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Corporate governance
11. In December 2001 with a view to address the issues relating to Corporate
Governance, the Reserve Bank of India constituted a Consultative Group of
Directors of Banks and Financial Institutions under the chairmanship of Dr.
A. S. Ganguly.
22. The group recommended various measures to make supervisory role of the
Boards of banks and FIs more effective. These included due diligence
procedures for appointment of directors on the board of banks and role and
responsibilities of independent/non executive directors.
33. It is a code of corporate conduct to be followed by the directors which
ensures that corporate body is managed by fostering the spirit of enterprise
and accountability, promoting fairness, transparency and responsibility
towards their employees, customers, shareholders, competitors and the
44. The board and top management meet at specified intervals for timely
exchange of information on the bank's financial condition and management
Credit Information Bureau (India) Limited (CIBIL)
11. Credit Information Bureau (I) Ltd was set-up in January 2001, as a joint
22. CIBIL is a composite Credit Bureau, which caters to both commercial and
consumer segments. The Consumer Credit Bureau covers credit availed by
individuals while the Commercial Credit Bureau covers credit availed by nonindividuals such as partnership firms, proprietary concerns, private and
public limited companies, etc.
33. CIBIL is established with a primary purpose of information sharing between
Banks and Financial Institutions for curbing the undesired growth of NPA.
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44. Banks are required to provide periodical information to CIBIL in the

prescribed format. It helps in compilation of credit information, accessible to
member banks to improve quality of credit proposals, better credit
management and Credit dissemination function
56. Banks, FIs, SFCs, NBFCs, Housing Finance Companies and Credit Card
Companies are Members of CIBIL
67. CIBIL- Access to consumer credit information:
1 Identified branches have been given user ID.
2 The sanctioning authority should confirm in his note having accessed
CIBIL data and the information on borrowers found in order.
3 Consumer Credit information (CIR) fee is Rs.50, for the report which is to
be recovered as upfront fee from the applicant.
8. A Credit Information Report (CIR) is a factual record of a borrowers
credit payment history compiled from information received from different
credit grantors. Its purpose is to help credit grantors make informed
lending decisions quickly and objectively.
Know Your Customer (KYC) Guidelines
Reserve bank of India has now come out with guidelines for KNOW YOUR
CUSTOMER (KYC) with a view to put in place systems and procedures to help
control frauds, identify money laundering and suspicious activities and for
scrutiny /monitoring of large value transactions. The guidelines are also
applicable to foreign currency accounts / transactions.
The objectives of the KYC framework are to ensure appropriate customer
identification. In this connection branches to obtain all information necessary to
establish the identity /legal existence of each new customer, based preferably
on disclosures by customers themselves.
Mainly, KYC norms are for (1) Identification of the customer, (2) Proper
introduction of the customer and (3) monitoring of large value transactions.
(1) Customer Identification Banks to obtain all necessary information to
establish the identity of each new customer based on disclosures by
customers themselves. The easy means would be documents such as
passport, driving license, Armed Forces ID cards, Income Tax PAN card, ID
card issued by Government of India, State Government accompanied by
signature verification and photographs would help to establish the identity
of the person opening the account. Towards this, the following additional
details need to be collected while opening the account.
a. Employment details such as job specifications, name and address of the
employer, length of service etc.
b. Provide details about source of income and annual income.
c. Details of assets owned such as house, vehicle etc.

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1(2) For identification of an individual / corporate - The identification to

be through an introductory reference from the existing account holder / a
person known to the bank or on the basis of documents provided by the
customer. Board of Directors to put in place adequate policies to establish
procedure to verify bonafide identification.
1 (3) Ceiling and Monitoring of Cash Transactions Banks are required to
issue TCs/ DDs/ MTs and TTs for Rs.50000 and above only by debit to the
customers account or against cheques and not against cash. Further the
applicants are required to furnish PAN on application for Rs.50000 and
above. A close-watch to be kept on cash withdrawal and deposits for Rs.10
lacs and above in deposit, cash credit or overdraft accounts and keep
record of details of these large cash transactions in a separate register.
Financial Intelligence Unit (FIU-IND) was setup in Nov.2004 and
reports directly to the Economic Intelligence Council headed by Finance
Minister. The responsibility of FIU includes collecting, analysing and sharing
of information acting as a central repository and coordinating with local and
overseas agencies involved in anti money laudering activities.
Anti Money Laundering
It is conversion of money, which is illegally obtained, so as to make it appear to
originate from a legitimate source. The main objective of the Act is:
1 1. To prevent, combat and control money laundering.
2 2. To confiscate and seize the property obtained from the laundered money.
3 3. To deal with any other issue connected with money laundering in India.
4There are three independent steps or stages in Money Laundering -Placement, Layering and Integration
A) Placement - physical disposal of bulk cash proceeds derived from illegal
B) Layering - process of separation of illicit proceeds from their source by
creating complex layers of financial transactions it conceals the audit trail.
C) Integration re-injection of laundered proceeds back to the economy
Punishment: Whoever commits the offence of money laundering shall be
punished with the rigorous punishment for a term not less than 3
years but which may extend to 7 yrs and shall also liable to fine,
which may extend to Rs.5 lacs.
Legal aspects of Bank-frauds by Dr N L Mitra (Best Practices Code)
1. Banks to prepare Best Practice Code for its officers and staff to provide rule based procedure
system in customer related matters and application of discretionary power.
2. Adequate in-house training system for internalizing the Best Practice Code
and all the directives of the instructions and the regulations.
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3. Issue suitable instructions to all branches/controlling officers reiterating the

need for strict adherence to the laid down system and procedures.
4. Legal compliance Certification process to be enforced for all transactions
exceeding a value limit for each desk especially from each management
category staff for making them accountable.
5. Legal compliance and due diligence audit every year
6. In case exercise of discretionary power an explanation is required to be
given indicating the circumstances warranting the exercise of discretionary
power and whether all due diligence has been taken or not.
7. Build data of management and staff exercising discretionary power recording
all the reasons for such exercise and consequences. A close monitoring of
such exercise discretionary power is required.
8. Incentive and promotion system to have co-relation with data on exercise of
discretionary power and the rationality and appropriateness of such
9. Concurrent/Internal/Statutory Auditors to report simultaneously to Chairman
and Managing Director of the Bank and RBI about any thing susceptible to
be fraud or fraudulent activity or any foul play in any of the transactions.
10. In fraud cases department action to be initiated simultaneously with
criminal action without waiting for outcome of the latter.
Citizens Charter
Citizen Charter gives the customers right as well as their demands on service
from the bank. Citizens charter covers the following:
11. Business hours to be prominently displayed at the branches.
22. Counters to remain attended to during business hours.
33. Space for customers in banking hall to be kept clean and tidy with proper
seating arrangements.
44. Branch premises to be kept clean and hygienic.
55. Time norms for common Banking transactions to be displayed prominently
in the Banking Hall.
66. At large branches May I Help You counters to be located for customers
77. Commencement of working hours of Bank staff to be 15 minutes before
commencement of Banking hours.
88. Banks name board to be clean and visible with suitable lighting
99. Branch authoritys name and designation to be displayed on Name Plate.
1010. Name, address, telephone number and fax numbers of Regional and
Zonal Authorities to be displayed in Banking Hall.
1111. Customers Suggestions to be invited for better customer services.
Basel Capital Accord-II
In 1992 a set of minimum capital requirement which is known as Basel-I was
made effective in India. The accord focused mainly on credit risk. Banks were
required to keep mini 8% of the risk weightage assets as capital. However,
Basel-I had following limitations:
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Same risk weighing for commercial and consumer loans

