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Study Material for Promotion Test /Interview - 2016 (updated till 24-02-2016)
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ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION
(AFFILIATED TO AIBOA)
Central Office:C/O Oriental Bank of Commerce
Corporate Office: Plot No. 5, Sector 32,
Institutional Area, Gurgaon -112 001
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BHOPAL/2016/ 29-02-2016
Dear Comrades,
Bhopal, in the preparation of this miniature presentation in the shape of booklet, for
promotion to higher grade. We have found that the contents included in the booklet
finds a wide coverage of latest/ current as well as basic banking know how. This finest
presentation in booklet form is going to help the candidates in updating their knowledge
as well as for facing the written exam/interview for promotions with confidence.
While we congratulate the Central Zone Team for their relentless efforts, we wish the
Yours comradely,
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All India Oriental Bank Officers Association___ .
INDEX
Sl. Page
TOPIC
No. No.
1 OBC at a Glance 6
5 IT Products 80
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OBC AT A GLANCE
Our Bank's
1. VISION STATEMENT
2. MISSION STATEMENT
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NPAs
Parameters Dec-15(9M)
Net Profit 134.46
Cost of Deposit 7.30 %
Cost of Funds 6.52 %
Yield on advances 11.52 %
Yield on funds 8.88 %
Net Interest Margin (NIL) 2.66 %
CASA
Capital Adequacy of the Bank under BASEL III: 11.14% (Tier I: 8.17%, Tier II: 2.97%) as on
31.12.2015
Capital Planning:
The Bank has raised Rs. 1000 crore on 26.10.2015 through issuance of Unsecured
Redeemable Non-Convertible Basel III Compliant Tier II Bonds on private placement
basis for inclusion in Tier II Capital of the Bank at a coupon of 8.34% p.a. with a maturity
of 10 years.
Bank has approached Govt. of India & LIC for infusion of equity capital through
preferential allotment
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All India Oriental Bank Officers Association___ .
1943 Oriental Bank of Commerce was established on February 19, 1943 at Lahore
After the partition of the country, its Registered Office was shifted, first to
1950
Amritsar and subsequently to Delhi in 1950. The owners were Thapars.
The Bank was nationalised on April 15, 1980.
1980 At that time, bank had a network of 307 branches and total business was Rs 435
crore comprising deposits and advances of Rs 282.61 crore and Rs 152.69 crore,
respectively
1994 Public Issue of 60 Million equity shares of Rs.10/- each at a premium of Rs.50 per
share, aggregating Rs.360 crore; the issue got overwhelming response
Punjab Co-operative Bank Ltd. and Bari Doaba Bank Ltd. amalgamated with the
1997
our Bank
Oriental Bank of Commerce rated "First" amongst Public Sector Banks on all
1999 working parameters by the Financial Express BRIS Survey and the Economic
Times- CMIE Survey
One of the first few Public Sector Banks having adopted US GAAP besides Indian
accounting standards. Committed to taking banking to international standards,
2001
Oriental Bank of Commerce's performance has proved its worth even when
evaluated as per the stringent US GAAP standards
First Bank to declare Zero net NPA level, with more than 100 per cent provisions,
as on September 2003.
2003
Rated as the "Best Bank for 2003" by Business India. Selected among "Best Under a
Billion, 200 Best Small Companies for 2003" out of 19000 companies from Asia and
Europe by Forbes Global
Global Trust Bank Ltd. a private bank amalgamated with the Oriental Bank of
2004 Commerce with effect from August 14, 2004.
Selected under the Forbes 2000 World's Biggest Companies
Public Issue of 58 Million Equity Shares of Rs.10/-each at a premium of Rs.240 per
share aggregating Rs.1,450 crore raised in April 2005.
One of the three Indian Public Sector Banks included in the list of World's Top 25
Banks in terms of Return of Capital Employed (RoCE) as on July 31, 2005 according
2005
to the Banker. Improved its rank from 2000th in 2004 to 1811th in 2005 under the
Forbes 2000 World's Biggest Corporates.
Referred as the Customer Friendly by NIBM in its study pertaining to Customer
Service in the Bank.
The Bank's total business crosses Rs.85000 crore mark as on March 31,2006 with a
2006
network of 1,148 branches.
We entered into an agreement with HDFC & Canara Bank for joint venture in Life
2007 Insurance Products.
We have brought under CBS system almost all the branches of the bank
Total business reaches Rs.1,33,184 Crores, a growth by 22%.
Bank achieves 100% CBS in all Branches
2008
New innovative products & services leveraging on Technology like Online Equity
Trading, OBC e-Shopping, OBC e-Taxes etc launched
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All India Oriental Bank Officers Association___ .
Write off of amortised GTB losses advanced by a year, Dividend maintained at 47%
Joint Venture with Canara Bank and HSBC entered into for Life Insurance Business
Business-mix has increased to Rs. 167434 crores, registering a growth of 25.72%.
Bank has recently opened a Representative Office at Dubai - our first offshore
2009 Office.
In its Joint Venture for Life Insurance with Canara Bank and HSBC, the Bank issued
12291 policies and booked a Gross Commission of Rs. 24.50 crores
Our Bank crossed the landmark total business of Rs. 2,00,000 Crores
Our Banks Customer base crosses 13.5 million
Our Bank's Branch Network crosses 1500, ATM network crosses 1000 mark
2010
ISO 27001 certification for implementation of Information Security Management
System at PDC, Mumbai, DRS, New Delhi, NLS, Mumbai and Processes at DIT, HO &
CBS Cell, HO
The Bank was awarded the Most Cost Efficient Operator at FIBAC-2011 organised
by Indian Banks Association (IBA) & Federation of Indian Chamber of Commerce &
Industry (FICCI).
100% system driven classification and provisioning of NPAs.
The Bank has operationalised a Mobile Branch.
The Bank has launched ORIENTAL BANK MEDICLAIM POLICY in collaboration with
the Oriental Insurance Company Ltd. for its customers.
2011
The Bank has launched a co-branded Credit Card in the name of SBI-Oriental Bank
of Commerce Credit Card which is in collaboration with SBI Cards. The card is
available in two variants - Platinum and Gold for customers as well as staff of the
Bank.
The Bank has launched its First E-Lobby at Nehru Place, New Delhi. This State of
Art unmanned E-Lobby provides wide ranging 24x7 Banking facilities to its
customers on a self-service basis.
The Bank has shifted its Corporate Office to Gurgaon and became the only Public
2012
Sector Bank having its Corporate Office in the State of Haryana
Our Bank crossed the landmark total business of Rs. 3,00,000 Lac Crore
2013
Our Bank's Branch Network crosses 2000.
Our Bank crossed the landmark total business of Rs. 3,50,000 Crores.
2015 Our Bank's Branch Network crosses 2250.
Total Delivery channels of the Bank as on 31.12.2015 stood at 4943 (2351 Branches
and 2592 ATMs)
NEW INITIATIVES
Self user creation module has been made LIVE for registration for Internet
Banking.
Bank has launched Special Saving Salary Accounts viz. Oriental Premium Salary
31.12.15
Account (for Premium Salaried Class) and Oriental Salute Salary Account (A
specially designed account for the Nations Armed Forces) with specially
designed personalised Debit Cards.
A Special saving account - Oriental YUVA has been launched by Bank with
specially designed Rupay debit card for youngsters in the age group 10-18 Yrs
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1. Routing of perquisites to staff through salary account of the staff only (All payments/
reimbursement of perquisites to staff be credited to their salary account only and in no case the
same be paid in cash. (HO Cir HO/I&C/65/15-16-931 dt. 06-02-2016)
2. Charging of Annual Service Fee (ASF) / Annual Guarantee Fee (AGF) at differential
rates depending upon NPA levels/ Claim Payout ratio of Banks (HO Cir RD & PS: 80:15-
16 :929 dt. 24-02-2015) - It has been decided by the trust to introduce following risk premium
structure in place of existing guarantee fee structure:
Risk premium on NPAs in Guaranteed portfolio Risk premium on claim payout ratio
NPA Percentage Risk Premium Claim payout percentage Risk Premium
0-5% SR 0-5% SR
>5-10% 10% of SR >5-10% 10% of SR
>10-15% 15% of SR >10-15% 15% of SR
>15-20% 20% of SR >15-20% 20% of SR
>20% 25% of SR >20% 25% of SR
3. Launch of 3x3 Tri-umph account for all CASA schemes of the Bank ( Ho
Cir/Mkt/57/15-16/919 dt. 23-2-16) The Triumph account (as the name suggests) would be
having a bunch of 3 a/cs coupled with 3 features in a linked manner. The focus of TRI-umph
account is to boost our Depository segment by increasing the no. of DEMAT a/cs. In Tri-umph a/c
customer gets all the facilities related to investing through e channels without the need to visit the
branch. Linked Tri-a/cs would be opened as CASA A/C DEMAT AC TRADING AC
4. Legal Guardianship Certificates Issued under the Mental Health Act 1987 (HO Cir
Operations 32/ 15-16/910 dt. 15/20-02-2016) RBI informed that it has become to their
notice that banks are insisting on guardianship certificate from all mentally ill persons. In this
regard, it is clarified that paragraph 2(iii) of the RBI circular dated 13-01-2014 is not intended to
mandate banks to insist on appointment of a guardian as matter of routine from every person who
is in need of treatment by reason of any mental disorder. It would be necessary for banks to seek
appointment of a guardian only in such cases where they are convinced on their own or based on
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documentary evidence, that the concerned person is mentally ill and is not able to enter into a valid
and legally binding contract.
5. Staff Housing Loan (Quantum of Maximum Loan Amt. wef. 11-02-2016) (HO Cir NO.
HRD/ 73/ 84/ 2015-16/ 886 dated 11-02-2016)
Category Sub Staf Clerical Staff Officers
Amt. in Lakh
Max HL Amt. 25.00 35.00 Upto Sc-IV 60.00
Sc-V & abofe 70.00
Loan for repair/ renovation/ furnishing 6.00 9.00 15.00
6. Staff Vehicle Loan amendment in repayment period (HO Cir NO. HRD/ 73/ 86/ 2015-
16/ 885 dated 11-02-2016)
Car (Officers & Clerical Cadre only) Two wheeler (for officers and workmen)
Loan together with interest repayable in not Loan together with interest repayable in not
more than 180 monthly installments (principal more than 84 monthly installments (principal
in 126 months and interest in remaining 54 in 68 months and interest in remaining 16
months) months)
OR OR
65 years of age in case of Pension Optees only, 65 years of age in case of Pension Optees
whichever is earlier. However, Net Take Home only, whichever is earlier. However, Net Take
Pension should not be less than 50% of Gross Home Pension should not be less than 50%
Pension (including the installment of proposed of Gross Pension (including the installment of
loan) proposed loan)
7. Staff Clean OD amendment in limit and ROI @BR wef 11-02-2016 ((HO Cir NO. HRD/ 73/
85/ 2015-16/ 884 dated 11-02-2016)
Length of service in the Bank
Cadre 6 Months & above and 3 years and above
less than 3 years
Subordinate Rs.1.00 Lakh Rs.2.00 Lakh
Clerical Rs.2.00 Lakh Rs.4.00 Lakh
Officer up to Scale IV Rs.3.00 Lakh Rs.7.00 Lakh
Officer Scale-V & above Rs.5.00 Lakh Rs.10.00 Lakh
ROI will be @BR (i.e. at present 9.70%) for both new as well as existing limits.
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public a list of individuals by any department or any agency though public notice, such
list shall not contain Aadhaar No.
9. Review of ROI on Bills Purchased/ Discounted under Inland LC (HO Cir NO. RMD/
74/2015-16/ 878 dated 08-02-2016)
LC Type Tenor of Bill Revised ROI
ROI on Negotiating / Discounting of Bills under Upto 90 Days @ BR+0.50%
Inland LC (DA) Above 90 Days & @ BR+1%
upto 180 Days
ROI on Negotiating / Discounting of Bills under DP @BR+0.50%
Inland LC (DP)
11. Revision of fees CERSAI (HO Cir NO. RMD/ 72/2015-16/ 866 dated 03-02-2016)
Nature of transaction to be Registered Amount of fee payable
For creation and for any subsequent
modification of security interest in favour
Particulars of creation or modification of security
of a secured creditor for a loan
interest in favour of secured creditors
Upto Rs.5.00 Lakh Abofe Rs.5.00 Lakh
Rs. 50/- + Ser. Tax Rs.100/- + Ser. Tax
Any application for information recorded / maintained Rs.100/- + Service Tax
in the Register by any person/ search of the property
Satisfaction or correction of any existing security NIL
interest
Schedule of additional Fee/Charges
Registration on CERSAI after Additional fee to be charged if the loan amt. is
the date of transaction (EM) Upto Rs.5.00 Lakh Above Rs.5.00 Lakh
From 31st to 40th Day Rs.100/- + applicable Sr. Rs.200/- + applicable Sr. Tax
Tax
From 41st to 50th Day Rs.250/- + applicable Sr. Rs.500/- + applicable Sr. Tax
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All India Oriental Bank Officers Association___ .
Tax
st th
From 51 to 60 Day Rs.500/- + applicable Sr. Rs.1000/- + applicable Sr. Tax
Tax
12. Levying of Charges to Staff Members on Using Other Bank ATM (HO Cir NO. ADC/
12/2015-16/ 865 dated 02-02-2016) The Charges shall be recovered from the staff members
from the fourth transaction onwards (inclusive of financial and non-financial transactions) for
each transaction on other bank ATMs, as per the charges applicable to General Customers after
exhausting three free transactions.
13. Revised guidelines on Reclassification of Advances under Large & Mid Corporate (HO
Cir NO. CAD/2015-16/92/ 844 dated 28-01-2016)
Large Corporate Advances: a) Borrowal accounts having full year turnover above Rs. 250.00
crore. (estimated/ projected for projects under implementation)
b) Advances to infrastructure (power -conventional and non conventional, port, road, highways,
communication, social and commercial infrastructure, energy, etc.)
Mid Corporate Advances: a) Borrowal accounts having full year turnover upto Rs.250.00 crore.
(estimated /projected for projects under implementation)
b) Priority sector advances (including rice Sheller, food processing, renewable energy & social
infrastructure such as educational institutions, hotels & hospitals, MFIs etc. falling under priority
sector)
c) MSME Advances including non priority sector which otherwise falls under RAM.
14. Guidelines on mandatory obtaining of Aadhaar Number & Mobile Number from
Individual Borrowers/ guarantors (HO Cir NO. RMD/68/2015-16/ 835 dated 27-01-2016)
a) The Branch Officials shall mandatorily obtain Aadhaar Number and Mobile Number of the
following at the time of sanction of Fresh/ Enhancement additional credit facilities as well as
review/renewal of credit facilities:
a) Individual Borrower(s) b) Proprietor/Partners/Promoter Directors in case of Proprietorship,
Partnership andLimited Liability Partnership Firms/Companies c) Individual
Trustee/member/Constituent in case of Trust, Society, AOP 4) Individual Guarantor(s) irrespective
of the constitution of the Borrower
15. Payment of Agency Commission on pension accounts (HO Cir No. GBC 37/2015-16/835
dated 27-01-2016) A pensioners account should not have more than 14 credit txns in a
calendar year attributable to pension and related arrears payments, if any. Rate of commission
is Rs.65/- per txn. Some Govt. Deptt prefer to compute the pension figures on their own and
pas them on to banks for payment. Such transactions may be included under non-pension
payments, on which agency commission is payable on a turnover basis as per the existing
norms (currently 5.5. paise per Rs.100/-)
16. Direct Benefit Transfer (DBT) Scheme- Seeding of Aadhaar in Bank Accounts-
Clarification (HO Cir NO. RD& PS/77/2015-16/827 dt. 22-01-2016) -Aadhaar Card and
seeding of bank accounts with Aadhaar numbers should be purely voluntary and not mandatory,
therefore prior consent of the account holder should be obtained for seeding of Aadhaar
number in their respective bank account.
17. Guidelines on Financing to AOP - (HO Cir NO. RMD/67/2015-16/825 dt. 21-01-2016)
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All India Oriental Bank Officers Association___ .
1. The persons in the AOP must have an inter-se agreement/ MOU in writing outlining the
rights and liabilities of the constituent members.
2. There should be a specific ratio as regards sharing of profit and losses.
3. The AOP shall approach the bank jointly for credit facilities or through a person in whose
favour specific POA has been given by all the constituent members.
4. PG of all the members constituent shall be obtained. In case it is not possible then PG of
minimum 75% of members contributing to capital fund in AOP shall be obtained.
5. PG of all beneficial owners of the AOP shall be obtained.
6. The maximum exposure to single AOP shall be capped at Rs.50.00 Crore in Real Estate
Sector and Rs.100.00 Crore in other Sectors.
7. The credit facilities to AOP shall be considered by the HLCC-ED/CAC/MCB. BM & RLCC-RH
shall have no delegated powers to consider credit facilities to AOP.
18. DEPLOYMENT OF EMERGING CORPORATE MODEL - (HO Cir NO. RMD/66/2015-16/812 dt.
-01-2016) Bank has been deployed the Emerging Corporate (EC) Model on live server on
14.01.2016
a) Bank has been deployed the Emerging Corporate (EC) Model on live server on 14.01.2016.
b) Branches and ROs shall carry out the internal credit risk rating of the existing as well as
fresh borrowers having average 3 years sales revenue of more than or equal to ` 100 Crore
and up to ` 500 in EC model
c) Borrowers having average 3 years sales revenue of more than ` 500 Crore shall be rated in
LC model.
d) The borrowers already rated under LC model shall be converted to EC model at the time of
review/renewal of internal credit risk rating.
19. Removal of maximum 6 free txns limit in SB Basic Deposit Accounts - (HO Cir NO.
CS&P/50/2015-16/808 dt. -04-01-2016) The cap of maximum 6 free of cost withdrawals
taking place through Micro ATMs in BSBDAs account has been removed. There is no restriction
on number of withdrawals taking place in BSBDAs ACs through our ATM i.e. txn through our
bank ATMs will not be charged.
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All India Oriental Bank Officers Association___ .
Revised guidelines of Income Tax Act provides that, in case a person does not have PAN and
entering into the transactions listed above, he can submit a declaration in Form 60 (revised
format enclosed ) giving therein the particulars of such transactions. The said declaration must
be supported by the valid proof of address and identity. It is obligatory on the part of bank to
ensure that the PAN is correct or the declaration in Form 60 has been duly furnished with
complete particulars. Bank is also required to retain Form No 60 for a period of 6 years from the
end of the financial year in which the transaction was undertaken (i.e. effectively seven financial
years). Income Tax Act further requires to furnish half yearly return in Form No 61 (through
electronic mode) of Form 60 received by the bank. The said return will be furnished centrally at
Head Office level
21. Our bank has launched Co-branded payment gateway under revenue sharing
arrangement with existing I-Banking payment aggregator M/s. PayU Payments Pvt. Ltd (PAYU)
an IBIBO Group company, to facilitate the co-branded payment gateway facility under Revenue
Sharing Model (HO Cir NO. MARKETING/50/2015-16/799 12th JAN2016)
22. Our Bank is introducing a new Mobile App for customers as well as potential
customers by the name ORIENTAL SAATHI which shall offer the following facilities to
them:- (HO Cir NO. HO/ADC/10/2015-16/796 11th Jan2016)
i. Branch and ATM Locator : The App will route to the nearest ATMs and branches using
Google Maps from the customers Location. Also, the App will show the route to any OBC branch
using Google Maps through PIN Code or current Location.
ii. Online Complaint registration can be done by the user and the status of the complaint
through the App can also be tracked.
iii. Online Suggestions can be given by the user on any products or services of the Bank.
iv. Online Loan Application User will be able to select the type of Loan required (Education/ Car
/ Home etc.)
v. EMI Calculator for loans is also available in the App.
vi. Interest Rates for Term Deposits and Retail Loans has been displayed. Also, the calculator
for Interest on Deposits and EMI for Loans is linked to these rates.
vii. Alerts for customers for keeping them cautious of various frauds.
viii. Contact Us Contact numbers of the customer care centre alongwith other services like
SMS Banking, Missed call banking and Mail Us has been provided in the Tab
23. CGTMSE has decided to restore the interest rate cap of 4% over the Base Rate i.e. any credit
facility which has been sanctioned by MLI, under the Credit Guarantee Scheme (CGS), to an
eligible borrower, with interest rate more than 4% over Base Rate will not be eligible for
coverage under the CGS. (HO Cir No. HO:RD & PS:73:2015-16:793 11th January, 2016)
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All India Oriental Bank Officers Association___ .
