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THE NAME YOU CAN BANK UPON
ACKNOWLEDGEMENT “Debt can not be paid in words of gratitude”
It gives me immense pleasure to express my deepest gratitude towards our Chairman and other faculty members for providing us with the opportunity to undertake this project, which helped me to learn so much.
With immense pleasure and deep sense of sincerity, I had completed my industrial training o it is must for postgraduate student to gain the experience. A systematical practical experience is very essential to bring confidence in a student so that he can mentally prepare in advance to face the challenge of the real world in advance. The purpose of training are:1. Developing Skills: - One can develop his own skills to perform work effectively & efficiently. 2. Getting Exposure: - To know that what actual factory environment is.
TABLE OF CONTENETS TITLE Acknowledgement Student Declaration Executive Summary Objective of the study Introduction- About PNB Services studied (Offered by PNB)-ATM cum Debit Card Internet Banking Saving Fund A/c Current A/c Anupam A/c Flexible Rate Deposit Scheme Cash Management Services Electronic Fund Transfer Real Time Gross Settlement Loans- Housing Loan Conclusions & Recommendations Bibliography Feedback Form SIP Certificate PAGE NO.
5 7 8 11 13 19 21 23 25 31 33 33 45 49 51
This report is on four different functions performed by Punjab National Bank, The report includes information about ATM cum Debit Card, Internet Banking and Housing Loans in North Delhi and NOIDA. The report also discusses the mechanism of four services mentioned above, also briefly explains the basic requirements and necessities of the services. Indian Banking industry is growing faster than ever before and shows great opportunities with untapped market in rural as well as semi urban India. PNB with its age old name has a place in peoples mind. But with the globalization Private Banks that came just 10- 15 years back are giving tough competition to PNB. PNB is the largest nationalized bank in India while its direct competitors are State bank of India, Bank of Baroda, Central Bank and the like. Whereas it is also competing with other private banks like ICICI bank, HDFC Bank, Standard Chartered Bank etc. Punjab National Bank to compete in services with private banks, has introduced service of interbank money transfer system for its customers, known as Real Time Gross Settlement (RTGS). The report includes a brief description about RTGS, and this system works. RTGS is a system of transferring money from one bank to other within very short period of maximum 2-4 hrs.
Marketing Department of the bank has become aggressive with the loans department also. PNB is now contacting directly to builders of residential and commercial complexes to provide loans to their customers. PNB is now come up with providing ATM cards for free to its customers so as to make people aware of the benefits of using Debit card. Also internet banking is also promoted by bank so as to cut short the queue in the counters of the bank.
OBJECTIVE OF THE STUDY
Banking industry is one of the most highly competitive industries in India where so many banks compete with each other. There are about 500 banks in India, which makes it difficult for player to survive in the market. Objectives of the study were: The main objective of this study is to promote ATM cum Debit card, Internet Banking, RTGS system of Punjab National Bank. To increase customers awareness about the banks services. To educate the customers as well as staff of the bank branches about RTGS system. To promote and bring business for PNB through Housing loans by contacting through big real estate developers like DLF, PARSAVNATH, RAHEJA , ATS, MAHAGUL etc.
About Punjab National Bank Company background
Punjab National Bank (PNB) was incorporated in the year 1895. Since its humble beginning over hundred years ago, the bank has grown in stature to become one of the leading banking institutions in India.Punjab National Bank (PNB) is the second largest PSU bank in India with a dominant presence in north India. It is one of the largest lenders to the agriculture and priority sector. The bank operates through a branch network of 4,022 branches and an ATM network of 404. The bank came out with its IPO in April 2002. The bank recently formed a joint venture with Principal AMC to form the PNB Principal AMC.
The Indian Banking sector has undergone a sea change in the past decade with the implementation of the ongoing banking sector reforms. The sector, over the years has become more efficient with the implementation of prudential norms for asset classification and improved thrust on technology advancement. The Public sector banks (PSBs) still dominate the sector with 75% of the market share of business and profits. The new private sector banks with their technology driven business model are fast catching up with the PSBs. The last two years has seen banks book windfall gains in profits. With the interest rates hardening up, banks need to focus on core profit growth. The retailisation of the banks’ balance sheet has seen banks improve their asset mix with
home loans, auto loans and personal loans. The large presence and vast resource base have helped PNB to build strong links with trade and industry.
Punjab National Bank In India (PNB)
Punjab National Bank with 4497 offices and the largest nationalised bank is serving its 3.5 crore customers with the following wide variety of banking services:
• • • • • •
Corporate banking Personal banking Industrial finance Agricultural finance Financing of trade International banking
Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic Times. PNB has earned 9th position among top 50 trusted brands in India. Punjab National Bank India maintains relationship with more than 200 leading international banks worldwide. PNB India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.
Centralized Banking Solutions (CBS), an ambitious project of the bank aimed at interconnectivity of branches, has been implemented in 1,229 service outlets covering 265 centres. Around 60% of the bank`s total business is being covered through CBS. Further, the bank has also launched Internet Banking Services for the Retail as well as Corporate customers. Further, the bank has commissioned a call centre for providing prompt services to customers. Presently, the call centre deals with enquiries related to account/services of CBS branches, debit card/ATM card and loan/deposit schemes. The bank has also put up a well-defined complaint redressal mechanism for quick disposal of complaints received through the Call Centre.
The bank has been focusing on expanding its operations outside India and has identified some of the emerging economies, which offer large business potential. Bank has set up representative offices at Almaty: Kazakhstan, Shanghai: China and in London. Besides, Bank has opened a full-fledged Branch in Kabul, Afghanistan. The bank has opened its representative office in Dubai as well. Punjab National Bank plans to set up a subsidiary to look after its IT-related activities. They have attained 100 per cent branch computerization and gained expertise from the rollout of the core banking solution (CBS) in over 1,200 branches.
PNB has implemented FINACLE, the Infosys CBS, across its branches. The bank has plans to launch a credit card, although it currently has as many as 53,000 card members for its international co-branded credit card that it has launched with HSBC. The bank is planning to have as many as nine large corporate branches (LCBs) operational. Besides adding more LCB branches in Mumbai and Delhi, the bank also plans to have branches in Ahmedabad, Kolkata, Ludhiana, Chandigarh and Chennai. The Bank has deployed core banking solution, treasury management solution, cheque truncation and MICR, enterprise management system, Internet Banking, Large ATM Network , debit card, and disaster recovery system in the recent past," PNB has over 3.5 crore customers.
FINANCIAL STRUCTURE OF PUNJAB NATIONAL BANK PUNJAB NATIONAL BANK (AS ON JUN 2006) FINANCIAL STRUCTURE MARK CAPITALISATION (JU N’ 06) NET SALES NET PROFIT P/E RATIO RETURN ON NET WORTH 9584 1439 7 17 RS ( CRORE) 10113
SERVICES STUDIED, OFFERED BY PUNJAB NATIONAL BANK
Punjab National Bank offers number of services to its customers. Banks customer base includes every segment of society, which includes high profile industrialists to a common kirana wala and high-end professionals working with govt. organizations as well as multinational private companies or a peon in any organization. Customers come from every part of country, from rural area to metro cities.
