ROLE OF BANKING INDUSTRY For INDIA to become an economic powerhouse, it would not sufficient if one sector alone performs

. The engine of growth has to fire on all cylinders to have broad based shift in income levels. Though the predominance on agriculture has come down, still it provides the biggest pool of jobs. Manufacturing has its own pride of place though its share has been taken

partly by the service sectors envious growth levels. Banks are in a position to contribute for the growth of all the three sectors. This would help in rising income levels, generate savings, augment capital formation and thus be a catalyst for all round growth. The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitization in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online banking, and in electronically enabled exchanges where everything from stocks to currency futures contracts. . The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate. Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services that help individuals and institutions to properly plan and manage. The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitization activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future.

BANK OF BARODA BANK OF BARODA was found by MAHARAJA SAYAJIRAO GAEKWAD of Baroda on July 20, 1908 with a paid up capital of Rs. 10 Lacks. Since then the bank has traversed an eventful and successful journey of almost 100 years. Today Bank of Baroda has a network of 2737 branches spread over 21 countries.

In mid-eighties, the bank of Baroda diversified into areas of merchant banking, housing finance, credit cards and mutual funds. In 1995 bank raised rs.300 Crores through a bond issue. In 1996 the bank tapped the capital market with an IPO of Rs. 850 crores. Bank of Baroda took the lead in shifting from manual operating systems to a computerized work environment. Today the bank has 1918 computerized branches, covering 70%of its network and 91.64% of its business. Bank of Baroda gives high priority to quality service. In its guest for quality, the bank has secured the ISO-9001:2000 certifications for 15 branches. A SAGA OF VISION AND ENTERPRISE It has been a long and eventful journey of almost a century across 21 centuries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda corporate centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate governance. It is a story described in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people- customers, stakeholders, employees, and the public at large- who in ample measure, have contributed to the making of an institution.. MISSION STATEMENT To be a top ranking national bank of international standards committed to augmenting stake holder’s value through concern, care and competence. BOB new logo is a unique representation of a universal symbol. It comprises dual ‘B’ letter forms that hold the rays of the rising sun. They call this the Baroda sun. The sun is an excellent representation of what the bank stands for. It is the single most powerful source of light and energy- it’s far reaching rays dispel darkness to illuminate everything they touch. At the Bank of Baroda, they seek to be the source that will help all their stakeholders realize their goals. The BOB’s customers, they seek to be a one- stop, reliable partner who will help them address different financial needs. To their employees, they offer rewarding careers and to their investors and business partners, maximum return on their investment. The single-color, compelling vermillion palette has been carefully chosen, for its distinctiveness as it stands for

hope and energy. Malaysia shortly. Their new corporate brand identity is much more than a cosmetic change. London.Kong on 2nd April 2007. 16 branches of six subsidiaries and three representative offices in Malaysia. It is a signal that they recognize ad prepared for new business and paradigms in a globalized world. and now offers full banking service through its branch at central. The bank has recently upgraded its operations in Hong. New Zealand. Saudi-Arabia. It has significant international presence with a network of 61 offices in 21 countries including 42 branches of the bank. Tanzania.E.e. Russia etc. At the same time. i. The ‘round the clock around the globe”. U. Brussels and Singapore. PIOs and locals. Mozambique. Dubai. Today it has transforms into India’s international bank. It would also be upgrading its operations to full banking service in china. The bank has presence in world’s major financial centers. china and Thailand. and Botswana. they hope to communicate both.it is meaningful for their many audiences and easily decoded by all. Since then bank has come a long way in expanding its international network to serve NRIs international bank. it has plans extend its reach inn existing countries of operations in UK. Bahrain. New York. Hong-Kong. South Africa. The bank also has one joint venture in Zambia with 9 branches. they will always stay in touch with their heritage and enduring relationship on which their bank is founded. besides this. Qatar. Sri-Lanka. Their customers come from a wide spectrum of industries and background. The bank has plans to open new offices in Trinidad. bank of Baroda is further in the process of identifying/ opening more overseas centers for increasing its global presence to serve its 29 million global customers in still better way. Kenya. Australia and Ghana for which permission/ in principal approvals from host country regulators have been received. Their network of branches spans geographical and cultural boundaries and rural. WIDE GLOBAL NETWORK:Bank of Baroda started its overseas journey by its first branch way back in 1953 in Mombasa. The Baroda sun is a fitting face for their brand because it is a universal symbol of dynamism.urban divides. They also recognize that their bank is characterized by diversity. Isle of Man. . It is also in process of establishing offices in Canada.A. By adopting a symbol as simple and powerful as the Baroda sun.

bank of Baroda is well positioned to offer varieties of services. 115 authorized forex branches and more than 2600 other branches Being the one of largest banks of the country with the maximum number of branches overseas. INDIAN NETWORK The international network is supported by a large Indian network through international business branches. products and financial solutions to cross sections of clients.Here’s a brief look at how international banking with bank of Baroda is both dependable and efficient. Our products suit our client’s banking requirements by virtue of being one of the best banking relationship networks both in terms of strength and spread among the Indian financial entities . Nonresident Indian branches.

RESEARCH OBJECTIVE:MAIN OBJECTIVE: .To learn Retail Financial services of BANK OF BARODA SUB OBJECTIVE: .1) Studying the aspects of BANK OF BARODA 2) Studying the lending proposition of BANK OF BARODA 3) To understand BOB KYC norms & their services. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems. A good research design will ensure that the marketing research . RESEARCH DESIGN:A framework or blueprint for conducting the marketing research project.

organizations.project is conducted effectively and efficiently. such as consumers. CONCLUSIVE RESEARCH:Conclusive research can be done by following method : (a) Descriptive research  Survey method  Observation  Single cross sectional and longitude (b) Causal research DESCRIPTIVE RESEARCH  To describe the characteristics of relevant groups. or market areas. which has as its primary objective the provision of insights into and comprehension the research. the information is getting from internet and bank website only. salespeople. (a) Secondary data  Primary data  Secondary data (b) Qualitative methods  Depth interview  Focus group  Projective techniques Analysis:We have use Secondary data. Exploratory research can greatly benefit from use of the following methods. . CLASSIFICATION OF RESEARCH DESIGN 1) EXPLORATORY RESEARCH 2) CONCLUSIVE RESEARCH EXPLORATORY RESEARCH:Exploratory research is one type of research design. Typically. a research design involves the following components.