However, in case where the borrower is maintaining current account with a non-lender
bank, the statement of current account shall be obtained and scrutinized on quarterly basis.
Besides, an undertaking/declaration shall be obtained from all the borrowers certifying the
details shall be obtained from all the borrowers certifying the details of the bank accounts
maintained with different banks at the time of a) Sanction of Fresh/ enhancement/
additional credit facilities b) Renewal/review of the credit facilities
3. Confirmation from the Statutory auditor seeking confirmation that the Financial
Statements submitted to the Bank are true as per auditors record - The Branch
shall seek confirmation from the Statutory auditor of the Company/Limited Liability
Partnership/ Firm (as per the Audited Balance Sheet) that the Financial Statements
submitted to the Bank are true as per auditors record particularly confirming the following:
a) Capital b) Net profit c) Turnover d) Sundry Debtors e) Sundry Creditors f) Stock g)
Fixed Assets
4. Verification of the Income Tax Return (ITR) - The Income Tax Return (ITR) of the
borrower/ Sole Proprietor/ Partner/ Promoter Director /Directors/ Guarantors, in case of all
credit proposals including retail credit proposals, shall be verified by generating the Income
Tax Return (ITR) in the presence of the Banks authorized official, wherever applicable.
The name of the authorized Bank official and details of place, IP address, date and time
where Income Tax Return (ITR) was generated shall be kept on record
25. Introduction of ADC Day in Branches on 1st Saturday of Every Month. In case the Ist
Saturday is holiday then the ADC Day shall be observed on the preceding day if it is in the same
month else on the following Monday. (HO cir ADC/9/2015-16/782 Dt 04-01-2016)
26. OBC Turant Demand Loan (OBC-TDL) New scheme for contingency CAPEX requirements
of existing all Borrowers having investment in P&M upto Rs.100.00 Crores (Borrowers which are not
covered under MSME Plus scheme are also eligible). (HO cir CAD/84/2015-16/781 Dt 28-12-
2015)
27. New Life Insurance Products by CHOICe Smart Future Plan and Smart One Pay
Plan (1) Smart Future Plan, is a specially designed customized solution that will take care of
immediate and future financial needs of the customers and their families, in case of his/her
unfortunate death or total & permanent disability (2) Smart One Pay Plan is a single premium
unit linked non-participating endowment insurance plan. It gives the opportunity to pay only once,
that is, a single premium at the beginning of the policy and provides life cover throughout the policy
term. (HO Cir TPP/INS/41/2015-16/774 Dt. 31-12-2015)
29. Modification in SB219 (Unnati) & CA113 (Pragati) Schemes (HO Cir CS&P/49/2015-
16/773 Dt. 31-12-2015) It has been decided to discontinue the accidental insurance cover for
all accounts opened under above schemes wef 01-02-2016. In case of existing customer the
insurance cover will cease after completion of existing validity period.
30. Revised exposure sub-ceiling based on the constitution of borrower within the
overall exposure ceiling of single borrower (HO Cir RMD/62/2015-16/771 Dt. 01-01-
2016)
Constitution Exposure Ceiling (amt in
Crores)
Other than Real Estate
Real Estate
Individual borrowers for personal loans for non-business(other 5.00 5.00
than schematic loans) on secured basis only
Sole Proprietary Concerns, HUF* 50.00 30.00
Partnership Firms/ Trusts / Regd. Societies/ Associations / LLP 100.00 50.00
AOP 100.00 50.00
Pvt. Ltd. Co. ( which is not a subsidiary or holding co. of a 750.00 200.00
Public Ltd. Co.
Closely held Public Ltd. Co. owned by Central/ State Govt. 1000.00 250.00
Closely held P. Ltd. Co. 1000.00 200.00
Widely held Public Ltd. Co. / Statutory Bodies / Pvt. Ltd. Co./ 15% of 400.00
Closely Held Public Ltd. co. * which is a subsidiary or holding capital fund
co. of a widely held pub ltd. co.
Note : 1. CAC/MCB shallb e competent authority to relax the above norms.
2. No loans to be granted to Partnership / proprietorship concerns against the primary
security of shares and debentures.
31. Interest on FDRs made in the name of Registrar General of the Court or the depositor of the
fund on the directions of the court will not be subject to TDS till the mater is decided by the court.
(HO Cir ACT/17/2015-16/769 Dt. 31-12-2015)
32. The last date for enrolment under PMJJBY (without certificate of good health) has been
extended from 30-11-2015 to 31-05-2016. (HO Cir MKT/INS/49/2015-16/765 Dt. 23-12-
2015)
33. Introduction of Direct Menu Codes on *99*53#By NPCI (Mobile Banking )(Ho Cir
ADC/8/15-16/732) NPCI has introduced Direct Menu in NUUP service with short code suffixed
with individual banks for the customers. The Direct Code have become operational from 15-12-
2015. The Directo Menu Code for OBC is *99*53#.
34. IBA Model Educational Loan Scheme - A Common Portal Vidya Lakshmi Electronic
Platform (Ho Cir Retail:48:2015-16:715 Date : 10.12.2015) - NSDL has developed a portal
namely Vidya Lakshmi Electronic Platform, the features of which are as under:
1. Single window for students about information of government scholarships and education loans of
banks.
2. Single loan application for students for all banks connected to the portal.
3. Linkages of portal to banks systems
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35. Modification in Flexi period (SB211 & CA 109) (Ho Cir CS&P/41/2015-16/691 Date :
01.12.2015)
36. WAIVER OF PROCESS FEE IN SCHEME FOR LOAN AGAINST WAREHOUSE RECEIPTS /
NEGOTIABLE WAREHOUSE RECEIPTS (NWR) (HO Cir RD&PS: 62:2015-16:689
18.11.2015) - Waiver of process fee for proposals sanctioned up to 31st March, 2016. The revised
guidelines shall be applicable on the proposals sanctioned/ renewed/ enhanced on or after the date
of approved by CRMC
37. CHIEF PUBLIC INFORMATION OFFICER UNDER THE RIGHT TO INFORMATION ACT 2005 (HO
Cir HRD&PS: 73/66/2015-16/681 30.11.2015) - Shri E.J. Jerome John, Asstt. General
Manager, Recovery & Law Department, Corporate Office, Gurgaon has been designated as Chief
Public Information Officer under the Right to Information Act, 2005 at Head Office
39.Board has approved that BCA/BF shall be paid Rs.3/- per account for Aadhaar Seeding in
existing saving bank accounts through Micro ATMs or submitting Aadhaar details in branches for
Aadhaar Seeding. (HO Cir NO. RD&PS/60/ 2015-16/659 dt. 19-11-2016)
40. Education Loan Bos must not seek collateral for EL uptp 4.00 Lacs as pwer extant
regulatory guidelines. Also note that Service Area Approach is not applicable to EL. (HO Cir NO.
Retail/42/ 2015-16/655 dt. 17-11-2016)
41. Sampoorna Kavach Plan Micro Insurance Product by Canara HSBC OBC Life
Insurance(CHOICe) (HO/MKT/INS/ 38 /2015-16/ 653 16.11.2015)
Product Type: Annual renewable Group Term Insurance product
Entry Age: 18
Coverage Term: One year renewable cover 59 Years (as on last birthday)
Premium Mode: One-time (renewable every year)
Premium Amount: Rs. 100/- p.a. inclusive of Service Tax.
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42. Govt. of India vide its notification number 22/2015 service tax dated 06-11-2015 has imposed
Swatch Bharat CEss @0.50% wef 15-11-2015 for all the branches accept the branches located in
the State of Jammu & Kashmir. (HO Cir No. ACT/13/15-16/ 632/ 07-11-2015)
43. New Missed Call service for Minin Statement (Ho Cir No. DIT/SMS/20/15-16/523 dt
30-09-2016) Customers who have registered for SMS facility need to give a missed call to
Banks no. (8067205767), the system will send a SMS of the balance and mini statement for last
three txns. Of the most recently transacted accunt lined with the mobile no.
44. Opening of CA by Banks Need for Discipline (HO Cir Operations/03/2015-16/0512 dt.
30-09-2016) Keeping in view the importance of credit discipline, especially for reduction in NPA
level in banks, banks are advisd to make use of the information available in CRILC and not limit
hteir due diligence to seeking NOC from the Bank with whom the customer is supposed to be
enjoying the credit facilities as per his declaration. Banks should verify from the data available in
CRILC atabase whether the customer is aviling of credit facility from another bank.
45. Addition of Mobile No. in all Retail Loans Accounts (HO Cir: Retail:33:2015-16: 493
dated 24-09-2016) It has been decided that mobile no. be captured in all fresh account and in
existing a/c the latest mobile no. should be updated.
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All India Oriental Bank Officers Association___ .
47. Loan Application, Process Note & Internal Rating for Loans upto `50,000/- under
MSE Sector to be Covered under PMMY (HO Cir No. RD & PS:48:2015-16:453 11-09-
2015) (1) Fiield functionaries are advised to use One Pager Loan Application & Processing Note
for the MSE loan upto `50,000/-.
(2) Internal Rating- Internal rating is not required for the MSE loan sanctioned upto `50,000/-.
(3) Clarification on Collateral Security/Third Party Guarantee-We clarify that as per RBI
guidelines, no collateral security is to be obtained for MSE loans sanctioned upto `10.00 lakh.
(4) MUDRA Card -In order to provide hassle free credit to Micro Entrepreneurs where working
capital requirement is upto `20,000/-, this facility may be allowed through Over Draft and MUDRA
Debit Card may be issued for withdrawal of cash.
48. Classification of Industries under Thrust, Restricted & General Area of Lending (Ho
cir No.RMD/38/2015-16/414 dt. 31-08-2015 1. Engineering shall be classified under
General Area of Lending for all pruposes including NBG approval.
49. FIR to be lodged with local police/state CID and CBI in Fraud Cases - (HO Cir I&C/
33/2015-16/407) -
Sl. Criterial Banks Officer of the polic/ CBI with
NO. Authority whom the FIR is to be lodged
who would
lodge the
FIR
1 Fraud with value above Rs.10000/- Branch Local Polic Station
but below 1.00 lac Incumbent
2 Rs.1.00 lac & aboge involved Regional Head To be lodged with State CID/
outsiders and bank staff Economic Offence Wing (EOW) of
the State concerned
2.1 Fraud with value Rs.300.00 Lac and Regional Head To be lodged with Anti Corruption
above but below 2500.00 Lac where Branch (ACB) of CBI
the staff involvement is prima facie
evident
2.2 Fraud with value Rs.300.00 Lacs and Regional Head To be lodged EOW of CBI
above but below Rs.2500 lacs, where
the staff invomvenent is prima facie
not evident
2.3 Freaud with value Rs.2500.00 lacs Regional Head To be lodged with Banking Security
and upto Rs.5000.00 Lacs and Fraud Cell (BSFC) of CBI
(irrespective of involvement of a
public servant.
2.4 Morethan 5000.00 Lacs Regional Head To be lodged joint director (policy)
CBI, HQ New Delhi
In case of amt. involved Rs.300.00 Lacs and above, the draft of the FIR should be got vetted from
the Law Department at HO. The draft may be routed through Vigilance Department where the draft
would be scrutinised and be sent to the Law Department for vetting.
50. Preparation of Standarized MIS Code sheet (part of process Note and sanction of
loan accounts) (HO Cir MIS/ 03/2015-16/385 dt. 18-08-2015) - 1. The Mis Sheet shall be
integral part of all renewal and fresh sanction at all sanctioning level.
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3. Verification of MIS sheet and correction of data shall be integral part of BCC closure. Suitable
Column/Row be incorporated in BCC Format.
51. Alignment of Saakshar Bharat with Pradhan Mantri Suraksha Bima Yojana (PMSBY)
(HO Cir No. MKT/INS/25/2015-16/381 18.08.2015) - The Saakshar Bharat Mission is
operational in rural areas of 410 districts of the country, where adult female literacy rate was 50
percent or below as per 2001 Census. The principal focus of the Mission is on women besides SCs,
STs, Minorities and other disadvantaged groups. A good number of accounts were mobilized from
beneficiaries of Saakshar Bharat Mission under Pradhan Mantri Jan Dhan Yojana (PMJDY). As part
of the Financial Literacy, it is now proposed to promote the Pradhan Mantri Suraksha Bima Yojana
in a major way among the nearly 35 million learners who have successfully passed the assessment
tests and certified as literate
52. Revised ROI in Case of Loan Agains Banks Own Deposit (Ho Cir RMD/29/2015-
16/377 dt. 14-08-2015) - (1) Advance against self deposit 1% over the applicable rates of
interest on deposits. (2) Advance against 3rd party deposit 2% over the applicable ratre of interest
on deposits with a floor of base rate.
53. Udyog Aadhaar for MSME Registration (HO Cir RD & PS:37:2015-16:362 05-08-2015)
We have been informed by Indian Banks Association (IBA) that Kamath Committee Report on
Financial architecture of MSME sector has given several recommendations including
recommendation for universalization of registration. In consonance with the recommendation of the
Kamath Committee, and to improve ease of doing business, the Ministry of MSME through NIC has
developed a web portal (http://em.msme.gov.in) for online filing of Entrepreneurship Memorandum
I and II required for obtaining MSME registration. In addition to simplifying the registration
process, the MSME registration form has also been simplified. Under one page simplified
Registration form "Udyog Aadhaar", the MSMEs will self-certify its existence, bank account details,
business activity details, promoter/owners Aadhar, employment and ownership details and other
information required. Based on the simple form submitted, the business would be issued, a unique
identifier or Udyog Aadhaar making the unit formally registered as a SSI or MSME. Udyog Aadhaar
registration will enable the units/enterprises to seek information and apply online for various
services being offered by various ministries and Departments. It will also help in creation of a data
base for MSMEs.
judgement dated April 15, 2014 of the Supreme Court in the case of National Legal Services
Authority v. Union of India and others [AIR 2014 SC 1863: (2014) 5 SCC 438] on treating all
transgender persons as third gender. The Supreme Court, in that case, upheld transgender
persons right to decide their self-identified gender and directed the Centre and State Government
to grant legal recognition of their gender identity such as male, female or as third gender. RBI vide
their Circular No. RBI/2014-15/572 DBR.No.Leg.BC.91/09.07.005/2014-15 dated 23.04.2015 has
directed the banks to include third gender in all forms/applications etc. prescribed by the Reserve
Bank or the banks themselves, wherein any gender classification is envisaged. Keeping in view the
RBI instructions/ guidelines on accepting the third gender Transgender has been developed and
implemented in CBS. Now user can opt any code amongst as per the help message available in
CUMM: - Enter customer Gender. M - Male, F - Female, T - Transgender, O Other
All branches are advised to include the third gender Transgender on all existing customer
Identification Forms (OF- 1A) and on all other forms lying at the branch till the time revised
AOF/forms with the third gender incorporated is made available at the branches.
58. Clarification with regard to classification of an enterprise as women entrepreneurs (HO Cir
RMD/24/ 15-16/308 dt 14-07-2015) An Enterprise shall be classified as Women Entrepreneurs
Enterprise where One or more women entrepreneurs have not less than 51% financial holding. In
case of partnership concerns, one or more women partners have not less than 51% profit/loss
sharing ratio as per the Registered Partnership Deed. (for concession in ROI to women enterprises)
59. Framework for dealing Fraud in Large Borrowal Accounts of `50.00 crore and above
Identification and reporting of Red Flagged Accounts (RFA) (Ho Cir
CMC/RFA/17/2015- 16/300 Dated 04.07.2015) -
a) Concept of Red Flagged Account (RFA), on the basis of signals reflected by EWS is important
step in fraud risk control, Identifying Early Warning Signals (EWS), suspicion of fraudulent activity.
b) Thresh hold limit for RFA & EWS is an exposure of Rs.50.00 Cr or more at the level of bank,
irrespective of the lending arrangement.
c) All the Fraud classified as RFA must be reported on the CRILC (Central
Repository of Information on Large Credit) data platform.
d) CRILC platform is being enabled to accept the RFA and Fraud categories shortly.
Formation of Fraud Monitoring Group (FMG), for the purpose of classifying the account
under RFA as per alert observed in EWS.
a) The Officer responsible for the operation in the account shall report any manifestation of the
EWS, promptly to Fraud Monitoring Group (FMG) constituted by the bank, such officer may be held
responsible for non- reporting or delay in reporting of fraud.
b) The FMG should report the details of loan accounts of Rs.50.00 Cr and above to the MD &CEO
every month where EWS are observed.
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c) A report on Red Flagged Account (RFA) shall be put up to the Special Committee of the Board for
monitoring and follow up of Frauds (SCBF).
61. As per I&C Circular no. HO: I&C: 2015-16:12:136 dated 11.05.2015 on Frauds in
Vehicle loan accounts, Branches are advised that in case of Tractor loans, payment
should be made directly to the manufacturing company (HO Cir RD & PS:31:2015-16:277
03.07.2015)
62. Keeping in view the high Gross NPA in the Edible Oil & Vanaspati Industry in our Banks
portfolio, Edible Oil & Vanaspati shall be classified under Restricted Area of Lending.
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place of student. For other institutions: The loan shall be allowed preferably at the place
of domicile. The Regional Heads may consider/ allow education Loan at a place other than
the place of domicile on merits. The branches have been allowed to sanction education loan
to the students belonging to the same district irrespective of the distance. However, if the
loan is to be disbursed by the branch located outside the district of domicile of the student,
the discretion shall lie with the Regional Head. (Circular no. HO:Retail:09:2015-16:121
dated 13.05.2015)
It is mandatory to obtain life insurance policy on the students availing education loan. (Cir
No. HO/Mktg/JV/10/2013-14/424 dated 31.07.2013)
Under component of finance, College bus fare in case of study in India and travel expenses/
passage money for studies abroad are also covered. (Circular No. HO:Retail:39:2014-
15:764 dated 19.12.2014)
Repayment of loan is generally accepted via Equated Monthly Installment method. However,
after moratorium period (study + grace period), many times the salary level at start of the
career of the student may not facilitate comfortable payment of EMI, in such a situation,
Telescoping / Stepped-up installment method can be adopted. However, the Regional
Head is authorized to permit such Telescoping / Stepped-up installment option after
examining the repaying capacity of student. In this method, installment amount will be of
lesser amount (but shall be more than accrued monthly interest).
Existing Education Loan borrowers, who had availed Education Loan with a repayment
period upto 10 years shall have the opportunity of getting the repayment period extended
upto 15 years, as the case may be, and the same shall not be treated as restructuring.
The powers for allowing such extension in repayment period under Education Loan
Scheme to the existing Education Loan borrowers have been vested with respective
Sanctioning Authority.
NSDL has developed a portal namely Vidya Lakshmi Electronic Platform, which
provides a single window for students about information of government scholarships and
education loans of banks and single loan application for students for all banks connected to
the portal. (Cir No. HO: Retial:48:2015-16:715 dated 10.12.2015)
Takeover of Education loan is not permitted.
Interest switch over option fee 0.50% of outstanding loan amount as on date (Circular no.