Ignores differential Asset quality
Does not recognize any risk other than credit risk
Ignores benefits of portfolio diversification

W.e.f. 26.6.2004 a new accord Basel II was implemented which takes into
account credit risk, market risk and Operational risk. From Feb-2005 RBI
advised all Commercial banks to adopt Standard Approach for Credit Risk and
Basic Indicator Approach for Operation Risk. The Basel-II has three pillars;
11. The first pillar- minimum capital requirement : compatible with the
credit risk, market risk and operational risk. The regulatory capital will
be focused on these three risks.
32. The second pillar- Supervisory review system: gives the bank
responsibility to exercise the best ways to manage the risk.
Concurrently, it also casts responsibility on the supervisors to review
and validate banks risk measurement models.

There are two approaches

(1) Standard approach- for credit risk measurement based on credit rating
assigned by external agency. Based on risk, the weightage assigned are as
Sovereign & State 0 & 20, Banks & SCB 20, others 100, Corporates 20 to 150 %, Retail 75%, Residential mortgages 75%, Real Estate150%, Long term rating by credit agency AAA, AA, A, BBB and Below,
Unrated the risk weightage would be 20%, 50%, 100%,150% and 100%


IRB Internal Risk Based Approach: This will assess the risk relating
to borrower (PD), Facility (LGD), exposure at default (EAD) and maturity
of the exposure (M). Operational risk there are three approaches (1) Basic
Indicator approach, where CAR = Gross income x Alpha ( which is 15% at
present) Gross income means net profit + prov. & Contingencies +
Operating expenses Profit on sale of YTM investment, other
income/expenses etc.
The third pillar - market discipline are used to leverage the influence that other market players
can bring. Market Risk includes Liquidity Risk, Interest Rate, Forex exchange, Commodity,
Equity and Country Risk and Trading Book (HTM,HFT and AFS) versus Banking Book. This is
aimed at improving the transparency in banks and improves reporting.
Accord I
Focuses on single risk

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Accord II
More emphasis on banks own internal
methodologies Supervisory review and market

One size fits all

Broad brush structure

Flexibility Incentive for better risk

More risk sensitivity

Banking OMBUDSMAN Scheme:

11. Reserve Bank of India has announced the Banking Ombudsman Scheme,
1995 under section 35 of Banking Regulation Act 1934. It was revised
w.e.f. 14.6.2002 , which has been further revised on 01.01.2006
22. The Ombudsman has the authority to look into the complaint in the
following areas;
1 Any complaint relating to Banking services.
2 Refer the complaint to concerned bank and try to facilitate redressal or
settlement by agreement between the bank and aggrieved party.
3 If complaint is not settled by agreement within the period of one month,
pass an award after listening to both the parties.
4 In the event Bank is unable to comply with the Award for any reason
whatsoever, the Bank shall file a review petition within one month from the
date of receipt of copy of award.
5 Any dispute between banks or bank and its constituents may be referred
to for arbitration provided disputed claim does not exceed Rs. 10 lakhs.
6 The time limit for award is fixed as six months from the date of first
33. For approaching to OMBUDSMAN for banking complaints following are the conditions
Bank has rejected the complaint and/or no reply within one month.
A period of 1 year has not elapsed after bank had rejected the
It is not subject matter already settled by Ombudsman.
It is not pending with any court.
14. All Commercial banks, RRBs and Schedule Primary Cooperative Banks are
25. The appeal against the Award can be filed within 30 days to the Appellate
Authority (DGM RBI).
Consumer Protection Act (COPRA)
11. COPRA was initially enacted during 1986 and implemented w.e.f.
15.4.1987. The purpose of this act was to enable the consumers to enforce
his right as a consumer through simple legal procedures. Further, on 17th
December 2002, an amendment Act 2002 has been passed and
implemented w.e.f. 15th March, the consumer day.
22. The act covers, all goods services including banking, insurance,
transportation, electricity, processing etc.
33. Any consumer individually or jointly, consumer organisation can file
complaint within -2- years from the date of cause of action preferably within
3 months.
44. Legal heirs/ can continue as complaints of
unfair trade practice or
restrictive trade practices against servive provider and charging of prices for
the goods in excess of the prices displayed.
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55. Definition of complaint amended to include complaints of unfair trade

practices or restrictive trade practices against service provider, failure to
disclose final results of scheme of gifts & prizes amt. Prescribed fee payable
on every complaint as court fees - no fees earlier
66. A person availing services for commercial purpose will not be a consumer
under the act.
77. The authority or jurisdiction are;
a) District forum for a complaint up to Rs. 20 lakhs.
b) State Commission up to Rs. 100 lakhs.
c) National Commission above Rs. 100 lakhs.
8. Complaints Appeals against the orders of district forum can be entertained
only if 50 % amt awarded or Rs.25000/- 35000/- & 50000/ whichever is
less is deposited for District, State & National commission respectively.
Banking code and Standards Boards of India (BCSBI)
A comprehensive Bankers Fair Practice Code prepared by Indian bank
Association has been used, as a bench mark standard by the BCSBI. The code
provides protection to the customers on day-to-day basis on banking
This is a voluntary code, which sets minimum standards of Banking practices to
be followed by banks when attending to customers. It has the following
11. Promote good and fair banking practices by setting minimum standards,
22. Increase transparency
33. To encourage financial institutions to achieve higher operating standards,
44. Promote cordial and fair relationship between bank and customer,
55. Bring confidence in the banking system,
66. This code is applicable to almost all services of banks.

Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act 2002 (SARFAESI Act 2002)

In India the enactment of SARFAESI Act 2002 enabled lending agencies (secured
creditors) to foreclose and sell underlying assets without court intervention to recover
the secured debt. For the purpose of the Act, Minimum Scale IV officer is designated
as Authorized Officer for the purpose of enforcement of security interest under the
Act to realize / recover banks dues in case of a NPA-account.
1. In case of default, the Authorized Officers can write to the borrower to repay
secured debts within 60 days from the date of notice failing which the bank is
entitled to exercise the right(s) given by the Act as under:
1A) Take possession or take over management of the secured assets of the
borrower including right to transfer, lease, assign, sale the secured assets;
2B) Appoint any person as manager to manage the secured assets taken over
under possession by the bank;
1C) To pay to the Bank as secured creditor so much of money as is sufficient to
pay the secured debt.
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12. In the course of enforcement of security interests by the bank as Secured

Creditor, all costs, charges and direct & incidental expenses thereto, property
incurred shall be recoverable from the borrower and money received by the bank
as secured creditor shall first be appropriated towards meeting this expenses and
thereafter for discharge of the banks secured debts.
23. In case of number of secured creditor being more than 1, the above said rights
shall be exercised only when 75% or more (in value terms) secured creditors
agree to exercise of the rights;
34. The Record Date shall be the date agreed upon by the secured creditors
representing not less than 75% of the amount outstanding;
45. If dues of secured creditors are not fully settled / recovered out of / from sale
proceeds of secured assets, secured creditors may file an application in DRT or in a
competent court;
56. The secured creditor shall be entitled to proceed against the guarantors or sell
pledged assets without first taking any of the measures or possession & sale of the
borrowers / the guarantors assets.
67. Followings are not covered under the Act:
Pledge of moveable and lien on any goods and security. Aircraft; Vessels; Hire
purchase/lease, etc.; Any Security interest not exceeding Rs.1 lacs; Agri. land.

Assets Reconstruction Company:

1. The SARFAESI Act permits an ARC to commence operations with a minimum net
owned funds of Rs.2 crores. ARC is required capital adequacy ration of 15%.
2. ARC can acquire financial assets by way of simple agreement from the banks/FIs
subject to some terms and conditions or by issuance of bonds and debentures to
the originating Banks/FIs. All rights of lender vest in ARC after acquiring the assets
and become party to all the contracts/deeds /agreement, etc.
3. An ARC can undertake (i) enforcement of security interest (ii) takeover or change
of management of the borrower (iii) undertake sale or lease of the borrowers'
business and (iv) enter into settlements and reschedule the debt
Alteration in Cheques:
A policy prohibiting alteration/correction on cheques has been introduced by RBI, to
curtail cheque frauds on account of alterations in the various fields of cheques and to
give protection to Customer as well as Banks.
It will be applicable only for cheques cleared under the image based Cheque
Truncation System (CTS). Collecting bank should ensure, ab initio that such cheques
are not accepted for presentment in CTS wef Dec.1, 2010, however for time being it is
not applicable to cheques cleared under other clearing arrangement such as MICR
clearing, Non-MICR clearing. Over the counter collection (for cash payment) or direct
collection of cheques outside the clearing house arrangements.
Base rate for Bank loans:
RBI has advised Banks to switch over from Bench mark Prime lending rate to Base
rate system wef July 1, 2010.
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Criteria for determination of Base Rate: While each bank may decide its own base
rate, some of the criterio that could go in to determination of Base rate are
Cost of Deposits
Adjustment for negative carry in respect of CRR & SLR.
Unallocatable overhead cost for banks such as agreegate employee
compensation relating to administrative functions in corporate office, directors
and auditors fee, legal and premises expenses, depreciation, cost of printing
and stationery, expenses incurred on communication and advertising, IT
spending and cost incurred towards deposit insurance and
Profit margin
Since the Base rate will be the minimum rate for all commercial loans, banks are not
permitted to resort to any lending below the Base rate except some special categories
Short Term agricultural loans.
Export credit, where interest concessions are granted by GOI
Loans granted to a corporate, post restructuring.
Loans under DRI scheme.
Advance against Banks own term deposit receipts.
Loan granted to Banks own employees.


Retail Banking:


Retail banking is characterized by three M,

Multiple products,
Multiple delivery channel and
Multiple customer groups.

Basically, there are three important segments of Retail banking

Deposits products,
Loan products, and
Other service products
Why Retail ?

Growing competition & diminishing margins in corporate financing.

Potential area for fund deployment.
Corporate objective: To increase outstanding Retail credit by 20% or 3300 crs.
Branches to generate maximum leads and forward to RLF
Current Account Campaign
With a view to achieve sustainable growth in current account deposits and increase
our spread / profitability it has been decided launch Current Account Campaign for a
period of 1 month in March 2012 so as to enable the branches to canvass quality
current accounts and mobilize good average balance in these accounts.
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Customer Motivations: In order to encourage customers to open current accounts

with our bank, following promotional offers are approved by our higher authorities for
the customers who open current account during the campaign period.
1. 100% concession in service charges on remittances through NEFT/RTGS for a
period of 6 months to customers who open current account during the campaign
2. 100% concession in service charges in payment & collection through cheques,
demand drafts, pay orders, transfer of funds to Base and Non Base branches. This
concession would be available for a period of 6 months to all customers who open
current account during the campaign period.
Unique selling Points of our home loan product:
Sanction within 6 days.
On line application may be submitted.
Free property & personal accident insurance.
Life Insurance cover is also available on payment of premium that can also be
Processing charges waived upto 31.03.2012 during campaign period
Competitive rate of interest.
Top-up loan (AAA) can be availed 5 times during loan period.
Purchase of house/flat or construction made from own sources may also be
covered under home loan provided it is not prior to 24 months
Maximum repayment of 25 yrs, and moratorium of 18 months.
Concession of rate of interest 0.50% to home loan borrowers for loan for
consumer durables and also in car loan.
Capital Gain Account Scheme, 1988:
11. The exemption provided under the section pertain to long term capital gain arising
on sale of residential property and investment of such gains in another residential
property. As per law this investment must be made within 2 years for purchase &
and three years for construction.
22. In case, after the sale of property, a person is not able to find property of his
choice, the amount of capital gain shall be kept under this scheme till investment.
33. Two types of accounts can be opened under this scheme:
4(a) Deposit A- deposits made under this account would be in the form of savings
bank deposits and
5(b) Deposit B- deposits made under this account would be in the form of term
deposits, with an option to retain the deposit as cumulative or non-cumulative.
Deposits may be made as a single lump sum amount or in instalments at any time
on or before furnishing the return on income
64. Withdrawals under savings can be made from time to time. A declaration in form
C giving details of purpose is required. Form D shall also be required.
75. Helps to avail of tax exemptions from capital gains, tax exemption available under
section 54(f)(4) of the Income Tax Act.
TC, Baroda


6. Nomination facility available.

Baroda Health" (Medi-claim Insurance Policy)
1. This is in collaboration with National Insurance Co Ltd. for Banks Account holders
w.e.f 23rd February 2006.
2. It is a co-branded product to provide value added services to our customers and
available at all our branches across the country.
3. It is a Group Medical Insurance Scheme, takes care of the hospitalisation expenses
upto the amount of sum insured. This policy is available only to account holders of
our Bank.
14. Insurance coverage i.e. sum assured may range from Rs 50.000/ to Rs 5.00 lacs
per family of 1+3, consisting of policyholder, spouse and 2 dependent children up
to the amount insured.
25. A member or all the members in insured family can avail hospitalisation benefits
during the policy period, to the extent of aggregate sum not exceeding the sum
36. It provide covers in respect of any illness / disease, accidental injury and/ or any
ailment., any surgery that is required in respect of any disease or accident that has
occurred during the policy period, Pre-existing diseases covered after three
consecutive continuous claims free policy years in respect of all diseases provided
there was no hospitalisation for pre-existing ailments during such three years of
7. Policyholders are eligible for Income Tax exemption under section 80 D as per
Income Tax Rules.
8. Cost of Health check up is allowed @ 1% of sum insured after completion of 3rd
year continuous claim free years of Policy.
UTI Mutual Fund (UTI) MF:
11. On 1st March, 2006 MoU signed between our Bank and UTI Asset Management Co.
for selling of UTI-MF products through our 100 identified branches across the
country in first phase.
22. Centres selected are such where UTI-MF is also having its office
33. Our Bank has since obtained AMFI registration no. 35783 which is to be
incorporated on all the application forms.
44. The selling of UTI Mutual Fund is yet another stream whereby more than 26
millions of BoB customers will get an opportunity to invest in various schemes of
UTI Mutual Fund closer to their doorsteps in the branches where they do their
business transactions.