ATM CUM DEBIT CARD
PNB Debit card is the card issued by bank, for the account holders for effecting Cash withdrawal, Balance enquiry and other permitted transactions through all networked “Automated Teller Machines” (ATM), installed by PNB or other banks displaying logo of Master Card /Maestro/ Cirrus or any other institution which may be notified from time to time.
The cardholder must maintain a Current/ Savings /Overdraft account at the branch where application for the card is
Submitted. The designated account may be joint accounts with ‘either or survivor’ mandate only. The card is not issued to HUF’s, corporate bodies or to firms.
On issuance of card the card holder is intimated a four digit secret password generated by computer by the name Personal Identification Number (PIN). The user in his own interest can change PIN no. with any other four-digit number. Under no circumstances the cardholder shall inform the PIN to any other person.
The cardholder authorizes the bank to recover all dues arising and becoming payable to bank as a result of use of card by cardholder through the ATM’s, from all or any of the accounts of the cardholder are not sufficient to meet such dues, the bank. In case the funds in accounts of the cardholder are not sufficient to meet such dues, the bank shall be entitled to recover such dues from the cardholder/ account holder through due process of law.
Advantages of using PNB’s ATM cum Debit Cards
• Punjab National Bank is providing an additional benefit of accidental insurance to its ATM cardholders, which is one of its kinds in the industry. The insurance amount to Rs. 2 lacs, with no premium to be paid for the first year. • No rental or service charge for using card as other banks charge to its customers on yearly basis. • There is no charge on using other banks ATM that come under MITR group.
Very nominal charge is debited from cardholder’s account if he uses other bank’s ATM other than that of MITR group.
PNB ATM cum Debit card can also be used for other purposes like, shopping, fuel pumps etc., where card scratch machines are installed.
PNB’s commitment to delight customers now even goes beyond banking.
Leveraging new- age IT infrastructure, the bank redefines conveniences for all account holders, with the facility of online payment of several utility bills.
PNB makes the process easy and convenient by bringing your bill to your
desktop. It allows you to pay your telephone, mobile, electricity, insurance and other bills electronically at its website www.pnbindia.com. Now no need to stand in bill payment queues or go to different collection counters / drop boxes. You can pay your bill anytime from anywhere even on a holiday.
What is internet banking?
Traditionally the customer’s visits the bank branch to utilize the services being provided by the bank. Internet banking means “utilizing banking services with internet as the medium of delivery”. In other words besides the traditional mode of banking, internet banking is another delivery channel like- ATM, telebanking or call center.
How does internet banking works
The user can utilize these services from anywhere and any time. He will require a PC and an internet connection to get connected to bank website through a valid user login id and password. With login in bank server, user can utilize the services/facilities available through the channel of delivery and gets back the desired information.
Who can avail this service?
Any individual having internet banking account with PNB, can use this service, presently, free of cost.
1. Online access- any day, any time, any where. The service is available to you round the clock 24 hour a day, all 365 days a year. All you need is access to internet to pay your bills. 2. No new bank account required- pay your bill through your existing bank account with PNB. No requirement of credit or debit card to use this service. 3. City wise list of companies : Available on www.pnbindia.com 4. Receipt on payment of bill: A transaction ID (TID NO.) on payment of the bill shall be issued online. 5. Bills of other person: bills of your spouse, children etc, can also be paid. 6. Privacy of transaction: all transaction is completely confidential. 7. Safety of transaction over internet: PNB website has been certified as secure site by Verisign and it is protected by passwords. 8. Special offer: pay bill online and avail special offers. For detail visit the website of utility company.
Online Banking - Our Financial Future
With the advent of the internet, we are now afforded many luxuries that allow us to save precious time and often a lot of money. Time-consuming tasks are now made simpler now that we have the World Wide Web. Once such service is that of online banking. Most of the banking institutions around the country and beyond allow us to do many of our money transactions online instead of traveling to our local bank and waiting on endless lines. Online banking is a great service that our local banks offer. Gone are the days of having to find the time to go to the bank or waiting on hold to find out about our bank history. Most banks offer this service for free and participation is voluntary. All you need to do is go to your bank website to see if it is offered. If it is, you just need to sign up giving your necessary information and create a user name and password. That is all there is to it. Why do so many people opt for this service? Most do because it is a good way to keep your finances in order. When you sign on to your online account you have access to very specific information regarding all of your accounts. You can see what your current and available balances are, what transactions have posted to your account, and you can even find out what checks have cleared your account and which have yet to. Most banks even scan your cleared checks and you are able to see the check image right on your screen! If you want to get copies of your statements or checks for verification purposes this is instantaneously available to you.
Another great thing about online banking is the ability to transfer money from one account to another which cuts down on bouncing checks and having to call or go to the bank. Online shoppers, sellers, and even people involved in home businesses love online banking. This is because you are able to link your checking account with a Paypal or Stormpay account to transfer funds. When you pay with these online accounts the money is safer and more secure. For instance when you sign up with Paypal they will have you verify the account with your checking or savings account. When you want to buy an item online you pay securely with Paypal which give the option of having it withdrawn from your account. The same thing goes with people purchasing an item online from you. You can also transfer money to these online accounts if you wish. There are some things that you need to be extremely careful when doing your banking online. The main thing being security of your account. Before doing an online banking activity you must be sure that you have some good security for your computer so that online hackers cannot gain access to your information. Once you feel as though your computer is quite secure, make sure that you keep your online banking id and password safe. Do not share this information with anyone. After you access your account and do any banking that you need to do make sure that you exit out of your account to keep it safe and secure. These simple tips will make your online banking quick, efficient and stress free.
What You Should Know About Internet Banking
There is a lot you should know about Internet banking. It can save your time, money and effort, but it is important to protect yourself from potential pitfalls. Below is information on banking options, different types of online banking, services and advantages, protecting your privacy, "cookies" and privacy, security, regulations that protect consumers, and filing a complaint against a financial institution. You also have the option of downloading a brochure
Banking Consumers' Options
You can go to a traditional "brick and mortar" institution that has a building and personal service representatives, but does not offer Internet banking services.
On the other hand, you can bank at a "brick and click" financial institution that has a physical structure, and also offers Internet banking services.
Or you can choose a "virtual" bank or financial institution that has no public building and exists only online.
Internet banking, and other types of online banking, offers advantages such as speed and convenience. However, since the Internet is a public network, it presents some privacy and security issues. Knowing the "Do's and Don'ts" of Internet banking can help make your online banking experience more productive, safe and enjoyable.