. Analysis:We have conducted interview for survey. RITA DESAI. To estimate the percentage of units in a specified population exhibiting a certain behavior.  To determine the degree to which marketing variables are associated. And from her we have analyzed that the How protection is provided to customer at BANK OF BARODA? And also the credit recovery from the customer.  To determine the perceptions of product characteristics. We have conducted interview with BANK OF BARODA manager MISS.

meet a cross section of the customers to discuss all issues and problems. once in a month. The Finance Ministry has been decided by the Bank that all Branch Managers and Regional Managers/Zonal Manager should. The details of deliberations at such meetings should be advised to the Regional Authority.PUPOSE OF THE RELATIONSHIP:1. This effect should be displayed at a prominent place at the branch premises. .1 Customer’s motivation to hold banking facilities : ➢ While several steps have been taken to improve the customer service.

1 Customer Relations Programmes or Delivery channel between customer & organization : ➢ Branches should convene quarterly meetings of selected customers representing different walks of life for discussing their problems. custodian etc. In such cases. 1. agent. • However. lesser. The banker. principal. as illustrated below: • Sr. • In the case of all deposit accounts. in such cases is essentially that of "a debtor and creditor" respectively. it is possible that certain issues cannot be resolved at the branch level. In the case of any loan/advances account. also acts as a bailee. suggestions etc.➢ Though it is sincere Endeavour to redress all customers' grievances. 1. thus. in addition to opening of a deposit/loan account. The relationship between the Banker and the customer. with the variety of services rendered by the banks. Transaction Relationship--No Nature of Transaction Relationship of the Bank _____________________________________________________________ . he enters into an agreement/contract. so that he may participate in the meetings or depute an official if need be. ➢ The details of deliberations along with a list of customers invited/participated should be furnished to the Regional Authority.1 Importance of the Contractual relationship : 1) Relationship between banker and customer: • When a 'customer' opens an account with a bank. the relationship becomes more wide and complex. ➢ A few pensioners or representatives of pensioner's association should also be called to such meetings.. the banker is the creditor and the customer is the debtor. 'Banker' is a debtor and the customer is the creditor. Dates of such meetings should be advised to the Regional Manager well in time. the issues should be referred to the Regional Authority with full details. trustee. Branches are authorized to incur coffee/tea expenses at such meetings. depending upon the type of services rendered and the nature of transaction. depending upon whether the account opened is a deposit account or a borrower account.

2). (b) the customer closing the account. insolvency. banking as a business activity has to depend upon its customers be it for mobilizing deposits or deployment of resources. Termination of relationship between a banker and a customer: The relationship that is created between a bank and a customer. (c) the closing of the account by the bank after giving due notice. is the task to define and . While some may come voluntarily and become customers. not only to create customers. on the other gives rise to several obligations on the part of the banker and also confers numerous rights associated with it. Thus. primarily banks are required to attract the customers. Bank marketing.(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) • Deposits Loans/Advances Bills/TT/DD/MT Bills Purchased/Discounted Bills for Collection Safe Deposit Locker Safe Custody Credit Investigation Executor & Trustee Custodial Services Debtor Creditor Payable Debtor Holder for Value Agent Lesser Bailee Referee Trustee Custodian These numerous kinds of relationship between the bank on one hand and the customer. therefore. • • • The key task of the Bank is. comes to an end with (a) death. as above. Customers are not created automatically. lunacy of the customer. The customers are attracted through promises and held through proper delivery of the promises. but also to hold customers. therefore. 1.1 MARKETING OF SERVICES: Introduction: • The business of banking is defined as the mobilizing of deposits and deployment thereof to generate profit. (d) the completion of the contract or the specific transaction.

but also to retain existing customers. orientation and culture among the employees for delivering the services/products to the satisfaction of the customers. nationalized banks like ours. distinctive and desirable manner not only to attract new customers. Developing appropriate services and products to suit the needs of the customer. there is now a distinct need for the banks to position their products/services in clear. Even existing customers are shedding their traditional loyalty to their banks and do not mind shifting to other banks who offer better and competitive services. However. • 1) Why Bank Marketing : • Bank as a commercial organization has to operate in such a way to generate profits. have a more important role to play as a catalyst for economic development through channalising the savings of the people and deploy the resources.. Determining systems. . taking particular care of the under privileged class of people. Communicating/propagating the services/products to present and potential customers. Gone are the days of walk in business. Setting up suitable channels for delivering the products /services. Developing proper attitude. 1) Functions of Bank Marketing : Based on the definition of Bank Marketing as above. • With the liberalisation of the economy and new private sector banks being allowed to open. procedures and prices of such products/ services. the opportunities for an investor to deploy his savings have become wider. Researching the efficacy of the existing services/products and Understanding the changing needs of customers. the broad functions of Bank marketing could be described as under : • • • • • • Identification of customers needs. mutual funds etc. financial and service related needs. Besides. • Thus. with growth of non-banking financial companies with booming capital market.design appropriate promises to the customers and ensure the delivery of the same to the satisfaction of the customers.

who form a ready captive customer base with good potential. It has to be a collective effort of a team headed by a leader who has leadership qualities. Branch Manager should devote as much time as possible to meet as many customers as possible. direct door to door canvassing. If necessary. issuing of pamphlets etc. your customer base etc. employees of public sector undertakings. guide them properly and achieve the goals. a Branch Manager has to set an example in motivating the team and lead them from the front. So. Efforts should be made to contact staff. • • • • Identify specific staff members for specific task and delegate authority and fix responsibilities. Marketing cannot be an individual effort. Efforts should be made to concentrate on tapping low cost savings/ current deposit a/c as this offers an excellent source of steady deposit at very low cost. corporate offices. government institutions etc. . Indent for and collect publicity material on various schemes/services from Regional Office/Head/Central Office and keep them handy. So. • Identify the segments of the locality/existing customers to whom the products/services are to be marketed. • In the customer service meeting chalk out a strategy for marketing of the service through celebration of special weeks. ensure that all the staff members are well versed with the various products/services. Branch Manager should devote due attention to this aspect. is essential.1) Tips for Bank Marketing : • Understand and acquire full knowledge of the various products/services offered by the bank. For this an environment study of the locality. • • • Proper upkeep of the premises contributes to a favorable impact on the customer.