TC, Baroda


Birla Sun Life Mutual Fund

11. Birla Sun Life Mutual Fund tied up with us for distributing its MF Products.
22. For distribution of Birla MF's products, the Bank has identified 100 branches across the country, to
start with. This will be extended to many more branches in due course.
33. Under the Agreement, Bank of Baroda will offer the entire Birla MF's products across the Bank's
selected branches.
44. In its drive towards providing greater customer convenience, the Bank will continue to enlarge its
basket of products - both its own as also third party, leveraging its vast branch infrastructure."

Baroda First Wealth Pack:

Bank has introduced from 2nd January, 2012, a new combo pack of Savings Bank,
Recurring Deposit & Group Term Insurance and Unit Linked Life Insurance Product
styled as Baroda First Wealth Pack (BFWP).
Under BarodaFirst Wealth Pack, which is a bundle of Banking and Insurance
products, a lumpsum amount shall be taken from the customer in order to provide
the customer high yield through advanced savings account, safe and steady growth
of investment through Recurring Deposit, Market related return through ULIP and
life Insurance cover through ULIP as well as inbuilt term insurance in Savings Bank

Benefit Proposition Baroda First Wealth Pack:

Particulars Benefits

To Customer

Baroda First Savings

Insurance cover)

Availability of many add-on

facilities in the form of
freebees. Added Unique in
built facility of coverage
Scheme on nominal Insu.
Investment in High Yielding
Rec. Deposit.
No risk of Interest rate
No TDS deducted at source
as per present rules.

Baroda First Regular

Deposit Account
( annual Installment
for 10 years)

Benefits to Bank/India
Broaden Customer Base.
Possibility of cross sell, up
deposits base.
Bank will get long lasting
relationship with customer
at least for -10- years.
Help increasing Recurring
Deposit base i.e. long term
resources for the Bank


India First Smart

save Plan (ULIP)

Insurance Coverage as
per ULIP plan.

Commission on Insurance
premium payable to Insurer
thereby adding to Non
Interest Income of the

Customer will Invest every year

Pack- Silver

Pack- Gold


Baroda First Regular Deposit A/c (R.D.

Installment for 10 yrs)

Installment of
Rs. 10,000/-

Installment of
Rs. 50,000/-

Baroda First Savings Bank Account (with

inbuilt feature of availability of group
Insurance cover)
India First Smart save Plan (ULIP)*
Payment of Group Term Insu. premium
(incl. of Service Tax)
Sum Insured under Group Term
Insurance (Age group 18 to 55 Years)
*Sum assured under IndiaFirst Smart Save
Plan (age group 18-50 yrs)
*Sum assured under IndiaFirst Smart Save
Plan (age group 51-55 yrs)
Total Insurance Cover (ULIP+ Group Term
Insurance ) for 18-50 yrs aged Customer
Total Insurance Cover (ULIP+ Group Term
Insurance ) for 51-55 yrs aged Customer

Rs. 2250/

Rs. 20,000/Rs. 4,900/-

Rs. 12,000/
Rs. 750/

Rs. 24,000/Rs1,100/-

Rs. 40,000/
Rs. 1,900/

2 lacs

3 lacs

5 lacs

2 lacs

3 lacs

5 lacs

2 lacs

2.64 lacs

4.40 lacs

4 lacs

6 lacs

10 lacs

4 lacs

5.64 lacs

9.40 lacs

Rs. 8,100/


e-Business Products of our bank
1. ATMcumDebit Cards
2. Baroda Connect
3. Baroda Phone Banking
4. ONLINE RTGS / NEFT (through Baroda-Connect)
5. Baroda e-payment Gateways
6. Baroda m-Connect
7. Baroda Gift Card

ATM-cum-Debit Card


1. Our Banks International Debit Card Issuance is free for first year & after that
Rs.100 + Ser. Tax will be charged. Now, renewal is free and it will require after 10
2. Additional Cards are issued free for first year & after that Rs.100 +Ser. Tax will
be charged.
3. As per RBIs latest guidelines w.e.f. 01 April 2009, our Debit Card customers can
use other banks ATMs free of charges. These charges are not to be recovered
from the customers. However, Banks have to pay to the concerned bank of which
ATM has been used.
4. ATM cash withdrawal limit per day is Rs.25000/-, with max. 4 txns per day (but
per txn. limit remains at Rs 15000).
5. Purchase transaction limit per day at POS (Point of Sale) is Rs.50000/-.
6. Mini Statement of last five entries is available only in our Banks ATM.
Cash withdrawal through other Bank ATMs
1. Our customers enjoying ATM in their SB a/c can withdraw a maximum of
Rs.10000/- per transaction through other Banks ATMs, maximum 5 times in a
calendar month, free of cost. Thereafter a nominal charge of Rs.20/- will be
levied for each transaction.
2. Henceforth, current / OD account customers holding debit card cannot avail the
free cash withdrawal facility through Other Bank ATMs.
3. Balance enquiry on other Bank ATMs by Savings / Current / OD account holder
will continue to remain free of charge.
4. If during ATM transaction a/c is being debited but cash not dispensed, ATM user
should male complaint with ATM Issuer bank not with Acquirer bank.
5. Once the complaint is received, it should be resolved within 7 working days
otherwise, bank has to pay penalty @ Rs.100 per day, irrespective of the
transaction of amount.

