Summer Internship Report

On
“Analysis of Retail banking segment operated by the Union Bank
of India”
Submitted Toward the Partial Fulfillment of the Requirement for the
Award of the Degree of
Master of Business Administration (F&C)
Under the Guidance of
Manish kumar gupta(Branch Manager)
Union Bank of India
Vibhav khand , Gomtinagar
Lucknow.
Submitted To Submitted By
Dr. Mohd Arif Name : Shubham Dubey
Assistant Professor Class: MBA-FC Semester 3
IMS Roll No.: 180012135360
Batch : 2018-2020

Institute of Management Sciences

University of Lucknow (New Campus)
Lucknow.

1
 DECLARATION

I, Shubham dubey a student of MBA finance and control Semester 3

( Institute of Management Sciences , University of Lucknow ) hereby
declare that the work shown in this report is my own work & has been
carried out under the supervision of Mr. Manish kumar gupta .

This project has not been previously submitted to any other university
for any examination and research .

Place: Lucknow signature :

Date:

2
 ACKNOWLEDGMENT

I am heartily thankful to all the persons who spared their valuable time
and helped me a lot in preparation of this report. There are many people
behind making of this report, without their help and guidance, this
report would never be made possible.

Firstly, I would like to express my sincere thanks to Dr. Mohammad

Arif and our institution for giving me this golden opportunity. I would
also like to express my humble gratitude to Prof. Vinod Singh (OSD ,
Institute of Management Sciences).

I am greatly thankful to my internship guide Manish kumar gupta (

Branch Manager , Vibhav Khand branch , the Union Bank of India )
for giving me proper guidance and cooperation for making this report
more meaningful.

Special thanks to Mrs. Neha bhatnagar , Mrs. Raksha pandey , Mr.

sumit pandey , Mr. navin pant and Mr. sujeet singh .
Great help was also provided by Mr. ankit and Mr. ram khilawan in the
Union Bank of India .

Finally, I am very much thankful to my parents and my friends for

their support and valuable help.

3
 PREFACE

In the present fast moving globalized economy, only theoretical

knowledge is not sufficient for an individual to perform efficiently in
order to bridge the gap between theory and practical.

The students required to undergo 6 - 8 weeks training in any

organization in subjects like marketing, finance, human resource or
information technology.

Summer internship program is a prelude to the final placements that the

students will be getting. It is during these 6 - 8 weeks of exposure to
the industry that the students can make a mark of challenging work,
knowledge and ethics on the host organization.

Summer internship program would also be a great learning experience

since it enables students to apply theory to practice and observe and
learn the current trends in the market.

In order to have a practical exposure, I have been placed on “the Union

Bank of India” for my summer internship program as my specialization
is finance and this bank especially vibhav khand branch deals with
good financial and banking activities .

I, Shubham dubey, a MBA student of Institute of Management

Sciences University of Lucknow, did my report work in “the Union
Bank of India” on the topic “Analysis of Retail Banking Segment
operated by the Union Bank of India” .

4
 EXECUTIVE SUMMARY

MBA is a stepping-stone to the management career and to develop

good manager it is necessary that the theoretical must be supplemented
with exposure to the real environment.
Theoretical knowledge just provides the base and it's not sufficient to
produce a good manager that' s why practical knowledge is needed.
In accordance with the requirement of MBA course I had summer
training in the Vibhav Khand branch of the Union Bank of India and
made a report on the topic "Analysis of Retail Banking segment
operated by the Union Bank of India".

The retail banking environment has undergone major change. Retail

banking customers are much more active than they were a decade ago.
Customers are demanding more customized products and services. This
has imposed significant new demands on retail banks. With a view to
attaining an increasingly significant position in the growing retail
financial services sector in the country, banks have continued to
provide a sustained thrust to retail banking through a continuously
expanding network and a growing sales force with customer
relationship skills, that has enabled the distribution of a wide range of
products to a fast expanding customer base.

The report gives an overview of the Retail Banking segment operated

by the Union Bank of India , the security measure of the bank, recently
launched government schemes, etc.

5
 TABLE OF CONTENTS

S No. Particulars Page No.

Certificate
Declaration
Acknowledgement

Preface
Executive Summary
1.0 Introduction

2.0 Methodology

3.0 Data Analysis

4.0 Findings , Conclusion

and Recommendations

5.0 References

Annextures

6
INTRODUCTION

7
 UNION BANK OF INDIA

A Glorious Past - A Brighter Future

Union Bank of India was established on 11th November 1919 with its
headquarters in the city of Bombay now known as Mumbai.

The Head Office building of the Bank in Mumbai was inaugurated by

Mahatma Gandhi, the Father of the nation in the year 1921, and he said
on the occasion:
"We should have the ability to carry on a big bank, to manage
efficiently crore of rupees in the course of our national activities.
Though we have not many banks amongst us, it does not follow that
we are not capable of efficiently managing crore and tens of crore of
rupees."

His prescient words anticipated the growth of the bank that has taken
place in the decades that followed. The Bank now operates through
over 4200+ branches across the country. The Bank's core values of
prudent management without ignoring opportunities is reflected in the
fact that the Bank has shown uninterrupted profit during all 96 years of
its operations.

Union Bank has been playing a very proactive role in the economic
growth of India and it extends credit for the requirements of different
sectors of economy. Industries, exports, trading, agriculture,
infrastructure and the individual segments are sectors in which the bank
has deployed credit to spur economic growth and to earn from a well
diversified portfolio of assets.

8
Resources are mobilized through Current, Savings and Term Deposits
and through refinance and borrowings from abroad. The Bank has a
large clientele base of over 5.7 crores.

On the technology front the Bank has taken early initiatives and 100%
of its branches are computerized. The Bank has also introduced Core
Banking Solution with connectivity between branches. 100% of the
business of the Bank is under Core Banking Solution making it a leader
among its peers in infusion of technology. Many innovative products
are developed using the technology platform to offer an array of
choices to customers, adding speed and convenience to transactions.
Technology will also enable the Bank to derive substantial cost
reduction while creating the requisite capacity to handle the ever
increasing volume of business in a competitive environment that offers
immense opportunities.

Behind all these achievements is a dedicated team of staff, which is

truly cosmopolitan in its composition. Many generations of members
of staff have contributed in building up the strong edifice of the Bank.
The present team of over 36,000 members of staff distinguishes itself
with its customer centricity, willingness to learn and adherence to
values enabling us to be recognized as a caring organization where
people enjoy their work and relationship with customers.

9
 JOINT VENTURES

In our Corporate Mission Statement, one of the points is “To offer a

comprehensive range of products to meet all financial needs of
customers”. In order to move towards our cherished goal of becoming
a financial supermarket, Union Bank of India has setup Joint Ventures
with multinational companies which are well known and recognized as
among the leaders in their area of expertise.

S No. Particulars

1. Insurance

Star union Dai-ichi Life Insurance Co. Ltd.

2. Asset Management

Union Asset Management Company

Union Trustee Co. Ltd.

10
 CORPORATE VISION AND MISSION

Missions
 To be a customer centric organization known for its differentiated
customer service .
 To offer a comprehensive range of products to meet all financial
needs of customers .
 To be a top creator of shareholder wealth through focus on
profitable growth .
 To be a young organization leveraging on technology & an
experienced workforce .
 To be the most trusted brand, admired by all stakeholders .
 To be a leader in the area of Financial Inclusion .

