired growth for the Bank. At the micro-level the
goals are set on the basis of the Branchs environment, its historical and market share data, its
strengths and weaknesses, perceived potential and the desired growth. The final business goals
for various levels are set through a process of macro-micro matching or a budget settlement
exercise wherein the unit (the branch or the region of the circle) and its controlling authority sit
together and discuss the differences between their expectations of growth in business and other
requirements. The aim in this exercise is to set goals which are high enough to induce effort for
achieving them but also low enough to be achievable. The settled growth is also phased on a
monthly basis to conform to the seasonal patterns.
A budget is a very important instrument for retaining and improving our market share. A budget
is not budget if it is not related to the total business on offer / or expected to be available in the
area of operation, and is not aimed to improve our share thereof.
The total business on offer in your area of operation may not be available in any document, but
total ASCB (All Scheduled Commercial Banks) deposits and advance in each-district are
periodically published (once a quarter) by the lead bank of the district through which you can
find out the share of the deposits and advances of our branch.
The purpose of budgeting is not served if the actual performance is not evaluated from time to
time. The instrument for this is the Performance Report whereby every month reasons for any
marked deviation in performance as also changes in the environment are identified. Mid-course
correction or review of the budgetary goals is also done wherein basic changes in the branchs
internal or external environment, which were not expected at the time of budget settlement, are
taken into account.
Performance does not happen by accident. It requires and demands professional
management and measurement systems. It requires that business decisions be
continuously assessed in terms of their impact on quality.
SECTION II -STAGES
Collecting of Data, Market Share : This is the most important element of the budgeting exercise
and often the most neglected one too. Any exercise in budgeting in the absence of proper data
on economic activities in the area of operation, the branchs past performance and its
46
competitors and customers, is like groping in the dark. So develop your database on an ongoing
basis, update the branch/town/district dossier periodically, understand the data and then
calculate your market share. We compute our market share by finding out our share of All
Scheduled Commercial Banks business consisting of deposits and advances. The market share
of deposits and advances are computed separately. ASCB includes regional rural banks and
does not include co-operative banks. Please note that this market share information or for that
matter any documentary information needs to be supplemented by another type of information,
namely, information collected through directly observing, hearing and feeling the environment.
Documentary information is valid at the point of time the document was prepared. In a situation
of fast changing environment, such information has to be updated by adding to or subtracting
from it information which you see, observe and feel. Secondly, all information is not
documented, and there is time lag between the happening and its documentation. Therefore,
rely on your powers of observation and try to cultivate a mental alertness to the environment so
that nothing important happening in the environment misses your senses. The development of
this type of mental alertness is not a very difficult thing: it requires only willingness and an effort.
Branch Manager of Village Branches, while working out the business potential, should take into
account the business potential of the villages covered by their area of operation and should not
concentrate only on areas in the immediate vicinity of the branch. The surrounding villages are
the catchment areas of business where considerable potential exists for tapping deposits and
dispensing (healthy) credit. These areas should be penetrated in a planned manner by using the
non-banking day and/or the additional officer posted at such branches.
Policy Guidelines : Dont take this document as just another exhortation. It is a statement of
what your bank wants to do, and is based on elaborate data/ information/experience; it also
gives you the leads as to how to go about achieving the stated objectives. Study it thoroughly
and you will find it extremely helpful in your efforts to chalk out strategies and to prepare against
likely dangers.
Draft Budget: This is your statement of what your budget should be like and hence there is no
reason for it to be a weak link in the budgeting chain. Prepare it diligently and be conscious of
the fact that it is not a statement of what your business is likely to be at the end of the next year
but is a statement of what your business can be with that extra hit of effort and planning that
your branch is capable of putting in. Dont peg your budget too low as in that case you will be
denying yourself and the bank what you are capable of achieving. Do not forget to take into
account the seasonal patterns and the time frame of major developments that would take place
around you before setting monthly/quarterly goals. Specify all your assumptions and
requirements of inputs too, at this stage.
Settlement Process: This is a test of your homework. If you have worked on your data, the
policy guidelines and your draft budget, you will have the conviction to stand by your
projections. But a good homework on your part should not make you deaf to your Regional
Manager. After all, he too has done his homework. Listen to others, speak out your arguments
clearly, keep your mind open and you will find that the divergence, if any, between your own
expectations and that of your Regional Manager is getting narrowed down. Remember, it is a
settlement process and not a bargaining process.
Final Budget: This is a formal statement of the goals which you and your controlling authority
have agreed upon for your branch. It is a document for your frequent reference to see if any
47
changes in the environment or in your assumptions-for better or worse-are taking place, so that
you can take action to seize up to the opportunities and to neutralise the adverse factors.
Performance Report: This gives a monthly stock of what you have achieved and also areas in
which you are lagging behind from the desired goal. The comments on variance in P Reports
should describe the reasons for the variances, and not the variances themselves, so that you
are able to take proper corrective action and your controlling authority understands what really
is happening at different units. Moreover, your comments are valuable not only when your
branch does not reach the desired level but also when you have exceeded that level.
Remember you are not furnishing explanation but information.
Mid-term Review : You have already gathered, through the P Reports, an inventory of specific
information about the actual business generation in your area of operation and also where your
assumptions at the time of budget formulation did not come true. If you can see a pattern in
these specific bits of information that is likely to have a lasting impact on your business, do write
to your Regional Manager detailing the need for revision in the budget goals for the remaining
part of the year.
Section III - Sources
There are many sources of data and information on branch environment. The usual sources are
BDO, Tehsildar, Land Revenue Officer, District Industries Centre, Agricultural Office, Trade
Association, District Plan of the Government, District Credit Plan prepared by the Lead Bank,
LIC Office, Land-Acquisition Officer, Registrar/Sub-Registrar of Assurances, PPF accounts in
our branches, Rationing Office, Municipality/ Panchayat, Local Electric Supply Office approving
new connections. It is difficult to list out all the sources from whom or where information about
your market would be available. But remember that the most important source of information is
the people you meet during the day -customers, callers and your own staff. Be mentally alert to
pick up the cues from conversation and written papers and record them suitably, for your use.
You will also find that some of the information required by you is not available to you locally. In
such a case you should feel free to request your Regional manager/Development Officer to
make the same available to you.
i) Was the deviation due to some basic assumption not holding good or some
unanticipated occurrence or a faulty budget formulation?
ii) Is the variance likely to have a lasting impact on the branchs business?
iii) If the impact is unfavourable, has something been done or planned to be done to
counter it? If the impact is favourable, have efforts been made to exploit the event for the
maximum benefit?
iv) Have these efforts, wherever made, had any effect?
v) Is there any development in your area which may possibly be taken advantage of by
some other branch or the controlling authority?
48
vi) Even when no marked deviations are there from the budget, is there any development that
did not conform to the original assumptions but whose effect was neutralised by another
unanticipated event?
Before you try to convince anyone else, be sure you are convinced, and if you cannot
convince yourself, drop the subject.
- John H Paverson
The greatest ability in business is to get along with others and influence their actions.
- John Hancock (American Statesman)
The phrase people are our most important resource has been a management slogan
for at least 80 years. But too few executives really look at this resource.
- Peter Drucker
--(0)--
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11. PREVENTIVE VIGILANCE
There are three different stages of vigilance - Preventive Vigilance, Detective Vigilance and
Punitive Vigilance. While the detective vigilance deals with the process of investigation, the
punitive vigilance is all about initiation of departmental proceedings and imposition of penalty.
Preventive vigilance, on the other hand, focuses on minimising, -if not totally elimination of
frauds, malpractice, etc., on the understanding that prevention is better than cure. Preventive
Vigilance can therefore be described as vigilance against occurrence of frauds.
While it is not possible to give a comprehensive list of all that one should do to prevent or
minimise occurrence of frauds, it is advisable to focus special attention to (a) balancing and
checking of books, (b) reconciliation of entries replying to inspection and audit reports, (f)
training of staff, (g) ensuring proper security arrangements and & (h) taking note of complaints
emanating from various sources. One should therefore be on constant guard against attempts
of frauds in his own interest and in the interest of the Bank. It, may, however be clarified that
these action-points are merely illustrative and are not exhaustive.
General
1. Take special care while permitting withdrawals of large amounts
2. Carry out comprehensive and intelligent check over each days transactions.
3. Do check the books at regular intervals
4. Make surprise inspections
5. Scrutinise books and vouchers as a matter of routine
6. Keep a track of the Branch Managers Monthly Certificate
7. Ensure adequate security arrangements
8. Scrutiny of Staff account, and observing their activities.
Deposit Accounts
1. While opening new accounts, do obtain introductory reference, and ensure to send a formal
letter of thanks to the introducer. In the absence, take appropriate evidence with strict KYC
compliance
2. The specimen signature sheets should be kept in proper custody
3. The list of lost and stopped cheques should be kept updated
4. Transit voucher book should be properly maintained
6. Operations in Inoperative/Dormant accounts should be closely scrutinised
50
7. Payments through withdrawal slips without pass-book to be made in exceptional situations.
8. The S.S. sheets of Dormant/ Inoperative accounts should be kept in the custody of
Accountant/ BM.
Advances Accounts
1. Proper interview of the prospective borrower should be made as a matter of routine
before granting an advance
2. The pre-sanction survey should be done meticulously, and properly recorded
3. The eligibility criteria for grant of loan should be meticulously followed
4. The loan-appraisal should be made in accordance with the laid down guidelines
5. Periodical review/renewal must be made after sanction of an advance,
6. Precaution should be taken against spurious gold ornaments while accepting them as
security towards gold loans.
7. Special care should be given in the matter of security and documentation
8. Disbursal should be made only after ensuring proper end-use of funds
9. Post sanction/disbursal inspection should be done as per the guidelines
10. Diarise to send timely notices to the defaulting borrowers.
11. Do keep the Controller posted about irregular accounts
12. Ensure meticulous observation of the terms and conditions of the loan
Miscellaneous Business
1. In respect of Bill Purchase, do ensure to despatch the instrument/bill promptly
2. Do follow-up cases where the payment-advice/acceptance advice has been delayed
3. Keep control on the inward mail
4. Maintain the Liability Ledger properly
5. IOA reconciliation should be given special attention
6. Proper control on issue and custody of security forms should be exercised
7. Ensure to follow up for advices in respect of drafts paid without advice
8. Keep the caution-list updated, and while making payments of drafts, do not fail to make
a reference to it
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9. In regard to Government transactions, take care to verify the signatures of the Drawing
and Disbursing Authority
10) Seek letter of authority and verify its genuineness for making payment to a third party
11) The locking up arrangements for cash should be fool-proof
12) While carrying cash from the strong room to the counter, special precautions should be
taken to ensure against theft, pilferage, dacoity, etc.
13) Ensure proper functioning of the Alarm Bells, Sirens, etc.
15. Follow the rules in letter and spirit in respect of custody of keys, cash-receipts, cash-
delivery, etc.
16. Do make periodical verification of the contents of chest and safe deposit articles.
Involvement of staff in frauds - Preventive Measures Recommended
a) Before placing any person in a particular assignment, he or she must be provided with
desk cards/job cards, incorporating instructions and safeguards to be observed in the
discharge of their duties. Check the list of persons with doubtful integrity and agreed
list.
b) The life style of employees must be watched and proper check over their borrowings,
investments and deductions from salary must be made.
c) Personal data file containing full details including behavioural ones, should be
maintained in respect of each official/employee. Before placing any person in a particular
assignment, arrange to check the list of persons with doubtful integrity and agreed list.
Such persons should not be posted in identified key positions.
d) Antecedents of all persons selected for appointment should invariably be verified before
the appointments are made. Know Your Employee norms should be strictly followed.
Enquiries should be made to ascertain past records from earlier employees. Make follow
up and ensure that the police verification report and the comments of two referrals are
received and are in order.
e) A system should be evolved for recording proper appreciation for good work done by an
employee and recommendation for rewards should be made for exceptional work done
by an employee as per schemes in force.
f) Job rotation, should be ensured at regular interval
g) Staff members should not be allowed to open accounts in different branches
h) The staff accountability should be examined with utmost expedition. The disciplinary
proceedings may be completed as early as possible, say in 6 months in case of award
staff employees and 9 months in case of supervising staff. Deterrent punishment should
be inflicted on the delinquent officers/employees.
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i) The Circle Management Committee must review at quarterly intervals, the progress and
conclusion of disciplinary cases. Accountability should be fixed for delays, wherever
noticed.
j) The investigating and disciplinary proceedings machinery should be properly manned by
knowledgeable and competent officials who could get the process expedited. If
necessary, enquiry proceedings could be conducted at LHO/Zonal offices. There should
be limit to number of enquiries a defence counsel can handle.
--(0)--
53
12. PREVENTIVE VIGILANCE : CHECK LIST
General
1. Does Branch Manager/Manager of the Division scrutinize the Registers/Books to ensure
that the laid down instructions are followed scrupulously?
2. Are the duties of staff wherever possible, periodically rotated?
3. Do all the Supervising Officials exercise effective control over their respective areas?
4. Does the Branch Manager scrutinize the staff accounts periodically and keep careful
watch over the life style of staff members?
5. Is there proper control over the receipt, opening and distribution of Inward Mail
(especially LSC bills, DD instruments)?
6. Does the Branch Manager examine all copies of correspondence emanating from the
branch and signed by other officials of the branch?
7. Is a Cashier going out of his Cubicle/Centre table or an employee leaving his
desk/counter frequently kept under watch and other colleagues cautioned against him?
8. Is there proper control over the custody of vouchers/records? Is it ensured that access to
records is not made easy for all giving scope for surreptitious removal of records?
9. Is prompt despatch of instruments, TRs and important correspondence ensured?
10. Is it ensured that DD instruments are despatched on the same day/next day?
11. Is immediate action taken on receipt of a complaint?
Accounts Wing
1. Does a person opening a new account come to the branch personally?
2. Are the new accounts opened with proper introduction, wherever applicable? i.e.,
Has the introducers signature been duly verified?
Has the conduct of the introducers own account verified to ascertain whether his
introduction is acceptable to the Bank or not? (The account should not be
dormant/ inoperative or unsatisfactorily run account).
54
Has he been interviewed discreetly (if he has come personally) to ascertain that
the prospective account holder is a real acquaintance of his (and not merely a
casual acquaintance or someone who just met in the Banking Hall)?
In case of illiterate persons, has the introducer come personally to introduce?
3. Are the prospective account holders interviewed properly by the authorised officer to
ascertain their purpose of opening the account as well as the correctness of the
information furnished on the account opening forms?
4. Are the account opening forms complete in all respect? Are these accompanied by
documents like Bye-laws, Resolutions, Trust Deeds, Partnership letters/deeds etc.,
whatever warranted?
5. Are specimen signatures obtained in presence of and authenticated by the Authorised
officials?
6. Are photographs obtained as per the extant instructions and invariably pasted under
attestation of the Authorised officials over the four corners?
7. Are the LTIs of the illiterate account holders obtained on the reverse of the photographs?
8. Are the accounts opened only after being duly authroised for such opening?
9. Are the letters of thanks sent by post to the new account holder as well as to the
introducer in all cases?
10. Are the acknowledgements to the Letters of Thanks followed up duly for receipt/non-
receipt thereof by the addressee?
11. Are proper precautionary notings made in the system in case these are returned
undelivered?
12. Are the counter clerks alert to the system notings and do they refer the subsequent
transaction to the concerned officer without fail?
13. Are the operations on a new account closely watched at least for a period of six months?
14. Is it being ensured that final acknowledgement from the account holder is received in
case the cheque book is issued to his bearer?
15. Are the particulars of stopped cheques entered in system
16. Does the employee concerned do a prima-facie scrutiny of the instruments received for
transfer credit, especially the endorsement including those in drop box?
55
17. Is Pass books issued Register maintained properly?
18. is Pass Book Retained Overnight Register maintained properly?
19. Are the Pass Books retained kept in a locked box overnight?
20. Is adequate caution exercised while issuing duplicate pass books?
21. Are the duplicate pass books handed over only to the account holders themselves
against acknowledgement or sent to them by Regd. Post with A.D.?
22. Is circumspection exercised by staff while permitting large transactions in newly
opened/dormant/inoperative accounts?
23. Are the specimen signature sheets kept in proper custody without any scope for free
access to any unauthorised person?
24. Is due care exercised by the Passing Official to verify the Specimen Signature before
passing a payment?
25. Are the first debits to dormant/inoperative accounts referred to the Accountant/Manager
of the Division? Are the presenters interviewed discreetly?
26. Are the statements of accounts sent regularly and promptly?
27. Are the Pass Books updated promptly?
28. Are the relevant Pass Books and unused cheque folios, if any, surrendered invariably at
the time of closure of the deposit accounts?
29. Are the surrendered blank cheques noted in a separate section of the Cheque Issued
Register and then destroyed effectively under authentication of the officer-in-charge?
30. If such Surrendered Cheques are kept for further use, are suitable notings made at
appropriate places? (i.e. in the section meant for disposal of Surrendered Cheques, a
separate section Broken Cheque Books/ Contingent Cheques issued and the relevant
place where the Cheque Book was originally issued to the account - now closed).
31. Are all the VVRS checked on the same day?
32. Is it ensured that the vouchers are scrutinized and cancelled by the concerned Checking
Officials and a second scrutiny is done by the Branch Manager/Manager of the Division?
33. Is there a proper control over the custody of pending S.C. vouchers/ clearing vouchers?
56
34. Is there proper control over the custody of Security Forms?
35. Do the clerks lock their drawers containing Security Forms whenever they are away from
their seats?
36. Does the officer-in-charge ensure while receiving back the Security Forms at the end of
the day that all the Security Forms consumed have been duly accounted for in the Draft
etc. Issue Register?
37. Are Draft Forms recorded as Cancelled and destroyed actually and effectively destroyed
by the concerned officer and the portion containing the serial number of the form pasted
on the Register? (It is also necessary to do the same in case of other Security Forms like
TDRs/ STDRs/ B. Cheques/DCRs, etc. bearing serial Nos.)
38 Is Lost Document Register maintained?
39. Are the signatures on drafts received for payment duly verified before being passed for
payment?
40. Is Access Register to Lockers properly maintained? Are the signatures of the hirers
invariably taken and verified whenever the access to locker is permitted?
41. Is the grill/door of locker room kept locked when not in use?
42. Are all periodical returns/statements correctly compiled and submitted on time?
43. Is there a Register to record receipt/disposal of Shuttle Memos?
44. Are the signatures on TR advice verified invariably before responding?
45. Does the Accountant/Branch Manager/ officer-in-Charge in the Accounts wing for LSC
Bills /DDRRS carry out periodic surprise check of physical custody of the pending Bills
with the Cash Officer?
46. Are the due dates for return of Bills diarised and is action taken on due dates without
fail?
47. Is proper identification of Gold Loan borrowers insisted upon?
48. Is the delivery of gold ornaments in closed accounts duly acknowledged by the borrower
under authentication of the joint custodians?
49. Do the Passing Officers exercise due caution to verify the signature of the Treasury
Officer for payment of govt cheques
57
50. Are the Govt. figures reported to our Link Officers and GAD on time as per the extant
instructions?
51. Are Shuttle Memos received from GAD.UMALO attended to promptly?
52. Are Life Certificates obtained in November every year before releasing ^ pension?
53. Is proper control exercised over instruments presented/received through clearing
House?
54. Are the pending clearing vouchers kept under proper custody?
55. Are the unpaid returned instruments debited to customers accounts promptly and
interest/out-of-pocket expenses etc. recovered?
56. Are unpaid instruments recorded properly?
57. Is it ensured that no employee works on the clearing desk for an unduly long period?
58. Are all our Stamps cancelled before return of an unpaid instrument to the party?
Cash Wing
1. Are the Cash Deptt. Staff alert while handling Cash? Do they guard against their
attention getting diverted while at work through conversation with outsiders or staff?
2. Do the Cashiers lock/bolt their cubicles securely from inside and lock these when they
go out, even for a moment?
3. Do they ensure that large cash is not exposed to public gaze?
4. Is it ensured that only minimum essential cash is kept with the Cashiers?
5. Is care being taken by the staff to notice those who loiter in the banking hall during
business hours, and observe what is taking place?
6. Have suitable messages been displayed in the cubicles of the Cashiers to serve as aide-
memoire? (e.g. Have you locked you cubicle? Please do not allow your attention to be
diverted while at work . Please ring the alarm bell if there is an emergency, etc.)
7. Is it ensured that at the time of stitching packets and making bundles cash is not handled
unsupervised?
58
GENERAL CONDUCT
1. Do not use your influence for securing any advantage for yourself or any one related or
known to; it does not speak well of you.
2. Do not enter into any borrowing arrangement with any Bank except with the prescribed
frame-work; it may amount to misuse of official position.
3. Do not make any false bills or make any attempt to falsify any account; it may cost your
career.
4. Do not cultivate too much friendship with Banks contractors, suppliers etc; this may not
be in your interest.
5. Do not take a decision in a case where you have interest or your relations are involved
but let the files move without your intervention.
6. Avoid getting influenced by personal prejudices while disposing of files.
7. Do not relax while you are on invigilation or supervision duties, this may bring troubles
for you.
8. Do not show any favoritism nor commit any irregularities in inviting tenders and awarding
contracts; your reputation will be affected.
9. Avoid misuse of the Banks car or any other Banks property in your care.
10. Avoid taking or giving dowry in any circumstances, as this is statutorily prohibited and
socially reprehensible.
11. Never fail to seek prior permission for acquisition or disposal of immovable property of
any amount; it may land you in difficulties
12. Never forget to report about the acquisition of movable properties within schedule time
from the date of transaction, if the value exceeds Rs.25,000/- this is an important check.
ADVANCES WING
1. Is proper pre-sanction verification of the antecedents, information furnished by the
applicant done to ensure the genuineness of the identity of the applicant and the
purpose of the advance?
2. Are the opinion reports, brief or detailed as applicable, compiled on the applicant(s) and
the proposed guarantor(s)?
59
3. Are the land records etc. examined by Banks Advocate to ensure defect-free title of the
offerer accepting the particular landed property as security?
4. Is proper assessment/appraisal done to ensure financing of viable projects only as well
as to check against over-financing?
5. Does the scheme financed come under an approved scheme of the
6. Are no-dues certificates from other credit institutions obtained to guard against multiple
financing of the same person/project and multiple charges over the same assets?
7. Has the CIBIL database been verified to check out default browsers.
8. Is it ensured that as far as possible cash disbursement is avoided and payments are
made directly to the suppliers?
9. Are the purchase receipts kept on record?
10. Is it ensured that the assets have been actually created? Is there an acknowledgement
to this effect from the borrower?
11. Have the Banks charges been created in a valid manner? (For example, equitable
mortgage is to be created only at the notified centres. The borrower is to give a
declaration of ownership of stocks in respect of Special
Hypothecation/Hypothecation/Pledge charges in addition to executing the Hypothecation
Agreement. Certain charges are to be registered as per the Companies Act/The
Registration Act. etc.)
12. Are the Banks charge plates displayed prominently at all the important places of the
factory/shop? In case of plant & machinery/vehicles, has the hypothecation charge been
painted/engraved on the body of the equipment itself and registered with the R.T.O. for
vehicles?
13. Are all the prescribed documents executed properly and kept on record?
14. Has the stock been insured to the extent of minimum 110% of the peak value of stock
holding - to prevent the operation of the Average Clause.
15. Are the insurance premia/ CGFJL premia paid regularly?
16. Are correct rate of interest and other charges being levied?
17. Is it being ensured that the unit is not defaulting in payment of the Government dues like
Sales tax, Income Tax/Customs/Excise duties, Electricity Bills, Land rentals etc.?
60
18. Are the stock statement and financial statements received as per the prescribed
periodicity and veracity thereof checked properly during unit inspection?
19. Is care taken to verify the quality of the stock and the basis of its valuation? (For
example, raw materials should be valued at landed cost or market price, which ever is
lower; semi-finished/finished goods should be valued at not more than 95% of the
market price).
