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TC, Baroda
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W.e.f. 26.6.2004 a new accord Basel II was implemented which takes into
account credit risk, market risk and Operational risk. From Feb-2005 RBI
advised all Commercial banks to adopt Standard Approach for Credit Risk and
Basic Indicator Approach for Operation Risk. The Basel-II has three pillars;
11. The first pillar- minimum capital requirement : compatible with the
credit risk, market risk and operational risk. The regulatory capital will
be focused on these three risks.
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32. The second pillar- Supervisory review system: gives the bank
responsibility to exercise the best ways to manage the risk.
Concurrently, it also casts responsibility on the supervisors to review
and validate banks risk measurement models.
3.
IRB Internal Risk Based Approach: This will assess the risk relating
to borrower (PD), Facility (LGD), exposure at default (EAD) and maturity
of the exposure (M). Operational risk there are three approaches (1) Basic
Indicator approach, where CAR = Gross income x Alpha ( which is 15% at
present) Gross income means net profit + prov. & Contingencies +
Operating expenses Profit on sale of YTM investment, other
income/expenses etc.
The third pillar - market discipline are used to leverage the influence that other market players
can bring. Market Risk includes Liquidity Risk, Interest Rate, Forex exchange, Commodity,
Equity and Country Risk and Trading Book (HTM,HFT and AFS) versus Banking Book. This is
aimed at improving the transparency in banks and improves reporting.
Accord I
Focuses on single risk
measure
TC, Baroda
Accord II
More emphasis on banks own internal
methodologies Supervisory review and market
discipline
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In India the enactment of SARFAESI Act 2002 enabled lending agencies (secured
creditors) to foreclose and sell underlying assets without court intervention to recover
the secured debt. For the purpose of the Act, Minimum Scale IV officer is designated
as Authorized Officer for the purpose of enforcement of security interest under the
Act to realize / recover banks dues in case of a NPA-account.
1. In case of default, the Authorized Officers can write to the borrower to repay
secured debts within 60 days from the date of notice failing which the bank is
entitled to exercise the right(s) given by the Act as under:
1A) Take possession or take over management of the secured assets of the
borrower including right to transfer, lease, assign, sale the secured assets;
2B) Appoint any person as manager to manage the secured assets taken over
under possession by the bank;
1C) To pay to the Bank as secured creditor so much of money as is sufficient to
pay the secured debt.
TC, Baroda
Criteria for determination of Base Rate: While each bank may decide its own base
rate, some of the criterio that could go in to determination of Base rate are
(i)
Cost of Deposits
(ii)
Adjustment for negative carry in respect of CRR & SLR.
(iii)
Unallocatable overhead cost for banks such as agreegate employee
compensation relating to administrative functions in corporate office, directors
and auditors fee, legal and premises expenses, depreciation, cost of printing
and stationery, expenses incurred on communication and advertising, IT
spending and cost incurred towards deposit insurance and
(iv)
Profit margin
Since the Base rate will be the minimum rate for all commercial loans, banks are not
permitted to resort to any lending below the Base rate except some special categories
like
(i)
Short Term agricultural loans.
(ii)
Export credit, where interest concessions are granted by GOI
(iii)
Loans granted to a corporate, post restructuring.
(iv)
Loans under DRI scheme.
(v)
Advance against Banks own term deposit receipts.
(vi)
Loan granted to Banks own employees.
(1)
(2)
(3)
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TC, Baroda
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To Customer
Benefits to Bank/India
First
Broaden Customer Base.
Possibility of cross sell, up
sell.
Increase
in
Low
cost
deposits base.
Bank will get long lasting
relationship with customer
at least for -10- years.
Help increasing Recurring
Deposit base i.e. long term
resources for the Bank
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Insurance Coverage as
per ULIP plan.
Market
based
Wealth
creation
Broad
basing
Business
portfolio.
Commission on Insurance
premium payable to Insurer
thereby adding to Non
Interest Income of the
Bank
Baroda
First
Wealth
Pack- Silver
Rs.25000
Baroda
First
Wealth
Pack- Gold
Rs.50000
Baroda
First
Wealth
PackPlatinum
Rs.100000
Annual
Installment of
Rs. 10,000/-
Annual
Installment of
Rs. 50,000/-
Rs. 2250/
Annual
Installment
of
Rs. 20,000/Rs. 4,900/-
Rs. 12,000/
Rs. 750/
Rs. 24,000/Rs1,100/-
Rs. 40,000/
Rs. 1,900/
2 lacs
3 lacs
5 lacs
2 lacs
3 lacs
5 lacs
2 lacs
2.64 lacs
4.40 lacs
4 lacs
6 lacs
10 lacs
4 lacs
5.64 lacs
9.40 lacs
Rs. 8,100/
ATM-cum-Debit Card
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1. Our Banks International Debit Card Issuance is free for first year & after that
Rs.100 + Ser. Tax will be charged. Now, renewal is free and it will require after 10
years.