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TYPES OF CUSTOMERS:2. in the opinion of the Branch Manager / Joint Manager. of understanding what he/she does. and current accounts can be opened in the name of minors of 14 years of age and above. .1 MINORS: 1) Who is a minor: A minor is a person who has not attained 18 years of age. therefore. Where the court appoints a guardian of is person or property. 2) Accounts opened by minors in their single name: Savings Bank and all types of term deposit accounts can be opened in the names of minors of age of 10 years and above. a minor attains majority at 21 years of age. According to the Indian Contract Act. subject to following terms and conditions:(I) The minor should be able to read and write and be capable. before he completes 18th year. a minor is not capable of entering into a valid contract and a contract entered into by a minor is void. be very careful in dealing with a minor and take all due precautions. Branches should. 1872.

as is applicable and necessary. (b) is of sound mind and . Savings Bank or Recurring Deposit Account. (a) if he is of the age of majority. the amount can be drawn in cash by the minor. should be signed by the minor in the presence of an official of the branch. Information. 2. the application form. Accounts opened by minors through natural guardian/jointly with them: father is the natural guardian of the property of a minor and even on death of the minor's father. (iv)Amounts tendered under various schemes of time deposits should always be in cash. in person (subject to the rules discussed in the chapter on "Time Deposits") or may be credited to Current Account or Savings Bank Account in his/her sole name. either of the guardians can be accepted as the natural guardian and the accounts can be opened. It is not necessary for the minor to present himself in person for receiving payment. (v) Operations should be permitted as follows under various types of accounts: (a) Current Accounts: Chequebook may be issued to minor. chequebook may be supplied conforming to the existing rules relating to the facility of withdrawals by cheques. It is not necessary then for the minor to present himself in person for receiving payment. (c) in the Term Deposit Receipt in case of Term Deposit Accounts. mother will not become the guardian. between the ages 10-14. (b) Savings Bank Accounts: On request. a. (c) In case of Term Deposit Accounts :On maturity. recording. etc. : (I) The birth date of a minor should always be: (a) in the account opening form.(ii) The account\t opening form.1/. who should be able to identify the minor or to whom the minor should be properly introduced by the guardian. and. specimen signature card and the ledger account in all types of accounts and in a special diary. For minors of other religions other than Hindu minors. Joint accounts of minors: No account can be opened in the names of two or more minors jointly b. (iii) The maximum amount that can be accepted in any such accounts of minors.2 INDIVIDUALS:An account in a bank may be opened by any person who is legally capable of entering into a valid contract and applies to the bank in proper manner. c.lack. should not exceed Rs. (b) in the pass book in case of Current.

transfer/ closure of account. (ii) Instructions regarding mode of operations. operations in the account must be stopped immediately 6) Insolvency of a joint accountholder:(I) The branch must indicate the source of information and the details of the alleged act of insolvency. . minority. idiocy. whatever be the mode of his signature. lunacy. if any. balance “ will be payable to. and payment in case of death of a joint accountholder should be obtained clearly. 1872. Section 45 of the Indian Contract Act. cheques will be signed by.3 JOINT ACCOUNTS:1) JOINT ACCOUNTS OF INDIVIDUALS:Accounts of two or more individuals.(c) is not disqualified from contracting by any law due to insolvency. cheques the will be signed by. No two accounts should be opened in the same name 2. will be deliverable to: Anyone/any two/any three/all jointly or survivors jointly or last survivor 4) DELEGATION OF POWERS BY JOINT ACCOUNT HOLDERS:All the joint accountholders should sign the mandate letter or a power of attorney If all the joint accountholders have power to operate on the account to one amongst themselves 5) Death of a joint accountholder:if account shows a debit balance. 2) Opening of a joint account:(I) All the persons intending to open the account must sign account opening form. governs joint accounts. are called joint accounts. and securities. Father's/Husband's name of the accountholder should also be obtained. who are neither partners nor executors or trustees. drunkenness etc. (a) Either of us or survivor (b) Both of us jointly or survivor will be payable to (ii) In case of a joint account in three or more names:"Account will be generally operated upon by. The full name of the accountholder should invariably be obtained in the account opening form. (ii) The branch should stop all operations on the account on notice of presentation of an insolvency petition against any one of the joint accountholders. 3) Operations in the joint account:(I) In case of joint accounts in two names: "Account will be generally operated upon by.

A list of the current trustees and the authority appointing them as trustees and a certified copy of the resolution signed by all the trustees in regard to the conduct of the account should also be obtained. 1) Documents to be obtained:Trust accounts should be opened only for good parties. cheques drawn by the solvent parties on the account should also be returned 7) Lunacy of a joint accountholder:On receipt of notice of lunacy of any joint accountholder. provided the deceased trustee has in his will specifically authorised such an appointment.(iii) In the event of one of the joint parties being involved in insolvency proceedings. cheques should be paid only on joint instructions. provided the overdraft was created by a cheque drawn by the said joint accountholder. 5) Provident fund:- . strictly in terms of the trust deed. 3) Trust for specific period/purpose:It may be that certain trusts are only for a specified period or for a specific purpose. Trustees have no implied authority to borrow or pledge trust property. The executor. It should obtain an account opening form. 2) Trustees to act jointly:All the trustees must act jointly.4 Trustees:"The bank does not recognize trusts" does not mean that no account can be opened in the name of a trust. signed by all the trustees and permit operations thereon. In respect of any facility allowed in joint account. Bank can set off the credit balance in the individual account of one of the accountholders against an overdraft in the joint account. 8) Bank's lien on balances in joint account:Under Bank's general lien. the documents should be signed by all the accountholders. the trust property passes to the other trustees as per the provisions of the trust deed. The bank should ensure that the terms of the trust deed are in no way violated. 2. has the right to appoint a new trustee. 4) Death of a trustee:On the death of one of the trustees. All public trusts are required to be registered under Public Trust Act of the respective state. however.

State Govt. When a trust is registered. which regulates such trusts in the States of Maharashtra and Gujarat. Income Tax PAN Card. acts have been passed by some States e.Provident fund accounts are to be treated as trust accounts. . of India.g. driving license. The due diligence expected under KYC procedures involves going into detail. Bombay Public Trusts Act. (iii) Thus this is not a responsibility which ends with the opening of the account and monitoring of transactions in the initial few months of opening of the account Obtaining documents like passport. It involves going in to the purpose and reasons for opening the account. armed forced ID cards. source of wealth (net worth) of the person opening the account and sources of funds flowing in to the account. The customer identification should entail verification through an introductory reference from an existing account holder / a person known to the bank or on the basis of documents provided by the customer. accompanied by signature verification and Photographs would help establish the identify of person opening the account. anticipated turnover in the account. a certificate to that effect issued by the concerned Commissioner of Income Tax. If a provident fund is recognized by the income tax authorities. 1950. 6) Religious and charitable trusts:To regulate public religious and charitable trusts. ID Card issued by Govt. but would not be sufficient to prepare a profile of expected activities in the account. KNOW YOUR CUSTOMER (KYC) GUIDELINES (I) “Know Your Customer” (KYC) procedure should be the key principle for opening an account of an individual/corporate. (ii) It must be noted that the policy of the Know Your Customer guidelines go beyond merely establishing the identity of the person and satisfying about his credentials by obtaining an introductory reference from a known person.