20. Is the unit inspected as per the prescribed periodicity by the Field Staff and a record of
the findings maintained?
21. Is it ensured that non-moving stocks, stocks purchased against Bank Guarantees etc.
are segregated while calculating Drawing Power to prevent double financing?
22. Are drawals allowed strictly as per the DP. calculated on the basis of actual stock
holding?
23. Is it ensured that undue enhancements in limits/overdrafts in personal account of the
Proprietor/Partner/Director are not resorted to for regularisation of overdrawals?
24. Are the Control Returns submitted and the irregular features reported to the Controlling
Office?
25. Are the documents revived in time?
26. Is circumspection exercised while passing cheques drawn on borrowal A/cs in favour of
different parties to see the funds are not being diverted for other purposes?
27. Do the field staff keep a close watch over the borrowers activities in general to guard
against diversion of funds or any other step by the borrower which will jeopardize the
interests of the Bank?
28. Does the Branch Manager/Manager of Div. Inspect the units as per the prescribed
periodicity to ensure that all advances have been made strictly as per the Banks laid
down instructions and that no financing has been made to any fictitious person or for any
non-existing unit?
29. Are review/renewals done in time?
30. Are notices sent and bad advances called up in time?
31. Is legal action initiated in time, pending suits followed up and execution proceedings
effected in time for recovery of the Banks dues?
61
13. DOS AND DONTS ISSUED BY RESERVE BANK OF INDIA
DOs:
1 . Remember, each one of us as a public servant is expected to act honestly and faithfully
at all times.
2. Always demonstrate a sense of fair play and impartiality in disposing of cases.
3. Show courtesy and understanding in public dealings, it will knock out the basis of public
grievances.
4. Maintain strictest secrecy regarding the Banks affairs whatever be the provocations.
5. Observe scrupulously the rules and regulations concerning your personal conduct, it will
not embarrass you any time.
6. Be discriminate in attending parties hosted by the Banks constituents, clients etc., it
helps you in dispensing clean and efficient service.
7. Avoid seeking and receiving cash donations and advertisements from the banks clients,
constituents, business associates etc., even for a good cause, lest it places you under
obligation.
8. Attend to public grievances promptly, it improves the image of the institution.
9. Dispose of cases promptly but without undue haste, it helps.
10. Remember to date your signature always, it will avoid complications.
11. Get all oral instructions and decisions of the higher authorities down in writing and get
them confirmed, it is in your own interest.
1 3. Lay down a time schedule for each stage of the job concerning the public, it dispenses
with all kinds of gossips.
14. Do intensive monitoring of delays and disposals of files, it helps curbing, -corruption.
15. Give job rotation to those who are on sensitive desks; lest vested interests grow.
16. Pay particular attention to the procedures and do not delegate them to the subordinates,
it is a good way of preventive vigilance.
62
17. Keep on assessing the strength of the internal control. This is the surest way to reduce
malpractice.
18. Publicise the rules and procedure, as widely as possible in simple words and make them
less cumbersome, it dispenses with the necessity for Speed money.
19. Pay surprise and frequent visits to the places visited by the public and other places
where stationery and stores are kept; it will give you a good feed back of the
happenings.
20. Remember always that corruption starts in a small way, it would thus be wise to put a
brake in the initial stage itself.
21. Corruption has no price tag attached to any class of employee.
22. Keep a watch over the style of living, of all types of employees
23. Keep a watch over the style of living, types of visitors etc. of the employees posted on
sensitive desks; it will help detection of corruption at early stages.
DONTs:
1 . Do not yield to temptation or run after petty gains; it does not pay ultimately.
2. Do not solicit, seek or accept any gift or valuable, either from the constituents of the
Bank or from any one, more than what is permissible under the rules, it is not a good
conduct.
3. Do not live beyond your means; it is tempting but torturous.
4. Do not engage in any commercial proposition nor allow anyone dependent on you to do
so ;
5. Do not make any effort/ endeavour to flout or circumvent the rules or regulations; it
creates tension in you.
6. Do not make any attempt to short-circuit the prescribed procedures, it may prove risky.
7. Do not lean too heavily on your subordinates; it may prove costly.
8. Do not take any obligation from anyone, it may boomerang.
9. Do not allow your family members to use your name for personal gains; it is not a good
habit.
63
10. Are up to date lists of stopped cheques and lost tokens kept with the paying Cashiers?
11. Is it ensured that the grill door to strong room/room having Cash Safe has locking
arrangement from inside?
12. Do both the joint custodians remain present without fail during every operation in the
cash safe/strong room?
13. Is Armed Guard present near the Strong Room whenever it is opened?
14. Does electricity get cut-off effectively inside the Strong Room when it remains closed?
15. Are there adequate emergency lights in working condition?
16. Are alarm bells connected to all Cashiers/Tellers and all concerned officials desks? Are
they in working condition?
17. Is the Cash Department enclosed/barricaded with wooden-cum-expanded metal partition
wall so that public and other unauthorised persons do not have free access thereto?
18. Is there a special cubicle for the Cash Officer to eliminate the need for the customers to
enter the Cash Department?
19. Is adequate control being exercised over the entry/exit of people through main entrance to
the banking hall?
20. Does the Paying Cashier ensure proper custody of the paid instruments . inside his
cubicle before these are handed over to the Accounts Wing?
--(0)--
64
14. AN OVERVIEW OF RFIA AND TIPS TO INCREASE YOUR SCORE
The Internal Audit system was in vogue since the days of Imperial Bank of India. After several
changes due to demands of time and need to bring comprehensive approach, the present
system of Risk Focused Internal Audit (RFIA) was introduced w.e.f. 01.04.2003. Under RFIA, all
the domestic branches have been segregated into three groups viz., Group I, Group II and
Group III. The grouping of the branches is subjected to review at periodical intervals.
Audit and Inspection :
First, let us be clear about "Audit" and "Inspection". Though many a time, both are used as
synonyms, there is a clear distinction. Audit refers to an inspection of organizations accounts
typically by an independent body. It relates to more of verification of the books of accounts for
its correctness etc. Inspection is somewhat a broader concept than audit. It includes Audit but, it
is fundamentally a qualitative review. Its objective is not only to verify observance of the
prescribed procedures and guidelines but also to promote and maintain safe and healthier
operating practices and conditions.
Cluster Audit:
Cluster Audit is a recent phenomenon and as the name suggests, it is a center specific and thus
it covers areas beyond RFIA, i.e., all the linkage issues between / among the branches and
BPR Outfits.
Self Audit
Few tips while conducting Self Audit
Please use appropriate Audit Report Format (ARF): There are about 15 types of ARFs
for branches and 14 types of ARFs for various BPR Outfits. Many a time, branches use
incorrect format which adversely affects their evaluation. All these formats are available
at I&MA website. Path is as follows: SBI Times > Departments > I&MA > Audits > Risk
Focused Internal Audit > Branches & Divisions
Do the exercise on soft form i.e., on a computer. You will know the various score bands
for various risks. (Basically risk are graded in to 4 risks i.e., Very Low, Low, Medium and
High risk)
For evaluation of information System, Government Business and Forex Business,
please also down load the relative annexures (available at the same web page where
branch ARFs are available) and evaluate / assess your branch position as per the
annexures first and then carry forward those scores in the ARF.
Most importantly, please assess your scores in an objective manner i.e., assess the risk
on the position obtaining as on that date.
Record the Risk Mitigation measures undertaken.
Preparation for RFIA
As discussed, your preparation already started by conducting Self Audit exercise. Now you may
strengthen the preparation further by some of the following strategies which will definitely have
an impact on the risk assessment of your branch.
65
a) Take a look at the registers / books etc., available at your branch. Update (if need be)
and continue the usage. (a list is given for your convenience as an annexure).
Conduct a meeting of all the staff members and try to involve all the staff including
messengerial staff.
Discuss the Risk mitigating measures undertaken and need to continue the good work.
Go through the each value statement of the ARF, page by page and discuss the scores
against each value statement and discuss the same with the concerned official / staff
member.
Focus on some of the value statements which have high scores;
Few examples:
i) Search Conducted with ROC, record of pre-sanction survey / inspection, Opinion
reports, genuineness of collateral security 20 marks
ii) Preparation of loan appraisal: comments on adverse remarks in the previous Audit
Reports, non-routing of sales proceeds, devolvement of LCs, Interlocking of funds
among associates etc. 12 marks
iii) Documentation: Obtention of appropriate documents, all documents are current,
entered in Documents Execution Registered and available for verification etc 24 marks
iv) All formalities for creation of EM i.e., obtention of TIR, valuation, confirmation letter
and creation of EM and maintenance of PDCs 24 marks.
v) Charge filed with ROC, obtention of search reports, obtention of RC Books (vehicle
loans), Insurance etc. 30 marks
vi) Consent for disclosure to RBI / CIBIL and declaration of spending for the purpose
stated 25 marks
vii) Insurance 20 marks
viii) Monthly review of Standard Assets 20 marks
ix) Monthly sending of irregularity reports 20 marks
x) Prompt remittance of TDS and keeping record thereof 10 marks
With such preparation and positive approach you are sure to improve your score/ rating in RFIA.
Prompt and proper submission of all the required registers, data, information and rectification of
deviations pointed out by the Inspecting Official during the course of RFIA will definitely help you
achieving your goal.
66
REGISTERS TO BE KEPT READY& UPTO DATE FOR RFIA
Branch Documents register and related items (arranged as per index)
BMMC register and the file containing the certificates sent
Complaint register, Complaint Book and file
Consumer Forum / Ombudsman related complaints and related correspondence file.
Customer Service Committee / Customer Relationship Programme Preventive Vigilance
Committee Meeting - Register / correspondence files.
Loan application received and disposed-off register
Inspection register
Document execution register.
EM/Title Deeds/Insurance registers
NPA backup register
Write-off register
Suits filed register and correspondence files
Files and correspondence relating to suits filed against the Bank/ Claim against the
Bank, not acknowledged as debt
INCA/AUCA register
DCB register
Compromise proposals / OTS register
Cash Credit register
Hypothecation register
EP/RC register and related files
IOA shuttle memo register
Unclaimed drafts / BCs / TDRs / STDRs register
Loan documents - arranged product-wise and account number-wise.
Individual files (loan accounts)
Control returns and related correspondence file (if kept separately)
Self Audit reports duly validated by the Controller - related file and individual reports
Previous audit reports - RFIA / Circle Audit / Statutory Audit / RBI inspection (Sec
35/10) / Migration Audit/others audits, if any
P Form and Budget files and related correspondence
Branch Dossier
Highlights of performance under business, cross selling etc.
Community Services Banking activities undertaken and related correspondence.
Branch visit book and correspondence file
Disaster Recovery Plan / Business Continuity Plan
Office order register / file
Reports checking roaster
All books / registers relating to IS audit, like System room access register, Hardware
access register, User ID allocation register etc.
--(0)--
67
15. AREAS IN CBS, ATM & INB TO BE LOOKED INTO WHILE ASSUMING CHARGE
AS BRANCH MANAGER
Sl
No
Particulars Register/Menu/Report to be
checked @
Action to be
taken in each
area
Branch User Administration
1 IDs allotted by CDC are duly
advised to them against
acknowledgement
Verify User ID Allocation Register
2 Only the authorised users attached
to the Branch have access rights to
the system
3 Unauthorised/fictitious/absentee
users are not present in the system
4 Users transferred/resigned/retried
do not have access rights to the
system
5 Capability levels and access rights
given according to the roles
List_of_User_Report.txt.gz as on
the last working day of the previous
month to be verified
6 Changes in capability/group/home
branch, security level and user type
are carried after authorisation by
competent officer
Whether record is maintained
Physical Security/Protection of
Assets
1 Access to System room is restricted
and entry permitted only after
entering in System room access
register
Verify System Room access
Register
2 Access to hardware by vendor
permitted only after recording the
same in hardware access register
Verify hardware access register
3 All hardware purchased are entered
in Fixed Assets Register
Verify the fixed assets register
4 Whether all hardware with the
branch are insured for replacement
value
Verify the Insurance Policy
5 Annual Maintenance Contract is
entered for all hardware/UPS/
Generator
Verify the AMC register
6 Whether Anti-Virus software is
loaded in all the computer systems
and is updated regularly
On the Windows Task Bar
Start>Program>Symantec anti
virus>click>check the date of the
virus definition file
7 Financial/non-financial transactions
are put through only on the strength
Random verification of transactions
can be done
68
of a duly authenticated voucher
8 Instructions in respect of on-site/ off-
site storage of periodic data backup
are being followed as approved by
the controller
Verify whether the last working day
backup has been recorded in the
backup register
9 Disaster Recovery & Business
continuity Plan (DR &BCP)
i) Whether DR& BCP has
been prepared by the
branch and approved by
the controller
ii) Whether notified to all the
persons concerned
against their
acknowledgement
iii) Whether the Quarterly
reviews have been
carried out
i) Verify the approved copy
of the DRP with the
Branch Verify that the list
of notified officers does
not contain the names of
persons who have
retired/been transferred
etc.
ii) The exercise to be done
during the first week of
January every year and
to be reviewed at
quarterly intervals (April,
July & October and to be
submitted to the
controller)
10 Branches to maintain the following
control registers:
Storage Media Record
System room access
Computer hardware access
record
Computer hardware
maintenance & breakdown
(including network failure)
Roster for checking of reports
Software release control
ATM Cash
Verify whether the registers have
been scrutinised by the concerned
officials in the manner laid down
ACCOUNTING EXCELLENCE
Sl
No
Particulars Register/Menu/Report to be
checked @
Action to be
taken in each
area
1 Roster for allotment of checking
of all EOD/BOD reports has
been introduced
Verify that all reports are being
generated, printed, sorted,
distributed, checked on rotation,
re-collected and securely filed.
2 All single-sided postings are
recorded in branch books and
CDC/controllers are advised with
reasons therefor
Verify the register with the
supporting vouchers for ensuring
proper authorisation of the
transaction
3 Both sides of WSA are tallying Check for default codes in
69
Weekly Statement of Affairs
(WSA) especially credit balances
in Stamp/Branch Cash
Balance/Stationery accounts and
debit balances in Interest
Suspense Account, INCA etc.
4 All system suspense accounts
have zero balance
Verify the register maintained in
respect of important system
suspense accounts Please verify
that no outstandings exist in
Outward Clearing Suspense
account for more than 2 clearing
dates. Verify the daily report
ListOfNonZeroIntermediateSu
spenseAccounts-
gend0804.txt.gz
5 i) BGL cash balance
(98903) is tallied with
physical cash on a
daily basis.
ii) BGL cash should also
tally with CGL cash
i) Verify the balance in
BGL account
98903bbbbbc is tallied
with Cash Officers
cash register/cash on
hand
ii) Ii) Verify that the
B@ncs24 cash
balance
(98903bbbbbc) tallies
with the Finance1
cash account
(1204505001) using
glcomp.txt.gz report
iii) Verify whether the
tellers are printing on a
daily basis the Teller
Cash Report
iv) Verify whether the
Cash Officer is printing
daily the Cash
Officers jotting book
reports.
v) Verify whether the
branch is printing the
cash report generated
by CDC cfpd0903
6 SC/DDP modules are being used
and entries are being marked
off/reconciled in the system. The
(i)Verify the following accounts:
98644bbbbbc,98635bbbbbc,986
41bbbbbc The sum of balances
70
outstanding DDPs should tally
with the balances in DDP
account in WSA
(ii) Verify age wise outstanding in
DDP
(iii) SC liability outstanding in
contra Accounts
in these 3 a/cs should tally DD
Purchases A/C Balance in WSA
(ii)Verify the previous month-end
report
ddp_outstanding_cfpd0349.txt
.gz
(iii)Verify whether the balances
in A/c nos.
98655bbbbbc and 98656bbbbbc
are the same.
7 Outstandings in BGL accounts
such as 98533, 98534, 98581,
98582, etc
Verify the daily report Audit
BGL Accounts age-wise
break-up
Do long outstanding entries exist
in the various BGL accounts?
8 Outstandings in Finance One
Suspense Accounts
Balancing of accounts of
B@ncs24 & Finance One
(i) Verify the daily report glcntr
Are there outstandings in the
various Suspense accounts?
(ii) Verify the daily report
glcomp
Are there differences between
B@ncs24 and Finance One
balances?
9 Gl Day book and Voucher
Verification Reports
Are these reports printed out,
allotted for checking and
checking done on a daily basis?
10 Daily backup is taken and
stored in a DAT/CD
Verify whether records to this
effect maintained
11 Daily back-up of EOD reports
is taken on the hard disk
Verify whether records to this
effect is maintained
12 EOD signals are being sent
daily and screen shots stored
Verify the EOD screen shots @
random
ATM
Sl.
No
Particulars
Register/Menu/Report to be
checked @
Action
(to be taken in
each area)
1
Outstanding Entries in 98581
A/C & 98582 A/c
Verify the daily report Audit BGL
Accounts age-wise break-up
Internet Banking
1 Entries in 98561 in A/C
Verify the daily report Audit BGL
Accounts age-wise break-up
2
Manual Intervention
Transactions remaining
unprocessed
Access the CBS Menu Other
Delivery Channels >> Manual
Intervention Transactions >>
Channel _ INB
71
OR Go to State Bank Times>>
Useful Links >> INB support site >>
Business Stats >> MIT Report
dd/mm/yy
Mobile Banking
1
Manual Intervention
Transactions remaining
unprocessed
Access the CBS Menu Other
Delivery Channels >> Manual
Intervention Transactions >>
Channel _ MRT
CREDIT & NPA
Sl
No
Particulars
Register/Menu/Report to be
checked @
Action
(to be taken in
each area)
1
Quality of Assets& data in
CBS in respect of Cash Credit
& Overdraft Accounts
Verify the daily report
CC_OD_Balance_File_depd0580.
txt.gz
2
Quality of Assets& data in
CBS in respect of Demand
Loan & Term Loan Accounts
Verify the daily report
LoansBalanceFile-
lond2390.txt.gz
3 Aberrations in Interest Rates
Verify the daily report
exception_report_for_interest_ra
tes_variation_depd0650.txt and
monthly report
Exception_report_lond2385.txt.g
z
4 Details of NPA accounts
Verify the daily report
Listof_NPA_Accounts_lond2572.
txt.gz
5 Details of Probable NPAs
Verify the daily report
Probable_NPA_Report_lond2463.
txt.gz
6
Collateral Securities which
have matured
Verify the daily report
Coll_Matured_Sec_lond2444.txt.
gz
72
16. IMPORTANT EOD REPORTS RELATING TO GENERAL BANKING OPERATIONS
Report file Name Frequency Contents Aspects to be looked into
Audit_BGL_accounts_ag
e_wise_break_up_gend
0805.txt.gz
Daily Age-wise breakup of
outstandings in BGL
accounts
1. All the BGL accounts appearing
in the report to be scrutinized and
the entries outstanding beyond the
prescribed time norms to be
followed up for early reversal.
2.Entries in suspense accounts
older than 90 days attract
provisioning
acm.txt.gz Monthly Monthly abstract of
Charges
To be scrutinised and ensured that
there is no abnormal increase
under any head
Agewise_Report_of_sys
_susp_gend7053.txt.gz
Daily Age-wise breakup of
outstanding entries in
Banker's cheques
/Drafts to be issued a/c
All the outstanding entries have to
be reversed immediately
Agewise_Report_of_sys
_susp_gend7054.txt.gz
Daily Age-wise breakup of
outstanding entries in
TT to be issued a/c
All the outstanding entries have to
be reversed immediately
Agewise_Report_of_sys
_susp_gend7056.txt.gz
Daily Age-wise breakup of
outstanding RBI RFS
Intermediate
All the outstanding entries have to
be reversed immediately
ATM_SUSPENSE_POS
TINGS_REPORT_infd11
30.txt.gz
Monthly List of all ATM
Suspense posting
transactions
1. If cash is disbursed and
Customer's account not debited,
customer's account is to be
debited immediately. If funds are
not available, overdraft is to be
created, and hold set up in the
account for the required amount
and recovery measures initiated.
2.If customer's account debited
and cash not disbursed, the
amount has to be credited to the
customer's account as per extant
instructions.3.If the account is
dormant/having posting
restrictions, such conditions have
to be set right
Audit_Report Daily Audit trail of
Create/Amend/Delete
operations
Ensure that the amendments are
carried out properly as per the
mandate from the
customer/instructions from the
appropriate authority
73
Report file Name Frequency Contents Aspects to be looked into
Audit_ZeroBal_depd641
A.txt.gz
Daily List of account zero
balance a/cs showing
calculated interest
All accounts having values greater
than zero in the calculated interest
field to be scrutinised and
appropriate action taken. This is a
fraud prone area as the accrued
interest might get applied into the
account and later on can be
siphoned off
BankersChequesOutsta
nding-cfpd0342.txt.gz
Monthly Age-wise classification
of Bankers Cheques
Reversal of long outstandings to
be carried out as per the Bank's
instructions from time to time
bgl_STAT.txt.gz Daily Account statement of
the day in respect of
the transactions in
intermediary suspense
accounts
Ensure that these accounts are
zeroised
Coll_Matured_Sec_lond
2444.txt.gz
Daily Alert report for matured
securities.
1. This is an alert report on
securities which have
matured.2.The value of the
matured securities have to be
realised and credited to the
respective loan accounts, if not
already done. 3. If the securities
have already been realised and
credited to the loan accounts, the
status of the securities have to be
changed to 'discharged' in the
system
Collateral_Securities_lon
d2539.txt.gz
Daily Term Deposit Receipt
Joint Custody Register
Ensure that he physical TDRs
available as security for the loans
should tally with the report and
with the Joint Custody Register
Collection_sixmths_cfpm
0350.txt.gz
Monthly Details of instruments
sent for collection
which are remaining
unrealised for a period
of more than 6 months
All these SCs have to be followed
up for early realisation and SCs
returned unpaid, if any, have to be
marked off
Credit_balance_in_expe
nse_account-
gend7042.txt.gz
Daily List of expense
accounts having credit
balances.
The expense accounts showing
credit balance to be scrutinised,
the reason to be ascertained and
remedial action taken immediately
74
Report file Name Frequency Contents Aspects to be looked into
DDP_control_purchase_
cfpm0304.txt.gz
Monthly Control Return in
respect of DD
Purchases made
To be scrutinised and ensured that
the purchases are in order and
that the control returns are
submitted in respect of DD
Purchases of Rs.25,000/- and
above
Ddp_nsc_sept_lond2472
.txt.gz
Monthly List of DDPs marked
off during the day
Ensure that the payment advices
have been received in respect of
the marked off DDPs
ddp_outstanding_cfpd03
49.txt.gz
Monthly List of DDP
outstandings- age-wise
All the entries outstanding for
more than the prescribed time
norms have to be followed up for
an early reversal
DDP_outstanding_ind-
cfpd0317.txt.gz
Daily DD Purchase
outstandings other than
dividend warrants
The report contains DD Purchases
which are non-prefunded. 1. It
must be ensured that the DDPs
older than 90 days are reversed
early as otherwise provision will
have to be made 2. All DDPs
remaining outstandings beyond
the prescribed time norms should
also be followed up
DDP_outstanding-
cfpd0308.txt.gz
Daily DD Purchase
outstandings including
dividend warrants
1. Ensure that the total amount of
DDP outstandings as per the
report agrees with the balance of
DDP A/C in the Weekly Statement
of Affairs. 2. All the entries
outstanding for more than the
prescribed time norms have to be
followed up for an early reversal
Dep_act_deb_bal-
dcsd0630.txt.gz
Daily Deposit accounts
having debit balances
1. All the accounts appearing in
the report to be scrutinised and
measures to recover the debit
balances to be initiated
immediately. 2. Hold for the
appropriate amount has to be set
up in the accounts. 3. This is a
fraud prone area and the branches
have to look for this report on a
daily basis
75
Report file Name Frequency Contents Aspects to be looked into
Div_warrants-
cfpd0306.txt.gz
Daily DD Purchase
outstandings in respect
of dividend warrants
purchased
All the entries outstanding for
more than the prescribed time
norms have to be followed up for
an early reversal
DormantAccountReport-
depp0573.txt.gz
Yearly List of all dormant and
inoperative accounts
The account opening
form/specimen signature forms in
respect of these accounts to be
filed separately
easiest-report-
incom.txt.gz
Daily List of incomplete
Transactions of
Electronic Account
System in Excise and
Service Tax
1.The report has to be scrutinised
daily and additional details in
respect of all the entries appearing
in the account to be filled in. 2.The
amended string has to be
regenerated. 3.Non-submission of
additional details would result in
delay in crediting the funds in
CBEC account and hence would
attract penalty
Fail_standing_instruction
s_dayd0197.txt.gz
Daily List of standing orders
which were not
executed during the
day
1. The posting restrictions and
dormancy if any, to be removed
immediately. 2. Follow up to be
made in respect of accounts
having insufficient funds
FORCE_CAP_ON_31M
AR_2008
Quarterly Report of Tax deducted
from interest paid on
TDRs/STDRs
Ensure that the tax deducted at
source is remitted to the
Government account within the
prescribed time norms
Forex_daily_reports_EL
ENOR_failed_strings.txt
Daily List of failed Elenor
strings , prior to
implementation of IFM
All these strings have to be
repaired and sent to FD Kolkata
GiftChequesOutstanding
_cfpm0099.txt.gz
Monthly Gift cheques issued by
the branch remaining
unpaid
The extant instructions regarding
unclaimed gift cheques to be
followed
glcntr.txt.gz Daily Branch wise entries
posted in technical
suspense accounts like
1111111111,
1260505001..)