11
 AWARDS & COMMENDATIONS

Union Bank of India has been the proud recipient of many awards and
commendations. It is an honor to be appreciated for the work we do in
serving the customer and society.
Union Bank of India wins Best Financial Inclusion Initiatives (winner)
and Best Technology Bank of the Year (runner-up) Awards from IBA
(Indian Banks’ Association) at Mumbai on 21st February, 2017 .
Union bank of India wins champion of champions trophy and six
individual category awards for Union Dhara(banks inhouse journal) at
the 55th ABCI ( Association of Business Communicators of India)
awards ceremony held at Mumbai on 18th March, 2016 .
Union Bank of India wins Banking Disruptor of the year Award 2016
for Product Union Selfie ( Excellence in Advertising & Marketing)
awarded by Bloomberg TV India-18 March, 2016 .
Union Bank of India won the following awards under Corporate Social
Responsibility :

1.Bank with Best CSR practices award was presented to Union Bank
Social Foundation .
2.CSR Leadership Award for promoting Employment for the
Physically Challenged .
3.CSR Leadership Award for best use of CSR practices in Banking
Sector .
4.Excellence in Banking (PSU category) .
5.Best Bank in Public Sector under Banking Financial Services &
Insurance category .

12
Union Bank of India was presented Golden Peacock Awards for
excellence in HR practices during the 10th International Conference on
Corporate Social Responsibility conducted by the Institute of Directors.
Union Bank of India wins the Prestigious ‘1st Best Vigilance
Excellence Award (2015-16) in Corporate Category’ .
Sri Atul Kumar, CVO, Union Bank of India wins the Prestigious
‘Vigilance Excellence Award (2015-16) in Individual Category’.
Union Bank of India won 6 IBA (Indian Bank Association) Technology
Awards 2015-16 under following categories :

Winner
1.Best Technology Bank of year
2.Best use of Digital & Channels Technologies
3.Best use of Technology to enhance Customer Experience
4.Best Risk Management, Fraud, Cyber Security
5.Best Financial Inclusion Technology Initiatives and
6.Best Payment Initiatives

Union Bank has bagged “SKOCH Order-of-Merit Award 2015" under

three areas “eKYC Application” , “Union Fee Pay – Kendriya
Vidayalaya ” and “Technology for Financial Inclusion” in the SKOCH
summit on Technologies for Growth.
Union Bank has bagged "elets Awards 2015" under “Multi Channel
Payment Solution (IMPS)” in the Global Conference on Financial
Inclusion & Payment Systems (FIPS) organized by elets Technomedia
Pvt. Ltd.
Union Bank bagged "ICT4 Development Awards 2015" under ‘Green
Information Technology (IT) Initiative’ category from Associated

13
Chambers of Commerce and Industry of India (ASSOCHAM), New
Delhi .
Union Bank bagged IDC Insights Awards for ‘Excellence in
Innovation’ from Financial Insights, International Data Corporation
(IDC).
Union Bank has bagged "National Award for Innovative Training
Practices" ( Second Prize for 2014-15) instituted by Indian Society for
Training & Development (ISTD), New Delhi.
Union Bank of India bags SKOCH ORDER-OF-MERIT award for
Financial Inclusion Technology in Skoch Financial Inclusion &
Deepening Award Conference held on 11th June 2015 at Mumbai,
Maharastra. Bank bags this award for implementing various
Technology initiatives to support all government schemes covered
under the ambit of Financial Inclusion. Initiatives include FI Gateway,
Centralized Bio-metric Authentication System, AADHAAR Enabled
Payment System, AADHAAR Payment Bridge System, Kiosk Banking
Application, Demographic verification of AADHAAR holders &
AADHAAR seeding, Direct Benefit Transfer Scheme and eKYC based
account opening.
Union Bank of India bags the Express Uptime Champion Award 2014
for its Network Operations.
Union Bank of India won 6 IBA (Indian Bank Association) Technology
Awards under following categories :
Winner
1.Best Payment Initiatives
Runner up
1.Best Technology Bank of the year
2.Best Risk Management & Security
3.Best use of Mobility Technology
4.Best Internet Bank
14
5.Best Use of Technology in Training and Learning Initiative
Union Bank of India bags Financial Inclusion Technology Initiative
award in the Global Conference on Financial Inclusion & Payment
Systems.
Union Bank bags First prize under RBI Rajbhasha Shield and Second
prize under Bilingual House Journal Competition from Reserve Bank
of India.
Our bank bags IDRBT IT Excellance Awards 2012-13 under following
categories :
IT Excellance Award for "Best IT Team"
Special Award for "Technology for FI"
Special Award for "Managing IT Risk"
The Dale Carnegie Leadership Award was conferred on Union Bank of
India on 28th October 2010 by Dale Carnegie Training for the Bank's
transformation initiatives undertaken through project Nav Nirman.
Our Bank has been the winner of Association of Business
Communicators of India (ABCI) Gold Award for marketing and Brand
Communications, 2010. The award is in recognition of the
transformation process undertaken by the Bank.
Our Bank was ranked as the 275th most valuable global banking brand
for calendar year 2009, up from 351st rank in 2008.
The ranking is carried by Brand Finance Plc, an independent intangible
asset valuation and brand strategy global firm .
The brand value rating for Union Bank is A+ (A means strong)
compared to BB (BB means Average) in previous year .
Bank's brand value increased by 148% during the calendar year 2009.
The Asian Banker ranked Union Bank of India the 7th Strongest Bank
in Asia-Pacific Region in 2009. The Bank was ranked at No. 3 amongst
banks in India.

15
Our Bank has participated in the prestigious Banking Technology
Awards 2009 conducted by IBA-TFCI award and bagged the Best User
of Business Intelligence award.
Union Bank of India was awarded the prestigious Skoch Challenger
Award 2009 for excellence in capacity building through innovative
concept of 'Village Knowledge Centre' as part of financial inclusion
initiatives .

16
 BUSINESS DESCRIPTION

Retail banking services offered by the union

bank of india

Accounts and deposits

(1) Saving account

17
(2) Current account

(3) Fixed deposit

18
(4) Loans
Retail loans

MSME loans

19
(5) Wealth management

(6) Govt schemes

20
(7) Agricultural loans

(8) Lockers/other services

21
 ACCOUNTS AND DEPOSITS

SAVINGS ACCOUNT

Regular Savings Bank Account

Features Particulars / Details

Eligibility Any Resident Individual – Single
Accounts , Two or more Individuals
in joint accounts , Illiterate Persons ,
Visually Impaired persons ,
Purdanasheen Ladies , Minors ,
Associations , Clubs , Societies , etc.
Trusts , Institutions / Agencies
specifically permitted by the RBI .
Salient Features ~ Simplest deposit option available to
the depositor .
~ ATM cum Debit card issued without
any charge .
~ 20 leaves of cheque book free per
year .
~ Free Accidental Insurance cover by
Debit card usage .
~ Tabulous Banking facility to open
accounts from your home / office
~ New Generation banking facilities
(1) Any where / Any time Banking
through – Branch Banking /
ATM Banking / Net Banking /