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whether individual or firms or companies . 3. open accounts or conduct significant business transactions.who establish relationships. or who have provided information that contains significant inconsistencies which cannot be resolved after due investigation. This is done by recording the information provided by the customer covering the elements of his identity( i.e. CST/ST registration papers etc. In the context of KYC. Name and all . commensurate with assessment of risk posed by customers’ expected use of bank’s products and services like copy of trade license. KYC norms so as to prevent occurrence of frauds. Branches have been advised to comply with ‘Know Your Customer’ i.1 KNOW YOUR CUSTOMER : • Determine and document the true identity of the customer..1 CUSTOMER IDENTIFICATION Identification is the act of establishing who a person is. Obtain basic background information on customers.KNOW YOUR CUSTOMER (KYC) NORMS: Reserve Bank of India has issued instructions from time to time relating to proper identification of account holders and the need for compliance of extant system and procedures to help in preventing frauds. identification means establishing who a person purports to be. • Obtain and document any additional customer information. 3.e. • Protect the bank from the risks of doing business with any individual or entity whose identity cannot be determined or who refuse to provide information.

(e) Other personal details e.PRE SANCTION/POST SANCTION Verification of identity is the process of proving whether the person actually is who he claims to be. (g) Other extant guidelines. (c) Source of income/ annual income.g. and the address at which they can be located). must also be followed without fail: . 3. House etc. (a) Employment details. not only in case of applicant borrower but also in respect of the guarantor. length of service.2 CUSTOMER VERIFICATION.especially in case of our retail lending schemes. job specifications. as under. (b) Proof of residence of the applicant borrower and the guarantor proposed.5 CASH TRANSACTIONS Cash transactions of Rs 10 lacks and above in any advance account are to be recorded and reported to the concerned Regional Office on fortnightly basis. Branches must obtain following. name and address of the employer.4 DOCUMENT VERIFICATION The documents tendered by the prospective customer should be subjected to close scrutiny and due verification should be carried out by cross referencing and linking with other and by other suitable methods so as to establish the genuineness of the same. In the context of KYC. and verify the same. wherever proposed. 3. verification is the process of seeking satisfactory evidence of the identity of those with whom the bank does business.. This is done by carrying out checks about correctness of the information provided by the customer and also the seller to whom payments are being made. This is further followed up by proper introduction. be obtained (f) The applicant borrower is interviewed and detailed remarks of such an interview be made in the application form itself by the officer concerned who interviewed him/her under officer’s signatures and mentioning date of interview and date of putting the remarks.other names used. Records of all such transactions are to be maintained in separate register and made available to internal/external inspectors/ auditors/concurrent auditors for inspection/specific scrutiny. for considering an application for sanction of an advance. (d) Details of assets owned e. marital status etc. Qualifications. 3.g.

(iv) Obtaining report from existing bankers. (v) Gathering market information etc. (vi) Creating equitable mortgage on the basis of deposit of original title.(I) Obtaining report on the applicant borrower in form 135 and verification thereof. (iii) Asset verification and verification of end use. (ii) Legal opinion and scrutiny of documents/title deeds. .

ONLY Interest paid on the minimum balance during the month Minors. PF and Trust etc. Pensioners. Minors over 14 years.2 CURRENT DEPOSIT: FOR BUSINESS MEN : Suitable for: Traders. Corporate. Individuals etc. Businessmen.DEPOSIT PRODUCTS:1) Savings bank deposit 2) Current account 3) Fixed deposit 4) Institutional wholesale deposit 5) Baroda rawarawa (recurring) deposit 6) Senior citizen savings deposit 4. HUF. Associations. Trusts. Societies. . Societies. Clubs. Clubs. Private / Public Limited Companies.1 SAVINGS BANK DEPOSIT FOR MANY OTHER BANKING RELATIONSHIPS: Suitable for: Individuals. Resident Indians. Salaried people. Proprietorship / Partnership Firm. Non- 4. Features: • • • • No minimum and maximum period Cheque book facility available Minimum balance for opening/maintaining an account: F$ 50/. Trusts.

Customer to visit the Baroda Connect website http://www. from Monday to Saturday. Who can avail these Services? Customer of any of the Core Banking branch can avail this facility.m.com 4. Instant Cyber Receipts for the Payment made. Advantages to the customer Time of Payment This is a 24x7 facility and as such. Minimum formalities (hassle free) while opening of your account.bobibanking. Can View past Tax Payments at any point of time. Facility of Overdraft / Loan as per Bank's Extant guidelines. Ease of operation and convenience.Bank’s e-Banking services. Presently the cut off time is 8 p.3 CURRENT ACCOUNT: . Can pay tax on behalf of the individual. firm or company. 500 Easy to operate. The Payments made after the cut-off time will be accounted as next working day’s receipts. Baroda Connect Online e-Tax Payment services are free of charge.Features: • • • • • • • • • • • • • • No minimum and maximum period Cheque book facility available Minimum balance F$. the customers can make the Payments any time. Can make Payment from anywhere. No restrictions on number and amount of withdrawals. Facility is available on 24x7 basis. Customer must also be registered assesses with the Department of Central Excise and Customs ( CBEC ) and assessed code should be uploaded on NSDL site. The customers should be a registered user of Baroda Connect .

Salaried class. allowing transaction without limiting the numbers. Educational Institutions. Voluntary Organization etc. NRIs. Nomination facility available Easy transfer of accounts from one branch to any other branch of the bank. Traders. Access to Safe Deposit Lockers Accepted as a Security by Govt. Businessmen. Voluntary Organizations’. . Professionals. institutions..4 FIXED DEPOSIT: FOR YOUR LONG TERM SAVINGS INVESTMENT LONGER THE PERIOD HIGHER THE YIELD • Suitable for: Individuals.000/From a minimum period of 15 days to a maximum period of less than 12 months. HUF. who need banking facility more frequently. Corporate. You may choose from: • • Baroda Advantage Current Account Baroda Premium Current Account (BPCA) Baroda Premium Current Account-Privilege (BPCAP) 4. Features: • • • • • • • Higher yield than Short Deposit with Easy liquidity. Pensioners. Institutions etc. Prepayment is allowed as per norms 4.5 INSTITUTIONAL WHOLESALE DEPOSIT: AN IDEAL OPTION FOR ALL YOUR TRANSITORY SAVINGS TO MEET YOUR REQUIREMENTS Suitable for: Corporate. This is one of the most basic and flexible deposit options.Current Deposits product is ideal for firm. Department Accepted as margin for Non-fund based facilities. HUF. companies. Features: • • Minimum deposit amount of F$. Charitable Trusts.100. individuals etc.