Some Security Tips Dos
Do make sure you are on the right Web site. Imposters have created Web sites with similar names to trick unsuspecting consumers into revealing personal information.
Do be "password smart." When possible, use a mix of letters and numbers for added safety. Change your password regularly. Keep your password or PIN to yourself. Avoid easy-to-guess passwords like first names, birthdays, anniversaries or Social Security numbers.
Do check bank, debit and credit card statements thoroughly every month. Keep good records. Save information about banking transactions. Check this information for agreement with account statements, debit card bills, and credit card bills. Look for any errors or discrepancies.
• • •
Do report errors, problems or complaints promptly. Do keep virus protection software up-to-date. Back-up key files regularly. Do exit the banking site immediately after completing your banking.
Do not have other browser windows open at the same time you are banking online. Don't disclose personal information such as credit card and PAN no. unless you know whom you are dealing with, why they want this information and how they plan to use it.
Don't download files sent by strangers or click on hyperlinks from people or sites you don't know. Sometimes doing this can infect your computer with viruses that can damage hardware or software. 22
Precautions for Internet Banking
Do not reveal password(s) over phone/email etc. to any person including Bank. Always log out properly before closing the window. Change your password regularly. Keep your password a combination of alphabets, special characters and numbers. Use KEYPAD for logging when you are not using your own PC. There might be a risk of capturing your KEY STOKES. Don't click on website links/attachments in un-known/ suspicious emails. These links may take you to replica of bank's website and ask for keying in your user-id & password(s). In case of doubt, reconfirm the PNB's website by double clicking the "padlock" symbol/icon at the bottom right of a web page to ensure the site is running in secure mode BEFORE you input any confidential/sensitive information.
Clicking on the "padlock" symbol/icon and on server certification symbol will display details of the server certification in the favour of Punjab National Bank. To ensure a safe and genuine login, always enter bank's website either through www.netpnb.com or www.pnbindia.com In case there is any call, Please confirm that the call is from the authorised person of the bank.
SAVINGS FUND ACCOUNT
These accounts are designed to help the individuals (personal customers) to inculcate the habit of saving money and to meet their future requirement of money. The amounts can
be deposited/withdrawn from these accounts by way of cheques/withdrawal slips. It helps the customers to keep minimum cash at home besides earning interests. Savings Bank accounts are very popular. These accounts can be opened by eligible person/s and certain organization/agencies (as approved by the Reserve Bank of India (RBI). As required by law, while opening this account, bank satisfy itself about the identity including verification of address of a person/s seeking to open an account; to assist in protecting the prospective customer/s, members of the public and bank, against fraud and other misuses of the banking system. The Bank requires a satisfactory introduction of the person/s opening the account by a person acceptable to the Bank. The Bank is required to obtain two recent photographs of the person/s opening the account, as per R.B.I. directives. The Bank is required to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139A) from the person/s opening the account. The Bank will provide to prospective customers, details of the documents required for identification of the person/s opening the account, in addition to a satisfactory introduction. Documents normally accepted are the Current gas/telephone/electricity bill or ration card or voter's identity card or driving license or passport, etc. Cheques, dividend warrants, drawn in the name of account holder/s will only be collected through this account. Financial instruments endorsed in favour of the account holder/s will not be collected through savings bank account.
A Savings Fund account can be opened in the name of individuals, singly or jointly, minors of the age of 10 years and above or under natural/legal guardianship or by an illiterate/blind person. Minimum Balance Requirements For SF Accounts As Per Category of Branch Sl No Area CBS Branches (QAB)* Non CBS Branches 1 Rural Rs.500/Rs.500/2 Semi Urban Rs.1000/Rs.1000/3 Urban Rs.1000/Rs.1000/4 Metropolitan Rs.1000/Rs.1000/Interest @ 3.5% per annum is payable every half year. As many as 50 withdrawals are permitted in a half year. Account may be transferred from one branch to another branch, free of charge. Facility of standing instruction for regular payments like insurance premium, rent, tax etc. Qurterly Average Minimum Balance Requirements and Incidental Charges for not maintaining the same for Savings Accounts in CBS Branches Incidental Charges Per Sl No Area Minimum QAB Quarter 1 Rural Rs.500/Rs.70/2 Semi Urban Rs.1000/Rs.120/3 Urban Rs.1000/Rs.120/4 Metropolitan Rs.1000/Rs.120/-
CURRENT ACCOUNT A Financial Lifeline for Business & Industry
Individuals, partnership firms, private and public limited companies, HUFs /specified associates, societies, trusts, can open Current Accounts etc. As required by law, while opening this account, bank will satisfy itself about the identity, including verification of address, of a person/s seeking to open an account, to assist in protecting the prospective customer/s, members of the public and ourselves against fraud and other misuses of the banking system.* The Bank is required to obtain two recent photographs of the person/s opening/operating the account, as per RBI directives. The Bank is required to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139A) from the person/s opening the account (i.e. including partners of Registered/Unregistered partnership as also Registered/Incorporated bodies/companies). The Bank will provide to prospective customers, details of the documents required for identification of the person/s opening the account in addition to a satisfactory introduction. Documents normally accepted are the Current gas/telephone/electricity bill or ration card or voter's identity card or driving license or passport, etc.* Minimum balance as stipulated from time to time will be required to be maintained.
* Normally, no interest is paid on credit balances kept in current account. However, subject to conditions, as applicable in our current scheme 'PNB Smart Roamer' interest is paid on the funds swept out of the current A/C for placement as Term Deposits. Service charges are levied for: Ledger folio used Cheque books issued Non-maintenance of minimum balance Return of cheques, etc. * For opening special types of current accounts like for Executors, Administrators, Trustees, Liquidators etc., the Branch Manager may be contacted who will help in opening these type of accounts. * As per RBI directive, the applicant (i.e. account opener) should declare in the account opening form or separately, that he is not enjoying any credit facility with any Bank and if he does enjoy any facility/facilities, he should declare full particulars thereof, indicating the name of the Bank and name of the branch, wherefrom he has availed these facilities etc. * No limit on number of transactions in the account.
Minimum Balance/QAB to be maintained is as under:
Category of Branches Rural Semi Urban Urban Metro
CBS Branches (QAB)
Rs.1,000 Rs.3,000 Rs.5,000 Rs.5,000
Non CBS Branches
Rs.1,000 Rs.3,000 Rs.5,000 Rs.5,000
Incidental Charges: Operative Accounts at Non-CBS Branches (Current Accounts) for non-maintenance of Minimum Balance
Nature of Account Current Accounts individuals Current Accounts - other than individuals
Charges(per month) at Signature/ High Value Branches Rs.120/Rs.250/-
Charges(per month) at Other Branches Rs.60/Rs.100/-
Bank has several Domestic Deposit Schemes designed to cater to the needs of various segments of customers to meet customer’s specific requirement. The features of the Anupam Account Deposit Scheme are as under:
Anupam Account Scheme may be opened in the name of individual(s), sole proprietorship concern, partnership firm, association, trust, Ltd. Company etc. However, Anupam Account shall not be opened in the name of minor, illiterate and blind persons.