2. Additional Cards are issued free for first year & after that Rs.100 +Ser. Tax will
be charged.
3. As per RBIs latest guidelines w.e.f. 01 April 2009, our Debit Card customers can
use other banks ATMs free of charges. These charges are not to be recovered
from the customers. However, Banks have to pay to the concerned bank of which
ATM has been used.
4. ATM cash withdrawal limit per day is Rs.25000/-, with max. 4 txns per day (but
per txn. limit remains at Rs 15000).
5. Purchase transaction limit per day at POS (Point of Sale) is Rs.50000/-.
6. Mini Statement of last five entries is available only in our Banks ATM.
Cash withdrawal through other Bank ATMs
1. Our customers enjoying ATM in their SB a/c can withdraw a maximum of
Rs.10000/- per transaction through other Banks ATMs, maximum 5 times in a
calendar month, free of cost. Thereafter a nominal charge of Rs.20/- will be
levied for each transaction.
2. Henceforth, current / OD account customers holding debit card cannot avail the
free cash withdrawal facility through Other Bank ATMs.
3. Balance enquiry on other Bank ATMs by Savings / Current / OD account holder
will continue to remain free of charge.
4. If during ATM transaction a/c is being debited but cash not dispensed, ATM user
should male complaint with ATM Issuer bank not with Acquirer bank.
5. Once the complaint is received, it should be resolved within 7 working days
otherwise, bank has to pay penalty @ Rs.100 per day, irrespective of the
transaction of amount.
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Baroda Connect
Baroda Connect, an internet banking product of our Bank, is the very important
alternate delivery channel (ADC). This also facilitates the customers to enjoy
various banking services from their door step (home / shop/ company) or
anywhere having internet connectivity, hence, in limited sense, we may call it as
Mini Extension Counter of the Bank. In todays buyers market, where
Customer is the King and each and every service industry including banking,
are hovering around the centre point CUSTOMERS, such a unique service is
extremely desired by the customers at large, especially by Gen-Next customers
and it also proves the concept of internet as www (win-win-win situation for the
Customers, Bank & Employees). Considering the same of prime importance, our
Bank has come out with a mega project Navnirmaan, which is going to be
beneficial to all the three, in one way or, other.
Benefit to the Customers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
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Unlimited
Unlimited
50,000
100,000
Weekly limit
Unlimited
4,00,000
Monthly limit
Unlimited
10,00,000
Yearly limit
Unlimited
60,00,000
Corporate
Self fund
transfer
5,00,000
10,00,00
0
40,00,00
0
1,00,00,
000
6,00,00,
000
Third
party
fund transfer
50,000
1,00,000
4,00,000
10,00,000
60,00,000
Baroda e-Trading
Baroda e-Trading, an on-line share trading facility is offered under a tie-up
arrangement with M/s India Infoline Ltd. (IIL). Baroda e-Trading is 3-in-1
integrated account. These will be
1. One operative account with CBS branch
2. One DEMAT account either with our Bank or India Infoline Ltd.
3. One Trading account with India Infoline Ltd.
However, at present all Baroda Connect users and new Customers of select
CBS Branches have been allocated 4 digit TPIN by default i.e. without request.
The main/ base account of Baroda connect only shall get TPIN but phone
banking facility shall be automatically available to all other accounts linked to
this base account having same customer ID.
So, a customer must login with account number of the main/base account for
which TPIN has been created.
For getting General Information (such as rates of interest; Forex rates etc.) the
customers as well as non-customers need not have an account ID and TPIN.
An User shall connect by dialing to Toll Free No 1800 2222 07 from landline
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phone for availing Baroda Phone Banking Service and will push button the
prescribed main account number and TPIN as prompted by system.
BarodaRemitXpress
In keeping with the Banks goal of emerging as a true international bank of India,
the Bank has launched an Online International Money Transfer Service
BarodaRemitXpress. This product is a unique and robust online remittance
solution from USA, UK and Eurozone. This online service is bank-neutral, thus not
requiring the senders and the recipients to have a bank account with us.
Cheque Truncation
A working group under the chairmanship of Shri D Burman had recommended
the concept of Cheque truncation to replace the physical movement of cheque
by the image of the cheque. Truncation is the process of stopping the flow of the
physical cheque issued by a drawer to the drawee branch. The physical
instrument will be truncated at some point en-route to the drawee branch and
an electronic image of the cheque would be sent to the drawee branch along
with the relevant information like the MICR fields, date of presentation,
presenting banks etc. Thus with the implementation of cheque truncation, the
need to move the physical instruments across branches would not be required,
except in exceptional circumstances. This would effectively reduce the time
required for payment of cheques, the associated cost of transit and delay in
processing, etc., thus speeding up the process of collection or realization of the
cheques.