Premium Debit Card Visa Platinum

Bank has introduced Visa Platinum Debit Cards for our valued customers w.e.f.
Special features :
1. Higher cash withdrawal limit at ATMs Rs.1,00,000.
2. Spend limit at merchant outlets (POS) Rs.2,00,000.
3. Various reward/promotional offers made available by Visa
Eligibility :
1.All salaried persons, Businessmen, Professionals, Proprietor and partners of
Partnership firms with an earning of minimum Rs.5,00,000 per year
2. Non resident account holders, whose accounts are active, with a minimum
turnover of Rs.4,00,000 an year, or who holds fixed deposit with our Bank to
the tune of Rs.4,00,000 or more
3. Super Saving Account holders (existing and new)
4. Premium Current account holders (existing and new)


Baroda Connect
Baroda Connect, an internet banking product of our Bank, is the very important
alternate delivery channel (ADC). This also facilitates the customers to enjoy
various banking services from their door step (home / shop/ company) or
anywhere having internet connectivity, hence, in limited sense, we may call it as
Mini Extension Counter of the Bank. In todays buyers market, where
Customer is the King and each and every service industry including banking,
are hovering around the centre point CUSTOMERS, such a unique service is
extremely desired by the customers at large, especially by Gen-Next customers
and it also proves the concept of internet as www (win-win-win situation for the
Customers, Bank & Employees). Considering the same of prime importance, our
Bank has come out with a mega project Navnirmaan, which is going to be
beneficial to all the three, in one way or, other.
Benefit to the Customers:

27x7x365 access (even no effect of Sundays, Holidays & Strikes)

Time Saving
Substitute of Q-culture
Transparency & Trust
Available in other territories
Remittances to/from other Banks
Transfer of funds within Bank at no cost (without Inter-SOL Charges)
Various ancillary services viz. e-pay, e-ticketing, utility bills payment
Various other facilities at free of cost
Special limit for Transfer of funds within Bank may be considered
Benefit to the Employees:
1. Time saving as vouchers are not coming to the branches concerned for
2. Operating Risk Mitigation upto some extent as transaction is being done by
Benefit to the Bank:
1. Cost effective
2. Additional services for retention & accretion of Gen-Next customers
3. Image of the Bank as Techno-savvy
4. Facilitate the Bank to upgrade / diversify the range of e-banking services
Unique Features of Baroda Connect:
In todays intensive banking scenario, almost all banks are providing internet
banking facility and services provided, are also more or less same. But, our
Baroda Connect is having two very unique features first, transaction of future
date can be scheduled well before and second, multiple-users can be set in any
Corporate User A/c.


Banking system thrives on customers stake / confidence reposed, hence, a safe

& qualitative customer service provided by the Bank is the pre-requisite for
placing itself as preferred position in the market. Unfortunately, in recent past,
some sort of illegal practices (phishing, vishing, mishing, smishing) by
unauthorized persons came into picture. Hence, for enjoying safe, comfortable
and trustworthy internet banking by our customers/users, our Bank has taken
following initiatives:-

Awareness message on Home Page from phishing, vishing, mishing etc.

Awareness creation by the branches to their users through various methods.
Provision of Virtual Keyboard for entering Sign-on password.
Provision of two different passwords - for Sign-on & for Transaction.
Additional safety measure by disabling Transaction Password if not used for 90
days, so that chances of misuse due to unvigilant actions of customers could be
Sending SMS about transactions, on registered mobile phone to facilitate the
users for early access of genuineness of transactions.
Daily / Weekly ceiling on transaction amount so that any unauthorized person
cannot make big damage to our users at once and subsequently, genuineness
of transaction can be established by the user, through receiving SMS and if it is
unauthorized, necessary steps may be taken at the earliest.
Third party / Inter-bank fund transfer only after Registration by the user.
Fraud Management Services (FMS) has been implemented as additional safety
Services offered to Retail Customers

Balance enquiry in Operative account, Deposit accounts and Loan accounts.

Stop payments of cheques
Tax Deduction Enquiry
Account summary summary of all operative, deposit and loan accounts
Fund transfer to Self / linked account and Third party fund transfer.
Request for cheque book, fixed deposit renewal, Switch Mailing address,
account opening for CBS and e-banking.
Profile customer can change his profile and change his password.
Activity history Customer can get details of all the activities carried out by
Modeling Customer can model deposit / loan schemes of the bank and know
about likely maturity value, if he invests or likely EMI if he takes loan, etc.
ASBA facility
School Fee options
Bill payment option
Services offered to Corporate Customers
All facilities mentioned under Retail Customers

Approvals For corporate customers, there can be involvement of multiple

users for transfer of funds / payment of bills, etc and Baroda connect allows
multiple users to log in and initiate / approve the transactions, as per powers
delegated by the corporate to their users.
Trade Finance queries relating to Import/Export, Inland Trade, B.G., Forward
Direct Salary upload facility.
ASBA facility
Limit for transactions
(Amt. in Rs.)
Self linked Third party
fund transfer
Per transaction
Daily limit



Weekly limit



Monthly limit



Yearly limit



Self fund

fund transfer

Retail customers can have max.5 transactions/day. But in case of Corporate

customers, there will not be any restrictions on the Number of Transactions per
day. The limit for corporate customer can be increased on the request of the
customer and recommendation of the concerned branch.
Baroda easy Pay is an e-payment service for the Internet Banking customers
of our Bank. Internet Banking customers of our Bank can make payment of their
utility bills, insurance premium, subscription for books / magazines, book air
tickets, make donations and charity on line through Baroda easy Pay.
This service allows a customer to see and pay various bills directly from their
account through Baroda Connect 24 hours a day. At present facility to make
payments of various utility bills viz. mobile, telephone and electricity etc. is
available for billers of Mumbai centre only.

Baroda easy Pay

"Baroda easy Pay" is an electronic bill presentment and payment service
launched by the Bank in association with "Bill Desk", a well-known technology
and payment service company. It is transaction based internet banking service
for customers of Mumbai CBS branches. This service is providing two types of
services to the customers
1. Bill Pay Presentment Type Biller

2. Direct Pay Payment Type Biller.

Advantages to Customers
No more visits, queues and waiting at branch
Facility is available on 24x7 basis
Can make payment from anywhere
Ease of operation and convenience
Can pay utility bills on behalf of the individual, firm or company
Instant Cyber Receipts for the payment made
Can View past payments at any point of time
Baroda easy Pay Service is free of charge

Baroda e-Trading
Baroda e-Trading, an on-line share trading facility is offered under a tie-up
arrangement with M/s India Infoline Ltd. (IIL). Baroda e-Trading is 3-in-1
integrated account. These will be
1. One operative account with CBS branch
2. One DEMAT account either with our Bank or India Infoline Ltd.
3. One Trading account with India Infoline Ltd.

Baroda Phone Banking

Baroda Phone Banking Service is Free of Cost.
It is a IVRS (Interactive Voice Response system) which allows the caller to get
information using a touchtone phone.
Available to customers having SB / CA / OD / CC / LOAN / FIXED accounts.
Can be used from anywhere in India
Available in Hindi and English,
Ease of operation and convenience,
Gives Customers account information at any of CBS branch in INDIA,
Allows to make certain requests regarding accounts,
Provides information about other products and services of our Bank
WHO CAN AVAIL THESE SERVICES: Customers as well as non-customers
Customers having Operative Account (SB,CA,CC,OD) with any domestic CBS
Branch will get Telephone Personal Identification Number(TPIN)

However, at present all Baroda Connect users and new Customers of select
CBS Branches have been allocated 4 digit TPIN by default i.e. without request.
The main/ base account of Baroda connect only shall get TPIN but phone
banking facility shall be automatically available to all other accounts linked to
this base account having same customer ID.
So, a customer must login with account number of the main/base account for
which TPIN has been created.
For getting General Information (such as rates of interest; Forex rates etc.) the
customers as well as non-customers need not have an account ID and TPIN.
An User shall connect by dialing to Toll Free No 1800 2222 07 from landline

phone for availing Baroda Phone Banking Service and will push button the
prescribed main account number and TPIN as prompted by system.

In keeping with the Banks goal of emerging as a true international bank of India,
the Bank has launched an Online International Money Transfer Service
BarodaRemitXpress. This product is a unique and robust online remittance
solution from USA, UK and Eurozone. This online service is bank-neutral, thus not
requiring the senders and the recipients to have a bank account with us.

This product is unique as it provides

Desktop-to-Doorstep Solution
Convenience customer can use any bank in the U.S., U.K. and EURO ZONE
Cheaper than an International Wire Transfer
Significantly cheaper than a money-transfer agent
Quicker than an international check
24x7 Customer Service
Global Security Standards - 128-bit encryption
Online Funds Tracker
Free Personalized Message
Minimum 50 USD, GBP & EURO and Maximum 5000 USD, GBP & EURO
Different Pay modes form sending money to India
- Online Money Transfer
- CIP (Customer Initiated Payment)
EURO - Local Wire
Customer can send money from over 12,000 US banks and all UK & EURO ZONE
banks. Beneficiary will receive Indian Rupee funds in the form of a Demand Draft.
Times of Money is Bank of Baroda's alliance partner for the BarodaRemit Xpress

City Back Office

The Bank has introduced City Back Office concept in terms of which the entire
clearing and collections functions of all branches in the city have been centralized
at the Service branches and selected Main Offices. Now, CBOs are also getting
benefitted with the commission earned ob cheque clearing.

Biometric Cards /ATM

Biometric cards authorize transactions based on the customers biological
attributes. It could range from fingerprints to voice to iris of the eyes. It is
especially useful for those who are illiterate or not familiar with the language
used by the ATM to conduct transactions. For example, in case of a fingerprint; a
fingerprint does the job of a Personal Identification Number (PIN) which is a
unique number that each customer has to punch in the ATM to conduct any
transaction. Instead of typing the number the person has to merely press his /
her finger (usually the thumb) in the slot provided for fingerprint identification.
The biometric ATM card typically contains a smart chip, which carries biometric
information, personal details as well as the photograph of the account holder.

Biometric ATM works on identification of finger prints supported by voice

prompting in local language. The key features of biometric ATM are use of
finger impression in place of PIN, voice output for people who cannot read, colour
codes available for different amounts, fixed amount facility, no keyboard etc.
Our banks first biometric ATM was installed at Gandevi, Gujarat.

Cheque Truncation
A working group under the chairmanship of Shri D Burman had recommended
the concept of Cheque truncation to replace the physical movement of cheque
by the image of the cheque. Truncation is the process of stopping the flow of the
physical cheque issued by a drawer to the drawee branch. The physical
instrument will be truncated at some point en-route to the drawee branch and
an electronic image of the cheque would be sent to the drawee branch along
with the relevant information like the MICR fields, date of presentation,
presenting banks etc. Thus with the implementation of cheque truncation, the
need to move the physical instruments across branches would not be required,
except in exceptional circumstances. This would effectively reduce the time
required for payment of cheques, the associated cost of transit and delay in
processing, etc., thus speeding up the process of collection or realization of the

Faster clearing cycle

Better reconciliation / verification process
Better Customer Service & Enhanced Customer Window
T+ 0 for Local Clearing and T + 1 for inter-city clearing.
Elimination of Float. Incentive to shift to Credit Push payments.
The jurisdiction of Clearing House can be extended to the entire country. No
Geographical Dependence
Operational Efficiency will benefit the bottom lines of banks. Local Clearing
activity is a high cost no revenue activity.
Minimizes Transaction Costs.
Reduces operational risk by securing the transmission route.

Core Banking
From a business perspective Core Banking relates to the basic business of a bank
or financial institution. That, in a nutshell, is taking deposits (liabilities) from
customers and lending (assets) to customers. While doing so, ensure that profits
are generated for the bank / financial institution.
From a technology perspective, Core Banking is the short name for a Core
Banking System that a bank has to deploy in order to perform its Core Banking
business. In short, implementing a system that will help the bank take deposits
and lend to customers in a profitable manner.


Why is it called Core Banking?

The reason for calling it Core Banking is the fact that a Core Banking system,
after deployment, is the heart or the core of the bank / financial institution. All
entities that form part of the eco-system of the bank / financial institution
interact with it. These entities are
Bank employees H.O., Corporate Office, Zonal Offices, Regional Offices,
Branches, etc. (both users and technical staff)
Bank management Executives / Managers at respective locations, head
office, regional offices, branches, etc.
Bank customers personal banking, corporate banking, international banking,
Bank auditors internal and external auditors who need to verify systems and
Bank regulators mandatory reporting to central bank and other financial
Bank shareholders providing the desired return to shareholders from bkg.
Ingredients that constitute Core Banking
There are 5 key ingredients that form part of the Core Banking system. These
are the essential building blocks for the entire bank / financial institution.
1. General Ledger
2. Customer Information System
3. Deposit system
4. Loan System
5. Management Information system (MIS)
Benefits of CBS to the Customer
1. The customer will be of Bank and not of a branch.
2. He can access his account from any CBS Branch, through Internet from any
part of the world.
3. He can operate his Bank account/s on 24X 7 basis, from anywhere.
4. All information about the account is available on real time basis online.
5. Huge savings of time and cost as far as obtaining various information is
6. Better fund management without paying any thing extra thereby saving the
7. Can transfer the funds between accounts without any intervention or support
from banks officials.
8. Can avail the benefits of technology driven products through CBS
9. Customer will get one unique customer ID. He can subsequently enjoy various
types of deposits and loan products by attaching the customer ID across the
bank without passing through the same cumbersome procedure of account
10. Banking will be pleasing and relaxing as the customer can access the account
as per his choice and convenience.

IFS Code
Indian Financial System Code (IFSC) is an alpha numeric code designed to
uniquely identify the bank-branches in India. This is 11 digit code with first 4
characters representing the banks code, the next character reserved as control
character (Presently 0 (ZER0)appears in the fifth position) and remaining 6
characters to identify the branch. IFSC No. for branches of our Bank is
BARB0XXXXXX where XXXXXX is for Branch Alpha. But if the alpha code is less
than 6 characters, it should be padded by X after the alpha i.e. if the branch
alpha of our Mount Abu branch is ABU then the IFSC code of this branch will be

National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer
system to facilitate transfer of funds from any bank branch to any other bank
branch.The system uses the concept of centralised accounting system and the
bank's account, which is sending or receiving the funds transfer instructions, gets
operated at one centre, viz. Mumbai only.
There is no value limit for individual transactions. NEFT is settled in eleven
batches with first batch starting at 0900 on weekdays and in five batches with
first batch starting at 0900 on Saturdays
How it is different from RTGS?
1) NEFT is a domestic electronic payment system (except Nepal) whereas RTGS
allows remittance from abroad also.
2) Minimum Amount in RTGS is Rs. 2 lac whereas in NEFT it is Rs.1 only.
3) NEFT transactions are processed in a batch (11 in a normal day and 5 on
Saturday) whereas RTGS transactions are processed on Real Time basis.
4) NEFT transaction can be done by cash also whereas RTGS can be done
account to account.
5) In NEFT if there is incorrect a/c no. amount gets bounce back to remitting
branch whereas in RTGS it remains with the receiving branch.
6) NEFT transaction can be done by cash (i.e. non customers can also avail the
benefit of NEFT by depositing cash up to Rs.50000/-) whereas RTGS can be
done account to account only.