2. Minimum Initial Deposit Rs.10,000/- and thereafter in multiples of Rs.1000/- thereof. 3. Period of Deposit For any period from 6 months to 120 months. Existing deposits under Multi Benefit Deposit Scheme for Rs.10,000/- and above with unexpired term of 6 months or more are eligible for transfer to Anupam Account Scheme.
4. Overdraft Facility Overdraft facility shall be permitted through a Current Account and a Cheque Book will be issued to the depositor on the same day. The margin on the amount of overdraft against the deposit is For Public
Maturity Period remaining at the time of granting overdraft Margin Upto 2 years 5% Above 2 years and upto 3 years 7.5% Above 3 years and upto 4 years 10.0% Above 4 years and upto 5 years 12.5% Above 5 years 25%
5. Third Party Advance Only depositors can avail overdraft facility against their deposits under this scheme. No third party advance i.e. Credit Facility / overdraft to persons other than depositors is allowed under Anupam Account. Even the overdraft facility to a proprietorship firm against Fixed Deposit in the name of its proprietor is not allowed. 6. Premature withdrawal of Deposit If any depositor desires to withdraw the deposit before maturity, Bank may at its discretion repay the deposit with upto date quarterly compounded interest at the rate applicable to the period for which deposit remained with the bank 7. Facility of Further Fixed Deposit in the same Anupam Account Further, Fixed Deposit can be accepted in the same Anupam Account on your request and the limit in the overdraft account be increased
accordingly against the additional deposit and it will also be endorsed in the Receipt Form with you. 8. Renewal of Term Deposit on Maturity Renewal of Fixed Deposit is permitted at your request, if no overdraft is outstanding against it. 9. Withdrawal in multiples of Rs.1000/You may withdraw any amount before maturity anytime as well in multiples of Rs.1000/- any time according to your convenience without breaking the entire deposit and without losing interest on remaining part of Fixed Deposit Receipt under the Scheme. FLEXIBLE RATE DEPOSIT SCHEME Flexible Rate Deposit Scheme provides a deposit product with a Market determined interest rate linked to a Govt. Security Paper of 10 years maturity. The scheme provides the depositor an option to invest in various maturities at variable rate of interest option so that he can have a portfolio with an opportunity to match the return with the interest rates on deposits prevalent in the market from time to time. PURPOSE/OBJECTIVE: Flexible Rate Deposit Scheme provides a deposit product with a Market determined interest rate linked to six months’ average Yield to Maturity on 10 years Govt. Security Papers. The objective of the scheme is to hedge against the interest rate volatility by offering deposits at a flexible rates. Flexible Rate
Schemes will be beneficial to both the Bank and Customer as the rates will be linked to the Market/Base Rate
Launched at 50 select branches having connectivity under CBS WHO CAN DEPOSIT (ELIGIBILITY) The following segment of customers can subscribe to the scheme a. An individual singly or jointly with more than one individual in the form of 'former or survivor' or 'either or any of the survivor' or by a natural/legal guardian on behalf of a minor child. b. Firms, Associations and Trusts c. Hindu Undivided Family (HUF) d. Companies e. All institutions (blind and illiterate customers would not be eligible for opening account under the Scheme) All the formalities in regard to opening of accounts, including introduction, as applicable in case of deposit accounts including photograph of depositor will be applicable to the scheme, at the time of opening of account. The existing instructions of the Bank for obtention of Nomination, renewal of Term Deposits after due date etc. would be applicable in this Scheme as well. The account under the scheme will be opened with a minimum deposit of Rs.1,00,000/- (Rupees one lakh), thereafter, in multiple of Rs.10,000/-. PERIOD : The period of the deposit will be 3 years to 10 years (in completed quarters) as per option of depositor. RATE OF INTEREST
The Term Deposit under the Flexible Rate Deposit Scheme shall carry interest at the rates calculated on the basis of average yield to maturity (half-yearly) of 10 years on Govt. Security Paper to be re-set
every six months, (hereinafter called the ‘BENCHMARK RATE’.) with indicated linkage: Ø The ‘Benchmark Rate’ as arrived at by Bank shall be final. Ø The Bank, in its discretion, shall have the right to change the basis and periodicity of effecting change in the Benchmark Rate. Ordinarily, Benchmark Rate with indicated linkages will be fixed by the bank at the beginning of each half-year. Ø ‘Flexible Rate’ means the net of the Benchmark rate plus/minus indicated linkage, as might be fixed by the bank from time to time. Ø ‘LINKAGE’ means addition/deduction in Benchmark Rate arrived at as above. The indicated linkage may be either plus or minus to the Benchmark Rate as decided by the Bank for the respective half-year. With effect from 01.10.2005, the following rates of interest shall be operative under this scheme:
Tenors Existing Flexible Rates w.e.f Revised Flexible Rates w.e.f. 1.04.2005 to 30.09.2005(p.a) 1.10.2005 to 31.03.2006(p.a) (%) (%)
3 - <5yrs 5 - <7yrs 7 - <10yrs
6.08 6.33 6.58
6.54 6.79 7.04
Except for the rates fixed by Treasury Division from time to time no other differential component in the rate of interest will be applicable to the deposits under the above scheme. The differential rates based on the amount slabs payable on a single deposit of Rs.15 lac and above will not be permissible on deposits under this scheme. STAFF: Discretion to pay additional interest not exceeding one percent on deposits of bank's staff and their exclusive associations
In respect of a Term Deposit account opened under the Scheme in the name of: a. A member or a retired member of the bank's staff, either singly or jointly with any member or members of his/her family or b. the spouse of a deceased member or a deceased retired member of the Bank's staff; and c. an Association or a fund, members of which are the members of the bank's staff. The bank may, at its discretion, allow additional interest at a rate not exceeding 1% per annum over and above the rate of interest as decided by the Bank provided that the bank shall obtain a declaration from the depositor concerned, that the monies deposited or which may, from time to time, be deposited into such account, shall be monies belonging to the depositor as stated in clauses (a) to (c) above, PREMATURE PAYMENT No part amount will be allowed to be withdrawn under this Scheme. In case of depositors seeking premature withdrawal before 36 months (i.e. the minimum period of deposit undertaken) the Deposit will earn interest rate as applicable to other term deposit schemes and period run rate of interest would be paid. In cases where premature withdrawal request is received after deposit has run for minimum 36 months, the interest on Deposits will be paid for the applicable slab rate i.e. 36 months to 60 months; 60 months to 84 months or 84 months to 120 months, with half-yearly
resets. In such cases, however, deposits will earn interest at Benchmark Rate or Flexible Rate whichever is lower for the tenor of
deposit. CONVERSION The customers would not be allowed to convert their deposits under Flexible Rate Deposit Scheme to any other deposit scheme. However, the customer shall be free to opt for closure of the account before maturity. REPAYMENT/RENEWAL I. The original deposit certificate(s) duly discharged will be required to be presented at the issuing branch. The payment will be made by credit to the account or by way of Banker's Cheque. ii. The depositor may renew the deposit under the scheme on maturity. The duly discharged original deposit receipt should be presented at the issuing branch for renewal. The deposit will stop earning interest from the date of maturity. TAX DEDUCTION AT SOURCE The interest earned under the Flexible Rate Deposit Scheme will be subject to the provision of taxation laws including Income Tax Rules related to Tax Deduction at Source. LOANS AND ADVANCES The depositor may request for loans/overdraft against the security of their deposits in accordance with the applicable guidelines as in the case of Bank's other Fixed Deposit Receipts.