e. The number of monthly installments can be minimum 12 or in multiples of 12 i. Facility of Overdraft / Loan (subject to minimum of F$500/-) against deposit amount (up to 90% of amount of the deposit) to meet short-term requirement. 4. Where interest payable is less than above deduction no interest will be paid.. 84 and 120.per month or in multiples of F$ 25/-. 48. Students. 36. Installments are accepted at any of the branches of the Bank in Fiji. • However.7 SENIOR CITIZEN SAVINGS DEPOSIT : . Minors. In case of prepayment before one month no interest will be paid. The installment for any calendar month can be paid on or before the last working day of that month. 72. 60. 24. • Prepayment of deposit amount allowed affording interest at @1% below the rate applicable for the period deposit has run with the Bank with a minimum charge of F$10.5% per annum over deposit rate) to meet short-term requirement as per Bank's Extant guidelines. Prepayment of deposit amount allowed affording interest at @1% below the rate applicable for the period deposit has run with the Bank with a minimum of F$ 10. Clubs. Educational Institutions. • • Interest compounded half-yearly Nomination facility available. there will be no Penal Interest. Housewives and others. Features: • • • • • • Minimum deposit amount of F$ 25/.• Facility of Overdraft / Loan against deposit amount (up to 90% of amount of the deposit at @2. Traders / Businessmen. 4. Factory Workers. Associations. Salaried class.6 RECURRING DEPOSIT: FOR A FIXED AMOUNT : REGULAR SAVINGS WITH HIGHER YIELD Suitable for: • Individuals. if the prematurely withdrawn deposit is reinvested for a period longer than the remaining period of the original contract of the deposit. 12.

8 For Charitable Institutions.10% p.000/-. • • • Attractive Rate of Interest @ 1% p. Attractive Interest of 1. Free collections of instruments payable within Fiji. Trusts. Minimum Balance F$20 only.a. It offers unique customized services to both Retail & Corporate customers. deposit and loan accounts View all multiple Account information online with a single userid . Any number of withdrawals without any charge/fee. ReligiousOraganisations. 4. VALUE ADDED SERVICES:1) Baroda Internet Banking: "Baroda Connect" is an internet banking facility introduced as an alternative delivery channel for rendering effective customer service on 24 X 7 basis. All customers can register under Baroda Connect for View and / or Transaction facility Under VIEW facility customer can • • View Account summary of all operative. Free Cheque book facility. Free collection of all Cheques/Instruments Fiji wide. Unrestricted number of transfer of funds from your saving bank account to another account Fiji wide. Voluntary and Sport Organizations’: Salient features : • • • • All foreign remittances would be credited without any charges. Employees Unions.For Senior Citizens Salient features: • • • • • • Total waiver of all Fees / Charges. NGO's.a. Instant Cash payment up to F$ 1. Free Cheque book facility. on Cheque Account & above all Excellent Personalized Service. Free Transfer of funds Fiji wide.

• • • • • Get Account statements Transfer funds immediately or schedule for a future date to self linked and third party Pay through Online Tax . At Baroda Bill Pay customer can pay your bills and make other payments online. anytime. either in cash or by DD/PO/Credit to savings A/c to individual beneficiaries in India within minutes after the sender has effected the remittance. BOB new Money Transfer Service is a boon to NRIs and their families as well as visiting foreign tourists and students in India. 2) Money Transfer Service Scheme . Income Tax etc. Delhi. Chennai. Subscription.Direct and Indirect taxes online such as Excise Duty. Instead of writing a cheque each time. Pune. kiosk. Travel plan booking online Book Rail Ticket .IRCTC Under Transaction facility customer can (in addition to the above VIEW facilities) Baroda Connect facility is FREE of charge Baroda Connect is a fully secured 128 bit SSL site duly certified by Verisign 1) Baroda Bill Pay Baroda Bill Pay . Key Benefits • Instant payment of Foreign Inward Remittance. Currently Baroda Bill Pay is available in Mumbai. through Baroda Bill Pay they can now make All Your Payments at a Single Location. Ahmedabad. Bangalore. etc) and make payments with the click of a mouse. Donations.utility bills like electricity. In a strategic tie-up. Customs Duty.is a useful service that provides you a single point of contact for all your payment needs. now they can use any device connected to the Internet (computer. Pay through Baroda Easy Pay .Western Union Bank of Baroda is committed to continuously enhance its offerings with innovative products & services leveraging advanced technology to provide maximum banking convenience to its customers spread around the globe. Hyderabad and Kolkata. Bank of Baroda brings inbound instantaneous inward remittance to customer doorsteps under Money Transfer Services (MTS) Scheme of RBI. mobile etc . . In effect. Service Tax.

The services are supported by the highly professional team to offer you complete peace of mind. the Bank has launched an Online International Money Transfer Service – “Baroda Remit Xpress”. No charge is levied to Beneficiary. 1) Baroda Remit Xpress In keeping with the Bank’s goal of emerging as a true international bank of India. UK and Eurozone. Bank has enhanced the offerings to the NRIs.• • • Hassle free payment to beneficiary against photo identification. 2) NRI SERVICES . It would provide NRIs a unique and robust online remittance solution from USA. Neither the sender nor the receiver has to have a Bank Account.

Hence lending used to constitute major portion of resources deployment.1 WHAT IS LENDING: When a bank agrees to place funds at the disposal of a borrower. either against a tangible security or not.2 NEW AVENUES AVAILABLE: (i) Traditionally banking is associated with raising of resources from public to lend them to needy and deserving borrowers. repayable over a period of time at agreed intervals. . but against a promise to repay the amount at a future date with interest for the amount used for the period.LENDING TO RETAIL CUSTOMERS:5. 5. repayable on demand or 'Term Loan'. where against security of stocks or receivables 'limit' upto sanctioned level of lending is made available to the borrower in a form of running account allowing withdrawals upto the limit as per his requirements. The lending or placement of funds can be by way of 'Demand Loan'. bank is said to have lent the money. It can also be by way of an overdraft where a 'credit limit' upto the amount to be lent is set in the current account or a 'cash credit account'.