Real Time Gross Settlement (RTGS)

The acronym RTGS stands for Real Time Gross Settlement. An RTGS
Payment system is one in which payments instructions between banks are
processed and settled individually and continuously throughout the day
This is in contrast to the net settlements, where payment instructions are
processed throughout the day but inter-bank settlements takes place only
afterwards. Payment instructions processed on a continuous or REAL TIME
basis and settled on a GROSS or individual basis without netting the debits
against credits.


Settlement in REAL TIME means payment transaction is not subjected to any

waiting period. GROSS Settlement means the transaction is settled on one to
one basis without bunching with any other transaction.
Payment so effected are final and irrevocable
Settlement is done in the books of the RBI
Minimum amount for RTGS transaction is Rs.2 lac and there is no maximum
limit for transaction.
RTGS can be used for Inter Bank as well as Intra Bank transfers.
IFSC code is required for RTGS transaction and now, it has been mandatory to
remit the amount of Rs.10 Lac and above through RTGS/NEFT.
Timings Monday to Friday
Customer Transactions R41: 0900 hrs to 1630 hrs
Inter Bank Transactions R42: 0900 hrs to 1800 hrs
Timings Saturday
Customer Transactions R41: 0900 hrs to 1330 hrs
Inter Bank Transactions R42: 0900 hrs to 1500 hrs


ASCROM stands for Asset Classification and Credit Monitoring.

ASCROM is user-friendly software for creating Comprehensive Data Base of
Advance accounts at all levels.
It enables Recording details to implement BASEL-II (Standardised Approach)
as well as facility of data submission to CIBIL.

Features of ASCROM system

Early Warning Reports The system identifies Potential NPAs 3- months in

advance along with the Critical Amount Due (CADU)
Critical Amount Default (CAD) The system identifies the Critical Amount in
Default (CAD) in NPAs which must be recovered to upgrade the account to
standard category.
Automatic Asset Classification and computations of provisions as per RBI
Reports like DSB, BSR (1A & 1B), Lead Bank Returns; Priority Sector returns
can be generated.
Asset Classification Reports in several combinations can be generated.
NPA Movement Reports for region, state, industry, sector, and activity or in its
combination is available.
Provides strong base for risk mgt. and data warehousing initiative of the Bank.
Asset classification report can be generated through ASSCR menu under
Finacle it can be modified through BOBMEAC menu.

Regional Back Office (RBO)


Now, bank is going to establish one RBO in each Zone. The first Regional Back
Office was established at Baroda. The RBOs arel catering to a cluster of 350-400
branches for back office activities, such as, centralized account opening,
signature scanning, personalized cheque book issuance; other activities may be
added in due course like, statement printing, FDR renewals, TDS certificates and
some part of MIS.

BARODA Rapid Funds2India:

11.The product is introduced to provide easy and hassle-free money transfer
service to Individuals-NRIs/PIOs & Corporates (for remitting salary payments to
their employees) to remit the fund in India from UK, UAE and Oman Mauritius,
Seychelles, Botswana, HongKong, Fiji, Ghana, Kenya, Guyana, South Africa,
Tanzania, Uganda and Trinidad & Tobago.
22. Where the accounts of the beneficiaries of remittances are maintained with
other banks' branches in India, which are RTGS/NEFT-linked, the credits are
effected within 24 hours.
33. Instant credit to the beneficiary's account with Bank of Baroda branches in
India under the CBS network.
14. Trade related payments are not allowed.
25. No minimum/maximum amount for money transfer.
36. Using RTGS platform if beneficiary has account with other bank.
47. Free remittance in case both the remitter & beneficiary are maintaining a/c with

Digital signature:
The digital signature is an encryption and decryption process allowing both
the positive identification of the author of an electronic message (Who wrote
the message?) and verification of integrity of the message (Has the message
been tampered with during transmission?).
Encryption is the transformation of information from readable form into some
readable form.
Decryption is the reverse of encryption; it's the transformation of encrypted
data back into some intelligible form.

Core Banking v/s Networking

(1) In Core Banking the data remains with the centralized hub and is accessible
from any branch any time. The branch does not have data relating to
accounts and the customers of the Bank and not of the Branch. Since the
branch does not have data, there is no back office function such as cash book,
GL, balance sheet, etc.
(2) In connectivity or Net Banking, the data remains with the branch and can be
accessed from various branches. The customer essentially remains a customer
of the branch and not of the Bank.

Electronic banking Channels


1 ATMs
2 Debit transfers (utility payments)
3 Credit transfers (corporate payouts)
4 Home Banking/ PC banking
5 Internet banking/ Anywhere banking
6 Tele-banking/ Mobile banking
7 Credit/ Debit cards/ Smart cards / Gift cards

Information Technology Act 2000:

An Act to provide legal recognition for transactions carried out by means of
electronic data interchange and other means of electronic communication,
commonly referred to as "electronic commerce", which involve the use of
alternatives to paper-based methods of communication and storage of information.
The Information Technology (IT) Act 2000 aims to provide a legal and regulatory
framework for Promotion of e-Commerce and e-Governance. IT Act 2000 was
enacted on 7th June 2000 and was notified in the official gazette on 17th October
2000. The Act is applicable to whole India.
The major provisions contained in the IT Act,2000:
1 Electronic contracts will be legally valid
2 Legal recognition of digital signatures
3 Digital signature to be effected by use of asymmetric crypto system & hash
4 Security procedure for electronic records and digital signature
5 Appointment of Certifying Authorities and Controller of Certifying Authorities,
including recognition of foreign Certifying Authorities
6 Controller to act as repository of all digital signature certificates
7 Certifying authorities to get License to issue digital signature certificates
8 Various types of computer crimes defined & stringent penalties provided under
9 Appointment of Adjudicating Officer for holding inquiries under the Act
10 Establishment of Cyber Appellate Tribunal under the Act


1 Appeal from order of Adjudicating Officer to Cyber Appellate Tribunal and not
to any Civil Court
2 Appeal from order of Cyber Appellate Tribunal to High Court
3 Act to apply for offences or contravention committed outside India
4 Power of police officers and other officers to enter into any public place and
search and arrest without warrant
5 Constitution of Cyber Regulations Advisory Committee who will advice the
Central Government and Controller

Magnetic Ink Character Recognition technology is very popular world wide and in
this system, the instrument such as cheque, draft, pay order, gift cheque,
traveler cheque etc. can be read directly without the need for transcribing the
data on punch cards or paper tapes.
The information is printed on the instrument with special ink, which is made up
of magnetic material. On insertion of instrument in the machine, the printed
information is magnetized and read by the machine.
The MICR system is beneficial as the chances of error are minimized, transfer of
funds becomes faster, clearing becomes easy and burden of manual work is
Pay Roll: Log in CBS through HCUMM, Go to personal details of HCUMM tab
see/enter EC No of the staff. Get it verified by another officer. For every
operative account and loan account Customer ID should be the same as entered
above .If you want to modify the customer ID use menu option CCA (Change
Customer ID of Account). Get the modification verified by another officer.

