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idf

IDF FINANCIAL SERVICES


PRIVATE LIMITED
Regd Office: #49 (Old 590), 21st Main, 32nd Cross
Jayanagar 4th T Block
BANGALORE 560 041
Admin Office:
# 81, Bhushan Nilaya, 3rd
Main, 10th Cross,
Manjunatha Colony, Shivagiri,
DHARWAD 580 008
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IDF : Financial Services Pvt Ltd


HR Manual

(With amendments up to 31.12.2014)

Contents
Preface........................................................................................................................ 1
1.

2.

Recruitment............................................................................................................ 2
1.1.

Man Power demand estimates............................................................................ 2

1.2.

Creation of Job Description................................................................................. 2

1.3.

Advertising for candidates..................................................................................2

1.4.

Shortlisting candidates....................................................................................... 2

1.5.

Recruitment cum Interview process.....................................................................2

1.6.

Post recruitment formalities................................................................................ 3

Training / learning and development...........................................................................4


2.1.

Identification of Skills......................................................................................... 4

2.2.

Gap Assessment and Analysis............................................................................4

2.3.

Training Calendar.............................................................................................. 4

3.

Compensation and Benefits...................................................................................... 6

4.

Employee Motivation and retention............................................................................ 7

5.

Performance management........................................................................................ 9

6.

7.

5.1.

Goal Setting..................................................................................................... 9

5.2.

Appraisal Structure, Format and Schedule............................................................9

5.3.

Incentive Structure and Career Development........................................................9

5.4.

Job Descriptions............................................................................................... 9

5.5.

Promotion Policy............................................................................................. 18

General Office rules of conduct, leaves and reimbursements.......................................19


6.1.

Employee etiquette and Dress code...................................................................19

6.2.

Working timings and attendance........................................................................19

6.3.

Code of Conduct............................................................................................. 20

6.4.

Leave policy................................................................................................... 20

6.5.

Reimbursement policy..................................................................................... 23

Employee Separation............................................................................................. 24

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7.1.

Disciplinary Action........................................................................................... 24

7.2.

Misconducts:.................................................................................................. 24

7.3.

Punishment for Misconducts:............................................................................25

7.4.

Procedure for Awarding Punishment:.................................................................26

7.5.

Suspension Pending Enquiry:........................................................................... 26

7.6.

Right to Appeal:.............................................................................................. 27

7.7.

Appellate Authority:......................................................................................... 27

7.8.

Retirement/Superannuation:............................................................................. 27

7.9.

Termination Of Employment By The Employee:...................................................27

7.10.

Provident Fund:........................................................................................... 28

7.11.

Gratuity:..................................................................................................... 28

7.12.

Transferability:............................................................................................. 28

7.13.

Matter Not Covered under the Companys Service Code....................................28

7.14.

Service of Orders Notices, etc:.......................................................................28

7.15.

Exit Interview............................................................................................... 28

Annexure.................................................................................................................... 29
Annexure 1: Leave Application................................................................................... 29
Annexure 2: Personal Data Form................................................................................ 30
Personal Data Form.................................................................................................. 31
Annexure 3: Joining Letter......................................................................................... 32

IDF:FSPL Staff Service Regulations


200933

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Preface
Human resources manuals are primarily used to provide managers with a systematic approach for
handling human resources-related activities to ensure company policies are enforced. It is designed to
define policies and procedures that support basic management philosophies, outline company rules and
requirements, clarify the companys expectations of its employees, and describe lines of authority and
levels of responsibility.
The contents of this manual should be fully understood by all staff members.

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HR Manual

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HR Manual

1. Recruitment
1.1.

Man Power demand estimates

The requirement of manpower for each position would be decided based on the targets set for the current
financial Year. As any employee is expected to take three months before reaching the desired productivity
level, the recruitment process starts at least four months before the desired date. Based on the annual
business targets, every department would estimate the demand for manpower for the year (made monthwise/quarterly) and it is sent for approval to the HR department. The HR departments word stands good
for the final man power count.

1.2.

Creation of Job Description

Each department (originating department) would create the desired job description for the open positions
and it would be shared with the HR department. The qualifications, experience and other background
required by a candidate would also be shared. The HR department would then finalize the job description
as well as the number of vacancies after discussing with the originating department.

1.3.

Advertising for candidates

The candidates would be sourced for open positions through employee referrals or from amongst the
walk-in resume lists first. The existing employee referral system would not only ensure right fitment
(technical and personal), but also helps in reducing the cost and time associated with recruitment.
The second mode of sourcing applications would be through advertisements in leading local dailies,
campus recruitments, and job portals like www.microfinancegateway.com; www.microfinancehobs.com;
www.jobsforgood.com when the first mode of sourcing fails to provide the requisite number of staff
members. The advertisement would contain the following information.

Brief about company, its operations, scope for selected candidates


Post required
Job description for different posts
Eligibility for different posts
Date of recruitment
Venue of recruitment
Documents required (along with Xerox copies)
Time of recruitment (Reporting time and recruitment completion time)

1.4.

Shortlisting candidates

When the deadline for applications from advertising and word of mouth has expired, the HR department
would create a shortlist of promising candidates to attend the written test cum recruitment interviews. If it
seems likely that too few potential candidates will respond to the advertisement, an executive decision to
extend the deadline or reconsider the advertising strategy needs to be taken.

1.5.

Recruitment cum Interview process

Selection of the place (district, taluk) where recruitment will take place is crucial. In selecting a site, a
balance needs to be struck between proximity to the area of operations and the availability of candidates.
Recruiting in an area very close to the area of operations will result in a workforce with a good cultural

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HR Manual
understanding of their clients. On the other hand, it may be difficult to find enough candidates with the
required level of education and experience in an impoverished or rural area. The ideal location for
recruitment is often a city or large town fairly near to the proposed area of operations.
Criteria for choosing a recruitment venue are:
For Head office / Administrative office recruitments, the interviews take place at the head
quarters.
The area (district, taluk) should have large number of qualified people who can turn up for the
recruitment.
The area should be easily accessible by road, rail, etc. from the area where the information
about the recruitment has been disseminated and from neighboring areas from where potential
applicants can come.
Arrangements at the recruitment building:
The venue should have capacity to accommodate all the applicants
The venue should have 2-3 rooms for doing preparatory paperwork like arranging question
papers and marking tests.
The venue should have proper lighting, ventilation and electricity.
The venue should have access to rugs, carpets, etc. which can be spread on the floor for taking
written test and group discussion. Also arrangements for chair, etc. should be done prior to the
recruitment.
The following materials would be arranged at each recruitment venue.
Test papers along with set of answer keys to be used for short listing the persons
Topics for group discussion
Checklist for conducting the interviews
Spreadsheet for managing recruitment process
Laptop/PC for entering test data and for short listing candidates.
Printer compatible with the laptop/PC
Those who qualify in the written tests would be required to undergo a process of interview. The
interviews would be conducted by a pre-selected panel of reasonably senior level functionaries of the
organization. After the interview process, announcement of the list of final selected candidates would be
made within 10 working days. Trainee selection/appointment letters containing date, venue and time of
reporting would be sent to the candidates whose reference check reports are satisfactory and they are
expected to send back within 8 working days the letters duly signed if they accept to join.

1.6.

Post recruitment formalities

Appointees that accept the offer must sign in the appointment offer letter at the appropriate place on the
duplicate copy, and return it to the designated person by the required date. Otherwise, offer of
appointment lapses. Upon receipt of the signed offer of appointments and the signed Staff Undertaking,
the HR department will instruct the Accounts Department in writing to add the new staff member to the
pay roll. Without this instruction no payment of salary/benefits can be made.

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HR Manual

2. Training / Learning and Development


2.1.

Identification of Skills

The first step of training/ learning and development is to clearly describe the job responsibilities of the
various positions which are arrived at from the job profile description. It is also important to prepare a
template of required skill sets across designations.

2.2.

Gap Assessment and Analysis

This step consists of identifying gaps between the existing and required skills sets of employees across
job responsibilities. Once identified, the gaps would be graded based on its importance in executions of
primary roles and responsibilities of the employees. The gaps that are critical to the execution of the
employees job function are to be given priority while preparing the training calendar.

2.3.

Training Calendar

A training calendar is to be prepared based on the results of the earlier two steps. This calendar will
consist of the key training requirements across designations and a schedule to conduct the same. The
results of the various trainings should reflect in the subsequent gap assessment and analysis of
employees undergoing training. The Training requirements for Credit officers, Assistant Branch
managers, Branch/Area/Senior Managers, etc., are as follows:
Background Information
1. Scenario of Indian rural Finance and role of banks, cooperative and other financial system in meeting
the credit need of the rural/urban poor. Need for alternate financial service provider and their role in
meeting the financial need of the poor.
2. Understand the cash flow and sources of credit and saving of the prospective clients
3. What is microfinance? Various Models of microfinance delivery e.g. SHG model, JLG model and
individual model, Other FAQs such as why MFIs charge comparatively high rate of interest than
banks
4. Introduction to the MFI
5. Introduction to Operation Manual
6. Roles & responsibilities of CROs/ABMs/BMs/Area Managers etc.
7. Knowledge about competition in the area of operation, competitors, their products & services.
Group formation and Maintenance
1.
2.
3.
4.
5.
6.

Identification of Members
Motivation and community mobilization for group formation
Group and Cluster Formation Procedure and guidelines to form quality groups & clusters.
Group dynamics, joint responsibility, repayment ethics, discipline and conduct of meetings
Group Assessment: Its importance, methodology and documentation
Conduct of periodic SHG meeting its importance and points to be kept in mind in SHG & Cluster
meetings
7. Books, Cards, Registers and accounts to be maintained by the Groups.
8. Training modules for the SHGs/Clusters/Federation Advisory Committee members
Pre-loan Stage

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HR Manual
1.
2.
3.
4.
5.
6.

Loan Application procedure & documentation, Credit need analysis, Understanding of loan product.
Loan disbursement, Documentation, Procedure and check points
Meaning of Declining Rate of interest and flat rate of interest and its calculation
Repayment period, EMI, upfront charges.
Insurance premium and its coverage.
Credit bureau linked activities

Post-loan Stage
1. Loan Utilization
2. Portfolio Quality I: Delinquency Management, What is Delinquency, Why members default, Types Of
Delinquency, Measures to check Default, Availing services of Clusters/SHGs in recovery
3. Portfolio Quality II: Repayment Rate its meaning and calculation, Arrears - its meaning and
implication, Portfolio at risk- its implication and method of calculation
4. 100% attendance of SHGs in cluster with repayments. Weekly/Fortnightly meeting proceedings
5. Cash collection in clusters & cash handling, use of hand held machines, issue of receipts etc.,
Others
1. Credit plus activities, IGA training, participation in local social works / community benefit works such
as Pulse polio, school, Anganawadi admission to children, Independence day celebrations etc.
2. Bank remittances, and precautions in handling cash.
3. Basic computer training to fill in MIS, etc
4. Use of Mobile technology
5. Introduction to Salary and Incentive Structure
6. Code of Conduct prescribed by Sa-Dhan/AKMI, RBIs Fair Trade Practices, etc.
7. Interim Exam/ Tests during training
8. Exit test.

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3. Compensation and Benefits


The compensation and benefits will be based on the performance of the employees as well as the
statutory requirements of the state as prescribed from time to time which includes The Minimum Wage
Act. The board would be revising the compensation structure periodically keeping the developments in
the industry and the profitability and sustenance of the company.
Employees will be initially hired as trainees for a period of six (6) months and will then be on a
probationary period for twelve (12) months.