22
 Phone Banking / Phone Banking
.
(2) Free Internet Banking Facility –
Unique facility of Self User
Creation and Password Reset .
(3) Self generation of ATM pin for
customers by calling the toll free
IVR using their registered
mobile number .
(4) Remittance products on ATMs
viz. NEFT , IMPS , UNION e-
Cash and Investments into
Mutual funds .
(5) U-Mobile facility – facilitates
Balance Enquiry , NEFT , Bill
Payment , Mobile Recharge etc.
through your mobile phone .
(6) Earn Rewardz points on your
Debit card spend .
~ Zero balance facility . A student can
open Regular Saving Account with
zero balance .
~ Provision for nomination .
~ Low minimum balance requirements
.
Centres Without Cheque With Cheque Book
Book
Metro 500 1000
Urban 500 1000
Semi Urban 250 500
Rural 100 250
For Pensioners 20 250

23
 CURRENT ACCOUNT

Regular current account

Features Particulars / Details

Eligibility Any Resident Individual - Single
Accounts, Two or more individuals -
Joint Accounts, Sole Proprietary
Concerns, Partnership Firms, Illiterate
Persons, Visually impaired Persons,
Minors(account to be operated by
Guardian), Limited Companies,
Associations, Clubs, Societies, etc.

Trusts, Joint Hindu families (accounts

of non-trading nature only),
Municipalities, Government and
Quasi-Government Bodies,
Panchayats

Salient Features
Religious Institutions
Educational Institutions (including
Universities)
Charitable Institutions
Card Convenience
ATM cards are given to individual
current accounts, joint individuals and
to the accounts of proprietary
concerns.

Get your ATM card have access to the

wide network of ATMs across the
country to withdraw cash, enquire
about your balance, mini statement of
accounts, recharging mobiles etc.
Moreover, your card enables you to
shop at a large number of Merchant

24
 Establishments in India. You can also
avail yourself of our ATM-cum-Debit
Card, which is truly international and
which can be used within as well as
outside India, at a nominal fee.
Easy and Wide Accessibility
Transact at your convenience, saving
time and cost through Union Bank
Internet Banking.You can also use
ATM card at any Banks ATMs,
subject to nominal charges of Rs 20/
per transaction
Monitoring Your Account
Monitor and control your funds
through Union Bank Internet Banking
or/ and through
Passbook/ statement of account
facility.
Transaction Ease
Unlimited number of payments.
Make payments by giving us standing
instructions.
Remit funds from any part of the
country to your account.
Upcountry Cheque Collection facility.

Other benefits Overdraft facility

Transfer of accounts between our wide
network of branches without any
charge
Nomination Facility - Available.
Low minimum balance requirements
Internet Banking facility is available.

25
 FIXED DEPOSITS

Non-callable term deposit scheme

Union Non-Callable Term Deposit Scheme (For Deposits of Rs.1 crore and
above):
Union Bank of India has introduced non callable term deposit scheme. The
scheme is available to the deposits of Rs. 1 Crore and above (Single Deposits)
only. The scheme will fetch higher rate of interest as compared to interest rate
on the regular deposits of Rs.1 Crore and above.

Salient Features:
Name of the Product Union Non Callable Term Deposit
(Domestic)

Amount of Deposits Rs.1 crore & above

Tenor of Deposits 61 Days to 3 Yrs

Auto-Renewal Not allowed.

ROI Decided by Bank

Premature Closure Not allowed.

Permitted as per existing rules of bank.

Availability of The deposits may be accepted as security
Loan/Overdraft for fund based & non fund based loans as
per prevailing guidelines of the Bank.

UNION MONTHLY PLUS

Features Particulars / Details

Details A Novel User-friendly Recurring
Deposit Scheme, with flexibility of

26
 Step Up and Step Down options, with
monthly installment.

Salient Features The Scheme is available to Individuals

/ Institutions / Corporates /
Proprietorship / Partnership / Trust /
HUF etc.
The customer will have to select the
"Core Amount", at the time of opening
the account and deposit the same,
initially
Minimum Core Amount is Rs.100/- &
Maximum Rs.1,00,000/-
The period of deposit will be from 6
month to 60 months, in multiple of one
month
Rate of interest on this scheme will be
as per the Term Deposit rate
applicable for the period
Interest will be calculated on daily
product basis.
The Scheme offers flexibility of
depositing monthly installment
amount, by way of Step Up & Step
Down options.
Step Up option :
Depositor can increase (Step Up) the
monthly installment amount upto 10
times the Core Amount during any
month. The installment can also be
deposited one or more times during a
month, subject to maximum ceiling of
10 times Core Amount.
Example: Core Amount Rs.1,000/-
Customer can deposit maximum upto
Rs.10,000/- per month.
For accounts opened on or after
01.05.2009, maximum amount that
can be remitted during a month
including step up is limited to
Rs.1,00,000 (Rupees One Lakh Only)
Step Down Option :

27
 After stepping up the instalment
amount, a customer can also reduce
the same (Step Down), in any
subsequent month/s, but the same
should not be less than the Core
amount
Premature closure is allowed
No penalty will be charged in case of
premature closure
Similarly, no penalty will be levied on
delayed installment
Nomination facility is available, like
other Deposit Scheme
Loan facility is permitted upto 75 % of
the deposit amount, at the time of
availing loan, at 2 % ODR
As per the latest changes in the
Income Tax Act, TDS will be
applicable on the interest on Union
Monthly Plus Deposit Account.

UNION TAX SAVER

Features Particulars / Details

Eligibility All individuals and HUF having PAN
are eligible to invest in this product.
Firms, Companies, Trust, Societies,
Clubs, Institutions, Corporates etc.,
are not allowed to invest in this
product.

Types of Term Deposit The deposit can be of Single holder

type or Joint holder type.The single
holder type of deposit shall be issued
to an individual for himself or in the
capacity of the Karta of the Hindu

28
 undivided family. The joint holder
type of deposit receipt may be issued
jointly to two adults or jointly to an
adult and a minor and payable to either
of the holders or to the survivor.
In case of joint holder type of deposit,
the deduction from income under
section 80C of the Act shall be
available only to the first holder of the
deposit.

Investments The amount to be invested in the term

deposit of the Bank shall be a
minimum of Rs.5,000/- and in
multiples of Rs.1,000/- thereof and
maximum limited to Rs.1,50,000/- in a
financial year. The product will be
available for investment, until further
announcement or otherwise
withdrawn by the Government, as the
case may be.

Period of Deposit Deposit will be accepted for a

minimum period of 5 years and
maximum period of 10 years.

Issue of term deposit receipt The term deposit receipt shall bear the
name, address, Permanent Account
Number and Signature of the
depositor, along with other particulars.

Transfer of deposit The deposit may be transferred from

one branch to any other branch of
Union Bank of India on the depositor
making an application, at either of the
two branches. The said Term deposit
will not be transferred to any other
Bank.

Encashment of Maturity The maturity period of term deposit

receipt of any denomination shall be
minimum five years commencing

29

Tax liability on interest on deposit
from the date of the receipt and
maximum being 10 years. No term
deposit shall be encashed before the
expiry of five years from the date of its
receipt.
Interest on these deposits shall be
liable to tax under the Income Tax Act.
TDS will be applicable as per extent
guidelines.

Benefit of Exemption Exemption under section 80 C of

Income Tax Act can be claimed by the
depositor in case of single depositor or
the first holder in case of joint
depositors, within eligible
investments.

LOANS

UNION HOME

30
Features Particulars / Details
Purpose Purchase/ construction of house/ flat
Purchase of plot and construction of
house
Repairs/ improvements/ extension of
the existing residential property
Take-over of housing loan availed
from another bank / FI.

Eligibility Indian citizen above 21 years

Individual, either singly or jointly with
other family members viz. father,
mother, son and/or spouse, who have
regular sources of income as co-
applicants.
Siblings, i.e. brother-sister, brother-
brother, sister-sister can be permitted
as a applicants/co-applicants subject to
the property must be in the joint names
of the siblings.
NRIs are also eligible for the home
loan.

Quantum of loan Depending on repayment capacity of

the borrower and value of property
Maximum Rs. 30 Lakhs for Repairs.

Moratorium period Moratorium period of up to 36 months.

Repayment period Repayment period of up to 30 years

10 years in case of repairs.

Security Equitable mortgage (E.M.) of the

residential property
If the house/ flat proposed to be
purchased is yet to be constructed or is
under construction, interim security
may be required (till the period of its
completion)

31
Guarantee Third party guarantee is not mandatory
for Resident Indian
One/two guarantors of Indian
Residents, having means equivalent to
that of the loan amount, is to be
provided by the NRI applicant.

Insurance Property insurance is compulsory to

the tune of the value of the property.

Margin i.e your share 20% of the total cost of the purchase/
construction of house/ flat for loans
upto Rs. 75 Lakhs
25% of the total cost of the purchase/
construction of house/ flat for loans
Above Rs. 75 lakhs to Rs. 2 Crores
35% of the total cost of the purchase/
construction of house/ flat for loans
Above Rs. 2 Crores
20% of total cost of the repairs

UNION AWAS

32
Features Particulars / Details
Purpose You can avail the Union Awas to
purchase/ construction of house,
purchase of plot from government
agencies and also for repairs/
improvements/ extension of the
existing residential property.

Eligibility A person has to meet the following

criteria to avail the loan:
Indian citizen above 21 years having
regular source of income not less than
Rs. 48,000 per annum
Individuals, either singly or jointly
with other family members viz. father,
mother, son and/or spouse, who have
regular sources of income as co-
applicant
Siblings, i.e. brother-sister, brother-
brother, sister-sister can be permitted
as a applicants/co-applicants subject to
the property must be in the joint names
of the siblings.

Quantum of loan For purchase or construction of house,

maximum loan amount up to Rs. 7
lakhs for semi-urban areas and up to
Rs. 5 Lakhs for rural areas
For repairs of house, maximum loan
amount up to Rs. 3 lakhs for semi-
urban areas and up to Rs. 2 Lakhs for
rural areas

Moratorium period Moratorium period of up to 36 months.

Repayment period Repayment period of up to 30 years

10 years in case of repairs.

Security Equitable mortgage (E.M.) of the

residential property

33
 If the house/ flat proposed to be
purchased is yet to be constructed or is
under construction, interim security
may be required (till the period of its
completion)

Guarantee A guarantee of sufficient means is

required

Insurance Property insurance is compulsory to

the tune of the value of the property.

Margin i.e your share
20% of the total cost of the purchase/
construction of house
20% of the total cost of the plot
20% of the total cost of the repairs/
renovations

VEHICLE LOAN

UNION MILES

34
Features Particulars / Details
Purpose Now you can fulfill your dreams of
owing a vehicle by availing Union
Miles. You can avail this special
scheme to purchase of new or old (up
to 3 years) four-wheeler, and you can
also avail this loan to purchase a new
two-wheeler.

Eligibility A person has to meet the following

criteria to avail the loan:
Resident Indian citizen and Non-
Resident Indians (NRIs) holding valid
license.
Minimum age - 18 years and
maximum age - 70 years.
Individual, either singly or jointly with
other family members viz. father,
mother, son, spouse or daughter as co-
applicants.
Companies / Firms for purchase of
vehicle for usage by their Directors /
employees
Quantum of loan Maximum quantum of loan
New 4-wheeler
Rs. 125 Lakh
Old 4-wheelers (not older than 3
years)
Rs. 20 Lakh
New 2-wheeler
Rs. 10 Lakh
Moratorium period Moratorium period of up to 36 months.

Repayment period Maximum repayment tenure

New 4-wheeler
7 years
Old 4-wheelers (not older than 3
years)
5 years
New 2-wheeler
3 years
35
Security Hypothecation of vehicle purchased
out of Bank's finance
Bank's lien to be noted with the Road
Transport authorities

Guarantee Guarantee of the spouse is required.

In case borrower is unmarried, 3rd
party guarantee of sufficient means
In case of NRIs guarantee of one/two
local resident Indian of sufficient
means is required
In case of companies guarantee of one
promoter/director is required.

Insurance Property insurance is compulsory to

the tune of the value of the property.

Margin i.e your share 15 % of on-road price (Vehicle Cost +

Registration Charges + Insurance +
Road Tax)
40 % of old vehicle's valuation cost

EDUCATION LOAN

36
 UNION EDUCATION
Features Particulars / Details
Purpose To poor and needy to undertake basic
education.
To the meritorious students to pursue
higher / professional/ technical
education, after passing 10+2 or
equivalent

Eligibility Should be an Indian national

Secured admission to the concerned
institute in India or abroad through
appropriate selection process and
cleared the qualifying examination, if
any
Courses covered in India
Graduation / post-graduation /
diploma courses from recongnized
universities
Technical / professional / management
courses
37
 PhD courses
Courses covered outside India
Graduation / post-graduation degrees
offered by recongnized universities
Certified degree courses conducted by
CIMA, London, CPA, USA and other
such institutes
PhD courses
Diploma courses abroad are not
covered
Quantum of loan For Inland Studies
Rs. 20 lakhs
For Studies Abroad
Rs. 30 lakhs
Loan amount beyond maximum
quantum of loan to be considered by
respective delegatee, as per their
delegated authority, as deviation.

Moratorium period Course period + 1 year

Maximum repayment tenure after
completion of course / moratorium
period is -
15 years irrespective of the quantum of
loan.

Expenses covered Tuition fee payable to college/ school/

university
Hostel / mess charges
Examination/ Library/ Laboratory fee
Insurance premium for the student
borrower
Caution deposit, Building fund/
refundable deposit supported by
Institution bills/ receipts
Purchase of books/ equipments/
instruments/ uniforms
Purchase of computer/laptop at
reasonable cost, if required for
completion of the course
Travel expenses/ passage money for
studies abroad

38
 Admission acceptance fee
Any other expense required to
complete the course - like study tours,
project work, thesis, etc

Margin i.e your share Up to ` 4 Lakh

Nil
Above ` 4 Lakh
Studies in India
5%
Studies abroad
15%
Scholarship / assistance to be included
in margin

MORTGAGE LOAN

Features Particulars / Details

Purpose In life we face circumstances where
we cannot avoid few expenses. And

39
 these include personal expenditure of
varied needs like marriage, higher
education, medical emergencies,
business travel or any unforeseen
expenses. Repayment of existing
mortgage loan taken at higher interest
rate from another bank / FI (Take
over). Union Mortgage is the solution
for such needs; you can avail Loan
against property and meet such
expenditure.
Eligibility To avail "Union Mortgage" you need
to meet the following criteria:
Indian national owning non-
agricultural (residential /
commercial/industrial) property.
Minimum age - 18 years and
maximum age - 70 years.
Applicant and co-applicants should be
filing Income Tax return.
Individual, either singly or jointly with
other family members viz. father,
mother, son, unmarried daughter
and/or spouse, who have regular
sources of income as co-applicants.
All the owner(s) of the property have
to join in as co-applicant(s).
Siblings, i.e. brother-sister, brother-
brother, sister-sister can be permitted
as a applicants/co-applicants subject to
the property must be in the joint names
of the siblings.
NRIs are also eligible for mortgage
loan.

Quantum of loan Minimum of Rs. 5 Lakh

Maximum -
Resident Indian-Rs. 10 Crore
Agriculturist-Rs. 1 Crore
NRI-Rs. 5 Crore

40
Moratorium period Term loan: The maximum repayment
tenure will be lowest of the following
three:
12 years (144 months)
Residual period till the borrower
attains the maximum age of 70 years
Residual age of the property less 5
years
The repayment tenure norm to be
applicable in respect of individuals
whose income is being considered for
the purpose of repayment.
SOD limit to be scaled down
commencing 5 years prior to the
borrower attaining the age of 70 years,
by reducing 1/5th of the original
sanctioned limit every year so as to
ensure adjustment of overdraft
completely by the time the borrower
attains the age of 70. In case the
residual age is less than 5 years at the
time of sanctioning SOD facility, it is
to be adjusted proportionately every
year.
No moratorium period.
Security Equitable mortgage (E.M.) of the non-
agricultural (residential / commercial)
property, which is in the name of the
borrower(s).
Lease hold properties can be
considered as security which are on
lease from urban development
authority, such as DDA, HUDA,
HUDCO, LDA etc. subject to
necessary permission/NOC/tripartite
agreement as appliacable for creation
of mortgages is obtained from the
respective development authority
Open plots can also be considered as
security which are well demarcated
and have been acquired by the
borrower from urban development

41

Margin i.e your share
Guarantee
PERSONAL LOAN
authorities such as DDA, HUDA,
HUDCO, LDA etc.
All the co-owner(s) of the property
need to join in as co-applicant(s).
50% of the fair market value of the
property mortgaged as per the latest
valuation report. The valuation report
should be from an approved valuer of
the Bank and not older than six months
at the time of sanction
Fresh valuation at the cost of the
borrower(s) is required once in three
years during the tenure of the loan.
Third party guarantee is not mandatory
for resident Indian. In case of NRIs
guarantee of a local resident Indian
required.
42
Union Personal loan Scheme for Salaried Individual other
than Government Employees
Features Particulars / Details
Purpose There are many among us who might
be facing difficulty in purchasing
goods by paying a lump sum amount.
But we would be comfortable paying
small instalments on a monthly basis.
The Union Personal loan plays an
important role here. It helps you to
avail loan to meet personal expenses
such as purchase of consumer durable,
etc.

Eligibility Tie-Up (A1)

Non Tie- Up(A2)
Permanent/ confirmed employees of
reputed private institutes/organisation
in India.
These organizations/institutes should
be operating within the jurisdiction of
respective ZLCC.
Applicant may or may not maintain
salary account with us.
Permanent/ confirmed employees of
reputed private institutes/organisation
in India.
The applicant should be customer of
the bank for at least 6 months prior to
considering the loan proposal.
Applicant should necessarily maintain
salary account with bank.
Note:
Minimum age of the applicant should
be 18 years.
The applicant has reasonable residual
service to ensure that the entire loan is
repaid one year prior to retirement.
Government employee and Staff
members of our bank are not eligible
under the schemes.

43
Quantum of loan Tie-Up (A1)
Non Tie- Up(A2)
Maximum of Rs. 10 lakh
Maximum of Rs. 5 Lakh (New/First
time borrowers)
Maximum Rs. 10 Lakh (Existing
borrowers with a satisfactory
repayment record of 2 years).

Repayment period 5 years (60 months)

One year prior to retirement

Security No security other than the guarantees.

Margin i.e your share MARGIN

Nil
RATE OF INTEREST
Tie-Up (A1)
Non Tie- Up(A2)
1Y-MCLR + 4.00% (floating)
1Y-MCLR + 5.00% (floating)

Guarantee Guarantee of one co-employee -

However, one employee should not be
guarantor for more than two co-
employees.
Guarantee of spouse - However, if the
applicant is unmarried/ widow/
widower, then guarantee of a 3rd party
having equivalent means and having
Transunion CIBIL score of minimum
700 & above (equivalent score with
other credit bureau) to be obtained.

Union Personal Loan - Non Salaried

Features Particulars / Details
Purpose There are many among us who are not
in service & earn their livelihood by

44
 doing business. These persons also
faced difficulty in purchasing goods
by paying a lump sum amount. But
they would be comfortable paying
small instalments on a monthly basis.
The Union Personal loan for non
salaried individuals plays an important
role here. It helps them to avail loan to
meet personal expenses such as
marriage, purchase of consumer
durables, travel, holiday, etc.

Eligibility Non-salaried individuals having

regular source of income.
Minimum age of the applicant should
be 25 years.
Maximum permissible age at the end
of repayment to be 60 years. This is
subject to assessment at the time of
sanction the adequacy of income to
meet repayment obligation till the age
of 60 years.
Applicant should be customer of our
Bank for at least 24 months prior to
considering the loan proposal.
Applicant should necessarily maintain
savings or current account with us
with AQB of Rs.25000 & above for
immediately preceding 4 quarters and
conduct of account should be
satisfactory, i.e. no cheque return for
financial reasons, no adverse feature
reported etc.

Quantum of loan New/first time borrowers

Rs. 5.00 lakh
Existing borrowers with a satisfactory
repayment record of 2 years
Rs. 10.00 lakh

Repayment period The maximum repayment period will

be earlier of the following two –

45
 5 years (60 months)
Up to the age of 60 years

Security No security, except personal

guarantee.

Margin i.e your share MARGIN

Nil
RATE OF INTEREST
1Y-MCLR + 6.00% (floating)

Guarantee Guarantee of a person having means

equivalent to the loan amount and
minimum Trans union CIBIL score of
700 & above (equivalent score with
other credit bureau).
Guarantee of spouse - However, if the
applicant is unmarried/ widow/
widower, then guarantee of a 3rd party
having equivalent means and having
Transunion CIBIL score of minimum
700 & above (equivalent score with
other credit bureau) to be obtained.

MSME LOANS
Features Particulars / Details
Nature Composite Loan. Term Loan and / or
Working capital (Fund Based and
Non-Fund Based)

Eligibility All Micro enterprises engaged in

manufacturing, trading and service
sector including professionals (like
CA/ICWA/CS/Architect/Medical
professionals etc).

Quantum of loan Maximum limits upto Rs.10.00 lacs

can be sanctioned to meet need based
requirement.

46
 Mudra loan are categorized as under
depending on exposure.

Shishu
Loan amount upto Rs.50,000/-
Kishore
Loan amount exceeding Rs.50,000/-
and upto Rs.5.00 lacs
Tarun
Loan amount exceeding Rs.5.00 lacs
and upto Rs.10.00 lacs

Repayment period To be repaid within maximum period

of 84 months in equated monthly
installments inclusive of maximum
moratorium period of 6 (six) months.
Period of Moratorium to be allowed
judiciously. Repayment Schedule in
Finacle should invariably be
mentioned as EMI.

Margin i.e your share MARGIN

5% for loans falling under the ‘Shishu’
loan category ;
10% for loans falling under the
‘Kishore’ and ‘Tarun ‘loan category.
RATE OF INTEREST
For Micro Enterprises
Advance Upto Rs.50,000/-
MCLR + 0.40%
Advance above Rs.50,000/- upto
Rs.2.00 lakhs
MCLR + 0.90%
Advance above Rs.2.00 lakhs
MCLR + 1.65%

Working capital 12 months subject to renewal as per

extant guidelines.
Interest to be recovered as and when
due.

47
UNION NARI SHAKTI

Eligibility

Micro & Small Enterprises owned and managed by Women

Entrepreneurs. In case of a partnership concern or company, majority
of partners should be women and in case of company, majority of
directors should be women.
Proprietorship, partnership concerns (including LLP), Limited
Companies etc belonging to Micro and Small Enterprises.
Units should have in place all necessary statutory approvals / NOCs
from respective authorities.
All new as well as existing accounts can be covered under this scheme.
Credit Rating of the borrower should not be below UBI-5 in case of
new connection and UBI-4 in case of takeover advances.
Purpose : Cash Credit / Term Loan
Quantum of Finance - Minimum Rs.2.00 lacs and Maximum
Rs.100.00 lacs
Margin – Upto Rs.10.00Lacs – 5% / Above Rs.10Lacs – 15%
Processing charges : Nil
Repayment period Working Capital - One year / Term Loan -
Maximum 84 months including moratorium period of maximum 12
months .
Security:
Primary -In case of working capital limit, exclusive charge on stock
and book debts and in case of term loan, exclusive charge on assets
created out of bank finance.

48
Collateral -In case of exposure upto Rs.10.00 lacs, no collateral security
is to be obtained.
In case the exposure is covered under CGTMSE, no collateral security
is to be obtained upto Rs.100.00 lacs. In cases where the exposure is
not covered under CGTMSE, minimum collateral as acceptable to the
Bank to be as under

- In case of Working Capital only: Minimum 25% of the loan value.

- In case of Term Loan for purchase / construction / renovation of shops
/ godown: Minimum 15% of the loan value.
- In case of composite loan (Both working capital and term loan):
Minimum 15% of the loan value.

Guarantee –
Personal guarantee of the proprietor / partners / directors.
Personal guarantee of property owner which is offered and accepted as
collateral security.

49
 WEALTH MANAGEMENT

(1) MUTUAL FUNDS

(2) LIFE INSURANCE
(3) GENERAL INSURANCE
(4) UNION DEMATS
(5) ONLINE TRADING ACCOUNTS

MUTUAL FUNDS

What is a Mutual Fund?

A mutual fund is a professionally managed type of collective
investment scheme that pools money from many investors and invests
it in stocks, bonds, short-term money market instruments, and/or other
securities.
Funds are selected on quantitative parameters such as volatility, risk
adjusted returns, rolling return coupled with a qualitative analysis of

50
fund performance and investment styles through regular due diligence
processes.
Mutual Fund products of all leading Asset Management Compamies
are made available to our valued customers through all major CBS
branches across the country with the help of our AMFI Certified
Marketing Officers.
Advantages of Investing into a Mutual Fund
Mutual funds are popular because they offer the ability to easily invest
in increasingly more complicated financial markets. A large part of the
success of mutual funds is also the advantages they offer in terms of
diversification, professional management and liquidity.
Flexibility - Mutual Fund investments offer lot of flexibility with
features such as systematic investment plans, systematic withdrawal
plans, and dividend reinvestment.
Affordability - They are available in units which make it very
affordable. Because of the large corpus, even a small investor can
benefit from its investment strategy.
Liquidity - In open-ended schemes, you have the option of withdrawing
or redeeming your money at any point of time at the current NAV.
Diversification - Risk is lowered with Mutual Funds as they invest
across different industries & stocks.
Professional Management - Expert Fund Managers of the Mutual Fund
analyse all options based on experience & research.
Potential of return -The fund managers who take care of your Mutual
Fund have access to information and statistics from leading economists
and analysts around the world. Because of this, they are in a better
position than individual investors to identify opportunities for your
investments to flourish.
Low Costs - The benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.

51
Regulated for investor protection - The Mutual Funds sector is
regulated to safeguard the investor's interests.

LIFE INSURANCE

SUD LIFE GUARANTEE PENSION PLAN

SUD Life Guaranteed Pension Plan is a deferred pension product that
helps you to plan for your life post retirement – be it starting a new
venture, pursuing a hobby, travelling across the world or just enjoying
time with family and friends.
This plan helps you meet planned as well as unplanned financial needs
by providing a lump sum at retirement.
Key Features:
1. Vesting benefit at retirement to buy an annuity plan
2. Guaranteed additions on the invested amount
3. Provides hassle free enrollment-no medicals

52
4. Provides flexibility to choose how long you want to stay invested
5. Offers further guaranteed additions in case of higher premium*
6. Helps in saving tax under section 80C and 10(10A) (iii) of Income
Tax Act, 1961.

SUD LIFE AAROGYAM

SUD Life AAROGYAM plan is a Non-Linked Non-Participating Health
Insurance Plan that provides cover against diagnosis of Cancer of Specified
Severity, First Heart Attack- of Specified Severity, Open Chest CABG, Stroke
resulting in Permanent Symptoms, Kidney Failure requiring Regular Dialysis
along with 35 other listed critical illnesses and pays Sum Assured as a lump sum
benefit on diagnosis of any of the listed Critical Illness.
Key Features:
1. Protection against 40 Critical Illnesses for 10 years.
2. Refund of all premiums at maturity in case no critical illness claim
is made (except Angioplasty).
3. Additional cover for Angioplasty equal to 25% of Sum Assured
subject to a maximum of Rs. 10.
lac, keeping all other benefits intact.
4. Fixed benefit irrespective of actual medical cost and flexibility to use
claim amount according to need.
5. Lower premium for female lives.
6. Premium discount on High Sum Assured.
7. Premium rate guarantee for 5 years.

SUD LIFE AAYUSHMAAN

SUD Life AAYUSHMAAN is a Non Linked Deferred Participating
Plan that pays lump sum benefits and lifelong financial protection, a
plan to help you ensure that nothing comes in the way of your family's
53
happiness. With the power of guaranteed additions and bonuses, your
benefits augment with time.
Key Features:
1) Life Long Protection with lump sum to your family in case of any
unfortunate demise.
2) Guaranteed Additions of 3% p.a. of Basic Sum Assured for first five
policy years to augment plan benefits (in-force policies).
3) Maturity Benefit equal to Basic Sum Assured along with guaranteed
additions and bonuses accrued at the end of the policy term.
4) Income Tax Benefits under Section 80C & 10(10D).

SUD LIFE AASHIRWAD

SUD Life AASHIRWAAD is a Non-Linked Non-Participating Endowment Plan
which ensures that even in your absence, all the planned benefits remain intact
and your child’s dreams are never compromised.
Key Features:
1. Guaranteed Benefits at Maturity
2. Choice among 5 different maturity payout options
3. Policy continues as planned, even after Life Assured’s unfortunate demise
4. Multiple premium payment term and policy term options
5. Income Tax benefitsU/s 80C & 10(10D)1.

SUD LIFE AADARSH

SUD Life AADARSH is a Limited Premium Non-Linked Non-
Participating Endowment Life Insurance Plan that offers you benefits
of savings and protection for you and your loved ones. This plan
offers you a Guaranteed Maturity Benefit with a short premium
paying term and enhances your protection with an inbuilt additional
accidental death benefit.

54
Key Features:
1. Guaranteed Maturity Benefit equal to Basic Sum Assured
2. Enhances life cover with additional Death Benefit in case of death
due to accident.
3. Savings plan providing life cover for 10 years with a fixed premium
payment term of 5 years
4. Income tax rebate U/s 80C and 10(10D) of Income tax Act,
1961&subject to condition
stipulated therein
&Tax benefits are as per the prevailing tax laws and subject to change
from time to time.

GENERAL INSURANCE

NEW INDIA ASSURANCE

UBI along with NIACL provides a wide range of products in

commercial/industrial as well as personal line of insurance to facilitate
various options for different customer groups to fulfill their
requirements.
Bank distributes commercial/ industrial policies covering:
Stock in Trade , Plant and Machinery , Goods in Transit , Buildings,
Office equipment , Milch Animals , Agriculture Machinery &
Implements, etc.
In addition to the above list, Bank also distributes personal line of
products such as:

55
House holders policy , Medi-Claim Policy , Personal Accident Policy
and Motor Policy.

UNION HEALTH SURAKSHA

A Comprehensive Health Insurance customized to cover healthcare

needs of customers of Union Bank of India. The key features are
listed below:
Key Features:
No pre-policy medical test; coverage is only based on confirmation on
health details at the inception.
Complimentary Annual Health Check-up for two adult members
regardless of claim history.
Attractive range of sum insured up to Rs.10 lakhs.
No premium loading on renewal even if claim made.
No Co-payment.
541+ Day care treatment covered.
Tax benefit under section 80D.
Cashless Claims Settlement in 5200+ network hospitals.
Major Diagnostics Cover includes Medical Expenses incurred in
respect of the Insured Member for undergoing MRI or CT Scan
Named aliment
Any Claim for or arising out of any of the following Illnesses or
Surgical Procedures shall not be admissible during the first 24
consecutive months from the Cover Start date:
Arthritis (if non-infective), Osteoarthritis and Osteoporosis, Gout,
Rheumatism and Spinal disorders, Joint replacement Surgery;

56
Benign ear, nose and throat (ENT) disorders and surgeries (including
but not limited to adenoidectomy, mastoidectomy, tonsillectomy and
tympanoplasty), nasal septum deviation, Sinusitis and related
disorders;
Benign Prostatic Hypertrophy;
Cataract;
Dilatation and Curettage;
Fissure / Fistula in anus, Hemorrhoids / Piles, Pilonidal Sinus, Gastric
and Duodenal Ulcers;
Surgery of Genito urinary system unless necessitated by malignancy;
All types of Hernia, Hydrocele;
Hysterectomy for menorrhagia or fibromyoma or prolapse of uterus
unless necessitated by malignancy;
Internal tumors, skin tumours, cysts, nodules, polyps including breast
lumps (each of any kind) unless malignant;
Kidney Stone/ Ureteric Stone/ Lithotripsy/ Gall bladder Stone;
Myomectomy for fibroids;
Varicose veins and varicose ulcers.
Pre-existing Diseases means any condition, ailment or Injury or related
condition(s) for which the Insured Member had signs or symptoms, and
/ or were diagnosed, and / or received Medical Advice / treatment
within 48 months prior to the first Policy issued by RHICL.

MEDICLAIM INSURANCE

Mediclaim Insurance Product in tie-up with The New India Assurance

Co Ltd,which will provide the insurance cover. Scheme available for
Union Bank Customers, irrespective of the fact whether they are
maintaining SB/CD/Deposit Account or having Demat, Borrower
57
Account, Debit Card and Credit Card. Group Floater Insurance for a
family of maximum four persons (Customer, his/her spouse and two
dependent children) . Entry up to 65 years of age and it can be renewed
throughout his life. Sum Assured is offered in the range of Rs
1,00,000/- to Rs 15,00,000/- per family, as per the Insured’s desire.
Very competitive premium due to group-floater nature of the product.
The premium for health insurance is eligible for Income Tax Benefit
under Sec. 80D. The tax benefits are subject to changes as per the tax
laws.

UNION DEMAT

WELCOME TO UNION DEMAT

Union Bank of India now offers you the power of the value-added,
service-oriented Demat account - Union Demat. Union Bank is a
Depository participant of Central Depository Services Ltd.
To carter to your individual needs as diverse as your portfolio, Union
Demat will empower you with hassle-free, fast and accurate electronic

58
transactions. Plus you get Union Bank's quality service which you are
used to, at all times.
UNION DEMAT: Conduct hassle-free transactions on your shares.
Manage your securities at your fingertips.
WHY YOU NEED UNION DEMAT
Today, physical securities are converted to electronic book entries by a
Depository. Union Bank of India as a Depository Participant will
deliver and/or receive securities on your behalf using your Union
Demat account. According to the Depository Act 1996, the investor has
the option to hold shares either in physical or electronic mode. SEBI
has notified a list of securities where transactions will take list of
securities where transactions will take place only in the electronic
mode. Thus, you need Union Demat to transact such securities.
However, you could later rematerialise the electronic securities and
hold them in physical form.
WHO CAN OPEN A UNION DEMAT ACCOUNT ?
An individual, Non-Resident Indian, Foreign Institutional Investor,
Foreign National, Corporate, Trusts, Clearing Houses, Financial
Institution, Clearing Member, Mutual Funds, Banks and Other
Depository Account.
THE PROCEDURE FOR OPENING A UNION DEMAT
ACCOUNT
You just have to fill up an Account Opening Form, submit a photograph
of the applicant along with a photocopy of Driving Licence / Election
ID Card / Passport and your Demat account number will be intimated
to you immediately on completion of processing of your application.
Besides, you also get additional benefits designed for your
convenience. You will receive Transaction Statements and all other
additional statements from time to time. A Nomination facility,
Freezing / Defreezing facility etc are also available.

59
DEMAT ACTIVITY INCLUDES:
Opening and maintaining of Demat Accounts , Dematerialization
Rematerialisation , Purchases , Sales , Pledging and unpledging and
Safe custody .
HOW THE SCHEME WORKS
Submit the application form in a prescribed format to the branch.
Mention beneficiary bank and branch name with Indian Financial
System Code (IFSC). The beneficiary bank's branch should be
registered with the Reserve Bank of India under its RTGS system.
Message will be sent in electronic form in a highly secured manner
through Reserve Bank of India to beneficiary bank’s branch.
Credit to beneficiary’s account will be made within 2 hours from the
receipt of message by the beneficiary's banker.
UNION DEMAT is one more value-added service offered by Union
Bank of India for you, our valued customer. We have always focussed
on customer service and satisfaction. We are committed to meeting all
your needs, and would only be too glad to tell you more about Union
Demat. So come, let us enter a new phase in securities management and
dematerialize financial assets "the Union Demat way".
All our Demat account holders can avail the net-based facilities ‘Easy’
& ‘Easiest’ provided by CDSL.
Union e-Demat offers you online access to your Demat account through
a single log-in to its internet banking service. You are able to do the
following:
1. See your Account Details
2. See your Demat Holdings
3. Get the statement of Account for a period
4. See Billing Details
5. Request for slip book

60
6. Report loss of slip
All that you need to have to avail this service is the access to the internet
banking service of Bank, Union e-Banking, which is given free of cost
to customers of Bank’s CBS branches. Visit your branch and request
internet banking facility. We will make available the entire information
on your Demat account on 24x7 basis.
ONLINE TRADING ACCOUNTS
This facility lets you trade in the comfort of your home or office. No
need to give Cheque / Drafts. You can trade with complete ease without
needing the assistance of others.

GOVERNMENT SAVING SCHEMES

PUBLIC PROVIDENT FUND

Eligiblity for opening account

The scheme is open to individual and account can also be opened on
behalf of minor child as a natural / legal guardian.
Subscription
Minimum amount rs.500/- and maximum rs.1,50,000/- in a financial
year .
Period
Minimum period is 15 years and can be extended in a block of 5 years.
Rate of interest
As per govt. Notification from time to time (on quarterly basis).
Http://www.unionbankofindia.co.in/government-saving-scheme.aspx
Withdrawal from the fund
Partial withdrawals are allowed after the expiry of 7 financial years.

61
In case of medical emergency or child education, account can be closed
after 5 years.
Loans
After the expiry of one year but before the expiry of 6 financial years
from the end of the year in which initial subscription was made, a loan
of 25% of the credit balance at the end of the second year immediately
preceding the year in which the loan is applied may be availed of by
the subscriber.
Nomination
Nominations of one or more persons are allowed except in the account
opened on behalf of the minors.
Tax concessions
Deposits in the account are exempted under section 80-c of income tax
act.

Sukanya Samridhhi Scheme

Who can open the account:
A natural/ legal guardian on behalf of a girl child.
Age Limit
Till a girl attains an age of 10.
Maximum number of accounts:
Upto two girl children or three in case of twin girls as second birth or
the first birth itself results in three girl children.
Minimum and Maximum Amount of Deposit:
Min. Rs.1,000/- of initial deposit with multiple of one hundred rupees
thereafter with annual ceiling of Rs.1,50,000/- in a financial year.
Tenure of the Deposit:

62
21 years from the date of opening of the account.
Maximum period upto which deposits can be made:
15 years from the date of opening of the account.
Interest on Deposit:
As notified by the GOI, compounded annually with option for monthly
interest pay-outs to be calculated on balance in completed thousands.
http://www.unionbankofindia.co.in/government-saving-scheme.aspx
Tax Rebate:
As applicable under section 80C of the IT Act, 1961.
Irregular Payment/ Revival of account:
By payment of penalty of Rs.50 per year alongwith the minimum
specified amount per year.
Withdrawal :
50% of the balance lying in the account as at the end of previous
financial year for the purpose of higher education, marriage after
attaining the age of 18 years.
Premature Closure:
Allowed in the event of death of the depositor or in cases of extreme
compassionate grounds such as medical support in life threatening
diseases to be authorized by an order by the Central Government.
In case of marriage of Girl Child, above age of 18 years, the account
can be closed by providing an affidavit and relevant proof of marriage.

NATIONAL PENSION SYSTEM

NPS has been introduced by Pension Fund Regulatory and
Development Authority (PFRDA) to promote old age income security
to all citizens of India including workers of the unorganized sector with
effect from May 1, 2009. Union Bank has been authorized to collect
63
funds under NPS from subscribers. All branches will work under one
branch (which is called Point of Presence).
Apply Online Now e- NPS by Karvy
Features of NPS:
A) Every individual subscriber will be issued a Permanent Retirement
Account Number (PRAN) card and having 12 digit unique numbers.
B) Under NPS account, two sub-accounts – Tier I & II are provided.
Tier I account is mandatory and the subscriber has option to opt for Tier
II account opening and operation. The following are the salient features
of these sub-accounts:
Tier-I account: : A non-withdraw able retirement account which can be
withdrawn only upon meeting the exit conditions prescribed under
NPS.
Tier-II account: : This is a voluntary savings facility available as an
add-on to any Tier-1 account holder. Subscribers will be free to
withdraw their savings from this account whenever they wish.

AGRICULTURAL LOAN
Union Bank provides a complete suite for products and services for
Agricultural/ SSI/ Tertiary Sector needs. The range is large and varied,
and tailored for all segments of customers from individuals to
corporate. Lending to Priority Sectors of the economy is a very
important of our advances portfolio.

SHORT TERM CREDIT

The Agriculture sector plays a major role not only in the economy of
our country but also in providing livelihoods to millions of rural folk.
We support the farmer by way of Short term credit for financing crop
production, by helping with purchase of seeds, fertilizers, pesticides

64
etc. All types of crops are supported, from staples like rice to cash crops
like sugarcane and cotton including multiple cropping.

LONG TERM CREDIT

Our Government Business Cell offers a bouquet of products for our
customers: Pension payments, Collection of various Taxes, Deposit
Schemes like Senior Citizens Deposit Scheme & Public Provident Fund
Accounts, Investment opportunities in Government Bonds, Future -
securing Schemes like the New Pension Scheme. In many ways, we are
like a bridge linking the people and the Government.

LOCKERS AND OTHER SERVICES

SAFE DEPOSIT LOCKERS
Safe Deposit Locker facility is one of the value added services provided
by the Bank to its customers. Bank provides specially designed lockers
purchased from reputed manufactures which are kept at specially built
strong rooms at branches for keeping the valuable of hirers.
Safe Deposit Locker facility is available at our various branches across
India. Lockers of different sizes to suit the needs of customers are
available.
Safe Deposit Locker facility can be availed by individuals – either
singly or jointly, Partnership Firms, Companies, Associations and
Clubs.
Safe Deposit Locker facility is available at our various branches across
India. Lockers of different sizes to suit the needs of customers are
available.
Rent for Safe Deposit Lockers is charged annually and rent is payable
in advance. Locker hirers have option to pay 3 years rent in advance.
Locker rent vary depending on location of branch i.e. rural/semi-
urban/urban/metro and size of locker.

65
 COLLECTION OF CHEQUES
Multi City Cheque Book:
Bank issues Personalised Cheque book to all its customers which are
payable at par at all branches of the Bank in India, called as Multi City
Cheque.
With the Multi City Cheque Book, you can withdraw funds by yourself
as well as make payment to people in cities other than at city/town
where you maintain an account.
Benefits:
Withdraw cash from any of our branches across India upto Rs. 1.00 lac
per day.
No need to purchase demand draft thereby savings in time and cost.
Your business associates across India can receive immediate payment
through local clearing, thereby saving collection charges. If they
maintain an account with us, they will receive instant credit.
Payment of your utility bills i.e. for electricity, telephone, maintenance
etc. for an office / home at an outstation centre can be made through
Multi City Cheque.

66