HO:Retail:19:2014-15:442 dated 29.08.2014)
As payment of interest is optional during the moratorium period, education loan cannot be
classified as NPA during the moratorium period. (Circular No. HO:Retail:35:2014-
15:650 dated 10.11.2014)
In case the education loan becomes NPA there shall not be any reversal of interest accrued
during the repayment holiday/moratorium period. (Circular no. HO:Retail:47:2013-
14:1182 dated 28.03.2014)
Under follow up monitoring, branches need to contact college/University to obtain progress
report on the student. In case of foreign study loan Branches shall obtain SSN/Unique
identification number/ ID card and note the same in Banks record. PAN card is not
mandatory for availing student loan, however, student may be asked to submit PAN during
the course of studies, if not available at the time of sanctioning. UIDAI may also be
captured in system. For recovery of dues practices such as displaying names and
photographs of defaulting students be stopped herewith. (Circular no.
HO:Retail:32:2013-14:841 dated 14.12.2013)
Financing to more than one member of the family will be considered as separate. Education
loan is not a loan for a family as a unit but it is individual wise.
Education loan to the students of study centers/ distance learning mode by some
universities such as Punjab Technical University/ Manipal University etc is not permissible.
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Medical courses offered by Institutions in Nepal, approved by Medical Council of India only
are eligible for granting education loan. Any Indian Citizens who intend to obtain primary
medical qualification from any foreign country on or after 15th May2013 are not required to
obtain Eligibility Certificate from Medical Council of India. (Circular no.
HO:Retail:42:2013-14:1035 dt: 07.02.2014)
Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts,
subject to the condition that the amount does not exceed 10% of the total tuition fees for
the entire course. (An undertaking to be obtained from the student that refund will be
deposited in the deposit/ loan account with the Bank)
Purchase of computers-essential for completion of the course*. Purchase of books/
equipments/ instruments/ uniforms*. Any other expenses required to complete the course-
like study tours, project work, thesis, etc*. * A realistic assessment may be made for the
requirement under these heads, however the maximum amount under these heads be
capped at 20% of the total tuition fee payable for completion of course
Discretionary power to consider loan for Commercial Pilot Licenses and Air Hostess is
presently vested with Head Office. In case of commercial pilot course, Life Insurance Cover
shall be obtained.
Tuition fee for first semester may be released to the institution without insisting
for visa from the student, subject to the condition that in case the visa is not granted,
the parents of the students will deposit the loan amount with up to date interest
immediately.
Service area approach is not applicable to education loan. (Circular No. HO:Retail:42:2015-
16:655 dated 17.11.2015).
In all cases, an appropriate affidavit from all joint borrowers need to be obtained containing
assignment of future income of the student on getting employment after completion of
course for payment of installment.
OPEN CAR LOAN: Existing Large & Mid Corporate Borrowers (Firm/Company)- Exposure Limit
Rs. 10.00 crores and above
Loan Amt Two Wheelers - ` 10.00 Lac &
Four Wheelers- ` 100.00 Lac (For 2nd Hand car loan 25 Lac)
In case of salaried person 30 month gross salary/ pension subject to take home criteria based
upon gross monthly income as below:
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All India Oriental Bank Officers Association___ .
Security Hyp. Of New Two wheeler / Four wheeler purchased out of Bank Finance
For Two wheelers If borrower gross monthly income is below
`30000.00 One personal guarantee
For Cars/MUVs If borrower gross monthly income is below
`40000.00 One personal guarantee
Incase of 2nd hand car One third party guarantee acceptable to
Bank
Show room price + one time road tax + Registration Charges & First years
insurance cost
OPEN CAR LOAN: Hyp. Of new CAR/ MUV, Collateral :NIL
Discretionery Power Scale For Two wheeler For New Car 2nd Hand Car Loan
I ` 1 Lac ` 6 Lac ` 2 Lac
II ` 2 Lac ` 10 Lac ` 5 Lac
III ` 2 Lac ` 20 Lac ` 5 Lac
IV ` 2 Lac ` 30 Lac ` 10 Lac
V ` 2 Lac (As RH 10 ` 50 Lac (As RH ` 100 ` 15 Lac (As RH same
Lac) Lac) power)
VI ` 2 Lac (As RH 10 ` 100 Lac (As RH ` 100 ` 15 Lac (As RH ` 25
Lac) Lac) Lac)
VII ` 2 Lac (As RH 10 ` 100 Lac (As RH ` 100 ` 15 Lac (As RH ` 25
Lac) Lac) Lac)
Points to remember for interview purpose:
1. The payment to car dealer will be made on case to case basis i.e. condition of sourcing 10
cars is waived. (Circular no. HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Income of spouse,Father,Mother, Brother, Son, Daughter in law & Unmarried daughter can
be co-applicant in the account. (Circular no. HO:Retail:34:2014-15:649 dated
11.11.2014)
3. Close relative in case of NRI for considering Retail Loan are Spouse, Father, Mother
(including step mother), Son (including step son), Sons wife, Daughter (including step
daughter), Daughters husband, Brother (including step brother), Brothers wife, Sister
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(including step sister), Sisters husband. HUFs are not eligible. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
4. In case the vehicle is financed in the name of company, there is no need to register the
charge with ROC as specify charges or vehicle is already registered with RTO for
hypothecation of charge. (Circular no. HO:Retail:14:2014-15:217 dated 19.06.2014)
5. In built sanction of four wheeler loan to borrowers availing regular loan credit facilities from
Bank for last one year. Validity of sanction upto one year/ date of renewal whichever is
earlier. Loan limit Income upto Rs. 50000 p.m. Rs. 5.00 Lac and And Above Rs. 50000
p.m. 10 Lac. Equivalent to 20 times of gross annual income. Process fee shall be charged
at the time of disbursement only. Clause of per car sub limit is removed for RLCC. (Circular
no. HO:Retail:14:2014-15:217 dated 19.06.2014)
6. Classification of advance will be as per activity of borrower. Same chassis no. & Engine no.
Be mentioned on Vehicle; Invoice & RC Book.
7. POA (Loan Doc -35/5.1) waived for Vehicle Loan Account, however, in order to mitigate the
risk, the content of the POA be taken in the form of Undertaking/affidavit from the obligants
alongwith Form no. 29 and Form no. 30 (RTO form). (Circular no. HO:Retail:40:2015-
16:638 dated 09.11.2015)
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The interest switch over option shall be available to existing borrower on any occasion,
irrespective of loan limit 0.50% of outstanding as on date of switch over subject to
maximum of Rs. 50,000.00. Borrower can exercise Interest Switch Over any number of
times. It shall be also available to Fixed Interest rate home Loan scheme. (Circular no.
HO:Retail:16:2015-16:258 dated 29.06.2015)
For non salaried(self employed /small business/ Traders) where ITR are not filed: subject to
complete satisfaction of the sanctioning authority as regard to the earning/income vis-s-vis
repayment capacity of the borrower in this category by subjective/objective means available
at his command. Housing loan to this categoryof borrower with a maximum limit of Rs. 5.00
lacs is permitted. As per IT rule, IT return upto Rs. 2.50 lac is not mandatory to file.
(Circular no. HO:Retail:16:2015-16:258 dated 29.06.2015)
Home loan shall be allowed for purchase of flat/ house after obtaining the following:
o Certified copy of approved construction plan/ map (wherever applicable)
o An affidavit cum undertaking the the house / flat has been constructed as per
sanctioned plan
o Building byelaws and as far as possible has a completion certificate. A registered
architect appointed by the Bank must also certify before disbursement of loan the
the built up of property is strictly as per sanctioned plan and/or building bye laws.
(Circular No. HO:Retail:44:2015-16:680 dated 30.11.2015)
No loan shall be given in respect of properties meant for residential use but which the
applicant intends to use for commercial purposes.
Service tax paid by Builders to be treated as component of finance. (Circular No.
HO:Retail:44:2015-16:680 dated 30.11.2015)
State Govt. of Bihar has passed Bye Laws through notification dated 29.01.2015 wherein the
conditions of pre-approved map plan upto plot size not more than 300 sq meters has been
exempted subject to compliance of terms & conditions stipulated in Bihar Extra Ordinary
Gazette notification dated 29.01.2015. Hence, the branches in the State of Bihar need not
insist for sanction plan by the competent authority subject to condition that the plot is not
more than 300 sq meters. The above relaxation is subject to above mentioned conditions.
However, loan disbursing branches shall keep copy of such Bihar Govt. notification along-
with loan documents. (Circular No. HO:Retail:10:2015-16:206 dated 10.06.2015)
Value to loan ratio should be kept at 150% (or Loan to Value Ration to be kept at 66.67%)
in case of extension of charge in other loan account. (Circular no. HO:Retail:32:2014-
15:610 dated 27.10.2014)
ROI for 3rd House onwards is BR+0.50%. Along with GLPP premium, Purchase price &
installation charges of rooftop Solar PVs and non solar lighting, wiring and other such fittings
shall also constitute component of finance. (Cir/HO: Retail:39/2014-15:764 dated
19.12.2014).
Power to Takeover of HL is delegated to BM provided account should be classified as
standard Regular by the other Bank and there should not be any rephasement/
reschedulement in the account in the last 3 years. Certificate from Bank/ FIs waived.
(Circular No. HO:Retail:44:2015-16:680 dated 30.11.2015)
Loan amount for purchase of plot should not exceed 50% of the eligible loan amount.
Sanctioning of Home loan to borrower who defaults in CIBIL reports other than Credit card
account lies with HLCC-ED. (Circular no. HO:Retail:40:2013-14 dated 23.01.2014)
Banks charge of mortgage shall be noted in the Central Registry System within 30 days of
creation of such charge
Tie up arrangement with Builders for housing loans should be made at initial stage of
launching of the project. Tie up with the builder is also beneficial for borrowers point of
view since expenses on NEC are saved and delivery of credit facilities is speedy. (Cir No.
HO/Retail/61:2015-16:873 dated 04.02.2016)
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The clause regarding first right to refusal by our Bank be invariably incorporated in the
sanction letter of housing projects financed by the Bank. (Circular no. HO:Retail: 06:2014-
15:18 dated 09.04.2014)
Power of Concession in ROI to RH To captive/loyal customers who are having annual
average balance in their saving account Rs. 1.00 Lacs or in current account Rs.5.00
Lacs and above. As well as to Directors, Partners or Proprietor of all Cash Credit account
holders having Credit Rating upto 4 for last 24 months
The penal interest shall be charged at the rate of 2% over and above the normal rate of
interest on irregular amount of loan and for the period of irregularity
Oriental Home Loan Point is launched at New Railway Road branch (0071) Gurgaon with the
objective of marketing of Retail Loans, expeditious sanctions and disbursement within 5
working days. (Circular no. HO:Retail:37:2014-15:705 dated 27.11.2014)
All home loan account to be reviewed annually. (Circular no. HO:Retail:31:2014-
15:589 dated 17.10.2014)
Wherever Registered/Equitable mortgage cannot be created in case DDA, HUDA etc.
Undertaking as per annx 14, security documents such as Annx 17 & 18, Power of
attorney as per annex. 6 and letters from borrowers to reinforce the right of the Bank to
recover its dues. (Circular HO:Retail:30:2014-15:588 dated 17.10.2014)
Maximum limit of eligible housing loans under CRGFS has been enhanced from the present
ceiling of Rs. 5 lac to Rs. 8 Lac. (Circular no. HO:Retail:33:2014-15:619 dated
01.11.2014)
No home loan to be considered for HUF entities or to partnership firms where HUF is a
partner. (circular no. Retail:22:2013-14:578 dated:17.09.2013)
Terms of Repayment
EMI; or servicing of interest during moratorium period (Max 18 months)
Payment of only interest for first five years and thereafter EMI
Request for preponement of repayment period can be considered once during
currency of loan Repayment of agriculturist may be by way of
monthly/quarterly/half yearly instalments.
If borrower makes bullet payment, EMI can be reset according to residual period.
Eligibility Below Poverty Line(BPL): person holding BPL card issued by State
Government
Economically Weaker Section (EWS): Person having an average
annual income upto ` 1 Lac
Low Income Group (LIG): Household average annual income between
` 1 Lac and uptp ` 2 Lac
Income IT Return/Form16, if available
Certificate Income certificate issued by the competent authority as
notified by the respective State Govt. Notified competent
authority is available on
http://mhupa.gov.in/RRY/RRY_page.htm
Self declaration form along with income certificate
Loan limit For EWS For LIG
` 5.00 Lac ` 8.00 Lac
Interest subsidy Interest subsidy is available for loan amount upto ` 5 lac
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All India Oriental Bank Officers Association___ .
Points to remember:
In case of NPA accounts, subsidy will be suspended.
Cost of advocate, valuer, mortgage, insurance shall be borne by the applicant.
Location of land should be in urban areas where total population should not be less that 1
Lac as per 2011 census.
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All India Oriental Bank Officers Association___ .
accepting let out property as security. Branches shall not have any power for
accepting let out properties.
(The Loan/Overdraft limit will be repayable upto maximum age of
75 years of Guarantor.)
Loan against agricultural land / plot of land (plot in isolation)
partially constructed property shall not be granted.
Properties let out to our bank for premises shall be considered as
self occupied. Loan against agricultural land / plot of land (plot in
isolation) partially constructed property shall not be granted.
Assessment 50% of the realizable value of the property (overall maximum limit).
of loan limit 36 months of gross income in case of salaried persons.
4 times of average net annual income of last 2-3 years in case of persons
other than salaried ones.
Whichever is less.
Net Take Home: For individual : 30%;
ROI BR+2.25%; Process fee
Term Loan- 0.50% of Term Loan + Service Tax, if any (One Time Fee)
Overdraft- 0.10% of loan amount + Service Tax, if any (Recurring Fee).
Documentation charges
Up to ` 2.00 lacs Nil
Over ` 2.00 lacs to ` 10.00 lacs ` 1000/-
Over ` 10.00 lacs to ` 25.00 lacs ` 2500/-
Over ` 25.00 lacs to ` 50.00 lacs ` 5000/-
Over ` 50.00 lacs to ` 100.00 lacs ` 10000/-
Over ` 100.00 lacs ` 15000/-
Period of A) For Business Entities
loan a) Term Loan: Maximum upto 84 months repayable on EMI basis
b) Overdraft limit: 84 months subject to annual review with
progressively reducing limit at 15% p.a. of the original sanctioned
limit, so as to liquidate the facility within the maximum period of 7
years.
IV ` 50 lac
V ` 75 Lac (As RH 100 Lac)
VI ` 75 Lac (AS RH 500 Lac)
VII ` 75 Lac (As RH 1000 Lac)
HLCC ED Ind ` 7500 Lac Group ` 15000
Lac
Points to remember:
1. Sanctioning of staff under OMLS scheme power vested with RLCC-RH (for the staff worked
at branches/STC (other than STC Noida) etc and staff posted at HO power vested with
HLCC-ED. (Circular HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
3. Criteria for net take home are not applicable for Firm/company. Income as declared in the
income tax returns / assessments and / or supported with financial statements and / or
certificate from a qualified CA shall be considered.
4. IMAC rating model will be utilised for loans to individual (where financial is not available) for
personal use. However, where loan is sanctioned for business model OTLS scheme be used.
(Circular no. HO:Retail:17:2013-14:508 dated 26.08.2013)
5. The property can be kept as security in the account of owner or close relatives (viz. spouse,
parents, brother, sister, son, daughter) or business concern 100% owned by the owner /
such close relatives. Property charged in OMLS account may be extended to cover other
facility to the extent of spill over available i.e. property value in excess of 200% of the limit
(O/S in case of term loan & sanctioned limit in case Overdraft- as per present valuation) can
be extended to cover other facility sanctioned to Owner. (Amended vide Circular no.
HO:Retail:53:2014-15:988 dt: 20.03.2015)
Working capital finance and term loan together should not exceed
50% of the realizable value of the property taken as collateral
security.
Process 1. Working capital- ` 100.00 per lac plus service tax.
Fee 2. Term / Demand loan - Upfront fee of 0.50% of the loan amount plus
service tax, if any
1. The party shall exclusively deal with our Bank for all intent and business
purpose. An undertaking to this effect shall be obtained and kept on
record.
2. The OD account shall be monitored and ensured that minimum 60% of
EXCLUSIVE
turnover is being routed through the account. In case of non compliance,
DEALING
1% penal interest shall be charged over and above the normal rate of
CLAUSE
interest. The compliance of this clause shall be ensured at the time of
annual review/renewal of the account.
3. In case the loan is availed in shape of term loan, the concerned borrower
shall also maintain their operative account with us.
Points to remember:
1. Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). The property can be kept as security in the account of
owner or close relatives (viz. spouse, parents, brother, sister, son, daughter) or business
concern 100% owned by the owner / such close relatives. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
2. Property or security already charged in OMLS/OBLS account may be extended to cover other
facility to the extent of spill over available i.e. property value in excess of 200% of the limit
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(o/s in case of term loan & sanctioned limit in case of overdraft as per present valuation)
can be extended to cover other facility sanctioned to owner. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
3. In case of let out properties RLCC-RH & above shall be empowered to permit the accepting
let out property as security. Branches shall not have any power for accepting let out
properties under OBLS/OMLS Scheme. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014) Properties let out to our Bank for premises shall be considered as
self occupied.
4. Loans to restricted sector such as SME & Others) upto ` 10.00 Cr dealing in Gems &
Jewellery/Software/IT Enterprises/Call Centres is permitted under OBLS/OMLS Scheme.
(Circular no. HO:Retail:32:2014-15:610 dated 27.10.2014)
5. Condition for primary security as Hypothecation of stock and Book debt has been removed.
Stock statement is not insisted. However end use of fund need to be ensured when loan is
given for business purpose. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
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penalty to be charged.
Points to remember:
1. The condition of obtention of employees undertaking has been waived off. However
undertaking from employee shall be undertaken for recovery of monthly dues,
undertaking addressed to employer for release of terminal benefit in case of eventuality
in favour of our Bank. Copy of the same to be forwarded to employer through registered
AD.
2. Loan to staff members under OPLS Govt scheme is permitted for intervening period i.e.
till they get eligible for staff OD facility. Officer ` 3 Lac, Non Subordinate ` 2 Lac,
Subordinate ` 0.75 Lac. (Circular no. HO:Retail:22:2014-15:443 dated 29.08.2014)
3. Personal Loan to teachers of school be considered under Oriental Personal Loan Scheme
for Govt./PSU Employees with the condition that salary of the teacher should be paid by
the Government/ treasury directly. (Circular No.HO:Retail:41:2015-16:644 dated
09.11.2015)
4. RLCC-RH is empowered to sanction loan upto Rs. 3.00 lacs to individuals (working under
corporate sector) having salary account with our Bank. For Loans above Rs. 3.00 Lacs
HLCC-ED will be the sanctioning authority. Further, RLCC-RH is empowered to sanction
Loans upto Rs. 3.00 lacs under OPLS-Corp scheme to applicants not maintaining their
salary account with our Bank. The said facility shall be available only for employees
having gross monthly salary above Rs. 50.000.00. (Circular No. HO:Retail:41:2015-
16:644 dated 09.11.2015)
Financing counseling for IITs for Super 30 (Patna)
(Circular No. HO:Retail:23:2015-16:322 dated 21.07.2015)
Type of Loan Clean Loan Personal Loan
Eligibility Students of Super 30 who have qualifies IIT Advance for
admission in IIT (Minimum qualifying Marks 95 Percentile)
Amount Rs. 60,000.00 at present (non exceeding Rs. 75,000.00 as
prescribed by counseling board)
Security Parents of students will be co-obligant
Margin Nil
Period 60 days (Maximum)
ROI BR+2%, Scheme Code: TL677
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their pledging. As such, It is to be ensured that 100% value is being recorded in the
ornaments register at the time of pledging jewelry or ornaments
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Purpose To acquire Autos (3 wheeler), Taxis (4 wheeler) / Small Cargo Vehicles for
commercial use only.