In this case. on which bank can earn handsome commission.5 % are deployed in meeting statutory requirements. poverty alleviation and nation building and has helped many small scale industrialists. 5. banks sometime invest in gilt edged or government/government backed securities over and above minimum requirement. small borrowers. (vi) It is.(ii) With the government/Reserve Bank of India using the two tools of credit control. discount and commission.5 VARIOUS METHODS OF LENDING : . there could be a demand on bank's resources from this avenue. letters of credit etc. namely maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). since a judicious investment can earn the bank very good returns on the funds deployed. bank earns lease rentals which are quite attractive. because only these banks can make credit available to needy. (iii) The borrowers to whom banks finance. This has opened up a new avenue.3 WHY LENDING: Lending by banking sector. by applying for new shares. (iv) Besides meeting the statutory requirements. could be deployed in various ways and it need not deploy its resources only by way of lending. (iv) Banks also get non-fund based credit business from these customers like guarantee. therefore.5% of Net Demand & Time Liabilities (NDTL) and SLR presently 25% of NDTL by way of cash. The banks are required to maintain CRR presently 4. like remittances. (v) Leasing of assets is an activity which banks are now allowed to undertake. 3 balances with Reserve Bank of India or invest in government debt securities. foreign exchange. a large share of deposits collected is 'preempted'.e. besides getting tax incentives. (iii) Now banks are also permitted to invest in shares of corporates upto a certain limit via primary market route i. (ii) It earns substantial income to the bank by way of interest. Banks have to play an important role in employment generation. when the yield on such securities is attractive. collection. assisted farmers and encouraged small borrowers/artisans to sustain their small businesses. Hence out of the total funds collected roughly 29.4 IMPORTANCE OF LENDING: (i) It constitutes major part of bank's assets. 5. Hence. merchant banking etc. especially by public sector/ nationalised banks assumes greater importance. 5. very essential to understand and appreciate the fact that in today's context the amount raised by the bank. generally give deposit and other remunerative business to the bank.

the current ratio of the concern should not be less than 1.33:1.17:1. Following are some of the methods of lending introduced in banks from time to time: (a) Tandon / Chore committee recommendations (i) First method of Lending (ii) Second Method of Lending (b) Nayak Committee Recommendations for SSI Industries (c) Vaz Committee Recommendations (d) OUR BANK’S PERMISSIBLE BANK FINANCE SYSTEM VARIOUS METHODS OF LENDING: The extent upto which the working capital gap can be financed by the bank. be working capital gap less the amount to be so contributed by the borrower. the maximum permissible bank finance would get reduced to that extent. will depend upon the method of lending (A) First Method of Lending (I METHOD): Under the first method of lending. To ensure compliance under this method of lending. The balance amount i.crore. (C) Nayak Committee Method : (a) Under this method originally proposed for SSI borrowers and later made applicable for all borrowers with Fund based Working Capital limits upto Rs. . the computation is made at 20% of projected gross sales as under. 75% of the working capital gap represents the maximum permissible bank finance (MPBF). The maximum permissible bank finance will. Where the net working capital is more than the stipulated minimum contribution. Where the net working capital is more than the amount required to be provided by the borrower. (B) Second Method of Lending (II METHOD) : The second method of lending stipulates that the borrower is required to contribute a minimum of 25% of the total current assets from the long term sources(Net Working Capital) irrespective of the working capital gap.(i) Various committees have been set up by RBI to suggest the methods of lending. therefore.e. the borrower is required to contribute a minimum of 25% of the working capital gap from the long term sources. the maximum permissible bank finance would get reduced to that extent.5/. To ensure compliance under this method of lending. the current ratio of the concern should not be less than 1.

Pre. nursing and rehabilitation of sick but viable units and recovery process are important steps in any credit deployment. post sanction inspection and monitoring.6 CREDIT MANAGEMENT: 1.5.5. 1. post sanction scrutiny.2 FOLLOW-UP: It is very essential that not only fresh advances are granted judiciously. . completion of documentation. sanction.1 HEALTH OF CREDIT PORTFOLIO: Expansion of credit without looking to the aspect of health of the credit portfolio will not prove to be profitable.(b) The gross working capital is uniformly assumed to be a minimum of 25% of projected gross sales. disbursal. but the existing advances already sanctioned / disbursed are also followed up / reviewed at regular intervals. the borrower is required to maintain a margin equivalent to 20% of gross working capital (D) PERMISSIBLE BANK 5. noting of signs of problems in the account and sorting them out looking for indications of incipient sickness and taking steps for averting them.sanction appraisal. On this.5. timely review. 1.3 STAGES IN CREDIT DEPLOYMENT: Some stages can be distinguished in credit deployment.

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1 Banks Paying Customers to Take Overdraft Protection: 1. If you set up overdraft protection the bank will give you $25. If you set up direct deposit the bank will give you $100.Protection:6. many poor households in India lack access to financial services.2 Financial consumer protection in India The Report of the Committee on Financial Inclusion reveals that. despite a large banking system and cooperative credit network. If you activate online bill pay the bank will give you $25. 3. Nearly half of bank customers responding to pay a fee for the service to ensure that debit card transactions will be approved even if their account is overdrawn. While the government and Reserve Bank of India (RBI) have taken steps to establish a widely . 2. New federal regulations went into effect on August 15 requiring banks to get permission from customers before paying debit card overdrafts and charging a fee for the service. 1.

ECGC:- It is EXPORT CREDIT GUARENTEE CORPORATION. Today. Many banks do not seek out poor people as customers because poor people typically do not figure into banks’ business strategies to expand and improve their operational and financial performance. It is an instrument that gives a protection to the customer. tend to reduce ATMrelated problems for customers. (ii) electronic banking based on the Internet. Indian banks seem to encourage clients to stay away4 from bank branches even as their clients continue to receive improved financial services. On a global level. repeated cautionary messages to ATM users.000. reduce the time spent by customers putting through transactions. Customer protection issues involving ATMs stem from both technology and fraud. Indian Bank has introduced biometric ATMs to overcome the traditional problems associated with ATMs. internet and mobile phones have made it possible to improve service quality. and (iv) mobile banking. . and security-related screen prompts while using ATMs. This is being tested in rural areas. ATMs and Internet banking address the needs of the urban population..distributed presence of bank branches. only bank-based models are permitted to operate in India Regulators perceive high risks from nonbanks offering banking services.e:. However. Trends in Branchless Banking 2. branchless banking possible beyond the automated teller machine (ATM) network. 2. Services through ATMs.00. i. and reduce traffic in branches. Over the last three years. Branchless banking channels include (i) ATMs.so if the transaction is from bank then bank providing this protection that if the receiver will not give the amount then bank will give the amount. etc. ATMs and Internet banking can also be used to improve access to financial services to the rural poor. India’s large population has made it difficult to ensure financial services are accessible to all those who need them. which has high incomes and little time to spend going to the bank. Bank give protection against exporting. Basically it is for foreign exchange. however. branchless banking has adopted both bank-based and nonbank-based models.If customer is exporting the goods worth rs 50. They have accepted branchless banking as a feasible proposition for acquiring clients and delivering services. (iii) banking correspondents and banking facilitators.1 Branchless banking models directly operated by banks ATMs have caught the fancy of both banks and clients. the Reserve Bank of India (RBI) and the Government of India have adopted financial inclusion as a policy objective and have taken actions to move toward the goal of universal access to financial services. Most new private sector banks in India have more ATMs than branches. better than they address the needs of the rural poor. Remote monitoring of ATMs. Ease of dealing with customers efficiently and the ability to account for transactions in real time has made ATMs an indispensible part of banking. While customer awareness could reduce.