1. The accounts appearing in the
report should not contain any
entries on any day. 2.The entries
in these accounts indicate that the
appropriate accounts have not
been debited/credited, which might
result in the Bank being out of
funds or would attract penalty if
credits to govt. accounts are
delayed
76
Report file Name Frequency Contents Aspects to be looked into
glcomp.txt.gz Daily Exception report on
B@NCS24 and
FinanceOne a/c
This report compares the balances
of various accounts in B@ncs24
with Finance One. The differences,
if any in each account should be
located and posted in the
appropriate accounts
GL-Outstanding-Accnts-
genm0808.txt.gz
Daily General Ledger
Accounts Outstanding
Items as on report
date.
All the entries remaining
outstanding for more than the
stipulated period
glpnl.txt Yearly REPORT ON
PROFIT/LOSS
ENTRIES PASSED IN
FINANCE-1
Ensure that the P&L entries are
correctly incorporated in the P&L
statement prepared for the
Statutory Auditors
Govt_Commission_Mont
hly_report_depm7779.txt
Monthly GOVERNMENT
COMMISSION
REPORT
Govt. Commission to be calculated
and incorporated correctly in the P
form
Internet_Banking_incomi
ng_transaction_infd8004
.txt.gz
Daily All the Internet Banking
Transactions carried
out during the day
It must be ensured that all the
Manual Intervention transactions
are processed and their status
changed to 'Processed' after
processing
INTERNET_BANKING_
NEW_ACCESS_REPO
RT.txt.gz
Daily List of customers to
whom INB Pre-printed
kits have been issued
Ensure that (1)all the PPKs are
claimed(2) the PPK nos. have
been correctly entered in each
account
LIST_ATM_TRAN_infd1
110.txt.gz
Daily List of ATM
transactions for the day
The report to be scrutinised and
any irregular transactions to be
rectified
list_of_sweeps_execute
d_dayd0199_1.txt.gz
Daily Sweeps executed
report
Ensure that the sweeps have been
executed properly
list_of_unpaid_instrume
nts_gend0823.txt.gz
Daily List of instruments
returned unpaid
Ensure that (1) All instruments
returned unpaid have been debited
to the respective accounts (2) The
OD interest as per extant
instructions have been recovered
77
Report file Name Frequency Contents Aspects to be looked into
List_of_User_Report.txt Monthly LIST OF USERS AT
BRANCH AND THEIR
USER RIGHTS AND
CAPABILITY LEVELS
Ensure that (1)The employees
who have left the branch do not
appear in the report (2) All the
User-IDs appearing in the report
have be entered in the User ID
allocation register , under
acknowledgement (3) All the users
have been allotted capability levels
as per extant instructions
ListOfNonZeroIntermedi
ateSuspenseAccounts -
gend0804.txt.gz
Daily List of intermediate
suspense accounts
with non zero balances.
1.All the accounts other than the
Outward Clearing Suspense
Account, should not contain any
entries.2.Outward Clearing
Suspense Accounts should
contain balances exceeding two
days' lodgement in clearing 3. All
the entries have to be followed up
for an early reversal
Monthly_net_stmt_dep_
with_cfpd0410
Daily STATEMENT FOR
NET (DAILY)
WITHDRAWALS/DEP
OSITS FOR
CURRENCY CHEST
FOR THE MONTH
Ensure that the daily
deposits/withdrawals in the report
tally with the those in the currency
Chest register
MONTHLY_TDS_DEDU
CT.txt.gz
Monthly MONTHLY
STATEMENT OF TDS
DEDUCTED
Ensure that the tax deducted is
remitted to the govt. within the
stipulated period
PARTICULARS_OF_BC
TT_DEPD0784.TXT.GZ
Daily Daily report for BCTT The report is to be scrutinised and
BCTT to be recovered wherever
warranted
pending_coll-
cfpd0320.txt.gz
Daily List of instruments sent
for collection,
remaining unrealised
(1) All the cheques returned
unpaid have to be marked off and
applicable charges recovered (2)
The instruments remaining unpaid
beyond the stipulated period have
to be followed up for early
realisation
PUT_date_wise_ddp_ou
ts-cfpd0312.txt.gz
Daily Purchase Date Wise
DDP Outstanding.
All DDPs outstanding beyond the
stipulated period have to be
followed up for realisation
78
Report file Name Frequency Contents Aspects to be looked into
Report_Back_Value_Dat
ed_Transactions_lond24
76.txt.gz
Daily Report Of Back Value
Dated Transactions
Ensure that the back value-dating
has been done for genuine
purposes and that sanction from
the appropriate authority is
available
Report_for_Inward_Retu
rns_cfpd0397.txt.gz
Daily REPORT OF INWARD
RETURN
ITEMS(Cheques
presented in Outward
Clearing Returned
Unpaid by Other
Banks)
Ensure that the applicable charges
if any are recovered in all cases
Report_High_Value_Tra
nsactions.txt
Daily List of transactions
above 10,00,000
All the entries to be scrutinised
and ensured that the transactions
have been made in the normal
course of business and that there
are no suspicious transactions
Report_Maturing_Securi
ties_lond2443.txt.gz
Daily Report on maturing
securities
Contains a list of securities
maturing during the following
month, which have to be sent for
collection at the appropriate time,
proceeds realised and credited to
the respective loan accounts
returned_unpaid-
cfpd0311.txt.gz
Daily LIST OF RETURNED
UNPAID DDPs
1.It must be ensured that all the
DDPs returned unpaid are debited
to the respective customers'
accounts.2.The branch also has to
ensure that the OD interest as per
extant instructions has been
recovered, as otherwise, it would
result in income leakage
SDV_Locker_Charges_
Due_cfpd0556.txt.gz
Daily Report for Lockers
Defaulting on Annual
Charges
This is an area of income leakage
.(1) Follow-up for recovery of rent
arrears to be made(2) If follow-up
does not yield results, steps for
breaking open the lockers to be
undertaken , as per extant
instructions
Status_Report_For_BGL
_gend7058.txt.gz
Daily STATUS LIST OF
BRANCH GENERAL
LEDGER
Ensure that Accounts other than
those maintained by the branch do
not have any balances
79
Report file Name Frequency Contents Aspects to be looked into
System_Generated_Tra
nsactions_lond2543.txt.g
z
Daily System generated
Transactions in loan
accounts
Verify whether the system
generated transactions are in
order
TDS_Exemption_Certific
ates.txt.gz
Monthly TDS
Concession/Exemption
Certificates
Ensure that (1) the certificates are
in order and that all the certificates
are entered in the system (2) the
certificates are forwarded to the
Govt. Dept at the stipulated
periodicity
TDS-DAILY-
REPORT.txt.gz
Daily Daily Report of TDS
Recovered
Ensure that the TDS deducted is
credited to the Govt. a/c at the
stipulated periodicity
Types_Sec_lonm2438.p
rt.gz
Monthly TYPES OF
SECURITIES IN
BANK'S POSSESSION
1.All primary securities, such as
gold ornaments/NSCs/LIC
Policies/Bank's TDRs, etc appear
in this report.2.It must be ensured
that all the securities mentioned in
the report are available physically
and tally with the Securities
Register 3.In the case of securities
which have been released, it must
be ensured that the status is made
'discharged' in the system
Unack_messags_Ets_cf
pd8003.txt.gz
Daily Details of
unacknowledged
messages of e-transfer
As eTransfers are non-existent
now, the matter has to be taken up
with the STEPS department and
resoled immediately
Unpaid_Reffered_chequ
es_dep_depd0578.txt.gz
Daily Outward clearing
cheques returned
unpaid
Ensure that the customers'
accounts have not been credited
with the proceeds of these
cheques and if credited , should be
reversed immediately
User_Amendments_cfpd
0346.txt
Daily AMENDMENT TO
USER RIGHTS
Ensure that the amendments
carried out are appropriate and
that the instructions from the
appropriate authority are in place
vostro_pending_advises
_cfpd0460.txt
Daily OUTSTANDING
VOSTRO ADVISES
To be followed up and obtained
from the respective branches so
that customer service is not
hampered
80
17. IMPORTANT EOD REPORTS RELATING TO ADVANCES &NPA
Report file Name Frequency Contents Aspects to be looked into
CC_OD_Balance_File
_depd0580.txt.gz
Daily List of CC/OD
accounts containing
A/C no., Acct type,
Customer name,
Int.rate,Limit, DP,
Limit Expiry date,
Account balance,
Uncleared balance
,irregularity and old
and new IRAC status
1. Ensure that Limit, DP and
Limit expiry date are properly
filled in 2.Ensure that all
accounts have interest rates
and if there are abnormally
high/low interest rates or
interest rates are at wide
variance with product interest
rates, these need to be rectified
3. All accounts with Old IRAC
status of '00' and New IRAC
status > 00 to be followed up as
these assets have slipped from
standard accounts to NPAs
CIS_BALANCED_FIL
ES_infm1217.txt.gz
Monthly Report of balances of
sub facilities tallied
with the main facility
To be consolidated with the
balances in the
CIS_Balance_Difference report
and ensure that the total of all
the facilities tally with the total
advances of the branch
CIS-BALANCE-
DIFFERENCE-
REPORT.txt.gz
Monthly Facility-Code wise
Balance compare
report- comparing the
B@ncs24 balances
with the Finance-
One balances
Ensure that the difference
between B@ncs 24 and
Finance One under any facility,
if any, is rectified
Control_Report_Loans
_Granted_Public_lon
m2492.txt.gz
Monthly Loans granted to
Public during the
month
Ensure that all the accounts
have been controlled by the
appropriate authority
CTA_BALANCE_FILE
_REPORT.txt.gz
Daily Contingent Accounts
with -Limit-
Outstanding-Expiry
date
As per Basel II norms, all
expired contingent liabilities
attract additional capital
requirements 1.Reversal of
expired LCs and BGs to be
carried out 2.AUC accounts to
be reviewed and if necessary
removed as per extant
instructions
81
Report file Name Frequency Contents Aspects to be looked into
Customer_Insurance_
report_lond2393.txt.gz
Daily Provides the
complete details of
insurance taken by
the bank
1.All expired insurance Policies
should be renewed and the new
policy details to be entered in
the system. 2. Ensure that all
the loan accounts warranting
insurance have been insured
and the data entered in the
system
Debit_bal_acct_zero_r
ate_of_int-
dcsd0620.txt.gz
Daily Debit balance
accounts having zero
rates of interest.
These accounts to be
scrutinised and interest rate to
be incorporated , otherwise, this
will result in income leakage
Delayed_stock_stmts_
lond2422.txt.gz
Daily Report on stock
statements which
have expired
Ensure that the latest stock
statements are obtained and
entered in the system
DemandLoanIrregulari
ty-lonp2391.txt.gz
Monthly Irregularity report -
Demand Loan. On
Repayment basis.
1.It must be ensured that the
Limit and DP are properly
entered in the system in respect
of all the accounts appearing in
the report 2. Follow-up
action for recovery to be
initiated in respect of accounts
which are really irregular
exception_report_for_i
nterest_rates_variatio
n_depd0650.txt (For
Demand loans &
Term loans)
Daily Accounts where the
product level interest
rate is different from
the account level
interest rate
It must be ensured that the
product codes/interest rates are
correct and that errors if any
are rectified
Exception_report_lond
2385.txt.gz
(CC & OD)
Monthly Accounts where the
product level interest
rate is different from
the account level
interest rate
It must be ensured that the
product codes/interest rates are
correct and that errors if any
are rectified
Irregular_excess_draw
_lond2397.txt.gz
Daily List of CC/OD
accounts which have
become irregular on
account of excess
drawings
Ensure that(1) Excess drawings
have been permitted by the
appropriate authority (2)The
accounts are followed up for
early regularisation
Irregular_Overdue_St
atement_lond2490.txt.
gz
Daily Irregular Demand
Loan/Term Loan
accounts
The accounts appearing in the
report have to be followed up
for early regularisation
82
Report file Name Frequency Contents Aspects to be looked into
Monthly_return_of_irre
gular_term_loan_lonm
2425.txt.gz
Monthly Irregular term loans Ensure that (1)collateral
security description, value, etc.
are entered properly and (2)
Irregular accounts are followed
up
List_NPA_Accounts_B
ecome_NPA_Today_l
ond2467.txt.gz
Daily List of accounts
which have become
NPA on the day
These accounts to be followed
up immediately for early
regularisation
List_Special_Mention_
AccountsI_lonm2553.t
xt.gz
Monthly List of accounts
which were standard
assets as at the end
of previous March,
but have become
irregular now
Ensure that (1) Arrear
conditions responsible for the
accounts becoming NPA are
addressed and the accounts
upgraded and (2)
Accounts which are irregular
are followed up for early
regularisation
Listof_NPA_Accounts
_lond2572.txt.gz
Daily List of all accounts
identified by the
system as NPAs as
on date
Ensure that (1) Arrear
conditions responsible for the
accounts becoming NPA are
addressed and the accounts
upgraded (2) Accounts which
are irregular are followed up for
early regularisation
One_Acct_NPA_All_A
cct_NPA_lonp2545.txt
Daily List of accounts of a
borrower which have
to be classified as
NPA because of one
of the accounts
turning NPA
The account which has become
NPA to be scrutinised and
measures for early upgradation
to be initiated
LoansBalanceFile-
lond2390.txt.gz
Daily List of DL/TL
accounts containing
A/C no, Acct type,
Customer name,
Int.rate,Limit, DP,
Limit Expiry date,
Account balance,
Uncleared balance,
irregularity and old
and new IRAC
status, EMIs
due/paid/overdue
1.Ensure that Limit, DP and
Limit expiry date are properly
filled in 2.Ensure that all
accounts have interest rates
and if there are abnormally
high/low interest rates or
interest rates are at wide
variance with product interest
rates, these need to be rectified
3. All accounts with Old IRAC
status of '00' and New IRAC
status > 00 to be followed up as
these assets have slipped from
standard accounts to NPAs
83
Report file Name Frequency Contents Aspects to be looked into
Probable_NPA_Repor
t_lond2463.txt.gz
Daily NPA classification
report
All the accounts appearing in
the report are those which were
regular standard assets as on
31/03/08 and have slipped to
Risk Grades 01,02,04 as on
date. These accounts have to
be looked into individually and
immediate action taken for
upgradation
Recommended_NPA_
Write_Off_Report_lon
m2538.txt.gz
Monthly Write off
recommendations for
AGRI/SBF/SSI/Per
segment
Write-off recommendations in
respect of all eligible accounts
to be submitted and approval
obtained
Review_Renewal_lon
m2394.txt
Monthly List of accounts due
for review/renewal
The accounts appearing in the
report have to be reviewed/
renewed and the dates
incorporated in the system
ROC_CHARGE_STA
TUS_lond2452.txt.gz
Daily List of accounts
where charge has not
been registered with
ROC
Charge has to be registered
with the Registrar of
Companies immediately
EDU_LOAN_MORT_A
LERT_Report_lond91
47.txt.gz
Daily List of education loan
accounts where
repayment is due
from the following
month
Ensure that the follow-up with
the borrower is made for
initiating repayment
List_of_Accounts_due
_lond2588.txt.gz
Daily List of accounts due
for revival from the
date of report for a
further period of 9
months
Ensure that revival letters are
obtained at stipulated intervals,
entered in CBS and kept along
with the documents
Holidays_granted_NP
A_Accounts_2595
Monthly List of loan accounts
where holidays have
granted for NPA
tracking
Ensure that holidays are
granted for a specific arrear
conditions and for valid reasons
Report of AGRI
advances CCOD 6646
On 5
th
&
25
th
of
every
month
List of all CC/OD
accounts in AGRI
segment including
NPA tracking date
1.Ensure that Limit, DP and
Limit expiry date are properly
filled in 2.Ensure that all
accounts have interest rates
and if there are abnormally
high/low interest rates or
interest rates are at wide
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Report file Name Frequency Contents Aspects to be looked into
variance with product interest
rates, these need to be rectified
3. All accounts with Old IRAC
status of '00' and New IRAC
status > 00 to be followed up as
these assets have slipped from
standard accounts to NPAs
4.Ensure that NPA tracking
date is correct
Report of AGRI
advances CCOD 6645
On 5
th
&
25
th
of
every
month
List of all DL/TL
accounts in AGRI
segment including
NPA tracking date
1.Ensure that Limit, DP and
Limit expiry date are properly
filled in 2.Ensure that all
accounts have interest rates
and if there are abnormally
high/low interest rates or
interest rates are at wide
variance with product interest
rates, these need to be rectified
3. All accounts with Old IRAC
status of '00' and New IRAC
status > 00 to be followed up as
these assets have slipped from
standard accounts to NPAs
4.Ensure that NPA tracking
date is correct
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18. NPA MANAGEMENT - TIPS
NPA Management Consists of
i) Identify potential NPAs
ii) Upgradations
iii) Rehabilitation
iv) Restructuring/ Rephasing
v) Recalled Assets
vi) Recovery
- Legal process
- SRESI Act
- Compromise
vii) Write-offs
- Technical
- Final
viii) AUCA
Areas of Concern
As on 31.3.2010 the Gross NPA was at 3.05% which has to be brought down to 1.5- 2%
by 31.3.2013. The Net NPA as on 31.3.2010 was at 1.72% which has to be brought
down to 0.4 to 0.6% by 31.3.2013.
Fresh addition of NPAs year after year is of serious concern.
Failure to identify potential NPAs/warning signals, well in time.
Recoveries/upgradations not showing improvement to counter fresh addition of NPAs.
Slow pace of write offs even in respect of accounts where full provision is available.
Value of available security not properly assessed requiring additional provisions.
Lack of effective follow up for recovery under settled compromises. Expectations from
Circles
Identification and Monitoring of Special Mention Accounts (SMAs) as per Guidelines
issued by RBI.
Close monitoring of potential NPAs listed in credit audit report.
Problem Loan Review for detection of early warning signals and initiating timely
corrective action needs to be given more thrust.
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Timely restructuring/rehabilitation/ rephasing of potential NPAs. Settlement through OTS
Encourage Compromises / OTS within the parameters laid down by the Bank.
Use the SRESI Ordinance effectively to compel the defaulting borrowers to come
forward for compromise: The recently reduced cut-off limit to Rs. 1 lac to be effectively
used for taking action against the defaulting borrowers.
Write-offs
All eligible accounts as per the revised write off policy to be identified immediately and
processing / submission of the proposals to be expedited to avoid bunching of proposals
during last quarter as has been the past experience. The target for NPA reduction has to
be achieved without fail.
Follow-up of AUCA
The AUCA portfolio needs focused attention for recovery, as which will have direct
bearing on bottom line of the Bank.
Symptoms of Sickness
a) Continuous irregularity in cash credit accounts;
b) Low capacity utilisation;
c) Profit fluctuations, downward trends in sales and stagnation or fall in profits
followed by contraction in the market share;
d) Higher rate of rejection of goods manufactured;
e) Reduction in credit summations-whenever the companies are in financial
difficulty, they open a separate account with another bank and deposit all
collections therein;
f) Failure to pay statutory liabilities;
g) Larger outstandings in the bill accounts;
h) Longer period of credit allowed on sale documents routed through the bank and
frequent return of the same;
i) Constant utilisation of cash credit facilities to the hilt and failure to pay timely
instalment of principal and interest on term loans;
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j) Non-submission of periodical financial data/stock statement, etc. in time;
k) Financing capital expenditure out of funds provided for working capital purposes;
I) Decrease in working capital on account of ..
i) Increase in debtors and particularly dues from selling agents ii) increase in
creditors
iii) increase in inventories which may include large number of slow or non-moving
items
m) A general decline in that particular industry combined with many failures;
n) Rapid turnover of key personnel;
o) Existence of a large number of law suits against the company;
p) Rapid expansion and unrelated diversification within a short time;
q) Sudden/frequent changes in management-whether professional or otherwise
and/or dominated by one man/few individuals;
r) Diversion of funds for purposes other than running the unit;
s) Any major change in the shareholdings;
CAUSES OF SICKNESS
A. Internal Causes
1. Planning :
a) Technical feasibility, Inadequate technical
know-how, Locational disadvantage, Outdated
production process
b) Economic viability High cost of inputs:
Break-even point too high, Uneconomic size of
project, Under-estimation of financial
requirements, Unduly large investment in fixed
assets and Over-estimation of demand
2. Implementation :Cost overruns resulting
from delays in getting licenses/sanctions, etc.
B. External Causes
a) Infrastructural bottlenecks: Non-availability
of/irregular supply of critical raw materials or
other inputs Chronic power shortage Transport
bottlenecks
b) Financial bottlenecks: Non-availability of
adequate finance at the right time
c) Government controls and policies etc. :
Government price controls, Fiscal duties,
Abrupt changes in government policies
affecting costs/prices/ imports/
exports/licensing
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Inadequate mobilisation of finance.
3. Production : a) Production Management
In appropriate product-mix, Poor quality
control, Poor capacity utilisation, High cost of
production, Poor inventory management,
Inadequate maintenance and replacement,
Lack of timely and adequate modernisation,
High wastage, etc.
b) Labour Management Excessively high
wage structure Inefficient handling of labour
problems, Excessive manpower, Poor labour
productivity, Poor labour relations, Lack of
labour or technically Competent personnel
c) Marketing Management
Dependent on a single customer or a limited
number of customers single or a limited
products Poor sales realisation Defective
pricing policy, Booking of large orders at fixed
prices in an Inflationary market, Weak market
organisation, Lack of market feedback and
market research Unscrupulous sales/purchase
practices
d) Financial Management
Poor resources management and financial
planning, Faculty, costing, Liberal dividend
policy, General financial indiscipline and
application of fund for unauthorised purposes.
Deficiency of funds, Over-trading,
Unfavourable gearing or keeping adverse
debt-equity ratio, Inadequate working capital,
Absence of cost consciousness, Lack of
effective collection machinery
e) Administrative Management Over
centralisation Lack of professionalism, Lack
of feed-back to management
(Management Information System), Lack of
controls, Lack of timely diversification,
Excessive expenditure on R&D, Dividend
loyalties (where the same management has
interest in more than one unit cases are
known where promoters of limited companies
Procedural delays on the part of
financial/licensing/other controlling or
regulating authorities (Banks RBI, financial
institutions, Government departments,
licensing authorities monopolies and restrictive
trade practices Board, etc.)
d) Market constraints : Market saturation
Revolutionary technological advances
rendering ones products obsolete Recession
- fall in domestic/ export demand
e) Extraneous factors : Natural calamities
Political situation (domestic as well as
international) war Sympathetic strikes.