Recurring Deposit Scheme - EARN LARGE, SAVE SMALL Features Account can be opened with a minimum monthly deposit of Rs.100/- or its multiples for a period of 6 months to 120 months in multiples of 3 months. Interest at term deposit rates is computable on quarterly compounded basis The small monthly savings in the Recurring Deposit scheme enable you to accumulate a handsome amount on maturity Spectrum fixed deposit scheme Terms and conditions
Initial Deposit of Rs.1000/-only, and thereafter in convenient multiples of any amount of Rupee one Period of Deposit: (a) Maturity Option: For any period from 15 days to 120 months-For a single Term Deposit less than Rs. 15 lac and for any period from 7 days to 120 months-For a single Deposit of Rs. 15 lac & above. (b) Income Option: For any period from 6 months to 120 months. At PAR Collection of Fixed Deposit Receipt Payable at par at all CBS branches(premature payment, loans andother miscellaneous matters before maturity of the FDR shall be attended to only by the issuing branch) Multiple options available for interest payment viz. Monthly/Quarterly/Half-Yearly/Yearly or on maturity For an amount of Rs. 10,000/- and above overdraft with cheque book facility is available, to enable use of deposits. The customer shall also be at liberty to make use of the facility through ATMcum-Debit Card under 'Anywhere-Anytime Banking'. It will enable customers to have freedom to utilise their Fixed Deposits as and when needed without even coming to the Bank. The interest is chargeable only for the amount and period for which the overdraft facility has been availed; The illiterate and blind persons can also
open the account without exercising the option of Overdraft Facility. Margin and rate of interest on Loans against deposits under the scheme shall be as per prescribed guidelines which shall be subject to modifications from time to time Automatic payment of LOCKER rent out of Interest proceeds Conversion facility regarding mode of payment of interest allowed;(provided FDR has been issued for a period of 12 months or more and remaining period of FD is more than 6 months) without invoking any penal provision Premature withdrawal of Deposit without any penalty Automatic Renewal facility is provided as per option exercised by the depositor Availability of premature extension
Swechha Jama Yojna / Flexi RD Scheme Individuals can open account, singly or jointly, by a minor of the age of 10 years and above in his name or through his guardian. A depositor can choose a monthly installment with a minimum of Rs.100 or above in its multiples. However, the subsequent monthly installment will not exceed ten times of such core amount without any ceiling on maximum amount. No matter, even if the monthly installment is skipped. Deposit accepted for any period from 6 months to 120 months and interest is paid at term deposit rates on half yearly basis. Cash Management Services Punjab National Bank had taken a major initiative for managing the funds of Corporate. The services are essentially meant for pooling your funds spread across the country at a place of your choice with the least time delay, if not instantaneously in many cases. We shall
collect your receivables from your representative or your business associates at 123 designated centers all over the country and pool the same at the branch specified by you. The services can be custom designed to cater to your specific needs.The Scheme offers the following options for you; Option I : Instant credit through our CMS to your account, pending clearance of funds. Option II: Credit to your account through our CMS after realizations. Option III : You can choose Option I or II according to your client profile and indicate to us client-wise. A host of Daily/weekly/monthly reports and special report including center-wise reports generated at our HUB at Delhi, can be sent you through electronic media as per requirements of your funds Managers.The Bank offers the above services at most competitive rates. The charges for the services are given as under:(Charges in paisa/Rs. 1000) 25paisa (eg. Delhi, Mumbai Kolkata,etc.)12 centres 50 paisa (eg. Jaipur, Bhopal,Shimla For Non-Metro locations etc.)72 centres 90 paisa (eg. Ujjain,Dhanbad,Narnaul For Remote locations etc.) 39 centres For Metro locations In case your turnover crosses certain assured level we offer attractive discounts on the above charges ranging from 20% to over 66%. If your annual turnover of collection exceeds Rs. 250 crores at Chennai (Metro locations) the charges shall be just 06 paisa per 1000/-.
Electronic funds transfer
From long time, remittance of funds within the banks i.e. from one branch to another was completed through transfer payment orders, telegraphic transfers or by drafts, which takes considerable time to reach destination. To avoid this delay, Punjab National Bank introduced a new system called “The Inter-Bank Electronic Fund Transfer System" which may be referred as "EFT System" under the guidance of Reserve Bank of India. In this system remittance can easily be made from any of the branches of participating Bank at designated centre to any other branch of the same or any other participating bank at the same or any other designated centre which would facilitate remittance to reach destination on the very next working day itself through the system of computer and communication network. This scheme is currently operational in Metros only; other centre will be added shortly. Limit for individual transactions has been increased from current limit of Rs. 5 lac to Rs. 2 crores.
Real Time Gross Settlement (RTGS)
Definition: An RTGS system is defined in this report as a gross settlement system in which both processing and final settlement of funds transfer instructions can take place continuously (i.e. in real time). As it is a gross settlement system, transfers are settled individually, that is, without netting debits against credits. As it is a realtime settlement system, the system effects final settlement continuously rather than periodically at prespecified times provided that a sending bank has sufficient covering balances or credit. Moreover, this settlement process is based on the realtime transfer of central bank money. An RTGS system can thus be characterised as a funds transfer system that is able to provide continuous intraday finality for individual transfers
Payment processing: Within this broad definition, the operational design of RTGS systems can differ widely. In particular, important
differences may arise in the approaches to payment processing when the sending bank does not have sufficient covering funds in its central bank account. One possible way of treating transfer orders in such circumstances is for the system to reject the orders and return them to the sending bank. The rejected transfer orders will be input into the system again at a later time when the sending bank has covering funds. Until that time, sending banks may keep and control the pending transfers within their internal systems (internal queues). Alternatively, the RTGS system may temporarily keep the transfer orders in its central processor (system or centrally located queues) instead of rejecting them. In this case, the pending transfers will be released for settlement when covering funds become available on the basis of predefined rules, agreed between the system and the participating banks. In many cases the transfer orders are processed and settled with the extension of central bank credit, normally provided for a period of less than one business day (intraday credit); in other words, the central bank provides banks with the necessary covering funds at the time of processing by extending such credit. The central bank could take a range of approaches to the provision of intraday credit in terms of (a) the amount of credit (including a zero amount), (b) the method by which credit is extended (e.g. overdraft or repo), (c) the terms on the credit (e.g. free or priced) and (d) the collateral requirements (if any). These possibilities of payment processing (i.e. rejected, centrally queued, settled with central bank credit) are not necessarily mutually exclusive. For example, when the provision of central bank credit is constrained in some way, the transfer orders for which the sending bank could/would not obtain central bank credit will be rejected or centrally queued.