Introduction of NetCAST utility

Reasons behind introduction of Netcast Utility
The time taken for download of some reports is long due to slow response of
erver especially during peak hours.
The user generating/downloading some reports is locked for a long time which
hampers other jobs besides the involvement of man-hours at the branch.
Sometimes the report server is not available to the branch due to various
reasons and few report generation menu are also not available at Finacle Live
server. In such cases, branches are unable to generate some urgent reports in
case of need.
Sometimes, branches forget/fail to download some periodic reports like
ALMAN which cannot then be re-generated after the due date. This results
into no compilation /discrepancy of data at branch level.
Considering the above, a new utility called NetCAST has been created to
generate some specified reports for all the CBS branches at centralised location

and distribute the same to respective CBS branches for onward download
/access at their end as per their requirement.
NetCAST is a utility for centralized generation of reports/downloads and
distribution of the same to the respective CBS Branches. It addresses the issues
related to report generation activity besides saving considerable amount of man
hours involved at the branch level.

Mobile Banking:
Mobile Banking may simply be defined as undertaking banking transactions
using mobile phones by bank customers that involve credit / debit to their
accounts. Mobile phones as a medium for extending banking services have offlate been attaining greater significance, with the rapid growth in the number of
mobile phone subscribers in India, banks have been exploring the feasibility of
using mobile phones as an alternative channel of delivery of banking services.
Some banks have started offering information based services like balance
enquiry, stop payment instruction of cheques, transactions enquiry, location of
the nearest ATM / branch etc. Acceptance of transfer of funds instruction for
credit to beneficiaries of same / or another bank in favor of pre-registered
beneficiaries have also commenced in a few banks.
Transaction limit: Banks are now permitted to offer this service to their
customers subject to a daily cap of Rs.50,000/- per customer for both funds
transfer and transactions involving purchase of goods/services. Presently, such
transactions are subject to separate caps of Rs.5000/- and Rs.10000/respectively.
Technology and Security Standard: Transactions up to Rs.1000/- can be
facilitated by banks without end-to-end encryption. The risk aspects involved in
such transactions may be addressed by the banks through adequate security
measures. Some banks have developed their own software for providing mobile
banking facility but for providing safer facility, a mobile handset should be
enabled with any established support system like, Jawa, Windows, Blackberry,
Brew etc.

Baroda e-payment Gateway

Looking to the current shift in new generation customers, our bank has
implemented technology to maintain an efficient Internet Payment Gateway
infrastructure called Baroda e-Gateway, and will certainly will create a hightech bank image & new avenue to earning commission income which is definitely
the need of hour. It is new, innovative and technology prudent product in
payment gateway market among state-owned banks, as we are having own
infrastructure & maintenance of gateway and at present, more than 15
merchants have been enjoying this facility.
What is Internet Payment Gateway (IPG)?
Internet Payment Gateway (IPG) is payment and settlement infrastructure which
a merchant uses to collect payment from their customer for online sale of

products or services. IPG shields the business unit from complex technical
infrastructure required for e-commerce business. It provides necessary access to
payment system including Interchange agencies like Master/Visa, card issuing
bank, settlement bank etc.
It is essential for retailers who have an online presence and are interested in
selling their products over Internet. IPG is sate & ensures encryption of sensitive
card information during secured transmission between customer, merchant and
payment processors.
How it works?
Operations team is setup to enroll suitable merchants, provide assistance in
configuring secured access, arrange for day-to-day processing & settlement
with Master Card/Visa and carry out associated reconciliation
Software installed at merchant site, will enable them to track transactions and
generate reports at their end
Merchant will get payment on the next working day in their designated account
Facilitate our merchants to securely accept payment, for their online/web based
sale, using Credit/Debit cards
Accept Master Card/Visa credit/debit card issued by any institution
Merchant instantly gets confirmation of the receipt of payment. Based on that,
goods/services can be delivered to consumer
Implemented latest industry standard security features viz. Verified by Visa,
Master Card Secure Code, two factor authentication, 128 bit SSL, continuous
monitoring of server for vulnerability etc.
Benefits of Baroda e-Gateway for customers
Merchant is shielded from installing and maintaining complex payment gateway
technology and interacting with payment systems.
Payment is received on the next working day in merchant designated account.
Merchant can view/print their transactions.
Simple interface with banks system. If needed, support would be provided to
configure the access.
Consumer is assured of safety of their card details/usage. In addition, they get
convenience of purchasing goods/services from the comfort of their
Round the clock, hassle free service. Create a tech savvy image for merchant.
Fast and emerging market in India, so branches should generate maximum

Few numbers of entrants in the payment gateway sector.

Flexible price structure that can be improved on the basis of transaction

volume and business association.

Ability to move into new market segments that offer better profits.

Baroda Cash Management System (BCMS)

Cash Management Services is a software application (Cash@Will) that facilitates
management of customer funds, particularly, of corporate customers. Corporate

customers with large volumes of transactions are the target group for BCMS.
Baroda Cash Management Services also facilitates Internet Based Transactions.
Operational Model of BCMS is consisting of 3 tiers as listed below:1. Data Centre
2. Central Operational Hub (COH)
3. Identified BCMS Branches / City Back Office / Service Branches
BCMS has three fund management modules, viz., Collection, Payment & Liquidity
Management and a front-end interface available to the customer through the
Collection Module The Collection Module handles all inflow of funds in
customers accounts, which can be by way of
Cash Deposit

Proceeds of local cheques

Proceeds of outstation Cheques

Payment Module This module handles the outflow of funds by way of
Direct Debit Instructions (DDI)

ECS ECS-debit

ECS ECS credit

Issuance of DD / BC

Payment through RTGS / NEFT

Issuance of DW
Liquidity Management Module This module facilitates sweeping of funds
from various accounts of the customers and pooling them in a single account
called Concentration Account. The funds available in this account help the
customers in online decision making. The Liquidity Management Module also
facilitates funding of various accounts as per the requirement of the customers
out of the balance available in the Concentration account. The Liquidity
Management Module facilitates both sweep-in and sweep-out from the
Concentration account.

Post dated Cheque Collection

Invoice management