For Individuals & purchase of one Valid Driving License
vehicle
For purchase of More than one vehicle Valid Driving License with
Minimum experience of 3 years
Eligibility Individual, partnership, sole proprietorship, private Ltd. / Public Ltd. companies
are all eligible.
Note: The borrower shall obtain valid permit to ply the vehicle as per applicable
rules of Regional Transport Officer (R.T.O).
Loan 85% of On Road price (As per pro-forma invoice). Upto ` 10.00 lacs per vehicle
Amount subject to aggregate maximum limit of ` 50 lacs.
No. of Up to 10 (ten) vehicles per entity irrespective of it being an individual,
vehicles partnership, sole proprietorship, private Ltd./ Public Ltd. Companies.
Security Hypothecation of Auto/Taxi/ Small Cargo Vehicle to be purchased from Banks
clause Finance.
(The hypothecation clause shall be registered with RTO)
Loan upto ` 5.00 Lacs No Collateral Security, Mandatory CGTMSE
Guarantee Coverage
Loan amount above ` 5.00 50% Tangible Collateral security in the shape of
Collateral
Lacs upto ` 10.00 Lacs Immovable / liquid security or CGTMSE
Security Guarantee coverage
Loan amount above ` 10.00 100% tangible collateral Security in the shape of
Lacs Immovable/liquid security or CGTMSE
Guarantee coverage
Margin 15% of the On-Road price of the vehicle(s).
Loan Limit Normal ROI If covered under
CGTMSE
Loan upto ` 2.00 Lac BR+2.00% BR
Above ` 2 lac to ` 25.00 Lacs BR+2.00% BR+1.00%
Above ` 25 Lacs to ` 1.00 Crore BR+2.50%, If BR+0.50%, If
Rate of CR-1 CR-1
interest (*CR- Credit Rating) BR+2.75%, If BR+1.00%, If
(Current CR-2 CR-2
Base rate is BR+3.00%, If BR+1.50%, If
10.25%) CR-3 CR-3
BR+3.25%, If BR+2.00%, If
CR-4 CR-4
BR+3.50%, If BR+2.50%, If
CR-5 CR-5
BR+3.75%, If BR+3.00%, If
CR-6 CR-6
Penal In case of delayed payment, a penalty of 2% on the overdue amount for the
Interest overdue period shall be charged.
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Process Fee 0.50% of loan amount with a minimum of ` 500/ + Service tax, if any.
60 months including moratorium period of 3 months. Servicing of interest during
Repayment
moratorium period is compulsory.
Line of business, experience, driving history, invoice of dealer/vendor, inspection
Check points
of vehicle.
Working capital
For running day to day expenses of business
Applicant's 1. Proprietary concerns of women
Eligibility 2. Partnership firms, where majority partners are women
3. Companies, where majority of promoters shares are held by women
Loan Upto Rs 10.00 Lacs
Amount Out of which WC not to exceed Rs 5.00 Lacs
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Collateral
Up to ` 2.00 Lacs NIL
Above ` 2.00 Lacs- Tangible collateral security up to 100% of loan value.
Repayment For Term Loan- the repayment period is 5 to 7 years with maximum moratorium
of 3 to 6 months.
Prepayment NIL
Penalty
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respective sanctioning power. The same shall be treated as third party deposit for the
purpose of Rate of interest and Margin.
5. Branch incumbent and RLCC-RH shall not have any power to grant loan against Deposit
if the Deposit receipt is in the name of an individual and the advance is sought by Trust/
Society/ HUF/ Club/ AoP etc. However, HLCC-ED/CAC/MCB shall have power to grant
loan against deposit if the deposit stand in the name of an individual and the advance is
sought by Trust/ Society/ HUF/ Club/ AoP etc.
6. The advance against self deposit shall be permitted at parent branch only. Any deviation
shall be permitted by the next higher sanctioning authority. Advance shall be permitted
only against original deposit receipt. Request for advance against duplicate deposit
receipt shall be considered by the next higher authorities.
7. No advance can be given to an individual if the deposit is in the name of: Partnership
firm, Limited Liability Partnership, trust/ Society, Club/ AoP, HUF, Public Limited
Company (closely held/ listed), Private limited company, Any other incorporated Body.
8. Cash disbursement should not be allowed directly from the loan account in all cases.
9. Enhanced due diligence should be excercised in case of loans against deposit is in the
name of : Proprietor ship concern, Partnership firm, Limited Liability Partnership, Trust/
Society, Club/ AoP, HUF, Public Limited Company, Private Limited Company (Closely
held/listed), Any other corporate entity,
10. In case of Loan against self or third party deposit to staff as well ex staff of the Bank,
50% concession in the normal shall be applicable
11. Branches should not allow creating FDRs out of overdraft allowed. (Circular no.
HO:Retail:36:2013-14:908 dated)
(Cir HO:Retail:46:2015-16:687
dated 27.11.2015)
Purpose To finance Earnest Money Deposit for To finance Earnest Money Deposit for
applicants desirous of purchasing flats / applicants desirous of purchasing flats
plots under scheme by State Housing at Affordable Housing Projects of
Boards / Urban Development Authority private builders.
(SHB/UDA).
Eligibility Any person or group of persons, singly Any person or group of persons, singly
or jointly having capacity at least to or jointly having capacity at least to
repay the Earnest Money Loan. repay the Earnest Money Loan. Staff/
Ex-staff with the condition that they
are allowed loan for single application
and not multiple applications under
any scheme. Classification of advance
will be conventional and non-priority.
Loan 100% of Earnest Money Deposit subject 90% of Earnest Money Deposit subject
amount to maximum of ` 10.00 Lacs to maximum of ` 3.00 Lacs
Margin Nil 10%
Rate of Base rate i.e. 9.70% Base rate i.e. 9.70%
Interest Upfront interest (fixed for scheme Upfront interest (fixed for
period) to be recovered for the scheme period) to be recovered
period of scheme. for the period of scheme.
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Disbursem Entire Earnest Money Deposit (including Entire Earnest Money Deposit
ent margin) shall be paid directly to State (including margin) shall kept in an
Housing Board/Urban Development escrow account as per agreement with
the Builder.
Authority along-with application on
behalf of borrower.
Initially 23, RCPCs are opened in Bank. Mortgaged based Housing Loan and OMLS, OBLS products
are handled by them. The branch to whom sanction will be communicated will be responsible for
Documentation/ Collection of Bank Charges/ Fees/ Disbursement of loan/ Post sanction follow- up /
Recovery (including action under SARFAESI Act and other legal proceedings) till the closure of
account.
Once the loan is sanctioned by the RCPC, Branch Manager shall have the power of
renewal/review of the account within their delegated powers, overall framework of the loan
policy and other guidelines of the Bank. For the cases sanctioned by the RCPC beyond the
delegated power of Branch Manager, renewal/review of the account shall be done by the
concern Regional Office within their delegated powers, overall framework of the loan policy and
other guidelines of the Bank. For the cases recommended by RCPCs and sanctioned by Regional
Office/Head Office, renewal/review of the account shall be done by Regional Office/Head Office
within their respective delegated powers as the case may be.
Enhancement shall be done by the RCPCs/Regional Office/Head Office within their respective
delegated powers as the case may be.
For existing cases, renewal/review shall be done by the Branch/Regional Office/Head Office
within their respective delegated powers. However, enhancement, in existing cases, shall be
done by the RCPCs/Regional Office/Head Office within their respective delegated powers as the
case may be. The branches located in 15 Kms. radius of RCPC even if they are not city branches
and are having good potential for Retail Loans shall be attached to the RCPC on receipt of
recommendations from the Regional Head.
General Manager (Retail Credit) is authorized to permit addition of any branch with RCPC.
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FOR LIMIT ABOVE RS.5.00 CR, EXTERNAL RATING SHOULD BE OBTAINED FROM APPROVED
RATING AGENCY
TERM LOAN (ASSESSMENT OF TL SHAL BE AS PER LOAN POLICY OF THE BANK) IN CASE OF
CONSTRUCTION OF BUILDING LIMIT IS MAX 50% OF CENTER WISE.
TYPE OF WORKING CAPITAL LIMIT UPTO 10% OF ANNUAL SALE OR GROSS INCOME, SUBJECT TO
FACILITY 10% OF THE CEILING LIMIT OF CENTRE IN CASE OF BORROWERS REQUIRING BOTH TERM
LOAN AND WORKING CAPITAL FACILITIES. IN CASE BORROWER REQUIRING ONLY WORKING
CAPITAL LIMIT, 20% OF THE CEILING LIMIT OF CENTRE.
Limit Current Debt Equity Leverage Average
Ratio Ratio (DE) ratio DSCR
ACCEPTABLE
Upto Rs. 5.00 1.17:1
FINANCIAL 1.25:1
Cr
RATIO Upto 3:1 Upto 4:1 (in case of
Above Rs. 1.25:1
TL)
5.00 Cr
25% OF ACQUISITION OF PREMISES AND/OR EXPANSION/ RENOVATION/
MODERNIZATION OF EXISTING EQUIPMENT
MARGIN 15% FOR PURCHASE OF EQUIPMENT/ MACHINERY
15% OF COST OF VEHICLE ON ROAD FOR AMBULANCE/ OTHER VEHICLE
NIL IN CASE OF WC (CLEAN)
RATE OF
Security Coverage ROI
INTEREST
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(FLOATING) Ratio
50% up to 75% BR+2.50%
Above 75% upto BR+2.00%
100%
Above 100% BR+1.50%
PROCESS FEE 50% CONCESSION IN APPLICABLE PROCESS FEES/ UPFRONT FEE
PRIME SECURITY:
HYPOTHECATION OF ASSETS CREATED OUT OF BANK FINANCE.
EQUITABLE MORTGAGE OF IMMOVABLE PROPERTY IN CASE OF CONSTRUCTION/
RENOVATION OF LAND AND BUILDING
SECURITY COVERAGE:
FOR LOANS UPTO ` 0.10 CR:- NIL
FOR LOANS UPTO ` 1.00 CR MINIMUM 50% SECURITY
SECURITY FOR LOANS ABOVE ` 1.00 CR MINIMUM 100% SECURITY COVERAGE
INCLUDING COLLATERAL.
GUARANTEE:
PERSONAL GUARANTEE OF PROMOTERS/ DIRECTORS/ TRUSTEES ETC. ADVANCE IS TO PVT.
LTD. CO., LTD. CO. & TRUST
THE OPTION OF GUARANTEE COVERAGE UNDER CGTMSE SCHEME MAY BE OFFERED
TO THE BORROWER INCASE HE IS PROVIDING ONLY PRIMARY SECURITY AS
SECURITY COVERAGE
Discretionary As per delegated power chart
power
OBC MSME Vishesh & OBC MSME - Tatkal
(Circular No. HO:CAD:26/2015-16/261 dated 26.06.2015)
OBC MSME Vishesh OBC MSME Tatkal OBC MSME CDL
(Working Capital Facility) (Contingency Demand
Loan)
Facility Auto increase of working Working Capital Limit by Contingency demand
capital limits for MSME extension charge on loan for MSME Borrower
(Medium and Small existing security & filing by extension of charge
Enterprises) borrowers of charge with ROC if on existing asset or
effective from beginning applicable assets to be created out
of financial year of bank finance. CDL will
be based on documents
evidencing/ justifying
the contingency and
invoice
Purpose To provide on the spot To provide on the spot To meet future
need based additional need based additional emergency capex
financial assistance financial assistance requirement of the unit
towards bottlenecking/
breakdown etc. to cater
the need of MSME
(Manufacturing &
Service sector)
Eligibility Qualified only OBC MSME Minimum 2 years Qualifying MSME units
Plus Borrower satisfactory with OBC-4 rating
Minimum 2 years (Standard Regular) Minimum 2 years
satisfactory (standard) conduct of account & satisfactory
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3 Personal BR + 2.25%
0.25% of special concession to women BSNL employees
Where schemes are covered under Pradhan Mantri Mudra Yojna (MSME upto 10 lacs) such
as auto and taxi, loans to professionals, loan to trader etc. use Annexure A as a loan
application form (Circular No. HO:RD PS:42:2015-16:405 25th August, 2015)
Banks should provide a clear, concise, one page key fact statement/fact sheet to all
individual borrowers at every stage of the loan processing as well as in case of any change
in any terms and conditions. (Circular No. HO:Retail:01:2015-16:14 Date: 01.04.2015)
The CRM Committee vide agenda item no. 12 in its 115th meeting dated 20.04.2015, has
approved the checklist for implementation in all fresh Retail Loan proposals as a prevention
of Frauds measure at the time of appraisal itself. (Circular No. HO:Retail:08:2015-16:84
Date: 01.05.2015)
No Deviation are to be allowed in schematic lending schemes, however wherever necessary
the deviation/ justification proposals be sent to HO supported by proper justification and
value of account only in most deserving cases with proper due diligence. (Cir No.
HO:Retail:59:2015-16:839 dated 28.01.2016)
Levy of foreclosure charges/prepayment penalty on floating rate term loans is waived off
except Loan facility other than term loans; Loans sanctioned on fixed ROI & Credit facilities
sanctioned to person other than individual. (Circular no HO:Retail:07:2014-15:101 dated
10.05.2014)
For internal monitoring, it is mandatory to enter the proposal in Proposal Tracking system.
Further, for tracking of loan application by the customers, All proposals submitted by the
borrowers be also entered into the online format (available at website www.obcindia.co.in)
by the branches simultaneously and shall be available for tracking on the website by the
applicant. After entering the loan proposal through above link, the branches shall give
tracking number to the applicant, which may be used for future tracking of the application
by the borrower. (Circular No. HO:Retail:29:2015-16:455 dated 14.09.2015)
TAT (Turn Around Time is reduced as under:
Housing Loan 7 Days
Vehicle Loan 24 hours for existing customer client and 3 days for new customers.
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No fresh additional PDS shall be accepted provided branches should obtain 6 PDCs (in CTS
2010 Format) of the account from which ECS Debit Mandate has been given by borrower as
security. While recovery of the EMI will be done by ECS//SI in lieu of PDCs, these cheques
shouldnt be used for the purpose of recovery of regular EMIs as a matter of routine. Where
ECS/RECS facility is not available, branches may obtained PDCs complying with CTS2010
standard for recovery of EMIs. (Circular No HOP:Retail:35:2013-14:907 dated 08.01.2014)
No inspection charges shall be levied under any Retail Credit Scheme, if facility is availed for
personal purpose. However, in case credit facility is availed for business purpose under the
schemes OBLS, OMLS, Loan to Traders etc. inspection charges as per Loan policy or guided
by RMD Deptt. shall be levied. (Circular No. HO:Retail:47:2014-15:979 Date:17.03.2015)
Prior to sanctioning and disbursal of any credit facility under Retail Scheme, the borrower
must be having an operative account (SB/CA/ CC/ OD) with the bank or should open one.
(Circular No. HO:Retail:45:2014-15:924 Date: 21.02.2015)
Festival Bonanza Offer of 100% waiver in process fee for Home Loan, Vehicle Loan, OBLS
Loan and 0.25% concession in Rate of Interest in Vehicle Loan during the festival
bonanza(period extended till 31.03.2016). (Circular No. HO:Retail:50:2015-16:768 dated
30.12.2015)
In order to ensure retention of valuable customers on arrangement has been made with
CIBIL to provide live consumer triggers whenever banks existing customer approaches
other Bank/FIs for credit facilities. The type and amount of loan, borrower has approached
for outside the Bank is made available on CIBIL site. (Circular No. HO:Retail:45:2015-16:686
dated 01.12.2015)
Further, as per the direction of Board of Directors, all borrowers who approach our Bank for
sanction of loan and whose TU score > 700, must be sanctioned loan on merit and priority
basis so that chances of shifting to other Banks are eliminated. (Circular No.
HO:Retail:39:2015-16:587 dated 23.10.2015)
In all fresh account mobile no. should invariably be captured while account opening and in
existing account the latest mobile no. should be updated. (Circular No.
HO:Retail:33:2015-16:493 dated 24.09.2015)
Change of S.Tax :-w.e.f. 15.11.2015 14% +0.50 (Swatch Bharat Cess) {All over India
except J&K} (HO/Act/632/-07.11.2015)
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Saving Smart Save Flexi Fixed Average Quarterly Credit Balance Rs.25,000/-
7. SB 211
Deposit Balance above Rs.25000/- will automatically be converted
into Term Deposit.
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One of the important functions of the Bank is to accept deposits from the public for the
purpose of lending, hence depositors are the major stakeholders of the Banking
System.With liberalization in the financial system and deregulation of interest rates, banks
are now free to formulate deposit products within the broad guidelines issued by RBI.
Savings Bank Accounts can be opened for eligible person / persons and certain
organizations/agencies (as advised by Reserve Bank of India) from time to time.Due
diligence required to carry out Know Your Customer (KYC) and Anti Money Laundering
(AML)) guidelines of RBI / GOI and Policy and Procedures adopted by the Bank in this
regard.
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CHARGES IN SB ACCOUNT
Minimum balances charges
Restrictions on number of transactions, cash withdrawals, etc., for given
period.
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All India Oriental Bank Officers Association___ .
At the request of all the Joint Account Holders the addition or deletion of name/s of Joint
Account Holder/s is allowed if the circumstances so warrant or allow an Individual
Depositor to add the name of another person as a Joint Account Holder.
NOMINATION
Nomination facility is available for all Saving Bank schemes.
INTEREST PAYMENTS
Interest on saving account shall be paid at the rate decided by the Bank within the
general guidelines issued by the RBI from time to time.
SB Deposit(accounts of resident Indians) interest rate has been deregulated
since 25.10.2011)
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Member or a retired member of the banks staff, either singly or jointly with
any member or members of his/her family, having FIRST NAME OF STAFF;
or
the spouse of a deceased member or a deceased retired member of the
banks staff; and
An Association or a fund, members of which are members of the banks staff;
Inoperative/Unclaimed Accounts
A SB account shall be treated as inoperative / dormant if, there are no transactions in the
account for over a period of two years. For the purpose of classifying an account as
inoperative both the type of transactions i.e. debit as well as credit transactions induced at
the instance of customers as well as third party should be considered. However, the service
charges levied by the bank or interest credited by the bank shall not be considered.
The customers shall be intimated (all joint account holders) three months in advance, about
his/her account falling into inoperative category and the consequences thereof in case no
credits/debits are made within stipulated period.
Unclaimed deposit accounts means accounts, which have not been operated upon for ten
years
In an effort to play a more pro-active role in finding the whereabouts of the account
holders of unclaimed deposits/inoperative accounts, the list of such accounts which are
inoperative for ten years or more has been displayed on our Banks website. For Individual
Customers, the list so displayed on the website contains the names of the account holder(s)
and his/her address in respect of unclaimed deposits. For Non Individual Customers, the list
so displayed on the website contains the names of the Entity and its address in respect of
unclaimed deposits.
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A Current account shall be treated as inoperative / dormant if, there are no transactions
in the account for over a period of two years. For the purpose of classifying an account as
inoperative both the type of transactions i.e. debit as well as credit transactions induced
at the instance of customers as well as third party should be considered. However, the
service charges levied by the bank or interest credited by the bank shall not be
considered.
The customers shall be intimated (all joint account holders) three months in
advance, about his/her account falling into inoperative category and the
consequences thereof in case no credits/debits are made within stipulated period.
Unclaimed deposit accounts : Accounts, which have not been operated upon for
ten years
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EEFC CA IN FOREIGN CURRENCY. ANY TYPE OF REMITTANCES COMING FROM ABROAD CAN BE KEPT IN
CA 104 USD, GBP, EURO, CANADIAN $ EEFC A/C.
AND AUSTRALIAN $. FREELY REPATRIABLE.
FUNDS FROM ABROAD.
IMPREST ACCOUNT BRANCHES MAINTAINING CURRENT A/CS OF EXTENSION COUNTERS, LEAD BANK OFFICES, STCS, SPL.