Multiplicity strikes Multiplicity of labour unions,
Unhealthy competition from other similar units.
89
who also own private ownership firms tend to
look after the interest of the latter, often at the
cost of the former)
Dissension with in the management
Incompetent management Dishonest
management.
4. Change Management: Identify right
person for right thing and change the position.
5. Technology/ Machinery: Adapt to the
latest and the most profitable.
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90
19. LEGAL TIPS ON NPA MANAGEMENT
Order 21 Rule 41 of CPC - for disclosure of assets by judgment debtors.
Order 12 Rule 6 of CPC/Rule 12(5) of DRT (Procedure) Rules 1993- Decree for the amount
partially admitted.
Summary suits under Order 37 of CPC
Rule 12 Sub-rule (7) of the DRT (Procedure) - Rules 1993 regarding execution of documents. In
case of denial of execution of documents, official acquainted with the case or who has signed
the plaint/petition can adduce evidence based on records available.
Section 138 of Income Tax Act for ascertaining details of assets owned by the
borrowers/guarantors. Order 38 Rules 5 & 6 - Application for appointment of commissioner for
taking inventory & sale/attachment before judgement. Order 39 Rule l - Temporary injunction
Order 39 Rule 6 - Interim sale of security Order 39 Rules 7 & 8 - Detention, preservation,
inspection of security. Order 40 Rule 1 - Appointment of a receiver Order 38 Rule 1 to 4 - Arrest
of defendant before judgement Order 21 Rule 22 - Attachment orders immediately on filing of
Execution Petition Garnishee Orders can be prayed for to restrain third parties from parting with
the funds belonging to the judgement debtors. Recovery officer of DRT can also direct a bank,
post office, any person, etc. owing any money to judgement debtors to pay it to him. Even joint
accounts will be covered for the presumed share.
Attachment of salary up to 1/3rd after leaving out the first Rs.400/-
Order 21 Rules 37, 40 - Arrest & detention in civil prison
Declaring a judgement debtor as an insolvent.
Mortgage suit under Order 34 Rule 4 - Court has no power to grant the facility of paying the
decretal amount in instalments. Attachment of property not required before sale.
Defendants should be called upon to admit or deny the documents under Order 12 of CPC.
In a mortgage suit if sale proceeds of the mortgaged property do not liquidate the dues in full,
we can apply for personal decree against the mortgagor (borrower/guarantor) under Order 34
Rule 6 of CPC. Such an application should be made within 3 years.
Bank officials are public servants in terms of Section 21, Explanation (xii) of Indian Penal Code
and Section 46A of the Banking Regulation Act 1949. Therefore, assistance of the police can be
sought for recovery of hypothecated/ pledged goods. Attention of police officials to be drawn to
Section 21 (xii) and 183 of the Indian Penal Code.
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If value of securities is less than the suit amount, other known assets of the
borrowers/guarantors should be attached under Order 38 Rule 5 of CPC.
If no bidders are coming forward for an immovable property, the Bank can seek courts
permission to participate in auction under Order 21 Rule 72 (Controlling Authority to clear such
a course of action.)
Services of retired court Amins/ other agencies for ascertaining the addresses of judgement
debtors and retired revenue officials for obtaining complete details full description of mortgaged
properties can be obtained. Services of private agencies for taking possession of movables like
trucks, etc. & selling them can also be taken.
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92
20. EXECUTION OF DECREES : ORDER 21 CPC
APPLICATION FOR EXECUTION
All proceedings in execution are to be commenced by an application for execution. It should be
in writing and should contain the particulars set forth in Order 21 Rule 11 to 14.
In case the decree is for the payment of money and the judgment debtor is in the precincts of
the court where the decree is passed, the court may order immediate execution on the oral
application of the decree holder.
If the requirements under Rules 11 to 14 are not satisfied, the court may reject the execution
petition. But the decree holder can present another execution petition properly framed till
limitation bars the execution of the decree.
WHO MAY APPLY FOR EXECUTION
The application for execution is to be made by the decree holder. If the decree is transferred by
the decree holder, the transferee may apply for execution under Order 21 Rule 16.
If the decree has been passed jointly in favour of more than one decree holders anyone or more
of such persons may apply for execution (Rule 15).
AGAINST WHOM EXECUTION MAY BE APPLIED FOR
If the judgment debtor is living, execution is to be applied for against him. If he is dead,
execution petition may be filed against his legal heirs. However, such a decree against the legal
representatives of the deceased is enforceable only as against the property of the judgment
debtor, which has come into the hands of the legal representatives.
NOTICE BEFORE ISSUING PROCESS
Ordinarily, no notice is required to be issued before the court issues its process for execution of
the decree. However, under certain circumstances, a notice is required to be issued before the
process is issued. These circumstances are:
where an application for execution is made more than two years after the ; date
of the decree (Order 21 Rule 22),
where an application is made against the legal representatives of the party to the
decree,
where an application is made against the Assignee or Receiver in insolvency when a
party to the decree has been adjudged insolvent (Rule 22),
93
where an application is made for execution by arrest and detention of the judgment
debtor in case of a money decree. The court is required in such cases to issue a
notice under Order 21 Rule 37. Where the judgement debtor is likely to abscond or
leave the local limits of the jurisdiction of the court, no notice is necessary.
MODE OF EXECUTION
The decree can be executed in any of the following modes:
By delivery of any property specifically decreed.
By attachment and sale of property.
By sale without attachment of any property.
By arrest and detention in prison.
By appointing a Receiver.
By such other mode or manner as the nature of the relief granted may require.
EXECUTION AGAINST THE PERSON OF JUDGMENT DEBTOR
I. DECREE FOR PAYMENT OF MONEY
In case of a money decree, it can be executed by arrest and detention of judgment debtor in
civil prison. However, a person can be arrested and detained in civil prison in execution of
money decree in any one of the following circumstances only:
the judgment debtor has dishonestly transferred, concealed or removed his property
or has committed any other act of bad faith or he is likely to abscond or leave the
local limits of the courts jurisdiction with the object or effect of obstructing execution
of the decree, or
the judgment debtor has the means to pay the amount of the decree and refuses to
pay the same; or
the decretal dues are such that the judgment debtor is bound in a fiduciary capacity
to account.
II. PROCEDURE
The procedure differs depending upon the nature of the decree. In case of a money decree, the
notice is required to be issued. After such notice is issued if the judgment debtor does not
appear in obedience to the notice, the court shall issue a warrant for arrest (Rule 37(2)). After
94
the judgment debtor appears, the court shall hear the decree holder and take evidence and give
an opportunity to the judgment debtor to show cause. After hearing both the parties, the court
may order detention or release. The court also has the power to detain the judgment debtor
pending conclusion of the inquiry (Order 21 Rule 40).
III. RESTRICTION AND CONDITIONS
No woman can be arrested or detained in execution of a money decree (Sec.57)
No person can be arrested till the decree holder pays subsistence allowance in the court. The
State Government may fix the scales according to rank, race and nationality.
No dwelling house shall be entered after sunset and before sunrise for the purpose of making
arrest.
IV. GARNISHEE ORDER
Order of Garnishee is an order or direction to a third party who is owing debt to the judgment
debtor to pay the same to the court for eventual satisfaction of the decree of the decree holder.
The honourable court while issuing the notice to Garnishee calls upon the Garnishee to pay the
amount to satisfy the decree or to show cause why such debt is not payable or why he should
not be called upon to make payment in the court. If the garnishee disputes the liability, it shall be
decided as if it were an issue in a suit and upon determination of such issue, court can make
Order as deemed fit. Such determination is appealable as a decree (Rule 46 A to 46(1))
EXECUTION AGAINST THE PROPERTY OF JUDGMENT DEBTOR
Attachment and Sale
Attachment precedes sale. Attachment is levied and the sale of the property attached
is effected by an officer of the court under a warrant issued from the court.
Attachable property belonging to a judgment debtor may be divided into classes:
(a) movable and
(b) immovable
Attachment of Movable Property: This is done in different ways according to the nature of the
property (Order 21 Rules 43 to 53)
Attachment of Immovable Property: The attachment shall be made by an order prohibiting the
judgment debtor from transferring or charging the benefit from some place on or adjacent to the
property, and a copy of the order is to be affixed on a conspicuous part of the property and then
conspicuous part of the court house (Rule 54).
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If a claim be preferred to any property attached in execution of a decree by any person other
than a party to the suit, the procedure prescribed by Rules 58 and 59 is to be followed. If any
questions relating to the execution of the decree arise between the parties to the suit or other
representative, they are to be dealt with under section 47.
SALE OF ATTACHED PROPERTY
In terms of Rule 43 if the property attached is movable and is subject to speedy and natural
decay, the same be directed to be sold at once. Every sale in execution of a decree should be
conducted by an officer of the court except where the property to be sold is a negotiable
instrument or a share in a corporation, which the court may order to be sold through a broker
(Rule 76)
Rule 66 - After the property is attached, the first step to be taken by the court towards the sale
thereof whether the property be movable or immovable, is to cause a proclamation of the
intended sale to be made stating the time and place of sale, and specifying the property to be
sold, the revenue (if any) assessed upon the property, the encumbrances (if any) to which it is
liable, the amount for the recovery of which the sale is ordered, and such other particulars as
the court considers material for a purchaser to know in order to judge the nature and value of
the property.
Rule 69 - The court may, in its discretion, adjourn the sale from time to time, but if the sale is
adjourned for a longer period than thirty days, a fresh proclamation should be made, unless the
judgment debtor consents to waive.
Rule 72 - The decree holder can also bid in the auction with the express consent of the court.
Rule 72 - A decree holder mortgagee can bid in the auction with the express consent of the
court which may impose conditions while granting such permission.
IRREGULARITY IN THE CONDUCT OF SALE OF ATTACHED PROPERTY
Rule 90: No sale of an immovable property can be set aside on the ground of irregularity in
publishing or conducting the sale, unless upon the facts proved the court is satisfied that the
party seeking to set aside the sale has sustained substantial injury by reason of such
irregularity.
Rule 78: As regards the movable property, the rule is that a sale of movable property is not
liable to be set aside in any case on the ground of irregularity in publishing or conducting the
sale. The only remedy open to the party who has sustained any injury by reason of such
irregularity is to institute a suit for compensation against the persons responsible for irregularity.
COURTS BY WHICH DECREES MAY BE EXECUTED
A decree may be executed either by the court that passed it, or by the court to which it is sent
for execution. A decree may be sent by the court, which passed it, for execution to another
court, i) if the judgment debtor resides or carries on business within the local limits of the
96
jurisdiction of the latter court, or (ii) if the property sought to be attached or sold in execution of
the decree is situated within its limits or (iii) if the decree directs the sale or delivery of
immovable property situated within these limits (Sections 38-39)
PRECEPTS SECTION 46
It always takes some time to transfer a decree for execution to another court. If the decree
holder has reasons to apprehend that the judgment debtor will dispose of the property before it
is attached by the other court, he may apply to the court which passed the decree to issue a
precept to the other court to attach the property at once. Where such a precept is issued, the
court to which it is issued should proceed to attach the property.
INTERLOCUTORY APPLICATIONS - SUPPLEMENTAL PROCEEDINGS
Judgment on admissions (Order 12 Rule 6)
Arrest before judgment (Section 94-95; Order 38 Rules 1 to 4)
Attachment before judgment (Sections 94-95: Order 38 Rules 5 to 12)
Injunction (Sections 94-95; Order 38)
Receiver (Sections 94-95: Order 40)
Withdrawal of suits (Order 23 Rules 1 and 2)
Compromise of suits (Order 23 Rule 3)
A plaintiff may at any stage of a suit apply for the arrest of the defendant before judgment is
passed against him. Similarly, he may apply for the attachment of his property before
judgment. Such an application may be made at any time after the plaint is admitted, even before
the service of summons upon the defendant.
A) ARREST BEFORE JUDGMENT (ORDER 38 RULES 1 TO 4)
Where the court is satisfied that the defendant with the intent to delay the plaintiff or to avoid
any process with intent to obstruct or delay the execution of any decree that may be passed
against him
has absconded or is about to abscond, or has left or is about to leave the local limits
of its jurisdiction, or
has disposed of his property or any part thereof or has removed it from the said limits
97
the court may issue a warrant to arrest the defendant, and bring him before the court
to show cause why he should not furnish security of his appearance.
The warrant should specify the amount of the plaintiffs claim. If the defendant pays the amount
to the officer entrusted with the execution of the warrant, he will not be arrested. If he does not
pay the said amount, he will be arrested and brought before the court. If he shows such cause,
the court will make an order directing his release. If he fails to show such cause, the court will
make an order directing him either to deposit in court money or other property sufficient to
answer the claim against him or to furnish security for his appearance at any time until
satisfaction of any decree that may be passed against him. If he fails to comply with the last
mentioned order, the court may commit him to civil prison.
B. ATTACHMENT BEFORE JUDGMENT (ORDER 38 RULE 5 CPC)
Where the court is satisfied that the defendant, with the intent to obstruct or delay the execution
of any decree that may be passed against him is about to dispose of his property or any part
thereof or remove it from its local limits, the court may direct the defendant either to furnish
security in such sum as may be specified in the order or to place at the disposal of the court the
said property or the value thereof, or such portion thereof as may be sufficient to satisfy the
decree that may be passed against him, or to appear and show cause why he should not furnish
such security, the court may also in the order direct the conditional attachment of the said
property.
Where the defendant shows such cause or furnishes the required security and the property has
been conditionally attached, the court will order the attachment to be withdrawn. If he fails to
show such cause, the court may order that the property be attached.
Where the property is attached before judgment and a decree is subsequently passed in favour
of the plaintiff, it is not necessary to reattach it in execution of the decree.
Agricultural produce cannot be attached before judgment.
The sole object of attachment before judgment is to give an assurance to the plaintiff that the
decree which may be ultimately passed in his favour shall not be rendered infructuous. The
requirements must be satisfied and mere mechanical reproduction of language is not enough.
There must be some definite evidence.
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21. CUSTOMER FOCUS
What can we do to provide service that will make a difference to our clients? You can never be
complacent or take the customer for granted. Thats why were always striving to do better
- Robert Waterman in The Renewal Factor.
What do customers want?
Customers were asked to rate in order of importance to themselves the following five
dimensions of service quality:
Reliability: The ability to provide what was promised, dependably and accurately.
Assurance: The knowledge and courtesy of the employees, and their ability to convey trust and
confidence.
Tangibles: The physical facilities and equipment, and the appearance of the personnel.
Empathy: The degree of caring and individual attention provided to customers.
Responsiveness: The employees willingness to help customers and provide prompt service.
Reliability was rated as the most important dimension of service quality. This was followed in
importance by responsiveness, assurance and empathy, respectively. When employees were
asked to list the same five dimensions in order of importance to customers, reliability came a
distant third after responsiveness and assurance.
Focus inside - Putting your house in order
Early decline and certain death are the fate of companies whose policies are geared totally and
obsessively to their own convenience at the total expense of the customer.
- Theodore Levitt in The Marketing Imagination
Why Customer Focus?
Customer focus means more than just maintaining good customer relations through a well-
trained sales staff and an adequate after sales follow-up program. Customer focus is an entire
philosophy of doing business in which the goal is not only to meet the customers needs and
expectations but to exceed them. Research shows that a substantial number of apparently
satisfied customers are willing to switch to a competitor who offers comparable value provided
the customers basic needs are met. The key to retaining customers, therefore, cannot simply
be a matter of satisfying them. Banks must move from satisfied to loyal customers - and to
99
competitive advantage - by meeting or exceeding customers expectations, and adding value
through enhanced products and services.
Elements of Customer Focus
The Customer focus Employees Survey included questions covering both manager practices,
and a combination of climate and organisational practices labeled as Internal Environment,
which influenced customer service. Both sets of questions were factor-analysed. The analysis
uncovered four management factors and four internal environment factors. The four factors in
each set are listed hereafter.
Management Factors
Setting Customer-Focused Performance Goals and Standards
My manager frequently reminds us that it is important for us to put the customer first.
My manager communicates goals and standards that support high-quality service.
I know what my manager expects of me in serving customers. Taking Personal Action to
Help Solve Customers Problems
When there is a conflict between a customer and an employee, my manager listens to
both sides of the story.
My manager makes an effort to help remove obstacles that hinder serving customers
well.
My manager sets a personal example of good customer service. Seeking Innovative
Ways to Serve Customers Better
My manger frequently asks employees who have contact with customers for information
on customer needs or expectations.
My manager seeks opportunities to try new ways of doing things to serve customers
better.
My manager asks for, and considers, my ideas about improving the quality of our
products and services.
Helping Employees learn How to Serve Customers Better
What my customers want me to do and what my manager wants me to do are usually
the same.
100
My manager frequently gives me honest and direct feedback about how well I am
serving customers.
My manager helps me learn from my experiences with customers (both successes and
failures).
The Internal Environment
Aligning the Larger Organisation to Serve Customers
Our policies and procedures rarely interfere with serving customers well.
Upper-level management provides us with the support and resources we need to serve
customers well.
Information from our companys market or customer research is regularly used to
improve the service we provide to customers.
When I need help with a customers problem. I almost always receive it. My company
provides me with the resources - such as equipment, tools, and physical space - that I
need to serve customers well.
In the process of serving our customers, we feel that we cooperate with others in the
company, rather than compete with them.
Support staff, who do not work directly with customers, are kept informed about
customer needs or expectations.
Building Capability to Serve Customers
We are trained to do various jobs so that we can fill in for one another in our department
or work unit.
My fellow employees assume that being responsive to customer needs is their personal
responsibility, and not just someone elses job.
Within our work unit, we function as a team in serving customers.
Having customer relations skills is an important factor in deciding who is hired to work
with customers.
Employees who do the best job of serving customers are more likely than other
employees to be recognised or rewarded.
101
Seeing Excellence of Service as an Important Value and Living Up to It
When customers have problems with the products or service they receive from my unit,
the problems are almost always resolved to their satisfaction.
Providing high quality service to customers is very important to me.
To the extent that we have goals and standards for service quality, we typically meet
them.
Connecting with Customers
In our work unit, we regularly ask our customers about their needs or expectations.
We regularly collect feedback from customers about the quality of the service that they
receive from us.
We regularly give customers information about our products and services that help them
know what to expect.
We use information about the needs or expectations of our customers to identify ways to
serve them better.
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22. THE DIFFERENTIATORS
Why does a customer choose a particular Bank?
A market research study has found the following five dimensions to service quality i.e., the
differentiators which provide value to a customers choice of bank.
a) Reliability - To do or provide what was promised, dependably and
accurately.
c) Assurance - Knowledge and courtesy in employees and their ability to
convey trust and confidence.
d) Empathy - Degree of caring and individual attention to customers.
f) Tangibles - Physical facilities and appearances of the branch as well as
its personnel.
e) Responsiveness - Willingness to help customers and provide prompt service.
These differentiators, then, are at the heart of customer satisfaction, customer preferences.
While all of these seem to be very routine and familiar, they merit a closer look - for they are the
very differentiators which nourish a relationship with a customer. Factors which could initially
influence choice of bank are the reputation of the bank, convenient timings, proximity to the
residence or office and possibility of availing a credit facility. But in this age of competition, the
customer has come to expect and get much more from his Bank. He seeks satisfaction in terms
of responsiveness, reliability, empathy and service. For these, he might even be prepared to
forego the advantages of location, timings or convenience. The customer today has begun to
discriminate. What is important, though, is not only to attract the customer to the bank but also
to retain him, to keep him satisfied, and to build a long term relationship. We need to project our
own uniqueness in the customers mind.
In todays intensely competitive environment, every Bank seeks to woo customers by projecting
its strong points. One of our strong points, of course, is our people. With our large and talented
workforce, we should be far ahead of any other competitor. While we are still the market
leaders, it is also a reality that we are losing our market share - that customers are beginning to
choose other banks in preference to us. This could be because we have been unable to totally
fulfill our customers needs and expectations. It could also be because we are not working
together in wooing our customers. We should understand that each customer has his own
particular need and expectation from the Bank. We have to spend time to understand each
customers needs and do our best to fulfill them. This is what will give us an edge over others.
We need to work together in recognising and admitting his importance and in making him feel
important.
For the customer, it is not the Branch Manager alone who represents the Bank, but every single
employee with whom he comes into contact. This moment of contact is the moment of truth for
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the customer as well as the Banker, for this is the moment which will make or mar the image of
the Bank, which will strengthen our relationship with the customer or send him away to another
Bank. These moments of truth will occur several times a day, that is, each time the customer
comes into contact with a representative of the Bank. It is for you as the Branch Manager to
inculcate this consciousness amongst your entire team so that each member of your staff - be it
officer, clerk or messenger -understand that he carries the important responsibility to build or
mar the Banks reputation.
THUS WROTE A CUSTOMER
I am the person who goes into a restaurant, sits down patiently and waits while the waiters do
everything except take my order.
I am the person who goes into a shop and stands quietly while the salesmen finish their
newspaper reading.
I am the man who drives to a petrol pump and never blows his horn but waits patiently while
the attendant finishes talking to his friend.
Yes, you might say I am a good customer. But do you know who else I am?
I am the fellow who never comes back. And it amuses me to see you spending thousands of
rupees in advertising every year to get me back. When I was there in the first place and all you
had to do was to show me a little courtesy.
O Quality is not the absence of defects as defined by management, but the presence of
value as defined by customers.
O The cost is long forgotten but the quality is remembered forever. O Observe your
competitors for they first find out your faults.
O The single most important thing to remember about any enterprise is that results exist
only on the outside. The result of a business is a satisfied customer. The result of a
hospital is a healed patient. The result of a school is a student who has learned
something and puts it to work 10 years later. Inside an enterprise there are only costs.
- Peter Drucker
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23. HANDLING ANGRY CUSTOMERS - A FEW TIPS
Customers can be kept happy in two ways. First, by providing problem free service and second,
by giving appropriate assistance to them when problems do crop up. Research indicates that
customers who complain and receive a satisfactory response are more than twice as likely to
remain loyal to the bank than those who do not complain against bad service or who receive an
unsatisfactory response.
An angry customer is irrational and unwilling to negotiate reasonable solutions. The first step in
handling him is to cool down his anger by an active listening approach. We could invite the
customer to explain his side of the story. By restating his problem to a sympathetic audience,
the customer feels convinced that his problem is recognised and will be addressed in a fair and
impartial manner. This alone greatly reduces his anger. Removing him from centre stage can
also help to calm him down. Take him to a quiet place for discussions. It also prevents the
problems getting out of hand.
A wrong approach in tackling an angry customer viz., interrupting him even if to ask details of
his account or transaction, putting the blame on him or other employees, can only make the
customer more angry. In turn, he becomes harder still to deal with and may demand excessive
concessions. Even if the Branch Manager gives him expensive gifts, satisfaction may remain
impossible. Customers often accept inexpensive solutions such as a simple correction of the
problem, decreasing the cost of remedying customer problems.
Tactful handling of customer complaints can be taught to subordinates through example, explicit
suggestions and guidance at appropriate times. A hidden benefit of an employee successfully
handling an angry customer is an improvement in the employees morale too.
Finally, customer complaints should be reviewed periodically and used as pointers to problem
areas. Without corrective follow-up to root out the causes of complaints, there will be no long
term benefit of successful handling of individual complaints.
Ninety percent of the friction of daily life is caused by the wrong tone of voice.
Reason is mans tool of knowledge, the faculty that enables him to perceive
the facts of reality. Emotions are not tools of cognition. What you feel tells you
nothing about the facts; it merely tells you something about your estimate of
the facts. Emotions are the result of your value judgements; they are caused
by your basic premises, which you may hold consciously or subconsciously,
which may be right or wrong.