During the training period, they will be paid monthly

consolidated stipend as decided by the board. During probationary period and on confirmation, they will
be paid monthly salary which may include some or all of the following components:
1. Basic pay
2. Variable Dearness Allowance
3. Special Allowance
4. House Rent Allowance
5. City Compensatory Allowance
6. Mobile allowance
7. Performance-linked Variable Pay
8. Performance-linked Travelling expenditure
Employees who are on probation or confirmed who are on salary would be required to contribute towards
Provident Fund and Employees State Insurance or any other insurance scheme introduced by the
Company for the welfare of the staff members. The company would also contribute towards the Provident
Fund and Employees State Insurance or any other health insurance scheme in lieu thereof as may be
decided by the board.

The confirmed employees would also be eligible for Gratuity, Bonus and other

statutory benefits.

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HR Manual

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4. Employee Motivation and Retention

According to a survey, 25 to 30% annual employee turnover rates are the direct result of bad hiring and
bad treatment of employees. Keeping an existing customer is significantly less expensive than trying to
gain a new one
The same theory can be applied to retaining productive employees. Three most important issues in
employee retention are - cost, causes and consequences of losing an existing employee.
Following are some of the measures to improve retention Employee Development by company:
o Promoting within the company, if possible, rather than bringing in new people.
o Sending employees to a workshop/conference/convention and add an extra day off while
attending such programs.
o Cross training. It allows employees to expand their knowledge of the company and
strengthen the team. It also provides a great back-up plan.
o Consider lateral moves as an effective way to demonstrate employee movement.
o Buying special tickets to sporting and cultural events and use them as rewards. Encouraging
& sponsoring staff with exceptional talents to sports/cultural competitions & events.
o Arranging short excursions or picnics to places of general or professional interest
o Encourage staff to pursue education of their children; provide fees, other expenses, honour
meritorious children passing SSLC, PUC or Degree.
o Recognition of Best Staff through introduction of appropriate schemes
o Organizing Annual Family Get-togethers.
By reporting Managers:
o Attitude/ Behavior (Proactive)
Identify (aims/goals/problems)
Discuss (solutions)
Design (solutions)
Implement
Feedback/Monitor
Iterate
o Creating a Motivating Environment: Team leaders who create motivating environments are
likely to keep their team members together for a longer period of time. Motivation does not
necessarily have to come through fun events such as parties, celebrations, team outings etc.
They can also come through serious events e.g. arranging a talk by the VP of Quality on
career opportunities in the field of quality. Employees who look forward to these events and

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HR Manual

are likely to remain more engaged, Expressing appreciation with a handwritten note,
specifically focusing on what a great asset they are to the company.
Standing up for the Team: Team leaders are closest to their team members. While they need
to ensure smooth functioning of their teams by implementing management decisions, they
also need to educate their managers about the realities on the ground. When agents see the
team leader standing up for them, they will have one more reason to stay in the team.
Providing coaching: Everyone wants to be successful in his or her current job. However, not
everyone knows how. Therefore, one of the key responsibilities will be providing coaching
that is intended to improve the performance of employees. Managers often tend to escape
this role by just coaching their employees. However, coaching is followed by monitoring
performance and providing feedback on the same.
Delegation: Many team leaders and managers feel that they are the only people who can do
a particular task or job. Therefore, they do not delegate their jobs as much as they should.
Delegation is a great way to develop competencies.
Extra Responsibility: Giving extra responsibility to identified employees is another way to get
them engaged with the company. However, just giving the extra responsibility does not help.
The manager must spend good time teaching the employees of how to manage
responsibilities given to them so that they dont feel overburdened.
Focus on future career: Employees are always concerned about their future career. A
manager should focus on showing employees his career ladder. If an employee sees that his
current job offers a path towards their future career aspirations, then they are likely to stay
longer in the company. Therefore, managers should play the role of career counselors as
well.

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5. Performance Management
5.1.

Goal Setting

This section comprises of the goal setting process. Goals across a few broad parameters such as
financial, organizational, operational, HR and governance and personal shall be prepared for each
employee in consultation with their reporting managers at the beginning of the year (or at the time of
joining in case of new employees). Weightage of each goal and its contribution to overall performance
management shall be made clear to both the employee as well as the manager. Personality development
goals are also given suitable weightage.

5.2.

Appraisal Structure, Format and Schedule

The process of performance appraisal would be made clear to all employees. An annual self-assessment
would be carried out by each employee. A two-tier managerial assessment shall be carried out after the
employees self-assessment. A final assessment that incorporates an employees self-assessment and the
respective managers assessment shall be computed.
Format: A format for performance appraisal would be developed wherein all relevant information
pertaining to employee performance is captured.
Schedule: A schedule for carrying out performance appraisal would be prepared at the beginning of the
year. Reporting managers would be assigned to all employees. The time lines for appraisals would also
be finalized at the beginning of the year.

5.3.

Incentive Structure and Career Development

Career Development, Promotions, and incentives to the employees would be dependent on the
performance of the employees in relation to the growth, profitability, paying ability and the needs of the
Company. Performance appraisal reports shall form the backbone in deciding the above matters. The
Company may introduce a system of payment of variable pay based on the performance of the individual
staff members. Incentives and promotions for the ensuing year shall be decided by the Board based on
the financial results of the immediate previous financial year.
The first step of training and development is to first clearly describe the job responsibilities of the various
positions which are arrived at from the job profile description. The following are the job responsibilities
relating to the various positions in the organization.

5.4.

Job Descriptions

I.

Chief Operating Officer / General Manager

In-charge of the overall operations responsible for planning the business, implementing and
achieving overall business targets in terms of disbursements, portfolio outstanding and PAR of 0%
COO should oversee that the AO completes all the back office work and sends reports timely.
COO should see that the MIS is updated regularly by all departments in HO/Admin. office
COO spends most of his time in the field (spending at least 2 days/week in field) for surprise visits to
establish and maintain good practices in executing the business and achieving the results.

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COO is also responsible to report to Chairman/MD on all matters felt necessary from time to time.
The COO supervises the Regional & Area Managers/Heads of HO Depts/Heads of Admin. Office
Depts. and has to approve their reimbursements.
The COO should receive weekly reports from RMs/AMs, HO & Admin office heads, their planned and
actual supervisory activities, including copies of their surprise Area office and field Visit Reports that
require his attention.
In cases of serious violation of operating procedures as described in the Operations Manual, the
COO should schedule as soon as possible, a surprise visit either by himself or by Heads of
concerned depts. to the concerned Area office/operational area to ensure that corrective action has
been taken.

II. Deputy General Manager (DGM)

Responsible for supervising and guiding the Area Managers in implementing/executing the policy
decisions of the company.
Chair all meetings conducted in the Area office convened by Area Manager.
Act as one of the signatories for operation of bank accounts; ensure brisk operations and
reconciliation of the accounts.
Manage the funds of the company and the SHG Federations efficiently.
Review repayments/disbursements on a daily basis.
Devote at least two days in a week for field (clusters) visits and office visits.
Liaison with the LDM / NABARD DDM / District & Taluk officials such as the DC, Tahsildar, EO,
CDPO, Police Department, etc., and also the leading personalities.
In case of serious violation of operating procedures, the DGM should schedule visits immediately and
report to concerned chief of HO /Admin office about corrective action taken.
Review of Audit reports and attention to serious irregularities.
Ensure proper and timely sanction of loans / disbursements.
Ensure timely submission of returns.
Ensure 100% repayments and collection of Savings.

III. Area Manager (AM)

As the Head of the Area Office, he shall be responsible for all of the administrative and operations
related work in the command area of the Area office.
Preparation of Business plan, its implementation, and achieving all targets such as SHG formation,
Financial linkages, 100% on time repayments and Federation savings.
Shall undertake field visits at least on 3 days in a week and visit Branch offices and clusters.
Ensure successful functioning of CRO / Branch offices.
Ensure discipline among all staff members in the area of operation.
Timely submission of returns to HO/ Admin office.
Timely submission of audit rectification reports, attending / taking corrective steps for the serious
irregularities noticed/observed.
Daily review of repayment / credit to bank accounts
Expansion plan, working out staff requirement, undertake selection process with help from HRD.
Liaison with the LDM / NABARD DDM / District & Taluk officials such as the DC, Tahsildar, EO,
CDPO, Police Department, etc., and also the leading personalities.
Timely disbursement of salaries and other benefits to staff.
Maintenance of proper accounting of administrative expenses, Project advance and submission of
accounts to Admin. Office.
Shall act as the Chief Executive Officer of the SHG Federation.

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Must keep vigil and take immediate action over detected frauds/irregularities by staff and inform the
same to the concerned departments at HO / Admin office.
To ensure maintenance of the furniture and other items like computers etc. at the Area office and
other subordinate offices and keep them in good working condition.
To ensure that the office premises is maintained in clean and good condition.
To update/keep a track over the various agreements with landlords etc. and ensure that proper timely
action is taken to avoid any inconvenience for proper functioning of the office.

IV. Branch Manager

To keep track on daily basis:


- Holding of cluster meetings and attendance in cluster meetings.
- Collection of Repayments/Savings against demand in the clusters & ensure100 % collection.
- Further tracking & initiating appropriate actions in case of SHGs in default; follow up with
CROs, ABMs, etc.,
- Keeping track of collected repayments/savings and ensuring timely remittance to proper bank
accounts / safe keeping in office; Bank account reconciliation.
- In case of need, make arrangements to lift cash, transport to Area office and ensure its safety.
- Consolidation of data and reporting to AM/RM/COO/MD/Chairman.
- Renewal of insurance for 2nd cycle members.
To keep track of disbursement of loans
- Ensure disbursement of loans to sanctioned SHGs on the same / next day
- Ensure safety of cash while carrying from bank branches to Branch office.
- Ensure holding of special meetings.
Visit CROs area of work / groups
- Undertake field visit for a minimum of 3 days in a week either by surprise or informed visit.
Avoidance and control of Frauds / Misappropriations
- Comparison of cash repayments on day to day basis with previous month / demand basis.
- In case of variations in collections, discuss with concerned CRO/ABM and visit such areas.
Audit compliance:
- Supply of hard copy of audit report to ABM/CRO
- Guide ABM/CRO in attending to rectification and ensuring timely submission of rectification
reports.
- Initiate corrective action in respect of serious irregularities observed in the audit report
Preparation and submission of periodical monitoring & financial reports / statements on behalf of the
Area office.
To report to the Area Manager and work under his direction on all matters from time to time.

V. Asst. Branch Manager (ABM)


Guide, monitor and supervise the functioning of CROs.
Review the progress of CROs in the functional areas of the branch.
Keep track of dates of SHG meeting, get them diarized in the diaries of CROs and track/follow up the
conduct/attendance of the meetings.
Obtaining the diaries of CROs and visiting their offices/areas (by surprise/informed)
During the weekly review meetings, prepare a list of SHGs to be given loan during the month, verify
the assessments made by CROs and take necessary steps to ensure that the loans are disbursed in
time.
Verify the loan applications and forward the same to Area offices with his/her recommendations.
Ensure that the CROs disburse the loans to the SHGs within the time frame stipulated by the
company.

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Visit and review 10% of the newly formed SHGs and SHGs to whom loans have been granted (attend
10% of the cluster meetings). This visit and review is very important.
Maintain details of and liaison with Peoples representatives, social workers and CROs in the area /
taluk.
Ensure that the CROs organize at least 4 non-credit related programs per year
Providing data to and maintaining liaison with the Governing council members and Advisory
committee members of SHG Federation.
Organize CRO level Advisory committee meetings, review progress and accept recommendations.
Ensure & take steps to disburse 100% of the loans sanctioned as well as 100% recovery in the
cluster meetings itself.
Visit along with CROs and Review the cases of SHGs which have not been given loans and take
decisions regarding their up gradation / continuance.
Wherever there is delay in granting of 2 nd cycle loans, find reasons and solutions to overcome the
problems, if any and ensure disbursement of loans to such groups (if groups have not created
problems in repaying the first cycle loans.)
Submit a brief report after every weekly review meetings.
Ensure that insurance cover is provided. Particular attention to be given to renew insurance cover for
the second year in respect of groups to whom 2 nd & subsequent cycle loans are given.

VI. Credit Officer (CRO)

Prepare & maintain the survey reports of new areas, discuss with BMs and arrive at proper decisions.
Maintain registers to record details of Cluster wise and SHG wise loan disbursements & repayments
details, and Insurance details.
Maintain particulars of Savings & loan repayments cluster wise and SHG wise and obtain signatures
of Cluster representatives.
Important Duties:
Verification of SHGs formed, registration with the SHG Federation, and then only include the same as
progress.
Train SHGs during the verification on aspects like Clusters, Federation, Savings and Credit.
Conduct weekly progress review meetings, draw up visit plans for the ensuing 6 days and implement
the same.
Compulsorily attend Cluster meetings. Plan to visit the SHGs in conjunction with cluster meetings.
Decide in advance which areas/groups to visit.
Plan and list out the groups to be granted new loans/2 nd and subsequent cycle loans in the next 3
months. Ensure that such groups get loans in time and ensure that such groups pass proper
resolutions, maintain books properly and proper recommendations are made.
Before taking up assessment of groups, make a proper study of the SHG file and if any deficiencies
are found, intimate the SHG beforehand to rectify and take up assessment on the next day itself.
Ensuring that loans are disbursed within 6 days of completing the assessment is desirable.
On the day of assessment, re-train the group/members on Micro credit.
Attend cluster meetings and visit groups in that area in conjunction with cluster meetings and take up
Assessments to ensure problem free disbursements / visits.
Pay proper attention to all details while submitting loan applications for sanctions and while
disbursement of loans.
Disburse loans in a Special meeting in the presence of Cluster representatives Monitor the
attendance of the members in the SHG meetings.
For loan disbursements, ensure that all members attend the Branch at the time fixed.
Collect savings / loan repayments, enter the same in the cluster proceedings register and obtain a
copy of the same. Enter savings/repayments in the cards issued to members.

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Collection of cash recoveries is the duty & responsibility of the CRO. They shall be responsible for
any deficiencies/deviations in this regard.
Ensure that the SHGs/Clusters organize at least 4 non-credit programs per year.
Compulsorily observe anniversary day celebrations of SHGs and Clusters.
Provide insurance cover and information about insurance to SHGs.

VII. Heads of Departments in Regd.Office (RO) & Admin.Office (AO)

Besides routine work in RO/AO, all Heads either in RO/AO to attend:


The functions of COO (Till a COO is appointed)
Oversee the work of Area offices and visit all offices periodically and submit report to
COO/MD/Chairman.
Obtain necessary data from DGMs/AMs and submit the same to COO/MD/Chairman.
Visit all Area Offices once in a quarter, visit at least one Branch office and one CRO area of each Area
office. Once in a half year, assess their department situation and other operational work.
Attend to any violation of operating procedures and report to COO/MD/Chairman.
Expenditures pertaining to Heads of Departments and other staff at RO to be sanctioned by Head:
Accounts Dept. and at AO by the concerned departmental heads and submitted to Accounts
department for payment.
Prepare Board Notes of their concerned departments either for sanction/approval/new policy matters.
Timely submission of returns and compliance pertaining to ROC/RBI/NABARD/EPF/ESI/Labour
department pertaining to their departments.
a. Head Accounts/Finance Department
Financial Performance of Company
a. Achieve Return on Equity and PAT Margin as planned
b. Achieve planned Growth rate on Loan Portfolio and PAT
c. Setting up of better analysis support systems

Accounting
d. Timely and accurate accounting
e. Successful closure of Books of Accounts
f. Improvisation of accounting processes

Regulatory and Legal Compliance


g. Regular reporting to RBI/ ROC
h. Successful Financial compliance
i. Successful Legal compliance

Credit, MIS and Bad debt Management


j. Timely and accurate MIS reporting
k. Better Credit risk management
l. PAR minimization and bad debt recovery
m. Improve existing Credit, MIS Processes and Policies

Cash and Treasury Management


n. Efficient Asset Liability Management
o. Efficient Cash Management
p. Improve cash management practices

Governance and External Relationship management


q. Effective contribution towards Management Decisions

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r.
s.

Effective Handling of the reporting team and Colleagues


Improve relationships with Bankers/Funders/Investors

Personal Development
t. Improve Personal skills and abilities in Finance
u. Improve Personal skills and abilities in Non Finance Domains
v. Improve personal traits and behaviors

b. Head HRD
Determine the Companys current and future staffing needs.
a. Communicate with staff managers on staffing requirements and help to identify potential
internal candidates for promotion.
b. Lead the senior management in succession planning.

Manage the administration of HRM and Corporate policies.


c. Ensure that the Company has current and appropriate HRM policies in place, and is in
Compliance with all applicable human rights and labor laws.
d. Distribute HR M policies and train staff on policies and procedures.
e. Provide guidance and support for staff managers decisions in applying HRM policies.
f. Ensure current and accurate records for each employee are kept on file.

Manage the Companys compensation strategy and process.


g. Ensure appropriate systems and tools are in place including a Salary Administration
System, benefits and an Incentive Scheme.
h. Oversee and coordinate the annual salary increases and support managers in salary
decisions; review all salaries to ensure equity and fairness.
Oversee the recruitment and selection process.
i. Ensure an appropriate recruitment and selection process is implemented, and where
necessary, staff and managers are trained on following this process.
j. Maintain a candidate database by entering new resumes, purging old files, and searching
for qualified candidates to fill employment openings.
k. Plan and coordinate terminations with staff managers as necessary.

Oversee the Performance Management Process.


l. Develop and implement a staff Performance Management Process (PMP), support staff
managers as necessary in using the PMP.
m. Review each year-end appraisal to monitor overall performance and trends in [the MFI].

Oversee the training and development programs.


n. Develop institution-wide training and development initiatives as appropriate.
o. Support managers and staff in preparing personal development plans and provide
strategies to reach their development goals.
p. Support each staff manager with the necessary skills for effective staff management.
q. Create a plan for new staff orientation including content and schedule. Ensure staff
receives introduction to [the MFI]s history, philosophy, policies and structure; and support
managers to train new staff on specific location and job details.

c. Technical Staff (EDP)


Overall in charge of MIS
Proper maintenance of software and hardware, including timely insurance of assets.
Updating MIS on a regular basis.
Timely submission of all types of MIS related returns.

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Periodical visits to MIS installed offices and ensure smooth entry of all data.
Attending to matters pertaining to MIS and such other related matters on a timely basis.
Taking back up of MIS regularly and keeping the same in the custody of MD or other designated
officers.
Take regular back up in hard disc.
Regularly attend to the e-mails and inform the concerned sections.
d. Audit Department

Audit & Inspection Head / Manager


1. Design and bring out a training and reference manual on Audit & Inspection.
2. Put in place a team for undertaking regular audit & inspection.
3. Draw up a schedule/calendar for the same and obtain approval for the same from the higher
management.
4. Train the team members in undertaking audit & inspection.
5. Devise necessary formats/ checklists needed to undertake audit & inspection.
6. Sensitizing the staff members of various units/offices on the aspects which need their special
attention from audit & inspection angle.
7. Participating in various training programmes as faculty and educate them on the need for internal
audit, timely attending to the audit observations, timely closure of the audit report, how to attend
to the audit queries, etc.
8. Bringing the serious irregularities to the notice of the senior executives including the Head of HRD
for taking appropriate action
9. Evaluate the performance of the field level personnel based on the critical parameters of the
audit checklist and assign grades to each of them.
10. Develop risk management strategies for Loan Portfolio Management.
11. Establish & document best practices for Loan Portfolio Management.
12. Identify and take steps to reduce all types of risks including reputation risk, fraud, operating
errors, human resources related risk, cash transit risk, systems failure risk, etc.
13. Bringing the serious lapses involving monetary loss to the company to the notice of the HRD
head for initiating the disciplinary proceedings against the errant / fraudulent staff
14. Attending weekly review meeting to discuss action points and the relative progress on weekly
basis
15. Verify the Portfolio at risk and its calculation.

Auditors
1. To undertake and also to assist in regular audit and inspection of all the MFI operations at SHG,
Cluster and Federation level
2. To undertake and also assist in regular audit and inspection of all the MFI operations at Branch
Office, Area Office and at the company level
3. To provide regular feedback and report the developments relating to the audit at their respective
jurisdiction at the field level in the prescribed format
4. To monitor the compliance of the audit irregularities, rectification and closure of the audit report
for the relevant period
5. Create awareness among the staff members of various units/offices on the aspects which need
their special attention from audit & inspection angle.
6. Associate with various training programmes for the staff and highlight the deficiencies observed
from time to time besides suggesting suitable remedial measures.
7. Bring the deficiencies & loopholes observed, critical areas and remedial measures required to the
notice of the higher management for taking necessary corrective action.

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8. Give particular attention to check seepage of income and suggest appropriate measures to plug
the same.
9. To detect frauds and any misbehavior on the part of the company staff which may jeopardize the
interest of the company and bring it to the notice of the senior executives and the audit head for
taking appropriate action
Any other work as deemed necessary and assigned from time to time at the discretion of the
company
e. Senior Manager / Manager/ Officer in RO /AO
Assist their superiors and departmental heads in smooth functioning of the activities of their
departments.
Obtain, verify and update periodical returns from Area/CM offices and get the irregularities, if any,
rectified.
Process bills of revenue/capital expenditure and present the same to appropriate authorities for
approval and releasing payment.
Keep proper track over the Bank accounts of the company and reconcile the same at monthly
intervals.
Keep track over funds position and ensure that repayments to the funding agencies are made in time.
Process requests for fund requirements of various areas/offices and timely remittance of funds.
Prepare salary bills, disburse salary/fees as per schedule.
Ensure EPF, PT, TDS, Health insurance premium, etc., are deducted from the salaries/fees and
remitted to the appropriate authorities in time. Also submit the related returns to the concerned
authorities.
Keep track to increment dates and release increments/benefits to concerned staff in time.
Prepare and deliver Form No. 16 at the end of the financial year in respect of those persons from
whom income tax was deducted during the financial year.
Facilitate timely completion of statutory audit
Supervise and train the staff placed under them.
Any other duties assigned either orally or in writing by their superiors from time to time.
f.

Training College Head / Manager


Manage the administrative and academic affairs of the Training college
Prepare the Revenue expenditure budget for the financial year pertaining to the training college and
get administrative sanction for the same.
Prepare the Capital expenditure budget for the financial year pertaining to the training college and get
administrative sanction.
Prepare training plan on a Financial Year basis keeping the sanctioned budget in mind and break up
the same on a quarterly basis.
Ensure that all hand-outs, case studies, exercises, role plays etc required for the successful conduct
of the training batches are kept ready and in adequate quantities before the commencement of a
batch.
Ensure that all audio visual, electronic, and other equipments, furniture, fixtures, premises, taps, etc.,
are maintained in good and working condition.
Maintain proper accounts of all expenditures made and get sanctions for the same.
Make proper boarding and lodging arrangements for the trainees
Ensure nomination and attendance of employees to the training programmes, maintain statistical and
MIS information pertaining to training, submit brief post programme reports to the Admin & Registered
offices (HRD).

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Handling of sessions during the training programmes.


Invite associate and guest faculties to handle certain sessions when in-house capabilities to handle
certain sessions are not available.

XIII. Computer Operator / Data Entry Operator

Proper handling of computer systems and accessories.


Regular entry of data and review of daily receipts of vouchers and follow up.
Attending to reconciliation of MIS /Bank accounts / etc.
Proper maintenance of daily repayment vouchers, District wise / Taluk wise /CRO wise.
Attending to closure of accounts and taking back up on a daily basis.
Attending to all telephone calls of AM/BM/ABM/CROs and office staff of other offices and providing
required information.
Attending to inward and outward post/courier.
Attending to routine office e-mails.
Senior staff will be in charge of joint custodian duties and handling of cash, cheque books and other
security items.

XIV. Office Assistants / Drivers

Ensure cleanliness of the office premises, vehicles and equipments.

Ensure that clean drinking water is available to staff & guests

Neatly arrange all stationery, files, books etc, number & index them wherever
required, and maintain them in an orderly fashion

Ensure that all office equipments and vehicles are in a state of good repair and
in working condition

Arrange food, tea, snacks to the dignitaries, guests, trainees and visitors when
instructed to do so by the competent authority.

In general, provide all logistics support to the office

Carry out all reasonable orders of the higher authorities.

5.5.

Any other assignment entrusted either verbally or in writing.

Promotion Policy

The Promotion for the following level of employees would be based on one or more of the following
parameters:
1. Performance rating for two or more consecutive years as decided by the Board.
2. Potential as identified by the Area Office after conducting tests/ interviews besides performance.
3. Minimum Qualifications and experience expected for promotion:
Cadre
Minimum Qualifications
1.Operations:
a. Area Manager
Post graduation with computer knowledge
Graduate or degree not completed
b. Asst./Branch Manager
c. Credit Officer
SSLC / PUC / Graduation
2. Staff in Admin / Regd Office
a. Senior Manager
b. Manager / Auditor
c. Computer operator
d. Office assistant

Graduation / Post Graduation


Graduation
Graduation
SSLC / PUC

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6. General Office Rules of Conduct,


Leaves & Reimbursements
6.1.

Employee etiquette and Dress code

The Dress Code and Etiquette norms are important for ensuring that a respectable image of the
organization is always maintained and professionalism always reflected. All employees coming to work
should dress neatly and in a manner that would befit such an occasion. Smoking, consumption of alcohol
and/or any other intoxicating drug (other than the medicine prescribed by a registered medical
practitioner), chewing pan/pan masala/tobacco and gambling are strictly prohibited in the office premises.
Employees must maintain a clean and tidy office and a pleasant ambience. At the end of the day all
papers and documents should be kept in drawers/ cupboards and properly locked. Computers, fans,
lights, air conditioners should be switched off if they are not in use.

6.2.

Working timings and attendance

In order to facilitate sustainable and scalable operations, the office will open from 7:00am to 7:00pm from
Monday to Saturday. All employees shall sign the attendance register kept at the front office before
commencing work. For those on official duty outside the branch, they shall be marked as outdoor duty
(OD) beforehand. Employees shall put in a minimum of 8 hours of work per day.
Registered & Administrative Office Timings
Start Time
Monday to Saturday
10.30 AM

End Time
6.30 PM

Sunday

Holiday

Holiday

CRO / CM / AM offices
Monday to Saturday

Start Time
7.00 AM

End Time
7.00 PM

Sunday

Holiday

Holiday

All field staff (A/BMs & CROs) are required to be in the field for SHG/cluster meetings and repayments.
Any deviations should be reported to their immediate superior in advance.
On the last day of every month or any other day fixed for the purpose, total attendance for each
department and Area offices shall be collected. It should be checked and approved by the designated
Officer. Employees have to report to their work at times mentioned above and any delay beyond 15
minutes for a period more than four days in a month is treated as unauthorized absence.
Late sittings and use of office premises after office hours should have prior approvals from immediate
superior. The incumbent person(s) will be responsible for any loss of articles and misuse of
premises/goods.

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6.3.

Code of Conduct

This section covers the obligations of every individual that governs the organizations decisions and
actions.
All employees shall punctually attend to office at the time specified
Each employee has to restrict his/her position to their respective table and computer system. Any
change in positions and use of other systems is permissible only with prior approval from
immediate superior.
Employees should understand that excessive and loud talk can be disruptive for colleagues.
Individuals or groups engaging in such disruptive behavior will receive a warning and then
disciplinary action.
Employees are discouraged from making personal telephone calls. Personal phone calls should
be made only when absolutely necessary.
Newspapers, magazines and other journals etc. placed at the front office should not be carried to
the work area.
Gossip groups have no place in the organization. Anyone found engaged in such activities will be
warned for strict disciplinary action.
Keep your desktop/stationery in good and tidy condition and do not spread books, bags and other
material across the tabletop.
All employees are responsible for the proper use, protection and conservation of organizations
resources including organizations assets, properties, proprietary interests and information.
All computer data and software (MIS, etc.) are the organizations assets. Unauthorized use or
access is not permitted.
Employees should ensure that unauthorized software is not loaded on to computers.
Most important of all, a professional relationship should be maintained at all times with colleagues
and clients. Failure to adhere to this will be punished severely, and may result in immediate
dismissal.
Employees who are not sure whether certain situation or relationship constitutes a professional
conflict should discuss the situation with their immediate superior.

6.4.

Leave policy

Leaves are designed to allow all employees to have vacation, time off and meet other personal
obligations and confirmations.
Absenteeism
An employee is responsible for notifying the immediate reporting authority of his/her absence on any day
(along with reasons) and advising when he/she will report to work. Excessive absence would attract
disciplinary action, which may result in termination. The organization also reserves the right to terminate
any employee who is absent without information.
An employee is considered absent if he/ she is not present for work as scheduled, regardless of cause.
Employees will not be allowed to apply any leave for unexcused absences (to be decided by immediate
reporting authority).
Reporting authorities should give special attention to absence patterns (mentioned below) and report the
matter to their superiors:
- Absence the day before and/or the day after a scheduled holiday or unscheduled holiday.
- Absence the day after payday.

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-

Calling in sick regularly.

It is mandatory for an employee to call the reporting authority in advance and communicate if they are
going to be absent (in cases of emergency, at least by phone or a third person).
Leave cannot be claimed as a matter of right. Sanction of leave is always subject to exigencies of work
and managements discretion. No two types of leave may be combined.
Leave without pay can be availed either after Earned Leave has been exhausted or if Earned Leave
cannot be availed.
In all cases except Casual leave, intervening holidays/ weekly offs during the leave period will be
considered as leave, however holidays/ weekly offs at the beginning or end of the leave period are not
taken into consideration. For example if an employee applies for earned leave on Saturday and Monday,
the intervening Sunday will also be considered as a earned leave.
When leave is required for more than 3 days, the leave application should be submitted at least 2 weeks
in advance.
Casual Leave (CL)
1. Twelve days of Casual Leaves will be available per financial year.
2. Casual leaves cannot be combined with any other leave.
3. Maximum of 3 casual leaves can be taken at a time. Any leave after 3 days will be considered as
leave on Loss of Pay.
4. Casual leave cannot be encashed or carried forward.
Compensatory Leave (Comp. L)
An employee may be granted compensatory leave if he/she is required to work on a Sunday or a Festival
holiday. The immediate superior officer should give a letter to the employee asking him to work on a
holiday and should make it clear in the letter that he/she would be given a compensatory holiday on a day
of the choice of the employee. However, the compensatory leave will have to be availed within one
month from the date on which the employee had worked on a holiday.
Earned Leaves (EL)
1. Fifteen days of leave will be earned for every financial year (after training).
2. It will be credited to the employee on completion of one year of continuous service.
3. An employee can avail minimum of 4 days of earned leave at any one time.
4. Earned leaves can be accumulated upto 240 days and encashed once in a block of 4 years or may
be adjusted against shortfall in notice period or for recovery of dues, on a case to case basis.
Festival Holidays (FH)
1. Every employee is entitled to ten holidays in a year of which 5 are mandatory, which shall include (1)
1st May (May Day) (2) 15 th August (Independence Day) (3) 2 nd October (Gandhi Jayanthi) (4) 26 th
January (Republic Day) & (5) 1st November. The other 5 holidays will be at the discretion of the
employees (Any 5 holidays can be availed from the list of holidays for that year).
2. The adjusted festival leave could be taken during the same month of festival.
Maternity Leave (ML)
1. The leave can be availed for a maximum of two times during the entire service of the employee.
2. The leave can be availed for a maximum period of 6 weeks before and 6 weeks after delivery.
3. Maternity leave is a paid leave and does not affect the Earned leaves and Casual Leaves.

Sick Leave (SL)

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An employee shall be entitled to Sick Leave for 30 days in one year on half pay and allowances. The
employee may request for payment of full pay and allowances by authorizing and requesting the debit of
twice the number of days leave actually availed. Sick leave may be availed only on the recommendation
of a Registered Medical Practitioner acceptable to the company. The employee shall be required to
produce a Fitness Certificate at the time of rejoining duties at the end of the sick leave period, failing
which, the employee may not be permitted to report for duties.
Leave Sanctioning Authority
Sl.No.

Type of
Leave

CL & FH

EL

Grade

CROs
A/BMs
AMs / RMs
Dept. Staff

Sanctioning
Authority

Report to AO
by
Sanctioning
Authority
Within 3 days
Within 3 days
---

To HRD
by AO /
Admin.
office
Monthly
-do-do-do-

--

-do7 days
7 days
7 days
3 days

Heads of Depts.

BMs
AMs
Admin. office
Concerned Heads
of dept
COO/MD/Chairman

COs/CROs/BMs
AM / RM
Dept. Staff
Heads of Depts

AMs
Admin office / HR
Admin office / HR
COO/MD/Chairman

Within 3 days
----

SL

All grades

HR

--

ML

-do-

HR

--

--

EL
encashment

-do-

HR

--

--

Remarks

Alternate
arrangement
for attending
cluster
meeting
Alternate
arrangement
for attending
cluster
meeting
Fitness
certificate to
be produced
while
rejoining
duties
One month
in advance
One month
in advance

Procedures
Any employee who wishes to avail leave should forward to HR/Admin by concerned Area Office, the
Leave Application Form duly signed and sanctioned by the reporting authority one week prior to
proceeding on leave.
1. When it is not possible to take prior sanction, the reporting authority may be informed orally of the
duration of absence. The leave note may be forwarded on the date of joining duty.
2. Any leave availed without prior sanction and or oral consent of the reporting authority shall be treated
as loss of pay.
3. Normally the employees application for leave will be treated favorably. However the organization
reserves the rights to curtail/refuse the leave applied for or recall an employee who has already been
granted leave, if exigencies of work so grant.
4. Leave shall not be availed of as a matter of entitlement. Availment of leave is subject to office
exigencies.
5. Non communication of sanction shall be taken as rejection of application for leave.

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JOINING TIME:
a.

All employees shall be eligible for joining time on one occasion, not exceeding 3 days, exclusive of
the number of days spent on travel, to enable him i. To join a new post to which he is appointed while on duty in his old posting, or

b.

During the joining time an employee shall be eligible to draw the emoluments at the place of the old
or new posting, whichever is less.

c.

In calculating the joining time admissible to an employee, the day on which he is relieved from his
post shall be excluded, but public holidays following the day of his relief shall be included in
computing the joining time.

d.

No joining time shall be admissible to an employee when the transfer does not involve a posting to a
different place or change of residence.

e.

No joining time shall be admissible to an employee when his posting is of a temporary nature,
irrespective of the fact that the posting is to a place or station other than the one at which he is
permanently posted.

f.

No joining time shall be admissible to an employee when the transfer is at his own request.

g.

When suspension of an employee is revoked and he is posted to a different place, no joining period
is admissible.

ii.

6.5.

To join a new post on return from leave

Reimbursement policy

Lunch and dinner reimbursement expenses.


The reimbursement for travel on duty, the eligible mode of transport, expenses towards boarding and
lodging , etc., would vary depending on the cadre of the employee, the category of town/city visited, etc.,
This has been mentioned separately but would be notified separately from time to time as and when there
are changes in the same.
The reimbursement has to be supported by receipts/ bills and the claim needs to be endorsed by the
Area/ Regional Manager or Departmental Heads before claiming it from the Accounts department. The
employee needs to keep the concerned Area/Regional Manager or Departmental Head informed about
the local conveyance travel and the work plan to be completed during this time.
The entitlement details would be provided separately from time to time.

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7. Employee Separation
The section details the activities that initiate (employee driven or Company driven) employee separation
and the processes involved in the same.

7.1.

Disciplinary Action

In case of staff members faltering on the norms mentioned in the manual, the supervisors must write a
note on it and add it to the personal file of the staff concerned. The supervisor is authorized to
recommend for deduction in salary of one day of the concerned staff after mentioning this to HO/ district
office as a penal action against the faltering staff. In case it is a repeat offence, the salary deduction will
be at max for 15 days. The last resort is to recommend for termination of services of the concerned
employee.
NOTE: Termination is a very serious issue and can only be done by the order of the Chairman. The
concerned staff must be provided with a chance to present their side before the decision is taken. In
addition, circulars will be issued as and when required by the senior management.

7.2.

Misconducts:

Without being exhaustive and without prejudice to the generality of the term "Misconduct" the following
acts of ommission and/or commission shall be treated as misconducts.
1. Willful insubordination or disobedience, whether alone or in combination with others to any lawful and
reasonable order of his superior in the discharge of his duties.
2. Theft, fraud or dishonesty or misappropriation or willful damage or causing loss in connection with the
COMPANY's business or activities, goods or property, or any of the organisation or establishment
connected or dealing with the COMPANY or property belonging to any other employee from the
premises of the COMPANY.
3. Habitual late attendance or leaving the place of work before the proper time without permission.
4. Habitual absence without leave or permission.
5. Absence without leave or prior permission for more than 8 days.
6. Negligence in work or carelessness or inefficiency.
7. Failing to attend work on holidays when notified to do so, without reasonable cause or without prior
permission.
8. Drunkenness, riotous or disorderly behavior within the premises of the COMPANY.
9. False statement made in his application for appointment or securing appointment or false grounds.
Misrepresentation or suppression of facts. Knowingly making a false statement in any report, return,
and declaration or giving false information.
10. Committing nuisance in the premises of the COMPANY or its branch offices if any.
11. Obtaining or attempts to obtain leave on false grounds.
12. Indecent behavior use of obscene language, gestures or passing of filthy remarks and writing such
slogans in the premises.
13. Threatening, intimidating, coercing other employees/clients, assault or threat of assault, provoked or
unprovoked in the premises of the COMPANY or in any of its branches, including violation of Code of
Conduct of Sa-Dhan,/AKMI, RBI fair trade practices, etc., Any act of misconduct committed by

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employee within or outside the premises, which are rationally connected with the affairs of the
establishment.
14. Conviction for or commission of any act which amounts to an offence involving moral turpitude.
15. Engaging in any trade business profession calling outside the scope of his employment in the
COMPANY.
16. Engaging in political activity of any kind, including contesting or canvassing on behalf of any political
party or candidate.
17. Disclosing or divulging to any other person any confidential information, processes, know how or
design or knowledge in respect of the work or any process carried on in the COMPANY or any other
information imparted to him.
18. Giving or taking a bribe or illegal gratification from a trainee or customer or an employee of the
COMPANY.
19. Gambling or betting in the premises of the COMPANY.
20. Speculation in stocks, shares, securities or any commodity whether on his own account or that of any
other person.
21. Doing any act which is prejudicial to the interests of the COMPANY.
22. Striking work either singly or with others inciting others to strike in contravention of the provisions of
any law of Government of India or the concerned State Government or Rule or Rules having the force
of law.
23. Attending or holding meeting inside the COMPANY premises without previously obtaining the
sanction of the concerned authority of the COMPANY.
24. Striking either singly or along with others or abetting, inciting, instigating or acting in furtherance
thereof.
25. Willful slow down in the performance of work and/or inciting or abetting or instigating others to go
slow in the work.
26. Gherao or wrongfully restraining any employer or any employee of the COMPANY to concede to the
demands of the employees.
27. Picketing or demonstration within the COMPANY premises.
28. Disobedience or refusal of a transfer order.
29. Refusal to receive any charge sheet or other communication issued to him.
30. Acting in contravention of service rules of the COMPANY and other instructions, circulars and
notifications issued from time to time.
31. Any act subversive of discipline32. Conduct of an employee resulting in loss of confidence.
33. Repetition of misconduct.
34. Abuse of any privileges or concessions or any other benefits.
35. Any other conduct or act or omission which is a misconduct within the general meaning of the term
'misconduct' shall be deemed to be misconduct.

7.3.

Punishment for Misconducts:

An employee found guilty of the misconduct may be awarded any of the following punishments by the
disciplinary authority or any other employee authorized by the Chairman or Managing Director. The
appointing authority shall also be disciplinary authority.

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1. Censure, warning or reprimand.
2. Fine.
3. Suspension without wages for a period not exceeding four days.
4. Stoppage of increment.
5. Stoppage of increment or increments with cumulative effect.
6. Reversion to lower grade or post or reduction in rank or reduction in salary.
7. 'Removal from service' which shall not be a disqualification for future employment.
8. Dismissal from service.

7.4.

Procedure for Awarding Punishment:

1. Before awarding any of the punishment the concerned employee shall be issued with a charge sheet
detailing the misconduct/s alleged against him calling for an explanation in his defense in writing
within a stipulated time.
2. On receipt of the explanation from the concerned employee or on the expiry of stipulated time, the
Disciplinary Authority shall institute an enquiry by appointing an 'Enquiring Authority' called as
'Enquiry Officer' to enquire into allegations of misconduct against the employee. A presenting Officer
can be appointed by the Disciplinary Authority. The enquiry should be conducted in terms of
principles of natural justice.
3. The 'Enquiry Officer' can be any employee of the COMPANY or any outside person/agency.
4. Provided that where the Disciplinary Authority decides to impose a punishment of warning, censure
or reprimand under service rule No. XVII (1) above, no enquiry need be conducted.
5. During the enquiry the employee shall be permitted to avail the assistance of any of his co-worker to
defend him. However no outsider shall be allowed to represent the employee.
6. An employee who does not avail or refuse to avail himself of the opportunity, given to him for
defending himself by non-appearance or non-participation at the enquiry shall be regarded as absent
and the enquiry into the charges shall be held in his absence exparte.
7. On receipt of the enquiry proceedings and findings of the enquiry, a copy of the enquiry findings may
be sent to the employee, for his representation, if any, within 15 days.
8. The COMPANY shall take a final decision on the award of any of the punishments or otherwise.

7.5.

Suspension Pending Enquiry:

1. Where the Disciplinary Authority is of the opinion that the alleged misconduct against an employee
are serious in nature or where the presence of the employee is considered not desirable in the
premises of the COMPANY or its branches or where the employee is involved in a criminal case, the
Disciplinary Authority may pass an order keeping such employee under suspension pending
disciplinary proceedings. That such a suspension order may be by a separate order or suspension
order can be incorporated in the charge sheet itself.
2. During the period of such suspension, the suspended employee shall not enter the premises of the
COMPANY or its branch offices except with the written permission of the COMPANY.
3. During the period of suspension the employee will be entitled to, subsistence allowance and other
allowance as given below :
a. At the rate of one-third (1/3) of the salary which the employee was entitled to immediately
preceding the day of such suspension for the first 90 days of suspension.
b. At the rate of fifty per cent (50%) of such salary thereafter

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c. After one year, full pay and allowances, if the enquiry is not delayed for reasons attributable to the
concerned employee or any of his representatives.
4. Where the investigation is done by outside agency (police/CBI) & the same is followed by
Departmental enquiry of the Company:a. For the first six months of suspension, one-third of the pay and allowances which the employee
would have got, but for suspension.
b. Thereafter, half of the pay and allowances.
c. Full pay and allowances after six months from the date of receipt of report of the investigating
agency that it has come to the conclusion not to prosecute the employee or one year after the date
of suspension, whichever is later.
NOTE: If the report mentioned in above is received within 6 months of suspension, then from
the date of receipt of such report, or after 3 months of suspension, whichever is later, subsistence
allowance is to be paid at the rate of half pay and allowances and after one year at the rate of full
salary and allowances, provided enquiry is not delayed for reasons attributable to the concerned
workman or any of his representatives.
d. The payment of subsistence allowance shall be subject to the employee concerned not taking up
any employment during the period of suspension.
e. On the conclusion of the enquiry, if the employee is found guilty of the charges framed against him
and it is considered that an order of dismissal shall be passed, the Disciplinary Authority, shall
pass an order accordingly and the employee shall not be entitled for any payment for the period of
suspension except the subsistence allowance already paid under these service rules.
5. In case, the employee is found guilty of the charges framed against him and where it is considered by
the Disciplinary Authority that an order of punishment by way of Censure, Warning or Reprimand,
fine, suspension without wages, stoppage of increment, stoppage of increment increments with
cumulative effect, reversion to lower grade or post or reduction in salary or removal from service or
any other punishment which the Disciplinary Authority deems fit, the employee shall be deemed to
have been on duty during the period of suspension and shall be entitled to the same salary as he
would have drawn if he had not been placed under suspension, after deducting the subsistence
allowance paid to him for such period.

7.6.

Right to Appeal:

An employee shall have a right of appeal against any order passed by the Disciplinary Authority which
injuriously affects his interest.
The appeal shall be preferred to the appellate authority within 30 days of the date of service of the order
appealed against. The appellate authority shall consider whether the findings of the disciplinary authority
are justified and whether the penalty imposed is adequate and pass suitable order as early as possible.

7.7.

Appellate Authority:

An appeal shall lie to the Board of Directors.

7.8.

Retirement/Superannuation:

Every employee shall cease to be in service of the Company at the end of the period specified in the
contract of service or on attaining the age of 60 years in cases where the contract does not specify the
period of service. This is without prejudice to the right of the Company to terminate the service of the
employee at any time with the prescribed notice or salary in lieu thereof or without notice as per terms of
employment and as per the service regulations formulated by it from to time.

7.9.

Termination Of Employment By The Employee:

1. A trainee desirous of leaving the COMPANYS service shall give 15 days notice in writing to the
Managing Director of his intention to do so or surrender to the COMPANY 15 days salary in lieu
thereof.

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2. A probationary or permanent employee desirous of leaving the COMPANYS service shall give 30
days notice in writing to the Managing Director of his intention to do so or surrender to the COMPANY
30 days salary in lieu thereof.

7.10. Provident Fund:


All employees who have completed continuous minimum service as specified in the Employee's Provident
Funds and Miscellaneous Provisions Act, 1952, (19 of 1952) shall be members of the provident fund. The
contribution to the provident fund by the employees and the COMPANY shall be in accordance with the
provisions of the aforesaid act.

7.11. Gratuity:
All confirmed employees shall be entitled to gratuity as specified in 'Payment of Gratuity Act 1972'.

7.12. Transferability:
An employee is liable to be transferred to any office or to any branch of the Company and in such cases
TA for the journey to the employee is admissible. If such transfers are on request, no TA is admissible.

7.13. Matter Not Covered under the Companys Service Code


These service rules are not exhaustive of the terms and conditions of employment of employees under
the Company. Hence, it shall be understood that any action of the Company not covered by these service
rules in respect of the Companys interest or activity shall be binding on the employee.

7.14. Service of Orders Notices, etc:


In case the employee is absent from duty or refuses to accept and acknowledge any communication
notice or order, such communication shall be deemed to have been served if it is sent to the last known
address of the employee by registered post acknowledgement or certificate of posting and/or exhibition of
a copy of the same on the notice board of the Company.

7.15. Exit Interview


An exit interview must be conducted for all employees leaving the Company. The format for the exit
interview would be captured in the HR manual. Exit interviews should be documented and maintained for
future reference.

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Annexure
Annexure 1: Leave Application
From:
Date: ..
Name of the Employee: .. Employee Number : ..
Designation
: Place of Work :
..
To:
The
.
Dear Sir,
Sub: Sanction of Casual / Earned / Sick / Maternity / Compensatory Leave
Kindly sanction above mentioned leave to me for .. days from . (date) to
(date) for the following reason:
I enclose the following documents:
The relative medical certificate is enclosed herewith
Fitness certificate is enclosed herewith
The Medical cum-Fitness Certificate is enclosed herewith
I propose to hand over charge to Mr/Ms . during my leave period.
My address during the leave period is as follows:
..

..
Signature of the Employee

For Office Use Only


Comments of Recommending Authority:

Signature of Recommending
Authority
Order of Sanction:
SANCTIONED / REJECTED.
Signature of Sanctioning Authority

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Annexure 2: Personal Data Form

Personal Data Form

1.

Name in full (BLOCK


LETTERS)

2.

Date of Birth

3.

Name of Father

4.

Name of Mother

5.

Details of Dependents

8.
9.

Religion
Caste
Occupation
of Father
Occupation
of Mother
Name

7.

STD Code:

Telephone No: (Residence)

Relationship with
employee

Age (Yrs)

Permanent Address

6.

Affix Passport size


photo

Present Address

Number:

Mobile / Cell No.

10.

Marital Status / No. of


Children

11.

Blood Group

Married / Unmarried
O+

O-

A+

No: of Children :
A-

School/College

B+

B-

Year of Passing

AB+

AB-

% of Marks

SSLC
PUC
12.

Educational Qualifications

DEGREE
P.G
Others

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14.

Name of Organization

Designation

Duration

Speak

Read

Write

Work Experience

Languages Known

15.

16.

References
(Please
furnish
their
names,
address
and
contact
telephone/mobile number)

17.

Contact Person in case of


Emergency with address
and contact number

(1)

(2)

Note: Attach proof of age, qualifications, experience and three passport sized photos.

I hereby state that the above information is correct to the best of my knowledge.

Signature:
Date:
Place

Application Referred By:

Name:
Designation:
Present place of Work:

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Annexure 3: Joining Report


Joining Report
From:
Place: ................................
.........................................................
Date: ................................
.........................................................
.........................................................
To:
.........................................................
.........................................................
.........................................................
Dear Sir,
Sub: Reporting for duties
In terms of letter No: ............................................................. dated ........................, I am reporting for
duties today before office hours.
Thanking you,
Yours faithfully,

(..................................)

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STAFF SERVICE REGULATIONS 2009


(With amendments up to 31.12.2014)

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IDF FINANCIAL SERVICES PRIVATE LIMITED
STAFF SERVICE REGULATIONS 2009

(With amendments up to 31.12.2014)


In this regulation unless there is anything repugnant in the subject or content:

1. SHORT TITLE COMMENCEMENT AND APPLICATION:


These service rules may be called as IDF Financial Services Pvt. Ltd. staff service regulations 2009.
These service rules shall come into force with effect from 1st April 2009.
These service rules shall apply to all the employees of M/s. IDF Financial Services Pvt. Ltd, with
registered office at 49 (Old # 590) 1st Floor, 21st Main, 32nd Cross, Jayanagar 4th T Block, Jayanagar,
Bangalore 560041 and Administrative Office situated at No.81, Bhushan Nilaya, 3 rd Main, 10th Cross,
Manjunatha Colony, Shivagiri, Dharwad 580008 of Karnataka State, engaged in service in its office
and at company's branch offices/training institutes now existing and to be established in future at
various places in India. The said rules can be modified, altered, deleted, added or amended by the
Board of Directors of the Company from time to time and the rules shall be binding on all employees of
the Company. Every person in the employment of the Company at the commencement of these rules
and every person thereafter joining the services of the Company and also to have contracted to accept
any amendments or alterations thereof and additions thereto shall be binding on them.
2. COMPANY: means IDF Financial Services Private Limited.
3. CHAIRMAN: means the Chairman of the COMPANY.
4. MANAGING DIRECTOR: means the Managing Director of the COMPANY.
5. BOARD OF DIRECTORS: means Board of Directors constituted under the declaration of the
Memorandum of Association of IDF Financial Services Pvt. Ltd.
6. SUB COMMITTEE: means the Sub Committees constituted by the Board of Directors for specific
functions.
7. EMPLOYEE: means a person employed in the Company for wages but does not include a trainee,
consultant or guest faculty.
8. EMPLOYER: means the Chairman/Managing Director / Head- HR Department / Deputy General
Manager / Area Manager / Senior Manager or any other officer having the delegated authority by the
Chairman of the COMPANY.
9. APPOINTING AUTHORITY: shall mean and include the Chairman of the COMPANY or Managing
Director of the COMPANY or such other person notified by Board of Directors from time to time.
10. DISCIPLINARY AUTHORITY: shall mean and include the Chairman of the COMPANY or Managing
Director of the COMPANY or such other person notified by the Board of Directors, from time to time.
11. HEAD-HR / REGIONAL MANAGER: means any person designated by Chairman or Managing
Director of the COMPANY to act as Head-HR / Regional Manager.
12. AREA MANAGER / SENIOR MANAGER: means any employee designated as Area Manager or
appointed as a Senior Manager in writing by the Chairman of the COMPANY or the Managing
Director of the COMPANY to act as Area Manager / Senior Manager.
13. HABITUAL: means an act of omission or commission which is repeated three times within a period of
12 months or any repetition of an act or acts of misconduct for which a punishment has already been
awarded.

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14. MIS-CONDUCT : means any of the misconducts enumerated in these rules and shall include such
other acts and omissions which are considered to be misconducts within the general meaning of the
term of misconduct, even though such misconducts are not enumerated by any specific and
separate clause in these rules.
15. MEDICAL CERTIFICATE: means certificate issued by any registered medical practitioner or if the
COMPANY is covered under ESI Act for any reason in future, in that event, a certificate issued by ESI
Medical Officer, relating to a covered employee.
16. NOTICE BOARD: means the board maintained in a conspicuous place for the purpose of exhibiting
notices.
17. Unless specially stated to the contrary, the masculine shall include the feminine and singular shall
imply plural where relevant.
I.

CLASSIFICATION OF STAFF/EMPLOYEES:

A. The employees of the COMPANY shall broadly comprise of the following:


i. Heads of Departments
ii. General / Deputy General Manager
iii. Area Manager / Senior Manager
iv. Branch Manager / Junior/Asst. Branch Manager
v. Credit Officer / Officer
vi. Computer Operator
vii. Office Assistant / Driver
B. Probationary: is one who is provisionally employed to fill employee vacancy and has not completed
the probationary period of twelve months which may be extended for further six months if the
performance, attendance or conduct of the employee during probation is not satisfactory and it is
considered necessary by the appointing authority to adjudge him further.
If the appointing authority is of the opinion that the employee is not fit for confirmation in the said post:
i) in the case of direct appointee his services may be terminated without any notice. ii) in the case of
promotee from the companys service, he may be reverted to the grade or cadre from which he was
promoted
However any period of leave of absence whether authorised or unauthorised shall be excluded for the
purpose of computing the twelve months of probation or extension of probation.
C. Confirmation: An employee shall be confirmed in the service of the company, if in the opinion of the
appointing authority, the employee has satisfactorily completed his probation.
II. CONTROL OF STAFF :
The Regional Manager/, Heads of Departments, Area Manager, Senior Manager, Credit Managers &
Credit officers shall have charge and immediate control of staff working under them. They shall be
responsible for the discipline of such staff.

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III. RECRUITMENT OF EMPLOYEES:


1. The recruitment authority shall mean and include the Chairman of the COMPANY or Managing
Director of the COMPANY or such other or any other persons notified by the Board of Directors from
time to time.
2. At the time of seeking employment, persons shall be required to make an application in writing and
also to fill in and sign the prescribed form/forms of employees of the COMPANY.
3. Every
person
seeking
employment
in
the
COMPANY
shall
possess
such educational and other qualifications and shall pass prescribed test as may be notified by the
Board of Directors from time to time.
4. No person shall be appointed as an employee unless he/she has completed the age of 18 years.
5. If a person is considered fit for employment and it is decided to provisionally employ him, he may be
required to produce such medical certificate about his physical fitness as may be prescribed or
determined by the Board of Directors.
6. The Chairman or Managing Director or any other employee authorised by the Chairman or Managing
Director may call upon any employee at any time during his period of employment to appear for
medical examination by the medical officer nominated by such Chairman/Managing
Director/authorised employee to find the physical or mental fitness or otherwise for the continuance of
his employment in the COMPANY and the opinion of such medical officer shall be final and binding on
the employee concerned.
7. The services of the employees who are found to be medically unfit for employment and so certified by
the medical officer shall be terminated with 30 days notice or payment in lieu of notice, at the sole
discretion of the Chairman or Managing Director or any other employee authorised by the Chairman.
IV. RECORD OF AGE:
1. Every employee at the time of his employment is required to declare his age in the application for
employment. Those already in employment shall also declare their age if they have not declared at
the time of their employment. Following documents in proof of age shall be deemed to be authentic.
a. SSLC Certificate or equivalent certificate issued by the school
b. In the absence of such certificate, Birth certificate issued by the competent authority or by a court
of law.
c. Any other document acceptable to the Company.
2. The age of an employee as recorded with the COMPANY at the time of his employment shall not
thereafter be altered /changed /modified by the said employee and it shall remain as a permanent
record and cannot be changed under any circumstances.

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V. COMPENSATION AND ALLOWANCES:
The compensation and benefits will be based on the performance of the employees as well as the
statutory requirements of the state as prescribed from time to time which includes The Minimum Wage
Act. The board would be revising the compensation structure periodically keeping the developments in
the industry and the profitability and sustenance of the company.
Employees will be initially hired as trainees for a period of six (6) months and will then be on a
probationary period for twelve (12) months.
During the training period, they will be paid monthly
consolidated stipend as decided by the board. During probationary period and on confirmation, they will
be paid monthly salary which may include some or all of the following components:
1. Basic pay
2. Variable Dearness Allowance
3. Special Allowance
4. House Rent Allowance
5. City Compensatory Allowance
6. Travelling expenses
7. Mobile Allowance
8. Performance-linked Variable Pay
Employees who are on probation or confirmed who are on salary would be required to contribute towards
Provident Fund and Employees State Insurance or any other insurance scheme introduced by the
Company for the welfare of the staff members. The company would also contribute towards the Provident
Fund and Employees State Insurance or any other health insurance scheme in lieu thereof as may be
decided by the board. The confirmed employees would also be eligible for Gratuity, Bonus and other
statutory benefits.
The compensations and benefits payable to the different cadres of employees is provided in the Annexure
Suitable increments would be granted to employees on the anniversary date of their joining/confirmation
in service or the date of promotion as furnished in the Annexure.
Mode of Travel, Boarding & Lodging entitlements:
The employees of the company would be required to undertake outstation travel on duty. The
entitlements of the employees in various grades to travel by different modes of transport as also the limits
up to which the Boarding and Lodging expenses will be reimbursed by the company to them when on
outstation duties (subject to the notes mentioned herebelow) are furnished in the Annexure.
a. (*) Lodging bills will be paid only on production of Bills. To avail lodging facility, overnight stay must
be involved.
b. (**) For Credit Officers, lodging bills would be paid only when no facilities are available in the office
premises for overnight staying.
Travelling Expenditure /Halting Expenditure allowances:
Employees shall be in possession of their own two-wheeler (as far as possible).
For local travel, Credit Officers/ Asst. Br. Managers / Br. Managers/Area Managers would be paid
travelling expenditure based on the number of members to whom credit is granted. For travel beyond
their normal work area, TE/HE would be paid as mentioned in the Annexure.
For staff working in Registered / Administrative / other controlling offices, actual TE would be paid only
when they are required to travel on duty.

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VI. General Office rules of conduct, and Leave


6.1 Employee etiquette and Dress code
The Dress Code and Etiquette norms are important for ensuring that a respectable image of the
organization is always maintained and professionalism always reflected. All employees coming to work
should dress neatly and in a manner that would befit such an occasion. Smoking, consumption of alcohol
and/or any other intoxicating drug (other than the medicine prescribed by a registered medical
practitioner), chewing pan/pan masala/tobacco and gambling are strictly prohibited in the office premises.
Employees must maintain a clean and tidy office and a pleasant ambience. At the end of the day all
papers and documents should be kept in drawers/ cupboards and properly locked. Computers, fans,
lights, air conditioners should be switched off when they are not in use.

6.2

Working timings and attendance

In order to facilitate sustainable and scalable operations, the Branch offices will be open from 7:00am to
7:00pm from Monday to Saturday. All employees shall sign the attendance register kept at the front office
before commencing work. For those on official duty outside the branch, they shall be marked as outdoor
duty (OD) beforehand.
Registered & Administrative Office Timings
Start Time
Monday to Saturday
10.30 AM

End Time
6.30 PM

Sunday

Holiday

Holiday

CRO / ABM/BM / AM Offices


Monday to Saturday

Start Time
7.00 AM

End Time
7.00 PM

Sunday

Holiday

Holiday

All field staff (A/BMs & CROs) are required to be in the field for SHG/cluster meetings and repayments.
Any deviations should be reported to their immediate superior in advance. A/BMs are also required to
cross check disbursement of loans made by CROs on a sample basis.
On the last day of every month total attendance for each department and Area offices shall be collected. It
should be checked and approved by the Department Head/Area Manager. Employees have to report to
their work at times mentioned above and any delay beyond 15 minutes for a period more than four days
in a month is treated as unauthorized absence.
Late sittings and use of office premises after office hours should have prior approvals from immediate
superior. The incumbent person(s) will be responsible for any loss of articles and misuse of
premises/goods.

6.3

Code of Conduct

This section covers the obligations of every individual that governs the organizations decisions and
actions.
All employees shall punctually attend to office at the time specified

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6.4

Each employee has to restrict his/her position to their respective table and computer system. Any
change in positions and use of other systems is permissible only with prior approval from
immediate superior.
Employees should understand that excessive and loud talk can be disruptive for colleagues.
Individuals or groups engaging in such disruptive behavior will receive a warning and then
disciplinary action.
Employees are discouraged from making personal telephone calls. Personal phone calls should
be made only when absolutely necessary.
Newspapers, magazines and other journals etc. placed at the front office should not be carried to
the work area.
Gossip groups have no place in the organization. Anyone found engaged in such activities will be
warned for strict disciplinary action.
Keep your desktop/stationery in good and tidy condition and do not spread books, bags and other
material across the tabletop.
All employees are responsible for the proper use, protection and conservation of organizations
resources including organizations assets, properties, proprietary interests and information.
All computer data and software (MIS, etc.) are the organizations assets. Unauthorized use or
access is not permitted.
Employees should ensure that unauthorized software is not loaded on to computers.
Most important of all, a professional relationship should be maintained at all times with colleagues
and clients. The Code of Conduct prescribed by Sa-Dhan/AKMI shall be strictly adhered to.
Failure to adhere to this will be punished severely, and may result in immediate dismissal.
Employees who are not sure whether certain situation or relationship constitutes a professional
conflict should discuss the situation with their immediate superior.

Leave policy

Leaves are designed to allow all employees to have vacation, time off and meet other personal
obligations and confirmations.
Absenteeism
An employee is responsible for notifying the immediate reporting authority of his/her absence on any day
(along with reasons) and advising when he/she will report to work. Excessive absence would attract
disciplinary action, which may result in termination. The organization also reserves the right to terminate
any employee who is absent without notification.
An employee is considered absent if he/ she is not present for work as scheduled, regardless of cause.
Employees will not be allowed to apply any leave for unexcused absences (to be decided by immediate
reporting authority).
Reporting authorities should give special attention to absence patterns (mentioned below) and report the
matter to their superiors:
- Absence the day before and/or the day after a scheduled holiday or unscheduled holiday.
- Absence the day after payday.
- Calling in sick regularly.
It is mandatory for an employee to call the reporting authority in advance and communicate if they are
going to be absent (in cases of emergency, at least by phone or through a third person).

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Leave cannot be claimed as a matter of right. Sanction of leave is always subject to exigencies of work
and managements discretion. No two types of leave may be combined.
Leave without pay can be availed either after Earned Leave has been exhausted or if Earned Leave
cannot be availed.
Except in the case of Casual Leave, intervening holidays/ weekly offs during the leave period will be
considered as leave. However holidays/ weekly offs at the beginning or end of the leave period are not
taken into consideration. For example: Where Sunday is the weekly off day, if an employee applies for a
Earned leave on Saturday and Monday, the Sunday will also be considered as leave.
When leave is required for more than 3 days, the leave application should be submitted at least 2 weeks
in advance.
Casual Leave (CL)
1. Twelve days of Casual Leaves will be available per financial year.
2. Casual leaves cannot be combined with any other leave.
3. Maximum of 3 casual leaves can be taken at a time. Any leave after 3 days will be considered as
Loss of Pay.
4.
Casual leaves cannot be encashed or carried forward.
Compensatory Leave (Comp. L)
An employee may be granted compensatory leave if he/she is required to work on a Sunday or a Festival
holiday. The immediate superior officer should give a letter to the employee asking him to work on a
holiday and should make it clear in the letter that he/she would be given a compensatory holiday on a day
of the choice of the employee. However, the compensatory leave will have to be availed within one
month from the date on which the employee had worked on a holiday.
Earned Leaves (EL)
1.
Fifteen days of leave will be earned for every financial year after completion of one year of
service (after confirmation) which can be accumulated up to a maximum of 90 days.
2. It will be credited to the employee on completion of one year of continuous service.
3.
An employee can avail minimum of 4 days of earned leave at any one time.
4.
Earned leaves may be also adjusted against shortfall in notice period or for recovery of dues, on
a case to case basis.
5.
Accumulated EL may be encashed (Maximum 30 days) once in a block of four (4) years after
completion of the first block. However, at the time of superannuation, EL balance up to 90 days may
be encashed.
6.
For the purpose of encashment of Earned Leave, the Gross salary will be considered. However,
Travelling Expenditure paid based on the number of clients shall be excluded for this purpose.
Festival Holidays (FH)
1. Every employee is entitled to ten holidays in a year of which 5 are mandatory, which shall include
(1) 1st May (May Day) (2) 15th August (Independence Day) (3) 2 nd October (Gandhi Jayanthi) (4)
26th January (Republic Day) and 1st November (Kannada Rajyothsava). The other 5 holidays will
be at the discretion of the employees (to be availed from the list of holidays for that year).
2. The adjusted festival leave could be taken during the same month of festival.
Maternity Leave (ML)
1. The leave can be availed for a maximum of two times during the entire service of the employee.
2. The leave can be availed for a maximum period of 6 weeks before and 6 weeks after delivery.
3. Maternity leave is a paid leave and does not affect the Earned leaves and Casual Leaves.
Sick Leave (SL)
An employee shall be entitled to Sick Leave for 30 days in one year on half pay and allowances. The
employee may request for payment of full pay and allowances by authorizing and requesting the debit of
twice the number of days leave actually availed. Sick leave may be availed only on the recommendation
of a Registered Medical Practitioner acceptable to the company. The employee shall be required to

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produce a Fitness Certificate at the time of rejoining duties at the end of the sick leave period, failing
which, the employee may not be permitted to report for duties.
Leave Sanctioning Authority
Sl.No.

Type of
Leave

CL & FH

Grade

CROs,
ABMs & BMs
AMs
Dept. Staff
AGMs/ DGMs / GMs /
Heads of Depts.
CROs/ABMs/BM
AM
Dept. Staff
AGM/DGM/GM/Heads
of Depts

Sanctioning Authority

BMs
AMs
DGM (Ops. /Credit)
Concerned Heads of
Dept
HRD/COO/MD/Chairman
DGM (Ops. / Credit)
Admin office / HRD
Admin office / HRD
HRD/COO/MD/Chairman

Report To
HRD by
Sanctioning
Authority
Monthly
-do-do-do-

EL

3 days
3 days
3 days
3 days

SL

All cadres

HRD/COO/MD/Chairman

ML

All cadres

HRD/COO/MD/Chairman

--

EL
encashment*

All cadres

HRD/COO/MD/Chairman

--

Remarks

Alternate
arrangement
for attending
cluster
meeting
Alternate
arrangement
for attending
cluster
meeting
Fitness
certificate to
be produced
while
rejoining duties
One month
in advance
One month
in advance

Note:- The effective date for EL encashment shall be the date on which this provision is approved by the Board of
Directors.

Procedures
Any employee who wishes to avail leave should forward to HR/Admin Office through concerned Area
Office, the Leave Application Form duly signed and sanctioned by the reporting authority one week prior
to proceeding on leave.
1. When it is not possible to take prior sanction, the reporting authority may be informed orally of the
duration of absence. The leave note may be forwarded on the date of joining duty.
2. Any leave availed without prior sanction and or oral consent of the reporting authority shall be treated
as leave on loss of pay.
3. Normally the employees application for leave will be treated favorably. However the organization
reserves the rights to curtail/refuse the leave applied for or recall an employee who has already been
granted leave, if exigencies of work so grant.
4. Leave shall not be availed of as a matter of entitlement. Availment of leave is subject to office
exigencies.
5. Non communication of sanction shall be taken as rejection of application for leave.

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JOINING TIME:
a. All employees shall be eligible for joining time on one occasion, not exceeding 3 days,
exclusive of the number of days spent on travel, to enable him
b. To join a new post to which he is appointed while on duty in his old posting, or
c. To join a new post on return from leave
d. During the joining time an employee shall be eligible to draw the emoluments at the place
of the old or new posting, whichever is less.
e. In calculating the joining time admissible to an employee, the day on which he is relieved
from his post shall be excluded, but public holidays following the day of his relief shall be
included in computing the joining time.
f.

No joining time shall be admissible to an employee when the transfer does not involve a
posting to a different place or change of residence.

g. No joining time shall be admissible to an employee when his posting is of a temporary


nature, irrespective of the fact that the posting is to a place or station other than the one
at which he is permanently posted.
h. No joining time shall be admissible to an employee when the transfer is at his own
request.
When suspension of an employee is revoked and he is posted to a different place, no joining period is
admissible.

7.0

Disciplinary Action

In case of staff members faltering on the norms mentioned in the manual, the supervisors must write a
note on it and add it to the personal file of the staff concerned. The supervisor is authorized to
recommend for deduction in salary of one day of the concerned staff after mentioning this to HO/ district
office as a penal action against the faltering staff. In case it is a repeat offence, the salary deduction will
be at max for 15 days. The last resort is to recommend for termination of services of the concerned
employee.
NOTE: Termination is a very serious issue and can only be done by the order of the Chairman. The
concerned staff must be provided with a chance to present their side before the decision is taken. In
addition, circulars will be issued as and when required by the senior management.

7.1

Misconducts:

Without being exhaustive and without prejudice to the generality of the term "Misconduct" the following
acts of commission and/or commission shall be treated as misconducts.
1. Willful insubordination or disobedience, whether alone or in combination with others to any lawful
and reasonable order of his superior in the discharge of his duties.
2. Theft, fraud or dishonesty or misappropriation or willful damage or causing loss in connection with
the COMPANY's business or activities, goods or property, or any of the organisation or
establishment connected or dealing with the COMPANY or property belonging to any other
employee from the premises of the COMPANY.
3. Habitual late attendance or leaving the place of work before the proper time without permission.
4. Habitual absence without leave or permission.
5. Absence without leave or prior permission for more than 10 days.
6. Negligence in work or carelessness or inefficiency.

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7. Failing to attend work on holidays when notified to do so, without reasonable cause or without
prior permission.
8. Drunkenness, riotous or disorderly behavior within the premises of the COMPANY.
9. False statement made in his application for appointment or securing appointment or false
grounds. Misrepresentation or suppression of facts. Knowingly making a false statement in any
report, return, and declaration or giving false information.
10. Committing nuisance in the premises of the COMPANY or its branch offices if any.
11. Obtaining or attempts to obtain leave on false grounds.
12. Indecent behavior use of obscene language, gestures or passing of filthy remarks and writing
such slogans in the premises.
13. Threatening, intimidating, coercing other employees/clients, assault or threat of assault, provoked
or unprovoked in the premises of the COMPANY or in any of its branches, including violation of
Code of Conduct of Sa-Dhan,/AKMI, RBI fair trade practices, etc., .
14. Any act of misconduct committed by employee within or outside the premises, which are
rationally connected with the affairs of the establishment.
15. Conviction for or commission of any act which amounts to an offence involving moral turpitude.
16. Engaging in any trade, business, profession or calling outside the scope of his employment in the
COMPANY.
17. Engaging in political activity of any kind, including contesting or canvassing on behalf of any
political party or candidate.
18. Disclosing or divulging to any other person any confidential information, processes, know how or
design or knowledge in respect of the work or any process carried on in the COMPANY or any
other information imparted to him.
19. Giving or taking a bribe or illegal gratification from a trainee, customer or an employee of the
COMPANY.
20. Gambling or betting in the premises of the COMPANY.
21. Speculation in stocks, shares, securities or any commodity whether on his own account or that of
any other person.
22. Doing any act which is prejudicial to the interests of the COMPANY.
23. Striking work either singly or with others, inciting others to strike in contravention of the provisions
of any law of Government of India or the concerned State Government or Rule or Rules having
the force of law.
24. Attending or holding meeting inside the COMPANY premises without previously obtaining the
sanction of the concerned authority of the COMPANY.
25. Striking either singly or along with others or abetting, inciting, instigating or acting in furtherance
thereof.
26. Willful slow down in the performance of work and/or inciting or abetting or instigating others to go
slow in the work.
27. Gherao or wrongfully restraining any employer or any employee of the COMPANY to concede to
the demands of the employees.
28. Picketing or demonstration within the COMPANY premises.
29. Disobedience or refusal of a transfer order.
30. Refusal to receive any charge sheet or other communication issued to him.

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31. Acting in contravention of service rules of the COMPANY and other instructions, circulars and
notifications issued from time to time.
32. Any act subversive of discipline.
33. Conduct of an employee resulting in loss of confidence.
34. Repetition of misconduct.
35. Abuse of any privileges or concessions or any other benefits.
36. Any other conduct or act or omission which is a misconduct within the general meaning of the
term 'misconduct' shall be deemed to be misconduct.

7.2

Punishment for Misconducts:

An employee found guilty of the misconduct may be awarded any of the following punishments by the
disciplinary authority or any other employee authorized by the Chairman or Managing Director. The
appointing authority shall also be disciplinary authority.
1. Censure, warning or reprimand.
2. Fine.
3. Suspension without wages for a period not exceeding four days.
4. Stoppage of increment.
5. Stoppage of increment or increments with cumulative effect.
6. Reversion to lower grade or post or reduction in rank or reduction in salary.
7. 'Removal from service' which shall not be a disqualification for future employment.
8. Dismissal from service.

a. Procedure for Awarding Punishment:


1. Before awarding any of the punishment the concerned employee shall be issued with a charge sheet
detailing the misconduct/s alleged against him calling for an explanation in his defense in writing
within a stipulated time.
2. On receipt of the explanation from the concerned employee or on the expiry of stipulated time, the
Disciplinary Authority shall institute an enquiry by appointing an 'Enquiring Authority' called as
'Enquiry Officer' to enquire into allegations of misconduct against the employee. A presenting Officer
can be appointed by the Disciplinary Authority. The enquiry should be conducted in terms of
principles of natural justice.
3. The 'Enquiry Officer' can be any employee of the COMPANY or any outside person/agency.
4. Provided that where the Disciplinary Authority decides to impose a punishment of warning, censure
or reprimand under service rule No. VII (2) above, no enquiry need be conducted.
5. During the enquiry the employee shall be permitted to avail the assistance of any of his co-worker to
defend him. However no outsider shall be allowed to represent the employee.
6. An employee who does not avail or refuse to avail himself of the opportunity, given to him for
defending himself by non-appearance or non-participation at the enquiry shall be regarded as absent
and the enquiry into the charges shall be held in his absence exparte.
7. On receipt of the enquiry proceedings and findings of the enquiry, a copy of the enquiry findings may
be sent to the employee, for his representation, if any, within 15 days.
8. The COMPANY shall take a final decision on the award of any of the punishments or otherwise.

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b.

Suspension Pending Enquiry:


Where the Disciplinary Authority is of the opinion that the alleged misconduct against an employee
are serious in nature or where the presence of the employee is considered not desirable in the
premises of the COMPANY or its branches or where the employee is involved in a criminal case, the
Disciplinary Authority may pass an order keeping such employee under suspension pending
disciplinary proceedings. That such a suspension order may be by a separate order or suspension
order can be incorporated in the charge sheet itself.
During the period of such suspension, the suspended employee shall not enter the premises of the
COMPANY or its branch offices except with the written permission of the COMPANY.
During the period of suspension the employee will be entitled to, subsistence allowance and other
allowance as given below:
a. At the rate of one-third (1/3) of the salary which the employee was entitled to immediately
preceding the day of such suspension for the first 90 days of suspension.
b. At the rate of fifty per cent (50%) of such salary thereafter
c. After one year, full pay and allowances, if the enquiry is not delayed for reasons attributable to
the concerned employee or any of his representatives.
Where the investigation is done by outside agency (police/CBI) & the same is followed by
Departmental enquiry of the Company:a. For the first six months of suspension, one-third of the pay and allowances which the employee
would have got, but for suspension.
b. Thereafter, half of the pay and allowances.
c. Full pay and allowances after six months from the date of receipt of report of the investigating
agency that it has come to the conclusion not to prosecute the employee or one year after the date
of suspension, whichever is later.
NOTE: If the report mentioned in above is received within 6 months of suspension, then from
the date of receipt of such report, or after 3 months of suspension, whichever is later, subsistence
allowance is to be paid at the rate of half pay and allowances and after one year at the rate of full
salary and allowances, provided enquiry is not delayed for reasons attributable to the concerned
employee or any of his representatives.
The payment of subsistence allowance shall be subject to the employee concerned not taking up
any employment during the period of suspension.
On the conclusion of the enquiry, if the employee is found guilty of the charges framed against him
and it is considered that an order of dismissal shall be passed, the Disciplinary Authority, shall
pass an order accordingly and the employee shall not be entitled for any payment for the period of
suspension except the subsistence allowance already paid under these service rules.
In case, the employee is found guilty of the charges framed against him and where it is considered by
the Disciplinary Authority that an order of punishment by way of Censure, Warning or Reprimand,
fine, suspension without wages, stoppage of increment, stoppage of increment / increments with
cumulative effect, reversion to lower grade or post or reduction in salary or removal from service or
any other punishment which the Disciplinary Authority deems fit, the employee shall be deemed to
have been on duty during the period of suspension and shall be entitled to the same salary as he
would have drawn if he had not been placed under suspension, after deducting the subsistence
allowance paid to him for such period.

c.

Right to Appeal:

An employee shall have a right of appeal against any order passed by the Disciplinary Authority which
injuriously affects his interest.
The appeal shall be preferred to the appellate authority within 30 days of the date of service of the order
appealed against. The appellate authority shall consider whether the findings of the disciplinary authority
are justified and whether the penalty imposed is adequate and pass suitable order as early as possible.

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d. Appellate Authority:
An appeal shall lie to the Board of Directors.

e. Retirement/Superannuation:
Every employee shall cease to be in service of the Company at the end of the period specified in the
contract of service or on attaining the age of 60 years in cases where the contract does not specify the
period of service. This is without prejudice to the right of the Company to terminate the service of the
employee at any time with the prescribed notice or salary in lieu thereof or without notice as per terms of
employment and as per the service regulations formulated by it from time to time.

f. Termination of Employment by the Employee:


3. A trainee desirous of leaving the COMPANYS service shall give 15 days notice in writing to the
Managing Director of his intention to do so or surrender to the COMPANY 15 days salary in lieu
thereof.
4. A probationary or permanent employee desirous of leaving the COMPANYS service shall give 30
days notice in writing to the Managing Director of his intention to do so or surrender to the COMPANY
30 days salary in lieu thereof.

g. Provident Fund:
All employees who have completed continuous minimum service as specified in the Employee's Provident
Funds and Miscellaneous Provisions Act, 1952, (19 of 1952) shall be members of the provident fund. The
contribution to the provident fund by the employees and the COMPANY shall be in accordance with the
provisions of the aforesaid act.

h. Gratuity:
All confirmed employees shall be entitled to gratuity as specified in 'Payment of Gratuity Act 1972'.

i. Transferability:
An employee is liable to be transferred to any office or to any branch of the Company and in such cases
TA for the journey to the employee is admissible. If such transfers are on request, no TA is admissible.

j. Matter Not Covered under the Companys Service Code


These service rules are not exhaustive of the terms and conditions of employment of employees under
the Company. Hence, it shall be understood that any action of the Company not covered by these service
rules in respect of the Companys interest or activity shall be binding on the employee.

k. Service of Orders Notices, etc:


In case the employee is absent from duty or refuses to accept and acknowledge any communication
notice or order, such communication shall be deemed to have been served if it is sent to the last known
address of the employee by registered post acknowledgement due or under certificate of posting and/or
exhibition of a copy of the same on the notice board of the Company

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Annexure
1) Salary and Allowances payable to the different cadres of employees

Note:

Cadre

Basic Pay
(Rs)

VDA
(Rs)

Special
Allow*

Potential
Performa
nce Pay**

Gross (Rs)

Credit Officers
Asst. Br. Managers
Branch Managers
Area Managers

3950
4250
4500
5000

2220
2220
2220
2220

2098
1738
2438
10,780

1100
1650
1650
6500

9,368
9,858
10,808
24,500

The Gross salary shown above does not include travelling expenses which will be paid based on no. of clients.
* The special allowance includes HRA and other allowances, but excludes Mobile allowance & Bonus.
** The potential performance Pay would depend on the number of loan clients handled.
Appropriate penalties would be recovered from salary for overdue loans as decided from time to time.

2) Increment rates for the different cadres of employees (subject to performance review)

Cadre

Basic
100
200
300
400

Credit Officers
Asst. Br. Managers
Branch Managers
Area Managers

Allow (VDA + Spl.


Allow)
400
550
700
1100

Gross
Increase
500
750
1,000
1,500

3) Mode of Travel, Boarding & Lodging entitlements


Sl.
No.

Field
Functionaries

Gen/Dy./Asst.
Gen. Manager

Area & Branch


Manager

Asst. Br,
Manager

Credit Officer

R.O. & A.O.


Functionaries

Travel
Entitlement

Departmental
Heads

3-Tier AC
or Volvo
Bus
II Sleeper
or
Rajhamsa
Bus
II Sleeper
or
Express
Bus
II Sleeper
or
Express
Bus

Senior
Manager
Manager
(Accounts,
Finance, HR
etc)
Officer
(Accounts,
Finance, HR
etc)

Lodging Expenses in
Rs/Day*
Other District State
Areas HQ
HQ

Boarding Expenses in
Rs/Day
Other District State
Areas HQ
HQ

300

400

700

125

150

200

200

350

500

125

150

200

200

300

400

125

125

150

150**

200**

300**

125

125

150

Note:
a. (*) Lodging bills will be paid only on production of Bills. To avail lodging facility, overnight stay must
be involved.
b. (**) For Credit Officers, lodging bills would be paid only when no facilities are available in the office
premises for overnight staying.

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