CA 105 COLLECTION CENTRES, STATIONERY GODOWNS, CENTRAL CASH CENTRES, CURRENCY CHESTS,
SATELLITE OFFICES, ASSETS RECOVERY CELLS, INSPECTORATES, SERVICE BRANCHES, MICR CENTRE.
BANKERS CA 106 CURRENT A/CS OF BANKS MAINTAINED WITH THE BRANCHES.
CA MARGIN MONEY MARGIN MONEY KEPT IN C/AS AGAINST ISSUE OF L/CS, GUARANTEES, ETC.
CA 107
CURRENT ACCOUNT AVERAGE QUARTERLY CREDIT BALANCE RS. ALTHOUGH NORMAL CHEQUE BOOKS CAN BE USED
PREMIUM GOLD 200,000/- FOR CASH(SELF) WITHDRAWAL / TRANSFER
CA 109 TRANSACTIONS UNDER ABB, BUT FOR CLEARING
TRANSACTIONS AT UPCOUNTRY LOCATIONS, MULTI
CITY CHEQUE BOOKS ARE ISSUED.
NO CHARGES FOR CHEQUE BOOKS
(LOCAL OR MULTI CITY)
MAXIMUM LIMIT FOR CASH TRANSACTIONS-ABB
(RECEIPTS & PAYMENTS COMBINED) RS.1 LAC
NO CHARGES FOR CASH TRANSACTIONS UP TO
RS.50,000/-
ABOVE RS.50,000/- - IRRESPECTIVE OF LOCATION
- RS.0.75 PER THOUSAND OR PART THEREOF FOR
FULL AMOUNT WITH A MINIMUM OF RS.25/-
NON CASH TRANSACTIONS - NO CHARGES FOR
TRANSACTIONS UP TO RS.25,000/-
ABOVE RS.25,000/- - SAME STATION FREE
UPCOUNTRY LOCATIONS - RS.0.50 PER THOUSAND
FOR THE FULL AMOUNT OF TRANSACTION WITH A
MIN. OF RS.50/- & MAX. RS.5000/-
CA 111 EXEMPTION FROM CAPITAL GAINS TAX U/S 54,
54B, 54D, 54F AND 54G OF INCOME TAX ACT,
1961 ALLOWED. OPTION TO OPEN ACCOUNT A OR
B.
CURRENT ACCOUNT
INTEREST OR WITHDRAWAL FROM ACCOUNT B CAN
CAPITAL GAINS SCHEME
BE MADE THROUGH ACCOUNT A ONLY.
ACCOUNT A FOR SB/CA
INTRODUCTION OF THE DEPOSITOR NEED NOT BE
ACCOUNT B FOR TD
INSISTED UPON.
JOINT ACCOUNT NOT PERMITTED. CHEQUE BOOK
FACILITY NOT ALLOWED.
WITHDRAWAL OF INTEREST DOES NOT REQUIRE
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PRAGATI CA MINIMUM BALANCE RS.1000/- IN R/SU & ALL NEW CURRENT A/CS W.E.F. 14.08.2007
SCHEME RS.5000/- IN U/M BRANCHES SHALL BE COVERED UNDER THE SCHEME FOR.
CA 113 FOR A/CS MAINTAINING AVERAGE DAILY CA ONE FREE ATM/DEBIT CARD FOR EVERY A/C. FREE
BALANCE OF RS.5 LAC OR MORE CARD MAY ALSO BE PERMITTED TO THE PARTNERS OF
THE FIRM/DIRECTORS OF THE WHO ARE
AUTHORIZED TO OPERATE THE A/C.
ST
WAIVER OF 100% ABB CHARGES DURING THE 1
YEAR.
FREE INTERNET / TELE BANKING
WAIVER OF DEMAT A/C MAINTENANCE CHARGES
FOR ONE YEAR.
ADDITIONAL BENEFITS :
FREE DRAFT ISSUANCE FACILITY
FREE RTGS FACILITY UP TO RS.5 LACS.
(HOWEVER, MANDATORY RBI CHARGES PLUS
APPLICABLE SERVICE TAX SHALL BE RECOVERABLE).
CA 117
ADMIN CURRENT FOR OUR OWN OFFICE USE A/C OPENED BY OUR BRANCHES/OFFICES FOR
ONLY ONLINE REMITTANCE OF TDS DEDUCTED
Due diligence required to carry out Know Your Customer (KYC) and Anti Money Laundering
(AML)) guidelines of RBI / GOI and Policy and Procedures adopted by the Bank in this regard.
SCHEME
SCHEME AMOUNT PERIOD SPECIAL FEATURES
CODE
TD 301 (Qty. Liq.)
TD 302(Without Liq.)
Minimum 07 days to 120
Fixed Deposit Interest Payable Quarterly TD 308 Diff. Intt. Rate
Rs.100/- months
TD 311 FDR-Banks
TD 312 Govt Spon
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Subsidy
6 months to TD 303
Cumulative Multiples of 120 months In Quarterly Compounding TD 309
Deposit Rs.100/- multiples of 3 Lump Sum payment on maturity Diff.Intt.Rate
months TD 310 Court Claim
Issued in favour of beneficiaries on
Call Deposit At Call account of applicants TD 304
Zero Interest
Amount is
Monthly accepted so that
12 months to Interest is paid on Monthly basis.
Income Monthly Income TD 305
120 months Principal paid on maturity.
Deposit is in multiples of
Rs.10/-
Amt is accepted
Monthly so that Monthly
12 months to Interest is paid on Monthly basis.
Income Income is in TD 305
120 months Principal paid on maturity.
Deposit multiples of
Rs10/-
Quarterly Compounding
Minimum
Partial withdrawal in multiples of
Suvidha Rs.2000/- 12 months to
units of Rs.1000/- allowed. TD 306
Deposit In Multiples of 120 months
Remaining units continue to earn
Rs.1000/-
interest at Contracted Rate.
Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G of
Income Tax Act, 1961 allowed.
Interest or withdrawal from Account B can be made through Account A
Capital Gains
only
Scheme 1988
Introduction of the depositor need not be insisted upon.
Account A TD 313-FDR
Joint account not permitted.
for SB/CA TD 314-CDR
Withdrawal of Interest does not require permission from IT Authority like
Account B
the withdrawal of Principal amount. Special Account Opening Form to be
for TD
obtained in duplicate. The forms as obtained during the course of
operation of account / withdrawals /closure of accounts to be submitted
to the IT authority within 7 days
A/C can be opened by NRI/ PIO.
Any resident going abroad for gainful
employment can open NRE account.
In Indian
Joint a/c with Residents not
Rupees. TD 321-FDR
NRE 1 to 10 years permitted (conditional). Joint a/c
Funds from TD 325-CDR
with Non-Residents /Residents (with
abroad.
conditions) permitted.
Freely Repatriable. Exempted from
all taxes.
A/C can be opened by NRI/ PIO.
Any resident going abroad for
gainful employment, his domestic
account will be converted into
NRO a/c. If he/she does not have
In Indian any domestic a/c, he/she can
Rupees. Funds As applicable to elect to open a NRO a/c. TD 322/323-FDR
NRO
Local/ from domestic TD Joint a/c with Residents/Non- TD 324-CDR
abroad. Residents permitted.
Non-repatriable except to the
extent of USD 125000 per
financial year including sale
proceeds of immovable property.
No Tax exemptions.
Funds from Minimum 12 A/C can be opened in TD only by
TD 331-FDR
FCNR (B) abroad. months Maximum 5 NRI/ PIO. Any resident going abroad
TD 332-CDR
In Foreign years for gainful employment can open
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Highlights
Oriental Bank of Commerce is one of the 1st Public Sector Bank certified with Payment Card
Industry Data Security Standard (PCI DSS v3.1) for Card related Operations.
First Saturday of every month be observed as ADC Day. If First Saturday is holiday than the
ADC Day shall be observed on the preceding day if it is in the same month, else on the
following Monday.
Bank is accredited with ISO/IEC 27001:2013 Security Certification for its Data Centers, CBS
Cell & Processes at DIT Corporate Office.
w.e.f. 1st February 2016, all new cards issued - debit and credit, domestic and international
- by Banks shall be EMV Chip and Pin based cards.
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EMV chip based cards shall provide interoperability with the global payments infrastructure and
consumers with EMV chip payment cards can use their card on any EMV-compatible payment
terminal.
RuPay is the Indian domestic card payment network set up by National Payments
Corporation of India (NPCI) . Its our prime responsibility to PROMOTE usage of RUPAY card
amongst our customers.
Bank has launched new Internet Banking Platform FEBA (Finacle E-Banking) which is more
resilient with additional features as under:
o Self User creation through ATM credentials and OTP
o Regeneration of User ID and Password
o Schedule NEFT/ RTGS
o Bulk NEFT/ RTGS for Corporate i-Banking
o IMPS on Internet Banking
o Online PPF a/c
o User dashboard customization etc.
o Setting up of limit for Ibank Transactions with a cap of Max 25 Lac
o Setting up the limit for beneficiary
Bank has launched Mobile APP ORIENTAL SAATHI with following features / Tabs have
been provided in the App:-
o 1. Branch/ ATM Locator
o 2. Complaint / Suggestions
o 3. EMI Calculator
o 4. Interest Rates
o 5. Alerts
o 6. Contact Us
All official documents should henceforth have the standardized Font viz. Arial with Font size
of 12 and Single Line Spacing.
DIGITAL BANKING
The transformation of the Banking services from Traditional Banking offerings to the Digital
Banking offering is dependent on connecting the customers through latest & contemporary
technology driven products of the Bank. Becoming a Digial Bank is about leveraging digital
technology to provide an enhanced customer experience that fits the lifestyle of the increasingly
digital consumer. The impact of the digitization of financial services has been enormous due to high
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penetration and rapid acceptance of internet based services and mobile devices such as smart
phones, tablets and e-readers which has set the foundation for rapid innovation into digital
financial service offerings.
The usage of alternate delivery channel is a step to move towards the digital banking. The
functional usage of the ADCs is a key for improving the customer service by empowering the
customer with self banking tools and at the same time decongests the branches.
It becomes difficult to contact the customers for upselling and cross selling our various products
and services. Capturing of Mobile numbers and Email Ids of the customer shall be beneficial in the
following ways:
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Six Metro centres are Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
In terms of HO Circular HO/ADC/12/2015-16/860 Dated 2/02/2016 Charges were
levyied on the staff members also on using the other Banks ATMs for more than 3
transactions in a month .
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viii. The persons with blindness, low vision, and other disabilities are offered all banking facilities
such as cheque book including third party cheques, ATM facility, Net banking facility, locker
facility, retail loans and Credit Cards etc. without any discrimination
ATM-cum-Debit cards can also be used for conducting online transactions w.e.f
10/11/2010- VBV registration (Requirements for availing Verified By VISA service)- OBC Debit
Card should have CVV values. OBC Debit Card is enabled for POS i.e. should be full limit card. OBC
Debit Card holders mobile no is enabled for SMS alert service.
Internet Banking enables a customer to perform basic banking transactions through Internet from
anywhere in the globe. It is available 24 hours a day, 365 days a year and account can be operated
anytime / anywhere as per customer convenience.
Bank has launched new Internet Banking Platform FEBA (Finacle E-Banking) which is more resilient
with additional features as under:
Self User creation through ATM credentials and OTP
Regeneration of User ID and Password
Schedule NEFT/ RTGS
Bulk NEFT/ RTGS for Corporate i-Banking
IMPS on Internet Banking
Online PPF a/c
User dashboard customization etc.
Setting up of limit for Ibank Transactions with a cap of Max 25 Lac
Setting up the limit for beneficiary
Online trade finance requests request for LC opening, BG issue, Bill lodgment etc, Feature of
Maker/Checker, Feature of Role definition, Feature of adjusting/defining various limits by
corporate administrator itself etc.
Bank has implemented Second Level of Authentication i.e. OTP ( One Time Password)
for Net Banking Transactions, which is sent to Registered Mobile & Email Ids.
Some of the facilities offered are:
o Accounts Related Operations:
Online Balance Inquiry, View transactions, Statement of Account For a given period,
Cheque Status Inquiry, Clearing Instruments Inquiry, Stop Payment of Cheques etc.
o Fund Transfer Operations:
Funds Transfer to own accounts, Intra Bank Fund Transfer (to other accounts of OBC), Inter
Bank Fund Transfer (To accounts of other banks through NEFT/RTGS).
the NetBanking customers shall be able to make Loan EMI payment to their own Account as
well as to 3rd Party Loan Account using Transfers >> Third Party Transfers within Bank
Option.
o Payments:
External Payments like LIC of India for Premium Payments, IRCTC for Railway Reservation,
DB (Intt) Stock Brokers Ltd and Sharekhan for Funds Transfer Facility for Shares Purchases,
Payment of Direct Taxes, Payment of Telephone / Mobile / Electricity bills etc.
o Functionality To Open Online FDR/CDR (e-FDR/e-CDR)
The NetBanking customers shall be able to open Online FDR/CDRs using Requests >> e-
FDR/e-CDR Option.
The facility to create online e-FDRs/ e-CDRs using Retail NetBanking facility has been
activated only for customers where mode of Operation of the Account is Self,Either or
Survivor or Former Or Survivor.
Customers are able to open online FDRs / CDRs with the following scheme codes
1. CDR(Cumulative) TD303
2. FDR Without Liquidation (Fixed Deposit) TD302
3. NRE CDR TD325
4. NRO TDR TD324
5. NRO FDR Non Liquidation TD323
o Functionality to open tax saving CDR
a new functionality has been implemented in NetBanking system using which Retail
NetBanking Customers shall be able to create Online Tax Saving CDRs belonging to scheme
TD-341. Entering PAN number is mandatory for this scheme and PAN number must be pre-
registered at branch office
Deposit amount is minimum 5000 to 100000 (multiple of 100) and period is 60 month to
120.
o Online Share Trading in Collaboration with IDBI Bank
o Request for Issuance of Cheque Book, PO/DD
NetBanking Customers can also put in their request for issuance of Cheque Book, and
Demand Drafts, which are processed at backend by the Relationship Manager.
In addition to above, recently introduced following additions in features of Internet Banking:-
Internet Sign on and Transaction Password expiry limit has been reduced from 365 days to 90
days, to make it more secured.
Bank has introduced UCIC ( Unique Customer Identification Code) , hence for all new customers,
CUSTOMER-ID is the default user Id for accessing NetBanking facility. User at his wish can change
his user id online through Netbanking application. The NetBanking facility uses Customer ID to
automatically links all the accounts of a customer and facilitate Account related operations viz.
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Inquiry for account balance, transactional details and to perform various financial transactions. In
case, the customer is maintaining accounts with different Customer Ids, then the Branch may
modify the Cust. Id (by using Finacle CCA option) of additional accounts. The Cust.Id should be
same as of the Main Operative Account of the Customer. By doing this, all accounts linked with the
common Customer Ids will be reflected automatically in the Internet Banking Application.
Internet Banking facility can be availed by NRI customers also by filling the Internet Banking
application form and sending it to the branch where they are maintaining their account.
The request for retail Internet Banking facility also is registered using the DCREQ menu option in
Finacle. Once the entry is made in the DCREQ menu, the Internet Banking Cell at Gurgaon shall
download the data of such customers and generate their respective Passwords.. Sealed
Passwords will be sent to concerned branches only. Customers will be instructed to collect the
same from branch only.
In case customer forgets Ibank password, the same can be reset now online with the help of ATM
& PIN, or the same can be reissue after registering the request in Ideas software. After resetting
the password new NetBanking passwords id sent to customers mobile number instantly, which are
registered with Bank for SMS Alerts facility.
Request for Add-on User Id for Joint Accounts: After obtaining written request from the
Customer and verifying their credentials, Branch Head should give email request to the Internet
Banking cell, Gurgaon (ibank@obc.co.in) and provide full particulars of the Customer for generation
of additional User Id(s). They should provide details viz. existing User.Id, Account Type & No.,
Account holder name and Mode of Operations, Delivery address etc.
To create awareness among the staffmembers Internet Banking Campaign for staff
members was launched 100 Rupee Campaign
De-centralizing the processing of Re-Issue requests for Retail Net Banking Password to
respective Regional Officel ADC level
Queries on status of existing Retail I-Banking users.
Re-setting of passwords (login and/ or transactional) and sending them through
SMS to registered mobile number of customer.
Enabling/ disabling Retail I-Banking users.
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Under ASBA process, an ASBA investor shall submit an ASBA physically or electronically through the
internet banking facility, to the SCSB (designated branch) with whom the bank account to be
blocked, is maintained. The SCSB shall then block the application money in the bank account
specified in the ASBA, on the basis of an authorisation to this effect given by the account holder.
The application money shall remain blocked in the bank account till finalisation of the basis of
allotment of the issue or till withdrawal/ failure of the issue or till withdrawal/ rejection of the
application, as the case may be. The application data shall thereafter be uploaded by the SCSB
(Controlling branch) in the electronic bidding system through a web enabled interface provided by
the Stock Exchanges.
NOTE : ALL THE BRANCHES ARE AUTHORISED FOR ASBA
Mobile Banking
Mobile phones as a medium for extending banking services have off-late been attaining greater
significance. The rapid growth in users and wider coverage of mobile phone networks have made
this medium an important platform for extending banking services to customers. Bank has launched
Mobile Banking facility using which customer will be able to make Fund Transfer and also
information based services such as SMS Alerts, Balance Inquiry etc.
1. Basic mobile Phones without Internet Facility- Through NUUP based Platform
National unified USSD ( Unstructured Supplementary Service Data )platform based mobile
banking was launched .Customer can use mobile banking through their basic mobile phones
where INTERNET FACILITY is not required. NUP platform obviates the need for installing
application on the mobile phone and enabled users having basic mobile phones also to use
mobile Banking . The customer need not to have a GPRS or any other data connection on
their mobiles. They can use the services from any GSM mobile which has a calling capability
. Further NUUP does not require any JAVA of software to be downloaded on the mobile
NPCI has introduced the facility to direct menu code for OrientalBank of
Commerce is *99*53# in Mobile Banking under NUUP National Unified USSD(
Unstructured Suppelementy Service Data ) i.e. MOBILE BANKING FACILITY
WITHOUT INTERNET FACILITY
Per Day Transaction Limit is Rs 5000/- .
No Bank Charges levied for transactions . Only Mobile Service Providers SMS Charges is
applicable.
2. Smart Mobile Phones with Internet Facility Through Mobile App OBCmPay
Phones. Our Bank have rolled out the latest IT enabled services named OBCmPAY for the
customers of our Bank, which can be availed by them using their mobile phones.
RBI Guidelines
RBI has come up with its guidelines on Dt. 20.10.08 and further on 24.12.09, some of the
important guidelines are given below-
The services shall be restricted only to customers of banks
The guidelines issued by the Reserve Bank on "Know your Customers (KYC)", " Anti Money
laundering (AML)" and combating the Financing of Terrorism (CFT) from time to time would
be applicable to mobile based banking services also.
Customer complaints/grievances arising out of mobile banking facility would be covered
under the Banking ombudsman scheme 2006( as amended up to May 2007).
Banks are permitted to offer this service to their customers subject to a daily cap of Rs
50,000/- per customer for all types of transactions summed together.
Prerequisite: Any Customer of Bank having Java enabled Mobile phone irrespective of the Mobile
Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.
Services offered through Oriental Banks Mobile Banking Services
Account Balance Enquiry
Mini Account Statement
Intra Bank Fund Transfer
Mobile to Mobile
Mobile to Account
Inter Bank Fund Transfer through NEFT
ATM Locator
Branch Locator
Chq Status Inquiry
Chq stop payment
customers can make payment to various types of merchants :Mobile top-up / DTH top-up
(Oxi Cash etc.) ,Insurance premium payment for selected companies,Online shopping,Over-the-
counter payments , Fees payments to schools / colleges / universities ,Payment of Electricity Bills
and other Utility Bills payment,Travel & Ticketing for Railway (IRCTC ) and Air
Registration: The customers can avail OBCmPAY services by registering either by visiting the
Branch and submitting the form or by registering through ATM. Command is MOBNKRQ.