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24. RETAIL BANKING AN OVERVIEW & MARKETING TIPS
Retail Banking lays emphasis on
Individuals
Financial Services to trade and other services
Financial services to small scale industries including mid corporate
Why Retail Banking
The next obvious question is: Why to focus on retail banking. As we said earlier, most of the
incremental advance (for some banks more than 50% of the incremental finance) in recent
times has gone towards retail lending. Retail banking in State Bank of India for the year ended
Mar 03, had a share of over 80% in deposits, 40% in advances, 72% in Net Result and 68% in
other income. Some of the causes that led to the shift in focus towards Retail Banking are:
The increasing emphasis on risk management (finance to large corporate are perceived
to be riskier due to concentration and higher delinquency)
Disintermediation- a practice in which Corporates directly go to market to procure funds
through Commercial Paper, bonds etc instead of availing loans from banks
Decreasing margin from corporate lending. Due to competition, corporate drive down
pricing of loans.
Lower off take of finance by Corporates. This is due to slow growth manufacturing
sector.
Retail Banking has thus emerged as a potential business opportunity for Banks. Some of the
factors that drive the growth of business in retail banking are:
Higher disposable income among individuals
Changing life style leading to increased consumption
Lower interest rates for loans
More and easier options to avail finance.
Favorable fiscal policies. For example, the tax exemptions given for housing loan is a
major push factor for Housing industry
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Opportunities in Retail Banking
As said earlier, retail banking focuses on Personal and Development Banking. The lending to
retail banking has been growing substantially in recent times. One could expect this trend to
continue considering the economic factors that drive growth. Let us look at some of them:
Housing Sector is expected to grow at more than 30% per annum for the next five years
(CRISIL Study). Housing Loan is one of the key drivers of growth in personal segment. More
than 50% of the growth in personal segment during 02-03 has come from Housing loans. The
size of housing loan market is more than Rs. 80,000 Crores and is expected to grow over Rs.
1,50,000 Cr in the next five years.
In India, more than 5 lac cars sold every year. Car market is expected to grow further. India is
reportedly having 6 cars per 1000 people. Even a country like Pakistan is having 12 per 1000.
Thus, the potential for growth in car market is pretty high. The aggregate additional car loan
extended by Banks in India during 02-03 crossed Rs. 20,000 Crores while it was Rs. 14000 Cr
during 01-02 resulting in over 40% growth during 02-03. It is expected to grow over Rs. 26000
Cr during the current year. This trend is bound to continue and intensify. The factors that could
drive car loans are upgrades from two wheeler to four wheelers (since the difference at the entry
level from two wheeler to four wheeler is marginal), upgrades from entry level car to B and C
segments, increased focus of Maruti, Telco and other players in the field, development of
infrastructure in transports, reduction in excise duty. Even, Second hand car offers a big market
which is in the range of 40% of the new car market.
Owing to increased consumption and change in life style one could expect a growth in demand
for FMCG. Thus the market for personal loans would grow.
Compared to many developed market, India is growing younger over time i.e. the share of
younger age group in the population is increasing. This offers more scope for tapping individuals
at younger ages.
The share of services in GDP in India is already over 50%. Retail trade is emerging as a big
opportunity due to increased consumption and improvement in infrastructure.
Characteristics of Retail Segment
Retail segment has distinct characteristic which sets it apart from commercial banking. Some of
the characteristics are:
Large volumes and Low value: The value per account is low and the number of accounts
is high.
The needs of the users are diverse
Networking of branches is essential for success
Requires more servicing
Lower delinquency
Relationship Management is critical to performance
Existence of appropriate delivery channel
Cash still plays a significant role
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Product failure rates are high.
The needs of retail segment may be classified between individuals and businesses and they
are:
Individuals
Variety of products
Value added products
Anytime, anywhere banking
Transaction management
Investment management
Businesses
Timely business loans
Products to suit cash flows
Consultancy.
Building competitive advantage in Retail Banking
Since the banking industry as a whole has turned towards retail banking, the competition is very
high n the business. Some of the strategies used by competitors to increase retail portfolio are:
Building technology platform
Increased delivery channels
365 days banking
Extended banking hours
Door delivery of services
Price based competition (more particularly in Housing segment)
Aggressive marketing
World class ambience in retail outlets
Product innovations
Engagement of Direct Sales Agents, franchisees etc.
Regular exhibitions
Mass customization of products and services
Conclusion
Retail banking would continue to grow at a greater pace for the next 5 years. Since the
competition is fierce in this segment, individual banks need to develop appropriate strategies to
succeed in the market place. Customer service and technology still remains a key differentiator
in the ultimate success. While products such as housing loan are driven by price, there are
other loans such as personal loans and car loans where speed is critical as compared to price.
This explains why despite lower rates of interest public Sector Banks have done poorly in these
products. Hence developing product based strategies would be more efficient for success in
retail banking. Alongside, the ability to control cost would be critical to offering competitive
pricing.
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It is not enough if banks develop more products. Banks need to work towards promoting product
awareness. Our research shows that in most cases customers were not aware of the products
launched by banks.
While huge business opportunities are available in the trade segment, commercial banks
despite having more than 60 000 branches seem to have not done well in this areas as
compared to Cooperative banks ( and to some extent y Regional/local banks). Banks need to
devise appropriate strategies to tap business opportunity thrown by star products such as
housing loans, trade finance and car loans.
Banks, more particularly public sector banks, have to train people in marketing to tap the
emerging opportunities in retail banking. In the ultimate analysis, the winners in retail banking
would be those who focus on customer service and technology.
MARKETING TIPS
TIPS FOR MARKETING VARIOUS PRODUCTS
IMPORTANT POINTS TO REMEMBER
Master the four Cs of Selling namely
Know your customer
Know your competitor
Know your commodity (product)
Know your company (i.e. all about our Bank)
Market has become price sensitive more particularly in Housing loans, car loans etc.
Many competitors quote flat rates. Hence it is essential to highlight the effective rate,
EML etc to convince the customers as otherwise customers would consider the coupon
rate as too high due to poor understanding.
Highlight the hidden charges of competitors, if any. Competitors may claim No
processing charge but a fine print would indicate existence of administration charge or
documentation charge. Highlight the different nomenclatures used by competitors to
deflect customers understanding.
Always highlight our leadership, bran image and security of State Bank of India which
are our core strengths.
P SEGMENT
HOUSING LOANS:
Talk to the existing customers and find out whether they are interested in taking housing
loan.
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Have liaison with Builders, Brokers, Real Estate Agents, Registrars Offices etc. and try
to obtain list from Town Planning Depts,/Panchayats etc.
Explore possibilities for financing Group Housing Projects.
Takeover of loans from other Banks and financial institutions.
Look for tie-ups with institutions, Govt. Corporations, Public Sector/Large Reputed
Private Sector Undertaking for housing loans etc.
Give presentations in institutions situated in the vicinity.
Participate in road shows, exhibitions etc.
How to market a higher quantum of Housing Loan to a very good customer:
Example-
Let us assume a person of high creditworthiness approaches you for a housing loan of Rs. 5
Lacs to finance a part of project cost of Rs; 15 lacs. How do you persuade him to take a higher
amount of loan?
This is how you may convince him:
Loan availed = Rs. 1000000/-
Approx. Interest @9%p.a. = Rs. 90000/-
Assuming that hi is in 30% UT bracket, by availing this loan he is eligible for the following
concessions:
The entire interest is reduced from his total income to arrive at the taxable income. This
implies that he saves Income Tax of 30% of Rs. 90000/- i.e. Rs 27000/-
For Principal repayment, under section 88, he can claim rebate to the extent of 15%. So
the tax saved is Rs. 3000/-
The total IT saved is thus is Rs. 30000/- and so his actual out go is Rs. 90000-Rs
30000=Rs.60000/-
Consequently his actual interest rate works out to only 6%.
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Now you may be able to convince you customers to avail higher loan amount from us and invest
his excess funds which can earn better income. Suggest our own deposit schemes (for liquidity)
SBI MF, SBI LIFE etc.
Highlight additional features like refunding the processing charges, 50% concession on
exchange/commission on remittances/commission on remittances/collections to borrowers and
their spouse, free ATM card, free SBI card and add on card, group insurance scheme, Short
Term Housing Loans, tailor-made Housing Loans, provision to defer Interest payment during
moratorium period, provision for 10% of the project cost subject to maximum of Rs. 3 lacs for
purchase of consumer durables to be built in the loan amount etc.
CAR LOANS:
Liaison with the car dealers, service stations, major workshops etc for vehicle loans. Tie
up with renowned Car Dealers for car loans.
Contacting professionals, employees of MNCs, State government & Central government
employees, reputed institutions, corporate clients etc will help us to market all types of P
segment products.
Road shows can be organized along with the dealers for car loans and SCOOM.
Highlight the advantages of our Banks car loan scheme such as longer repayment, on
road cost (i.e. including Road Tax and Insurance), also inform customers about the
reimbursement loan for cars which are not more than 2 years old. Highlight the optional
group insurance scheme available for the car loans.
EDUCATIONAL LOANS:
For Educational Loans contract the institutions, universities, Indian offices of foreign
universities to get the details about the students newly enrolled.
Set up stalls near the admission centres, counselling/vocational guidance centres for
targeting the students at the appropriate time. You may also organize career counselling
for students during the holiday time.
RENT PLUS:
Contact owners of our own rented buildings.
Contact owners of buildings which house other banks, MNCs, reputed
institutions/government agencies, Property Tax and developmental cess collecting Govt.
Agencies etc. Create awareness about the scheme through wider publicity or making
presentations before professional or trade associations where prominent businessmen
and professionals would assemble.
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GOLD LOANS:
Can be given to SIB and C&l customers also apart from PER & AGRI segments.
Exhibit banners at prominent places with the actual amount of interest payable per Rs
100 per month.
Notices can be distributed through newspapers.
Slides can be shown in local cinema theatres
Scrolling in cable TVs.
For marketing various P segment products and especially loans against shares and
debentures we may contact the Chartered accountants, Financial Consultants, Stock
brokers/Depositories etc.
Bank has introduced a lot of new products for specific targeted groups like TEACHERS
PLUS, JUSTICE PLUS and POLICE PLUS etc. As it would be very difficult to contact
them individually, we may give presentations about various schemes in institutions like
schools, colleges, court and police establishments.
For marketing Pravasi Plus find out the NRI Depositors from your area who have
invested in the scheme from our NRI branch and contact their relatives.
C&l SEGMENT
Maintain liaison with Chamber of Commerce and Industry, Industrial Development
Corporations, Dept of Industries and Commerce of State govt., District Industries
Centres, Manufacturers Association, Export Promotion Councils, CMIE Data, Prowess,
Internet Websites, E-groups, financial magazines, newspapers etc.
We can obtain financial information of select large corporates from SEBI/ Stock
Exchanges, CMIE publications in case of existing units not banking with us. After
studying the financials, a decision can be taken whether to consider the take
over/participation in the existing financial arrangement.
Market Survey of the Industrial Estates to explore the possibilities of take over/new
advances.
For attracting trade advances, it is desirable to conduct a survey of the traders in the
area, identify their needs and draw up a suitable action plan.
Establishing good relationship with traders/manufacturers/exporters forums/
associations.
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Business Leads can also be obtained from our existing customers.
We can organize seminar/workshop on Financial Management and invite general public
to attend the same. This would provide the platform to market our products. We may
organize Exporters meet and such other meets to gain visibility and encourage
enquiries for business requirements.
Exploring the possibilities of marketing our P segment products to the employees of
Corporate customers who are banking with our Advance intensive branches.
SIB SEGMENT
Apply similar strategies as detailed in the C&l segment.
Establishing contacts with vehicle dealers, major workshops/service stations.
We can get business leads from Chartered Accountants, Financial Consultants.
We may give presentations to groups of professionals which can be arranged through
their associations/clubs.
To get a wider coverage under Doctor Plus, mailing campaign can be undertaken after
obtaining a list of Doctors from Indian Medical/Dental Association, Local Chapters.
Presentations can also be given at the hospitals during the doctors meets.
FOR MARKETING THE PRODUCTS LIKE FLEX1LOANS, SME CREDIT PLUS ETC. The
details of these schemes should be explained to our own customers whose credit ratings are
SB-4 and above.
For marketing Paryatan Plus, liaison should be established with Tourism Dept, Hoteliers
Associations, Tourist operators, Vehicle dealers etc.
AGRICULTURE SEGMENT
Farmers meets may be organized.
List of farmers with their pattern of land holding may be obtained from the village offices,
Farmers service societies, Agri. Producers associations, Agriculture Depts. etc.
Business leads can also be obtained from dealers of tractors, agricultural implements
etc. Opinion makers in the village may be contacted. Workshop on drip irrigation, new
agricultural practices etc may be organized to gain the goodwill of the agricultural
community.
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MISCELLANEOUS BUSINESS
To ensure that all the miscellaneous business of the existing customers is routed
wholly/proportionately through us.
We must also try and market our technology products to the customers of other banks
who do not enjoy those facilities with their present bankers.
Government business is one of the major sources of Misc.
Income and it is absolutely essential to maintain liaison with Govt. Depts. Strategies like
collecting the income tax challans along with the cheques to be credited from the offices
of high value customers and delivering the receipts at their doorsteps may be adopted.
Opening of PPF Accounts by highlighting the offer of free SBI card for account Holders.
Stamp duty collection at Branches - Public Image is enhanced (specific to some circles)
A continuous liaison with the corporate clients and briefing them about latest trends in
forex/international markets, trying to market our emerging IB products and advising them
about the fluctuations in the exchange rates/ currencies on day to day basis.
CROSS SELLING OF PRODUCTS
The branches must familiarize with the products of SBI Mutual Funds, SBI Life, SBI
Cards etc and try and offer range of products to the customers. Cross selling also means
offering own other products.
Devising techniques which will make marketing of some products easier and more
meaningful.
E.g. Let us consider the Optional Group Insurance Scheme for housing loan borrowers.
Let us assume that a borrower has availed a loan of Rs. 6000007- from us. To get
coverage under the scheme, he will have to pay a one time premium depending on his
age, quantum of loan and repayment period. In this present case, let us assume that
premium payable works out to Rs. 25000/- At this point the borrower may feel that it will
be too much of a burden for him. The marketing point at this stage is that the premium
amount can be added to the loan amount over and above the eligibility. Thus the loan
amount will be Rs. 625000/- It can also be inferred that he will only have to pay an
additional EMI of Rs.225/- If you further consider the income tax benefits that accrues to
him on that additional part of housing loan, the actual outgo from his pocket will be less
than Rs.200/-p.m. Now convince the customer as to how by paying a small premium he
would be able to cover a liability of Rs. 6.25 lakhs and take care of the interest of his/her
family members. In case of any eventuality, no liability on account of this housing loan
devolves on his family.
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25. EIGHTEEN SKILLS FOR MANAGERS
According to American Management Association (AMA) no fewer than 18 skills or competencies
make a good manager. These were arrived at on the basis of interviews conducted by the AMA
with over 2000 managers, half of them rated as superior and the remaining as average. The
skills fall into 4 categories.
ENTREPRENEURIAL
Efficiency orientation - Interest in doing things better.
Pro-activity - Proactivity to initiate action.
INTELLECTUAL
Logical thought - Placing events in a casual sequence.
Conceptualisation - Assembling information into a new and meaningful form.
Diagnostic use of concepts - Fitting situations or decisions into known theories
or models.
SOCIO-EMOTIONAL
Self-Control - Placing organisational needs above personal
reactions.
Spontaneity - Expressing oneself freely and easily.
Perceptual Objectivity - Ability to be objective about two sides of an argument.
Accurate self-assessment - Awareness of personal strengths and weaknesses.
Stamina and adaptability - Ability to work long hours and to be flexible in
adapting to changes. ( Perseverance)
INTERPERSONAL
Self-Confidence - Belief in oneself and ones goals.
Developing others - Ability to perform roles of coach, counsellor or helper.
Concern with impact - A need or desire for actions that will influence others.
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( foresee consequence of our actions)
Use of unilateral power - Ability to gain compliance of others.
Use of socialized power - Ability to influence others to build alliance,
networks or teams.
Use of oral communication - Ability to make effective verbal presentation/ listening
Positive regard - Strong belief in other people. ( respect / trust)
Managing group process - Ability to stimulate team work. Using hierarchy for
administration but practising equality for contribution.
( Motivation)
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26. TIME MANAGEMENT
Many of us claim our days are never wasted. "I'm very organised" we say, "I know where I
am going and what I'm going to do". If you truly feel that way then you are in the minority.
Most people become frustrated with a day that is unproductive. We would all like to get more
done in a day.
The idea of time management has been in existence for more than 100 years. Unfortunately
the term "Time management" creates a false impression of what a person is able to do. Time
can't be managed, time is uncontrollable we can only manage ourselves and our use of time.
Time management is actually self-management. Its interesting that the skills we need to
manage others are the same skills we need to manage ourselves: the ability to plan, delegate,
organise, direct and control
There are common time wasters, which need to be identified. In order for a time
management process to work it is important to know what aspects of our personal
management need to be improved. Below you will find some of the most frequent reasons for
reducing effectiveness in the workplace. Tick the ones which are causing to be the major
obstacles to your own time management. These we refer to as your "Time Stealers".
Identifying your time stealers
Interruptions - telephone
Interruptions - personal visitors
Meetings
Tasks you should have delegated
Procrastination and indecision
Acting with incomplete information
Dealing with team members
Crisis management (fire fighting)
Unclear communication
Inadequate technical knowledge
Unclear objectives and priorities
Lack of planning
Stress and fatigue
Inability to say "No"
Desk management and personal disorganisation
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Fortunately there are strategies you can use to manage your time, be more in control and
reduce stress, but you can analyse your time and see how you may be both the cause and the
solution to your time challenges.
Below, we examine time management issues in more detail
1. Shifting priorities and crisis management.
Management guru Peter Drucker says that "crisis management is actually the form of
management preferred by most managers" The irony is that actions taken prior to the crisis
could have prevented the fire in the first place.
2. The telephone.
Have you ever had one of those days when you thought your true calling was in
Telemarketing. The telephone-our greatest communication tool can be our biggest enemy to
effectiveness if you don't know how to control its hold over you.
3.Lack of priorities/objectives.
This probably the biggest/ most important time waster. It affects all we do both professionally
and personally. Those who accomplish the most in a day know exactly what they want to
accomplish. Unfortunately too many of us think that goals and objectives are yearly things and
not daily considerations. This results in too much time spent on the minor things and not on
the things, which are important to our work/lives
4. Attempting too much.
Many people today feel that they have to accomplish everything yesterday and don't give
themselves enough time to do things properly. This leads only to half finished projects and no
feeling of achievement.
5. Drop in visitors.
The five deadliest words that rob your time are "Have you got a minute". Everyone's the
culprit-colleagues., the boss, your peers. Knowing how to deal with interruptions is one of the
best skills you can learn .
6. Ineffective delegation.
Good delegation is considered a key skill in both managers and leaders. The best managers
have an ability to delegate work to staff and ensure it is done correctly. This is probably the
best way of building a teams moral and reducing your workload at the same time. The
general rule is -this; if one of your staff can do it 80% as well as you can, then delegate it.
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7. The cluttered desk.
When you have finished reading this article look at your desk. If you can see less than 80% of it
then you are probably suffering from 'desk stress'. The most effective people work from clear
desks.
8.Procrastination.
The biggest thief of time; not decision making but decision avoidance. By reducing the amount
of procrastinating you do you can substantially increase the amount of active time available to
you.
9. The inability to say "no!
The general rule is; if people can dump their work or problems on to your shoulders they will
do it . Some of the most stressed people around lack the skill to 'just say no' for fear of
upsetting people.
Meetings.
Studies have shown that the average manager spends about 17 hours a week in meetings
and about 6 hours in the planning time and untold hours in the follow up. I recently spoke to
an executive who has had in the last 3 months 250 meetings It is widely acknowledged that
about as much of a third of the time spent in meetings is wasted due to poor meeting
management and lack of planning If you remember your goal is to increase your self
management, these are the best ways to achieve this;
There are many ways we can manage our time. We have listed some strategies you can use
to manage your time.
1. Always define your objectives as clearly as possible.
Do you find you are not doing what you want because your goals have not been set. One of
the factors, which mark out successful people, is their ability to work out what they want to
achieve and have written goals, which they can review them constantly. Your long term goals
should impact on your daily activities and be included on your "to do" list. Without a goal or
objective people tend to just drift personally and professionally
2. Analyse your use of time.
Are you spending enough time on the projects, which although may not be urgent now are
the things you need to do to develop yourself or your career. If you are constantly asking
yourself "What is the most important use of my time, right now?" it will help you to focus on
'important tasks' and stop reacting to tasks which seem urgent (or pleasant to do) but carry
no importance towards your goals.
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3. Have a plan.
How can you achieve your goals without a plan. Most people know what they want but have
no plan to achieve it except by sheer hard work. Your yearly plan should be reviewed daily
and reset as your achievements are met. Successful people make lists constantly. It enables
them to stay on top of priorities and enable them to remain flexible to changing priorities. This
should be done for both personal and business goals.
4. Action plan analysis.
Problems will always occur, the value of a good plan is to identify them early and seek out
solutions. Good time management enables you to measure the progress towards your goals
because "What you can measure, you can control". Always try to be proactive.
Time management (or self management) is not a hard subject to understand, but unless you
are committed to build time management techniques into your daily routine you'll only achieve
partial (or no) results and then make comments such as "I tried time management once and it
doesn't work for me". The lesson to learn is that the more time we spend planning our time
and activities the more time we will have for those activities. By setting goals and eliminating
time wasters and doing this everyday you may find you will have extra time in the week to
spend on those people and activities most important to you.
The Eleven Biggest Time Management Lies !!
In the world of Time Management there are things said to us that we Accept as truth and we act
accordingly. The problem is sometimes they Are not truths. They are lies and as we believe
them, they waste our Time.
Those who speak these lies to us are not bad people at all because You and I are among them.
We all speak these untruths to one another from time to time. So let's not wish harm and doom
to the liars. Let's avoid the time traps their lying may cause us.
Here are the eleven biggest lies to shield yourself from.
1. "This will just take a minute." Has anyone grabbed you with that line? Does it ever "just take a
minute"? Rarely. What typically "just takes a minute", generally consumes several minutes and
more. Next time, when someone asks for your time and assures you," This will just take a
minute", tell them, "You're lying. You may not realize you're lying, but you are. I'll give you five
minutes. You may begin now."
2. "I need this as soon as possible." No you don't. That's a lie too. you need it by a certain date
and time because you are going to do something with what I provide for you. And if you're not
going to do anything with what I provide for you, why am I doing it for you in the first place?
Don't lie to me. Tell me when I have to get it to you. Be specific. You and I probably have two
difference dates in mind when we think in terms of "as soon as possible".
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3. "I want this now." I doubt it. In this 24/7/365 world, everyone is under a sense of artificial
pressure to get it done "now" or worse," Yesterday". Things are generally not that urgent. Don't
get caught up in someone else's urgent trivialities. Call the liar to task. "I'm not sure I can get
that done now. What if I got it to you one week from today?" Use an outside deadline to give
yourself ample time to prevent getting into crisis management. Oh, and if they reject that
alternative, try three better dates for you. Why? Because, they may keep lying to you.
4. "It's not about the money." When it's not about the money, it's about the money.
5. "This is the best (investment, business opportunity, book, movie, restaurant, boss, job, etc.)
you'll ever find." Not true. There's always something better. The best is yet to come.
6. "I can get this done in an hour." It's a fib. Ever notice how it almost always takes twice as long
to get something done as what you thought it would? That's because few of us have a very
accurate internal clock to estimate the time required to complete most tasks.
7. "He's a' late' person." Most people who are "late" have a consistency about their behavior. My
friend Dwayne is 20 minutes late all the time. If we need to meet for lunch tomorrow, it will take
him 24 hours and twenty minutes to get there. Dwayne is not "late". He's "On-time; 20 minutes
later".
8."No Cost." You don't get "nothing for nothing". Everything has a cost. It may not cost you your
money but more often it will be your time and more of it than what you are getting in return for
"no cost".
9. "I'll prove you're wrong if it's the last thing I do." And it may well be. No one wants to be
proven wrong. Everyone likes to be caught doing things "right". Most, however, don't mind being
shown how to do things better.