Benefits
Core Banking
From a business perspective Core Banking relates to the basic business of a bank
or financial institution. That, in a nutshell, is taking deposits (liabilities) from
customers and lending (assets) to customers. While doing so, ensure that profits
are generated for the bank / financial institution.
From a technology perspective, Core Banking is the short name for a Core
Banking System that a bank has to deploy in order to perform its Core Banking
business. In short, implementing a system that will help the bank take deposits
and lend to customers in a profitable manner.
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IFS Code
Indian Financial System Code (IFSC) is an alpha numeric code designed to
uniquely identify the bank-branches in India. This is 11 digit code with first 4
characters representing the banks code, the next character reserved as control
character (Presently 0 (ZER0)appears in the fifth position) and remaining 6
characters to identify the branch. IFSC No. for branches of our Bank is
BARB0XXXXXX where XXXXXX is for Branch Alpha. But if the alpha code is less
than 6 characters, it should be padded by X after the alpha i.e. if the branch
alpha of our Mount Abu branch is ABU then the IFSC code of this branch will be
BARB0ABUXXX.
NEFT
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer
system to facilitate transfer of funds from any bank branch to any other bank
branch.The system uses the concept of centralised accounting system and the
bank's account, which is sending or receiving the funds transfer instructions, gets
operated at one centre, viz. Mumbai only.
There is no value limit for individual transactions. NEFT is settled in eleven
batches with first batch starting at 0900 on weekdays and in five batches with
first batch starting at 0900 on Saturdays
How it is different from RTGS?
1) NEFT is a domestic electronic payment system (except Nepal) whereas RTGS
allows remittance from abroad also.
2) Minimum Amount in RTGS is Rs. 2 lac whereas in NEFT it is Rs.1 only.
3) NEFT transactions are processed in a batch (11 in a normal day and 5 on
Saturday) whereas RTGS transactions are processed on Real Time basis.
4) NEFT transaction can be done by cash also whereas RTGS can be done
account to account.
5) In NEFT if there is incorrect a/c no. amount gets bounce back to remitting
branch whereas in RTGS it remains with the receiving branch.
6) NEFT transaction can be done by cash (i.e. non customers can also avail the
benefit of NEFT by depositing cash up to Rs.50000/-) whereas RTGS can be
done account to account only.
The acronym RTGS stands for Real Time Gross Settlement. An RTGS
Payment system is one in which payments instructions between banks are
processed and settled individually and continuously throughout the day
This is in contrast to the net settlements, where payment instructions are
processed throughout the day but inter-bank settlements takes place only
afterwards. Payment instructions processed on a continuous or REAL TIME
basis and settled on a GROSS or individual basis without netting the debits
against credits.
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ASCROM
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Now, bank is going to establish one RBO in each Zone. The first Regional Back
Office was established at Baroda. The RBOs arel catering to a cluster of 350-400
branches for back office activities, such as, centralized account opening,
signature scanning, personalized cheque book issuance; other activities may be
added in due course like, statement printing, FDR renewals, TDS certificates and
some part of MIS.
Digital signature:
The digital signature is an encryption and decryption process allowing both
the positive identification of the author of an electronic message (Who wrote
the message?) and verification of integrity of the message (Has the message
been tampered with during transmission?).
Encryption is the transformation of information from readable form into some
readable form.
Decryption is the reverse of encryption; it's the transformation of encrypted
data back into some intelligible form.
1 ATMs
2 Debit transfers (utility payments)
3 Credit transfers (corporate payouts)
ECS
PoS
4 Home Banking/ PC banking
5 Internet banking/ Anywhere banking
6 Tele-banking/ Mobile banking
7 Credit/ Debit cards/ Smart cards / Gift cards
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1 Appeal from order of Adjudicating Officer to Cyber Appellate Tribunal and not
to any Civil Court
2 Appeal from order of Cyber Appellate Tribunal to High Court
3 Act to apply for offences or contravention committed outside India
4 Power of police officers and other officers to enter into any public place and
search and arrest without warrant
5 Constitution of Cyber Regulations Advisory Committee who will advice the
Central Government and Controller
MICR
Magnetic Ink Character Recognition technology is very popular world wide and in
this system, the instrument such as cheque, draft, pay order, gift cheque,
traveler cheque etc. can be read directly without the need for transcribing the
data on punch cards or paper tapes.
The information is printed on the instrument with special ink, which is made up
of magnetic material. On insertion of instrument in the machine, the printed
information is magnetized and read by the machine.