Customers can alternatively visit any ATM of Oriental Bank of Commerce and register themselves
using their debit card.
Immediate Payment Services (IMPS): NPCI (National Payments Corporation of India) has
launched the facility of IMPS (Immediate Payment services) for integrating Mobile Banking Services
being offered by various Banks through National Financial Switch(NFS) network.
This is 24x7 fund transfer facility for Inter Bank Fund transfer and credit to beneficiarys account
round the clock on all days
Customers not registered for Mobile Banking services can receive fund to their account through this
service by registering for SMS Alert application and retrieving MMID (Mobile Money Identifier)
by sending SMS MMID to the number 9223173923 Remitter.
Bank has launched another Mobile APP ORIENTAL SAATHI with following features
/Tabs have been provided in the App:-
1. Branch/ ATM Locator
2. Complaint / Suggestions
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3. EMI Calculator
4. Interest Rates
5. Alerts
6. Contact Us
SMS Alerts
SMS alerts are mandatorily for all card based / Net Banking transactions
The Banks SMS Alert Services are capable of enabling only interested customers and for those
Alerts as selected by them. Any Customer of Bank having Mobile phone irrespective of the Mobile
Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.
These services are of two types i.e. Push Based Alerts and Pull Based Alerts:
Push Based Services: These Services facilitate automatic transmission of SMS to the customers
chosen mobile number for various transactions in his account and cover following:-
Credit/ Debit alerts for amounts specific to individual customers.
Cheque clearing intimation alerts
Weekly balance alerts to all/ specific accounts
Transactions happened through various delivery channels viz. Internet Banking, ATM etc.
Pull Based Services: These services enable the customer to initiate request from his mobile to a
designated number for availing various facilities, which are as below:-
o Account Balance for one/multiple accounts, if any
o Mini Statements
For availing the above Pull Based services the customer has to send an SMS with the following key
words followed by the account number to Mobile number 09915622622.
Key Word Service
ACBAL Account Balance
STM Mini Statements
i. The Customer has to bear the normal outgoing SMS charges as per the tariff applicable to
his mobile connection. However, initially no Bank Charges are being levied for these
Services. The customers having valid ATM card can register their mobile numbers from any
of the Banks ATMs by using following menus:
Other Requests Services for IT Products SMS Alert Registration.
Missed Call Banking The below mentioned services being offered through Missed call to a pre-
defined number from customers registered Mobile number are also given:-
b) Mini Statement of last three transactions of recently transacted account on SMS. 08067205767
SMS Banking The services being offered through SMS to a pre-defined number from customers
registered Mobile number mentioned below are also incorporated in the App:-
b) Balance Enquiry by SMS: ACBAL <Space> <14 digit account no.> to 9915622622.
d) Cheque Stop Facility : STOP <Space> <14 digit account no.> <space> <cheque_no.> to
9915622622
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e) ATM Card Hotlisting : BLOCK <Space> <14 digit account no.><space><last 4 digits of card no.> to
9915622622
Process flow for enabling the customers forOBC SMS Alert Services: The command for
enabling SMS Alert is SMSRQ.
1. For new customers, the customer should have opted for SMS by ticking in the SMS Alert option
column in the account opening form O.F.-1B. For old customers, separate SMS Banking
Application form should be obtained.
2. Branch must ensure that the customer is fully authorised to make query or conduct transactions
on the accounts mentioned in application form. For this Mode Of Operation of the account
must be checked carefully.
3. Use SMSRQ Menu option of the Finacle, and enter the Mobile Number, Account number,
threshold limit for receiving alerts and other details of the Customer.
4. While keying in the Mobile Number please do not prefix any thing before the Mobile Number.
The system automatically prefixes91 after commiting of the record.
5. Press Y in front of various Options for enabling Customer for particular type of Alert.
6. To Commit the input, type C and press F4 key.
After committing the SMSRQ operation in FINACLE, the SMS Alerts Application shall automatically
start generating SMS for the type of transactions opted by the customer.
Circular No. HO/CS&P/7/2014-15/110 May 19 , 2014, All SMS alerts free except following security
alerts (charges, actual cost of alerts)
1.Instrument based or Cash transactions
2.Cheque book issue
3.Cheque presenting for clearing
4.Cheque bounce
These charges shall be levied by the system itself; therefore branches are not required to apply
these. However, branches shall ensure that charges, wherever applicable have been recovered. The
system shall calculate charges on monthly basis and will accumulate the same in the system for
recovery at quarter end; subject to the total SMS charges is >= `10 or on closure of account.
Beneficiary Addition/OTP
Internet Banking OTP Real Time
(One Time Password )
Mobile Banking Real Time
Cheque Book Real Time
Request/Cheque
Presented/Returned
Welcome message on Everyday
account opening
CC/OD accounts becoming Everyday
SMA
Promotional Message On Demand
On every NEFT/RTGS Real time Outward for each transaction and
Transaction inward as peer limit set in Finacle for
every V\Credit/Debit entry
Pull based services Real Time For availing various facilities which
includes
Account Balance for one/multiple
accounts, if any
Mini Statement
Stopping of Cheques
Blocking of ATM Cards
By sending the SMS from Registered
mobile no. to 9915622622 as under:
For Account Balance
ACBAL<SPACE><14 Digit Ac No>
For Mini Statement : STM<space><14
Digit A/c No>
For Stop Payment of cheques : STOP
<space><14 Digit A/c No ><SPACE>
<Cheque Number>
For Blocking ATM : Block <SPACE> 14
Digit A/c no<SPACE>last 4 digits of
card no.
DBT/DBTL related Real Time Whenever customers receive
messages DBT/DBTL related credit intheir
account, sms is sent.
Term Deposit A/c for Real Time SMS alert for opening and transaction
amount >=Rs. is sent to customer with term deposit
10000000.00 of amount >=Rs.10000000
Borrower /Promoter prior Real Time SMS alert is sent to the borrower /
to expiry of limit on promoter on the registered mobile
monthly basis for number prior to expiry of limit on
submitting the complete monthly basis sybmitting the complete
renewal papers renewal papers starting from last 3
months i.e. on 9th , 10th & 11th month
through the banking channel. Settlement in real time means payment transaction is not subjected
to any waiting period. The transactions are settled as soon as they are processed. Gross
settlement means the transaction is settled on one to one basis without bunching with any other
transaction.
The customer has to just fill up the application form to take advantage of economical, instant and
secure transfer through RTGS available across all branches of the Bank. The remitting customer has
to furnish the following information to the bank for effecting a RTGS remittance:
1. Amount to be remitted
2. His account number which is to be debited
3. Name of the beneficiary bank
4. The IFSC code of the receiving branch
5. Name of the beneficiary customer
6. Account number of the beneficiary customer
7. Sender to receiver information, if any
RTGS is used for both customer transactions and Inter Bank Transactions. The Operating session
for RTGS Transactions at Branches is given hereunder:
Customer Transaction (R41) - (8.00 hrs to 16.15 hrs.)
Inter-Bank Transaction (R42) (8.00 hrs to 19.30 Hrs)
(Regular days including Saturdays, except Second and Fourth Saturdays of the Month)
This cut-off time is for the messages to reach at RBI end. Therefore branches should
maintain a cushion of at least 20 to 30 minutes to avoid any rejections in message
transmission.
If the transaction fails for any reason, the amount will be credited back to the account
from which the transaction was made( Through Nodal Branch Fort Mumbai ). All RTGS
transactions are irrevocable once the account is debited and the Bank executes
transaction. Any revocation, after the payment order is executed by the bank, shall not
be binding on the Bank in the RTGS system.
Transaction Amount: The RTGS system is primarily for large value transactions. The minimum
amount to be remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions.
There is no limit on the number of transactions per day per Customer.
Charges: For Outgoing Transactions from Rs.2 to 5 lacs, Rs.25/- per transaction is levied and for
transaction above Rs. 5 Lacs, Rs.50/- per transaction is levied. Inward transactions are free.
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thresholed limit is 100000/- for NEFT. In case of any query, the branch can contact the dedicated
NEFT Centre set up at Service Branch, Mumbai through email neft@obc.co.in.
Batch Timings:
Starting from 8:00AM to 18.45 PM on all week days (Regular days including Saturdays, except
Second and Fourth Saturdays of the Month)
The messages sent before the above batch timings shall be included in the respective settlements
otherwise they shall be included in the next batch/day.
Note:
RTGS and NEFT is entered in Finacle using the Command HEPS. Detailed guidelines and
accounting Procedure is available on the Banks eCircular
Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely
identify the bank-branches in India. This is 11 digit code with first 4 characters representing the
banks code, the next character reserved as control character (Presently 0 appears in the fifth
position) and remaining 6 characters to identify the branch.
our circular No. HO/DIT/35/2008-2009/586 dated 09.02.2009 wherein it was informed that all
offices to ensure that all payments made by Bank to vendors, service providers and all external
agencies viz. Tax authority / Utility Payments etc. are invariably made through electronic modes.
Electronic Clearing System (ECS)
It is a mode of electronic funds transfer from one bank account to another bank account using the
services of a Clearing House. This is normally for bulk transfers from one account to many accounts
or vice-versa. This can be used both for making payments like distribution of dividend, interest,
salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to
utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan
installments of financial institutions/banks or regular investments of persons. It eliminates delays
due to postal / clearing as the amount gets directly credited to the respective customers account.
There are two types of ECS - ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit
to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for
crediting a particular institution.
Customers are required to fill up the prescribed form (No. E-1) indicating choices of periodicity of
such payment and expected number of credit and aggregate amount. Detailed procedure is given in
Clearing Operations Chapter.
OBC eTaxes
The Bank is providing this facility through which all types of direct taxes can be deposited by the
customers online through the net banking services from the comfort of their office or home. The
challan will be generated online and the same should be preserved for future reference and
records.
Procedure for e-payment:
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281,
ITNS 282 OR ITNS 283, as applicable.
2. Enter its PAN/TAN as applicable. There will be an online check on the validity of the
PAN/TAN entered.
3. If PAN/TAN is valid the taxpayer will be allowed to fill up other challan details like accounting
head under which payment is made, name & address of TAN and also select the Bank
through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer
confirms the data entered in the challan, it will be directed to the net banking site of the
bank.
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5. The tax payer will login to the net-banking site with the user-id/password provided by the
bank for net-banking purpose and enter payment details at the Bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment
details and Bank name through which e-payment has been made.
ADVANTAGE
1. Cash handling is better with POS.
2. Online transaction and direct Credit to the account.
3. Customer willing to pay through Card and if the merchant dont have the facility then
its a discouragement for customer.
4. Encouragement for customers to spend more as no physical cash is involved.
Western Union Money Transfer
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Our Bank has a tie up with Western Union Money Transfer through M/s Weizmann Forex Ltd.
(WFL). Western Union is a safe, reliable, legal and convenient way of transferring and receiving
money world wide (in India we can only receive inward remittance, as RBI does not allow
outward remittance). It is a legal method of receiving money in India as per RBI guidelines.
The Western Union Money Transfer system is a Net-based system, which provides on line
information about any money transfer affected from overseas location. The beneficiary can get
payment of the remittance after establishing the identity and other formalities from any of the
outlets of Western Union. Therefore, the transaction flow would depend upon the service offered by
the branch under the arrangement. The relevant stationery for handling remittances transactions
and other publicity material shall be provided at the designated branches by WFL. Weizman -
10481100136020
Online Tax Accounting System (OLTAS): OLTAS is a service provided by the bank for
acceptance of Income Tax and other direct taxes on behalf of Government. The customers
including Corporate, Individuals, Proprietorship concerns, Partnership firms, Trusts, Club, Society,
etc. can pay their tax liability through banks OLTAS window available through 145 select branches
across the country.
WHITE LABEL ATMs INTRODUCTION
What is white label ATMs?
White Label ATMs - or WLAs are ATMs which are set up and managed by private
operators, in support with Banks
The bank provides support only for cash management and settlement activities, in addition
to partnering for co-branding & promotions
As a result, Banks and Financial institutions are freed from the capital investments required to set
up much needed ATM infrastructure across the country
WLA Operators authorized by RBI
1.Tata Communications Payments solutions Limited, Mumbai
2. Prizm Payments Services Pvt. Ltd., Mumbai
3. Muthoot Finance Limited, Kochi
4. Vakrangee Limited, Mumbai
5. BTI Payments Pvt. Ltd., Bangalore
6. Srei Infrastructure Finance Limited, Kolkatta
7. Riddisiddhi Bullions Limited, Mumbai
Multiple approaches will be used for seeding LPG databases with bank accounts and Aadhaar
numbers. Oil Marketing Companies (OMCs) will collect Aadhaar numbers and Bank account details
at LPG distributors and through drop boxes at other locations. Bankers could also use the Pradhan
Mantri Jan Dhan Yojana methodology and data collected to assist in the seeding process.
Two modes of seeding of bank accounts in LPG database are available in this scheme:
(a) Bank accounts details captured by OMCs (Oil Marketing Companies) and bank account
information (account number + IFSC + name of account holder) will be sent to banks electronically
via NPCI and banks will confirm the veracity of the information as per their records. Thereafter
OMCs can seed that bank account information in the LPG database. (Option 1)
(b) LPG consumer can approach Bank directly. LPG consumer ID will be captured by bank at the
branches against the bank account and the pair of LPG consumer ID details and bank account
information will be then electronically sent back to OMCs by bank.(Option 2)
payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance
premium etc
National Automated Clearing House (NACH) is a centralised system, launched with an aim to
consolidate multiple ECS systems running across the country and provides a framework for the
harmonization of standard & practices and removes local barriers/inhibitors. NACH system will
provide a national footprint and is expected to cover the entire core banking enabled bank branches
spread across the geography of the country irrespective of the location of the bank branch
With the implementation of NACH system, NPCI intends to provide a single set of rules (operating
and business), open standards and best industry practices for electronic transactions which are
common across all the Participants, Service Providers and Users etc. NACH system also supports
Financial Inclusion measures initiated by Government, Government Agencies and Banks by
providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses
specific needs of the banks & corporates including a refined Mandate Management System (MMS)
and an online Dispute Management System (DMS) coupled with strong information exchange and
customised MIS capabilities.
The NACH system provides a robust, secure and scalable platform to the participants with both
transaction and file based transaction processing capabilities. It has best in class security features,
cost efficiency & payment performance (STP) coupled with multi-level data validation facility
accessible to all participants across the country
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Interest and or installments of principal remain overdue for a period of more than 90 days in
respect of a term loan.
The account remains out of order for a period of more than 90 days in respect of overdraft/cash
credit
The bill remains overdue for a period of more than 90 days in case of bill purchased and
discounted
Interest and /or installment of principal remains overdue for two harvest seasons but for a period
not exceeding two half year in the case of an advance granted for agriculture purpose, and
w.e.f.30.09.04 following further amendments issued by the Apex Bank
a. A loan granted for short duration crops will be treated as NPA, if the installment of principal or
interest thereon remains overdue for two crops seasons.
b. The loan granted for long duration crops will be treated as NPA, if the installment of principal
or interest thereon remains overdue for one crop season.
(Crop season for each crop would be determined by the State Level Bankers Committee in
each state)
Any amount to be received remains overdue for a period of more than 90 days in respect of other
accounts.
RBI to move over to charging of interest at monthly rest , w.e.f. 01.04.02
If realizable value of the security is less than 50% of what valued at the time of sanction or last
inspection, such NPA may be straightaway classified under doubtful category
If realizable value of the security is less than 10% of present o/s, such NPA may be straightaway
classified under loss category
Our bank has fixed Rs50 lakhs and above accounts as high value accounts
All the facilities granted by a bank to a borrower will have to be treated as NPA and not the
particular facility or part thereof which has become irregular.
The account which are running regular and are classified as standard shall not be categorized NPA
category even if any of the directors/partners are common in other accounts which have been
classified as NPA
Restructured/Reschedule accounts upgraded after one year subject to satisfactory performance
during the period.
NPA accounts shall be immediately upgraded on payment of irregular portion.
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PROVISIONING NORMS:
Rates of Provisioning for Non-Performing Assets and Existing Revised
Restructured Advances Category of Advances Rate Rate
(%) (%)
Sub- standard Advances:
Secured Exposures 10 15
Unsecured Exposures 20 25
Valuation of security for provisioning purpose: our Bank has decided to get the securities
verified/ valuation obtained once in 2.5 years as per RMD circular No. HO/RMD/46/2014-
15/507 dated 19.09.2014
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In this aspect, Bank has laid down list of signals of financial distress/ weakening in borrowal
accounts that need to be monitored closely for recognition of Financial Distress in the borrowal
accounts
1. SPECIAL ONE TIME SETTLEMENT SCHEME (OTS) FOR SETTLEMENT IN ELIGIBLE NPA ACCOUNTS
WITH O/S UPTO Rs.10.00 Lac
Eligibility:-
The Approved Scheme shall cover all NPA accounts in doubtful or loss category (whether non-
suit filed, suit filed or decreed accounts) with Principal outstanding upto Rs. 10.00 Lac (including
amount technically written off, ECGC/ DICGC/CGFT claim received) as on 31.12.2014 except those
cases where the settlement had been approved and the same was being honoured. Scheme valid
till 31.03.2016.
2. Settlement Scheme for Individual NPA Accounts under Direct Agriculture category :
Eligibility : All the NPA accounts where loan was given to individuals (other than Corporates,
Institutions, Partnership firms and trusts) which are under Direct Agriculture Category.
Minimum indicative settlement amount : amount of settlement will not be less than 85% of the
Principal amount.
3. Scheme for Recovery and Full Settlement in Small Size NPA Borrowal accounts
upto Rs.1.00 lac.
The main feature of this scheme is to settle the small sized NPA accounts upto Rs.1.00 lac which
were NPA on 31.03.2014 where there is no realixalbe security available to fall back upon. The
account is to be settled at whatever maximum amount. Scheme valid till 31.03.2016.
When the settlement in considered within one year from date of last failed auction then NPVRV
for property/ies shall be 85% of the last reserve price of the charged securities (failed auction).
However, valuation should not be more than one year old. Further, if the settlement is
considered after one year of date of failed auction, fresh valuation be obtained and NPVRV is
to be calculated in normal way i.e by discounting realisable value based on the expected
realization period
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CATEGORY DOMESTIC SCB AND FOREIGN FOREIGN BANK WITH LESS REMARKS
BANK WITH 20 OR MORE THAN 20 BRANCHES
BRANCHES
TOTAL PS SCB -40 % (MAR-16 ONWARD) 40% IN A PHASED MANNER OF ANBC OR CEO-BSI WHICHEVER
FB-40% (APR-13 TOMAR-18) (APR-13 TOMAR-18) HIGHER
HOUSING LOANS METROPOLITAN CENTERS (WITH POPULATION OF TEN LAC (COST OF DWELLING SHOULD NOT EXCEED
AND ABOVE) LOANS UPTO 28 LACS (PER FAMILY) RS.35 LACS)
OTHER CENTERS -LOANS UPTO 20 LACS (COST OF DWELLING SHOULD NOT EXCEED
RS.25 LACS)
HL (REPAIR & METRO CENTERS -LOANS UPTO 5 LACS
RENOVATION)
OTHER CENTERS -LOANS UPTO 2 LACS
BANK LOANS TO ANY GOVERNMENTAL AGENCY FOR
CONSTRUCTION OF DWELLING UNITS OR FOR SLUM
CLEARANCE AND REHABILITATION OF SLUM DWELLERS
SUBJECT TO A CEILING OF 10 LAKH PER DWELLING UNIT.