10. "By the time I show him how to do it I could just as quickly have done it myself." If it's a one-
time proposition this may be true. It doesn't make a lot of sense to spend an hour to show
someone how to do a task that takes only 10 minutes.
But if it's a repetitive task, it's a lie. If that one hour investment will save you 10 minutes every
day, then in about a week you have your investment back and now you have a dividend of 10
extra minutes a day. What if you do that six different times? You get an extra hour in your day
and 365 hours over the next year.
11. "This is going to be really hard." Not true. Going through whatever you have to go through is
almost never as difficult as you imagined It to be. My high school principal, taught me that 95%
of what we fear coming at us will never hit us. It will ditch itself before it ever reaches us. And as
to the remaining 5%, tap your inner strengths to deal with it.
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Dos of Time Management
1) Draw out clear KPAs, time bound objectives and detailed plans for your job.
2) Plan your day ahead. List out the most important things to be done the next day in order
of importance.
3) Do delegate matters which you do not have to decide yourself. Insist on exercise of
delegated authority.
4) Be predictable. Know your staff and let your staff know your mind.
5) Record occasionally for some stretch of time how you spend your time and analyse
critically your time management.
6) Do accept that whatever your superior wants is urgent and important (till you are able to
convince him that it is not really so). But as a superior, decide priorities with reference to
organisational needs.
7) Do set aside fixed hours in a day when your staff can meet you or you will call them,
other than in any emergency.
8) Do set aside some time a week for innovative thinking and long range planning
regarding your area of responsibility, so as to anticipate problems and heighten your
contribution to the organisation.
9) Set aside some time, preferably towards the end of the day for trivial administrative
details.
10) Insist on completed staff work.
11) Finish the task you have taken up before getting to another.
12) Develop the habit of single handling i.e., making a decision or disposing of a paper at the
first opportunity itself.
13) Manage your time as you manage your money.
14) Do find time to relax, to draw back and look at what you are / have been doing (Review
time)
The trouble with service delivery is that it cant be checked in advance, like a piece of crystal, or
a luxury car. We cant sample it, package it, systemize it or automate service. Its only produced
at the moment of consumption, our win-or-lose moment. That service delivery is often
performed by the most junior of our employees, often least motivated.
-- John Sharpe
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27. BUSINESS ETIQUETTE
Etiquette is not a term most business people, or anyone for that matter, are comfortable
with. It is an important word in today's business world.
Let's define what "Etiquette" is. Etiquette, business or social, is the art of taking the unfamiliar
and making it familiar to many. That's what the "rules" (they are really guidelines rather than
rules) of etiquette are. Nothing more, nothing less.
For example, job descriptions are a form of Business Etiquette. Signs within the bank, such
as the signs on each counter, are business etiquette. Easy to find stationery, directions of layout
are a form of business etiquette.
Whenever a business is offering something -- an idea, service or product that is new or
relatively unknown, to a potential customer, the "Rule of Business Etiquette" comes into play.
And it is not just for a business to apply these guidelines. Anybody, when they are asking
someone else to accept something new should also be using Rule #1 of Business Etiquette.
E.g. change over from one technology platform to another should be informed in advance by
way of a letter or thru display boards at the premises.
Business Attire Do's & Don'ts
Looking the part promises both personal and financial success. Quality garments wear longer,
fit better, and therefore, save money in the long run. Above all, if your clothing projects a
professional image, others will respond to you in kind. Here are a few suggestions for
maintaining the proper image:
Men
Do wear your suit jacket when you conduct business outside your office. Your authority
travels with you. Consider dark navy and gray
Do keep hair and nails clean and neat.
Do wear appropriate jewelry.
Do wear shirts that are nicely starched and not taken right out of the dryer. White shirts
should be white, not yellowish.
Shirts should be crisp and colorful but not neon-looking!
Long-sleeved shirts are considered dressier than short-sleeved and are appropriate
even in summer
Do co-coordinate ties with the basic colours of the shirt. Do not wear flashy colours
which clash with the suit or shirt. Be conservative.
Do not overpower your appearance with heavy cologne!
Do not wear short-sleeved shirts under suit coats. Showing a clean cuff is a must.
Do Not wear ankle socks or light colored socks with a dark suit. Socks should not hang
down.
Details: Everything should be clean, well-pressed, and not show wear. Even the nicest
khakis after 100 washings may not be your best choice. Carefully inspect new clothes for
tags, and all clothes for loose threads, etc. (as with interview attire).
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Use common sense. If you show up at an event and realize you are not as well dressed
as you should be, make a quick, pleasant apology, then make a good impression with
your interpersonal skills and intelligent questions.
Shoes /Belt: Leather belt and leather shoes (please, no athletic shoes)
Shirts:. Choosing white or light blue solid, or conservative stripes is your safest bet.
Polo shirts, (tucked in, of course), are acceptable in more casual situations.
Socks: Do wear dark socks, mid-calf length so no skin is visible when you sit down.
Shoes: Leather shoes should be worn. No sandals, athletic shoes or hiking boots.
Facial Hair: Just as with interviews: Facial hair, if worn, should be well groomed.
Jewellery: Wear a conservative watch. If you choose to wear other jewellery, be
conservative. Removing earrings is always a safe bet.
Women
Do wear comfortable shoes to complement your outfit.
Do wear natural looking makeup.
Do wear appropriate jewellery (no bangles or dangly earrings).
Do keep hair and nails clean and neat.
Do Not overpower your appearance with heavy perfume!
Do Not wear elaborate hairstyles.
Do Not wear jeans or casual slacks.
Do Not wear trendy fashions with built-in obsolescence.
Remember! Regardless of the attire, you should want to present yourself in the most
conservative and professional manner.
Specifics for Women's Business Casual
Women: Should consider wearing saris in silks, crepes or cotton plain or with attractive prints,
depending on the weather and the occasion. Larger pieces of jewelry are acceptable for nice
casual. Flats or small heels are appropriate.
Casual: Appropriate attire for women might be a salwar kurta and a chunni. The fabric choice
would be again as for saris silk, crepe or cotton. In both instances ensuring that the colours are
not flashy having lot of zariwork.
Jewellery/Accessories: Wear a conservative watch. Jewellery and scarf styles come
and go. Keep your choices simple and conservative. Avoid extremes of style and colour.
Cosmetics: Avoid extremes of nail length and polish colour.
Shoes: Shoes should be leather or micro-fibber. Regardless of style, avoid extremes.
Make certain you can walk comfortably in your shoes.
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Purse/Bag: A tailored purse is best and one that hangs on your shoulder is often
advantageous as it frees your hands for greetings (hand shakes or namaste).
Telephone Etiquette
For most of us, the telephone is a vital source of communication. The use of cell phones and
instant conversation is commonplace in our life today. However, the way you conduct yourself
on telephone is an important aspect of etiquette.
These tips will show you how paying attention to detail may make a big difference in others
impressions of you both personally and professionally.
Identify Yourself
When calling someone, identify yourself after they've said hello?
Respect Others' Time
When Placing a call, after identifying yourself, ask, "Do you have a Minute?" or "Is this a
good time to reach you?" before explaining the reason for your call?
Ask Rather Than Just Place Someone on Hold
After placing someone on hold and returning to the line, say, "Thanks for waiting" rather
than "I'm back."
When screening calls, do you ask, "Who's calling, please?" rather than "Who is this?"
When calling a professional office for any reason, always identify yourself and explain the
reason for your call. Example: Hello, this is Tom Cruise and Im calling in response to the
newspaper ad for an actor.
Call Waiting
Call waiting is only as good as the person using it. Rule #1: Just because you have call waiting,
it is up to you whether to use itit is a judgment call. Your decision should be based on who
you are speaking to, the intensity of the conversation, and your relationship to the person. If you
find it necessary to place someone on hold -- Due to call waiting -- Always ask
permission!
Answering/Voice Mail Machines
When reaching an answering machine, if you had sufficient reason for callingleave a
message. Sometimes this helps the other person know how to respondwhether to expect
another call from you or if they should attempt to return your call. Hi, its Rao, Bye! doesnt say
anything, does it? When leaving a message, what and how you say it is as important as if
you were speaking to the person directly. Keep the tone of your voice pleasant and upbeat!
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Use Good Speech Habits
Phrases to use: One moment please, Yes, All right, Shes not available now, Good-bye
Phrases Not To Use: Hang on, Yeah, Okey-Doke, Uh, dont know where he is.
Remember: You only get ONE chance to make a first impression!
Maintaining quality professional relationships in our electronic age can be challenging. With
greater dependency on various technologies cell phones, voice-mail, e-mail, etc. comes
more potential problem areas.
More and more of your clients and prospects rely on their computers, cell phones and aspects
of the Internet to communicate and do business. Internet -- is the fastest-growing component of
all emerging technologies.
You need to know how to effectively use all communications and business technologies in order
to survive and thrive in the 21st Century and beyond.
Business etiquette savvy now transcends the basics of everyday manners. There are many
specific areas of workplace-related technology that professionals need to master, including:
voice mail, cell phones, & e-mail.
If you get someones voice mail and want to leave a message, remember:
Never say your message is urgent unless it really is.
Be specific and concise when leaving a voice-mail message; dont ramble.
Leave your name and number, slowly, at the beginning and end of your message.
As with other communication technology, confidential or sensitive information should not
be delivered using this medium. You dont know who may have access to the persons
voice mail.
If you are relying on voice mail to get your calls because youre busy or out of the office:
Change your outgoing message regularly so people know when you are available. Be as
specific as possible. Im out of the office today, but will return on Wednesday, March 3. I
will be checking messages periodically.
Keep your outgoing message brief.
If possible, leave an alternative name for the person to contact especially if you are on
the road for a long time, on vacation, or not checking your messages from a remote site.
Dont use voice mail as a way of avoiding people if you are in.
Dont put voice mail on speaker phone when you are checking your messages, unless
you are alone in a private office -- not a cubicle.
There are times when voice mail may not be the best way to convey information. Before leaving
a message, ask yourself if this information should be given in person or in writing.
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Cell Phone Courtesies
Although they are a vital tool for the busy professional whos always on the road, cell phones
can be a nuisance, too.
Just like other modern technologies that make our lives more convenient, there are certain rules
to follow concerning the use of cell phones:
Do not use a cell phone in public places where it will disturb others (meetings, elevators,
restaurants, theaters, buses, trains, planes, etc.), or where they can overhear your
private information.
Remember that cell phones arent always private other cell phone users may be able
to listen.
Its bad etiquette to call other people on their cell phones without permission they are
charged for use.
Don'ts
Never take a personal mobile call during a business meeting. This includes interviews and
meetings with co-workers or subordinates.
Maintain at least a 10-foot zone from anyone while talking.
Never talk in elevators, libraries, museums, restaurants, cemeteries, theaters, dentist or doctor
waiting rooms, places of worship, auditoriums or other enclosed public spaces, such as hospital
emergency rooms or buses. And don't have any emotional conversations in public ever.
Don't use loud and annoying ring tones that destroy concentration and eardrums.
Never "multi-task" by making calls while shopping, banking, waiting in line or conducting other
personal business.
The last point to remember about using cell phones is safety-related. Cell phone use while in a
car can be dangerous to you and others.
Dos
Keep all cellular conversations brief and to the point.
Use an earpiece in high-traffic or noisy locations. That lets you hear the amplification, or how
loud you sound at the other end, so you can modulate your voice.
Tell callers when you're talking on a mobile, so they can anticipate distractions or
disconnections.
E-Mail Etiquette
Electronic mail is quickly becoming the communication technology of choice for companies. The
print memo is becoming a relic of offices past. Whether its interoffice e-mail or outgoing e-mail,
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companies can benefit by reduced phone bills and faster resolution of issues. Many times an e-
mail can eliminate the need for a meeting.
1. Watch your words! Be concise and to the point.
2. Dont flame people. If you use antagonistic words or critical comments, known as
flames in cyber speak, it can hurt people and cause awkward situations. E-mail is not
the place to make negative comments.
3. Remember, few people like spam. When sending unsolicited e-mails, make sure
that there is value to the recipient. If you dont, they may very well consider it spam
(Internet lingo for junk mail) and delete it unread.
4. Nothing is private. Never forget that there is no such thing as a private e-mail. Even
when a message is deleted, many software programs and on-line services can access
messages on the hard drive. Before you click on send, consider what may happen if
the message is read by someone else -- like the boss.
5. Keep attachments to a minimum. The larger the attached document, the longer it
takes to download and the more memory space it fills on a recipients computer.
Consider faxing lengthy documents that might otherwise be e-mailed.
6. Or Not To CC? Just like a regular memo, you may want to send copies of your e-mail to
others, but most likely, not everyone needs or wants it.
7. Never assume anything. While you may be an Internet pro, and familiar with the lingo
and various emoticons like the popular :-) to represent a smiley face, dont assume the
recipient is.
8. Check spelling and punctuation. Most e-mail software will locate misspelled words;
some also check for grammar. Use these features, if available, and take a minute before
you click send to review the message.
9. Keep e-mail messages brief. A good policy is to keep your message visible in the
window that opens when you click on send new message.
10. Always have a subject line. Most professionals get multiple e-mail messages in one
day. To help categorize your message for viewing, always use a subject line. If your e-
mail requires immediate attention, your subject line can convey this urgency.
11. E-mails are just like voice mail and other messages. As with any other type of
messaging correspondence, if a client, prospect or colleague e-mails you, respond
within 24 hours.
12. Program your e-mail account. If you arent checking messages for a long period of
time due to vacation, family-related emergency or technology-related/Internet access
problems, let people know.
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28. EMOTIONAL INTELLIGENCE (El)
Emotion is how we feel about something. These feelings are directed at someone or something,
Intelligence is our overall capacity to think rationally, act purposefully and deal effectively with
the environment. It is a process of 4Ds: Detecting, Differentiating, Distinguishing and
Disseminating.
For a long time, emotion and intelligence were seen as adversaries, with emotion viewed as an
intrinsically irrational and disruptive force. Freud and Jung made contributions to the ongoing
debate. Freud continued the excessive valuation of reason and perpetuated the idea that
emotion must subjugate to rational thought. Jung, on the other hand saw that thought and
feelings both had a rational basis. His contribution is important for two reasons: the elevation of
feeling to be at par with thinking and the recognition of the need for integration. However Daniel
Goleman, considered the father of Emotional Intelligence, conclusively ended the debate by
saying- The old paradigm held an ideal of reason freed from the pull of emotions. The new
paradigm urges us to harmonise head and heart.
WHAT IS El
Reasoning, which takes emotions into account, is emotional intelligence. It is the ability to
generate, access and understand emotions so as to assist thought and to reflectively manage
emotions to promote emotional and intellectual growth. Goleman defines El as the capacity for
recognizing our own feelings and those of others, for motivating ourselves, and for managing
emotions well in ourselves and in our relationships.
It was Peter Salovey, a Yale psychologist who coined the term El back in 1990. However El
came to centre stage of the world by Daniel Goleman in 1996 by his book El-why it can matter
more than IQ, followed by Working with El in 1998. The core proposition put forward by him is
that the combination of IQ and EQ that together explain those personal qualities, which
contributes to success and leadership in different walks of life.
El in the context of work life has five components. While self-awareness, self-regulation and
motivation are personal competencies (how we manage us); the other two- empathy and social
skills are social competencies (how we handle relationships). Both the competencies are
developed from a combination, of all the five factors.
1. Self Awareness- Knowing our internal states, resources and intuitions.
Emotional Awareness- recognising own emotions and their impact on self, others and on
the job, ability to step back and observe self.
Self-confidence- strong sense of self worth, express own belief, values, thoughts.
2. Self Regulation- Managing our internal states, impulses and resources.
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Self Control- control or redirect disruptive impulses and moods, propensity to suspend
judgement, to think before act-TACT.
Trustworthiness- maintaining standards of honesty and integrity.
Adaptability- flexibility to role with change.
Emotional Independence-ability to work autonomously.
3. Motivation- It is basically a deeply embedded desire to achieve for the sake of achievement,
a passion to pursue goals with persistence.
Self Actualisation- striving for standards of excellence,
Contentment- happy within, positive self-esteem, confidence.
Initiative and Commitment- readiness to act on opportunities.
Optimism-persistence in pursuing goals despite obstacles and setbacks.
4. Empathy- Developed early in childhood, it is the ability to appreciate others needs and
concerns.
Understanding Others- sensitivity to others feelings and perspectives and taking active
interest in their concerns
Developing Others- sensing bolstering others development needs
Leveraging Diversity-cultivating opportunities through diverse people.
Service Orientation-anticipating, recognising, meeting customer needs
Political awareness- Reading emotional currents and power relationships.
5. Social Skills- This skill is the outcome of all other dimensions of El, discussed before. When
one can understand ones emotions, regulate them, and empathise with others, one can
manage relationships with others. Social skills mean proficiency in managing relationship and
building networks and rapport and adeptness at inducing desirable responses in others.
Influence- wielding effective tactics for persuasion.
Social Responsibility- following social norms, values, ethics.
Leadership- inspiring and influencing individuals and groups.
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Team capability-creating group synergy in pursuing collective goals.
DEALING WITH EMOTIONS -
Emotions are natural and innate. A saint or a sinner both will have emotions. Difference is in
how we manage emotions. People usually handle in four ways. By Competing- tit for tat; By
Avoiding-running away from people and situations; By Rerouting- taking out on someone else;
and By Suppressing- Like a hot pressure cooker. But there are better ways.
- The first thing is to acknowledge that there are two ways of looking at things-the rational and
emotional. Secondly, neither is superior to other. Thirdly, if we are rationally oriented, let us try
to feel those little fluttering of emotion that we normally overlook, try to still the chatter of words
and be receptive to what the emotional mind and body is telling us. If we are emotionally
oriented, let us try to think logically about what is going on. We can work out the way we are
feeling, the way we do. Thinking about feeling doesnt destroy them. In fact it deepens the range
and profundity of feelings.
- Another way is to work with feelings themselves. They make us feel so much that we have to
start thinking. Then we can begin to recognise that feeling and thinking are interactive systems,
each feeding the other. Working with emotions reveals the deepest level of our thoughts and
offer us to revise assumptions that are no longer valid or useful. Bringing them together offers
new avenues of hope.
- We go through a learning cycle when we experience an emotion. Emotion is triggered by an
event, which may be highly dramatic, or so trivial that it is hardly noticed. The response could be
rage, grief, guilt, depression, or love, joy, etc. Whatever the emotional response, it gives us the
possibility of looking at life in a new way and examining some of our assumptions, values and
life and beliefs. When we do this, we may modify some of the thinking that led us to this
emotional state. This can then lead to fresh attitudes and possibly new behaviour. If we learn
the lesson emotion may be showing us, we can jump off cycle. If we dont, it tends to repeat as
a negative loop. One way to do this is as under:
List some negative feelings you regularly experience and then complete the sentences-
When I am feeling ..( negative - say angry ...), I can .............
When I am feeling (as above), I need more ......
When I am feeling (as above ), .... what could help me feel better?
El, The need of the Day
- Growing IQ, but... Since 1918 when IQ was first mass-used to recruit to American army, the
average IQ score in USA has risen 24 points. Similar increase has been noticed throughout the
world. But there is a dangerous paradox in social life: people today are lonelier, less stable and
prone to worry, impulse and aggression. This underlines the need for emotional literacy for
parents who are the emotional tutors of their children.
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- Employer Expectations- A survey among USA employers reveals that more than half lack
motivation to keep learning. 4 out of 10 are not able to work in teams. Therefore, a new
yardstick based on El is being applied in choosing who will be hired, who will be let go and who
passed over and who promoted.
- EQ & Ledearship- Studies across the world has conclusively proved the seminal role of El in
leadership effectiveness. Mcclelland in late 1980 found in a multinational beverage company
that leaders with strengths in El competencies were far more effective than peers who lacked
that strength. A study by Hay Mcber of 3871 worldwide executives found six different leadership
styles each springing from different components of El. A study by UK Board, covering 1000
directors over 2 years concluded that leadership has to focus on El. Goleman said that El is
twice as important as IQ and technical skills. The higher up in the organisation one goes, the
more important El becomes.
- El & Competency- Based on review of literature, El was developed on competency terms.
Statistical analysis showed that IQ competencies required was 27%, while EQ (El is also
referred to as Emotional Quotient) accounted for one-third and finally MQ (Managerial Quotient-
supervision, delegation, developing staff, communication, result-orientation, initiative and
tenacity, etc) contributed 16%(21% are due to other factors, but this 79% is adequate for
leadership effectiveness.
- El & Financial Result- Divisions headed by managers with a critical mass of El capabilities,
outperformed earnings goals by 20%. Division leaders
without that under- performed by almost
by 20%. American Express managers increased business after EQ training by 18.1%
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29. TEN HABITS OF PEOPLE WITH HIGH EQ
1. Label their feelings rather labeling people- I feel hurt and bitter vs. You are an
insensitive person
2. Distinguish between thoughts and feelings- Thought is prose. Feeling is poetry. And epic
of life is incomplete without both.
3. Take responsibility for their feelings-(AR3-Accepting Responsibility Releases
Resentment) Take responsibility for emotions, stop believing others cause our feeling- I
am angry vs. you are making me angry.
4. Use feelings to take decisions- All actions are motivated by feelings. Emotions put us in
motion. We can always learn how we respond to an emotion. Feelings in control are
empowering.
5. Show respect for others feelings- How will you feel if I do this\dont?
6. Feel energised, not angry- not engulfed by emotion
7. Validate others feelings-mutual respect is the key to relationships.
8. Practice getting positive values from their negative emotions- Each negative feeling has
a positive value. Identify UENs (unmet emotional needs). Negative feelings are the result
of UEN.
9. Dont advise, command, control, criticize, and judge others- judging and avoiding others
is self-avoidance. Happiness is not something we get out of relationship, but something
we bring into one.
10. Avoid people who invalidate them or dont respect their feelings.
CAN El be developed? For ages, people have debated if leaders are born or made. So - is the
debate on El. Scientific inquiry suggests there is a genetic component of El. Those with more
enduring traits, formed early at birth, motivation, decisiveness, resilience and integrity cant be
developed, but nevertheless can be exploited for self-advancement. To the extent the elements
are not innate and so contain some elements of skill- sensitivity, influence, self-awareness- they
can be developed. Focusing on emotional capability requires courage on two levels-the courage
to look inside and the courage to accept honest feedback from others. The act of focusing
attention, in and of itself, will enable subtle shifts to occur, and overtime those shifts can result in
transformational change. One thing is certain-El increases with age. There is an old-fashioned
word for that: maturity.
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30. TRAINING INTERVENTIONS AT BRANCHES
a) In-Branch Training Forum
Introduced in the year 1983, this is essentially a core group created at the branch for the
purpose of removing knowledge gaps, and improving job skills. The Forum is headed by the
Branch Manager, and the members comprise 2 or 3 supervising staff, and some senior clerical
staff. These members observe the day-to-day functioning of the branch to identify the areas
where gaps exist in job knowledge of various staff members (particularly new recruits/ new
officers/newly promoted persons), as well as the procedural irregularities prevalent at the
branch.
b) Visiting Faculty Scheme
With the objective of supplementing the institutional training and catering to the desk-specific or
branch-specific training needs at our rural and semi-urban branches, visiting Faculty Scheme
was introduced in the Bank from 1st July 1984.
Method:
The Scheme of Visiting Faculty is an extension of the training sub-system to the job situation.
The following training areas will be covered by the Visiting Faculty:-
i) Knowledge/skills in the basic systems and procedures with special focus on effective
housekeeping, proper maintenance of books, records, etc.
ii) Rationale, method and systems of periodical book balancing.
iii) Priority sector advances - assessment, accounting, documentation and follow-up.
iv) Inter-Office transactions importance, rationale of entry and correct reconciliation.
v) Product awareness of P&SB Schemes.
It is not desirable to add more to these broad areas, as there is a danger of the focus getting
shifted besides of course, over burdening the visiting faculty.