The MICR system is beneficial as the chances of error are minimized, transfer of
funds becomes faster, clearing becomes easy and burden of manual work is
reduced.
Pay Roll: Log in CBS through HCUMM, Go to personal details of HCUMM tab
see/enter EC No of the staff. Get it verified by another officer. For every
operative account and loan account Customer ID should be the same as entered
above .If you want to modify the customer ID use menu option CCA (Change
Customer ID of Account). Get the modification verified by another officer.
and distribute the same to respective CBS branches for onward download
/access at their end as per their requirement.
NetCAST is a utility for centralized generation of reports/downloads and
distribution of the same to the respective CBS Branches. It addresses the issues
related to report generation activity besides saving considerable amount of man
hours involved at the branch level.
Mobile Banking:
Mobile Banking may simply be defined as undertaking banking transactions
using mobile phones by bank customers that involve credit / debit to their
accounts. Mobile phones as a medium for extending banking services have offlate been attaining greater significance, with the rapid growth in the number of
mobile phone subscribers in India, banks have been exploring the feasibility of
using mobile phones as an alternative channel of delivery of banking services.
Some banks have started offering information based services like balance
enquiry, stop payment instruction of cheques, transactions enquiry, location of
the nearest ATM / branch etc. Acceptance of transfer of funds instruction for
credit to beneficiaries of same / or another bank in favor of pre-registered
beneficiaries have also commenced in a few banks.
Transaction limit: Banks are now permitted to offer this service to their
customers subject to a daily cap of Rs.50,000/- per customer for both funds
transfer and transactions involving purchase of goods/services. Presently, such
transactions are subject to separate caps of Rs.5000/- and Rs.10000/respectively.
Technology and Security Standard: Transactions up to Rs.1000/- can be
facilitated by banks without end-to-end encryption. The risk aspects involved in
such transactions may be addressed by the banks through adequate security
measures. Some banks have developed their own software for providing mobile
banking facility but for providing safer facility, a mobile handset should be
enabled with any established support system like, Jawa, Windows, Blackberry,
Brew etc.
products or services. IPG shields the business unit from complex technical
infrastructure required for e-commerce business. It provides necessary access to
payment system including Interchange agencies like Master/Visa, card issuing
bank, settlement bank etc.
It is essential for retailers who have an online presence and are interested in
selling their products over Internet. IPG is sate & ensures encryption of sensitive
card information during secured transmission between customer, merchant and
payment processors.
How it works?
Operations team is setup to enroll suitable merchants, provide assistance in
configuring secured access, arrange for day-to-day processing & settlement
with Master Card/Visa and carry out associated reconciliation
Software installed at merchant site, will enable them to track transactions and
generate reports at their end
Merchant will get payment on the next working day in their designated account
Facilitate our merchants to securely accept payment, for their online/web based
sale, using Credit/Debit cards
Accept Master Card/Visa credit/debit card issued by any institution
Merchant instantly gets confirmation of the receipt of payment. Based on that,
goods/services can be delivered to consumer
Implemented latest industry standard security features viz. Verified by Visa,
Master Card Secure Code, two factor authentication, 128 bit SSL, continuous
monitoring of server for vulnerability etc.
Benefits of Baroda e-Gateway for customers
Merchant is shielded from installing and maintaining complex payment gateway
technology and interacting with payment systems.
Payment is received on the next working day in merchant designated account.
Merchant can view/print their transactions.
Simple interface with banks system. If needed, support would be provided to
configure the access.
Consumer is assured of safety of their card details/usage. In addition, they get
convenience of purchasing goods/services from the comfort of their
home/office.
Round the clock, hassle free service. Create a tech savvy image for merchant.
Opportunities
Fast and emerging market in India, so branches should generate maximum
leads.
Ability to move into new market segments that offer better profits.
customers with large volumes of transactions are the target group for BCMS.
Baroda Cash Management Services also facilitates Internet Based Transactions.
Operational Model of BCMS is consisting of 3 tiers as listed below:1. Data Centre
2. Central Operational Hub (COH)
3. Identified BCMS Branches / City Back Office / Service Branches
BCMS has three fund management modules, viz., Collection, Payment & Liquidity
Management and a front-end interface available to the customer through the
Internet.
Collection Module The Collection Module handles all inflow of funds in
customers accounts, which can be by way of
Cash Deposit
ECS ECS-debit
Issuance of DD / BC
Issuance of DW
Liquidity Management Module This module facilitates sweeping of funds
from various accounts of the customers and pooling them in a single account
called Concentration Account. The funds available in this account help the
customers in online decision making. The Liquidity Management Module also
facilitates funding of various accounts as per the requirement of the customers
out of the balance available in the Concentration account. The Liquidity
Management Module facilitates both sweep-in and sweep-out from the
Concentration account.
Invoice management