Intraday liquidity requirements: Provided that there are no legal problems with regard to settlement finality, the only structural impediment to continuous intraday finality is any liquidity constraint a sending bank may face during the day. A liquidity constraint in an RTGS environment has two basic characteristics, namely that it is a continuous constraint for settling funds transfers and that intraday liquidity requirements must be funded by central bank money; banks must therefore have sufficient balances in their central bank accounts throughout the processing day. Intraday liquidity requirements raise important issues for both the central bank and the private sector. Central banks, for their part, face a choice as to whether or not to provide banks with intraday liquidity and, if so, what form that provision will take (e.g. by what mechanisms and on what terms the credit will be provided, and how any resulting exposures will be managed). From the perspective of individual banks, intraday liquidity requirements may lead to concern about the associated costs. Such "liquidity costs" may include direct funding costs (interest paid or any other explicit monetary costs such as charges/fees on central bank credit), opportunity costs of maintaining funds in central bank accounts (e.g. interest forgone), or opportunity costs of tying up collateral or securities in obtaining central bank credit. Furthermore, banks may have to be actively involved in the management of their payment flows in order to use intraday liquidity effectively. This could require investment in the internal systems that they use to control payment flows, as well as entailing running costs. The intraday liquidity requirements under a particular RTGS system depend critically on (a) the structure of financial markets and systems (e.g. the adequacy of private sector sources of liquidity, the amount of collateral/securities available, reserve requirement regimes) and (b) the central bank's policy regarding the provision of intraday credit. The means by which intraday liquidity is provided can significantly affect the extent to which immediate, or at least very timely, final
settlement occurs, and, ultimately, it can influence the balance between the potential benefits and costs of RTGS RTGS is a large value funds transfer system whereby financial intermediaries can settle interbank transfers for their own account as well as for their customers. The system effects final settlement of interbank funds transfers on a continuous, transaction- by-transaction basis throughout the processing day. The system went ‘live’ on March 26 with State Bank of India, HDFC Bank, Standard Chartered Bank, and Saraswat Co-operative bank. The Reserve Bank of India has made 120 scheduled commercial banks and primary dealers to become part of the real time gross settlement system (RTGS). ICICI Bank, IndusInd Bank, BNP Paribas, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Corporation Bank, Union Bank of India and Punjab National Bank are the names added in the list with some more banks likely to join very shortly. Banks could use balances maintained under the cash reserve ratio (CRR) instead of the intra-day liquidity (IDL) to be supplied by the central bank for meeting any eventuality arising out of the real time gross settlement (RTGS). The RBI has fixed the IDL limit for banks to three times their net owned fund (NOF). The IDL will be charged at Rs 25 per transaction entered into by the bank on the RTGS platform. The marketable securities and treasury bills will have to be placed as collateral with a margin of 5%. However, the apex bank will also impose severe penalties if the IDL is not paid back at the end of the day.
Interbank Payment And Settlement Mechanisms
1. Key design concepts in interbank funds transfer systems
Interbank funds transfer systems are arrangements through which funds transfers are made between banks for their own account or on behalf of their customers. Of such systems, largevalue funds transfer systems are usually distinguished from retail funds transfer systems that handle a large volume of payments of relatively low value in such forms as cheques, giro credit transfers, automated clearing house transactions and electronic funds transfers at the point of sale. The average size of transfers through largevalue funds transfer systems is substantial and the transfers are typically more timecritical, not least because many of the payments are in settlement of financial market transactions. The report focuses on these largevalue systems. The processing of funds transfers involves two key elements. The first of these is the transfer of information between the payer and payee banks. A funds transfer is initiated by the transmission of a payment order or message requesting the transfer of funds to the payee. In principle, the payment messages may be credit transfers or debit transfers, although in practice virtually all modern largevalue funds transfer systems are credit transfer systems in which both payment messages and funds move from the bank of the payer (the sending bank) to the bank of the payee (the receiving bank). The payment messages are processed according to predefined rules and operating procedures. Processing may include procedures such as identification, reconciliation and confirmation of payment messages. The transmission and processing of payment messages in largevalue funds transfer systems is typically automated (i.e. electronic). The second key element is settlement - that is, the actual transfer of funds between the payer's bank and the payee's bank. Settlement discharges the obligation of the payer bank to the payee bank in respect of the transfer. Settlement that is irrevocable and unconditional is described as final settlement. In general, the settlement of interbank funds transfers can be based on the transfer of balances on the books of a central bank (i.e. central bank money) or commercial banks (i.e. commercial bank money). In
practice, settlement in the vast majority of largevalue funds transfer systems takes place in central bank funds. Although the rules and operating procedures of a system and the legal environment generally may allow for differing concepts of finality, it is typically understood that, where settlement is made by the transfer of central bank money, final settlement occurs when the final (i.e. irrevocable and unconditional) transfer of value has been recorded on the books of the central bank. The report focuses on the settlement finality of the central bank transfers in this sense. Settlement characteristics and the types of interbank funds transfer system: Interbank funds transfer systems can be classified in several ways. Among other things, differences in the way settlement takes place provide a useful framework for the discussions in the later sections of this report. A common distinction in this respect is to divide systems into net settlement systems and gross settlement systems. In a net settlement system, the settlement of funds transfers occurs on a net basis according to the rules and procedures of the system. A participating bank's net position is calculated, on either a bilateral or a multilateral basis, as the sum of the value of all the transfers it has received up to a particular point in time minus the sum of the value of all the transfers it has sent. The net position at the settlement time, which can be a net credit or debit position, is called the net settlement position. Net settlement systems for largevalue funds transfers in the G10 countries are now primarily multilateral (rather than bilateral) net settlement systems in which each (settling) participant settles its multilateral net settlement position. In a gross settlement system, on the other hand, the settlement of funds occurs on a transactionbytransaction basis, that is, without netting debits against credits. Interbank funds transfer systems can also be classified according to the timing (and frequency) of settlement. Systems can in principle be grouped into two types, designatedtime (or deferred) settlement systems and realtime (or continuous) settlement systems, depending on whether they settle at prespecified points in time or on a continuous basis. In this report, these two types are more narrowly defined in terms of the timing of final settlement. One type of system
is thus a designatedtime (or deferred) settlement system, in which final settlement occurs at one or more discrete, prespecified settlement times during the processing day. Designatedtime settlement systems in which final settlement takes place only once, at the end of the processing day, are called endofday settlement systems. Currently, net settlement systems for largevalue transfers are typically endofday net settlement systems that settle the net settlement positions by means of transfers of central bank money from net debtors to net creditors. In some countries, there are systems in which the final settlement of transfers occurs at the end of the processing day without netting the credit and debit positions - on a transactionbytransaction basis or on the basis of the aggregate credit and aggregate debit position of each bank. Such systems are often called endofday gross settlement systems. On the other hand, a realtime (or continuous) settlement system is defined as a system that can effect final settlement on a continuous basis during the processing day. RTGS systems, as defined below, fall into this category. Table 2 summarises the main possibilities.
Table 2 Types of large value funds transfer system
Settlement characteristics Designated time (deferred)
Designated time gross settlement Realtime gross settlement (RTGS)
Designated time net settlement (DNS)
* By definition, netting involves the accumulation of a number of transactions so that credits can be netted against debits and this is incompatible with genuinely continuous settlement.
It is worth stressing here that the distinction between different systems such as RTGS and designated time net settlement (DNS) systems concerns the form of settlement, not the form of transmission
and processing. Like RTGS systems, many net settlement systems transmit and process payment messages in real time on a transaction-by-transaction basis, but they settle, by definition, on a net basis at discrete intervals. An important concept that is often used in connection with the timing of finality is intraday finality or an intraday final transfer capability. The Noël Report defined this concept as the ability to initiate - and to receive timely confirmation of - transfers between accounts at the central bank that become final within a brief period of time. The Study Group believes that this definition is useful and in practice is sufficient when discussing the "intraday" nature of finality relative to endofday finality. However, the Group also recognised that the phrase "within a brief period of time" is not a precise one. Therefore, care needs to be taken when considering the extent to which systems in which final settlements occur at discrete but very frequent intervals of time during the day can provide some form of intraday finality similar to systems involving continuous settlement (i.e. realtime intraday finality). In describing the settlement characteristics of net settlement systems, the concept of certainty of settlement is sometimes used. This concept is not related to the timing of final settlement per se but, as described in the Noël Report, refers to the certainty that the system will be able to effect final settlement when the netting cycle and the associated settlement procedures have been completed. Certainty of settlement relates to a multilateral netting system's ability to meet Lamfalussy Standard IV, namely that such systems should, at a minimum, be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by the participant with the largest single net debit position. Multilateral net settlement systems that are secured in compliance with all the Lamfalussy standards, including Standard IV, and that can therefore assure settlement in the event of any single participant failure are often called Lamfalussycompliant systems. Stronger forms of certainty of settlement arise when a net settlement system is capable of ensuring settlement in the event of more than one participant failing. These systems are often called Lamfalussyplus systems. A particular
category of Lamfalussyplus systems concerns those that can assure settlement in all circumstances, that is, regardless of how many participants fail. Central bank systems and private sector systems: Interbank funds transfer systems are sometimes classified according to whether they are central bank systems or private sector systems. The distinction typically depends on who owns and operates the systems (rather than on the identity of the settlement agent). At present, it is possible to identify two "typical" types of large value funds transfer system: (a) central bank systems owned and operated by the central bank (or its affiliated entities) in which the central bank also provides settlement, and (b) private sector systems owned and operated by a private sector group (e.g. a banking association or clearing house), where the main operational role of the central bank is to act as the settlement agent. In the G10 countries, for example, RTGS systems often belong to the former category and many DNS systems belong to the latter. Nonetheless, a number of DNS systems are owned and operated by the central bank, while in some cases RTGS systems are owned and operated by a private sector group. Moreover, there are several DNS and RTGS systems in which ownership and operation are shared between the private sector and the central bank.
TIME OF DELIVERY SETTLEMENT The risk implications of the timing of delivery of information about funds transfers preceding the timing of settlement have become increasingly important as various types of largevalue funds transfer system have come to operate on the basis of realtime processing (i.e. information is transmitted to receiving banks in real time), while settlement may be delayed (either because the system is a DNS system or because, in an RTGS system, liquidity constraints may delay settlement at least temporarily). The second type of lag, sometimes referred to as asynchronous settlement, is the largest source of principal risk in the settlement of
foreign exchange and securities transactions, or, more generally, in exchangeforvalue systems. This is the risk that the seller of an asset could deliver but not receive payment or that the buyer of an asset could make payment but not receive delivery, which could entail a loss equal to the full principal value of the assets involved. The DVP Report concluded that a delivery versus payment system, which ensures that the delivery occurs if and only if payment occurs, would provide a mechanism for eliminating such principal risk. Since the payment leg in an exchange for value system is supported by interbank funds transfer systems, the settlement characteristics of interbank funds transfer systems as described above have an important influence on how a DVP mechanism could be constructed for an exchange for value system. The design of RTGS systems: concluding remarks As the above analysis has shown, the concept of RTGS is straightforward but the systems themselves can take many different forms. These differences partly reflect the fact that circumstances vary from country to country, so that arrangements that are appropriate for one country may not be relevant for another. In many cases a pragmatic approach has been adopted to certain design features. Finally, as mentioned earlier, RTGS systems are on the whole a relatively recent concept and thus there has often been little operational experience on which to base comparisons between different options. Given these factors, while it may be difficult to draw any universally applicable conclusions about the merits of particular features of RTGS systems, it might be useful to set out the key criteria that are likely to be used when choosing between different options. RTGS systems can be categorised according to three main considerations, namely (a) whether the central bank provides intraday credit to participants in the system and, if so, on what terms, (b) the message flow structure and (c) the facilities, if any, available for queuing. Although there are many other ways in which systems differ, these three areas seem to capture the most important aspects.
Whether intraday credit is provided or not may depend partly on whether interbank funds transfer systems are seen simply as mechanisms that enable settlement to take place, in which case it may be decided that no specific liquidity facilities will be provided, or whether the provision of intraday liquidity is seen as being a straightforward extension of a central bank's existing role as a provider of liquidity to the banking system. The decision to extend intraday credit may also reflect a view that intraday credit is necessary to enable the system to function smoothly. Where credit is provided, there are variations in the terms set (e.g. whether the credit has to be collateralised and what fee or interest rate, if any, is charged), reflecting a number of important considerations. For example, central banks differ in the way they prefer to manage any risks associated with providing credit. Moreover, in some systems a key consideration may be a desire to keep the cost to banks of obtaining intraday liquidity as low as possible, while in other systems this may be less critical or a positive cost may be seen as a useful way of encouraging banks to economise on their use of any central bank liquidity facility. As far as the message flow structure is concerned, the key choice is often between the V-shaped and Y-shaped structures, and an important consideration here is the role of the central bank relative to the private sector in the day today operation of the system: for some, the attraction of the Y architecture is that it enables a distinction to be drawn between the central bank's core role as settlement agent and the rest of the system processing, which can be a separate, private sector function. Whether this is an issue typically depends in part on the nature of the arrangements in place before RTGS was introduced (i.e. the extent to which the central bank was involved in the daytoday operation of the previous non RTGS system) and thus on what has come to be regarded as normal or desirable in the market concerned. Other relevant factors may include potential risks associated with the message flow (which is why the T-shaped structure has been criticised) and the design of the existing system (in those cases
where the new RTGS system is being adapted from a previous system and thus where particular architectures, such as the Lshaped structure, may be used). Approaches to queuing may depend importantly on views about the relative roles of the private sector and the central bank, the central bank's policies regarding the granting of intraday credit and the extent to which banks can obtain liquidity easily from their own sources. If, as noted above, an interbank funds transfer system is seen as being simply a settlement mechanism, then it may also be that no centralised queue management facilities are provided beyond basic FIFO processing. Or the balance between centralised and decentralised queue management may depend on the extent to which banks see such management as a competitive issue rather than one on which they want a standard approach to be adopted. Consideration of the balance to be struck between risk, cost and liquidity may also determine whether queued incoming transfers are transparent or not. More generally, queue management may be an area where the relative novelty of RTGS systems is particularly relevant: key policy considerations apart, differences in queue management techniques may simply reflect the fact that so far there is not enough experience to judge how desirable the different methods are.
Punjab National Bank Housing Loan
Any individual can avail Punjab National Bank Housing Loan for any of the following purpose:
• • • •
For construction of house. For purchase of house/ flat. For purchase of house/ flat from the original allottee, i.e. on First Power of Attorney basis. For carrying out repairs/ renovation/ additions/ alterations in the existing house.
Approximately 80% of the cost of project is sanctioned by PNB Housing Finance, subject to a maximum of Rs. 50 lac. In case of carrying out repairs/ renovation/ additions/ alterations in the existing house, the ceiling is Rs. 5 lac. The loan is available for a period of 5 years to 20 years or before the borrowers attain the age of 65. Interest of Punjab National Bank Home Loan is charged on reducing balance and the amount to be sanctioned depends upon the repaying capability of the borrower. The following securities are required by the cell of PNB Housing Loan:
Mortgage of property for which finance is being given. In case of purchase of house flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/society, borrower and the Bank. In case of purchase of house/ flat on first power of attorney, additional security by way of mortgage of some other property or pledge of Bank's Fixed Deposit Receipt/ LIC policy/ Govt. securities has to be provided.
Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives. Housing Loan
Extent of loan Individual • For construction/purchase of house/ flat: 80% of the cost of construction of house or purchase of house/ flat. • For carrying out repairs/ renovation/ additions/ alterations: 80% of the estimated cost subject to maximum of Rs. 20lacs. • Loan upto Rs.10 Lacs for purchase of Land/Plot. • Loan is available maximum upto Rs.2 Lacs for furnishing.
Security • Mortgage of property for which finance is being given. • In case of purchase of house/ flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/
society, borrower and the Bank. In case of purchase of house/ flat on first power of attorney, additional security equal to 125% of the loan amount by way of mortgage of some other property or pledge of bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has to be provided.
• Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives. Rate of Interest RATE OF INTEREST UNDER FIXED OPTION :
TENOR For loans repayable in/upto i) Upto 5 years ii) Above 5 & upto 10 years iii) Above 10 years & upto 20 years iv) Above 20 years & upto 25 years Rate of Interest @ percent p.a. Existing 9.25 10.25 10.50 11.00 Effective from 01.05.2006 9.75 10.75 11.00 11.50
Low Interest rate for employees of the following organisations
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Gas Authority of India Ltd. (GAIL) Bharat Heavy Electrical Ltd. (BHEL) National Thermal Power Corporation (NTPC) Oil & Natural Gas Commission (ONGC) Oil India Ltd. (OIL) Container Corporation of India Bharat Electronics Ltd. (BEL) Mahanagar Telephone Nigam Ltd. (MTNL) Bharat Sanchar Nigam Ltd. (BSNL) Bharat Earth Movers Indo Burma Petroleum (IBP) Dredging Corporation of India Ltd. Neyveli Lignite Ltd. Air India Indian Airlines MRPL Kudermukh Iron Ore Ltd. Coal india Ltd. Inderprastha Gas Ltd. (JV of BPCL / GAIL) Maruti Udyog Ltd. Indian Oil Corporation Engineers India Ltd. Shipping Corporation of India
Option for Fixed or Floating Rate of Interest exercised by the borrower will not be allowed to be changed for a minimum period of 3 years, where after any change would be at the discretion of the Sanctioning Authority. Repayment Loan is to be repaid in equated monthly installments within a period of 25 years or before the borrower attains the age of 65 years.
Disbursement For outright purchase of house/ flat, the loan amount will be paid in lumpsum to the vendor. For house/ flat under construction, the loan amount will be disbursed in stages as per progress of construction/ demand by selling agency.
CONCLUSION AND RECOMMENDATION For ATM: • Awareness among the customers in rural or semi urban areas is low, they need to be educated. • Bank should look for installing more ATM at market places, at least every branch must have one.
Old and outdated machines should be updated or replaced, as most of the private banks provide the facility of depositing cash and cheques.
Should provide telephones inside the ATM centre, so that customer can directly contact the branch for technical assistance or some unexpected problem.
• Regular Checkups should be scheduled for ATMs. For Internet Banking: • Employees and Customers should be made aware about the details of using internet banking. • ID and secret PIN should be provided to customers within minimum time, not as of now it takes around 7 to 10 days. • PNB should link customer’s D-mat account with savings fund and current account. • Customers should be educated about the benefits of using internet banking.
For RTGS: • At least two to four Employees should be made completely informed at each branch to handle RTGS. • Customer must be made aware about the RTGS and its benefits.
Charges at PNB is lowest in the industry which can help to get advantage as compared to private banks. Bank’s advertisement can include message about RTGS system which will make customers aware about the service.
For Loans: • It is good for bank that it is making tie-ups with residential and commercial builders, but it also need to appoint sales persons at different locations.
Bank can go for appointing DSAs (Direct Sales Associates), who can increase the sale of loans largely. Schemes are better than any other bank but aggressive marketing is required to compete with marketing strategies of private banks.
1) www.pnbindia.com 2) www.pnb.net
3) www.indiainfoline.com 4) www.downtoearth.com 5) Search Engine www.google.com
NEWSPAPERS AND MEGAZINES 1) 2) 3) 4) BUSINESS LINE TIMES OF INDIA BUSINESS WORLD ECONOMIC TIMES
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