Modalities
a) The Dy. General Manager and the Assistant General Manager will identify the branches,
along with their training needs in terms of specific area/ aspects of the branch
activity(ies). Thus, the Branch as a whole in case of small branches and a division in
case of medium and large branches will have to be the target audience. This is being
suggested with a view to inculcating a spirit of team work, inter-dependence and
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mutuality of roles. However, in medium and large branches, a flexible approach would
be desirable and in some of these branches focus may have to be on the category of
staff rather than branch as a whole.
b) These details will be discussed by the Visiting Faculty with the Chief Instructor of the
Training Centre whereafter the course design, methodology to be followed, duration of
the programme and tour plan of the Visiting Faculty and the area/aspects to be covered,
etc. will be finalised.
c) The concerned branches will be advised in writing by the controlling authority about the
schedule and dates, spelling out the objectives of the visit by the Visiting Faculty.
d) The sessions have to be held after office hours and the duration of the stay of the
Visiting Faculty will obviously depend upon the size of the branch and the areas and
aspects of branch activities to be covered.
e) After the sessions are over, the Visiting Faculty will obtain feedback from the employees
through a structured format and discuss it with the Chief Instructor on return along with
his own independent assessment.
f) The Chief Instructor will share with the Dy. General Manager/Assistant General Manager
the impact/further course of action, if any, in regard to a particular branch or a group of
branches. The Chief Instructor will send a brief report to the Assistant General Manager
(HRD) who in turn will put up a review to the Circle Management Committee at quarterly
intervals.
g) During the visit of members of Circle Management Committee to Training Centres, the
working of Visiting Faculty may be discussed with the entire faculty. The feedback
received at these sessions would assist the Circle Management Committee in
guiding/directing Dy. General Managers/ Regional Managers, if warranted, so that the
perspectives remain clear and positive on the part of all concerned.
Duration of Training at Branches
The duration of training programmes to be organised by the Visiting Faculty, can be 3 days at
the Rural/Semi-Urban branches, while at the Urban and other large centres it can be at best of 6
days duration.
The training sessions will be after the office hours for 11/2 - 2 hours each day and the
participation is voluntary. A reasonable expenditure for serving tea/ snacks during the training
days can be incurred. A decision on the ceiling of expenditure may be taken at the Circle level
taking into account prevalent costs in the area.
To obviate the difficulties experienced by the staff in staying beyond office hours for lectures,
depending upon the need and wherever feasible the lectures could commence 1 hour earlier to
the closing of working hours and the lecture need not extend beyond 11/2 hours.
135
c) On-site Programmes
The idea of holding such programmes was mooted in 1989, again with the same objective as
the Visiting Faculty Scheme, but mainly intended for identified critical branches (or critical
market segments) at Metropolitan/Urban centres. Over the years, the distinction between the
two has been understood mainly on two aspects.
i) VFS is intended for rural & semi-urban branches, while On-site programmes are for
Metro &Urban branches.
ii) In VFS there is scope to address the individual training needs of employees who may
need such support (on one-to-one basis); On-site programmes would be covering a
much larger number of employees at bigger branches.
In reality an On-site programme is far more powerful than this common perception of it. It is
essentially a team building effort, where an entire team undergoes the training as required in
their actual settings. While imparting technical knowledge and skills, it also takes care of the
processes that the team goes through while using this knowledge. As the entire team is involved
in the process, the team members learn to support and strengthen each other. They also learn
from each other, and this eventually helps to sustain the learning, when the trainers are no
longer on the scene.
--(0)--
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ANNEXURE - I
DISASTER RECOVERY PLAN (DRP) & BUSINESS CONTINUITY PLAN (BCP
FOR CBS BRANCHES FOR THE YEAR .
FORMAT
This exercise is to be conducted by the branch during the first week of January every year and
reviewed at quarterly intervals (April, July & October) and submitted to the respective
Controlling Authority.
BRANCH / SITE DETAILS:
1. Name of the branch / code number:
2. Date of migration to core banking system:
3. Date of last approved Disaster Recovery Plan:
4. Date of I&A / RBI/ System Audit and compliance status of DP&RP irregularities, if any:
1. _________________
2. _________________
3. _________________
5. Asset Inventory:
a. Specification of database servers installed at the branch:
1. ________________
2. ________________
3. ________________
4. ________________
5. ________________
b. Specification of any other server installed at the branch:
1. _______________
2. _______________
137
3. _______________
4. _______________
5. _______________
c. Details of Software installed at the branch including software licenses:
S.NO Software Details of license
1.
2.
3.
4.
5.
6.
d. Specification of terminals installed at the branch:
________________
________________
________________
________________
________________
________________
e. Number of Terminals:
S.NO Particulars Number
1. Number of Operator / SWO terminals
2. Number of Officer terminals
3. Number of terminals at the system room
4. Others
Total
138
f. Number of printers:
S.NO Particulars Specification Number
1. Passbook Printers
2. Draft Printers
3. Laser Printers
4. Inkjet Printers
5. Dot Matrix Printers
6. Line Printers
7. Other Printers
Total
g. Specification of UPS System / Batteries:
_______________________
_______________________
_______________________
_______________________
h. Specification of Generator System:
_______________________
_______________________
_______________________
_______________________
_______________________
i. Specification of Network installed at the branch:
_______________________
_______________________
_______________________
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j. Whether branch has ATM(s)? If yes, specification of ATM(s):
_______________________
_______________________
_______________________
k. Location and address of ATM (s): -
_____________________________
_____________________________
_____________________________
_____________________________
_____________________________
_____________________________
THREAT INVENTORY
6. Threat inventory: (The list is only indicative. Please identify and list out all the perceived
threats of your branch) Put a check mark in the field describing the applicable cause.
S.NO. Identify areas posing threats to the
branch towards disaster.
Potential causes which may lead to
disastrous interruption.
Premises prone to dust or other
contaminations.
Premises prone to noxious fumes.
Premises located in proximity to a center
storing / dealing with hazardous
materials.
Premises located in Flood Prone area.
Premises located in the region, which is
prone to heavy rains.
Premises located in Earthquake Prone
area.
Premises prone to Storm.
1. External environment surrounding the
branch premises.
Premises prone to Waves / Tsunami.
140
Premises prone to Fire.
Premises prone to frequent power
failures.
Area prone to riots, strikes, etc.,
Unsafe construction of the premises,
total or partial.
Perceived threat of theft, robbery,
vandalism etc.,
Dampening of roof.
Unsafe cabling for electrical installation.
Poor drainage facility.
Unkempt stationery room.
Perceived fire threat.
Perceived power failure.
2. Internal or immediate environment within
the branch premises.
Server crash.
Minor problems with the Server.
Problems with Nodes.
Problems with Printers.
Generator failure.
UPS failure.
Connectivity problems.
3. System & Network failures
141
CONTROL MECHANISM EXISTING
7. Control Mechanism - Existing: (The list is only indicative. Please identify and list out all the
control mechanisms available at your branch)
Software Security and support provision:
o Whether backup media is stored onsite in a fire proof safe? (Yes/No)
o Arrangements for storing same day's backup media overnight outside the
Branch premises: (Yes / No)
o Backup media for daily / weekly / month-end / quarter-end / year-end stored at:
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Yes/No
1. Appropriate checks have been adopted for electronic access control of
unauthorized users in the network as well as in the software through password
protection of users.
2. Different users have been given appropriate rights.
3. Auto time out functionality is in force.
4. All data input are subject to Maker-Checker concept.
5. Appropriate monitoring system is adopted to ensure second level of checking of
VVR and other system generated reports / statements.
6. The Anti Virus software is update and run at stipulated periodic intervals.
7. Conversion or system audit has been carried out immediately after the branch
went live.
8. Staff members are aware of Off Line functionality and can serve the customers
142
during connectivity blackouts.
9. Whether emergency telephone / Mobile Nos., e.g., Controller, CDC-Belapur,
Service-Desk, ITSS Department-LHO, ZOCC, Branch Disaster Recovery Team
Members, Hardware Vendors, UPS Vendors, Fire Brigade, Security Officer,
Police Station, etc., for communicating during an emergency, have been
prominently displayed at branch premises?
10. Whether Admin Password is kept securely in a sealed cover and is not being
accessed without recording it in Admin Access Register?
11.
12.
13.
Checklist for Hardware:
Yes/No
1. Whether configuration of the hardware equipment matches with the ordered for
the branch by LHO?
2. Whether stand-by Generator set of required capacity has been provided at the
branch?
3. Whether network cable line has been kept separated from the electrical cable?
4. Whether line printer has been placed separately but adjacent to system room to
avoid paper dust out of the printer?
5. Whether hardware equipments have been insured for full value through the
respective Controller / as per existing arrangement prevalent in Associate Banks?
6. Whether communication lines between the branch and CDC as well as FPLB
(Focal Point Link Branch) are working properly?
7. Whether the leased lines for PSTN/VSAT for dedicated links between branch and
CBP are in order and whether payment of the bills for the telephone lines is up-to-
date?
8. Whether the leased lines for ISDN for redundancy for dedicated links between
branch and CBP are in order and whether payment of the bills for the telephone
lines is up-to-date?
143
9. Whether testing has been done regarding auto-change over from primary line to
ISDN line in case primary link failure?
10. Whether IP Phone, direct telephone line to Controller, CBP-Navi Mumbai, ITSS
Department-LHO and ZOCC is available and whether payment of the bills for the
telephone lines is up-to-date?
11. Whether free disk space on Branch Server is being monitored to ensure that
adequate free disk space is available?
12.
13.
14.
15.
Checklist for reducing environmental contaminations:
Yes/No
1. No-smoking policy in the branch premises and the system room is enforced.
2. It is ensured that the air-conditioners in the branch and the system room have
been working in a prolific manner. The air-conditioners are inspected for wear
and tear at regular intervals to ensure its functioning at optimum level of
temperature sufficient to keep the inside environment clean and dust free. Also it
is ensured that air-conditioner is not drawing in unfiltered air from the outside
environment as this may inject urban pollution, including metallic contamination,
to the branch premises and system room.
3. It is ensured that the line printer has been kept at a separate compartment
adjacent to the system room to avoid infusion of carbonaceous contaminants,
e.g., paper dust and printer toner into the system room.
4. It is ensured that each node is kept covered overnight after the days work.
5. Arrange for computer room maintenance and cleaning at regular intervals with
vacuum cleaners with brush less rotors, and non-ionic cleaning solutions.
6. It is ensured that periodical anti-pesticide treatments are carried out at the system
room and the branch premises.
7. It is ensured that food & drink not allowed inside the system room.
8. Whether insecticide, rat-repellent, etc. are regularly sprayed and used at the
branch?
144
9. Whether air conditioning system is installed in the server room and whether
Thermometer / Hygrometer has been fixed at Server Room to check if the
temperature is maintained at 18
0
to 20
0
and Relative Humidity (RH) at 80%?
10.
11.
12.
13.
Fire prevention checklist:
Yes/No
1. Whether a no-smoking policy has been established and followed at the branch
and combustible articles removed from the branch premises?
2. Are smoke detectors installed? If so, do they respond to tests?
3. Are fire exits clearly marked and unobstructed?
4. Are fire suppression capabilities such as ceiling sprinklers, standpipes, hose
assemblies where prescribed and fire extinguishers in evidence?
5. Are inspection labels on fire extinguishers current?
6. Is there arrangement for periodic inspection of all electrical devices, extension
cords, electrical wiring etc., by an expert electrician?
7. Are the room walls of system room fire rated?
8. Is there any arrangement for annual inspection of fire prevention facilities at the
branch premises by local fire protection authority?
9. Are the fire awareness posters in evidence?
10. Does the branch conduct regular fire evacuation drills and discuss disaster
prevention awareness program with the branch staff?
11. Can an employee tell you the approximate date of last fire drill conducted at the
branch?
12. Are wastepaper bins or printer paper stacked near the electrical fixtures or
equipment?
13. Whether fire insurance policies have been kept current with due noting in branch
document register?
14. Whether the branch security staff is trained in handling the Smoke detector and
145
fire extinguisher equipments installed at the branch?
15. Whether an emergency EXIT has been provided at the branch premises for use
in a Disaster and whether all staff have familiarised themselves with all available
means of exit from the building, including those that are not normally used during
regular working hours?
16.
Checklist for reducing probability of Power caused disasters:
Yes/No
1. Is the utility point of service entry providing the connections between local power
utility and the branch facility known to the member of the disaster recovery team
of the branch?
2. Is there any evidence of overloaded outlets within the Branch?
3. Are loose extension cords in evidence in traffic paths?
4. Whether power and surge protection requirements have been identified and
adequate surge protection devices have been installed?
5. Whether primary source of electrical power has been provided to branch?
6. Whether UPS system of adequate load capacity installed?
7. Whether adequate maintenance arrangements have been made for the UPS
system and its batteries?
8. Whether in case of a power failure, the UPS system gets invoked as an instant
backup?
9. Whether dedicated UPS can support the server and desktops in case of
elongated power supply interruption?
10. Whether emergency generators have been installed at the branch to avoid
disaster due to prolonged power interruption?
11. Is there any diagram of electrical cabling displayed at a prominent place of the
branch for information & awareness of all concerned?
12. Has the LAN cabling been kept separated from the electrical cables?
13.
14.
15.
16.
146
17.
18.
Checklist for prevention of water intrusion:
Yes/No
1. Is recent water damage evident on the walls, floors, or ceiling arising out of
plumbing leakage, leakage from mainframe water-cooling systems or air
conditioner or faulty sprinkler systems?
2. Does water, sewer, or drainpipes pass through ceilings or walls of the system
room?
3. Is regular check up of the existing water intrusion control facilities carried out?
4. Does the branch regularly carry out cleaning of the hardware equipment with
moisture absorbent dry cloth, particularly during monsoon, to keep off moisture?
5.
6.
7.
8.
9.
10.
Checklist for Physical Access Control:
Yes/No
1. Identify electronic or manual locks on the doors of the system room to ensure that
entry in restricted.
2. Authentication control (through automatic locking of door) is being followed to
allow only authorised personnel to enter system room or other sensitive areas
within the system.
3. Establish a physical security awareness program for system room personnel.
4. System room access register to be maintained properly logging the names of the
personnel accessing the system room and the systems. The branch head should
check the register.
5. Appropriate exit control measures are being followed to control removal of
147
sensitive data or equipment / component from the branch or system room.
6. Authentication control measures should be designed so as not to impede the
disaster recovery functions during an emergency, e.g., security measures should
not restrict access to the system room during emergency to shut down the server
or remove vital records.
7. Where electronic or mechanical locks are used, the key codes or the copies of
the keys (for manually operated locks) should be kept in a sealed envelope, to be
opened only in event of an emergency. Ensure that this so-called blind-drop
method, established for access control information, is not revealed to all except in
an emergency.
8. Obtain copies of keys or key codes that may be used to surmount physical
access controls in an emergency.
Checklist for Document Distribution list and maintenance:
Yes/No
1. Whether a copy of the latest approved DRP / BCP has been handed over against
acknowledgement to (a) Controlling Authority, (b) Branch Head and (c) Each
member of Branch Disaster Recovery Team and the acknowledgement kept as
branch record?
2. Hard copy as well as soft copy of the latest approved DRP / BCP is retained as
Branch Document.
3. A copy of the DRP / BCP signed by each member of the staff in token of having
read and understood the same is recorded as Branch Document.
4. The DRP / BCP is reviewed at quarterly intervals.
5. Whether the approved copy of quarterly review of DRP / BCP kept in Branch
Document?
6.
7.
8.
9.
10.
148
CONTROL MECHANISM REQUIRED COST ESTIMATE
8. Control Mechanisms Required: (Items marked NO in 7.Control Mechanisms Existing
are to be listed out below. The list given below is only indicative)
S.NO Incidence Assets
Affected
Preventive
Measures
Corrective
Measures
Solution
proposed
Cost
Estimated
1. Unavailability of
data.
Data Daily backup
of data, and
reports.
Daily backup
of data, and
reports.
Daily backup
of data, and
reports.
---
2. Seepage. All Periodic
checking of
premises by
premises
department.
AMC Vendor,
if computers
are affected.
3. Dust Pollution. All Regular
cleaning by
trained
persons and
preventive
maintenance
by AMC
vendor.
Support from
premises
department for
repairs to
premises,
AMC vendor in
case of
computer
malfunction.
Outsource
Cleaning
operation.
-----
4. Fire. All Fire
Extinguisher,
No Smoking
Policy.
Monitoring of
Fire
Extinguisher
AMC and
training to
staff.
Provide
training to all
staff. Detailed
Fire drill
training to be
given to staff.
---
5. Faulty Wiring. All Periodic
checking of all
wiring.
Availability of
Electrical
Diagram.
AMC to be
entered in to
with
authorised
electrical
engineers.
-----
6. Power Failure. All UPS /
Generator of
required
capacity.
AMC of UPS /
Generator.
Improve
capacity of
UPS /
Generator or
replace
equipment.
---
7. Machine
Malfunction.
All AMC with
Hardware
vendor ----
-------
AMC vendor,
ZOCC/EDP
phone nos
displayed in
emergency
list.
Maintain
Hardware
register /
monitor at
monthly
intervals.
---
149
8. UPS failure All AMC with UPS
Vendor ---------
--
Monitoring of
UPS / Vendor
performance.
Upgradation
of UPS /
Generator or
replace
equipment.
---
9. Network failure All AMC with
Network
vendor ----
-------
Network
diagram
available,
Telephone
numbers of
Datacraft
displayed.
10.
11.
12.
ACTION PLAN
9. Action plan. Once approved by the controllers this can be displayed at the branch:
(This list is only indicative. This is to be prepared based on different scenarios that can
interrupt business operations of the branch.)
S.NO. Scenario Team members Emergency
Plan
Recovery Plan
Ms/Mr Raise the alarm.
Call the Fire
Service. (All
emergency
numbers to be
displayed at the
branch)
Assess the
damage and
decide if the
premises can be
put to use.
Ms/Mr Put off the main
power switch.
Check the power
situation with
experts locally
available.
1. Fire
Ms/Mr Attack the fire
origin with
extinguisher.
Reinstall the
computers and
start the work.
This can be at
another location.
In the same
premises if
action 2 is
completed.
150
Ms/Mr Guide the
evacuation of the
premises.
Reload the data
from backup if
required.
Ms/Mr Inform the
concerned
parties.
Prepare a report,
arrange for
insurance claim
etc.,
Ms/Mr Observe the
working of
computer to
ensure that the
UPS is giving the
required output.
2. Power failure.
Ms/Mr If UPS is down,
call the Service
provider.
Prepare a report,
restore the
system, and
contact CDC for
unlocking users.
3.
4.
5.
6.
7.
8.
9.
10.
POST DISASTER MANAGEMENT ACTIVITIES
Checklist for Post-Disaster Management Activities:
1. Location/address/telephone number of the backup media storage centre:
2. Location/address/telephone number of the designated CBS branch or continuing
operations following a disaster:
3. Insurance company to be informed about the loss and formalities initiated for lodging
insurance claim:
151
4. All members of disaster recovery team of the branch have been assigned
responsibilities for handling duties in terms of the recovery management plan.
5. The controlling authority and Crisis Management Teams at LHO and Zonal Office
informed of the incidence of disaster.
6. In event of a hardware problem of serious nature or server crash, call hardware
engineer for support. If the problem is likely to continue for indefinite period, arrange for
shifting stand-by file server from the designated off-site centre to the branch for
restoration of services.
7. If the branch site becomes completely inaccessible due to fire or other natural
calamities or otherwise, contact the crisis management team at LHO/ZO, assemble the
recovery team members of the branch. Assign them the respective duties, initiate
actions for shifting operations to a designated nearby CBS branch.
8. Arrange for remittance of manageable cash, adequate security arrangements, transit
insurance, staff augmentation etc., at the nearby CBS branch.
9. Suitable notifications have to be arranged for information of general public about the
disaster, requesting customers to operate their banking transactions from the
substituted backroom centre.
10. Controlling authority has to be apprised of the developments from time to time.
11. All efforts to be continued for fast restoration of the lost capabilities at the original
branch site for resuming normal operations.
Branch:
Date: Signature of Branch Manager
152
Checklist for testing approved disaster recovery plan:
1. A disaster recovery team has been constituted (List of the team members to be
appended) at the branch for undertaking activities relating to disaster prevention
and post-disaster recovery of the branch operations.
Yes/No
2. The branch recovery team has been maintaining liaison with the LHO/ZO
crisis management team members.
Yes/No
3. Last date of in-house meeting of the branch recovery team:
4. Last date of meeting of branch team with LHO/ZO team:
5. Drill on disaster recovery management held at the branch on:
6. Certificate for holding D.R. Test submitted by the branch to the controlling
authority on:
7. Type of D.R. Test conducted at the branch:
Scenario I:
Scenario II:
(Each scenario depicts simulation of interruptions caused by the potential threats
surrounding the branch environment, including H/W failure, Software related
problems, power failure and other infrastructure factors).
8. Results of D.R. Test conducted:
9. Obstacles faced in conducting D.R. Test:
10. Shortcomings observed in the test noted for rectifications:
11. Proposed date for next D.R. Test:
DATE: Signature of Branch Manager
NOTE: AS PER THE ACTION PLAN DRAWN (ITEM NO.9) THE AREAS MAY BE SHOWN
BELOW UNDER I) OR II) DEPENDING ON WHETHER THE ACTION PROPOSED INVOLVES
SIGNIFICANT COST OR NOT. AN ACTION INVOLVING EXPENDITURE OF OVER RS.5000/-
MAY BE DEEMED TO BE INVOLVING SIGNIFICANT COST FOR THIS PURPOSE.
NAME OF THE BRANCH:
REGION & MODULE:
TELEPHONE NUMBER (S):
FAX NUMBER:
153
1. ACTION WHICH INVOLVE SIGNIFICANT COST
S.NO Actions Proposed Purpose Cost
Estimate
Time
Frame
Remarks
(ADDITIONAL SHEETS MAY BE USED, IF NECESSARY)
2. ACTIONS WHICH DO NOT INVOLVE SIGNIFICANT COST
S.NO Actions Proposed Purpose Cost
Estimate
Time
Frame
Remarks
(ADDITIONAL SHEETS MAY BE USED, IF NECESSARY)
PLACE:
DATE: BRANCH MANAGER
FOR USE AT THE CONTROLLING OFFICE
PLAN APPROVED SUBJECT TO THE REMARKS, INCORPORATED AGAINST RELEVANT
ACTION POINTS.
PLACE:
DATE: ASST. GENERAL MANAGER
154
ANNEXURE - II
BRANCH MANAGERS MONTHLY CERTIFICATE
Branch................................. Br. Code No..................
[Please Tick]
Branch Category-A / B / C, Metro / U / SU / R, Bankmaster/Core Banking/Trade Finance,
Divisionalised, Having Currency-Chest / Forex business / Govt. Business, Linked to LCPC
Date : .............................
Dear Sir,
Branch Managers Monthly Certificate
For the month of.....................
I CERTIFY THAT --
1. The Monthly Certificate Register has been scrutinised by me on and on ................. and
on .........................
2. a) The Bank Cash Balance was last verified on ...................... (Other than joint
custodians) Currency Chest Balance was last verified on ................ (Other than joint
custodians) and were found correct.
b) Branches where In Branch Cash Handling system has been introduced, verification of the
cash handled by SWO, randomly chosen by the system is being done at the branch, as per the
procedure laid down in
the Bank.
3. The notes in the currency chest are periodically turned over, dispatch of soiled notes is
strictly in order of receipt and the notes accepted under guarantee bond system are examined
expeditiously as per extant instructions.
4. All the units are being inspected by the officials concerned at periodical intervals as per
extant instructions
5. All newly opened / transferred accounts at the branch have been duly scrutinised by the
authorised official to ensure that all the accounts have been opened / reported as per the laid
down instructions and; in
conformity with KYC norms.
