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A

PROJECT REPORT
NEW SCHEMES LAUNCH BY PRIME MINISTER OF INDIA
UNDERTAKEN IN:-

SUBMITTED TO:-

SUBIMTTED BY:-

Prof. ASHOK KUMAR JINDAL SIR

ANMOL SETIA

(H.O.D of Post Graduation dept. Commerce dept.)

(M.com 1st year (2nd SEM.))

R.S.D College, Ferozepur City

Roll No: - 45425

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

DECLARATION
I hereby declare that, I have carried out summe r tra ining
project on the topic entitled NEW SCHEMES LAUCH BY
PRIME MINISTER OF INDIA.
I further declare that this project work is based on my original work
and no part of this project has not been previously submitted to any
university for any examination.

ANMOL SETIA

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organization . I would like to extend my
sincere thanks to all of them. First of all, I would like to pay my heartiest thanks to entire
family of OBC BANK especially Mr.Mahesh Kumar Gupta, Branch manager, who provided
me such a wonderful opportunity to do Summer Training and provided their valuable
suggestions in understanding the work of Research Project,.
I am highly indebted to H.O.D OF POST GRADUATION
DEPARTMENT COMMERCE Prof. MR. ASHOK JINDAL for their guidance and
constant supervision as well as for providing necessary information regarding the project
& also their support in completing of this project. Working under them was an extremely
knowledgeable and enriching experience for me. I am very thankful for all the value
addition and enhancement done to me.
No words can adequately express my overriding debt of
gratitude to my parents whose support helps me in all the way. Above all I shall thank my
friends who constantly encouraged and blessed me so as to enable me to do this work
successfully.
The study had indeed helped me to explore more knowledgeable
avenues related to my topic and I am sure it will help me in my future.

ANMOL SETIA

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

PREFACE

This project report attempts to bring under one cover the entire hard work and dedication
put in by me in the completion of the project work on N.P.A and different schemes of
present government of OBC bank.
Survey is an excellent tool for
learning and exploration. No classroom routine can substitute which is possible while
working in real situations. Application of theoretical knowledge to practical situations is
the bonanzas of this survey. Without a proper combination of inspection and perspiration,
its not easy to achieve anything. There is always a sense of gratitude, which we express
to others for the help and the needy services they render during the different phases of our
lives.
I have expressed my experiences in my
own simple way. I hope who go through it will find it interesting and worth reading. All
constructive feedback is cordially invited.

ANMOL SETIA

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

INDEX
SR NO.
1)

PARTICULARS

2)
3)
4)

DECLARATION
ACKNOWLEDGEMENT
CERTIFICATE
PREFACE
TABLE OF CONTENTS

5)

CHAPTER-1COMPANY PROFILE
HISTORY OF BANKING SECTOR IN
INDIA
CURRENT PERIOD OF BANKING IN
INDIA
HISTORY OF OBC BANK
FACILITIES OFFERED BY OBC BANK
VISION & MISSION
BALANCE SHEET FOR LAST
3YEARS OF OBC BANK
CASH FLOW STATEMENT FOR LAST
3 YEARS OF OBC BANK

6)

CHAPTER-2 BRANCH PROFILE &


PARDHAN MANTRI JHAN DHAN
YOJANA
INTRODUCTION OF BRANCH

INTRODUCTION TO PMJDY
PURPOSE OF PMJDY
PERFORMANCE OF PMJDY
CRITICISM OF PMJDY
6
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

PAGE NO.
2
3
4
5

9-11
12-14
15-18
19-20
21
22-23
24

26
27-28
28
29-34
34-35

SR NO.
7)

TABLE OF CONTENTS
CHAPTER-3 RESEARCH
METHODOLOGY
NEED , OBJECTIVES, SCOPE
SAMPLE DESIGN
METHOD OF COLLECTION DATA
CONDUCTING SURVEY
KNOWLEDGE SHARING

8)

37
38
38-39
39
39

CHAPTER-4 DATA ANALYSIS &


INTREPRETATION
DATA ANALYSIS &
INTREPRETATION
FINDING
LIMITATIONS
SUGGESTIONS

9)

PAGE NO.

41-50
51
52
53

CHAPTER-5 ATAL PENSION


YOJANA
55-64
DETAIL OF SCHEME
CHAPTER-6 PARDHAN MANTRI
JEEVAN JYOTI BIMA YOJANA AND
PARDHAN MANTRI SURAKSHA
BIMA YOJANA
OVERVIEW OF PMJJBY
CRITICISM OF PMJJBY
DATA ANALYSIS
OVERVIEW OF PMSBY
CRITICISM OF PMSBY
DATA ANALYSIS

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

66
66
67
68
69
70

BIBLIOGRAPHY
71
72-76

ANNEXURE

Chapter-1

COMPANY PROFILE
HISTORY OF BANKING SECTOR IN INDIA
CURRENT PERIOD OF BANKING IN INDIA
HISTORY OF OBC BANK
FACILITIES OFFERED BY OBC BANK
BALANCE SHEET FOR LAST 3YEARS OF OBC BANK
CASH FLOW STATEMENT FOR LAST 3 YEARS OF OBC BANK

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

HISTORY OF BANKING SECTOR IN INDIA

Banking in India in the modern sense originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829-32; and the General Bank of India, established 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India. It originated
as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal.
This was one of the three banks funded by a presidency government; the other two were
the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to
form the Imperial Bank of India, which upon India's independence, became the State
Bank of India in 1955. For many years the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in 1935,
under the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks under
the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate
banks. In 1969 the Indian government nationalized 14 major private banks. In 1980, 6
more private banks were nationalized. These nationalized banks are the majority of
lenders in the Indian economy. They dominate the banking sector because of their large
size and widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. The scheduled banks are those which are included under the 2nd Schedule of the
Reserve Bank of India Act, 1934. The scheduled banks are further classified into:
nationalized banks; State Bank of India and its associates; Regional Rural Banks (RRBs);
foreign banks; and other Indian private sector banks. The term commercial bank refers to
both scheduled and non-scheduled commercial banks which are regulated under
the Banking Regulation Act, 1949.
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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Generally banking in India was fairly mature in terms of supply, product range and reacheven though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and Rural
Development with things like microfinance.

Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end of
a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial
Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This
resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:

The Reserve Bank of India, India's central banking authority, was established in
April 1935, but was nationalized on 1 January 1949 under the terms of the Reserve
Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[16]

In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".

The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two banks
could have common directors.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Nationalization in the 1960


Despite the provisions, control and regulations of the Reserve Bank of India, banks in
India except the State Bank of India(SBI), continued to be owned and operated by private
persons. By the 1960s, the Indian banking industry had become an important tool to
facilitate the development of the Indian economy. At the same time, it had emerged as a
large employer, and a debate had ensued about the nationalization of the banking
industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of
the Government of India in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper
with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance,
1969') and nationalized the 14 largest commercial banks with effect from the midnight of
19 July 1969. These banks contained 85 percent of bank deposits in the country.
Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed
the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received
the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalisation, the Government of India controlled
around 91% of the banking business of India. Later on, in the year 1993, the government
merged New Bank of India with Punjab National Bank.[18] It was the only merger
between nationalized banks and resulted in the reduction of the number of nationalised
banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of
around 4%, closer to the average growth rate of the Indian economy.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

CURRENT PERIOD OF BANKING IN INDIA


All banks which are included in the Second Schedule to the Reserve Bank of India Act,
1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and
Scheduled Co-operative Banks. Scheduled Commercial Banks in India are categorised
into five different groups according to their ownership and/or nature of operation. These
bank groups are:

State Bank of India and its Associates

Nationalised Banks

Private Sector Banks

Foreign Banks

State Co-operative Banks.

In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised Banks.
Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and
Scheduled Urban Cooperative Banks.
By 2010, banking in India was generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector
and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake
in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor
has been allowed to hold more than 5% in a private sector bank since the RBI announced
norms in 2005 that any stake exceeding 5% in the private sector banks would need to be
vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and personal
loans. There are press reports that the banks' loan recovery efforts have driven defaulting
borrowers to suicide.
By 2013 the Indian Banking Industry employed 1,175,149 employees and had a total of
109,811 branches in India and 171 branches abroad and manages an aggregate deposit
of 67504.54 billion (US$1.1 trillion or 1.0 trillion) and bank credit of 52604.59
billion (US$830 billion or 780 billion). The net profit of the banks operating in India
was 1027.51 billion (US$16 billion or 15 billion) against a turnover of 9148.59
billion (US$140 billion or 140 billion) for the financial year 2012-13.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

On 28 Aug, 2014, Pradhan Mantri Jan Dhan Yojana is a scheme for


comprehensive financial inclusion launched by the Prime Minister of India, Narendra
Modi. Run by Department of Financial Services, Ministry of Finance, on the inauguration
day, 1.5 Crore (15 million) bank accounts were opened under this scheme By 10 January
2015, 11.5 crore accounts were opened, with around 8698 crore (US$1.4 billion) were
deposited under the scheme which also has an option for opening new bank accounts with
zero balance.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

The Chart shows the Structure of Banking in INDIA.

15
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Brief history of OBC bank

Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank, founded OBC in 1943
in Lahore. Within four years of its coming into existence, OBC had to face Partition. The
bank had to close down its branches in the newly formed Pakistan and shift its registered
office from Lahore to Amritsar. Lala Karam Chand Thapar, the then Chairman of the
Bank, in a unique gesture honored the commitments made to the depositors from Pakistan
and paid every rupee to its departing customers.
The Bank has witnessed many ups and downs since its establishment. The period of
1970-76 is said to be the most challenging phase in the history of the Bank. At one time
profit plummeted to 175 that prompted the owner of the bank, the Thapar House, to sell /
close the bank. Then employees and leaders of the Bank came forward to rescue the
Bank. The owners were moved and had to change their decision of selling the bank and
in turn they decided to improve the position of the bank with the active cooperation and
support of all the employees. Their efforts bore fruits and performance of the bank
improved significantly. This was the turning point in the history of the bank
The bank was nationalized on 15 April 1980. At that time OBC ranked 19th among the 20
nationalized bank
In 1997, OBC acquired two banks: Bari Doab Bank and Punjab Cooperative
Bank. The acquisition of these two banks brought with it no additional branches.
On 14 August 2004, OBC amalgamated Global Trust Bank (GTB). GTB was a leading
private sector bank in India that was associated with various financial discrepancies
leading to a moratorium being imposed by RBI shortly before it merged into OBC. The
acquisition brought with it 103 branches, which increased OBC's branch total to 1092.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Chairpersons
The Chairpersons (CMD) of the bank were as under :-

Name

Period

Karam Chand
Thapar

1946 to 1961

L. M. Thapar

1961 to 1969

R. P. Oberoi

1973 to 1976

M. K. Vig

1976 to 1983

P. S.
Gopalakrishnan

1984 to 1988

S. P. Talwar

1988 to 1990

S. K. Soni

1990 to 1996

Dalbir Singh

1996 to 2000
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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

B. D. Narang

2000 to 2005

K. N. Prithviraj

2005 to 2007

T. Y. Prabhu August

2009 to January 2011

Nagesh Paidah

January 2011 to February 2012

S.L. Bansal

March 2012 to September 2014

Sh. Animesh
Chauhan

December 2014 to Present (as Managing Director and Chief


Executive Officer of the bank)

OVERVIEW:18
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

The
bank
offers a wide range
of
banking
products
and
services such
as deposit accounts,
loans, debit cards, credit cards (with tie up with SBI), Insurance products, ATMs, Internet
banking, Mobile Banking, Self-banking halls, call centre, etc.
The Bank has launched yet another people's participation in the planning process at grass
root level essentially to tackle the maladies of poverty. The Grameen Projects venture
aims to alleviate poverty plus identify the reasons responsible for the failure or success.
OBC is already implementing a GRAMEEN PROJECT in Dehradun District (UK)
and Hanumangarh District (Rajasthan). Formulated on the pattern of the Bangladesh
Grameen Bank, the Scheme has a unique feature of disbursing small loans ranging
from 75 (~US $1.5) onwards. The beneficiaries of the Grameen Project are mostly
women. The Bank is engaged in providing training to rural folk in using locally available
raw material to produce pickles, jams etc. This has provided self-employment and
augmented income levels thus reforming lives of rural folk and encouraging cottage
industries in rural areas.
OBC launched yet another unique scheme christened 'The Comprehensive Village
Development Program on the auspicious day of Baisakhi, the 13th of April 1997 at three
villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and
Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind)
and Narwal (Distt. Kaithal). The pilot launch was a great success. Emboldened by the
success, Bank extended the programme to more villages. At present, it covers 15 villages;
10 in Punjab, 4 in Haryana and 1 in Rajasthan. The program focuses on providing a
comprehensive and integrated package providing rural finance to the villagers with
Village Development as its focus, thus contributing towards infrastructural development
and augmentation of income for each farmer of the village. The Bank has implemented
14 point action plan for strengthening of credit delivery to women and has designated 5
branches as specialized branches for women entrepreneurs.

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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Facilities offered by OBC bank :The following services are being offered through Oriental Banks iBanking Services, Free
of Cost: Services offered through Oriental Banks iBanking
Presently following online facilities are offered through Internet Banking
Channel: Online generation of Statement of Account For a given period, Range of Cheque
Nos and Amount.
Facility for Stop payment of Cheques, Cheque Status Inquiry and Clearing
Instruments.
Customer can make NEFT/ RTGS payments without incurring any cost.
1) Funds Transfer and Other Services :Funds Transfer to own linked accounts
3rd Party Funds Transfer to other Banks accounts (through NEFT/RTGS).
3rd Party Funds Transfer to other accounts within OBC.
Loan EMI Payment
Online creation of e-FDRs/ e-CDRs.
Purchase of Air Tickets and Railway Tickets.
Payment of Direct and Indirect taxes, VAT collection for Maharashtra Govt.
Funds transfer facilities for Trading of Shares through ShareKhan.com
FORM26AS Online Tax credit view statement.
Tracker ID through Email System for select Branches covered under J&K state.
Facilitating online view of (DeMAT) Depository details for Retail Net Banking.
Lien Based Online Share Trading with M/s. Karvy,
Funds Transfer Transaction Limits for 3rd Party Funds Transfer and e-Commerce
Transactions:
Minimum Amount : Rs.100/- per transaction
Maximum Amount : Rs. 2,00,000/- per transaction
Per Day Maximum : Rs.4,00,000/

2) Utility Bill Payment :-

20
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

E-Commerce (EShoppe):- More than 3000 Merchant establishments have been


integrated with Banks Internet Banking Services.
User can make payment of various Utility Bills online viz. Electricity, Telephone,
Mobile, LIC Premiums, Credit cards, Travel & Ticketing, Mutual Funds etc.
Customer can also make Donations and make Credit Card payments like ICICI
Bank, SBI, CITI Bank, Barclays Bank etc.
3) Request for Issuance of Cheque Book, PO-DD etc : Net Banking Customers can also put their request for issuance of Cheque Book,
PO/DD etc, which are processed at Backend by the Relationship Manager.
4. Mails: Customer can also exchange mails through Internet Banking for any queries.
5. Activity: Customer can inquire various financial and non-financial activities performed
during a period of time.
6. Customize :Facility provided to :
Change Sign On or Transaction password
Registration for Online Password facility.
Add Nick names to customers accounts for easy identification.
Change display formats as per customers preferences like Date Format, Amount
Format, Add email id, Change your Salutation etc.

Vision & Mission Statement


21
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

VISION STATEMENT
"TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO
ENHANCING STAKEHOLDER VALUE"

MISSION STATEMENT
Provide quality, innovative services with state-of-the-art technology in line with
customer expectations.
Enhance employees professional skills and strengthen cohesiveness.
Create wealth for customers and other stakeholders.
22
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

23
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

OBC BANK BALANCE SHEET FOR LAST 3 YEARS

24
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Balance Sheet of Oriental Bank of


Commerce

-------------- in Rs. Cr. -------------------

Mar '15

Mar '14

12 months

12 mths

12 mths

Total Share Capital

299.85

299.85

291.76

Equity Share Capital

299.85

299.85

291.76

12,857.60

12,479.51

11,807.15

Capital and Liabilities:

Reserves

25
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Net Worth

13,157.45

12,779.36

12,098.91

204,009.70

193,488.96

175,897.52

Borrowings

6,545.02

7,863.61

7,679.33

Total Debt

210,554.72

201,352.57

183,576.85

6,179.52

5,519.26

4,344.81

229,891.69

219,651.19

200,020.57

Mar '14

Mar '13

Deposits

Other Liabilities & Provisions


Total Liabilities

Assets

Cash & Balances with RBI

Mar '15

10,188.38

9,981.15

8,171.94

587.42

4,287.77

417.68

145,261.30

139,079.84

128,955.06

Investments

68,440.45

61,472.23

58,554.66

Gross Block

1,342.38

1,224.23

1,210.50

621.90

651.32

676.63

0.00

0.00

0.00

720.48

572.91

533.87

10.15

31.34

16.91

Other Assets

4,683.49

4,225.94

3,370.45

Total Assets

229,891.67

219,651.18

200,020.57

Balance with Banks, Money at Call


Advances

Revaluation Reserves
Accumulated Depreciation
Net Block
Capital Work In Progress

26
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Contingent Liabilities
Bills for collection
Book Value (Rs)

61,103.01

79,547.15

93,198.91

0.00

0.00

0.00

438.80

426.19

414.69

OBC BANK CASH FLOW STATEMENT FOR LAST 3 YEARS


Cash Flow of Oriental
Bank of Commerce

----------- in Rs. Cr. -----------Mar '15

Mar '14

12 mths

12 mths

12 mths

497.08

1139.41

1327.95

-4154.05

6520.45

-496.16

-295.23

-167.69

-89.43

956.17

-673.45

448.25

Net (decrease)/increase In Cash and Cash


Equivalents

-3493.11

5679.30

-137.33

Opening Cash & Cash Equivalents

14268.92

8589.62

8726.95

Closing Cash & Cash Equivalents

10775.81

14268.92

8589.62

Net Profit Before Tax


Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities

27
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Mar '13

28
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Chapter-2
BRANCH PROFILE
INTRODUCTION OF BRANCH
INTRODUCTION OF PMJDY
PURPOSE OF PMJDY
PERFORMANCE OF PMJDY
CRITICISM OF PMJDY

29
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

INTRODUCTION OF BRANCH
ORIENTAL BANK OF COMMERCE - KHAI PHEME KE is located in PUNJAB state,
FEROZEPUR district. This branch is firstly located in village MEHMA but after the
terrorist attack this branch was transfer to KHAI PHEME KE IN 1980 .There are 7 staff
members and a branch manager in the branch.
This branch provides many services like: Speed clearing,
ATM service,
SMS Banking,
Mobile Banking,
Fund Transfer,
Housing/Education/Vehicle Loans,
Locker facility,
Bill Payment,
30
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Internet banking,
e-KYC

The IFSC Code is ORBC0100497. Branch code is the last six characters of the IFSC
Code - 100497.

31
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

NEW SCHEMES LAUNCH BY PRIME MINISTER OF INDIA


IN BANKING SECTOR

32
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

PRADHAN MANTRI JHAN DHAN YOJNA (PMJDY)


Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial
Inclusion to ensure access to financial services, namely Banking Savings & Deposit
Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. This financial
inclusion campaign was launched by the Prime Minister of India, on 28 August 2014. He
had announced this scheme on his first Independence Day speech on 15 August 2014.

Purpose:In a run up to the formal launch of this scheme, the Prime Minister personally mailed to
Chairmans of all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore
(75 million) households and to open their accounts. In this email he categorically
declared that a bank account for each household was a "national priority".
The scheme has been started with a target to provide 'universal access to banking
facilities' starting with "Basic Banking Accounts" with overdraft facility of Rs.5000 after
six months and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and
RuPay Kisan Card. In next phase, micro insurance & pension etc. will also be added.

33
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Under the scheme:


1) Account holders will be provided zero-balance bank account with RuPay debit card,
in addition to accidental insurance cover of Rs 1 lakh (to be given by 'HDFC Ergo').
2) Those who open accounts by January 26, 2015 over and above the 1 lakh accident,
they will be given life insurance cover of 30,000(to be given by LIC).
3) After Six months of opening of the bank account, holders can avail 5,000 overdrafts
from the bank.
4) With the introduction of new technology introduced by National Payments
Corporation of India (NPCI), a person can transfer funds, check balance through a normal
phone which was earlier limited only to smart phones so far.
5) Mobile banking for the poor would be available through National Unified USSD
Platform (NUUP) for which all banks and mobile companies have come together.

Performance:Due to the preparations done in the run-up, as mentioned above, on the inauguration day,
1.5 Crore (15 million) bank accounts were opened. The Prime Minister said on this
occasion- "Let us celebrate today as the day of financial freedom." By September 2014,
3.02 crore accounts were opened under the scheme, amongst Public sector banks, SBI
had opened 30 lakh (3 million) accounts, followed by Punjab National Bank with 20.24
lakh (2 million) accounts, Canara Bank 16.21 lakh (1.62 million) accounts, Central Bank
of India 15.98 lakh (1.59 million) accounts and Bank of Baroda with 14.22 lakh (1.42
million) accounts. It was reported that total of 7 Crore (70 million) bank accounts have
been opened with deposits totaling more than 5000 crore Rupees (approx 1 billion USD)
as of November 6, 2014.
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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

As the government met the target, Union Finance Minister Arun Jaitley has revised the
target for opening of bank accounts under the Pradhan Mantri Jan Dhan Yojana
(PMJDY), the ambitious financial inclusion scheme launched by the government, from
7.5 crore to 10 crore by January 26, 2015. On 20th January 2015, the scheme entered into
Guinness book of world records setting new record for 'The most bank accounts opened
in one week'.

Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on


(08.07.2015)
(All Figures in Crores)
No Of Accounts
S.N
o

Rur
al

Urba Tota
n
l

No Of
Rupay
Debit
Cards

Balance In
Accounts

% of Zero
Balance
Accounts

Public Sector
Banks

7.15

5.92

13.0
7

12.12

15428.3

51.26

Regional Rural
Banks

2.54

0.44

2.98

2.14

3445.54

50.67

Private Banks

0.4

0.28

0.68

0.61

1116.69

50

Total

10.1

6.64

16.7
3

14.87

19990.52 cro
re

51.11

35
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

36
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Jan Dhan Yojana features in


Guinness Book of World Records

37
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

"Most of India today is included in the banking system," finance minister Arun
Jaitley told reporters on Tuesday. The Pradhan Mantri Jan-Dhan Yojana (PMJDY),
launched by Prime Minister Narendra Modi in August, was recognised for opening the
most bank accountsabout 1.80 crore in one week as part of the financial inclusion
campaign.

The government has already rolled out direct transfer of benefits for various programs.
This includes the Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) in 300 districts that's expected to cover 4.3 crore beneficiaries with a fund
flow of Rs 15,000 crore annually besides transfers under various pension and scholarship
schemes.
"Full rollout will take total beneficiaries under MGNREGS up to 10 crore with Rs 33,000
crore funds flow annually," said financial services secretary Hasmukh Adhia.
Apart from transfers worth Rs 51,029 crore under various welfare schemes and rural jobs
program, cooking gas subsidies are also being transferred to 15.34 active consumers. This
is part of the plan to link it with bank accounts under a modified direct benefit transfer for
LPG from January 1. The government has already disbursed Rs 6,688.98 crore to 8.03
crore LPG customers up to January 14 and the figure could go up to Rs 25,000-Rs 30,000
crore annually.
The government has rolled out 34 welfare schemes on the direct benefits transfer (DBT)
platform with around 9.90 crore beneficiaries, including the partial linking of benefits
under the rural jobs scheme.
The number of accounts opened under PMJDY stood at 11.5 crore as of January 17 after
a survey of 21.02 crore households. Of total bank accounts opened, 3.23 crore have
deposits worth Rs 9,188 crore.
Rupay cards have been issued to more than 10 crore beneficiaries. "This is an
unprecedented initiative. Bank employees have physically visited all households except
the inaccessible areas," said Jaitley, adding that the government has far exceeded its
target and will decide later on whether to continue with the incentives given to customers
on opening a bank account.
38

ORIENTAL BANK OF COMMERCE


KHAI PHEME KI (FEROZEPUR)

The finance minister said the idea was to move to cash-less society in the long run. The
overdraft facility under the scheme will act as a micro financing platform with no
exploitative interest rates.

According to reports, 16.73 crore accounts were opened by banks across the country as of
January
16.
Of
this,
8.24
crore
account
are
zero
balance.
Public sector banks alone opened 13.07 crore accounts, followed by regional rural banks
which opened about 2.98 crore accounts. 13 private sector banks together open just 68
lakh accounts.

Criticism:The scheme has been criticized by many experts from the banking sector as an effort to
please voters that has created unnecessary work-burden on the public-sector banks. The
opposition party Congress alleged that Mr Modi was trying to take credit of the financial
inclusion scheme started by UPA government and the new yojana had got nothing new.
39
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

According to the experts, temptations presented by the Prime Minister like zero balance,
free insurance and overdraft facility would result in duplication. Many individuals who
already have bank accounts may have had accounts created for themselves, lured by the
insurance covers and overdraft facilities. As per the scheme, a very few people are
eligible to get the life insurance worth 30,000 with a validity of just five years. However,
these 'secret' conditions were not shown in the TV advertisements of the scheme. The
claimed overdraft facility has been completely left upon the banks. As per the
government notice, only those people would get the overdraft facility whose transaction
record is satisfactory as per the banks. It is quite unlikely that many people would get this
facility as the banks would avoid potential NPAs. The claimed accidental insurance has
also proved to be a non-existing scheme as the Rupay card holders have got no legal
paper for any such accidental insurance.

40
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Chapter-3
RESEARCH METHODOLOGY
NEED, OBJECTIVE, SCOPE
SAMPLE DESIGN
METHOD OF DATA COLLECTION
CONDUCTING SURVEY
KNOWLEDGE SHARING

41
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Need of the study


Whether those who could not get banking facility earlier have got it now after
announcement of PMJDY.
Whether all eligible and desirous have been able to established banking
relationship with bank in the village.
Having opened the account, whether all of them have met the criteria of getting
Life Insurance, Personal Accident cover And Rupay card.

Rational objectives of the study


To identify level of awareness on PMJDY among resident of village Khai Pheme
Ki, District Ferozepur, Punjab.
To identify the level of usage of benefits arising out of PMJDY.

Scope of the study


The target group includes unemployed people, house wife, and people engaged in
small business in village.
The target groups are people residing in village Khai Pheme Ki, District Ferozepur,
Punjab.
Banking habits and awareness about financial product and services come with
preview of study.

RESEARCH METHODOLOGY
42
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

The project aims at understand the level of awareness and achievement of RBI and Govt.
of INDIA efforts in achieving the dreams target financial inclusion. The survey was
conducted among 50 residents of village Khai Pheme ki, District Ferozepur, Punjab.

SAMPLE DESIGN: Target population:- The target audience includes the residents of village Khai
Pheme Ki, Distict Ferozepur , Punjab
Sample Size: - The sample size for the research is 50 residents.
Sample Method:- The sample method included conducting a survey with resident
either through personal interaction. Convenience sampling technique was adopted.
METHOD OF DATA COLLECTION:The method included preparing a questionnaire with question mainly related to awareness
of basic banking. The process included visiting the village and generating information
about their facilities they are using.

The meeting was done as per the preference of the resident it was done in the following
two ways:43
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

1) Personal interaction: - This method was most preferred as it results in increase in


knowledge of both the parties and adds a personal touch, which is not present in
telephonic interaction.
2) Telephonic interaction:- This method was less preferred, as it didnt gave an idea
as who is responding to the questions, it was like blindly trusting the respondent
about his identity.

CONDUCTING SURVEY:The survey was conducted with the help of questionnaire. It was either filled by me or by
the respondents. In 55% cases the respondent was unable to fill the questionnaire in
his/her writing.

KNOWLEDGE SHARING:A person learns throughout his life, so keeping this in mind, knowledge was shared both
ways. I learnt the problem of respondents, the way they work and I created awareness
about PMJDY.

Chapter-4
44
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

DATA ANALYSIS &


INTERPRETATION
ANALYSIS & INTERPRETATION
FINDINGS
LIMITATIONS
SUGGESTIONS

DATA ANALYSIS AND INTERPRETATION


The primary data of accounts opened in OBC Bank KHAI PHEME KI (Ferozepur). The
provided by bank is between 15 August 2014 - 31 December 2014. Total accounts open
between that period is 2886 approx.
Accounts open between that period is shown month wise in following table and diagram:45
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

MONTH

A/cs open

August

282

September

539

October

579

November

628

December

858

A/c's opened under Pardhan Mantri Jhan Dhan Yojana in OBC Bank KHAI PHEME KI (Ferozepur)
1000
900
800
700
600
500
400
300
200
100
0

A/c's opened under


Pardhan Mantri Jhan Dhan
Yojana in OBC Bank KHAI
PHEME KI (Ferozepur)
Polynomial (A/c's opened
under Pardhan Mantri
Jhan Dhan Yojana in OBC
Bank KHAI PHEME KI
(Ferozepur))

Q1). For how long you have been staying in this village?
a). Less than a year

b). 1 to 5 years

c). More than 5 years

46
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

how long you have been staying in this village


2

Less than a year

10

1 to 5 years
More than 5
years

38

ANALYIS
According to the given information from secondary sources it was conclude that 76%
people in the village are staying more than 5 years in the village .

Q2). Whether your family is Joint or Nuclear family?


a). Joint family

b). Nuclear Family

Families
40
30
20
10
0

36
14

Family

ANALYIS
47
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

From the survey, I get that most of the families are nuclear family.
Q3). Does any one in your family have bank account?
a). Yes

b). No

Bank account
50
40
bank account

30
20
10
0
Yes

No

ANALYIS
According the secondary data most of the people in the village have their bank a/c.

Q3.1) No of account in your family?


i)

iii)

ii)

iv) more than 3

48
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Bank a/c
4

2
3

11

more than 3

27

ANALYIS
From the above pie chart we get that 60%people have one bank a\c and 25% have 2 bank
a/c in family and rest have 3 or more than 3 bank a/c.
Q3.2) which type of account do you have?
i)

Saving a/c

iii) Fixed deposit a/c

ii)

Current a/c

iv) Recurring deposit a/c

Account type
35
30
25
20
15
10
5
0

33
7

Account type

ANALYIS
49
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

According to secondary data, the most of the accounts in the village are saving account.
Only few people have current a/c as well as other two accounts.

Q3.3) what were the reasons that your family opened the account?
i)

To receive government payments from NREGA

ii)

To receive government payments from scheme other than NREGA

iii)

For saving

iv)

To request a loan

v)

If other , please specify _______________________________

50
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Reasons that your family opened the account


5

2
To receive government
payments from NREGA
To receive government
payments from scheme other
than NREGA
For saving
To request a loan
Other reason

12

5
21

ANALYIS
From the above chart it is clear that 47% people open account for saving , 27% open for
payment from NREGA and 11% open for other schemes and loan request each and 4%
have some other reason .
Q3.4) who helped you while opening the account?
i)

Village panchayat official

ii)

Bank official

iii)

Neighbors/Friends/Relatives/Employer

iv)

Business correspondent/Post office

51
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Who helped you while opening the account


18
16
14
12
10
8
6
4
2
0

Who helped you while opening


the account

ANALYSIS
According to secondary data, most of the accounts are opened with the help of Bank
Official and after that village panchayat helped to open.
Q4). Reason for not having even a single bank account in your family?
A). Very little money to put in
B). No banking facilities in area
C). Lengthy procedures
D). Many charges are there
E). Tried to open but was refused
F). other (please specify) _______________
52
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Reason for not having even a single bank account in your family
20
14
15
10
5
0

19
5

Reason for not having


even a single bank
account in your family

ANALYSIS
After the survey we get that people in the village tried to open the account but their was
refusal by bank due to not fulfillment of KYC norms of the person who want to open the
account and people in the village also have very liitle money and they dont want any
charges on that money also.
Q4.1) Reason for being refused by bank a/c?
i)

No id proof

ii)

No address proof

iii)

Dont know

iv)

Other (please specify) __________________


53
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Reason for being refused by bank a/c


14
12
10
8
6
4
2
0

12
5

Reason for being


refused by bank a/c

ANALYSIS
From the above graph we get that people in the village have no id
proof as well as no address proof because Ration card is not regarded
as any proof because of KYC norms.

Q5). Awareness about basic banking saving account which was


announced on 15 august 2014?
i)

Good

ii) Medium

iii) Poor

54
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Awareness about basic banking saving account which was announced on 15 august 2014
Good
Medium
Poor

Good; 8
Poor; 23
Medium; 19

ANALYSIS
From the secondary data it was concluded that people in the village
have poor knowledge about the saving a/c which was announced on
15-august-2014 by PM Narendra Modi and only few people have full
knowledge that announcement.

Q5.1). Reason for not having awareness about Basic saving a/c?
i)

No promotion by banks , government or village


panchayat in village

ii)

Not in a habit of reading newspaper

iii)

Lack of media Advertisement via TV/Radio

55
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Reason for not having awareness about Basic saving a/c


18

17

16
14
Reason for not having
awareness about
Basic saving a/c

12
10
8

6
4
2
0
No promotion by banks , government
0 or village panchayat in village

ANALYSIS
From the graph we get that people in the village have not habit of
reading news paper and there is also some lack of media
advertisement also.

Q6) Are you aware about the various facilities covered under PMJDY like :(I- Overdraft facility of 5,ooo, II Life insurance cover, III Personal
accident cover , VI- Rupay card )
i)

Yes

ii)

No

56
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Are you aware about the various facilities covered under PMJDY

34%

Yes
No

66%

ANALYSIS
According to secondary data 34% people in the village are aware about the PMJDY, they
dont know about Overdraft facility of 5,ooo , Life insurance cover , Personal accident
cover , Rupay card facilities under PMJDY.

57
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

FINDINGS
Through survey following things have been find out: Out of 50 household 5 families dont have bank a/c.

Majority of the people open bank account in order to save money i.e. 33 people
have saving a/c and 12 people open a/c to receive payment from NREGA.

Bank officials are doing there level best so most of the accounts are opened by
them and after that village pancahyat help them to open.
People in the village tried to open the account but they dont have valid proofs to
open the account. They also have very little money to put in so they avoid opening
the a/c.
People in the village are also not aware of PMJDY which was inaugurated by
Narendra Modi on 15-august-2014 due to lack advertising and people have not
habit of reading the newspaper.
They are also not aware about the facilities covered under PMJD only 34% people
are fully aware about those facilities.

58
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Limitations of the study

There is shortage of time to conduct the study. Due to shortage of time smaller
sample size has been taken which may not be true representative of whole
universe.
Due to time constraint, it was not possible to observe every aspect of financial
inclusion program.
Due to conservative nature, it may be possible some respondents may not have
their responses in the questionnaire in fully true manner.

Since the respondents may be busy with busy schedule so many people may be
reluctant to answer.

59
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

SUGGESTIONS
Some suggestions regarding the research are as follows: Promote financial product and services:- Reserve bank and government bank
should give the suggestion to commercial bank to promote the financial product
and services of banking through all the educational institution.
Develop financial literacy: - The government of India should help to develop
financial literacy among the population, particularly in low income families. That
can be done by teaching it in Primary school, High school, and collage.
Telecom companies:- Telecom companies should be allowed to provide payments
and money transfer services.
Add extra incentives to lend in rural area:- The RBI should mandate the
commercial banks have a certain percentage of their portfolio in small loans. The
children have to attend the school before they are eligible for loan. Similar some
conditions have been imposed for eligibility of loan in INDIA. The government
could also add some extra incentives to lend in rural area.
Encourage people to access banking services: - The bank should step up to over
whelm all these problems and to disseminate its services to remote area. The bank
should encourage the people to access banking services by way of no frill account.
Directing government benefits through service area bank:- Any government or
social security payments or payments under all the govt. schemes should be strictly
routed through the service area bank account.

60
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

Chapter-5
ATAL PENSION YOJANA
DETAIL OF SCHEME

61
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

ATAL PENSION YOJANA


Details of the Scheme:-

1. Introduction: The Government of India is extremely concerned about the old age income
security of the working poor and is focused on encouraging and enabling them to
join the National Pension System (NPS). To address the longevity risks among the
workers in unorganized sector and to encourage the workers in unorganized sector
to voluntarily save for their retirement, who constitute 88% of the total la bour
force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not
have any formal pension provision, the Government had started the Swavalamban
Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate
mainly due to lack of guaranteed pension benefits at the age of 60.
The Government announced the introduction of universal social security schemes
in the Insurance and Pension sectors for all Indians, specially the poor and the
under-privileged, in the Budget for the year 2015-16. Therefore, it has been
announced that the Government will launch the Atal Pension Yojana (APY), which
62
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

will provide a defined pension, depending on the contribution, and its period. The
APY will be focused on all citizens in the unorganized sector, who join the
National Pension System (NPS) administered by the Pension Fund Regulatory and
Development Authority (PFRDA). Under the APY, the subscribers would receive
the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000
per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years,
depending on their contributions, which itself would be based on the age of joining
the APY. The minimum age of joining APY is 18 years and maximum age is 40
years. Therefore, minimum period of contribution by any subscriber under APY
would be 20 years or more. The benefit of fixed minimum pension would be
guaranteed by the Government. The APY would be introduced from 1st June,
2015.

2. Benefit of APY: Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he joins
and contributes between the age of 18 years and 40 years. The contribution levels
would vary and would be low if subscriber joins early and increase if he joins late.

3. Eligibility for APY: Atal Pension Yojana (APY) is open to all bank account holders. The Central
Government would also co-contribute 50% of the total contribution or Rs. 1000 per
annum, whichever is lower, to each eligible subscriber account, for a period of 5
years, i.e., from Financial Year 2015-16 to 2019-20, who join the NPS between the
period 1st June, 2015 and 31st December, 2015 and who are not members of any
statutory social security scheme and who are not income tax payers. However the
scheme will continue after this date but Government Co-contribution will not be
available.

63
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

The Government co-contribution is payable to eligible PRANs by PFRDA after


receiving the confirmation from Central Record Keeping Agency at such
periodicity as may be decided by PFRDA.

4. Age of joining and contribution period: The minimum age of joining APY is 18 years and maximum age is 40 years. The
age of exit and start of pension would be 60 years. Therefore, minimum period of
contribution by the subscriber under APY would be 20 years or more.

5. Focus of APY: Mainly targeted at unorganized sector workers.

6. Enrolment and Subscriber Payment: All bank account holders under the eligible category may join APY with auto debit
facility to accounts, leading to reduction in contribution collection charges. The
subscribers should keep the required balance in their savings bank accounts on the
stipulated due dates to avoid any late payment penalty. Due dates for monthly
contribution payment is arrived based on the deposit of first contribution amount.
In case of repeated defaults for specified period, the account is liable for
64
ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

foreclosure and the GoI co-contributions, if any shall be forfeited. Also any false
declaration about his/her eligibility for benefits under this scheme for whatsoever
reason, the entire government contribution shall be forfeited along with the penal
interest. For enrolment, Aadhaar would be the primary KYC document for
identification of beneficiaries, spouse and nominees to avoid pension rights and
entitlement related disputes in the long-term. The subscribers are required to opt
for a monthly pension from Rs. 1000 - Rs. 5000 and ensure payment of stipulated
monthly contribution regularly. The subscribers can opt to decrease or increase
pension amount during the course of accumulation phase, as per the available
monthly pension amounts. However, the switching option shall be provided once
in year during the month of April. Each subscriber will be provided with an
acknowledgement slip after joining APY which would invariably record the
guaranteed pension amount, due date of contribution payment, PRAN etc.

7. Enrolment agencies: All Points of Presence (Service Providers) and Aggregators under Swavalamban
Scheme would enroll subscribers through architecture of National Pension System.
The banks, as POP or aggregators, may employ BCs/Existing non - banking
aggregators, micro insurance agents, and mutual fund agents as enablers for
operational activities. The banks may share the incentives received by them from
PFRDA/Government, as deemed appropriate.

8. Operational Framework of APY: It is Government of India Scheme, which is administered by the Pension Fund
Regulatory and Development Authority. The Institutional Architecture of NPS
would be utilized to enroll subscribers under APY. The offer document of APY
including the account opening form would be formulated by PFRDA.
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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

9. Funding of APY: Government would provide (i) fixed pension guarantee for the subscribers; (ii)
would co-contribute 50% of the total contribution or Rs. 1000 per annum,
whichever is lower, to eligible subscribers; and (iii) would also reimburse the
promotional and development activities including incentive to the contribution
collection agencies to encourage people to join the APY.

10. Migration of existing subscribers of Swavalamban Scheme to APY: The existing Swavalamban subscriber, if eligible, may be automatically migrated
to APY with an option to opt out. However, the benefit of five years of government
Co-contribution under APY would not exceed 5 years for all subscribers. This
would imply that if, as a Swavalamban beneficiary, he has received the benefit of
government Co-Contribution of 1 year, then the Government co-contribution under
APY would be available only 4 years and so on. Existing Swavalamban
beneficiaries opting out from the proposed APY will be given Government cocontribution till 2016- 17, if eligible, and the NPS Swavalamban continued till
such people attained the age of exit under that scheme.
The existing Swavalamban subscribers between 18-40 years will be automatically
migrated to APY. For seamless migration to the new scheme, the associated
aggregator will facilitate those subscribers for completing the process of migration.
Those subscribers may also approach the nearest authorised bank branch for
shifting their Swavalamban account into APY with PRAN details.
The Swavalamban subscribers who are beyond the age of 40 and do not wish to
continue may opt out the Swavalamban scheme by complete withdrawal of entire
amount in lump sum, or may prefer to continue till 60 years to be eligible for
annuities there under.
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ORIENTAL BANK OF COMMERCE
KHAI PHEME KI (FEROZEPUR)

11. Penalty for default: Under APY, the individual subscribers shall have an option to make the
contribution on a monthly basis. Banks are required to collect additional amount
for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs
10/- per month as shown below:
o Rs. 1 per month for contribution upto Rs. 100 per month.
o

Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.

o Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
o Rs. 10 per month for contribution beyond Rs 1001/- per month. The
fixed amount of interest/penalty will remain as part of the pension
corpus of the subscriber.
Discontinuation of payments of contribution amount shall lead to following:
o After 6 months account will be frozen.
o After 12 months account will be deactivated.
o After 24 months account will be closed.

12. Operation of additional amount for delayed payments: APY module will raise demand on the due date and continue to raise demand till
the amount is recovered from the subscribers account.
The due date for recovery of monthly contribution may be treated as the first day
/or any other day during the calendar month for each subscriber. Bank can recover
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amount any day till the last day of the month. It will imply that contribution are
recovered as and when funds are available any point during the month.

Monthly contribution will be recovered on FIFO basis- earliest due installment


will recovered first along with the fixed amount of charges as mentioned above.

More than one monthly contribution can be recovered in month subject to


availability of the funds. Monthly contribution will be recovered along with the
monthly fixed due amount, if any. In all cases, the contribution is to be recovered
along with the fixed charges. This will be banks internal process. The due amount
will be recovered as and when funds are available in the account.

13. Investment of the contributions under APY: The amount collected under APY are managed by Pension Funds appointed by
PFRDA as per the investment pattern specified by the Government. The subscriber
has no option to choose either the investment pattern or Pension Fund.

14. Continuous Information Alerts to Subscribers: Periodical information to the subscribers regarding balance in the account,
contribution credits etc. will be intimated to APY subscribers by way of SMS
alerts. The subscribers will have the option to change the non financial details
like nominees name, address, phone number etc whenever required.
All subscribers under APY remain connected on their mobile so that timely SMS
alerts can be provided to them at the time of making their subscription, autodebit of
their accounts and the balance in their accounts.

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15. Exit and pension payment: Upon completion of 60 years, the subscribers will submit the request to the
associated bank for drawing the guaranteed monthly pension.

Exit before 60 years of age is not permitted, however, it is permitted only in


exceptional circumstances, i.e., in the event of the death of beneficiary or terminal
disease.

16. Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of
Corpus to the nominee of subscribers: The Table of contribution levels, fixed minimum monthly pension to subscribers
and his spouse and return of corpus to nominees of subscribers and the
contribution period is given below. For example, to get a fixed monthly pension
between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to
contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of
18 years. For the same fixed pension levels, the contribution would range between
Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.

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Table
of

contribution levels, fixed monthly pension of Rs. 1,000 per month to


subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under Atal Pension Yojana.

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Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under Atal Pension Yojana.

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Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to
subscribers and his spouse and return of corpus to nominees
of subscribers And the contribution period under Atal Pension Yojana.

Table
of contribution levels, fixed monthly pension of Rs. 4,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under Atal Pension Yojana.

Table
of
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contribution levels, fixed monthly pension of Rs. 5,000 per month to


subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under Atal Pension Yojana.

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Chapter-6
PARDHAN MANTRI JEEVAN JYOTI BIMA YOJANA
AND PARDHAN MANTRI SURAKSHA BIMA YOJANA

OVERVIEW OF PMJJBY
CRITICISM OF PMJJBY
DATA ANALYSIS
OVERVIEW OF PMSBY
CRITICISM OF PMSBY
DATA ANALYSIS

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Pradhan Mantri Jeevan Jyoti Bima Yojna


Pradhan Mantri Jeevan Jyoti Bima Yojana is a government-backed Life
insurance scheme in India. It was originally mentioned in the 2015 Budget speech by
Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime
Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India's
population has any kind of insurance, this scheme aims to increase the number.

OVERVIEW:Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years
of age with bank accounts. It has an annual premium of 300 excluding service tax, which
is above 14% of the premium. The amount will be automatically debited from the
account. In case of death due to any cause, the payment to the nominee will be 200,000.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan
Dhan Yojana scheme. Most of these account had zero balance initially. The government
aims to reduce the number of such zero balance accounts by using this and related
schemes.