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RENEWABLE BANK LOANS UP TO A LIMIT OF RS. 15 CRORE TO FOR PURPOSES LIKE SOLAR BASED POWER
ENERGY BORROWERS. GENERATORS, BIOMASS BASED POWER
GENERATORS, WIND MILLS, MICRO-HYDEL
PLANTS AND FOR NON-CONVENTIONAL
ENERGY BASED PUBLIC UTILITIES VIZ. STREET
LIGHTING SYSTEMS, AND REMOTE VILLAGE
ELECTRIFICATION
OD under PMJDY upto Rs. 5000 Income <= 1 lacs in Rural Areas
Income<=1.60 lacs in Other Areas
Loans to State SC/ST Corporations * for the specific purpose of
purchase and supply of inputs
and/or the marketing of the
outputs of the beneficiaries of
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these organizations
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Salient Features
Loans to all Non-farm enterprises in Manufacturing, Trading and Services (Mudra) uto 10
lacs granted on or after 08.04.2015 shall be covered under PMMY
For Composite Loans upto Rs.1.00 Lakh:- where OD is max. 20% (i.e. Rs. 20000)
Only to literate Individuals and Proprietorship firms and not to illerates and to Joint Borrowers
Term Loan - TL701 (TL GENERAL-EI)
Over draft - OD505 (OD MUDRA CARD SCHEME in OD505 scheme )
Mudra card is personalized Debit card which can be used at ATM/POS/E-commerce
Following activities in Retail / other segments shall also be covered under PMMY
(It will replace the existing Scheme Financing MID Corporate Scheme HO/CAD 187
30.06.12 amended HO/CAD 798 dated 06.01.2015
Eligible :-Prop, Part., LL P, Pvt/Pub Ltd Companies
Existing as well as new customers
Internal Credit Rating
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Credit Report from any of the CIBIL, EQUIFAX, EXPERIAN etc should be within benchmark.
Quantum of exposure upto 50 crore.
Appraisal/ Assessment- As per loan policy of the Bank for WC and TL
TEV study as applicable.
Mid Corporate- Limits 5 Crore to 50 crore
Large Corporate:- advances >50 Crore
Acceptable Financial Ratios:-
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METRO 15.00
Type of facilities
(a) Term Loan-assessment of TL shall be as per policy of the Bank. In case of construction of
building ceiling limit is max 50% centre wise.
(b) WC Limit is upto 10% of annual sale or gross income, subject to 10% of ceiling limit of centre in
case of borrower requiring both TL & WC, in case only WC limit -20% of ceiling limit centre
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Rate of interest:-
SECURITY COVERAGE RATE OF INTERST
Security Coverage:-
i. Loans upto 10 lacs NIL (To be covered under CGTMSE)
ii. >10 lacs to 100 lacs:- Minimum 50% of security coverage
iii. > 1.00 crore:- 100% coverage (including collateral)
Deviation Authority:-HLCC-ED
External Rating-for limits 5 crore and above, within 3 months of sanction else penal RoI shall be
charged
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Benefits in case of Rs. 30000 to Primary A/c Holder. If Primary Holder Death due to any NIL
Death ineligible, secondary holder eligible for benefits reason;- 2 Lacs
(Death due to any reason)
Benefits in case of NIL NIL Death or
Accident, disability (But 1.00 lacs inbuilt accidental insurance cover is permanent
provided with the RuPAY debit card-operations in 90 disability due to
days required wef 25.11.15 earlier 45 days) accident 2 lacs
Partial disability 1
lac
Insurance Agency Life insurance by LIC of India Ltd Life insurance by LIC Public Sector
Accidental Insurance by National Ins Co Ltd of India Ltd General Insurance
Companies or
willing private
insurance
Companies
Exit from the Scheme 1. On death 1. Automatically if 1. Automatically if
2. On attaining 60 years age premium not paid premium not
3. On closure of PMJDY account 2. On death paid
4. Government closes the scheme 2. On death
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The borrower should also be offered credit facilities for investment purpose during validity of
KCC (5 years), the requirement would be met through OKGC based on either proposed
investment plan of the borrower or as per existing norms of OKGC
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Fixation of Limit
a) For crop production:
The assessment will be done on the basis of crops grown in a year and requirement for
Rabi, Kharif, Zaid & horticulture crops shall be added to decide the loan limit as per scale of
finance fixed by the district level technical committee from time to time plus up to 15%
variation, if required, as allowed in general guidelines of agriculture advances.
Supply of Scale of Finance by the Regional Offices: The Regional Office will collect the
revised scale of finance prescribed by the respective District Level Technical Committee
for current year for calculation of credit requirement for raising crops & the same shall be
circulated amongst branches. It will be obligatory for branches to calculate the credit
requirement for raising crops based on the scale of finance with deviation as permitted
above
b) Assessment of WC needs for animals
b)Credit assessment will depend upon the number of live stock and average daily financial
requirement per live stock, subject to the maximum amount per annum as under:
A. Milch Animals i) Cross Breed / Exotic Breeds @ Rs 12000/- per animal ii) Local Breed @
Rs 10000/- per animal
B. Drought Animals @ Rs 5000/- per animal (Bullock/Camel/He-buffalo etc)
C. Small Animals @ Rs 2000/- per animal (Goat/Sheep/pigs etc)
c) For post harvest activities Activities like sorting, grading, packing, storing,
transportation charges for agriculture & allied activities produce up to Maximum of
Rs.20,000/- per acre.
For repair and maintenance
For repairs & Maintenance of Agriculture Equipments/machineries etc up to 25 % of crop
production & other allied activities loan {(a) + (b) + (c)}. e) Consumption need: Up to 30%
of the loan limit in (a) + (b) + (c) + (d) above, subject to a maximum of Rs 100000/- may
be allowed.
Maximum Permissible limit under the scheme shall be arrived as under:
A) Working Capital requirement as per process note (total of (a)+(b)+(c)+(d)+(e)).
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B) 100% of value of agriculture land offered as security. The valuation of land will be done
on the basis of current year price to be obtained from accredited revenue official/DLC(District
level committee)
C) Total expected annual income from all sources as per application.
Maximum permissible limit in OGC shall be lowest of A, B, C.
OKGC
Maximum loan permissible under OKGC shall be as under:
A) 10 times of annual farm income
B) 100% of the value of the land mortgaged, C) Loan limit of Rs.25.00 lac
Maximum permissible limit in OKGC shall be lowest of A, B, C. Farmer may avail any
number of investment loans under the OKGC.
Calculation of MPBF OGC plus OKGC
a) First year limit for crop cultivation purpose arrived at as per above guidelines. A flexi credit
limit of Rs 10000 to Rs 50000 be provided to marginal farmers for investment purpose
irrespective of value of land
PLUS
b) 10% of the limit towards cost escalation / increase in scale of finance for every successive
year (2nd, 3rd, 4th and 5th year) The aggregate limit shall be fixed at amount that works out
for the 5th year (With 10% annual increase). D.P shall be enhanced by 10% every year
subject to satisfactory operation in the account.
PLUS
c) Estimated investment requirement for 5 years by way of OKGC. At the time of pre
sanction interview of the applicant, the Branch official will ascertain plan/requirement for
investment for next 5 years and record the same on process note. Viability and repayment
capacity of the applicant will be worked out for each term loan he intends to avail.
Wherever, a farmer has investment credit requirement based on estimation during the
validity of Working capital, the facility may be granted by way of OKGC. Documents shall be
obtained for the aggregate amount of limit fixed.
Term loans for investments towards a) Land development, b) Minor irrigation, c) Purchase of
farm equipments d) Allied agricultural activities, e) Any other direct agricultural activities.
The Branches may fix the quantum of credit for term and working capital limit for agricultural
and allied activities, etc., based on the current unit cost of the assets proposed to be
acquired by the farmer, the allied activities, already being undertaken on the farm, branchs
assessment on repayment capacity vis-a-vis total loan burden devolving on the farmer,
including existing loan obligations
The long term loan limit is based on the proposed investments during the five year period
and the Branchs perception on the repaying capacity of the farmer. Assessment of loan
amount for Term Loan shall be fixed as prescribed for OKGC.
Maximum Permissible Limit: The short term loan limit arrived for the 5th year plus the
estimated long term loan requirement will be the Maximum Permissible Bank Finance
(MPBF) and treated as the (OKGC) Limit.
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CIRCULAR No. HO/RD&PS/ 15 /2013-14/ 137 Date: 04.06.2013 it is clarified that while assessing
the limit, except cost of cultivation, all other components i.e. 15% deviation, working capital needs for
livestock/ allied activities, for post harvest activities, for repairs & maintenance are not mandatory for
calculation of MPBF. These components may be included in MPBF depending upon actual need of the
farmers and their repaying capacity
Circular HO/RD&PS/23-15-16 dated 09.05.2015-where the borrower is not able to repay the entire
dues, he should be pursued to repay the overdue interest & upon serving the overdue interest account
should be renewed/ upgraded, allowing further operations in the account.
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LEGAL ASPECTS
As per which provision of Securitization Act 2002, application can be filed before collector/ DM for
getting physical possession of the Secured Asset - Section 14 of the Act
As per which provision in Securitization Act 2002, Appeal/Application can be filed before DRT by
the Borrower - Section 17 of the Act (within 45 days)
As per which provision in Securitization Act 2002, Second appeal can be filed by the Borrower/
Guarantor to DRAT - Section 18 of the Act (within 30 days)
Limitation for filing execution Petition after obtaining Decree - 12 years
Maximum & Minimum members in a Pvt. Ltd. Company - 50 & 2
Minimum members in a Public Ltd. Company - 7
Maximum number of members in a partnership firm if it is a Banking company - 10
Maximum number of members in a partnership firm if it is not a Banking company - 20
Minimum directors in a Pvt. Ltd. Company - 2
Minimum directors in a Public Ltd. Company - 3
Time limit for having the first statutory meeting of a company after the incorporation of a
company - within 6 months
Pecuniary jurisdiction of DRT - 10 lac & above
Maximum court fee to be paid in DRT - 1.50 lac
Minimum court fee to be paid in DRT - 12,000/- up to Rs10 lacs, exceed every 1 lac Rs1000/-
As per which Act DRT is constituted - Recovery of Debts due to Banks and financial Institutions
Act 1993
Which is the provision for filing appeal to DRAT against the order of the presiding officer in DRT -
Section 20 (within 45 days)
Which is the provision for filing appeal to the presiding officer in DRT against the order of the
Recovery Officer in DRT - Section 30 (within 30 days)
Within How many days, appeal should be filed before presiding officer in DRT against the order of
the Registrar of DRT - within 15 days
How many days time should be given in the demand notice sent to the Borrower as per Section
13 (2) of Securitization Act 2002 - 60 days
Banking ombudsman scheme is introduced in the year - 1995
Consumer Protection Act introduced in the year - 1986
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How much time will be the maximum gap between two Annual General Meeting of a Company -
15 months
Within How many days, application for creating charges to be filed before Registrar of Companies
- 30 days (Section 125 of Companies Act 1956)
As per which provision in Indian Limitation Act 1963, Limitation is extended for further 3 years by
the obtention of Balance Confirmation Letter - Section 18
As per which decision of Supreme Court, it is made clear that simultaneous action under
securitization act along with DRT/ Suit Filed with any other court can be taken - Transcore v/s
Union of India
Pecuniary Limit for Filing RRC - below 10 lac
Limitation for filing mortgage suit before Court- 12 years
Limitation for filing money suit before Court - 3 years
Pecuniary Jurisdiction of Banking Ombudsman - 10 lacs
What is the prescribed time limit within which consumer Forum should dispose the Compliant - 3
months
What is the prescribed time limit within which DRT should dispose the Original Application - 6
months
What is the prescribed time limit within which Banking Ombudsman should dispose the Compliant
- 6 months
Limitation for filing compliant with Banking Ombudsman - 1 year
Limitation for filing compliant with Consumer Forum - 2 years
Pecuniary Jurisdiction of District Consumer Forum - 20 lacs
Pecuniary Jurisdiction of State Commission (Consumer) - Between 20 lacs and One Crore
Pecuniary Jurisdiction of National Commission (Consumer) - above 1 Crore
Maximum period of imprisonment can be given by a Court under section 138 of NI Act 1881 - 2
Years
Maximum period of civil imprisonment can be given by a Civil Court in the execution of a decree -
3 months
Action under section 138 of NI Act Send 15 days legal notice within 30 days of the date of
dishonor of cheque.
SARFEASI ACT
The act has two parts, first part stands for securitisation and reconstruction of financial assets and
other part is enforcement of security interest.
Eligible assets under the act may be enforced without intervention of court or tribunal with the
laid down procedure under the act.
If party failed to deposit the amount, possession of charged/ secured assets is obtained from the
bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is
mandatory.
No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the
secured creditors representing not less than 3/4th in value of the amount outstanding.
If borrower restricts the bank to take physical possession of secured assets, petition is filed under
section 14 of the act to the CMM/DM praying to get the physical possession of the assets.
No action is taken before 45 days of taking possession, as 45 days time is given under the act to
appeal against the action of the bank.
Appeal with DRT can be filed by the party only after taking possession of the assets under section
17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil
court does not jurisdiction to entertain any suit under provision of the act.
Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed
by 30 days publication of sale through auction/ tender notice of these assets in the vernacular
newspaper and national daily.
60 days notice is served under 13(2) of SARFEASI
Action is taken for the dues exceed Rs1 lac
Agriculture Land and lease hold property can not be enforced
Appeal is made within 45 days of possession of secured asset
30 days notice is served indicating there in the sale of asset
30 days publication is made for auction of secured assets
Possession of property is obtained under 13(4) SARFEASI Act
Publication of possession of property - within 7 days from the date of possession.
SERFEASI ACT 2002 does not apply to the following assets
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For fixation of reserve price of charged securities (primary/ collateral) under SARFAESI Act,
valuation of properties should not be more than one year old from the date of fixing of
auction. If the valuation available is more than one year old, fresh valuation be obtained.
Further if fresh valuation is obtained, the reserve price for the next e-auction will be equivalent
to the new realisable value of the properties and in case of failure of auction, Regional Head is
empowered to reduce the reserve price upto 20% of latest realisable value. This can be done
even if he has reduced the reserve price on the basis of old valuation.
LOK ADALAT
Lokadalat has been constituted under Legal Services Act, 1987. No legal fee is charged for
approaching Lokadalat.
All NPA a/cs including suit filed and decreed having outstanding balance uptoRs.20.00 lacs can be
referred to the Lokadalat. All legal disputes pending in civil, criminal, revenue courts or a tribunal
can be taken to lokadalat for amicable settlement except criminal cases which are non-
compoundable.
Accounts can be settled by the bank as per the mutual consent of the parties.
Award passed by the Lokadalat is a deemed decree of the court, which can be executed in case of
default by the borrowers / judgement debtor through court of competent jurisdication.
National Lok Adalat was held on 13-02-16.
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In order to further simplify the settlement of claims and to help the legal heirs of the deceased
account holders with credit balance ofRs.25000/- and below, the following sub-threshold limit has
been approved
Further, following clarifications are being given for settling the deceased depositors claim cases
In respect of claims on the basis of court orders viz. Probate/ Succession Certificate, the same can
be settled by branch Incumbents upto a claim amount of Rs.50.00 lac only and by the RLCC (RH)
for claim amount above Rs.50.00 lac.
* Claims by nominees in respect of the accounts where a valid nomination is registered as per
Branch records, shall be disposed of at Branch level, in accordance with nomination; irrespective of
the amount involved.
* It is clarified that the branch incumbents are vested with the powers to settle the cases of class I
legal heirs of male deceased depositor as well as legal heirs as per Section 15 (a) in case of female
deceased depositors in accordance with Hindu Succession Act 1956, whether they are Hindu, Sikh,
Jain or Buddhist.. The claims other than above and other claims relating to Muslim & other
communities and claims by guardian other than natural guardian shall be dealt at Regional office
level even when the claim amount falls within Branch powers. Further claims in respect of Either or
Survivor & Former or Survivor accounts shall be disposed of at branch level as per instruction
* The indemnity bond is to be obtained from all the legal heirs of the deceased depositor with two
financial sound sureties. The net worth of the sureties individually should be equal to or more than
the amount of claim.
* Before processing the deceased claim case, all the claim papers submitted by claimants to the
branch, be got vetted by the legal retainer, if the concerned branch is situated in the city where
Regional office is situated and by the panel advocate if the concerned branch is situated in other
cities on a lump sum fee ofRs.500.00 only
The law will also apply to all non-residents in respect of payments/remittances liable to TDS.
Further, Certificate of deduction of tax at lower rate or no deduction (under section 197 of the
Income Tax Act,1961) shall not be issued by the concerned Income Tax Authority to the party i.e.,
to whom eligible payment is made by the bank, unless the application of the party bears PAN. In
addition, declaration by the depositor in "Form 15 G/Form 15H"(under section 197A of the Income
Tax Act, 1961) shall not be valid unless it bears the PAN of the depositor.
Keeping in view the above amendments, the offices are advised, as under:
(i) Where the payment to the party is liable to TDS and the party has not quoted PAN, to
deduct TDS at higher of the prescribed rate or 20%. The basic exemption limit and the
prescribed TDS rates in force are reproduced below for ready reference.
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October 1,2009)
It is clarified that in the case of payments to persons resident outside India which are liable
for TDS i.e., other than Non Resident (External) Account and FCNR deposits, if PAN is not
quoted by the party, TDS at the afore-said rates is to be deducted as these rates are higher
than 20%.
(ii) Not to accept "Form 15 G/Form 15H" from any of the depositors unless PAN of
the depositor is quoted on the respective forms.
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(a) SALARY
TIME LIMIT FOR TIME LIMIT FOR ISSUE OF TDS CERTIFICATE IN
DEPOSIT OF TAX BY THE TDS CERTIFICATE TO THE
BANK EMPLOYEE
For Salary credited/Paid in
the month of March
- On or before 30th April
By 31st May of the financial
For salary credited/ paid
year immediately following the Revised FORM No. 16
other than the month of
financial year in which the salary to be issued Annually.
March
was paid and tax deducted.
Within 7 days from the
end of the month in which
tax is deducted
- On or before 30th April Within 15 days from the Revised FORM No. 16A
due date for furnishing to be issued Quarterly.
Other cases i.e., Amount statement of deduction of
credited/paid other than in the tax i.e., TDS Return (Refer
month of March Item 2 for Due date) .
The due date for furnishing TDS return for the quarter ending March has been modified to 15 th
May (from earlier June).
Accordingly, the revised due dates for e-filing the TDS returns are:
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a. Form 15G/15H - Rs.100/- every day during which the default continues.
b. Incorrect information in TDS statement Rs.10000/- to Rs.1.00
c. Non furnishing /delay in furnishing form 60 Rs.10,000/-
d. Delay in furnishing TDS return Rs.200/- per day from the due date of furnishing of TDS return.
However the total amt. of penalty shall not exceed the total amt. of tax deductible during the period
for which TDS return is delayed. In addition to the above penalty branch/office will also be liable to
pay a penalty ranging from 10000/- to Rs.1.00 Lac.
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Capital adequacy ratio (CAR): A bank's capital ratio is the ratio of qualifying capital to risk
adjusted (or weighted) assets. The RBI has set the minimum capital adequacy ratio at 9% for all
banks. A ratio below the minimum indicates that the bank is not adequately capitalized to expand
its operations. The ratio ensures that the bank do not expand their business without having
adequate capital.
CAR = Tier I capital + Tier II capital / Risk weighted assets
It must be noted that it would be difficult for an investor to calculate this ratio as banks do not
disclose the details required for calculating the denominator (risk weighted average) of this ratio in
detail. As such, banks provide their CAR from time to time.
Tier I Capital funds include paid-up equity capital, statutory and capital reserves, and perpetual
debt instruments eligible for inclusion in Tier I capital. Tier II capital is the secondary bank capital
which includes items such as undisclosed reserves, general loss reserves, subordinated term debt,
amongst others.
Non-performing asset (NPA) ratio: The net NPA to loans (advances) ratio is used as a measure
of the overall quality of the bank's loan book. An NPA are those assets for which interest is overdue
for more than 90 days (or 3 months).
Net NPAs are calculated by reducing cumulative balance of provisions outstanding at a period end
from gross NPAs. Higher ratio reflects rising bad quality of loans.
NPA ratio = Net non-performing assets / Loans given
Provision coverage ratio: The key relationship in analysing asset quality of the bank is between
the cumulative provision balances of the bank as on a particular date to gross NPAs. It is a measure
that indicates the extent to which the bank has provided against the troubled part of its loan
portfolio. A high ratio suggests that additional provisions to be made by the bank in the coming
years would be relatively low (if gross non-performing assets do not rise at a faster clip).
Provision coverage ratio = Cumulative provisions / Gross NPAs
Return on assets (ROA): Returns on asset ratio is the net income (profits) generated by the bank
on its total assets (including fixed assets). The higher the proportion of average earnings assets,
the better would be the resulting returns on total assets. Similarly, ROE (returns on equity)
indicates returns earned by the bank on its total net worth.
ROA = Net profits / Avg. total assets
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EFFECTS OF NON-REGISTRATION:-
1. An unregistered firm cannot enforce its rights against the third parties.
2. The partners of an unregistered firm cannot sue its fellow partners or the firm for the
enforcement of their rights.
3. Partners of the unregistered firm cannot be sued by the firm for exercising its claims.
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4. Un registration of a firm does not affect the rights of the third party to sue the firm for the
recovery of dues.
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The ROC will give the certificate of incorporation after the required documents are presented along
with the requisite registration fee, which is scaled according to the share capital of the company, as
stated in its Memorandum. A private company can commence business on receipt of its certificate
of incorporation.
A public company has the option of inviting the public for subscription to its share capital.
Accordingly, the company has to issue a prospectus, which provides information about the company
to potential investors. The Companies Act specifies the information to be contained in the
prospectus.
The prospectus has to be filed with the ROC before it can be issued to the public. In case the
company decides not to approach the public for the necessary capital and obtains it privately, it can
file a "Statement in Lieu of Prospectus" with the ROC.
On fulfillment of these requirements, the ROC issues a Certificate of Commencement of Business to
the public company. The company can commence business immediately after it receives this
certificate.
Certificate of Incorporation
After the duly stamped Memorandum of Association and Articles of Association, documents and
forms are filed and the filing fees are paid, the ROC scrutinizes the documents and, if necessary,
instructs the authorised person to make necessary corrections. Thereafter, a Certificate of
Incorporation is issued by the ROC, from which date the company comes in to existence. It takes
one to two weeks from the date of filing Memorandum of Association and Articles of Association to
receive a Certificate of Incorporation. Although a private company can commence business
immediately after receiving the certificate of incorporation, a public company cannot do so until it
obtains a Certificate of Commencement of Business from the ROC.
after its incorporation, whereas a Private Company cannot start its business until a Certificate to
commencement of business is issued to it.
What is Inflation?
Inflation is defined as an increase in the price of bunch of Goods and services that projects the
Indian economy. An increase in inflation figures occurs when there is an increase in the average
level of prices in Goods and services. Inflation happens when there are less Goods and more
buyers, this will result in increase in the price of Goods, since there is more demand and less supply
of the goods.
What is a Reverse Repo Rate? How will it affect the Bank Loan interest rates
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.
Banks are always happy to lend money to RBI since their money are in safe hands with a good
interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to
this attractive interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate
our banks adjust their lending or investment rates for common man.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions. The bank rate
signals the central banks long-term outlook on interest rates. If the bank rate moves up, long-term
interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower
rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate , the
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interest that a bank pays for borrowing money (banks borrow money either from each other or
from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a
profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement.
Since banks need funds on a daily basis, they lend to and borrow from other banks according to
their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to
keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is
totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby,
inflation by tying their hands in lending money
SLR
BESIDES THE CRR, BANKS ARE REQUIRED TO INVEST A PORTION OF THEIR DEPOSITS IN GOVERNMENT SECURITIES
AS A PART OF THEIR STATUTORY LIQUIDITY RATIO (SLR) REQUIREMENTS. WHAT SLR DOES IS AGAIN
RESTRICT THE BANKS LEVERAGE IN PUMPING MORE MONEY INTO THE ECONOMY.
If you are appointed as Branch Manager in the branch which is worst performing, what steps would
you initiate to turn around the Branch?
The Branch Manager shall adopt strategies depending on the specific problems pertaining to that Branch
and the environment. However, some general strategies could be:
Banks profitability basically depends on the spread between cost of deposits and yield on advances
CASA deposits should be improved to reduce cost of deposits
To increase high-value advances and improve yield on advances
To improve non-interest income through cross selling and others
To plug income leakage
Reducing overhead costs that can be cut
To concentrate on NPA/AUC recovery and collect un-debited interest and amounts from interest
not collected account
To speed up legal actions under SARFAESI Act and other means
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What is CIBIL?
CIBIL stands for Credit Information Bureau (India) Limited. CIBIL was incorporated in 2000 with an aim to
summarize and share credit reports among its members Its original promoters were State Bank of India,
HDFC, Dun & Bradstreet and Trans Union. Now, the shareholding is more diversified with several more
stakeholders, like ICICI Bank, BOB, IOB, UBI, PNB, Hong Kong Bank etc, included. CIBIL provides credit
information on commercial and individual borrowers to lenders, like, banks, NBFCs and others. The
information is provided for a fee. In credit markets, data sharing is very important between lenders and borrowers.
The members of CIBIL are mostly banks, non banking financial institutions and credit card
companies. The ultimate aim of this CIBIL is to help its members to evaluate the risk involved in a
particular loan through its credit score and CIR.
allowed banks to use the services of well-established NGOs, SHGs, MFIs, Post Offices, and others as
intermediaries. With the help of the intermediaries, banks can extend their services through the use
of Banking Correspondent model.
In September 2010, RBI allowed banks to appoint companies as Business Correspondents who can
sell banking products to vast sections of rural and semi-urban population. With this measure,
companies like, HUL, ITC and Bharti Airtel, can be appointed as BCs by banks an in turn these
companies will provide banking services to the people.
RBI has introduced a new system of loan pricing for Indian Banks. What is that system
called?
With effect from July 1, 2010, RBI introduced a new system of loan pricing called Base Rate
System. All commercial banks have adopted the new system.
1) The borrower has defaulted even though he/she has the capacity to honor the payments
2) The borrower has defaulted on the payments and has not utilized the funds for the purpose
they were sanctioned and diverted the funds
3) The borrower has defaulted on the payments and has siphoned off the funds and the funds are
not available in any other asset form
Sources: various websites, like, RBI, SEBI, newspapers, etc. Disclaimer: The above is for
information purpose. Though every care has beentaken to provide authentic information on the
above questions, readers have todo their own diligence and the author is not responsible for any
mistakes. However, if you find any mistakes, please bring it to my notice.
Q What is KYC ?
KYC is an Acronym for Know Your Customer, a term that is used to describe the process of
customer identification, verification of the social and financial credentials of the customers. KYC
enables the Bank to know and understand its customers and their financial dealings so as to serve
them better, setting up of Threshold Limit and prudently mitigate the risks of Money Laundering
and Financing of Terrorism.
KYC has two components- Identity and Address. While identity remains the same, the address may
change and hence the Bank is required to periodically update its records.
Bank need to obtain sufficient information, whether regular or occasional, necessary to establish, to
its satisfaction, the identity of each new customer, and the purpose and nature of the intended
Banking relationship.
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KYC procedures enable Bank to know and understand the customers and their financial dealings
better which in turn help us to manage and circumvent the risks of Money Laundering and
Financing of Terrorism prudently.
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After the initial grouping, the second level of categorization is done on the basis of the level of
Money Laundering (ML) risks that the Bank is exposed to by a Customer. This depends on:
Type of the customer (individual or an entity)
1. Social and economic status
2. Nature of business
3. Type of product / service availed by the
customer
4. Country where the Customer is domiciled.
1 Low C1
2 Medium C2
3 High C3
4 Very High C4
C-4 Customers: Intensive due diligence measures should be applied and very detailed profile
should be prepared.
Q What is the most important step by which a customer becomes the customer of
OBC?
The risk category of the prospective customer should be identified BEFORE the interview so that the
interviewing officer should know
the type of profile (brief or detailed) required to be prepared
extent of due diligence required
financial information to be collected
No account should be opened without carrying out the interview.
Q Can the bank close an account if the account holder does not provide the necessary
information/ documents to fulfil the banks norms?
If an account holder does not provide the bank with the information bank require bank may
consider closing the account or terminating the banking/ business relationship after due notice,
explaining the reasons for taking such a decision.
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Case for termination of customer relationship shall be prepared only on account of non-
cooperation by the customer or non-reliability of the documents / information furnished to
the Bank.
The Branch shall prepare case on the prescribed format and send the same to the
concerned Regional Office alongwith recommendations for closure of the account duly
signed by the Branch Incumbent.
The Regional Head only shall decide about the termination of customer relationship i.e. after
going through the details of each case and his decision shall be guided by the severity of
each case, risk category and compliance of the KYC Policy.
The Regional Office shall convey its decision to the branch and in case of termination of
customer relationship the account shall be closed only after due notice of 15 to 30 days has
been served by the Regional Office to the customer explaining therein the reason of such
decision.
In case the customer turns up within the notice period (i.e. before closure of his account)
and complies with the KYC Policy of the Bank, the decision to continue customer relationship
with that customer shall also be taken by the Regional Head only.
Q What Documents are acceptable for establishing identity of a person under KYC ?
Documents for establishing identity of a person may include:
Valid Passport
Valid PAN Card
Valid Driving License
Valid Voters ID Card
Letter issued by UIDAI containing details of name, address and Aadhaar number
Job card issued by NREGA duly signed by an officer of the State Government.
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The customer profiles all the beneficial owners as well as of authorized signatories be
prepared on OF-5A or OF-1A as applicable
In Customer Identification Form (OF 5A OF-1A), add the words Beneficial Owner with
Authorized signatory so as to read as
Customer/Authorized signatory/Beneficial Owners Details.
Obtain KYC documents, photograph of all beneficial owners/authorized signatories.
Prepare Cust ID of all the beneficial owners as well as of authorized signatories.
While opening the account of a legal person/entity, in Finacle, the profiles of all beneficial
owners/authorized signatories should be attached as associated party details. (A details)
Following three codes have been added in designation code in the system in field
Designation code i.e
Authorized signatory
Beneficial owner
Authorized signatory & beneficial owner
Ensure to assign appropriate designation code to each profile. Assigning a correct code is
mandatory.
However, if a bank has reason to believe that a customer is intentionally structuring a transaction
into a series of transactions below the threshold of Rs.50,000/- the bank should verify identity and
address of the customer and also consider filing a suspicious transaction report (STR) to FIU-IND.
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In case of cash transactions below Rs.50,000/- carried out by a non-account based customer that is
walk-in-customer, full details of the customer, including complete address, telephone number etc,
should necessarily be obtained .
NOTE: In terms of Clause (b) (ii) of sub-Rule (1) of Rule 9 of the PML Rules, 2005 banks and
financial institutions are required to verify the identity of the customers for all international money
transfer operations
Q Once KYC requirement are complied with while opening the account, can the Bank
ask for KYC compliance from the account holder again?
Yes, To ensure that the latest details about the customer are available, branches are advised to
periodically update the customer identification (including photograph/s) after the account is opened.
Full KYC exercise will be required to done at least every TWO years for high Risk Individuals and
entities. (C-3 and C-4)
Full KYC exercise will be required to done at least every TEN years for low Risk Individuals and
entities. (C-1)(Earlier 5 years). But Every three years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc) will be
required
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Full KYC exercise will be required to done at least every EIGHT years for Medium Risk Individuals
and entities.(C-2) (Earlier 2 years) But Every two years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc. will be
required
Fresh Photographs will be required to be obtained from minor customers on becoming major.
The PMLA also requires banks to maintain records for a period of 10 years of the following:
1. Record of identity of clients
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Q What is CTR?
CTR is Cash Transaction report. This report contains:
All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
Q What is STR?
STR is Suspicious Transaction report. This report contains:
All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated. All 61
alerts are to be implemented by March 2014 in Phases.
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any
transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
Q What is CCR?
CCR is Counterfeit Currency Reports. This report contains:
All cash transactions where forged or counterfeit currency notes or bank notes have been
used as genuine or where forgery of a valuable security or a document has taken place
facilitating the transactions.
India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks
attractive to the world for FDI. Even Government of India, has been trying hard to do away with
the FDI caps for majority of the sectors, but there are still critical areas like retailing and insurance
where there is lot of opposition from local Indians / Indian companies.
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Oriental Bank of Commerce signed an agreement with The Oriental Insurance Company Ltd.
tolaunch "ORIENTAL BANK MEDICLAIM" Policy on 3rd Oct. 2011. The Product is designed
exclusively for the A/c Holders of OBC and is available in all OBC Branches across the country.
SALIENT FETURES:
A family floater scheme covering 4 family members (Proposer + Spouse + 2 dependent Children
aged 3 months to 26 years).
Age group covered - 3 months to 79 years.
No Pre - medical examination required, only declaration.
Cash less facility available at network hospitals.
Cover available for Minimum Sum Insured of Rs.1 Lac, up to Rs. 5 Lac, in multiple of Rs.1.00 Lac.
The Premium Structure (Inclusive of Service Tax) is as under:
Sum-Insured Premium(Including S. Tax)
Rs. 1 Lac Rs 1783
Rs. 2 Lac Rs 3384
Rs. 3 Lac Rs 4709
Rs. 4 Lac Rs 5890
Rs. 5 Lac Rs 6960
Income Tax benefit under 80D of the IT act.
Basel-III (Some features)
Guidelines on the implementation of BASEL III Capital Regulations were released by the Reserve
Bank of India (RBI) on May 2, 2012. Implementation of these guidelines will begin April 1, 2013 and
the process will be completed by March 31, 2018.
Highlights
Banks required to maintain a minimum 5.5% in common equity (as against the current
3.6%) by March 31, 2015
Banks to create a capital conservation buffer (consisting of common equity) of 2.5% by
March 31, 2018
Banks to maintain a minimum overall capital adequacy of 11.5% (against the current 9%)
by March 31, 2018
Risk-based capital ratios to be supplemented with a leverage ratio of 4.5% during parallel
run
The countrys first pan-India national womens bank launched in Mumbai. Bharatiya Mahila Bank
has been set up with an initial paid-up of Rs 1,000 crore. Led by Usha Ananthasubramanian, all the
eight on the board of directors of the bank are women. The bank aims to increase its branch count
to 25 by March 2014. All seven branches of the Bank are in urban centers- Kolkata, Mumbai,
Lucknow, Guwahati, Chennai, Bangalore and Ahmedabad. India's first ever state-owned women's
bank inaugurated in Mumbai and even though the bank will focus on lending predominantly to
women, there will be no restriction on account opening ( deposits) by men. "We welcome both men
and women to open accounts with us but for loans there will be a positive bias towards women,
said Usha Anantha subramanian the chairperson of the Bharatiya Mahila Bank. So basically,
deposits will flow from everyone, but lending will be predominantly for women.
The Lokpal Bill, 2013, also referred to as The Lokpal and Lokayuktas Bill, 2013, is an anti-
corruption Bill.
Following are some important features of the Lokpal Bill :
** Lokpal at the Centre and Lokayukta at the level of the states.
** Lokpal will consist of a chairperson and a maximum of eight members, of which 50 per cent shall
be judicial members.
** 50 per cent of members of Lokpal shall be from SC/ST/OBCs, minorities and women.
** The selection of chairperson and members of Lokpal shall be through a selection committee
consisting of Prime Minister, Speaker of Lok Sabha, Leader of Opposition in the Lok Sabha, Chief
Justice of India or a sitting Supreme Court judge nominated by CJI, eminent jurist to be nominated
by the President of India on the basis of recommendations of the first four members of the
selection committee.
** Prime Minister has been brought under the purview of the Lokpal.
** Lokpals jurisdiction will cover all categories of public servants.
** All entities receiving donations from foreign source in the context of the Foreign Contribution
Regulation Act (FCRA) in excess of Rs 10 lakh per year are brought under the jurisdiction of Lokpal.
** Provides adequate protection for honest and upright public servants.
** Lokpal will have power of superintendence and direction over any investigation agency including
CBI for cases referred to them by Lokpal.
The Bill also seeks to increase the rates of existing monetary penalties that RBI can impose on a
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bank if it disobeys RBI rules, directives or gives false information. These amendments shall be
conducive to the changing banking scenario because with the issue of new banking licenses the
need shall arise for greater regulatory control.
Acquisition of Shares and Voting Rights
Prior approval of RBI shall be needed for acquisition of 5% or more of shares or voting rights in
a banking company by any person. The RBI shall be empowered to impose such conditions as it
deems fit in this regard.
Public Sector Banks: This Bill also enables the government to raise voting rights in PSBs to 10
(ten) per cent from the current 1 (one) per cent, acceding partially to foreign investors'
demands to have more say in Indian banking.
In the shareholders meeting voting is done on many issues (for example election of Board of
Directors, Changing name of the Company etc.) but in case of public banks the shareholders
have only 1% voting right irrespective of number of shares held so they cannot heavily
influence any decision. So this amendment will make the voting rights proportional to the
number of shares held by shareholders and will attract foreign investors to invest in Indian
banks.
Banking Merger
The Competition Commission of India will approve M&A (Mergers and acquisitions) in banks
except in the case of banks that are under trouble. In such cases, the RBI will have the final
authority,
Raising Investments
The Bill enables the nationalized banks to raise capital through "bonus" and "rights" issue and
also enable public sector banks to increase or decrease the authorized capital with approval
from the Government and RBI without being limited by the ceiling of a maximum of Rs. 3000
crore under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980.
CTR is Cash Transaction report. This report contains:
All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
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KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any
transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
UNIQUE ID TO CUSTOMERS
The Reserve Bank has extended the deadline for banks to complete the process of allotting a
unique customer identification code to their customers to March 31, 2014.
Banks, however, will have to allot the Unique Customer Identification Code (UCIC) to all customers
while entering into new relationships.
The increasing complexity and volume of financial transactions necessitate that customers do not
have multiple identities within a bank, across the banking system and across the financial system,
RBI had said.
The objective of the UCIC is to help banks identify customers, track facilities availed, monitor
financial transactions in a holistic manner and to have a better approach to risk profiling of
customers.
CENTRAL REGISTRY
Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12,
Government of India, Ministry of Finance notified the establishment of the Central Registry. The
objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple
lending from different banks on the same immovable property. This Registry has become
operational on March 31, 2011. The Central Registry of Securitisation Asset Reconstruction and
Security Interest of India (CERSAI), a Government Company licensed under section 25 of the
Companies Act 1956 has been incorporated for the purpose of operating and maintaining the
Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
The records maintained by the Central Registry will be available for search by any lender or any
other person desirous of dealing with the property. Availability of such records would prevent frauds
involving multiple lending against the security of same property as well as fraudulent sale of
property without disclosing the security interest over such property. It may be noted that under the
provisions of Section 23 of the SARFAESI Act, particulars of any charge creating security interest
over property is required to be filed with the Registry within 30 days from the date of creation.
The Central Registry has been set up for the purpose of Registration of
(a) Security interest over Property (b) Transaction of securitization (c) Asset reconstruction
NOTE : In all the cases where equitable mortgage is created, the same has to be first registered in
CERSAI before any disbursement of loan w.e.f 01.12.2014
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