155
6. a) The control forms in respect of advances, DD / T.T purchases, claims settled on
account of deceased parties and other general matters, sanctioned under branch discretionary
powers have been SUBMITTED by the respective authority and duly SCRUTINISED by the
appropriate authority at the branch. In case of all drawings in the advances accounts / exercise
of powers in general matters in excess of sanctioned limits /discretionary powers have been
sent up to to the controlling authority.
b) All Special Mention Accounts are checked and scrutinised. All steps have been initiated to
ensure that these do not degenerate into Non Performing Assets and related reports / action
taken report have been submitted to the Controlling Authority.
c) List of Indicative NPAs is perused and followed up fortnightly as per Banks instructions.
7. All accounts requiring manual balancing (Bank Guarantees Account, Stamp Account,
Security and Safe Custody Account, etc.) are balanced periodically. Following accounts are
pending / overdue for balancing:
A/C. Last Balanced on
....................... ......................
....................... ......................
....................... ......................
....................... ......................
8. In case of DDP, the cheques negotiated, represent genuine trade transactions and the
facility is not allowed as a matter of routine. DDP is not used for Kite Flying. If and when
drawings against DDP are permitted, it is done strictly as per the Banks extant instructions with
proper authorisation from the appropriate authority.
9. Systems & Procedures relating to Gold Banking are complied with at the Branch
(Where applicable).
10. Income from Cross Selling as per the business booked by the Branch is matched with
the Income Credited to the Commission A/c under that particular head.
11. In case of A and B Category Forex Branches,
a. All Forward Contracts where delivery has not been taken/made, have been
cancelled within 15 days of due date with the following exceptions.
156
b. Overdue Bills of Exchange/Foreign Currency Sight Bills, except those mentioned
below, have been crystallized on the 30th day from due date/notional due date
respectively and a daily list is being maintained for recording due dates of
crystallization.
c. Quarterly statement of outstanding FCs, BOEs and FCSBs received from the FD
Calcutta, has been returned to them after verification and with appropriate remarks
within 15 days of receipt thereof and there are no arrears in this regard. The following
Quarterly Statement(s) is/are yet to be verified and returned to the FD Calcutta.
d. All charges for cancellation and/or early/late delivery of forward contracts or
crystallization of Bills of Exchange / FCSBs have been recovered, save for those
furnished below.
e. Foreign Currency Notes are held at the Branch within the stipulated limits.
12. The position of reconciliation of FCGA accounts and status of rejected strings. No. of
rejected strings if any No.__ Amount._____. Control report sent to controllers on ...................
13. Cash held in ATM(s) is verified periodically by the joint custodians and was last verified by
................................................................... on .......
............ showing balances as below:
ATM - ADMIN BAL . Rs.................................
ATM-CASH BAL Rs.................................
ATM Cash Bal BGL A/c 98549 bbbbbc Rs.................................
14. That no IOA / DRC/Agency Clearing and other memo is pending except the following, which
are being attended to.
15. Safe keeping of Pre-Printed-Welcome-Kits (in case of branches linked to LCPCs) is
ensured.
16. All inspection / audit reports as under have been dealt with except ...................... Steps
have been initiated to deal with the same.
17. The statutory provisions relating to the Tax Deduction at Source are being strictly complied
with.
18. All Annual Maintenance Contracts have been renewed in time and are current
except.................................
19. All licenses, rental lease deeds are made current except.....................
157
20. Status of complaint(s) received at the Branch:
No. of complaints received during the month is/are ........ out of which .....................
complaint(s) has/have been dealt with. Number of complaints pending at the end of the month
(old + received during the month) is/are.
21. Compensation for deficiency of service is being paid suo-moto in terms of the Banks
Compensation Policy and request from customer is not insisted upon.
22. Staff Accounts are reviewed at regular intervals and no suspicious transaction and / or
case of an officer / employee living beyond means has been observed going by the reports
provided by CDC for the month.
23. Job rotation is being carried out at six monthly basis and gaps in implementation of the v5
Year Transfer policy for Award Staff have been brought to the notice of Controllers for
appropriate action.
24. No temporary messengers have been appointed / engaged at the branch on casual /
daily basis / payment of petty: cash during the month.
25. Authority for Outsourcing services, if any, have been obtained from the appropriate
authority and is held as the Branch Document.
26. The security / protective arrangements envisaged in the Aide Memoire are strictly
adhered to at the branch.
27. Destruction of obsolete records last done on ...........................
28. There are no unreconciled entries beyond stipulated period in STEPS except... ......
29. Annexure- A / A+B (tick as applicable) is submitted along with BMMC.
30. Expenses booked to changes Account are genuine necessary and well controlled in addition
to having sanction of the competent authority State Bank of India
Branch ..................
Date..................... BRANCH MANAGER
158
BRANCH MANAGERS MONTHLY CERTIFICATE
Annexure (A) - for Core Banking Branches
For the month of......................
Branch................................. Br. Code No.
I certify that:
SI No Particulars
1 User administration functions relating to user re-set, changes in capability/group home
branch, security level and user type are carried out after authorization by the competent
officials of the branch and record maintained.
2 The IDs allotted by CDC to the officials/staff at the branch are duly advised to them and
acknowledgement obtained from them in the User-ID Allocation Register.
3 User password secrecy is maintained at the branch.
4 Users created are allotted rights as per the role. Users rights like user capability, user
group & user type as given in CDC report has been scrutinised and found to be in order,
except the following cases which have been taken up with LHO/CDC/ for corrective
action.
5 Unauthorized fictitious/absentee users are not present in the system.
6 Only the authorized users attached to the branch have access rights to the System from
the branch and the users transferred/resigned/retired from the branch do not have
access rights to the system from the branch.
7 Access to the System Room is restricted and entry into the System Room is permitted
only after entering in the System Room Access Register. System Room Access Register
is scrutinized regularly and authenticated in token thereof.
8 Access to hardware by the vendor is permitted only after recording the same in
Hardware Access Register.
9 All the new hardware purchased are entered in the Fixed Assets Register.
10 Insurance of all the hardware available at the branch is up to date and valid.
11 Free disk space on the branch servers hard disk is being monitored at least weekly, to
ensure that adequate free disk space is available.
12 Annual Maintenance Contract is entered with the vendor for all the hardware and it is in
force.
13 All the hardware equipments/UPS/Generator are properly maintained and serviced.
General upkeep and cleanliness of the branch, fire protection arrangement and physical
security of computer system, etc., are taken care of.
14 No unauthorized software is loaded in the branch computer system. Licensee copies
of all software in use at the branch are on record. Antivirus software is loaded on the
system and is updated regularly.
15 Errors encountered in software are duly recorded in the Helpdesk (CDC) and monitored.
159
17 All the financial and non-financial transactions (limit change, interest rate change for loan
as also for deposit accounts (where applicable), stop cheque, cheque book issue, etc.)
are entered into the system only on the strength of a duly authenticated voucher. For
rectification of all the errors also, proper vouchers/input forms are prepared.
18 EOD Signal is invariably given through system every day after ensuring that all
mandatory validations/checking are complete and no item is pending in the queue for
authorization. Further, printout of EOD-Signal Screen is taken on a daily basis and filed
in sequence of date for future verification.
19 Instructions in respect of on-site and off-site storage of periodic data back-ups are being
followed as approved by the Controllers.
20 Disaster Recovery Plan (DRP) for the branch has been prepared, approved by the
Competent Authority, notified to all the persons concerned against their
acknowledgement and has been reviewed. The same was last reviewed on ____.
21 The Disaster Recovery Plan was last, tested on satisfactorily, and found to be working
22 The following control registers were last verified and scrutinized by the concerned
officials in the manner laid down on the dates indicated there against:
S. No. Registers Date
i. Storage Media Record Register
ii. System Room Access Register
iii. Computer Hardware Access Record Register
iv. Comp Hardware Maintenance & Breakdown (including network failure) Register
v. Roster for Checking of Reports
vi. Software Release Control Register
vii. ATM Cash Register
23 Checking roster has been introduced and all the SOD/EOD reports including Voucher
Verification Reports and Voucher Verification Reports for Non-home Transactions are
being generated, printed, sorted, distributed, checked on rotation, recollected and
securely filed
24 All the instances of single sided postings are recorded in the Branch Books and
CDC/Controllers are advised with reasons therefor.
25 Both sides of Multi Currency Balance Sheet and Profit & Loss Accounts are tallying.
There are no balances in the Branch System Suspense Accounts (both CGL Heads
under Dr/ Cr) in the Multi Currency Balance Sheet, except as given below:
Date CGL Code Amount Action proposed to zeroise the balance
.. .. ..
.. .. ..
.. .. ..
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26. All the System Suspense Accounts (including all intermediate office accounts like
BC/Drafts To be issued Accounts, etc., or any other office accounts) have zero balance
except for the following:
(list of A/c No., balance and action proposed to zeroise these balances)
27 There are no balances in the Migration Suspense/Misc. Migration Customer
Account/any of the consolidated or Difference Accounts created on or before migration,
except as given below:
(list of A/c No., balance and action proposed to zeroise these balances)
28 Inward Clearing Suspense/OLRR/ intermediate Accounts for DD/BC/TTs/ Steps/ Internet
Banking, etc., are being zeroised on a daily basis. Further, no outstanding exists in
Outward Clearing Suspense Account for more than two clearing dates.
29 Cash in Cash Drawer of the Vault Teller, BGL, Cash Balance of B@ncs-24 and CGL
Cash Balances are tallying. In case there is a difference, branch should give the
balances lying in each of the above, reasons therefor, and plans for rectification.
A/c Difference Reasons Plans for Rectification
. . ..
. . ..
. . ..
. . ..
30. All the computer related discrepancies pointed out in the Branch Implementation
Report/Conversion Audit Report/Post Implementation Review Report/Any other Audit
Report have been rectified except for the following:
i.
ii.
iii.
iv.
31 SC and DD Modules are being used and entries are marked off/reconciled in the
System. The outstanding DDs/SCs tally with the balances in DDP Account and SC
under Collection Account, respectively.
32 Customer centric facilities like printing of Pass Books/TDR/STDR/Drafts, Dr/Cr Advices,
Bankers Cheques, Statement of Account, Welcome Letters, Thank Letters, Interest and
Balance Certificate, Time Deposit maturity notices, etc., are working.
33 Balance in CGL Account of PPF Deposit Mirror Account (A/c. No.2060500601) was zero
on all the dates during the month.
34 Exemptions on fees, where permitted and incorporated in the system, have the approval
of the appropriate authority.
35 GAD-5 statements along with respective scrolls / challans up to the last working day of
the previous month have been dispatched to FP Br/Nodal Br/Link Br on a daily basis,
duly recorded in the Dealing Branch Monitoring Register on a daily basis and has been
personally scrutinized by me.
161
36 TDS requirements are being strictly complied with and tax deducted is being credited to
Govt. Account within stipulated period. Further, prescribed returns are being submitted
to Income Tax Department as stipulated.
37 All IOR enquiry memoranda for all streams, including Govt. Accounts, received at the
branch have been attended to and replied, except for the following:
Date of txn Amount Particulars of IOR Enq. Memo Remarks (if any)
38 The balances of all assets/liability account maintained in B@NCS-24 tally with the
corresponding CGL balances, except the following:
Account No. B(o)NCS-24 Balance CGI Balance Remarks (if any)
39 There is no balance lying in the under noted CGL Accounts. (If balances exist,
particulars to be checked by BM and furnished against relative item):
GL Account Description Currency Amount
1260505001 Balancing Account
1000505010 Wash Account (BGL)
1111111111 Suspense Account
2148505001 System Suspense Account
1000505003 Suspense Account (Data Migration)
40 Forex Clearing General Account is balanced up to ----------------------- (applicable for
forex A and B Category branches only)
41 Action has been taken for Internet Banking manual intervention transactions, except for
the following:
i.
ii.
iii.
iv.
42 All inter-branch transactions (direct debit/credits to account at other CBS branches) have
been duly authenticated by BM.
43 i. Request for issue of ATM Cards on new account opened is being done
immediately using the relevant menu option in CBS.
ii. All instructions relating to ATM operations and procedural matters are followed at
the branch. All undelivered Pin-mailers & ATM Cards received at the branch are properly
recorded and kept in separate custody.
iii. Cash held in ATM is verified periodically in addition to the daily verification by the
joint custodians.
162
44 Vouchers are sorted out as per revised instructions, checked, and stored properly.
Missing vouchers, if any, are duly traced or duplicate vouchers are prepared with the
approval of competent authority and stored with the relative lot.
45 Balance in Internet Banking Suspense Account (Account No. 98561) is being
zeroised regularly.
46. The ID & Password of OIC-INB for access to the Intranet Website of Onlinesbi is being
held in sealed cover in Branch Document Register as per extant instructions.
47 All users introduced for Internet Banking Service have been done after proper
verification. Transaction Rights are given based on expressed request of the customer
and as per entitlement.
State Bank of India,
Branch. ...................
Date: ....................
BRANCH MANAGER.
163
BRANCH MANAGERS MONTHLY CERTIFICATE
Annexure (B) for Trade Finance Branches
For the month of ......................
Branch................................. Br. Code No.
I certify that:
SNo Particulars
1. The IDs allotted by CDC to the official/staff at the branch are duly advised to them and
acknowledgement obtained from them in the User-ID Allocation register.
2. User password secrecy is maintained at the branch.
3. Users created are allotted rights as per their roles. All users in Exim Bills change their
password without fail at least once in a month.
4. Unauthorized fictitious/absentee users are not present in the system.
5. Roles of System Administrator and Branch UCO are not given to users with transaction
rights in the Eximbills.
6. Only the authorized users attached to the branch have access rights to the system from
the branch and the users transferred/retired from the branch do not have access rights
to the system from the branch.
7. Exim Bills / CBS Servers which are identified as sensitive for IT operations are hosted in
System Room only, having clearly defined perimeter that restricts access only to
authorised users. Access to the System Room is restricted and entry into the System
Room is permitted only after entering in the System Room Access Register. Access to
the System Room is allowed only after due identification and authorisation. System
Room Access Register is scrutinised regularly and authenticated in token thereof.
8. Access to hardware by the vendors is permitted only after recording the same in
Hardware Access Register and after due identification and authorization.
9. All the new hardware purchased is entered in the Fixed Assets Register. Insurance of all
the hardware available at the branch is up to date, adequate and valid.
10. Free disk space on the branch servers hard disk, on all disk partitions, namely C:, E:
and F:, is being monitored weekly, to ensure that adequate free disk space is available.
Temporary files (*trnp) on all Eximbills nodes and server are deleted permanently at
regular intervals.
12. Annual Maintenance Contracts are entered with the vendors for all the hardware and
they are in force.
13. All the hardware equipments, UPS, Generator Routers Switches and communication
infrastructure are properly maintained and serviced. General upkeep and cleanliness of
the branch, fire protection arrangement and physical security of computer system, etc.,
are taken care of.
14. No unauthorized software is loaded in the branch computer system. Licensed copies of
all software in use at the branch are on record.
15. Antivirus software is loaded on the system and is updated regularly.
164
16. No internet connections are permitted on any of the computers on the LAN at the branch
17. No Floppy disk drives, CD-ROM/DVD-ROM drives are available on any of the
workstations at the LAN.
18. Errors encountered in software are duly recorded in the helpdesk (CDC) and monitored
19. Instruction in respect of on-site and off-site storage of periodic data back-ups are being
followed as approved by the controllers.
20. Disaster Recovery Plan (DRP) for the branch has been prepared, approved by the
competent Authority, notified to all the persons concerned against their
acknowledgement and has been reviewed. The same was last reviewed on____
21. The Disaster Recovery Plan was last tested on to be satisfactorily and found
22. The following control registers were last verified and scrutinized by the concerned
officials in the manner laid down on the dates indicated there against:
SI No. Registers Date
i. Storage Media Record Register
ii. System Room Access Register
iii. Computer Hardware Access Record Register
iv. Comp hardware Maintenance & Breakdown
(including network failure) Register
v. Roster for Checking of Reports
vi. Software Release Control Register (other than for CBS, if any)
23. Checking roster has been introduced. All the SOD/EOD reports including Voucher
Verification Reports, Gateway Reports are being generated, printed distributed,
checked recollected and securely filed. Checking is done on rotation basis and the
following are being scrutinized by me personally Vouchers Verification Reports (Viz.,
txns on GL A/cs, txns on Customer
A/cs and System Generated txns, Gateway Reports)
24 All Trade finance Transactions, reported to mercury Fxsystem are accounted for in
Eximbills / CBS without fail.
25 While doing Start of the Day, the option Remove Deleted Records is always checked to
remove old documents.
26. Branch Server hosting Eximbills is restarted every Saturday after EOD process in Core
Banking.
27. Exemptions of fees, where permitted and incorporated in the system, have the approval
of the appropriate authority.
28. Admin password for all Windows Servers is held securely in a sealed cover as Branch
Document and is not being accessed without due authorisation and without entering in
the Admin Access Register.
29. Special rates for commissions, interest, discount, etc., being attached at the customer
level at the Branch are being duly verified and kept up to date from time to time.
165
30. Concessions in charges, commissions, interest allowed at transaction level are being
duly checked.
31. The sub-type-wise outstanding balances being generated from Exirnbills by CDC are
being tallied with corresponding outstandings in Core Banking on a monthly basis.
State Bank of India
Branch ....................
Date: ...................
BRANCH MANAGER
166
Annexure III
COS 330
STATE BANK OF INDIA
.....................................Branch
Code No........................................... Date : ............................
To,
The........................................
State Bank of India, No..
..
..
Dear Sir,
.........................................Branch
We, the undersigned.................................................................. ......and.........................
have to advise having respectively made over and assumed charge of above branch as from
the close of business on the .........................................................20
The Relieving Branch Managers Certificate and the Cash Verification Report are forwarded
herewith / will be forwarded to you within 30 days. If the certificate is not received by you within
30 days of taking over, I am aware that it would be deemed that I have assumed full
responsibility for the affairs of the branch/division/area of work including conducting of
business/operations.
Yours faithfully,
Branch Manager (Relieved) Relieving Branch Manager
167
Annexure - IV
COS. 331
RELIEVING BRANCH MANAGERS CERTIFICATE
1. I hereby certify that I have checked the following as at the close of business on the date
noted against each :-
*a) The Genera! Ledger balances at the branch
*b) The notes and coins held in the Branch Cash .......................
Balance
*c) The contents of the Currency Chest
*d) The contents of the Small Coin Depot .......................
*e) The shares and securities held in safe custody .......................
and against advances at the branch according to the Branch Safe Custody and
Security Books (including safe custody receipts of other offices of the Bank for
scrips held by them on account of the Branch) and the withdrawals and deliveries
therefrom since the last inspection/audit of the branch.
OR
Shares and securities held against advances, relating to at least 10% of accounts
randomly selected on the required lines
*f) The stock of the Banks travellers cheques
*g) The stock of Employees State Insurance
Corporation contribution stamps .......................
*h) The stock of American Express Company .......................
Travellers Cheques and that they are all to the best of my knowledge correct
2. I have also checked the cash balance of.........................Sub-Office(s) as
on................and have reconciled the difference between the cash held at the Sub-
Office(s) and the balances of the Sub-Office Cash Balance Account(s) at the Branch.
3. I further certify having checked:
a) The bills and relative documents held at this Branch under Bills discounted. Bank
Bills Receivables, Bills for Collection, Protested Bills and Demand Drafts
Received for Realisation Accounts.
168
b) The outstanding in Suspense Account, sundry Deposit Account, Inter-Branch
Items-in-Transit Account *(Drafts Payable Accounts, Payment Orders Account)
and Sub-Office(s) Account, and
c) The securities and bullion held in Investment Account and Bullion Account
respectively (and the foreign currency notes includes in Bills of Exchange
account) and I confirm the correctness of the balance of the above accounts as
shown in the books of the Branch.
4. I have examined and checked with the relative register the documents held at the
Branch in respect of Overdrafts, Demand and Term Loans, Cash Credit advances and
all Protested Bills and have satisfied myself that they are correct. I have also inspected
the securities, bullion, gold ornaments, produce and merchandise under lien to the Bank
and have agreed the relative outstandings there against with the General Ledger as at
the close of business on the..................and satisfied (subject to any remarks below) that
all advances at the Branch are in order.
OR
# I have examined and checked with the relative registers and documents at the
Branch in respect of Overdrafts, Demand and Term Loans and Cash Credit
Advances since the last audit/inspection and all documents relating to Protested
Bills and sticky and irregular advances and have satisfied myself that they are
correct. I have also inspected the securities, bullion, gold ornaments, produce
and merchandise under lien to the Bank relating to all the accounts which have
been classified as sticky or irregular and at least 10% of the remaining accounts
randomly selected on the required lines and confirm that the test check did not
indicate anything that would suggest that the advances at the branch (other than
those already classified as sticky or reported as irregular) are not in order.
5. I further certify that I have verified with the relative registers -
a) The bills and relative documents corresponding to outstanding items in the Local
Short Credit Register.
*b) The miscellaneous articles in safe deposit together with the receipts for the
deliveries therefrom since the last inspection/audit.
c) The Banks documents at the Branch.
*d) The securities held at the Branch pending disposal.
*e) The balance of stamps held at the Branch in Stamp Account.
f) The keys and duplicate keys of the Branch.
g) The office and house furniture, which is in...................condition, and
h) The Branch Managers crockery and glassware provided by the Bank, which has
been made up to strength by the outgoing Branch Manager.
169
6. I have also taken over/ verified the Branch check signal apparatus and all code books,
specimen signature books and correspondents control document at the Branch.
*7) I have examined Trust Accounts at the Branch and the connected documents and am
satisfied that they are in order.
8) I have examined the protective arrangements in force at the Branch and the Sub-
Office(s) and am satisfied that they are adequate.
9) I have satisfied myself, by reference to relative balance books that the position in respect
of the balancing of the various accounts reported in the last monthly certificate
conformed to the actual position.
10) I have fully discussed with the outgoing Branch Manager, the Business, Staff and Capital
Expenditure Budgets of the Branch, as settled for the current year, and confirm having
taken over the responsibility in respect thereof (subject to any remarks below). I have
also spent sometime in the various departments including the Cash Department at the
branch with a view to ensuring that operative instructions as laid down are generally
followed.
REMARKS
STATE BANK OF INDIA
Branch :.........................
Dated : .....................................200 Relieving Branch Manager
* To be deleted when the relative items being in the charge of another authorised official, these
are not verified by the Relieving Branch Manager.
# To be deleted when the Relieving Branch Manager makes a complete verification.
--(0)--
170
SUGGESTIONS/ FEED BACK INVITED
We feel that the role of Branch Manager is very critical, important and most challenging one. We have made sincere
efforts to bring out an updated and correct set of instructions/ material required for the Branch Managers in the form
of a kit. However, our Branch Managers and other colleagues are requested to use the same for indicative help
only, and refer to Banks circular instructions wherever necessary.
We will be glad to receive your feed-back in the form of suggestions and corrections so that the kit can be further
improved on an ongoing basis to make it more useful and relevant to the Branch Managers. We therefore request
you to send your suggestions to the e-mail kishore.k@sbi.co.in or s.indurthi@sbi.co.in , by writing BMs Kit
in the subject. Alternatively, you may write your suggestion on this page, tear it off and mail to us at the following
address:
K.V. Nandkishore or I.S. Rao, Faculty,
State Bank Staff College,
6-3-1188, High Cliff,
Begumpet Road,
Hyderabad (A.P.) PIN 500 016
The format in which suggestions can be sent is furnished below:
(a) Topics to be deleted
(i) .. (ii) ..
(iii) .. (iv) ..
(b) Topics to be added
(i) .. (ii) ..
(iii) .. (iv ) ..
(c) Topics to be expanded in size
(i) .. (ii) ..
(iii) .. (iv) ..
(d) Topics to be reduced in size
(i) .. (ii) ..
(iii) .. (iv) ..
(e) Corrections required to be made:
Page No. Existing Text To read as (Suggested Change)
Signature:
Name: Telephone No.
Designation: Mobile No.
Branch/ Office:
Circle/ Establishment: