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CIRCULAR TO ALL BRANCHES & OFFICES IN INDIA :

Sub : Laghu Bachat Yojna {LBY) Scheme Modification
GIST AND ACTION POINTS
Changes have been made in the fore closure rule & interest on loans against
LBY deposit. The branches may not recover the commission paid to the agents
on foreclosure of the account after 12 months & before completion of 2+
months. Interest on loans to be charged at 8.S p.a. instead of BPLR.
Towards making the LBY operation a viable commercial proposition certain modificationf
changes were made in the scheme vide our Circular No. CHOfDEPf10f200S-06 dated 22.03.2006
and branches were instructed to ensure meticulous compliance of the same.
The matter was further examined and it has been decided to effect modification in the
existing provisions of the Scheme as under :
Existing Provisions Revised Provisions
All other terms and conditions and rules relating to operation of LBY scheme vide our
Circular issued from time to time remains unchanged and shall be followed meticulously by
branchesfoffices. This instruction shall be given effect retrospectively from 1st April 2006.
(P. K. Datta)
Dy. General Nanager (P&D)
CRN
42/2006-07
Circular No.
CHO/DEP/02/2006-07
Dated : 12.05.2006
Head Office
Management Services Division
Planning & Development
10, B. T. M. Sarani,
Kolkata-700 001.
A. K. B.
WE SHALL MAKE UCO A TOP CLASS BANK
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(Cth; mhfUth fUt Wvf{b)
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(A Government of India Undertaking)
HONOURS YOUR TRUST
1. Foreclosure Clause : No foreclosure shall be
allowed before 12 months. No interest shall be
allowed on foreclosure after 12 months and before
compl eti on of 2+ months. However, actual
commission paid to the agent on such deposit to be
recovered from the agent in cases of foreclosure
after 12 months and before completion of 2+ months.
2. Interest on Loan : Interest on loans to be charged
at BPLR calculated on daily balances at quarterly
rests instead of present rate of 8.00 p.a.
1. Foreclosure Clause : No fore-
closure shall be allowed before 12
months. No interest shall be allowed
on foreclosure after 12 months and
before completion of 2+ months.
2. Interest on Loan : Interest on
l oans to be charged at 8.S
calculated on daily balances at
quarterly rests.