If one person has taken the housing loan then bank will insist him to take insurance. Insurance is the protection basically for loan purpose. i. so after death of that customer his childen will not suffer. by that insurance amount the money can be recover. And his children cannot suffer also. then his children should not have to pay anything for that loan. If bank has given loan to the customer then bank will insist to the customer for taking the insurance. .e:. because if person has died.INSURANCE:it is a protection in loans and advances.

\ Visa Credit Cards.5 years older.Investment Savings Bank Products of Investment Savings Bank: • Certificates of Deposit (CD). Checking Account.5 years old. Funds can be withdrawn by individuals 59.The Passbook Savings Account of Investment Savings Bank is available to any individual. Savings Account. There is no monthly service charge on checking amount and time deposit are offered with higher interest rate of return.Checking account is available to anyone with 18 years of age or older there is no monthly service charge and all funds are insured up to $100.Investment Savings Bank issues VISA Credit Cards to any person above 18 years of age. Reasons for Favoring Investment Savings Bank: • • • • Saving Versus Investing . Minimum credit limit in case of VISA Classic and VISA Gold are respectively $500 and $2000 respectively.Investment Savings Bank CDs are available to any individual. The minimum investment varies from $100 to $500. corporation. There is no monthly service charge on checking account and loan can be taken against the account. They can be cashed at any time .Investment Savings Bank's IRA is available to any earning person who is 18 to 70. organization or corporation.000 Service Charge will be assessed. Interests are compounded daily and are posted quarterly. organization. Individual Retirement Accounts (IRA). CDs of Investment Savings Bank are characterized by a very high liquidity. $25 is required to open and maintain an account. CDs have a term ranging from 7-31 days to 5 years.

Most of the people probably have savings accounts with ATMs to access their hard-earned cash and be able to store away any extra cash in a place a little safer than a mattress. Return is the income from an investment. What investors must understand about risk and reward . 1. etc. Risk is the uncertainty that will receive an expected return Savings are also usually more liquid. for short-term needs such as upcoming expenses or emergencies. and liquidity. established borrowings lines. but they are quite different! Saving: Is storing money safely. Investments may produce current income while the investment through the payment of interest. Unlike bank savings. Diversification of funding sources . A few of you may even have some stocks or bonds. The decision about which investment to choose is influenced by factors such as yield. etc. The rate of returns and risk for savings are often lower than for other forms of investment. such as in a bank or money market account. in hopes of realizing higher long-term returns. Typically. earn a low. the profit is known as a capital gain. fixed rate of return and can withdraw money easily. if inflation is at 4 percent though. 5.This ratio measures the degree to which the bank is funding longer-term assets (loans. dividends or rent payments. Net Non-Core Funding Dependence Ratio . inflation The bank may pay you 5 percent interest a year on money. Investing: Is taking a risk with a portion of savings such as by buying stocks or bonds. stocks and bonds over the long term have returned enough to outpace inflation.Economic conditions. When sell an investment for more than its purchase price. External Forces . That is quickly and easily convert investment to cash. and procedures in place for acquiring internet-based or other forms of emergency borrowing. also called growth or capital appreciation. have a material impact on the need for liquidity going forward.A bank with strong liquidity has a strong core deposit base.) with non-core funding. Saving and investing are often used interchangeably. but they also decline in value from time to time. investment is only growing at a mere 1 percent annually. securities that mature in more than one year. Non-core funding includes funding that can be very sensitive to changes in interest rates such as brokered deposits 4. Levels of liquidity Here are five areas to review to help understand your bank’s liquidity position. competition. marketing efforts. risk.

The trade-off between risk and reward Earning a high return but while taking on very low risk is not possible. even if it is a very small risk. Otherwise. irrevocable trusts and tax-exempt commercial paper. It’s a balance that investors struggle to achieve. Take calculated risks – reward must be compelling Exposing oneself to risk is not something one should do blindly. There is a wide variety of taxefficient vehicles. it is not worth it. It will be help to understand the trade-off between risk and reward. The bank FD will pay a slightly higher return because the government guarantees only part of the deposit so there is the risk of the bank failing. including tax-efficient mutual funds. to generally get high returns only when take higher than usual risk. the company FD will pay the highest return because the risk perceived in lending to the company is the highest growth and income fund growth and income fund Definition Tax Efficiency What Does Tax Efficiency Mean? An attempt to minimize tax liability when given many different financial decisions. then it probably makes sense to take on the risk. However. If the reward is compelling enough. need to take some calculated risks and can’t be totally risk averse. . If want to create wealth . and also help to understand where on the risk-return spectrum some popular investment options fall.to understand that earning a high return at low risk is incompatible. It must be done in the context of what the expected pay-off might be.

Auto sweep: Auto transfer of funds exceeding certain fixed amount to Term Deposit to provide high yield on such funds. free collection of outstation cheques. There is an overdraft facility secured by assurance of term deposit in this savings account. lottery winnings Bank of Baroda Saving Accounts Bank of Baroda has seven types of savings account namely Baroda Centenary Savings Account.25. free Baroda Money Express. These accounts have been designed to cater to the needs of different people. Super Savings Account. etc. as per norms. etc. . Baroda Bachat Mitra can be opened single or jointly. Baroda Salary Advantage Saving Account is a special salary account with an in built overdraft facility for the salaried persons. • Auto reverse sweep in case of need to honour Cheque to Savings account from Term Deposit. etc. The Baroda Centenary Savings Account is a superior savings account with key features like auto sweep facility. Nagrik Bachat Khata. The Savings Bank Account is the simplest deposit option with zero balance facility and is easy to operate. Savings Bank Account. free transfer of funds through mail transfers / telegraphic transfers. auto reverse sweep benefit.ethical investment Hide links within definitionsShow links within definitions LUM SUMS lump sum. However the bank has certain terms and conditions for this account like minimum balance to be maintained. in general. Baroda Advantage Savings Account and Baroda Bachat Mitra.000/-. Baroda Salary Advantage Saving Account. Bank of Baroda : Baroda Centenary Savings Account • • This product is available at all CBS branches in India. The main features of the account include no charges for issuance of demand drafts/ Banker’s cheques. Lump sum payments are often seen in cases of corporate retirement packages. is a single payment which satisfies all of the benefits owed to the recipient. • IMMEDIATE CREDIT of outstation cheques upto Rs. Super Savings Account is for high value resident customers. Nagrik Bachat Khata is a no frill account without any hidden charges. • Free collection of outstation cheques drawn in favour of account holder (postage out of pocket expenses are recoverable). The account can only be opened at banks computerized branches at Metro and Urban centers.