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Criticism:The banks have complained that revenue received will be very low. Some bankers have
claimed that amount they are receiving is not sufficient to cover the service costs. Since,
this a group insurance scheme, banks have not received instruction regarding cases where
excessive claims are in a year. Insurers have also pointed out that no health certificate or
information of pre-existing disease is required for joining.

DATA ANALYSIS

The primary data of Pradhan Mantri Suraksha Bima Yojana in OBC Bank KHAI
PHEME KI (Ferozepur) . The provided by bank is between 9-May-2015 to 18-July-2015.
Total accounts open between that period is 1336 approx.
No. of Insurance policy done between that period is shown month wise in following table
and diagram:Months

May

June

July

No. of
Insurance

357

438

541

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No. of Insurance
600
500
400

No. of Insurance
541

300
200

357

438

100
0
May

June

July

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Pradhan

Mantri
Suraksha Bima Yojna

Pradhan Mantri Suraksha Bima Yojana is a government-backed accident


insurance scheme in India. It was originally mentioned in the 2015 Budget speech by
Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime
Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India's
population has any kind of insurance, this scheme aims to increase the number.

OVERVIEW :Pradhan Mantri Suraksha Bima Yojana is available to people between 18 and 70 years of
age with bank accounts. It has an annual premium of 12 excluding service tax, which is
about 14% of the premium. The amount will be automatically debited from the account.
In case of accidental death or full disability, the payment to the nominee will
be 200,000 and in case of partial disability 100,000. Full disability has been defined as
loss of use in both eyes, hands or feet. Partial disability has been defined as loss of use in
one eye, hand or foot.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan
Dhan Yojana scheme. Most of these account had zero balance initially. The government
aims to reduce the number of such zero balance accounts by using this and related
schemes.

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Criticism:The banks have complained that revenue received will be very low. Some bankers have
claimed that amount they are receiving is not sufficient to cover the service costs.

Mode of Payment of Premium:The premium amount will be deducted from the account holders savings bank account
through auto debit facility in one installment for the entire year, as per the option to be
given on enrolment. Members may also give one-time mandate for auto-debit every year
till the scheme is in force, subject to re-calibration that may be deemed necessary on
review of experience of the scheme from year to year

Termination of Benefit Cover:In following cases the cover will be terminated and no benefit will be payable to the
subscribers.
1) On attaining age 70 years or the age nearest birth day 2) At the time of renewal in
subsequent years, due to insufficiency of balance to keep the insurance in force the
account gets closed. 3) In case a subscriber is covered by more than one account and
premium is paid by the subscriber intentionally, insurance cover will be restricted to one
only and the premium shall be liable to be forfeited. 4) If the insurance cover is ceased
due to any technical reasons such as insufficient balance on due date or due to any
administrative issues, the same can be reinstated on receipt of full annual premium,
subject to conditions that are to be issued in future. During this period, the risk cover will
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be" suspended" and reinstatement of risk cover will be at the sole discretion of Insurance
Company.
Pradhan Mantri Suraksha Bima Yojana Participating banks will deduct the premium
amount in the same month when the auto debit option is given, preferably in May of
every year, and remit the amount due to the Insurance Company in that month itself.

DATA ANALYSIS

The primary data of Pradhan Mantri Suraksha Bima Yojana in OBC Bank KHAI
PHEME KI (Ferozepur) . The provided by bank is between 9-May-2015 to 18-July-2015.
Total accounts open between that period is 1860 approx.
No. of Insurance policy done between that period is shown month wise in following table
and diagram:-

Months

May

June

July

No. of
Insurance

495

589

776

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No. of Insurance

May, 495
July, 776

June, 589

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May
June
July

BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problems in detail
following books, magazines, journals, websites have been referred. All the material
detailed below provides effective help and a guiding layout while designing this text
report.

SOURCES OF INFORMATION
BOOKS:Research Methodology-C.R. Kothari
WEBSITES:www.goggle.com
www.obcindia.co.on
www.pmjdy.gov.in
www.atalpensionyojna.com
www.india.com
www.scirb.com
www.wikipedia.com
www.business-standard.com
NEWSPAPERS:BUSINESS STANDARD
ECONOMIC TIMES

ANNEXURE
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Questionnaire-1

Awareness on PMJDY
Respected sir /madam,
I am student of M.com at R.S.D collage (Panjab University); Ferozepur a study related to To
identify the awareness of PMJDY among the people of village is being carried out for the fulfillment
of M.com summer training project. Your kind co-operation in answering this questionnaire will add
value to my project.

Name :- ________________

Age :- _________________

Gender :- Male/female

Occupation:-___________

Address :- ____________________________________________
_____________________________________________________
Mobile no. :- __________________________________________

Q1). For how long you have been staying in this village?
a). Less than a year

b). 1 to 5 years

c). More than 5 years

Q2). Who all are there in your family?


a). Joint family

b). Nuclear Family

Q3). Does any one of you have bank account?


a). Yes

b). No
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If yes, kindly answer the following questions otherwise go


to Q4.
Q3.1). No of account in your household?
i)

iii)

ii)

iv)

3
More than 3

Q3.2). Which type of account do you have?


iii)

Saving a/c

iii) Fixed deposit a/c

iv)

Current a/c

iv) Recurring deposit a/c

Q3.3). What were the reasons that your Household opened the
account?
vi)

To receive government payments from NREGA

vii)

To receive government payments from scheme other


than NREGA

viii) For saving


ix)

To request a loan

x)

If other , please specify


_______________________________

Q3.4). Who helped you while opening the account?


v)

Village panchayat official

vi)

Bank official

vii)

Neighbors/Friends/Relatives/Employer
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viii) Business correspondent/Post office

Q4). Reason for not having even a single bank account in your family?
a). Very little money to put in
b). No banking facilities in area
c). Lengthy procedures
d). Many charges are there
e). Tried to open but was refused
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f). Other ( please specify) _______________

If refused by bank to open a/c answer this , otherwise go to


Question 5
Q4.1) Reason for being refused by bank a/c?
v)

No id proof

vi)

No address proof

vii)

Dont know

viii) Had to maintain minimum balance


ix)

Other (please specify) __________________

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Q5). Awareness about basic banking saving account which was announced on 15 august
2014?
ii)

Good

ii) Medium

iii) Poor

If not aware about services answer this , otherwise go to Question6


Q5.1). Reason for not having awareness about Basic saving a/c?
I)

No promotion by banks , government or village panchayat in


village

II)

Not in a habit of reading newspaper

III)

Lack of media Advertisement via TV/Radio

Q6).Are you aware about the various facilities covered under PMJDY like :( I- Overdraft facility of 5,ooo , II Life insurance cover , III Personal
accident cover , VI- Rupay card )
iii)

Yes

iv)

No

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