Bring pass book while withdrawing cash from savings bank account through withdrawal slip. to the Branch. their past investment performance and other factors such as fees. 5. Never give your account details. 3. and to share the costs and benefits of doing so. Use nomination facility. pass book and cards. telephone number. 2. etc. Do not keep your cheque book and cards together and ensure proper safe custody of your cheque books. . Collactive investments A collective investment scheme is a way of investing money with others to participate in a wider range of investments than feasible for most individual investors. password or other security information.. Send cheques and other financial instruments by Registered Post or by reputed courier. 1. 7. Do not allow anyone else to use your card. PIN. Inform change of address. password or other security information to anyone unless you know who they are and why they need them and thereafter keep the matter followed up so that the same is not misused. Get pass book updated from time to time. Safe guard:1. Keep your card receipts safe and dispose them off carefully. Collective investments are promoted with a wide range of investment target specific geographic regions Funds are often selected on the basis of these specified investment aims. Note down account numbers. etc. 2. 4. Not to issue cheque without adequate balance/ maintaining minimum balance as specified by the Bank. details of FDR. locker numbers. 8.. 6. separately.Do not keep the blank cheque leaves signed. Interest is paid on Quarterly basis.• • FREE DEBIT CARD.

locker rent and other dues on time. . 6. fixed deposit receipt. 2. 14. Visit our internet banking site directly. 15. Avail standing instructions facility to repeat transactions. A suitable firewall installed in a computer to protect your PC and its contents from outsiders on the internet would be an added security measure. 12. Avail services such as ATM. 13.9. if offered by the branch. We advise you to update your PC with latest anti virus software regularly.. Provide feedback on our services. 3. Pay interest. card etc. Give a notice before canceling the payment of a cheque 18. Do not record your specimen signature either on pass book or on cheque book. you will be responsible for all losses on your account. 17. Bring any deficiency in services to the notice of the branch. 16. 10. RTGS etc. 1. Not to introduce any person under any circumstances who is not personally known to you for the purpose of opening account. 4. We suggest you not to use cyber cafes to access our internet banking site. Inform loss of demand draft. cheque leaves book. immediately to the Branch. If you act fraudulently or show negligence.. ECS. Avoid accessing the site through a link from another site and verify the domain name displayed to avoid spoof websites. Ignore any e-mail asking for your password or PIN. EFT. 5. 11. installments. key of Locker. For Precautions while using internet banking facilities.

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(ii) When a mental incapacity approaches the branch for opening an account. . Therefore. if the branch is satisfied that the person is incapable of entering into a contract.TERMINATION OF RELATIONSHIP:8. the law provides that all the contracts made by a person in a mental incapacity state are void. (iii) Payment of a cheque to a mental incapacity may be made after taking proper witness.1 Mental incapacity: (I) Person incapable of understanding the nature of his action and forming a rational judgment as to its effects upon his interest. the branch should exercise due care and may refuse to open the account.

2 Insolvency: 1)The Bank is bound to stop operations on the account of a customer in the event of his insolvency. it can be paid to the other solvent partners jointly. cheques drawn by it should only be paid to it or its assignees. If there is a credit balance in the account of a firm. 3) If the wife of an discharged insolvent wishes to open a bank account to carry on the business formerly conducted by her husband. (7) As soon as a person is declared insolvent. Declaration of insolvency renders invalid all the transactions entered into subsequently and already entered into within six months. it is advisable to obtain the Official Receiver’s consent before opening the account. Payment of cheques drawn by the firm and payable to a third party will not be in order as such payments cannot be upheld in a court as against the Official Receiver. no creditor can have any remedy against the property of the insolvent in respect of his debts or commence any suit or legal proceedings against the property without the leave of the Court. 4) Insolvency of an agent does not affect the relationship of the principal and agent. After notice of the commission of an act of insolvency by a firm.8. 2) Insolvency of an accountholder revokes the bank's authority to pay the cheques drawn by him and the balance at credit of the account vests with the official assignee or official receiver as from the date of presentation of the petition or from the act of insolvency. for it is their responsibility to account to the Receiver for the insolvent partner's share in the firm's assets. a partner of which has become insolvent.by a partner and by a firm: A cheque signed by a partner known to have committed an act of insolvency should not be paid until confirmation of other partners is obtained. (5) A person is declared insolvent by the court. (6) Branches should not open insolvent’s account nor should money be advanced to an discharged insolvent. The Bank would be justified if payment is made after this date. when he fails to pay his debts. the Bank should register the Court's order and act in terms of instructions contained Therein. As soon as an Official Receiver or an Official Assignee is appointed. The insolvency of a firm involves the insolvency of the individual partners and . During the insolvency proceedings. operations in his existing account should be stopped forthwith and balance of such • Act of insolvency .

The branch must indicate the source of information and the details of the alleged act of insolvency. 8. The Bank would be protected. Insolvency of a director: In case one of the directors becomes insolvent or an discharged bankrupt. he cannot act as a director of a limited company. which were drawn by a partner before his death. Credit facilities extended and standing instructions noted should be cancelled and the position should be explained to the beneficiary concerned. If the deceased is the sole trustee. for the purpose of winding up of the firm. . The branch should not allow further operations in the account by that insolvent director. the trust property passes to the other trustees as per the provisions of the trust deed. Insolvency of a joint accountholder: (I) Insolvency of a joint accountholder cancels any instructions given as regards operations on the account. if cheques are paid after the customer's death but before receipt of notice Death of a partner: Death of a partner dissolves the partnership. Branch should also obtain the confirmation of the surviving partners in respect of cheques drawn by the deceased partner. the branch may honors the same provided the surviving partners do not countermand payment of those cheques. if the account is in credit. has the right to appoint a new trustee. the bank may allow the surviving partner(s) to operate the firm's account.therefore.3 Death: Death of a trustee: On the death of one of the trustees. In case some cheques are presented for payment. provided the deceased trustee has in his will specifically authorized such an appointment Death of a customer: Notice of the death of a customer determines the Bank's authority to pay cheques or act on his other instructions. however. his executor has no right to recover the trust money. The executor. However. all steps a bank takes with regard to the firm's account should also be taken in respect of the personal accounts of the partners. (ii) Instructions from Regional Office should be sought when the branch comes to know that one of the joint accountholders has committed an act of insolvency.

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